Note: This summary is not intended to be an all inclusive discussion of abandoned property law, but does include basic provisions. You should check the State Laws for updates.
Arizona Revised Statutes
Title 44 - Trade and Commerce
CHAPTER 3 - UNIFORM UNCLAIMED PROPERTY ACT
Article 1 - In General
Definitions
In this chapter, unless the context otherwise requires:
1. "Apparent owner" means a person whose name appears on the records of a holder as the person entitled to property held, issued or owing by the holder.
2. "Business association" means any corporation, joint stock company, investment company, partnership, limited partnership, registered limited liability partnership, unincorporated association, joint venture, limited liability company, business trust, trust company, land bank, safe deposit company, safekeeping depository, financial organization, insurance company, mutual fund, utility or other business entity, whether for profit or not for profit, that consists of one or more persons.
3. "De minimis property" means any account balances of business associations of fifty dollars or less payable to another business association.
4. "Department" means the department of revenue.
5. "Director" means the director of the department of revenue.
6. "Domicile" means the state of incorporation of a corporation and the state of the principal place of business of a holder other than a corporation.
7. "Financial organization" means a savings and loan association, building and loan association, savings bank, industrial bank, bank, banking organization or credit union.
8. "Holder" means a person who is obligated to hold for the account of or deliver or pay to the owner property that is subject to this chapter.
9. "Insurance company" means an association, corporation or fraternal or mutual benefit society or organization, whether for profit or not for profit, that is engaged in the business of providing life endowments, annuities or insurance, including accident, burial, casualty, credit life, contract performance, dental, disability, fidelity, fire, health, hospitalization, illness, life, malpractice,marine, mortgage, surety, wage protection and workers' compensation insurance.
10. "Mineral" means gas, oil, coal, sand, gravel, road material, building stone, chemical raw material, gemstone, fissionable and nonfissionable ores, colloid and other clay, steam and other geothermal resource or any other substance defined as a mineral in sections 27-231 and 27-901.
11. "Mineral proceeds" means the amounts payable for the extraction, production or sale of minerals or, if those amounts are abandoned, all payments that become payable after the abandonment. Mineral proceeds include amounts payable:
(a) For the acquisitions and retention of a mineral lease, including bonuses, royalties, compensatory royalties, shut-in royalties, minimum royalties and delay rentals.
(b) For the extraction, production or sale of minerals, including net revenue interest, royalties, overriding royalties, extraction payments and production payments.
(c) Under an agreement or option, including a joint operating agreement, unit agreement, pooling agreement and farm out agreement.
12. "Money order" includes an express money order and a personal money order on which the remitter is the purchaser. Money order does not include a bank money order or any other instrument that is sold by a financial organization if the seller has obtained the name and address of the payee.
13. "Owner" means a person who has a legal or equitable interest in property that is subject to this chapter or the person's legal representative. Owner includes a depositor in the case of a deposit, a beneficiary in the case of a trust other than a deposit in trust and a creditor, claimant or payee in the case of other property.
14. "Person" means an individual, business association, financial organization, estate, trust, government, governmental subdivision, agency or instrumentality or any other legal or commercial entity.
15. "Property" means tangible property pursuant to section 44-303 or a fixed and certain interest in intangible property that is held, issued or owed in the course of a holder's business or by a government, governmental subdivision, agency or instrumentality and all income or increments from that property. Property does not include de minimis property and property that is referred to or evidenced by gift certificates, electronic gift cards, nonrefundable tickets, certificates evidencing property denominated in value other than a currency, including prepaid phone cards, frequent flyer miles, stored value cards and merchandise points. Property includes property that is referred to as or evidenced by any of the following:
(a) Money or any check, draft, deposit, interest or dividend.
(b) Any credit balance, customer's overpayment, security deposit, refund, credit memorandum, unpaid wage, unused ticket, mineral proceeds or unidentified remittance.
(c) Any stock or other evidence of ownership of an interest in a business association or financial organization.
(d) Any bond, debenture, note or other evidence of indebtedness.
(e) Money deposited to redeem stocks, bonds, coupons or other securities or to make distributions.
(f) An amount due and payable under the terms of an annuity or insurance policy, including policies that provide life, property, casualty, workers' ompensation, health or disability insurance.
(g) An amount distributable from a trust or custodial fund that is established under a plan to provide health, welfare, pension, vacation, severance, retirement, death, stock purchase, profit sharing, employee savings or supplemental unemployment insurance or similar benefits.
16. "Record" means information that is inscribed on a tangible medium or that is stored in any electronic or other medium and that is retrievable in a perceivable form.
17. "State" means a state of the United States, the district of Columbia, the commonwealth of Puerto Rico or any territory or insular possession that is subject to the jurisdiction of the United States.
18. "Utility" has the same meaning prescribed in section 40-491.
Title 44, Chap. 3, Art. 1, §44-301.
Presumptions of abandonment
A. Property is presumed abandoned if it is unclaimed by the apparent owner according to the following schedule:
1. A traveler's check is presumed abandoned fifteen years after issuance.
2. A money order or similar written instrument, other than a third party bank check, is presumed abandoned seven years after issuance.
