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.
TITLE 12 Decedents' Estates and Fiduciary Relations
PART III - DESCENT AND DISTRIBUTION; ESCHEAT
CHAPTER 11 - ESCHEATS
Subchapter II. Abandoned or Unclaimed Property
Article 1. Deposit to General Fund; Definitions
Definitions.
As used in this subchapter:
"Banking organization" includes any organization, corporation or association organized and existing under Chapter 7, 15 or 17 of Title 5 or the corresponding provisions of statutes in effect prior to February 12, 1953 or any bank or credit union created under the laws of the United States or any state. Title 12, Part III, Chap. 11, Subchap. II, Art. 1, §1130.
Deposit to General Fund.
(a) The State Escheator shall deposit into the General Fund all moneys or proceeds of property received pursuant to this subchapter.
(b) The payment of all claims, the right to which is established pursuant to this subchapter, shall be made from the General Fund upon voucher signed by the State Escheator. Title 12, Part III, Chap. 11, Subchap. II, Art. 1, §§1131.
Article 2. General Provisions.
Statutes of limitations not a bar.
The expiration of any period of time specified by law during which
an action or proceeding may be commenced or enforced to secure payment
of a claim for money or recovery of property shall not prevent any money
or property from being deemed abandoned property as defined in this subchapter,
nor affect any duty to file a report required by this subchapter or to
pay or deliver to the State Escheator any such abandoned property, and
shall not serve as a defense in any action or proceeding by or on behalf
of the State Escheator to compel the filing of any report or the payment
or delivery of any abandoned property required by this subchapter or to
enforce or collect any penalty provided by this subchapter. Title 12, Part
III, Chap. 11, Subchap. II, Art. 2, §§1140.
Escheator to maintain public record.
The State Escheator shall maintain a public record of all names
and last known addresses of the person or persons appearing to be entitled
to abandoned property paid or delivered to the State Escheator pursuant
to this subchapter. Other identifying information set forth in any report
or record made or delivered to the State Escheator shall be retained by
the State Escheator but shall be considered confidential and may be disclosed
only in the discretion of the State Escheator. The State Escheator shall
not reveal the amount of any abandoned property, except to a person who
has presented satisfactory proof of an interest in or title to such property
or except for purposes directly connected with the administration of this
subchapter. Title 12, Part III, Chap. 11, Subchap. II, Art. 2, §1141.
Publication of abandoned property by State Escheator.
(a) In the month of October of each year the State Escheator shall publish in a daily newspaper of this State a statement of abandoned or unclaimed property or funds paid to the Escheator during the 12 months ending July 1 next preceding such publication which shall not have been paid to claimants and which shall not have been previously advertised under the provisions of §1161, §1172 or §1183 of this title.
(b) Such statement shall be in such form and classified in such manner as the State Escheator shall determine, except that names of persons appearing to be entitled to any such abandoned property shall be listed in alphabetical order within each such classification.
(c) Such statement shall set forth:
(1) The names and last known addresses of all persons appearing from the records in the State Escheator's office to be entitled to receive such abandoned property consisting of money not less than $10 in amount;
(2) The names and last known addresses of all persons appearing from the records in the State Escheator's office to be entitled to receive such abandoned property consisting of personal property other than money and which the State Escheator shall not have determined, as provided in §1143 of this title, to be valueless or of such little value that a sale thereof would cost in excess of the probable proceeds therefrom;
(3) Where any such abandoned property consisted of personal property other than money and was converted into money pursuant to §1143 of this title and such money amounts to $10 or more, the names and last known addresses of the persons appearing from the records in the State Escheator's office to be entitled to receive the same;
(4) Such other information as the State Escheator may determine; and
(5) A statement:
a. That a public record is maintained in the office of the State Escheator of all abandoned property in accordance with §1141 of this title; and
b. That a claim for any such abandoned property should be filed with the State Escheator at the Escheator's office in the City of Wilmington.
(d) Notwithstanding the foregoing provisions of this section, the State escheator may omit from such statement the name and last known address of any person where special circumstances make it desirable that such information be withheld. Title 12, Part III, Chap. 11, Subchap. II, Art. 2, §1142.
Sale of personal property by State Escheator.
(a) All abandoned property, other than money, delivered to the State Escheator pursuant to this subchapter may be sold or disposed of at public auction to the highest bidder or in such manner and at such times as the State Escheator, in the Escheator's discretion, shall determine to be in the best interest of the State. In the case of stocks, bonds or other securities, disposition may be made by sale through a registered broker on a recognized securities exchange or over the counter market or, if there is no ready market for such security, by negotiation or public auction.
(b) The proceeds from the sale of any such abandoned property, less all costs incurred in connection with such sale, shall be held in the place of such property and any claimant for abandoned property shall be entitled only to the money so received, less lawful service charges.
(c) The State Escheator shall not be liable in any action for any act made in good faith pursuant to this section. Title 12, Part III, Chap. 11, Subchap. II, Art. 2, §1143.
Assumption of liability by the State; return of property erroneously paid to the State Escheator.
(a) The care and custody, subject only to the duty of conversion prescribed in §1143 of this title, of all abandoned property paid to the State Escheator is assumed for the benefit of those entitled to receive the same and the State shall hold itself responsible for the payment of all claims established thereto pursuant to law, less any lawful deductions, which cannot be paid from the General Fund.
(b) Any person, court, copartnership, unincorporated association or corporation making a payment of abandoned property to the State Escheator shall immediately and thereafter be relieved and held harmless from any or all liability for the property so paid and no action shall be maintained against them or it for:
(1) The recovery of abandoned property paid to the State escheator pursuant to this subchapter or for interest thereon subsequent to the date of the report of such abandoned property to the State Escheator pursuant to this subchapter; and
(2) Damages alleged to have resulted from any such payment.
