Tenn. Comp. R. & Regs. 1720-01-14-.03 - DUE DILIGENCE

(1) Before reporting unclaimed property as described above, the University is required to exercise due diligence in attempting to notify the apparent owner of amounts of $50 or greater with information on how to claim property. "Due diligence" is defined under applicable Tennessee law as the degree of care which a reasonably prudent person would exercise in the normal course of business operations and sending a written notice via first-class or registered mail to the last known address of the apparent owner. Such written notice must be sent not more than one hundred eighty (180) days, nor less than sixty (60) days, before filing the report with the State Treasurer. If an apparent owner of unclaimed property has consented to receive electronic mail communications from the University, the University shall send the notice by both first-class mail to the apparent owner's last known mailing address and by electronic mail, unless the University has reason to believe that the apparent owner's electronic mail address is not valid. (Property under $50 requires no due diligence notice letter and is submitted to the State along with other unclaimed amounts from the same calendar year.)

(2) The University's notice to the apparent owner of unclaimed property must contain a heading that reads substantially as follows "Notice: The State of Tennessee requires us to notify you that your property may be transferred to the custody of the State Treasurer if you do not contact us within thirty (30) days after the date of this notice."

(3) Mail returned as "undeliverable" is evidence that the apparent owner cannot be located. If the apparent owner cannot be located, the property should be considered abandoned and be reported to the State as unclaimed property.

(4) Unreturned mail is considered a contact (presumably, the apparent owner has received the notification and is now aware of the property's location). If contact is established, the property is no longer considered to be abandoned and should not be reported to the State. If the apparent owner does not claim the property or provide the University with directions for disposing of the property within ninety (90) days of the date of contact, the University may then assume ownership of the property. The Controller's Office will account for these funds in claimed property funds that remain available should the funds be claimed by owners.

Notes

Tenn. Comp. R. & Regs. 1720-01-14-.03

Original rules filed September 30, 2019; effective December 29, 2019.

Authority: T.C.A. § 49-9-209(e) and Public Acts of Tennessee, 1839-1840, Chapter 98, Section 5, and Public Acts of Tennessee, 1807, Chapter 64.