NAC: CHAPTER 120A - DISPOSITION OF UNCLAIMED PROPERTY

[Rev. 11/21/2013 3:51:56 PM--2013]

[NAC-120A Revised Date: 7-13]

CHAPTER 120A - DISPOSITION OF UNCLAIMED PROPERTY

GENERAL PROVISIONS

120A.003 Definitions.

120A.006 “Audit” defined.

120A.009 “Security” defined.

120A.015 “Fails to report” interpreted.

REPORTS OF UNCLAIMED PROPERTY

120A.020 Filing: Generally.

120A.025 Filing: Additional requirements if unclaimed property consists of a security.

120A.035 Filing: Requirements if no unclaimed property to report; extension of time to file.

120A.040 Additions to or deletions from reports.

120A.045 Alteration or correction of verified report or related form or other document.

120A.050 Contents of written notice required to be sent before filing of report to apparent owner of property presumed abandoned.

RECOVERY OF UNCLAIMED PROPERTY DELIVERED TO STATE

120A.060 Claims for property presumed abandoned: Filing; effect of denial by Administrator; agreements concerning recovery of property.

MISCELLANEOUS PROVISIONS

120A.065 Outstanding check or credit balance not included in report of unclaimed property: Identification by Administrator; rebuttal of presumption of abandonment.

120A.070 Safety deposit boxes: Presumption of abandonment; sealing and opening.

120A.080 Safety deposit boxes: List of contents; remittance of contents.

120A.090 Owner’s indication of interest in deposit which is automatically renewable.

120A.100 Inclusion of social security numbers in claims and reports.

120A.110 Payment or delivery of abandoned property to Administrator.

120A.120 Waiver of penalties and interest.

GENERAL PROVISIONS

NAC 120A.003 Definitions. (NRS 120A.140) As used in this chapter, unless the context otherwise requires, the words and terms defined in NAC 120A.006 and 120A.009 have the meanings ascribed to them in those sections.

(Added to NAC by Admin. of Unclaimed Property by R162-09, eff. 8-13-2010)

NAC 120A.006 “Audit” defined. (NRS 120A.140) “Audit” means the examination of the records of a person conducted pursuant to NRS 120A.690 to determine whether the person has complied with chapter 120A of NRS.

(Added to NAC by Admin. of Unclaimed Property by R162-09, eff. 8-13-2010)

NAC 120A.009 “Security” defined. (NRS 120A.140) “Security” means a stock, bond or mutual fund.

(Added to NAC by Admin. of Unclaimed Property by R162-09, eff. 8-13-2010)

NAC 120A.015 “Fails to report” interpreted. (NRS 120A.140, 120A.730) The Administrator interprets the phrase “fails to report,” as used in NRS 120A.730, to include, without limitation, the filing of a report that is:

1. Incomplete; or

2. Does not comply with the reporting requirements of this chapter and chapter 120A of NRS.

(Added to NAC by Admin. of Unclaimed Property by R162-09, eff. 8-13-2010)

REPORTS OF UNCLAIMED PROPERTY

NAC 120A.020 Filing: Generally. (NRS 120A.140, 120A.560)

1. A holder that is required to make a report to the Administrator pursuant to NRS 120A.560 shall file Form UP-1, Report of Unclaimed Property, including a completed verification. Except as otherwise provided in this section, the report may be filed:

(a) Using Form UP-1;

(b) Using a computer printout that contains the same information as requested on Form UP-1; or

2. A Form UP-2, Report of Unclaimed Property Details, must accompany each report filed pursuant to subsection 1 and, except as otherwise provided in this section, may be filed:

(a) Using Form UP-2;

(b) Using a computer printout that contains the same information as requested on Form UP-2; or

(c) Electronically using the NAUPA standard electronic file format for holders. If any property included in the report filed pursuant to this paragraph consists of a security, the holder shall complete and file Form UP-2 as described in paragraph (a) in addition to the electronic filing.

3. A person reporting 11 or more items of property shall file the report electronically using the NAUPA standard electronic file format for holders.

4. The total amount of each kind of property reported on Form UP-1 must be equal to the sum of the amounts of that kind of property reported on the associated Form UP-2.

5. As used in this section, “NAUPA” means the National Association of Unclaimed Property Administrators.

[Dep’t of Commerce, Unclaimed Property Reg. § 2, eff. 8-6-80]—(NAC A by Admin. of Unclaimed Property by R119-06, 6-28-2006; R162-09, 8-13-2010)

NAC 120A.025 Filing: Additional requirements if unclaimed property consists of a security. (NRS 120A.140, 120A.560) A holder of unclaimed property that consists of a security shall, in addition to complying with NAC 120A.020:

1. File with the report of unclaimed property a summary that includes the name, identification number and, if applicable, the total number of shares of each security included in the report.

