South Carolina General Assembly
117th Session, 2007-2008

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Bill 741

Indicates Matter Stricken
Indicates New Matter


(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

Indicates Matter Stricken

Indicates New Matter

COMMITTEE REPORT

March 26, 2008

S. 741

Introduced by Senator Courson

S. Printed 3/26/08--H.

Read the first time February 7, 2008.

            

THE COMMITTEE ON JUDICIARY

To whom was referred a Bill (S. 741) to amend Chapter 18, Title 27 of the 1976 Code, relating to the Uniform Unclaimed Property Act, to reduce the dormancy period for securities from seven years to three years, etc., respectfully

REPORT:

That they have duly and carefully considered the same and recommend that the same do pass:

JAMES H. HARRISON for Committee.

            

A BILL

TO AMEND CHAPTER 18, TITLE 27 OF THE 1976 CODE, RELATING TO THE UNIFORM UNCLAIMED PROPERTY ACT, TO REDUCE THE DORMANCY PERIOD FOR SECURITIES FROM SEVEN YEARS TO THREE YEARS, TO UPDATE A REFERENCE, AND TO ELIMINATE THE REQUIREMENT OF A CIVIL PENALTY FOR A PERSON WHO FAILS TO RENDER A REPORT, PERFORM A DUTY, OR DELIVER PROPERTY AS REQUIRED PURSUANT TO THIS CHAPTER.

Amend Title To Conform

Be it enacted by the General Assembly of the State of South Carolina:

SECTION    1.    Section 27-18-110 of the 1976 Code is amended to read:

"Section 27-18-110.    (A)    Except as provided in subsections (B) and (E), stock or other intangible ownership interest in a business association, the existence of which is evidenced by records available to the association, is presumed abandoned and, with respect to the interest, the association is the holder, if a dividend, distribution, or other sum payable as a result of the interest has remained unclaimed by the owner for seven years and the owner within seven years has not:

(1)    communicated in writing with the association regarding the interest or a dividend, distribution, or other sum payable as a result of the interest; or

(2)    otherwise communicated with the association regarding the interest or a dividend, distribution, or other sum payable as a result of the interest, as evidenced by a memorandum or other record on file with the association prepared by an employee of the association.

(B)    At the expiration of a seven-year period following the failure of the owner to claim a dividend, distribution, or other sum payable to the owner as a result of the interest, the interest is not presumed abandoned unless there have been at least seven dividends, distributions, or other sums paid during the period, none of which has been claimed by the owner. If seven dividends, distributions, or other sums are paid during the seven-year period, the period leading to a presumption of abandonment commences on the date payment of the first such unclaimed dividend, distribution, or other sums not paid during the presumptive period, the period continues to run until there have been seven dividends, distributions, or other sums that have not been claimed by the owner.

(C)    The running of the seven-year period of abandonment ceases immediately upon the occurrence of a communication referred to in subsection (A). If any future dividend, distribution, or other sum payable to the owner as a result of the interest is subsequently not claimed by the owner, a new period of abandonment commences and relates back to the time a subsequent dividend, distribution, or other sum became due and payable.

(D)    At the time an interest is presumed abandoned under this section, any dividend, distribution, or other sum then held for or owing to the owner as a result of the interest, and not previously presumed abandoned, is presumed abandoned.

(E)    This chapter does not apply to any stock or other intangible ownership interest enrolled in a plan that provides for the automatic reinvestment of dividends, distributions, or other sums payable as a result of the interest unless the records available to the administrator of the plan show, with respect to any intangible ownership interest not enrolled in the reinvestment plan, that the owner has not within seven years communicated in any manner described in subsection (A).

(A)    Stock or other equity interest in a business association is presumed unclaimed three years after the earliest of:

(1)    the date of the most recent dividend, stock split, or other distribution unclaimed by the apparent owner;

(2)    the date of a statement of account or other notificiation or communication that was returned as undeliverable; or

(3)    the date the holder discontinued mailings, notifications, or communications to the apparent owner.

(B)    Unmatured or unredeemed debt, other than a bearer bond or an original-issue discount bond, is presumed unclaimed three years after the date of the most recent interest payment unclaimed by the owner.

(C)    Matured or redeemed debt is presumed unclaimed three years after the date of maturity or redemption.

(D)    At the time property is presumed unclaimed pursuant to subsection (A) or (B), any other property right accrued or accruing to the owner as a result of the property interest and not previously presumed unclaimed is also presumed unclaimed.

(E)    The running of the three-year period ceases if the person:

(1)(a)    communicates in writing with the association or its agent regarding the interest or a dividend, distribution, or other sum payable as a result of the interest; or

(b)    otherwise communicates with the association regarding the interest or a dividend, distribution, or other sum payable as a result of the interest, as evidenced by a memorandum or other record on file with the association or its agent; or

(2)    presents an instrument issued to pay interest or a dividend or other cash distribution. If a future dividend, distribution, or other sum payable to the owner as a result of the interest is subsequently not claimed by the owner, a new period in which the property is presumed unclaimed commences and relates back only to the time a subsequent dividend, distribution, or other sum became due and payable.

(F)    At the same time any interest is presumed unclaimed under this section, a dividend, distribution, or other sum then held for or owing to the owner as a result of the interest, is presumed unclaimed."

SECTION    2.    Section 27-18-250(C) of the 1976 Code is amended to read:

"(C)    If a claim is allowed, the administrator shall pay over or deliver to the claimant the property or the amount the administrator actually received or the net proceeds if it has been sold by the administrator together with any additional amount required by Section 27-18-220. If the claim is for property presumed abandoned under Section 27-18-110 which was sold by the administrator within three years after the date of delivery, the amount payable for that claim is the value of the property at the time the claim was made or the net proceeds of sale, whichever is greater. If the property claimed was interest-bearing to the owner on the date of surrender by the holder, the administrator also shall pay interest at a rate provided in Section 12-54-20 12-54-25 or any lesser rate the property earned while in the possession of the holder. Interest begins to accrue when the property is delivered to the administrator and ceases on the earlier of the expiration of ten years after delivery or the date on which payment is made to the owner. No interest on interest-bearing property is payable for any period before the effective date of this chapter."

SECTION    3.    Section 27-18-350(B) and (C) of the 1976 Code are amended to read:

"(B)    A person who fails to render any report or perform other duties required under pursuant to this chapter shall may be required to pay a civil penalty of one hundred dollars for each day the report is withheld or the duty is not performed, but not more than five thousand dollars.

(C)    A person who fails to pay or deliver property to the administrator as required under pursuant to this chapter shall may be required to pay a civil penalty equal to twenty-five percent of the value of the property that should have been paid or delivered."

SECTION    4.    This act takes effect upon approval by the Governor.

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