GENERAL ASSEMBLY OF NORTH CAROLINA
1993 SESSION

CHAPTER 541
HOUSE BILL 765

AN ACT TO MAKE AMENDMENTS TO THE LAW OF ESCHEATS AND UNCLAIMED PROPERTY AND TO LIMIT MOLDERS' OBLIGATIONS TO RETAIN DIES, MOLDS, FORMS, OR PATTERNS.

The General Assembly of North Carolina enacts:

Section 1.  G.S. 116B-11 reads as rewritten:
"§ 116B-11.  Property subject to custody and control of the State.
Personal property that is deemed unclaimed or abandoned under this Chapter is subject to the custody and control of the State if it is:
(1)	Tangible. – Tangible and physically located within the State; or
(2)	Intangible. – Intangible, and any of the following applies:
a.	The last known address of the owner, as shown by the records of the holder, is within the State.
b.	The last known address of the owner as shown by the records of the holder is within a jurisdiction, the laws of which do not provide for the escheat or custodial taking of the property, and either of the following applies:
1.	The domicile of the holder is within the State.
2.	The intangible property was issued by this State, a political subdivision of this State, a business association, financial institution, or another person or entity, incorporated, organized, created, or otherwise located in this State.
c.	No address of the owner appears on the records of the holder and either of the following applies:
1.	The domicile of the holder is within the State.
2.	The intangible property was issued by this State, a political subdivision of this State, a business association, financial institution, or another person or entity, incorporated, organized, created, or otherwise located in this State.
d.	No address of the owner appears on the records of the holder and the domicile of the holder is not within the State, but it is proved that the last known address of the owner is in the State.
e.	It is a sum payable on a money order, a traveler's check, or a similar written instrument and one of the following applies:
1.	The instrument was purchased within the State, as shown by the records of the holder.
2.	The place of purchase of the instrument is not shown in the records of the holder and the holder's principal place of business is within the State.
3.	The place of purchase of the instruments, as shown by the records of the holder, is within a jurisdiction, the laws of which do not provide for the escheat or custodial taking of the property, and the holder's principal place of business is within the State."
Sec. 2.  G.S. 116B-12 reads as rewritten:
"(a)	Most Deposits and Funds. – Any demand, savings, or matured time deposit, other than a certificate of deposit, in a financial institution or any funds paid toward the purchase of shares or another interest in a financial institution shall be presumed abandoned if the financial institution is unable to locate the owner and if, within the preceding five years, as to any demand deposit, or a savings or time deposit or interest having a value of one thousand dollars ($1,000) or less, or within the preceding 10 years, as to any such savings or time deposit or interest having a value of more than one thousand dollars ($1,000), 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.
(a1)	Certificates of Deposit. – A certificate of deposit issued by a financial institution shall be presumed abandoned if the financial institution is unable to locate the certificate's owner and if, within the 10-year period beginning on the initial maturity date of the certificate, the owner did not take any of the actions listed in subsection (a) of this section.  The financial institution shall make the same efforts to locate a certificate's owner as it would make under subsection (a) if the certificate were a demand deposit.
(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 10 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, not to exceed the charges levied against similar active deposits or accounts, may be imposed on inactive deposits or accounts until the date on which the amount of the deposits or accounts must be remitted to the Treasurer under G.S. 116B-31.
(2)	Interest or dividends due on inactive deposits, accounts, funds, or shares shall be paid until the date on which the amount of the deposits, accounts, or funds, or the shares must be remitted or delivered to the Treasurer under G.S. 116B-31."
Sec. 3.  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. 4.  Article 2 of Chapter 116B of the General Statutes is amended by adding a new section to read:
"§ 116B-22.  Certain intangible property.
(a)	Property. – Securities, principal, interest and dividends accruing to the securities, and other property that is subject to the custody and control of the State by application of G.S. 116B-11(2)b.2. or (2)c.2. shall be presumed abandoned if, within the shorter of the following periods after the date set by the issuer of the property for paying or delivering the property to its owner, the owner has not claimed the property or corresponded in writing with the holder:
(1)	Five years.
(2)	The time period set by another state for taking custody of the property pursuant to that state's unclaimed property laws.
