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The Oregon Administrative Rules contain OARs filed through November 15, 2014
 
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DEPARTMENT OF STATE LANDS

 

DIVISION 45

ADMINISTRATION OF UNCLAIMED PROPERTY

141-045-0005

Purpose

The purpose of these rules is to provide consistent procedures for the administration of the Uniform Disposition of Unclaimed Property Act, Oregon Revised Statutes (ORS) 98.302 to 98.436, 98.991 and 98.992, and to ensure that all unclaimed money and property held in safekeeping are reported and paid over to the Department of State Lands in an accurate and timely manner.

Stat. Auth.: ORS 98.302 - 98.436 & 273.045
Stats. Implemented: ORS 98
Hist.: LB 2-1984, f. & ef. 3-13-84; LB 4-1991, f. & cert. ef. 6-21-91; LB 5-1994, f. & cert. ef. 10-20-94; DSL 13-1999, f. & cert. ef. 4-5-99; DSL 8-2002, f. 12-24-02 cert. ef. 1-1-03; DSL 3-2003, f. 12-15-03, cert. ef. 1-1-04

141-045-0010

Definitions

(1) "Capital Gain" means gain or profit realized on the sale or exchange of a capital asset, or the excess of proceeds over cost, or other basis, from the sale of a capital asset.

(2) "Credit Memorandum" or "Credit Memo" means a transaction posted to a customer account which reduced the account balance and is related to a previously posted invoice or charge, correcting and reducing the amount originally charged.

(3) "Department" means the Department of State Lands.

(4) "Dividend" means cash which accrues by the earnings of a company and which is paid to the owner of securities issued by that company.

(5) "Dividend Reinvestment Plan" means additional securities of the same company which are credited to an owner's account in lieu of cash.

(6) "Dormant" means without owner generated activity or owner contact for a prescribed time.

(7) "Due Diligence" means the degree of effort required by statute that holders of unclaimed property must take to find the rightful owner of property before the property is remitted to the state.

(8) "Financial Institution" means a financial institution, or a trust company, as those terms are defined in ORS 706.008, a safe deposit company, a private banker, a savings and loan association, a building and loan association or an investment company.

(9) "Holder" means a person, wherever organized or domiciled, who is:

(a) In possession of property belonging to another;

(b) A trustee; or

(c) Indebted to another on an obligation.

(10) "Inactive" means a lack of owner generated activity or owner contact for a prescribed time.

(11) "Insurance Company" means an association, corporation, or fraternal or mutual benefit organization, whether or not for profit, which is engaged in providing insurance coverage, including, but not limited to, accident, burial, casualty, workers' compensation, credit life, contract performance, dental, fidelity, fire, health, hospitalization, illness, life (including endowments and annuities), malpractice, marine, mortgage, surety, and wage protection insurance.

(12) "Intangible Property" includes but is not limited to:

(a) Credit balances, customer overpayments, security deposits, refunds, credit memos, unpaid wages, unused airline tickets, stored value card balances or similar electronically maintained credit balances except gift cards as defined in ORS 646A.274, and unidentified remittances;

(b) Stocks and other intangible ownership interests in business associations;

(c) Money deposited to redeem stock, bonds, coupons, and other securities, or to make distributions;

(d) Amounts due and payable under the terms of insurance policies;

(e) Amounts distributed from a trust or custodial fund established under a plan to provide health, welfare, pension, vacation, severance, retirement, death, stock purchase, profit sharing, employee savings, supplemental unemployment insurance or similar benefits; and

(f) Money, checks, drafts, deposits, interest, dividends, and income.

(13) "Last-known Address" means a description of the location of the apparent owner sufficient for the purpose of delivery of mail.

(14) "Negative Report" means a report showing the holder had no inactive accounts or other unclaimed assets to report for a particular reporting period.

(15) "Owner" means a depositor in case of a deposit, a beneficiary in case of a trust other than a deposit in trust, a creditor, claimant, or payee in case of other intangible property, or a person, or the person's legal representative, having a legal or equitable interest in property.

(16) "Person" means an individual, business association, state or other governmental or political subdivision or agency, public corporation, public authority, estate, trust, two or more persons having a joint or common interest, or any other legal or commercial entity.

(17) "Positive Owner Contact" means documented contact between an owner and the holder; either generated or initiated by the owner or in response to the holder.

(18) "Property" includes tangible and intangible property.

(19) "Reportable" means the appropriate dormancy period as set forth in OAR 141-045-026 after which time an owner has not claimed his or her asset from a holding company, and the holder has taken appropriate steps to find the owner, as described in 141-045-0061.

(20) "Safekeeping Depository" means any leased or rented depository used as a deposit for safekeeping of tangible or intangible property.

(21) "Tangible Property" means:

(a) Property actually being held in a safekeeping depository and includes, but is not limited to:

(A) Contents of safe deposit boxes in financial organizations;

(B) Contents of safekeeping repositories located in hospitals, health-care facilities, motels, hotels, jewelry stores, department stores, professional offices, or any other site where the holder is acting as a safekeeping custodian for the rightful owner subject to the following exceptions:

(i) Used personal clothing or similar items with little or no commercial value.

(ii) Items that are hazardous including, but not limited to: batteries, chemicals, explosives, medical waste, ammo, drugs or similar controlled substances.

(b) Property held for the owner by a court, state or other government, governmental subdivision or agency, law enforcement agency, public corporation or public authority (for instance unclaimed court exhibits) subject to the following exceptions:

(A) Used personal clothing or similar items with little or no commercial value.

(B) Items that are hazardous including, but not limited to: batteries, chemicals, explosives, medical waste, ammo, drugs or similar controlled substances.

(22) "Third Party Administrator" is a person contracted by the holder to manage and process account records.

