Title 20 KAR — Department of Treasury

Chapter 1 State Treasury

20 KAR 1:010 Access to public records of State Treasury {#sec-20-kar-1-010 omnilex-key=us-ky-regs-official--title-20--20 KAR 1:010}

Section 1. The principal office location for the State Treasury is 1050 US Hwy 127 South, Suite 100, Frankfort, Kentucky 40601. Regular office hours are 8 a.m. to 4:30 p.m., Monday through Friday, prevailing time in Frankfort, Kentucky.

Section 2. The title of the official custodian of the records of the State Treasury is the State Treasurer of the Commonwealth of Kentucky, whose address is Capitol Annex, Frankfort, Kentucky 40601.

Section 3. Fees to be charged for copies of public records shall be ten (10) cents for each photocopy.

Section 4. The procedure to be followed in requesting inspection of public records shall be as follows:

(1) Requests for inspection of public records shall be made directly to the State Treasurer or to the designee;

(2) Requests to inspect public records shall be made in writing, describing in reasonably sufficient detail the records to be inspected. Inspection may be denied if the request is unreasonably burdensome or vague pursuant to KRS 61.822(6). Social Security, bank account, credit card, insurance policy, bond and stock certificate numbers shall not be available for inspection;

(3) Records shall be inspected and copied in the presence of a member of the State Treasury to protect the records from damage or disorganization, to lessen disruption of office procedure, to provide timely assistance and information upon request to the person requesting inspection, and to provide full access to public records;

(4) Suitable facilities shall be made available for inspection of public records.

Section 5. A copy of KRS 61.870 to 61.884 and this administrative regulation shall be displayed in the main reception room of the State Treasury 1050 US Hwy 127 South, Suite 100, Frankfort, Kentucky 40601.

History

• RELATES TO: KRS 61.870-61.884
• STATUTORY AUTHORITY: KRS 61.876
• NECESSITY, FUNCTION, AND CONFORMITY: KRS 61.876 requires that each public agency shall adopt rules and administrative regulations to provide full access to public records, to protect public records from damage and disorganization, to prevent excess disruption of its essential functions, to provide assistance and information upon request and to ensure efficient and timely action in response to application for inspection of public records. This administrative regulation proposes to fulfill this statutory requirement.
• History: 020 KAR 001:010. 12 Ky.R. 1193; eff. 2-4-1986; 21 Ky.R. 61; 911; eff. 9-12-1994; TAm eff. 8-14-2018; Crt eff. 6-12-2019; Crt eff. 5-20-2026.

20 KAR 1:020 Unclaimed property; definitions; location of owners {#sec-20-kar-1-020 omnilex-key=us-ky-regs-official--title-20--20 KAR 1:020}

Section 1. The department shall make reasonable efforts to locate the owners of unclaimed property reported to the department such as:

(1) Contracted services with established firms, credit bureaus, telephone networking companies;

(2) Intergovernmental agency agreements;

(3) Use of computerized information on telephone lists, directories, voter information, or other available data;

(4) Civic or professional meetings or gatherings; or

(5) Public media and printed material.

History

• RELATES TO: KRS 393.280(2)
• STATUTORY AUTHORITY: KRS 393.280
• NECESSITY, FUNCTION, AND CONFORMITY: This administrative regulation sets out definitions for this and all administrative regulations relating to KRS Chapter 393, and establishes a policy to locate owners of unclaimed property.
• History: 21 Ky.R. 681; 1280; eff. 10-12-1994; Crt eff. 6-12-2019; Crt to Am 4-15-2026; Am due 10-15-2027.

20 KAR 1:030 Unclaimed property; escheating {#sec-20-kar-1-030 omnilex-key=us-ky-regs-official--title-20--20 KAR 1:030}

Section 1. If the rightful owner of unclaimed property claims his property between July 1 and August 1, the holder shall not report such property because the presumption of abandonment as of July 1 no longer exists.

