§1953. Presumptions of abandonment
1. Presumptive abandonment periods.
Property is presumed abandoned if it is unclaimed by the apparent owner during the
times, as follows for the particular property:
A. A traveler's check, 15 years after issuance; [1997, c. 508, Pt. A, §2 (NEW); 1997, c. 508, Pt. A, §3 (AFF).]
B. A money order, 7 years after issuance; [1997, c. 508, Pt. A, §2 (NEW); 1997, c. 508, Pt. A, §3 (AFF).]
C. Stock or other equity interest in a business association or financial organization,
including a security entitlement under Title 11, Article 8, except for property described
in paragraph Q, 3 years after the earlier of:
(1) The date of the most recent dividend, stock split or other distribution unclaimed
by the apparent owner; or
(2) The date of the 2nd mailing of a statement of account or other notification
or communication that was returned as undeliverable or after the holder discontinued
mailings, notifications or communications to the apparent owner; [2003, c. 20, Pt. T, §18 (AMD).]
D. A debt of a business association or financial organization, other than a bearer
bond or an original issue discount bond, 3 years after the date of the most recent
interest payment unclaimed by the apparent owner; [2003, c. 20, Pt. T, §19 (AMD).]
E. A demand, savings or time deposit 3 years after the earlier of maturity or the date
of the last indication by the owner of interest in the property. In the case of certain
types of deposits, the following rules apply:
(1) In the case of a time deposit that is automatically renewable and whose term
is longer than one year, at the date of maturity following the 5th renewal of the
deposit after the last indication of interest by the owner; and
(2) In the case of a deposit for the benefit of a minor, the later of 3 years after
the last indication of interest by the owner or the date on which the minor reaches
18 years of age; [2003, c. 20, Pt. T, §20 (AMD).]
F. Money or credits owed to a customer as a result of a retail business transaction,
3 years after the obligation accrued; [1997, c. 508, Pt. A, §2 (NEW); 1997, c. 508, Pt. A, §3 (AFF).]
G. A gift obligation or stored-value card, 2 years after December 31st of the year in
which the obligation or the most recent transaction involving the obligation or stored-value
card occurred, whichever is later, including the initial issuance and any subsequent
addition of value to the obligation or stored-value card.
(1) The amount unclaimed is 60% of the gift obligation's or stored-value card's face
value.
(2) A gift obligation or stored-value card sold on or after December 31, 2011 is
not presumed abandoned if the gift obligation or stored-value card was sold by a single
issuer who in the past calendar year sold no more than $250,000 in face value of gift
obligations or stored-value cards. Sales of gift obligations and stored-value cards
are considered sales by a single issuer if the sales were by businesses that operate
either:
(a) Under common ownership or control with another business or businesses in the State;
or
(b) As franchised outlets of a parent business.
(3) A period of limitation may not be imposed on the owner's right to redeem the
gift obligation or stored-value card.
(4) Notwithstanding section 1956, fees or charges may not be imposed on gift obligations
or stored-value cards, except that the issuer may charge a transaction fee for the
initial issuance and for each occurrence of adding value to an existing gift obligation
or stored-value card. These transaction fees must be disclosed in a separate writing
prior to the initial issuance or referenced on the gift obligation or stored-value
card.
(5) Beginning November 1, 2008, if the gift obligation or stored-value card is redeemed
in person and a balance of less than $5 remains following redemption, at the consumer's
request the merchant redeeming the gift obligation or stored-value card must refund
the balance in cash to the consumer. This subparagraph does not apply to a prepaid
telephone service card, a gift obligation or nonreloadable stored-value card with
an initial value of $5 or less or a stored-value card that is not purchased but provided
as a promotion or as a refund for merchandise returned without a receipt.
(6) This paragraph does not apply to prefunded bank cards; [RR 2011, c. 1, §48 (COR).]
G-1. A prefunded bank card, 3 years after December 31st of the year in which the obligation
or the most recent activity involving the prefunded bank card occurred, whichever
is later, including the initial issuance and any subsequent addition of value to the
prefunded bank card. A period of limitation may not be imposed on the owner's right
to redeem the prefunded bank card. Any terms and conditions must be disclosed in
a separate writing prior to the initial issuance and referenced on the prefunded bank
card; [2005, c. 357, §5 (NEW).]
H. The amount owed by an insurer on a life or endowment insurance policy or an annuity
that has matured or terminated, 3 years after the obligation to pay arose or, in the
case of a policy or annuity payable upon proof of death, 3 years after the insured
has attained, or would have attained if living, the limiting age under the mortality
table on which the reserve is based; [1997, c. 508, Pt. A, §2 (NEW); 1997, c. 508, Pt. A, §3 (AFF).]
I. Property distributable by a business association or financial organization in a
course of dissolution, one year after the property becomes distributable; [1997, c. 508, Pt. A, §2 (NEW); 1997, c. 508, Pt. A, §3 (AFF).]
J. Property received by a court as proceeds of a class action, and not distributed
pursuant to the judgment, one year after the distribution date; [1997, c. 508, Pt. A, §2 (NEW); 1997, c. 508, Pt. A, §3 (AFF).]
K. Property held by a court, government, governmental subdivision, agency or instrumentality,
one year after the property becomes distributable; [1997, c. 508, Pt. A, §2 (NEW); 1997, c. 508, Pt. A, §3 (AFF).]