(c) Nothing in this section shall be construed to relieve any person, court, copartnership, unincorporated association or corporation from liability for:
(1) Any property not paid to the State Escheator;
(2) Damages for negligence or the mishandling of funds or property prior to the time such funds or property are paid to the State Escheator.
(d) Whenever it appears to the satisfaction of the State Escheator that because of some mistake of fact, error in calculation or erroneous interpretation of a statute any person has paid or delivered to the State Escheator, pursuant to any provision of this subchapter, any moneys or other property not required by this subchapter to be so paid or delivered, the Escheator shall have power, during the 6 years immediately succeeding such erroneous payment or delivery, to refund or redeliver such moneys or other property to such person; provided that such moneys or property shall not have been paid or delivered to a claimant or otherwise disposed of in accordance with this subchapter. Any such cash refund shall be paid from the General Fund without the deduction of any service charge. The State Escheator shall not be liable for any interest or other charge for the money or property so refunded or redelivered.
(e) Whenever, because of some mistake of fact, error in calculation or erroneous interpretation of a statute, any person pays or delivers to the State Escheator any moneys or other property not required by this subchapter to be so paid or delivered, such moneys or other property shall, for the purposes of this subchapter, be deemed to be abandoned property, unless and until refunded or redelivered by the State Escheator to the person who paid or delivered the same. Title 12, Part III, Chap. 11, Subchap. II, Art. 2, §1144.
Interest not to run after report of abandoned property.
Notwithstanding any other provision of law, no person entitled
to or owner of abandoned property shall be entitled to receive interest
on account of such abandoned property from and after the date a report
of such abandoned property is made to the State Escheator pursuant to this
subchapter whether or not the person was entitled to interest on such property
prior to such date. Title 12, Part III, Chap. 11, Subchap. II, Art. 2,
§1145.
Claims for abandoned property paid to the State; procedure for determination of claims; appeals.
(a) Claim may be filed with the State Escheator for any abandoned property amounting to over $3 paid to the State Escheator pursuant to this subchapter.
(b) The State Escheator shall possess full and complete authority to determine all such claims and shall forthwith send written notice of such determination to the claimant. At any time within 4 months thereafter such claimant may apply for a hearing and determination of claim by the Tax Appeal Board. The procedure before the Tax Appeal Board for such hearings shall be the same as that provided for by §329 of Title 30 and the Board shall have the same power to compel the attendance of witnesses and the production of evidence as is provided in §330 of Title 30.
(c) Within 30 days after notice of a decision upon such hearing, the State Escheator or any claimant may appeal such decision to the Court of Chancery upon notice to all parties to the proceeding before the Tax Appeal Board and upon such other notice as the Court of Chancery may order.
(d) The Court of Chancery may make such rules as it may deem proper for the perfection, hearing and determination of such appeals. Title 12, Part III, Chap. 11, Subchap. II, Art. 2, §1146.
Payment by State Escheator.
Any claim which is allowed by, or ordered to be paid by, the State
Escheator pursuant to §1146 of this title, together with such costs
and disbursements as may be allowed by the Court or the Tax Appeal Board,
shall be paid out of the General Fund and the State Escheator shall not
be liable in any action for any claim paid in good faith. Title 12, Part
III, Chap. 11, Subchap. II, Art. 2, §1147.
Verification.
Any report required to be verified by this subchapter shall be
verified if made by a person, by such person, if made by a partnership,
by 1 of the members thereof, if made by an unincorporated association or
private corporation, by 1 principal officer thereof if made by a public
corporation, by the chief fiscal officer thereof and if made by a court,
by a judge or the clerk of such court. Title 12, Part III, Chap. 11, Subchap.
II, Art. 2, §1148.
Payment for publication.
Any amount paid by a person to a newspaper or newspapers for any
publication of names as required by this subchapter may be charged equally
against all abandoned property held or owing by such person at the time
of such publication, except abandoned property of individual amounts of
less than $25. Title 12, Part III, Chap. 11, Subchap. II, Art. 2, §1149.
Designation of newspapers.
Any notice required by this subchapter shall be published in such
newspapers as shall be designated by the State Escheator. Title 12, Part
III, Chap. 11, Subchap. II, Art. 2, §1150.
Waiver of publication.
The State Escheator may waive the publication of any notice required
by this subchapter, except a notice required by §1142 of this title,
whenever in the Escheator's opinion the cost of publishing such notice
would be unreasonable in relation to the amount of abandoned property.
Title 12, Part III, Chap. 11, Subchap. II, Art. 2, §1151.
Penalties and interest.
(a) Any banking organization failing to pay over any amounts or property as required by this subchapter or which underpays any amounts or property shall, if such failure or underpayment is due to negligence or intentional disregard of rules and regulations, pay a penalty in the amount of .5% per month of any underpayment up to a maximum of 10% of such amount.
(b) Any banking organization which fails to file any report of amounts or property required by this subchapter or who underreports any amount or property shall pay as a penalty an amount equal to .5% per month of the amount underreported up to a maximum of 5% of such amount.
(c) The State Escheator for good cause shown before the due date of any report may extend the time for filing any report or making any payment under this subchapter, and may waive all or any portion of the penalty imposed under subsection (b) of this section or interest imposed under subsection (d) of this section if the failure is due to reasonable cause and not wilful neglect.