Section 2. If the rightful owner or legal claimant of property reported as presumed abandoned establishes his claim between August 1 and January 1, the holder shall certify by sworn statement to the department the specific items which have been returned to the rightful owner or legal claimant and, therefore, are not subject to escheat.

History

• RELATES TO: KRS 393.090, 393.110
• STATUTORY AUTHORITY: KRS 393.280
• NECESSITY, FUNCTION, AND CONFORMITY: This administrative regulation sets out the time when unclaimed property may be claimed by the rightful owner prior to escheating to the department. It also requires the holder to furnish the department a list setting out specific items that have been returned to the rightful owner.
• History: 21 Ky.R. 682; 1280; eff. 10-12-1994; Crt eff. 6-12-2019; Crt to Am 4-15-2026; Am due 10-15-2027.

20 KAR 1:040 Unclaimed properties; claims {#sec-20-kar-1-040 omnilex-key=us-ky-regs-official--title-20--20 KAR 1:040}

Section 1. Entities to Whom Claims Shall Be Filed.

(1) A claim for unclaimed property held in an interest-bearing demand, savings or time deposit held in an account assignable to the Department of the Treasury under KRS 393.130(5) shall be filed in writing with the holder of the unclaimed property.

(2) A monetary claim for unclaimed property not held in an interest-bearing demand, savings or time deposit account shall be filed in writing with either the Department of the Treasury or the holder who remitted the unclaimed property to the Department of the Treasury.

(3) All other claims for unclaimed property shall be made in writing and filed with the department.

Section 2. Proof.

(1) Upon receipt of a claim for unclaimed property which has been transferred to the department by the apparent owner or a holder seeking to recover money paid to an apparent owner, the Department of the Treasury shall determine whether or not there is sufficient proof that the claimant is entitled to the claimed property.

(2) Documentation to prove ownership may consist of one (1) of the following:

(a) Driver's license or other government-provided picture identification;

(b) A document proving Social Security number;

(c) Copy of birth certificate;

(d) If the owner of the property is deceased, a copy of death certificate and one (1) of the following:

1. Copy of probate distribution;

2. Copy of an order of the court appointing an administrator to an estate;

3. A copy of an order from the court dispensing with administration; or

4. A small estate affidavit;

(e) Copy of marriage certificate;

(f) Copy of divorce decree;

(g) A signature verification card of a financial institution; or

(h) Copy of guardianship or trust agreement.

(3) If the claimant documents that the items required by subsection (2) of this section are not available or not applicable, the claimant may submit for consideration use other documentation in support of the claim including the following:

(a) An income tax return;

(b) Adoption records;

(c) Court records;

(d) A certificate of deposit;

(e) Stale dated checks;

(f) Public or business records;

(g) Copy of documentation providing a connection with the reported address or business for the year cited as the "Date of Last Transaction" in the holder's report;

(h) Newspaper articles including a marriage announcement, birth or obituary notice;

(i) Family or church records;

(j) Personal correspondence; or

(k) A notarized affidavit executed by an individual other than the claimant having knowledge of a claim.

(4) In addition to the items required by subsection (2) of this section, additional evidence which may be considered by the Department of the Treasury to establish ownership for property valuing over $400 shall include:

(a) For a checking account:

1. A check showing the account number for that bank; or

2. A statement on that account which contains the account number;

(b) For a savings account:

1. A copy of the passbook showing the account number; or

2. Correspondence referencing the account number;

(c) For a safe deposit box:

1. A copy of the safe deposit box rental receipt; or

2. Correspondence referencing that rental;

(d) For wages, a copy of:

1. A W-2 form;

2. Tax records;

3. Pay stub; or

4. Correspondence relating to that employment;

(e) For stocks or dividends:

1. A copy of a stock certificate of the business entity reported;

2. Correspondence relating to the stock certificate; or

3. A statement from the broker showing ownership of that stock;

(f) For a bearer bond:

1. If the Department of the Treasury holds the original bond, a copy of the bond or information that establishes the claimant's relationship to the bonds; or

