Handbook for Reporters of Unclaimed Funds - Office of the State

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New York State Office of the State Comptroller

Handbook for Reporters of Unclaimed Funds

Office of Unclaimed Funds October 2017

Table of Contents

HANDBOOK FOR REPORTERS OF UNCLAIMED FUNDS OVERVIEW CONTACTS OUF OUF OUF OUF OUF

E-Mail Addresses Internet Address Telephone Numbers Hours Postal Addresses

THE REPORTING PROCESS GENERAL REPORTING INFORMATION Applicable Statutory Articles and Sections IMPORTANT CONSIDERATIONS Reporting Liability Waivers Extensions Exemptions Penalties Interest Charges for Late Payment or Delivery of Abandoned Property Reporting Organizations Not Liable after Payment to the State Reporting Residency Requirements Linkage of Accounts Direct Deposits Written Contact and W-8 or W-9 Voluntary Reporting Blocked Accounts Retention of Records Due Diligence Scenarios that Do Not Eliminate the Need to Report Section 1315 of the APL – Policy Statement on Business to Business Transactions VOLUNTARY COMPLIANCE Duration of Program Eligibility Ineligibility Compliance Anonymity Reach Back Self-Audits and CPA Audits COMPLETE REPORT VERIFICATION AND CHECKLIST (FORM AC2709) Verification and Checklist Sample Verification and Checklist Field Descriptions

REPORT DETAIL RECORD FIELD DESCRIPTIONS (ALL MEDIA TYPES) Owner Information Property Information Removal Indicators Multiple Owners Securities Information Report Detail Considerations - Aggregating - Rolling Up - Multiple Entitlement A/Cs REPORTING METHODS FTP Process (Secure Electronic Data Transmission) Paper Reporting NAUPA (National Association of Unclaimed Property Administrators) NYS Electronic Reporting Program (NYCD) HDT Layout REMITTANCE MAILING REQUIREMENTS First Class and Certified Mailings Multiple Owners Multiple Items Costs Mailing Requirements SECURITY DELIVERY Approved Delivery Methods CLAIMS/REFUNDS Background Customer Assistance Reporting Organization Claims Interest Paid on Amounts Reported to New York State Type of Property Statutory Coverage Security Claims CALENDAR OF EVENTS PROPERTY TYPE TABLES

Overview New York’s Abandoned Property Law requires that organizations holding unclaimed property report such property to the New York State Comptroller’s Office of Unclaimed Funds (OUF). Banks, insurance companies, corporations, and courts are among the many organizations New York State requires to report such property. The law requires organizations to review their records annually and transfer accounts that have reached specified dormancy thresholds to the Comptroller, who serves as custodian of the funds until the rightful owners claim them. To ensure compliance, organizations should review the law. To review the law via the Internet, go to http://public.leginfo.state.ny.us/menuf.cgi. After accessing this site, select Laws of New York, ABP– Abandoned Property, and the topic of interest. New York State Abandoned Property Law Subscription Information To subscribe to McKinney's Consolidated Laws of New York, Book 2 ½, which is the text of New York’s Abandoned Property Law, contact: Thomson West 610 Opperman Drive P.O. Box 64833 St. Paul, MN 55164-0833 www.west.thomson.com Telephone: (651) 687-7000 The Handbook for Reporters of Unclaimed Funds does not provide all the information you need to complete your reporting responsibilities properly. You also need to consult whichever industry-specific documents are relevant to your report(s). The handbook’s intent is to familiarize holders of unclaimed funds with general reporting requirements and procedures and present options available for preparing a suitable and timely report. The issues the handbook addresses are of interest to all reporting organizations. They include: • Important general information • A review of the reporting process • An explanation of the various types of reports and format options with samples The intent of the industry-specific documents is to provide the level of detail necessary to meet reporting requirements that are unique to individual industries.

Contacts •

OUF E-Mail Addresses



OUF Internet Address



OUF Telephone Numbers



OUF Hours



OUF Postal Addresses

OUF E-Mail Addresses You can reach the Claims Processing Unit at: [email protected] You can reach the Reports Processing Unit at: [email protected] You can reach the Securities Management Unit at: [email protected] You can reach the Director of Audits at: [email protected] You can reach the Holder Education and Research Unit at: [email protected] You can reach the Quality Assurance and Internal Controls Unit for Blocked Accounts at: [email protected]

OUF Internet Address http://www.osc.state.ny.us/ouf/index.htm

OUF Telephone Numbers If you have any questions, please contact us at the following numbers. (800) 221-9311 or (518) 270-2200 Press 4 for information for reporters and listen carefully to the menu choices.

OUF Hours We are available Monday through Friday, 8 a.m. to 4:30 p.m.

OUF Postal Addresses New York State Office of the State Comptroller Office of Unclaimed Funds, 8th floor 110 State Street Albany, New York 12236 Please indicate the department you want to receive the mailing, e.g., Reports Processing, Securities Management, Claimant Services, Corporate Claims, Legal Services etc. All reports and related remittances must be mailed to the following address: New York State Office of the State Comptroller Office of Unclaimed Funds Remittance Control, 2nd floor 110 State Street Albany, New York 12236 Issues relating to compliance, audits, and the voluntary compliance program may be directed to the following address: New York State Office of the State Comptroller Office of Unclaimed Funds Director of Audits, 23rd floor 59 Maiden Lane New York, New York 10038

The Reporting Process The process for reporting unclaimed funds is as follows: 1. Determine which part(s) of the Abandoned Property Law applies to your organization. It is essential to identify the section of the statute that applies to your business, because the rules for reporting vary within industries. Additionally, industry-specific information is cross-referenced by type of reporting organization and the Article/Section of the statute. 2. Review your books and records to determine which items are dormant. Based on the statute’s provisions, you must determine the types of properties to be examined and their associated dormancy periods. Using this information, review your books and records to establish which properties are subject to reporting. 3. Calculate the number of items to be reported. Report format options are based on the number of items you report. Important considerations in determining this number are: multiple owner accounts, aggregation and account roll up. Each of these considerations is described in detail in the Reporting section. 4. Select a format based on the number of items and allowable parameters. Choose a format based on the number of accounts to report. Please note that using an electronic format is preferable whenever possible. 5. Enter data into the chosen format. Provide complete owner and account information. 6. Perform due diligence. All reporting organizations are required to perform due diligence prior to remitting any funds to New York. Please review the mandated statutory requirements of the Article/Section of the Law relative to your report. You will need to consider due diligence timing, the accounts value, and the recovery of associated costs. 7. Update the report as required. Once you have prepared a report, you should make routine updates that note any account activity, e.g., customer contact, allowable charges, re-activation, etc. You should update reports continually until the report is final. 8. Finalize the report. After completing all account adjustments, recalculate the amount being remitted within property type and in total. 9. Remit cash/securities. Depending on the type of property due, arrange for appropriate delivery.

General Reporting Information As a reporting organization of abandoned property, you play an integral role by supplying OUF with the proper account detail in one of the prescribed formats. We review each report for accuracy and, on approval, add the reported detail to our database of unclaimed property owners. Using this database, we process and pay claims against reported property. Maintaining the integrity of our data is very important to the proper and timely payment of claims. Adhering to the following reporting stipulations is critical to the process. Applicable Statutory Articles and Sections As previously mentioned, it is extremely important to be aware of the Article/Section of the Abandoned Property Law that is applicable to the report you are completing. We recommend that you consult with your legal advisor to obtain information about your statutory requirements. Referring to the Calendar of Events and Property Types Tables document will also help you determine the statute’s requirements. They provide at a glance a listing of events and the reportable property types with their associated dormancy periods for each Article/Section of the statute. If the property type code that you want to use doesn’t seem to fit appropriately within the Article/Section under which you are reporting or isn’t valid for your type of organization, please contact the Reports Processing Unit [email protected] for assistance.

Important Considerations •

Reporting Liability



Waivers



Extensions



Exemptions



Penalties



Interest Charges for Late Payment or Delivery of Abandoned Property



Reporting Organizations Not Liable after Payment to the State



Reporting Residency Requirements



Linkage of Accounts



Direct Deposits



Written Contact and W-8 or W-9



Voluntary Reporting



Blocked Accounts



Retention of Records



Due Diligence



Scenarios that Do Not Eliminate the Need to Report



Section 1315 of the APL – Policy Statement on Business to Business Transactions

Reporting Liability Please be aware that you may be obligated to report under various and multiple sections of the statute. When the year-end cut off and reporting deadlines are different, you must file separate reports. For example, a utility filing separately under Article IV, Article V, and Section 1315 may combine the filing for Article V and Section 1315 because they have the same deadlines but must submit a separate report for Article IV because its deadline is different. In some cases, reporting organizations will have additional industry-specific reports to prepare as well as a report for general corporate activities.

