SF 533

as introduced - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to uniform acts; unclaimed property; enacting 
  1.3             the uniform unclaimed property act of 1995; amending 
  1.4             Minnesota Statutes 1996, sections 16A.45, subdivisions 
  1.5             1 and 4; 16A.6701, subdivision 1; 80C.03; 149.12; 
  1.6             198.231; 276.19, subdivision 4; 308A.711, subdivisions 
  1.7             1 and 2; 356.65, subdivision 2; and 624.68; proposing 
  1.8             coding for new law in Minnesota Statutes, chapter 345; 
  1.9             repealing Minnesota Statutes 1996, sections 345.31; 
  1.10            345.32; 345.33; 345.34; 345.35; 345.36; 345.37; 
  1.11            345.38; 345.381; 345.39; 345.40; 345.41; 345.42; 
  1.12            345.43; 345.44; 345.45; 345.46; 345.47; 345.48; 
  1.13            345.485; 345.49; 345.50; 345.51; 345.515; 345.52; 
  1.14            345.525; 345.53; 345.54; 345.55; 345.56; 345.57; 
  1.15            345.58; 345.59; and 345.60. 
  1.16  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.17                             ARTICLE 1 
  1.18                         UNCLAIMED PROPERTY 
  1.19     Section 1.  [345.61] [DEFINITIONS.] 
  1.20     Subdivision 1.  [SCOPE.] For the purposes of sections 
  1.21  345.61 to 345.90, the terms defined in this section have the 
  1.22  meanings given them. 
  1.23     Subd. 2.  [ADMINISTRATOR.] "Administrator" means the 
  1.24  commissioner of commerce. 
  1.25     Subd. 3.  [APPARENT OWNER.] "Apparent owner" means a person 
  1.26  whose name appears on the records of a holder as the person 
  1.27  entitled to property held, issued, or owing by the holder. 
  1.28     Subd. 4.  [BUSINESS ASSOCIATION.] "Business association" 
  1.29  means a corporation, joint stock company, investment company, 
  1.30  partnership, unincorporated association, joint venture, limited 
  2.1   liability company, business trust, trust company, safe deposit 
  2.2   company, financial organization, insurance company, mutual fund, 
  2.3   utility, or other business entity consisting of one or more 
  2.4   persons, whether or not for profit. 
  2.5      Subd. 5.  [DOMICILE.] "Domicile" means the state of 
  2.6   incorporation of a corporation and the state of the principal 
  2.7   place of business of a holder other than a corporation. 
  2.8      Subd. 6.  [FINANCIAL ORGANIZATION.] "Financial organization"
  2.9   means a savings association; savings bank or industrial loan and 
  2.10  thrift company; banking organization; or credit union. 
  2.11     Subd. 7.  [HOLDER.] "Holder" means a person obligated to 
  2.12  hold for the account of, or deliver or pay to, the owner 
  2.13  property that is subject to sections 345.61 to 345.90. 
  2.14     Subd. 8.  [INSURANCE COMPANY.] "Insurance company" means an 
  2.15  association, corporation, or fraternal or mutual benefit 
  2.16  organization, whether or not for profit, engaged in the business 
  2.17  of providing life endowments, annuities, or insurance, including 
  2.18  accident, burial, casualty, credit life, contract performance, 
  2.19  dental, disability, fidelity, fire, health, hospitalization, 
  2.20  illness, life, malpractice, marine, mortgage, surety, wage 
  2.21  protection, and workers' compensation insurance. 
  2.22     Subd. 9.  [MINERAL.] "Mineral" means gas; oil; coal; other 
  2.23  gaseous, liquid, and solid hydrocarbons; oil shale; cement 
  2.24  material; sand and gravel; road material; building stone; 
  2.25  chemical raw material; gemstone; fissionable and nonfissionable 
  2.26  ores; colloidal and other clay; steam and other geothermal 
  2.27  resource; or any other substance defined as a mineral by the law 
  2.28  of this state. 
  2.29     Subd. 10.  [MINERAL PROCEEDS.] "Mineral proceeds" means 
  2.30  amounts payable for the extraction, production, or sale of 
  2.31  minerals, or, upon the abandonment of those payments, all 
  2.32  payments that become payable thereafter.  The term includes 
  2.33  amounts payable: 
  2.34     (1) for the acquisition and retention of a mineral lease, 
  2.35  including bonuses, royalties, compensatory royalties, shut-in 
  2.36  royalties, minimum royalties, and delay rentals; 
  3.1      (2) for the extraction, production, or sale of minerals, 
  3.2   including net revenue interests, royalties, overriding 
  3.3   royalties, extraction payments, and production payments; and 
  3.4      (3) under an agreement or option, including a joint 
  3.5   operating agreement, unit agreement, pooling agreement, and 
  3.6   farm-out agreement. 
  3.7      Subd. 11.  [MONEY ORDER.] "Money order" includes an express 
  3.8   money order and a personal money order, on which the remitter is 
  3.9   the purchaser.  The term does not include a bank money order or 
  3.10  any other instrument sold by a financial organization if the 
  3.11  seller has obtained the name and address of the payee. 
  3.12     Subd. 12.  [OWNER.] "Owner" means a person who has a legal 
  3.13  or equitable interest in property subject to sections 345.61 to 
  3.14  345.90 or the person's legal representative.  The term includes 
  3.15  a depositor in the case of a deposit, a beneficiary in the case 
  3.16  of a trust other than a deposit in trust, and a creditor, 
  3.17  claimant, or payee in the case of other property. 
  3.18     Subd. 13.  [PERSON.] "Person" means an individual, business 
  3.19  association, financial organization, estate, trust, government, 
  3.20  governmental subdivision, agency, or instrumentality, or any 
  3.21  other legal or commercial entity. 
  3.22     Subd. 14.  [PROPERTY.] "Property" means tangible property 
  3.23  described in section 345.63 or a fixed and certain interest in 
  3.24  intangible property that is held, issued, or owed in the course 
  3.25  of a holder's business, or by a government, governmental 
  3.26  subdivision, agency, or instrumentality, and all income or 
  3.27  increments therefrom.  There term includes property that is 
  3.28  referred to as or evidenced by: 
  3.29     (1) money, a check, draft, deposit, interest, or dividend; 
  3.30     (2) credit balance, customer's overpayment, gift 
  3.31  certificate, security deposit, refund, credit memorandum, unpaid 
  3.32  wage, unused ticket, mineral proceeds, or unidentified 
  3.33  remittance; 
  3.34     (3) stock or other evidence of ownership of an interest in 
  3.35  a business association or financial organization; 
  3.36     (4) a bond, debenture, note, or other evidence of 
  4.1   indebtedness; 
  4.2      (5) money deposited to redeem stocks, bonds, coupons, or 
  4.3   other securities or to make distributions; 
  4.4      (6) an amount due and payable under the terms of an annuity 
  4.5   or insurance policy, including policies providing life 
  4.6   insurance, property and casualty insurance, workers' 
  4.7   compensation insurance, or health and disability insurance; and 
  4.8      (7) an amount distributable from a trust or custodial fund 
  4.9   established under a plan to provide health, welfare, pension, 
  4.10  vacation, severance, retirement, death, stock purchase, profit 
  4.11  sharing, employee savings, supplemental unemployment insurance, 
  4.12  or similar benefits. 
  4.13     Subd. 15.  [RECORD.] "Record" means information that is 
  4.14  inscribed on a tangible medium or that is stored in an 
  4.15  electronic or other medium and is retrievable in perceivable 
  4.16  form. 
  4.17     Subd. 16.  [STATE.] "State" means a state of the United 
  4.18  States, the District of Columbia, the Commonwealth of Puerto 
  4.19  Rico, or any territory or insular possession subject to the 
  4.20  jurisdiction of the United States. 
  4.21     Subd. 17.  [UTILITY.] "Utility" means a public utility as 
  4.22  defined by section 216B.02, subdivision 4.  
