Relates to the definition of communication for purposes of abandoned property; includes any written, electronic, or personal contact between an owner and a holder of record that can be documented and that reflects an owner's awareness of the existence of the property.
STATE OF NEW YORK
________________________________________________________________________
5059--A
2017-2018 Regular Sessions
IN SENATE
March 6, 2017
___________
Introduced by Sen. VALESKY -- read twice and ordered printed, and when
printed to be committed to the Committee on Finance -- reported favor-
ably from said committee and committed to the Committee on Rules --
committee discharged, bill amended, ordered reprinted as amended and
recommitted to said committee
AN ACT to amend the abandoned property law, in relation to the defi-
nition of communication for purposes of abandoned property
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subparagraph (iii) of paragraph (a) and subparagraph (iii)
2 of paragraph (b) of subdivision 1 of section 300 of the abandoned prop-
3 erty law, as amended by section 1 of part A of chapter 61 of the laws of
4 2011, are amended and a new subdivision 5 is added to read as follows:
5 (iii) any such amount with respect to which the banking organization
6 has on file [written] evidence received within three years that the
7 person or persons appearing to be entitled to such amounts had knowledge
8 thereof, or
9 (iii) any such amount with respect to which the banking organization
10 has on file [written] evidence received within three years that the
11 person or persons appearing to be entitled to such amount had knowledge
12 thereof.
13 5. For purposes of this section, "communication" shall include any
14 written, electronic, or personal contact between an owner and a holder
15 of record that can be documented and that reflects an owner's awareness
16 of the existence of the property including, but not limited to, written
17 correspondence, a telephonic or voice over internet protocol (VOIP)
18 communication, a transaction effected through an automated clearing
19 house (ACH) or similar electronic funds processing method, signing on to
20 a password protected account in which the securities may be accessed by
21 their owner, or effecting a transaction in the owner's account, includ-
22 ing automated transactions that have been authorized by the owner.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD10433-02-7
S. 5059--A 2
1 § 2. Subparagraph (ii) of paragraph (a) of subdivision 2 of section
2 501 of the abandoned property law, as amended by section 3 of part T of
3 chapter 62 of the laws of 2006, is amended to read as follows:
4 (ii) no [written] communication has been received from such resident
5 by the holder.
6 § 3. Clause 2 of subparagraph (i) of paragraph (b) of subdivision 2 of
7 section 501 of the abandoned property law, as amended by section 4 of
8 part T of chapter 62 of the laws of 2006, is amended to read as follows:
9 (2) no [written] communication has been received from such resident by
10 the holder, and
11 § 4. Subparagraph (iii) of paragraph (b) of subdivision 2 of section
12 501 of the abandoned property law, as added by chapter 166 of the laws
13 of 1991, is amended to read as follows:
14 (iii) Any corporation or fiduciary holding or evidencing on its books
15 and records securities enrolled in a reinvestment plan shall notify the
16 apparent owner by certified mail that such securities will be delivered
17 to the state comptroller as abandoned property, pursuant to the
18 provisions of section five hundred two of this article, unless such
19 corporation or fiduciary receives [written] communication from the
20 apparent owner of such securities indicating knowledge of such securi-
21 ties prior to the date that such securities are required to be delivered
22 to the state comptroller. Such letter by certified mail shall be sent
23 during the calendar year prior to the year in which such property would
24 be required to be delivered to the state comptroller, but no later than
25 the thirty-first day of December of such year. For purposes of this
26 subdivision, a signed return receipt shall constitute written communi-
27 cation received by the holder from the apparent owner.
28 § 5. Paragraph (b) of subdivision 3 of section 501 of the abandoned
29 property law, as amended by chapter 61 of the laws of 1989, is amended
30 and a new subdivision 6 is added to read as follows:
31 (b) No [written] communication has been received from such resident by
32 the holder, and
33 6. For purposes of this section, "communication" shall include any
34 written, electronic, or personal contact between an owner and a holder
35 of record that can be documented and that reflects an owner's awareness
36 of the existence of the property including, but not limited to, written
37 correspondence, a telephonic or voice over internet protocol (VOIP)
38 communication, a transaction effected through an automated clearing
39 house (ACH) or similar electronic funds processing method, signing on to
40 a password protected account in which the securities may be accessed by
41 their owner, or effecting a transaction in the owner's account, includ-
42 ing automated transactions that have been authorized by the owner.
