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393.022 Escheat of United States savings bonds to Commonwealth.
(1)
(2)
(3)
(4)
(5)
(6)
As used in this section:
(a) "Book-entry bond" means a savings bond maintained by the United
States Treasury in electronic or paperless form as a computer record;
(b) "Definitive bond" means a savings bond issued by the United States
Treasury in paper form;
(c) "Final maturity" means the date a United States savings bond ceases to
earn interest; and
(d) "United States savings bond" means a book-entry bond or definitive bond
issued by the United States Treasury.
This section shall apply to the escheat of United States savings bonds to the
Commonwealth of Kentucky.
A United States savings bond held or owing in this state by any person, or
issued or owed in the course of a holder's business, or by a state or other
government, governmental subdivision, agency, or instrumentality, and all
proceeds thereof, shall be presumed abandoned in this state if:
(a) The last known address of the owner of the United States savings bond is
in this state; and
(b) The United States savings bond has remained unclaimed and
unredeemed for three (3) years after final maturity.
United States savings bonds which are presumed abandoned under
subsection (3) of this section shall escheat to the Commonwealth of Kentucky
three (3) years after becoming abandoned property, and all property rights and
legal title to and ownership of the United States savings bonds or proceeds
from the bonds, including all rights, powers, and privileges of survivorship of
any owner, co-owner, or beneficiary, shall vest solely in the Commonwealth of
Kentucky according to the procedure set forth in subsections (5) to (8) of this
section.
If no claim has been filed in accordance with the provisions of this chapter, the
department shall commence a civil action in the Franklin Circuit Court for a
determination that United States savings bonds have escheated to the
Commonwealth of Kentucky and the Commonwealth of Kentucky is the owner
of the savings bonds.
(a) The department shall provide notice of the action by publication in at least
two (2) newspapers of statewide circulation in accordance with the
provisions of KRS 424.110 to 424.215.
(b) The notice shall list all persons to be served and shall notify those
persons that:
1.
The person has been sued in a named court;
2.
The person must answer the petition or other pleading or otherwise
respond, on or before a specified date not less than fifty (50) days
after the date the notice is first published; and
3.
If the person does not answer or otherwise respond, the petition or
other pleading shall be taken as true and judgment, the nature of
which shall be stated, will be rendered accordingly.
(7)
Prior to providing notice by publication as required by subsection (6) of this
section, the Treasurer or his or her designee shall file with the court an affidavit
stating all the following that apply:
(a) 1.
The residences of all named persons sought to be served, if known;
2.
The names of all persons whose residences are unknown after
reasonable effort to ascertain them; and
3.
The specific efforts made to ascertain the unknown residences;
(b) That the affiant has made a reasonable but unsuccessful effort to
ascertain the names and residences of any persons sought to be served
as unknown parties, and the specific efforts made to ascertain the names
and residences;
(c) That the department is unable to obtain service of summons on the
persons in the state; and
(d) That the case is one in which the department, with due diligence, is
unable to serve summons on the person in this state and:
1.
The case relates to personal property in this state, if any person has
or claims an interest in the property; or
2.
In which the relief demanded consists wholly or partly in excluding
the person from any interest in the property.
(8) If:
(a) No person files a claim or appears at the hearing to substantiate a claim;
or
(b) The court determines that a claimant is not entitled to the property
claimed by the claimant;
then the court, if satisfied by the evidence that the department has substantially
complied with the laws of the Commonwealth, shall enter a judgment that the
subject United States savings bonds have escheated to the Commonwealth of
Kentucky, and all property rights and legal title to and ownership of the United
States savings bonds or proceeds from the bonds, including all rights, powers,
and privileges of survivorship of any owner, co-owner, or beneficiary, shall vest
solely in the Commonwealth of Kentucky.
(9) The department shall redeem the United States savings bonds escheated to
the Commonwealth, and the proceeds from the redemption shall be deposited
into a separate subsidiary account of the abandoned property fund.
(10) After a judgment of escheat has been entered pursuant to subsection (8) of
this section, the Treasurer or his or her designee may, at his or her discretion,
make full or partial payment of requests for the proceeds of United States
savings bonds to persons to whom, in the opinion of the Treasurer or his or her
designee, the Commonwealth should in fairness and equity allow payment.
Effective:April 10, 2014
History: Created 2014 Ky. Acts ch. 102, sec. 4, effective April 10, 2014.
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