(d) Interest at .5% per month on outstanding unpaid amounts, including penalty, shall accrue from the date the amounts or property were due under this subchapter until paid. Interest due in accordance with this subsection shall in no event exceed 50% of the amount required to be paid; provided, however, that penalties under subsection (a) or (b) of this section shall not be deemed to be interest for purposes of this subsection. Title 12, Part III, Chap. 11, Subchap. II, Art. 2, §1152.
Penalty for false oath.
The making of a wilful false oath in any report required under
this subchapter shall be perjury and punishable as such according to law.
Title 12, Part III, Chap. 11, Subchap. II, Art. 2, §1153.
State Escheator to make regulations.
The State Escheator may make such rules and regulations as the
Escheator may deem necessary to enforce this subchapter. Title 12, Part
III, Chap. 11, Subchap. II, Art. 2, §1154.
Examination of records.
The State Escheator may at reasonable times and upon reasonable
notice examine the records of any person or business association or organization
to determine whether the person has complied with any provision of this
chapter and may by summons require the attendance of any person having
knowledge in the premises, and may take testimony and require proof material
for the investigation, with the power to administer oaths to such person
or persons; provided, however, that the State Bank Commissioner shall act
on behalf of the State Escheator with regard to examinations of banking
organizations. The State Escheator is authorized to reimburse the State
Bank Commissioner for the cost of examinations undertaken on the Commissioner's
behalf and may pay for such reimbursement out of custodian accounts held
for the State Escheator. The State Escheator may disclose such information
as the Escheator possesses to the State Bank Commissioner as may aid in
the Commissioner's examination of any banking organization and may disclose
any information received from the State Bank Commissioner as may be required:
(1) In conjunction with enforcement proceedings; or
(2) In summary form to the extent necessary for the proper disposition of the property. Title 12, Part III, Chap. 11, Subchap. II, Art. 2, §1155.
Court of Chancery - Jurisdiction.
(a) If any person refuses to pay or deliver property, including penalty or interest thereon, to the State Escheator as required by this chapter, the State Escheator may bring an action in the Court of Chancery in the county wherein the holder resides or has a principal place of business (or if none such exists, in New Castle County) to enforce such payment or delivery.
(b) Whenever a holder disputes whether reasonable cause exists for abating penalty or interest determined by the State Escheator to be due under this chapter, such holder may bring an action in the Court of Chancery for the purpose of showing an abuse of discretion by the State Escheator in making the determination that penalty or interest was due. Title 12, Part III, Chap. 11, Subchap. II, Art. 2, §1156.
Presumption of abandonment of personal property held by federal government.
(a) All tangible personal property or intangible personal property, including choses in action in amounts certain, and all debts owed or entrusted funds or other property held by the federal government, or any federal agency, or any officer or appointee thereof, shall be presumed abandoned in this State if the last known address of the owner of the property is in this State and the property has remained unclaimed for 5 years.
(b) This section shall apply to all abandoned property held by the federal government, or any federal agency, or any officer or any appointee thereof, as of July 8, 1991, or at any time thereafter, regardless of when such property became presumptively abandoned. Title 12, Part III, Chap. 11, Subchap. II, Art. 2, §1157.
ARTICLE 3. UNCLAIMED OR UNKNOWN OWNER COURT FUNDS
Abandoned property defined.
(a) The following property shall be deemed abandoned property:
(1) Any legacy, residue of intestate personal estate, distributive share or trust fund paid into the Court of Chancery by any executor, administrator or trustee because the person entitled thereto was absent from the State, unknown or incompetent to receive the same or because the shares of the persons entitled to receive the same were unknown and as to which no action has been taken in any proceeding in the Court of Chancery to recover the same within a period of 5 years; provided, however, that if the Chancellor or Vice-Chancellor shall be of the opinion that the person entitled to any funds deposited in or held by the Court of Chancery is living and intends to claim such funds when able, but is prevented from doing so by reasons beyond the person's control, the Chancellor or Vice-Chancellor shall so certify to the State Escheator in lieu of the report otherwise required by this subchapter and such funds shall not be deemed abandoned in any year in which such certification is made;
(2) Any money or other property held by the Court of Chancery, on account of the receivership or creditors' composition of any person or organization, for distribution to a creditor, owner or shareholder and as to which no claim or request for payment has been made by the person appearing to be entitled thereto within 5 years after any order discharging the receiver or trustee; provided, however, that if the Chancellor or Vice-Chancellor shall be of the opinion that the person entitled to any funds deposited in or held by the Court of Chancery is living and intends to claim such funds when able, but is prevented from doing so by reasons beyond the person's control, the Chancellor or Vice-Chancellor shall so certify to the State Escheator in lieu of the report otherwise required by this subchapter and such funds shall not be deemed abandoned in any year in which such certification is made.
(b) Any abandoned property held or owing by any court or by the clerk of any court to which or to whom the right to receive the same is established to the satisfaction of such court or clerk shall cease to be abandoned.
(c) Any abandoned property defined by this section which, under this section, would have become abandoned prior to January 1, 1956, shall be deemed abandoned on January 1, 1956. Title 12, Part III, Chap. 11, Subchap. II, Art. 3, §1160.
Publication of list of abandoned property.
(a) On or before the 1st day of February in each year, any court or any clerk of a court having abandoned property in the court's or the clerk's possession shall cause to be published a notice entitled: "NOTICE OF NAMES OF PERSONS APPEARING AS OWNERS OF CERTAIN UNCLAIMED PROPERTY HELD BY (name of court or title of officer)."