Waivers By statute reporting organizations are allowed to request a waiver from publication requirements if they believe the cost of publication is unreasonable in relation to the value of the property to be published. If you feel that a waiver of publication is warranted, the waiver request form is available on our website, or by contacting the Reports Processing Unit at [email protected] or our Communication Center the at (800) 221-9311 or (518) 270-2200.

Note – In certain circumstances publication requirements are automatically waived. Your industry specific section of the handbook will fully explain such circumstances.

Extensions If you are unable to comply with any statutory or regulatory requirement in a timely manner you may request an extension of time to complete the required activity. For example, an extension may be granted for filing final reports, completing due diligence, filing required affidavits, etc. Requests for extensions should describe the circumstances that prevent the activity from being completed timely and should indicate the amount of additional time needed to properly comply. Circumstances permitting, requests for extensions should be submitted at least 30 days prior to the activity due date. The extension request form is available on our website, or by contacting our Reports Processing Unit at [email protected] or our Communication Center at (800) 221-9311 or (518) 270- 2200. Note – Extensions only apply to report preparation activities. Payment due dates cannot be extended. To avoid having to pay any penalty or interest on late filings you must remit 75% of either the value of the report that was granted an extension or of the amount reported on your previous year’s report. Payments must be received by the report’s original due date.

Exemptions In the event that you are not able to comply with any statutory or regulatory reporting requirement you may make application to the Reports Processing Unit seeking exemption from the mandated processing provided an equally efficient and effective method of reporting is available. Alternate processing options are available for other reporting activities as well. Any request to be excused from the mandated practice in lieu of another option must be submitted to the Reports Processing Unit at least 30 days prior to the activity due date. Please contact the Reports Processing Unit at [email protected] to apply for exemption and for further specific instruction.

Penalties If you fail to file full and complete reports or affidavits the statute requires in the manner the Comptroller prescribes, you may be subject to penalties of one hundred dollars for each day the report or affidavit shall be willfully delayed or withheld. Refer to Section 1412 of the statute. Willfully filing false reports or making false verification is punishable under the provisions of the penal law.

Interest Charges for Late Payment or Delivery of Abandoned Property If you are late delivering abandoned property, New York State can charge you late filing interest. Interest is 10% per year from the date payment or delivery was due to the date you make payment or delivery. Interest on securities is based on the closing price of the securities, as of the tenth day of the month in which delivery was due. Refer to Section 1412 of the statute.

Reporting Organizations Not Liable after Payment to the State Section 1404 of the statute provides that New York State assumes liability for the payment of all claims for abandoned property paid to the State and that the organization making a payment of abandoned property to the State Comptroller shall not be held liable for any claims in respect to such property. It further provides that no action shall be maintained against an organization for the recovery of abandoned property paid to the State Comptroller, or interest thereon, or for damages alleged to have resulted from any such payment. Reporting Residency Requirements Reporting organizations incorporated, chartered, organized, or domiciled (in the case of a federallycharted bank) in New York are required to report all amounts and securities held for New York residents, foreign owners, and unknowns. New York incorporated life insurance companies are required to report amounts payable to New York residents and unknowns. All other reporting organizations are required to report amounts held for New York residents only. In the case where property is held by a third party holder, the corporate status of the issuer of the property and not the reporting organization is the determining factor with respect to property held for foreign owners and unknowns. Regardless of where the corporation is incorporated, do not report property to us when the rightful owner’s last known address is in another state, as such property may be subject to that state’s abandoned property laws. Linkage of Accounts For instances in which a reporting organization has the ability to link several accounts of a single customer either manually or electronically, it is our opinion that you may treat an exclusionary action on one of the customer’s accounts as an exclusionary activity for all of the customer’s accounts, including those that are inactive or dormant. However, you should notify the customer of any dormant accounts and instruct him/her to reactivate the account. Examples of such accounts are savings, checking, IRA, personal trust, loan payment, mutual fund within the same fund group, and brokerage, etc. In the absence of an exclusionary activity, a related inactive account should not delay the reporting of a dormant account. The following are examples of appropriate account linkage: •

A customer has two accounts with a banking organization; one is a savings account and the other is a checking account. The savings account hasn’t had any activity within the last three years, while the checking account has been quite active. Checks were debited against the account in the previous month. For the purposes of reporting abandoned property, the recent activity in the checking account precludes the reporting of the savings account.



A customer has two in trust for security accounts at a broker dealer. Both accounts are listed under the same Social Security number and maintain the same signatory authorization. With respect to reporting abandoned property, activity in either account constitutes activity for both.

The following examples, although seemingly representative of account linkage, do not extend the dormancy period or preclude the reporting of the dormant account. •

A depositor has a checking account and an automatically renewable two-year time account. There has been no customer generated activity or contact on either account for three years. The checking account is deemed reportable, even though, based on the criteria for reporting time accounts, the time account may not be reportable for another two years.



A customer is 40 years old. He has a dormant IRA account and a dormant money market account. The money market account is reportable, and the IRA account will be reportable when the customer reaches age 70 1/2.

Direct Deposits Direct deposits to customer/shareholder accounts from external authorized sources, such as the Social Security Administration or the Federal Reserve, constitute contact. In addition, the direct deposit of employees’ wages in their accounts also constitutes contact. However, where such an external source is the sole contact, the holder should periodically verify that the customer has knowledge of the account. Written Contact and W-8 or W-9 Written customer, depositor, or shareholder contact includes a signed positive confirmation, as well as a W-8 or W-9 signed by the entitled owner. Voluntary Reporting If you hold any intangible property or marketable tangible property that is otherwise not subject to the provisions of the statute and has remained unclaimed by the owner for two years, you may request, in writing, that the Comptroller consent to receive such property. Refer to Section 1310 of the statute. If you have questions regarding voluntary reporting, direct them to our Division of Legal Services. Blocked Accounts The U.S. Department of Treasury’s Office of Foreign Assets Control (OFAC) has granted the New York State Comptroller’s Office of Unclaimed Funds an amended license authorizing this Office to take custody of assets that are deemed abandoned under the New York State Abandoned Property Law, which are blocked pursuant to any sanctions program administered by OFAC. If you are holding such blocked property, you must submit a separate blocked properties report. This report should include any items that were previously listed on a blocked properties report, but were not sent to this office due to the prior OFAC license restrictions. In accordance with OFAC regulations, holders of any type of blocked property are not allowed to transfer such property to the owner, the owner’s representative or a third party without notifying OFAC. As such, the primary responsibility for identifying, blocking and reporting OFAC blocked properties rests with the holder. If you require any additional information regarding your responsibility for blocked properties please direct your questions to: Licensing Compliance Section Office of Foreign Assets Control U.S. Department of the Treasury Washington, DC 20220 Due diligence by first-class mail must be sent to an account owner’s last known address prior to reporting the blocked funds to this Office. However, you do not need to advertise this class of property. Retention of Records All organizations other than a broker or dealer need to retain records relating to abandoned property they are remitting to New York State for five years following December 31 of the year for which an Abandoned Property Report was filed. Refer to Section 1412-a of the statute. Section 513-a of the statute stipulates broker/dealer record retention requirements, which the broker/dealer industry-specific document discusses in detail.

Due Diligence Via the enactment of section 1422, the statute now requires that all holders of abandoned property perform due diligence mailings at scheduled intervals prior to any funds being remitted to New York. Also, some sections of the statute require advertising names of property owners in publications in addition to the due diligence mailing requirements. In most cases the cost for completing the certified mailing and publication due diligence requirements can be offset by reducing the cost from the individual accounts involved in the due diligence effort, however the costs associated with the first class mailing requirement cannot be offset. For more information regarding due diligence, refer to the applicable sections of the statute and the industry-specific documents. You should exercise due caution in attempting to contact entitled owners who reside in sensitive countries. Address any questions pertaining to this subject to our Director of Audits. Scenarios that Do Not Eliminate the Need to Report The following scenarios do not eliminate the need for reporting property to us: •

Telephone or verbal contact



Internal activity such as service charges, crediting of interest and dividends, automatic dividend reinvestment, and automatic withdrawals



The fact that correspondence - including statements, proxies, annual reports, and confirmations - mailed to the entitled owner is not returned as undeliverable. This is not applicable to dividend reinvestment accounts. (See the General Corporations document.)

