393A.040 When property presumed abandoned

393A.040 When property presumed abandoned.

Subject to KRS 393A.120, the following property shall be presumed abandoned if it is

unclaimed by the apparent owner during the period specified below:

(1) A traveler's check, fifteen (15) years after issuance;

(2) A money order, seven (7) years after issuance;

(3) A state or municipal bond, bearer bond, or original-issue-discount bond, three (3)

years after the earliest of the date the bond matures or is called or the obligation to

pay the principal of the bond arises;

(4) A debt of a business association, three (3) years after the obligation to pay arises;

(5) A payroll card or demand, savings, or time deposit account, including a deposit that

is automatically renewable, three (3) years after the maturity of the deposit, except a

deposit that is automatically renewable is deemed matured on its initial date of

maturity unless the apparent owner consented in a record on file with the holder to

renewal at or about the time of the renewal, except:

(a) Property held in an interest-bearing, demand, savings, or time deposit account

shall, from the time it is presumed abandoned under this chapter, be placed by

the holder in an interest-bearing account made assignable to the administrator;

(b) The administrator may examine the records of the holder relevant to the

establishment and maintenance of an interest-bearing account in accordance

with this chapter;

(c) Upon demand and proper proof by a person appearing entitled to payment of

property described in this subsection, the holder may withdraw the property

and any accrued interest for payment to the entitled person;

(d) Property described in this subsection deposited and not claimed ten (10) years

after it is presumed abandoned, or upon actual abandonment, shall be paid to

the administrator upon whichever abandonment occurs first; and

(e) The administrator shall not be required to credit interest on any property

described in this subsection after the property is received under paragraph (d)

of this subsection;

(6) Money or a credit owed to a customer as a result of a retail business transaction,

other than in-store credit for returned merchandise, three (3) years after the

obligation arose;

(7) An amount owed by an insurance company on a life or endowment insurance policy

or an annuity contract that has matured or terminated, three (3) years after the

obligation to pay arose under the terms of the policy or contract or, if a policy or

contract for which an amount is owed on proof of death has not matured by proof of

the death of the insured or annuitant, as follows:

(a) With respect to an amount owed on a life or endowment insurance policy,

three (3) years after the earlier of the date:

1. The insurance company has knowledge of the death of the insured; or

2. The insured has attained, or would have attained if living, the limiting

age under the mortality table on which the reserve for the policy is

based; and

ath of the insured or annuitant, as follows:

(a) With respect to an amount owed on a life or endowment insurance policy,

three (3) years after the earlier of the date:

1. The insurance company has knowledge of the death of the insured; or

2. The insured has attained, or would have attained if living, the limiting

age under the mortality table on which the reserve for the policy is

based; and

(b) With respect to an amount owed on an annuity contract, three (3) years after

the date the insurance company has knowledge of the death of the annuitant;

(8) Property distributable by a business association in the course of dissolution, one (1)

year after the property becomes distributable;

(9) Property held by a court, including property received as proceeds of a class action,

may be paid to the administrator one (1) year after the property becomes

distributable, but shall be paid to the administrator no later than five (5) years after

the property becomes distributable;

(10) Property held by a government or governmental subdivision, agency, or

instrumentality, including municipal bond interest and unredeemed principal under

the administration of a paying agent or indenture trustee, one (1) year after the

property becomes distributable;

(11) Property payable or distributable in the course of a demutualization of an insurance

company, three (3) years after the earlier of the last contact with the policyholder,

or the date the property became payable or distributable;

(12) Wages, commissions, bonuses, or reimbursements to which an employee is entitled,

or other compensation for personal services, other than amounts held in a payroll

card, one (1) year after the amount becomes payable;

(13) A deposit or refund owed to a subscriber by a utility, one (1) year after the deposit

or refund becomes payable; and

(14) Property not specified in KRS 393A.050, 393A.060, 393A.070, 393A.080,

393A.090, or 393A.100, the earlier of three (3) years after the owner first has a

right to demand the property or the obligation to pay or distribute the property

arises.