Senate Bill No. 155--Committee on Judiciary CHAPTER........ AN ACT relating to the disposition of unclaimed property; revising provisions governing the payment or delivery of unclaimed property to the division of unclaimed property of the department of business and industry; revising certain notice requirements; authorizing the destruction of certain unclaimed property; requiring banks and savings and loan associations to deliver certain property removed from a safe-deposit box to the division; and providing other matters properly relating thereto. THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS: Section 1. NRS 120A.280 is hereby amended to read as follows: 120A.280 1. Within 180 days after the filing of the report required by NRS 120A.250 [,] \and the payment or delivery of the property required by NRS 120A.360,\\ the administrator shall cause notice to be published [at least once each week for 2 successive weeks in a] \in at least one\\ newspaper of general circulation in the county in this state in which is located the last known address of any person to be named in the notice. If no address is listed or if the address is outside this state, the notice must be published in the county in which the holder of the abandoned property has his principal place of business within this state. 2. The published notice must be entitled "Notice of Names of Persons Appearing To Be Owners of Abandoned Property," and must contain: (a) The names in alphabetical order and last known addresses, if any, of persons listed in the report and entitled to notice within the county. (b) A statement that information concerning the amount or description of the property and the name and address of the holder may be obtained by any person possessing an interest in the property by addressing an inquiry to the division. (c) [A statement of the provisions of subsection 3. 3. If proof of the claim is not presented by the owner to the holder and if the owner's right to receive the property is not established to the holder's satisfaction within 60 days after the date of the second published notice, the abandoned property will be placed not later than 80 days after the publication date in the custody of the division, to which all further claims must thereafter be directed. 4.] \If the property was removed from a safe-deposit box or other safekeeping repository, a statement declaring that the administrator will hold the property for 1 year after the date the property was delivered to the division, and that the property may be destroyed if no claims are made for it within that period. 3.\\ The administrator is not required to publish in the notice any item valued at less than $50 unless he deems the publication to be in the public interest. \4. In addition to the notice required to be published pursuant to this section, the administrator shall take such actions as are reasonably calculated to give actual notice to the owner of property presumed abandoned, including, without limitation, using information obtained from the department of motor vehicles and public safety and other governmental agencies or executing contracts with private businesses to assist in locating such owners of property.\\ Sec. 2. NRS 120A.320 is hereby amended to read as follows: 120A.320 1. Except as otherwise provided in [subsections 2 and 4,] \subsection 3 and NRS 120A.160,\\ every person who [has filed] \files\\ a report under NRS 120A.250 shall, [within 20 days after the time specified in NRS 120A.280 for claiming the property from the holder or in the case of sums payable on traveler's checks or money orders presumed abandoned under NRS 120A.160, within 20 days after the filing of the report,] \at the time of filing the report,\\ pay or deliver to the division all abandoned property specified in this report. 2. [If an owner has established his right to receive any of the abandoned property to the holder's satisfaction within the time specified in NRS 120A.280 or if it appears to the holder that for some other reason the presumption of abandonment is erroneous, the property will no longer be presumed abandoned and the holder need not pay or deliver it to the division, but shall file a verified written explanation of the proof of claim or of the error in the presumption of abandonment. 3.] The holder of an interest under NRS 120A.190 shall deliver a duplicate certificate or other evidence of ownership if the holder does not issue certificates of ownership to the division. Upon delivery of a duplicate certificate to the administrator, the holder and any transfer agent, registrar, or other person acting for or on behalf of a holder in executing or delivering the duplicate certificate is relieved of all liability to every person, including any person acquiring the original certificate or the duplicate of the certificate issued to the division, for any losses or damages resulting to any person by the issuance and delivery to the division of the duplicate certificate. [4.] \3.