CHAPTER Tre 300  TREASURY- ABANDONED PROPERTY RULES

 

Statutory Authority:  RSA 471-C:42

 

PART 301  PURPOSE AND SCOPE

 

          Tre 301.01  Purpose.  The New Hampshire Unclaimed and Abandoned Property Law, RSA 471-C, requires all business, financial institutions, utilities, and other holders to review their records each year to determine whether they are in possession of any funds, securities or other property that might have been unclaimed for specified periods and to make an annual report of their findings.  These rules constitute a statement of general applicability for identifying abandoned property, those responsible for reporting it and the manner in which compliance examinations are conducted.

 

Source.  #3119, eff 9-23-85; amd by #4211, eff 1-20-87, EXPIRED: 1-20-93

 

New.  #7435, eff 1-25-01, EXPIRED: 1-25-09

 

New.  #9465, INTERIM, eff 4-25-09, EXPIRED: 10-22-09

 

          Tre 301.02  Scope.  These rules shall be applicable, in their entirety, to all persons and holders as defined below.

 

Source.  #4211, eff 1-20-87, EXPIRED: 1-20-93

 

New.  #7435, eff 1-25-01, EXPIRED: 1-25-09

 

New.  #9465, INTERIM, eff 4-25-09, EXPIRED: 10-22-09

 

PART Tre 302  DEFINITIONS

 

          Tre 302.01  "Act"  means the Unclaimed and Abandoned Property Law RSA 471-C.

 

Source.  #7435, eff 1-25-01, EXPIRED: 1-25-09

 

New.  #9465, INTERIM, eff 4-25-09, EXPIRED: 10-22-09

 

          Tre 302.02  “Administrator” means administrator as defined in 471-C:1,I

 

Source.  #7435, eff 1-25-01, EXPIRED: 1-25-09

 

New.  #9465, INTERIM, eff 4-25-09, EXPIRED: 10-22-09

 

          Tre 302.03  Auditor” means any individual, firm, or organization employed or retained by the State of New Hampshire treasury department for the purpose of carrying out an examination of records of any holder or person to determine compliance with RSA 471-C.  The term includes examiner.

 

Source.  #7435, eff 1-25-01, EXPIRED: 1-25-09

 

New.  #9465, INTERIM, eff 4-25-09, EXPIRED: 10-22-09

 

          Tre 302.04  Department means the state of New Hampshire treasury department.

 

Source.  #7435, eff 1-25-01, EXPIRED: 1-25-09

 

New.  #9465, INTERIM, eff 4-25-09, EXPIRED: 10-22-09

 

          Tre 302.05  Examination means the process of requesting, receiving, analyzing and otherwise reviewing the records of any holder or person for the purpose of determining compliance with RSA 471-C.

 

Source.  #7435, eff 1-25-01, EXPIRED: 1-25-09

 

New.  #9465, INTERIM, eff 4-25-09, EXPIRED: 10-22-09

 

          Tre 302.06  "Holder" means "holder" as defined in RSA 471-C:1, IX.

 

Source.  #7435, eff 1-25-01, EXPIRED: 1-25-09

 

New.  #9465, INTERIM, eff 4-25-09, EXPIRED: 10-22-09

 

          Tre 302.07  "Person" means "person" as defined in RSA 471-C:1, XIV.

 

Source.  #7435, eff 1-25-01, EXPIRED: 1-25-09

 

New.  #9465, INTERIM, eff 4-25-09, EXPIRED: 10-22-09

 

PART Tre 303  REPORT OF ABANDONED PROPERTY

 

          Tre 303.01  Report of Abandoned Property.

 

          (a)  Holders shall:
 
(1)  Report abandoned property; and
 
(2)  Include but not be limited to:

 

a.  Business associations;

 

b.  Banking or financial organizations;

 

c.  Insurance companies;

 

d.  Utilities;

 

e.  Persons, including any individual, government, political subdivision, public authority, public corporation, estate, trust, hospital or any other legal or commercial entity, including non-profit organizations; and

 

f.  Any other persons or entities holding property subject to the custody and control of the state pursuant to the provisions of RSA 471-C.

 

          (b)  All property as defined in RSA 471-C:1 or further described in 471-C:2 and 471-C:3a shall be reported.

 

          (c)  Report shall be due as follows:

 

(1)  All holders, except insurance companies, shall file the report on or before November 1 each year on form T-1 with respect to all property it holds as of the 30th day of the preceding June.

 

(2)  Insurance companies shall file the report on or before May 1 of each year on form T-1 with respect to all property it holds as of the preceding December 31.