3. Any stock or other equity interest in a business association or financial organization, including a security entitlement under title 47, chapter 8, is presumed abandoned three years after any of the following, whichever occurs first:
(a) The date of the most recent dividend, stock split or other distribution that is unclaimed by the apparent owner.
(b) The date of the second mailing of a statement of account or other notification or communication that was returned as undeliverable.
(c) The date the holder discontinued mailings, notifications or communications to the apparent owner.
4. The principal on debt, other than a bearer bond or an original issue discount bond, of a business association or financial organization is presumed abandoned five years after the maturity date and the interest on the debt is presumed abandoned five years after the payment date.
5. A demand, savings or time deposit, including a deposit that is automatically renewable, and any interest or dividends are presumed abandoned five years after maturity or the date of the last indication by the owner of interest in the property, whichever occurs first. For the purposes of this paragraph, a deposit that is automatically renewable is deemed matured on its initial date of maturity, 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 any memorandum or other record on file with the holder.
6. Credits owed to a customer as a result of a retail business transaction are presumed abandoned five years after the obligation accrued.
7. An amount owed by an insurer on a life or endowment insurance policy or an annuity that has matured or terminated is presumed abandoned five years after the obligation to pay arose or, in the case of a policy or annuity that is payable on proof of death, the amount is presumed abandoned two years after the insured has attained, or would have attained if the insured were living, the limiting age under the mortality table on which the reserve is based. For the purposes of this paragraph all of the following conditions apply:
(a) If a person other than the insured or annuitant is entitled to the owed amount and the person's address is not known to the company or it is not definite and certain from the records of the company who is entitled to the amount, it is presumed that the last known address of the person who is entitled to the amount is the same as the last known address of the insured or annuitant according to the company's records.
(b) Notwithstanding any law, if the company learns of the death of the insured or annuitant and the beneficiary has not communicated with the insurer within four months after the death, the company shall take reasonable steps to pay the proceeds to the beneficiary.
(c) Every change of beneficiary form issued by an insurance company under any life or endowment insurance policy or annuity contract to an insured or owner who is a resident of this state shall request the following information:
(i) The name of each beneficiary, or if a class of beneficiaries is named, the name of each current beneficiary in the class.
(ii) The address of each beneficiary.
(iii) The relationship of each beneficiary to the insured.
8. A life or endowment insurance policy or annuity contract not matured by actual proof of the death of the insured or annuitant according to the company's records is deemed matured and the proceeds are deemed due and payable and are presumed abandoned after two years if all of the following conditions apply:
(a) The insured has attained, or would have attained if the insured were living, the limiting age under the mortality table on which the reserve is based.
(b) The policy was in force at the time the insured attained or would have attained the limiting age specified in subdivision (a) of this paragraph.
(c) Neither the insured nor any other person who appears to have an interest in the policy within the last two years according to the company's records has assigned, readjusted or paid premiums on the policy or subjected the policy to a loan, corresponded in writing with the company concerning the policy or otherwise indicated an interest as evidenced by a memorandum or any other record on file with and prepared by an employee of the company.
9. Property that is distributable by a business association or financial organization in a course of dissolution is presumed abandoned one year after the property becomes distributable.
10. Property that is received by a court as proceeds of a class action and that is not distributed pursuant to the judgment is presumed abandoned one year after the distribution date.
11. Property that is held by a court, government, governmental subdivision, agency or instrumentality, except for support as defined in section 25-500 or for spousal maintenance, is presumed abandoned one year after the property becomes distributable. Monies held for the payment of warrants by a state agency that remain unclaimed by the owner at the time of the void date printed on the face of the warrant are presumed abandoned.
12. Wages or other compensation for personal services is presumed abandoned one year after the compensation becomes payable.
13. Property in any individual retirement account, defined benefit plan or other account or plan that qualifies for tax deferral under the income tax laws of the United States is presumed abandoned three years after any of the following, whichever occurs first:
(a) The date of the distribution or attempted distribution of the property.
(b) The date of the required distribution as stated in the plan or trust agreement that governs the plan.
(c) If determinable by the holder, the date specified in the income tax laws of the United States by which distribution of the property must begin in order to avoid a tax penalty.
14. Any amount that is payable on a check, draft or similar instrument on which a banking or financial organization or business association is directly liable, including a cashier's check and a certified check, and that has been outstanding for more than five years after the check, draft or similar instrument was payable or after issuance if payable on demand is presumed abandoned unless within five years the owner has communicated in writing with the banking or financial organization or business association concerning the check, draft or similar instrument or otherwise indicated an interest as evidenced by a memorandum or any other record on file and prepared by an employee of the banking or financial organization or business association.
15. All other property is presumed abandoned five years after the owner's rights to demand the property or after the obligation to pay or distribute the property arises, whichever occurs first.
B. At the time that an interest is presumed abandoned under subsection A, any other property right accrued or accruing to the owner as a result of the interest, and not previously presumed abandoned, is also presumed abandoned.
C. Property is unclaimed if, for the applicable period prescribed in subsection A of this section, the apparent owner has not communicated in writing with the holder or communicated by other means reflected in a contemporaneous record that is prepared by or on behalf of the holder and that concerns the property or the account or accounts in which the property is held and has not otherwise indicated an interest in the property and if the holder has not communicated in writing with regard to the property that would otherwise be unclaimed. A communication with an owner by a person other than the holder or the holder's representative who has not identified the property in writing to the owner is not an indication of interest in the property by the owner.
