NY Aban Prop L § 511 (2021)
2021 New York Laws ABP - Abandoned Property Article 5-A - Unclaimed Property Held by Brokers 511 - Unclaimed Property; When Deemed Abandoned.

§  511.  Unclaimed  property;  when  deemed  abandoned.  The following unclaimed property shall be deemed abandoned property:   1. Any amount  (a)  received  in  this  state  after  June  thirtieth, nineteen  hundred  forty-six  by  a  broker or dealer or nominee of such broker or dealer as the holder of record of a security remaining  unpaid to  the  person  entitled  thereto for three years following the receipt thereof, or (b) when paid to such broker, dealer or nominee on  or  with respect to a security which has been deemed abandoned.   1-a.  Any  amount  (a)  received in this state on or after July first, nineteen hundred seventy-four by a broker or dealer or nominee  of  such broker  or  dealer  other  than  as  the  holder of record of a security remaining  unpaid  to  the  person  entitled  thereto  for  three  years following  the  receipt thereof, or (b) when paid to such broker, dealer or nominee on or with respect  to  a  security  which  has  been  deemed abandoned.   2.  Any  amount  (a)  received  in  this  state  after June thirtieth, nineteen hundred forty-six due from a broker or  dealer  or  nominee  of such  broker  or  dealer  to a customer which has remained unpaid to the customer for three years after the date of the last  entry,  other  than the  receipt  of  dividends  or  interest in the account of such broker, dealer or nominee with such customer, or (b) payable on or with  respect to a security which has been deemed abandoned.   3.  Any  security held in this state by a broker or dealer, or nominee of such broker or dealer, as the holder of record of a  security  for  a customer  or for a person or persons unknown to such broker or dealer or nominee where, for three successive years, all amounts paid  thereon  or with respect thereto and received after June thirtieth, nineteen hundred forty-six by such broker or dealer or nominee have remained unclaimed.   Provided,  however,  that  if  any  amount  or  security  specified in subdivision one, two or three of this section is reflected, recorded, or included in an account with respect to which such broker or  dealer  has on  file evidence in writing received within the three years immediately preceding the thirty-first day  of  December  preceding  the  date  such amount or security would otherwise be payable or deliverable pursuant to section  five  hundred  twelve  that  the  person  entitled  thereto had knowledge of such account, then such amount or  security  shall  not  be deemed abandoned property.   4.  Any  security held by a broker or dealer or nominee of such broker or dealer reflected, recorded, or included in an account with respect to which, for three successive years, all statements of  account  or  other communications  which  have  been  sent,  via  first  class mail, to the customer at his last known address have been returned  to  such  broker, dealer  or nominee by the postal authorities for inability to locate the customer, and no  written  communication  has  been  received  from  the customer  by  such broker, dealer or nominee, provided such security was received or is held in this state by such broker, dealer or  nominee  or the last known address of the customer is located in this state.   5. Any wages held and payable on or after July first, nineteen hundred sixty-six  by a broker or dealer, as defined in section five hundred ten of this article, for the benefit  of  a  person  or  persons,  known  or unknown  shall  be  deemed  to  be  abandoned  property, where for three successive years:  (a) All such wages have remained unpaid to such person, and  (b) No written communication has been received from such person by the holder, and  (c) Notice regarding such wages, if sent by the broker or dealer,  via first  class  mail,  to  such  person at his last known address has been  returned to the broker or dealer by the postal authorities for inability to locate such person.   6.  Any  broker  or  dealer  who  satisfies  the  requirements of this subdivision may determine the property which on the thirty-first day  of December  in  the  years  nineteen hundred seventy-two, nineteen hundred seventy-three,  nineteen  hundred  seventy-four  and  nineteen   hundred seventy-five shall be deemed abandoned property pursuant to subdivisions one  and  three  of  this section relating to the years nineteen hundred sixty-seven, nineteen hundred sixty-eight, nineteen hundred  sixty-nine, and   nineteen  hundred  seventy  by  the  method  hereinafter  in  this subdivision described and the amount so determined as at any  such  date shall be deemed to be all of such abandoned property held by such broker or dealer pursuant to subdivisions one and three of this section on such date.   