(b) As to all abandoned property payable in New Castle County, such notice shall be published at least once in a daily newspaper published in said County. As to all abandoned property payable in Kent County or Sussex County, such notice shall be published at least once in a newspaper published at least weekly in the County in which said abandoned property is payable.
(c) Such notice shall be classified as the State Escheator shall prescribe and shall set forth:
(1) The names and last known addresses, in alphabetical order, of all persons appearing to be entitled to any such abandoned property as of the 1st day of January next preceding amounting to $25 or more, except the names of persons appearing to be the owners of abandoned property which since such date has ceased to be abandoned. With the consent of the State Escheator, the name and last known address of any person may be omitted from such notice where special circumstances make it desirable that such information be withheld;
(2) Such other information as the State Escheator may require; and
(3) A statement:
a. That a list of the names contained in such notice is on file and open to public inspection at a place designated therein;
b. That such unclaimed moneys or other property will be paid or delivered by the court or officer on or before the 31st day of March to persons establishing to the court's or officer's satisfaction their right to receive the same; and
c. That in the succeeding month of April and on or before the 10th day thereof, such unclaimed moneys or other property still remaining will be paid or delivered to the State Escheator and that the court or officer shall thereupon cease to be liable therefor. Title 12, Part III, Chap. 11, Subchap. II, Art. 3, §1161.
Payment of abandoned property; presumption as to last known address.
(a) In such succeeding month of April, and on or before the 10th day thereof, the Court of Chancery shall pay or deliver to the State Escheator all property held by it and which was abandoned as specified in § 1160(a)(1) of this title, as of the 1st day of January next preceding.
(b) In such succeeding month of April, and on or before the 10th day thereof, the Court of Chancery shall pay or deliver to the State Escheator all abandoned property specified in §1160(a)(2) of this title, which was so abandoned as of the 1st day of January next preceding.
(c) With respect to items of property of a value of less than $25 deemed abandoned under §1160 of this title, the last known address of any person appearing to be entitled to such property shall be presumed to be an address within this State. This presumption may be rebutted by filing a claim with the State Escheator pursuant to § 1146 of this title. Title 12, Part III, Chap. 11, Subchap. II, Art. 3, §1162.
Report to accompany payment.
Each such payment of abandoned property, pursuant to § 1162
of this title, shall be accompanied by a verified written report classified
as the State Escheator shall prescribe, setting forth:
(1) The names and last known addresses, if any, of the persons appearing to be entitled to receive any such abandoned property of the value of $25 or more;
(2) The title of any proceeding relating to such abandoned property; and
(3) Such other identifying information as the State Escheator may require. Title 12, Part III, Chap. 11, Subchap. II, Art. 3, §1163.
ARTICLE 4. UNCLAIMED PROPERTY HELD OR OWING BY BANKING ORGANIZATIONS
Abandoned property defined.
(a) The following unclaimed property held or owing by banking organizations shall be deemed abandoned property:
(1) Any amounts due on deposits or any amounts to which a shareholder of a savings and loan association, building and loan association or credit union is entitled held or owing by a banking organization which shall have remained unclaimed for 5 years by the person or persons appearing to be entitled thereto, including any interest or dividends credited thereon, excepting:
a. Any such amount which has been reduced or increased, exclusive of dividend or interest payment, within 5 years; or
b. 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 5 years; or
c. Any such amount with respect to which the banking organization has on file written evidence received within 5 years that the person or persons appearing to be entitled to such amounts had knowledge thereof; or
d. 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
e. Any amount held or owing by the banking organization as agent or as trustee of an express trust (active or passive) for the purpose of making payment to holders of or in respect of stocks, bonds or other securities of a governmental or other public issuer or of a corporation, association or joint stock company, other than 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.
(2) Any amount held or owing by a banking organization for the payment of a negotiable instrument or a certified check whether negotiable or not on which such organization is directly liable, which instrument shall have been outstanding for more than 5 years from the date it was payable or from the date of its issuance, if payable on demand; provided, however, that this paragraph shall not apply:
a. To any negotiable instrument payable outside the continental limits of the United States; or
b. To any instrument payable in currency other than United States currency; or
c. To any negotiable instrument issued to pay out any amount held or owing by the banking organization as agent or as trustee of an express trust (active or passive) for the purpose of making payment to holders of or in respect of stocks, bonds or other securities of a governmental or other public issuer or of 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.
(3) Any surplus amounts arising from a sale by a banking organization of the contents of a safe or box, pursuant to law.
(4) Any amount representing a dividend or other payment received 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 an unknown person (except a person entitled to such dividend or other payment upon the surrender of other outstanding securities) is entitled and which shall have remained unclaimed by the person entitled thereto for 5 years after receipt thereof by such banking organization or its nominee.
(5) Any amount which shall have become payable by a banking organization (other than a foreign banking corporation) to a holder or owner of its capital stock and which shall have remained unclaimed for 5 years by the person or persons appearing to be entitled thereto.
(b) Any abandoned property held or owing by a banking organization to which the right to receive the same is established to the satisfaction of such banking organization shall cease to be deemed abandoned.
(c) Any abandoned property defined by this section which, under this section, would have become abandoned prior to June 30, 1956, shall be deemed abandoned on June 30, 1956. Title 12, Part III, Chap. 11, Subchap. II, Art. 4, §1170.
Annual report of abandoned property.
(a) On or before the 1st day of August in each year every banking organization shall make a verified written report to the State Escheator which shall contain a true and accurate statement, as of the 30th day of June next preceding, of all abandoned property specified in § 1170 of this title, held owing by it.
