2023 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.