D. An indication of an owner's interest in property includes:
1. The presentment of any check or other instrument of payment of any dividend or other distribution that is made with respect to any account, underlying stock or other interest in a business association or financial organization. If the distribution is made by electronic or similar means an indication of an owner's interest includes evidence that the distribution has been received.
2. Activity directed by the owner in the account in which the property is held, including a direction by the owner to increase, decrease or change the amount or type of property held in the account.
3. The making of a deposit to or withdrawal from a bank account.
4. The payment of a premium with respect to a property interest in an insurance policy. The application of an automatic premium loan provision or any other nonforfeiture provision in an insurance policy does not prevent a policy from maturing or terminating if the insured has died or if the insured or the beneficiary of the policy has otherwise become entitled to the proceeds before the depletion of the cash surrender value of a policy by the application of those provisions.
E. Property is payable or distributable notwithstanding the owner's failure to make demand or present an instrument or document otherwise required to obtain payment.
Title 44, Chap. 3, Art. 1, §44-302.
Contents of safe deposit box or other safekeeping depository
Tangible property that is held in a safe deposit box or any other
safekeeping depository in this state in the ordinary course of the holder's
business and the proceeds that result from the sale of the property permitted
by law are presumed abandoned if the property remains unclaimed by the
owner for more than one year after the expiration of the lease or rental
period on the box or other depository.
Title 44, Chap. 3, Art. 1, §44-303.
Rules for taking custody
Except as otherwise provided in this chapter or by another statute
of this state, property that is presumed abandoned, whether located in
this or another state, is subject to the custody of this state if any of
the following applies:
1. The last known address, as shown on the records of the holder, of the apparent owner is in this state.
2. The records of the holder do not reflect the identity of the person entitled to the property and it is established that the last known address of the person entitled to the property is in this state.
3. The records of the holder do not reflect the last known address of the apparent owner and it is established that either:
(a) The last known address of the person entitled to the property is in this state.
(b) The holder is domiciled in this state or is a government or governmental subdivision, agency or instrumentality of this state and has not previously paid or delivered the property to the state of the last known address of the apparent owner or other person entitled to the property.
4. The last known address, as shown on the records of the holder, of the apparent owner is in a state that does not provide for the escheat or custodial taking of the property and the holder is domiciled in this state or is a government or governmental subdivision, agency or instrumentality of this state.
5. The last known address, as shown on the records of the holder, of the apparent owner is in a foreign nation and the holder is domiciled in this state or is a government or governmental subdivision, agency or instrumentality of this state.
6. The transaction out of which the property arose occurred in this state, the holder is domiciled in a state that does not provide for the escheat or custodial taking of the property and the last known address of the apparent owner or other person who is entitled to the property is unknown or is in a state that does not provide for the escheat or custodial taking of the property.
7. The property is a traveler's check or money order that was purchased in this state or the issuer of the traveler's check or money order has its principal place of business in this state and the issuer's records show that the instrument was purchased in a state that does not provide for the escheat or custodial taking of the property or the records do not show the state in which the instrument was purchased.
Title 44, Chap. 3, Art. 1, §44-304.
Dormancy charge
A holder, except an agency of this state, may deduct from property
presumed abandoned a charge imposed by reason of the owner's failure to
claim the property within a specified time if there is a valid and enforceable
written contract between the holder and the owner under which the holder
may impose the charge and the holder regularly imposes the charge and the
charge is not regularly reversed or otherwise canceled. The amount of the
deduction is limited to an amount that is not unconscionable.
Title 44, Chap. 3, Art. 1, §44-305.
Burden of proof as to property evidenced by record of check or
draft
A record of the issuance of a check, draft or similar instrument
is prima facie evidence of an obligation. In claiming property from a holder
who is also the issuer, the department's burden of proof as to the existence
and amount of the property and its abandonment is satisfied by showing
issuance of the instrument and passage of the requisite period of abandonment.
Defenses of payment, satisfaction, discharge and want of consideration
are affirmative defenses and are the burden of the holder to establish.
Title 44, Chap. 3, Art. 1, §44-306.
Report of abandoned property
A. A holder of property that is presumed abandoned shall make a report to the department concerning the property.
B. The report shall be verified and shall contain all of the following:
1. A description of the property.
2. Except for a traveler's check or money order, the name, if known, the last known address, if any, and the social security number or taxpayer identification number, if readily ascertainable, of the apparent owner of property with a value of at least fifty dollars.
3. An aggregate amount of items with a value of less than fifty dollars each.
4. For an amount of at least fifty dollars held or owing under an annuity or a life or endowment insurance policy, the full name and last known address of the annuitant or insured and of the beneficiary.
5. For property held in a safe deposit box or any other safekeeping depository, an indication of the place where it is held and where it may be inspected by the department and any amount owing to the holder.
6. The date, if any, on which the property became payable, demandable or returnable and the date of the last transaction with the apparent owner of the property.