(b) Such report shall, with respect to amounts specified in § 1170(a)(1) of this title which are abandoned property, set forth:
(1) The name and last known address, if any, of the person or persons appearing from the records of such banking organization to be the owner of any such abandoned property;
(2) The amount appearing from such records to be due such person or persons;
(3) The date of the last transaction with respect to such abandoned property if such date is subsequent to December 31, 1909;
(4) The nature and identifying number, if any, of such abandoned property; and
(5) Such other identifying information as the State Escheator may require.
(c) Such report shall, with respect to amounts specified in § 1170(a)(2) of this title which are abandoned property, set forth:
(1) The name and last known address, if any, of the person or persons appearing from the records of such banking organization to be entitled to receive such abandoned property;
(2) A description of such abandoned property including identifying numbers, if any, and the amount appearing from such records to be due or payable;
(3) The amount of any interest or other increment due thereon;
(4) The date such abandoned property was payable or demandable;
(5) The amount and identifying number of any such instrument where the payee thereof is unknown to the banking organization; and
(6) Such other identifying information as the State Escheator may require.
(d) Such report shall, with respect to amounts specified in § 1170(a)(3) of this title which are abandoned property, set forth:
(1) The name and last known address, if any, of the person or persons appearing from the records of such banking organization to be the owner of any such abandoned property;
(2) The articles sold and price obtained therefor;
(3) Such other information as the State Escheator may require.
(e) Such report shall, with respect to amounts specified in § 1170(a)(4) of this title which are abandoned property, set forth:
(1) The name and last known address, if any, of the person or persons appearing from the records of such banking organization to be the owner of any such abandoned property;
(2) The amount appearing from such records to be due such person or persons;
(3) The date when such property was received by the banking organization and the date when it became payable to the owner;
(4) A description of the stock or security on account of which such property was received;
(5) Such other identifying information as the State Escheator may require.
(f) Such report shall, with respect to amounts specified in § 1170(a)(5) of this title which are abandoned property, set forth:
(1) The name and last known address, if any, of the person or persons appearing from the records of such banking organization to be the owner of any such abandoned property;
(2) The amount appearing from such records to be due such person or persons;
(3) The date when such property became payable to the said owner;
(4) A description of the capital stock on account of which the said property is payable; and
(5) Such other identifying information as the State Escheator may require.
(g) Such report shall be in such form as the State Escheator may prescribe. All names of persons appearing in the section of such report relating to deposits, appearing to be the owners thereof, shall be listed in alphabetical order. Abandoned property other than deposits listed in such report shall be classified in such manner as the State Escheator may prescribe and names of persons appearing to be entitled to such abandoned property appearing in such report shall be listed alphabetically within each such classification.
(h) In case any banking organization shall on the 30th day of June in any year neither hold nor owe any abandoned property specified in § 1170 of this title, it shall on or before the 10th day of August next succeeding make a verified written report to the State Escheator so stating. Title 12, Part III, Chap. 11, Subchap. II, Art. 4, §1171.
Publication of list of abandoned property.
(a) Within 30 days after making a report of abandoned property pursuant to §1171 of this title, such banking organization shall cause to be published a notice entitled: "NOTICE OF NAMES OF PERSONS APPEARING AS OWNERS OF CERTAIN UNCLAIMED PROPERTY HELD BY (name of banking organization)."
(b) For all abandoned property payable in New Castle County, such notice shall be published at least twice in a daily newspaper published in said County. For all abandoned property payable in Kent County or Sussex County, such notice shall be published at least once in a newspaper published at least weekly in the County in which said abandoned property is payable.
(c) Such notice shall, in accordance with the classification prescribed by the State Escheator for the report pursuant to §1171 of this title, set forth:
(1) The names and last known addresses, which were in such report, of all persons appearing to be entitled to any such abandoned property amounting to $25 or more; provided, however, that with the consent of the State Escheator the name and last known address of any person may be omitted from such notice where special circumstances make it desirable that such information be withheld. Such names shall be listed in alphabetical order. If, however, such banking organization has reported abandoned property payable in more than 1 county, the names shall be listed alphabetically for each such county and such notice shall include only the names of the persons appearing to be entitled to abandoned property payable in such county;
(2) Such other information as the State Escheator may require; and
(3) A statement:
a. That a report of unclaimed amounts of money or other property held or owing by it has been made to the State Escheator and that a list of the names contained in such notice is on file and open to public inspection at the principal office or place of business of such banking organization in any county where any such abandoned property is payable;
b. That such unclaimed moneys or other property will be paid or delivered by it on or before the succeeding 31st day of October to persons establishing to its satisfaction their right to receive the same; and
c. That in the succeeding month of November, and on or before the 10th day thereof, such unclaimed moneys or other property still remaining will be paid or delivered to the State Escheator and that it shall thereupon cease to be liable therefor. Title 12, Part III, Chap. 11, Subchap. II, Art. 4, §1172.
Payment of abandoned property.
(a) In such succeeding month of November, and on or before the 10th day thereof, every banking organization shall pay or deliver to the State Escheator all abandoned property specified in such report, excepting such abandoned property as since the date of such report shall have ceased to be abandoned.
(b) Such payment shall be accompanied by a statement setting forth such information as the State Escheator may require relative to such abandoned property as shall have ceased to be abandoned. Title 12, Part III, Chap. 11, Subchap. II, Art. 4, §1173.
Abandoned property held by the State Bank Commissioner after receivership.
(a) All amounts held by the State Bank Commissioner as receiver of a banking organization, pursuant to §131 of Title 5, which shall be payable to depositors of such banking organization and which shall not have been claimed and paid within 4 years after receipt by the State Bank Commissioner, shall be deemed abandoned property.
