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UPPO to Attend the ULC Annual Meeting this Weekend

Posted By Administration, Thursday, July 7, 2016

The Uniform Law Commission (ULC) is hosting its Annual Meeting, July 8 – 14 in Stowe, Vt. and the Uniform Unclaimed Property Act (UUPA) is anticipated to be reviewed and approved during the meeting. UPPO is sending two representatives, Kendall Houghton, co-chair of Government Relations & Advocacy Committee and Debbie Zumoff, co-chair of the UPPO ULC work group, to attend the meeting to listen to dialogue and discuss UPPO’s priority issues with commissioners.


On Friday, July 1, UPPO submitted its latest submission to the ULC which provided a list of issues UPPO believes needs additional consideration by the Committee to Revise the Uniform Unclaimed Property Act (Drafting Committee). Below is a glance at some of the issues and arguments presented in the submission. Read the complete submission.


Definition of holder
Section 102(12)

The definition of holder should be clear and articulate that there can be only one holder of any item of unclaimed property. UPPO recommends the definition of holder be changed to the following: “’Holder’ means a  the person primarily obligated to hold for the account of, or to deliver or pay to, the owner property that is subject to this [act].”


Definition of security
Section 102(27)

The definition of security has been hotly debated during the Drafting Committee meetings by securities industry stakeholders, NAUPA, and UPPO. UPPO continues the push to achieve a fair and clear definition, and proposes that the definition of security be amended to: “’Security’ means a security or security entitlement as defined in [cite to appropriate sections of Article 8 of the Uniform Commercial Code] and includes a customer security account held by a registered broker-dealer. 


Indication of interest
Indication of apparent owner interest in property – divided reinvestments and non-return of federal tax forms
Section 210(b)(5) & 210(b)(8) NEW

The current draft UUPA takes strides to include modern and practical forms of communication between owners and holders to be considered as indication of interest. UPPO encourages the Drafting Committee to go further and include: automatic deposits, automatic reinvestments of dividends or interest, and the non-return of federal tax forms as indications of owner interest, as well.  Adding these types of owner interest is consistent with progressive legislation that was enacted by Louisiana in 2015 and is currently being considered by California.


Due diligence
Notice to Apparent Owner by Holder
Section 501(b)

The draft states that a holder is required to send the due diligence notice to owners who have consented to receive electronic communication by first-class United States mail and by electronic mail. UPPO seeks clarification that the requirement to send two communication pieces is the intention, further noting that requiring holders to contact the owner by one method is consistent with Section 503(b)(1) which grants the administrator the option to contact an owner by electronic mail or U.S. mail.


Complaint to Administrator about Conduct of Person Conducting Examination
Section 1008(b)

To ensure there’s enough time to prepare but not too much to unnecessarily extend the process, UPPO requests that a time frame between when a holder requests a conference with an administrator regarding an examination be changed to: “…the administrator shall hold the conference within a reasonable time 30 days after receiving the request.”

If you want to learn more about the ULC Annual Meeting and what was discussed, stay tuned for a follow-up blog post and register for the free, members-only webinar Revising the Uniform Unclaimed Property Act: Where do we go from here?, Monday, July 25; noon – 1 p.m. EDT.


More information
We’re halfway through the ULC’s effort to revise the UUPA

Tags:  advocacy  Annual Meeting  unclaimed property  Uniform Law Commission 

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