Chapter 539
AN ACT
HB 2104
Relating to reporting requirements for certain unclaimed property;
creating new provisions; and amending ORS 98.308, 98.311, 98.314 and 98.322.
Be It Enacted by the People of
the State of
SECTION 1.
ORS 98.308 is amended to read:
98.308. (1) Any demand,
savings or matured time deposit with a financial institution, including a
deposit that is automatically renewable, and any funds paid toward the purchase
of a share, mutual investment certificate or any other interest in a financial
institution is presumed abandoned unless the owner, within [five] three years, has
done one or more of the following:
(a) In the case of a
deposit, increased or decreased its amount or presented the passbook or other
similar evidence of the deposit for the crediting of interest.
(b) Communicated in
writing with the financial institution concerning the property.
(c) Otherwise indicated
an interest in the property as evidenced by a memorandum or other record on
file prepared by an employee of the financial institution.
(d) Owned other property
to which paragraph (a), (b) or (c) of this subsection applies, and the
financial institution has communicated in writing with the owner with regard to
the property that would otherwise be presumed abandoned under this subsection
at the address to which communications regarding the other property regularly
are sent.
(e) Had another
relationship with the financial institution concerning which the owner has:
(A) Communicated in
writing with the financial institution; or
(B) Otherwise indicated
an interest as evidenced by a memorandum or other record on file prepared by an
employee of the financial institution, and the financial institution has
communicated in writing with the owner with regard to the property that would
otherwise be abandoned under this subsection at the address to which
communications regarding the other relationship regularly are sent.
[(2) For purposes of subsection (1) of this section “property” includes
interest and dividends.]
[(3)] (2) With respect to property described in subsection
(1) of this section, a holder may not impose any charge or cease payment of
interest due to dormancy or inactivity unless:
(a) There is a written
contractual agreement between the holder and the owner of the account clearly
and prominently setting forth the conditions under which a service charge may
be imposed or the payment of interest terminated;
(b) The establishment of
a service charge, the change of an existing service charge or the change of a
policy pertaining to the payment of interest is uniformly applied to all
dormant or inactive accounts;
(c) The holder [shall give] gives written notice
to the owner at the owner’s last-known address whenever an account becomes
dormant or inactive; and
(d) Three months’
written notice is given by [certified]
first class mail to the last-known address of the owner of a dormant or
inactive account before the holder [may
apply] applies a service charge to that account or [stop] stops paying interest on
that account.
[(4)] (3) A signature card is not a written contractual
agreement for the purposes of subsection [(3)(a)]
(2)(a) of this section[,].
However, [the] a signature
card and [the] a written
contractual agreement may be contained in one instrument.
[(5)] (4) Property described in subsection (1) of this
section that is automatically renewable is matured for purposes of subsection
(1) of this section upon the expiration of its initial time period. However, if
the owner consents to a renewal at or about the time of renewal [by communicating in writing with the
financial institution or otherwise indicating consent as evidenced by a
memorandum or other record on file prepared by an employee of the institution],
the property is matured upon the expiration of the last time period for which
consent was given. [If the delivery of
funds or property required by ORS 98.352 would result in a penalty or
forfeiture in the payment of interest from the delivery of the funds or
property, the delivery may be delayed until the time when no penalty or
forfeiture would result.] The owner shall be deemed to have consented to
a renewal if:
(a) The owner
communicates in writing with the financial institution or otherwise indicates
consent as evidenced by a memorandum or other record on file prepared by an
employee of the institution; or
(b) The financial
institution has sent an account statement or other written or electronic
statement pertaining to the account by first class mail or by electronic mail
and the statement has not been returned to the financial institution and the
financial institution has not been notified that the statement was
undeliverable as addressed.
(5) If the delivery of
funds or property required by ORS 98.352 would result in a penalty or
forfeiture in the payment of interest from the delivery of the funds or
property, the delivery may be delayed until the time when no penalty or
forfeiture would result.
(6) Except for those
instruments subject to ORS 98.309, any sum payable on a check, draft or similar
instrument, on which a financial institution is directly liable, including a
cashier’s check and a certified check, which has been outstanding for more than
[five] three years after it
was payable or after its issuance if payable on demand, is presumed abandoned,
unless the owner, within [five]
three years, has communicated in writing with the financial institution
concerning it or otherwise indicated an interest as evidenced by a memorandum
or other record on file prepared by an employee thereof.
(7) A holder may not
deduct from the amount of any instrument subject to [subsections (6) and (7)] subsection (6) of this section any
charge imposed by reason of the failure to present the instrument for payment
unless:
(a) There is a
valid and enforceable written contract between the holder and the owner of the
instrument pursuant to which the holder may impose a charge[, and];
(b) The holder
regularly imposes such charges; and
(c) The holder
does not regularly reverse or otherwise cancel [them] the charges.
(8) For purposes of
subsection (1) of this section, “property” includes interest and dividends.
SECTION 2.
ORS 98.311 is amended to read:
98.311. Notwithstanding
the provisions in ORS 98.308, a holder may not deduct a service charge or fee
or otherwise reduce an owner’s unclaimed account unless:
(1) There is a valid
written contract between the holder and the owner that allows the holder to
impose a charge;
(2) The service charge
or fee is imposed uniformly on all accounts; and
(3) Three months’
written notice is given by [certified]
first class mail to the last-known address of all owners before the
charge or fee is levied.
