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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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