 

          (d)  Any person in possession of property which will become reportable in the future, but is not yet presumed abandoned under the act, by complying with the provisions of RSA 471-C:29, II may file the report with the administrator prior to the date of required reporting.

 

          (e)  Holders shall attempt to locate the apparent owner as follows:

 

(1)  All holders shall exercise due diligence in attempting to locate apparent owners of unclaimed or abandoned property by delivering written notice to their last known address advising that:

 

a.  The holder is in possession of property subject to this chapter;

 

b.  The property has a value of $50.00 or more; and

 

c.  The holder should be contacted for recovery of the property; and

 

(2)  The written notice to an apparent owner shall be sent no sooner than 120 days but no later than 60 days, prior to reporting, to allow adequate time for owner response.

 

          (f)  Report shall be filed as follows:

 

(1)  FORM T-1 shall be used to report abandoned property;

 

(2)  The form shall be available from:

 

Office of the State Treasurer

Abandoned Property Division

25 Capitol Street, Room 205

Concord, NH  03301

(603) 271-2619

 

(3)  The completed report shall be filed on or before November 1st each year, provided, however, that insurers shall file on or before May 1 each year.

 

(4)  Each person submitting a report of abandoned property under RSA 471-C shall report on form T-1 or in other written form or electronic means capable of producing a written document so long as the following information is supplied:

 

a.  Name and address of holder;

 

b.  Identity of holder contact;

 

c.  Telephone number of holder;

 

d.  Report year;

 

e.  Number of individual owners listed on report;

 

f.  Property types;

 

g.  Identifying account numbers;

 

h.  Owners last name, first name, street address, city, state, zip code;

 

i.  Owner social security number;

 

j.  Date of last transaction or date property became payable/returnable;

 

k.  Amount due owner before deductions and withholdings;

 

l.  Number of shares due owner;

 

m.  Identifying number (CUSIP number);

 

n.  Amount remitted as due owner;

 

o.  Aggregate amounts due;

 

p.  Total amount of property remitted; and

 

q.  Duly notarized signature of authorized holder representative.

 

Source.  #7435, eff 1-25-01, EXPIRED: 1-25-09

 

New.  #9465, INTERIM, eff 4-25-09, EXPIRED: 10-22-09

 

          Tre 303.02  Determination of Abandoned Property Due and Deliverable.  Upon examination of the properly completed and filed T-1 report(s) or as the result of an audit/examination, unclaimed or abandoned property shall be identified and deemed due.

 

Source.  #7435, eff 1-25-01

 

New.  #9465, INTERIM, eff 4-25-09, EXPIRED: 10-22-09

 

          Tre 303.03  Payment or Delivery of Abandoned Property.  Any person who is required to report abandoned property pursuant to RSA 471-C shall pay or deliver all abandoned property to the administrator at the time of filing the report except as otherwise provided in RSA 471-C: 8, II.

 

Source.  #7435, eff 1-25-01, EXPIRED: 1-25-09

 

New.  #9465, INTERIM, eff 4-25-09, EXPIRED: 10-22-09

 

          Tre 303.04  Return of Report.

 

          (a)  Abandoned property reports submitted to the department shall be returned to the holder for correction when:

 

          (b)  The report is not in form specified in Tre 303.01 (f) above;

 

          (c)  The report fails to identify category(ies) of unclaimed or abandoned property contained in the report;

 

          (d)  The report fails to provide the date of last transaction or first payable date for property reported; or

 

          (e)  The report fails to include any other information required under the act.

 

Source.  #7435, eff 1-25-01, EXPIRED: 1-25-09

 

New.  #9465, INTERIM, eff 4-25-09, EXPIRED: 10-22-09

 

          Tre 303.05  Request for Reports and Evaluation of Records.

 

          (a)  Pursuant to RSA 471-C: 34, the administrator, is authorized to examine the records of any person in order to determine whether the person has complied with the provisions of RSA 471-C.

 

          (b)  The audit/examination process shall commence with the audit notification letter sent by the administrator to the audit/examination designee. This letter shall detail the audit period, identify the auditor(s) assigned and indicate who shall be at the entrance conference.

 

          (c)  Next, the auditor(s) shall make contact via telephone to:

 

(1)  Review the role of the compliance auditor;

 

(2)  Set up agreeable date, time and place for the entrance conference; and

 

(3)  Acknowledge that a confirmation letter, including a list of documents which should be available at that conference, will be sent.

