Tennessee Disposition of Unclaimed Property Law


Tennessee Law Summary
Uniform Disposition of Unclaimed Property Act

Note:  This summary is not intended to be an all inclusive discussion of abandoned property law, but does include basic provisions.  You should check the State Laws for updates.

Tennessee Code
TITLE 66 – PROPERTY
Chapter 29 – Abandoned or Unclaimed Property.
Part 1 – Uniform Disposition of Unclaimed (Personal) Property Act.

Short title.
This part shall be known as the “Uniform Disposition of Unclaimed Property Act.”
Chap. 29, Part 1, §66-29-101

Definitions.
As used in this part, unless the context otherwise requires:

(1) “Banking organization” means any national bank or state bank,trust company, savings bank, industrial bank, land bank, safe deposit company, or private banker;

(2) “Business association” means any corporation (other than a public corporation), joint stock company, business trust, partnership cooperative, or any association for business purposes of two (2) or more individuals;

(3) “Financial organization” means any savings and loan association, building and loan association, credit union, cooperative bank, or investment company;

(4) “Holder” means any person in possession of property subject to this chapter belonging to another, or who is trustee in case of a trust, or is indebted to another on an obligation subject to this part;

(5) “Life insurance corporation” means any association or corporation transacting the business of insurance on the lives of persons or insurance appertaining thereto, including, but not by way of limitation, endowments and annuities;

(6) “Local government” means any municipality or county located in Tennessee;

(7) “Owner” means a depositor in case of a deposit, a beneficiary in case of a trust, a creditor, claimant, or payee in case of other choses in action, or any person having a legal or equitable interest in property subject to this part, or the legal representative of such person;

(8) “Person” means any individual, business association, government or political subdivision, public corporation, public authority, estate, trust, two (2) or more persons having a joint or common interest, or any other legal or commercial entity, whether such person is acting in such person’s own right or in a representative or fiduciary capacity;

(9) “Property” means tangible personalty located in this state and all intangible personalty;

(10) “Treasurer” means the state treasurer; and

(11) “Utility” means any person who owns or operates for public use, any plant, equipment, property, franchise, or license for the transmission of communications or the production, storage, transmission, sale, delivery, or furnishing of electricity, water, steam, or gas.

Chap. 29, Part 1, §66-29-102

General rules for taking custody of intangible unclaimed property.
Unless otherwise provided in this part or by other statute of this state, intangible property is subject to the custody of this state as unclaimed property if the conditions raising a presumption of abandonment under this section or §66-29-104 – 66-29-111 are satisfied and:

(1) The last known address, as shown on the records of the holder, of the apparent owner is in this state;

(2) The records of the holder do not reflect the identity of the person entitled to the property and it is established that the last known address of the person entitled to the property is in this state;

(3) The records of the holder do not reflect the last known address of he apparent owner, and it is established that:

(A) The last known address of the person entitled to the property is in this state; or

(B) The holder is a domiciliary or a government or governmental subdivision or agency of this state and has not previously paid or delivered the property to the state of the last known address of the apparent owner or other person entitled to the property;

(4) The last known address, as shown on the records of the holder, of the apparent owner is in a state that does not provide by law for the escheat or custodial taking of the property or its escheat or unclaimed property law is not applicable to the property and the holder is a domiciliary or a government or governmental subdivision or agency of this state;

(5) The last known address, as shown on the records of the holder, of the apparent owner is in a foreign nation and the holder is a domiciliary or a government or governmental subdivision or agency of this state; or

(6) The transaction out of which the property arose occurred in this state; and

(A)

(i) The last known address of the apparent owner or other person entitled to the property is unknown; or

(ii) The last known address of the apparent owner or other person entitled to the property is in a state that does not provide by law for the escheat or custodial taking of the property or its escheat or unclaimed property law is not applicable to the property; and

(B) The holder is a domiciliary of a state that does not provide by law for the escheat or custodial taking of the property or its escheat or unclaimed property law is not applicable to the property.

Chap. 29, Part 1, §66-29-103

Property held by banking or financial organizations or by business associations.
The following property held or owing by a banking or financial organization or by a business association is presumed abandoned:

(1) Any demand, savings, or matured time deposit made with a banking organization, together with any interest or dividend thereon, excluding any charges that may lawfully be withheld, unless the owner has, within five (5) years:

(A) Increased or decreased the amount of the deposit, or presented the passbook or other similar evidence of the deposit for the crediting of interest;

(B) Corresponded in writing with the banking organization concerning the deposit; or

(C) Otherwise indicated an interest in the deposit as evidenced by a memorandum on file with the banking organization, providing such memorandum is one which is routinely kept according to customary banking practices;

