An Act concerning unclaimed property; relating to bank deposits and funds; amending K.S.A. 58-3935, 58-3939, 58-3950 and 58-3951 and repealing the existing sections.
Be it enacted by the Legislature of the State of Kansas:
Section 1. K.S.A. 58-3935 is hereby amended to read as follows: 58- 3935. (a) Except as otherwise provided by this act, all intangible property, including any income or increment derived therefrom, that is held, issued or owing in the ordinary course of a holder's business and has remained unclaimed by the owner for more than five years after it became payable or distributable is presumed abandoned.
(b) Property is payable or distributable for the purpose of this act notwithstanding the owner's failure to make demand or to present any instrument or document required to receive payment.
(c) A holder may not impose with respect to any property payable or distributable for the purpose of this act, including any income or incre- ment derived therefrom, any fee or charge due to dormancy or inactivity or cease payment of interest unless:
(1) There is an enforceable written contract between the holder and the owner of the property pursuant to which the holder may impose a charge or cease payment of interest;
(2) for property in excess of
the holder, no more than three months before the initial imposition
of those charges or cessation of in- terest, has mailed written
notice to the owner of the amount of those charges at the last
known address of the owner stating that those charges will be
imposed or that interest will cease, but the notice provided in
this section need not be given with respect to charges imposed or
interest ceased before the effective date of this act, or for
property described in K.S.A. 58-3937 and 58-3938, and amendments
(3) the holder regularly imposes such charges or ceases payment of interest and in no instance reverses or otherwise cancels them or retro- actively credits interest with respect to the property. Charges imposed because of dormancy or inactivity may be made and collected monthly, quarterly or annually except that beginning with the effective date of this act, such charges may only be imposed for a maximum of five calendar years.
Sec. 2. K.S.A. 58-3939 is hereby amended to read as follows: 58- 3939. (a) Any demand, savings or matured time deposit with a banking or financial organization, including a deposit that is automatically renew- able, and any funds paid toward the purchase of a share, a mutual in- vestment certificate or any other interest in a banking or financial organ- ization is presumed abandoned unless the owner within five years has:
(1) In the case of a deposit, increased or decreased its amount or presented the passbook or other similar evidence of the deposit for the crediting of interest;
(2) communicated in writing with the banking or financial organiza- tion concerning the property;
(3) otherwise indicated an interest in the property as evidenced by a memorandum or other record on file prepared by an employee of the banking or financial organization;
(4) owned other property to which paragraph (1), (2) or (3) applies and if the banking or financial organization communicates in writing with the owner with regard to the property that would otherwise be presumed abandoned under this subsection at the address to which communications regarding the other property regularly are sent; or
(5) had another relationship with the banking or financial organiza- tion concerning which the owner has: (A) Communicated in writing with the banking or financial organization; or (B) otherwise indicated an in- terest as evidenced by a memorandum or other record on file prepared by an employee of the banking or financial organization and if the banking or financial organization communicates in writing with the owner with regard to the property that would otherwise be abandoned under this subsection at the address to which communications regarding the other relationship regularly are sent.
(b) For purposes of subsection (a), property includes interest and dividends.
(c) Any property described in subsection (a) that is automatically re- newable is matured for purposes of subsection (a) upon the expiration of its initial time period, but in the case of any renewal to which the owner consents at or about the time of renewal by communicating in writing with the banking or financial organization or otherwise indicating consent as evidenced by a memorandum or other record on file, including but not limited to mailings to the owner which have not been returned to the holder, prepared by an employee of the organization, the property is matured upon the expiration of the last time period for which consent was given. If, at the time provided for delivery in K.S.A. 58-3952 and amendments thereto, a penalty or forfeiture in the payment of interest would result from the delivery of the property, the time for delivery is extended until the time when no penalty or forfeiture would result.
(d) Any demand or savings account with a banking or financial or- ganization shall not be presumed abandoned if regular correspondence to an owner of the account has not been returned to the sender.
