2020 Delaware Code
Title 12 - Decedents' Estates and Fiduciary Relations
Chapter 11. Escheats
Subchapter II. Unclaimed Property
§ 1172 Rules and procedures for conducting an examination.
(a) Effective July 1, 2015, and subject to subsection (d) of this section, the State Escheator shall not initiate any new examination of records or an investigation of any person under this section unless the person has first been notified in writing by the Secretary of State that the person may enter into an unclaimed property voluntary disclosure agreement, or the holder fails to otherwise comply with a requirement imposed on such holder pursuant to § 1173 of this title.
(b) Notwithstanding the provisions of § 1173(e)(3) of this title, for any examination authorized by the State Escheator on or before July 22, 2015, except any securities examinations in which estimation is not required, the person under such an examination may notify the State Escheator and the Secretary of State of the person's intent to convert the pending examination into a review under the Secretary of State's voluntary disclosure program and to enter into the Secretary of State's unclaimed property voluntary disclosure program under § 1173 of this title. The person shall notify the State Escheator and Secretary of State in writing in a form and manner provided by the State Escheator and the Secretary of State. If such notice is not received within 60 days of the adoption of regulations under § 1176(b) of this title, the person may not convert the examination into a review under the Secretary of State's unclaimed property voluntary disclosure program under § 1173 of this title. The look back period for any such voluntary disclosure permitted under this section is 10 years prior to when property is presumed abandoned under this chapter from the calendar year in which the State Escheator provided the original notice of examination.
(c) (1) For any examination authorized by the State Escheator before February 2, 2017, the person under examination may notify the State Escheator of the person's intent to expedite the completion of the pending examination by providing written notification on a form provided by the State Escheator that must be received by the State Escheator within 60 days of the adoption of regulations under § 1176(b) of this title.
(2) If the person provides the written notification under paragraph (c)(1) of this section and responds within the time and in the manner established by the State Escheator to all requests for records, testimony, and information made by the person conducting the examination, the State Escheator shall complete the examination and provide an examination report under § 1177 of this title within 2 years from the date of receipt of the written notification and shall waive interest and penalty under §§ 1183 and 1184 of this title.
(3) All requests for records, testimony, and information must be made by the person conducting the examination to the person under examination no later than 18 months after the written notification under paragraph (c)(1) of this section.
(4) The determination whether the person has responded within the time and in the manner established and a resulting determination to terminate expediting the person's examination under this subsection if the person has not, shall be within the complete discretion of the State Escheator and subject only to the review of the Secretary of Finance.
(5) An examination report produced at the conclusion of the expedited examination shall be treated as any other report after the conclusion of an examination of a holder under § 1179(a) of this title.
(d) The State Escheator may authorize an examination of records or an investigation of any person under this section without the person having been notified in writing by the Secretary of State as outlined in subsection (a) of this section in any of the following circumstances:
(1) Pursuant to information received under Chapter 12 of Title 6.
(2) As a joint examination initiated by another state under § 1182 of this title after consultation with the Secretary of State.
(e) The State Escheator shall adopt rules governing procedures and standards for a compliance review under § 1170 of this title and an examination under § 1171 of this title, including rules for use of an estimation, extrapolation, and statistical sampling in conducting an examination.
(f) If the person subject to examination under § 1171 of this title has filed all reports required by § 1142 of this title and has retained the records required by § 1145 of this title, all of the following rules apply:
(1) The examination must include a review of the person's records.
(2) The examination may not be based upon an estimate unless the holder expressly consents in a record to the use of an estimate.
(3) The person conducting the examination shall consider all evidence presented by the person in good faith in preparing the findings of the examination under § 1177 of this title.
(g) Any examination under this section may include the State Escheator utilizing any and all reliable external data, including electronic databases deemed relevant by the State Escheator.
(h) After February 2, 2017, the State Escheator may not conduct any examination of records or an investigation under this section for any period more than 10 years prior to when property is presumed abandoned under this chapter from the calendar year in which the State Escheator provides written notice of such examination, except if the State Escheator reasonably concludes that the holder has filed a report containing a fraudulent or wilful misrepresentation.
67 Del. Laws, c. 267, § 2; 70 Del. Laws, c. 186, § 1; 77 Del. Laws, c. 417, § 4; 80 Del. Laws, c. 2, § 1; 80 Del. Laws, c. 114, § 1; 81 Del. Laws, c. 1, § 2; 81 Del. Laws, c. 48, § 4;