Stat. Auth.: ORS 98.302 - 98.436 & 273.045
Stats. Implemented: ORS 98
Hist.: LB 2-1984, f. & ef. 3-13-84; LB 4-1991, f. & cert. ef. 6-21-91; LB 5-1994, f. & cert. ef. 10-20-94; DSL 13-1999, f. & cert. ef. 4-5-99; DSL 8-2002, f. 12-24-02 cert. ef. 1-1-03; DSL 3-2003, f. 12-15-03, cert. ef. 1-1-04; DSL 8-2008, f. 12-10-08, cert. ef. 1-1-09; DSL 1-2014, f. 1-13-14, cert. ef. 2-1-14

141-045-0021

Dormancy Periods

(1) Except as provided in this rule, the dormancy period for all tangible and intangible property is three years. After the expiration of the dormancy period, the property is presumed abandoned and subject to the provisions of these rules pertaining to unclaimed property.

(2) The dormancy period for the following deposits or refunds held by a utility is one year if unclaimed by the apparent owner after the date of termination of services or when the funds otherwise become payable or distributable:

(a) A deposit to secure payment, or a sum paid in advance for utility services, less lawful deductions; and

(b) A sum received for utility services, which the utility has been ordered to refund, including interest on the sum, less lawful deductions.

(3) The dormancy period is one year for all intangible personal property distributable in the course of dissolution of a business association or financial institution.

(4) The dormancy period for the following property is two years:

(a) Tangible and intangible property held in a safe deposit box or other safekeeping repository;

(b) Assets of dissolved cooperatives;

(c) Stale dated government checks or warrants including unpresented payroll checks;

(d) Tangible and intangible property held by a court, state, or other government, governmental subdivision or agency, law enforcement agency, public corporation or public authority;

(e) Life or endowment insurance policies where the insured would have attained the limiting age under the mortality table of an existing policy; and

(f) All intangible personal property and any income or increment on such property held in a fiduciary capacity.

(5) The dormancy period for money orders is seven years.

(6) The dormancy period for traveler's checks is 15 years.

Stat. Auth.: ORS 98.302 - 98.436 & 273.045
Stats. Implemented: ORS 98
Hist.: DSL 8-2002, f. 12-24-02 cert. ef. 1-1-03; DSL 3-2003, f. 12-15-03, cert. ef. 1-1-04; DSL 8-2008, f. 12-10-08, cert. ef. 1-1-09

141-045-0031

Examples of Unclaimed Property

(1) The following types of property that are unclaimed for three years without positive owner contact are presumed abandoned and are reportable to the Department:

(a) Any account deposited in a financial institution and any accrued interest and dividends;

(b) Any account including shares, dividends, deposit accounts, and interest held by credit unions as defined in ORS 723.006 that are due or standing in the name of a member, beneficiary or other person who cannot be contacted by first class mail at the last address shown on the records of the credit union;

(c) Any sums payable for which a financial institution is directly liable, including checks, drafts, cashier's checks, certified checks, or similar instruments;

(d) Any stock, mutual fund, or other certificate of ownership, dividend, profit, distribution interest, payment on principal or other sum held or owing by a business association for a shareholder, certificate holder, member, bondholder or the actual instrument or book entry shares which shows ownership or interest in stocks, bonds, or mutual funds;

(e) Any certificate of deposit. If the account is in the form of a dividend reinvestment plan, the dormancy period shall begin at the first maturity date after the holder determines that the owner cannot be located;

(f) Funds held or owing under any life or endowment insurance policy or annuity contract that has matured or terminated and has become due and payable as established from the records of the insurance company.

(g) Credit memos issued in the ordinary course of the holder's business;

(h) Except as provided in OAR 141-045-0031(3)(c), unpaid wages, including commissions and wages represented by uncashed payroll checks owing in the ordinary course of the holder's business;

(i) Any other disbursements generated during the ordinary course of the holder's business; and

(j) All intangible personal property not otherwise covered by ORS 98.302 through 98.436 that is held or owing in the ordinary course of the holder's business after it becomes due and payable.

(2) The following types of property that are unclaimed for two years without positive owner contact are presumed abandoned and are payable to the Department:

(a) A life or endowment insurance policy or annuity contract not matured by actual proof of the death of the insured or annuitant according to the records of the insurance company, pursuant to ORS 98.314(3);

(b) All tangible and intangible property held in a safe deposit box or any other safekeeping depository in the ordinary course of the holder's business after the lease or rental period has expired. This category of property does not include:

(A) Personal property that has been willfully abandoned by the owner, such as automobiles, furniture, household goods, or property covered by other statutes;

(B) Tangible property consisting of used personal clothing or household items with little or no commercial value or any hazardous materials.

(c) All intangible property held for the owner by any court, state or other government, governmental subdivision or agency, county fiscal officer, public corporation, public authority, quasi-governmental agency, public officer of this state, political subdivision of this state, or Public Employees' Retirement System, except those with a court order prohibiting the withdrawal of same, including, but not limited to:

(A) Fines;

(B) Bail;

(C) Restitution;

(D) Child support;

(E) Condemnation payments;

(F) Judgment proceeds;

(G) Unclaimed municipal bonds and the interest thereon.

(d) All intangible personal property and any accrued interest held in a fiduciary capacity, including but not limited to property management security deposits, attorney trust accounts, escrow accounts, trust accounts and funds in an individual retirement account or a retirement plan or a similar account or plan established under the Internal Revenue laws of the United States if under the terms of the account or plan, distribution of all or part of the funds would then be mandatory.

(e) Tangible property held for the owner by a court, state or other government, governmental subdivision or agency, public corporation or public authority; law enforcement agency, other than property seized by a removing authority as defined by ORS 98.245(1)(b). This category of property does not include:

(A) Personal property that has been willfully abandoned by the owner, such as automobiles, furniture, household goods, or property covered by other statutes;

(B) Tangible property consisting of used personal clothing or household items with little or no commercial value or any hazardous materials

(f) Property held by a dissolved cooperative.

(3) Funds in an individual retirement account or a retirement plan or a similar account or plan established according to the Internal Revenue laws of the United States of America are not payable or distributable within the meaning of OAR 141-045-0021(4)(f) unless, under the terms of the account or plan, distribution of all or part of the funds would then be mandatory or the holder has determined the account owner is deceased and is unable to distribute to the beneficiaries.

