Unclaimed Savings Bond Act of 2021
Bill: S.2854 | Sponsor: Sen. Kennedy, John (R-LA)
Policy area: Economics and Public Finance

Summary:
Unclaimed Savings Bond Act of 2021
This bill establishes requirements and procedures for the Department of the Treasury to transfer ownership of certain matured, unredeemed savings bonds and related records to states.

To allow for the transfer and redemption of abandoned savings bonds.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Unclaimed Savings Bond Act of 
2021''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) Tens of billions of dollars' worth of savings bonds 
        have never been redeemed by their owners, including millions of 
        bonds that matured years and even decades ago. The Department 
        of the Treasury refers to these bonds as Matured Unredeemed 
        Debt (``MUD'').
            (2) The United States savings bond program was created to 
        fund critical government operations during times of national 
        need while guaranteeing to citizens the promise of a safe 
        return.
            (3) The States are the traditional custodians of abandoned 
        property and are best positioned to help owners of abandoned 
        bonds recover the proceeds of their investment.
            (4) Until abandoned property is claimed, the States are 
        able to devote unclaimed funds to the health and welfare of 
        their citizens.
            (5) Allowing States to utilize the proceeds of abandoned 
        savings bonds provides them with liquidity and the ability to 
        serve their citizens without increasing the Federal deficit.

SEC. 3. TRANSFER AND REDEMPTION OF ABANDONED SAVINGS BONDS.

    Section 3105 of title 31, United States Code, is amended by adding 
at the end the following:
    ``(f)(1) Notwithstanding any other Federal law, the ownership of an 
applicable savings bond may be transferred pursuant to a valid judgment 
of escheatment vesting a State with title to the bond. Nothing in this 
section, or in any regulation promulgated by the Secretary to implement 
this section, may be construed to preempt State law providing for, or 
governing the escheatment of, applicable savings bonds.
    ``(2) The Secretary shall recognize an order of a court of 
competent jurisdiction that vests title to an applicable savings bond 
with a State, regardless of whether the State has possession of such 
bond if the State provides the Secretary with a certified copy of such 
order.
    ``(3)(A) If a State has title or is seeking to obtain title through 
a judicial proceeding to an applicable savings bond, the Secretary 
shall provide to the State, upon request, the serial number of such 
bond, and any reasonably available records or information--
            ``(i) relating to the purchase or ownership of such bond, 
        including any transactions involving such bond; or
            ``(ii) which may provide other identifying information 
        relating to such bond.
    ``(B) Any records or information provided to a State pursuant to 
subparagraph (A) shall be considered sufficient to enable the State to 
redeem the applicable savings bond for full value, regardless whether 
the bond is lost, stolen, destroyed, mutilated, defaced, or otherwise 
not in the State's possession.
    ``(4)(A) Subject to subparagraph (C), a State may redeem and 
receive payment for an applicable savings bond for which the State has 
title pursuant to the same procedures established pursuant to 
regulations which are available for payment or redemption of a savings 
bond by any owner of such bond.
    ``(B) The Secretary may not prescribe any regulation which prevents 
or prohibits a State from obtaining title to an applicable savings bond 
or redeeming such bond pursuant to the procedures described in 
subparagraph (A).
    ``(C) In the case of an applicable savings bond which is lost, 
stolen, destroyed, mutilated, defaced, or otherwise not in the 
possession of the State, if the State has requested records and 
information under paragraph (3)(A), any applicable period of limitation 
for payment or redemption of such bond shall not begin to run against 
the State until the date on which the Secretary has provided the State 
with the records and information described in such paragraph.
    ``(5) If the United States Government makes payment to a State for 
an applicable savings bond pursuant to paragraph (4)--
            ``(A) that State shall attempt to locate the original owner 
        of each such bond registered with an address in that State 
        pursuant to the same standards and requirements as exist under 
        that State's abandoned property rules and regulations;
            ``(B) except as provided in subparagraph (C), the United 
        States Government shall not retain any further obligation or 
        liability relating to such bond, including any obligation or 
        liability with respect to the registered owner of such bond (as 
        described in paragraph (6));
            ``(C) should a State that receives payment for an 
        applicable savings bond pursuant to paragraph (4) fail to make 
        payment to a registered owner of such bond (as described in 
        paragraph (6)(B)) after presentment of a valid claim of 
        ownership pursuant to that State's abandoned property rules and 
        regulations, such owner may then seek redemption of their bond 
        through the Secretary or any paying agent authorized by the 
        United States Government to make payments to redeem such bonds, 
        and it shall be paid; and
            ``(D) where the United States Government has made payment 
        of an applicable savings bond under subparagraph (C), the 
        respective State shall indemnify the United States for payments 
        made on such bond.
    ``(6) For purposes of this subsection, the term `applicable savings 
bond' means any United States savings bond that--
            ``(A) matured on or before December 31, 2017;
            ``(B) is registered to an owner with a last known address 
        within a State claiming title under a valid escheatment order 
        entered after December 31, 2012, and before January 2026; and
            ``(C) has not been redeemed by such owner.''.
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