S T A T E O F N E W Y O R K
________________________________________________________________________
1290
2021-2022 Regular Sessions
I N A S S E M B L Y
January 8, 2021
___________
Introduced by M. of A. MAGNARELLI, DICKENS, STIRPE, D. ROSENTHAL, GOTT-
FRIED, GALEF, GUNTHER, STECK, JEAN-PIERRE, COOK, WILLIAMS, SAYEGH,
GLICK, CRUZ, FERNANDEZ -- Multi-Sponsored by -- M. of A. ABBATE,
ENGLEBRIGHT, SIMON -- read once and referred to the Committee on Ways
and Means
AN ACT to amend the abandoned property law, in relation to extending the
term for claiming unclaimed property from three to five years
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Paragraphs (a), (b), (c), (d), (e), (f), (g), (i) and (k)
of subdivision 1 of section 300 of the abandoned property law, para-
graphs (a), (b) and (k) as amended by section 1 of part A of chapter 61
of the laws of 2011, paragraph (c) as amended by section 5 of part T of
chapter 62 of the laws of 2006, paragraph (d) as amended by chapter 48
of the laws of 1978, paragraphs (e) and (f) as amended by chapter 41 of
the laws of 1987 and paragraphs (g) and (i) as added by chapter 15 of
the laws of 1983, are amended to read as follows:
(a) Any amounts due on deposits or any amounts to which a shareholder
of a savings and loan association or a credit union is entitled, held or
owing by a banking organization, which shall have remained unclaimed for
[three] FIVE years by the person or persons appearing to be entitled
thereto, including any interest or dividends credited thereon, excepting
(i) any such amount which has been reduced or increased, exclusive of
dividend or interest payment, within [three] FIVE years, or
(ii) any such amount which is represented by a passbook not in the
possession of the banking organization, which has been presented for
entry of dividend or interest credit within [three] FIVE years, or
(iii) any such amount with respect to which the banking organization
has on file written evidence received within [three] FIVE years that the
person or persons appearing to be entitled to such amounts had knowledge
thereof, or
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01773-01-1
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(iv) any such amount payable only at or by a branch office located in
a foreign country, or payable in currency other than United States
currency, or
(v) any such amount that is separately identifiable and has been set
aside to meet the burial and related expenses of an individual, provided
however that said amount shall be deemed abandoned property where it
remains unclaimed for [three] FIVE years subsequent to the death of the
individual for whom the amount was deposited.
(b) Any amounts, together with all accumulations of interest or other
increment thereon, held or owing by a banking organization for the
payment of an interest in a bond and mortgage apportioned or transferred
by it pursuant to subdivision seven of former section one hundred eight-
y-eight of the banking law as it existed prior to July first, nineteen
hundred thirty-seven, which shall have remained unclaimed by the person
or persons appearing to be entitled thereto for [three] FIVE years after
the full and final liquidation of such mortgage, excepting
(i) any such amount which has been reduced by payment to the person or
persons appearing to be entitled thereto within [three] FIVE years, or
(ii) any such amount which is represented by a certificate of share
ownership not in the possession of the banking organization, which
certificate has been presented for transfer within [three] FIVE years,
or
(iii) any such amount with respect to which the banking organization
has on file written evidence received within [three] FIVE years that the
person or persons appearing to be entitled to such amount had knowledge
thereof.
(c) Any amount held or owing by a banking organization for the payment
of a negotiable instrument under article three of the uniform commercial
code or a certified check whether negotiable or not, on which such
organization is directly liable, which instrument shall have been
outstanding for more than [three] FIVE years from the date it was paya-
ble or from the date of its issuance, if payable on demand; provided,
however, the provisions of this paragraph shall not apply
(i) to any negotiable instrument payable outside the continental
limits of the United States, or
(ii) to any instrument payable in currency other than United States
currency.
