No. 30596 (Amendment): R966-1-2. Proof Requirements and Bonds

DAR File No.: 30596
Filed: 10/16/2007, 03:08
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

The purpose of this amendment is to allow claimants to purchase a bond in lieu of the actual stock certificate at a higher claim amount.

Summary of the rule or change:

This amendment increases amount of verified claim under which a bond may be provided in place of a lost stock certificate from $250 to $500.

State statutory or constitutional authorization for this rule:

Section 67-4a-501

Anticipated cost or savings to:

the state budget:

There is no cost or savings to the state budget because this amendment simply makes it easier for a member of the public to claim property.

local governments:

None--This rule does not affect local governments.

small businesses and persons other than businesses:

None--This rule does not affect small businesses. This amendment allows persons claiming lost stock to provide a bond at an average cost of 2% of the stock amount in lieu of a stock certificate.

Compliance costs for affected persons:

The cost would be the cost of a bond which averages 2% of the stock amount.

Comments by the department head on the fiscal impact the rule may have on businesses:

There is no impact on businesses. Richard Ellis, Deputy State Treasurer

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Treasurer
Unclaimed Property
Room E315 EAST BUILDING
420 N STATE ST
SALT LAKE CITY UT 84114-2315

Direct questions regarding this rule to:

Betsy Ross at the above address, by phone at 801-538-1355, by FAX at 801-538-1383, or by Internet E-mail at [e-mail]

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

12/17/2007

This rule may become effective on:

12/24/2007

Authorized by:

Betsy Ross, Director

RULE TEXT

R966. Treasurer, Unclaimed Property.

R966-1. Requirements for Claims where no Proof of Stock Ownership Exists.

R966-1-2. Proof Requirements and Bonds.

A. For verified claims with a value less than $[250]500.00, the person may file an affidavit entitled "Uniform Affidavit of Lost Certificate". Such affidavit will constitute and provide sufficient indemnification to permit the administrator to allow the verified claim.

B. For verified claims with a value equal to or greater than $[250]500.00, the person may obtain a bond issued by a licensed surety company rated at least "A" or better by A.M. Best and Co., called an abandoned property bond. The bond shall be a fixed bond for dividends and other definite dollar value items. The bond shall be an open bond for stock certificates and shares claimed. Presentation of the proper bond, or both bonds if both are required, will constitute and provide sufficient indemnification to allow the administrator to allow the verified claim.

 

KEY: stocks, bonds, property claims[*]

Date of Enactment or Last Substantive Amendment: [1990]2007

Notice of Continuation: December 4, 2002

Authorizing, and Implemented or Interpreted Law: 67-4a-501