7. Other information that the department by rule deems necessary for the administration of this chapter.
C. If a holder of property that is presumed abandoned is a successor to another person who previously held the property for the apparent owner or the holder has changed the holder's name while holding the property, the holder shall file with the report the holder's former names, if any, and the known names and addresses of all previous holders of the property.
D. A life insurance company that is a holder of property that is presumed abandoned shall file the report prescribed by this section before May 1, and the report shall cover the prior calendar year. Any other holder of property that is presumed abandoned shall file the report before November 1 and the report shall cover the last twelve months before July 1 of that year. A holder may make a onetime election to annually report the property at the same time it reports its income for the purposes of income tax pursuant to title 43.
E. Prior to one hundred twenty days before the holder of property that is presumed abandoned files the report prescribed in this section, the holder shall send a written notice to the apparent owner that states that the holder is in possession of the property subject to this chapter if all of the following apply:
1. The holder has an address in the holder's records for the apparent owner and the records do not indicate that the address is inaccurate.
2. The claim of the apparent owner is not barred by any other law of this state.
3. The value of the property is at least fifty dollars.
F. Before the date for filing the report, the holder of property that is presumed abandoned may request the department to extend the time for filing the report. The department may grant the extension for good cause. On receipt of the extension, the holder may make an interim payment on the amount the holder estimates will ultimately be due and that payment terminates the accrual of additional interest on the amount paid.
G. If the laws of this state or the terms of the life insurance policy require the company to give notice to the insured or owner that any automatic premium loan provision or other nonforfeiture provision has been exercised and the notice given to an insured or owner whose last known address according to the company's records is in this state is undeliverable, the company shall make a reasonable search to ascertain the policyholder's correct address to which the notice must be mailed.
H. State agencies that hold monies for the payment of void warrants shall report to the department in a format prescribed by the department all warrants voided in the previous month not later than the tenth day of each month.
Title 44, Chap. 3, Art. 1, §44-307.
Payment or delivery of abandoned property
A. On filing the report prescribed in section 44-307, the holder of property that is presumed abandoned shall pay, deliver or cause to be paid or delivered to the department the property described in the report as unclaimed. If the property is an automatically renewable deposit and a penalty or forfeiture in the payment of interest would result, the time for compliance is extended until a penalty or forfeiture would no longer result. The holder of tangible property held in a safe deposit box or any other safekeeping depository shall deliver the property to the department on filing the report prescribed in section 44-307.
B. If the property reported to the department is a security or security entitlement pursuant to title 47, chapter 8, the department may make an endorsement, instruction or entitlement order on behalf of the apparent owner to invoke the duty of the issuer or its transfer agent or the securities intermediary to transfer or dispose of the security or the security entitlement in accordance with title 47, chapter 8.
C. If the holder of property reported to the department is the issuer of a certificated security, the department has the right to obtain a replacement certificate pursuant to section 47-8405, but an indemnity bond is not required.
D. An issuer, the holder and any transfer agent or other person who acts pursuant to the instructions and on behalf of the issuer or holder in accordance with this section are not liable to the apparent owner and are indemnified against all claims of any person in accordance with section 44-310.
E. Each month a holder of property reported pursuant to section 44-307, subsection H shall remit the property with the report of property presumed abandoned or other form prescribed by the department.
Title 44, Chap. 3, Art. 1, §44-308.
Notice and publication of abandoned property
A. The department shall publish a notice not later than November 30 of the year after the year in which abandoned property has been paid or delivered to the department. The department shall cause the notice to be published in a newspaper of general circulation in the county in which the last known address of any person named in the notice is located. If a holder does not report an address for the apparent owner or the address is outside this state, the department shall cause the notice to be published in the county in which the holder has its principal place of business within this state or another county that the department reasonably selects. The department shall ensure that the notice is in a form that in the judgment of the department is likely to attract the attention of the apparent owner of the unclaimed property. The notice shall contain all of the following information:
1. The name of each person that appears to be the owner of the property as stated in the report filed by the holder.
2. The last known address or location of each person that appears to be the owner of the property, if an address or location is stated in the report filed by the holder.
3. A statement that explains that the property of the owner is presumed abandoned and is in the protective custody of the department.
4. A statement that on request to the department information about the property and its return to the owner is available to a person who has a legal or beneficial interest in the property.
B. The department is not required to publish a notice of the name, address or location of an owner of property that has a total value of less than fifty dollars or information concerning a traveler's check, money order or similar instrument.
C. In addition to the publication required in subsection A, the department shall cause to be published in a newspaper or newspapers of general circulation in this state a series of display advertisements.
Title 44, Chap. 3, Art. 1, §44-309.
Custody by state; recovery by holder; defense of holder
A. On payment or delivery of property to the department, the state assumes custody and responsibility for the safekeeping of the property. A holder who pays or delivers property to the department in good faith is relieved of all liability with respect to the property that arises after the payment or delivery.
B. A holder who has paid money to the department pursuant to this chapter may subsequently make payment to a person who reasonably appears to the holder to be entitled to payment. On a filing by the holder of proof of payment and proof that the payee was entitled to the payment, the department shall promptly reimburse the holder for the payment without imposing any fee or other charge. If the holder seeks reimbursement for a payment made on a negotiable instrument, including a traveler's check or money order, the department shall reimburse the holder if the holder files proof that the instrument was duly presented and that payment was made to a person who reasonably appeared to be entitled to payment. The department shall reimburse the holder for payment even if the payment was made to a person whose claim was barred pursuant to section 44-321.