Automatic deposit from one otherwise dormant account into another dormant account, as in the case of a transfer of interest from a time account into another dormant savings account. In all cases in which a signature constitutes contact, you must verify the signature and retain all pertinent correspondence and documents in accordance with the record retention requirements of Section 1412-a (all non-brokerage reports) and Section 513-a (brokers only). Section 1315 of the APL – Policy Statement on Business to Business Transactions New York State’s Abandoned Property Law (APL), does not provide an exemption for business to business transactions. Therefore, under APL S1315, credit balances, as well as checks representing the refund of credit balances, whether payable to a business or an individual, are deemed abandoned if unclaimed for three years. However, such property is not reportable to this Office if the holder is able to demonstrate that the customer has either: (i) used the credit balance, (ii) disclaimed entitlement to the credit balance, or (iii) is aware of the credit balance. Accordingly, prior to the time that a credit balance would be outstanding for three years, the holder must contact the customer in writing advising the customer of the credit. The customer may: (i) request that the credit be applied to an open invoice or request payment of the credit in the form of a check, (ii) disclaim entitlement to the credit in writing, or (iii)acknowledge existence of the credit, but let the credit remain outstanding. Please be advised that a holder cannot write off open customer credit balances in the absence of written documentation evidencing that the credit was issued in error, or properly applied, or a specific written disclaimer from the customer. The three year dormancy period on credit balances commences at the time the credit is issued. However, if there is written communication from the customer acknowledging the existence of the credit, or activity with respect to the customer account affecting the amount of the credit balance (partial use of the credit), the three year dormancy begins from the time of the written communication or activity. With respect to business to business credit balances that are subsequently converted into a check, the three year dormancy commences from the original date the credit was issued (or the date the customer last acknowledged or used the credit balance) unless the holder was instructed in writing by the customer to issue a check for the credit balance. If a check for the credit balance was issued upon the written

request of the customer, the issue date of the check would commence the dormancy period. Credit balances are reportable to the State of last known address of the customer, as reflected in the books and records of the holder. Note: The above applies specifically to business to business credit balances. In order to exclude a vendor check from being reported as abandoned property we require that the holder document that the obligation was otherwise satisfied or provide a signed confirmation from the payee acknowledging that the specific check (issue date and amount) is not owed.

Voluntary Compliance

Duration of Program We have had a voluntary compliance program in effect since 1985, and we encourage holders to come forward and report abandoned property free of interest and penalties. Eligibility Voluntary compliance applies to first-time reporting organizations, and in some instances, to those who have filed in the past, but recognize that they have failed to report a particular type of property and have come forward voluntarily to correct the error. Ineligibility You are ineligible for voluntary compliance once we contact you regarding an audit. We reserve the right to deny an application for voluntary compliance. Compliance How to Comply – A holder has two options •

Obtain a letter for the Voluntary Compliance Program by outreach mail or request to [email protected] Conduct self reviews, including a Self Audit Checklist, and file any findings within six months.



File a voluntary compliance agreement. This will provide the holder with additional time to review its records and will ensure that the firm is not contacted for audit in the interim. The signed agreement should be sent to the address above.

Anonymity We act in good faith in our dealings with all holders of abandoned property. However, some holders may be uncomfortable disclosing their identity out of fear that by doing so they may trigger an immediate audit. To alleviate such concerns, we have a policy of responding to anonymous inquiries. To ensure a correct response, it is imperative that all questions provide accurate and detailed information. With respect to issues of a complex nature, it is best that you submit inquiries in writing to the Director of Audits, and we will respond in kind.

Reach Back New for 2017 With respect to all VCAs entered into after January 1, 2017, the reach back period relative to General Ledger type property, has been reduced to encompass property that would have first been reportable in 2007. We apply the following criteria with respect to reach back under voluntary compliance: •

Unclaimed wages, accounts payable checks, refund checks and rebate checks issued and/or payable – issued in 2003



Accounts payable and receivable credits including merchandise credits and gift certificates – issued in 2001



Holders not enrolled in Voluntary Compliance – The audit reach back period is January 1, 1992 for General Ledger items applies.



For all property other than General Ledger items, e.g., debt, equity, reorganization, etc., the applicable statutory floor date for the specific property type applies.

Self-Audits and CPA Audits Under the guidelines for voluntary compliance, we consider self-audits and certified public accountant (CPA) examinations to be valid. However, we reserve the right of review. This does not apply once we contact you to schedule an opening conference, nor should it delay the scheduling of our audit work. Selfexaminations or CPA audits of holders will not preclude us from conducting, at our discretion, an examination nor should they interfere with our audit process. The purpose of this program is to give the holder an opportunity to review records and correct any issues or omissions with respect to its reporting obligations to New York or other states. Continuing this program in general and with respect to a specific holder or third-party representative in particular is contingent on a good-faith effort to ensure statutory compliance in a timely and accurate manner. Under no circumstances may a third-party review unduly delay the timely reporting of abandoned property to our office. Direct all inquiries regarding voluntary compliance to our Director of Audits, [email protected] or the Voluntary Compliance Unit, [email protected]

Complete Report Complete Report A final report is a complete updated detailed listing of all accounts deemed abandoned as of your report period ending date. You complete the Initial and Escheated Amount fields and file the report with a remittance. The final report consists of: •

A completed Verification and Checklist (AC2709)



Report detail on CD, File Transfer Protocol (FTP), or paper (AC2686)



A remittance

Verification and Checklist (Form AC2709) Each report you submit must have its own Verification and Checklist. A Verification and Checklist includes: •

Organization Name



Federal Employer ID Number



Contact Name



Signature



Summary Totals



Property Types

An officer of the reporting organization must sign the Verification and Checklist. The signing officer must have the authority to attest to the fact that the report is true and complete to the best of his or her knowledge. You must enter dollar amounts and numbers of securities, by property type, on the reverse side of the form. Although there is space for all property types, you must verify that the property types you complete are valid for your organization type and that they are in agreement with the totals on the front of the form and the sum of the individual amounts in the detail report. Refer to the sample Verification and Checklist form and the field descriptions at the end of this section for more detail. The Verification and Checklist is available online at http://www.osc.state.ny.us/ouf/oufhandbook/index.htm. Service Bureaus Organizations, such as data processing organizations, that file on behalf of others should enter their client’s name in the Name of Business field. The filing organization name should appear in the Service Bureau field. Filing organizations should also provide us with a contact person’s name and telephone number in the Service Bureau Contact fields. Such organizations should provide an employer ID number in the Federal Employer ID Number field and answer the question, “Are You Authorized to do Business in NYS?”, based on the corporate status of the client corporation on whose behalf they are filing the property. Verification and Checklist Sample

Verification and Checklist Sample

Verification and Checklist Field Descriptions Verification and Checklist Field Name of business Reporting organization’s name Area or department Street address Street address City, state, zip code Service bureau (if used) Service bureau contact name Service bureau contact phone Verification for period ended State of incorporation Date of incorporation Are you authorized to do business in NYS? Federal Employer ID No. Contact person Contact title Contact phone Contact fax Contact address Email address Signature Cash Issues Shares Electronic Check Securities Cash/Certificates (reverse side)

Description (Please repeat on reverse side.) Department’s name Reporting organization’s street address Reporting organization’s second street address Reporting organization’s city, state and zip code Name of service bureau that prepared the report Name of a service bureau contact Phone number of a service bureau contact Reporting organization’s cut-off date Reporting organization’s state of incorporation or Charter Reporting organization’s date of incorporation or Charter Yes or No Reporting organization’s tax ID (Please repeat on reverse side. Paying agents enter their own tax ID.) Person we can contact to address any questions or concerns we may have about the report Contact person’s title Contact person’s phone number Contact person’s fax number Contact person’s address Contact person’s e-mail address Empowered official’s signature Report’s total dollar amount Total number of separate security types on report Total number of shares Check box if funds were wired Check box if physical check was sent Check box if securities were remitted The total dollar amount or the number of method of transfer occurrences in the case of a security property for each property type used

Report Detail Record Field Descriptions (All Media Types) Receiving good data in both the “Owner Section” and “Property Section” parts of the record increases the likelihood of locating claimants’ property and significantly expedites the claim process for your customer. The following sample is a representation of the original form. It is not an exact replica.



