S T A T E O F N E W Y O R K
________________________________________________________________________
5059
2017-2018 Regular Sessions
I N S E N A T E
March 6, 2017
___________
Introduced by Sen. VALESKY -- read twice and ordered printed, and when
printed to be committed to the Committee on Finance
AN ACT to amend the abandoned property law, in relation to the defi-
nition of communication for purposes of abandoned property
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subparagraph (iii) of paragraph (a) and subparagraph (iii)
of paragraph (b) of subdivision 1 of section 300 of the abandoned prop-
erty law, as amended by section 1 of part A of chapter 61 of the laws of
2011, are amended and a new subdivision 5 is added to read as follows:
(iii) any such amount with respect to which the banking organization
has on file [written] evidence received within three years that the
person or persons appearing to be entitled to such amounts had knowledge
thereof, or
(iii) any such amount with respect to which the banking organization
has on file [written] evidence received within three years that the
person or persons appearing to be entitled to such amount had knowledge
thereof.
5. FOR PURPOSES OF THIS SECTION, "COMMUNICATION" SHALL INCLUDE ANY
WRITTEN, ELECTRONIC, OR PERSONAL CONTACT BETWEEN AN OWNER AND A HOLDER
OF RECORD THAT CAN BE DOCUMENTED AND THAT REFLECTS AN OWNER'S AWARENESS
OF THE EXISTENCE OF THE PROPERTY INCLUDING, BUT NOT LIMITED TO, WRITTEN
CORRESPONDENCE, A FACSIMILE TRANSMISSION, A TELEPHONIC OR VOICE OVER
INTERNET PROTOCOL (VOIP) COMMUNICATION, A TRANSACTION EFFECTED THROUGH
AN AUTOMATED CLEARING HOUSE (ACH) OR SIMILAR ELECTRONIC FUNDS PROCESSING
METHOD, SIGNING ON TO A PASSWORD PROTECTED ACCOUNT IN WHICH THE SECURI-
TIES MAY BE ACCESSED BY THEIR OWNER, OR EFFECTING A TRANSACTION IN THE
OWNER'S ACCOUNT, INCLUDING AUTOMATED TRANSACTIONS THAT HAVE BEEN AUTHOR-
IZED BY THE OWNER.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10433-01-7
S. 5059 2
§ 2. Subparagraph (ii) of paragraph (a) of subdivision 2 of section
501 of the abandoned property law, as amended by section 3 of part T of
chapter 62 of the laws of 2006, is amended to read as follows:
(ii) no [written] communication has been received from such resident
by the holder.
§ 3. Clause 2 of subparagraph (i) of paragraph (b) of subdivision 2 of
section 501 of the abandoned property law, as amended by section 4 of
part T of chapter 62 of the laws of 2006, is amended to read as follows:
(2) no [written] communication has been received from such resident by
the holder, and
§ 4. Subparagraph (iii) of paragraph (b) of subdivision 2 of section
501 of the abandoned property law, as added by chapter 166 of the laws
of 1991, is amended to read as follows:
(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
apparent owner of such securities indicating knowledge of such securi-
ties 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.
§ 5. Paragraph (b) of subdivision 3 of section 501 of the abandoned
property law, as amended by chapter 61 of the laws of 1989, is amended
and a new subdivision 6 is added to read as follows:
(b) No [written] communication has been received from such resident by
the holder, and
6. FOR PURPOSES OF THIS SECTION, "COMMUNICATION" SHALL INCLUDE ANY
WRITTEN, ELECTRONIC, OR PERSONAL CONTACT BETWEEN AN OWNER AND A HOLDER
OF RECORD THAT CAN BE DOCUMENTED AND THAT REFLECTS AN OWNER'S AWARENESS
OF THE EXISTENCE OF THE PROPERTY INCLUDING, BUT NOT LIMITED TO, WRITTEN
CORRESPONDENCE, A FACSIMILE TRANSMISSION, A TELEPHONIC OR VOICE OVER
INTERNET PROTOCOL (VOIP) COMMUNICATION, A TRANSACTION EFFECTED THROUGH
AN AUTOMATED CLEARING HOUSE (ACH) OR SIMILAR ELECTRONIC FUNDS PROCESSING
METHOD, SIGNING ON TO A PASSWORD PROTECTED ACCOUNT IN WHICH THE SECURI-
TIES MAY BE ACCESSED BY THEIR OWNER, OR EFFECTING A TRANSACTION IN THE
OWNER'S ACCOUNT, INCLUDING AUTOMATED TRANSACTIONS THAT HAVE BEEN AUTHOR-
IZED BY THE OWNER.
§ 6. Subdivisions 3 and 4 of section 511 of the abandoned property
law, as amended by chapter 617 of the laws of 1973, are amended to read
as follows:
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 successive years, all amounts paid thereon 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 SUBDIVISIONS one[,] OR 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
S. 5059 3
the three years immediately preceding the thirty-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 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.
§ 7. Paragraph (b) of subdivision 5 of section 511 of the abandoned
property law, as amended by chapter 767 of the laws of 1983, is amended
and a new subdivision 7 is added to read as follows:
(b) No [written] communication has been received from such person by
the holder, and
7. FOR PURPOSES OF THIS SECTION, "COMMUNICATION" SHALL INCLUDE ANY
WRITTEN, ELECTRONIC, OR PERSONAL CONTACT BETWEEN AN OWNER AND A HOLDER
OF RECORD THAT CAN BE DOCUMENTED AND THAT REFLECTS AN OWNER'S AWARENESS
OF THE EXISTENCE OF THE PROPERTY INCLUDING, BUT NOT LIMITED TO, WRITTEN
CORRESPONDENCE, A FACSIMILE TRANSMISSION, A TELEPHONIC OR VOICE OVER
INTERNET PROTOCOL (VOIP) COMMUNICATION, A TRANSACTION EFFECTED THROUGH
AN AUTOMATED CLEARING HOUSE (ACH) OR SIMILAR ELECTRONIC FUNDS PROCESSING
METHOD, SIGNING ON TO A PASSWORD PROTECTED ACCOUNT IN WHICH THE SECURI-
TIES MAY BE ACCESSED BY THEIR OWNER, OR EFFECTING A TRANSACTION IN THE
OWNER'S ACCOUNT, INCLUDING AUTOMATED TRANSACTIONS THAT HAVE BEEN AUTHOR-
IZED BY THE OWNER.
§ 8. Subparagraph (ii) of paragraph (b) of subdivision 1 of section
700 of the abandoned property law, as amended by section 13 of part A of
chapter 61 of the laws of 2011, is amended to read as follows:
(ii) any policy with respect to which such corporation has on file
written OR ELECTRONIC evidence received within three years that the
person or persons apparently entitled to claim thereunder have knowledge
thereof.
§ 9. Paragraph (f) of subdivision 1 of section 700 of the abandoned
property law, as amended by chapter 61 of the laws of 1989, is amended
to read as follows:
(f) If no address of the person or persons appearing to be entitled to
the unclaimed funds pursuant to PARAGRAPHS (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.
§ 10. This act shall take effect immediately.
