MICHIGAN STATUTORY SUMMARY

Transcription

1 0001 [ST: MI-3] [ED: MI-11] [REL: 50] (Beg Group) Composed: Tue Jun 23 15:28:14 EDT 2009 MI-3 Michigan MICHIGAN STATUTORY SUMMARY TYPE OF STATUTE: Version of 1981 Uniform Act; Custodial Escheat Law Statutory Citation: Disposition of Unclaimed Property Act, et seq. 1. Must holder be doing business in state: a. Banking and financial organization. No, (h). b. Business association (dividends, stock, etc.). No, (h). c. Life insurance company. No, (h). 2. Date report due: a. Life insurance company. November 1, (4). b. All others. November 1, (4). 3. Date payment due: a. Life insurance company. November 1, (1). b. All others. November 1, (1). c. Exceptions. None. 4. Report period: a. Life insurance company. June 30, (4). b. All others. June 30, (4). 5. Negative report required. Yes, (1). 6. Turnover prior to expiration of abandonment period. Yes, (2). 7. Aggregation amount: a. Amount. $50, (2)(d). b. Mandatory. No. 8. Must holder give notice to owner. Yes, (5), if claim not barred by statute of limitations and value of property exceeds $ Owner entitled to income on reported property. Yes, (4). 10. Interest paid by state to owner. No. 11. May holder reimburse owner. Yes, (2); interest to be included on certain property, (4). 12. Liability of holder: a. Relief from liability. Yes, (1). Limited to value of property. b. Indemnification. Yes, (5). Holder indemnified against all liability. 13. Anti-limitation provision. Yes, Statutory limitation on right of state to sue to recover property. No provision.

2 0002 [ST: MI-3] [ED: MI-11] [REL: 50] Composed: Tue Jun 23 15:28:14 EDT 2009 Unclaimed Property MI Period covered by initial report (1). 16. Penalties: a. Failure to report. $100 each day up to $5,000, (2). b. Failure to pay or deliver. A penalty of 1% above adjusted prime rate per annum, (1). c. Willful failure to pay. 25% of the value of the property, (3). d. Willful refusal after written demand. Guilty of misdemeanor with a fine of not less than $500, nor more than $25,000, or imprisonment for not more than 6 months, or both, (4). 17. Retention of records: a. Generally. Yes, if last address of owner known, 10 years, (1). b. Exceptions. Traveler s checks, money orders, etc., 3 years, (1). 18. Limitation on heir finder agreements. Yes, Abandonment period: a. Savings account. 5 years, (1). b. Checking account. 5 years, (1). c. Money orders, cashier s checks and certified checks. Money orders, 7 years, (2); cashier s checks and certified checks, 5 years, (1). d. Traveler s checks. 15 years, (1). e. Safe deposit boxes. 5 years, f. Life insurance. 5 years, (1). g. Utilities (deposits and refunds). 1 year, h. Dividends. 5 years, i. Underlying shares. 3 years, a. j. Dissolutions. 1 year, k. Fiduciaries. 5 years, l. State courts and agencies. 1 year, m. Federal courts and agencies. 1 year, n. Wages. 1 year, o. All other property. 5 years, Property exempted from law. Property held, due and owing in a foreign country, arising out of foreign transaction, ; unclaimed, lost, or abandoned property if the loss is subject of another statute of this state,

3 0003 [ST: MI-3] [ED: MI-11] [REL: 50] Composed: Tue Jun 23 15:28:15 EDT 2009 MI-5 Michigan ; wages of $50.00 or less, ; gift cards and gift certificates. See Contact person: Gonzalo Llano Tel: (517) ; Fax: (517) Unclaimed Property Division Michigan Department of Treasury P.O. Box Lansing, MI

4 0004 [ST: MI-3] [ED: MI-11] [REL: 50] Composed: Tue Jun 23 15:28:15 EDT 2009 Unclaimed Property MI-6 Uniform Unclaimed Property Act Chapter 567. Escheats: Uniform Unclaimed Property Act (Mich. Comp. Laws) Sec Title Definitions Property presumed abandoned; general rule General rules for taking custody of intangible property Travelers checks and money orders Checks, drafts and similar instruments issued or certified by banking and financial institutions Bank deposits and funds in financial organizations Funds owing under life insurance policies a Prepaid funeral expenses b Unclaimed demutualization proceeds Deposits held by utilities Refunds held by business associations; court orders a Abandonment of ownership interest; exceptions Dissolution of business association Property held by agents and fiduciaries Property held by courts and public agencies Gift certificates and credit memos Wages Contents of safe deposit boxes or other safekeeping repository Report of abandoned property Notice; publication in newspaper; requirements Payment or delivery of abandoned property Custody of state; holder relieved from liability; reimbursement of holder paying claim; reclaiming for owner; defense of holder; payment of safe deposit box or repository charges Crediting of dividends, interest, or increments to owner s account Public sale of abandoned property Deposit of funds Filing of claim with administrator Claim of another state to recover property; procedures Action to establish claim Election to take property or delivery Destruction or disposition of property having insubstantial commercial value; immunity from liability Periods of limitation Requests for reports and examination of records Retention of records

