Kentucky Administrative Regulations
Title 20 - DEPARTMENT OF TREASURY
Chapter 1 - State Treasury
Section 20 KAR 1:050 - Unclaimed property; examination of holder records
Universal Citation: 20 KY Admin Regs Service 1:050
Current through Register Vol. 50, No. 9, March 1, 2024
RELATES TO: KRS 393.010, 393.110, 393.160, 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.
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.
STATUTORY AUTHORITY: KRS 393.280
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