Utah Admin. Code R966-1-14 - Apparent Owner Interest

This rule regarding apparent owner interest will become enforceable beginning January 1, 2022.

(1) Under the Act and pursuant to Subsection 67-4a-208(1), the period after which property is presumed abandoned is measured from the later of:

(a) The date the property is presumed abandoned under the Act; or

(b) The latest indication of interest by the apparent owner in the property.

(2) Under the Act and pursuant to Subsection 67-4a-208(2), an indication of an apparent owner's interest in property includes, but is not limited to:

(a) A record communicated by the apparent owner to the holder or agent of the holder concerning the property or the account in which the property is held;

(b) An oral communication by the apparent owner to the holder or agent of the holder concerning the property or the account in which the property is held, if the holder or its agent contemporaneously makes and preserves a record of the fact of the apparent owner's communication;

(c) Presentment of a check or other instrument of payment of a dividend, interest payment, or other distribution, or evidence of receipt of a distribution made by electronic or similar means, with respect to an account, underlying security, or interest in a business association;

(d) Activity directed by an apparent owner in the account in which the property is held, including accessing the account or information concerning the account, or a direction by the apparent owner to increase, decrease, or otherwise change the amount or type of property held in the account;

(e) A deposit into or withdrawal from an account at a financial organization, except for a recurring Automated Clearing House (ACH) debit or credit previously authorized by the apparent owner or an automatic reinvestment of dividends or interest; Notwithstanding anything to the contrary in the Utah Revised Uniform Unclaimed Property Act, a deceased person cannot indicate interest in his or her property. The terms automatic deposit and automatic withdrawal as used in Section 67-4a-208(e) of the Utah Revised Uniform Unclaimed Property Act shall include the following activities:

(1) automatic deposits of wages previously authorized by the apparent owner or

(2) automatic withdrawals of funds to pay a mortgage or other bank loan previously authorized by the apparent owner. An automatic deposit or withdrawal does not include any of the following activities if they are previously authorized by the owner, rather than authorized by the owner at the time of the transaction.

(1) deposits of funds by a third party including pension funds or other retirement funds (other than wages);

(2) transfers of funds between accounts;

(3) withdrawals of funds to pay for goods or services provided by third parties;

(4) other types of withdrawals of funds directed by third parties other than the owner. These activities do not qualify as indications of owner interest.

(f) Subject to Section 67-4a-208(5), payment of a premium on an insurance policy.

(3) Owner-initiated activity. Owner-initiated financial transactions or authenticated owner-initiated administrative activity are an indication of an apparent owner's interest in the property. A holder must maintain a record of owner-initiated activity. These include, without limitation:

(a) Trading activity in the account; Notwithstanding the standards set forth in section 67-4a-206, if the owner of the security or securities related property is deceased, the security is presumed abandoned three years after the date of death of the owner.

(b) Depositing funds into the account or withdrawing funds from the account;

(c) Non-automated electronic distributions;

(d) Contacting the holder to discuss any account related matters;

(e) Sending the holder paperwork or documents related to the account;

(f) Meeting with (or otherwise interacting with) a financial advisor regarding the account;

(g) Modifying the account profile;

(h) Sending the holder correspondence regarding the account whether via mail or electronic means, including e-mail;

(i) Submitting an account service request online;

(j) Voting a proxy;

(k) Setting up the account for e-delivery; and,

(l) Accessing the account via the holder's website or other electronic means.

(4) Holder-generated activity. Apparent owner interest is distinguishable from holder-generated activity such as, without limitation, crediting dividends, posting account fees, and mailing account statements, which does not constitute apparent owner interest.

(a) Automatic financial or administrative transactions or activity, such as automatic payments or distributions or automatic portfolio rebalancing, shall not be considered apparent owner interest.

(b) Non-return of mail sent by the holder to an account owner does not constitute apparent owner interest.

(5) Interest by a person other than the apparent owner.

(a) An action by an agent or other representative of an apparent owner, other than the holder acting as the apparent owner's agent, is presumed to be an action on behalf of the apparent owner.

(b) A communication with an apparent owner by a person other than the holder or the holder's representative is not an indication of interest in the property by the apparent owner unless a record of the communication evidences the apparent owner's knowledge of a right to the property.

(c) If an apparent owner is deceased, apparent owner interest shall include activity of beneficiaries and estate executors or other persons who have a legal or equitable right to ownership or custody of the property.

(6) Consolidated statement rule for financial organizations.

(a) If the apparent owner has another property with the holder to which Section 67-4a-201(5) applies, then activity directed by an apparent owner in any other accounts, including loan accounts, at a financial organization holding an inactive account of the apparent owner shall be an indication of interest in all such accounts if the apparent owner engages in one or more of the following activities:

(i) The apparent owner undertakes one or more of the actions described in this Section regarding any account that appears on a consolidated statement with the inactive account;

(ii) The apparent owner increases or decreases the amount of funds in any other account the apparent owner has with the financial organization; or

(iii) The apparent owner engages in any other relationship with the financial organization, including payment of any amounts due on a loan.

(b) The rule in this subsection (6) applies so long as the mailing address for the apparent owner in the financial organization's books and records is the same for both the inactive account and the active account.

Notes

Utah Admin. Code R966-1-14

Adopted by Utah State Bulletin Number 2020-05, effective 1/22/2020