REVISED UNIFORM UNCLAIMED PROPERTY ACT

KRS tit. XXXIV, ch. 393A

in effect

KRS 393A.010 Definitions for chapter

393A.010. Definitions for chapter As used in this chapter: (1) "Administrator" means the Kentucky State Treasurer; (2) "Administrator's agent": (a) Means a person with which the administrator contracts to conduct an examination under KRS 393A.550 to 393A.650 on behalf of the administrator; and (b) Includes an independent contractor of the person and each individual participating in the examination on behalf of the person or contractor; (3) "Apparent owner" means a person whose name appears on the records of a holder as the owner of property held, issued, or owing by the holder; (4) "Business association" means a corporation, joint stock company, investment company other than an investment company registered under 15 U.S.C. secs. 80a-1 to 80a-64, as amended, partnership, unincorporated association, joint venture, limited liability company, business trust, trust company, land bank, safe deposit company, safekeeping depository, financial organization, insurance company, federally chartered entity, utility, sole proprietorship, or other business entity, whether or not for profit; (5) "Confidential information" means records, reports, and information that are confidential under KRS 393A.780; (6) "Domicile" means: (a) For a corporation, the state of its incorporation; (b) For a business association whose formation requires a filing with a state, other than a corporation, the state of its filing; (c) For a federally chartered entity or an investment company registered under 15 U.S.C. secs. 80a-1 to 80a-64, as amended, the state of its home office; and (d) For any other holder, the state of its principal place of business; (7) "Electronic" means relating to technology having electrical, digital, magnetic, wireless, optical, electromagnetic, or similar capabilities; (8) "Electronic mail" means a communication by electronic means which is automatically retained and stored and may be readily accessed or retrieved; (9) "Financial organization" means a savings and loan association, building and loan association, savings bank, industrial bank, bank, banking organization, or credit union; (10) "Game-related digital content": (a) Means digital content that exists only in an electronic game or electronic- game platform; (b) Includes: 1. Game-play currency such as a virtual wallet, even if denominated in United States currency; and 2. The following if for use or redemption only within the game or platform or another electronic game or electronic-game platform: a. Points sometimes referred to as gems, tokens, gold, and similar names; and b. Digital codes; and (c) Does not include an item that the issuer permits to be redeemed for use outside a game or platform: 1. For money; 2. For goods or services that have more than minimal value; or 3. That otherwise monetizes for use outside a game or platform; (11) "Gift card": (a) Means a stored-value card: 1. The value of which does not expire; 2. That may be decreased in value only by redemption for merchandise, goods, or services; and 3. That, unless required by law, may not be redeemed for or converted into money or otherwise monetized by the issuer; and (b) Includes a prepaid commercial mobile radio service, as defined in 47 C.F.R. sec. 20.3, as amended; (12) "Holder" means a person obligated to hold for the account of, or to deliver or pay to, the owner, property subject to this chapter; (13) "Insurance company" means an association, corporation, or fraternal or mutual- benefit organization, whether or not for profit, engaged in the business of providing life endowments, annuities, or insurance, including accident, burial, casualty, credit- life, contract-performance, dental, disability, fidelity, fire, health, hospitalization, illness, life, malpractice, marine, mortgage, surety, wage-protection, and worker- compensation insurance; (14) "Loyalty card": (a) Means a record given without direct monetary consideration under an award, reward, benefit, loyalty, incentive, rebate, or promotional program, which may be used or redeemed only to obtain goods or services or a discount on goods or services; and (b) Does not include a record that may be redeemed for money or otherwise monetized by the issuer; (15) "Mineral" means gas, oil, coal, oil shale, other gaseous liquid or solid hydrocarbon, cement material, sand and gravel, road material, building stone, chemical raw material, gemstone, fissionable and nonfissionable ores, colloidal and other clay, steam and other geothermal resources, and any other substance defined as a mineral by law of this state other than this chapter; (16) "Mineral proceeds": (a) Means an amount payable for extraction, production, or sale of minerals, or, on the abandonment of the amount, an amount that becomes payable after abandonment; and (b) Includes an amount payable: 1. For the acquisition and retention of a mineral lease, including a bonus, royalty, compensatory royalty, shut-in royalty, minimum royalty, and delay rental; 2. For the extraction, production, or sale of minerals, including a net revenue interest, royalty, overriding royalty, extraction payment, and production payment; and 3. Under an agreement or option, including a joint-operating agreement, unit agreement, pooling agreement, and farm-out agreement; (17) "Money order": (a) Means a payment order for a specified amount of money; and (b) Includes an express money order and a personal money order on which the remitter is the purchaser; (18) "Municipal bond" means a bond or evidence of indebtedness issued by a municipality or other political subdivision of a state; (19) "Net card value" means the original purchase price or original issued value of a stored-value card, plus amounts added to the original price or value, minus amounts used and any service charge, fee, or dormancy charge permitted by law; (20) "Non-freely transferable security": (a) Means a security that cannot be delivered to the administrator by the Depository Trust Clearing Corporation or 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; and (b) Includes a worthless security; (21) "Owner": (a) Means a person that has a legal, beneficial, or equitable interest in property subject to this chapter or the person's legal representative when acting on behalf of the owner; and (b) Includes: 1. A depositor, for a deposit; 2. A beneficiary, for a trust other than a deposit in trust; 3. A creditor, claimant, or payee, for other property; and 4. The lawful bearer of a record that may be used to obtain money, a reward, or a thing of value; (22) "Payroll card" means a record that evidences a payroll card account as defined in 12 C.F.R. pt. 1005, as amended; (23) "Person" means an individual, estate, business association, public corporation, government or governmental subdivision, agency, or instrumentality or other legal entity; (24) "Property": (a) Means tangible property described in KRS 393A.080 or a fixed and certain interest in intangible property held, issued, or owed in the course of a holder's business or by a government, governmental subdivision, agency, or instrumentality; (b) Includes all income from or increments to the property; (c) Includes property referred to as or evidenced by: 1. Money, virtual currency, interest, or a dividend, check, draft, deposit, or payroll card; 2. A credit balance, customer's overpayment, stored-value card, security deposit, refund, credit memorandum, unpaid wage, unused ticket for which the issuer has an obligation to provide a refund, mineral proceeds, or unidentified remittance; 3. A security, except for: a. A worthless security; or b. A security that is subject to a lien, legal hold, or restriction evidenced on the records of the holder or imposed by operation of law, if the lien, legal hold, or restriction restricts the holder's or owner's ability to receive, transfer, sell, or otherwise negotiate the security; 4. A bond, debenture, note, or other evidence of indebtedness; 5. Money deposited to redeem a security, make a distribution, or pay a dividend; 6. An amount due and payable under an annuity contract or insurance policy; and 7. An amount distributable from a trust or custodial fund established under a plan to provide health, welfare, pension, vacation, severance, retirement, death, stock purchase, profit-sharing, employee-savings, supplemental-unemployment insurance, or a similar benefit; and (d) Does not include: 1. Property held in a plan described in 26 U.S.C. sec. 529A, as amended; 2. Game-related digital content; 3. A loyalty card; 4. An in-store credit for returned merchandise; or 5. A gift card; (25) "Putative holder" means a person believed by the administrator to be a holder, until the person pays or delivers to the administrator property subject to this chapter or the administrator or a court makes a final determination that the person is or is not a holder; (26) "Record" means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form; (27) "Security" means: (a) A security as defined in KRS 355.8-102; (b) A security entitlement as defined in KRS 355.8-102, including a customer security account held by a registered broker-dealer, to the extent the financial assets held in the security account are not: 1. Registered on the books of the issuer in the name of the person for which the broker-dealer holds the assets; 2. Payable to the order of the person; or 3. Specifically indorsed to the person; and (c) An equity interest in a business association not included in paragraph (a) or (b) of this subsection; (28) "Sign" means, with present intent to authenticate or adopt a record: (a) To execute or adopt a tangible symbol; or (b) To attach to or logically associate with the record an electronic symbol, sound, or process; (29) "State" means a state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, the United States Virgin Islands, or any territory or insular possession subject to the jurisdiction of the United States; (30) "Stored-value card": (a) Means a record evidencing a promise made for consideration by the seller or issuer of the record that goods, services, or money will be provided to the owner of the record to the value or amount shown in the record; (b) Includes a: 1. Record that contains or consists of a microprocessor chip, magnetic strip, or other means for the storage of information, which is prefunded and whose value or amount is decreased on each use and increased by payment of additional consideration; 2. Gift card; and 3. Payroll card; and (c) Does not include a loyalty card or game-related digital content; (31) "Utility" means a person that owns or operates for public use a plant, equipment, real property, franchise, or license for the following public services: (a) Transmission of communications or information; (b) Production, storage, transmission, sale, delivery, or furnishing of electricity, water, steam, or gas; or (c) Provision of sewage or septic services, or trash, garbage, or recycling disposal; (32) "Virtual currency": (a) Means a digital representation of value used as a medium of exchange, unit of account, or store of value, which does not have legal tender status recognized by the United States; and (b) Does not include: 1. The software or protocols governing the transfer of the digital representation of value; 2. Game-related digital content; or 3. Loyalty card; and (33) "Worthless security" means a security whose cost of liquidation and delivery to the administrator would exceed the value of the security on the date a report is due under this chapter. Effective: July 14, 2018 History: Created 2018 Ky. Acts ch. 163, sec. 1, effective July 14, 2018.