  4.23     Sec. 2.  [345.62] [PRESUMPTIONS OF ABANDONMENT.] 
  4.24     (a) Property is presumed abandoned if it is unclaimed by 
  4.25  the apparent owner during the time set forth below for the 
  4.26  particular property: 
  4.27     (1) traveler's check, 15 years after issuance; 
  4.28     (2) money order, seven years after issuance; 
  4.29     (3) stock or other equity interest in a business 
  4.30  association or financial organization, including a security 
  4.31  entitlement under the Uniform Commercial Code - Investment 
  4.32  Securities, five years after the earlier of (i) the date of the 
  4.33  most recent dividend, stock split, or other distribution 
  4.34  unclaimed by the apparent owner, or (ii) the date of the second 
  4.35  mailing of a statement of account or other notification or 
  4.36  communication that was returned as undeliverable or after the 
  5.1   holder discontinued mailings, notifications, or communications 
  5.2   to the apparent owner; 
  5.3      (4) debt of a business association or financial 
  5.4   organization, other than a bearer bond or an original issue 
  5.5   discount bond, five years after the date of the most recent 
  5.6   interest payment unclaimed by the apparent owner; 
  5.7      (5) a demand, savings, or time deposit, including a deposit 
  5.8   that is automatically renewable, five years after the earlier of 
  5.9   maturity or the date of the last indication by the owner of 
  5.10  interest in the property; but a deposit that is automatically 
  5.11  renewable is deemed matured for purposes of this section upon 
  5.12  its initial date of maturity, unless the owner has consented to 
  5.13  a renewal at or about the time of the renewal and the consent is 
  5.14  in writing or is evidenced by a memorandum or other record on 
  5.15  file with the holder; 
  5.16     (6) money or credits owed to a customer as a result of a 
  5.17  retail business transaction, three years after the obligation 
  5.18  accrued; 
  5.19     (7) gift certificate, three years after December 31 of the 
  5.20  year in which the certificate was sold, but if redeemable in 
  5.21  merchandise only, the amount abandoned is deemed to be 60 
  5.22  percent of the certificate's face value; 
  5.23     (8) amount owed by an insurer on a life or endowment 
  5.24  insurance policy or an annuity that has matured or terminated, 
  5.25  three years after the obligation to pay arose or, in the case of 
  5.26  a policy or annuity payable upon proof of death, three years 
  5.27  after the insured has attained, or would have attained if 
  5.28  living, the limiting age under the mortality table on which the 
  5.29  reserve is based; 
  5.30     (9) property distributable by a business association or 
  5.31  financial organization in a course of dissolution, one year 
  5.32  after the property becomes distributable; 
  5.33     (10) property received by a court as proceeds of a class 
  5.34  action, and not distributed pursuant to the judgment, one year 
  5.35  after the distribution date; 
  5.36     (11) property held by a court, government, governmental 
  6.1   subdivision, agency, or instrumentality, one year after the 
  6.2   property becomes distributable; 
  6.3      (12) wages or other compensation for personal services, one 
  6.4   year after the compensation becomes payable; 
  6.5      (13) deposit or refund owed to a subscriber by a utility, 
  6.6   one year after the deposit or refund becomes payable; 
  6.7      (14) property in an individual retirement account, defined 
  6.8   benefit plan, or other account or plan that is qualified for tax 
  6.9   deferral under the income tax laws of the United States, three 
  6.10  years after the earliest of the date of the distribution or 
  6.11  attempted distribution of the property, the date of the required 
  6.12  distribution as stated in the plan or trust agreement governing 
  6.13  the plan, or the date, if determinable by the holder, specified 
  6.14  in the income tax laws of the United States by which 
  6.15  distribution of the property must begin in order to avoid a tax 
  6.16  penalty; and 
  6.17     (15) all other property, five years after the owner's right 
  6.18  to demand the property or after the obligation to pay or 
  6.19  distribute the property arises, whichever first occurs. 
  6.20     (b) At the time that an interest is presumed abandoned 
  6.21  under paragraph (a), any other property right accrued or 
  6.22  accruing to the owner as a result of the interest, and not 
  6.23  previously presumed abandoned, is also presumed abandoned. 
  6.24     (c) Property is unclaimed if, for the applicable period set 
  6.25  forth in paragraph (a), the apparent owner has not communicated 
  6.26  in writing or by other means reflected in a contemporaneous 
  6.27  record prepared by or on behalf of the holder, with the holder 
  6.28  concerning the property or the account in which the property is 
  6.29  held, and has not otherwise indicated an interest in the 
  6.30  property.  A communication with an owner by a person other than 
  6.31  the holder or its representative who has not in writing 
  6.32  identified the property to the owner is not an indication of 
  6.33  interest in the property by the owner. 
  6.34     (d) An indication of an owner's interest in property 
  6.35  includes: 
  6.36     (1) the presentment of a check or other instrument of 
  7.1   payment of a dividend or other distribution made with respect to 
  7.2   an account or underlying stock or other interest in a business 
  7.3   association or financial organization or, in the case of a 
  7.4   distribution made by electronic or similar means, evidence that 
  7.5   the distribution has been received; 
  7.6      (2) owner-directed activity in the account in which the 
  7.7   property is held, including a direction by the owner to 
  7.8   increase, decrease, or change the amount or type of property 
  7.9   held in the account; 
  7.10     (3) the making of a deposit to or withdrawal from a bank 
  7.11  account; and 
  7.12     (4) the payment of a premium with respect to a property 
  7.13  interest in an insurance policy; but the application of an 
  7.14  automatic premium loan provision or other nonforfeiture 
  7.15  provision contained in an insurance policy does not prevent a 
  7.16  policy from maturing or terminating if the insured has died or 
  7.17  the insured or the beneficiary of the policy has otherwise 
  7.18  become entitled to the proceeds before the depletion of the cash 
  7.19  surrender value of a policy by the application of those 
  7.20  provisions. 
  7.21     (e) Property is payable or distributable for purposes of 
  7.22  sections 345.61 to 345.90 notwithstanding the owner's failure to 
  7.23  make demand or present an instrument or document otherwise 
  7.24  required to obtain payment. 
  7.25     Sec. 3.  [345.63] [CONTENTS OF SAFE DEPOSIT BOX OR OTHER 
  7.26  SAFEKEEPING DEPOSITORY.] 
  7.27     Tangible property held in a safe deposit box or other 
  7.28  safekeeping depository in this state in the ordinary course of 
  7.29  the holder's business and proceeds resulting from the sale of 
  7.30  the property permitted by other law are presumed abandoned if 
  7.31  the property remains unclaimed by the owner for more than five 
  7.32  years after expiration of the lease or rental period on the box 
  7.33  or other depository. 
  7.34     Sec. 4.  [345.64] [RULES FOR TAKING CUSTODY.] 
  7.35     Except as otherwise provided in sections 345.61 to 345.90 
  7.36  or by other statute of this state, property that is presumed 
  8.1   abandoned, whether located in this or another state, is subject 
  8.2   to the custody of this state if: 
  8.3      (1) the last known address of the apparent owner, as shown 
  8.4   on the records of the holder, is in this state; 
  8.5      (2) the records of the holder do not reflect the identity 
  8.6   of the person entitled to the property and it is established 
  8.7   that the last known address of the person entitled to the 
  8.8   property is in this state; 
  8.9      (3) the records of the holder do not reflect the last known 
  8.10  address of the apparent owner and it is established that: 
  8.11     (i) the last known address of the person entitled to the 
  8.12  property is in this state; or 
  8.13     (ii) the holder is domiciled in this state or is a 
  8.14  government or governmental subdivision, agency, or 
  8.15  instrumentality of this state and has not previously paid or 
  8.16  delivered the property to the state of the last known address of 
  8.17  the apparent owner or other person entitled to the property; 
  8.18     (4) the last known address of the apparent owner, as shown 
  8.19  on the records of the holder, is in a state that does not 
  8.20  provide for the escheat or custodial taking of the property and 
  8.21  the holder is domiciled in this state or is a government or 
  8.22  governmental subdivision, agency, or instrumentality of this 
  8.23  state; 
  8.24     (5) the last known address of the apparent owner, as shown 
  8.25  on the records of the holder, is in a foreign country and the 
  8.26  holder is domiciled in this state or is a government or 
  8.27  governmental subdivision, agency, or instrumentality of this 
  8.28  state; 
  8.29     (6) the transaction out of which the property arose 
  8.30  occurred in this state, the holder is domiciled in a state that 
  8.31  does not provide for the escheat or custodial taking of the 
  8.32  property, and the last known address of the apparent owner or 
  8.33  other person entitled to the property is unknown or is in a 
  8.34  state that does not provide for the escheat or custodial taking 
  8.35  of the property; or 
  8.36     (7) the property is a traveler's check or money order 
  9.1   purchased in this state, or the issuer of the traveler's check 
  9.2   or money order has its principal place of business in this state 
  9.3   and the issuer's records show that the instrument was purchased 
  9.4   in a state that does not provide for the escheat or custodial 
  9.5   taking of the property, or do not show the state in which the 
  9.6   instrument was purchased. 
  9.7      Sec. 5.  [345.65] [DORMANCY CHARGE.] 
  9.8      A holder may deduct from property presumed abandoned a 
  9.9   charge imposed by reason of the owner's failure to claim the 
  9.10  property within a specified time only if there is a valid and 
  9.11  enforceable written contract between the holder and the owner 
  9.12  under which the holder may impose the charge and the holder 
  9.13  regularly imposes the charge, which is not regularly reversed or 
  9.14  otherwise canceled.  The amount of the deduction is limited to 
  9.15  an amount that is not unconscionable. 