2. If the Department of the Treasury held the original bond but sold the bond pursuant to statute, the claimant shall use evidence which establishes ownership of the bond, including:

a. A copy of the bond; or

b. A list of serial numbers and a relationship to the holder;

(g) For a certificate of deposit:

1. A copy of the certificate of deposit; or

2. A record of purchase;

(h) For insurance:

1. A copy of the policy; or

2. Correspondence relating to that policy;

(i) For court funds, a copy of the court decree or court order for the case that was the source of the funds, including but not limited to:

1. Probate;

2. Condemnation;

3. Quiet title;

4. Divorce;

5. Child support; or

6. Appearance bond;

(j) For vendor checks:

1. A copy of accounts receivable billing, or invoices;

2. Bills of lading;

3. Correspondence with the holder reporting and remitting the funds that show a business relationship for each payment; or

4. A statement that the funds are still considered to be due and owing on the account;

(k) For a claim by an heir of a listed owner:

1. Final decree of probate; or

2. If the estate is intestate:

a. An order of the court dispensing with administration; or

b. A court order appointing an administrator to the estate and a letter from the administrator of the estate allowing the release of the property from the estate;

(l) For cashier's checks, the payee shall tender proof of identity as the owner, unless the purchaser submits sufficient documentation to prove a superior claim; or

(m) For a claim where ownership cannot be established by proof as required by paragraphs (a) through (l) of this subsection, the Department of the Treasury may accept alternative proof to establish ownership.

(5)

(a) A claim by a finder or agent of a listed owner shall be based on a notarized contract with the owner or heir of the owner. The Department of the Treasury may contact the owner or claimant to verify that the owner or the claimant is aware of the full amount of unclaimed property involved.

(b) The finder or agent shall provide to the Department of the Treasury:

1. A notarized copy of the contract showing names, current addresses, and Social Security numbers or Federal Employer Identification numbers of all parties to the contract;

2. A notarized affidavit from the claimant stipulating that the finder or agent has explained to the claimant the law on unclaimed properties and that unclaimed property due the claimant may be claimed without a fee, free and simple; and

3. The same documentation that the claimant of the unclaimed property would otherwise have to exhibit in order to show proper proof of entitlement to the unclaimed property.

(6)

(a) Payment of claims valued at $4,999.99 and below shall be authorized upon review of documentation submitted by the claimant and approval by two (2) Treasurer-designated Department of the Treasury employees.

(b) Payment of claims valued above $4,999.99 shall be authorized upon review of documentation submitted by claimant and approval by three (3) Treasurer-designated Department of the Treasury employees.

(c) Payment shall be made:

1. In the name of, and mailed to, the established owner; or

2. To the executor, executrix, administrator, administratrix of the estate or personal representative; the court appointed guardian; or to an heir for distribution to other heirs, if any.

Section 3. Stock Certificates. A stock certificate received through a safe deposit box or directly from a holder shall be released to the rightful owner by one (1) of the following methods:

(1) Stock certificate in the owner's name;

(2) Stock certificate in the name of the Department of the Treasury with an affidavit ready for transfer to the owner;

(3) Payment of money received for the certificate if the stock has been redeemed by the issuer or has been sold in accordance with state law; or

(4) If the stock certificate is obsolete and in the original owner's name, the stock certificate shall be transferred directly to the owner. If the original owner is deceased, the lawful heirs shall determine disposition.

Section 4. Duty of Holder Who Receives Claim.

(1) If a claim for unclaimed property is made to a holder, the holder may direct the claimant to the Department of the Treasury for review and payment of the claim.

(2) If the holder chooses to consider the claim for payment, the holder shall, prior to paying the claim, inquire in writing to the Department of the Treasury to determine whether there have been any other competing claims for that property.