5 0005 [ST: MI-3] [ED: MI-11] [REL: 50] Composed: Tue Jun 23 15:28:15 EDT 2009 MI-7 Michigan Enforcement Interstate agreements and cooperation; joint and reciprocal actions with other states Interest and penalties Agreement to locate reported property Foreign transactions Effect of new provisions; clarification of applications Administrator as successor to state board of escheat Rules and regulations Uniformity of application and construction Act not applicable in certain instances Repeal of previous act Effective date Title This act shall be known and may be cited as the uniform unclaimed property act Definitions As used in this act, unless the context otherwise requires: (a) Administrator means the state treasurer. (b) Apparent owner means the person whose name appears on the records of the holder as the person entitled to property held, issued, or owing by the holder. (c) Attorney general means the department of attorney general. (d) Banking organization means a bank, trust company, savings bank, industrial bank, land bank, safe deposit company, private banker, or any organization defined by law as a bank or banking organization. (e) Business association means a nonpublic corporation, joint stock company, investment company, business trust, partnership, or association for business purposes of two or more individuals, whether or not for profit, including a banking organization, financial organization, insurance company, or utility. (f) Domicile means the state of incorporation of a corporation and the state of the principal place of business of an unincorporated person. (g) Financial organization means a savings and loan association, cooperative bank, building and loan association, savings bank, or credit union. (h) Holder means a person, wherever organized or domiciled, who is one or more of the following: (i) In possession of property belonging to another. (ii) A trustee. (iii) Indebted to another on an obligation.

6 0006 [ST: MI-3] [ED: MI-11] [REL: 50] Composed: Tue Jun 23 15:28:15 EDT Unclaimed Property MI-8 (i) Insurance company means an individual, association, corporation, fraternal or mutual benefit organization, or any other legal entity, whether or not for profit, that is engaged or attempting to engage in the business of making insurance or surety contracts. (j) Intangible property includes all of the following: (i) Money, checks, drafts, deposits, interest, dividends, and income. (ii) Credit balances, customer overpayments, security deposits, refunds, credit memos, unpaid wages, unused airline tickets, and unidentified remittances. (iii) Except as provided in sections 15(4) [ ] and 30(1) [ ], gift certificates and gift cards. (iv) Stocks and other intangible ownership interests in business associations. (v) Money deposited to redeem stocks, bonds, coupons, and other securities, or to make distributions. (vi) Amounts due and payable under the terms of insurance policies. (vii) Amounts distributable from a trust or custodial fund established under a plan to provide health, welfare, pension, vacation, severance, retirement, death, stock purchase, profit sharing, employee savings, supplemental unemployment insurance, or similar benefits. (k) Last known address means a description of the location of the apparent owner sufficient for the purpose of the delivery of mail. (l) Owner means a depositor, in the case of a deposit; a beneficiary, in case of a trust other than a deposit in trust; a creditor, claimant, or payee, in the case of other intangible property; or a person having a legal or equitable interest in property subject to this act. Owner includes the legal representative of the person defined as an owner in this subdivision. (m) Person means an individual, business association, state or other government, governmental subdivision or agency, public corporation, public authority, estate, trust, 2 or more persons having a joint or common interest, or any other legal or commercial entity. (n) Property means tangible or intangible personal property owned by a person. (o) State means any state, district, commonwealth, territory, insular possession, or any other area subject to the legislative authority of the United States. (p) Utility means a person who owns or operates for public use any plant, equipment, property, franchise, or license for the transmission of communications or the production, storage, transmission, sale, delivery, or furnishing of electricity, water, steam, or gas Property presumed abandoned; general rule

7 0007 [ST: MI-3] [ED: MI-11] [REL: 50] Composed: Tue Jun 23 15:28:17 EDT 2009 MI-9 Michigan (1) Except as otherwise provided by this act, all property, including any income or increment derived from the property, less any lawful charges, that is held, issued, or owing in the ordinary course of a holder s business and remains unclaimed by the owner for more than 5 years after it becomes payable or distributable is presumed abandoned. (2) Property is payable or distributable for the purpose of this act, notwithstanding the owner s failure to make demand or to present any instrument or document required to receive payment General rules for taking custody of intangible unclaimed property Unless otherwise provided in this act or by law, property is subject to the custody of this state as unclaimed property, if the conditions raising a presumption of abandonment under sections 3 and 6 to 17 [Mich. Comp. Laws and to ] are satisfied and one or more of the following requirements are met: (a) The last known address, as shown on the records of the holder, of the apparent owner is in this state. (b) The records of the holder do not reflect the identity of the person entitled to the property and it is established that the last known address of the person entitled to the property is in this state. (Text continued on page MI-11)