  9.16     Sec. 6.  [345.66] [BURDEN OF PROOF AS TO PROPERTY EVIDENCED 
  9.17  BY RECORD OF CHECK OR DRAFT.] 
  9.18     A record of the issuance of a check, draft, or similar 
  9.19  instrument is prima facie evidence of an obligation.  In 
  9.20  claiming property from a holder who is also the issuer, the 
  9.21  administrator's burden of proof as to the existence and amount 
  9.22  of the property and its abandonment is satisfied by showing 
  9.23  issuance of the instrument and passage of the requisite period 
  9.24  of abandonment.  Defenses of payment, satisfaction, discharge, 
  9.25  and want of consideration are affirmative defenses that must be 
  9.26  established by the holder. 
  9.27     Sec. 7.  [345.67] [REPORT OF ABANDONED PROPERTY.] 
  9.28     (a) A holder of property presumed abandoned shall make a 
  9.29  report to the administrator concerning the property. 
  9.30     (b) The report must be verified and must contain: 
  9.31     (1) a description of the property; 
  9.32     (2) except with respect to a traveler's check or money 
  9.33  order, the name, if known, and last known address, if any, and 
  9.34  the social security number or taxpayer identification number, if 
  9.35  readily ascertainable, of the apparent owner of property of the 
  9.36  value of $50 or more; 
 10.1      (3) an aggregated amount of items valued under $50 each; 
 10.2      (4) in the case of an amount of $50 or more held or owing 
 10.3   under an annuity or a life or endowment insurance policy, the 
 10.4   full name and last known address of the annuitant or insured and 
 10.5   of the beneficiary; 
 10.6      (5) in the case of property held in a safe deposit box or 
 10.7   other safekeeping depository, an indication of the place where 
 10.8   it is held and where it may be inspected by the administrator, 
 10.9   and any amounts owing to the holder; 
 10.10     (6) the date, if any, on which the property became payable, 
 10.11  demandable, or returnable, and the date of the last transaction 
 10.12  with the apparent owner with respect to the property; and 
 10.13     (7) other information that the administrator by rule 
 10.14  prescribes as necessary for the administration of sections 
 10.15  345.61 to 345.90. 
 10.16     (c) If a holder of property presumed abandoned is a 
 10.17  successor to another person who previously held the property for 
 10.18  the apparent owner or the holder has changed its name while 
 10.19  holding the property, the holder shall file with the report its 
 10.20  former names, if any, and the known names and addresses of all 
 10.21  previous holders of the property. 
 10.22     (d) The report must be filed before November 1 of each year 
 10.23  and cover the 12 months next preceding July 1 of that year, but 
 10.24  a report with respect to a life insurance company must be filed 
 10.25  before May 1 of each year for the calendar year next preceding. 
 10.26     (e) The holder of property presumed abandoned shall send 
 10.27  written notice to the apparent owner, not more than 120 days or 
 10.28  less than 60 days before filing the report, stating that the 
 10.29  holder is in possession of property subject to sections 345.61 
 10.30  to 345.90, if: 
 10.31     (1) the holder has in its records an address for the 
 10.32  apparent owner which the holder's records do not disclose to be 
 10.33  inaccurate; 
 10.34     (2) the claim of the apparent owner is not barred by a 
 10.35  statute of limitations; and 
 10.36     (3) the value of the property is $50 or more. 
 11.1      (f) Before the date for filing the report, the holder of 
 11.2   property presumed abandoned may request the administrator to 
 11.3   extend the time for filing the report.  The administrator may 
 11.4   grant the extension for good cause.  The holder, upon receipt of 
 11.5   the extension, may make an interim payment on the amount the 
 11.6   holder estimates will ultimately be due, which terminates the 
 11.7   accrual of additional interest on the amount paid.  
 11.8      (g) The holder of property presumed abandoned shall file 
 11.9   with the report an affidavit stating that the holder has 
 11.10  complied with paragraph (e). 
 11.11     Sec. 8.  [345.68] [PAYMENT OR DELIVERY OF ABANDONED 
 11.12  PROPERTY.] 
 11.13     (a) Except for property held in a safe deposit box or other 
 11.14  safekeeping depository, upon filing the report required by 
 11.15  section 345.67, the holder of property presumed abandoned shall 
 11.16  pay, deliver, or cause to be paid or delivered to the 
 11.17  administrator the property described in the report as unclaimed, 
 11.18  but if the property is an automatically renewable deposit, and a 
 11.19  penalty or forfeiture in the payment of interest would result, 
 11.20  the time for compliance is extended until a penalty or 
 11.21  forfeiture would no longer result.  Tangible property held in a 
 11.22  safe deposit box or other safekeeping depository may not be 
 11.23  delivered to the administrator until 120 days after filing the 
 11.24  report required by section 345.67. 
 11.25     (b) If the property reported to the administrator is a 
 11.26  security or security entitlement under the Uniform Commercial 
 11.27  Code - Investment Securities, the administrator is an 
 11.28  appropriate person to make an endorsement, instruction, or 
 11.29  entitlement order on behalf of the apparent owner to invoke the 
 11.30  duty of the issuer or its transfer agent or the securities 
 11.31  intermediary to transfer or dispose of the security or the 
 11.32  security entitlement in accordance with the Uniform Commercial 
 11.33  Code - Investment Securities. 
 11.34     (c) If the holder of property reported to the administrator 
 11.35  is the issuer of a certificated security, the administrator has 
 11.36  the right to obtain a replacement certificate pursuant to 
 12.1   section 336.8-408, but an indemnity bond is not required. 
 12.2      (d) An issuer, the holder, and any transfer agent or other 
 12.3   person acting pursuant to the instructions of and on behalf of 
 12.4   the issuer or holder in accordance with this section is not 
 12.5   liable to the apparent owner and must be indemnified against 
 12.6   claims of any person in accordance with section 345.70. 
 12.7      Sec. 9.  [345.69] [NOTICE AND PUBLICATION OF LISTS OF 
 12.8   ABANDONED PROPERTY.] 
 12.9      (a) The administrator shall publish a notice not later than 
 12.10  November 30 of the year next following the year in which 
 12.11  abandoned property has been paid or delivered to the 
 12.12  administrator.  The notice must be published in a newspaper of 
 12.13  general circulation in the county of this state in which is 
 12.14  located the last known address of any person named in the 
 12.15  notice.  If a holder does not report an address for the apparent 
 12.16  owner, or the address is outside this state, the notice must be 
 12.17  published in the county in which the holder has its principal 
 12.18  place of business within this state or another county that the 
 12.19  administrator reasonably selects.  The advertisement must be in 
 12.20  a form that, in the judgment of the administrator, is likely to 
 12.21  attract the attention of the apparent owner of the unclaimed 
 12.22  property.  The form must contain: 
 12.23     (1) the name of each person appearing to be the owner of 
 12.24  the property, as set forth in the report filed by the holder; 
 12.25     (2) the last known address or location of each person 
 12.26  appearing to be the owner of the property, if an address or 
 12.27  location is set forth in the report filed by the holder; 
 12.28     (3) a statement explaining that property of the owner is 
 12.29  presumed to be abandoned and has been taken into the protective 
 12.30  custody of the administrator; and 
 12.31     (4) a statement that information about the property and its 
 12.32  return to the owner is available to a person having a legal or 
 12.33  beneficial interest in the property, upon request to the 
 12.34  administrator. 
 12.35     (b) The administrator is not required to advertise the name 
 12.36  and address or location of an owner of property having a total 
 13.1   value less than $50, or information concerning a traveler's 
 13.2   check, money order, or similar instrument. 
 13.3      Sec. 10.  [345.70] [CUSTODY BY STATE; RECOVERY BY HOLDER; 
 13.4   DEFENSE OF HOLDER.] 
 13.5      (a) In this section, payment or delivery is made in "good 
 13.6   faith" if: 
 13.7      (1) payment or delivery was made in a reasonable attempt to 
 13.8   comply with sections 345.61 to 345.90; 
 13.9      (2) the holder was not then in breach of a fiduciary 
 13.10  obligation with respect to the property and had a reasonable 
 13.11  basis for believing, based on the facts then known, that the 
 13.12  property was presumed abandoned; and 
 13.13     (3) there is no showing that the records under which the 
 13.14  payment or delivery was made did not meet reasonable commercial 
 13.15  standards of practice. 
 13.16     (b) Upon payment or delivery of property to the 
 13.17  administrator, the state assumes custody and responsibility for 
 13.18  the safekeeping of the property.  A holder who pays or delivers 
 13.19  property to the administrator in good faith is relieved of all 
 13.20  liability arising thereafter with respect to the property.  
 13.21     (c) A holder who has paid money to the administrator 
 13.22  pursuant to sections 345.61 to 345.90 may subsequently make 
 13.23  payment to a person reasonably appearing to the holder to be 
 13.24  entitled to payment.  Upon a filing by the holder of proof of 
 13.25  payment and proof that the payee was entitled to the payment, 
 13.26  the administrator shall promptly reimburse the holder for the 
 13.27  payment without imposing a fee or other charge.  If 
 13.28  reimbursement is sought for a payment made on a negotiable 
 13.29  instrument, including a traveler's check or money order, the 
 13.30  holder must be reimbursed upon filing proof that the instrument 
 13.31  was duly presented and that payment was made to a person who 
 13.32  reasonably appeared to be entitled to payment.  The holder must 
 13.33  be reimbursed for payment made even if the payment was made to a 
 13.34  person whose claim was barred under section 345.79, paragraph 
 13.35  (a). 
