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Massachusetts Disposition of Unclaimed Property Law

Massachusetts 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.

GENERAL LAWS OF MASSACHUSETTS
PART II – REAL AND PERSONAL PROPERTY AND DOMESTIC RELATIONS.
TITLE II – DESCENT AND DISTRIBUTION, WILLS, ESTATES OF DECEASED PERSONS AND ABSENTEES, GUARDIANSHIP, CONSERVATORSHIP AND TRUSTS.
CHAPTER 200A – ABANDONED PROPERTY.

Definitions.
The following words when used in this chapter, unless the context otherwise requires, shall have the following meanings:

(a) “Property”, all tangible or intangible personal property.

(b) “Abandoned property”, property presumed abandoned pursuant to this chapter.

(c) “Claim”, demand for payment or surrender of property from the holder of same, whose duty it is to pay or surrender the property to the legitimate claimant.

Note: There is no clause (d) or (e).

(f) “Treasurer”, the treasurer and receiver general.

(g) “Person”, any individual, corporation, joint stock companies, estate, trust, partnership, association, government or political subdivision, public corporation or authority, any bank defined in section one of chapter one hundred and sixty-seven, savings bank, savings and loan association, credit union, trust company, national banks, federal savings and loan association, co-operative banks, bank holding companies and bank subsidiaries, mutual funds and any issuer of traveler’s checks, money orders, outstanding checks and unclaimed wages or similar monetary obligations or commitments, whether organized or operated under state or federal law; utility companies, insurance companies; two or more persons having a joint or common trust or any legal or commercial entity.

(h) “Date prescribed for payment or delivery”, the earliest date upon which the owner of property could become entitled to the payment, possession or delivery thereof by demand or other affirmative act. Part II, Title II, Chap. 200A, Section 1.

Intangible personal property; presumption of abandonment.
Unless otherwise provided, intangible personal property is presumed abandoned under this chapter if the conditions for presumption of abandonment stated in section three, four, five, five A, five B, six A or six B exist, and if any one of the following four conditions are met:

(a) the last known address of the apparent owner is in the commonwealth as shown on the records of the person in possession of property;

(b) no address of the apparent owner appears on the records of the person in possession of the property and

(1) the last known address of the apparent owner is in the commonwealth, or

(2) the person in possession of property subject to this chapter is domiciled in the commonwealth and has not previously paid the property to the state of the last known address of the apparent owner, or

(3) the holder is a government or governmental subdivision or agency of the commonwealth and has not previously paid the property to the state of the last known address of the apparent owner;

(c) the last known address, as shown on the records of the person in possession of property, is in a state that does not provide by law for the escheat or custodial taking of such property and the person in possession of property is domiciled in the commonwealth or is a government or governmental subdivision or agency of the commonwealth; or

(d) the last known address, as shown on the records of the person in possession of property, of the apparent owner is in a foreign nation and the person in possession of property is domiciled in the commonwealth or is a subdivision or agency of the commonwealth. Part II, Title II, Chap. 200A, Section 1A.

Property; presumption of abandonment.

(a) Property which has been bequeathed to any person, shall be presumed abandoned, if not claimed by that person or his heirs, legatees or distributees within three years after the death of the testator unless the will makes provision in case of a lapse, failure or rejection of the bequest for the disposition of the property.

(b) When a person, owning property, is not known for three successive years to be living and neither he nor his heirs or distributees can be located or proved for three successive years to have been living, he shall be presumed to have died without heirs or distributees, and his property shall be presumed abandoned. Part II, Title II, Chap. 200A, Section 2.

Property on deposit; presumption of abandonment.
Any deposit of property with a person having a residence or place of business in the commonwealth, or authorized to do business therein, together with the increments thereon, shall be presumed abandoned unless the owner has, within three years next preceding the date as of which reports are required by section seven:

(1) Communicated in writing with the person concerning the deposit; or

(2) Been credited with interest on a passbook or certificate of deposit at his request; or

(3) Had a transfer, disposition of interest or other transaction noted of record in the books or records of the person; or

(4) Increased or decreased the amount of deposit; or

(5) Owned other property for which clause (1), (2), (3) or (4) is applicable; provided, however, that the holder communicates in writing with the owner with regard to such property that would otherwise be presumed abandoned under this section at the address at which communications regarding such other property regularly are received; or

(6) Had another relationship with the holder concerning which the owner has:

(i) communicated in writing with the holder, or

(ii) otherwise indicated an interest as evidenced by a memorandum on file prepared by an employee of the holder; provided, however, that if the holder communicates in writing with the owner with regard to the property that would otherwise be presumed abandoned under this section at the address at which communications regarding the other relationship regularly are received. Part II, Title II, Chap. 200A, Section 3.