(4) The following types of property that are unclaimed for one year without positive owner contact are presumed abandoned and are reportable to the Department:

(a) Deposits made by a subscriber with a utility to secure payment or any sum paid in advance for utility services;

(b) Sums received for utility services which a utility has been ordered to refund;

(c) All unclaimed intangible personal property distributable in the course of a dissolution of a business association, or financial institution.

(5) Any sums payable on a money order or similar written instrument, other than a third party bank check that has been outstanding for more than seven years after its issuance is considered unclaimed and reportable to the Department.

(6) Any sum payable on a traveler's check that has been outstanding for more than 15 years is considered unclaimed and reportable to the Department.

Stat. Auth.: ORS 98.302 - 98.436 & 273.045
Stats. Implemented: ORS 98
Hist.: LB 4-1991, f. & cert. ef. 6-21-91; LB 5-1994, f. & cert. ef. 10-20-94; LB 2-1995, f. & cert. ef. 6-15-95; DSL 13-1999, f. & cert. ef. 4-5-99; DSL 8-2002, f. 12-24-02 cert. ef. 1-1-03; DSL 3-2003, f. 12-15-03, cert. ef. 1-1-04; DSL 8-2008, f. 12-10-08, cert. ef. 1-1-09; DSL 1-2014, f. 1-13-14, cert. ef. 2-1-14

141-045-0041

Report Forms

(1) A holder shall submit reports electronically in a format prescribed by the Department.

(2) A holder may request permission to submit a hard copy report. The request must be in writing and include an explanation of the difficulty of filing electronically.

(3) The Department shall post on its website, electronic formatting requirements, and instructions. Any changes to electronic formatting requirements shall be posted at least one reporting cycle prior to the effective date.

(4) The Department may provide a separate reporting form to holders of any safekeeping repository, for a detailed listing of all contents and owners.

(5) The Department may, at its discretion, require holders to file negative reports.

Stat. Auth.: ORS 98.302 - 98.436 & 273.045
Stats. Implemented: ORS 98
Hist.: LB 4-1991, f. & cert. ef. 6-21-91; LB 5-1994, f. & cert. ef. 10-20-94; DSL 13-1999, f. & cert. ef. 4-5-99; DSL 8-2002, f. 12-24-02 cert. ef. 1-1-03; DSL 3-2003, f. 12-15-03, cert. ef. 1-1-04; DSL 8-2008, f. 12-10-08, cert. ef. 1-1-09; DSL 1-2014, f. 1-13-14, cert. ef. 2-1-14

141-045-0061

Actions Required of Holders Before Reporting

(1) As soon as it appears that an account with a value of $100 or more is inactive, but not less than 60 (sixty) days prior to filing the annual report, each holder shall exercise due diligence in making a reasonable, good faith effort to:

(a) Confirm that an account is in fact inactive;

(b) Notify the owner that the holder will report the account to the Department as unclaimed property: and

(c) Locate the owner.

(2) In exercising due diligence under subsection (1) of this section, a holder may:

(a) Verify that the owner has not communicated in writing with the holder concerning the asset;

(b) Verify that the owner has not otherwise indicated an interest in the asset as evidenced by a memorandum or other record on file prepared by an employee of the holder;

(c) Verify that the owner does not own other accounts in the holder's organization about which the owner has communicated with the holder (for example, the Trust Department of a financial institution could contact other departments of that institution): or

(d) Where the account is that of a credit union member, verify that the member has participated in voting during a regularly scheduled credit union meeting.

(3) If a holder is unable to locate an owner, the holder may exercise due diligence under subsection (1) of this section by:

(a) Verifying that the owner is not a current employee of the holder;

(b) Reviewing telephone directories, or other available databases to verify address and telephone number;

(c) Verifying that the owner is not a well-known individual or organization (for example, Department of Treasury, IRS); or

(d) Any other effort the holder may take to find an owner.

(4) A holder shall retain records or documentation of its compliance with the requirements of this section for three years and make the records or documentation available for inspection by the Department upon request.

Stat. Auth.: ORS 98.302 - 98.436 & 273.045
Stats. Implemented: ORS 98
Hist.: LB 4-1991, f. & cert. ef. 6-21-91; LB 5-1994, f. & cert. ef. 10-20-94; LB 6-1996, f. & cert. ef. 10-15-96; DSL 13-1999, f. & cert. ef. 4-5-99; DSL 8-2002, f. 12-24-02 cert. ef. 1-1-03; DSL 3-2003, f. 12-15-03, cert. ef. 1-1-04; DSL 8-2008, f. 12-10-08, cert. ef. 1-1-09; DSL 1-2014, f. 1-13-14, cert. ef. 2-1-14

141-045-0100

Report and Delivery of Unclaimed Property to Division

(1) Every person holding funds or other tangible or intangible property, presumed abandoned according to ORS 98.302 to 98.352 shall report and pay or deliver all such property to the Department, except that funds transferred to the General Fund by governmental agencies pursuant to ORS 293.455(1)(a) shall only be reported to the Department.

(2) Each holder shall be responsible for the content, accuracy, and timeliness of the holder's report, regardless of whether the report is prepared by the holder or its agent. The holder shall designate a staff contact person responsible for the report.

(3) For accounts dormant as of June 30, the holder shall file the report after October 1, but not later than November 1.

(4) The Department may, at its discretion, postpone the reporting date, or allow early reporting and payment or delivery upon written request by any person required to file a report.

(5) A holder shall report property having a value of $50 or more per account or owner of record, individually, and shall include the following information, if known:

(a) The complete name, address of record, Social Security number, previous names, and any previous addresses of each listed owner; and

(b) The type of account, identification number, reference number, last activity or transaction date used to presume abandonment, and any specific description of the unclaimed property according to the records of the holder.

