Abandoned Property - Unclaimed Property Held By Brokers - Unclaimed property; when deemed abandoned


Published: 2017-04-28

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§ 511. Unclaimed property; when deemed abandoned. The following
unclaimed property shall be deemed abandoned property:

1. Any amount (a) received in this state after June thirtieth,
nineteen hundred forty-six by a broker or dealer or nominee of such
broker or dealer as the holder of record of a security remaining unpaid
to the person entitled thereto for three years following the receipt
thereof, or (b) when paid to such broker, dealer or nominee on or with
respect to a security which has been deemed abandoned.

1-a. Any amount (a) received in this state on or after July first,
nineteen hundred seventy-four by a broker or dealer or nominee of such
broker or dealer other than as the holder of record of a security
remaining unpaid to the person entitled thereto for three years
following the receipt thereof, or (b) when paid to such broker, dealer
or nominee on or with respect to a security which has been deemed
abandoned.

2. Any amount (a) received in this state after June thirtieth,
nineteen hundred forty-six due from a broker or dealer or nominee of
such broker or dealer to a customer which has remained unpaid to the
customer for three years after the date of the last entry, other than
the receipt of dividends or interest in the account of such broker,
dealer or nominee with such customer, or (b) payable on or with respect
to a security which has been deemed abandoned.

3. Any security held in this state by a broker or dealer, or nominee
of such broker or dealer, as the holder of record of a security for a
customer or for a person or persons unknown to such broker or dealer or
nominee where, for three successive years, all amounts paid thereon or
with respect thereto and received after June thirtieth, nineteen hundred
forty-six by such broker or dealer or nominee have remained unclaimed.

Provided, however, that if any amount or security specified in
subdivision one, two or three of this section is reflected, recorded, or
included in an account with respect to which such broker or dealer has
on file evidence in writing received within the three years immediately
preceding the thirty-first day of December preceding the date such
amount or security would otherwise be payable or deliverable pursuant to
section five hundred twelve that the person entitled thereto had
knowledge of such account, then such amount or security shall not be
deemed abandoned property.

4. Any security held by a broker or dealer or nominee of such broker
or dealer reflected, recorded, or included in an account with respect to
which, for three successive years, all statements of account or other
communications which have been sent, via first class mail, to the
customer at his last known address have been returned to such broker,
dealer or nominee by the postal authorities for inability to locate the
customer, and no written communication has been received from the
customer by such broker, dealer or nominee, provided such security was
received or is held in this state by such broker, dealer or nominee or
the last known address of the customer is located in this state.

5. Any wages held and payable on or after July first, nineteen hundred
sixty-six by a broker or dealer, as defined in section five hundred ten
of this article, for the benefit of a person or persons, known or
unknown shall be deemed to be abandoned property, where for three
successive years:

(a) All such wages have remained unpaid to such person, and

(b) No written communication has been received from such person by the
holder, and

(c) Notice regarding such wages, if sent by the broker or dealer, via
first class mail, to such person at his last known address has been
returned to the broker or dealer by the postal authorities for inability
to locate such person.

6. Any broker or dealer who satisfies the requirements of this
subdivision may determine the property which on the thirty-first day of
December in the years nineteen hundred seventy-two, nineteen hundred
seventy-three, nineteen hundred seventy-four and nineteen hundred
seventy-five shall be deemed abandoned property pursuant to subdivisions
one and three of this section relating to the years nineteen hundred
sixty-seven, nineteen hundred sixty-eight, nineteen hundred sixty-nine,
and nineteen hundred seventy by the method hereinafter in this
subdivision described and the amount so determined as at any such date
shall be deemed to be all of such abandoned property held by such broker
or dealer pursuant to subdivisions one and three of this section on such
date.

The broker or dealer shall compute separately for each of the years
nineteen hundred sixty-five and nineteen hundred sixty-six (each of
which years is referred to in this subdivision as a "base year") the
total value of all stock and cash dividends received by such broker or
dealer, or nominee of such broker or dealer, in this state during such
year as the holder of record of a security. The value of any dividend
paid in stock shall be the mean price of such stock during the calendar
month in which the dividend was received as reported by any generally
recognized statistical service or, if not so reported, as established in
any other manner satisfactory to the state comptroller. The total value
of all such stock and cash dividends thus determined for each base year
shall be the denominator for that base year. The broker or dealer shall
then determine the total value of all such dividends received during
each base year belonging to unknown owners as reported to the state
comptroller, or as required to be so reported pursuant to this article,
which continued to be held by such broker or dealer, or nominee of such
broker or dealer, unpaid to the person entitled thereto on the December
thirty-first occurring five years after the close of such base year. To
the extent any such dividends which continued to be so held unpaid on
any such December thirty-first consisted of stock, such stock shall be
valued at the mean price of such stock during the calendar month ending
on such December thirty-first as reported by any generally recognized
statistical service or, if not so reported, as established in any other
manner satisfactory to the state comptroller. The total value of such
remaining dividends thus determined for each base year shall be the
numerator for that base year. The sum of the numerators for the base
years shall be divided by the sum of the denominators for the base years
and the result thus obtained shall be multiplied by two. The product
obtained as the result of such multiplication shall be the average
factor of such broker or dealer.