 13.36     (d) A holder who has delivered property other than money to 
 14.1   the administrator pursuant to sections 345.61 to 345.90 may 
 14.2   reclaim the property if it is still in the possession of the 
 14.3   administrator, without paying any fee or other charge, upon 
 14.4   filing proof that the apparent owner has claimed the property 
 14.5   from the holder.  
 14.6      (e) The administrator may accept a holder's affidavit as 
 14.7   sufficient proof of the holder's right to recover money and 
 14.8   property under this section. 
 14.9      (f) If a holder pays or delivers property to the 
 14.10  administrator in good faith and thereafter another person claims 
 14.11  the property from the holder or another state claims the money 
 14.12  or property under its laws relating to escheat or abandoned or 
 14.13  unclaimed property, the administrator, upon written notice of 
 14.14  the claim, shall defend the holder against the claim and 
 14.15  indemnify the holder against any liability on the claim 
 14.16  resulting from payment or delivery of the property to the 
 14.17  administrator. 
 14.18     (g) Property removed from a safe deposit box or other 
 14.19  safekeeping depository is received by the administrator subject 
 14.20  to the holder's right to be reimbursed for the cost of the 
 14.21  opening and to any valid lien or contract providing for the 
 14.22  holder to be reimbursed for unpaid rent or storage charges.  The 
 14.23  administrator shall reimburse the holder out of the proceeds 
 14.24  remaining after deducting the expense incurred by the 
 14.25  administrator in selling the property. 
 14.26     Sec. 11.  [345.71] [CREDITING OF DIVIDENDS, INTEREST, AND 
 14.27  INCREMENTS TO OWNER'S ACCOUNT.] 
 14.28     If property other than money is delivered to the 
 14.29  administrator under sections 345.61 to 345.90, the owner is 
 14.30  entitled to receive from the administrator any income or gain 
 14.31  realized or accruing on the property at or before liquidation or 
 14.32  conversion of the property into money.  If the property was an 
 14.33  interest bearing demand, savings, or time deposit, including a 
 14.34  deposit that is automatically renewable, the administrator shall 
 14.35  pay interest at a rate of six percent a year or any lesser rate 
 14.36  the property earned while in the possession of the holder.  
 15.1   Interest begins to accrue when the property is delivered to the 
 15.2   administrator and ceases on the earlier of the expiration of ten 
 15.3   years after delivery or the date on which payment is made to the 
 15.4   owner.  Interest on interest bearing property is not payable for 
 15.5   any period before the effective date of sections 345.61 to 
 15.6   345.90, unless authorized by law superseded by sections 345.61 
 15.7   to 345.90. 
 15.8      Sec. 12.  [345.72] [PUBLIC SALE OF ABANDONED PROPERTY.] 
 15.9      (a) Except as otherwise provided in this section, the 
 15.10  administrator, within three years after the receipt of abandoned 
 15.11  property, shall sell it to the highest bidder at public sale at 
 15.12  a location in the state which in the judgment of the 
 15.13  administrator affords the most favorable market for the 
 15.14  property.  The administrator may decline the highest bid and 
 15.15  reoffer the property for sale if the administrator considers the 
 15.16  bid to be insufficient.  The administrator need not offer the 
 15.17  property for sale if the administrator considers that the 
 15.18  probable cost of the sale will exceed the proceeds of the sale.  
 15.19  A sale held under this section must be preceded by a single 
 15.20  publication of notice, at least three weeks before the sale, in 
 15.21  a newspaper of general circulation in the county in which the 
 15.22  property is to be sold. 
 15.23     (b) Securities listed on an established stock exchange must 
 15.24  be sold at prices prevailing on the exchange at the time of 
 15.25  sale.  Other securities may be sold over the counter at prices 
 15.26  prevailing at the time of the sale or by any reasonable method 
 15.27  selected by the administrator.  If securities are sold by the 
 15.28  administrator before the expiration of three years after their 
 15.29  delivery to the administrator, a person making a claim under 
 15.30  sections 345.61 to 345.90 before the end of the three-year 
 15.31  period is entitled to the proceeds of the sale of the securities 
 15.32  or the market value of the securities at the time the claim is 
 15.33  made, whichever is greater, plus dividends, interest, and other 
 15.34  increments thereon up to the time the claim is made, less any 
 15.35  deduction for expenses of the sale.  A person making a claim 
 15.36  under sections 345.61 to 345.90 after the expiration of the 
 16.1   three-year period is entitled to receive the securities 
 16.2   delivered to the administrator by the holder, if they still 
 16.3   remain in the custody of the administrator, or the net proceeds 
 16.4   received from the sale, and is not entitled to receive any 
 16.5   appreciation in the value of the property occurring after 
 16.6   delivery to the administrator, except in a case of intentional 
 16.7   misconduct or malfeasance by the administrator. 
 16.8      (c) A purchaser of property at a sale conducted by the 
 16.9   administrator pursuant to sections 345.61 to 345.90 takes the 
 16.10  property free of all claims of the owner or previous holder and 
 16.11  of all persons claiming through or under them.  The 
 16.12  administrator shall execute all documents necessary to complete 
 16.13  the transfer of ownership. 
 16.14     Sec. 13.  [345.73] [DEPOSIT OF FUNDS.] 
 16.15     (a) Except as otherwise provided by this section, the 
 16.16  administrator shall promptly deposit in the general fund of this 
 16.17  state all funds received under sections 345.61 to 345.90, 
 16.18  including the proceeds from the sale of abandoned property under 
 16.19  section 345.72.  The administrator shall retain in a separate 
 16.20  trust fund at least $100,000 from which the administrator shall 
 16.21  pay claims duly allowed.  The administrator shall record the 
 16.22  name and last known address of each person appearing from the 
 16.23  holders' reports to be entitled to the property and the name and 
 16.24  last known address of each insured person or annuitant and 
 16.25  beneficiary and with respect to each policy or annuity listed in 
 16.26  the report of an insurance company, its number, the name of the 
 16.27  company, and the amount due. 
 16.28     (b) Before making a deposit to the credit of the general 
 16.29  fund, the administrator may deduct: 
 16.30     (1) expenses of the sale of abandoned property; 
 16.31     (2) costs of mailing and publication in connection with 
 16.32  abandoned property; 
 16.33     (3) reasonable service charges; and 
 16.34     (4) expenses incurred in examining records of holders of 
 16.35  property and in collecting the property from those holders. 
 16.36     Sec. 14.  [345.74] [CLAIM OF ANOTHER STATE TO RECOVER 
 17.1   PROPERTY.] 
 17.2      (a) After property has been paid or delivered to the 
 17.3   administrator under sections 345.61 to 345.90, another state may 
 17.4   recover the property if: 
 17.5      (1) the property was paid or delivered to the custody of 
 17.6   this state because the records of the holder did not reflect a 
 17.7   last known location of the apparent owner within the borders of 
 17.8   the other state and the other state establishes that the 
 17.9   apparent owner or other person entitled to the property was last 
 17.10  known to be located within the borders of that state and under 
 17.11  the laws of that state the property has escheated or become 
 17.12  subject to a claim of abandonment by that state; 
 17.13     (2) the property was paid or delivered to the custody of 
 17.14  this state because the laws of the other state did not provide 
 17.15  for the escheat or custodial taking of the property, and under 
 17.16  the laws of that state subsequently enacted the property has 
 17.17  escheated or become subject to a claim of abandonment by that 
 17.18  state; 
 17.19     (3) the records of the holder were erroneous in that they 
 17.20  did not accurately identify the owner of the property and the 
 17.21  last known location of the owner within the borders of another 
 17.22  state and under the laws of that state the property has 
 17.23  escheated or become subject to a claim of abandonment by that 
 17.24  state; 
 17.25     (4) the property was subjected to custody by this state 
 17.26  under section 345.64, clause (6), and under the laws of the 
 17.27  state of domicile of the holder the property has escheated or 
 17.28  become subject to a claim of abandonment by that state; or 
 17.29     (5) the property is a sum payable on a traveler's check, 
 17.30  money order, or similar instrument that was purchased in the 
 17.31  other state and delivered into the custody of this state under 
 17.32  section 345.64, clause (7), and under the laws of the other 
 17.33  state the property has escheated or become subject to a claim of 
 17.34  abandonment by that state. 
 17.35     (b) A claim of another state to recover escheated or 
 17.36  abandoned property must be presented in a form prescribed by the 
 18.1   administrator, who shall decide the claim within 90 days after 
 18.2   it is presented.  The administrator shall allow the claim upon 
 18.3   determining that the other state is entitled to the abandoned 
 18.4   property under paragraph (a). 
