58-3953. Custody of state; holder relieved from liability; reimbursement of holder paying claim; reclaiming for owner; defense of holder; payment of safe deposit box or repository charges.
58-3953
58-3953. Custody of state; holder relieved fromliability; reimbursement of holder paying claim; reclaiming for owner; defenseof holder; payment of safe deposit box or repository charges.(a) In this section, payment or delivery is made in "good faith" if:
(1) Payment or delivery was made in a reasonable attempt to comply with thisact;
(2) the holder was not then in breach of a fiduciary obligation with respectto the property and had a reasonable basis for believing, based on the factsthen known, that the property was presumed abandoned; and
(3) there is no showing that the records under which the payment or deliverywas made did not meet reasonable commercial standards of practice.
(b) Upon the payment or delivery of property to the administrator, the stateassumes custody and responsibility for the safekeeping of the property. Aholder who pays or delivers property to the administrator in good faith isrelieved of all liability arising thereafter with respect to the property.
(c) A holder who has paid money to the administrator pursuant to this act maysubsequently make payment to a person reasonably appearing to the holder to beentitled to payment and, upon a filing by the holder of proof of payment andproof that the payee was entitled to the payment, the administrator shallpromptly reimburse the holder for the payment without imposing a fee or othercharge. If reimbursement is sought for a payment made on a negotiableinstrument, including a traveler's check or money order, the holder must bereimbursed upon filing proof that the instrument was duly presented and thatpayment was made to a person who reasonably appeared to be entitled to payment.The holder must be reimbursed for payment made even if the payment was made toa person whose claim was barred under K.S.A. 58-3962 and amendments thereto.
(d) A holder who has delivered property other than money to the administratorpursuant to this act may reclaim the property if it is stillin the possession of the administrator, without paying any fee orother charge, upon filing proof that the apparent owner has claimed theproperty from the holder.
(e) The administrator may accept a holder's affidavit as sufficient proof ofthe holder's right to recover money and property under this section.
(f) If a holder pays or delivers property to the administrator ingood faith and thereafter another person claims the property from theholder or another state claims the money or property under its lawsrelating to escheat or abandoned or unclaimed property, theadministrator, upon written notice of the claim, shall defend theholder against the claim and indemnify the holder against anyliability on the claim resulting from payment or delivery of the propertyto the administrator.
(g) Property removed from a safe deposit box or other safekeepingdepository is received by the administrator subject to the holder's right to bereimbursed for the cost of the opening and to any valid lien or contractproviding for the holder to be reimbursed for unpaid rent or storage charges.The administrator shall reimburse the holder out of the proceeds remainingafter deducting the expenses incurred by the administrator in selling theproperty.
History: L. 1994, ch. 8, § 20;L. 1999, ch. 100, § 9; Jan. 1, 2000.