The securities proposed regulation defines “Securities and Related Property” as property that consists of:
- Intangible ownership interests in corporations, whether or not represented by a stock certificate, bonds, and other securities;
- Dividends, cash, stock and other distributions made (or attempted to be made) by issuers of securities in respect of the securities issued;
- Certificates of membership in a corporation or association;
- Funds deposited by a Holder with fiscal agents or fiduciaries for payment to Owners of dividends, coupon interest, and liquidation value of stocks and bonds; and
- Funds to redeem stocks and bonds.
If the regulation is enacted, Holders of “Securities and Related Property” will be responsible for attempting to contact the apparent owner of the property. The Holder must send a due diligence owner notification letter no more than 120 days, and no less than 60 days, before reporting the property to the State Escheator. The value of the property must have a value of $250.00 or more.
If any letter is returned to the Holder undelivered, or if any letter appears to have been delivered but the apparent owner of the property fails to respond to the letter before the Holder’s report of Abandoned Property is due, the Securities and Related Property shall be deemed Abandoned Property against which a full Period of Dormancy has run.
The Holder is excused from attempting to contact the apparent owner if the Holder has no record of an address for the apparent owner, or if the Holder has already given notices to the apparent Owner in a form similar to that required by the proposed regulation under existing federal or state laws.