According to the Vermont law, when do contents of safe deposit box become abandoned?
Full Question:
My boyfriend and I had kept some personal items in a safe deposit when we were dating. After our breakup, I asked my boyfriend to take his things away from the safe deposit, as I was the sole person paying for the safe deposit. He never responded to my reminders. Now after 3 years he has come back to get his things back. Isn't his property abandoned? Can I refuse to give his things to him presuming it to have been abandoned by him?
04/20/2017 |
Category: Abandoned Property |
State: Vermont |
#35973
Answer:
Here is the relevant law in this regard.
27 V.S.A. § 1243:
Contents of safe deposit box or other safekeeping depository
Tangible property held in a safe deposit box or other safekeeping depository in this state in the ordinary course of the holder's business and proceeds resulting from the sale of the property permitted by other law are presumed abandoned if the property remains unclaimed by the owner for more than five years after expiration of the lease or rental period on the box or other depository.
27 V.S.A. § 1247:
Report of unclaimed property
(a) A holder of property presumed abandoned shall make a report to the treasurer concerning the property.
(b) The report shall be verified and shall contain:
(1) a description of the property;
(2) except with respect to a traveler's check or money order, the name, if known, and last known address, if any, and the Social Security number or taxpayer identification number, if readily ascertainable, of the apparent owner of property of the value of $ 50.00 or more;
(3) an aggregated amount of items valued under $ 25.00 each;
(4) in the case of an amount of $ 50.00 or more held or owing under an annuity or a life or endowment insurance policy, the full name and last known address of the annuitant or insured and of the beneficiary;
(5) in the case of property held in a safe deposit box or other safekeeping depository, an indication of the place where it is held and where it may be inspected by the treasurer, and any amounts owing to the holder;
(6) the date, if any, on which the property became payable, demandable, or returnable, and the date of the last transaction with the apparent owner with respect to the property; and
(7) other information that the treasurer prescribes as necessary by rule for the administration of this chapter.
(c) If a holder of property presumed abandoned is a successor to another person who previously held the property for the apparent owner or the holder has changed its name while holding the property, the holder shall file with the report its former names, if any, and the known names and addresses of all previous holders of the property.
(d) The report shall be filed before May 1 of each year and cover the preceding calendar year.
(e) The holder of property presumed abandoned shall send written notice to the apparent owner, at no cost to the apparent owner, not more than 120 days or less than 60 days before filing the report, stating that the holder is in possession of property subject to this chapter, if:
(1) the holder has in its records an address for the apparent owner that the holder's records do not reveal to be inaccurate;
(2) the claim of the apparent owner is not barred by a statute of limitations; and
(3) the value of the property is $ 50.00 or more.
(f) Before the date for filing the report, the holder of property presumed abandoned may request the treasurer to extend the time for filing the report. The treasurer may grant the extension for good cause. The holder, upon receipt of the extension, may make an interim payment on the amount the holder estimates will ultimately be due, which terminates the accrual of additional interest on the amount paid.
(g) The holder of property presumed abandoned shall file with the report an affidavit stating that the holder has complied with subsection (e) of this section.
(h) Verification and affidavit, 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 or his or her designee.
27 V.S.A. § 1248 :
Payment or delivery of unclaimed property
(a) Except for property held in a safe deposit box or other safekeeping depository, upon filing the report required by section 1247 of this title, the holder of property presumed abandoned shall pay, deliver, or cause to be paid or delivered to the treasurer the property described in the report as unclaimed. However, if the property is an automatically renewable deposit, and a penalty or forfeiture in the payment of interest would result, the time for compliance is extended until a penalty or forfeiture would no longer result. Tangible property held in a safe deposit box or other safekeeping depository may not be delivered to the treasurer until 120 days after filing the report required by section 1247 of this title.
(b) If the property reported to the treasurer is a security or security entitlement under 9 V.S.A. article 8, the treasurer is an appropriate person to make an endorsement, instruction, or entitlement order on behalf of the apparent owner to invoke the duty of the issuer or its transfer agent or the securities intermediary to transfer or dispose of the security or the security entitlement in accordance with 9 V.S.A. article 8.
(c) If the holder of property reported to the treasurer is the issuer of a certificated security, the treasurer has the right to obtain a replacement certificate pursuant to 9A V.S.A. § 8-405, but an indemnity bond is not required.
(d) An issuer, the holder, or a transfer agent or other person acting pursuant to the instructions of and on behalf of the issuer or holder in accordance with this section shall not be liable to the apparent owner in accordance with section 1250 of this title.