(2) Any funds paid toward the purchase of shares or other interest in a financial organization or any deposit made therewith, and any interest or dividends thereon excluding any charges that may lawfully be withheld, unless the owner has within five (5) years:

(A) Increased or decreased the amount of the funds or deposit or presented an appropriate record for the crediting of interest or dividends;

(B) Corresponded in writing with the financial organization concerning the funds or deposit; or

(C) Otherwise indicated an interest in the funds or deposit as evidenced by a memorandum on file with the financial organization;

(3)

(A) Any sum payable on checks certified or on written instruments issued on which a banking or financial organization or business association is directly liable, including, by way of illustration but not of limitation, certificates of deposit, drafts, money orders and traveler’s checks, that, with the exception of money orders and traveler’s checks, has been outstanding for more than five (5) years from the date it was payable, or from the date of its issuance if payable on demand, unless the owner has within the time period corresponded in writing with the banking or financial organization or business association concerning it, or otherwise indicated an interest as evidenced by a memorandum on file with the banking or financial organization or business association. Any sum payable on money orders that has been outstanding for more than seven (7) years after its issuance, or any sum payable on traveler’s checks that has been outstanding for more than fifteen (15) years from the date of its issuance, unless the owner has within the time period corresponded in writing with the banking or financial organization or business association concerning it, or otherwise indicated an interest as evidenced by a memorandum on file with the banking or financial organization or business association;

(B) No sum payable on a traveler’s check, money order or similar written instrument, other than a third-party bank check, may be subjected to the custody of the state as unclaimed property unless:

(i) The records of the issuer show that the traveler’s check, money order or similar written instrument was purchased in this state;

(ii) The issuer has its principal place of business in this state and the records of the issuer do not show the state in which the traveler’s check, money order or similar written instrument was purchased; or

(iii) The issuer has its principal place of business in this state and the records of the issuer show the state in which the traveler’s check, money order or similar written instrument was purchased and the laws of the state of purchase do not provide for the escheat or custodial taking of the property or its escheat or unclaimed property law is not applicable to the property;

(4)

(A) Any surplus amount resulting from the sale or disposal of safe deposit box contents by banking institutions pursuant to § 45-2-907, if the proceeds cannot be credited to an existing customer account upon sale, and any unsold contents. Any credit of these proceeds to a customer account will not be considered as account activity under subdivisions (1) and (2);

(B) For any person, other than a bank, savings and loan association or savings bank, any funds or other personal property removed from a safe deposit box or any other safekeeping repository or agency or collateral deposit box on which the lease or rental period has expired due to nonpayment of rental charges or other reasons that have been unclaimed by the owner for more than two (2) years from the date on which the lease or rental period expired; or any surplus amount arising from the sale thereof pursuant to law that has been unclaimed by the owner for one (1) year; and

(5) Property described above, without regard to any activity or inactivity within specified abandonment periods, whose owner is known to the holder to have died and left no one to take the property by will and no one to take the property by intestate succession.

Chap. 29, Part 1, §66-29-104

Unclaimed funds held by life insurance corporations.

(a) Unclaimed funds held and owing by a life insurance corporation shall be presumed abandoned if the provisions of this section and §66-29-103 are satisfied. If a person other than the insured or annuitant is entitled to the funds and no address of such person is known to the corporation or if it is not definite and certain from the records of the corporation what person is entitled to the funds, it is presumed that the last known address of the person entitled to the funds is the same as the last known address of the insured or annuitant according to the records of the corporation.

(b)

(1) “Unclaimed funds,” as used in this section, means all moneys held and owing by any life insurance corporation unclaimed and unpaid for more than five (5) years after the moneys became due and payable as established from the records of the corporation under any life or endowment insurance policy or annuity contract which has matured or terminated. A life insurance policy not matured by actual proof of the death of the insured is deemed to be matured and the proceeds thereof are deemed to be due and payable if such policy was in force when the insured attained the limiting age under the mortality table on which the reserve is based, unless the person appearing entitled thereto has within the preceding five (5) years:

(A) Assigned, readjusted, or paid premiums on the policy, or subjected the policy to loan; or

(B) Corresponded in writing with the life insurance corporation concerning the policy.

Moneys otherwise payable according to the records of the corporation are deemed due and payable although the policy or contract has not been surrendered as required.

(2) “Unclaimed funds” includes all moneys held and owing by any life insurance corporation under this subdivision to any owner who is known to the company to have died and left no one to take such moneys by will and no one to take such moneys by intestate.

Chap. 29, Part 1, §66-29-105

Undistributed assets and obligations of business associations and utilities.

