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This entry was published on 2014-09-22
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Unclaimed security deposits held by the title insurance companies
Abandoned Property (ABP) CHAPTER 1, ARTICLE 13
§ 1317. Unclaimed security deposits held by the title insurance
companies. 1. Any amount held or owing by a domestic or foreign title
insurer or by an agent or representative of such insurer as a security
deposit, relating to the transfer or financing of real property located
in this state, made as an inducement to issue a title insurance policy
shall be deemed abandoned property if unclaimed as of December
thirty-first in any year for three years from the date of deposit,
unless there has been written communication from the depositor or other
person entitled thereto to the insurer to its agent or representative
within said three-year period.

2. Any such property deemed abandoned as of the preceding December
thirty-first shall be paid and delivered to the comptroller within the
first ten days of March in each year, together with a report of said
property, including a listing of depositors and lienholders, in such
form as the comptroller may prescribe.

3. The title insurer or its agent or representative shall retain
records of the names and addresses of the depositors and lienholders,
and any records necessary to show proof of entitlement of such deposits.

4. Notwithstanding any other provision of law to the contrary, the
rights of a depositor to payment from a title insurer or its agent or
representative pursuant to a security deposit agreement and the
obligations of such insurer its agent or representative to fulfill the
requirements specified in any such agreement shall in no way be
affected, impaired or enlarged by reason of the provisions of this
section or by reason of the payment or delivery to the comptroller of
abandoned property hereunder. Claim for reimbursement may be filed with
the comptroller by any title insurer or its agent or representative who
may be required to pay or deliver any abandoned property to the
comptroller pursuant to this section.

5. The comptroller may require proof that the title insurer has made
payment on the underlying claim under the terms of the security deposit
agreement and is entitled to reimbursement therefor and after audit the
comptroller shall pay the same.

6. The comptroller shall not be liable for any action by the
comptroller made in good faith or based upon representations made by a
title insurer pursuant to this section.