(1) Except as otherwise provided in this section, on filing a report under section 38-13-401, the holder shall pay or deliver to the administrator the property described in the report.
If property in a report under section 38-13-401 is an automatically renewable depositand a penalty or forfeiture in the payment of interest would result from paying the deposit to the administrator at the time of the report, the date for payment of the property to the administrator is extended until a penalty or forfeiture no longer would result from payment, if the holder informs the administrator of the extended date.
Tangible property in a safe-deposit box shall not be delivered to the administratoruntil one hundred twenty days after filing the report under section 38-13-401.
If property reported to the administrator under section 38-13-401 is a security, theadministrator may:
Make an endorsement, instruction, or entitlement order on behalf of the apparentowner to invoke the duty of the issuer, its transfer agent, or the securities intermediary to transfer the security; or
Dispose of the security under section 38-13-702.
If the holder of property reported to the administrator under section 38-13-401 is theissuer of a certificated security, the administrator may obtain a replacement certificate in physical or book-entry form under section 4-8-405. An indemnity bond is not required.
The administrator shall establish procedures for the registration, issuance, method ofdelivery, transfer, and maintenance of securities delivered to the administrator by a holder.
An issuer, holder, and transfer agent or other person acting under this section underinstructions of and on behalf of the issuer or holder is not liable to the apparent owner for, and shall be indemnified by the state against, a claim arising with respect to property after the property has been delivered to the administrator.
A holder is not required to deliver to the administrator a security identified by theholder as a nonfreely transferable security. If the administrator or holder determines that a security is no longer a nonfreely transferable security, the holder shall deliver the security on the next regular date prescribed for delivery of securities under this article 13. The holder shall make a determination annually whether a security identified in a report filed under section 38-13-401 as a nonfreely transferable security is no longer a nonfreely transferable security.
Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 431, § 1, effective July 1, 2020.
Effect of payment or delivery of property to administrator. On payment or delivery of property to the administrator under this article 13, the administrator as agent for the state assumes custody and responsibility for the safekeeping of the property. A holder that pays or delivers property to the administrator in good faith and that substantially complies with sections 38-13-501 and 38-13-502 is relieved of liability arising thereafter with respect to payment or delivery of the property to the administrator.
Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 432, § 1, effective July 1, 2020.
Recovery of property by holder from administrator. (1) A holder that pays money to the administrator under this article 13 may file a claim for reimbursement from the administrator of the amount paid if the holder:
Paid the money in error; or
After paying the money to the administrator, paid the money to a person the holderreasonably believed to be entitled to the money.
If a claim for reimbursement under subsection (1) of this section is made for a payment made on a negotiable instrument, including a traveler's check, money order, or similar instrument, the holder must submit proof that the instrument was presented and that payment was made to a person the holder reasonably believed to be entitled to payment. The holder may claim reimbursement even if the payment was made to a person whose claim was made after expiration of a period of limitation on the owner's right to receive or recover property, whether specified by contract, statute, or court order.
If a holder is reimbursed by the administrator under subsection (1)(b) of this section,the holder may also recover from the administrator income or gain under section 38-13-606 that would have been paid to the owner if the money had been claimed from the administrator by the owner to the extent the income or gain was paid by the holder to the owner.
(a) A holder that delivers property other than money to the administrator under this article 13 may file a claim for return of the property from the administrator if:
The holder delivered the property in error; or
The apparent owner has claimed the property from the holder.
(b) If a claim for return of property under subsection (4)(a) of this section is made, the holder shall include with the claim evidence sufficient to establish that the apparent owner has claimed the property from the holder or that the property was delivered by the holder to the administrator in error.
The administrator may determine that an affidavit submitted by a holder is evidencesufficient to establish that the holder is entitled to reimbursement or to recover property under this section.
A holder is not required to pay a fee or other charge for reimbursement or return ofproperty under this section.
Not later than ninety days after a claim is filed under subsection (1) or (4) of thissection, the administrator shall allow or deny the claim and give the claimant notice of the decision in a record. If the administrator does not take action on a claim during the ninety-day period, the claim is deemed denied.
The claimant may initiate a proceeding under the "State Administrative ProcedureAct", article 4 of title 24, for review of the administrator's decision or the deemed denial under subsection (7) of this section not later than:
Thirty days following receipt of the notice of the administrator's decision; or
One hundred twenty days following the filing of a claim under subsection (1) or (4) of this section in the case of a deemed denial under subsection (7) of this section.
Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 432, § 1, effective July 1, 2020.
Crediting income or gain to owner's account. If property other than money is delivered to the administrator, the owner is entitled to receive from the administrator income or gain realized or accrued on the property before the property is sold.
Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 434, § 1, effective July 1, 2020.
Administrator's options as to custody. (1) The administrator may decline to take custody of property reported under section 38-13-401 if the administrator determines that:
The property has a value less than the estimated expenses of notice and sale of theproperty; or
Taking custody of the property would be unlawful.
(2) A holder may pay or deliver property to the administrator before the property is presumed abandoned under this article 13 if the holder:
Sends the apparent owner of the property the notice or notices required by section 3813-501 and provides the administrator evidence of the holder's compliance with this subsection (2)(a);
Includes with the payment or delivery a report regarding the property conforming tosection 38-13-402; and
First obtains the administrator's consent in a record to accept payment or delivery.
A holder's request for the administrator's consent under subsection (2)(c) of this section must be in a record. If the administrator fails to respond to the request not later than thirty days after receipt of the request, the administrator is deemed to consent to the payment or delivery of the property and the payment or delivery is considered to have been made in good faith.
On payment or delivery of property under subsection (2) of this section, the propertyis presumed abandoned.
Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 434, § 1, effective July 1, 2020.