(6) If the holder believes it is more efficient, it may report a lump sum value, known as an aggregate, for the total of individual accounts $49.99 or less, except when the total amount held for any one owner of several small amounts equal or exceed $50 dollars. If owner detail is not submitted, the Department may request the holder to certify ownership when a potential claim exists for a portion of the lump sum reported.

(7) To assist the Department in returning funds to the owner of record, a holder may report the owner detail information required under subsection (5) of this rule for property having a value of $49.99 or less per account or owner of record but the Department may not require this action.

(8) In addition to the information required above, a life insurance company shall also report the following information, if known:

(a) The full name of each insured or annuitant, or if a class of beneficiaries is named, the full name of each current beneficiary in the class, and last known address according to the holder's records;

(b) The address of each beneficiary; and

(c) The relationship of each beneficiary to the insured.

(9) A holder of safekeeping depositories shall comply with the following additional requirements:

(a) The holder shall complete the specific report form for safekeeping contents or include the required information in the holder's computer-generated format and file the report, separate from the contents, no later than November 1.

(b) In addition to the information required in subsection (5) of this section, list each item left in a safekeeping depository, and the identity of the owner. The holder shall include information about the original box if the holder moved items to a safekeeping area.

(c) In accordance with directions from the Department, the holder shall deliver the package of safekeeping depository contents marked "to be delivered unopened," to the Department by certified mail, return receipt requested or hand carried by a courier. The Department shall sign a receipt for the unopened package upon delivery to the Department, and forward the receipt to the holder within five working days.

(d) The holder shall clearly identify on the package the holder's complete name and return address.

(e) With the exception of hazardous tangible property noted in OAR 141-045-0031(2)(b), the holder shall forward the complete contents of safekeeping depositories to the Department intact. The holder may not convert, substitute or exchange any coins and currency found in the box.

(f) The holder may include information about safekeeping depository costs in its report to the Department. When the owner files a claim for the property, the Department shall require the owner to furnish a paid receipt or waiver for these costs from the holder before the claim will be approved.

(10) Any holder, business association, transfer agent, registrar or other person acting on behalf of the holder of an intangible equity ownership interest deemed unclaimed according to ORS 98.322 shall, in addition to supplying the information required in OAR 141-045-0100(5) above:

(a) Report and transfer the shares directly to the Department’s designated stock broker or transfer agent via available electronic medium and include a confirmation of the transfer with the report.

(b) When an electronic method of transfer is not available the holder shall:

(A) Where the original certificate is being held by the holder for the owner (i.e., stock or other certificate of ownership of a business association which has been returned to the holder, who cannot find the owner), cancel that certificate and issue a replacement certificate of ownership to the Department; or

(B) When the holder does not hold the original certificate, issue a replacement certificate i.e., a duplicate certificate of ownership or other distribution or stock or other certificates of ownership of a business association issued in the name of the Department of State Lands as custodian of unclaimed property. The original certificate of ownership is presumed to be in the possession of the missing owner to the Department.

(c) In any case, the holder shall report and forward to the Department all outstanding accrued dividends, along with the certificate.

(11) In addition to supplying the information required in OAR 141-045-0100(5), a holder reporting mutual funds in book entry form shall:

(a) Transfer the account directly into the Department’s account at the Department’s designated broker dealer and forward a confirmation of account transfer to the Department along with the report; and

(b) Forward future income in the form of cash (for example, dividends, capital gains, etc.) payable to the Department from mutual fund accounts with dividend reinvestment plans.

(12) If the holder is a dissolved agricultural cooperative, the holder shall forward the original reports detailing unclaimed dissolved agricultural cooperative accounts to the Department along with the funds, and file a copy of the report with the State Board of Higher Education. The Department shall reconcile the report to the delivered funds, deduct the costs as provided for in ORS 62.720 and forward the funds to the State Board of Higher Education within 14 working days after receiving the funds.

(13) The receiver or other liquidating agent for a dissolved corporation shall prepare a report containing the names and last-known addresses of the persons entitled to such funds.

(14) Before October 1 each year, each state agency shall prepare a report of all checks, warrants, and orders drawn by it which have been outstanding for a period of more than two years prior to July 1, and that have not been paid by the State Treasurer. The report shall not include checks or orders that have already been paid pursuant to indemnity bonds. The agency shall forward the report to the Department before November 1.

(15) After October 1, the State Treasurer may refuse payment of the unpresented checks or orders included in the report, and upon instructions by the issuing agency shall:

(a) Transfer and credit the amounts of the unpresented checks or orders dedicated for general funding to the General Fund;

(b) Except for federal funds governed by federal laws and rules as provided in ORS 291.003 and 409.040(2), transfer all other funds to the Department; and

(c) Report information about any payment made to an owner subsequent to filing the report, but before transferring the funds to the Department.

(16) If the holder of the unclaimed account is a successor to other persons who previously held the property, or if the holder has had a name change, the holder shall include in the initial report prior known names and addresses of the original or previous holder.

Stat. Auth.: ORS 98.302 - 98.436 & 273.045
Stats. Implemented: ORS 98
Hist.: LB 4-1991, f. & cert. ef. 6-21-91; LB 5-1994, f. & cert. ef. 10-20-94; LB 6-1996, f. & cert. ef. 10-15-96; DSL 13-1999, f. & cert. ef. 4-5-99; DSL 8-2002, f. 12-24-02 cert. ef. 1-1-03; DSL 3-2003, f. 12-15-03, cert. ef. 1-1-04; DSL 8-2008, f. 12-10-08, cert. ef. 1-1-09; DSL 1-2014, f. 1-13-14, cert. ef. 2-1-14

141-045-0105

Confidentiality of Records

(1) All records of dormant accounts shall be exempt from public review as follows:

(a) The holders shall withhold dormant account information for 12 months from the time the property becomes reportable to the Department.

(b) The Department shall withhold unclaimed account information for 24 months after receipt of the report and property.

(c) All lists of uncashed warrants or stale dated checks issued by a government or public authority pursuant to ORS 98.336 shall be exempt from public review from the issued date until 24 months after the property is remitted to the Department.