8 0008 [ST: MI-3] [ED: MI-11] [REL: 50] Composed: Tue Jun 23 15:28:15 EDT 2009

9 0009 [ST: MI-19] [ED: MI-21] [REL: 50] (Beg Group) Composed: Tue Jun 23 15:28:16 EDT 2009 MI-19 Michigan only insofar as the interest of the business association in the property is concerned, and the business association is the holder of the property insofar as the interest of any other person in the property is concerned Property held by courts and public agencies Property held for the owner by a court, state, or other government, governmental subdivision or agency, public corporation, or public authority that remains unclaimed by the owner for more than 1 year after becoming payable or distributable is presumed abandoned Gift certificates and credit memos (1) Except as provided in subsection (4), a gift certificate, gift card, or credit memo is presumed abandoned if either of the following apply: (a) The certificate, card, or memo is not claimed or used for a period of 5 years after becoming payable or distributable. (b) The certificate, card, or memo was used or claimed 1 or more times without exhausting its full value, but subsequently was not claimed or used for an uninterrupted period of 5 years. (2) For purposes of subsection (1), a gift certificate or gift card is considered to have been claimed or used if there is any transaction processing activity on the gift certificate or gift card including, but not limited to, redeeming, refunding, or adding value to the certificate or card. Activity initiated by the issuer of the certificate or card, including, but not limited to, assessing inactivity fees or similar service fees, does not constitute transaction processing activity for purposes of this subsection. (3) In the case of a gift certificate or gift card, the owner is presumed to be a gift recipient of the gift certificate or gift card, and the amount presumed abandoned is the price paid by the purchaser for the gift certificate or gift card, less the total of any purchases or fees assessed against the certificate or card. In the case of a credit memo, the amount presumed abandoned is the amount credited to the recipient of the memo. (4) This act does not apply to a gift certificate as defined in section 3e of the Michigan consumer protection act, 1976 PA 331, MCL e, that is issued for retail goods or services by a person engaged in the retail sale of goods or services Wages (1) Unpaid wages greater than $50.00, including wages represented by unpresented payroll checks greater than $50.00, owing in the ordinary course of the holder s business that remain unclaimed by the owner for more than 1 year after becoming payable are presumed abandoned. (2) Unpaid wages of $50.00 or less owing in the ordinary course of the holder s business that remain unclaimed by the owner for more than 1 year after becoming payable are not subject to this act Contents of safe deposit boxes or other safekeeping repository

10 0010 [ST: MI-19] [ED: MI-21] [REL: 50] Composed: Tue Jun 23 15:28:16 EDT Unclaimed Property MI-20 All property held in a safe deposit box or any other safekeeping repository in this state in the ordinary course of the holder s business and proceeds resulting from the sale of the property permitted by law, that remain unclaimed by the owner for more than 5 years after the lease or rental period on the box or other repository has expired, are presumed abandoned Report of abandoned property (1) A person holding property presumed abandoned and subject to the state s custody as unclaimed property under this act shall report to the administrator concerning the property as provided in this section. (2) The report shall be verified and shall include all of the following: (a) The name, if known, social security number, if known, and last known address, if any, of each person appearing from the records of the holder to be the owner of property of the value of $50.00 or more presumed abandoned under this act. This subdivision does not apply to travelers checks and money orders. (b) In the case of unclaimed funds of $50.00 or more held or owing under any life or endowment insurance policy or annuity contract, the full name and last known address of the insured or annuitant and of the beneficiary according to the records of the insurance company holding or owing the funds. (c) In the case of the contents of a safe deposit box or other safekeeping repository or of other tangible property, a description of the property and the place where it is held and may be inspected by the administrator and any amounts owing to the holder. (d) The nature and identifying number, of any, or description of the property and the amount appearing from the records to be due. However, items of value under $50.00 each may be reported in the aggregate. (e) The date the property became payable, demandable, or returnable, and the date of the last transaction with the apparent owner with respect to the property. (f) Other information the administrator requires by rule as necessary for the administration of this act. (3) If the person holding property presumed abandoned and subject to the state s custody as unclaimed property under this act is a successor to other persons who previously held the property for the apparent owner, or the holder has changed its name while holding the property, the holder shall file with the report all known names and addresses of each previous holder of the property. (4) Except as otherwise provided in this subsection, the report shall be filed on or before November 1 of each year for the 12-month period ending on the immediately preceding June 30. The administrator may postpone the date to file a report, on written request by any person required to file a report under this section. The administrator may extend the filing date for up to 60 days after the deadline if an estimated payment is paid on or before the deadline for the 12-month period ending on the immediately

