January 21, 2010
HOUSE BILL No. 1083
DIGEST OF HB 1083
(Updated January 20, 2010 10:44 am - DI 14)
Citations Affected: IC 32-34.
Synopsis: Unclaimed property. Reduces from five years to three years
the period after which the following property is considered abandoned
for purposes of the state's unclaimed property act: (1) A demand,
savings, or matured time deposit. (2) Property payable as a result of a
demutualization, rehabilitation, or related reorganization of a mutual
insurance company. (3) All other property not otherwise specified
under the act. Makes a technical amendment to one provision of the
unclaimed property act to reflect another provision of the unclaimed
property act that specifies that the act does not apply to: (1) a business
to business credit memorandum; or (2) gift certificates.
Effective: July 1, 2010.
January 5, 2010, read first time and referred to Committee on Public Policy.
January 20, 2010, reported _ Do Pass.
January 21, 2010
Second Regular Session 116th General Assembly (2010)
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between statutes enacted by the 2009 Regular and Special Sessions of the General Assembly.
HOUSE BILL No. 1083
A BILL FOR AN ACT to amend the Indiana Code concerning
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 32-34-1-17; (10)HB1083.1.1. -->
SECTION 1. IC 32-34-1-17 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2010]: Sec. 17. (a) This section
does not apply to section 24 of this chapter.
(b) As used in this chapter, "property" means an interest in
intangible personal property, except an unliquidated claim, and all
income or increment derived from the interest, including an interest
that is referred to as or evidenced by:
(1) money, a check, a draft, a deposit, an interest, or a dividend;
(2) a credit balance, a customer overpayment,
a gift certificate, a
security deposit, a refund, a credit memorandum other than a
business to business credit memorandum, an unpaid wage, an
unused airline ticket, mineral proceeds, or an unidentified
(3) stock and other ownership interest in a business association;
(4) a bond, debenture, note, or other evidence of indebtedness;
(5) money deposited to redeem stocks, bonds, coupons, and other
securities or to make distributions;
(6) an amount due and payable under the terms of an insurance
(7) an amount distributable from a trust or custodial fund
established under a plan to provide:
(H) stock purchase;
(I) profit sharing;
(J) employee savings;
(K) supplemental unemployment insurance; or
(c) The term does not include transactions between business entities
(1) a motor carrier (as defined in IC 8-2.1-17-10); or
(2) a carrier (as defined in 49 U.S.C. 13102(3)).
SOURCE: IC 32-34-1-20; (10)HB1083.1.2. -->
SECTION 2. IC 32-34-1-20, AS AMENDED BY P.L.85-2005,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2010]: Sec. 20. (a) For purposes of this section, an indication
of interest in the property by the owner:
(1) does not include a communication with an owner by an agent
of the holder who has not identified in writing the property to the
(2) includes the following:
(A) With respect to an account or underlying shares of stock
or other interest in a business association or financial
(i) the cashing of a dividend check or other instrument of
payment received; or
(ii) evidence that the distribution has been received if the
distribution was made by electronic or similar means.
(B) A deposit to or withdrawal from a bank account.
(C) The payment of a premium with respect to a property
interest in an insurance policy.
(D) The mailing of any correspondence in writing from a
financial institution to the owner, including:
(i) a statement;
(ii) a report of interest paid or credited; or
(iii) any other written advice;
relating to a demand, savings, or matured time deposit
account, including a deposit account that is automatically
renewable, or any other account or other property the owner
has with the financial institution if the correspondence is not
returned to the financial institution for nondelivery.
(E) Any activity by the owner that concerns:
(i) another demand, savings, or matured time deposit
account or other account that the owner has with a financial
institution, including any activity by the owner that results
in an increase or decrease in the amount of any other
(ii) any other relationship with the financial institution,
including the payment of any amounts due on a loan;
if the mailing address for the owner contained in the financial
institution's books and records is the same for both an inactive
account and for a related account.
(b) The application of an automatic premium loan provision or other
nonforfeiture provision contained in an insurance policy does not
prevent the policy from maturing or terminating if the insured has died
or the insured or the beneficiary of the policy otherwise has become
entitled to the proceeds before the depletion of the cash surrender value
of the policy by the application of those provisions.
(c) Property that is held, issued, or owed in the ordinary course of
a holder's business is presumed abandoned if the owner or apparent
owner has not communicated in writing with the holder concerning the
property or has not otherwise given an indication of interest in the
property during the following times:
(1) For traveler's checks, fifteen (15) years after issuance.
(2) For money orders, seven (7) years after issuance.
(3) For consumer credits, three (3) years after the credit becomes
(4) For amounts owed by an insurer on a life or an endowment
insurance policy or an annuity contract:
(A) if the policy or contract has matured or terminated, three
(3) years after the obligation to pay arose; or
(B) if the policy or contract is payable upon proof of death,
three (3) years after the insured has attained, or would have
attained if living, the limiting age under the mortality table on
which the reserve is based.
(5) For property distributable by a business association in a course
of dissolution, one (1) year after the property becomes
(6) For property or proceeds held by a court or a court clerk, five
(5) years after the property or proceeds become distributable. The
property or proceeds must be treated as unclaimed property under
(7) For property held by a state or other government,
governmental subdivision or agency, or public corporation or
other public authority, one (1) year after the property becomes
(8) For compensation for personal services, one (1) year after the
compensation becomes payable.
(9) For deposits and refunds held for subscribers by utilities, one
(1) year after the deposits or refunds became payable.
(10) For stock, dividends, profits, distributions, interest,
redemption, payments on principal, or any other sum held or
owed by a business association for or to a shareholder, certificate
holder, member, bondholder, or other security holders of the
business association, or other interest in a business association,
three (3) years after the earlier of:
(A) the date of the last dividend, stock split, or other
distribution unclaimed by the apparent owner; or
(B) the date of the second mailing of a statement of account or
other notification or communication that was:
(i) returned as undeliverable; or
(ii) made after the holder discontinued mailings to the
(11) For property in an individual retirement account or another
account or plan that is qualified for tax deferral under the Internal
Revenue Code, three (3) years after the earliest of:
(A) the actual date of the distribution or attempted
(B) the distribution date as stated in the plan or trust
agreement governing the plan; or
(C) the date specified in the Internal Revenue Code by which
distribution must begin in order to avoid a tax penalty.
(12) For a demand, savings, or matured time deposit, including a
deposit that is automatically renewable,
five (5) three (3) years
after maturity or five (5) three (3) years after the date of the last
indication by the owner of interest in the property, whichever is
earlier. Property that is automatically renewable is considered
matured for purposes of this section upon the expiration of its
initial period, unless the owner has consented to a renewal at or
about the time of the renewal and the consent is in writing or is
evidenced by a memorandum or other record on file with the
(13) For property payable or distributable in the course of a
demutualization, rehabilitation, or related reorganization of a
mutual insurance company,
five (5) three (3) years after the
(A) the date of last contact with the policyholder; or
(B) the date the property became payable or distributable.
(14) For all other property, the earlier of
five (5) three (3) years
(A) the owner's right to demand the property; or
(B) the obligation to pay or distribute the property;
(d) Property is payable or distributed for purposes of this chapter
notwithstanding the owner's failure to make demand or present an
instrument or a document otherwise required to receive payment.