(d) After the expiration of [three] FIVE years from the opening of any
vault, safe deposit box or other receptacle by a banking organization
pursuant to the provisions of the banking law, any surplus amounts aris-
ing from a sale by such banking organization of the contents of such
vault, safe deposit box or other receptacle pursuant to the provisions
of the banking law, the balance remaining of any United States coin or
currency among the contents of such vault, safe deposit box or other
receptacle and the balance remaining of the proceeds of the principal of
or interest or dividends on any securities among the contents of such
vault, safe deposit box or other receptacle or the securities themselves
which have remained unsold by the banking organization.
(e) Any amount or security representing a dividend or other payment
received (i) after June thirtieth, nineteen hundred forty, by a banking
organization or its nominee as the record holder of any stock, bond, or
other security of any corporation, association or joint stock company to
which amount or security an unknown person (except a person entitled to
such dividend or other payment upon the surrender of other outstanding
securities) is entitled or (ii) on or after July first, nineteen hundred
seventy-four by a banking organization or its nominee other than as a
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holder of record or as holder of record for known persons on any stock,
bond or other security of any corporation, association or joint stock
company or (iii) on or after July first, nineteen hundred eighty-four by
a banking organization or its nominee on any stock, bond, or other secu-
rity of a governmental or other public issuer, (1) which shall have
remained unclaimed by the person entitled thereto for [three] FIVE years
after receipt thereof by such banking organization or its nominee, or
(2) when the stock, bond or other security with respect to which such
amount or security representing a dividend or other payment is payable
has been deemed abandoned.
(f) Except as provided in paragraph (e) of this subdivision, any
stock, bond or other security of any corporation, association or joint
stock company received on or after July first, nineteen hundred seven-
ty-seven or any stock, bond or other security of any governmental or
other public issuer received on or after July first, nineteen hundred
eighty-four by a banking organization or its nominee and held by such
banking organization or its nominee (1) as holder of record of such
stock, bond or other security, or (2) as custodian, trustee or fiduciary
for a person other than the issuer with respect to such stock, bond or
other security, or (3) for unknown persons where, for [three] FIVE
successive years, (i) all amounts payable upon such stocks, bonds, or
other securities of any corporation, association or joint stock company
and received by such banking organization or its nominee on or after
July first, nineteen hundred seventy-seven or all amounts payable upon
such stocks, bonds, or other securities of any governmental or other
public issuer and received by such banking organization or its nominee
on or after July first, nineteen hundred eighty-four have remained
unclaimed by the person entitled thereto, and (ii) no written communi-
cation concerning such stock, bond or other security has been received
from the person entitled thereto by such banking organization or its
nominee.
(g) Any stock, bond, or other security held by a banking organization
in any vault or other storage area in any capacity other than as set
forth in paragraphs (d), (e) or (f) of this subdivision where, for
[three] FIVE successive years, (i) such stock, bond, or other security
has remained unclaimed by the person entitled thereto, and (ii) no writ-
ten communication concerning such stock, bond or other security has been
received from the person entitled thereto by such banking organization.
(i) Any amount or security which shall have become payable or deliver-
able by a banking organization, as agent or trustee for a corporation,
association or joint stock company which shall have discontinued the
conduct of its business, or the corporate existence of which shall have
terminated, without the right to receive such amount having passed to a
successor or successors, and which shall have remained unpaid or unde-
livered to the person or persons entitled thereto for [three] FIVE
years.
(k) Lost property or instruments as defined in section two hundred
fifty-one of the personal property law which shall have been held by a
safe deposit company or bank for [three] FIVE years pursuant to the
provisions of section two hundred fifty-six of the personal property
law.