(b) Any such abandoned property held by the State Bank Commissioner to which the right to receive the same is established while in the Commissioner's hands shall cease to be deemed abandoned. Title 12, Part III, Chap. 11, Subchap. II, Art. 4, §1174.
Payment of abandoned property after receivership.
(a) Not later than the 1st day of February in each year the State Bank Commissioner shall pay to the State Escheator all such abandoned property held by the Commissioner which shall have become abandoned property at any time prior to the 1st day of July next preceding, excepting such abandoned property as since such 1st day of July shall have ceased to be abandoned.
(b) Such payment shall be accompanied by a statement signed by the State Bank Commissioner setting forth the name and last known address of and the amount owing to each person appearing to be the owner of any such abandoned property or, if the name is unknown, the nature and identifying number of the indebtedness and the name of the banking organization or foreign banking corporation from which such abandoned property was received together with such other identifying information as the State Escheator may require. Title 12, Part III, Chap. 11, Subchap. II, Art. 4, §1175.
Reimbursement for instruments paid.
Any banking organization which has paid to the State Escheator
abandoned property held or owing for the payment of a negotiable instrument
or a certified check may make payment to the person entitled thereto, upon
presentation of the instrument by such person, and shall thereby be entitled
to reimbursement of the amount paid to the State Escheator. Any issuer
of money orders and traveler's checks who has paid to the State Escheator
abandoned property held or owing for the payment of a money order or traveler's
check may make payment to the person entitled thereto and shall thereby
be entitled to reimbursement of the amount paid to the State Escheator
upon proof of such payment in the form of the paid instrument, or in the
absence of the paid instrument, the agreement of the issuer to hold harmless
and indemnify the State and its State Escheator from any and all claims
with regard to such instrument. Such reimbursement shall be made by the
State Escheator after audit of a claim of the banking organization without
the deduction of any service or other charge. Title 12, Part III, Chap.
11, Subchap. II, Art. 4, §1176.
Subchapter III. Unclaimed Life Insurance Funds.
Scope.
(a) This subchapter shall apply to unclaimed funds, as defined in § 1181 of this title, of any life insurance company doing business in this State where the last known address, according to the records of such company, of the person entitled to such funds is within this State; provided that, if a person other than the insured or annuitant be entitled to such funds and no address of such person be known to such company or if it be not definite and certain from the records of such company what person is entitled to such funds, then in either event it shall be presumed for the purposes of this subchapter 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 company.
(b) This subchapter shall also apply to unclaimed funds, as defined in § 1181 of this title, of any life insurance company doing business in this State where the last person entitled to any such fund is or was a Delaware corporation and such corporation abandoned, disclaimed or otherwise relinquished all right, title and interest to such funds. This subchapter shall also apply where such corporation terminated or cancelled any life or endowment insurance policy or annuity contract, or permitted any life or endowment insurance policy or annuity contract to be terminated or cancelled, and such funds resulting from any policy or contract to which the corporation would otherwise have been entitled accrued or became due and payable after such cancellation or termination. Title 12, Part III, Chap. 11, Subchap. III, Art. 4, §1180.
Definitions.
The term "unclaimed funds" as used in this subchapter means and
includes all moneys held and owing by any life insurance company doing
business in this State which shall have remained unclaimed and unpaid for
5 years or more after it is established from the records of such company
that such moneys became due and payable under any life or endowment insurance
policy or annuity contract which has matured or terminated. A life insurance
policy not matured by actual proof of the prior death of the insured shall
be deemed to be matured and the proceeds thereof shall be deemed to be
"due and payable" within the meaning of this subchapter if such policy
is in force when the insured shall have attained the limiting age under
the mortality table on which the reserve is based. Moneys otherwise admittedly
due and payable shall be deemed to be "held and owing" within the meaning
of this subchapter although the policy or contract shall not have been
surrendered as required. Title 12, Part III, Chap. 11, Subchap. III, Art.
4, §1181.
Annual report of unclaimed funds.
(a) Every such life insurance company shall on or before the 1st day of May of each year make a report in writing to the State Escheator of all unclaimed funds, as defined in §1181 of this title, held and owing by it on the 31st day of December next preceding; provided, however, such report shall not be required to include amounts of less than $5 which on February 29, 1956, shall have been unclaimed and unpaid for more than 10 years or amounts which have been paid to another state or jurisdiction prior to said date.
(b) Such report shall be signed and sworn to by an officer of such company and shall set forth:
(1) In alphabetical order the full name of the insured or annuitant, the last known address according to the company's records and the policy or contract number;
(2) The amount appearing from the company's records to be due on such policy or contract, except that amounts under $50 each may be reported in the aggregate;
(3) The date such unclaimed funds became payable;
(4) The name and last known address of each beneficiary or other person who, according to the company's records, may have an interest in such unclaimed funds; and
(5) Such other identifying information as the State Escheator may require. Title 12, Part III, Chap. 11, Subchap. III, Art. 4, §1182.
Publication of list of unclaimed funds.
(a) On or before the 1st day of September following the making of such reports under §1182 of this title, every such life insurance company shall cause to be published notices based on the information contained in such reports and entitled: "NOTICE OF CERTAIN UNCLAIMED FUNDS HELD AND OWING BY LIFE INSURANCE COMPANIES."
(b) For all unclaimed funds payable to a person appearing to be entitled to such funds whose last known address is located in New Castle County, such notice shall be published at least twice in a daily newspaper published in that County. For all unclaimed funds payable where such last known address is located in Kent County or Sussex County, such notice shall be published at least once in a newspaper published at least weekly in the County in which unclaimed funds are payable. For all unclaimed funds payable to corporations as provided in §1180(b) of this title, notice shall be published in the county of the last known address of the corporation's registered agent in the manner provided in this section.
