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
(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
(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
(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
(g) DST - items of no value; and
(h) OTH - military discharge, birth certificate;
(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
(b) The name and address of holder reporting the
(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
(i) The assigned owner identification or serial
(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
(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;