(3) The Department of the Treasury shall respond to the holder in writing within ten (10) business days of receipt of the inquiry indicating whether another claim has been paid out for the property at issue or whether there is a competing claim pending. If there is a competing claim or if another claim has been paid out for the property at issue, the Department of the Treasury shall notify:

(a) The holder and the holder shall not pay the claimant; and

(b) The claimant in writing of his right to request a hearing on his claim.

Section 5. Payment of Claim.

(1) If a claimant submits a claim for unclaimed property to a holder, and the holder determines that the claimant is entitled to the property and that there have been no other competing claims paid out of the same property, the holder may pay the claimant.

(2) If the property was not held in an interest-bearing demand, savings or time deposit account, and if the property has already been turned over to the Department of the Treasury, the holder shall be reimbursed by the Department of the Treasury for a claim paid if the holder submits:

(a) Written confirmation from the Department of the Treasury that the Department of the Treasury was contacted prior to the payment of the claim to determine if there were any conflicting claims or if there were any prior paid claims on the property;

(b) An affidavit which identifies the proof used to determine that the claimant was entitled to the property. The proof shall meet the requirements established in Section 2 of this administrative regulation. A copy of the proof relied on shall be attached to the affidavit; and

(c) Proof that payment was made to the claimant.

History

• RELATES TO: KRS 393.010, 393.040, 393.110, 393.130, 393.140, 393.150
• STATUTORY AUTHORITY: KRS 393.280(4)
• NECESSITY, FUNCTION, AND CONFORMITY: KRS 393.280(4) allows the State Treasurer to promulgate administrative regulations and any reasonable and necessary rules for the enforcement of KRS Chapter 393. KRS 393.130 allows the holder of unclaimed property or the Division of Unclaimed Property, Kentucky Department of Treasury, to turn that property over to a claimant upon proper proof. This administrative regulation establishes requirements for claims for unclaimed property.
• History: 21 Ky.R. 682; 1280; eff. 10-12-1994; 26 Ky.R. 409; 790; 987; eff. 11-15-1999; 30 Ky.R. 1580; 2012; eff. 3-18-2004; Crt eff. 6-12-2019; Crt to Am 4-15-2026; Am due 10-15-2027.

20 KAR 1:050 Unclaimed property; examination of holder records {#sec-20-kar-1-050 omnilex-key=us-ky-regs-official--title-20--20 KAR 1:050}

Section 1. If any holder fails to make a full and complete report of property as required by KRS Chapter 393, the department, after giving notice as provided in subsection (1) of this section, may examine the records and other accounts of the holder.

(1) The department shall notify the holder in writing ten (10) days prior to an examination. However, if the department determines that the existence of the records may be placed in jeopardy unless action is taken forthwith, the department may examine all records immediately without any prior notice.

(2) The examination may include:

(a) Records of current accounts, dormant accounts, and accounts that may have been closed and archived;

(b) Verification of contractual agreements between depositors and the final organization regarding the deduction of service charges, account increases or decreases, and the cessation of interest payments; and

(c) In addition to the examination of unclaimed accounts and contractual agreements, the examiner may review the holder's annual procedures for reviewing dormant accounts.

(3) The department shall have reason to believe that a holder has failed to comply with the reporting requirements of KRS Chapter 393 and may examine the records of the holder if one (1) of the following conditions exist:

(a) A holder has not submitted a report to the department;

(b) A holder has submitted reports to the department in which the holder's report states it has no unclaimed property;

(c) A holder fails to report types of unclaimed property normally reported by like businesses or associations;

(d) When amounts on the holder's report or amounts remitted from the holder are not comparable to reports received from like holders; and

(e) When information is provided by other governmental agencies or reliable sources that a holder may be holding unclaimed property that has not been reported.

(4) At the completion of an examination a statement of examination findings and proposed adjustments shall be delivered to the holder. The statement shall be delivered by the department by hand or by certified mail. The statement shall contain sufficient information to make the holder aware of his reporting obligations and legal options.

