Iowa Administrative Code › Agency 781 - Treasurer of State › Chapter 9 - Unclaimed Property › Rule 781-9.4 - Definitions

Current through Register Vol. 47, No. 3, July 24, 2024
In addition to the terms defined in Iowa Code section
						556.1,
						the following words or terms, when used in this chapter, shall have the
						following meanings, unless the context clearly indicates otherwise:
"Act"
means the uniform disposition of
						unclaimed property Act, Iowa Code chapter 556.
"Aggregate property"
means individual items of
						intangible property with a value of less than $50 each which have been
						aggregated by a holder and reported and delivered to the division in a lump
						sum.
"Book shares "
means debt or equity securities
						which are maintained in book entry form only and for which no physical
						certificate was or is issued.
"Claimant"
means a person or legal entity
						entitled to reclaim abandoned property in the possession of the division. A
						claimant may be an original owner, legal representative (other than a finder),
						or successor in interest.
"Contract auditor "
means any person or entity
						engaged or hired by the treasurer or the division to provide unclaimed property
						examination services. "Contract auditor" includes agents, employees and any
						subcontractor engaged by a contract auditor or engaged by its
						subcontractors.
"Credits, advance payments, overpayments, refunds, or
						credit memoranda, "
for purposes of Iowa Code section
						556.1(12),
						means current accounts receivable of a business association that have not been
						reduced to a check or other form of payment. "Credits, advance payments,
						overpayments, refunds, or credit memoranda," for purposes of Iowa Code section
						556.1(12), shall not include uncashed checks or other unclaimed payments due
						and owing to a business association for its provision of goods or services,
						with respect to any other type of obligation.
"Custodial property"
means property
						transferred to a custodian for a minor under the provisions of (1) the Iowa
						UTMA, (2) the Uniform Transfers to Minors Act, (3) the Uniform Gifts to Minors
						Act, or (4) a substantially similar Act of another state if, at the time of the
						transfer, the transferor, the minor, or the custodian is a resident of the
						designated state or the custodial property is located in the designated
						state.
"Division "
means the unclaimed property
						division within the Iowa treasurer of state's office that has the
						responsibility of administering the Act.
"Dormancy fee"
means a service charge,
						dormancy charge, inactive account fee, escheat fee, minimum balance fee,
						maintenance fee, unclaimed property fee, or any other charge that results in
						the reduction of an account balance or property value and is not directly
						related to a transaction initiated by an owner.
"Dormancy period"
means the statutorily
						specified span of time after which an owner's failure to indicate an interest
						in property will result in the property's being presumed abandoned and subject
						to reporting and delivery to the division.
"Due diligence "
means the efforts required to
						be undertaken by a holder of unclaimed property to find the rightful owner of
						such property before the property is delivered to the division.
"Finder "
means a person hired or engaged to
						assist owners, heirs or other persons in the recovery of unclaimed property
						reported under the Act.
"Finder agreement"
means an agreement to pay a
						fee, commission, or other compensation to a finder to identify, locate,
						deliver, recover, or assist in the recovery of unclaimed property reported
						under the Act.
"Funds for liquidation "
means unclaimed funds
						which are held by a holder on behalf of an owner of debt or equity securities
						and which are owing as a result of the liquidation of the securities
						issuer.
"Gift certificate "
means a merchandise
						certificate or electronic gift card conspicuously designated as a gift
						certificate or electronic gift card and generally purchased by a buyer for use
						by a person other than the buyer.
"Indication of interest"
means an action by an
						owner with respect to the owner's property which indicates that the owner is
						aware of the existence of the property and intends for the property not to be
						presumed abandoned. Examples of an owner's indication of interest include, but
						are not limited to, the following: an owner-initiated deposit or withdrawal
						from an account; notification to a holder of a change of address specific to
						the account; an account balance or similar owner-initiated inquiry, including
						an account inquiry made electronically in which the owner has contemporaneously
						authenticated the owner's identity; and any communication, such as written or
						electronic correspondence, telephone call or person-to-person conversation
						between an owner and a holder (or the agent of a holder), which can be
						documented and which reflects an owner's awareness of the existence of the
						property. "Indication of interest" does not include recurring Automated
						Clearing House (ACH) transfers, automated postings to accounts, computer system
						conversions, the non-return of mail, and other actions that are not
						owner-initiated or do not require a direct owner response.
"Intangibleproperty"
means such property as
						described in Iowa Code section
						556.1(12)
						as well as any other fixed and certain interest or right in an intangible that
						is held by, issued to, or owing to a holder except as otherwise expressly
						exempted by law.
"Iowa uniform transfers to minors Act"
or
"Iowa UTMA"
means Iowa Code chapter 565B.
"last activity date "
means the last
						verifiable date of owner-initiated activity or contact with the holder with
						respect to unclaimed property.
"Matured bond principal"
means unclaimed funds
						which are held by a holder for a bond holder pending the bond holder's
						redemption of debt securities.
"Non-freely transferable security "
means a
						security that cannot be delivered to the administrator by the Depository Trust
						Clearing Corporation or a similar custodian of securities providing post-trade
						clearing and settlement services to financial markets or cannot be delivered
						because there is no agent to effect transfer. "Non-freely transferable
						security" includes a worthless security.
"Retained asset account"
means any mechanism
						whereby the settlement of proceeds payable under a life insurance policy is
						accomplished by deposit by the insurer, or an entity acting on behalf of the
						insurer, depositing the proceeds into an account with check- or draft-writing
						privileges, where those proceeds are retained by the insurer pursuant to a
						supplementary contract not involving annuity benefits.
"Tangible property"
means the physical
						contents of a safe deposit box or other safekeeping repository, or physical
						items held as collateral by a banking organization, financial organization, or
						business association, that are reportable and deliverable to the
						division.
"Treasurer "
means the treasurer of the state
						of Iowa.
"Undelivered shares"
means unclaimed
						physically issued debt or equity securities which were returned to the issuer
						by the post office as undeliverable or which were otherwise never delivered
						into the possession of the owner.
"Underlying shares"
means unclaimed physically
						issued debt or equity securities which are presumably in the possession of an
						owner.
"Unexchanged shares "
means unclaimed debt or
						equity securities which are held by a holder on behalf of an owner, pending the
						owner's surrender of obsolete debt or equity securities in conjunction with an
						acquisition, merger, recapitalization, or similar mandatory corporate
						action.
This rule is intended to implement Iowa Code section
						556.1.