(a) The following funds held or owing by any business association or by any utility are presumed abandoned:

(1) Any deposit made by a subscriber with a utility to secure payment, any sum overpaid, or any sum paid in advance for utility services to be furnished, less any lawful deductions, that has remained unclaimed by the person appearing on the records of the utility entitled thereto for more than two (2) years after the termination of the services for which the deposit, overpayment, or advance payment was made;

(2) Any sum that a utility or a business association has been ordered to refund by a court or administrative agency, together with any interest thereon, less any lawful deductions, which has remained unclaimed by the owner for more than two (2) years after it became payable in accordance with the final determination or order providing for the refund, whether or not the final determination or order requires any person entitled to a refund to make a claim for it; and

(3) Property described above, without regard to any activity or inactivity within specified abandonment periods, whose owner is known to the holder to have died and left no one to take the property by will and no one to take the property by intestate succession.

(b) Any utility which possesses a deposit or other sum which is subject to be presumed abandoned pursuant to the provisions of subsection (a) shall make a reasonable attempt to notify the subscriber who is entitled to such deposit or sum of such possession within one hundred twenty (120) days of the commencement of the two-year period pursuant to subsection (a).

Chap. 29, Part 1, §66-29-106

Undistributed dividends and distributions of business associations.
Any stock or other certificate of ownership, or any dividend, profit, distribution, interest, payment on principal, or other sum held or owing by a business association for or to a shareholder, certificate holder, member, bondholder, or other security holder, or a participating patron of a cooperative, who has not claimed it, or corresponded in writing with the business association concerning it, within five (5) years after the date prescribed for payment or delivery is presumed abandoned. Property described above, without regard to any activity or inactivity within the past five (5) years, shall also be presumed abandoned if the owner thereof is known to the holder to have died and left no one to take the property by will and no one to take the property by intestate succession.

Chap. 29, Part 1, §66-29-107

Property of business associations and banking or financial organizations held in course of dissolution.
All intangible personal property distributable in the course of a voluntary or involuntary dissolution or liquidation of a business association, banking organization, or financial organization that is unclaimed by the owner after the date for final distribution or liquidation is presumed abandoned.

Chap. 29, Part 1, §66-29-108

Property held by fiduciaries.
All property and any income or increment thereon held in a fiduciary capacity for the benefit of another person is presumed abandoned unless the owner has, within five (5) years after it becomes payable or distributable, increased or decreased the principal, accepted payment of principal or income, corresponded in writing concerning the property, or otherwise indicated an interest as evidenced by a memorandum on file with the fiduciary. Property described above, without regard to any activity or inactivity within the past five (5) years, shall also be presumed abandoned if the owner thereof is known to the holder to have died and left no one to take the property by will and no one to take the property by intestate succession.

Chap. 29, Part 1, §66-29-109

Property held by courts, public officers and agencies.
All property held for the owner by any court, including a federal court, public corporation, public authority or agency, or public officer, or a political subdivision, including, but not limited to, the state of Tennessee or any of its departments or agencies, that has remained unclaimed by the owner for more than one (1) year is presumed abandoned, except property in the custody or control of any state or federal court in any pending action. Notwithstanding the provisions of this section, all property held for the owner by any institution or entity governed by the board of trustees of the University of Tennessee or the state board of regents shall be presumed abandoned within the abandonment periods applicable to private universities and colleges. Property described above, without regard to any activity or inactivity within the past one (1) year, shall also be presumed abandoned if the owner thereof is known to the holder to have died and left no one to take the property by will and no one to take the property by intestate succession.

Chap. 29, Part 1, §66-29-110

Property held by federal government.
All property, including choses in action in sums certain, and all debts owed, entrusted funds, or other property held by the federal government, or any agency, officer or appointee thereof, is presumed abandoned if the property has been unclaimed for at least one (1) year. The federal government or a government officer or appointee thereof may deduct from the amount paid or delivered to the state treasurer the proportionate share of the actual and necessary cost of examining such records and reporting such information. This state shall hold the federal government harmless to the extent of the value of any property so paid or delivered from any claim which then exists or which thereafter may arise or be made in respect to property delivered to the state treasurer by the federal government. Property described above, without regard to any activity or inactivity within the past one (1) year, shall also be presumed abandoned if the owner thereof is known to the holder to have died and left no one to take the property by will and no one to take the property by intestate succession.

Chap. 29, Part 1, §66-29-111

Miscellaneous property held for another person.
All property, not otherwise covered by this part, including any income or increment thereon and deducting any lawful charges, that is held or owing in the ordinary course of the holder’s business and has remained unclaimed by the owner for more than five (5) years after it became payable or distributable is presumed abandoned. A layaway account of any retail business association shall not be considered as miscellaneous property held for another person and such accounts shall not be regulated by this part. Property described above, without regard to any activity or inactivity within the past five (5) years, shall also be presumed abandoned if the owner thereof is known to the holder to have died and left no one to take the property by will and no one to take the property by intestate succession.

Chap. 29, Part 1, §66-29-112

Report of abandoned property.

