CHAPTER 330

An Act to amend the Code of Virginia by adding in Title 55 thereof a new
Chapter numbered 11.1, containing sections numbered 55-210.1 through
55-210.80, relating to the disposition of unclaimed personal property
and making uniform the law with reference thereto. '$ 119]

Approved March 17, 1960

Be it enacted by the General Assembly of Virginia:
1. That the Code of Virginia be amended by adding in Title 55 thereof
a new Chapter numbered 11.1 containing sections numbered 55-210.1
through 55-210.30 as follows:
Chapter 11.1
Disposition of Unclaimed Property
Article 1
Citation of Act and Definitions

§ 55-210.1. This chapter may be cited as “The Uniform Disposition
of Unclaimed Property Act’’.

§ 55-210.2. As used in this act, unless the context otherwise requires:

(a) “Banking organization” means any bank, trust company, savings
bank or a private banker engaged in business in this State, or a bank as
defined in § 6-6 of the Code of Virginia.

(b) “Business association” means any corporation (other than a
public corporation), joint stock company, business trust, partnership, or
any association for business purposes of two or more individuals.

(c) “Financial organization” means any savings and loan association,
building and loan association, credit union, or investment company, en-
gaged in business in this State.

(d) “Holder” means any person in possession of property subject
to this act belonging to another, or who is trustee in case of a trust, or is
indebted to another on an obligation subject to this act.
_ (e) “Life insurance corporation” means any association or corpora-
tion transacting within this State the business of insurance on the lives
of persons or insurance appertaining thereto, including, but not by way
of limitation, endowments and annuities.

_ (£) “Owner” means a depositor in case of a deposit, a beneficiary
in case of a trust, a creditor, claimant, or payee in case of other choses in
action, or any person having a legal or equitable interest in property sub-
ject to this act, or his legal representative.

(g) “Person” means any individual, business association, govern-
ment or political subdivision, public corporation, public authority, estate,
trust, two or more persons having a joint or common interest, or any other
legal or commercial entity.

(h) “Utility” means any person who owns or operates within this
State, for public use, any plant, equipment, property, franchise, or license
for the transmission of communications or the production, storage, trans-
mission, sale, delivery, or furnishing of electricity, water, steam, or gas.

Article 2

Property Abandoned or Presumed Abandoned

§ 55-210.3. The following property held or owing by a banking
or financial organization is presumed abandoned:

(a) Any demand, savings, or matured time deposit made in this
State with a banking organization, together with any interest or dividend
thereon, excluding any charges that may lawfully be withheld, unless
the owner has, within seventeen years:

(1) Increased or decreased the amount of the deposit, or presented
the passbook or other similar evidence of the deposit for the crediting
of interest; or

(2) Corresponded in writing with the banking organization con-
cerning the deposit; or

Otherwise indicated an interest in the deposit as evidenced by
a memorandum on file with the banking organization.

(b) Any funds paid in this State toward the purchase of shares or
other interest in a financial organization or any deposit made therewith
in this State, and any interest or dividends thereon, excluding any charges
that may lawfully be withheld, unless the owner has within seventeen
years:

(1) Increased or decreased the amount of the funds or deposit, or
presented an appropriate record for the crediting of interest or divid-
ends; or

(2) Corresponded in writing with the financial organization con-
cerning the funds or deposits; or

(8) Otherwise indicated an interest in the funds or deposit as
evidenced by a memorandum on file with the financial organization.

(c) Any sum payable on checks certified in this State or on written
instruments issued in this State on which a banking or financial organi-
zation is directly liable, including, by way of illustration but not of
limitation, certificates of deposit, drafts and traveler’s checks, that has
been outstanding for more than seventeen years from the date it was pay-
able, or from the date of its issuance if payable on demand, unless the
owner has within seventeen years corresponded in writing with the bank-
ing or financial organization concerning it, or otherwise indicated an
interest as evidenced by a memorandum on file with the banking or finan-
cial organization.