KRS 393A.020 Inapplicability to foreign transaction

393A.020. Inapplicability to foreign transaction This chapter shall not apply to: (1) Property held, due, and owing in a foreign country if the transaction out of which the property arose was a foreign transaction; (2) Money, funds, or any other intangible property held by or owing: (a) To a nonprofit exempt under Section 501(c)(3) of the Internal Revenue Code; (b) For any minerals or other raw materials capable of being used for fuel in the course of manufacturing, processing, production, or mining; or (c) For any mineral proceeds; (3) Wages or salaries of fifty dollars ($50) or less that are not claimed by an employee within one (1) year of the date the wages or salaries are earned, unless the amounts are held on a payroll card; (4) Moneys in inmate accounts and prisoner canteen accounts held by jailer under KRS 441.137; or (5) Funds held in a lawyer IOLTA trust account under Supreme Court Rule 3.830. Effective: June 27, 2019 History: Amended 2019 Ky. Acts ch. 125, sec. 3, effective June 27, 2019. -- Created 2018 Ky. Acts ch. 163, sec. 2, effective July 14, 2018.

KRS 393A.030 Administrative regulations

393A.030. Administrative regulations The administrator may promulgate administrative regulations under KRS Chapter 13A to implement and administer this chapter. In promulgating the administrative regulations, the administrator shall use the most cost-effective methods available for the submission of reports to the administrator and the notice and advertisement of property transferred to the administrator. Effective: July 14, 2018 History: Created 2018 Ky. Acts ch. 163, sec. 3, effective July 14, 2018.

KRS 393A.035 Unclaimed property trust fund

393A.035. Unclaimed property trust fund (1) The unclaimed property trust fund is established in the Treasury of the Commonwealth. (2) The trust fund shall be administered by the Finance and Administration Cabinet and all money in excess of the amount to be disbursed in a given fiscal year shall be invested to maximize returns. (3) The trust fund shall consist of moneys received from appropriations, gifts, grants, federal funds, or moneys received on or after July 1, 2020. (4) Interest earnings of the fund shall accrue to the trust fund, except to the extent that on July 1 of any fiscal year, if the trust fund has a balance which exceeds one hundred million dollars ($100,000,000), the interest earnings of the fund shall accrue to the general fund. (5) Notwithstanding KRS 45.229 and except as provided by subsection (4) of this section, moneys deposited in the fund shall become a part of the fund and shall not lapse. (6) Nothing in this section shall be interpreted to prohibit the General Assembly from appropriating funds to: (a) The Department of the Treasury; or (b) The unclaimed property trust fund. Effective: June 27, 2019 History: Created 2019 Ky. Acts ch. 63, sec. 1, effective June 27, 2019.