(2) The Department may not disclose to any other state or any person any confidential information provided by the Department of Revenue from taxpayer returns.

Stat. Auth.: ORS 98.302 - 98.436 & 273.045

Stats. Implemented: ORS 98

Hist.: LB 5-1994, f. & cert. ef. 10-20-94; LB 6-1996, f. & cert. ef. 10-15-96; DSL 13-1999, f. & cert. ef. 4-5-99; DSL 8-2002, f. 12-24-02 cert. ef. 1-1-03; DSL 3-2003, f. 12-15-03, cert. ef. 1-1-04

141-045-0115

Requirements of the Department of State Lands to Locate Owners

(1) Within one year after receipt of reports, payment, and delivery of accounts as required by OAR 141-045-0100, the Department shall provide public notice that the names of owners of unclaimed property have been added to the Department's unclaimed property Website by publishing notice at least twice in a newspaper or other generally circulated periodical published in this state.

(2) The Department also shall make reasonable efforts to locate the owners of unclaimed property reported and received by the Department. The Department's efforts shall include, but need not be limited to the following:

(a) Contracted services with established firms, credit bureaus, telephone networking companies; or

(b) Interagency agreements with other governmental agencies, such as Social Security Administration, Insurance Commission, Motor Vehicles Division, Corporation Commission; or

(c) Use of the internet, reverse directories, telephone books, or other such publications.

Stat. Auth.: ORS 98.302 - 98.436 & 273.045
Stats. Implemented: ORS 98
Hist.: LB 5-1994, f. & cert. ef. 10-20-94; LB 6-1996, f. & cert. ef. 10-15-96; DSL 13-1999, f. & cert. ef. 4-5-99; DSL 8-2002, f. 12-24-02 cert. ef. 1-1-03; DSL 3-2003, f. 12-15-03, cert. ef. 1-1-04; DSL 8-2008, f. 12-10-08, cert. ef. 1-1-09

141-045-0120

Examination of Holder Accounts

(1) In accordance with ORS 98.412, the Department may examine the records and other accounts of any holder to determine whether the holder has complied with the provisions of ORS 98.302 to 98.436.

(2) The Department may conduct an examination whether or not the holder believes it is in possession of reportable property.

(3) The examination may be performed by personnel employed by the Department of State Lands, employees of the Department of Consumer and Business Services, Division of Audits of the Office of the Secretary of State, or any other designated person under contract with the Department of State Lands.

(4) To the extent possible, the Department shall enter into agreements with other state or federal entities who regularly examine the records of financial institutions. Under the agreements, the state and federal agencies shall examine the records of the financial institutions to determine compliance with ORS 98.352. If the state or federal agency does not enter into an agreement with the Department, the Department shall conduct the examination.

(5) The types of records and accounts subject to examination include, but are not limited to:

(a) Contractual agreements between depositors and the financial institution regarding the deduction of service charges authorized according to ORS 708.500, account increases or decreases, and the cessation of interest payments;

(b) Records of current accounts, dormant accounts, and accounts that may have been closed and archived;

(c) The holder's procedures for administering dormant accounts, including searching for and notifying owners to ensure compliance with OAR 141-045-0030;

(d) Bank reconciliations, outstanding checklists and bank statements;

(e) Aged accounts receivable reports;

(f) Reports from transfer agents showing last date of positive contact with stockholders;

(g) Uncashed checks that have been returned by the United States Post Office as undeliverable;

(h) Uncashed payroll checks that have been returned by a company plant or office;

(i) Journal entries that specifically write off stale dated checks;

(j) Third party administrators' contracts, records and reconciliations; and

(k) Holder trial balance of accounts.

Stat. Auth.: ORS 98.302 - 98.436 & 273.045
Stats. Implemented: ORS 98
Hist.: LB 4-1991, f. & cert. ef. 6-21-91; LB 5-1994, f. & cert. ef. 10-20-94; Renumbered from 141-045-0120(5) & (6) to 141-045-0125(1) & (2); DSL 13-1999, f. & cert. ef. 4-5-99; DSL 8-2002, f. 12-24-02 cert. ef. 1-1-03; DSL 3-2003, f. 12-15-03, cert. ef. 1-1-04

141-045-0121

Procedure for Examination of Holder

(1) The Department shall give written notice to the holder at least ten days prior to an examination of all records and accounts subject to the Unclaimed Property Act.

(2) The Department may conduct an examination opening conference with a holder before beginning an examination. At the opening conference, the Department shall identify the examination period, describe the general examination methods that will be used, and provide the initial request for records.

(3) The Department shall issue a report of preliminary findings reflecting the potential liability for unclaimed property. The Department shall allow not less than 30 days for the holder to respond to the preliminary findings report.

(4) Upon completion of an examination, the Department shall provide a written report reflecting the total unclaimed property reporting liability and any interest due on amounts due and owing for failure to report and deliver property due and payable for prior years. The Department may hold a conference with the holder to provide the written report. The written report shall include information to the holder that includes:

(a) Recommendations for maintaining ongoing compliance, and

(b) Explaining the availability of an appeal of the findings as described in OAR 141-045-0126.

(5) Within 30 days after the Department delivers a final report of examination findings, the holder shall deliver to the Department any unclaimed property and interest due to the Department based on the examination findings. Upon request of the holder, the Department may establish a payment schedule or extend the payment period.

Stat. Auth.: ORS 98.302 - 98.436, 273.045
Stats. Implemented: ORS 98
Hist.: DSL 8-2002, f. 12-24-02 cert. ef. 1-1-03; DSL 3-2003, f. 12-15-03, cert. ef. 1-1-04

141-045-0122

Entering into Contract with Contract Auditor

The Department may enter into a contract with a person for the sole purpose of examining the records of holders to determine compliance with ORS 98.302 to 98.436. The Department may consider any factors the Department deems relevant when entering into a contract for services requested in the performance of an unclaimed property examination.