§ 2. Subdivisions 1, 2 and 3 of section 501 of the abandoned property
law, subdivisions 1 and 2 as added by chapter 166 of the laws of 1991,
paragraph (b) of subdivision 1 as amended by section 2 of part T of
chapter 62 of the laws of 2006, paragraph (a) of subdivision 2 as
amended by section 3 of part T of chapter 62 of the laws of 2006,
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subparagraph (i) of paragraph (b) of subdivision 2 as amended by section
4 of part T of chapter 62 of the laws of 2006 and subdivision 3 as
amended by chapter 61 of the laws of 1989, are amended to read as
follows:
1. (a) Any amount which, on or after January first, nineteen hundred
forty-seven, shall have become payable or distributable by a domestic,
foreign or public corporation or by a fiduciary to a resident as the
owner or former owner of a security as defined in paragraph (a) of
subdivision two of section five hundred of this article, shall be deemed
abandoned when the security with respect to which such amount is payable
or distributable has been deemed abandoned, or when such amount:
(i) is payable or distributable to such resident as the owner or
former owner of such security; and
(ii) has, on the thirty-first day of December in any year, remained
unpaid to or unclaimed by such resident for a period of [three] FIVE
years. For the purposes of this article, a security as defined in para-
graph (a) of subdivision two of section five hundred of this article
shall not be deemed abandoned until a period of [three] FIVE years has
elapsed from the earlier of the maturity date of such security or the
date such security has been called for redemption.
(b) Any amount which, on or after January first, nineteen hundred
forty-seven shall have become payable or distributable by a domestic or
foreign corporation or a fiduciary to a resident as the owner or former
owner of a security as defined in paragraph (b) of subdivision two of
section five hundred of this article, shall be deemed abandoned when the
security with respect to which such amount is payable or distributable
has been deemed abandoned or when such amount:
(i) is payable or distributable to such resident as the owner or
former owner of such security; and
(ii) has, on the thirty-first day of December in any year, remained
unpaid to or unclaimed by such resident for a period of [three] FIVE
years.
2. (a) Except as provided in paragraph (b) of this subdivision, any
security, as defined in paragraph (b) of subdivision two of section five
hundred of this article, of any domestic corporation or foreign corpo-
ration owned by or formerly owned by a resident shall be deemed aban-
doned where, for [three] FIVE successive years:
(i) all amounts, if any, payable or distributable thereon or with
respect thereto have remained unpaid to or unclaimed by such resident,
and
(ii) no written communication has been received from such resident by
the holder.
(b) (i) Any security, as defined in paragraph (b) of subdivision two
of section five hundred of this article, of any domestic or foreign
corporation in which a resident has an ownership interest and which is
enrolled in a plan that provides for the automatic reinvestment of divi-
dends, distributions, or other sums payable as the result of such inter-
est shall be deemed abandoned when any security owned by such resident
which is not enrolled in the plan has been deemed abandoned pursuant to
paragraph (a) of this subdivision or when, for [three] FIVE successive
years:
(1) all amounts, if any, payable thereon or with respect thereto have
remained unpaid to or unclaimed by such resident, and
(2) no written communication has been received from such resident by
the holder, and
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(3) the holder does not know the location of such resident at the end
of such [three] FIVE year period.
(ii) For purposes of this paragraph, the reinvestment of any dividend,
distribution or other sum payable shall not be considered as payment of
an amount for the purpose of extending the statutory period of inactiv-
ity after the expiration of which securities enrolled in a reinvestment
plan are deemed abandoned.
(iii) Any corporation or fiduciary holding or evidencing on its books
and records securities enrolled in a reinvestment plan shall notify the
apparent owner by certified mail that such securities will be delivered
to the state comptroller as abandoned property, pursuant to the
provisions of section five hundred two of this article, unless such
corporation or fiduciary receives written communication from the appar-
ent owner of such securities indicating knowledge of such securities
prior to the date that such securities are required to be delivered to
the state comptroller. Such letter by certified mail shall be sent
during the calendar year prior to the year in which such property would
be required to be delivered to the state comptroller, but no later than
the thirty-first day of December of such year. For purposes of this
subdivision, a signed return receipt shall constitute written communi-
cation received by the holder from the apparent owner.
