GLOSSARY OF UNCLAIMED PROPERTY TERMS

 

Abandoned or Unclaimed Property

A "fixed and certain” interest in intangible personal property that is held, issued or owing in the ordinary course of business and has remained unclaimed by the apparent owner for a specified period of time after it became payable or distributable is presumed abandoned.

 

Activity

Action by the property owner that "restarts” the applicable state dormancy period under the law of the relevant jurisdiction.   For example, if the owner adds funds to a bank account this is considered "owner generated activity” by most states and is sufficient to "restart” the dormancy period.

 

Aggregate Limit

The dollar amount under which state law or regulation does not require owner/address detail is not reported. 

 

Dormancy Period

Period of time holder retains property before performing due diligence process.

 

Due Diligence

Holder Obligation #2 – Holder’s last attempt to contact owner and reunite owner with property.

 

Due Diligence Threshold

Dollar limit under which owner & property details are not required to be itemized. Also called aggregate limit.

 

Indemnification

Holder’s right to be protected against multiple claims from states if holder reports property in good faith.

 

Locators

Firms which can assist in locating and recovering funds for a fee.

 

Holder

The business or any other entity which "holds” inactive property that belongs to another and is deemed to be presumptively abandoned under state law. (In some case law, the "debtor”.)

 

Last Activity Date

The date of last owner-generated activity. In A/P, the last activity date is the check date.  This date is used to determine "dormancy” and correspondingly, when property is due for reporting and remitting to states.

 

Last Known Address

A description, as identified in the holder’s books and records, of the location of the owner of unclaimed property sufficient for the purposes of the delivery of mail.

 

NAUPA

National Association of Unclaimed Property Administrators – Association of State Unclaimed Property Administrators

 

NAUPA Holder Claim Form

Uniform holder claim form to obtain funds remitted in error or paid to owner after escheatment.

 

Negative Report

Report stating holder has no property to report for filing period.

 

Owner – The person or entity to whom the property belongs. (Sometimes this is the "creditor”.)  In the A/P realm, this is the check "payee”.

 

Preliminary & Final States

Property Preservation

Holder Obligation #5 ‐ Maintaining "presumably” abandoned property for future due diligence, resolution or escheatment.

 

Record Retention

Holder Obligation #4 – Policy of retaining records for a period of time following state reporting to show compliance.

 

Record Review

Holder Obligation #1 – Identify unclaimed property and determine item eligibility.

 

Reporting & Remitting

Holder Obligation #3 – Report owner & property detail and remit total due according to the state’s deadline.

 

Report & Remit States

States requiring reporting and remitting of property at the same time. Majority of states are report and remit states.

 

Search Letters

Contact letters sent to apparent owners prior to due diligence letters. Not required by law. Industry best practice and customer service.

 

Search Sites

www.uppo.org

www.unclaimed.org

www.missingmoney.com

www.2fdic.gov/funds/index.asp

www.nast.org/NAUPA/7bWarrants%20Information.pdf

 

SEC 17 Ad‐17

Securities and Exchange Commission’s ruling which defines transfer agents requirements of lost security holders’ searches.

 

Self‐Audit

Internal review of potential unclaimed property prior to receiving audit notice.

 

S N A P Audit

Audit conducted by state auditors on behalf of several states.

 

Third Party Audit

Audit performed by state‐contracted audit firm for a contingent fee based on final assessment.

 

Unclaimed Property Laws

Designed to prevent "economic windfall” of a holder as State acts as custodian until rightful owner comes forward.

 

Uniform Unclaimed Property Acts ‐ UUPA

The Acts provide a way to transfer intangible personal property and safe deposit box contents, abandoned by owners, to the States. The Uniform Acts are 1954, 1966, 1981 and 1995. States have enacted all or parts of the Acts.

 

UPPO

Unclaimed Property Professionals Organization – Holder and UP service provider organization.

 

UUPA ‐ 1981

The 1981 UUPA is first Act to address due diligence specifications.

 

VDA