Abandoned Property - General Provisions - Penalty, interest and special proceedings 1


Published: 2014-09-22

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§ 1412. Penalty, interest and special proceedings

1. Any person wilfully failing to make any full and complete report or
to file any affidavit required by this chapter shall forfeit to the
people of the state the sum of one hundred dollars for each day such
report or affidavit shall be wilfully delayed or withheld, except that
the state comptroller may extend the time for making any such report or
filing any such affidavit and may waive the payment of any penalty or
part thereof provided for by this subdivision.

2. In addition to the penalty prescribed in subdivision one of this
section for failure to report, any person failing to pay any sum or to
deliver any property required to be paid or delivered to the state
comptroller by this chapter or any law relating to abandoned property
shall pay to the people of the state interest on the amount or value of
such property. Such interest shall be at the rate of ten per centum per
annum computed for a period to commence upon the date such payment or
delivery was required by this chapter and to terminate upon the date of
full compliance therewith, except that the state comptroller may waive
the payment of all or part of such interest whenever in his opinion the
circumstances warrant such waiver.

3. Upon the failure of any person to fully and completely report and
pay or deliver abandoned property to the comptroller pursuant to this
chapter or any other law relating to abandoned property, the comptroller
shall issue a determination of the amount due and owing him as custodian
of the abandoned property fund. Such determination shall be served by
certified mail upon the person failing to report and pay or deliver and
shall be presumptive evidence of the amount stated therein as due and
owing the comptroller. Such presumption shall apply to that portion of
the stated amount which is alleged to have become payable or deliverable
as abandoned property no longer than five years following the
thirty-first day of December of the year in which such report was
required to be filed. If a full and complete report and payment or
delivery is not made by such person within thirty days following the
receipt of the determination, the comptroller shall convene a hearing,
upon reasonable notice, in order to certify the amount due as abandoned
property. The notice of hearing shall be served by certified mail upon
the person having failed to report and pay or deliver.

4. Where the comptroller, or a person designated by him, after a
hearing certifies the amount due as abandoned property under the
provisions of this chapter or any law relating to abandoned property,
any aggrieved person may institute a special proceeding within ninety
days after notice of said certification under article seventy-eight of
the civil practice law and rules for the purpose of reviewing said
certification. In addition to the foregoing provisions of this section,
the comptroller may institute a special proceeding in the supreme court,
for a judgment directing payment to him of any sum certified to be
payable as abandoned property under this chapter together with interest
as provided in subdivision two of this section and in such proceeding by
the comptroller the certification by him shall be conclusive proof
thereof.