Owner Information



Property Information



Removal Indicators



Multiple Owners



Securities Information

Owner Information These fields identify the person(s) or entity entitled to the property as they appear on the records of a reporting organization. Accordingly, reporters should carefully examine their records to report complete and accurate information. Enter data as described below. Owner Information Field Description Owner Last Name Last name of the owner (Individual) First Name First name of the owner MI Middle initial of the owner Suffix Suffix of the owner (JR, SR, III, etc…) Owner Name (Entity) Field Description Owner Last Name Corporate or entity name (except that the word “THE” must be omitted when it is the first word of the name). If there are more than 20 characters, continue entering the name in the First Name field. First Name Name continued from Last Name field, if necessary Suffix “ENT”

Important Notes Pertaining to Both Individuals and Entities as Owners If owner name data is unavailable, enter the word UNKNOWN in the Owner Last Name field. This field is the only field in which the word UNKNOWN is acceptable. Do not abbreviate the word UNKNOWN or use any other descriptive entry to indicate that the data is unavailable. If other owner information is unavailable, leave the appropriate field(s) blank. Whenever you hold amounts or securities held in a nominee’s name for unknown owners, enter UNKNOWN in the Owner Last Name field. Nominee names should not be entered in any of the Owner Name fields unless a nominee is the rightful owner. If amounts or securities are held in a nominee’s name, this information should be included in the Description of Security field (e.g., XYZ Corp Div on 100 Shares n/o OUF & Co.). Important Notes Pertaining to Individual Owners Only Do not enter account relationship data such as ESTATE, JTWROS, EXEC, I/T/F, CUST UGMA, etc., in any of the Owner Name fields. Do not include punctuation or spaces in any of the Owner Name fields. Owner names containing punctuation or spaces should be entered as follows: •

For names containing apostrophes, omit the apostrophe and compress the name (e.g. O’Brien should be entered in the Owner Last Name field as Obrien).



If, in addition to the last name, you show more than one name and/or initial on your system for an individual, enter only the first initial or name in the First Name field and only the initial of the second name in the Middle Initial field.

For example: For Mary Anne, enter MARY in the First Name field and A in the Middle Initial field. For J Kenneth, enter J in the First Name field and K in the Middle Initial field. For A J Kenneth, enter A in the First Name field and J in the Middle Initial field. You wouldn’t enter Kenneth in any of the Owner Name fields. Compress last names containing spaces (For example, enter De Bonis in the Owner Last Name field as DEBONIS.) unless the name is hyphenated. Hyphenated last names should be reported with a space instead of a hyphen (for example, Hannah Kelly Watson-Errick should be reported as HANNAH in the First name field, K in the Middle Initial field, and WATSON ERRICK in the Last Name field). Use the Suffix field to enter data associated with an owner’s name. Acceptable and likely entries in this field are JR, SR, DR, MD, REV, III, IV, HON. If you enter a business entity as an owner, enter ENT in this field. Account Field Account Title

Title Description Enter the names and relationships of all owners and beneficiaries as reflected on the records of the reporting organization. Where the account title and name are the same, repeat the owner’s name in the Account Title field.

Important Notes Pertaining to the Account Title Field Examples of account titles are: •

John Doe



Mary Doe



Doe’s Grocery DBA J & J Deli



John Doe (Maker), Jane Doe (Payee)



Doe Accounting Corp



Estate of John Doe, Mary Doe (Executrix)



John Doe (Box Owner) Jane Doe (Security Owner)

Do not enter descriptions such as “unclaimed dividends,” “bond interest,” or “outstanding checks” in the Account Title field. The property type code will provide us with an adequate description. Whenever you enter two or more names (person or entity) in the Account Title field, create a separate record for each name. Address Field Owner Address Street 1 Owner Address Street 2 Owner City State Zip Country if Not USA

Description Enter the last known street address of the owner or “care of” data. If unknown, leave blank. This field should be used when Street 1 has been used to capture “care of” data or whenever you have additional address data such as Apt #, Postal Station, etc. Enter the owner’s last known city of residence. State code, as used by postal authorities. If unknown or foreign, leave blank. Enter 5-digit zip code. If unknown, leave blank. Enter the 4 digit supplemental zip code. If unknown, leave blank. If the owner’s last known country of residence is foreign (not in the USA), enter the name of the country. Otherwise leave blank.

Important Notes Pertaining to Address Fields Do NOT enter the reporting organization’s address in any of the address fields. If your organization’s address appears on your records as the address of record for any owner, suppress it for reporting purposes. Social Security Number Field Description Soc. Sec. If the owner is an individual, enter the individual’s Social Security Number (SSN). If the owner is a No./Empl. ID No. Business Entity, enter the entity’s Employer Identification Number (EIN). If the SSN or EIN is unknown, leave blank.

Important Note Pertaining to Social Security Field This field should contain the Social Security or Employer ID Number of the owner. Do NOT enter the reporting organization’s FEIN in this field.

Property Information These fields identify the property. Property Field Property Type Property ID Number

Description Enter the appropriate property type code from the Property Type Table. Enter the identifying data by which the reporting organization refers to the property (Security Certificate Number, Customer Account Number, Insurance Policy Number, Check Number)

Important Notes Pertaining to Property Type and Property ID Fields The Property Type field identifies the kind of property reported, e.g., checks, insurance proceeds, securities, customer accounts, etc., and requires a two-digit alphanumeric code from the Property Type Table. For example, a savings account is coded “1B,” while certified checks are “2A.” Since the property type code can affect claim requirements, please contact the Reports Processing Unit if you are unable to determine which code is appropriate. The Property Type Table is provided as a guideline and does not affect or restrict statutory coverage of the unclaimed item your organization may hold. Do not repeat the Property ID except for multiple entitlement items. If you don’t know the Property ID, use a sequential numbering system, taking care not to duplicate numbers within the same report. When reporting combined dividend or interest check payments for one payee (or a group of payees) as a single item by issue, enter the shareholder account number and, if available, the most recent check number. Date Field Date (MMDDYY)

Description Enter the date by which you have determined that the account is dormant; be it the date of issuance, date of exchange or redemption or LAST date of customer contact. Dates must be entered in MMDDYY format.

Important Notes Pertaining to Date Field Common examples of dormancy dates: • • • •

Date of Last Activity Payable Date (end of quarter date is acceptable) Date of Death Date of Check

No hyphens, dashes, or slashes should appear in this field. For example, enter December 9, 2000 as 120900. As previously indicated, you may report combined dividend or interest check payments for one payee (or a group of payees) as a single item within an issue year. In such instances, the date field should reflect the issue date of the last check included.

Removal Indicators Use this field when you need to remove an item from your report. Removal Indicator Field Description Initial Enter the amount as shown on the books as of abandonment date. Amount Escheated Enter the amount being transferred to New York State. This amount may differ from the initial amount Amount due to the addition of interest or the deduction of allowable fees. If the rightful owner has since made claim or contact with the reporting organization or the amount was found to be reported in error, zero fill this field and enter the appropriate indicator in the Removal Indicator field (see below).

Whenever you enter a removal indicator, you must zero-fill the Escheated Amount and Number of Shares/Denomination fields and leave the Method of Transfer field blank. Owner Claimed Account Sample This sample indicates that the owner has claimed his property or reactivated his account prior to the report’s filing. The Escheated Amt field is blank, and there is a removal code in the Removal Indicator field.

Multiple Owners This field identifies whether or not there are multiple owners. Multiple Owner Indicator Field Description Multiple Place an “X” in this field if the item has more than one listed owner. Note that all records associated with Owners a multiple entitlement account should have this field completed.

Securities Information Use these instructions together with the Security Delivery Instructions if you have securities to send with the report. Enter this information for securities, no matter the delivery method. The account details must match the list of securities you send to the OUF custodian for delivery.

Securities Field

Description

Description of Security

Enter the standard description of the issue, including type of stock, mutual fund or bond

CUSIP Number of Security

Enter the nine-digit number assigned to the issue (being reported) by CUSIP, as listed in Standard & Poor’s CUSIP Directory.

No. of Shares or Denomination

Enter the quantity being transferred to New York State. For equity issues and mutual funds, enter the number of shares; for debt issues, enter dollar equivalent.