(d) Any funds or other personal property, tangible or intangible,
removed from a safe deposit box or any other safe-keeping repository in
this State on which the lease or rental period has expired due to nonpay-
ment of rental charges or other reason, or any surplus amounts arising
from the sale thereof pursuant to law, that have been unclaimed by the
owner for more than seventeen years from the date on which the lease or
rental period expired.

§ 55-210.4. (a) Unclaimed funds, as defined in this section, held
and owing by a life insurance corporation shall be presumed abandoned
if the last known address, according to the records of the corporation, of
the person entitled to the funds is within this State. If a person other than
the insured or annuitant is entitled to the funds and no address of such
person is known to the corporation or if it is not definite and certain from
the records of the corporation what person is entitled to the funds, it is
presumed that the last known address of the person entitled to the funds
is the same as the last known address of the insured or annuitant ac-
cording to the records of the corporation.

(b) “Unclaimed funds,” as used in this section, means all moneys
held and owing by any life insurance corporation unclaimed and unpaid
for more than seven years after the moneys became due and payable
as established from the records of the corporation under any life or en-
dowment insurance policy or annuity contract which has matured or
terminated. A life insurance policy not matured by actual proof of the
death of the insured is deemed to be matured and the proceeds thereof
are deemed to be due and payable if such policy was in force when the in-
sured attained the limiting age under the mortality table on which the
reserve is based, unless the person appearing entitled thereto has within
the preceding seven years, (1) assigned, readjusted, or paid premiums on
the policy, or subject the policy to loan, or (2) corresponded in writing
with the life insurance corporation concerning the policy. Moneys other-
wise payable according to the records of the corporation are deemed due
and payable although the policy or contract has not been surrendered as
required.

§ 55-210.5. The following funds held or owing by any utility are
presumed abandoned:

(a) Any deposit made by a subscriber with a utility subsequent to 1951
to secure payment for, or any sum paid in advance for, utility services to be
furnished in this State, less any lawful deductions, that has remained un-
claimed by the person appearing on the records of the utility entitled
thereto for more than seven years after the termination of the services
for which the deposit or advance payment was made.

(b) Any sum which a utility has been ordered to refund and which
was received for utility services rendered in this State, together with any
interest thereon, less any lawful deductions, that has remained unclaimed
by the person appearing on the records of the utility entitled thereto for
more than seven years after the date it became payable in accordance
with the final determination or order providing for the refund.

§ 55-210.6. 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 corre-
sponded in writing with the business association concerning it, within
seven years after the date prescribed for payment or delivery, is pre-
sumed abandoned if:

(a) It is held or owing by a business association organized under the
laws of or created in this State; or

(b) 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.
§ 55-210.7. All intangible personal property distributable in the
course of a voluntary dissolution of a business association, banking or-
ganization, or financial organization organized under the laws of or
created in this State, that is unclaimed by the owner within two years
after the date for final distribution, is presumed abandoned.

§ 55-210.8. All intangible personal property and any income or in-
crement thereon, held in a fiduciary capacity for the benefit of another
person is presumed abandoned unless the owner has, within seven years
after it becomes payable or distributable, increased or decreased the
principal, accepted payment of principal or income, corresponded in writ-
ing concerning the property, or otherwise indicated an interest as evidenced
by a memorandum on file with the fiduciary:

(a) If the property is held by a banking organization or a financial
organization, or by a business association organized under the laws of or
created in this State; or

(b) If it is held 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 per-
son entitled thereto is in this State; or

(c) If it is held in this State by any other person.

§ 55-210.9. All intangible personal property held for the owner by
any State or federal court, public corporation, public authority, or public
officer in this State, or a political subdivision thereof, that has remained
unclaimed by the owner for more than seven years is presumed abandoned,
provided, however, that this provision shall in no way affect the laws of
this State relating to such property in the custody or control of any State
court or on deposit or that may be deposited in a bank or other depository
to the credit of any court in any cause, and provided further that if any
federal statute provides for the distribution of any unclaimed property
subject to the jurisdiction of a federal court, this statute shall not apply.