C. Without paying any fee or other charge, a holder who has delivered property other than money to the department pursuant to this chapter may reclaim the property if the property is still in the possession of the department and the holder files proof that the apparent owner has claimed the property from the holder.
D. The department may accept a holder's affidavit as sufficient proof of the holder's right to recover money and property under this chapter.
E. If a holder pays or delivers property to the department in good faith and after the payment or delivery another person claims the property from the holder or another state claims the money or property under that state's laws relating to escheat or abandoned or unclaimed property, on written notice of the claim the department shall defend the holder against the claim and indemnify the holder against any liability on the claim that results from payment or delivery of the property to the department.
F. If the department receives any property that is removed from a safe deposit box or any other safekeeping depository the department is subject to the holder's right to be reimbursed for the cost of the opening and to any valid lien or contract that provides for the holder to be reimbursed for unpaid rent or storage charges. The department shall reimburse the holder from the proceeds that remain after deducting the expense incurred by the department in selling the property.
G. For the purposes of this section, payment or delivery is made in good faith if all of the following requirements are met:
1. Payment or delivery was made in a reasonable attempt to comply with this chapter.
2. At the time of the payment or delivery the holder was not in breach of a fiduciary obligation with respect to the property and based on facts known by the holder at the time of the payment or delivery the holder reasonably believed that the property was presumed abandoned.
3. Records pursuant to which the payment or delivery was made meet reasonable commercial standards of practice.
Title 44, Chap. 3, Art. 1, §44-310.
Crediting of owner's account; interest
A. A holder shall not cease payment of interest on an interest bearing demand, savings or time deposit, including a deposit that is automatically renewable, unless all of the following conditions apply:
1. There is an enforceable written contract between the holder and the owner of the property that allows the holder to impose the charges or cease payment of interest.
2. For property that is more than two dollars, not more than three months before the initial cessation of interest the holder gave written notice to the owner at the last known address of the owner that stated that interest would cease.
3. The holder regularly ceases payment of interest and does not regularly retroactively credit interest on that type of property.
B. If property other than money is delivered to the department pursuant to this chapter, the department shall provide the owner with any income or gain realized or accruing on the property at or before liquidation or conversion of the property to money. If the property delivered to the department is an interest bearing demand, savings or time deposit, including a deposit that is automatically renewable, the department shall pay interest at the legal rate or any lesser rate that the property earned while in the possession of the holder. Interest begins to accrue when the property is delivered to the department and ceases ten years after delivery or on the date the department pays the owner, whichever occurs first.
Title 44, Chap. 3, Art. 1, §44-311.
Public sale of abandoned property
A. Except as otherwise provided in this section, within three years after receiving abandoned property the department shall sell the property to the highest bidder at a public sale at a location in this state that in the judgment of the department affords the most favorable market for the property. The department may decline the highest bid and reoffer the property for sale if the department considers the bid to be insufficient. The department is not required to offer the property for sale if the department determines that the probable cost of the sale will exceed the proceeds from the sale. Before conducting a sale pursuant to this section, the department shall cause a notice to be published at least three weeks before the sale in a newspaper of general circulation in the county in which the sale will occur.
B. The department shall sell securities that are listed on an established stock exchange at prices prevailing on the exchange at the time of the sale. The department may sell other securities over the counter at prices prevailing at the time of the sale or by any reasonable method selected by the department.
C. If the department sells the securities before the expiration of three years after the holder delivers the securities to the department, a person who makes a claim pursuant to this chapter before the end of the three year period is entitled to receive from the department the proceeds of the sale of the securities or the market value of the securities at the time the claim is made, whichever is more, plus dividends, interest and other increments accrued up to the time the claim is made, minus all expenses of the sale. A person who makes a claim pursuant to this chapter after the expiration of the three year period is entitled to receive from the department the securities that the holder delivered to the department if the securities remain in the department's custody or the person is entitled to receive the net proceeds of the sale. Except in a case of intentional misconduct or malfeasance by the department, the person is not entitled to receive any appreciation in the value of the property that occurred after the delivery to the department.
D. A purchaser of property at a sale conducted by the department pursuant to this chapter takes the property free of all claims of the owner or previous holder and of all persons claiming through or under the owner or previous holder. The department shall execute all documents necessary to complete the transfer of ownership.
Title 44, Chap. 3, Art. 1, §44-312.
Deposit of monies; definition
A. Except as otherwise provided in this section or section 44-314, the department shall transmit all monies received pursuant to this chapter, including the proceeds from the sale of abandoned property pursuant to section 44-312, to the state treasurer for deposit in the state general fund, and the state treasurer shall transfer:
1. Thirty-five per cent of the monies to the housing trust fund established by section 41-1512.
2. Twenty per cent of the monies to the housing trust fund established by section 41-1512. These monies shall be used exclusively for the development of eligible and viable affordable housing in rural areas and for the purposes authorized under the housing development fund established by section 41-1518.
3. Twenty per cent of the monies to the funds in the amounts provided in section 5-113, subsection A.
B. The department shall deposit monies from unclaimed shares and dividends of any corporation incorporated under the laws of this state in the permanent state school fund pursuant to article XI, section 8, Constitution of Arizona.