Method of Transfer

Use the code that reflects the method by which the security was transferred: D–DTC, DWAC, Bonds, Foreign A–DRS, Mutual funds P–Physical certificate (Cert # should be in Property ID field) T–Account registration (Restricted, No Value, Non Transferable)

When you report security related cash such as proceeds of sale, cash-in-lieu, dividends, bond interest, over receipts, etc., the only security data fields you need to complete are the Description of Security and CUSIP Number. The Number of Shares or Denomination and Method of Transfer fields must remain blank. Enter the complete names of securities in the security description field exactly as it appears on the account statement. Reported CUSIP numbers must match what is actually delivered. Include any Class, or equity type in this name. Enter any certificate number as the Property ID Number. Advance approval is required to deliver securities to an account. Contact the Securities Management Unit to receive written approval to deliver. This includes securities that are: - Restricted - No value - Non transferable Review each account annually to determine if the security becomes deliverable. When an issue becomes deliverable, send it using the currently applicable delivery instructions with an accompanying report.

Report Detail Considerations •

Aggregating



Rolling Up



Multiple Entitlement Accounts

Aggregating By law, reporters of abandoned property need not provide owner or property information for abandoned accounts valued at $20.00 or less. These items may be aggregated and described on your abandoned property report as explained below. When aggregating items under $20.01, you must group the individual items into one aggregate amount for each property type. This type of record should contain data as follows: Aggregate Record Field Owner Last Name Owner First Name Property Type Escheated Amount

Description The word “Aggregate” Number of items comprising the aggregate (numeric characters only, e.g., 10) Appropriate code from the Property Type Tables Aggregate sum for the property type entered

If a single owner (or group of owners) has multiple amounts under $20.01 payable in the same year for the same property type, it is in the best interest of the owner(s) to sum these amounts prior to aggregating. If the sum of the multiple amounts is greater than $20.00, you should exclude them from aggregate reporting and report them as a single item, using the property information from the most recent item and the sum of all the items as the escheated value. Refer to the Rolling Up section below. If the sum is less than $20.01, you must include the multiple amounts in an aggregate record. Records containing abandoned securities cannot be aggregated. Aggregate Record Sample

This sample represents 58 individual items of Property Type 1B, each of which was less than $20.01. “Aggregate” appears in the Owner Last Name field, and the item count is in the First Name field. You segregate aggregates by property type. Had there also been demand deposits valued at less than $20.01, there would have been an additional aggregate record for Property Type 1A (demand deposits).

Rolling Up You may not aggregate amounts greater than $20.00. However, you may combine amounts of $20.01 or greater payable to a single owner (or a group of owners) in a given year and reportable under the same property type, e.g., quarterly dividend checks. When rolling up dividends, use the last check number and date as a reference for the property. You should use the Description of Security field to indicate the number of dividends included.

You must add subsequent (secondary) records for each additional owner appearing in the Account Title Field. Rolled Up Item Sample

This sample shows the proper way to report a “Rolled Up” item. The item began as four quarterly dividend checks with the same exact owner name and address information. Note that the Description of Security field contains information indicating that this item represents four dividend checks

In this sample, the original dividend checks were valued at $6.00 each and would have been in the aggregate record if the roll up feature had not been used prior to the aggregating process. Because the items have been rolled up, the owner’s name is reported on the detail record and, therefore, appears on our database.

Multiple Entitlement Accounts The following rules apply whenever an item you are reporting is subject to multiple entitlements, i.e., two or more parties appear to be entitled to the same property. • • • •

You must create a separate record for each party associated with the property. You should complete the first (primary) record, entering data in all applicable fields, with Owner Name and Address fields reflecting only the data relating to the first party appearing in the Account Title field. You must place an “x” in the Multiple Owners field on all multiple entitlement records. You must add subsequent (secondary) records for each additional owner appearing in the Account Title field.

Complete only the following data fields for subsequent records: • • • • •

Owner Name (Last, First, MI, and Suffix) Address (Street 1, Street 2, City, State, Zip, and Country) Soc. Sec. No. or Empl. ID No. Property Type Property ID Number

• •

Date (MMDDYY) Multiple Owners (must be “X” on all multiple entitlement records)

When you are reporting security items for multiple parties entitled to one item, you should complete the following fields, in addition to the above, on the first (primary) record only: • • • •

Description of Security CUSIP Number of Security No. of Shares or Denomination Method of Transfer

The following data you enter in subsequent records must match the data you entered in the first record: • • • • •

Account Title Property Type Property ID Number Date (MMDDYY) Multiple Owners (must be “X”)

When you need to remove an account on a report, you must enter the Removal Indicator in the first (primary) record. It is not necessary to enter the indicator in subsequent (secondary) records. The data you enter in the Account Title field will determine if an item is subject to multiple entitlement reporting. The following are some examples of account title data that would qualify as multiple entitlements: • • • • • • •

John Doe (Box Owner) Jane Doe (Security Owner) John and Jane Doe JTWRO John Doe ITF Joan Doe John Doe as Guardian of Mary Doe Estate of John Doe, Jane Doe Executrix John Doe (Maker) Jane Doe (Payee) John Doe (Insured) Jane Doe (Beneficiary)

Multiple Entitlement Account Sample

This sample shows the proper handling of an item subject to multiple entitlements, regardless of property type. There is a separate record for each owner, but the Account Title, as it appears on the reporting organization’s records, is the same for all owners. Note that the Property ID and the Dormancy Date are the same on both records, and that the Initial and Escheated Amount fields are only completed on the first record.

Reporting Methods and Formats Methods •

FTP Process (Secure Electronic Data Transmission)



Paper Reporting

Formats •

NAUPA (National Association of Unclaimed Property Administrators)



NYS Electronic Reporting Program (NYCD)



HDT Layout

FTP Process (Secure Electronic Data Transmission) Web Transmission (PC Based) - The Office of Unclaimed Funds (OUF) can provide users with online access to a secure website (http://ouf.osc.state.ny.us/ouf/ap) where you can log on and submit your reports electronically. To request a username and password, contact us at [email protected] If you have a username and password that was obtained prior to August 2009, you will need to contact us as the login credentials have changed. Secure File Transfer with PGP Encryption (SFTP) - OUF can provide you with our public PGP key, IP address, username and password so that you may securely transfer data to our server. Files must meet the new naming convention and be in one of the accepted file formats. To request the information required to use this site, contact the Reports Processing Unit at [email protected] or call the Communication Center at 1-800-221-9311. SFTP Method File Naming Convention You must have PGP in order to utilize this method. File Name Position Field 1-1 Record Identifier 2-6 Last 5 of FEIN or Agency Code 7-8 Report Sequence Number

9-9 10 15 16 24 25 -

Decimal File Format Decimal Date Submitting Report Decimal Reporting Organization Name 55 - 55 Decimal 56 - 255 Reporting Discretion 14 15 23 24 54

Length Remarks 1 Must be a “U” 5 Numeric 2

1 5 1 8

Numeric (e.g. 01, 02) - Your first report number should be 01. - There is a maximum of 25 reports per file and a maximum of 99 files per day. Approved file formats are Txt, NAUPA, or NYCD1. Numeric (MMDDYYYY)

30

Alphanumeric

1 200

This field is not required; you may use to further identify your report.

Sample File Names 1. U1234501.11012006.MYBANK.pgp 2. U1234501.NAUPA.11012006.MYBANK.pgp 3. U1234501.NYCD1.11012006.MYBANK.pgp Paper Reporting If you file by paper, you must type all of the information necessary to complete Form AC2686. AC2686–Report of Abandoned Property Sample

Reporting Formats Acceptable File Formats for use with the FTP Process •

All formats are fixed width text file (sdf) formats.



Tab delimited text files are not fixed width text files.



All records within a NAUPA text file should have a length of 625 characters.



All records within a NYCD text file should have a length of 594 characters.



All records within a HDT text file should have a length of 384 characters.



If a record has been truncated during a file transfer, such as an FTP transfer from a mainframe to a pc or shared drive, an incorrect record length will cause an error. An easy fix for this is to put a period in the last position of each record when creating the record.



Do not use an EOF marker in the text file as it will be read as a record, causing an error.