(a) Every person holding funds or other property, tangible or intangible, presumed abandoned under this part shall report to the treasurer with respect to the property as hereinafter provided.

(b) The report shall be verified and shall include:

(1) Except with respect to traveler’s checks and money orders, the name, if known, and last known address, if any, of each person appearing from the records of the holder to be the owner of any property of the value of fifty dollars ($50.00) or more presumed abandoned under this part;

(2) In case of unclaimed funds of a life insurance corporation, the full name of the insured or annuitant and that person’s last known address according to the life insurance corporation’s records;

(3) The nature and identifying number, if any, or description of the property and the amount appearing from the records to be due, except that items of value under fifty dollars ($50.00) each may be reported in aggregate;

(4) Except for property reported in the aggregate, the date when the property became payable, demandable, or returnable, and the date of the last transaction with the owner with respect to the property; and

(5) Other information which the treasurer prescribes by rule as necessary for the administration of this part.

(c) If the person holding property presumed abandoned is a successor to other persons who previously held the property for the owner, or if the holder had a change of name while holding the property, that person shall file with the report all prior known names and addresses of each holder of the property.

(d) The report shall be filed before May 1 of each year, reporting property held as of the previous December 31. The treasurer may postpone the reporting date upon written request by any person required to file a report.

(e) Not more than one hundred twenty (120) days before filing the report required by this section, the holder in possession of property presumed abandoned and subject to custody as unclaimed property under this part shall send written notice to the apparent owner at such person’s last known address, informing such person that the holder is in possession of property subject to this part, if the holder has in its records an address for the apparent owner which the holder’s records do not disclose to be inaccurate and the property has a value of fifty dollars ($50.00) or more. The holder shall exercise due diligence to ascertain the whereabouts of the owner. The treasurer shall promulgate rules and regulations to clarify the provisions of this subsection with respect to the duties of holders.

(f) Verification, if made by a partnership, shall be executed by a partner; if made by an unincorporated association or private corporation, by an officer; and if made by a public corporation, by its chief fiscal officer.

(g) The treasurer shall keep a record of all reports submitted to such treasurer.

(h) Every holder required to file a report under this section as to any property for which it has obtained the last known address of the owner shall maintain a record of the name and last known address of the owner for ten (10) years after the property becomes reportable.

Chap. 29, Part 1, §66-29-113

Notice and publication of lists of abandoned property.

(a) The treasurer shall have notice published of the names and last known addresses of the apparent owners of property in a manner designed to inform owners that property has been reported under the law and is in the protective custody of the treasurer to whom claims to the property may be directed.

(b) The treasurer may set a minimum dollar value for items to be advertised which takes into consideration the cost of advertising and the interests of the owners of property. Property which is not advertised shall be accumulated in an organized fashion and shall be made available to the public.

(c) Within the calendar year next following the year in which unclaimed property has been paid or delivered to the treasurer, the treasurer shall mail a notice to each person having an address reported who appears to be entitled to property of the value of fifty dollars ($50.00) or more presumed abandoned under this part.

(d) The mailed notice shall contain:

(1) A statement that, according to a report filed with the treasurer, property is being held to which the addressee appears entitled; and

(2) A statement that the property is in the custody of the treasurer and will be held for the owner until satisfactory proof of claim is presented.

(e) This section is not applicable to sums payable on traveler’s checks or money orders presumed abandoned under § 66-29-103.

Chap. 29, Part 1, §66-29-114

Payment or delivery of abandoned property.

(a) Every person filing a report under § 66-29-113 shall, at the time of filing such report and with that report, pay or deliver to the state treasurer all unclaimed funds and intangible property specified therein. Notwithstanding the foregoing, any unclaimed checks held by the state which were derived from one hundred percent (100%) federal funding need not be delivered to the state treasurer pursuant to this part if such delivery would render the state ineligible for future federal funding. Upon written request showing good cause, the state treasurer may postpone the payment or delivery upon such terms or conditions as the state treasurer deems necessary and appropriate.

(b) Tangible property shall not be delivered to the state treasurer at the time of filing the report. Instead, the state treasurer shall review the report of such property and be given an opportunity to decline to receive any such property reported which the state treasurer deems to have a value less than the cost of giving notice and holding sale, or may, if the state treasurer deems it desirable because of the small sum involved, postpone taking possession until a sufficient sum accumulates. Unless the holder of such property is notified to the contrary within one hundred twenty (120) days after filing the report required under §66-29-113, the state treasurer shall be deemed to have elected to receive custody of the property and the holder thereof shall, at the end of such one hundred twenty-day period, pay or deliver such property to the state treasurer.