Automatically renewable abandonment periods.
The abandonment period of any property set forth in section three that is automatically renewable shall commence upon the expiration of its initial time period except that, in the case of any renewal to which the owner consents at or about the time of renewal by communicating in writing with the person holding the property or otherwise indicating such consent as evidenced by a memorandum on file prepared by an employee, the abandonment period shall commence upon the expiration of the last time period for which consent was given. Part II, Title II, Chap. 200A, Section 3A.

Property deposited as security; presumption of abandonment.
Subject to the provisions of section one A, any deposit of property made to secure payment for services rendered or to be rendered, or to guarantee the performance of service or duties, or to protect against damage or harm, and the increments thereof, shall be presumed abandoned, unless claimed by the person entitled thereto within three years after the occurrence of the event that would obligate the holder or depository to return it or its equivalent. Part II, Title II, Chap. 200A, Section 4.

Dividends, stock, bonds, etc.; presumption of abandonment.
Subject to the provision of section one A, all intangible personal property not otherwise presumed to have been abandoned under any other section of this chapter, including but not limited to all certificates of ownership, dividends, stocks, bonds, money, drafts and claims for money and credits, including gift certificates and the increments of any of them, except deposits and the increments thereon referred to in section three that are held or owing in the commonwealth in the ordinary course of the person’s business, including all such property held by any fiduciary, shall be presumed abandoned unless claimed by the beneficiary or person entitled thereto within three years after the date prescribed for payment or delivery. Any dividend, distribution, interest, accrual, or payment on principal declared, set aside, accumulated, provided for or owed with respect to property presumed abandoned under the foregoing provisions of this section shall itself be presumed abandoned. Part II, Title II, Chap. 200A, Section 5.

Insurance proceeds; presumption of abandonment.

(a) Subject to the provisions of section one A, funds held or owing by a life insurance company under any life or endowment insurance policy or annuity contract which has matured or terminated shall be presumed abandoned if unclaimed and unpaid for more than three years after the funds became due and payable as established from the records of the company.

(b) If a person other than the insured or annuitant is entitled to the funds and no address of such person is known to the company or if it is not definite and certain from the records of the company 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 company. This presumption is a presumption affecting the burden of proof.

(c) A life insurance policy not matured by actual proof of the death of the insured according to the records of the company is deemed to be matured and the proceeds due and payable if:

(1) the insured has attained, or would have attained if he were living, the limiting age under the mortality table on which the reserve is based;

(2) the policy was in force at the time the insured attained, or would have attained, the limiting age specified in paragraph (1); and,

(3) neither the insured nor any other person appearing to have an interest in the policy has within the preceding three years, according to the records of the company (i) assigned, readjusted, or paid premiums on the policy, (ii) subjected the policy to loan, or (iii) corresponded in writing with the life insurance company concerning the policy.

(d) Any funds otherwise payable according to the records of the company are deemed due and payable although the policy or contract has not been surrendered as required. Part II, Title II, Chap. 200A, Section 5A.

Dividends, etc. of business associations; presumption of abandonment.

(a) Subject to section one A, any dividend, profit, distribution, interest, payment on principal, or other sum held or owing by a business association for or to its 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, or otherwise indicated an interest as evidenced by a memorandum or other record on file with the association within three years after the date prescribed for payment or delivery is presumed abandoned.

(b) Subject to section one A, any intangible interest in a business association, as evidenced by the stock records or membership records of the association is presumed abandoned if

(1) the interest in the association is owned by a person who for more than three years has neither claimed a dividend or other sum referred to in subsection (a) nor corresponded in writing with the association or otherwise indicated an interest as evidenced by a memorandum or other record on file with the association and (2) the association does not know the location of the owner at the end of such three year period. With respect to such interest the business association shall be deemed the holder.

(c) Subject to section one A, any dividends or other distributions held for or owing to a person at the time the stock or other security to which they attach are presumed abandoned also shall be presumed abandoned as of the same time.

(d) For the purposes of subsection (a) and (b) of this section a record of the sending of an Internal Revenue Service Form 1099, or its equivalent, to the persons enumerated in those subsections and a record of its not being returned by the United States Postal Service or its successor, shall be an indication of interest. Part II, Title II, Chap. 200A, Section 5B.

Employee benefit trust distributions; presumption of abandonment.
All employee benefit trust distributions and any income or other increment thereon shall be presumed abandoned if the owner within three years after it becomes payable or distributable has not accepted the distribution, corresponded in writing concerning the distribution, or otherwise indicated an interest as evidenced by a memorandum or other record on file with the fiduciary of the trust or custodial fund or administrator of the plan under which the trust or fund is established. Part II, Title II, Chap. 200A, Section 5C.

