S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3266
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 27, 2017
                                ___________
 
 Introduced by M. of A. BRINDISI, HARRIS -- read once and referred to the
   Committee on Ways and Means
 
 AN ACT to amend the abandoned property law, in relation to extending the
   term for claiming unclaimed property from three to five years
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraphs (a), (b), (c), (d), (e), (f), (g), (i)  and  (k)
 of  subdivision  1  of  section 300 of the abandoned property law, para-
 graphs (a), (b) and (k) as amended by section 1 of part A of chapter  61
 of  the laws of 2011, paragraph (c) as amended by section 5 of part T of
 chapter 62 of the laws of 2006, paragraph (d) as amended by  chapter  48
 of  the laws of 1978, paragraphs (e) and (f) as amended by chapter 41 of
 the laws of 1987 and paragraphs (g) and (i) as added by  chapter  15  of
 the laws of 1983, are amended to read as follows:
   (a)  Any amounts due on deposits or any amounts to which a shareholder
 of a savings and loan association or a credit union is entitled, held or
 owing by a banking organization, which shall have remained unclaimed for
 [three] FIVE years by the person or persons  appearing  to  be  entitled
 thereto, including any interest or dividends credited thereon, excepting
   (i)  any such amount which has been reduced or increased, exclusive of
 dividend or interest payment, within [three] FIVE years, or
   (ii) any such amount which is represented by a  passbook  not  in  the
 possession  of  the  banking  organization, which has been presented for
 entry of dividend or interest credit within [three] FIVE years, or
   (iii) any such amount with respect to which the  banking  organization
 has on file written evidence received within [three] FIVE years that the
 person or persons appearing to be entitled to such amounts had knowledge
 thereof, or
   (iv)  any such amount payable only at or by a branch office located in
 a foreign country, or payable  in  currency  other  than  United  States
 currency, or
   (v)  any  such amount that is separately identifiable and has been set
 aside to meet the burial and related expenses of an individual, provided
 however that said amount shall be deemed  abandoned  property  where  it
              

 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD01883-01-7

 A. 3266                             2
 
 remains  unclaimed for [three] FIVE years subsequent to the death of the
 individual for whom the amount was deposited.
   (b)  Any amounts, together with all accumulations of interest or other
 increment thereon, held or owing  by  a  banking  organization  for  the
 payment of an interest in a bond and mortgage apportioned or transferred
 by it pursuant to subdivision seven of former section one hundred eight-
 y-eight  of  the banking law as it existed prior to July first, nineteen
 hundred thirty-seven, which shall have remained unclaimed by the  person
 or persons appearing to be entitled thereto for [three] FIVE years after
 the full and final liquidation of such mortgage, excepting
   (i) any such amount which has been reduced by payment to the person or
 persons appearing to be entitled thereto within [three] FIVE years, or
   (ii)  any  such  amount which is represented by a certificate of share
 ownership not in the  possession  of  the  banking  organization,  which
 certificate  has  been presented for transfer within [three] FIVE years,
 or
   (iii) any such amount with respect to which the  banking  organization
 has on file written evidence received within [three] FIVE years that the
 person  or persons appearing to be entitled to such amount had knowledge
 thereof.
   (c) Any amount held or owing by a banking organization for the payment
 of a negotiable instrument under article three of the uniform commercial
 code or a certified check whether  negotiable  or  not,  on  which  such
 organization  is  directly  liable,  which  instrument  shall  have been
 outstanding for more than [three] FIVE years from the date it was  paya-
 ble  or  from  the date of its issuance, if payable on demand; provided,
 however, the provisions of this paragraph shall not apply
   (i) to any  negotiable  instrument  payable  outside  the  continental
 limits of the United States, or
   (ii)  to  any  instrument payable in currency other than United States
 currency.
   (d) After the expiration of [three] FIVE years from the opening of any
 vault, safe deposit box or other receptacle by  a  banking  organization
 pursuant to the provisions of the banking law, any surplus amounts aris-
 ing  from  a  sale  by such banking organization of the contents of such
 vault, safe deposit box or other receptacle pursuant to  the  provisions
 of  the  banking law, the balance remaining of any United States coin or
 currency among the contents of such vault, safe  deposit  box  or  other
 receptacle and the balance remaining of the proceeds of the principal of
 or  interest  or  dividends on any securities among the contents of such
 vault, safe deposit box or other receptacle or the securities themselves
 which have remained unsold by the banking organization.
   (e) Any amount or security representing a dividend  or  other  payment
 received  (i) after June thirtieth, nineteen hundred forty, by a banking
 organization or its nominee as the record holder of any stock, bond,  or
 other security of any corporation, association or joint stock company to
 which  amount or security an unknown person (except a person entitled to
 such dividend or other payment upon the surrender of  other  outstanding
 securities) is entitled or (ii) on or after July first, nineteen hundred
 seventy-four  by  a  banking organization or its nominee other than as a
 holder of record or as holder of record for known persons on any  stock,
 bond  or  other  security of any corporation, association or joint stock
 company or (iii) on or after July first, nineteen hundred eighty-four by
 a banking organization or its nominee on any stock, bond, or other secu-
 rity of a governmental or other public  issuer,  (1)  which  shall  have
 remained unclaimed by the person entitled thereto for [three] FIVE years