(b)	Income and Charges. – Any interest, dividends, or other earnings due on property presumed abandoned under subsection (a) of this section must be paid during the period prior to abandonment.  Charges that are authorized by statute or by a contract may be deducted from the property during that period."
Sec. 5.  G.S. 116B-28 reads as rewritten:
"§ 116B-28.  Notice by holders to owners required.
(a)	Insurers. – Every insurer required to file a report pursuant to G.S. 116B-29 shall determine, prior to March 1 of each year, all owners who, as of the preceding December 31, appear entitled to property having a value of fifty dollars ($50.00) or more and presumed abandoned under this Chapter and, on or before March 1, shall mail, first class postage prepaid, a notice to the last known address of each owner.
(b)	Other Holders. – Every holder, other than insurers, required to file a report pursuant to G.S. 116B-29 shall determine, prior to November 1 of each year, all owners who, as of the preceding June 30, appear entitled to property having a value of fifty dollars ($50.00) or more and presumed abandoned under this Chapter and, on or before November 1, shall mail, first class postage prepaid, a notice to the last known address of each owner.  A holder need not mail a notice to an owner for which the holder has no address.
(c)	Contents. – Each notice required by this section shall contain all of the following:
(1)	A statement that, according to the records of the holder, property is being held to which the addressee appears entitled and the amount or description of the property.
(2)	The name and address of the person holding the property and any necessary information regarding changes of name and address of the holder.
(3)	A statement that unless the owner presents a satisfactory proof of claim to the holder by the following February 1, if the holder is not an insurer, or October 1, if the holder is an insurer, the holder will send the property to the Treasurer, to whom all further claims must be directed.
(d)	Charges for Notices. – The holder shall be entitled to deduct from the property of each owner to whom notice is sent an amount not to exceed fifty cents (50¢) to defray the expense of mailing the notice.  If the property is other than cash in the possession of the holder, the holder may submit to the Escheat Fund, with the certification required by subsection (e) of this section, a sworn itemized statement of charges for notices mailed, not to exceed fifty cents (50¢) per notice, which shall be paid by the Escheat Fund within 30 days following receipt of the statement.  The Escheat Fund shall charge the accounts of the respective owners with any charges so paid to holders.
(e)	Certification of Mailing; Penalties; Right of Owners. – Every holder filing a report pursuant to G.S. 116B-29 shall certify to the Treasurer therewith that the notices required by subsections (a) and (b) of this section have been mailed to the last known address of every owner named in the report.  Failure or refusal to certify after written demand by the Treasurer or filing a false certification shall be a misdemeanor, punishable, upon conviction, by a fine of not less than five hundred dollars ($500.00) nor more than five thousand dollars ($5,000) as the court, in its discretion, shall determine.  Any owner who has suffered loss or damage by reason of the failure of a holder to mail the notice required by this section may recover actual loss or damage from the holder in an appropriate action at law.
(f)	Other Notice. – All holders shall make reasonable efforts to locate and communicate with the owner prior to filing the report required by G.S. 116B-29 in order to prevent abandonment from being presumed, including the exercise of due diligence to determine whether the holder possesses a different address for the owner.
	."
Sec. 6.  G.S. 116B-29 reads as rewritten:
"§ 116B-29.  Report of abandoned property by holder to Treasurer.
(a)	Reports to Treasurer. – Every holder of property, tangible or intangible, presumed abandoned under this Chapter shall report to the State Treasurer with respect to that property.
(b)	Contents. – The report shall be verified and shall include:
(1)	The name, if known, and last known address, if any, of each person appearing from the records of the holder to be the owner of any property of the value of fifty dollars ($50.00) or more;
(2)	In the case of unclaimed funds of an insurer, the full name of the insured or annuitant and his last known address according to the insurer's records;
(3)	The nature and identifying number, if any, or description of the property and the amount appearing from the records to be due, except that items of value under fifty dollars ($50.00) each may be reported in the aggregate;
(4)	A certification that the property reported has been held for the period required by Article 2 of this Chapter; and
(5)	Other information which the Treasurer prescribes by rule.
(c)	Names of Prior Holders. – If the person holding property presumed abandoned is a successor to other persons who previously held the property for the owner, or if the holder has changed his name while holding the property, he shall file with his report all prior known names and addresses of each holder of the property.