\\ Property which in all probability will be presumed abandoned pursuant to NRS 120A.200 may, upon approval of the administrator, be reported and delivered by the holder to the division before the date it is statutorily presumed abandoned. Sec. 3. NRS 120A.330 is hereby amended to read as follows: 120A.330 [After the administrator has received reports of property presumed abandoned, he] \Except for property that was removed from a safe-deposit box, the administrator\\ may decline to receive any [of the reported] \abandoned\\ property which he deems to have a value less than the cost of giving notice and holding a sale, or he may, if he deems it desirable because of the small sum involved, postpone taking possession until a sufficient sum accumulates. Unless it gives notice to the contrary [, within 180 days after the holder has filed his report,] \at the time it receives abandoned property,\\ the division shall be deemed to have elected to receive \and maintain\\ the custody of the property. Sec. 4. NRS 120A.360 is hereby amended to read as follows: 120A.360 1. Except as otherwise provided in subsections 4 [and 5,] \, 5 and 6,\\ all abandoned property other than money delivered to the division under this chapter must, within 1 year after the delivery, be sold by the administrator to the highest bidder at public sale in whatever city in the state affords in his judgment the most favorable market for the property involved. The administrator may decline the highest bid and reoffer the property for sale if he considers the price bid insufficient. 2. Any sale held under this section must be preceded by a single publication of notice thereof at least 2 weeks in advance of sale in a newspaper of general circulation in the county where the property is to be sold. 3. The purchaser at any sale conducted by the administrator pursuant to this chapter is vested with title to the property purchased, free from all claims of the owner or prior holder and of all persons claiming through or under them. The administrator shall execute all documents necessary to complete the transfer of title. 4. The administrator need not offer any property for sale if in his opinion the probable cost of sale exceeds the value of the property. The administrator may destroy or otherwise dispose of such property or may transfer it to: (a) The Nevada museum and historical society, the Nevada state museum or the Nevada historical society, upon its written request, if the property has, in the opinion of the requesting institution, historical, artistic or literary value and is worthy of preservation; or (b) A genealogical library, upon its written request, if the property has genealogical value and is not wanted by the Nevada museum and historical society, the Nevada state museum or the Nevada historical society. An action may not be maintained by any person against the holder of the property because of that transfer, disposal or destruction. 5. Securities listed on an established stock exchange must be sold at the prevailing price for that security on the exchange at the time of sale. Other securities not listed on an established stock exchange may be sold: (a) Over the counter at the prevailing price for that security at the time of sale; or (b) By any other method the administrator deems acceptable.\ 6. The administrator shall hold property that was removed from a safe-deposit box or other safekeeping repository for 1 year after the date of the delivery of the property to the division, unless that property is a will or a codicil to a will, in which case the administrator shall hold the property for 10 years after the date of the delivery of the property to the division. If no claims are filed for the property within that period, it may be destroyed.\\ Sec. 5. NRS 120A.430 is hereby amended to read as follows: 120A.430 If any person refuses to pay or deliver property to the division as required under this chapter, the attorney general, upon request of the administrator, may bring an action in a court of competent jurisdiction to enforce the payment or delivery. \In such an action, the court may award costs and reasonable attorney's fees to the prevailing party, and, if the division is the prevailing party, may impose a civil penalty against the losing party in an amount not to exceed 2 percent of the value of the property, or $1,000, whichever is greater.\\ Sec. 6. NRS 663.085 is hereby amended to read as follows: 663.085 1. If the rental due on a safe-deposit box has not been paid for 90 days, the lessor may send a notice by registered or certified mail to the last known address of the lessee stating that the safe-deposit box will be opened and its contents stored at the expense of the lessee unless payment of the rental is made within 30 days. If the rental is not paid within 30 days from the mailing of the notice, the box may be opened in the presence of any officer of the lessor and a notary public. The contents must be sealed in a package by the notary public, who shall write on the outside the name of the lessee and the date of the opening in the presence of the officer. The notary public and the officer shall execute a certificate reciting the name of the lessee, the date of the opening of the box and a list of its contents. The certificate must be included in the package and a copy of the certificate must be sent by registered or certified mail to the last known address of the lessee. [The] \If the contents of the safe-deposit box have been unclaimed by the owner for 5 years or less, the\\ package must then be placed in the general vaults of the lessor at a rental not exceeding the rental previously charged for the [box. 2. If the contents of the safe-deposit box have not been claimed within 6 months of the mailing of the certificate, the lessor may send another notice to the last known address of the lessee stating that, unless the accumulated charges are paid within 30 days, the contents of the box will be sold at public or private sale at a specified time and place, or, in the case of securities listed on a stock exchange, will be sold upon the exchange on or after a specified date. The time, place and manner of sale must also be posted conspicuously on the premises of the lessor and advertised once in a newspaper of general circulation in the community. Except as otherwise provided in subsection 3, if the articles are not claimed, they may then be sold in accordance with the notice. 