§ 116B-53. Presumptions of abandonment. - North Carolina Statutes

§ 116B‑53.  Presumptions of abandonment.

(a)        Property is unclaimed if the apparent owner has notcommunicated in writing or by other means reflected in a contemporaneous recordprepared by or on behalf of the holder, with the holder concerning the propertyor the account in which the property is held, and has not otherwise indicatedan interest in the property. A communication with an owner by a person (otherthan the holder or its representative) who has not, in writing, identified theproperty to the owner is not an indication of interest in the property by theowner.

(b)        An indication of an interest in property includes:

(1)        The presentment of a check or other instrument of payment ofa dividend or other distribution made with respect to an account or underlyingstock or other interest in a business association or, in the case of adistribution made by electronic or similar means, evidence that thedistribution has been received;

(2)        The presentment of a check or other instrument of payment ofinterest made with respect to debt of a business association or, in the case ofan interest payment made by electronic or similar means, evidence that theinterest payment has been received;

(3)        Owner‑directed activity in the account in which theproperty is held, including a direction by the owner to increase, decrease, orchange the amount or type of property held in the account;

(4)        The making of a deposit to or withdrawal from an account ina financial organization;

(5)        Owner activity in another account with the holder of adeposit described in subdivisions (c)(2) and (c)(6) of this section; and

(6)        The payment of a premium with respect to a property interestin an insurance policy; but the application of an automatic premium loanprovision or other nonforfeiture provision contained in an insurance policydoes not prevent a policy from maturing or terminating if the insured has diedor the insured or the beneficiary of the policy has otherwise become entitledto the proceeds before the depletion of the cash surrender value of a policy bythe application of those provisions.

(c)        Property is presumed abandoned if it is unclaimed by theapparent owner during the time set forth below for the particular property:

(1)        Traveler's check, 15 years after issuance.

(2)        Time deposit, including a deposit that is automaticallyrenewable, 10 years after the later of initial maturity or the date of the lastindication by the owner of interest in the property.

(3)        Money order, cashier's check, teller's check, and certifiedcheck, seven years after issuance.

(4)        Stock or other equity interest in a business association,including a security entitlement under Article 8 of the Uniform CommercialCode, Chapter 25 of the General Statutes, three years after the earlier of:

a.         The date of a cash dividend or other distribution unclaimedby the apparent owner.

b.         The date a second consecutive mailing, notification, orcommunication from the holder to the apparent owner is returned to the holderas unclaimed by or undeliverable to the apparent owner.

c.         The date the holder discontinued mailings, notifications, orcommunications to the apparent owner.

            This subdivision applies to both theunderlying stock, share, or other intangible ownership interest of an owner,and any stock, share, or other intangible interest of which the businessassociation is in possession of the certificate or other evidence or indicia ofownership, and to the stock, share, or other ownership interest of dividend andnondividend paying business associations whether or not the interest isrepresented by a certificate.

(5)        Debt of a business association, including debt evidenced bya matured or called bearer bond or an original issue discount bond, three yearsafter the date of an interest or principal payment unclaimed by the apparentowner.

(5a)      Any dividend, profit, distribution, interest, redemption,payment on principal, cash compensation (including amounts from a demutualizedinsurance company), or other sum held or owing by a business association for orto its shareholder, certificate holder, policyholder, member, bondholder, orother security holder, who has not claimed it, or corresponded in writing withthe business association concerning it, within three years after the dateprescribed for payment or delivery.

(6)        Demand or savings deposit, five years after the date of thelast indication by the owner of interest in the property.

(7)        Money or credits owed to a customer as a result of a retailbusiness transaction, three years after the obligation accrued.

(8)        Any gift certificate or electronic gift card bearing anexpiration date and remaining unredeemed or dormant for more than three yearsafter the gift certificate or electronic gift card was sold is deemedabandoned. The amount abandoned is deemed to be sixty percent (60%) of theunredeemed portion of the face value of the gift certificate or the electronicgift card.

(9)        Amount owed by an insurer on a life or endowment insurancepolicy or an annuity that has matured or terminated, three years after theobligation to pay arose or, in the case of a policy or annuity payable uponproof of death, three years after the insured has attained, or would haveattained if living, the limiting age under the mortality table on which thereserve is based.

(10)      Property distributable by a business association in a courseof dissolution, one year after the property becomes distributable.

(11)      Property received by a court as proceeds of a class action,and not distributed pursuant to the judgment, one year after the distributiondate.

(12)      Property held by a court, government, governmentalsubdivision, agency, or instrumentality, one year after the property becomesdistributable.

(13)      Wages or other compensation for personal services, two yearsafter the compensation becomes payable.

(14)      Deposit or refund owed to a subscriber by a utility, one yearafter the deposit or refund becomes payable.

(15)      Property in an individual retirement account, defined benefitplan, or other account or plan that is qualified for tax deferral under theincome tax laws of the United States, three years after the earliest of thedate of the distribution or attempted distribution of the property, the date ofthe required distribution as stated in the plan or trust agreement governingthe plan, or the date, if determinable by the holder, specified in the incometax laws of the United States by which distribution of the property must beginin order to avoid a tax penalty.

(16)      All other property, five years after the owner's right todemand the property or after the obligation to pay or distribute the propertyarises, whichever first occurs.

(d)        At the time that an interest in property is presumedabandoned under subsection (c) of this section, any other property rightaccrued or accruing to the owner as a result of the interest, and notpreviously presumed abandoned, is also presumed abandoned.

(e)        Property is payable or distributable for purposes of thisChapter notwithstanding the owner's failure to make demand or present aninstrument or document otherwise required to obtain payment or distribution,except as otherwise provided by the Uniform Commercial Code. (1999‑460, s. 6; 2001‑226, s. 1; 2005‑132, s. 1.)