Minnesota Session Laws - 1985, Regular Session

  

                         Laws of Minnesota 1985 

                        CHAPTER 222-S.F.No. 821 
           An act relating to unclaimed property; extending 
          coverage to corporate stock and other ownership 
          interests; amending Minnesota Statutes 1984, sections 
          345.35; 345.43; and 345.47.  
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1984, section 345.35, is 
amended to read: 
    345.35 [UNDISTRIBUTED DIVIDENDS AND DISTRIBUTIONS OF 
BUSINESS ASSOCIATIONS STOCK AND OTHER INTANGIBLE INTERESTS IN 
BUSINESS ASSOCIATIONS.] 
    Any stock or other certificate of ownership, or any 
dividend, profit, distribution, interest, payment on principal, 
or other sum held or owing by a business association for or to a 
shareholder, certificate holder, member, bondholder, or other 
security holder, or a participating patron of a cooperative, who 
has not claimed it, or corresponded in writing with the business 
association concerning it, within seven years after the date 
prescribed for payment or delivery, 
    (a) Except as provided in paragraphs (b) and (e), stock or 
other intangible ownership interest in a business association, 
the existence of which is evidenced by records available to the 
association, is presumed abandoned and, with respect to the 
interest, the association is the holder, if a dividend 
distribution or other sum payable as a result of the interest 
has remained unclaimed by the owner for seven years and the 
owner within seven years has not:  
    (1) communicated in writing with the association regarding 
the interest or a dividend, distribution, or other sum payable 
as a result of the interest; or 
    (2) otherwise communicated with the association regarding 
the interest or a dividend, distribution, or other sum payable 
as a result of the interest, as evidenced by a memorandum or 
other record on file with the association prepared by an 
employee of the association. 
    (b) At the expiration of a seven-year period following the 
failure of the owner to claim a dividend, distribution, or other 
sum payable to the owner as a result of the interest, the 
interest is not presumed abandoned unless there have been at 
least seven dividends, distributions, or other sums paid during 
the period, none of which has been claimed by the owner.  If 
seven dividends, distributions, or other sums are paid during 
the seven-year period, the period leading to a presumption of 
abandonment commences on the date payment of the first such 
unclaimed dividend, distribution, or other sum became due and 
payable.  If seven dividends, distributions, or other sums are 
not paid during the presumptive period, the period continues to 
run until there have been seven dividends, distributions, or 
other sums that have not been claimed by the owner. 
    (c) The running of the seven-year period of abandonment 
ceases immediately upon the occurrence of a communication 
referred to in paragraph (a).  If any future dividend, 
distribution, or other sum payable to the owner as a result of 
the interest is subsequently not claimed by the owner, a new 
period of abandonment commences and relates back to the time a 
subsequent dividend, distribution, or other sum became due and 
payable. 
    (d) At the time an interest is presumed abandoned under 
this section, any dividend, distribution, or other sum then held 
for or owing to the owner as a result of the interest, and not 
previously presumed abandoned, is presumed abandoned. 
    (e) This section does not apply to any stock or other 
intangible ownership interest enrolled in a plan that provides 
for the automatic reinvestment of dividends, distributions, or 
other sums payable as a result of the interest unless the 
records available to the administrator of the plan show, with 
respect to any intangible ownership interest not enrolled in the 
reinvestment plan, that the owner has not within seven years 
communicated in any manner described in paragraph (a). 
    (f) For purposes of this section, stock or other intangible 
ownership interest in a business association is presumed 
abandoned if: 
    (a) (1) it is held or owing by a business association 
organized under the laws of or created in this state; or 
    (b) (2) it is held or owing by a business association doing 
business in this state, but not organized under the laws of or 
created in this state, and the records of the business 
association indicate that the last known address of the person 
entitled thereto is in this state. 
    Sec. 2.  Minnesota Statutes 1984, section 345.43, is 
amended by adding a subdivision to read: 
     Subd. 3.  [EVIDENCE OF OWNERSHIP.] The holder of an 
interest under section 345.35 shall deliver a duplicate 
certificate or other evidence of ownership if the holder does 
not issue certificates of ownership to the commissioner.  Upon 
delivery of a duplicate certificate to the commissioner, the 
holder and any transfer agent, registrar, or other person acting 
for or on behalf of a holder in executing or delivering the 
duplicate certificate is relieved of all liability of every kind 
in accordance with the provision of section 345.44 to every 
person, including any person acquiring the original certificate 
or the duplicate of the certificate issued to the commissioner, 
for any losses or damages resulting to any person by the 
issuance and delivery to the commissioner of the duplicate 
certificate. 
    Sec. 3.  Minnesota Statutes 1984, section 345.47, is 
amended by adding a subdivision to read: 
    Subd. 3a.  [HOLDING PERIOD.] All securities presumed 
abandoned under section 345.35 and delivered to the commissioner 
must be held for at least three years before he or she may sell 
them.  A person making a claim under this section is entitled to 
receive either the securities delivered to the commissioner by 
the holder, if they still remain in the hands of the 
commissioner, or the proceeds received from the sale, but no 
person has any claim under this section against the state, the 
holder, any transfer agent, registrar, or other person acting 
for or on behalf of a holder for any appreciation in the value 
of the property occurring after delivery by the holder to the 
commissioner. 
    Sec. 4.  [EFFECTIVE DATE.] 
    Sections 1 to 3 are effective January 1, 1986. 
    Approved May 23, 1985