KRS 393A.040 When property presumed abandoned

393A.040. When property presumed abandoned Subject to KRS 393A.120, the following property shall be presumed abandoned if it is unclaimed by the apparent owner during the period specified below: (1) A traveler's check, fifteen (15) years after issuance; (2) A money order, seven (7) years after issuance; (3) A state or municipal bond, bearer bond, or original-issue-discount bond, three (3) years after the earliest of the date the bond matures or is called or the obligation to pay the principal of the bond arises; (4) A debt of a business association, three (3) years after the obligation to pay arises; (5) A payroll card or demand, savings, or time deposit account, including a deposit that is automatically renewable, three (3) years after the maturity of the deposit, except a deposit that is automatically renewable is deemed matured on its initial date of maturity unless the apparent owner consented in a record on file with the holder to renewal at or about the time of the renewal, except: (a) Property held in an interest-bearing, demand, savings, or time deposit account shall, from the time it is presumed abandoned under this chapter, be placed by the holder in an interest-bearing account made assignable to the administrator; (b) The administrator may examine the records of the holder relevant to the establishment and maintenance of an interest -bearing account in accordance with this chapter; (c) Upon demand and proper proof by a person appearing entitled to payment of property described in this subsection, the holder may withdraw the property and any accrued interest for payment to the entitled person; (d) Property described in this subsection deposited and not claimed ten (10) years after it is presumed abandoned, or upon actual abandonment, shall be paid to the administrator upon whichever abandonment occurs first; and (e) The administrator shall not be required to credit interest on any property described in this subsection after the property is received under paragraph (d) of this subsection; (6) Money or a credit owed to a customer as a result of a retail business transaction, other than in-store credit for returned merchandise, three (3) years after the obligation arose; (7) An amount owed by an insurance company on a life or endowment insurance policy or an annuity contract that has matured or terminated, three (3) years after the obligation to pay arose under the terms of the policy or contract or, if a policy or contract for which an amount is owed on proof of death has not matured by proof of the death of the insured or annuitant, as follows: (a) With respect to an amount owed on a life or endowment i nsurance policy, three (3) years after the earlier of the date: 1. The insurance company has knowledge of the death of the insured; or 2. The insured has attained, or would have attained if living, the limiting age under the mortality table on which the re serve for the policy is based; and (b) With respect to an amount owed on an annuity contract, three (3) years after the date the insurance company has knowledge of the death of the annuitant; (8) Property distributable by a business association in the course of dissolution, one (1) year after the property becomes distributable; (9) Property held by a court, including property received as proceeds of a class action, may be paid to the administrator one (1) year after the property becomes distributable, but shall be paid to the administrator no later than five (5) years after the property becomes distributable; (10) Property held by a government or governmental subdivision, agency, or instrumentality, including municipal bond interest and unredeemed principal under the administration of a paying agent or indenture trustee, one (1) year after the property becomes distributable; (11) Property payable or distributable in the course of a demutualization of an insurance company, three (3) years after the earlier of the last contact with the policyholder, or the date the property became payable or distributable; (12) Wages, commissions, bonuses, or reimbursements to which an employee is entitled, or other compensation for personal services, other than amounts held in a payroll card, one (1) year after the amount becomes payable; (13) A deposit or refund owed to a subscriber by a utility, one (1) year after the deposit or refund becomes payable; and (14) Property not specified in KRS 393A.050, 393A.060, 393A.070, 393A.080, 393A.090, or 393A.100, the earlier of three (3) years after the owner first has a right to demand the property or the obligation to pay or distribute the property arises. Effective: July 1, 2025 History: Amended 2025 Ky. Acts ch. 124, sec. 49, effective July 1, 2025. -- Created 2018 Ky. Acts ch. 163, sec. 4, effective July 14, 2018.

KRS 393A.050 When tax-deferred retirement account presumed abandoned

393A.050. When tax-deferred retirement account presumed abandoned (1) Subject to KRS 393A.120, property held in a pension account or retirement account that qualifies for tax deferral under the income-tax laws of the United States shall be presumed abandoned if it is unclaimed by the apparent owner three (3) years after the later of: (a) The following dates: 1. Except as provided in subparagraph 2. of this paragraph, the date a second consecutive communication sent by the holder by first-class United States mail to the apparent owner is returned to the holder undelivered by the United States Postal Service; or 2. If the second communication is sent later than thirty (30) days after the date the first communication is returned undelivered, the date the first communication was returned undelivered by the United States Postal Service; or (b) The earlier of the following dates: 1. The date the apparent owner becomes seventy and one-half (70 ½) years of age, if determinable by the holder; or 2. If 26 U.S.C. secs. 1 et seq., as amended, requires distribution to avoid a tax penalty, two (2) years after the date the holder: a. Receives confirmation of the death of the apparent owner in the ordinary course of its business; or b. Confirms the death of the apparent owner under subsection (2) of this section. (2) If a holder in the ordinary course of its business receives notice or an indication of the death of an apparent owner and subsection (1)(b) of this section applies, the holder shall attempt not later than ninety (90) days after receipt of the notice or indication to confirm whether the apparent owner is deceased. (3) If the holder does not send communications to the apparent owner of an account described in subsection (1) of this section by first-class United States mail, the holder shall attempt to confirm the apparent owner's interest in the property by sending the apparent owner an electronic-mail communication not later than two (2) years after the apparent owner's last indication of interest in the property. However, the holder promptly shall attempt to contact the apparent owner by first-class United States mail if: (a) The holder does not have information needed to send the apparent owner an electronic-mail communication or the holder believes that the apparent owner's electronic-mail address in the holder's records is not valid; (b) The holder receives notification that the electronic-mail communication was not received; or (c) The apparent owner does not respond to the electronic-mail communication within thirty (30) days after the communication was sent. (4) If first-class United States mail sent under subsection (3) of this section is returned to the holder undelivered by the United States Postal Service, the property shall be presumed abandoned three (3) years after the later of: (a) Except as provided in paragraph (b) of this subsection, the date a second consecutive communication to contact the apparent owner sent by first-class United States mail is returned to the holder undelivered; (b) If the second communication is sent later than thirty (30) days after the date the first communication is returned undelivered, the date the first communication was returned undelivered; or (c) The date established by subsection (1)(b) of this section. Effective: July 14, 2018 History: Created 2018 Ky. Acts ch. 163, sec. 5, effective July 14, 2018.

KRS 393A.060 When other tax-deferred account presumed abandoned

393A.060. When other tax-deferred account presumed abandoned Subject to KRS 393A.120 and except for property described in KRS 393A.050 and property held in a plan described in 26 U.S.C. sec. 529A, property held in an account or plan, including a health savings account, that qualifies for tax deferral under the income- tax laws of the United States shall be presumed abandoned if it is unclaimed by the apparent owner three (3) years after the earlier of: (1) The date, if determinable by the holder, specified in the income-tax laws and regulations of the United States by which distribution of the property shall begin to avoid a tax penalty, with no distribution having been made; or (2) Thirty (30) years after the date the account was opened. Effective: July 14, 2018 History: Created 2018 Ky. Acts ch. 163, sec. 6, effective July 14, 2018.