2. If the holder has sold a security, file with the report of unclaimed property a statement that includes the name, identification number and, if applicable, the total number of shares of the security.

3. If a security is undeliverable, file with the report of unclaimed property a statement that includes the name, identification number and, if applicable, the total number of shares of the security.

4. Identify certificated securities separately from uncertificated securities in Form UP-2, Report of Unclaimed Property Detail.

5. If the security is a certificated security and the name of the issuer or the number of shares stated on the certificate delivered to the Administrator is different than the name or number of shares stated on a certificate previously issued to the owner of the security, include in the report of unclaimed property the name of the issuer and the number of shares stated on the previous certificate.

6. If the security has a market value of zero, omit the security from the report of unclaimed property. A security that is omitted from a report of unclaimed property pursuant to this subsection must be included in a subsequent report of unclaimed property that is filed at a time that the security has a market value greater than zero.

(Added to NAC by Admin. of Unclaimed Property by R162-09, eff. 8-13-2010)

NAC 120A.035 Filing: Requirements if no unclaimed property to report; extension of time to file. (NRS 120A.140, 120A.690)

1. A holder that is incorporated or located in this State or that conducts business in this State and determines that it is not in possession of property that must be reported, paid or delivered under chapter 120A of NRS shall file a report with the Administrator certifying that the holder has no unclaimed property to report.

2. The report must be:

(a) In the form prescribed by the Administrator;

(b) Verified; and

(c) Except as otherwise provided in this section, filed with the Administrator before November 1 of each year and cover the 12 months next preceding July 1 of that year, but a report with respect to an insurance company must be filed before May 1 of each year for the calendar year next preceding.

3. Before the date for filing the report, the holder may request the Administrator to extend the time for filing the report. The Administrator may grant the extension for good cause.

(Added to NAC by Admin. of Unclaimed Property by R162-09, eff. 8-13-2010)

NAC 120A.040 Additions to or deletions from reports. (NRS 120A.140, 120A.560) A holder must report any additions or deletions since his or her filing of Forms UP-1 and UP-2. Any such additions or deletions must be listed on Form UP-4, Request for Holder Reimbursement, or be filed on a computer printout that contains the same information as requested on Form UP-4.

[Dep’t of Commerce, Unclaimed Property Reg. § 6, eff. 8-6-80]—(NAC A by Admin. of Unclaimed Property by R119-06, 6-28-2006)

NAC 120A.045 Alteration or correction of verified report or related form or other document. (NRS 120A.140, 120A.560) If a report, form or other document that is required to be verified and filed with the Administrator pursuant to this chapter or chapter 120A of NRS is altered or corrected after it has been verified, the person who verified the document must initial and date the alteration or correction.

(Added to NAC by Admin. of Unclaimed Property by R162-09, eff. 8-13-2010)

NAC 120A.050 Contents of written notice required to be sent before filing of report to apparent owner of property presumed abandoned. (NRS 120A.140, 120A.560) A holder that is required, pursuant to NRS 120A.560, to send written notice to an apparent owner shall mail the notice to the apparent owner’s last known address in the holder’s records. The notice must include:

1. The apparent owner’s name;

2. The apparent owner’s last known address;

3. The type of account or other property;

4. If an account, a partial account number or other information sufficient to identify the account;

5. The amount; and

6. A statement that the property will be turned over to the State for custody if the apparent owner does not claim the property within the period set forth in the notice.

[Dep’t of Commerce, Unclaimed Property Reg. § 5, eff. 8-6-80]—(NAC A by Admin. of Unclaimed Property by R162-09, 8-13-2010)

RECOVERY OF UNCLAIMED PROPERTY DELIVERED TO STATE

NAC 120A.060 Claims for property presumed abandoned: Filing; effect of denial by Administrator; agreements concerning recovery of property. (NRS 120A.140, 120A.640, 120A.740)

1. Any person claiming or interested in any property delivered to the State must file Form UP-5, Claim for Property Presumed Abandoned. Specific documents and supporting information, as determined for each case by the Administrator, must be filed with Form UP-5.

2. If the Administrator denies a claim for any reason, including, without limitation, that the claim remains incomplete for 90 days after it is filed, the claimant may file a new claim at any time using Form UP-5.