(c) Each such notice shall set forth in alphabetical order the names of the insureds or annuitants under policies or contracts where the last known address of the person appearing to be entitled to such funds is in the county of publication, together with:
(1) The amount reported due and the date it became payable;
(2) The name and last known address of each beneficiary or other person who, according to the company's reports, may have an interest in such unclaimed funds; and
(3) The name and address of the company.
The notice shall also state that such unclaimed funds will be paid by the company to persons establishing to its satisfaction before the following 1st day of December their right to receive the same and that not later than the following 20th day of December such unclaimed funds still remaining will be paid to the State Escheator who shall thereafter be liable for the payment thereof.
(d) Publication as required by this section may be waived in the discretion of the State Escheator where the amount involved in a particular policy or contract does not exceed $50. Title 12, Part III, Chap. 11, Subchap. III, Art. 4, §1183.
Payment for publication.
Any amounts paid by a life insurance company to newspapers for
any publication of names as required by this subchapter may be charged
against all unclaimed funds held or owing by such life insurance company
at the time of such publication. Title 12, Part III, Chap. 11, Subchap.
III, Art. 4, §1184.
Payment to State Escheator.
(a) All unclaimed funds contained in the report required to be filed by §1182 of this title, excepting those which have ceased to be unclaimed funds, less the amount paid for publication under §1184 of this title, shall be paid over to the State Escheator on or before the following 20th day of December.
(b) The State Escheator shall have the power, for cause shown, to extend for a period of not more than 1 year the time within which a life insurance company shall file any report and in such event the time for publication and payment required by this subchapter shall be extended for a like period. Title 12, Part III, Chap. 11, Subchap. III, Art. 4, §1185.
Custody of unclaimed funds in State; insurers indemnified.
Upon the payment of such unclaimed funds to the State Escheator,
the State shall assume, for the benefit of those entitled to receive the
same and for the safety of the money so paid, the custody of such unclaimed
funds, and the life insurance company making such payment shall immediately
and thereafter be relieved of and held harmless by the State from any and
all liability for any claim or claims which exist at such time with reference
to such unclaimed funds or which thereafter may be made or may come into
existence on account of or in respect to any such unclaimed funds. Title
12, Part III, Chap. 11, Subchap. III, Art. 4, §1186.
Reimbursement for claims paid by insurers.
Any life insurance company which has paid moneys to the State Escheator
pursuant to this subchapter may make payment to any person appearing to
such company, in accordance with its customary rules and regulations governing
the payment of claims, to be entitled thereto and upon proof of such payment
the State Escheator shall forthwith reimburse such company for such payment
out of the General Fund of the State. Title 12, Part III, Chap. 11, Subchap.
III, Art. 4, §1187.
Determination and review of claims.
(a) Any person claiming to be entitled to unclaimed funds paid to the State Escheator may file a claim at any time with such official. The State Escheator shall possess full and complete authority to accept or reject any such claim. If the Escheator rejects such claim or fails to act thereon within 90 days after receipt of such claim, the claimant may within 4 months thereafter apply for a hearing and determination of the claim by the Tax Appeal Board. The procedure before the Tax Appeal Board for such hearing shall be the same as that provided for by §329 of Title 30 and the Board shall have the same power to compel the attendance of witnesses and the production of evidence as is provided in § 330 of Title 30.
(b) Within 30 days after notice of a decision upon such hearing, the State Escheator or any claimant may appeal such decision to the Court of Chancery, upon notice to all parties to the proceedings before the Tax Appeal Board, and upon such other notice as the Court of Chancery may order.
(c) The Court of Chancery may make such rules as it may deem proper for the perfection, hearing and determination of such appeals. Title 12, Part III, Chap. 11, Subchap. III, Art. 4, §1188.
Payment of allowed claims.
Any claim which is accepted by the State Escheator or ordered to
be paid by the Escheator by the Tax Appeal Board or the Court of Chancery
shall be paid out of the General Fund. Title 12, Part III, Chap. 11, Subchap.
III, Art. 4, §1189.
Records required.
The State Escheator shall keep in the office a public record of
each payment of unclaimed funds received by the Escheator from any life
insurance company. Such record shall show in alphabetical order the name
and last known address of each insured or annuitant and of each beneficiary
or other person who, according to the company's reports, may have an interest
in such unclaimed funds and with respect to each policy or contract its
number, the name of the company and the amount due. Title 12, Part III,
Chap. 11, Subchap. III, Art. 4, §1190.
Other acts not applicable.
No other provisions of this Code relating to escheat or abandoned
or unclaimed funds shall apply to life insurance companies nor shall any
statute enacted after February 29, 1956, so apply unless specifically made
applicable by its terms. Title 12, Part III, Chap. 11, Subchap. III, Art.
4, §1191.
Penalties and interest.
(a) Any person failing to pay over any amounts or property as required by this subchapter or which underpays any amounts or property shall, if such failure or underpayment is due to negligence or intentional disregard of rules and regulations, pay as a penalty an amount equal to .5% per month of such underpayment up to a maximum of 10% of such amount.
(b) Any person which fails to file any report of amounts or property required by this subchapter or who underreports any amount or property shall pay as a penalty an amount equal to .5% per month of the amount underreported up to a maximum of 5% of such amount.