Money paid into court; presumption of abandonment.
Monies paid into any court within the commonwealth for distribution, and the increments thereof, shall be presumed abandoned if not claimed within three years after the date of payment into court, or as soon after the three year period as all claims filed in connection with it have been disallowed or settled by the court. Part II, Title II, Chap. 200A, Section 6.

Property distributable upon dissolution or liquidation; presumption of abandonment.
All property distributable in the course of a voluntary or involuntary dissolution or liquidation of a person that remains unclaimed by the person entitled thereto, within one year after the date of final distribution or liquidation, shall be presumed abandoned. This section shall apply to all tangible personal property located in the commonwealth and subject to the provisions of section one A to all intangible personal property. Part II, Title II, Chap. 200A, Section 6A.

Traveler’s checks and other written instruments; presumption of abandonment.

(a) Subject to the provisions of section one A and subsection (b) of this section, any sum payable on a certified check, draft, cashier’s check, treasurer’s check, registered check, money order, traveler’s check, or other similar written instrument, other than a third-party bank check, on which a person is directly liable shall be presumed abandoned under this section if it has been outstanding for more than three years from the date it was payable, or from the date of its issuance, if payable on demand, or in the case of traveler’s checks has been outstanding for more than fifteen years from the date of its issuance, unless the owner has within three years, or within fifteen years in the case of traveler’s checks, corresponded in writing with the person concerning it, or otherwise indicated an interest as evidenced by a memorandum on file with the person. A new person is directly liable if it is the actual holder of the fund representing the face amount of any such instrument at the time of presumed abandonment hereunder. Under no circumstance shall the holder of such abandoned instrument assess a fee for the processing of said instrument with the state treasurer in an amount which is in excess of one dollar per instrument.

(b) Any sum payable on a money order, traveler’s check, certified check, draft, cashier’s check, treasurer’s check, or other similar written instrument, other than a third-party bank check, on which a person is directly liable is presumed abandoned if:

(1) the books and records of such person show that such money order, certified check, registered check, draft, cashier’s check, treasurer’s check, traveler’s check, or similar written instrument was purchased in the commonwealth;

(2) the person has its principal place of business in this commonwealth and its books and records do not show the state in which such money order, certified check, draft, cashier’s check, treasurer’s check, traveler’s check, or similar written instrument was purchased; or

(3) the person has its principal place of business in the commonwealth and its books and records show the state in which such certified check, registered check, draft, cashier’s check, treasurer’s check, money order, traveler’s check, 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 sum payable on such instrument.

(c) Notwithstanding the provisions of subsection (b) this section shall apply to sums payable on certified checks, drafts, cashier’s checks, treasurer’s checks, money orders, traveler’s checks, registered checks and similar written instruments deemed abandoned on or after February first, nineteen hundred and sixty-five, except to the extent that such sums have been paid over to a state prior to January first, nineteen hundred and seventy-four. For the purposes of this subsection, the words “deemed abandoned” shall have the same meaning as those words have as used in an Act of Congress identified in Section 604 of Public Law 93-495 and approved on October twenty-eighth, nineteen hundred and seventy-four, (88th Statutes at Large 1500).

(d) Sums payable on certified checks, drafts, cashier’s checks, treasurer’s checks, money orders, traveler’s checks, and similar written instruments deemed abandoned prior to February first, nineteen hundred and sixty-five, shall be reportable pursuant to subsection (a). Part II, Title II, Chap. 200A, Section 6B.

Traveler’s checks and other written instruments; records; penalty.

(a) Any person that sells in the commonwealth certified checks, drafts, cashier’s checks, treasurer’s checks, registered checks, traveler’s checks, money orders, or other similar written instruments on which such person is directly liable, or that provides such certified checks, drafts, cashier’s checks, treasurer’s checks, registered checks, traveler’s checks, money orders, or similar written instruments to others, for sale in the commonwealth shall maintain a record indicating those traveler’s checks, money orders, or similar written instruments that are purchased from it in the commonwealth.

(b) The records required by this section must be retained for a period of five years from the date the report is filed.

(c) Any person that willfully fails to comply with this section shall be liable to the commonwealth for a civil penalty of five hundred dollars for each day of failure to comply, which penalty may be recovered in an action brought by the treasurer. Part II, Title II, Chap. 200A, Section 6C.

Annual report; form; contents.

(a) Every person holding property declared by this chapter to be presumed abandoned shall report to the treasurer as provided in this section.

(b) The report shall be on a form prescribed by the treasurer and shall include:

(1) Except with respect to traveler’s checks, registered 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 one hundred dollars or more presumed abandoned under this chapter.

(2) In the case of presumed abandoned funds of life insurance companies, the full name of the insured or annuitant, and his last known address, according to the records of the life insurance company.