C. The department shall retain in a separate trust fund at least one hundred thousand dollars from which the department shall pay claims.
D. Before making the deposit, the department shall record the name and last known address of each person who appears from the holders' reports to be entitled to the property and the name and last known address of each insured person or annuitant and beneficiary. The department shall also record the policy or contract number of each policy or contract of an insurance company that is listed in the report, the name of the company and the amount due. The department shall make the record available for public inspection during reasonable business hours.
E. Before making any deposit to the credit of the state general fund, the department may deduct, subject to legislative appropriation, administrative expenses in the following order of priority:
1. Any costs in connection with the sale of abandoned property.
2. Costs of mailing and publication in connection with any abandoned property.
3. Reasonable department service charges.
4. Costs incurred in examining records of holders of property and in collecting the property from those holders.
5. Lawful holder charges.
F. The department shall deposit monies received pursuant to section 35-187 in the homeless trust fund as provided in section 41-2021 in an amount of not more than one million dollars. The department shall deposit monies in excess of one million dollars pursuant to the distribution described in subsections A and B of this section. Before making any deposit in the homeless trust fund, the department shall deduct any amounts related to owner claims and interest payments.
G. For the purposes of this section, "rural area" means either:
1. A county with a population of less than four hundred thousand persons.
2. A census county division with less than fifty thousand persons in a county with a population of four hundred thousand or more persons.
Title 44, Chap. 3, Art. 1, §44-313.
Federal deposit insurance corporation trust fund; temporary custody; interest
A. The federal deposit insurance corporation trust fund is established consisting of monies the department receives from the federal deposit insurance corporation under the unclaimed deposits amendments act of 1993 (P.L. 103-44; 107 Stat. 220; 12 United States Code section 1822(e)). The department shall administer the fund. Monies in the fund are continuously appropriated.
B. If the monies deposited in the federal deposit insurance corporation trust fund are not claimed by the owner within ten years after being surrendered to the department, the department shall return the monies to the federal deposit insurance corporation.
C. This state retains all interest earned on the monies in the federal deposit insurance corporation trust fund. The state treasurer shall deposit the interest earned on the monies in the federal deposit insurance corporation trust fund as follows:
1. Sixty-five per cent in the state general fund.
2. Thirty-five per cent in the housing trust fund established by section 41-1512.
Title 44, Chap. 3, Art. 1, §44-314.
Confidentiality; violation; classification; definitions
A. The department may disclose confidential information relating to an item of property to the claimant, a successor in interest to the claimant or a designee of the claimant who is authorized in writing by the claimant.
B. The department also may disclose confidential information to:
1. Any employee of the department whose official duties involve unclaimed property.
2. The office of the attorney general for its use in providing counsel relating to unclaimed property administration or in preparation for any proceeding involving unclaimed property before the department or any other agency or board of this state or before any grand jury or any state or federal court.
3. Pursuant to a written agreement between the department and another state, a state unclaimed property official from the other state if the other state grants substantially similar privileges to the department for the same type of information.
4. The auditor general, in connection with any audit of the department.
5. Any person to the extent necessary for effective unclaimed property administration in connection with the processing, storage, transmission and reproduction of the information and the programming, maintenance, repair, testing and procurement of equipment for purposes of unclaimed property administration.
C. The department may disclose confidential information in any state or federal judicial or administrative proceeding relating to unclaimed property administration if:
1. The claimant is a party to the proceeding.
2. The treatment of an item reflected in the information is directly related to the resolution of an issue in the proceeding.
3. The information directly relates to a transactional relationship between a person who is a party to the proceeding and the claimant and the information directly affects the resolution of an issue in the proceeding.
D. The department may disclose identity information for purposes of notifying persons who appear to be entitled to unclaimed property in the manner described in section 44-309.
E. The department may disclose statistical information gathered from confidential information if it does not disclose confidential information attributable to a claimant.
F. A court may order the department to disclose confidential information pertaining to a party to an action. An order shall be made only on a showing of good cause and that the party who seeks the information has demanded the information from the claimant.
G. If the department is required or permitted to disclose confidential information, it may charge the person or agency that requests the information for the reasonable cost of the department's services.
H. A disclosure of confidential information in violation of this section is a class 1 misdemeanor. A knowing disclosure of confidential information is a class 6 felony.
I. For the purposes of this section:
1. "Claimant" means a person or entity that claims to have a property interest in the item of property that is presumed abandoned.
2. "Confidential information" includes reports filed by holders of property presumed abandoned under this chapter, a claimant's application and documents submitted to support a claim and information discovered by the department concerning claims and claimants.
Title 44, Chap. 3, Art. 1, §44-315.
Claim of another state to recover property
A. After property has been paid or delivered to the department pursuant to this chapter, another state may recover the property if any of the following applies:
1. The property was paid or delivered to the custody of this state because the records of the holder did not indicate a last known location of the apparent owner within the borders of the other state and the other state establishes that the apparent owner or other person who is entitled to the property was last known to be located within the borders of that state and under the laws of that state the property has escheated or become subject to a claim of abandonment by that state.