(e) A holder may deduct from that property a charge imposed by reason of the owner's failure to claim the property within a specified time only if there is a valid and enforceable written contract between the holder and the owner under which the holder may impose the charge and the holder regularly imposes the charge, which is not regularly reversed or otherwise cancelled. The amount of the charge shall be limited to an amount that is not unconscionable.
(f) The treasurer may require holders of unclaimed mutual funds to liquidate the mutual fund shares and remit the cash proceeds of the sale.
27 V.S.A. § 1249:
Notice and publication of lists of unclaimed property
(a) The treasurer shall notify apparent owners of unclaimed property under this chapter in the manner and method set out in subsection (b) of this section. In deciding whether to use an additional method specified in subdivision (b)(2) of this section, and which of those methods to use, the treasurer shall employ the method he or she deems to be the most cost-effective method available within its appropriations, while also giving consideration to the effectiveness of the method.
(b) The treasurer:
(1) shall notify all apparent owners of unclaimed property in accordance with this section by means of posting on the treasurer's website on the internet;
(2) may use any of the following to provide additional notice to the apparent owners:
(A) publication in a newspaper of general circulation:
(i) in the area of the state in which the last known address of a person to be named in the notice is located;
(ii) in the area in which the holder has its principal place of business in the state; or
(iii) in the area the treasurer deems to provide the best opportunity to reach the apparent owner;
(B) individual contact by regular or electronic mail, or by telephone, if the treasurer has current contact information on file;
(C) any other manner and method that the treasurer considers effective for providing notice and publication.
(c) In the notice and publication under subsection (b) of this section, the treasurer shall provide the names of the apparent owners of the property and information regarding recovery of the unclaimed property.
(d) The treasurer is not required to publish in the notice an item of less than $ 100.00 in value.
(e) The treasurer may establish a program to assist other state agencies holding property not presumed to be abandoned to locate the owners of the property. Under this program, the treasurer may publish the owners' names on the treasurer's website and in any other manner the treasurer deems appropriate without taking possession of the property. Owners contacting the treasurer's office under this program would be referred to the state agency possessing the property. Agencies participating in the program will remain obligated to report and remit the property to the treasurer's office after it is presumed abandoned.
27 V.S.A. § 1250:
Custody by state; recovery by holder; relief of holder from liability
(a) In this section, payment or delivery is made in "good faith" if:
(1) payment or delivery was made in a reasonable attempt to comply with this chapter;
(2) the holder was not then in breach of a fiduciary obligation with respect to the property and had a reasonable basis for believing, based on the facts then known, that the property was presumed abandoned; and
(3) there is no showing that the records under which the payment or delivery was made did not meet reasonable commercial standards of practice.
(b) Upon payment or delivery of property to the treasurer, the state assumes custody and responsibility for the safekeeping of the property. A holder who pays or delivers property to the treasurer in good faith is relieved of all liability arising thereafter with respect to the property.
(c) A holder who has paid money to the treasurer pursuant to this chapter may subsequently make payment to a person reasonably appearing to the holder to be entitled to payment. Upon a filing by the holder of proof of payment and proof that the payee was entitled to the payment, the treasurer shall promptly reimburse the holder for the payment without imposing a fee or other charge. If reimbursement is sought for a payment made on a negotiable instrument, including a traveler's check or money order, the holder shall be reimbursed upon filing proof that the instrument was duly presented, and that payment was made to a person who reasonably appeared to be entitled to payment. The holder shall be reimbursed for payment made even if the payment was made to a person whose claim was barred under subsection 1259(a) of this title. Once the holder is reimbursed, the holder shall reassume liability with respect to the property.
(d) A holder who has delivered property other than money to the treasurer pursuant to this chapter may reclaim the property if it is still in the possession of the treasurer, without paying any fee or other charge, upon filing proof that the apparent owner has claimed the property from the holder. Upon recovering the property, the holder shall reassume custody, responsibility for the safekeeping of the property, and liability with respect to the property.
(e) The treasurer may accept a holder's affidavit, sworn under oath, as sufficient proof of the holder's right to recover money and property under this section.
(f) If a 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, no lawsuit may be maintained against the holder.
(g) Property removed from a safe deposit box or other safekeeping depository shall be received by the treasurer subject to the holder's right to be reimbursed for the cost of the opening and to any valid lien or contract providing for the holder to be reimbursed for unpaid rent or storage charges. The treasurer shall reimburse the holder out of the proceeds remaining after deducting the expense incurred by the treasurer in selling the property.