(5) The holder shall have thirty (30) days in which to review the examination findings and proposed adjustments to the findings. No later than thirty (30) days of the date of the statement, the holder shall cause to be generated an amended annual report. If the holder disagrees on the facts, he shall file an official written protest within the thirty (30) day period or the amount as set out by the statement will become absolute and final and be immediately due and payable. The protest shall be filed with the department and shall set out a clear and concise assignment of any error alleged to have been committed by the department in its examination or its statement. The holder may request an administrative hearing in its protest.

History

• RELATES TO: KRS 393.010, 393.110, 393.160, 393.280
• STATUTORY AUTHORITY: KRS 393.280
• NECESSITY, FUNCTION, AND CONFORMITY: This administrative regulation relates to the examination of holder records by the department if any holder fails to make a full and complete report of property as required by KRS Chapter 393.
• History: 21 Ky.R. 684; 1281; eff. 10-12-1994; Crt eff. 6-12-2019; Crt to Am 4-15-2026; Am due 10-15-2027.

20 KAR 1:060 Unclaimed property; safe deposit boxes or other safekeeping repositories {#sec-20-kar-1-060 omnilex-key=us-ky-regs-official--title-20--20 KAR 1:060}

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.

History

• 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.
• History: 21 Ky.R. 685; 1282; eff. 10-12-1994; Crt eff. 6-12-2019; Crt to Am 4-15-2026; Am due 10-15-2027.

20 KAR 1:070 Unclaimed property; administrative hearing, appeals process {#sec-20-kar-1-070 omnilex-key=us-ky-regs-official--title-20--20 KAR 1:070}

Section 1. A person adversely affected by a decision of a holder of unclaimed property regarding that property may request the department to review the holder's decision and make a determination regarding the claim.

Section 2. A claimant of unclaimed property whose claim is denied by the department may appeal the denial and request in writing an administrative hearing within thirty (30) days of the denial.

(1) Upon receipt of a written request for an administrative hearing, the department shall set the date, time, and place of the hearing and shall forthwith notify the person by regular U.S. mail.

(2) An administrative hearing conducted pursuant to this section shall be held in accordance with KRS Chapter 13B.

(3) Pursuant to KRS 393.160 any final order issued by the Treasurer may be appealed to the Franklin Circuit Court within sixty (60) days after issuance.

History

• RELATES TO: KRS Chapter 13B, 393.010, 393.160
• STATUTORY AUTHORITY: KRS 393.280(4)
• NECESSITY, FUNCTION, AND CONFORMITY: KRS 393.280(4) authorizes the State Treasurer to promulgate administrative regulations necessary to implement KRS Chapter 393. This administrative regulation establishes the appeals and administrative hearings process when a decision regarding unclaimed property adversely affects a person.
• History: 21 Ky.R. 686; 1283; eff. 10-12-1994; 26 Ky.R. 411; 989; eff. 11-15-1999; Crt eff. 6-12-2019; Crt to Am 4-15-2026; Am due 10-27-2027.

20 KAR 1:080 Reports to be filed by holders of unclaimed property {#sec-20-kar-1-080 omnilex-key=us-ky-regs-official--title-20--20 KAR 1:080}

Section 1. Reports Filed by a Holder of Unclaimed Property. A holder of unclaimed property shall annually file, in accordance with KRS 393.110, a completed, Unclaimed Property Report/Remit Form with the Department of the Treasury no later than the close of business on November 1 of each year.

(1) A holder of property presumed abandoned shall make an annual report to the Department of the Treasury concerning the property. The annual report shall cover the twelve (12) months ending on June 30 of that year. Holders are required to submit their report by diskette or compact disc in the format required by the department for ten (10) or more properties. All property so reported shall be turned over simultaneously with the report by November 1 to the Department of the Treasury. This reporting requirement applies to all properties, with the exception of travelers' checks and money orders, and shall be verified and shall include:

(a) The name, if known, and last known address, if any, of each person appearing from the records of the holder to be the owner of any property of value of $100 or more presumed abandoned under this chapter and in the case of unclaimed funds of life insurance corporations, the full name of the insured or annuitant and his or her last known address according to the records of the life insurance corporation;

(b) Identifying data of the property owner, including, Social Security number, date of birth, policy number, check number, name, and address of listed beneficiaries, etc.;

(c) Description of the property, including, physical description, property type codes, and the amount appearing from the records to be due, except items of value of $100 or less. The items of value of $100 or less may be reported in aggregate.