(iv) All corporations or fiduciaries holding or evidencing on its
books and records securities enrolled in a reinvestment plan shall
retain, for a period of five years following the thirty-first day of
December of the year for which a report of abandoned property has been
filed, a list of (1) the dates and nature of any and all corporate
notices which have been sent via first class mail to owners of such
securities during the period to which such report relates, and (2) the
names and addresses of all owners of such securities for whom postal
authorities have returned any first class mail sent by the holder during
the period to which such report relates, and the dates on which such
mail was returned for each such owner. Nothing contained herein or in
any other provision of this chapter shall preclude the state comp-
troller, in the performance of his duties under this chapter, from veri-
fying that all such notices have been sent and whether or not such
notices have been returned to the holder by the postal authorities.
3. Any wages payable on or after July first, nineteen hundred sixty-
three by a domestic or foreign corporation and held for a resident by
such issuing corporation or held and payable by a fiduciary other than a
broker or dealer as defined in section five hundred ten of this chapter
for a resident shall be deemed to be abandoned property, where for
[three] FIVE successive years:
(a) All such wages have remained unpaid to such resident, and
(b) No written communication has been received from such resident by
the holder, and
(c) Notice regarding such wages has been sent by the corporation or
fiduciary, via first class mail, to such resident at his last known
address and such notice has been returned to the corporation or fiduci-
ary by the postal authorities for inability to locate such resident.
§ 3. Subdivisions 1, 1-a, 2, 3, 4 and 5 of section 511 of the aban-
doned property law, subdivisions 1, 2, 3 and 4 as amended by chapter 617
of the laws of 1973 and subdivisions 1-a and 5 as amended by chapter 767
of the laws of 1983, are amended to read as follows:
1. Any amount (a) received in this state after June thirtieth, nine-
teen hundred forty-six by a broker or dealer or nominee of such broker
or dealer as the holder of record of a security remaining unpaid to the
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person entitled thereto for [three] FIVE years following the receipt
thereof, or (b) when paid to such broker, dealer or nominee on or with
respect to a security which has been deemed abandoned.
1-a. Any amount (a) received in this state on or after July first,
nineteen hundred seventy-four by a broker or dealer or nominee of such
broker or dealer other than as the holder of record of a security
remaining unpaid to the person entitled thereto for [three] FIVE years
following the receipt thereof, or (b) when paid to such broker, dealer
or nominee on or with respect to a security which has been deemed aban-
doned.
2. Any amount (a) received in this state after June thirtieth, nine-
teen hundred forty-six due from a broker or dealer or nominee of such
broker or dealer to a customer which has remained unpaid to the customer
for [three] FIVE years after the date of the last entry, other than the
receipt of dividends or interest in the account of such broker, dealer
or nominee with such customer, or (b) payable on or with respect to a
security which has been deemed abandoned.
3. Any security held in this state by a broker or dealer, or nominee
of such broker or dealer, as the holder of record of a security for a
customer or for a person or persons unknown to such broker or dealer or
nominee where, for [three] FIVE successive years, all amounts paid ther-
eon or with respect thereto and received after June thirtieth, nineteen
hundred forty-six by such broker or dealer or nominee have remained
unclaimed. Provided, however, that if any amount or security specified
in THIS subdivision OR SUBDIVISION one[,] OR SUBDIVISION two [or three]
of this section is reflected, recorded, or included in an account with
respect to which such broker or dealer has on file evidence in writing
received within the [three] FIVE years immediately preceding the thir-
ty-first day of December preceding the date such amount or security
would otherwise be payable or deliverable pursuant to section five
hundred twelve OF THIS ARTICLE that the person entitled thereto had
knowledge of such account, then such amount or security shall not be
deemed abandoned property.