KRS 393A.070 When custodial account for minor presumed abandoned

393A.070. When custodial account for minor presumed abandoned (1) Subject to KRS 393A.120, property held in an account established under the Uniform Transfers to Minors Act, KRS 385.012 to 385.242, shall be presumed abandoned if it is unclaimed by or on behalf of the minor on whose behalf the account was opened three (3) years after the later of: (a) Except as provided in paragraph (b) of this subsection, the date a second consecutive communication sent by the holder by first-class United States mail to the custodian of the minor on whose behalf the account was opened is returned undelivered to the holder by the United States Postal Service; (b) If the second communication is sent later than thirty (30) days after the date the first communication is returned undelivered, the date the first communication was returned undelivered; or (c) The date on which the custodian is required to transfer the property to the minor or the minor's estate in accordance with the Uniform Gifts to Minors Act or Uniform Transfers to Minors Act of the state in which the account was opened. (2) If the holder does not send communications to the custodian of the minor on whose behalf an account described in subsection (1) of this section was opened by first- class United States mail, the holder shall attempt to confirm the custodian's interest in the property by sending the custodian an electronic-mail communication not later than two (2) years after the custodian's last indication of interest in the property. However, the holder promptly shall attempt to contact the custodian by first-class United States mail if: (a) The holder does not have information needed to send the custodian an electronic-mail communication or the holder believes that the custodian's electronic-mail address in the holder's records is not valid; (b) The holder receives notification that the electronic-mail communication was not received; or (c) The custodian does not respond to the electronic-mail communication within thirty (30) days after the communication was sent. (3) If first-class United States mail sent under subsection (2) of this section is returned undelivered to the holder by the United States Postal Service, the property shall be presumed abandoned three (3) years after the later of: (a) The date a second consecutive communication to contact the custodian by first-class United States mail is returned to the holder undelivered by the United States Postal Service; or (b) The date established by subsection (1)(c) of this section. (4) When the property in the account described in subsection (1)(c) of this section is transferred to the minor on whose behalf an account was opened or to the minor's estate, the property in the account shall no longer be subject to this section. Effective: July 14, 2018 History: Created 2018 Ky. Acts ch. 163, sec. 7, effective July 14, 2018.

KRS 393A.080 When contents of safe-deposit box presumed abandoned

393A.080. When contents of safe-deposit box presumed abandoned Tangible property held in a safe-deposit box and proceeds from a sale of the property by the holder permitted by law of this state other than this chapter are presumed abandoned if the property remains unclaimed by the apparent owner five (5) years after the earlier of the: (1) Expiration of the lease or rental period for the box; or (2) Earliest date when the lessor of the box is authorized by law of this state other than this chapter to enter the box and remove or dispose of the contents without consent or authorization of the lessee. Effective: July 14, 2018 History: Created 2018 Ky. Acts ch. 163, sec. 8, effective July 14, 2018.

KRS 393A.090 When stored-value card presumed abandoned

393A.090. When stored-value card presumed abandoned (1) Subject to KRS 393A.120, the net card value of a stored-value card, other than a payroll card or a gift card, shall be presumed abandoned on the latest of three (3) years after: (a) December 31 of the year in which the card is issued or additional funds are deposited into it; (b) The most recent indication of interest in the card by the apparent owner; or (c) A verification or review of the balance by or on behalf of the apparent owner. (2) The amount presumed abandoned in a stored-value card shall be the net card value at the time it is presumed abandoned. Effective: July 14, 2018 History: Created 2018 Ky. Acts ch. 163, sec. 9, effective July 14, 2018.

KRS 393A.100 When security presumed abandoned

393A.100. When security presumed abandoned (1) Subject to KRS 393A.120, a security shall be presumed abandoned three (3) years after: (a) The date a second consecutive communication sent by the holder by first-class United States mail to the apparent owner is returned to the holder undelivered by the United States Postal Service; or (b) If the second communication is made later than thirty (30) days after the first communication is returned, the date the first communication is returned undelivered to the holder by the United States Postal Service. (2) If the holder does not send communications to the apparent owner of a security by first-class United States mail, the holder shall attempt to confirm the apparent owner's interest in the security by sending the apparent owner an electronic-mail communication not later than two (2) years after the apparent owner's last indication of interest in the security. However, the holder promptly shall attempt to contact the apparent owner by first-class United States mail if: (a) The holder does not have information needed to send the apparent owner an electronic-mail communication or the holder believes that the apparent owner's electronic-mail address in the holder's records is not valid; (b) The holder receives notification that the electronic-mail communication was not received; or (c) The apparent owner does not respond to the electronic-mail communication within thirty (30) days after the communication was sent. (3) If first-class United States mail sent under subsection (2) of this section is returned to the holder undelivered by the United States Postal Service, the security shall be presumed abandoned three (3) years after the date the mail is returned. Effective: July 14, 2018 History: Created 2018 Ky. Acts ch. 163, sec. 10, effective July 14, 2018.

KRS 393A.110 When related property presumed abandoned

393A.110. When related property presumed abandoned At and after the time property is presumed abandoned under this chapter, any other property right or interest accrued or accruing from the property and not previously presumed abandoned shall also be presumed abandoned. Effective: July 14, 2018 History: Created 2018 Ky. Acts ch. 163, sec. 11, effective July 14, 2018.

KRS 393A.120 Indication of apparent owner interest in property

393A.120. Indication of apparent owner interest in property (1) The period after which property shall be presumed abandoned shall be measured from the later of: (a) The date the property is presumed abandoned under this chapter; or (b) The latest indication of interest by the apparent owner in the property. (2) Under this chapter, an indication of an apparent owner's interest in property includes: (a) A record communicated by the apparent owner to the holder or agent of the holder concerning the property or the account in which the property is held; (b) An oral communication by the apparent owner to the holder or agent of the holder concerning the property or the account in which the property is held, if the holder or its agent contemporaneously makes and preserves a record of the fact of the apparent owner's communication; (c) Presentment of a check or other instrument of payment of a dividend, interest payment, or other distribution, or evidence of receipt of a distribution made by electronic or similar means, with respect to an account, underlying security, or interest in a business association; (d) Activity directed by an apparent owner in the account in which the property is held, including accessing the account or information concerning the account, or a direction by the apparent owner to increase, decrease, or otherwise change the amount or type of property held in the account; (e) A deposit into or withdrawal from an account at a financial organization, including an automatic deposit or withdrawal previously authorized by the apparent owner other than an automatic reinvestment of dividends or interest; (f) Subject to subsection (5) of this section, payment of a premium on an insurance policy; and (g) Any other action by the apparent owner which reasonably demonstrates to the holder that the apparent owner knows that the property exists. (3) An action by an agent or other representative of an apparent owner, other than the holder acting as the apparent owner's agent, shall be presumed to be an action on behalf of the apparent owner. (4) A communication with an apparent owner by a person other than the holder or the holder's representative shall not be an indication of interest in the property by the apparent owner unless a record of the communication evidences the apparent owner's knowledge of a right to the property. (5) If the insured dies or the insured or beneficiary of an insurance policy otherwise becomes entitled to the proceeds before depletion of the cash surrender value of the policy by operation of an automatic-premium-loan provision or other nonforfeiture provision contained in the policy, the operation shall not prevent the policy from maturing or terminating. Effective: July 14, 2018 History: Created 2018 Ky. Acts ch. 163, sec. 12, effective July 14, 2018.