(c) Notwithstanding anything in subsections (a) and (b) to the contrary, contents removed from any safe deposit box or any other safekeeping repository or agency or collateral deposit box described in §66-29-104(4)(B) shall be sold or disposed of by the holder in accordance with the procedures set forth in §45-2-907, or pursuant to instructions received from the state treasurer, and the proceeds, less reasonable costs of sale and storage, shall be remitted within sixty (60) days of sale.

(d) Property paid or delivered to the state treasurer shall include all interest, dividends, increments, and accretions due, payable, or distributable on the day that the property is paid or delivered to the state treasurer.

Chap. 29, Part 1, §66-29-115

Relief from liability by payment or delivery.
Upon the payment or delivery of abandoned property to the treasurer, the state shall assume custody of such property and shall be responsible for its safekeeping. Any person who pays or delivers abandoned property to the treasurer under this chapter is relieved of all liability to the extent of the value of the property so paid or delivered for any claim which then exists or which thereafter may arise or be made in respect to the property. Any holder who has paid moneys to the treasurer pursuant to this part may make payment to any person appearing to such holder to be entitled thereto, and upon proof of such payment and proof that the payee was entitled thereto, the treasurer shall forthwith reimburse the holder for the payment.

Chap. 29, Part 1, §66-29-116

Income accruing after payment or delivery.

(a) When noninterest-bearing property is paid or delivered to the treasurer under this part, the owner is not entitled to receive income or other increments accruing thereafter.

(b) When interest-bearing property is paid or delivered to the treasurer under this part, the owner is entitled to receive interest accruing thereafter under the following conditions:

(1) Interest will be paid at the stated rate the property was earning at the time it was turned over to the treasurer; and

(2) Interest will be computed by the treasurer at the time a valid claim is established by the owner. The interest will be compounded annually.

Chap. 29, Part 1, §66-29-117

Periods of limitation not a bar.
The expiration of any period of time specified by statute or court order, during which an action or proceeding may be commenced or enforced to obtain payment of a claim for money or recovery of property, shall not prevent the money or property from being presumed abandoned property, nor affect any duty to file a report required by this part or to pay or deliver abandoned property to the treasurer.

Chap. 29, Part 1, §66-29-118

Sale of abandoned property.

(a) All abandoned property delivered to the treasurer under this part other than money or property of a type customarily sold in a recognized market, or of a type which is the subject of widely distributed price quotations, may be sold by the treasurer, in accordance with procedures approved by the attorney general and reporter, to the highest bidder at public sale at whatever place affords, in the judgment of the attorney general and reporter, the most favorable price for the property involved, or may be disposed of by the treasurer pursuant to §12-2-112 if real property, or the State Surplus Personal Property Act of 1976, compiled in title 12, chapter 2, part 4. United States government savings bonds and United States war bonds shall be presented to the United States for payment.

(b) Property of a type customarily sold in a recognized market, or a type which is the subject of widely distributed price quotations, shall, within the calendar year next following the year of delivery, be sold by the treasurer in accordance with the customs prevailing for the sale of such property at the price considered most advantageous by the treasurer.

(c) Any sale of abandoned property, other than property sold under subsection (b), held by the treasurer under this section shall be preceded by a single publication of notice thereof at least three (3) weeks in advance of the sale, in a newspaper having general circulation in the county where the property is sold.

(d) The purchaser at any sale conducted by the treasurer pursuant to this part shall receive title to the property purchased free from all claims of the owner or prior holder thereof, and of all persons claiming under or through them. The treasurer or the treasurer’s duly designated agent shall execute all documents necessary to complete the transfer of title.

Chap. 29, Part 1, §66-29-119

Disposition of property having no commercial value.
Any property delivered to the treasurer pursuant to this part which has no apparent commercial value shall be retained by the treasurer until such time as the treasurer determines to destroy or otherwise dispose of it. Prior to the destruction or disposal of any such property, the determination of the treasurer shall be approved by the commissioner of general services and the attorney general and reporter. Once the destruction or disposition of the property has been approved, the treasurer may at any time thereafter destroy or otherwise dispose of such property, and in that event, no action or proceeding shall be brought or maintained against the state or any officer thereof for or on account of any action taken by the treasurer pursuant to this part with respect to such property.

Chap. 29, Part 1, §66-29-120

Disposition of funds.