 A. 3266                             3
 
 after  receipt  thereof  by such banking organization or its nominee, or
 (2) when the stock, bond or other security with respect  to  which  such
 amount  or  security representing a dividend or other payment is payable
 has been deemed abandoned.
   (f)  Except  as  provided  in  paragraph  (e) of this subdivision, any
 stock, bond or other security of any corporation, association  or  joint
 stock  company  received on or after July first, nineteen hundred seven-
 ty-seven or any stock, bond or other security  of  any  governmental  or
 other  public  issuer  received on or after July first, nineteen hundred
 eighty-four by a banking organization or its nominee and  held  by  such
 banking  organization  or  its  nominee  (1) as holder of record of such
 stock, bond or other security, or (2) as custodian, trustee or fiduciary
 for a person other than the issuer with respect to such stock,  bond  or
 other  security,  or  (3)  for  unknown  persons where, for [three] FIVE
 successive years, (i) all amounts payable upon such  stocks,  bonds,  or
 other  securities of any corporation, association or joint stock company
 and received by such banking organization or its  nominee  on  or  after
 July  first,  nineteen hundred seventy-seven or all amounts payable upon
 such stocks, bonds, or other securities of  any  governmental  or  other
 public  issuer  and received by such banking organization or its nominee
 on or after July  first,  nineteen  hundred  eighty-four  have  remained
 unclaimed  by  the person entitled thereto, and (ii) no written communi-
 cation concerning such stock, bond or other security has  been  received
 from  the  person  entitled  thereto by such banking organization or its
 nominee.
   (g) Any stock, bond, or other security held by a banking  organization
 in  any  vault  or  other storage area in any capacity other than as set
 forth in paragraphs (d), (e) or  (f)  of  this  subdivision  where,  for
 [three]  FIVE  successive years, (i) such stock, bond, or other security
 has remained unclaimed by the person entitled thereto, and (ii) no writ-
 ten communication concerning such stock, bond or other security has been
 received from the person entitled thereto by such banking organization.
   (i) Any amount or security which shall have become payable or deliver-
 able by a banking organization, as agent or trustee for  a  corporation,
 association  or  joint  stock  company which shall have discontinued the
 conduct of its business, or the corporate existence of which shall  have
 terminated,  without the right to receive such amount having passed to a
 successor or successors, and which shall have remained unpaid  or  unde-
 livered  to  the  person  or  persons  entitled thereto for [three] FIVE
 years.
   (k) Lost property or instruments as defined  in  section  two  hundred
 fifty-one  of  the personal property law which shall have been held by a
 safe deposit company or bank for [three]  FIVE  years  pursuant  to  the
 provisions  of  section  two  hundred fifty-six of the personal property
 law.
   § 2. Subdivisions 1, 2 and 3 of section 501 of the abandoned  property
 law,  subdivisions  1 and 2 as added by chapter 166 of the laws of 1991,
 paragraph (b) of subdivision 1 as amended by section  2  of  part  T  of
 chapter  62  of  the  laws  of  2006,  paragraph (a) of subdivision 2 as
 amended by section 3 of part T of  chapter  62  of  the  laws  of  2006,
 subparagraph (i) of paragraph (b) of subdivision 2 as amended by section
 4  of  part  T  of  chapter  62 of the laws of 2006 and subdivision 3 as
 amended by chapter 61 of the laws  of  1989,  are  amended  to  read  as
 follows:
   1.  (a)  Any amount which, on or after January first, nineteen hundred
 forty-seven, shall have become payable or distributable by  a  domestic,