(d) The date when the property became payable, demandable, or returnable, and the date of the last known transaction with the owner with respect to the property if readily available.

(2) If the fair cash value of the property is more than $100, the holder of property presumed abandoned shall send written notice to the apparent owner, not more than 120 days or less than sixty (60) days before filing the report, stating that the holder is in possession of the property subject to this section. The holder shall not be required to mail a notice to any apparent owner where the fair cash value of the property is $100 or less. The notice shall contain:

(a) The statement to the owner that properties are being held to which the addressee appears entitled;

(b) The name and address of the person holding the property and any necessary information regarding a change of name and address of the holder; and

(c) A statement, that if satisfactory proof of claim is not presented by the owner to the holder by the date specified, the property shall be placed in the custody of the department to whom all further claims shall be directed.

(3)

(a) A person shall turn over to the department all property reportable as required by KRS Chapter 393 and this administrative regulation to the department by November 1, unless:

1. The person making the report or the owner of the property shall certify to the department that any or all of the statutory conditions necessary to create a presumption of abandonment no longer exists or never did exist; or

2. The person is able to provide documentation of facts or circumstances that will rebut the presumption of abandonment;

(b) If either of these conditions are met, then the person reporting or holding the property shall not be required to turn the property over to the department except on order of court.

(4) The holder of abandoned property shall maintain its records for a period of five (5) years from the date of its report for items reported in the aggregate.

(5) If the owner of the property reported in the aggregate makes a valid claim within five (5) years, the holder shall provide the owner with account data necessary for the department to identify the account from the aggregate amount.

(6) The annual reports shall be retained by the department for a period of five (5) years.

(7)

(a) The department shall notify all apparent owners of the unclaimed property in accordance with this section by means of posting on the department's Web site.

(b) The department may use any of the following to provide additional notice to the apparent owners:

1. Publication in a newspaper of general circulation:

a. In the area of the state in which the last known address of a person to be named in the notice is located; or

b. If the address is unknown, in the area in which the holder has its principal place of business in the state; or

2. Individual contact by regular or electronic mail, or by telephone, if the department has current contact information on file;

(c) shall, notwithstanding KRS 424.180 and 424.190, provide, on an annual basis, notice or published advertisement of property transferred to it. Any procedures prescribed by the department in accordance with this section shall employ the most cost-effective methods available for the submission of reports to the department and the notice or advertisement of property transferred to the department. The cost of the publication shall be paid by the state.

(d) The advertisement shall be published as required on or before October 1 following the year when the report was received, and the publishing shall be paid constructive notice to all parties.

(8) If a person files an action in court claiming any property which has been reported, or is to be reported, under the provisions of this chapter, the person reporting or holding the property shall be under no duty, while the action is pending, to turn the property over to the department, but shall have a duty of notifying the department of the pendency of the action.

(9) The person reporting or holding the property or any claimant of it shall always have the right to a judicial determination of his or her rights under this chapter, and nothing in this chapter shall be construed otherwise. The Commonwealth may institute an action to recover the property presumed abandoned, whether it has been reported or not, and may include in one (1) petition all property within the jurisdiction of the court in which the action is brought, if the property of different persons is set out in separate paragraphs.

Section 2. Reports on Property Held in an Interest Bearing Account. If the holder of unclaimed property is required to place that property in an interest bearing account, pursuant to KRS 393.130, the holder shall submit to the Department of the Treasury the following reports: A statement on the interest-bearing account holding unclaimed property. The statement shall:

(1) Be the kind normally issued on an interest-bearing account;

(2) Be filed with the Department of the Treasury on an annual basis according to the holder's normal course of business; and

(3) Include the value of the unclaimed property and the amount of the interest paid on the account.

