§ 33-21.1-6 - Bank deposits and funds in financial organizations.
SECTION 33-21.1-6
§ 33-21.1-6 Bank deposits and funds infinancial organizations. – (a) Any demand or savings deposit with a banking or financial organization, andany funds paid toward the purchase of a share, a mutual investment certificate,or any other interest in a banking or financial organization is presumedabandoned unless the owner, within three (3) years, and, in the case of maturedtime deposits, including a deposit that is automatically renewable, within six(6) years, has:
(1) In the case of a deposit, increased or decreased itsamount or presented the passbook or other similar evidence of the deposit forthe crediting of interest;
(2) Communicated in writing with the banking or financialorganization concerning the property;
(3) Otherwise indicated an interest in the property asevidenced by a memorandum or other record on file prepared by an employee ofthe banking or financial organization;
(4) Owned other property to which subdivision (a)(1), (2), or(3) applies and if the banking or financial organization communicates inwriting with the owner with regard to the property that would otherwise bepresumed abandoned under this subsection at the address to which communicationsregarding the other property regularly are sent; or
(5) Had another relationship with the banking or financialorganization concerning which the owner has:
(i) Communicated in writing with the banking or financialorganization; or
(ii) Otherwise indicated an interest as evidenced by amemorandum or other record on file prepared by an employee of the banking orfinancial organization and if the banking or financial organizationcommunicates in writing with the owner with regard to the property that wouldotherwise be abandoned under this subsection at the address to whichcommunications regarding the other relationship regularly are sent.
(b) For the purposes of subsection (a), property includesinterest and dividends.
(c) A holder may not impose with respect to propertydescribed in subsection (a) any charge due to dormancy or inactivity or ceasepayment of interest unless:
(1) There is an enforceable written contract between theholder and the owner of the property pursuant to which the holder may impose acharge or cease payment of interest;
(2) For property in excess of two dollars ($2.00), theholder, no more than three (3) months before the initial imposition of thosecharges or cessation of interest, has given written notice to the owner of theamount of those charges at the last known address of the owner stating thatthose charges will be imposed or that interest will cease, but the noticeprovided in this section need not be given with respect to charges imposed orinterest ceased before July 1, 1987; and
(3) The holder regularly imposes the charges or ceasespayment of interest and does not regularly reverse or otherwise cancel them orretroactively credit interest with respect to the property.
(d) Any property described in subsection (a) that isautomatically renewable is matured for purposes of subsection (a) upon theexpiration of its initial time period, but in the case of any renewal to whichthe owner consents at or about the time of renewal by communicating in writingwith the banking or financial organization or otherwise indicating consent asevidenced by a memorandum or other record on file prepared by an employee ofthe organization, the property is matured upon the expiration of the last timeperiod for which consent was given. If, at the time provided for delivery in§ 33-21.1-19, a penalty or forfeiture in the payment of interest wouldresult from the delivery of the property, the time for delivery is extendeduntil the time when no penalty or forfeiture would result.
(e) In the event that any court appointed receiver of abanking or financial organization or a business organization referenced inExecutive Order 91-2 (proclamation of January 1, 1991) sells, transfers orconveys any type of property referred to in this section to a banking orfinancial organization or business organization pursuant to court order, thennotwithstanding any inactivity with respect to the property, all time periodsreferred to in this section shall commence upon the date of closing of thesale, transfer or conveyance.