(3) The nature and identifying number, if any, or description of any intangible property and the amount appearing from the records to be due, except that items of value under one hundred dollars each shall be reported in aggregate.

(4) Except for any 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.

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

(c) If the holder is a successor to other persons who previously held the property for the owner, or if the holder has changed his name while holding the property, he shall file with his report all prior known names and addresses of each holder of the property.

(d) The report shall be filed no later than November first of each year as of June thirtieth or the end of the fiscal year next preceding but the report of life insurance companies shall be filed before May first of each year as of December thirty-first next preceding.

(e) The report shall be made under penalty of perjury, and if made by an individual, by the individual; if made by a partnership, 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. Part II, Title II, Chap. 200A, Section 7.

Notice to owner at last known address before filing report.
If the person in possession of property in an amount of one hundred dollars or more presumed abandoned under this chapter has the last known address of the apparent owner which the person’s records do not disclose to be inaccurate, the holder shall at least sixty days before filing the annual report send a notice by first class mail to inform the owner of the process necessary to rebut the presumption of abandonment. Part II, Title II, Chap. 200A, Section 7A.

Records of owners’ addresses to be kept for seven years.
Every person required to file a report under section seven, except holders in possession of property subject to section six C, shall, as to any property for which it has obtained the address of the owner, maintain a record of the name of the owner and last known address for five years or such other period as the treasurer shall prescribe by regulation. Part II, Title II, Chap. 200A, Section 7B.

Notice of certain unclaimed property; publication; form.

(a) The treasurer shall cause a notice to be published, not later than March first or, in the case of life insurance companies, September first of the same year following the report, at least once a week for two consecutive weeks in a newspaper of general circulation which is printed in English in each county in which an apparent owner had a last known address.

(b) Each published notice shall be entitled “notice of names of persons appearing to be owners of abandoned property”, and shall contain the names in alphabetical order of:

(1) those apparent owners listed in the reports as having a last known address within the county;

(2) those apparent owners listed as having a last known address outside this commonwealth or as having no last known address in a report filed by a holder with his principal place of business within the county; and

(3) the insured or annuitant in the case of funds described in section five A if: (i) the report does not list the name of the apparent owner and his last known address; and (ii) the last known address of the insured or annuitant is within the county.

(c) Each published notice shall also contain:

(1) a statement that information concerning the amount or description of the property and the name and address of the holder may be obtained by any persons possessing an interest in the property by addressing an inquiry to the treasurer.

(d) The treasurer is not required to publish in such notice any items of less than one hundred dollars value unless he deems such publication to be in the public interest.

(e) By March first or September first in the case of life insurance companies, the treasurer shall mail a notice to each person having an address listed therein who appears to be entitled to property of the value of one hundred dollars or more presumed abandoned under this chapter.

(f) 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;

(g) This section shall not apply to sums payable on traveler’s checks, money orders, and similar written instruments that are presumed abandoned under section six B. Part II, Title II, Chap. 200A, Section 8.

Delivery or payment of abandoned property to state treasurer.

(a) Every person who has filed a report as provided by section seven shall by May first, or in the case of life insurance companies November first, pay or deliver to the treasurer at the time of filing the report all property presumed abandoned specified in the report.

Note: There is no paragraph (b) or (c).

(d) Payment of any intangible property to the treasurer shall be made at the office of the treasurer in Boston or at such other location as the treasurer by regulation may designate. Part II, Title II, Chap. 200A, Section 8A.

Recovery of property by another state.

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

(1) for property presumed abandoned under clause (b) of section one A because no address of the apparent owner of the property appeared on the records of the holder when the property was presumed abandoned under this chapter, the last known address of the apparent owner was in fact in such other state, and, under the laws of the state, the property escheated to or was subject to the custodial taking of that state;

(2) the last known address of the apparent owner of the property appearing on the records of the holder is in such other state and, under the laws of that state, the property escheated to or was subject to the custodial taking of that state;

(3) the property is the sum payable on a traveler’s check, registered check, money order, or other similar instrument that was presumed abandoned under section six B, the traveler’s check, registered check, money order, or other similar instrument was in fact purchased in such other state, and under the laws of that state, the property escheated to or was subject to the custodial taking of that state.

(b) The claim of another state to recover abandoned property under this section shall be presented in writing to the treasurer, who shall consider the claim within ninety days after it is presented. He may hold a hearing and receive evidence. He shall allow the claim if he determines that the other state is entitled to the abandoned property.

(c) Subparagraphs (1) and (2) of paragraph (a) shall not apply to property described in subparagraph (3) of said paragraph (a). Part II, Title II, Chap. 200A, Section 8B.

Unclaimed property; escheat; disposition.

