20 KAR 1:060. Unclaimed property; safe deposit

boxes or other safekeeping repositories.

 

      RELATES TO: KRS 393.010, 393.020, 393.050, 393.060,

393.062, 393.064, 393.090, 393.110, 393.120

      STATUTORY AUTHORITY: KRS 393.280

      NECESSITY, FUNCTION, AND CONFORMITY: This

administrative regulation relates to the reporting, inventory, safekeeping and

liquidation of unclaimed property from holders who maintain safe deposit or

other safekeeping repositories.

 

      Section 1. Pursuant to KRS Chapter 393, every

holder maintaining safe deposit boxes or other safekeeping repositories located

in the Commonwealth shall report to the department with an inventory of property

in its possession which constitute unclaimed funds.

      (1) An inventory report shall be submitted for each

safe deposit box or safekeeping repository. Each report shall be signed by two

(2) officials of the holding company who opened the safe deposit box or

safekeeping repository and conducted the inventory. Each report shall include a

statement containing the following information:

      (a) The name, last known address, and Social

Security number of owner;

      (b) The expiration date of the lease or rental

agreement for such safe deposit box or other safekeeping depository;

      (c) The date of opening of such safe deposit box or

other safekeeping repository;

      (d) The number or identifying description of the

safe deposit box or other safekeeping repository;

      (e) A detailed list describing each item therein;

      (f) The name and address of the holder reporting

the property; and

      (g) The names, signatures, and official positions

of the two (2) holding company employees who opened the box and conducted the

inventory.

      (2) The property of each safe deposit box or

safekeeping repository shall be placed in an individual envelope. A copy of the

holder inventory report shall be placed in the envelope. The envelope shall be

sealed and initialed on the reverse side by the two (2) holding company

employees who conducted the inventory. The name of the owner of the box, date,

and holder name shall be printed on the reverse side of the envelope.

Transparent sealing tape (of the strong bonding type) shall be placed over the

flap of the envelope. A second copy of the holder inventory report shall be

attached to the front of the envelope.

      (3) The holder shall mail a copy of the report(s)

and notify the department of pending delivery of property.

      (4) The holder shall be responsible for the secured

delivery of the contents of each safe deposit box or other safekeeping

repository to the department. The department may take direct delivery from the

holder at the holder's place of business or residence.

 

      Section 2. Upon receipt of the contents of the safe

deposit box(es) or other safekeeping repository(ies), along with the inventory

report(s), the department shall immediately conduct an inventory of property

delivered, verify holder report(s), and secure property in the department

vault.

      (1) The inventory shall be conducted by two (2)

department employees with appropriate supervision.

      (2) The contents of each envelope will be separated

into the following groups:

      (a) TNG - jewelry with gemstones, watches and other

valuables;

      (b) MNY - coins and paper money (foreign &

domestic) which have numismatic value;

      (c) STK - stock certificates;

      (d) BND - U.S. Savings Bonds;

      (e) INS - insurance policies;

      (f) CSH - Coins and paper money which do not have

numismatic value;

      (g) DST - items of no value; and

      (h) OTH - military discharge, birth certificate;

photos, etc.

      (3) Each item shall be assigned an identification

or serial number. A property tag shall be prepared for each group with an

assigned owner identification or serial number, name of owner, and Social

Security number if available. The groups of tangible property will be placed in

individually secured plastic bags. The groups of intangible property shall

placed into folders.

      (4) A detailed department inventory statement shall

be completed for each safety deposit box or safekeeping repository envelope

received. Each statement shall include the following information:

      (a) The name and last known address of the

owner(s);

      (b) The name and address of holder reporting the

property;

      (c) Date of delivery and holder inventory;

      (d) Date of holder inventory;

      (e) Number or identifying description of the safe

deposit box or safekeeping repository;

      (f) Date of department inventory;

      (g) A detailed list describing each item therein,

separated into groups as stated in subsection (2) of this section;

      (h) The assigned holder identification or serial

number;

      (i) The assigned owner identification or serial

number; and

      (j) An official note signed by department

employees, who conducted the inventory, verifying accuracy of holder report.

The note shall be signed for approval by a supervisor.

      (5) Property shall be secured in the department

vault for safekeeping purposes. Tangible property shall be retained for a

period of three (3) years and then put to public auction, pursuant to KRS

Chapter 393, and proceeds, less costs, paid to the state. Intangible property

shall be retained for a period of one (1) year, then liquidated and the

proceeds, less costs, paid to the state. Owners of property shall be credited

for the amount received through liquidation or auction.

      (a) Coins and paper money not of numismatic value

shall be deposited for the state immediately and a copy of the pay-in voucher

placed in owner's file;

      (b) Miscellaneous papers or property of no value

shall be retained for a period of three (3) years and, then, destroyed.

      (c) The Kentucky Historical Society shall be

contacted for determination of items of historical value. Papers or property

determined to have historical value shall be retained and may be loaned to the

society.

      (6) The department shall maintain an accurate

inventory and essential information through entry into the computer.

      (7) The department shall direct that two (2)

employees be present at all times when handling property. Security of property

in the vault shall be maintained by the following procedure:

      (a) Two (2) employees shall receive written

authorization from a supervisor prior to entry to the vault; and

      (b) The employees shall state in writing the

purpose, property to be handled, the time and date. (21 Ky.R. 685; Am. 1282;

eff. 10-12-94.)