(d)	Time of Filing. – The report of holders other than insurers shall be filed before March 1 of each year and cover property presumed abandoned as of the prior June 30.  The report of insurers shall be filed before November 1 of each year and cover property presumed abandoned 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.  
(e)	Verification. – Verification, if made by a partnership, shall be executed by a partner; if made by an unincorporated association or private corporation, by an officer; and if made by a public corporation, by its chief fiscal officer.  Notwithstanding the above, any person authorized to bind the appropriate entity may make this verification.
(f)	Negative Report. – If a holder receives a report form from the State Treasurer and holds no abandoned property, then a negative report must be filed."
Sec. 7.  G.S. 116B-31 reads as rewritten:
"§ 116B-31.  Payment or delivery of abandoned property.
(a)	Due Date. – A holder shall remit or deliver to the Treasurer with the report filed under G.S. 116B-29 any property required to be included in the report.  These remittances shall be made payable to the 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. 8.  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 a claim may be made or an action or a 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. 9.  Article 13 of Chapter 66 of the General Statutes is amended by adding a new section to read:
"§ 66-67.3.  Disposal of dies, molds, forms, and patterns.
(a)	Definitions. – The following definitions apply in this section:
(1)	Customer. – Either of the following:
a.	A person who causes or caused a molder to fabricate, cast, or otherwise make a die, mold, form, or pattern.
b.	A person who causes or caused a molder to use a die, mold, form, or pattern to manufacture, assemble, or otherwise make a product.
(2)	Molder. – A tool or die maker or any other person who does either of the following:
a.	Fabricates, casts, or otherwise makes a die, mold, form, or pattern.
b.	Uses a die, mold, form, or pattern to manufacture, assemble, or otherwise make a product.
(b)	Ownership and Transfer. – A customer has all rights, title, and interest to a die, mold, form, or pattern made or used by a molder on behalf of the customer unless an agreement provides otherwise.  If the customer does not claim possession of the die, mold, form, or pattern from the molder within three years after the last time it is used, the molder may choose to obtain all rights, title, and interest to the die, mold, form, or pattern by operation of law unless a written agreement provides otherwise.
(c)	Procedure. – If a molder chooses to have all rights, title, and interest to a die, mold, form, or pattern transferred to the molder by operation of law, the molder must send a written notice, by registered mail, return receipt requested, to the customer and to any known secured creditor.  The notice must state that the molder intends to terminate the customer's rights, title, and interest in a mold, die, form, or pattern by having those rights, title, and interest transferred to the molder by operation of law pursuant to this section.  The notice to the customer must be sent to the customer's last known address or, if the customer has designated in writing a different address for receipt of the notice, to the designated address.  If a return receipt cannot be obtained for a notice that is mailed, the molder may give notice by publication in accordance with G.S. 1A-1, Rule 4(j1).  The rights, title, and interest in a die, mold, form, or pattern are transferred by operation of law to a molder who gives notice as required by this section unless, within 30 days after the date the molder receives acknowledgement of the return receipt of a notice that is mailed or 45 days after the date of first publication of a notice made by publication, the customer takes possession of the die, mold, form, or pattern, or makes other contractual arrangements with the molder for taking possession of or for storing the die, mold, form, or pattern.
(d)	Use Upon Transfer. – A molder to whom the rights, title, and interest in a die, mold, form, or pattern is transferred by operation of law under this section may destroy or otherwise dispose of the die, mold, form, or pattern as the molder's own property without any risk of liability to the customer.  The molder may not use the die, mold, form, or pattern for any other purpose.
(e)	Scope. – This section does not affect a right of a customer under federal patent or copyright law or any state or federal law pertaining to unfair competition."
Sec. 10.  Sections 1 through 8 of this act become effective December 1, 1993.  The remaining sections of this act are effective upon ratification.  Sections 1 through 8 of this act apply to property held before, on, or after the effective date, regardless of when the property became or becomes presumptively abandoned.  Section 9 applies to dies, molds, forms, or patterns made or used before, on, or after the effective date.
In the General Assembly read three times and ratified this the 24th day of July, 1993.

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Marc Basnight
President Pro Tempore of the Senate

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Daniel Blue, Jr.
Speaker of the House of Representatives