 18.5      (c) The administrator shall require another state, before 
 18.6   recovering property under this section, to agree to indemnify 
 18.7   this state and its officers and employees against any liability 
 18.8   on a claim to the property. 
 18.9      Sec. 15.  [345.75] [FILING CLAIM WITH ADMINISTRATOR; 
 18.10  HANDLING OF CLAIMS BY ADMINISTRATOR.] 
 18.11     (a) A person, excluding another state, claiming property 
 18.12  paid or delivered to the administrator may file a claim on a 
 18.13  form prescribed by the administrator and verified by the 
 18.14  claimant. 
 18.15     (b) Within 90 days after a claim is filed, the 
 18.16  administrator shall allow or deny the claim and give written 
 18.17  notice of the decision to the claimant.  If the claim is denied, 
 18.18  the administrator shall inform the claimant of the reasons for 
 18.19  the denial and specify what additional evidence is required 
 18.20  before the claim will be allowed.  The claimant may then file a 
 18.21  new claim with the administrator or maintain an action under 
 18.22  section 345.76. 
 18.23     (c) Within 30 days after a claim is allowed, the property 
 18.24  or the net proceeds of a sale of the property must be delivered 
 18.25  or paid by the administrator to the claimant, together with any 
 18.26  dividend, interest, or other increment to which the claimant is 
 18.27  entitled under sections 345.71 and 345.72.  
 18.28     (d) A holder who pays the owner for property that has been 
 18.29  delivered to the state and which, if claimed from the 
 18.30  administrator by the owner would be subject to an increment 
 18.31  under sections 345.71 and 345.72, may recover from the 
 18.32  administrator the amount of the increment.  
 18.33     Sec. 16.  [345.76] [ACTION TO ESTABLISH CLAIM.] 
 18.34     A person aggrieved by a decision of the administrator or 
 18.35  whose claim has not been acted upon within 90 days after its 
 18.36  filing may maintain an original action to establish the claim in 
 19.1   the district court, naming the administrator as a defendant.  If 
 19.2   the aggrieved person establishes the claim in an action against 
 19.3   the administrator, the court may award the claimant reasonable 
 19.4   attorney's fees. 
 19.5      Sec. 17.  [345.77] [ELECTION TO TAKE PAYMENT OR DELIVERY.] 
 19.6      (a) The administrator may decline to receive property 
 19.7   reported under sections 345.61 to 345.90 which the administrator 
 19.8   considers to have a value less than the expenses of notice and 
 19.9   sale. 
 19.10     (b) A holder, with the written consent of the administrator 
 19.11  and upon conditions and terms prescribed by the administrator, 
 19.12  may report and deliver property before the property is presumed 
 19.13  abandoned.  Property so delivered must be held by the 
 19.14  administrator and is not presumed abandoned until it otherwise 
 19.15  would be presumed abandoned under sections 345.61 to 345.90. 
 19.16     Sec. 18.  [345.78] [DESTRUCTION OR DISPOSITION OF PROPERTY 
 19.17  HAVING NO SUBSTANTIAL COMMERCIAL VALUE; IMMUNITY FROM 
 19.18  LIABILITY.] 
 19.19     If the administrator determines after investigation that 
 19.20  property delivered under sections 345.61 to 345.90 has no 
 19.21  substantial commercial value, the administrator may destroy or 
 19.22  otherwise dispose of the property at any time.  An action or 
 19.23  proceeding may not be maintained against the state or any 
 19.24  officer or against the holder for or on account of an act of the 
 19.25  administrator under this section, except for intentional 
 19.26  misconduct or malfeasance. 
 19.27     Sec. 19.  [345.79] [PERIODS OF LIMITATION.] 
 19.28     (a) The expiration, before or after the effective date of 
 19.29  sections 345.61 to 345.90, of a period of limitation on the 
 19.30  owner's right to receive or recover property, whether specified 
 19.31  by contract, statute, or court order, does not preclude the 
 19.32  property from being presumed abandoned or affect a duty to file 
 19.33  a report or to pay or deliver or transfer property to the 
 19.34  administrator as required by sections 345.61 to 345.90. 
 19.35     (b) An action or proceeding may not be maintained by the 
 19.36  administrator to enforce sections 345.61 to 345.90 in regard to 
 20.1   the reporting, delivery, or payment of property more than ten 
 20.2   years after the holder specifically identified the property in a 
 20.3   report filed with the administrator or gave express notice to 
 20.4   the administrator of a dispute regarding the property.  In the 
 20.5   absence of such a report or other express notice, the period of 
 20.6   limitation is tolled.  The period of limitation is also tolled 
 20.7   by the filing of a report that is fraudulent. 
 20.8      Sec. 20.  [345.80] [REQUESTS FOR REPORTS AND EXAMINATION OF 
 20.9   RECORDS.] 
 20.10     (a) The administrator may require a person who has not 
 20.11  filed a report, or a person who the administrator believes has 
 20.12  filed an inaccurate, incomplete, or false report, to file a 
 20.13  verified report in a form specified by the administrator.  The 
 20.14  report must state whether the person is holding property 
 20.15  reportable under sections 345.61 to 345. 90, describe property 
 20.16  not previously reported or as to which the administrator has 
 20.17  made inquiry, and specifically identify and state the amounts of 
 20.18  property that may be in issue. 
 20.19     (b) The administrator, at reasonable times and upon 
 20.20  reasonable notice, may examine the records of any person to 
 20.21  determine whether the person has complied with sections 345.61 
 20.22  to 345.90.  The administrator may conduct the examination even 
 20.23  if the person believes it is not in possession of any property 
 20.24  that must be reported, paid, or delivered under sections 345.61 
 20.25  to 345.90.  The administrator may contract with any other person 
 20.26  to conduct the examination on behalf of the administrator. 
 20.27     (c) The administrator at reasonable times may examine the 
 20.28  records of an agent, including a dividend disbursing agent or 
 20.29  transfer agent, of a business association or financial 
 20.30  association that is the holder of property presumed abandoned if 
 20.31  the administrator has given the notice required by paragraph (b) 
 20.32  to both the association or organization and the agent at least 
 20.33  90 days before the examination. 
 20.34     (d) Documents and working papers obtained or compiled by 
 20.35  the administrator, or the administrator's agents, employees, or 
 20.36  designated representatives, in the course of conducting an 
 21.1   examination are confidential and are not public records, but the 
 21.2   documents and papers may be: 
 21.3      (1) used by the administrator in the course of an action to 
 21.4   collect unclaimed property or otherwise enforce sections 345.61 
 21.5   to 345.90; 
 21.6      (2) used in joint examinations conducted with or pursuant 
 21.7   to an agreement with another state, the federal government, or 
 21.8   any other governmental subdivision, agency, or instrumentality; 
 21.9      (3) produced pursuant to subpoena or court order; or 
 21.10     (4) disclosed to the abandoned property office of another 
 21.11  state for that state's use in circumstances equivalent to those 
 21.12  described in this section, if the other state is bound to keep 
 21.13  the documents and papers confidential. 
 21.14     (e) If an examination of the records of a person results in 
 21.15  the disclosure of property reportable under sections 345.61 to 
 21.16  345.90, the administrator may assess the cost of the examination 
 21.17  against the holder at the rate of $200 a day for each examiner, 
 21.18  or a greater amount that is reasonable and was incurred, but the 
 21.19  assessment may not exceed the value of the property found to be 
 21.20  reportable.  The cost of an examination made pursuant to 
 21.21  paragraph (c) may be assessed only against the business 
 21.22  association or financial organization. 
 21.23     (f) If, after the effective date of sections 345.61 to 
 21.24  345.90, a holder does not maintain the records required by 
 21.25  section 345.61 and the records of the holder available for the 
 21.26  periods subject to sections 345.61 to 345.90 are insufficient to 
 21.27  permit the preparation of a report, the administrator may 
 21.28  require the holder to report and pay to the administrator the 
 21.29  amount the administrator reasonably estimates, on the basis of 
 21.30  any available records of the holder or by any other reasonable 
 21.31  method of estimation, should have been but was not reported. 
 21.32     Sec. 21.  [345.81] [RETENTION OF RECORDS.] 
 21.33     (a) Except as otherwise provided in paragraph (b), a holder 
 21.34  required to file a report under section 345.67 shall maintain 
 21.35  the records containing the information required to be included 
 21.36  in the report for ten years after the holder files the report, 
 22.1   unless a shorter period is provided by rule of the administrator.
 22.2      (b) A business association or financial organization that 
 22.3   sells, issues, or provides to others for sale or issue in this 
 22.4   state, traveler's checks, money orders, or similar instruments 
 22.5   other than third-party bank checks, on which the business 
 22.6   association or financial organization is directly liable, shall 
 22.7   maintain a record of the instruments while they remain 
 22.8   outstanding, indicating the state and date of issue, for three 
 22.9   years after the holder files the report. 
