74th OREGON LEGISLATIVE ASSEMBLY--2007 Regular Session
NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .
LC 423
A-Engrossed
House Bill 2104
Ordered by the House March 19
Including House Amendments dated March 19
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
Presession filed (at the request of Governor Theodore R.
Kulongoski for Department of State Lands)
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure.
Reduces dormancy period from five years to three years for
unclaimed property held by financial institutions, insurance
companies and intangible equity ownership interests. Changes
requirement that holder of unclaimed property provide notice by
certified mail to notice by first class mail prior to imposing
service charges, ceasing payment of interest or levying fees.
{ + Specifies conditions by which owner of property shall be
deemed to have consented to renewal of property upon expiration
of initial time period. + }
A BILL FOR AN ACT
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 Oregon:
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. + }
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