2. The property was paid or delivered to the custody of this state because at the time of the payment or delivery the laws of the other state did not provide for the escheat or custodial taking of the property, but after the payment or delivery the other state enacts laws that cause the property to escheat or become subject to a claim of abandonment by that state.
3. The records of the holder did not accurately identify the owner of the property and the last known location of the owner within the borders of another state and under the laws of that state the property has escheated or become subject to a claim of abandonment by that state.
4. The property was subjected to custody by this state pursuant to section 44-304, paragraph 6 and under the laws of the state of domicile of the holder the property has escheated or become subject to a claim of abandonment by that state.
5. The property is a sum that is payable on a traveler's check, money order or similar instrument that was purchased in the other state and delivered to the custody of this state pursuant to section 44-304, paragraph 7 and under the laws of the other state the property has escheated or become subject to a claim of abandonment by that state.
B. In order to file a claim to recover escheated or abandoned property, another state shall present the claim in a form prescribed by the department. The department shall decide the claim within ninety days after the claim is presented. The department shall allow the claim on determining that the other state is entitled to the abandoned property pursuant to subsection A of this section.
C. Before recovering property under this section, the department shall require the other state to agree to indemnify this state and its officers and employees against any liability on a claim to the property.
Title 44, Chap. 3, Art. 1, §44-316.
Filing claim with department
A. Any person, excluding another state, who claims property that was paid or delivered to the department may file a claim on a form prescribed by the department and verified by the claimant.
B. Within ninety days after a claim is filed the department shall allow or deny the claim and shall give written notice of the decision to the claimant. If the claim is denied the department shall inform the claimant of the reasons for the denial and shall specify what additional evidence is required before the claim will be allowed. The claimant may then file a new claim with the department or may maintain an action pursuant to section 44-318.
C. Within thirty days after a claim is allowed the department shall deliver the property or pay the net proceeds of a sale of the property to the claimant, including any dividend, interest or other increment to which the claimant is entitled pursuant to sections 44-311 and 44-312.
D. A holder who pays the owner for property that has been delivered to the department and that if claimed from the department by the owner would be subject to an increment pursuant to sections 44-311 and 44-312 shall recover from the department the amount of the increment.
Title 44, Chap. 3, Art. 1, §44-317.
Action to establish claim; attorney fees
A person who is aggrieved by a decision of the department, or whose
claim has not been decided within ninety days after filing the claim, may
begin an original action in superior court to establish the claim by naming
the department as a defendant. If the aggrieved person establishes the
claim in an action against the department, the court may award the claimant
reasonable attorney fees.
Title 44, Chap. 3, Art. 1, §44-318.
Election to take payment or delivery
A. The department may decline to receive property that is reported under this chapter and that the department considers to have a value of less than the costs of notice and sale.
B. With the written consent of the department and on terms prescribed by the department, a holder may report and deliver property before the property is presumed abandoned. The department shall hold that property, and that property is not presumed abandoned until it otherwise would be presumed abandoned pursuant to this chapter.
Title 44, Chap. 3, Art. 1, §44-319.
Destruction or disposition of property having no substantial commercial value;immunity from liability
If the department determines after investigation that property delivered pursuant to this chapter has no substantial commercial value, the department may destroy or otherwise dispose of the property at any time. A person shall not maintain an action or proceeding against this state, the department or any officer of this state or against the holder for or on account of an act of the department pursuant to this section, except for intentional misconduct or malfeasance.
Title 44, Chap. 3, Art. 1, §44-320.
Periods of limitation
A. The expiration of a period of limitation on the owner's right to receive or recover property, whether specified by contract, statute or court order, does not preclude the property from being presumed abandoned or affect a duty to file a report or to pay or deliver or transfer property to the department as required by this chapter.
B. The department shall not begin an action or proceeding to enforce this chapter in regard to the reporting, delivery or payment of property more than four years after the holder identified the property in a report filed with the department or gave express notice to the department of a dispute regarding the property. If a holder omits from a report any amount of property that is properly includible and that is in excess of twenty-five per cent of the amount of property stated in the report, the department may begin an action or proceeding to enforce this chapter at any time within six years after the report was filed. If there is no report or other express notice, the period of limitation is tolled. The period of limitation is also tolled if the holder files a fraudulent report.
Title 44, Chap. 3, Art. 1, §44-321.
Requests for reports; examination of records
A. The department may require any person who has not filed a report or any person who the department believes has filed an inaccurate, incomplete or false report to file a verified report in a form specified by the department. The report shall:
1. State whether the person is holding property that is reportable under this chapter.
2. Describe the property not previously reported or property about which the department has inquired.
3. Identify and state the amount of property that may be in issue.
B. At reasonable times and on reasonable notice, the department may examine the records of any person to determine whether the person has complied with this chapter. The department may conduct the examination even if the person believes that it is not in possession of any property that must be reported, paid or delivered pursuant to this chapter.
C. At reasonable times the department may examine the records of an agent, including a dividend disbursing agent or transfer agent, of a business association or financial organization that is the holder of property presumed abandoned if the department has given the notice prescribed in subsection B of this section to both the association or organization and the agent at least ninety days before the examination.