(a) Property which has been surrendered to the state treasurer under provisions of this chapter shall vest in the commonwealth, subject, nevertheless, to provisions of section ten.

(b) The treasurer shall proceed with the liquidation of property not earlier than one year after its delivery to him under the provisions of this chapter except that property presumed abandoned pursuant to subsection (b) of section five B shall not be liquidated earlier than three years after it was delivered unless the treasurer shall in his opinion find it is in the best interests of the state to do so. If the treasurer sells any securities delivered pursuant to section five B before the expiration of the three year period, any person making a claim pursuant to this chapter before the end of the three year period is entitled to either the proceeds of the sale of the securities or the market value of the securities at the time the claim is made, whichever amount is greater. A person making a claim under this chapter after the expiration of this period is entitled to receive either the securities delivered to the treasurer by the holder, if they still remain in the hands of the treasurer, or the proceeds received from sale, but no person has any claim under this chapter against the commonwealth, the holder, any transfer agent, registrar, or other person acting for or on behalf of a holder for any appreciation in the value of the property occurring after delivery by the holder to the treasurer.

(c) If the liquidation requires that the property be sold the state treasurer shall sell it to the highest bidder at public sale in whatever city in the commonwealth affords, in the state treasurer’s judgment, the most favorable market for the particular property involved. The state treasurer may decline the highest bid and reoffer the property for sale if he considers the price offered insufficient. The sale shall be advertised in a newspaper in the county wherein the property was located at the time that it was presumed abandoned, but where the sale will be made in a different county it shall likewise be advertised in such county immediately preceding the sale. The state treasurer may refuse to offer such property at public sale if, in his opinion, it is valueless or of such little value that the cost of sale would exceed the public proceeds therefrom.

(d) All monies received by the treasurer from the holder thereof, or from the liquidation of the property under paragraphs (a) to (c), inclusive, shall be placed in a special fund as provided in paragraph (e) after deducting therefrom the costs incurred in connection with any liquidation of abandoned property, any costs of mailing and publication in connection with any abandoned property, and cost incurred in examining records of holders of abandoned property and collecting such property from such holders and reasonable service charges.

(e) Monies received by the treasurer under the proceedings of this chapter shall be placed in a special fund to be known as the Abandoned Property Fund. Whenever such fund exceeds five hundred thousand dollars, the excess shall be credited to the General Fund. Payments made by the treasurer under the provisions of paragraph (e) of section ten shall be made from said Abandoned Property Fund.

(f) All sales of property made by the state treasurer under provisions of this chapter shall pass absolute title to the purchaser thereof. Part II, Title II, Chap. 200A, Section 9.

Checks not cashed and deemed abandoned; notice; claims; disposition.

(a) On or before November first of each year the treasurer of any city or town holding checks issued by said city or town which have not been cashed and which are deemed abandoned under section five may issue a written determination that it is in the best interest of said city or town to follow the procedures set out in this section rather than the procedures set out in sections seven, seven A, seven B, eight, eight A, eight B, nine, ten, ten A and eleven. In the event that the treasurer of a city or town issues a written determination that it is in the best interests of said city or town to follow the procedures set out in this section, all checks in the possession of the city or town which were issued by said city or town and which are deemed abandoned under section five shall be governed by the provisions of subsections (b), (c), (d), and (e) rather than the provisions of sections seven, seven A, seven B, eight, eight A, eight B, nine, ten, ten A, and eleven.

(b) Between November first and December thirty-first of each year, a city or town in possession of a check in an amount of ten dollars or more issued by said city or town and not cashed, which is deemed abandoned under section five shall send a notice by first class mail to inform the apparent owner of the check of the process necessary to rebut the presumption of abandonment; provided, however, that said city or town has the last known address of the apparent owner and the records of said city or town do not disclose that said address is inaccurate.

(c) The treasurer of each city or town holding checks in an amount of one hundred dollars or more issued by said city or town, which have not been cashed and which are deemed abandoned under section five, shall cause a notice of said checks to be published not later than March first of each year, at least once a week for two consecutive weeks in a newspaper of general circulation which is printed in English in each county in which an apparent owner of each such check had a last known address.

Each published notice shall be entitled, “Notice of Names of Persons Appearing to be Owners of Checks Issued by (city or town), Which Have Not Been Cashed and are Deemed Abandoned” and shall contain the names in alphabetical order and last known address if any of:

(1) the apparent owners having a last known address within the county; and

(2) in the county in which said city or town is located the apparent owners whose last known address is outside the commonwealth or who do not have a last known address.

Each published notice shall also contain a statement that information about each such check may be obtained by any person expressing an interest in said check by addressing an inquiry to the treasurer of said city or town whose name and address shall be included in the notice.