 A. 3266                             4
 
 foreign  or  public  corporation  or by a fiduciary to a resident as the
 owner or former owner of a security  as  defined  in  paragraph  (a)  of
 subdivision two of section five hundred of this article, shall be deemed
 abandoned when the security with respect to which such amount is payable
 or distributable has been deemed abandoned, or when such amount:
   (i)  is  payable  or  distributable  to  such resident as the owner or
 former owner of such security; and
   (ii) has, on the thirty-first day of December in  any  year,  remained
 unpaid  to  or  unclaimed  by such resident for a period of [three] FIVE
 years. For the purposes of this article, a security as defined in  para-
 graph  (a)  of  subdivision  two of section five hundred of this article
 shall not be deemed abandoned until a period of [three] FIVE  years  has
 elapsed  from  the  earlier of the maturity date of such security or the
 date such security has been called for redemption.
   (b) Any amount which, on or  after  January  first,  nineteen  hundred
 forty-seven  shall have become payable or distributable by a domestic or
 foreign corporation or a fiduciary to a resident as the owner or  former
 owner  of  a  security as defined in paragraph (b) of subdivision two of
 section five hundred of this article, shall be deemed abandoned when the
 security with respect to which such amount is payable  or  distributable
 has been deemed abandoned or when such amount:
   (i)  is  payable  or  distributable  to  such resident as the owner or
 former owner of such security; and
   (ii) has, on the thirty-first day of December in  any  year,  remained
 unpaid  to  or  unclaimed  by such resident for a period of [three] FIVE
 years.
   2. (a) Except as provided in paragraph (b) of  this  subdivision,  any
 security, as defined in paragraph (b) of subdivision two of section five
 hundred  of  this article, of any domestic corporation or foreign corpo-
 ration owned by or formerly owned by a resident shall  be  deemed  aban-
 doned where, for [three] FIVE successive years:
   (i)  all  amounts,  if  any,  payable or distributable thereon or with
 respect thereto have remained unpaid to or unclaimed by  such  resident,
 and
   (ii)  no written communication has been received from such resident by
 the holder.
   (b) (i) Any security, as defined in paragraph (b) of  subdivision  two
 of  section  five  hundred  of  this article, of any domestic or foreign
 corporation in which a resident has an ownership interest and  which  is
 enrolled in a plan that provides for the automatic reinvestment of divi-
 dends, distributions, or other sums payable as the result of such inter-
 est  shall  be deemed abandoned when any security owned by such resident
 which is not enrolled in the plan has been deemed abandoned pursuant  to
 paragraph  (a)  of this subdivision or when, for [three] FIVE successive
 years:
   (1) all amounts, if any, payable thereon or with respect thereto  have
 remained unpaid to or unclaimed by such resident, and
   (2)  no  written communication has been received from such resident by
 the holder, and
   (3) the holder does not know the location of such resident at the  end
 of such [three] FIVE year period.
   (ii) For purposes of this paragraph, the reinvestment of any dividend,
 distribution  or other sum payable shall not be considered as payment of
 an amount for the purpose of extending the statutory period of  inactiv-
 ity  after the expiration of which securities enrolled in a reinvestment
 plan are deemed abandoned.