In order to determine the property which on the thirty-first day of
December, nineteen hundred seventy-two shall be deemed abandoned
property pursuant to subdivisions one and three of this section relating
to the year nineteen hundred sixty-seven the broker or dealer shall
determine (i) the total value of all stock and cash dividends (valued as
above provided) received by such broker or dealer, or nominee of such
broker or dealer, in this state during nineteen hundred sixty-seven as
the holder of record of a security and shall multiply such total value
by the average factor of such broker or dealer, (ii) the aggregate
amount of stock and cash dividends (valued as above provided) received
by such broker or dealer, or nominee of such broker or dealer, in this
state during nineteen hundred sixty-seven as the holder of record of a
security for a person or persons unknown to such broker or dealer, less
the cost incurred by such broker or dealer not later than the
thirty-first day of December, nineteen hundred seventy-two in covering
stock and cash dividends which should have been received by such broker
or dealer, or nominee of such broker or dealer, during nineteen hundred
sixty-seven but, according to the books and records of such broker or
dealer, were not received, and (iii) the aggregate amount of interest
payments received by such broker or dealer, or nominee of such broker or
dealer, in this state during nineteen hundred sixty-seven on securities
held for persons unknown to such broker or dealer, less the cost
incurred by such broker or dealer not later than the thirty-first day of
December, nineteen hundred seventy-two in covering interest payments
which should have been received by such broker or dealer, or nominee of
such broker or dealer, during nineteen hundred sixty-seven but,
according to the books and records of such broker or dealer, were not
received. The greater of the two amounts determined pursuant to clauses
(i) and (ii) of the preceding sentence, plus the amount determined
pursuant to clause (iii) of such sentence, shall be deemed abandoned
property pursuant to subdivisions one and three of this section relating
to the year nineteen hundred sixty-seven on the thirty-first day of
December nineteen hundred seventy-two.

In order to determine the property which on the thirty-first day of
December, nineteen hundred seventy-three shall be deemed abandoned
property pursuant to subdivisions one and three of this section relating
to the year nineteen hundred sixty-eight the broker or dealer shall
determine (i) the total value of all stock and cash dividends (valued as
above provided) received by such broker or dealer, or nominee of such
broker or dealer, in this state during nineteen hundred sixty-eight as
the holder of record of a security and shall multiply such total value
by the average factor of such broker or dealer, (ii) the aggregate
amount of stock and cash dividends (valued as above provided) received
by such broker or dealer, or nominee of such broker or dealer, in this
state during nineteen hundred sixty-eight as the holder of record of a
security for a person or persons unknown to such broker or dealer, less
the cost incurred by such broker or dealer not later than the
thirty-first day of December, nineteen hundred seventy-three in covering
stock and cash dividends which should have been received by such broker
or dealer, or nominee of such broker or dealer, during nineteen hundred
sixty-eight but, according to the books and records of such broker or
dealer, were not received, and (iii) the aggregate amount of interest
payments received by such broker or dealer, or nominee of such broker or
dealer, in this state during nineteen hundred sixty-eight on securities
held for persons unknown to such broker or dealer, less the cost
incurred by such broker or dealer not later than the thirty-first day of
December, nineteen hundred seventy-three in covering interest payments
which should have been received by such broker or dealer, or nominee of
such broker or dealer, during nineteen hundred sixty-eight but,
according to the books and records of such broker or dealer, were not
received. The greater of the two amounts determined pursuant to clauses
(i) and (ii) of the preceding sentence, plus the amount determined
pursuant to clause (iii) of such sentence, shall be deemed abandoned
property pursuant to subdivisions one and three of this section relating
to the year nineteen hundred sixty-eight on the thirty-first day of
December, nineteen hundred seventy-three.

In order to determine the property which on the thirty-first day of
December, nineteen hundred seventy-four shall be deemed abandoned
property pursuant to subdivisions one and three of this section relating
to the year nineteen hundred sixty-nine the broker or dealer shall
determine (i) the total value of all stock and cash dividends (valued as
above provided) received by such broker or dealer, or nominee of such
broker or dealer, in this state during nineteen hundred sixty-nine as
the holder of record of a security and shall multiply such total value
by the average factor of such broker or dealer, (ii) the aggregate
amount of stock and cash dividends (valued as above provided) received
by such broker or dealer, or nominee of such broker or dealer, in this
state during nineteen hundred sixty-nine as the holder of record of a
security for a person or persons unknown to such broker or dealer, less
the cost incurred by such broker or dealer not later than the
thirty-first day of December, nineteen hundred seventy-four in covering
stock and cash dividends which should have been received by such broker
or dealer, or nominee of such broker or dealer, during nineteen hundred
sixty-nine but, according to the books and records of such broker or
dealer, were not received, and (iii) the aggregate amount of interest
payments received by such broker or dealer, or nominee of such broker or
dealer, in this state during nineteen hundred sixty-nine on securities
held for persons unknown to such broker or dealer, less the cost
incurred by such broker or dealer not later than the thirty-first day of
December, nineteen hundred seventy-four in covering interest payments
which should have been received by such broker or dealer, or nominee of
such broker or dealer, during nineteen hundred sixty-nine but, according
to the books and records of such broker or dealer, were not received.
The greater of the two amounts determined pursuant to clauses (i) and
(ii) of the preceding sentence, plus the amount determined pursuant to
clause (iii) of such sentence, shall be deemed abandoned property
pursuant to subdivisions one and three of this section relating to the
year nineteen hundred sixty-nine on the thirty-first day of December
nineteen hundred seventy-four.

