Arkansas and South Dakota introduced bills that would require the liquidation prior to or shortly after the escheatment of securities property, respectfully. Each bill is detrimental to owners of securities, and poses compliance and liability issues for holders. UPPO sent comments to both state legislatures indicating our concerns with the bills, and encouraging each state to adopt the applicable securities provisions of the Revised Uniform Unclaimed Property Act. We're closely monitoring the bills.
Arkansas H.B. 1142 Extends the presumed date of abandonment for securities from five to seven years from any of the following:
The date of most the recent dividend, stock split or other distribution unclaimed by the apparent owner;
The date of second mailing of a statement of account or other notification or communication that was returned as undeliverable, or after the holder discontinued mailings, notifications or communications to the apparent owner;
The date that the security holder or payee is presumed lost or unresponsive as it existed on Jan. 23, 2013.
The bill also includes new provisions requiring the security holder to liquidate the security before remitting it to the administrator.
South Dakota S.B. 34 It revises provisions related to securities held as unclaimed property. The bill requires the state treasurer to sell all stocks, bonds and other negotiable instruments within 90 days of confirmed receipt, unless the property is on an open claim.