 

          (d)  The confirmation letter shall then be sent detailing and or including:

 

(1)  The time, date and place of the entrance conference;

 

(2)  A copy of RSA 471-C;

 

(3)  List of records requested including, but not limited to:

 

a.  Charter, articles of organization, and similar documents;

 

b.  Organizational chart (corporate and personnel structure);

 

c.  Computer conversion dates;

 

d.  List of mergers and acquisitions with date and addresses;

 

e.  Chart of general ledger accounts with check writing accounts highlighted;

 

f.  Copies of previous years T-1 reports including work papers;

 

g.  Copy of records retention manual;

 

h.  Copy of policies and procedures relevant to unclaimed property;

 

i.  Current year end statement of condition – annual report;

 

j.  Accounting system user manuals;

 

k.  Fee schedules including service charge policies;

 

l.  Detailed dormant accounts report;

 

m. Listing of matured Certificates of Deposit (CD's), Individual Retirement Accounts (IRA's), 401(k)’s and account of similar nature.

 

n.  Listing of dormant or inactive savings, time, Direct Deposit Accounts (DDA) and NOW accounts; and

 

o.  Additional documents/records deemed appropriate or pertinent to the compliance examination of the particular holder by the examiner.

 

          (e)  At the agreed upon date, time and place the entrance conference shall be held to review:

 

(1)  RSA 471-C the Unclaimed and Abandoned Property Law;

 

(2)  The purpose, scope and objectives of the examination;

 

(3)  How the examination will be conducted;

 

(4)  The timeframes for production of documents and records;

 

(5)  Identification of holder contact person(s);

 

(6)  Explanation of when sampling techniques may be utilized;

 

(7)  General questionnaire and complete same; and

 

(8)  General questions and answers prior to commencing examination.

 

          (f)  As the result of this meeting agreement shall be reached so that the examiner(s) have:

 

(1)  Temporary workspace;

 

(2)  Unrestricted access to pertinent documents/records;

 

(3)  Unrestricted and direct access to responsible staff;

 

(4)  Prompt response to request by auditors, whether written, verbal or via telephone, facsimile.

 

          (g)  An examination by the administrator under authority of RSA 471-C shall include, but not be limited to, the following:

 

(1)  Analysis of the books and records of the holder shall take place to identify unclaimed/abandoned property and to determine level of compliance in reporting.  Discussion with appropriate holder personnel shall take place throughout the examination process;

 

(2)  In accordance with generally accepted accounting principles the examiners shall select testing samples and complete testing procedures.  The holder shall produce documentation in support of its accounting for the selected samples. Upon completion of testing and review if the examiner determines the holder is in compliance, the examiner shall proceed to close the audit;

 

(3)  When the examiner finds unreported abandoned property or other evidence of non-compliance with the act further detailed analysis of the books and records of the holder shall be performed;

 

(4)  A request for transaction codes list shall be made, if applicable;

 

(5) A holder shall be requested to furnish additional records or to carry out additional research when necessary for audit completion;

 

(6)  When a holder’s records are voluminous, unavailable, or physically or constructively inaccessible or where the holder questions the accuracy of its own records, estimation techniques shall be utilized to complete the examination; and

 

(7)  Upon conclusion of examination the auditor shall prepare an examination report summarizing the procedures performed and the conclusions reached.  This report shall also detail the amount(s) due, owing and deliverable.

 

Source.  #7435, eff 1-25-01, EXPIRED: 1-25-09

 

New.  #9465, INTERIM, eff 4-25-09, EXPIRED: 10-22-09

 

          Tre 303.06  Non-Compliance.

 

          (a)  Non-compliance shall be deemed to have occurred when a person/holder:

 

(1)  Fails to pay or deliver property within the time prescribed by the act;

 

(2)  Fails to render any report or perform any other duties as required under the act;

 

(3)  Fails to pay or deliver property to the administrator as required under the act;

 

(4)  Refuses, after written demand by the administrator, to pay or deliver property as required by the act; or

 

(5)  Fails to cooperate fully and in a timely manner as to all aspects of the audit/examination process.

 

Source.  #7435, eff 1-25-01, EXPIRED: 1-25-09

 

New.  #9465, INTERIM, eff 4-25-09, EXPIRED: 10-22-09

 

          Tre 303.07  Record Retention.
 
          (a)  All holders required to file reports under RSA 471-C: 19 as to property for which it has obtained the last known address of the owner, shall retain a record of the last known address for 7 years after the property becomes reportable.
 
          (b)  In the case of persons/holders who sell travelers checks, money orders or other similar instruments, the record of those instruments, while they remain outstanding, shall include the state and date of issue and shall be kept for 3 years from the date on which the property became reportable

 

Source.  #7435, eff 1-25-01, EXPIRED: 1-25-09

 

New.  #9465, INTERIM, eff 4-25-09, EXPIRED: 10-22-09

 

          Tre 303.08  Interest and Penalties.