 A. 3266                             5
 
   (iii) Any corporation or fiduciary holding or evidencing on its  books
 and  records securities enrolled in a reinvestment plan shall notify the
 apparent owner by certified mail that such securities will be  delivered
 to  the  state  comptroller  as  abandoned  property,  pursuant  to  the
 provisions  of  section  five  hundred  two of this article, unless such
 corporation or fiduciary receives written communication from the  appar-
 ent  owner  of  such  securities indicating knowledge of such securities
 prior to the date that such securities are required to be  delivered  to
 the  state  comptroller.  Such  letter  by  certified mail shall be sent
 during the calendar year prior to the year in which such property  would
 be  required to be delivered to the state comptroller, but no later than
 the thirty-first day of December of such  year.  For  purposes  of  this
 subdivision,  a  signed return receipt shall constitute written communi-
 cation received by the holder from the apparent owner.
   (iv) All corporations or fiduciaries  holding  or  evidencing  on  its
 books  and  records  securities  enrolled  in  a reinvestment plan shall
 retain, for a period of five years following  the  thirty-first  day  of
 December  of  the year for which a report of abandoned property has been
 filed, a list of (1) the dates and  nature  of  any  and  all  corporate
 notices  which  have  been  sent  via first class mail to owners of such
 securities during the period to which such report relates, and  (2)  the
 names  and  addresses  of  all owners of such securities for whom postal
 authorities have returned any first class mail sent by the holder during
 the period to which such report relates, and the  dates  on  which  such
 mail  was  returned  for each such owner. Nothing contained herein or in
 any other provision of this  chapter  shall  preclude  the  state  comp-
 troller, in the performance of his duties under this chapter, from veri-
 fying  that  all  such  notices  have  been sent and whether or not such
 notices have been returned to the holder by the postal authorities.
   3. Any wages payable on or after July first, nineteen  hundred  sixty-
 three  by  a  domestic or foreign corporation and held for a resident by
 such issuing corporation or held and payable by a fiduciary other than a
 broker or dealer as defined in section five hundred ten of this  chapter
 for  a  resident  shall  be  deemed  to be abandoned property, where for
 [three] FIVE successive years:
   (a) All such wages have remained unpaid to such resident, and
   (b) No written communication has been received from such  resident  by
 the holder, and
   (c)  Notice  regarding  such wages has been sent by the corporation or
 fiduciary, via first class mail, to such  resident  at  his  last  known
 address  and such notice has been returned to the corporation or fiduci-
 ary by the postal authorities for inability to locate such resident.
   § 3. Subdivisions 1, 1-a, 2, 3, 4 and 5 of section 511  of  the  aban-
 doned property law, subdivisions 1, 2, 3 and 4 as amended by chapter 617
 of the laws of 1973 and subdivisions 1-a and 5 as amended by chapter 767
 of the laws of 1983, are amended to read as follows:
   1.  Any  amount (a) received in this state after June thirtieth, nine-
 teen hundred forty-six by a broker or dealer or nominee of  such  broker
 or  dealer as the holder of record of a security remaining unpaid to the
 person entitled thereto for [three] FIVE  years  following  the  receipt
 thereof,  or  (b) when paid to such broker, dealer or nominee on or with
 respect to a security which has been deemed abandoned.
   1-a. Any amount (a) received in this state on  or  after  July  first,
 nineteen  hundred  seventy-four by a broker or dealer or nominee of such
 broker or dealer other than as  the  holder  of  record  of  a  security
 remaining  unpaid  to the person entitled thereto for [three] FIVE years

 A. 3266                             6
 
 following the receipt thereof, or (b) when paid to such  broker,  dealer
 or  nominee on or with respect to a security which has been deemed aban-
 doned.
   2.  Any  amount (a) received in this state after June thirtieth, nine-
 teen hundred forty-six due from a broker or dealer or  nominee  of  such
 broker or dealer to a customer which has remained unpaid to the customer
 for  [three] FIVE years after the date of the last entry, other than the
 receipt of dividends or interest in the account of such  broker,  dealer
 or  nominee  with  such customer, or (b) payable on or with respect to a
 security which has been deemed abandoned.
   3. Any security held in this state by a broker or dealer,  or  nominee
 of  such  broker  or dealer, as the holder of record of a security for a
 customer or for a person or persons unknown to such broker or dealer  or
 nominee where, for [three] FIVE successive years, all amounts paid ther-
 eon  or with respect thereto and received after June thirtieth, nineteen
 hundred forty-six by such broker or  dealer  or  nominee  have  remained
 unclaimed.   Provided, however, that if any amount or security specified
 in THIS subdivision OR SUBDIVISION one[,] OR SUBDIVISION two [or  three]
 of  this  section is reflected, recorded, or included in an account with
 respect to which such broker or dealer has on file evidence  in  writing
 received  within  the [three] FIVE years immediately preceding the thir-
 ty-first day of December preceding the  date  such  amount  or  security
 would  otherwise  be  payable  or  deliverable  pursuant to section five
 hundred twelve OF THIS ARTICLE that  the  person  entitled  thereto  had
 knowledge  of  such  account,  then such amount or security shall not be
 deemed abandoned property.
   4. Any security held by a broker or dealer or nominee of  such  broker
 or dealer reflected, recorded, or included in an account with respect to
 which,  for  [three] FIVE successive years, all statements of account or
 other communications which have been sent, via first class mail, to  the
 customer  at  his  last known address have been returned to such broker,
 dealer or nominee by the postal authorities for inability to locate  the
 customer,  and  no  written  communication  has  been  received from the
 customer by such broker, dealer or nominee, provided such  security  was
 received  or  is held in this state by such broker, dealer or nominee or
 the last known address of the customer is located in this state.
   5. Any wages held and payable on or after July first, nineteen hundred
 sixty-six by a broker or dealer, as defined in section five hundred  ten
 of  this  article,  for  the  benefit  of  a person or persons, known or
 unknown shall be deemed to be abandoned property, where for [three] FIVE
 successive years:
   (a) All such wages have remained unpaid to such person, and
   (b) No written communication has been received from such person by the
 holder, and
   (c) Notice regarding such wages, if sent by the broker or dealer,  via
 first  class  mail,  to  such  person at his last known address has been
 returned to the broker or dealer by the postal authorities for inability
 to locate such person.
   § 4. Subdivision 1 of section 700 of the abandoned  property  law,  as
 amended  by  chapter  695 of the laws of 1964, paragraphs (a) and (c) as
 amended by chapter 78 of the laws of 1976, paragraph (b) as  amended  by
 section 13 of part A of chapter 61 of the laws of 2011, paragraph (d) as
 amended  by  chapter  767 of the laws of 1983 and paragraph (e) as added
 and paragraph (f) as amended by chapter 61  of  the  laws  of  1989,  is
 amended to read as follows:

 A. 3266                             7
 
   1.  The  following  unclaimed property held or owing by life insurance
 corporations shall be deemed abandoned property:
   (a)  Any  moneys held or owing by any life insurance corporation which
 shall have remained unclaimed for [three] FIVE years by  the  person  or
 persons  appearing  to  be entitled thereto under matured life insurance
 policies on the endowment plan and which are payable to any person whose
 last-known address, according to the  records  of  the  corporation,  is
 within this state.
   (b)  Any  moneys held or owing by any life insurance corporation which
 are payable under other kinds of life insurance policies to  any  person
 whose  last-known  address, according to the records of the corporation,
 is within this state, where the insured, if living, would have  attained
 the  limiting  age  under  the mortality table on which the reserves are
 based, exclusive of
   (i) any policy which has within  [three]  FIVE  years  been  assigned,
 readjusted, kept in force by payment of premium, reinstated or subjected
 to loan, or
   (ii)  any  policy  with  respect to which such corporation has on file
 written evidence received within [three] FIVE years that the  person  or
 persons apparently entitled to claim thereunder have knowledge thereof.
   (c)  Any moneys held or owing by any life insurance corporation due to
 beneficiaries or other persons entitled thereto under  policies  on  the
 lives  of  persons who have died where the last-known address, according
 to the records of the corporation, of the person or persons appearing to
 be entitled thereto is  within  this  state,  which  moneys  shall  have
 remained unclaimed by the person or persons entitled thereto for [three]
 FIVE years.
   (d)  Any  other  moneys  which are held or owing by any life insurance
 corporation on or after July first, nineteen hundred sixty-seven consti-
 tuting or representing refunds of any kind due  upon  or  in  connection
 with  life  insurance  policies  payable  to any person whose last known
 address, according to the records of the  corporation,  is  within  this
 state, which moneys shall have remained unclaimed by the person entitled
 thereto for [three] FIVE years.
   (e)  Any  moneys held or owing by any life insurance corporation on or
 after July first, nineteen hundred eighty-three upon  or  in  connection
 with an annuity contract payable to any person whose last-known address,
 according to the records of the corporation, is within this state, which
 moneys  shall have remained unclaimed by the person entitled thereto for
 [three] FIVE years.
   (f) If no address of the person or persons appearing to be entitled to
 the unclaimed funds pursuant to PARAGRAPH (a), (b), (c), (d) or  (e)  of
 this  subdivision is known to such corporation, or if it is not definite
 and certain from the records of such corporation what person is entitled
 to such funds, it shall be presumed that the last-known address  of  the
 person  entitled  to such funds is the same as the last-known address of
 the insured or annuitant according to the records of  such  corporation.
 Where no address can be ascertained, pursuant to this paragraph, for the
 insured, annuitant or person or persons entitled to the unclaimed funds,
 such  person's  last-known  address  shall be presumed to be within this
 state if the unclaimed funds are held or owing by life insurance  corpo-
 ration organized under the laws of this state.
   § 5. This act shall take effect immediately.