NAUPA (National Association of Unclaimed Property Administrators) NAUPA Format Many of the service providers and accounting firms offer packages that generate abandoned property reports using the National Association of Unclaimed Property Administrators (NAUPA) specifications. We now accept the new FTP process (Secure Electronic Data Transmission) for reports created using these specifications. If you are not sure of what specifications your organization uses, please check with your service provider, accounting firm, or your information technology provider for assistance. NYS Electronic Reporting Program (NYCD) NYCD Format The Unclaimed Funds upload layout record consists of a character string with 594 characters. The link above shows the order and length of the fields. You should save the final file on a CD, or transfer using web transmission, as a fixed-width text file with an extension of txt. HDT (magtape) Magtape Format The Unclaimed Funds record layout within an HDT text file should have a length of 384 characters. Please note that although this format is acceptable, we do not accept the physical media. The link above details the order and length of the fields. We strongly recommend that you retain a printout of the electronic report and make a copy available to the staff responsible for assisting persons making claims against the report. It is imperative that the printout of the report include all of the electronic report's data, including the unique reference number.

Remittance Refer to the industry-specific document that applies to your business for information regarding appropriate remittances. Note – electronic funds transfer is available to remit payment. Contact the Reports Processing Unit at [email protected] for account and routing number information. With each final report of abandoned property, you should include the applicable remittance payable to the Comptroller of the State of New York. You should mail it to the following address: New York State Office of the State Comptroller Office of Unclaimed Funds Remittance Control, 2nd floor 110 State Street Albany, New York 12236 In accordance with OUF’s internal control procedures, you should send all payments to the above address. At no time should you send any remittances to our New York City office. Electronic Funds Transfer E- cash is now a viable method to make payment of the amount due for your report of abandoned property. Please contact our Communication Center or our Reports Processing Unit for further instruction.

Mailing Requirements First Class and Certified Mailings The law requires that all organizations do the following: •

At least 90 days prior to their final report/remittance date, send a first class mailing to each owner whose name is expected to appear on that report unless; •

The owner address is unknown, or



The holder can demonstrate that the address it maintains for the property owner is not the property owner’s current address

And •

At least 60 days prior to their final report/remittance date, send a certified mailing, return receipt requested, to each owner whose name is expected to appear on that report with abandoned property valued in excess of $1000.00 unless; •

A claim has been initiated since the first class mailing was sent, or



The first class mailing was returned as undeliverable.

Multiple Owners For cases in which multiple owners of an item have different addresses, you must send a letter to each owner. You may deduct the additional costs of mailing a certified notice to more than one address. Multiple Items Where feasible, if you are reporting more than one item for the same customer, one letter should address all of the items you are reporting. Costs You may deduct the mailing costs for certified mail. Deduct such charges from each item for which you are mailing the notice. You may not make a bulk deduction against the final remittance. Mailing Requirements – Dividend Reinvestment Accounts Article V requires you to send notification to the apparent owners of securities that are enrolled in reinvestment plans. This notification, which is to be sent via certified mail return receipt requested, should advise owners that in the absence of establishing written communication with the holder their securities will be delivered to the State Comptroller as abandoned property. A return receipt signed by the owner of the property is to be considered contact. Additionally, Article V stipulates that owners of unclaimed wages be notified at the last known address of record via first class mail. In either of the above cases, the notifications must be sent in the calendar year prior to the year in which you are required to deliver the property to the State Comptroller. You may not deduct the cost of sending notifications from the value of the abandoned property.

Security Delivery Instructions You must deliver all reported security positions to OUFs custodian at the time you file the abandoned property report. Remove restricted legends from securities (in any form) before delivery. If a restricted legend must remain on the security, the reporting organization must provide detailed instructions including the type of the restriction and applicable restriction dates. To deliver securities to the New York State Comptroller’s Office of Unclaimed Funds (OUF), follow the steps below and use one of the approved delivery methods. Before delivering securities to OUF •

Prepare a list in an MS Excel format describing the securities that you intend to deliver, including: o Issue name o CUSIP number o Number of shares o Delivering party’s Depository Trust Company (DTC) participant number o Preferred delivery method



Email your list to OUF’s custodian, Conduent at [email protected] and email a copy to OUF at [email protected]



Receive our delivery authorization within four business days of receiving your email. We will tell you to either deliver as requested or provide alternate instructions. Do not deliver securities without authorization.

After delivering the securities, you must provide evidence of the securities being transferred into OUF’s ownership. The required evidence depends on the type of security and how it’s delivered. Your report isn’t complete until you provide this evidence. Approved Delivery Methods Book Entry Eligible Shares Deliver through DTC, DRS, or DWAC (if not DTC participant) as follows: DTC #: Reference: Agent Bank: Acct #:

901 State of New York, OUF 26500 114429

Dividend Reinvestments Plans (DRP) & Closed-End Funds Close the accounts and forward whole shares via DTC (see Book Entry instructions above). Fractional shares must be sold at the owner level and the proceeds applied to each individual owner.

Open-end Mutual Funds Open-end mutual fund accounts held for OUF must be opened in advance by Conduent. Email [email protected] to obtain account numbers prior to attempting delivery. Send interested party statements for open-end mutual fund accounts to: Conduent Custody Department 100 Hancock Street, 10th Floor Quincy, MA 02171 A confirmation statement showing the State of New York, OUF as the owner of the shares must accompany your Abandoned Property Report, in order for your report to be complete. See the Handbook for Reporting Organizations for more guidelines. Federal Reserve Securities Deliver Federal Reserve securities to: Federal Reserve Bank of New York ABA#0210-0001-8 Bk of NYC/CUST Account # 114429 Account Name: State of New York, OUF Physical Certificates Advance approval is required to deliver physical certificates. Certificates will be returned to the sender if they are DTC, DWAC, or DRS eligible. If physical certificates are returned, penalties may be assessed until the securities are properly delivered. Email your list of securities that need to be delivered in certificate form to OUF’s custodian, Conduent at [email protected] and copy OUF at [email protected] We’ll reply to your email with an authorization to deliver as requested or provide alternate instructions. Account Registration Advance approval is required to deliver securities to an account. If securities are not delivered as instructed, penalties may be assessed until the securities are properly delivered. Email your list of securities that need to be delivered to an account to OUF at [email protected] We’ll reply to your email with an authorization to deliver as requested or provide alternate instructions. A confirmation statement showing the State of New York, OUF as the owner of the shares must accompany your Abandoned Property Report, in order for your report to be complete. See the Handbook for Reporting Organizations for more guidelines. Foreign Securities Email your list of foreign securities that need to be delivered to OUF’s custodian, Conduent at [email protected] and copy OUF at [email protected] We’ll reply to your email with an authorization to deliver as requested or provide alternate instructions.

Claims/Refunds •

Background



Customer Assistance



Reporting Organization Claims



Interest Paid on Amounts Reported to New York State



Type of Property Statutory Coverage



Security Claims

Background Claims may be filed with the State Comptroller for any abandoned property with a value exceeding $3. There is no statute of limitations, and we research all inquiries free of charge. We refund abandoned property to: •

Individual owners of record, their legal heirs, or a duly retained attorney at law



Reporting organizations on behalf of the owners of record



Organizations that are the reported owners of record



Reporting organizations that have made an erroneous remittance

Over the past several years, an extensive outreach program that has included television and radio public service announcements, site visits, direct mailings, posters, a Web site, and our toll-free telephone number has generated a growing number of claims and inquiries. Customer Assistance Some reporting organizations assist their customers in claiming funds previously escheated to New York State. When providing assistance to or initiating a claim on behalf of a claimant, it is most helpful when reporting organizations assist us in locating the item or items to be claimed by providing information critical to retrieving the abandoned items. Such information may include the: •

Year of the report



Total value of the report



Item’s location within the report

Internal report locations, also known as unique reference numbers, differ depending on the report medium and/or format. The internal location information is as follows: •

Paper reports use a page and line number.



Previously submitted magnetic tape cartridge reports, contain a unique reference number, within the specific numbered tape.



Other reporting formats use record numbers.

The internal report location information, when used in conjunction with the report year and value information, will quickly lead us to the item(s) in question.