3. If a person claiming property delivered to the State is a party to an agreement with another person, including, without limitation, an attorney, the primary purpose of which is to locate, deliver, recover or assist in the recovery of the property, the Administrator will require the claimant to submit a copy of the agreement. If the claimant fails to submit the copy of the agreement, the Administrator will deny the claim. This subsection does not apply to an owner’s agreement with an attorney to file a claim as to identified property or contest the Administrator’s denial of a claim.

[Dep’t of Commerce, Unclaimed Property Reg. § 7, eff. 8-6-80]—(NAC A by Admin. of Unclaimed Property by R119-06, 6-28-2006; R162-09, 8-13-2010)

MISCELLANEOUS PROVISIONS

NAC 120A.065 Outstanding check or credit balance not included in report of unclaimed property: Identification by Administrator; rebuttal of presumption of abandonment. (NRS 120A.140, 120A.550, 120A.690)

1. If the Administrator identifies in the records of a holder an outstanding check or a credit balance that the holder has not included in a report filed pursuant to NRS 120A.560 and that the Administrator believes may be property presumed abandoned, the Administrator will accept as proof sufficient to rebut the presumption of abandonment written confirmation from the apparent owner of the property that complies with this section.

2. A holder may request the apparent owner to provide written confirmation concerning an outstanding check or a credit balance identified by the Administrator pursuant to subsection 1 by sending a request to the apparent owner. The request must be in the form prescribed by the Administrator and include, without limitation:

(a) A statement that the request is submitted as part of an ongoing examination of unclaimed property which has identified a check or credit balance that may be owed to the apparent owner;

(b) The amount of the check or credit balance;

(c) A request that the apparent owner review his or her records and return the request for confirmation to the holder with the results of the apparent owner’s review; and

(d) Blank spaces for the apparent owner to provide:

(1) The signature, name and title of the apparent owner or person who signs the confirmation on behalf of the apparent owner;

(2) The date on which the confirmation is signed; and

(3) The address and telephone number of the apparent owner or person who signs the confirmation on behalf of the apparent owner.

3. Except as otherwise provided in subsection 5, if the request for confirmation concerns an outstanding check, the holder and apparent owner must use Form UP-50, Outstanding Check Confirmation Letter. Using Form UP-50:

(a) The holder must provide information that identifies the check, including, without limitation:

(1) The check number;

(2) The amount of the check;

(3) The date of issuance of the check; and

(4) If applicable, the number and date of the holder’s invoice.

(b) The apparent owner must confirm that he or she has reviewed his or her records and indicate whether:

(1) The check is not owed to the apparent owner;

(2) The check was owed to the apparent owner and has been cashed; or

(3) The check is owed to the apparent owner and the holder should reissue the check to the apparent owner because:

(I) The check was received by the apparent owner and not cashed; or

(II) The check was not received by the apparent owner.

Ê If the apparent owner returns the confirmation requesting the reissuance of a check, the holder must provide evidence to the Administrator that the holder has reissued the check.

4. Except as otherwise provided in subsection 5, if the request for written confirmation concerns a credit balance, the holder and apparent owner must use Form UP-51, Credit Balance Confirmation Letter. Using Form UP-51:

(a) The holder must provide information that identifies the credit balance, including, without limitation, the date of each transaction that contributes to the credit balance.

(b) The apparent owner must confirm that he or she has reviewed his or her records and indicate whether:

(1) The credit balance is owed to the apparent owner;

(2) The credit balance is not owed to the apparent owner;

(3) The apparent owner has been unable to determine whether the credit balance is owed to him or her; or

(4) The credit balance was owed to the apparent owner, but has been settled through a settlement agreement with the holder. The apparent owner must include the date of the settlement.

5. A holder and an apparent owner are not required to comply with subsection 3 or 4, as applicable, if the holder and apparent owner:

(a) Are business entities; and

(b) Have engaged in at least one business transaction with each other in the 24-month period immediately preceding the date on which the holder requests the written confirmation from the apparent owner.

6. As used in this section, “check” includes a draft or similar instrument as described in NRS 120A.550. The term does not include a traveler’s check, money order or similar instrument.

(Added to NAC by Admin. of Unclaimed Property by R162-09, eff. 8-13-2010)

NAC 120A.070 Safety deposit boxes: Presumption of abandonment; sealing and opening. (NRS 120A.140) A safety deposit box that has no lease or rental fee and is provided to the owner as a condition of a specific amount being deposited with the banking or financial organization shall be presumed abandoned at the same time as the account for which it was provided. The safety deposit box must be sealed at the time of filing Forms UP-1 and UP-2 and be opened when remittance is due.