(d) Any person claiming an interest in a check issued by a city or town which has not been cashed and which has been deemed abandoned under section five, may establish his claim at any time on or before one year after the date of said publication. The treasurer of said city or town shall possess full and complete authority to determine all such claims and shall, forthwith, send a written notice of such determination to the claimant. At any time within twenty days thereafter, such claimant may apply for a hearing and redetermination of his claim. After an appropriate hearing, before the treasurer of said city or town or his designee, said treasurer shall make a final determination.

The treasurer of said city or town or his designee is empowered to take testimony under oath and shall have the power to subpoena and require the attendance of witnesses and the production of books, papers, and documents which may be pertinent to such hearing.

The treasurer of said city or town shall render a decision within thirty days after such hearing. A claimant adversely affected by such decision may appeal within twenty days to the district, municipal, or superior court of the county wherein the claimant resides or in which said city or town is located. The claimant shall be entitled to a trial de novo. An appeal shall be perfected by the claimant within twenty days after receiving notice of an adverse determination from the treasurer of said city or town. Any party adversely affected by a decree or order of the district, municipal, or superior court may appeal to the appeals court or the supreme judicial court within twenty days from the date of the decree.

If the validity of a claim shall be determined in favor of the claimant, the treasurer of said city or town shall pay over to the claimant the amount of the check at issue in said claim, with interest thereon at the rate of one-twelfth of one per cent per month from the date that the claimant first made his claim.

If the claimant is domiciled in a country or state outside the United States or its territories and the treasurer of said city or town determines that there is not a reasonable assurance that the claimant will actually receive the payment to which he is entitled under this section in substantially full value, the superior court upon petition of said treasurer, or in its discretion may order that the city or town retain such payment.

(e) A city or town in possession of a check issued by said city or town and not cashed, which is deemed under section five to be abandoned and which has not been determined to belong to a claimant within one year of the date said check has been deemed abandoned may retain said check. Said check shall thereafter be credited to the general treasury of said city or town. Part II, Title II, Chap. 200A, Section 9A.

Claims; presentation to treasurer; proof.

(a) Any person claiming an interest in property surrendered to the state treasurer under the provisions of this chapter may establish his claim at any time thereafter. In the event that said property has not been liquidated at the time said claim is filed the state treasurer shall, forthwith, delay liquidation proceedings that may be in process until such time as the rights of the claimant have been finally determined.

(b) The state treasurer shall possess full and complete authority to determine all such claims and shall, forthwith, send a written notice of such determination to the claimant. At any time within twenty days thereafter such claimant may apply for a hearing and redetermination of his claim. After an appropriate hearing before the state treasurer, or person duly designated by him, the state treasurer shall make a final determination.

(c) The state treasurer, or any person duly designated by him, is empowered to take testimony under oath and shall have the power to subpoena and require the attendance of witnesses and the production of books, papers and documents which may be pertinent to such hearing.

(d) The state treasurer shall render a decision within thirty days after such hearing. A claimant adversely affected by such decision may appeal to the district, municipal or superior court of the county wherein he resides and shall be entitled to a trial de novo. Such appeal shall be perfected by the claimant within twenty days after receiving notice from the state treasurer. Any party adversely affected by a decree or order of the district, municipal or superior court may appeal to the supreme judicial court within twenty days from the date of the decree.

(e) If the validity of a claim shall be determined in favor of the claimant, the treasurer shall pay over to the claimant only that amount which the treasurer actually received together with interest at the rate of one-twelfth of one per cent per month from the time when it was received by the treasurer to the time when it was paid by him to the claimant; provided, however, that if the property claimed was interest bearing to the owner on the date of surrender by the holder then the treasurer shall instead add interest at a rate not to exceed five-twelfths of one per cent per month or such lesser rate as the property earned while in the possession of the holder. Such interest on interest bearing property shall begin to accumulate on the date property is delivered to the state treasurer and shall cease on the earlier of the expiration of fourteen years following delivery or the date on which payment is made to the owner. No interest on such interest bearing property shall be payable for any period prior to the effective date of this paragraph. Any holder who pays to the owner property which has been delivered to the commonwealth and which if claimed from the treasurer, would be subject to this section as interest-bearing property shall add interest as provided in this section. Such added interest shall be repaid to the holder by the treasurer in the same manner as the principal.

(f) If the claimant is domiciled in a country or state outside the United States or its territories and the state treasurer determines that there is not a reasonable assurance that the claimant will actually receive the payment to which he is entitled under this section in substantially full value, the superior court, upon petition of the state treasurer or an interested party, or in its discretion, may order that the state treasurer be permitted to liquidate the property if it has not already been liquidated and to turn over the amount of the payment to a recognized public or private agency for the purchase of goods in the form of necessaries of life, food, clothing and medicines, to be sent to the claimant upon his written request, order or assignment. Such order shall be final and binding upon all the parties in interest.