In order to determine the property which on the thirty-first day of
December, nineteen hundred seventy-five shall be deemed abandoned
property pursuant to subdivisions one and three of this section relating
to the year nineteen hundred seventy the broker or dealer shall
determine (i) the total value of all stock and cash dividends (valued as
above provided) received by such broker or dealer, or nominee of such
broker or dealer, in this state during nineteen hundred seventy as the
holder of record of a security and shall multiply such total value by
the average factor of such broker or dealer, (ii) the aggregate amount
of stock and cash dividends (valued as above provided) received by such
broker or dealer, or nominee of such broker or dealer, in this state
during nineteen hundred seventy as the holder of record of a security
for a person or persons unknown to such broker or dealer, less the cost
incurred by such broker or dealer not later than the thirty-first day of
December, nineteen hundred seventy-five in covering stock and cash divi-
dends which should have been received by such broker or dealer, or
nominee of such broker or dealer, during nineteen hundred seventy but,
according to the books and records of such broker or dealer, were not
received, and (iii) the aggregate amount of interest payments received
by such broker or dealer, or nominee of such broker or dealer, in this
state during nineteen hundred sixty-nine on securities held for persons
unknown to such broker or dealer, less the cost incurred by such broker
or dealer not later than the thirty-first day of December, nineteen
hundred seventy-five in covering interest payments which should have
been received by such broker or dealer, or nominee of such broker or
dealer, during nineteen hundred seventy but, according to the books and
records of such broker or dealer, were not received. The greater of the
two amounts determined pursuant to clauses (i) and (ii) of the preceding
sentence, plus the amount determined pursuant to clause (iii) of such
sentence, shall be deemed abandoned property pursuant to subdivisions
one and three of this section relating to the year nineteen hundred
seventy on the thirty-first day of December, nineteen hundred
seventy-five.

Each broker or dealer which uses the procedure described above in this
subdivision shall maintain for a period of not less than six years
commencing January first, nineteen hundred seventy-two, books and
records evidencing the receipt of dividends in this state for each of
the base years, and the payment thereof over the five years succeeding
each base year.

Any broker or dealer who chooses to determine the property which on
the thirty-first day of December in the years nineteen hundred
seventy-two or nineteen hundred seventy-three shall be deemed abandoned
property pursuant to subdivisions one and three of this section relating
to the years nineteen hundred sixty-seven or nineteen hundred
sixty-eight by the method described in this subdivision shall thereafter
determine the property which on the thirty-first day of December in each
subsequent year ending not later than December thirty-first, nineteen
hundred seventy-five shall be deemed abandoned property pursuant to
subdivisions one and three of this section relating to a year not later
than nineteen hundred seventy by the method described in this
subdivision. No broker or dealer may choose to determine the property
which on the thirty-first day of December in the years nineteen hundred
seventy-four or nineteen hundred seventy-five shall be deemed abandoned
property pursuant to subdivisions one and three of this section relating
to the years nineteen hundred sixty-nine or nineteen hundred seventy by
the method described in this subdivision unless such broker or dealer
shall have used the method described in this subdivision to determine
the property which on the thirty-first day of December in the year
nineteen hundred seventy-three shall be deemed abandoned property
pursuant to subdivisions one and three of this section relating to the
year nineteen hundred sixty-eight.

The method of determining abandoned property pursuant to subdivisions
one and three of this section as described in this subdivision shall be
available only to such brokers or dealers as have made written reports
pursuant to section five hundred thirteen in each of the years nineteen
hundred seventy-one and nineteen hundred seventy-two covering each of
the base years.

In the event that an audit of a broker or dealer by the state
comptroller establishes that one or more of the dollar values determined
by the broker or dealer for the purpose of computing the average factor
of such broker or dealer pursuant to this subdivision was incorrect, the
corrected average factor of such broker or dealer established as a
result of such audit shall be determined to be the average factor
required to be used by such broker or dealer in determining abandoned
property pursuant to this subdivision.

Any broker or dealer who does not determine abandoned property
pursuant to subdivisions one and three of this section by the method
described in this subdivision and who during any of the calendar years
nineteen hundred sixty-seven, nineteen hundred sixty-eight, nineteen
hundred sixty-nine or nineteen hundred seventy received in this state
any stock dividend as the holder of record of a security for a person or
persons unknown to such broker or dealer and who sold any such stock
dividend during any such or subsequent calendar year, shall pay the
proceeds of such sale to the state comptroller not later than the
thirty-first day of December, nineteen hundred seventy-three and such
proceeds shall, for all purposes of this chapter be deemed abandoned
property on the thirty-first day of December of the calendar year during
which such sale takes place.