The  broker  or  dealer shall compute separately for each of the years nineteen hundred sixty-five and  nineteen  hundred  sixty-six  (each  of which  years  is  referred  to in this subdivision as a "base year") the total value of all stock and cash dividends received by such  broker  or dealer,  or  nominee of such broker or dealer, in this state during such year as the holder of record of a security. The value  of  any  dividend paid  in stock shall be the mean price of such stock during the calendar month in which the dividend was received as reported  by  any  generally recognized statistical service or, if not so reported, as established in any  other manner satisfactory to the state comptroller. The total value of all such stock and cash dividends thus determined for each base  year shall  be the denominator for that base year. The broker or dealer shall then determine the total value of all  such  dividends  received  during each  base  year  belonging  to  unknown owners as reported to the state comptroller, or as required to be so reported pursuant to this  article, which  continued to be held by such broker or dealer, or nominee of such broker or dealer, unpaid to the person entitled thereto on the  December thirty-first  occurring five years after the close of such base year. To the extent any such dividends which continued to be so  held  unpaid  on any  such  December thirty-first consisted of stock, such stock shall be valued at the mean price of such stock during the calendar month  ending on  such  December  thirty-first as reported by any generally recognized statistical service or, if not so reported, as established in any  other manner  satisfactory  to  the state comptroller. The total value of such remaining dividends thus determined for each  base  year  shall  be  the numerator  for  that  base  year. The sum of the numerators for the base years shall be divided by the sum of the denominators for the base years and the result thus obtained shall be multiplied  by  two.  The  product obtained  as  the  result  of  such  multiplication shall be the average factor of such broker or dealer.   In order to determine the property which on the  thirty-first  day  of December,   nineteen  hundred  seventy-two  shall  be  deemed  abandoned property pursuant to subdivisions one and three of this section relating to the year nineteen hundred sixty-seven  the  broker  or  dealer  shall determine (i) the total value of all stock and cash dividends (valued as above  provided)  received  by such broker or dealer, or nominee of such broker or dealer, in this state during nineteen hundred  sixty-seven  as the  holder  of record of a security and shall multiply such total value by the average factor of such  broker  or  dealer,  (ii)  the  aggregate amount  of  stock and cash dividends (valued as above provided) received by such broker or dealer, or nominee of such broker or dealer,  in  this state  during  nineteen hundred sixty-seven as the holder of record of a security for a person or persons unknown to such broker or dealer,  less the  cost  incurred  by  such  broker  or  dealer  not  later  than  the  thirty-first day of December, nineteen hundred seventy-two  in  covering stock  and cash dividends which should have been received by such broker or dealer, or nominee of such broker or dealer, during nineteen  hundred sixty-seven  but,  according  to the books and records of such broker or dealer, were not received, and (iii) the aggregate  amount  of  interest payments received by such broker or dealer, or nominee of such broker or dealer,  in this state during nineteen hundred sixty-seven on securities held for persons unknown  to  such  broker  or  dealer,  less  the  cost incurred by such broker or dealer not later than the thirty-first day of December,  nineteen  hundred  seventy-two  in covering interest payments which should have been received by such broker or dealer, or nominee  of such   broker  or  dealer,  during  nineteen  hundred  sixty-seven  but, according to the books and records of such broker or  dealer,  were  not received.  The greater of the two amounts determined pursuant to clauses (i) and (ii) of the  preceding  sentence,  plus  the  amount  determined pursuant  to  clause  (iii)  of such sentence, shall be deemed abandoned property pursuant to subdivisions one and three of this section relating to the year nineteen hundred sixty-seven  on  the  thirty-first  day  of December nineteen hundred seventy-two.   