(g) All claims previously administered under the provisions of sections one hundred and forty-nine A to one hundred and forty-nine D, inclusive, of chapter one hundred and seventy-five shall be administered under the provisions of this section.

(h) If the claim is for property presumed abandoned under section five B which was sold by the treasurer within three years after the date of delivery, the amount payable for that claim is the value of the property at the time the claim was made or the net proceeds of sale, whichever is greater. Part II, Title II, Chap. 200A, Section 10.

Dividends, interest, etc.; credit to owner’s account.
Whenever any property is paid or delivered to the treasurer other than money under this act, the treasurer upon receipt, shall credit to the owner’s account any dividends, interest or other increments realized or accruing on the property at or before liquidation or conversion thereof into money. Part II, Title II, Chap. 200A, Section 10A.

Actions by or in another state to reclaim property; costs; information.

(a) At the request of another state, the attorney general may bring an action in the name of such other state in any court of competent jurisdiction in the commonwealth, or federal court within the commonwealth, to enforce the unclaimed property laws of such other state against a holder in the commonwealth of property subject to escheat or a claim of abandonment by such other state, if the other state has agreed to pay reasonable costs incurred by the attorney general in bringing the action.

(b) If the treasurer believes that a person in another state holds property subject to a claim of abandonment by the commonwealth under this chapter, the treasurer may request that the attorney general of the other state, or any other person, bring an action in the name of the commonwealth to enforce the provisions of this chapter against such person.

(c) The commonwealth shall pay all reasonable costs incurred in any action brought under the authority of this section. The treasurer may agree to pay to any person bringing such an action a fee not to exceed ten per cent of the value, after deducting reasonable costs, of any property recovered for the commonwealth as a direct or indirect result of the action; provided, however, that any cost or fee paid pursuant to this section shall not be deducted from the amount that is subject to the claim by the owner in accordance with this chapter.

(d) The treasurer may enter into an agreement to provide information needed to enable another state to audit or otherwise determine unclaimed property it may be entitled to escheat or subject to a claim of custody as abandoned property. The treasurer may, by regulation, require the reporting of information needed to enable him to comply with agreements made pursuant to this section and may prescribe the form including verification of the information to be reported and the time for filing of the reports. Part II, Title II, Chap. 200A, Section 11.

Treasurer; examination of books and records; reporting violations; penalty; costs; interest.

(a) The treasurer may at any reasonable time and upon reasonable notice examine the records of any person to determine if said person has complied with the provisions of the chapter. In the event such person refuses to permit the treasurer to examine such records, the treasurer shall petition the superior court for an order to allow the treasurer or his agents to examine all appropriate business records of such person.

(b) If the treasurer believes that the holder of property has violated the provisions of section seven, he shall petition the superior court for an order to require the holder thereof to turn over said property to him.

(c) If the court shall determine that the holder of such property has violated the provisions of section seven, he shall be liable to a penalty of not more than five hundred dollars; provided, however, that no person shall be penalized for failure to report property as provided herein if the court shall find that such person has acted in good faith.

(d) In the event that the superior court shall order the holder of property to turn over said property to the treasurer pursuant to paragraph (b), the court may include in said order a per diem rate of one hundred and fifty dollars per examiner as the cost of conducting the examination provided for in paragraph (a).

(e) In addition to any damages, penalties, or fines for which a person may be liable under other provisions of law, any person who fails to report or deliver unclaimed property within the time prescribed by this chapter, shall pay to the treasurer interest at the rate of twelve per cent per annum, or such adjusted rate as is hereinafter established under Title 26, section 6621 of the United States Code, on such property or value thereof from the date such property should have been paid or delivered. Part II, Title II, Chap. 200A, Section 12.

Agreements to recover property.
All agreements to pay compensation to recover or assist in the recovery of property reported under section seven made within twenty-four months after the date payment or delivery is made under section eight A are unenforceable. Such an agreement made more than twenty-four months after payment or delivery is required under said section eight A is valid if: (a) it is in writing, signed by the owner and discloses the nature and value of the property and the name and address of the person or entity in possession of the property. (b) the fee or compensation does not exceed ten percent at any time.

Nothing in this section shall be construed to prevent an owner from asserting, at any time, that any agreement to locate property is based on excessive or unjust compensation. Part II, Title II, Chap. 200A, Section 13.

Rules and regulations.
The treasurer is hereby authorized to make necessary rules and regulations to carry out the provisions of this section. Part II, Title II, Chap. 200A, Section 13A.