 22.10     Sec. 22.  [345.82] [ENFORCEMENT.] 
 22.11     The administrator may maintain an action in this or another 
 22.12  state to enforce sections 345.61 to 345.90.  The court may award 
 22.13  reasonable attorney's fees to the prevailing party. 
 22.14     Sec. 23.  [345.83] [INTERSTATE AGREEMENTS AND COOPERATION; 
 22.15  JOINT AND RECIPROCAL ACTIONS WITH OTHER STATES.] 
 22.16     (a) The administrator may enter into an agreement with 
 22.17  another state to exchange information relating to abandoned 
 22.18  property or its possible existence.  The agreement may permit 
 22.19  the other state, or another person acting on behalf of a state, 
 22.20  to examine records as authorized in section 345.80.  The 
 22.21  administrator by rule may require the reporting of information 
 22.22  needed to enable compliance with an agreement made under this 
 22.23  section and prescribe the form. 
 22.24     (b) The administrator may join with another state to seek 
 22.25  enforcement of sections 345.61 to 345.90 against any person who 
 22.26  is or may be holding property reportable under sections 345.61 
 22.27  to 345.90. 
 22.28     (c) At the request of another state, the attorney general 
 22.29  of this state may maintain an action on behalf of the other 
 22.30  state to enforce, in this state, the unclaimed property laws of 
 22.31  the other state against a holder of property subject to escheat 
 22.32  or a claim of abandonment by the other state, if the other state 
 22.33  has agreed to pay expenses incurred by the attorney general in 
 22.34  maintaining the action. 
 22.35     (d) The administrator may request that the attorney general 
 22.36  of another state or another attorney commence an action in the 
 23.1   other state on behalf of the administrator.  With the approval 
 23.2   of the attorney general of this state, the administrator may 
 23.3   retain any other attorney to commence an action in this state on 
 23.4   behalf of the administrator.  This state shall pay all expenses, 
 23.5   including attorney's fees, in maintaining an action under this 
 23.6   paragraph.  With the administrator's approval, the expenses and 
 23.7   attorney's fees may be paid from money received under sections 
 23.8   345.61 to 345.90.  The administrator may agree to pay expenses 
 23.9   and attorney's fees based in whole or in part on a percentage of 
 23.10  the value of any property recovered in the action.  Any expenses 
 23.11  or attorney's fees paid under this paragraph may not be deducted 
 23.12  from the amount that is subject to the claim by the owner under 
 23.13  sections 345.61 to 345.90. 
 23.14     Sec. 24.  [345.84] [INTEREST AND PENALTIES.] 
 23.15     (a) A holder who fails to report, pay, or deliver property 
 23.16  within the time prescribed by sections 345.61 to 345.90 shall 
 23.17  pay to the administrator interest at the annual rate of 12 
 23.18  percent or on the property or value thereof from the date the 
 23.19  property should have been reported, paid, or delivered. 
 23.20     (b) Except as otherwise provided in paragraph (c), a holder 
 23.21  who fails to report, pay, or deliver property within the time 
 23.22  prescribed by sections 345.61 to 345.90, or fails to perform 
 23.23  other duties imposed by sections 345.61 to 345.90, shall pay to 
 23.24  the administrator, in addition to interest as provided in 
 23.25  paragraph (a), a civil penalty of $200 for each day the report, 
 23.26  payment, or delivery is withheld, or the duty is not performed, 
 23.27  up to a maximum of $5,000. 
 23.28     (c) A holder who willfully fails to report, pay, or deliver 
 23.29  property within the time prescribed by sections 345.61 to 
 23.30  345.90, or willfully fails to perform other duties imposed by 
 23.31  sections 345.61 to 345.90, shall pay to the administrator, in 
 23.32  addition to interest as provided in paragraph (a), a civil 
 23.33  penalty of $1,000 for each day the report, payment, or delivery 
 23.34  is withheld, or the duty is not performed, up to a maximum of 
 23.35  $25,000, plus 25 percent of the value of any property that 
 23.36  should have been but was not reported. 
 24.1      (d) A holder who makes a fraudulent report shall pay to the 
 24.2   administrator, in addition to interest as provided in paragraph 
 24.3   (a), a civil penalty of $1,000 for each day from the date a 
 24.4   report under sections 345.61 to 345.90 was due, up to a maximum 
 24.5   of $25,000, plus 25 percent of the value of any property that 
 24.6   should have been but was not reported. 
 24.7      (e) The administrator for good cause may waive, in whole or 
 24.8   in part, interest under paragraph (a) and penalties under 
 24.9   paragraphs (b) and (c), and shall waive penalties if the holder 
 24.10  acted in good faith and without negligence. 
 24.11     Sec. 25.  [345.85] [AGREEMENT TO LOCATE PROPERTY.] 
 24.12     (a) An agreement by an owner, the primary purpose of which 
 24.13  is to locate, deliver, recover, or assist in the recovery of 
 24.14  property that is presumed abandoned, is void and unenforceable 
 24.15  if it was entered into during the period commencing on the date 
 24.16  the property was presumed abandoned and extending to a time that 
 24.17  is 24 months after the date the property is paid or delivered to 
 24.18  the administrator.  This paragraph does not apply to an owner's 
 24.19  agreement with an attorney to file a claim as to identified 
 24.20  property or contest the administrator's denial of a claim.  
 24.21     (b) An agreement by an owner, the primary purpose of which 
 24.22  is to locate, deliver, recover, or assist in the recovery of 
 24.23  property, is enforceable only if the agreement is in writing, 
 24.24  clearly sets forth the nature of the property and the services 
 24.25  to be rendered, is signed by the apparent owner, and states the 
 24.26  value of the property before and after the fee or other 
 24.27  compensation has been deducted. 
 24.28     (c) If an agreement covered by this section applies to 
 24.29  mineral proceeds and the agreement contains a provision to pay 
 24.30  compensation that includes a portion of the underlying minerals 
 24.31  or any mineral proceeds not then presumed abandoned, the 
 24.32  provision is void and unenforceable. 
 24.33     (d) An agreement covered by this section which provides for 
 24.34  compensation that is unconscionable is unenforceable except by 
 24.35  the owner.  An owner who has agreed to pay compensation that is 
 24.36  unconscionable, or the administrator on behalf of the owner, may 
 25.1   maintain an action to reduce the compensation to a conscionable 
 25.2   amount.  The court may award reasonable attorney's fees to an 
 25.3   owner who prevails in the action. 
 25.4      (e) This section does not preclude an owner from asserting 
 25.5   that an agreement covered by this section is invalid on grounds 
 25.6   other than unconscionable compensation. 
 25.7      Sec. 26.  [345.86] [FOREIGN TRANSACTIONS.] 
 25.8      Sections 345.61 to 345.90 does not apply to property held, 
 25.9   due, and owing in a foreign country and arising out of a foreign 
 25.10  transaction. 
 25.11     Sec. 27.  [345.87.] [TRANSITIONAL PROVISIONS.] 
 25.12     (a) An initial report filed under sections 345.61 to 345.90 
 25.13  for property that was not required to be reported before the 
 25.14  effective date of sections 345.61 to 345.90 but which is subject 
 25.15  to sections 345.61 to 345.90 must include all items of property 
 25.16  that would have been presumed abandoned during the ten-year 
 25.17  period next preceding the effective date of sections 345.61 to 
 25.18  345.90 as if sections 345.61 to 345.90 had been in effect during 
 25.19  that period. 
 25.20     (b) Sections 345.61 to 345.90 does not relieve a holder of 
 25.21  a duty that arose before the effective date of sections 345.61 
 25.22  to 345.90 to report, pay, or deliver property.  Except as 
 25.23  otherwise provided in section 345.79, paragraph (b), a holder 
 25.24  who did not comply with the law in effect before the effective 
 25.25  date of sections 345.61 to 345.90 is subject to the applicable 
 25.26  provisions for enforcement and penalties which then existed, 
 25.27  which are continued in effect for the purpose of this section. 
 25.28     Sec. 28.  [345.88] [RULES.] 
 25.29     The administrator may adopt rules under chapter 14 
 25.30  necessary to carry out sections 345.61 to 345.90. 
 25.31     Sec. 29.  [345.89] [UNIFORMITY OF APPLICATION AND 
 25.32  CONSTRUCTION.] 
 25.33     Sections 345.61 to 345.90 shall be applied and construed to 
 25.34  effectuate its general purpose to make uniform the law with 
 25.35  respect to the subject of sections 345.61 to 345.90 among states 
 25.36  enacting it. 
 26.1      Sec. 30.  [345.90] [SHORT TITLE.] 
 26.2      Sections 345.61 to 345.90 may be cited as the Uniform 
 26.3   Unclaimed Property Act (1995). 
 26.4      Sec. 31.  [REPEALER.] 
 26.5      Minnesota Statutes 1996, sections 345.31; 345.32; 345.33; 
 26.6   345.34; 345.35; 345.36; 345.37; 345.38; 345.381; 345.39; 345.40; 
 26.7   345.41; 345.42; 345.43; 345.44; 345.45; 345.46; 345.47; 345.48; 
 26.8   345.485; 345.49; 345.50; 345.51; 345.515; 345.52; 345.525; 
 26.9   345.53; 345.54; 345.55; 345.56; 345.57; 345.58; 345.59; and 
 26.10  345.60, are repealed. 