(a) Except as provided in subsection (c), all funds received under this part, including the proceeds from the sale of abandoned property under §66-29-119, shall be available to the state treasurer to permit the prompt payment of claims duly allowed by the state treasurer as hereinafter provided and to meet all costs of administering the program, including, but not limited to, any costs in connection with the acquisition or sale of abandoned property and any cost of mailing and publication in connection with any abandoned property. Of the funds not required for these purposes, in fiscal year 1998-1999, an amount not to exceed two million dollars ($2,000,000) shall be credited to the health access incentive account created by § 66-29-151 and the remaining amount shall be deposited by the state treasurer in the general funds of the state. In fiscal years 1999-2000, 2000-2001, 2001-2002, and 2002-2003, an amount not to exceed two million five hundred thousand dollars ($2,500,000), three million dollars ($3,000,000), three million five hundred thousand dollars ($3,500,000) and four million dollars ($4,000,000), respectively, shall be credited to the health access incentive account, subject to appropriation. During each of these fiscal years, any amounts not credited to the health access incentive account shall be deposited by the state treasurer in the general funds of the state. Nothing in this section or §66-29-151 shall be implemented or construed to reduce the amount of funds to be credited at the end of each fiscal year to the health access incentive account below the two million dollar ($2,000,000) cap established in Acts 1995, ch. 445. Before making the deposits, the treasurer shall record the name and last known address of each person appearing from the holders’ reports to be entitled to the abandoned property and the name and last known address of each insured person or annuitant, and with respect to each policy or contract listed in the report of a life insurance corporation, its number, the name of the corporation, and the amount due. The record shall be available for public inspection at all reasonable business hours.

(b) In any fiscal year in which the state treasurer determines, with the concurrence of the commissioner of finance and administration, that claims and administrative costs during such fiscal year exceed funds received under this part during such fiscal year, a sum sufficient shall be appropriated from the general funds of the state to the state treasurer for the payment of such claims and costs.

(c) For funds received under this part for the report year ending December 31, 1985, and thereafter, the treasurer shall determine each June 30 the amount of such funds remitted by or on behalf of each local government of the state and its agencies which have remained unclaimed for a minimum of eighteen (18) months following their delivery to the treasurer. If the aggregate unclaimed balance exceeds one hundred dollars ($100), the treasurer upon request of the local government shall pay an amount equal to the aggregate unclaimed balance, less a proportionate share of the cost of administering the program as determined by the treasurer, to the local government, together with a report of the accounts represented by the funds. These funds shall be placed in the local government’s general fund, except the local government shall maintain to the extent necessary a sufficient amount of the total unclaimed property accounts to ensure prompt payment as hereinafter provided.

Chap. 29, Part 1, §66-29-121

Agreements to locate reported property.

(a) The treasurer shall approve all contracts entered between two (2)or more persons whereby one (1) party to the contract agrees to furnish the other party with information concerning property reported to the treasurer under this part; provided, that no contract shall be approved until the property that is the subject of such contract has been held by the treasurer for a period of one (1) year from the date advertised by the treasurer.

(b) In all instances where the treasurer is not a party to the contract, the agreed upon fee in such other contracts shall not exceed ten percent (10%) of the value of the recoverable property or fifty dollars ($50.00), whichever is greater.

(c) Nothing in this section shall be construed to prevent an owner from asserting at any time that an agreement to locate property is based upon an excessive or unjust consideration.

Chap. 29, Part 1, §66-29-122

Claims for abandoned property paid or delivered – Determination.

(a) Except as provided in subsection (d), any person claiming an interest in any property delivered to the state under this part may file a claim thereto or to the proceeds from the sale thereof on the form prescribed by the treasurer.

(b) The treasurer shall consider any claim filed under this part within ninety (90) days and may hold a hearing and receive evidence concerning it. If a hearing is held, the treasurer shall prepare a finding and a decision in writing on each claim filed, stating the substance of any evidence heard by the treasurer and the reasons for the decision. The decision shall be a public record.

(c) If the claim is allowed, the treasurer shall make payment forthwith. The claim shall be paid without deduction for costs of notices or sale or for service charges.

(d) Any person claiming an interest in any property for which funds have been delivered by the treasurer to a local government pursuant to §66-29-121 may file a claim thereto with the local government in receipt of the funds. If the claim is allowed, the local government shall make payment forthwith, without deduction for administrative cost or service charges. Any person aggrieved by a finding of the local government may appeal to the treasurer in accordance with subsection (b). If the treasurer finds the claim to be valid, the local government shall issue payment forthwith. The local government shall submit an annual report of claims received on a form prescribed by the treasurer. This report shall be filed before September 1, reporting claims received as of the previous June 30.

Chap. 29, Part 1, §66-29-123

Claim of another state to recover property – Procedure.

