Am. Express Travel Related Servs., Inc. v. Commonwealth of KY, No. 09-5898 (6th Cir. 2011)
Annotate this CaseThe district court declared an amendment to Kentucky Revised Statutes Sect. 393.060 unconstitutional. The amendment shortens the period for presumption of abandonment on traveler’s checks from 15 to seven years, accelerating the date at which the issuer must remit outstanding funds to the state. The company claims that the amendment limits its ability to earn interest by investing unclaimed funds. The Sixth Circuit vacated and remanded, applying the "rational basis" test. Although the legislative history did not reflect it, the court the court considered the state's "rational claim" that the amendment was intended to facilitate its legitimate interest in assuming control of abandoned property. The court declined to invalidate the amendment simply because it may be unwise to deviate from the 15-year presumptive abandonment period of the Uniform Unclaimed Property Act, followed by 48 states. The court remanded for consideration of other constitutional claims.
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