 26.11     Sec. 32.  [EFFECTIVE DATE.] 
 26.12     This act is effective January 1, 1998. 
 26.13                             ARTICLE 2 
 26.14                         CONFORMING CHANGES 
 26.15     Section 1.  Minnesota Statutes 1996, section 16A.45, 
 26.16  subdivision 1, is amended to read: 
 26.17     Subdivision 1.  [CANCEL; CREDIT.] Once each fiscal year the 
 26.18  commissioner and the treasurer shall cancel upon their books all 
 26.19  outstanding unpaid commissioner's warrants, except warrants 
 26.20  issued for federal assistance programs, that have been issued 
 26.21  and delivered for more than six months prior to that date and 
 26.22  credit to the general fund the respective amounts of the 
 26.23  canceled warrants.  These warrants are presumed abandoned under 
 26.24  section 345.38 345.62 and are subject to the provisions of 
 26.25  sections 345.31 345.61 to 345.60 345.90.  The commissioner and 
 26.26  the treasurer shall cancel upon their books all outstanding 
 26.27  unpaid commissioner's warrants issued for federal assistance 
 26.28  programs that have been issued and delivered for more than the 
 26.29  period of time set pursuant to the federal program and credit to 
 26.30  the general fund and the appropriate account in the federal 
 26.31  fund, the amount of the canceled warrants. 
 26.32     Sec. 2.  Minnesota Statutes 1996, section 16A.45, 
 26.33  subdivision 4, is amended to read: 
 26.34     Subd. 4.  [LOCATING UNPAID WARRANTS.] A person may not seek 
 26.35  or receive from another person, or contract with a person for, a 
 26.36  fee or compensation for locating outstanding unpaid 
 27.1   commissioner's warrants before the warrants have been reported 
 27.2   to the commissioner of commerce under section 345.41 345.67. 
 27.3      Sec. 3.  Minnesota Statutes 1996, section 16A.6701, 
 27.4   subdivision 1, is amended to read: 
 27.5      Subdivision 1.  [STATE LICENSE AND SERVICE FEES.] For 
 27.6   purposes of section 16A.67, subdivision 3, and this section, the 
 27.7   term "state license and service fees" means, and refers to, all 
 27.8   license fees, service fees, and charges imposed by law and 
 27.9   collected by any state officer, agency, or employee, which are 
 27.10  listed below or which are defined as departmental earnings under 
 27.11  section 16A.1285, subdivision 1, and the use of which is not 
 27.12  otherwise restricted by law, and which are not required to be 
 27.13  credited or transferred to a fund other than the general fund:  
 27.14     Minnesota Statutes 1994, sections 3.9221; 5.12; 5.14; 5.16; 
 27.15  5A.04; 6.58; 13.03, subdivision 10; 16A.155; 16A.48; 16A.54; 
 27.16  16A.72; 16B.59; 16B.70; 17A.04; 18.51, subdivision 2; 18.53; 
 27.17  18.54; 18C.551; 19.58; 19.64; 27.041, subdivision 2, clauses (d) 
 27.18  and (e); 27.07, subdivision 5; 28A.08; 32.071; 32.075; 32.392; 
 27.19  35.71; 35.824; 35.95; 41C.12; 45.027, subdivisions 3 and 6; 
 27.20  46.041, subdivision 1; 46.131, subdivisions 2, 7, 8, 9, and 10; 
 27.21  47.101, subdivision 2; 47.54, subdivisions 1 and 4; 47.62, 
 27.22  subdivision 4; 47.65; 48.475, subdivision 1; 48.61, subdivision 
 27.23  7; 48.93; 49.36, subdivision 1; 52.01; 52.203; 53.03, 
 27.24  subdivisions 1, 5, and 6; 53.09, subdivision 1; 53A.03; 53A.05, 
 27.25  subdivision 1; 53A.081, subdivision 3; 54.294, subdivision 1; 
 27.26  55.04, subdivision 2; 55.095; 56.02; 56.04; 56.10; 59A.03, 
 27.27  subdivision 2; 59A.06, subdivision 3; 60A.14, subdivisions 1 and 
 27.28  2; 60A.23, subdivision 8; 60K.19, subdivision 5; 65B.48, 
 27.29  subdivision 3; 70A.14, subdivision 4; 72B.04, subdivision 10; 
 27.30  79.251, subdivision 5; 80A.28, subdivisions 1, 2, 3, 4, 5, 6, 7, 
 27.31  7a, 8, and 9; 80C.04, subdivision 1; 80C.07; 80C.08, subdivision 
 27.32  1; 80C.16, subdivisions 2 and 3; 80C.18, subdivision 2; 82.20, 
 27.33  subdivision 8 and 9; 82A.04, subdivision 1; 82A.08, subdivision 
 27.34  2; 82A.16, subdivisions 2 and 6; 82B.09, subdivision 1; 83.23, 
 27.35  subdivisions 2, 3, and 4; 83.25, subdivisions 1 and 2; 83.26, 
 27.36  subdivision 2; 83.30, subdivision 2; 83.31, subdivision 2; 
 28.1   83.38, subdivision 2; 85.052; 85.053; 85.055; 88.79, subdivision 
 28.2   2; 89.035; 89.21; 115.073; 115.77, subdivisions 1 and 2; 116.41, 
 28.3   subdivision 2; 116C.69; 116C.712; 116J.9673; 125.08; 136C.04, 
 28.4   subdivision 9; 155A.045; 155A.16; 168.27, subdivision 11; 
 28.5   168.33, subdivisions 3 and 7; 168.54; 168.67; 168.705; 168A.152; 
 28.6   168A.29; 169.345; 171.06, subdivision 2a; 171.29, subdivision 2; 
 28.7   176.102; 176.1351; 176.181, subdivision 2a; 177.30; 181A.12; 
 28.8   183.545; 183.57; 184.28; 184.29; 184A.09; 201.091, subdivision 
 28.9   5; 204B.11; 207A.02; 214.06; 216C.261; 221.0355; 239.101; 
 28.10  240.06; 240.07; 240.08; 240.09; 240.10; 246.51; 270.69, 
 28.11  subdivision 2; 270A.07; 272.484; 296.06; 296.12; 296.17; 297.04; 
 28.12  297.33; 299C.46; 299C.62; 299K.09; 299K.095; 299L.07; 299M.04; 
 28.13  300.49; 318.02; 323.44, subdivision 3; 325D.415; 326.22; 
 28.14  326.3331; 326.47; 326.50; 326.92, subdivisions 1 and 3; 327.33; 
 28.15  331A.02; 332.15, subdivisions 2 and 3; 332.17; 332.22, 
 28.16  subdivision 1; 332.33, subdivisions 3 and 4; 332.54, subdivision 
 28.17  7; 333.055; 333.20; 333.23; 336.9-413; 336A.04; 336A.05; 
 28.18  336A.09; 345.35 345.62, paragraph (a), clause (2); 345.43, 
 28.19  subdivision 2a 345.68; 345.44 345.70; 345.55, subdivision 
 28.20  3 345.84; 347.33; 349.151; 349.161; 349.162; 349.163; 349.164; 
 28.21  349.165; 349.166; 349.167; 357.08; 359.01, subdivision 3; 
 28.22  360.018; 360.63; 386.68; and 414.01, subdivision 11; Minnesota 
 28.23  Statutes 1994, chapters 154; 216B; 237; 302A; 303; 308A; 317A; 
 28.24  322A; and 322B; Laws 1990, chapter 593; Laws 1993, chapter 254, 
 28.25  section 7; and Laws 1994, chapter 573, section 4; Minnesota 
 28.26  Rules, parts 1800.0500; 1950.1070; 2100.9300; 7515.0210; and 
 28.27  9545.2000 to 9545.2040. 
 28.28     Sec. 4.  Minnesota Statutes 1996, section 80C.03, is 
 28.29  amended to read: 
 28.30     80C.03 [EXEMPTIONS.] 