Stat. Auth.: ORS 98.302 - 98.436, 273.045
Stats. Implemented: ORS 98
Hist.: DSL 8-2002, f. 12-24-02 cert. ef. 1-1-03; DSL 3-2003, f. 12-15-03, cert. ef. 1-1-04

141-045-0123

General Conditions and Requirements of Contract with Contract Auditor

(1) A contract auditor shall comply with all terms and conditions specified in the contract with the Department.

(2) A contract auditor may not subcontract any work without the prior written authorization from the Department. The contract auditor is responsible for ensuring that any subcontractors used during an examination possess sufficient training and experience to adequately perform the unclaimed property examination and agree to comply with all terms and conditions of the contract auditor's contract with the Department.

(3) A contract auditor shall possess an ability to examine the records of entities holding various types of unclaimed property.

(4) A contract auditor shall have security procedures in place to ensure that all unclaimed property examination reports and working papers are secure.

(5) A contract auditor shall have the ability to evaluate and comment on the holder's procedures and accounting systems related to capturing unclaimed property for present and future reporting period.

(6) A contract auditor shall maintain independence in mental attitude in all matters relating to an examination assignment.

(7) A contract auditor may not engage or present itself as representing the Department in any examination without the prior written consent from the Department.

Stat. Auth.: ORS 98.302 - 98.436, 273.045
Stats. Implemented: ORS 98
Hist.: DSL 8-2002, f. 12-24-02 cert. ef. 1-1-03; DSL 3-2003, f. 12-15-03, cert. ef. 1-1-04

141-045-0124

Contract Auditor Guidelines

A contract auditor shall adhere to the following guidelines:

(1) A contract auditor shall not participate in examinations in which the contract auditor's participation could be construed or perceived as a conflict of interest. If either the Department or the contract auditor believes that the auditor cannot conduct an assigned examination due to a conflict of interest or for any other reason, the Department shall determine whether recusal of the contract auditor from the assignment is appropriate or necessary. If the contract auditor is recused from conducting the examination of a holder, the Department may authorize another contract auditor to complete the examination.

(2) A contract auditor shall maintain strict confidentiality of any nonpublic records or documents gathered during the course of an examination in accordance with the contract between the Department and the contract auditor.

(3) A contract auditor shall properly document the review and make the auditor's working papers gathered during examinations available on demand for review by the Department and the Department of Justice.

(4) Upon request of the Department or the holder, the contract auditor shall provide the holder with relevant copies of working papers supporting any calculation made of unclaimed property reportable and deliverable to the Department.

(5) A contract auditor shall maintain working papers for a minimum of five years following the completion of an examination assignment, the delivery of unclaimed property, the resolution of any appeal or the finality of judgment in any litigation, whichever is later.

(6) A contract auditor shall conduct examinations consistent with ORS 98.302 to 98.436, OAR 141-045-0121 (Procedures For Examination Of Holder) and other applicable statutes and rules, policies of the State Land Board and the Department of State Lands, generally accepted accounting principles, generally accepted auditing standards and any relevant rules related by examinations adopted pursuant to ORS 98.302 to 98.436 as such rules relate to the reporting and delivery of unclaimed property from holders.

Stat. Auth.: ORS 98.302 - 98.436, 273.045
Stats. Implemented: ORS 98
Hist.: DSL 8-2002, f. 12-24-02 cert. ef. 1-1-03; DSL 3-2003, f. 12-15-03, cert. ef. 1-1-04

141-045-0125

Owner Identification Information

(1) Every holder shall maintain a record of the name and last-known address of the owner, any signature cards, or other evidence which would assist in the identification of the owner for three years after the holder has remitted the property to the Department.

(2) Any holder that sells traveler's checks, cashier's checks, credit memos, money orders, or other similar written negotiable instruments, other than third party bank checks for which the business is directly liable, or that provides such instruments to others for sale, shall maintain a record of those instruments while they remain outstanding, including the state and date of issue, for three years after the date the holder has remitted the property to the Department.

Stat. Auth.: ORS 98.302 - 98.436 & 273.045
Stats. Implemented: ORS 98
Hist.: LB 4-1991, f. & cert. ef. 6-21-91; LB 5-1994, f. & cert. ef. 10-20-94, Renumbered from 141-045-0120(5) & (6); LB 6-1996, f. & cert. ef. 10-15-96; DSL 13-1999, f. & cert. ef. 4-5-99; DSL 8-2002, f. 12-24-02 cert. ef. 1-1-03; DSL 3-2003, f. 12-15-03, cert. ef. 1-1-04

141-045-0126

Appeal of Examination Findings

(1) Request for a contested case hearing. Any holder adversely affected by the findings or decision of the Department may request a contested case hearing pursuant to the provisions of ORS 183.413 to 183.470. The request for a contested case hearing must be received by the Department within 21 days of the date of mailing or delivery of the final written report described in OAR 141-045-0121(4). If a holder fails to request a contested case herein within the time allowed, the findings and decision shall become final.

(2) Collaborative Dispute Resolution for Findings Based on Estimates. Any holder who is adversely affected by the findings or decision of the Department where the findings or decision are based on estimates as described in OAR 98.412(4) may request the Department engage in collaborative dispute resolution. A holder may retain the right to a contested case while requesting collaborative dispute resolution, but a request to engage in collaborative dispute resolution does not enlarge the time allowed for a holder to request a contested case hearing, as set forth is (1) above. The Department may decline to engage in collaborative dispute resolution and set the case for a contested case hearing. If the Department decides to participate in collaborative dispute resolution the Department shall postpone the contested case hearing to give the parties a reasonable opportunity to complete the collaborative dispute resolution, but in no event shall the hearing be postponed more the 45 days from the date of the request for a contest case hearing. The collaborative dispute resolution shall consist of mediation or such other process as the parties may agree. Department and the holder shall select a trained facilitator/mediator from a list of pre-qualified individuals and share the costs of the facilitator/mediator.

