GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1993

H	1 

HOUSE BILL 765

Short Title:  Escheat/Abandoned Property.	(Public)
─────────────────────────────────────── 
Sponsors: Representative DeVane.
─────────────────────────────────────── 
Referred to:  Finance.
─────────────────────────────────────── 

April 6, 1993

A BILL TO BE ENTITLED
AN ACT TO MAKE AMENDMENTS TO THE LAW OF ESCHEATS AND UNCLAIMED PROPERTY.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 116B-12 reads as rewritten:
"(a)	Deposits and Funds. – Any demand, savings or matured time deposit in a financial institution, or any funds paid toward the purchase of shares or other interest in a financial institution shall be presumed abandoned if the financial institution has been unable to locate the owner within the preceding five years and if the owner has not:
(1)	Increased or decreased the amount of the deposit, shares or claim, or presented to the holder the passbook, evidence of deposit or other appropriate record for the crediting of interest or dividends;
(2) 	Corresponded in writing with the holder concerning the deposit, shares or claim;
(3) 	Otherwise indicated an interest in the deposit, shares or claim as evidenced by a writing on file with the holder; or
(4)	Maintained another account at the same financial institution that complies with (1), (2), or (3) above.
The financial institution shall make reasonable efforts to locate the owner and to determine whether its records disclose a different address for the owner.
(b)	Written Instruments. – Any sum payable on a check certified in the State or on any written instrument issued in the State on which a financial institution is directly liable shall be presumed abandoned if, within five years from the date payable, or from the date of issuance, if payable on demand, the owner has not:
(1) 	Negotiated the instrument;
(2) 	Corresponded in writing with the financial institution concerning it; nor
(3) 	Otherwise indicated an interest by a writing on file with the financial institution.
(c)	Traveler's Checks. – Any sum payable on a traveler's check, money order or a similar written instrument on which a financial institution or other business association is directly liable shall be presumed abandoned if, within 15 years from the date payable, or from the date of issuance, if payable on demand, the owner has not:
(1) 	Negotiated the instrument;
(2) 	Corresponded in writing with the financial institution or other business association concerning it; nor
(3) 	Otherwise indicated an interest as indicated by a writing on file with the financial institution or other business association.
(d)	Safe Deposit Box. – Any funds or other personal property, tangible or intangible, contained in or removed from a safe deposit box or other safekeeping repository shall be presumed abandoned if the owner has not claimed the property within the period established by G.S. 53-43.7 and shall be delivered to the State Treasurer.
(e)	Charges, Interest or Dividends on Abandoned Property. –
(1) 	Reasonable service charges may be levied against deposits or accounts during the period prior to abandonment, provided those charges may not exceed the charges levied against similar active deposits or accounts.
(2) 	Interest or dividends due on any deposits, accounts, funds or shares presumed to be abandoned shall not be discontinued or diverted because of the inactivity or during the period prior to abandonment."
Sec. 2. G.S. 116B-13 reads as rewritten:
"§ 116B-13.  Property held by life insurers.
(a)	Funds Owed under a Policy or Contract. – Any funds held or owing by a life insurer that are due and payable under any life or endowment insurance policy or annuity contract which has matured or terminated shall be presumed abandoned if they have not been claimed or paid within five years after becoming due or payable as  established from the insurer's records.  Funds payable according to the insurer's records are deemed due and payable although the policy or contract has not been surrendered as required.  The insurer shall make reasonable efforts to locate the insured or annuitant and to determine whether its records disclose a different address for the insured or annuitant.
(b)	Presumption of Address of Beneficiary. – If a person other than the insured or annuitant is entitled to the funds and no address of the person is known to the insurer or if it is not definite and certain from the records of the insurer what person is entitled to the funds, it is presumed that the last known address of the person entitled to the funds is the same as the last known address of the insured or annuitant according to the records of the insurer.
(c)	Presumption of Maturity. – A life insurance policy not matured by actual proof of the death of the insured is deemed to be matured, and the proceeds are deemed to be due and payable if the policy was in force when the insured attained the limiting age under the mortality table on which the reserve is based, unless the person appearing entitled thereto has, within the preceding five years, assigned, readjusted or paid premiums on the policy, negotiated a dividend check, made payments on a loan, or corresponded in writing with the life insurer concerning the policy.
(d)	Negotiable Instruments. – Any sum for the payment of a claim under an insurance policy or contract, which sum is payable on a negotiable instrument on which the insurer is the maker or drawer shall be presumed abandoned if, within five years from the date payable, or from the date of issuance, if payable on demand, the owner has not:
(1) 	Negotiated the instrument;
(2) 	Corresponded in writing with the insurer concerning it; nor
(3) 	Otherwise indicated an interest by a writing on file with the insurer."
Sec. 3.  G.S. 116B-29(d) reads as rewritten:
"(d)	Time of Filing. – The report shall be filed before March 1 of  each year as of the prior June 30, but the report of insurers shall be filed before November 1 of each year as of the prior December 31. The Treasurer, in his discretion, may postpone the reporting date for a period not exceeding six months upon written request by any person required to file a report.  The Department of Revenue may use the dates prescribed in this subsection for insurers in filing reports of unclaimed property with the State Treasurer."
Sec. 4.  G.S. 116B-31 reads as rewritten:
"§ 116B-31.  Payment or delivery of abandoned property.
(a)	Insurers. – Every insurer shall remit or deliver to the Treasurer on or before November 1, along with the report required by G.S. 116B-29, any property deemed abandoned under the provisions of this Chapter and reported as required by G.S. 116B-29.  These remittances shall be made payable to the Treasurer.
(b)	Other Holders. – All other holders shall remit or deliver to the Treasurer with the report required to be filed by G.S. 116B-29 any property deemed abandoned under the provisions of this Chapter.  These remittances shall be made payable to the State Treasurer.
(c)	Tangible Personal Property. – Prior to the delivery of any tangible personal property to the Treasurer, the holder shall report to the Treasurer the nature, condition and approximate value of each article of such property.  The Treasurer may determine that delivery of specific tangible personal property is not in the best interest of the State, either because the sum or value is too small or for other good reason.  The Treasurer shall notify the holder of the property of his determination and may refuse to accept delivery and custody of that property."
Sec. 5.  G.S. 116B-34 reads as rewritten:
"§ 116B-34.  Periods of limitation not a bar.
The expiration of any period of time specified by statutes, contract, or court order, during which an action or proceeding may be commenced or enforced to obtain payment of a claim for money or recovery of property, shall not prevent the money or property from being presumed abandoned property, nor affect any duty to file a report under this Chapter or to pay or deliver abandoned property to the Treasurer."
Sec. 6.  This act becomes effective December 1, 1993.