31A-27a-705 - Unclaimed and withheld funds.
31A-27a-705. Unclaimed and withheld funds.
(1) (a) If any funds of the receivership estate remain unclaimed after the final distributionunder Section 31A-27a-703, the funds shall be placed in a segregated unclaimed funds accountheld by the commissioner.
(b) If the owner of any of the funds described in Subsection (1)(a) presents proof ofownership satisfactory to the commissioner within two years after the day on which thedelinquency proceeding terminates, the commissioner shall remit the funds to the owner.
(c) The interest earned on funds held in the unclaimed funds account may be used to payany administrative costs related to the handling or return of unclaimed funds.
(2) (a) If any amounts held in the unclaimed funds account remain unclaimed for twoyears after the day on which the delinquency proceeding terminates, the commissioner may file amotion for an order directing the disposition of the funds in the court in which the delinquencyproceeding was pending.
(b) Any costs incurred in connection with the motion made under this Subsection (2)may be paid from the unclaimed funds account.
(c) A motion under this Subsection (2) shall identify:
(i) the name of the insurer;
(ii) the names and last-known addresses of the one or more persons entitled to theunclaimed funds, if known; and
(iii) the amount of the funds.
(d) Notice of the motion shall be given as directed by the court.
(e) Upon a finding by the court that the funds have not been claimed within two yearsafter the day on which the delinquency proceeding terminates:
(i) the court shall order that a claim for unclaimed funds, and any interest earned on theclaim that has not been expended under Subsection (1), is abandoned; and
(ii) the funds shall be disbursed under one of the following methods, the amounts maybe:
(A) deposited in the general receivership expense account under Subsection (3);
(B) transferred to the state treasurer and deposited into the General Fund; or
(C) (I) used to reopen the receivership in accordance with Section 31A-27a-803; and
(II) distributed to the known claimants with approved claims.
(3) The commissioner may establish an account for the following purposes:
(a) to pay general expenses related to the administration of receiverships; or
(b) to advance funds to a receivership that does not have sufficient cash to pay itsoperating expenses.
(4) Any advance to a receivership estate under Subsection (3)(b) may be treated:
(a) as a claim under Section 31A-27a-701 as may be agreed at the time the advance ismade; or
(b) in the absence of an agreement described in Subsection (4)(a), in a prioritydetermined to be appropriate by the receivership court.
(5) If the commissioner determines at any time that the funds in the account created inSubsection (3) exceed the amount required, the commissioner may transfer the funds or any partof the funds to the state treasurer, and the transferred funds shall be deposited into the GeneralFund.
Enacted by Chapter 309, 2007 General Session