Indiana Passes Bill to Follow RUUPA

Danielle Herring
May 11, 2021

Enacted by signature of the Governor on April 29, 2021 and effective July 1, 2021. Due to the cut-off date for the fall cycle, and the lack of a “transitional provision,” this bill will not change holders’ obligations for reporting in 2021.

As previously highlighted, this RUUPA bill will replace the state’s existing law. The bill can be found here. The enacted version of this bill incorporates amendments made in February and March. As enacted, this bill tracks with RUUPA except for the following key differences:

• It is silent regarding gift cards and stored value cards, which is interpreted as a complete exemption of these instruments from unclaimed property reporting;

• It uses general language regarding the “age at which the IRS requires a minimum distribution from the account” in the tax-deferred retirement accounts provision in order to conform to the changes in federal tax law under the SECURE Act and any potential future changes.

• It sets the statutes of limitation, both generally and after filing of a non-fraudulent report, at 10 years.

• It allows for the sale of securities upon receipt, and requires the attorney general to deliver the securities or pay the owner the value of the security as of the date it was delivered to the attorney general only for so long as a security is in the possession of the attorney general. Thereafter, the attorney general is only required to deliver to the owner the net proceeds of its sale of the security.

• It has a business to business exemption for credit memorandums and credit balances.

• It expressly provides that the following constitute indications of interest by an apparent owner with respect to demand, savings or matured time deposit accounts in financial institutions:

o non-return of mail; and
o Any activity concerning another account or relationship that the apparent owner has with the financial institution.

The bill reduces dormancy on property held by courts from 5 years to 1 year. It increases the dormancy on tangible property held in a safe deposit box from 3 years to 5 years.

Due diligence requirements remain the same with the exception of the timeframe for letters to be sent. The old law set the timeframe as ‘from 120 days to 60 days’ before the report is due. The new law has the timeframe as ‘from 180 days to 60 days’ before the report is due. Email notification is included and the holder can either send the first class mailing or email communication.

Report due date for Insurance Companies is before May 1st of each year. Report due date for all other holders is before November 1st.

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Author

Danielle Herring

In her role as compliance manager for unclaimed property reporting, Danielle Herring oversees support of the product, researches changes in state unclaimed property laws so the system is updated to comply with them, and tests changes to the system before they are released. Danielle also completes some report and letter processing for current clients, assists with their direct support, provides customer training, and helps with troubleshooting and questions about using the product. Outside of work, Danielle loves to garden and is a master gardener.
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