§ 13-5-1004 - Procedure for obtaining ownership of an abandoned loan. - Arkansas Statutes

13-5-1004. Procedure for obtaining ownership of an abandoned loan.

(a) By complying with subsection (b) or (c) of this section, a museum may obtain ownership of a loan if:

(1) The loan agreement has expired; or

(2) (A) The loan has been in the museum's custody for more than ten (10) years; and

(B) The loan agreement does not provide for a longer term for the loan or another disposition.

(b) (1) If the address of the lender is known, the museum shall send the notice required in subsection (d) of this section to the lender by certified or registered mail, return receipt requested.

(2) (A) If the return receipt showing receipt of the notice is returned and the lender fails to object within ninety (90) days of the date of the return receipt, the loan shall be considered abandoned and its ownership shall vest in the museum.

(B) If the museum did not receive a return receipt showing receipt of the notice, the museum may proceed in accordance with the provisions of subsection (c) of this section.

(c) (1) If the museum is unable to determine the identity of the lender or the lender's address, the museum shall publish the notice required under subsection (d) of this section at least one (1) time a week for four (4) consecutive weeks in at least one (1) newspaper with general circulation in:

(A) The county:

(i) Of last known address of the lender; and

(ii) In which the museum is located; or

(B) The State of Arkansas.

(2) If the lender fails to object within ninety (90) days from the last date of the publication, the loan shall be considered abandoned and its ownership shall vest in the museum.

(d) The notice shall contain:

(1) The name, address, and telephone number of the museum;

(2) A complete description of the loan;

(3) The lender's identity if that information is available from the museum's records;

(4) The lender's last known address if that information is available from the museum's records; and

(5) A statement that the loan shall be considered abandoned and shall become the property of the museum if the lender or claimant does not make a timely objection in accordance with subsection (b) or (c) of this section, whichever is applicable.