L. Wages or other compensation for personal services, one year after the compensation
becomes payable; [1997, c. 508, Pt. A, §2 (NEW); 1997, c. 508, Pt. A, §3 (AFF).]
M. A deposit or refund owed to a subscriber by a utility or by a competitive electricity
provider, one year after the deposit or refund becomes payable; [1999, c. 657, §17 (AMD).]
N. Property in an individual retirement account, defined benefit plan or other account
or plan that is qualified for tax deferral under the income tax laws of the United
States, including property described in this subsection, 3 years after the earliest
of the date of the distribution or attempted distribution of the property, the date
of the required distribution as stated in the plan or trust agreement governing the
plan or the date, if determinable by the holder, specified in the income tax laws
of the United States by which distribution of the property must begin in order to
avoid a tax penalty; [1999, c. 284, §2 (AMD).]
O. All other property, 3 years after the owner's right to demand the property or after
the obligation to pay or distribute the property arises, whichever first occurs; [2003, c. 20, Pt. T, §22 (AMD).]
P. Notwithstanding paragraph E, property contained in a prearranged funeral or burial
plan described in Title 32, section 1401, including deposits containing funds from
such a plan, 3 years after the death of the person on whose behalf funds were paid
into the plan; [2015, c. 215, §2 (AMD).]
Q. Property distributable in the course of a demutualization or related reorganization
of an insurance company, 2 years after the earlier of:
(1) The date of the distribution of the property; or
(2) The date of last contact with a policyholder; and [2015, c. 215, §3 (AMD).]
R. A United States savings bond, as described in section 1954-B, 3 years after its date
of final maturity. [2015, c. 215, §4 (NEW).]
[
2007, c. 696, §1 (AMD);
2011, c. 433, §1 (AMD);
2015, c. 215, §§2-4 (AMD)
.]
2. All other property rights presumed abandoned.
At the time that an interest is presumed abandoned under subsection 1, any other
property right accrued or accruing to the owner as a result of the interest, and not
previously presumed abandoned, is also presumed abandoned.
[
1997, c. 508, Pt. A, §2 (NEW);
1997, c. 508, Pt. A, §3 (AFF)
.]
3. Unclaimed.
Property is unclaimed if, for the applicable period set forth in subsection 1, the
apparent owner has not communicated, in writing or by other means reflected in a contemporaneous
record prepared by or on behalf of the holder, with the holder concerning the property
or the account in which the property is held and has not otherwise indicated an interest
in the property. A communication with an owner by a person other than the holder
or the holder's representative who has not in writing identified the property to the
owner is not an indication of interest in the property by the owner.
[
1997, c. 508, Pt. A, §2 (NEW);
1997, c. 508, Pt. A, §3 (AFF)
.]
4. Indication of interest.
An indication of an owner's interest in property includes:
A. The presentment of a check or other instrument of payment of a dividend or other
distribution made with respect to an account or underlying stock or other interest
in a business association or financial organization or, in the case of a distribution
made by electronic or similar means, evidence that the distribution has been received; [1997, c. 508, Pt. A, §2 (NEW); 1997, c. 508, Pt. A, §3 (AFF).]
B. Owner-directed activity in the account in which the property is held, including
a direction by the owner to increase, decrease or change the amount or type of property
held in the account; [1997, c. 508, Pt. A, §2 (NEW); 1997, c. 508, Pt. A, §3 (AFF).]
C. The making of a deposit to or withdrawal from a bank account; [1999, c. 284, §4 (AMD).]
D. The payment of a premium with respect to a property interest in an insurance policy;
but the application of an automatic premium loan provision or other nonforfeiture
provision contained in an insurance policy does not prevent a policy from maturing
or terminating if the insured has died or the insured or the beneficiary of the policy
has otherwise become entitled to the proceeds before the depletion of the cash surrender
value of a policy by the application of those provisions; and [1999, c. 284, §4 (AMD).]
E. For deposits in which the apparent owner has another relationship or account with
the holder:
(1) The fact that the apparent owner has indicated an interest with respect to the
other relationships or accounts; or
(2) The fact that there is a memorandum or other record on file prepared by the
holder indicating that the holder has communicated in writing with the apparent owner
with regard to the deposit at the address to which communication regarding the other
relationships or deposits are regularly sent. [1999, c. 284, §5 (NEW).]
[
1999, c. 284, §§4, 5 (AMD)
.]
5. Payable or distributable.
Property is payable or distributable for purposes of this Act notwithstanding the
owner's failure to make demand or present an instrument or document otherwise required
to obtain payment.
[
1997, c. 508, Pt. A, §2 (NEW);
1997, c. 508, Pt. A, §3 (AFF)
.]
SECTION HISTORY
1997, c. 508, §A2 (NEW).
1997, c. 508, §A3 (AFF).
1999, c. 232, §1 (AMD).
1999, c. 284, §§1-5 (AMD).
1999, c. 657, §17 (AMD).
2001, c. 439, §§L1-4 (AMD).
2003, c. 20, §§T18-22 (AMD).
2003, c. 339, §2 (AMD).
2005, c. 12, §GG1 (AMD).
2005, c. 357, §§4,5 (AMD).
2007, c. 696, §1 (AMD).
RR 2011, c. 1, §48 (COR).
2011, c. 433, §1 (AMD).
2015, c. 215, §§2-4 (AMD).