27 V.S.A. § 1251:
Income accruing after payment or delivery
If property other than money is delivered to the treasurer under this chapter, the owner is entitled to receive from the treasurer any income, gain, or other increments identifiable to the owner realized or accruing on the property at or before liquidation or conversion of the property into money, but the owner is not entitled to any income, gain, or other increments realized or accruing on the money after liquidation. When money is paid or delivered to the treasurer under this chapter, the owner is not entitled to receive income, gain, or other increments accruing thereafter.
27 V.S.A. § 1252:
Public sale of unclaimed property
(a) The treasurer shall, within one year, sell abandoned property, other than securities, to the highest bidder at public sale at a location which in the judgment of the treasurer affords the most favorable market for the sale of the property. The treasurer may decline any bid as insufficient. The treasurer need not offer the property for sale if the treasurer considers that the probable cost of sale will exceed the proceeds of the sale, or if the treasurer considers the abandoned property to have little or no value. A sale held under this subsection shall be preceded by a single publication of notice, at least three weeks before the sale, in a newspaper of general circulation in the county in which the property is to be sold, or by such other methods as the treasurer determines will best advertise the sale.
(b) The treasurer shall, within one year after receipt, sell all abandoned securities. Securities listed on an established stock exchange shall be sold at prices prevailing on the exchange at the time of sale. Other securities may be sold over the counter at prices prevailing at the time of sale or by any reasonable method selected by the treasurer. A person making a claim under this chapter is entitled to the proceeds of the sale of the securities less any deduction for expenses of this sale. A person making a claim under this chapter before the securities are sold is entitled to receive the securities without additional cost.
(c) A purchaser of property at a sale conducted by the treasurer pursuant to this chapter takes the property free of all claims of the owner or previous holder and of all persons claiming through or under them. The treasurer shall execute all documents necessary to complete the transfer of ownership.
(d) Notwithstanding the other provisions of this chapter, the treasurer is authorized to use discretion in selling abandoned property. The treasurer may delay a sale if, in his or her judgment, market conditions are unfavorable. The treasurer may determine that certain types of abandoned property are not appropriate for public sale and withhold those items from sale.
27 V.S.A. § 1253:
Deposit of funds; information concerning owner
(a) All funds received under this chapter, including the proceeds from the sale of unclaimed property under section 1252 of this title, shall forthwith be received by the treasurer, except that the treasurer shall retain in a separate fund an amount not exceeding $ 100,000.00 or 55 percent of the funds received during the previous year, whichever is greater, from which he or she shall make prompt payment of claims duly allowed by him or her as provided in this section. The treasurer shall record the name and last known address of each owner appearing on the holder's reports and the names and last known address of each insured person or annuitant and beneficiary, and with respect to each policy or annuity listed in the report of an insurance company its number, the name of the company, and the amount due. The record shall be available for public inspection at all reasonable hours.
(b) Before making a deposit to the credit of the general fund, the treasurer may deduct:
(1) expenses of a sale of unclaimed property;
(2) costs of mailing and publication in connection with unclaimed property;
(3) reasonable service charges;
(4) expenses incurred in examining records of holders of property and in collecting the property from those holders; and
(5) property valued at $ 100.00 or less more than 10 years after the abandoned property was received from the holder under section 1248 of this title shall be paid by the treasurer into the higher education endowment trust fund created by 16 V.S.A. § 2885 under authority of this subsection. For purposes of this subsection, the value of the abandoned property shall be that value as of the date the property was received from the holder by the treasurer.
(c) Notwithstanding any other provision of this chapter, or of 1 V.S.A. chapter 5, subchapter 3, the treasurer may withhold information concerning an individual, or specific abandoned property, when in the treasurer's judgment it is necessary to assure that abandoned property is returned to the rightful owner, or to otherwise protect the owner. In addition, the treasurer may withhold information concerning individuals and abandoned property until notice has been provided in accordance with section 1249 of this title, deny requests for lists of owners in any format for 24 months after the date the property is paid or delivered to the treasurer, and withhold information concerning uncashed checks and other similar payment information prior to the property being presumed abandoned as set forth in section 1242 of this title.