KRS 393A.130 Knowledge of death of insured or annuitant

393A.130. Knowledge of death of insured or annuitant (1) As used in this section, "death master file" means the United States Social Security Administration Death Master File or other database or service that is at least as comprehensive as the United States Social Security Administration Death Master File for determining that an individual reportedly has died. (2) With respect to a life or endowment insurance policy or annuity contract for which an amount is owed on proof of death, but which has not matured by proof of death of the insured or annuitant, the company has knowledge of the death of an insured or annuitant when: (a) The company receives a death certificate or court order determining that the insured or annuitant has died; (b) The company conducts a comparison for any purpose between a death master file and the names of some or all of the company's insureds or annuitants, finds a match that provides notice that the insured or annuitant has died, and validates the death; (c) The administrator or the administrator's agent conducts a comparison for the purpose of finding matches during an examination conducted under KRS 393A.550 to 393A.650 between a death master file and the names of some or all of the company's insureds or annuitants, finds a match that provides notice that the insured or annuitant has died, and the company validates the death; or (d) The company: 1. Receives notice of the death of the insured or annuitant from an administrator, beneficiary, policy owner, relative of the insured, or trustee or from a personal representative, executor, or other legal representative of the insured's or annuitant's estate; and 2. Validates the death of the insured or annuitant. (3) The following rules apply under this section: (a) A death-master-file match under subsection (2)(b) or (c) of this section occurs if the criteria for an exact or partial match are satisfied as provided by KRS 304.15-420; (b) The death-master-file match shall not constitute proof of death for the purpose of submission to an insurance company of a claim by a beneficiary, annuitant, or owner of the policy or contract for an amount due under an insurance policy or annuity contract; and (c) The death-master-file match or validation of the insured's or annuitant's death shall not alter the requirements for a beneficiary, annuitant, or owner of the policy or contract to make a claim to receive proceeds under the terms of the policy or contract. Effective: July 14, 2018 History: Created 2018 Ky. Acts ch. 163, sec. 13, effective July 14, 2018.

KRS 393A.140 Deposit account for proceeds of life insurance policy or annuity contract

393A.140. Deposit account for proceeds of life insurance policy or annuity contract If proceeds payable under a life or endowment insurance policy or annuity contract are deposited into an account with check or draft-writing privileges for the beneficiary of the policy or contract and, under a supplementary contract not involving annuity benefits other than death benefits, the proceeds are retained by the insurance company or the financial organization where the account is held, the policy or contract includes the assets in the account. Effective: July 14, 2018 History: Created 2018 Ky. Acts ch. 163, sec. 14, effective July 14, 2018.

KRS 393A.150 Address of apparent owner to establish priority

393A.150. Address of apparent owner to establish priority In KRS 393A.150 to 393A.210: (1) The last-known address of an apparent owner shall be any description, code, or other indication of the location of the apparent owner which identifies the state, even if the description, code, or indication of location shall not be sufficient to direct the delivery of first-class United States mail to the apparent owner; (2) If the United States postal zip code associated with the apparent owner is for a post office located in this state, this state shall be deemed to be the state of the last- known address of the apparent owner unless other records associated with the apparent owner specifically identify the physical address of the apparent owner to be in another state; (3) If the address under subsection (2) of this section is in another state, the other state shall be deemed to be the state of the last-known address of the apparent owner; and (4) The address of the apparent owner of a life or endowment insurance policy or annuity contract or its proceeds shall be presumed to be the address of the insured or annuitant if a person other than the insured or annuitant is entitled to the amount owed under the policy or contract and the address of the other person is not known by the insurance company and cannot be determined under KRS 393A.160. Effective: July 14, 2018 History: Created 2018 Ky. Acts ch. 163, sec. 15, effective July 14, 2018.

KRS 393A.160 Address of apparent owner in this state

393A.160. Address of apparent owner in this state The administrator may take custody of property that is presumed abandoned, whether located in this state, another state, or a foreign country if: (1) The last-known address of the apparent owner in the records of the holder is in this state; or (2) The records of the holder do not reflect the identity or last-known address of the apparent owner, but the administrator has determined that the last-known address of the apparent owner is in this state. Effective: July 14, 2018 History: Created 2018 Ky. Acts ch. 163, sec. 16, effective July 14, 2018.

KRS 393A.170 If records show multiple addresses of apparent owner

393A.170. If records show multiple addresses of apparent owner (1) Except as provided in subsection (2) of this section, if records of a holder reflect multiple addresses for an apparent owner and this state is the state of the most recently recorded address, this state may take custody of property presumed abandoned, whether located in this state or another state. (2) If it appears from records of the holder that the most recently recorded address of the apparent owner under subsection (1) of this section is a temporary address and this state is the state of the next most recently recorded address that is not a temporary address, this state may take custody of the property presumed abandoned. Effective: July 14, 2018 History: Created 2018 Ky. Acts ch. 163, sec. 17, effective July 14, 2018.

KRS 393A.180 Holder domiciled in this state

393A.180. Holder domiciled in this state (1) Except as provided in subsection (2) of this section or KRS 393A.160 or 393A.170, the administrator may take custody of property presumed abandoned, whether located in this state, another state, or a foreign country, if the holder is domiciled in this state or is this state or a governmental subdivision, agency, or instrumentality of this state, and: (a) Another state or foreign country shall not be entitled to the property because there is no last-known address of the apparent owner or other person entitled to the property in the records of the holder; or (b) The state or foreign country of the last-known address of the apparent owner or other person entitled to the property does not provide for custodial taking of the property. (2) Property shall not be subject to the custody of the administrator under subsection (1) of this section if the property is specifically exempt from custodial taking under the law of this state or the state or foreign country of the last-known address of the apparent owner. (3) If a holder's state of domicile has changed since the time property was presumed abandoned, the holder's state of domicile in this section shall be deemed to be the state where the holder was domiciled at the time the property was presumed abandoned. Effective: July 14, 2018 History: Created 2018 Ky. Acts ch. 163, sec. 18, effective July 14, 2018.

KRS 393A.190 Custody if transaction took place in this state

393A.190. Custody if transaction took place in this state Except as in KRS 393A.160, 393A.170, or 393A.180, the administrator may take custody of property presumed abandoned whether located in this state or another state if: (1) The transaction out of which the property arose took place in this state; (2) The holder is domiciled in a state that does not provide for the custodial taking of the property, except that if the property is specifically exempt from custodial taking under the law of the state of the holder's domicile, the property shall not be subject to the custody of the administrator; and (3) The last-known address of the apparent owner or other person entitled to the property is unknown or in a state that does not provide for the custodial taking of the property, except that if the property is specifically exempt from custodial taking under the law of the state of the last-known address, the property shall not be subject to the custody of the administrator. Effective: July 14, 2018 History: Created 2018 Ky. Acts ch. 163, sec. 19, effective July 14, 2018.