D. Documents and working papers that the department or the department's agent, employee or designated representative obtains or compiles in the course of conducting an examination are confidential and are not public records. However, notwithstanding sections 42-2003 and 44-315, the documents and papers may be:
1. Used by the department in the course of an action to collect unclaimed property or otherwise enforce this chapter.
2. Used in joint examinations conducted with or pursuant to an agreement with another state, the federal government or any other governmental subdivision, agency or instrumentality.
3. Produced pursuant to subpoena or court order.
4. Disclosed to the abandoned property office of another state for that state's use in circumstances that are equivalent to those described in this subsection, if the other state is bound to keep the documents and papers confidential.
E. If an examination of the records of a person results in the disclosure of property that is reportable under this chapter, the department may assess the cost of the examination against the holder at the rate of one hundred dollars each day for each examiner, but the assessment shall not exceed the value of the property found to be reportable. The department may assess the cost of an examination made pursuant to subsection C of this section only against the business association or financial organization.
F. If a holder does not maintain the records required in section 44-323 and the records of the holder that are available for the periods subject to this chapter are insufficient to allow the preparation of a report, the department may require the holder to report and pay to the department the amount that the department reasonably believes, based on the holder's available records or any other reasonable method of estimation, should have been but was not reported. The method of estimation shall be agreed to by the holder or shall be a statistically valid sampling method.
Title 44, Chap. 3, Art. 1, §44-322.
Retention of records
A. A holder that is required to file a report pursuant to section 44-307 shall maintain the records that contain the information required to be included in the report for five years after the holder files the report, except as provided in subsection B of this section or unless the department adopts a rule that allows for a shorter period of time.
B. A business association or financial organization that sells, issues or provides to others for sale or issue in this state traveler's checks, money orders or other similar instruments on which the business association or financial organization is directly liable, other than third party bank checks, shall maintain a record of the instruments while the instruments remain outstanding and the record shall indicate the state and date of issue of the instruments. The association or organization shall maintain the record prescribed by this subsection for three years after the holder files the report.
Title 44, Chap. 3, Art. 1, §44-323.
Enforcement
The department may request the attorney general to commence an action in the superior court to enforce this chapter, and, if applicable, the department may file an action in another state to enforce this chapter.
Title 44, Chap. 3, Art. 1, §44-324.
Interstate agreements and cooperation; joint and reciprocal actions with other states
A. The department may enter into an agreement with another state to exchange information relating to abandoned property or the possible existence of abandoned property. The agreement may allow the other state or another person acting on behalf of a state to examine records as authorized in section 44-322. The department by rule may require the reporting of information that is necessary to comply with an agreement made pursuant to this section, and the department may prescribe the form.
B. The department may join with another state to seek enforcement of this chapter against any person who is or may be holding property that is reportable pursuant to this chapter.
C. At the request of another state, the attorney general of this state may maintain an action on behalf of the other state to enforce in this state the unclaimed property laws of the other state against a holder of property that is subject to escheat or a claim of abandonment by the other state, if the other state agrees to pay all costs incurred by the attorney general in maintaining the action.
D. The department may request that the attorney general of another state or another attorney begin an action in the other state on behalf of the department. The department shall pay all costs, including attorney fees, in maintaining an action pursuant to this subsection. The department may pay the costs and attorney fees from monies received pursuant to this chapter. The department may agree to pay costs and attorney fees that are based in whole or in part on a percentage of the value of any property that the department recovers in the action. The department shall not deduct any costs or attorney fees paid pursuant to this section from the amount that is subject to the claim by the owner pursuant to this chapter.
Title 44, Chap. 3, Art. 1, §44-325.
Interest; penalties
A. The department may require any person who fails to pay or deliver property within the time prescribed in this chapter to pay to the department interest at the rate of one and one-half per cent per month or fraction of a month on the property or value of the property from the date the property should have been paid or delivered.
B. Any person who wilfully fails to:
1. Render any report or perform any other duty required under this chapter shall pay a civil penalty of one hundred dollars for each day the report is withheld or the duty is not performed up to a maximum of five thousand dollars.
2. Pay or deliver property to the department as required under this chapter shall pay a civil penalty of twenty-five per cent of the value of the property that should have been paid or delivered.
Title 44, Chap. 3, Art. 1, §44-326.
Agreement to locate property
A. The following are void and unenforceable:
1. An agreement entered into by an owner with another person if the primary purpose of that agreement is to locate, deliver, recover or assist in the recovery of property that is presumed abandoned, if the agreement was entered into during the period commencing on the date the property was presumed abandoned and extending to a time that is twenty-four months after the date that the property is paid or delivered to the department. This paragraph does not apply to an owner's agreement with an attorney to file a claim relating to identified property or to contest the department's denial of a claim.
2. A provision in an agreement that requires an owner to pay compensation that includes a portion of mineral proceeds that are not presumed abandoned or the underlying minerals, if the primary purpose of the agreement is to locate, deliver, recover or assist in the recovery of mineral proceeds that are presumed abandoned.
B. If an owner enters into an agreement that is not void pursuant to this section and the primary purpose of that agreement is to locate, deliver, recover or assist in the recovery of property reported to the department, the agreement is:
1. Enforceable if the agreement is in writing, clearly states the nature of the property and the services to be performed, is signed by the apparent owner.