4. Any security held by a broker or dealer or nominee of such broker
or dealer reflected, recorded, or included in an account with respect to
which, for [three] FIVE successive years, all statements of account or
other communications which have been sent, via first class mail, to the
customer at his last known address have been returned to such broker,
dealer or nominee by the postal authorities for inability to locate the
customer, and no written communication has been received from the
customer by such broker, dealer or nominee, provided such security was
received or is held in this state by such broker, dealer or nominee or
the last known address of the customer is located in this state.
5. Any wages held and payable on or after July first, nineteen hundred
sixty-six by a broker or dealer, as defined in section five hundred ten
of this article, for the benefit of a person or persons, known or
unknown shall be deemed to be abandoned property, where for [three] FIVE
successive years:
(a) All such wages have remained unpaid to such person, and
(b) No written communication has been received from such person by the
holder, and
(c) Notice regarding such wages, if sent by the broker or dealer, via
first class mail, to such person at his last known address has been
returned to the broker or dealer by the postal authorities for inability
to locate such person.
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§ 4. Subdivision 1 of section 700 of the abandoned property law, as
amended by chapter 695 of the laws of 1964, paragraphs (a) and (c) as
amended by chapter 78 of the laws of 1976, paragraph (b) as amended by
section 13 of part A of chapter 61 of the laws of 2011, paragraph (d) as
amended by chapter 767 of the laws of 1983 and paragraph (e) as added
and paragraph (f) as amended by chapter 61 of the laws of 1989, is
amended to read as follows:
1. The following unclaimed property held or owing by life insurance
corporations shall be deemed abandoned property:
(a) Any moneys held or owing by any life insurance corporation which
shall have remained unclaimed for [three] FIVE years by the person or
persons appearing to be entitled thereto under matured life insurance
policies on the endowment plan and which are payable to any person whose
last-known address, according to the records of the corporation, is
within this state.
(b) Any moneys held or owing by any life insurance corporation which
are payable under other kinds of life insurance policies to any person
whose last-known address, according to the records of the corporation,
is within this state, where the insured, if living, would have attained
the limiting age under the mortality table on which the reserves are
based, exclusive of
(i) any policy which has within [three] FIVE years been assigned,
readjusted, kept in force by payment of premium, reinstated or subjected
to loan, or
(ii) any policy with respect to which such corporation has on file
written evidence received within [three] FIVE years that the person or
persons apparently entitled to claim thereunder have knowledge thereof.
(c) Any moneys held or owing by any life insurance corporation due to
beneficiaries or other persons entitled thereto under policies on the
lives of persons who have died where the last-known address, according
to the records of the corporation, of the person or persons appearing to
be entitled thereto is within this state, which moneys shall have
remained unclaimed by the person or persons entitled thereto for [three]
FIVE years.
(d) Any other moneys which are held or owing by any life insurance
corporation on or after July first, nineteen hundred sixty-seven consti-
tuting or representing refunds of any kind due upon or in connection
with life insurance policies payable to any person whose last known
address, according to the records of the corporation, is within this
state, which moneys shall have remained unclaimed by the person entitled
thereto for [three] FIVE years.
(e) Any moneys held or owing by any life insurance corporation on or
after July first, nineteen hundred eighty-three upon or in connection
with an annuity contract payable to any person whose last-known address,
according to the records of the corporation, is within this state, which
moneys shall have remained unclaimed by the person entitled thereto for
[three] FIVE years.
(f) If no address of the person or persons appearing to be entitled to
the unclaimed funds pursuant to PARAGRAPH (a), (b), (c), (d) or (e) of
this subdivision is known to such corporation, or if it is not definite
and certain from the records of such corporation what person is entitled
to such funds, it shall be presumed that the last-known address of the
person entitled to such funds is the same as the last-known address of
the insured or annuitant according to the records of such corporation.
Where no address can be ascertained, pursuant to this paragraph, for the
insured, annuitant or person or persons entitled to the unclaimed funds,
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such person's last-known address shall be presumed to be within this
state if the unclaimed funds are held or owing by life insurance corpo-
ration organized under the laws of this state.
§ 5. This act shall take effect immediately.