KRS 393A.200 Traveler's check, money order, or similar instrument

393A.200. Traveler's check, money order, or similar instrument The administrator may take custody of sums payable on a traveler's check, money order, or similar instrument presumed abandoned to the extent permissible under 12 U.S.C. secs. 2501 to 2503, as amended. Effective: July 14, 2018 History: Created 2018 Ky. Acts ch. 163, sec. 20, effective July 14, 2018.

KRS 393A.210 Burden of proof to establish administrator's right to custody

393A.210. Burden of proof to establish administrator's right to custody If the administrator asserts a right to custody of unclaimed property, the administrator has the burden to prove: (1) The existence and amount of the property; (2) The property shall be presumed abandoned; and (3) The property shall be subject to the custody of the administrator. Effective: July 14, 2018 History: Created 2018 Ky. Acts ch. 163, sec. 21, effective July 14, 2018.

KRS 393A.220 Report required by holder

393A.220. Report required by holder (1) A holder of property presumed abandoned and subject to the custody of the administrator shall report in a record to the administrator concerning the property. A holder shall not be required to file a report if the holder has no property that is presumed abandoned. The administrator shall not require a holder to file a paper report. (2) A holder may contract with a third party to make the report required under subsection (1) of this section. (3) Whether or not a holder contracts with a third party under subsection (2) of this section, the holder shall be responsible: (a) To the administrator for the complete, accurate, and timely reporting of property presumed abandoned; and (b) For paying or delivering to the administrator property described in the report. Effective: July 14, 2018 History: Created 2018 Ky. Acts ch. 163, sec. 22, effective July 14, 2018.

KRS 393A.230 Content of report

393A.230. Content of report (1) The report required under KRS 393A.220 shall: (a) Be signed by or on behalf of the holder and verified as to its completeness and accuracy; (b) If filed electronically, be in a secure format approved by the administrator which protects confidential information of the apparent owner in the same manner as required of the administrator and the administrator's agent under KRS 393A.770 to 393A.830; (c) Describe the property; (d) Except for a traveler's check, money order, or similar instrument, contain the name, if known, last-known address, if known, and Social Security number or taxpayer identification number, if known or readily ascertainable, of the apparent owner of property with a value of fifty dollars ($50) or more; (e) For an amount held or owing under a life or endowment insurance policy or annuity contract, contain the name and last-known address of the insured, annuitant, or other apparent owner of the policy or contract and of the beneficiary; (f) For property held in or removed from a safe-deposit box, indicate the location of the property, where it may be inspected by the administrator, and any amounts owed to the holder under KRS 393A.360; (g) Contain the commencement date for determining abandonment under KRS 393A.040 to 393A.140; (h) State that the holder has complied with the notice requirements of KRS 393A.270; (i) Identify property that is a non-freely transferable security and explain why it is a non-freely transferable security; and (j) Contain other information the administrator prescribes. (2) A report under KRS 393A.220 may include in the aggregate items valued under fifty dollars ($50) each. If the report includes items in the aggregate valued under fifty dollars ($50) each, the administrator shall not require the holder to provide the name and address of an apparent owner of an item unless the information is necessary to verify or process a claim in progress by the apparent owner. (3) A report under KRS 393A.220 may include personal information as described in KRS 393A.780(1) about the apparent owner or the apparent owner's property to the extent not otherwise prohibited by federal law. (4) If a holder has changed its name while holding property presumed abandoned or is a successor to another person that previously held the property for the apparent owner, the holder shall include in the report under KRS 393A.220 its former name or the name of the previous holder, if any, and the known name and address of each previous holder of the property. Effective: July 14, 2018 History: Created 2018 Ky. Acts ch. 163, sec. 23, effective July 14, 2018.

KRS 393A.240 When report to be filed

393A.240. When report to be filed (1) Except as otherwise provided in subsection (2) of this section, and subject to subsection (3) of this section, the report under KRS 393A.220 shall be filed before November 1 of each year and cover the twelve (12) months preceding July 1 of that year. (2) Subject to subsection (3) of this section, the report under KRS 393A.220 to be filed by an insurance company shall be filed before May 1 of each year for the immediately preceding calendar year. (3) Before the date for filing the report under KRS 393A.220, the holder of property presumed abandoned may request the administrator extend the time for filing. The administrator may grant an extension. If the extension is granted, the holder may pay or make a partial payment of the amount the holder estimates ultimately will be due. The payment or partial payment terminates accrual of interest on the amount paid. Effective: July 14, 2018 History: Created 2018 Ky. Acts ch. 163, sec. 24, effective July 14, 2018.

KRS 393A.250 Retention of records by holder

393A.250. Retention of records by holder A holder required to file a report under KRS 393A.220 shall retain records for ten (10) years after the later of the date the report was filed or the last date a timely report was due to be filed, unless a shorter period shall be provided by rule of the administrator. The holder may satisfy the requirement to retain records under this section through an agent. The records shall contain: (1) The information required to be included in the report; (2) The date, place, and nature of the circumstances that gave rise to the property right; (3) The amount or value of the property; (4) The last address of the apparent owner, if known to the holder; and (5) If the holder sells, issues, or provides to others for sale or issue in this state traveler's checks, money orders, or similar instruments, other than third-party bank checks, on which the holder is directly liable, a record of the instruments while they remain outstanding indicating the state and date of issue. Effective: July 14, 2018 History: Created 2018 Ky. Acts ch. 163, sec. 25, effective July 14, 2018.

KRS 393A.260 Property reportable and payable or deliverable absent owner demand

393A.260. Property reportable and payable or deliverable absent owner demand Property shall be reportable and payable or deliverable under this chapter even if the owner fails to make demand or present an instrument or document otherwise required to obtain payment. Effective: July 14, 2018 History: Created 2018 Ky. Acts ch. 163, sec. 26, effective July 14, 2018.

KRS 393A.270 Notice to apparent owner by holder

393A.270. Notice to apparent owner by holder (1) Subject to subsection (2) of this section, the holder of property presumed abandoned shall send to the apparent owner notice by first-class United States mail that complies with KRS 393A.280 in a format acceptable to the administrator not more than one hundred eighty (180) days nor less than sixty (60) days before filing the report under KRS 393A.220 if: (a) The holder has in its records an address for the apparent owner which the holder's records do not disclose to be invalid and is sufficient to direct the delivery of first-class United States mail to the apparent owner; and (b) The value of the property is fifty dollars ($50) or more. (2) If an apparent owner has consented to receive electronic-mail delivery from the holder, the holder shall send the notice described in subsection (1) of this section both by first-class United States mail to the apparent owner's last-known mailing address and by electronic mail, unless the holder believes that the apparent owner's electronic-mail address is invalid. Effective: July 14, 2018 History: Created 2018 Ky. Acts ch. 163, sec. 27, effective July 14, 2018.