§ 55-210.10. All intangible personal property, not otherwise covered
by this act, including any income or increment thereon and deducting any
lawful charges, that is held or owing in this State in the ordinary course
of the holder’s business and has remained unclaimed by the owner for
more than seven years after it became payable or distributable is presumed

abandoned.
ARTICLE 3

Reciprocity for Property Presumed Abandoned or Escheated Under
the Laws of Another State

§ 55-210.11. If specific property which is subject to the provisions of
§§ 55-210.8, 55-210.6, 55-210.7, 55-210.8 and 55-210.10 is held for or owed
or distributable to an owner whose last known address is in another state
by a holder who is subject to the jurisdiction of that state, the specific
property is not presumed abandoned in this State and subject to this act if:

(a) It may be claimed as abandoned or escheated under the laws of
such other state; and

(b) The laws of such other state make reciprocal provision that similar
specific property is not presumed abandoned or escheatable by such other
state when held for or owed or distributable to an owner whose last known
address is within this State by a holder who is subject to the jurisdiction

of this State.
ARTICLE 4
Procedural and Administrative Matters
§ 55-210.12. (a) Every person holding funds or other property,
tangible or intangible, presumed abandoned under this act shall report
to the State Treasurer with respect to the property as hereinafter pro-
vided.
(b) The report shall be verified and shall include:

(1) the name, if known, and last known address, if any, of each per-
son appearing from the records of the holder to be the owner of any
property of the value of fifty dollars or more presumed abandoned under
this act;

(2) In case of unclaimed funds of life insurance corporations, the
full name of the insured or annuitant and his last known address accord-
ing to the life insurance corporation’s records;

(3) The nature and identifying number, if any, or description of the
property and the amount appearing from the records to be due, except that
items of value under fifty dollars each may be reported in aggregate;

(4) The date when the property became payable, demandable, or
returnable, and the date of the last transaction with the owner with
respect to the property; and

(5) Other information which the State Treasurer prescribes by rule
as necessary for the administration of this act.

(c) If the person holding property presumed abandoned is a successor
to other persons who previously held the property for the owner, or if the
holder has changed his name while holding the property, he shall file with
his report all prior known names and addresses of each holder of the
property.

(d) The report shall be filed before November one of each year as of
June thirty next preceding, but the report of life insurance corporations
shall be filed before May one of each year as of December thirty-one next
preceding. The State Treasurer may postpone the reporting date upon
written request by any person required to file a report.

(e) If the holder of property presumed abandoned under this act
knows the whereabouts of the owner and if the owner’s claim has not been
barred by the statute of limitations, the holder shall, before filing the
annual report, communicate with the owner and take necessary steps to
prevent abandonment from being presumed. The holder shall exercise
due diligence to ascertain the whereabouts of the owner.

(f) Verification, if made by a partnership, shall be executed by a part-
ner; if made by an unincorporated association or private corporation, by
an officer; and if made by a public corporation, by its chief fiscal officer.

(zg) The initial report filed under this act shall include all items of
property that would have been presumed abandoned if this act had been in
effect during the ten year period preceding its effective date.

§ 55-210.13. (a) Within one hundred twenty days from the filing of
the report required by § 55-210.12, the State Treasurer shall cause notice
to be published at least once each week for two successive weeks in an Eng-
lish language newspaper of general circulation in the county or city in this
State in which is located the last known address of any person to be
named in the notice. If no address is listed or if the address is outside
this State, the notice shall be published in the county or city in which the
holder of the abandoned property has his principal place of business within
this State.

(b) The published notice shall be entitled ‘“Notice of Names of Persons
Appearing to be Owners of Abandoned Property,” and shall contain:

(1) The names in alphabetical order and last known addresses, if any,
of persons listed in the report and entitled to notice within the county as
hereinbefore specified.

