HB 631-FN – AS INTRODUCED
2005 SESSION
06/03
HOUSE BILL 631-FN
AN ACT relative to the time after which certain unclaimed property is presumed abandoned.
This bill changes the holding period before unclaimed property is presumed to be abandoned from 5 years to one year. This bill also prohibits banking or financial institutions from ceasing payment of interest or making other charges due to inactivity.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
05-0376
06/03
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Five
AN ACT relative to the time after which certain unclaimed property is presumed abandoned.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Property Presumed Abandoned; Period Changed. Amend RSA 471-C:2, I to read as follows:
I. Except as otherwise provided in this chapter, all intangible property, including any income or increment derived from it, less any lawful charges, 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 [5 years] one year after it became payable or distributable is presumed abandoned.
2 Checks, Drafts and Similar Instruments Issued or Certified by Banking and Financial Organizations; Period Changed. Amend RSA 471-C:5, I to read as follows:
I. Any sum payable on a check, draft, or similar instrument, except those subject to RSA 471-C:4 on which a banking or financial organization is directly liable, including a cashier’s check and a certified check, which has been outstanding for more than [5 years] one year after it was payable or after its issuance if payable on demand, is presumed abandoned, unless the owner, within [5 years] one year, has communicated in writing with the banking or financial organization concerning it or otherwise indicated an interest as evidenced by a memorandum or other record on file prepared by an employee thereof.
3 Bank Deposits and Funds in Financial Organizations; Period Changed. Amend the introductory paragraph of RSA 471-C:6, I to read as follows:
I. Any demand, savings, or matured time deposit with a banking or financial organization, including a deposit that is automatically renewable, and any funds paid toward the purchase of a share, a mutual investment certificate, or other interest in a banking or financial organization is presumed abandoned unless the owner, within [5 years] one year has:
4 Bank Deposits and Funds in Financial Organizations; Interest Payable. Amend RSA 471-C:6, III to read as follows:
III. A holder may not impose with respect to property described in paragraph I any charge due to dormancy or inactivity or cease payment of interest [unless:
(a) 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;
(b) For property in excess of $2, the holder, no more than 3 months before the initial imposition of those charges or cessation of interest, has given 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 January 1, 1987; and
(c) The holder regularly imposes such charges or ceases payment of interest and does not regularly reverse or otherwise cancel them or retroactively credit interest with respect to the property].
5 Funds Owing Under Life Insurance Policies; Period Changed. Amend RSA 471-C:7, I to read as follows:
I. Funds held or owing under any life or endowment insurance policy or annuity contract that has matured or terminated are presumed abandoned if unclaimed for more than [5 years] one year after the funds became due and payable as established from the records of the insurance company holding or owing the funds, but property described in subparagraph III(b) is presumed abandoned if unclaimed for more than 2 years.
6 Stock and Other Intangible Interests in Business Associations; Period Changed. Amend the introductory paragraph of RSA 471-C:10, I to read as follows:
I. Except as provided in paragraph V, stock or other intangible ownership interest in a business association other than a consumers’ cooperative association, the existence of which is evidenced by records available to the association, is presumed abandoned and, with respect to the interest, the association is the holder, if a dividend, distribution, or other sum payable as a result of the interest has remained unclaimed by the owner for [5 years] one year and the owner within [5 years] one year has not:
7 Property Held by Agents and Fiduciaries; Period Changed. Amend RSA 471-C:12, I to read as follows:
I. Intangible property and any income or increment derived therefrom held in a fiduciary capacity for the benefit of another person is presumed abandoned unless the owner, within [5 years] one year after it has become payable or distributable, has increased or decreased the principal, accepted payment of principal or income, communicated concerning the property, or otherwise indicated an interest as evidenced by a memorandum or other record on file prepared by the fiduciary.
8 Contents of Safe Deposit Box or Other Safekeeping Repository; Period Changed. Amend RSA 471-C:18 to read as follows:
471-C:18 Contents of Safe Deposit Box or Other Safekeeping Repository. All tangible and intangible property held in a safe deposit box or any other safekeeping repository in this state in the ordinary course of the holder’s business and proceeds resulting from the sale of the property permitted by other law, which remain unclaimed by the owner for more than [5 years] one year after the lease or rental period on the box or other repository has expired, are presumed abandoned.
9 Effective Date. This act shall take effect January 1, 2006.
LBAO
05-0376
2/1/05
HB 631-FN - FISCAL NOTE
AN ACT relative to the time after which certain unclaimed property is presumed abandoned.
FISCAL IMPACT:
Due to time constraints, the Office of Legislative Budget Assistant is unable to provide a fiscal note for this bill at this time. When completed, the fiscal note will be forwarded to the House Clerk's Office.