KRS 393A.280 Contents of notice by holder

393A.280. Contents of notice by holder (1) Notice under KRS 393A.270 shall contain a heading that reads substantially as follows: "Notice. The Commonwealth of Kentucky requires us to notify you that your property may be transferred to the custody of the Kentucky State Treasurer if you do not contact us before (insert date that is thirty (30) days after the date of this notice)." (2) The notice under KRS 393A.270 shall: (a) Identify the nature and, except for property that does not have a fixed value, the value of the property that is the subject of the notice; (b) State that the property shall be turned over to the administrator; (c) State that after the property is turned over to the administrator, an apparent owner that seeks return of the property shall file a claim with the administrator; (d) State that property that is not legal tender of the United States may be sold by the administrator; and (e) Provide instructions that the apparent owner shall follow to prevent the holder from reporting and paying or delivering the property to the administrator. Effective: July 14, 2018 History: Created 2018 Ky. Acts ch. 163, sec. 28, effective July 14, 2018.

KRS 393A.290 Notice by administrator

393A.290. Notice by administrator (1) The administrator shall give notice to an apparent owner that property presumed abandoned and appears to be owned by the apparent owner shall be held by the administrator under this chapter. (2) In providing notice under subsection (1) of this section, the administrator shall: (a) Not be required to use newspaper publication to provide notice; and (b) Maintain a Web site or database accessible by the public and electronically searchable that contains the names reported to the administrator of all apparent owners for whom property is being held by the administrator. (3) The Web site or database maintained under subsection (2)(b) of this section shall include instructions for filing with the administrator a claim to property and a printable claim form with instructions for its use. (4) In addition to giving notice under subsection (2) of this section, the administrator may use printed publication, telecommunication, the Internet, or other media to inform the public of the existence of unclaimed property held by the administrator. Effective: July 14, 2018 History: Created 2018 Ky. Acts ch. 163, sec. 29, effective July 14, 2018.

KRS 393A.300 Cooperation among state officers and agencies to locate apparent owner

393A.300. Cooperation among state officers and agencies to locate apparent owner Unless prohibited by law other than this chapter, on request of the administrator, each officer, agency, board, commission, division, and department of this state, any body politic and corporate created by this state for a public purpose, and each political subdivision of this state shall make its books and records available to the administrator and cooperate with the administrator to determine the current address of an apparent owner of property held by the administrator under this chapter. Effective: July 14, 2018 History: Created 2018 Ky. Acts ch. 163, sec. 30, effective July 14, 2018.

KRS 393A.310 Definition of good faith

393A.310. Definition of good faith In KRS 393A.310 to 393A.390, payment or delivery of property shall be made in good faith if a holder: (1) Had a reasonable basis for believing, based on the facts then known, that the property was required or permitted to be paid or delivered to the administrator under this chapter; or (2) Made payment or delivery: (a) In response to a demand by the administrator or administrator's agent; or (b) Under a guidance or ruling issued by the administrator which the holder reasonably believed required or permitted the property to be paid or delivered. Effective: July 14, 2018 History: Created 2018 Ky. Acts ch. 163, sec. 31, effective July 14, 2018.

KRS 393A.320 Dormancy charge

393A.320. Dormancy charge (1) A holder may deduct a dormancy charge from property required to be paid or delivered to the administrator if: (a) A valid contract between the holder and the apparent owner authorizes imposition of the charge for the apparent owner's failure to claim the property within a specified time; and (b) The holder regularly imposes the charge and regularly does not reverse or otherwise cancel the charge. (2) The amount of the deduction under subsection (1) of this section shall be limited to an amount that shall not be unconscionable considering all relevant factors, including the marginal transactional costs incurred by the holder in maintaining the apparent owner's property and any services received by the apparent owner. Effective: July 14, 2018 History: Created 2018 Ky. Acts ch. 163, sec. 32, effective July 14, 2018.

KRS 393A.330 Payment or delivery of property to administrator

393A.330. Payment or delivery of property to administrator (1) Except as otherwise provided in this section, on filing a report under KRS 393A.220, the holder shall pay or deliver to the administrator the property described in the report. (2) If property in a report under KRS 393A.220 is an automatically renewable deposit and a penalty or forfeiture in the payment of interest would result from paying the deposit to the administrator at the time of the report, the date for payment of the property to the administrator is extended until a penalty or forfeiture no longer would result from payment, if the holder informs the administrator of the extended date. (3) Tangible property in a safe-deposit box shall not be delivered to the administrator until one hundred twenty (120) days after filing the report under KRS 393A.220. (4) If property reported to the administrator under KRS 393A.220 is a security, the administrator may: (a) Make an endorsement, instruction, or entitlement order on behalf of the apparent owner to invoke the duty of the issuer, its transfer agent, or the securities intermediary to transfer the security; or (b) Dispose of the security under KRS 393A.410. (5) If the holder of property reported to the administrator under KRS 393A.220 is the issuer of a certificated security, the administrator may obtain a replacement certificate in physical or book-entry form under KRS 355.8-405. An indemnity bond shall not be required. (6) The administrator shall establish procedures for the registration, issuance, method of delivery, transfer, and maintenance of securities delivered to the administrator by a holder. (7) An issuer, holder, and transfer agent or other person acting under this section under instructions of and on behalf of the issuer or holder shall not be liable to the apparent owner for, and shall be indemnified by the state against, a claim arising with respect to property after the property has been delivered to the administrator. (8) A holder shall not be required to deliver to the administrator a security identified by the holder as a non-freely transferable security. If the administrator or holder determines that a security is no longer a non-freely transferable security, the holder shall deliver the security on the next regular date prescribed for delivery of securities under this chapter. The holder shall make a determination annually whether a security identified in a report filed under KRS 393A.220 as a non-freely transferable security is no longer a non-freely transferable security. (9) (a) If property reported to the administrator is virtual currency, the holder shall liquidate the virtual currency and remit the proceeds to the administrator. (b) The liquidation shall occur anytime within ninety (90) days prior to the filing of the report under KRS 393A.220. (c) The owner shall not have recourse against the holder or the administrator to recover any gain in value that occurs after the liquidation of the virtual currency under this subsection. Effective: June 27, 2019 History: Amended 2019 Ky. Acts ch. 125, sec. 4, effective June 27, 2019. -- Created 2018 Ky. Acts ch. 163, sec. 33, effective July 14, 2018.

