55-210.3:01 - Bank deposits and funds in financial organizations
§ 55-210.3:01. Bank deposits and funds in financial organizations.
A. Any demand, savings, or matured time deposit with a banking or financialorganization, including deposits that are automatically renewable, and anyfunds paid toward the purchase of shares, a mutual investment certificate, orany other interest in a banking or financial organization is presumedabandoned unless the owner has, within five years:
1. In the case of a deposit or ownership of shares, increased or decreasedthe amount of the deposit or the number of shares owned, or presented thepassbook or other similar evidence of the deposit or ownership of shares forthe crediting of interest or dividends, or negotiated a check in payment ofinterest or dividends on a time deposit or ownership of shares;
2. Communicated in writing with the banking or financial organizationconcerning the property;
3. Otherwise indicated an interest in the property as evidenced by amemorandum or other record on file prepared by an employee of the banking orfinancial organization;
4. Owned other property to which subdivision A 1, A 2, or A 3 is applicableif the banking or financial organization communicated in writing with theowner with regard to the property that would otherwise be presumed abandonedunder this paragraph at the address to which communications regarding theother property regularly are sent;
5. Had another relationship with the banking or financial organizationconcerning which the owner has (i) communicated in writing with the bankingor financial organization, or (ii) otherwise indicated an interest asevidenced by a memorandum or other record on file prepared by an employee ofthe banking or financial organization if the banking or financialorganization communicates in writing with the owner with regard to theproperty that would otherwise be abandoned under this paragraph at theaddress to which communications regarding the other relationship regularlyare sent; or
6. A deposit made with or purchase of shares in a banking or financialorganization by a court or by a guardian pursuant to order of a court or byany other person for the benefit of a person who was an infant at the time ofthe making of such deposit or purchase of shares, which deposit or ownershipof shares is subject to withdrawal or transfer only upon the further order ofsuch court or such guardian or other person, shall not be subject to theprovisions of this chapter until one year after such infant attains the ageof eighteen years or until one year after the death of such infant, whicheveroccurs sooner. These accounts are not subject to dormant service charges.
B. Notwithstanding any other provision of this section, share accounts of amember of a state or federally chartered credit union that is subject to orcovered by life savings insurance provided by the credit union at noadditional charge to the member shall be presumed abandoned five years afterthe date of the second mailing of a statement of account or othernotification or communication that was returned as undeliverable, or afterthe date the credit union discontinued the mailings to the member, whicheveris earlier. Funds held or owing under the life savings insurance policy arepresumed abandoned pursuant to § 55-210.4:01.
C. For purposes of this section, "property" includes any interest ordividends thereon. No banking or financial organization may deduct anyservice charge or cease to accrue interest on any account, from the date theaccount is declared dormant or inactive by such organization except inconformity with cessation of interest or service charges generally assessedupon active accounts. With respect to any property described in this section,a holder may not impose any charges due to dormancy or inactivity whichdiffer from those imposed on active accounts or cease to pay interest unless:
1. There is an enforceable contract between the holder and the owner of theproperty pursuant to which the holder may impose those charges or ceasepayment of interest;
2. For property in excess of $100, the holder, no more than three monthsprior to the initial imposition of those charges or cessation of interest,has given written notice to the owner of the amount of those charges at thelast known address of the owner stating that those charges will be imposed orthat interest will cease; however, such notice need not be given with respectto charges imposed or interest ceased before July 1, 1984; and
3. When the holder imposes those charges or ceases payment of interest, itdoes not for any reason other than to correct a documented internal errorreverse or cancel those charges or retroactively credit interest with respectto such property. Notwithstanding any provision of this subsection to thecontrary, a holder that is a state-chartered credit union may refund chargesor reverse or cancel those charges or retroactively credit interest withrespect to such property to the same extent that a federally-chartered creditunion is authorized so to do pursuant to applicable provisions of federal law.
D. Any automatically renewable property to which this section applies ismatured upon the expiration of its initial time period. However, in the caseof any renewal to which the owner consents at or about the time of renewal bycommunicating in writing with the banking or financial organization orotherwise indicates consent as specified in subsection A of this section, theproperty is matured upon the expiration of the last time period for whichconsent was given. If, at the time provided for delivery in § 55-210.14, apenalty or forfeiture in the payment of interest would result from thedelivery of the property, the time for delivery is extended until the timewhen no penalty or forfeiture would result. Notwithstanding any otherprovision of this section to the contrary, any automatically renewable timedeposit that has matured shall be presumed abandoned five years after thedate of the second mailing of a statement of account or other notification orcommunication that was returned as undeliverable, or after the date theholder discontinued the mailings to the apparent owner, whichever is earlier.However, any automatically renewable time deposit for which no such statementor other notification or mailing is required to be sent by the banking orfinancial organization shall be presumed abandoned as otherwise provided inthis section.
(1984, c. 121; 1985, c. 294; 1991, c. 357; 1995, c. 624; 1996, c. 419; 2000,cc. 733, 745; 2008, cc. 90, 556.)