Sec. 3. K.S.A. 58-3950 is hereby amended to read as follows: 58- 3950. (a) A person holding property tangible or intangible, presumed abandoned and subject to custody as unclaimed property under this act shall report to the administrator concerning the property as provided in this section.
(b) The report shall be verified and shall include:
(1) Except with respect to travelers checks and money orders,
the name, if known, and last known address, if any, of each person
appearing from the records of the holder to be the owner of
property of the value of
$25 $100 or more
presumed abandoned under this act;
(2) in the case of unclaimed funds of
$100 or more held or owing under any life or endowment
insurance policy or annuity contract, the full name and last known
address of the insured or annuitant and of the beneficiary
according to the records of the insurance company holding or owing
(3) in the case of the contents of a safe deposit box or other safe- keeping repository or of other tangible property, a description of the property and any amounts owing to the holder;
(4) the nature and identifying number, if any, or description of
the property and the amount appearing from the records to be due,
but items of value under
$25 $100 each
shall be reported in the aggregate;
(5) the date the property became payable, demandable or returnable and the date of the last transaction with the apparent owner with respect to the property; and
(6) other information the administrator prescribes by rules and reg- ulations as necessary for the administration of this act.
(c) If the person holding property presumed abandoned and subject to custody as unclaimed property is a successor to other persons who previously held the property for the apparent owner or the holder has changed names while holding the property, the holder shall file with the report all the known names and addresses for each previous holder of the property.
(d) The report shall be filed before November 1 of each year as of June 30 next preceding, but the report of any life insurance company shall be filed before May 1 of each year as of December 31 next preceding. On written request by any person required to file a report, the adminis- trator may postpone the reporting date.
(e) Not more than 120 days before filing the report required by this section and no later than 60 days before filing the report required by this section, the holder in possession of property presumed abandoned and subject to custody as unclaimed property under this act shall send written notice to the apparent owner's last known address informing the apparent owner that the holder is in possession of property subject to this act if:
(1) The claim of the apparent owner is not barred by the statute of limitations; and
(2) the property has a value of
or more, or is reported under K.S.A. 58-3943 or 58-3949 and
(f) The written notice shall also contain the following:
(1) Nature and identifying number, if any, or description of the funds or other property; and
(2) the amount appearing on the records of the holder to be due the apparent owner.
(g) If the holder is not a life insurance company, the written notice shall set forth an additional statement that the funds or other property will be reported as unclaimed property to the state treasurer of Kansas no later than November 1 of the current year.
(h) If the holder is a life insurance company, the written notice shall set forth an additional statement that the funds or other property will be reported as unclaimed property to the state treasurer of Kansas no later than May 1 of the current year.
Sec. 4. K.S.A. 58-3951 is hereby amended to read as follows: 58-
3951. (a) Within the calendar year next following the year in which
un- claimed property has been paid or delivered to the
administrator, the administrator shall advertise the unclaimed
at least one time in a newspaper generally
circulating in this state. The advertisement shall be made
in such form as in the discretion of the administrator is likely to
attract the attention of the apparent owner of the unclaimed
property. It shall contain the following information:
(1) The name of each person appearing to be the owner of property presumed abandoned, as set forth in the report filed by the holder;
(2) the last known address or location of each person appearing to be the owner of property presumed abandoned, if an address or location is set forth in the report filed by the holder;
(3) a statement explaining that property of the owner has been pre- sumed to be abandoned and has been taken into the protective custody of the administrator; and
(4) a statement that information about the abandoned property and its return to the apparent owner can be obtained at any time by a person having a legal or beneficial interest in that property by making an inquiry to the administrator.
(b) The administrator shall not be required to advertise the
name and address or location of an owner of abandoned property
having a total value less than
nor information concerning travelers checks and money orders.
Sec. 5. K.S.A. 58-3935, 58-3939, 58-3950 and 58-3951 are hereby repealed.
Sec. 6. This act shall take effect and be in force from and after its publication in the statute book.
Approved April 3, 1996.