In  order  to  determine the property which on the thirty-first day of December, nineteen  hundred  seventy-three  shall  be  deemed  abandoned property pursuant to subdivisions one and three of this section relating to  the  year  nineteen  hundred  sixty-eight the broker or dealer shall determine (i) the total value of all stock and cash dividends (valued as above provided) received by such broker or dealer, or  nominee  of  such broker  or  dealer, in this state during nineteen hundred sixty-eight as the holder of record of a security and shall multiply such  total  value by  the  average  factor  of  such  broker or dealer, (ii) the aggregate amount of stock and cash dividends (valued as above  provided)  received by  such  broker or dealer, or nominee of such broker or dealer, in this state during nineteen hundred sixty-eight as the holder of record  of  a security  for a person or persons unknown to such broker or dealer, less the  cost  incurred  by  such  broker  or  dealer  not  later  than  the thirty-first day of December, nineteen hundred seventy-three in covering stock  and cash dividends which should have been received by such broker or dealer, or nominee of such broker or dealer, during nineteen  hundred sixty-eight  but,  according  to the books and records of such broker or dealer, were not received, and (iii) the aggregate  amount  of  interest payments received by such broker or dealer, or nominee of such broker or dealer,  in this state during nineteen hundred sixty-eight on securities held for persons unknown  to  such  broker  or  dealer,  less  the  cost incurred by such broker or dealer not later than the thirty-first day of December,  nineteen  hundred seventy-three in covering interest payments which should have been received by such broker or dealer, or nominee  of such   broker  or  dealer,  during  nineteen  hundred  sixty-eight  but, according to the books and records of such broker or  dealer,  were  not received.  The greater of the two amounts determined pursuant to clauses (i) and (ii) of the  preceding  sentence,  plus  the  amount  determined pursuant  to  clause  (iii)  of such sentence, shall be deemed abandoned property pursuant to subdivisions one and three of this section relating to the year nineteen hundred sixty-eight  on  the  thirty-first  day  of December, nineteen hundred seventy-three.   In  order  to  determine the property which on the thirty-first day of December,  nineteen  hundred  seventy-four  shall  be  deemed  abandoned property pursuant to subdivisions one and three of this section relating to  the  year  nineteen  hundred  sixty-nine  the broker or dealer shall determine (i) the total value of all stock and cash dividends (valued as above provided) received by such broker or dealer, or  nominee  of  such  broker  or  dealer,  in this state during nineteen hundred sixty-nine as the holder of record of a security and shall multiply such  total  value by  the  average  factor  of  such  broker or dealer, (ii) the aggregate amount  of  stock and cash dividends (valued as above provided) received by such broker or dealer, or nominee of such broker or dealer,  in  this state  during  nineteen  hundred sixty-nine as the holder of record of a security for a person or persons unknown to such broker or dealer,  less the  cost  incurred  by  such  broker  or  dealer  not  later  than  the thirty-first day of December, nineteen hundred seventy-four in  covering stock  and cash dividends which should have been received by such broker or dealer, or nominee of such broker or dealer, during nineteen  hundred sixty-nine  but,  according  to  the books and records of such broker or dealer, were not received, and (iii) the aggregate  amount  of  interest payments received by such broker or dealer, or nominee of such broker or dealer,  in  this state during nineteen hundred sixty-nine on securities held for persons unknown  to  such  broker  or  dealer,  less  the  cost incurred by such broker or dealer not later than the thirty-first day of December,  nineteen  hundred  seventy-four in covering interest payments which should have been received by such broker or dealer, or nominee  of such broker or dealer, during nineteen hundred sixty-nine but, according to  the  books  and records of such broker or dealer, were not received. The greater of the two amounts determined pursuant to  clauses  (i)  and (ii)  of  the preceding sentence, plus the amount determined pursuant to clause (iii) of  such  sentence,  shall  be  deemed  abandoned  property pursuant  to  subdivisions one and three of this section relating to the year nineteen hundred sixty-nine on the  thirty-first  day  of  December nineteen hundred seventy-four.   In  order  to  determine the property which on the thirty-first day of December,  nineteen  hundred  seventy-five  shall  be  deemed  abandoned property pursuant to subdivisions one and three of this section relating to  the  year  nineteen  hundred  seventy  the  broker  or  dealer shall determine (i) the total value of all stock and cash dividends (valued as above provided) received by such broker or dealer, or  nominee  of  such broker  or  dealer, in this state during nineteen hundred seventy as the holder of record of a security and shall multiply such  total  value  by the  average  factor of such broker or dealer, (ii) the aggregate amount of stock and cash dividends (valued as above provided) received by  such broker  or  dealer,  or  nominee of such broker or dealer, in this state during nineteen hundred seventy as the holder of record  of  a  security for  a person or persons unknown to such broker or dealer, less the cost incurred by such broker or dealer not later than the thirty-first day of December, nineteen hundred