3. Any document which has legal significance, including a will, codicil, deed, mortgage, policy of insurance, certificate of birth, marriage or death, contract or other evidence of indebtedness must be retained by the lessor or subsequent custodian, unless claimed by the owner, for 8 years after the box is opened pursuant to subsection 1. After that time, they may be destroyed. Any other documents or writings of a private nature, if they have little or no apparent value, need not be offered for sale, but must be retained, unless claimed by the owner, for 6 months, after which they may be destroyed. 4. The balance of the proceeds, after deducting accumulated charges, including the expense of advertising and conducting the sale, together with any money discovered in the box must be deposited to the credit of the lessee in any account maintained by him, or if none, must be deposited in a deposit account with the bank operating the safe- deposit facility, or in the case of a subsidiary safe- deposit company, a bank owning stock therein, and must be identified on the books of the bank as arising from the sale of contents of a safe-deposit box.] \box, until such time that the contents will have been unclaimed by the owner for more than 5 years, at which time the lessor shall deliver the package to the division of unclaimed property of the department of business and industry pursuant to the provisions of chapter 120A of NRS. 2. If the contents of a safe-deposit box that has been opened pursuant to subsection 1 have been unclaimed by the owner for more than 5 years, the lessor shall deliver the package to the division of unclaimed property of the department of business and industry pursuant to the provisions of chapter 120A of NRS.\\ Sec. 7. NRS 673.373 is hereby amended to read as follows: 673.373 1. If the rental due on a safe-deposit box has not been paid for 90 days, the lessor may send a notice by registered or certified mail to the last known address of the lessee stating that the safe-deposit box will be opened and its contents stored at the expense of the lessee unless payment of the rental is made within 30 days. If the rental is not paid within 30 days from the mailing of the notice, the box may be opened in the presence of any officer of the lessor and a notary public. The contents must be sealed in a package by the notary public, who shall write on the outside the name of the lessee and the date of the opening in the presence of the officer. The notary public and the officer shall execute a certificate reciting the name of the lessee, the date of the opening of the box and a list of its contents. The certificate must be included in the package and a copy of the certificate must be sent by registered or certified mail to the last known address of the lessee. [The] \If the contents of the safe-deposit box have been unclaimed by the owner for 5 years or less, the\\ package must then be placed in the general vaults of the lessor at a rental not exceeding the rental previously charged for the [box. 2. If the contents of the safe-deposit box have not been claimed within 6 months of the mailing of the certificate, the lessor may send a further notice to the last known address of the lessee stating that, unless the accumulated charges are paid within 30 days, the contents of the box will be sold at public or private sale at a specified time and place, or, in the case of securities listed on a stock exchange, will be sold upon the exchange on or after a specified date. The time, place and manner of sale must also be posted conspicuously on the premises of the lessor and advertised once in a newspaper of general circulation in the community. If the articles are not claimed, they may then be sold in accordance with the notice. 3. Any documents or writings of a private nature, having little or no apparent value, need not be offered for sale, but must be retained, unless claimed by the owner, for 6 months. After that time, they may be destroyed. Any documents of legal significance, including wills, codicils, deeds, mortgages, policies for insurance, contracts, certificates of birth or notes or other evidence of indebtedness must be retained by the lessor or subsequent custodian, unless claimed by the owner, for 8 years after the box is opened. After that time, they may be destroyed. 4. The balance of the proceeds, after deducting accumulated charges, including the expense of advertising and conducting the sale, together with any money discovered in the box must be deposited to the credit of the lessee in any account maintained by him, or if none, must be deposited in a deposit account with the financial institution operating the safe-deposit facility, or in the case of a subsidiary safe-deposit company, an association owning stock therein, and must be identified on the books of the association as arising from the sale of contents of a safe- deposit box.] \box, until such time that the contents will have been unclaimed by the owner for more than 5 years, at which time the lessor shall deliver the package to the division of the unclaimed property of the department of business and industry pursuant to the provisions of chapter 120A of NRS. 2. If the contents of a safe-deposit box that has been opened pursuant to subsection 1 have been unclaimed by the owner for more than 5 years, the lessor shall deliver the package to the division of unclaimed property of the department of business and industry pursuant to the provisions of chapter 120A of NRS.\\ Sec. 8. NRS 120A.290 is hereby repealed. -30-