Current through Register Vol. 50, No. 9, March 1, 2024
RELATES TO: KRS 393.010, 393.020, 393.050, 393.060, 393.062,
393.064, 393.090, 393.110, 393.120
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.