SECTION 3.
ORS 98.314 is amended to read:
98.314. (1) Funds held
or owing under any life or endowment insurance policy or annuity contract that
has matured or terminated are presumed abandoned if unclaimed for more than [five] three years after the funds
become due and payable as established from the records of the insurance company
holding or owing the funds, but property described in subsection (3)(b)(A) of
this section is presumed abandoned if unclaimed for more than two years.
(2) If a person other
than the insured or annuitant is entitled to the funds and an address of the
person is not known to the company or it is not definite and certain from the
records of the company who is entitled to the funds, it is presumed that the
address of the person entitled to the funds is the same as the last-known
address of the insured or annuitant according to the records of the company.
(3) For purposes of ORS
98.302 to 98.436 and 98.992, a life or endowment insurance policy or annuity
contract not matured by actual proof of the death of the insured or annuitant
according to the records of the company is matured and the proceeds due and
payable if:
(a) The company knows
that the insured or annuitant has died; or
(b) All of the following
are true:
(A) The insured has
attained, or would have attained if living, the limiting age under the
mortality table on which the reserve is based.
(B) The policy was in
force at the time the insured attained, or would have attained, the limiting
age specified in subparagraph (A) of this paragraph.
(C) Neither the insured
nor any other person appearing to have an interest in the policy within the
preceding two years, according to the records of the company, has assigned,
readjusted or paid premiums on the policy, subjected the policy to a loan,
corresponded in writing with the company concerning the policy, or otherwise
indicated an interest as evidenced by a memorandum or other record on file
prepared by an employee of the company.
(4) For purposes of ORS
98.302 to 98.436 and 98.992, the application of an automatic premium loan
provision or other nonforfeiture provision contained in an insurance policy
does not prevent a policy from being matured or terminated under subsection (1)
of this section if the insured has died or the insured or the beneficiary of
the policy otherwise has become entitled to the proceeds of the policy before
the depletion of the cash surrender value of a policy by the application of
those provisions.
(5) If the laws of this
state or the terms of the life insurance policy require the company to give
notice to the insured or owner that an automatic premium loan provision or
other nonforfeiture provision has been exercised and the notice, given to an
insured or owner whose last-known address according to the records of the
company is in this state, is undeliverable, the company shall make a reasonable
search to ascertain the policyholder’s correct address to which the notice must
be mailed.
(6) Notwithstanding any
other provision of law, if the company learns of the death of the insured or
annuitant and the beneficiary has not communicated with the insurer within four
months after the death, the company shall take reasonable steps to pay the
proceeds to the beneficiary.
(7) Commencing two years
after August 3, 1983, every change of beneficiary form issued by an insurance
company under any life or endowment insurance policy or annuity contract to an
insured or owner who is a resident of this state must request the following
information:
(a) The name of each
beneficiary, or if a class of beneficiaries is named, the name of each current
beneficiary in the class;
(b) The address of each
beneficiary; and
(c) The relationship of
each beneficiary to the insured.
SECTION 4.
ORS 98.322 is amended to read:
98.322. (1) Stock,
certificates of ownership or other intangible equity ownership interests in a
business association are presumed abandoned when all of the following occur:
(a) The interest is
evidenced by records of the business association.
(b) A dividend,
distribution or other sum payable as a result of the interest has remained
unclaimed for [five] three
years.
(c) The owner has not
otherwise communicated with the business association for [five] three years from the date the sum was payable.
(d) The business
association has sent written notice of the payment and underlying interest to
the owner at the last-known address of the owner as shown in the records of the
business association.
(2) With respect to any
interest presumed abandoned under subsection (1) of this section, the business
association is the holder.
(3) At the time an
interest is presumed abandoned under subsection (1) of this section, any
payment then held for or owing to the owner as a result of the interest is also
presumed abandoned.
(4) Subsection (1) of
this section shall not apply to any stock, certificate of ownership or other
intangible equity ownership interests in a business association that provides
for the automatic reinvestment of dividends, distributions or other sums
payable as a result of the interests, unless:
(a) The records of the
business association show that the person also owns any stock, certificate of
ownership or other intangible equity ownership interest in the business
association that is not enrolled in the reinvestment plan; and
(b) The interest
referred to in paragraph (a) of this subsection has been presumed abandoned under
subsection (1) of this section.
(5) Any dividend, profit
distribution, interest, payment on principal or other sum held or owing by a
business association is presumed abandoned if, within [five] three years after the date prescribed for payment, all
of the following have occurred:
(a) The owner has not
claimed the payment or corresponded in writing with the business association
concerning the payment.
(b) The business
association has sent written notice of the payment to the owner at the
last-known address of the owner as shown in the records of the business
association.
SECTION 5. ORS
98.311 is added to and made a part of ORS 98.308 to 98.314.
SECTION 6. The
amendments to ORS 98.308, 98.311, 98.314 and 98.322 by sections 1 to 4 of this
2007 Act apply to unclaimed property held by financial institutions or other
holders before, on or after the effective date of this 2007 Act.
Approved by the Governor June 22, 2007
Filed in the office of Secretary of State June 27, 2007
Effective date January 1, 2008
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