(c) The State Escheator for good cause shown before the due date of any report may extend the time for filing any report or making any payment under this subchapter and may waive all or any portion of the penalty imposed under subsection (b) of this section or interest imposed under subsection (d) of this section if the failure is due to reasonable cause and not wilful neglect.
(d) Interest at .5% per month on outstanding unpaid amounts, including penalty, shall accrue from the date the amounts or property were due under this subchapter until paid. Interest due in accordance with this subsection shall in no event exceed 50% of the amount required to be paid; provided, however, that penalties under subsection (a) or (b) of this section shall not be deemed to be interest for purposes of this subsection. Title 12, Part III, Chap. 11, Subchap. III, Art. 4, §1192.
Penalty for false oath.
The making of a wilful false oath in any report required under
this subchapter shall be perjury and punishable as such according to law.
Title 12, Part III, Chap. 11, Subchap. III, Art. 4, §1193.
Effect of failure to report.
Nothing in this subchapter shall prevent the State Escheator from
making claim to any fund, to which the State would otherwise be entitled,
because it has not been reported in accordance with this subchapter. Title
12, Part III, Chap. 11, Subchap. III, Art. 4, §1194.
Subchapter IV. Other Unclaimed Property.
Other property escheated.
Except as otherwise provided elsewhere in the Delaware Code all
property, as hereinafter defined and not otherwise subject to escheat in
accordance with this chapter, the title to which has failed and the power
of alienation suspended by reason of: (1) The death of the owner thereof,
intestate, leaving no known heirs-at-law; (2) the owner thereof having
disappeared or being missing from the owner's last known place of residence
for a continuous period of 5 years or more, leaving no known heirs-at-law;
or (3) the same having been abandoned by the owner thereof, as hereinafter
defined, shall descend to the State as an escheat in accordance with the
Constitution, the general laws of this State or this subchapter. Title
12, Part III, Chap. 11, Subchap. IV, Art. 4, §1197.
Definitions.
For purposes of this subchapter, the following definitions shall
apply:
(1) "Abandoned property" means property against which a full period of dormancy has run.
(2) "Appropriation" means the act of the State, through its duly constituted officers or agencies, in taking or accepting possession or custody of abandoned, unprotected, unclaimed or lost property as conservator thereof for later disposition by descent to the State as an escheat or redemption by the owner as provided in this subchapter.
(3) "Escheat" means the descent or devolution of property to the State under and by virtue of the Constitution of the State, the general laws of this State or this subchapter.
(4) "Escheatable property" means property which is subject to escheat to the State under and by virtue of the Constitution of the State, the general laws of this State or this subchapter.
(5) "Escheated property" means property which has descended to the State as an escheat.
(6) "Holder" means any person having possession, custody or control of the property of another person and includes a post office, a depository, a bailee, a trustee, a receiver or other liquidating officer, a fiduciary, a governmental department, institution or agency, a municipal corporation and the fiscal officers thereof, a public utility, service corporation and every other legal entity incorporated or created under the laws of this State or doing business in this State. For purposes of this subchapter, the issuer of any intangible ownership interest in a corporation, whether or not represented by a stock certificate, which is registered on stock transfer or other like books of the issuer or its agent, shall be deemed a holder of such property. This definition shall be construed as distinguishing the term "holder" of property from the term "owner" of property as hereinbefore defined and as excluding from the term "holder" any person holding or possessing property by virtue of title or ownership.
(7) "Owner," in addition to its commonly accepted meaning, shall be construed to particularly mean and include any person, as hereinbefore defined, having the legal or equitable title to property coming within the purview of this subchapter.
(8) "Period of dormancy" means the full and continuous period of 5 years, except a period of 15 years for traveler's checks, during which an owner has ceased, failed or neglected to exercise dominion or control over property or to assert a right of ownership or possession or to make presentment and demand for payment and satisfaction or to do any other act in relation to or concerning such property, providing that with respect to an intangible ownership interest in a corporation, whether or not represented by a stock certificate, the period of dormancy means a period of 5 years during which: (1) The owner has not claimed a dividend, distribution or other sum with respect to such interest; (2) the owner has not communicated in writing with the holder concerning such property or otherwise communicated with the holder concerning such property which communication is evidenced by a writing or other record prepared by the holder or its employee in the ordinary course of business; and (3) at the end of which the holder does not know the current location of the owner of such property. A full period of dormancy shall be deemed to have run with respect to any dividends or other distributions held for or owing to an owner at the time a period of dormancy shall have run with respect to the intangible ownership interest in a corporation to which such dividend or other distribution attaches. For good cause shown, and upon notice to the State Escheator, the Court of Chancery may, with respect to property over which the court has otherwise assumed jurisdiction, extend the period of dormancy to a specific date by which an owner may exercise a right, make a demand or file a claim, provided each extension is set forth in a separate order of the court referring specifically to this section, and each extension is no longer than 3 years, provided further there shall be no more than 2 extensions under this subsection. Except as provided in § 1210 of this title, the period of dormancy shall not commence to run with respect to which claims, demands or other property held by a holder pursuant to a written agreement which contemplates that there shall be a specific period of inactivity, until the expiration of the contemplated period of inactivity. This definition shall be construed as excluding any act or doing of a holder of abandoned property not done at the express request or authorization of the owner. Notwithstanding the foregoing, the "period of dormancy" with regard to gift certificates shall be the shorter of: (a) Five years, or (b) the expiration period, if any, of the gift certificate less 1 day. In the event the period of dormancy is determined by reference to the expiration period of the gift certificate, the rights of the Escheator shall attach at the time provided in item (b) of this subdivision, but the issuer may continue to hold the property and may report and pay over such property as if the period of dormancy were 5 years.