[Dep’t of Commerce, Unclaimed Property Reg. § 8, eff. 8-6-80]

NAC 120A.080 Safety deposit boxes: List of contents; remittance of contents. (NRS 120A.140, 120A.510)

1. The specific contents of safety deposit boxes must not be listed on Form UP-2 unless the list of contents required by NRS 663.085 is incomplete or unreadable. A copy of the list of contents required by NRS 663.085 must be attached to Form UP-2.

2. The contents of safety deposit boxes must be remitted at a time and place agreed upon by the holder and the Administrator.

3. Form UP-6, Safekeeping Inventory, must be completed at the time of the remittance.

[Dep’t of Commerce, Unclaimed Property Reg. § 4, eff. 8-6-80]—(NAC A by Admin. of Unclaimed Property by R119-06, 6-28-2006)

NAC 120A.090 Owner’s indication of interest in deposit which is automatically renewable. (NRS 120A.140, 120A.500)

1. If a demand, savings or matured time deposit or other certificate of deposit which is automatically renewable is held or owing by a banking or financial organization or by a business association, the owner thereof shall be deemed to have indicated an interest in the property or otherwise indicated consent to the renewal of his or her account for the purposes of subsection 3 of NRS 120A.500 if an employee of the organization or association:

(a) Prepares and sends or causes to be prepared and sent to the owner by first-class mail:

(1) A notice of maturity no later than 10 days before the date of renewal and the notice is not returned unclaimed or undelivered; or

(2) An annual statement of account which includes the amount of the deposit held or owing by the organization or association and the statement is not returned unclaimed or undelivered; and

(b) Files in the records of the organization or association an affidavit stating that the notice or statement was mailed pursuant to paragraph (a).

2. If such a notice of maturity or statement of account is returned unclaimed or undelivered, the banking or financial organization or business association shall, upon its return, exercise due diligence to locate the owner of the property. If the owner cannot be located, the property will then be presumed abandoned 3 years after the date of maturity or date of renewal as stated in the returned notice or statement.

(Added to NAC by Div. of Unclaimed Property, eff. 10-26-83; A by Admin. of Unclaimed Property by R162-09, 8-13-2010)

NAC 120A.100 Inclusion of social security numbers in claims and reports. (NRS 120A.140, 120A.560, 120A.640)

1. A person filing a claim pursuant to NRS 120A.640 must include his or her social security number in the manner prescribed by the Administrator for each claim.

2. In addition to the information required by NRS 120A.560, a holder shall include in a report to the Administrator the social security number, if known, of each person appearing from the records of the holder to be the owner of the money or other property described in the report.

(Added to NAC by Admin. of Unclaimed Property by R119-06, eff. 6-28-2006; A by R162-09, 8-13-2010)

NAC 120A.110 Payment or delivery of abandoned property to Administrator. (NRS 120A.140, 120A.570)

1. Unless specifically authorized by the Administrator, a holder shall pay or deliver abandoned property to the Administrator in a form other than cash.

2. In lieu of a check, a holder that makes a payment of money to the Administrator of $10,000 or more shall make the payment by means of an electronic transfer of money as required pursuant to NRS 353.1467.

(Added to NAC by Admin. of Unclaimed Property by R119-06, eff. 6-28-2006; A by R162-09, 8-13-2010)

NAC 120A.120 Waiver of penalties and interest. (NRS 120A.140, 120A.730)

1. A holder that is liable to the Administrator for the payment of penalties or interest, or both, pursuant to NRS 120A.730 and wishes to obtain a waiver of the penalties or interest, in whole or in part, must request such a waiver from the Administrator in the manner set forth in this section.

2. Except as otherwise provided in subsection 3, a holder must submit a written request for a waiver of penalties or interest, or both, in the form prescribed by the Administrator. The request must include, without limitation:

(a) The identification number assigned to the holder by the Administrator and the tax identification number of the holder; and

(b) A description of the facts and circumstances concerning the holder’s failure to comply with chapter 120A of NRS and, if applicable, evidence that the holder acted in good faith and without negligence.

3. A holder may request a waiver of penalties or interest, or both, using Form UP-49, Voluntary Disclosure Agreement, if:

(a) The holder has not:

(1) Previously submitted a report to the Administrator concerning unclaimed property as required by NRS 120A.560; and

(2) Been notified by the Administrator that the holder has been selected for an audit; or

(b) The Administrator determines that the holder’s special circumstances warrant the use of Form UP-49.

(Added to NAC by Admin. of Unclaimed Property by R162-09, eff. 8-13-2010)