(2) A statement that information concerning the amount or descrip-
tion of the property and the name and address of the holder may be
obtained by any persons possessing an interest in the property by address-
ing an inquiry to the State Treasurer.

(3) A statement that if proof of claim is not presented by the owner
to the holder and if the owner’s right to receive the property is not
established to the holder’s satisfaction within sixty-five days from the
date of the second published notice, the abandoned property will be placed
not later than eighty-five days after such publication date in the custody
or the deal Treasurer to whom all further claims must thereafter be
irected.

(c) The State Treasurer is not required to publish in such notice any
item of less than twenty-five dollars unless he deems such publication to be
in the public interest.

(d) Within one hundred twenty days from receipt of the report
required by § 55-210.12, the State Treasurer shall mail a notice to each
person having an address listed therein who appears to be entitled to
property of the value of twenty-five dollars or more presumed abandoned
under this act.

(e) The mailed notice shall contain:

(1) A statement that, according to a report filed with the State
Treasurer, property is being held to which the addressee appears entitled.

(2) The name and address of the person holding the property and
any necessary information regarding changes of name and address of
the holder.

(3) A statement that, if satisfactory proof of claim is not presented
by the owner to the holder by the date specified in the published notice,
the property will be placed in the custody of the State Treasurer to whom
all further claim must be directed.

§ 55-210.14. Every person who has filed a report as provided by
§ 55-210.12 shall within twenty days after the time specified in § 55-210.13
for claiming the property from the holder pay or deliver to the State
Treasurer all abandoned property specified in the report, except that, if
the owner establishes his right to receive the abandoned property to the
satisfaction of the holder within the time specified in § 55-210.13, or if it
appears that for some other reason the presumption of abandonment is
erroneous, the holder need not pay or deliver the property, which will no
longer be presumed abandoned, to the State Treasurer, but in lieu thereof
shall file a verified written explanation of the proof of claim or of the
error in the presumption of abandonment.

§ 55-210.15. Upon the payment or delivery of abandoned property
to the State Treasurer, the State shall assume custody and shall be re-
sponsible for the safekeeping thereof. Any person who pays or delivers
abandoned property to the State Treasurer under this act is relieved of all
liability to the extent of the value of the property so paid or delivered
for any claim which then exists or which thereafter may arise or be made
in respect to the property. Any holder who has paid moneys to the State
Treasurer pursuant to this act may make payment to any person appearing
to such holder to be entitled thereto, and upon proof of such payment and
proof that the payee was entitled thereto, the State Treasurer shall forth-
with reimburse the holder for the payment.

§ 55-210.16. When property is paid or delivered to the State Treas-
urer under this act, the owner is not entitled to receive income or other
increments accruing thereafter.

§ 55-210.17. The expiration of any period of time specified by statute
or court order, during which an action or proceeding may be commenced
or enforced to obtain payment of a claim for money or recovery of property,
shall not prevent the money or property from being presumed abandoned
property, nor affect any duty to file a report required by this act or to pay
or deliver abandoned property to the State Treasurer.

§ 55-210.18. (a) All abandoned property other than money delivered
to the State Treasurer under this act shall within one year after the
delivery be sold by him to the highest bidder at public sale in whatever city
in the State affords in his judgment the most favorable market for the
property involved. The State Treasurer may decline the highest bid and
reoffer the property for sale if he considers the price bid insufficient. He
need not offer any property for sale if, in his opinion, the probable cost of
sale exceeds the value of the property.

(b) Any sale held under this section shall be preceded by a single
publication of notice thereof, at least three weeks in advance of sale in
an English language newspaper of general circulation in the county or
city where the property is to be sold.

_ (ce) The purchaser at any sale conducted by the State Treasurer pur-
suant to this act shall receive title to the property purchased, free from
all claims of the owner or prior holder thereof and of all persons claiming
through or under them. The State Treasurer shall execute all documents
necessary to complete the transfer of title.