seventy-five in covering stock and cash divi- dends which should have been received  by  such  broker  or  dealer,  or nominee  of  such broker or dealer, during nineteen hundred seventy but, according to the books and records of such broker or  dealer,  were  not received,  and  (iii) the aggregate amount of interest payments received by such broker or dealer, or nominee of such broker or dealer,  in  this state  during nineteen hundred sixty-nine on securities held for persons unknown to such broker or dealer, less the cost incurred by such  broker or  dealer  not  later  than  the thirty-first day of December, nineteen hundred seventy-five in covering interest  payments  which  should  have been  received  by  such  broker or dealer, or nominee of such broker or dealer, during nineteen hundred seventy but, according to the books  and records  of such broker or dealer, were not received. The greater of the two amounts determined pursuant to clauses (i) and (ii) of the preceding sentence, plus the amount determined pursuant to clause  (iii)  of  such sentence,  shall  be  deemed abandoned property pursuant to subdivisions one and three of this section relating  to  the  year  nineteen  hundred  seventy   on   the   thirty-first  day  of  December,  nineteen  hundred seventy-five.   Each broker or dealer which uses the procedure described above in this subdivision  shall  maintain  for  a  period  of not less than six years commencing  January  first,  nineteen  hundred  seventy-two,  books  and records  evidencing  the  receipt of dividends in this state for each of the base years, and the payment thereof over the five  years  succeeding each base year.   Any  broker  or  dealer who chooses to determine the property which on the  thirty-first  day  of  December  in  the  years  nineteen   hundred seventy-two  or nineteen hundred seventy-three shall be deemed abandoned property pursuant to subdivisions one and three of this section relating to  the  years  nineteen  hundred  sixty-seven   or   nineteen   hundred sixty-eight by the method described in this subdivision shall thereafter determine the property which on the thirty-first day of December in each subsequent  year  ending  not later than December thirty-first, nineteen hundred seventy-five shall be  deemed  abandoned  property  pursuant  to subdivisions  one and three of this section relating to a year not later than  nineteen  hundred  seventy  by  the  method  described   in   this subdivision.  No  broker  or dealer may choose to determine the property which on the thirty-first day of December in the years nineteen  hundred seventy-four  or nineteen hundred seventy-five shall be deemed abandoned property pursuant to subdivisions one and three of this section relating to the years nineteen hundred sixty-nine or nineteen hundred seventy  by the  method  described  in this subdivision unless such broker or dealer shall have used the method described in this  subdivision  to  determine the  property  which  on  the  thirty-first  day of December in the year nineteen  hundred  seventy-three  shall  be  deemed  abandoned  property pursuant  to  subdivisions one and three of this section relating to the year nineteen hundred sixty-eight.   The method of determining abandoned property pursuant to  subdivisions one  and three of this section as described in this subdivision shall be available only to such brokers or dealers as have made  written  reports pursuant  to section five hundred thirteen in each of the years nineteen hundred seventy-one and nineteen hundred seventy-two  covering  each  of the base years.   In  the  event  that  an  audit  of  a  broker  or dealer by the state comptroller establishes that one or more of the dollar values determined by the broker or dealer for the purpose of computing the average  factor of such broker or dealer pursuant to this subdivision was incorrect, the corrected  average  factor  of  such  broker  or dealer established as a result of such audit shall  be  determined  to  be  the  average  factor required  to  be  used by such broker or dealer in determining abandoned property pursuant to this subdivision.   Any broker  or  dealer  who  does  not  determine  abandoned  property pursuant  to  subdivisions  one  and three of this section by the method described in this subdivision and who during any of the  calendar  years nineteen  hundred  sixty-seven,  nineteen  hundred sixty-eight, nineteen hundred sixty-nine or nineteen hundred seventy received  in  this  state any stock dividend as the holder of record of a security for a person or persons  unknown  to  such  broker or dealer and who sold any such stock dividend during any such or subsequent  calendar  year,  shall  pay  the proceeds  of  such  sale  to  the  state  comptroller not later than the thirty-first day of December, nineteen hundred  seventy-three  and  such proceeds  shall,  for  all  purposes of this chapter be deemed abandoned property on the thirty-first day of December of the calendar year during which such sale takes place.