(a) At any time after property has been paid or delivered to the treasurer under this part, another state may recover the property if:

(1) The property was subjected to custody by this state because the records of the holder did not reflect the last known address of the apparent owner when the property was presumed abandoned under this part, and the other state establishes that the last known address of the apparent owner or other person entitled to the property was in that state and under the laws of that state the property escheated to or was subject to a claim of abandonment by that state;

(2) The last known address of the apparent owner or other person entitled to the property, as reflected by the records of the holder, is in the other state and under the laws of that state the property has escheated to or become subject to a claim of abandonment by that state;

(3) The records of the holder were erroneous in that they did not accurately reflect the actual owner of the property and the last known address of the actual owner is in the other state and, under the laws of that state, the property escheated to or was subject to a claim of abandonment by that state;

(4) The property was subjected to custody by this state under §66-29-103(6) and under the laws of the state of domicile of the holder the property has escheated to or become subject to a claim of abandonment by that state; or

(5) The property is the sum payable on a traveler’s check, money order, or other similar instrument that was subjected to custody by this state under §66-29-103 and the instrument was purchased in the other state and, under the laws of that state, the property escheated to or became subject to a claim of abandonment by that state.

(b) The claim of another state to recover escheated or abandoned property must be presented in a form prescribed by the treasurer who shall decide the claim within ninety (90) days after it is presented. If the treasurer determines that the other state is entitled to the abandoned property under subsection (a), the claim shall be allowed.

(c) The treasurer shall require a state, before recovering property under this section, to agree to indemnify this state and its officers and employees against any liability on a claim for the property.

Chap. 29, Part 1, §66-29-124

Judicial action upon determinations.
Any person aggrieved by a finding of the treasurer under § 66-29-123 or upon whose claim the treasurer has failed to act upon ninety (90) days after the filing thereof, may file a complaint to establish such claim in the chancery court for Davidson County, naming the treasurer as a defendant and joining any other persons who may have an interest in the subject property. The suit shall be brought within ninety (90) days after the decision of the treasurer, or within one hundred eighty (180) days from the date of the filing of the claim, if the treasurer fails to act within such ninety (90) days. A copy of the complaint shall also be served on the attorney general and reporter. The suit shall be tried without a jury. If a decree is rendered against the treasurer, the treasurer shall make payment in accordance therewith as provided in §66-29-123. Any aggrieved party may appeal the decision.

Chap. 29, Part 1, §66-29-125

Chap. 29, Part 1, §66-29-126. [Repealed.]

Examination of records.

(a) The treasurer may at reasonable times and upon reasonable notice examine the records of any person if the treasurer has reason to believe that such person has failed to report property that should have been reported pursuant to this part.

(b) The comptroller of the treasury and the various regulatory and taxing agencies of this state shall report to the treasurer any property presumed to be abandoned under this part, held by any person subject to their supervision, regulation or examination, and discovered by them during the course of such supervision, regulation, or examination.

Chap. 29, Part 1, §66-29-127

Proceedings to compel delivery of abandoned property.
If any person refuses to deliver property to the treasurer as required under this part, the treasurer shall bring an action in a court of appropriate jurisdiction to enforce such delivery.

Chap. 29, Part 1, §66-29-128

Penalties – Reconsideration by treasurer – Complaint.

(a) Should the treasurer find that any person who has received notice that such person is subject to this part, as reflected on the records of the treasurer, has failed to render any report or perform other duties required under this part, the treasurer shall order such person to pay to the treasurer a civil penalty of twenty-five dollars ($25.00) for each day the report is withheld or for each day the duties are not performed; provided, that the amount of such civil penalty shall not exceed one thousand dollars ($1,000).

(b) Should the treasurer find that any person has refused to pay or deliver abandoned property to the treasurer as required under this part, the treasurer shall order such person to pay to the treasurer a civil penalty equal to twenty-five percent (25%) of the value of the property that should have been paid or delivered.

(c) A person assessed a penalty under subsection (a) or (b) shall be afforded an opportunity to have the assessment reconsidered by the treasurer upon written request within ten (10) days of the issuance of the notice of assessment. Any person aggrieved by a finding of the treasurer after such reconsideration may file a complaint as provided in §66-29-125.

Chap. 29, Part 1, §66-29-129

Rules and regulations.
The treasurer is hereby authorized to make ecessary rules and regulations to carry out the provisions of this part.

Chap. 29, Part 1, §66-29-130

Effect of laws of other states.
This part shall not apply to any property that has been presumed abandoned or escheated under the laws of another state prior to March 6, 1978.

Chap. 29, Part 1, §66-29-131

Effect on other Tennessee statutes.

(a) In the event that the provisions of this Uniform Disposition of Unclaimed Property Act are in conflict with other provisions of state law, the provisions contained herein will prevail so as to effectuate the intent of this part. In the event the provisions of this part are in conflict with the provisions of title 55, chapter 16, the provisions contained in title 55, chapter 16 will prevail, it being the intent of the general assembly that title 55, chapter 16 will continue to govern unclaimed or abandoned motor vehicles.

(b) Specific note has been taken of the provisions of §§31-822 – 31-829 [repealed], and it is the intent of the general assembly that these sections will continue to govern the disposition of unclaimed real property.