43 § 6. Subdivisions 3 and 4 of section 511 of the abandoned property
44 law, as amended by chapter 617 of the laws of 1973, are amended to read
45 as follows:
46 3. Any security held in this state by a broker or dealer, or nominee
47 of such broker or dealer, as the holder of record of a security for a
48 customer or for a person or persons unknown to such broker or dealer or
49 nominee where, for three successive years, all amounts paid thereon or
50 with respect thereto and received after June thirtieth, nineteen hundred
51 forty-six by such broker or dealer or nominee have remained unclaimed.
52 Provided, however, that if any amount or security specified in this
53 subdivision or subdivisions one[,] or two [or three] of this section is
54 reflected, recorded, or included in an account with respect to which
55 such broker or dealer has on file evidence in writing received within
56 the three years immediately preceding the thirty-first day of December
S. 5059--A 3
1 preceding the date such amount or security would otherwise be payable or
2 deliverable pursuant to section five hundred twelve of this article that
3 the person entitled thereto had knowledge of such account, then such
4 amount or security shall not be deemed abandoned property.
5 4. Any security held by a broker or dealer or nominee of such broker
6 or dealer reflected, recorded, or included in an account with respect to
7 which, for three successive years, all statements of account or other
8 communications which have been sent, via first class mail, to the
9 customer at his last known address have been returned to such broker,
10 dealer or nominee by the postal authorities for inability to locate the
11 customer, and no [written] communication has been received from the
12 customer by such broker, dealer or nominee, provided such security was
13 received or is held in this state by such broker, dealer or nominee or
14 the last known address of the customer is located in this state.
15 § 7. Paragraph (b) of subdivision 5 of section 511 of the abandoned
16 property law, as amended by chapter 767 of the laws of 1983, is amended
17 and a new subdivision 7 is added to read as follows:
18 (b) No [written] communication has been received from such person by
19 the holder, and
20 7. For purposes of this section, "communication" shall include any
21 written, electronic, or personal contact between an owner and a holder
22 of record that can be documented and that reflects an owner's awareness
23 of the existence of the property including, but not limited to, written
24 correspondence, a telephonic or voice over internet protocol (VOIP)
25 communication, a transaction effected through an automated clearing
26 house (ACH) or similar electronic funds processing method, signing on to
27 a password protected account in which the securities may be accessed by
28 their owner, or effecting a transaction in the owner's account, includ-
29 ing automated transactions that have been authorized by the owner.
30 § 8. Subparagraph (ii) of paragraph (b) of subdivision 1 of section
31 700 of the abandoned property law, as amended by section 13 of part A of
32 chapter 61 of the laws of 2011, is amended to read as follows:
33 (ii) any policy with respect to which such corporation has on file
34 written or electronic evidence received within three years that the
35 person or persons apparently entitled to claim thereunder have knowledge
36 thereof.
37 § 9. Paragraph (f) of subdivision 1 of section 700 of the abandoned
38 property law, as amended by chapter 61 of the laws of 1989, is amended
39 to read as follows:
40 (f) If no address of the person or persons appearing to be entitled to
41 the unclaimed funds pursuant to paragraphs (a), (b), (c), (d) or (e) of
42 this subdivision is known to such corporation, or if it is not definite
43 and certain from the records of such corporation what person is entitled
44 to such funds, it shall be presumed that the last-known address of the
45 person entitled to such funds is the same as the last-known address of
46 the insured or annuitant according to the records of such corporation.
47 Where no address can be ascertained, pursuant to this paragraph, for the
48 insured, annuitant or person or persons entitled to the unclaimed funds,
49 such person's last-known address shall be presumed to be within this
50 state if the unclaimed funds are held or owing by life insurance corpo-
51 ration organized under the laws of this state.
52 § 10. This act shall take effect immediately.