We believe that customers are better served by helping them to prevent their property from becoming abandoned. As part of our effort to generate public awareness about unclaimed funds, we have available information about OUF that you may include in corporate newsletters. Additionally, we offer brochures in English and Spanish that you may distribute to your customers and employees. Reporting organizations interested in assisting their customers in safeguarding their property or claiming previously abandoned property should contact the Comptroller's Communication Center for more information. Reporting Organization Claims Although you are welcome to search our database on the Comptroller’s Web site or call the Communication Center, the most prudent way to find out if we are holding unclaimed funds on behalf of your organization is to contact the Corporate Claims Unit in writing and provide a list of all corporate names and/or branch offices and addresses for which you want a search of our records. The State Comptroller is empowered to return to reporting organizations any remitted property that, because of a mistake, error in calculation, or misinterpretation of the statute, has been paid to the State Comptroller. Refunds to reporting organizations of erroneously remitted funds must occur within six years of receipt of the funds by the Comptroller’s Office. After six years, only the rightful owner may claim the property. Property erroneously paid is considered to be abandoned property until refunded or returned by the State Comptroller. We urge organizations filing corporate claims to maintain and make available for our inspection all source documentation relating to a claim, including all reconciliation documents relating to the reimbursement of abandoned property previously submitted to us. Original source documents may be necessary for claim processing. We reserve the right to conduct on-site reviews of original documents, e.g., microfilm, third party correspondence, signed transactions, etc. Interest Paid on Amounts Reported to New York State In accordance with Section 1405 of the statute, interest will accrue on the following types of property for the first five years that such property is held by the Comptroller’s office. Type of Property Statutory Coverage for interest: Bank Account Balances 300.1 (a) APL Court Funds 600.1 (a) APL Condemnation Awards 1000.1 APL Utility Deposits 400.1 APL The annual rate of interest is based on the rate set by the New York State Tax Commission. This rate is reviewed and subject to change quarterly. Security Claims New York State will honor claims against securities reported on or after November 1, 1991 by refunding either the actual reported shares or the current market value of the reported shares. In either case, we will refund all dividends and distributions accruing over the period of time that the property was held by New York State.

Property Unclaimed property subject to Article III of the Abandoned Property Law includes: •

Bank accounts



Negotiable instruments



The contents of safe deposit boxes broken open for nonpayment of rent



Overpayment amounts and securities resulting from trust activities



Dormant trust customer accounts



Unclaimed securities found in a vault or storage area



Unclaimed amounts and securities resulting from paying agent and corporate trust activities including the issuance of American Depository Receipts (ADRs)



Capital stock of a banking organization



Lost property found on the premises of a safe deposit area of a bank or safe deposit company

Specific first-class, certified mail due diligence and advertising requirements apply.

General Information Regarding the Calendar of Events and the Property Type Tables The calendar of events and property type tables should be used in conjunction with one another to determine when property is deemed abandoned, when such abandoned property should be turned over to the New York State, and what requirements must be met before remittance. Calendar of Events The calendar indicates by article/section the: •

Type of business



Report period ending/report cut-off date



Due date of final reports and remittances



Applicability and associated due dates of publication and mailing requirements

Property Type Tables The property type tables are divided into the following property categories: •

Account Balances



Negotiable Instruments



Paying Agents, Fiduciary, Mutual Funds, American Depository Receipt Accounts, and Companies Dispersing Directly to their Shareholders



Investments, Trading (Broker/Dealer) and Bank Trust Department Accounts that Represent Distributions Received for Known and Unknown Owners



Refunds



Insurance Proceeds



Funds Owing by Courts and Governmental Units



Other Amounts and Securities



Specific Property Types for New York Paying Agents, General Corporations, Public Corporations, and Mutual Funds

The tables indicate by property type: •

Property type code



Relevant article/section of the Abandoned Property Law



Description of the property



Associated dormancy period

When determining dates and requirements, you should: •

Review the calendar to determine the reporting schedule for your organization



Review the appropriate property type(s) on the property type tables to confirm the validity of the property type(s) with regard to the associated article/section pursuant to which you are reporting, as well as to determine the dormancy period for the property type(s) you are holding. If there are conflicts between the calendar and the property type table, please consult your industry specific document to verify the relationship between property type and reporting schedule or contact the Reports Processing Unit.

Calendar of Events Article II III IV & 1311 V & 1315 V-A VI VII X XII XII-A 1300 1301 1304 1305 1306 1307 1308 1309(1) 1309(2) 1310 1312 1313 1313 1314 1315 1315 1316 1317

Business Type Real Estate (Note 1) Banks Utilities All Business Entities Brokers/Dealers Court Funds (Note 4) Life Insurance Companies (See 1316) Condemnation Awards Property in Federal Courts United States of America Pledged Property Collateral Loan Broker Property in State Institutions Public Assistance Vehicle & Traffic Law Wrecked Property Proceeds Unclaimed Wages - Dept of Labor (Note 10) Travelers Checks (Non Bank) Money Orders (Non Bank) Miscellaneous Property Foreign Corporation Property (Note 12) Sales Finance Co. Property (NYS Banking Law, Section 491, SubDivision 7) Insurance Premium Finance Agencies (NYS Banking Law, Section 554, SubDivision 7) Consumer Credit Balances (Note 13) See Article V New York State Agencies (Note 16) Insurance (Other than life) Title Insurance Companies Corporate Dissolution Proceeds (Note 14)

Cut-Off Date Final Report & Pay Due 6/30 7/1 12/31 12/31 1/1 (Note 5) 7/1

12/31 6/30 6/30 1/1

11/10 10/10 3/10 3/10 4/10 9/10 2/10 (Note 6) (Note 7) 6/1 7/10 (Note 8) 9/10 7/1 (Note 9)

Pub Notice Due

Pub Proof Due

1st Class Mail Due

8/31 8/31

9/10 9/10

2/1 5/1 10/30

2/10 5/10 11/10

8/10 7/10 12/10 12/10 1/10 6/10 11/10

3/1 4/10 9/10 4/1

3/31

2/1

1/1 1/1

6/1 6/1 (Note 11 )

3/1 3/1

6/30

10/10

7/10

6/30

10/10

7/10

12/31

2/15

11/15

12/31 (Note 15) 12/31

3/10 9/10 3/10

5/1

5/10

12/10 6/10 12/10

Property Type Tables Account Balances Property Type 1A 1B 1C 1D 1E 1F

Valid Under Article/Section III III

Property Type Description

Demand Deposit Accounts Savings Accounts (Includes Club, Security Deposit, and Retirement Accounts) III Time Deposit Accounts III Money on Deposit to Secure Funds (if separate from 1A and 1B) III Unidentified Deposit (if separate from 1A and 1B) and Suspense Accounts §1315 & §1317 Escrow Funds (Mortgages, Performance Guarantee, Surety Bonds, etc.) and Title Insurance Companies

1G

III

1H 1I

§1314 III & V-A

1J

III

Credit Balances Arising from Loans (includes liquidated mortgages, consumer loans, remainder of collateral amounts, etc.) Credit Balances; Consumer Credit Accounts Credit Balances in Trading and Investment Accounts with Trusts, Brokers, Investment Firms, etc. (including outstanding checks issued to customers) Credit Balances or Cash Due Renters of Safe Deposit Boxes

Dormancy Period 3 years 3 years 3 years 3 years 3 years

3 years 3 years

3 years 3 years 3 years

Negotiable Instruments Property Type 2A 2B 2C 2D 2E 2F 2G

Valid Under Article/Section III III III III III III §1315

2H 2I

§1309 (1) §1309 (2)

2J

§1315

Property Type Description Certified Checks Cashier and Teller Checks Bank Money Orders Treasurer and Registered Checks Drafts and Bank Traveler’s Checks Warrants Outstanding Checks Issued to Vendors (accounts payable) Travelers Checks (non-bank) Licensed Money Transmitter Receipts and Money Orders (non-bank) State Checks

Dormancy Period 3 years 3 years 3 years 3 years 3 years 3 years 3 years 15 years 5 years 1 year

Paying Agents, Fiduciary, Mutual Funds, ADR Accounts, and Corporations Disbursing Directly to their Shareholders Property Type 3A 3B 3C

Valid Under Article/Section III & V III & V III & V

3D

III & V

Property Type Description Cash Dividends (other than ADR) Bond Interest (other than ADR) Stock Dividends (other than ADR) (cash-in-lieu of fractionals not issued) Distributions From Ownership of Interest (other than underlying and unexchanged shares and accrued