§ 55-210.19. (a) All funds received under this act, including the
proceeds from the sale of abandoned property under § 55-210.18, shall
forthwith be deposited by the State Treasurer in the Literary Fund of
the State, except that the State Treasurer shall retain in a separate trust
fund an amount not exceeding twenty-five thousand dollars from which
he shall make prompt payment of claims duly allowed by him as herein-
after provided. Before making the deposit he shall record the name and
last known address of each person appearing from the holders’ reports
to be entitled to the abandoned property and of the name and last known
address of each insured person or annuitant, and with respect to each
policy or contract listed in the report of a life insurance corporation, its
number, the name of the corporation, and the amount due. The record
shall be available for public inspection at all reasonable business hours.

(b) Before making any deposit to the credit of the Literary Fund
the State Treasurer may deduct: (1) any costs in connection with sale of
abandoned property, (2) any costs of mailing and publication in connec-
tion with any abandoned property, and (3) reasonable service charges.

§ 55-210.20. Any person claiming an interest in any property de-
livered to the State under this act may file a claim thereto or to the pro-
ceeds from the sale thereof on the form prescribed by the State Treasurer.

§ 55-210.21. The State Treasurer shall consider any claim filed under
this act and may hold a hearing and receive evidence concerning it. If a
hearing is held, he shall prepare a finding and a decision in writing on each
claim filed, stating the substance of any evidence heard by him and the
reasons for his decision. The decision shall be a public record.

(b) If the claim is allowed, the State Treasurer shall make payment
forthwith. The claim shall be paid without deduction for costs of notices
or sale or for service charges.

§ 55-210.22. Any person aggrieved by a decision of the State Treas-
urer or as to whose claim the State Treasurer has failed to act within
ninety days after the filing of the claim, may commence an action in the
circuit or corporation court of the county or city wherein the property
claimed is situated to establish his claim. The proceeding shall be brought
within ninety days after the decision of the State Treasurer or within
one hundred eighty days from the filing of the claim if the State Treas-
urer fails to act.

§ 55-210.23. The State Treasurer, after receiving reports of prop-
erty deemed abandoned pursuant to this act, may decline to receive any
property reported which he deems to have a value less than the cost of
giving notice and holding sale, or he may, if he deems it desirable because
of the small sum involved, postpone taking possession until a sufficient
sum accumulates. Unless the holder of the property is notified to the
contrary within one hundred twenty days after filing the report required
under § 55-210.12, the State Treasurer shall be deemed to have elected to
receive the custody of the property.

§ 55-210.24. The State Treasurer may at reasonable times and upon
reasonable notice examine the records of any person if he has reason to
believe that such person has failed to report property that should have
been reported pursuant to this act.

§ 55-210.25. If any person refuses to deliver property to the State
Treasurer as required under this act, he shall bring an action in a court
of appropriate jurisdiction to enforce such delivery.

§ 55-210.26. (a) Any person who wilfully fails to render any re-
port or perform other duties required under this act, shall be punished by
a fine of one hunded dollars for each day such report is withheld.

(b) Any person who wilfully refuses to pay or deliver abandoned
property to the State Treasurer as required under this act shall be pun-
ished by a fine of not less than one hunded dollars or imprisonment for
not more than one month, or both, in the discretion of the court.

§ 55-210.27. The State Treasurer may make necessary rules and
regulations to carry out the provisions of this act.

§ 55-210.28. This act shall not apply to any property that has been
presumed abandoned or escheated under the laws of another state prior
to the effective date of this act.

§ 55-210.29. If any provision of this act or the application thereof
to any person or circumstances is held invalid, the invalidity shall not
affect other provisions or applications of the act which can be given effect
without the invalid provision or application, and to this end the provi-
sions of this act are severable.

§ 55-210.30. This act shall be so construed as to effectuate its gen-
eral purpose to make uniform the law of those states which enact it.

2. This act shall take effect on January one, nineteen hundred sixty-one.