First Regular Session 114th General Assembly (2005)


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    SENATE ENROLLED ACT No. 198




     AN ACT to amend the Indiana Code concerning property.

Be it enacted by the General Assembly of the State of Indiana:

SOURCE: IC 32-34-1-20; (05)SE0198.1.1. -->     SECTION 1. IC 32-34-1-20 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 20. (a) For purposes of this section, an indication of interest in the property by the owner:
        (1) does not include a communication with an owner by an agent of the holder who has not identified in writing the property to the owner; and
        (2) includes the following:
            (A) With respect to an account or underlying shares of stock or other interest in a business association or financial organization:
                (i) the cashing of a dividend check or other instrument of payment received; or
                (ii) evidence that the distribution has been received if the distribution was made by electronic or similar means.
            (B) A deposit to or withdrawal from a bank account.
            (C) The payment of a premium with respect to a property interest in an insurance policy.
            (D) The mailing of any correspondence in writing from a financial institution to the owner, including:
                (i) a statement;
                (ii) a report of interest paid or credited; or
                (iii) any other written advice;
            relating to a demand, savings, or matured time deposit

account, including a deposit account that is automatically renewable, or any other account or other property the owner has with the financial institution if the correspondence is not returned to the financial institution for nondelivery.
            (E) Any activity by the owner that concerns:
                (i) another demand, savings, or matured time deposit account or other account that the owner has with a financial institution, including any activity by the owner that results in an increase or decrease in the amount of any other account; or
                (ii) any other relationship with the financial institution, including the payment of any amounts due on a loan;
            if the mailing address for the owner contained in the financial institution's books and records is the same for both an inactive account and for a related account.
    (b) The application of an automatic premium loan provision or other nonforfeiture provision contained in an insurance policy does not prevent the policy from maturing or terminating if the insured has died or the insured or the beneficiary of the policy otherwise has become entitled to the proceeds before the depletion of the cash surrender value of the policy by the application of those provisions.
    (c) Property that is held, issued, or owed in the ordinary course of a holder's business is presumed abandoned if the owner or apparent owner has not communicated in writing with the holder concerning the property or has not otherwise given an indication of interest in the property during the following times:
        (1) For traveler's checks, fifteen (15) years after issuance.
        (2) For money orders, seven (7) years after issuance.
        (3) For consumer credits, three (3) years after the credit becomes payable.
        (4) For amounts owed by an insurer on a life or an endowment insurance policy or an annuity contract:
            (A) if the policy or contract has matured or terminated, three (3) years after the obligation to pay arose; or
            (B) if the policy or contract is payable upon proof of death, three (3) years after the insured has attained, or would have attained if living, the limiting age under the mortality table on which the reserve is based.
        (5) For property distributable by a business association in a course of dissolution, one (1) year after the property becomes distributable.
        (6) For property or proceeds held by a court or a court clerk, five

(5) years after the property or proceeds become distributable. The property or proceeds must be treated as unclaimed property under IC 32-34-3.
        (7) For property held by a state or other government, governmental subdivision or agency, or public corporation or other public authority, one (1) year after the property becomes distributable.
        (8) For compensation for personal services, one (1) year after the compensation becomes payable.
        (9) For deposits and refunds held for subscribers by utilities, one (1) year after the deposits or refunds became payable.
        (10) For stock, dividends, profits, distributions, interest, redemption, payments on principal, or any other sum held or owed by a business association for or to a shareholder, certificate holder, member, bondholder, or other security holders of the business association, or other interest in a business association, five (5) three (3) years after the earlier of:
            (A) the date of the last dividend, stock split, or other distribution unclaimed by the apparent owner; or
            (B) the date of the second mailing of a statement of account or other notification or communication that was:
                (i) returned as undeliverable; or
                (ii) made after the holder discontinued mailings to the apparent owner.
        (11) For property in an individual retirement account or another account or plan that is qualified for tax deferral under the Internal Revenue Code, three (3) years after the earliest of:
            (A) the actual date of the distribution or attempted distribution;
            (B) the distribution date as stated in the plan or trust agreement governing the plan; or
            (C) the date specified in the Internal Revenue Code by which distribution must begin in order to avoid a tax penalty.
        (12) For a demand, savings, or matured time deposit, including a deposit that is automatically renewable, five (5) years after maturity or five (5) years after the date of the last indication by the owner of interest in the property, whichever is earlier. Property that is automatically renewable is considered matured for purposes of this section upon the expiration of its initial period, unless the owner has consented to a renewal at or about the time of the renewal and the consent is in writing or is evidenced by a memorandum or other record on file with the holder.


        (13) For property payable or distributable in the course of a demutualization, rehabilitation, or related reorganization of a mutual insurance company, five (5) years after the earlier of:
            (A) the date of last contact with the policyholder; or
            (B) the date the property became payable or distributable.
        (14) For all other property, the earlier of five (5) years after:
            (A) the owner's right to demand the property; or
            (B) the obligation to pay or distribute the property;
        arose.
    (d) Property is payable or distributed for purposes of this chapter notwithstanding the owner's failure to make demand or present an instrument or a document otherwise required to receive payment.
SOURCE: IC 32-34-1-45; (05)SE0198.1.2. -->     SECTION 2. IC 32-34-1-45 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 45. (a) Except as provided in subsection (b), a holder that fails to pay or deliver the property within the time required by this chapter shall pay to the attorney general interest for the time the holder is delinquent. Interest shall accrue under this subsection at the following rates:
        (1) The annual interest rate for a period of one (1) year or less after the time required by this chapter for payment or delivery of the property is:
            (A) the one (1) year Treasury Bill rate published in the Wall Street Journal or its successor on the third Tuesday of the month in which the remittance was due; plus
            (B) one (1) percentage point.
        (2) The interest rate for each year after the initial year to which subdivision (1) applies is:
            (A) the one (1) year Treasury Bill rate published in the Wall Street Journal or its successor on the third Tuesday of the month immediately preceding the anniversary; plus
            (B) one (1) percentage point.
        As used in this subdivision, "anniversary" means the anniversary of the date on which the property was originally due to be paid or delivered under this chapter.
     (b) The attorney general may waive the payment of interest described in subsection (a), in whole or part.
    (b) (c) A holder who fails to render any report or perform other duties required under this chapter shall pay a civil penalty of one hundred dollars ($100) for each day for the first fifteen (15) days that the report is withheld or the duty not performed. After the first fifteen (15) days, the holder shall pay a civil penalty of the greater of:
        (1) one hundred dollars ($100) a day for each additional day, not

to exceed five thousand dollars ($5,000); or
        (2) ten percent (10%) of the value of the property at issue, not to exceed five thousand dollars ($5,000).
Upon a showing by the holder of good cause sufficient in the discretion of the attorney general to excuse the failure, the attorney general may waive the penalty in whole or in part.
    (c) (d) A holder who knowingly or intentionally fails to pay or deliver property to the attorney general as required under this chapter shall pay an additional civil penalty equal to ten percent (10%) of the value of the property that must be paid or delivered under this chapter. If the attorney general believes it is in the best interest for the administration of this chapter, the attorney general may waive the penalty in whole or in part.
    (d) (e) A holder who willfully refuses, after written demand by the attorney general, to pay or deliver property to the attorney general as required under this chapter commits a Class B misdemeanor.


SEA 198 _ Concur

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