Dormancy Period 3 years 3 years 3 years 3 years

3E 3F

III III

3G

III

3H 3I 3P

III & V V III & V

3Q

III & V

3R

III

3S

III

3T 3U

III & V III & V

dividends Cash Dividends (ADR) Stock Dividends (ADR) (cash-in-lieu of fractionals not issued) Other Distributions Resulting From Ownership of Interest (ADR) Bond Redemption Mutual Fund and Dividend Reinvestment Book Shares Stock Dividends (other than ADR) (shares only or shares with cash-in-lieu of fractionals) Distributions from Ownership of Interest (other than ADR)–includes redemption values, warrants, underlying and unexchanged shares and accrued dividends) (shares only or shares with cash) Stock Dividends (ADR) (shares only or shares with cash-in-lieu of fractionals) Other Distributions Resulting from Ownership of Interest (ADR) (shares only or shares with cash) Bond Redemption (shares only or shares with cash) Mutual Funds and Dividend Reinvestment Book Shares (shares only or shares with cash)

3 years

3 years 3 years 3 years 3 years 3 years 3 years

3 years 3 years 3 years 3 years

Investments, Trading (Broker/Dealer), and Bank Trust Department Accounts that Represent Distributions Received for Known and Unknown Owners Property Type 4A 4B 4C 4D 4E 4F 4P 4Q 4R 4S

Valid Under Article/Section III & V-A III & V-A III & V-A III & V-A III & V-A III & V-A III III III III

& & & &

V-A V-A V-A V-A

Property Type Description Cash Over Receipts (dividends and other) Bond Interest Over Receipts Stock Over Receipts (dividends and other) (cash only) Other Over Receipts (cash only) Unidentified Overages (cash only) Other Distributions Resulting from Ownership Interest or Debt Obligation (cash only) Stock Over Receipts (shares only) Other Over Receipts (shares only) Unidentified Overages (shares only) Other Distributions Resulting from Ownership Interest or Debt Obligation (shares only)

Dormancy Period 3 years 3 years 3 years 3 years 3 years

3 years 3 3 3 3

years years years years

Refunds Property Type 5A 5B 5C 5D 5E 5F

Valid Under Article/Section IV IV IV VII & §1316 §1315 §1315

Property Type Description Utility Service Deposit Advance Payments for Utility Services Not Furnished Refunds Due on Overcharges by Utility Companies Refunds Due by Insurance Companies Amounts Due for Undelivered Goods and/or Services Rebates

Dormancy Period 2 years 2 years 2 years 3 years 3 years 3 years

Insurance Proceeds Property Type 6A 6B 6C 6D 6E 6F 6G

Valid Under Article/Section VII VII VII VII VII & §1316 VII VII

Property Type Description Limiting Age (superannuated) Contracts Matured Endowments Death Claims Amounts Due Under Policies Other Than Life Refunds and Other Amounts Due Under Policy Terms Annuities Retained Asset Accounts, Benefits Access Accounts or similar distribution accounts

Dormancy Period none 3 years 3 years 3 years 3 years 3 years 3 years

Funds Owing by Courts and Governmental Units Property Type 7A 7B 7C 7D 7X

Valid Under Article/Section VI VI VI X Note 15

Property Type Description Trust Funds Bail Funds Funds for Support of Spouse or Child Condemnation Awards Other (court and governmental unit funds)

Dormancy Period 3 years 3 years 3 years 3 years Note 15

Other Amounts and Securities Property Type 8A 8B 8C 8D

Valid Under Article/Section V, VA & 1308*

Property Type Description

Wages, Payroll, Salaries, Commissions, Pension Payments *NYS Department of Labor §1315 Unredeemed Gift Cards (5 yrs), Merchandise Credits, Lay Away Deposits, Accounts Receivable and Accounts Payable issued as electronic cards (3 yrs) §1313 Amounts Owed by Sales and Insurance Finance Companies §1300 & §1301* Surplus from Sale of Pledged Property *Collateral Loan Brokers

8E 8F

III III & V-A

8G

III

8H 8I

III III

8J 8K 8P

III III III & V-A

8Q 8R 8S

III III III

8T 8U

III III

Lost Property (cash only) Securities Long in Customer’s Trading, Investment, Trust Accounts (cash-in-lieu of fractionals and redemption values only) Securities Held as Transfer Agent (cash-in-lieu of fractionals and redemption values only) Securities Held in a Vault or Storage Areas of a Bank Securities Lost and held by a Safe Deposit Company or Bank Securities Found in a Safe Deposit Box Other Securities Owed (cash only) Securities Long in Customer’s Trading, Investment, Trust Accounts (shares only) Securities Held as Transfer Agent (shares only) Securities Held in a Vault or Storage Area of a Bank Securities Lost and Held by a Safe Deposit Company or Bank Securities Found in a Safe Deposit Box Other Securities Owed (shares only)

Dormancy Period 3 years *1 year 3/5 years 3 years

3 years *1 year 3 years 3 years 3 years 3 years 3 years 3 years 3 years 3 years 3 years 3 years 3 years 3 years 3 years

8X 8Y 8Z

§1412 §1310 §1310

Late Filing Interest Other Miscellaneous Property (cash only) Other Miscellaneous Property (shares only or shares with cash)

2 years 2 years

Notes to Calendar and Property Type Tables 1.

Real Estate - The title vests in the state upon death without heir.

2.

Certified/Registered Mailing - Paying agent banks are required to send certified/registered mail for all dividend reinvestment shares, including mutual fund book entry shares.

3.

Certified/Registered Mailing - Required for all dividend reinvestment shares, including mutual funds (book entry shares only).

4.

Court Funds - The monetary proceeds of any legacy or distribution share to which an unknown person is entitled pursuant to Section 2222 of the Surrogate’s Court Procedure Act shall within 30 days after a decree pursuant to Section 2222 of that act be paid to the Comptroller by the executor, administrator, guardian, or testamentary trustee. A certified copy of the decree directing the payment to the New York State Comptroller should be submitted with the payment. Valid property codes are 7A through 7C and 7X.

5.

Insurance Companies - The cutoff date for insurance proceeds is January 1, except Limiting Age (superannuated) Contract amounts (property type code 6A): the cutoff date for amounts reported as 6A is December 31.

6.

Property in Federal Courts - The dormancy period is ten years in cases in which the rightful owners are unknown. If the rightful owners have died without heir or abandoned the property pursuant to Section 1201 of the Abandoned Property Law, there is no dormancy period. Valid property type codes are 7A through 7X.

7.

Property in Custody of the United States Government (upon special proceedings by the Attorney General) - The dormancy period is seven years in cases that the rightful owners are unknown. If the rightful owners have died without heirs or abandoned the property pursuant to Section 1216 of the Abandoned Property Law, there is no dormancy period. Valid property type codes are 7A through 7X.

8.

Property in State Institutions - The dormancy period for monies, intangibles and proceeds of the sale of tangibles is six months from the discharge, escape or death of the rightful owner. The valid property type code is 7X.

9.

Wrecked Property Proceeds - The dormancy period for proceeds from the sale of perishable goods is one year. The proceeds from the sale of nonperishable goods are to be paid immediately to the Comptroller.

10.

Department of Labor, Unclaimed Wages - The dormancy period is one year from the date the wages are received by the Department of Labor. (Refers to underpayment of minimum wages only)

11.

Miscellaneous Property - Upon election by the Comptroller.

12.

Foreign Corporate Property - For applicable coverage and dormancy periods, see Articles III, IV, V, V-A, §1301, §1313, §1315, §1316.

13.

Consumer Credit Balances - The requirements for reporting and paying unclaimed credit balances are contained in Article 34-A of the General Business Law and relate only to credit card balances.

14.

Corporate Dissolution Proceeds - Applies to assets distributed to a creditor or shareholder of business corporations upon non-judicial dissolution (Business Corp. Law, Section 1005(c)) or judicial dissolution (Business Corp. Law, Section 1117(a)) and non-judicial dissolution of not-for–profit corporations (Not-For-Profit Corp. Law, Section 1115(a)). Such proceeds are payable as abandoned property within six months of the date fixed for payment of the final liquidating distribution, unless otherwise specified by court order in cases of judicial distribution. All questions relating to the reporting of these proceeds should be directed to Legal Services.

15.

Property Type 7X - This property type is used for property covered under multiple statutes with various dormancy dates. Refer to Notes 4, 6, 7, 9, and 10.

16.

New York State Checks – The dormancy period for unpaid NYS checks is 1 year

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Handbook for Reporters of Unclaimed Funds - Office of the State

New York State Office of the State Comptroller Handbook for Reporters of Unclaimed Funds Office of Unclaimed Funds October 2017 Table of Contents ...

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