11 0011 [ST: MI-19] [ED: MI-21] [REL: 50] Composed: Tue Jun 23 15:28:17 EDT 2009 MI-20.1 Michigan preceding June 30. Remittance of an estimated payment without a report on or before the deadline shall be considered a request for extension. A request for extension of time to file the report is not a request for an extension of time to remit payments. Interest and penalties will (Text continued on page MI-21)

12 0012 [ST: MI-19] [ED: MI-21] [REL: 50] Composed: Tue Jun 23 15:28:16 EDT 2009

13 0013 [ST: MI-27] [ED: MI-29] [REL: 50] (Beg Group) Composed: Tue Jun 23 15:28:17 EDT 2009 MI-27 Michigan of the holder the property has escheated to or become subject to a claim of abandonment by that state. (e) The property is the sum payable on a travelers check, money order, or other similar instrument that was subjected to custody by this state under section 5 [Mich. Comp. Laws ], and the instrument was purchased in the other state, and under the laws of that state the property escheated to or became subject to a claim of abandonment by that state. (2) The claim of another state, under the laws of that state, to recover escheated or abandoned property shall be presented in a form prescribed by the administrator, who shall decide the claim within 90 days after it is presented. The administrator shall allow the claim if the administrator determines that the other state is entitled to the property under subsection (1). (3) The administrator shall require a state, before recovering property under this section, to agree to indemnify this state and its officers and employees against any liability on a claim for the property Action to establish claim A person who is aggrieved by a decision of the administrator or whose claim has not been acted upon within 90 days after its filing may bring an action to establish the claim in the circuit court, naming the administrator as a defendant. The action shall be brought within 90 days after the decision of the administrator or within 180 days after the filing of the claim if the administrator has failed to act on it. If the aggrieved person establishes the claim in an action against the administrator, the court shall award the claimant costs and reasonable attorney s fees Election to take property or delivery (1) The administrator may decline to receive property reported under this act that the administrator considers to have a value less than the expense of giving notice and of public sale. If the administrator declines to receive the property, the administrator shall authorize the holder of the property to destroy or otherwise dispose of the property at any time the holder chooses. An action or proceeding shall not be maintained against a holder for or on account of any action taken by the holder in destroying or otherwise disposing of the property pursuant to authorization of the administrator. (2) A holder may report and deliver property to the administrator before the property is otherwise presumed abandoned if the owner has failed to exercise dominion or control, to assert a right of ownership or possession, to make presentment or demand payment, or to do any other act in relation to or concerning that property for a period of 2 years. Property received by the administrator under this subsection is presumed abandoned and shall be disposed of pursuant to section 23 [Mich. Comp. Laws ] Destruction or disposition of property having insubstantial commercial value; immunity from liability

14 0014 [ST: MI-27] [ED: MI-29] [REL: 50] Composed: Tue Jun 23 15:28:18 EDT Unclaimed Property MI-28 If the administrator determines after investigation that any property delivered under this act has insubstantial commercial value, the administrator may destroy or otherwise dispose of the property at any time. An action or proceeding shall not be maintained against the state or any officer or against the holder for or on account of any action take by the administrator under this section Periods of limitation (1) The expiration, before or after the effective date of this act, of any period of time specified by contract, statute, or court order, during which a claim for money or property can be made or during which an action or proceeding may be commenced or enforced to obtain payment of a claim for money or to recover property, does not prevent the money or property from being presumed abandoned or affect any duty to file a report or to pay or deliver abandoned property to the administrator as required by this act. This subsection does not apply to gift cards or gift certificates. (2) An action or proceeding shall not be commenced by the administrator with respect to any duty of a holder under this act more than 10 years after the duty arose Requests for reports and examination of records (1) The administrator may require a person who has not filed a report under this act or a person who the administrator believes has filed an inactive, incomplete, or false report, to file a verified report in a form specified by the administrator. The report shall state whether the person is holding any unclaimed property reportable or deliverable under this act, describe unclaimed property not previously reported or as to which the administrator has made inquiry, and specifically identify and state the amounts or property that may be in issue. (2) The administrator, at reasonable times and upon reasonable notice, may examine the records of a person to determine whether the person has complied with this act. The administrator may conduct the examination even if the person believes he or she is not in possession of any property reportable or deliverable under this act. The administrator may contract with any other person to conduct the examination on behalf of the administrator. (3) If a person is treated under section 13 [Mich. Comp. Laws ] as the holder of the property only insofar as the interest of the business association (Text continued on page MI-29)