Section 3. Reports on an Amount Paid Out of an Account Holding Unclaimed Property.

(1) A holder of an account holding unclaimed property shall file a report within ten (10) business days of paying an amount out of the account.

(2) The report shall include:

(a) The name, Social Security number, and the address of the property owner;

(b) The amount paid;

(c) The portion of the amount that represents interest paid and the portion that represents the original amount of unclaimed property;

(d) The date the property was presumed abandoned;

(e) Proof of payment;

(f) An itemization of each fee or expense charged against the account; and

(g) An affidavit indicating:

1. What specific proof was used in determining that the person that received the amount or payment was the rightful claimant; and

2. That the procedures for paying a claim for unclaimed property as established in 20 KAR 1:040 were followed.

(3) The report shall be filed at the Department of the Treasury.

Section 4. Incorporation by Reference.

(1) "Unclaimed Property Report/Remit Form", 2006 edition, is incorporated by reference.

(2) This material may be inspected, copied, or obtained, subject to applicable copyright law, at the Department of the Treasury, 1050 U.S. Hwy. 127 South, Suite 100, Frankfort, Kentucky 40601, Monday through Friday, 8 a.m. to 4:00 p.m.

History

• RELATES TO: KRS 393.110(1), 393.130
• STATUTORY AUTHORITY: KRS 393.280(4)
• NECESSITY, FUNCTION, AND CONFORMITY: KRS 393.280(4) allows the State Treasurer to promulgate administrative regulations and any reasonable and necessary rules for the enforcement of KRS Chapter 393. KRS 393.110(1) requires the holder of unclaimed property to submit annual reports to the Department of the Treasury concerning the property. This administrative regulation establishes the reporting requirements for a holder of unclaimed property.
• History: 26 Ky.R. 491; 989; eff. 11-15-1999; 30 Ky.R. 1582; 2014; eff. 3-18-2004; 33 Ky.R. 190; 718; eff. 10-6-2006; Crt eff. 6-12-2019; Crt to Am 4-15-2026; Am due 10-15-2027.

20 KAR 1:090 Accounts for unclaimed property that was held in an interest-bearing demand, savings or time deposit {#sec-20-kar-1-090 omnilex-key=us-ky-regs-official--title-20--20 KAR 1:090}

Section 1. When an interest-bearing account made assignable to the Department of Treasury is established in accordance with KRS 393.130(5), a record of the year the property was presumed abandoned shall be included.

Section 2. The account created under KRS 393.130(5) shall yield a rate of interest equal to contract rate for the predecessor account. Interest accruing to the account shall be calculated by the financial institution and reported to the Department of the Treasury on or before November 1 of the next year.

Section 3. Accounts created under KRS 393.130 shall remit to the Department of the Treasury in accordance with KRS 393.130(5). All accumulated interest shall remit with the account, and the account shall not be reduced by fees or charges assessed by the holder from and after the date the property was presumed abandoned.

History

• RELATES TO: KRS 393.110, 393.130(5)
• STATUTORY AUTHORITY: KRS 393.280(4)
• NECESSITY, FUNCTION, AND CONFORMITY: KRS 393.280(4) allows the State Treasurer to promulgate administrative regulations and any reasonable and necessary rules for the enforcement of KRS Chapter 393. KRS 393.130 mandates that the holder of unclaimed property that is held in an interest-bearing demand, savings, or time deposit account, shall place that property in an interest-bearing account assignable to the Department of the Treasury. This administrative regulation governs those accounts.
• History: 28 Ky.R. 994; 1344; eff. 12-19-2001; 30 Ky.R. 1583; 2015; eff. 3-18-2004; Crt eff. 6-12-2019; Crt to Am 4-15-2026; Am due 10-15-2027.