(c) Title 55, chapter 16, governing unclaimed or abandoned motor vehicles, is hereby considered, ratified, and affirmed as if specifically reenacted.

Chap. 29, Part 1, §66-29-132

Uniformity of interpretation.
This part shall be so construed as to effectuate its general purpose to make uniform the law of those states which enact it. Nothing in this part shall be construed as superseding any of the provisions of title 55, chapter 16.

Chap. 29, Part 1, §66-29-133

Agents for enforcement of chapter.
The treasurer may appoint agents within this state or outside this state for the purpose of carrying out the provisions of this part.

Chap. 29, Part 1, §66-29-134

Gift certificates.

(a) A gift certificate issued in the ordinary course of an issuer’s business which remains unclaimed by the owner for more than five (5) years after becoming payable or distributable is presumed abandoned. The amount presumed abandoned is the price paid by the purchaser for the gift certificate.

(b) Property described above, without regard to any activity or inactivity within the past five (5) years, shall also be presumed abandoned if the owner thereof is known to the holder to have died and left no one to take such property by will and no one to take such property by intestate succession.

Chap. 29, Part 1, §66-29-135

Wages.
Unpaid wages, including wages represented by unpresented payroll checks, owing in the ordinary course of the holder’s business, which remain unclaimed by the owner for more than one (1) year after becoming payable are presumed abandoned. Property described above, without regard to any activity or inactivity within the past one (1) year, shall also be presumed abandoned if the owner thereof is known to the holder to have died and left no one to take such property by will and no one to take such property by intestate succession.

Chap. 29, Part 1, §66-29-136

Agreements to ascertain whereabouts of property’s owner.
Any holder of property not yet abandoned pursuant to this part may enter into such agreements as may be necessary to ascertain the whereabouts of the owner; provided, that no costs associated with such agreements shall be deducted from the property nor charged to the owner.

Chap. 29, Part 1, §66-29-137

Chap. 29, Part 1, §66-29-138 – 66-29-150. [Reserved.]

Health access incentive account – Program for locating practitioners.

(a) There is hereby created within the state treasury a special account to be known as the “health access incentive account.” Money shall be deposited to the account pursuant to §66-29-121 and as may be otherwise provided by law and shall be invested for the benefit of the account pursuant to §9-4-603. Amounts in the account shall not revert to the general fund of the state but shall, together with interest income credited to the account, remain available for appropriation by the general assembly for the purpose set forth in subsection (b).

Notwithstanding any language in this section to the contrary, an amount equal to the corpus which remained in the health access account on June 30, 1994, shall be transferred to the general fund. In the event the corpus funds available at the time of transfer are less than the aforementioned 1994 balance, then the total amount of the corpus and the health access incentive account balance, not to exceed $26,152,543.47 shall be transferred.

Notwithstanding any language in this section to the contrary, the sum of one million six hundred thousand dollars ($1,600,000) which remained in the health access incentive account on June 30, 1996, shall be transferred to the general fund.

Chap. 29, Part 1, §66-29-151

Lawful charges or deductions – Notice.

(a) Charges or deductions described in §§ 66-29-104, 66-29-106 and 66-29-112 shall be deemed “lawful” if:

(1) The holder has given prior constructive or actual notice to the owner that such charges or deductions may be imposed. Actual notice is given if the holder obtained written consent to the charges or deductions from the owner. Constructive notice is given if the holder implements a new charge or deduction policy or increases the amount of the charge or deduction after the holder takes possession of the owner’s property and the holder sent correspondence in writing to the owner by first class or superior mailing disclosing the new charge or deduction policy or increase, and such correspondence was not returned by the post office;

(2) The charges or deductions are not imposed retroactively in order to reduce the value of or eliminate the property after the property is presumed abandoned; and

(3) The charges or deductions are not routinely refunded or cancelled when the property is claimed by the owner.

(b) Charges or deductions described in subdivisions (a)(1) and (2) shall not be unlawful for purposes of this section if such charges or deductions were withheld prior to April 25, 1991.

Chap. 29, Part 1, §66-29-152

Unclaimed moneys held by Tennessee temporary joint underwriting association and state reserve fund.
Unclaimed moneys held by the Tennessee temporary joint underwriting association and the stabilization reserve fund shall be deemed abandoned under the provisions of § 66-29-108, and shall be delivered to the state treasurer with a list of the policyholders’ names, last known addresses, and the amount due to each policyholder. The delivery of such unclaimed moneys shall be made on or before the end of the one-year “wind-down” period, or June 30, 1992. Upon compliance with this authorization, the Tennessee temporary underwriting association, the stabilization reserve fund, and their officers and directors, shall be discharged and relieved of any and all further responsibility for such moneys. The state treasurer shall receive such funds and otherwise proceed under the provisions of this chapter.

Chap. 29, Part 1, §66-29-153