67-4a-204 - Deposits in a financial institution and funds in financial organizations.
67-4a-204. Deposits in a financial institution and funds in financial organizations.
(1) Each deposit in a financial institution and any ownership purchase funds held by abanking or financial organization are considered abandoned after three years if the location of theowner is unknown, unless:
(a) the owner, within the three years, has:
(i) in the case of a deposit in a financial institution, increased or decreased its amount orpresented the passbook or other similar evidence of the deposit for the crediting of interest;
(ii) communicated in writing with the banking or financial organization concerning theproperty; and
(iii) otherwise indicated an interest in the property as evidenced by a memorandum orother record on file prepared by an employee of the banking or financial organization;
(b) (i) the owner, within three years, has owned other property to which Subsection(1)(a)(i), (ii), or (iii) applies; and
(ii) the banking or financial organization communicates in writing with the owner withregard to the property that would otherwise be considered abandoned at the address to whichcommunications regarding the other property regularly are sent; or
(c) (i) the owner, within three years, has had another relationship with the banking orfinancial organization concerning which the owner has communicated in writing with thebanking or financial organization; and
(ii) the banking or financial organization communicates in writing with the owner withregard to the property that would otherwise be considered abandoned at the address to whichcommunications regarding the other relationship regularly are sent.
(2) A holder may not impose any charge due to dormancy or inactivity or cease paymentof interest on any property described in Subsection (1) unless:
(a) the holder is specifically exempted by federal law; or
(b) (i) there is a valid and enforceable written contract between the issuer and the ownerof the instrument that authorizes the issuer to impose a charge; and
(ii) the issuer regularly imposes those charges and does not regularly reverse or otherwisecancel them.
(3) (a) Except as provided in Subsection (3)(b), any property described in Subsection (1)that is automatically renewable is considered matured for purposes of Subsection (1) when itsinitial time period expires.
(b) If the owner consents to any renewal at or about the time of renewal bycommunicating in writing with the banking or financial organization or otherwise indicatingconsent as evidenced by a memorandum or other record on file prepared by an employee of theorganization, the property is considered matured for purposes of Subsection (1) when the lasttime period for which consent was given expires.
(c) If, at the time provided for delivery in Section 67-4a-302, a penalty or forfeiture in thepayment of interest would result from the delivery of the property, the time for delivery isextended until the time when no penalty or forfeiture would result.
Amended by Chapter 18, 2007 General Session