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2018 SESSION

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SB 253 Unclaimed property; deposits and funds with financial institutions, charges and interest.

Introduced by: Rosalyn R. Dance | all patrons    ...    notes | add to my profiles | history

SUMMARY AS PASSED:

Unclaimed property; deposits with financial institutions; charges and interest. Clarifies the criteria that must be met for a bank or other financial organization to impose charges or cease to pay interest on a dormant or inactive account that differ from those imposed on active accounts. The holder may reverse or cancel dormancy charges or retroactively credit interest upon the request of the owner if it also does so for all such property that becomes subject to certain statutory reporting requirements regarding unclaimed property. If the holder elects not to reverse or cancel dormancy charges or retroactively credit interest with respect to any such property, then it is not required to reverse or cancel dormancy charges or retroactively credit interest for property that becomes subject to the reporting requirements regarding unclaimed property. A holder may also reverse or cancel dormancy charges or retroactively credit interest with respect to any or all such property to correct a documented internal error without becoming required to reverse or cancel dormancy charges or retroactively credit interest for all such property that becomes subject to unclaimed property reporting requirements. An enactment states that the measure is declarative of existing law. This bill is identical to HB 686.

SUMMARY AS PASSED SENATE:

Unclaimed property; deposits with financial institutions; charges and interest. Removes the exception from the provision barring a banking or financial organization from deducting a service charge or ceasing to accrue interest on a dormant or inactive account in a manner that differs from such provisions that apply to the active accounts. The deleted exception had allowed different provisions for deducting a service charge or ceasing to accrue interest on a dormant or inactive account when the holder imposes those charges or ceases payment of interest, it does not for any reason other than to correct a documented internal error reverse or cancel those charges or retroactively credit interest with respect to such property. The measure also authorizes dormant or inactive accounts to be treated differently if upon customer request a holder may reverse or cancel dormancy charges or retroactively credit interest with respect to such property. The measure provides that if a holder elects to reverse or cancel dormancy charges or retroactively credit interest with respect to the property, it shall reverse or cancel dormancy charges or retroactively credit interest for all such property that becomes subject to reporting requirements regarding unclaimed property. If the holder elects not to reverse or cancel dormancy charges or retroactively credit interest with respect to any such property, then it is not required to reverse or cancel dormancy charges or retroactively credit interest for property that becomes subject to reporting requirements. The measure provides that a holder may reverse or cancel dormancy charges or retroactively credit interest with respect to any or all such property to correct a documented internal error without becoming required to reverse or cancel dormancy charges or retroactively credit interest for all such property that becomes subject to the reporting requirements.

SUMMARY AS INTRODUCED:

Unclaimed property; deposits with financial institutions; charges and interest. Removes an exception to a provision that prohibits a bank or other holder from (i) imposing charges on dormant or inactive accounts in a manner that differs from active accounts or (ii) ceasing to pay interest on an inactive account. The deleted exception allows such accounts to be treated differently if the bank or other holder, when it imposes such different charges or ceases paying interest, does not reverse or cancel charges or retroactively credit interest with respect to the property for any reason other than to correct a documented internal error. The deleted exception also authorizes a holder that is a state-chartered credit union to refund charges or reverse or cancel those charges or retroactively credit interest with respect to such property to the same extent that a federally chartered credit union is authorized to do pursuant to federal law.