Extensions for filing reports of abandoned property.
The treasurer is hereby empowered to extend the date for filing of a report and turning over property for a period up to two months upon written request of a holder if he deems such extension is warranted. Where such extension is granted the requirement for notice and publication by the treasurer shall be extended by a like period not to exceed two months. Part II, Title II, Chap. 200A, Section 13B.

Construction.
Nothing in this chapter shall be construed to affect the provisions of section thirteen of chapter eighteen; section six of chapter one hundred and fifteen A; section seven, eight and nine of chapter one hundred and twenty-two; section twenty-seven of chapter one hundred and twenty-three; sections ninety-six A and ninety-six B of chapter one hundred and twenty-seven; section five A of chapter one hundred and twenty-eight A; chapter one hundred and thirty-four; chapter one hundred and thirty-five; and, sections forty-five to forty-eight, inclusive, of chapter twenty-two C. Part II, Title II, Chap. 200A, Section 14.

Insufficient funds; appropriations.
If during any session of the legislature there are insufficient funds in the Abandoned Property Fund to pay all claims which have been allowed by the state treasurer or ordered to be paid by the court, the treasurer shall so certify to the legislature and shall request the legislature to appropriate from the General Fund to the Abandoned Property Fund an amount sufficient to pay such claims. Part II, Title II, Chap. 200A, Section 15.

Delivery or payment of abandoned property as release and discharge.
The payment or delivery of any property except property other than cash, whether or not payable or deliverable under this chapter, to the treasurer by any holder shall terminate any legal relationship between the holder and the owner and shall release and discharge such holder from any and all liability to the owner, his heirs, personal representatives, successors and assigns and any state or governmental agency, whether federal or foreign, by reason of such delivery or payment, regardless of whether such property, and such delivery and payment may be pleaded as a bar to recovery, and shall be a conclusive defense in any suit or action brought by such owner, his heirs, personal representatives, successors and assigns, or any state or governmental agency whether federal or foreign, or any other claimant against the holder by reason of such delivery or payment. Part II, Title II, Chap. 200A, Section 15A.

Duplicate certificates or other evidences of ownership under sec. 5B.
The holder of an interest under section five B shall deliver a duplicate certificate or other evidence of ownership if the holder does not issue certificates of ownership to the treasurer. Upon delivery of a duplicate certificate to the treasurer, the holder and any transfer agent, registrar, or other person acting for or on behalf of a holder in executing or delivering the duplicate is relieved of all liability of every kind in accordance with the provision of section fifteen D to every person, including any person acquiring the original certificate or the duplicate of the certificate issued to the treasurer, for any losses or damages resulting to any person by the issuance and delivery to the treasurer of the duplicate certificate. Part II, Title II, Chap. 200A, Section 15B.

Charges and cessation of interest on abandoned property.
In connection with property heretofore or hereinafter reportable or reportable under this chapter, no holder may impose any charges in respect of dormancy or inactivity on a savings or checking account or cease payment of interest unless:

(1) such charges and such cessation of interest are provided for in a valid, enforceable and written contract between the holder and the customer which specifies the amount of such charges and that interest will cease;

(2) the customer is notified prior to the imposition of such charges and cessation of interest; and

(3) it is not the policy of the holder to waive such charges or to restore interest. No holder shall deduct from the amount of any draft, registered check, money order, certified check, cashier’s check or treasurer’s check or any similar written instrument any charges imposed by reason of the failure to present such items for encashment unless such charges are provided for in a valid enforceable and written contract and it is not the policy of the holder to waive such charges. Part II, Title II, Chap. 200A, Section 15C.

Good faith delivery to treasurer; defense and indemnification by commonwealth.

(1) If the holder pays or delivers property to the treasurer in good faith and thereafter another person claims the property from the holder or another state claims the money or property under its laws relating to escheat or abandoned or unclaimed property, the commonwealth, upon written notice to the treasurer of the claim, shall defend the holder against the claim and indemnify the holder against any liability on the claim.

(2) For the purposes of this section, “good faith” shall mean: (1) payment or delivery was made in a reasonable attempt to comply with this chapter; (2) the person delivering the property was not a fiduciary then in breach of trust in respect to the property and had reasonable basis for believing, based on the facts then known to him, that the property was abandoned for the purposes of this chapter; and (3) there is no showing that the records pursuant to which the delivery was made did not meet reasonable commercial standards of practice in the industry. Part II, Title II, Chap. 200A, Section 15D.

Inconsistent provisions; repeal.
All provisions of the General Laws inconsistent herewith are hereby repealed. Part II, Title II, Chap. 200A, Section 16.

Severability.
If any section or clause of this chapter is held invalid or unconstitutional by a court of competent jurisdiction the remainder shall not be affected thereby. Part II, Title II, Chap. 200A, Section 17.


Inside Massachusetts Disposition of Unclaimed Property Law