Stat. Auth.: ORS 98.302 - 98.436 & 273.045
Stats. Implemented: ORS 98
Hist.: DSL 8-2002, f. 12-24-02 cert. ef. 1-1-03; DSL 3-2003, f. 12-15-03, cert. ef. 1-1-04; DSL 8-2008, f. 12-10-08, cert. ef. 1-1-09

141-045-0130

Service Charges and Payments of Interest on Deposit Accounts

(1) With respect to any demand, savings or matured time deposit with a financial institution, including a deposit that is automatically renewable, and any funds paid toward the purchase of a share, mutual investment certificate or any other interest in a financial institution, a holder may not impose any charge or cease payment of interest due to dormancy or inactivity unless:

(a) There is a written contractual agreement between the holder and the owner of the account clearly and prominently setting forth the conditions under which a service charge may be imposed or the payment of interest terminated;

(b) The establishment of a service charge, the change of an existing service charge or the change of a policy pertaining to the payment of interest is uniformly applied to all dormant or inactive accounts;

(c) The holder shall give written notice to the owner at the owner's last-known address whenever an account becomes dormant or inactive; and;

(d) Three months written notice is given by first-class mail to the last-known address of the owner of a dormant or inactive account before the holder may apply a service charge to the account or stop paying interest on that account.

(2) A signature card is not a written contractual agreement for the purposes of subsection (1)(a) of this section, however, the signature card and the written contractual agreement may be contained in one instrument.

(3) A holder may not deduct from the amount of any instrument subject to ORS 98.308(5) or (6) any charge imposed by reason of the failure to present the instrument for payment unless there is a valid and enforceable written contract between the holder and the owner of the instrument pursuant to which the holder may impose a charge, and the holder regularly imposes such charges and does not regularly reverse or otherwise cancel them.

(4) Notwithstanding the provisions in subsections (1) to (3) of this section, a holder may not deduct a service charge or fee or otherwise reduce an owner's unclaimed account unless:

(a) There is a valid written contract between the holder and the owner that allows the holder to impose a charge;

(b) The service charge or fee is imposed uniformly on all accounts; and

(c) Three months' written notice is given by first-class mail to the last-known address of all owners before the charge or fee is levied.

Stat. Auth.: ORS 98.302 - 98.436 & 273.045
Stats. Implemented: ORS 98
Hist.: LB 4-1991, f. & cert. ef. 6-21-91; LB 5-1994, f. & cert. ef. 10-20-94; DSL 13-1999, f. & cert. ef. 4-5-99; DSL 8-2002, f. 12-24-02 cert. ef. 1-1-03; DSL 3-2003, f. 12-15-03, cert. ef. 1-1-04; DSL 8-2008, f. 12-10-08, cert. ef. 1-1-09

141-045-0150

Disposition of Unclaimed Property

The Department shall dispose of all tangible property presumed abandoned and delivered to the Department in accordance with OAR 141-045-0185.

Stat. Auth.: ORS 98.302 - 98.436 & 273.045
Stats. Implemented: ORS 98
Hist.: LB 4-1991, f. & cert. ef. 6-21-91; LB 5-1994, f. & cert. ef. 10-20-94; DSL 13-1999, f. & cert. ef. 4-5-99; DSL 8-2002, f. 12-24-02 cert. ef. 1-1-03; DSL 3-2003, f. 12-15-03, cert. ef. 1-1-04

141-045-0155

Relief From Liability

(1) Upon delivery or payment of reportable unclaimed property to the Department in compliance with ORS 98.302 to 98.436, the state shall assume custody of the property and the holder is relieved of all liability for any claim which then exists or which thereafter may arise or be made in respect to the property, to the extent of the value of the property so paid or delivered.

(2) The Department shall indemnify the holder of securities presumed abandoned according to ORS 98.322 to the extent allowed under the Oregon Constitution.

(3) No person shall have any claim against the state, the holder, any transfer agent, registrar or other person acting for or on behalf of a holder for any change in market value of the property occurring after delivery by the holder to the Department, or after sale of the property by the Department.

Stat. Auth.: ORS 98.302 - 98.436 & 273.045
Stats. Implemented: ORS 98
Hist.: LB 5-1994, f. & cert. ef. 10-20-94; DSL 13-1999, f. & cert. ef. 4-5-99; DSL 8-2002, f. 12-24-02 cert. ef. 1-1-03; DSL 3-2003, f. 12-15-03, cert. ef. 1-1-04

141-045-0160

Deposit of Funds

(1) All funds received pursuant to ORS 98.302 to 98.436, including the proceeds from the sale of unclaimed property, shall be deposited by the Department of State Lands in the Common School Fund Account with the State Treasurer.

(2) Before making a deposit, the Department shall record the name and last-known address of each person reported by the holder to be entitled to the unclaimed property, the amount due the owner, the name of the holder, and any identifying account, policy or contract number.

(3) Before making a deposit, the Department may deduct:

(a) Any costs in connection with the sale of unclaimed property;

(b) Any costs of mailing, publication, or other efforts to locate owners of unclaimed property as set forth in OAR 141-045-0115; and

(c) Reasonable service charges.

Stat. Auth.: ORS 98.302 - 98.436 & 273.045
Stats. Implemented: ORS 98
Hist.: LB 4-1991, f. & cert. ef. 6-21-91; LB 5-1994, f. & cert. ef. 10-20-94; DSL 13-1999, f. & cert. ef. 4-5-99; DSL 8-2002, f. 12-24-02 cert. ef. 1-1-03; DSL 3-2003, f. 12-15-03, cert. ef. 1-1-04

141-045-0170

Claims for Recovery of Unclaimed Property

(1) Any person may submit a claim for recovery of unclaimed property reported to the Department in accordance with ORS 98.302 to 98.436 and OAR 141-040-0200 through 141-040-0220.

(2) If the claim allowed is for property deposited in the Common School Fund Account, the Department shall return the property or make payment of the proceeds of the sale of the property to the claimant.

(3) If the claim allowed is for funds deposited in the General Fund, the Department shall pay the claim and file a request for reimbursement with the State Treasurer. The State Treasurer shall reimburse the Department within five working days from the fund against which the check or order represented in the claim was issued.

