Please be advised that on March 31, 2011, New York passed the budget bill S2811, which replaced the identical New York Abandoned Property Law A4011. The new law, effective immediately and due with the next reporting cycle, provides the following:
New York S2811 lowered the dormancy periods from 5 years to 3 years for the following property types:
- Money or securities held in escrow, but excluding escrow accounts for which the duty or obligation for which such amount was deposited has not been performed and such performance is still required.
- Amounts due on deposits held by a banking organization or any amount to which a shareholder of a savings and loan or a credit union is entitled.
- Accumulations of interest or other increments held by a bank for payment of an interest in a bond and mortgage apportioned or transferred by it.
More New York Abandoned Property Law Updates
In addition to adjusting dormancy periods, S2811 also amended New York’s reporting provisions. There following are major changes to keep in mind for your next report to New York:
1. Publication requirements: Every banking organization must publish on or before September 1st of each year a notice naming potential owners of unclaimed property being held by the banking organization. Every insurance company must publish on or before May 1st of each year a notice naming potential owners of unclaimed property being held by the company. These provisions provide a little more flexibility in that the previous requirement mandated publication within 30 days of filing a report.
2. Negative and Preliminary reports no longer required: Negative and preliminary reporting requirements are removed for banks, utility companies, insurance companies and condemnation awards reports. The bill further confirms the reporting deadlines and cut-off dates. Once the statutory due diligence and publication requirements have been satisfied, the report and remittance would be due for banking institutions by November 10th and for life insurance companies by September 10th.
3. Miscellaneous: The Verification and Checklist (AC2709) notarization requirement was lifted. NY State law still mandates that all unclaimed funds valued at $20 and higher follow the statutory due diligence requirements. The State Controller’s Office posts all owners entitled to property valued at $20 and higher on their website for at least one year. Gift cards remain at a 5 year dormancy period.
Please note we will continue to track any changes regarding new legislation in our unclaimed property blog and our quarterly unclaimed property newsletter, Keanotes.
Should you have any questions or require additional information, you may also contact me directly via email at dzumoff@KeaneUP.com.
Debbie L. Zumoff
Chief Compliance Officer
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