Bill Text: IN HB1083 | 2010 | Regular Session | Enrolled
Bill Title: Unclaimed property.
Spectrum: Slight Partisan Bill (Republican 2-1)
Status: (Passed) 2010-03-25 - Effective 07/01/2010 [HB1083 Detail]
Download: Indiana-2010-HB1083-Enrolled.html
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or
AN ACT to amend the Indiana Code concerning property.
(b) As used in this chapter, "property" means an interest in intangible personal property, except an unliquidated claim, and all income or increment derived from the interest, including an interest that is referred to as or evidenced by:
(1) money, a check, a draft, a deposit, an interest, or a dividend;
(2) a credit balance, a customer overpayment,
(3) stock and other ownership interest in a business association;
(4) a bond, debenture, note, or other evidence of indebtedness;
(5) money deposited to redeem stocks, bonds, coupons, and other securities or to make distributions;
(6) an amount due and payable under the terms of an insurance policy; and
(7) an amount distributable from a trust or custodial fund established under a plan to provide:
(A) health;
(B) welfare;
(C) pension;
(D) vacation;
(E) severance;
(F) retirement;
(G) death;
(H) stock purchase;
(I) profit sharing;
(J) employee savings;
(K) supplemental unemployment insurance; or
(L) similar;
benefits.
(c) The term does not include transactions between business entities and:
(1) a motor carrier (as defined in IC 8-2.1-17-10); or
(2) a carrier (as defined in 49 U.S.C. 13102(3)).
(1) does not include a communication with an owner by an agent of the holder who has not identified in writing the property to the owner; and
(2) includes the following:
(A) With respect to an account or underlying shares of stock or other interest in a business association or financial organization:
(i) the cashing of a dividend check or other instrument of payment received; or
(ii) evidence that the distribution has been received if the distribution was made by electronic or similar means.
(B) A deposit to or withdrawal from a bank account.
(C) The payment of a premium with respect to a property interest in an insurance policy.
(D) The mailing of any correspondence in writing from a financial institution to the owner, including:
(i) a statement;
(ii) a report of interest paid or credited; or
(iii) any other written advice;
relating to a demand, savings, or matured time deposit account, including a deposit account that is automatically renewable, or any other account or other property the owner
has with the financial institution if the correspondence is not
returned to the financial institution for nondelivery.
(E) Any activity by the owner that concerns:
(i) another demand, savings, or matured time deposit
account or other account that the owner has with a financial
institution, including any activity by the owner that results
in an increase or decrease in the amount of any other
account; or
(ii) any other relationship with the financial institution,
including the payment of any amounts due on a loan;
if the mailing address for the owner contained in the financial
institution's books and records is the same for both an inactive
account and for a related account.
(b) The application of an automatic premium loan provision or other
nonforfeiture provision contained in an insurance policy does not
prevent the policy from maturing or terminating if the insured has died
or the insured or the beneficiary of the policy otherwise has become
entitled to the proceeds before the depletion of the cash surrender value
of the policy by the application of those provisions.
(c) Property that is held, issued, or owed in the ordinary course of
a holder's business is presumed abandoned if the owner or apparent
owner has not communicated in writing with the holder concerning the
property or has not otherwise given an indication of interest in the
property during the following times:
(1) For traveler's checks, fifteen (15) years after issuance.
(2) For money orders, seven (7) years after issuance.
(3) For consumer credits, three (3) years after the credit becomes
payable.
(4) For amounts owed by an insurer on a life or an endowment
insurance policy or an annuity contract:
(A) if the policy or contract has matured or terminated, three
(3) years after the obligation to pay arose; or
(B) if the policy or contract is payable upon proof of death,
three (3) years after the insured has attained, or would have
attained if living, the limiting age under the mortality table on
which the reserve is based.
(5) For property distributable by a business association in a course
of dissolution, one (1) year after the property becomes
distributable.
(6) For property or proceeds held by a court or a court clerk, five
(5) years after the property or proceeds become distributable. The
property or proceeds must be treated as unclaimed property under
IC 32-34-3.
(7) For property held by a state or other government,
governmental subdivision or agency, or public corporation or
other public authority, one (1) year after the property becomes
distributable.
(8) For compensation for personal services, one (1) year after the
compensation becomes payable.
(9) For deposits and refunds held for subscribers by utilities, one
(1) year after the deposits or refunds became payable.
(10) For stock, dividends, profits, distributions, interest,
redemption, payments on principal, or any other sum held or
owed by a business association for or to a shareholder, certificate
holder, member, bondholder, or other security holders of the
business association, or other interest in a business association,
three (3) years after the earlier of:
(A) the date of the last dividend, stock split, or other
distribution unclaimed by the apparent owner; or
(B) the date of the second mailing of a statement of account or
other notification or communication that was:
(i) returned as undeliverable; or
(ii) made after the holder discontinued mailings to the
apparent owner.
(11) For property in an individual retirement account or another
account or plan that is qualified for tax deferral under the Internal
Revenue Code, three (3) years after the earliest of:
(A) the actual date of the distribution or attempted
distribution;
(B) the distribution date as stated in the plan or trust
agreement governing the plan; or
(C) the date specified in the Internal Revenue Code by which
distribution must begin in order to avoid a tax penalty.
(12) For a demand, savings, or matured time deposit, including a
deposit that is automatically renewable, five (5) three (3) years
after maturity or five (5) three (3) years after the date of the last
indication by the owner of interest in the property, whichever is
earlier. Property that is automatically renewable is considered
matured for purposes of this section upon the expiration of its
initial period, unless the owner has consented to a renewal at or
about the time of the renewal and the consent is in writing or is
evidenced by a memorandum or other record on file with the
holder.
(13) For property payable or distributable in the course of a
demutualization, rehabilitation, or related reorganization of a
mutual insurance company, five (5) three (3) years after the
earlier of:
(A) the date of last contact with the policyholder; or
(B) the date the property became payable or distributable.
(14) For all other property, the earlier of five (5) three (3) years
after:
(A) the owner's right to demand the property; or
(B) the obligation to pay or distribute the property;
arose.
(d) Property is payable or distributed for purposes of this chapter
notwithstanding the owner's failure to make demand or present an
instrument or a document otherwise required to receive payment.
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