27 V.S.A. § 1254:
Claim of another state to recover property
(a) After property has been paid or delivered to the treasurer under this chapter, another state may recover the property if:
(1) the property was paid or delivered to the custody of this state because the records of the holder did not reflect a last known location of the apparent owner within the borders of the state, and the other state establishes that the apparent owner or other person entitled to the property was last known to be located within the borders of that state and, under laws of that state, the property has escheated or become subject to a claim of abandonment by that state;
(2) the property was paid or delivered to the custody of this state because the laws of the other state did not provide for the escheat or custodial taking of the property, and, under the laws of that state, subsequently enacted, the property has escheated 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 identify the owner of the property and the last known location of the owner within the borders of another state and, under the laws of that state, the property has escheated or become subject to a claim of abandonment by that state;
(4) the property was subjected to custody by this state under subdivision 1245(6) of this title, and under the laws of the state of domicile of the holder, the property has escheated or become subject to a claim of abandonment by that state; or
(5) the property is a sum payable on a traveler's check, money order, or similar instrument that was purchased in the other state and delivered into the custody of this state under subdivision 1245(7) of this title, and under the laws of the other state, the property has escheated or become subject to a claim of abandonment by that state.
(b) A claim of another state to recover escheated or abandoned property shall be presented in a form prescribed by the treasurer, who shall decide the claim within 90 days after it is presented. The treasurer shall allow the claim upon determining that the other state is entitled to the unclaimed property under subsection (a) of this section.
(c) The treasurer shall require another state, before recovering property under this section, to agree to indemnify this state and its officers and employees against any liability on a claim to the property.
27 V.S.A. § 1255 :
Filing claim with treasurer; handling of claims by treasurer
(a) A person, excluding another state, claiming property paid or delivered to the treasurer may file a claim on a form prescribed by the treasurer and sworn under oath by the claimant.
(b) The treasurer shall review every abandoned property claim filed and determine whether to allow or deny the claim as promptly as possible, consistent with the need to determine the accuracy of the claim. The treasurer may request additional information from a claimant in order to make a determination of the claim. The treasurer shall give written notice of the decision to the claimant. If the claim is denied, the treasurer shall inform the claimant of the reasons for the denial and specify what additional evidence is required before the claim will be allowed. The claimant may then file a new claim with the treasurer or maintain an appeal under section 1256 of this title.
(c) The property or the net proceeds of a sale of the property shall be delivered or paid by the treasurer to the claimant as promptly as possible, provided that the treasurer has sufficient funds under section 1253 of this title.
(d) Any obligation to reimburse payment to the state treasurer under this chapter shall be the obligation of this state. Any amount payable pursuant to the reimbursement provisions of this chapter or payable under any judgment against the state pursuant to this chapter, shall be paid from the separate trust fund established by this chapter or, if the separate trust fund is insufficient, from state taxes levied upon all taxable property or income. If the judgment remains unsatisfied 90 days following the date of entry thereof and the conclusion of any appeal of the judgment, the amount of the judgment may be used as a credit against any taxes then due or thereafter becoming due to the state by the person in whose favor judgment was rendered.
27 V.S.A. § 1257 :
Election to take payment or delivery
(a) The treasurer may decline to receive property reported or delivered under this chapter.
(b) A holder, with the written consent of the treasurer and upon conditions and terms prescribed by the treasurer, may report and deliver property before the property is presumed abandoned. Property so delivered shall be held by the treasurer and is not presumed abandoned until it otherwise would be presumed abandoned under this chapter.
27 V.S.A. § 1258 :
Destruction or disposition of property having no substantial commercial value; immunity from liability
If the treasurer determines after investigation that property delivered under this chapter has no substantial commercial value, the treasurer may destroy or otherwise dispose of the property at any time. An action or proceeding may not be maintained against the state or any officer or against the holder for or on account of an act of the treasurer under this section, except for intentional misconduct or malfeasance.
27 V.S.A. § 1259:
Periods of limitation
(a) The expiration of a period of limitation on the owner's right to receive or recover property, whether specified by contract, statute, or court order, shall not preclude the property from being presumed abandoned or affect a duty to file a report or to pay or deliver or transfer property to the treasurer as required by this chapter.
(b) An action or proceeding may not be maintained by the treasurer to enforce this chapter in regard to the reporting, delivery, or payment of property more than 10 years after the holder specifically identified the property in a report filed with the treasurer or gave notice to the treasurer of a dispute regarding the property. In the absence of such a report or other express notice, the period of limitation shall be tolled. The period of limitation shall also be tolled by the filing of a report that is fraudulent.
(c) [Repealed.]