 

          (a)  For non-compliance as set forth in RSA 471-C:38 I and these rules, the administrator is authorized to assess interest at the annual rate of 18 percent on the property or the value thereof from the date on which the property should have been delivered, or $25.00 which ever is greater.

 

          (b)  For non-compliance as set forth in RSA 471-C:38 II or these rules the administrator is authorized to assess, a civil penalty in the amount of $100.00 for each day the report is withheld or the duty is not performed, but not more than a total of $5,000.00.

 

          (c)  For non-compliance as set forth in RSA 471-C:38, III the person shall pay a civil penalty equal to 25 percent of the value of the property that should have been paid or delivered.

 

          (d)  For non-compliance as set forth in RSA 471-C:38, IV the person shall be guilty of a misdemeanor.

 

          (e)  For non-compliance with RSA 471-C:34 the administrator is authorized to assess costs of examination pursuant to RSA 471-C:34, IV.

 

          (f)  Any person deemed to be non-compliant and assessed penalties shall be given written notice of same and allowed a 30 day period within which to cure any and all defect(s) in compliance.

 

Source.  #7435, eff 1-25-01, EXPIRED: 1-25-09

 

New.  #9465, INTERIM, eff 4-25-09, EXPIRED: 10-22-09

 

          Tre 303.09  Claims.

 

          (a)  At any time after property has been paid or delivered to the administrator another state may claim said property pursuant to RSA 471-C: 27.

 

          (b)  At any time after property has been paid or delivered to the administrator a person, excluding another state, may claim said property pursuant to RSA 471-C:26.

 

          (c)  Claim information may be obtained by contacting:

 

Treasury Department

Abandoned Property Division

25 Capitol Street, Room 205

Concord, NH  03301

(603) 271-2619

 

Source.  #7435, eff 1-25-01, EXPIRED: 1-25-09

 

New.  #9465, INTERIM, eff 4-25-09, EXPIRED: 10-22-09

 

          Tre 303.10  Agreements to Locate, Deliver, or Recover Reported Property.

 

          (a)  Pursuant to RSA 471-C:39 agreements to pay compensation to locate, deliver, recover, or assist in the recovery of property are unenforceable if made within 24 months of receipt of the property by the abandoned property division.

 

          (b)  Such an agreement shall only be valid if it:

 

(1)  Is in writing;

 

(2)  Is signed by the apparent owner;

 

(3)  Sets forth the nature and value of the property;

 

(4)  Sets forth the value of the owner’s share after the fee or compensation is deducted; and

 

(5)  Contains the following disclosure:

 

“Each state maintains an office of abandoned property.  Generally, if for a number of years an owner of property has not communicated in writing directly with the holder of the property and has not otherwise indicated an interest in the property, the property may be transferred to the office of abandoned property which will act as custodian of the property for the owner.”

 

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

 

          (d)  Requests for information shall be subject to limitations under RSA 91-A, et seq. Access to Public Records and Meetings, also known as the Right to Know Law.

 

          (e)  To be considered all requests for information by a finder, heirfinder, tracer, or agent shall be:

 

(1)  In writing;

 

(2)  Limited to five (5) names of apparent owners per request;

 

(3)  Addressed and delivered to:

 

Director, Abandoned Property Division

 

Treasury Department

 

25 Capitol Street, Room 205

 

Concord, NH  03301

 

          (f)  All requests shall be responded to, in writing, in as timely a manner as possible, but no later than 90 days from receipt of the written inquiry by the abandoned property division.

 

Source.  #7435, eff 1-25-01, EXPIRED: 1-25-09

 

New.  #9465, INTERIM, eff 4-25-09, EXPIRED: 10-22-09

 

APPENDIX

 

RULE

STATUTE

 

 

Tre 300

RSA 471-C:42

(Specific provisions implementing specific statutes are listed below)

 

Tre 301.01

RSA 471-C:19

Tre 301.02

RSA 471-C:1

Tre 302

RSA 471-C:1

Tre 303.01

RSA 471-C:1, 19, 21

Tre 303.02

RSA 471-C:21, 34

Tre 303.03

RSA 471-C:21, 34

Tre 303.04

RSA 471-C:19, 34, 38

Tre 303.05

RSA 471-C:19, 34

Tre 303.06

RSA 471-C:38

Tre 303.07

RSA 471-C:35

Tre 303.08

RSA 471-C:34, 38

Tre 303.09

RSA 471-C:26, 27

Tre 303.10

RSA 471-C:39