(4) A holder, subsequent to payment or delivery of accounts to the Department may make payment to the apparent owner, and file a claim with the Department. The Department shall reimburse the holder within 60 days after receiving proof from the holder that the owner was paid. The Department shall not assess any fee or other service charge. Upon receiving the funds from the Department, the holder shall assume liability for the claimed asset, and hold the Department harmless from all future claims to the account.

(5) A person making a claim pursuant to ORS 98.392 for securities is entitled to receive either the securities delivered to the Department by the holder, if they still remain with the Department, or the proceeds received from sale, less any amounts deducted pursuant to ORS 98.386. The Department may require claimants to provide a lost instrument bond if the original certificate is not surrendered to the Department.

Stat. Auth.: ORS 98.302 - 98.436 & 273.045
Stats. Implemented: ORS 98
Hist.: LB 4-1991, f. & cert. ef. 6-21-91; LB 5-1994, f. & cert. ef. 10-20-94; DSL 13-1999, f. & cert. ef. 4-5-99; DSL 8-2002, f. 12-24-02 cert. ef. 1-1-03; DSL 3-2003, f. 12-15-03, cert. ef. 1-1-04

141-045-0180

Penalties

Penalty for failure to report, pay or deliver property under ORS 98.302 to 98.436. A person who willfully fails to render any report, to pay or deliver property or to perform other duties required by 98.302 to 98.436 and 98.992 may be required to forfeit and pay to the State Treasurer to be deposited in the Common School Fund Account, an amount determined by the Department of State Lands pursuant to 183.090 of not more than $1,000 for individuals and $50,000 for corporations. This penalty shall be assessed only after at least one reporting cycle, and only after the Department has provided the person with written instructions, including copies of applicable laws and policies. The Department may waive any penalty due under this section with appropriate justification.

Stat. Auth.: ORS 98.302 - 98.436 & 273.045
Stats. Implemented: ORS 98
Hist.: LB 4-1991, f. & cert. ef. 6-21-91; LB 5-1994, f. & cert. ef. 10-20-94; DSL 13-1999, f. & cert. ef. 4-5-99; DSL 8-2002, f. 12-24-02 cert. ef. 1-1-03; DSL 3-2003, f. 12-15-03, cert. ef. 1-1-04

141-045-0185

Disposition of Unclaimed Property, Real Property and Personal Effects

(1) Except as otherwise provided in subsections (2), (3), (7) and (8) of this rule, the Department shall sell the contents of safe deposit boxes received from banks or credit unions or other safekeeping repository, all property and personal effects belonging to a deceased person and all other property presumed abandoned and delivered to the Department at such time and place, and in such manner as the Department determines will bring the highest return.

(a) In choosing the most favorable method for sale of property under this subsection, the Department may consider:

(A) A public oral auction;

(B) An electronic commerce forum;

(C) Any other method of sale that ensures the highest returns and provides for open, public participation.

(b) In choosing the most favorable location for the sale of property under this subsection, the Department may consider:

(A) The population of the location;

(B) The cost of conducting the sale in the location;

(C) The type of property being sold;

(D) The public access to the proposed sale location, including parking; and

(E) Any other indicator of market potential of the location.

(2) Contents of safe deposit boxes received from banks or credit unions or other safekeeping repository may be sold after one year unless the Department considers it in the best interest of the state to do otherwise.

(3) Securities shall be sold on the exchange at prices prevailing at the time of the sale or by any other method the Department considers advisable.

(4) In disposing of unclaimed property or property received as part of an escheated estate, the Department of State Lands may:

(a) Obtain the services of a qualified appraiser to assist with the determination of values;

(b) Employ a qualified investment advisor to assist with the custody and sale of securities;

(c) Employ an auctioneer to conduct a public, oral auction or estate sale to dispose of property;

(d) Offer the property through electronic commerce; or

(e) Contract with a real estate broker to sell real property.

(5) Sales shall be conducted by a contractor hired through a process conducted in accordance with the requirements of ORS 279.310 to 279.323. The contractor may not be an employee or relative of an employee of the Department.

(6) For a sale by public oral auction held under subsection (1) of this section, the Department shall publish at least a single notice of the sale at least 10 days in advance of the sale in a newspaper of general circulation in the county where the property is to be sold. For a sale by a method other than public oral auction, the Department shall publish at least a single notice in a newspaper of general circulation in Marion County.

(7) If the Department determines after investigation that any item delivered as unclaimed property or received as part of an escheated estate has insubstantial commercial value, the Department may:

(a) Destroy or otherwise dispose of the property at any time, pursuant to ORS 98.384 including personal papers obtained by escheat under ORS 112.055.

(b) Donate items with little or no commercial value including used clothing, worn-out or broken furniture, and common houseplants to charitable service organizations or other persons such as friends or neighbors of the decedent.

(8) The Department may donate, sell or dispose of food that is part of an escheated estate on site.

(9) If the cost of a public auction would exceed the value of a particular item, the Department need not offer the property for sale. The Department may dispose of the item by obtaining at least three oral bids or request sealed bids from interested parties, selling the item to the highest bidder. Examples are old vehicles, trailers, and extremely heavy or awkward items that would require special handling.

(10) No donations, sales, or other disposition of any unclaimed property or property belonging to estates may be made to employees of the Department or the State Land Board or members of their immediate household, parents, or children not living at home.

(11) The Department may decline the highest bid and re-offer the property for sale if the Department considers the bid price insufficient.

(12) The purchaser of property at any sale conducted by the Department takes the property free of all claims of the owner or previous holder, and of all persons claiming through or under them. The Department shall execute any documents necessary to complete the transfer of ownership.

Stat. Auth.: ORS 98.302 - 98.436, 273.045
Stats. Implemented: ORS 98
Hist.: DSL 8-2002, f. 12-24-02 cert. ef. 1-1-03; DSL 3-2003, f. 12-15-03, cert. ef. 1-1-04

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