 28.31     The registration requirement imposed by section 80C.02 
 28.32  shall not apply to the following provided that the method of 
 28.33  offer or sale is not used for the purpose of evading sections 
 28.34  80C.01 to 80C.22: 
 28.35     (a) the offer or sale of a franchise owned by that 
 28.36  franchisee, or the offer or sale of the entire area franchise 
 29.1   owned by the subfranchisor making the offer or sale if the sale 
 29.2   is not effected by or through a franchisor; provided, however, 
 29.3   that no person shall make more than one sale during any period 
 29.4   of 12 consecutive months of a franchise or area franchise 
 29.5   granted by a single franchisor.  A sale is not effected by or 
 29.6   through a franchisor merely because a franchisor has a right to 
 29.7   approve or disapprove a different franchisee; 
 29.8      (b) any transaction by an executor, administrator, sheriff, 
 29.9   receiver, trustee in bankruptcy, guardian or conservator; 
 29.10     (c) any offer or sale to a banking organization, financial 
 29.11  organization or life insurance corporation company within the 
 29.12  meanings given these terms by section 345.31 345.61; 
 29.13     (d) securities currently registered in this state pursuant 
 29.14  to chapter 80A; 
 29.15     (e) the offer or sale of a franchise, not including an area 
 29.16  franchise, provided that:  
 29.17     (1) the franchisor shall make no more than one sale of a 
 29.18  franchise pursuant to this exemption during any period of 12 
 29.19  consecutive months; 
 29.20     (2) the franchisor has not advertised the franchise for 
 29.21  sale to the general public in newspapers or other publications 
 29.22  of general circulation or otherwise by radio, television, 
 29.23  electronic means or similar communications media, or through a 
 29.24  program of general solicitation by means of mail or telephone; 
 29.25     (3) the franchisor deposits all franchisee fees within two 
 29.26  days of receipt in an escrow account until all obligations of 
 29.27  the franchisor to the franchisee which are, pursuant to the 
 29.28  terms of the franchise agreement, to be performed prior to the 
 29.29  opening of the franchise, have been performed.  The franchisor 
 29.30  shall provide the franchisee with a purchase receipt for the 
 29.31  franchise fees paid, a copy of the escrow agreement and the 
 29.32  name, address and telephone number of the escrow agent.  The 
 29.33  escrow agent shall be a bank located in Minnesota.  Upon a 
 29.34  showing of good cause the commissioner may waive the escrow of 
 29.35  franchise fees; and 
 29.36     (4) the franchisor has provided to the commissioner, no 
 30.1   later than ten business days prior to the sale, a written notice 
 30.2   of its intention to offer or sell a franchise pursuant to this 
 30.3   exemption; 
 30.4      (f) the offer or sale of a fractional franchise; 
 30.5      (g) any transaction which the commissioner by rule or order 
 30.6   exempts as not being within the purposes of this chapter and the 
 30.7   registration of which the commissioner finds is not necessary or 
 30.8   appropriate in the public interest or for the protection of 
 30.9   investors; and 
 30.10     (h) the offer or sale of a franchise to a resident of a 
 30.11  foreign state, territory, or country who is neither domiciled in 
 30.12  this state nor actually present in this state, if the franchise 
 30.13  business is not to be operated wholly or partly in this state, 
 30.14  and if the sale of this franchise is not in violation of any law 
 30.15  of the foreign state, territory, or county concerned.  
 30.16     Sec. 5.  Minnesota Statutes 1996, section 149.12, is 
 30.17  amended to read: 
 30.18     149.12 [DEPOSIT OF TRUST FUNDS.] 
 30.19     Within 15 days after its receipt, any person holding money 
 30.20  in trust under section 149.11 shall deposit all of the money in 
 30.21  a banking institution, savings association, or credit union, 
 30.22  organized under the laws of this state or of the United States 
 30.23  of America, the accounts of which are insured by an 
 30.24  instrumentality of the federal government.  The money shall be 
 30.25  carried in a separate account in the name of the depositor as 
 30.26  trustee for the person who will receive the benefit of the 
 30.27  property and services upon the depositor's death.  Sections 
 30.28  345.31 345.61 to 345.60 345.90 shall not apply to money 
 30.29  deposited or received and held in trust pursuant to sections 
 30.30  149.11 to 149.14.  All money not used for the purpose intended 
 30.31  upon the death of the cestui que trust shall revert to and 
 30.32  become a part of the estate. 
 30.33     Sec. 6.  Minnesota Statutes 1996, section 198.231, is 
 30.34  amended to read: 
 30.35     198.231 [PERSONAL PROPERTY OF DISCHARGED RESIDENTS.] 
 30.36     Personal property of discharged residents of the veterans 
 31.1   homes that remains unclaimed for one year after discharge may be 
 31.2   inventoried, appraised, and sold.  The proceeds from the sale 
 31.3   must be deposited into the state treasury.  Proceeds from the 
 31.4   sale of personal property and any funds held on behalf of the 
 31.5   resident in the member's depository accounts must be credited to 
 31.6   a separate state account and disposed of in accordance with 
 31.7   sections 345.41 345.67 to 345.43 345.69.  
 31.8      Sec. 7.  Minnesota Statutes 1996, section 276.19, 
 31.9   subdivision 4, is amended to read: 
 31.10     Subd. 4.  [APPLICABILITY.] Sections 345.31 345.61 to 345.60 
 31.11  345.90 do not apply to unclaimed property tax refunds, 
 31.12  overpayments, and warrants. 
 31.13     Sec. 8.  Minnesota Statutes 1996, section 308A.711, 
 31.14  subdivision 1, is amended to read: 
 31.15     Subdivision 1.  [ALTERNATE PROCEDURE TO DISBURSE PROPERTY.] 
 31.16  Notwithstanding the provisions of section 345.43 345.68, a 
 31.17  cooperative may, in lieu of paying or delivering to the 
 31.18  commissioner of commerce the unclaimed property specified in its 
 31.19  report of unclaimed property, distribute the unclaimed property 
 31.20  to a corporation or organization that is exempt from taxation 
 31.21  under section 290.05, subdivision 1, paragraph (b), or 2.  A 
 31.22  cooperative making the election to distribute unclaimed property 
 31.23  shall, within 20 .... days after the time specified in section 
 31.24  345.42 for claiming the property from the holder ......., file 
 31.25  with the commissioner of commerce: 
 31.26     (1) a verified written explanation of the proof of claim of 
 31.27  an owner establishing a right to receive the abandoned property; 
 31.28     (2) any errors in the presumption of abandonment; 
 31.29     (3) the name, address, and exemption number of the 
 31.30  corporation or organization to which the property was or is to 
 31.31  be distributed; and 
 31.32     (4) the approximate date of distribution. 
 31.33     Sec. 9.  Minnesota Statutes 1996, section 308A.711, 
 31.34  subdivision 2, is amended to read: 
 31.35     Subd. 2.  [REPORTING AND CLAIMING PROCEDURE NOT AFFECTED.] 
 31.36  This subdivision does not alter the procedure provided in 
 32.1   sections 345.41 345.67 and 345.42 345.69 for cooperatives to 
 32.2   report unclaimed property to the commissioner of commerce and 
 32.3   the requirement that claims of owners are made to the 
 32.4   cooperatives for a period of 65 days following the publication 
 32.5   of lists of abandoned property. 
 32.6      Sec. 10.  Minnesota Statutes 1996, section 356.65, 
 32.7   subdivision 2, is amended to read: 
 32.8      Subd. 2.  [DISPOSITION OF ABANDONED AMOUNTS.] Any unclaimed 
 32.9   public pension fund amounts existing in any public pension fund 
 32.10  shall be presumed abandoned, but shall not be subject to the 
 32.11  provisions of sections 345.31 345.61 to 345.60 345.90.  Unless 
 32.12  the benefit plan of the public pension fund specifically 
 32.13  provides for a different disposition of unclaimed or abandoned 
 32.14  funds or amounts, any unclaimed public pension fund amounts 
 32.15  shall cancel and shall be credited to the public pension fund.  
 32.16  If the unclaimed public pension fund amount exceeds $25 and the 
 32.17  inactive or former member again becomes a member of the public 
 32.18  pension fund or applies for a retirement annuity pursuant to 
 32.19  section 3A.12, 352.72, 352B.30, 352C.051, 353.71, 354.60, 
 32.20  356.30, or 422A.16, subdivision 8, whichever is applicable, the 
 32.21  canceled amount shall be restored to the credit of the person.  
 32.22     Sec. 11.  Minnesota Statutes 1996, section 624.68, is 
 32.23  amended to read: 
 32.24     624.68 [RECEIVING DEPOSIT IN INSOLVENT BANKS OR FINANCIAL 
 32.25  ORGANIZATIONS.] 
 32.26     Every officer, director, agent, or employee of any banking 
 32.27  organization or financial organization as defined in section 
 32.28  345.31 345.61 and every person, company, and corporation engaged 
 32.29  in whole or in part, in business as a banking organization or 
 32.30  financial organization, who shall accept or receive on deposit 
 32.31  from any person, any money, bank bills, notes, currency, checks, 
 32.32  bills, drafts, or paper circulating as money, knowing or, in the 
 32.33  case of officers or directors, having good reason to know that 
 32.34  such banking organization or financial organization is 
 32.35  insolvent, and every person knowing of such insolvent condition 
 32.36  who shall be accessory to, or permit, or connive at the 
 33.1   accepting or receiving on deposit therein any such deposits, 
 33.2   shall be guilty of a felony and punished by imprisonment in the 
 33.3   Minnesota correctional facility-Stillwater for not less than one 
 33.4   year nor more than five years or by a fine of not less than $700 
 33.5   nor more than $20,000.