Abandoned Property - General Provisions - Sale of personal property by state comptroller


Published: 2014-09-22

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§ 1403. Sale of personal property by state comptroller. 1. Except as
provided in subdivision one-a of this section, all abandoned property,
other than money, heretofore paid to the state shall, prior to October
first, nineteen hundred forty-five, be sold by the state comptroller,
and all abandoned property, other than money and securities, delivered
to the state comptroller pursuant to this chapter, shall within fifteen
months after such delivery be sold by him, at public auction to the
highest bidder, except such property as in his opinion is valueless or
of such little value that the cost of sale would exceed the probable
proceeds therefrom. Securities shall be sold by the state comptroller on
any established stock exchange or by such other means as the comptroller
shall deem advisable within fifteen months after their delivery to him
pursuant to this chapter.

1-a. Where securities are delivered to the state comptroller pursuant
to this chapter on or after November first, nineteen hundred ninety-one,
or pursuant to any report of abandoned property which is required to be
made on or after November first, nineteen hundred ninety-one, the
comptroller shall sell such securities on any established stock exchange
or by such other means as the comptroller shall deem advisable as soon
as he may in his discretion deem practicable after their delivery to
him.

2. Except as provided in subdivision two-a of this section, the
proceeds from the sale of any such abandoned property, less all costs
incurred in connection with such sale, shall be deposited by the state
comptroller in the abandoned property fund and any claimant for
abandoned property shall be entitled only to the money so received and
deposited.

2-a. Any rightful owner of securities which are delivered to the
comptroller on or after November first, nineteen hundred ninety-one or
pursuant to any report of abandoned property which is required to be
made on or after November first, nineteen hundred ninety-one shall be
entitled to claim and receive from the comptroller, in accordance with
procedures established by him, such securities and accumulated amounts
or distributions thereon, including amounts or distributions accumulated
after such securities have been delivered to the comptroller, to the
same extent such owner would have been entitled to receive such
securities and amounts or distributions if such securities and amounts
or distributions had not been deemed abandoned pursuant to the
provisions of this chapter. This subdivision may, in the comptroller's
sole discretion, also apply to any rightful owner of securities which
have been delivered to the comptroller prior to November first, nineteen
hundred ninety-one where such securities are delivered pursuant to a
report of abandoned property required prior to November first, nineteen
hundred ninety-one but which have remained unsold by him as of such
date. In the event a claim is made and approved subsequent to the sale
of the securities, the comptroller shall pay the rightful owner the cash
equivalent of such securities as of the date of approval of any such
claim.

3. The state comptroller shall not be liable in any action for any act
of his made in good faith pursuant to this section.

4. Where any security delivered to the state comptroller pursuant to
this chapter or any act relating to the disposition of abandoned
property is delivered by him to the issuing corporation, the security
shall be transferred to him on the books of the corporation and a
certificate registered in the name of the state comptroller shall be
delivered to him or, if so requested by the comptroller, such
corporation shall register such securities in book entry form in the
name of the comptroller. The corporation and its transfer agent,
registrar or other person acting for or on behalf of the corporation in
executing or delivering such certificate or registering such securities
shall be relieved from liability to any person for any losses or damages
resulting from the issuance and delivery to the state comptroller of
such certificate or registration of such securities.