§ 116B-78. Agreement to locate property.
§ 116B‑78. Agreement tolocate property.
(a) Repealed by SessionLaws 2009‑312, s. 2, effective October 1, 2009, and applicable toagreements entered into on or after that date.
(a1) Agreements Covered. An agreement by an owner is covered by this section if its primary purpose isto locate, deliver, recover, or assist in the recovery of property that isdistributable to the owner or presumed abandoned.
(a2) Void Agreements. Anagreement covered by this section is void and unenforceable if it was enteredinto during the period commencing on the date the property was distributable tothe owner and extending to a time that is 24 months after the date the propertyis paid or delivered to the Treasurer. This subsection does not apply to anowner's agreement with an attorney to file a claim or special proceeding as toidentified property or contest the Treasurer's denial of a claim or a clerk'sdenial of a petition.
(b) Criteria forAgreements. An agreement covered by this section is enforceable only if it meetsall of the following criteria:
(1) Is in writing andclearly sets forth the nature of the property and the services to be rendered.
(2) Is signed by theowner, with signature notarized.
(3) Describes theproperty, which includes the type of property, the property ID held by theState Treasurer, and the name of the holder.
(4) States that theremay be other claims to the property that may reduce the share of the owner.
(5) States the value ofthe property, to the extent known, before and after the fee or othercompensation has been deducted.
(6) States clearly thefees and costs for services. Total fees and costs shall be limited as follows:
a. For an agreementcovered by this section other than one covered by G.S. 28A‑22‑11,total fees and costs shall not exceed one thousand dollars ($1,000) or twentypercent (20%) of the value of the property recovered, whichever is less.
b. For an agreementsubject to G.S. 28A‑22‑11 by an heir, unknown or known butunlocated, the primary purpose of which is to locate or recover, or assist inthe recovery, of a share in a decedent's estate, or surplus funds in a specialproceeding, total fees and costs shall not exceed twenty percent (20%) of thevalue of the property recovered.
(7) Discloses that theproperty is being held by the North Carolina Department of State Treasurer'sUnclaimed Property Program.
(c) Mineral Proceeds. If an agreement covered by this section applies to mineral proceeds and theagreement contains a provision to pay compensation that includes a portion ofthe underlying minerals or any mineral proceeds not then presumed abandoned,the provision is void and unenforceable.
(d) Means of Payment. Any person who enters into an agreement covered by this section with an ownershall be allowed to receive cash property, but not tangible property orsecurities, on behalf of the owner but shall not be authorized to negotiate thecheck made payable to the owner. Tangible property shall be delivered to theowner by the Treasurer, and securities will be reregistered into the owner'sname.
(e) Other Remedies. Thissection does not preclude an owner from asserting that an agreement covered bythis section is invalid on grounds other than as provided in subsection (b) ofthis section.
(f) Registration. Anyperson who enters into an agreement covered by this section with an owner shallregister each calendar year with the Treasurer. The information to be requiredunder this subsection shall include the person's name, address, telephonenumber, state of incorporation or residence, as applicable, and the person'ssocial security or federal identification number. A registration fee of onehundred dollars ($100.00) shall be paid to the Treasurer at the time of thefiling of the registration information. Fees received under this subsectionshall be credited to the General Fund.
(g) Unfair TradePractice. In addition to rendering an agreement void and unenforceable, afailure to comply with the provisions of this section constitutes an unfair ordeceptive trade practice under G.S. 75‑1.1. (1979, 2nd Sess., c. 1311,s. 1; 1989, c. 114, s. 6; 1999‑460, s. 6; 2009‑312, s. 2.)