KRS 393A.340 Effect of payment or delivery of property to administrator

393A.340. Effect of payment or delivery of property to administrator (1) On payment or delivery of property to the administrator under this chapter, the administrator as agent for the state assumes custody and responsibility for safekeeping the property. A holder that pays or delivers property to the administrator in good faith and substantially complies with KRS 393A.270 and 393A.280 shall be relieved of liability arising thereafter with respect to payment or delivery of the property to the administrator. (2) This state shall defend and indemnify a holder against liability on a claim against the holder resulting from the payment or delivery of property to the administrator made in good faith and after the holder substantially complied with KRS 393A.270 and 393A.280. Effective: July 14, 2018 History: Created 2018 Ky. Acts ch. 163, sec. 34, effective July 14, 2018.

KRS 393A.350 Recovery of property by holder from administrator

393A.350. Recovery of property by holder from administrator (1) A holder that pays money to the administrator under this chapter may file a claim for reimbursement from the administrator of the amount paid if the holder: (a) Paid the money in error; or (b) After paying the money to the administrator, paid money to a person the holder reasonably believed to be entitled to the money. (2) If a claim for reimbursement under subsection (1) of this section is made for a payment made on a negotiable instrument, including a traveler's check, money order, or similar instrument, the holder shall submit proof that the instrument was presented and payment was made to a person the holder reasonably believed entitled to payment. The holder may claim reimbursement even if the payment was made to a person whose claim was made after expiration of a period of limitation on the owner's right to receive or recover property, whether specified by contract, statute, or court order. (3) A holder that delivers property other than money to the administrator under this chapter may file a claim under KRS 393A.510 for return of the property from the administrator if: (a) The holder delivered the property in error; or (b) The apparent owner has claimed the property from the holder. (4) If a claim for return of property under subsection (3) of this section is made, the holder shall include with the claim evidence sufficient to establish that the apparent owner has claimed the property from the holder or that the property was delivered by the holder to the administrator in error. (5) The administrator may determine that an affidavit submitted by a holder is evidence sufficient to establish that the holder shall be entitled to reimbursement or to recover property under this section. (6) A holder shall not be required to pay a fee or other charge for reimbursement or return of property under this section. (7) Not later than ninety (90) days after a claim is filed under subsection (1) or (3) of this section, the administrator shall allow or deny the claim and give the claimant notice of the decision in a record. If the administrator does not take action on a claim during the ninety (90) day period, the claim shall be deemed denied. (8) The claimant may initiate a proceeding under KRS Chapter 13B for review of the administrator's decision or the deemed denial under subsection (7) of this section not later than: (a) Thirty (30) days following receipt of the notice of the administrator's decision; or (b) One hundred twenty (120) days following the filing of a claim under subsection (1) or (3) of this section in the case of a deemed denial under subsection (7) of this section. (9) A final decision in an administrative proceeding initiated under subsection (8) of this section shall be subject to judicial review under KRS Chapter 13B. Effective: July 14, 2018 History: Created 2018 Ky. Acts ch. 163, sec. 35, effective July 14, 2018.

KRS 393A.360 Property removed from safe-deposit box

393A.360. Property removed from safe-deposit box Property removed from a safe-deposit box and delivered under this chapter to the administrator shall be subject to the holder's right to reimbursement for the cost of opening the box and a lien or contract providing reimbursement to the holder for unpaid rent charges for the box. The administrator shall reimburse the holder from the proceeds remaining after deducting the expense incurred by the administrator in selling the property. Effective: July 14, 2018 History: Created 2018 Ky. Acts ch. 163, sec. 36, effective July 14, 2018.

KRS 393A.370 Administrator's options as to custody

393A.370. Administrator's options as to custody (1) The administrator may decline to take custody of property reported under KRS 393A.220 if the administrator determines that: (a) The property has a value less than the estimated expenses of notice and sale of the property; or (b) Taking custody of the property would be unlawful. (2) A holder may pay or deliver property to the administrator before the property shall be presumed abandoned under this chapter if the holder: (a) Sends the apparent owner of the property notice required by KRS 393A.270 and provides the administrator evidence of the holder's compliance with this paragraph; (b) Includes with the payment or delivery a report regarding the property conforming to KRS 393A.230; and (c) First obtains the administrator's consent in a record to accept payment or delivery. (3) A holder's request for the administrator's consent under subsection (2)(c) of this section shall be in a record. If the administrator fails to respond to the request not later than thirty (30) days after receipt of the request, the administrator shall be deemed to consent to the payment or delivery of the property and the payment or delivery shall be considered to have been made in good faith. (4) On payment or delivery of property under subsection (2) of this section, the property shall be presumed abandoned. Effective: July 14, 2018 History: Created 2018 Ky. Acts ch. 163, sec. 37, effective July 14, 2018.

KRS 393A.380 Disposition of property having no substantial value -- Immunity from liability

393A.380. Disposition of property having no substantial value -- Immunity from liability (1) If the administrator takes custody of property delivered under this chapter and later determines that the property has no substantial commercial value or that the cost of disposing of the property will exceed the value of the property, the administrator may return the property to the holder or destroy or otherwise dispose of the property. (2) In disposing of property under subsection (1) of this section, the administrator may deliver the property to the Kentucky Historical Society, or any other museum, historical society, or organization approved by the administrator, and on such terms as the administrator deems appropriate. Upon delivery of the property to a third party described in this subsection, the administrator shall no longer be responsible for the safekeeping of the property. (3) An action or proceeding shall not be commenced against the state, an agency of the state, the administrator, another officer, employee, or agent of the state, or a holder for or because of an act of the administrator under this section, except for intentional misconduct or malfeasance. Effective: July 14, 2018 History: Created 2018 Ky. Acts ch. 163, sec. 38, effective July 14, 2018.

KRS 393A.390 Periods of limitation and repose

393A.390. Periods of limitation and repose (1) Expiration, before, on, or after July 14, 2018, of a period of limitation on an owner's right to receive or recover property, whether specified by contract, statute, or court order, shall not prevent the property from being presumed abandoned or affect the duty of a holder under this chapter to file a report or pay or deliver property to the administrator. (2) The administrator shall not commence an action or proceeding to enforce this chapter with respect to the reporting, payment, or delivery of property more than five (5) years after the holder filed a non-fraudulent report under KRS 393A.220 with the administrator. The parties may agree in a record to extend the limitation in this subsection. (3) The administrator shall not commence an action, proceeding, or examination with respect to a duty of a holder under this chapter more than ten (10) years after the duty arose. Effective: July 14, 2018 History: Created 2018 Ky. Acts ch. 163, sec. 39, effective July 14, 2018.

KRS 393A.400 Public sale of property

393A.400. Public sale of property (1) Subject to KRS 393A.410, the administrator may sell the property no earlier than three (3) years after receipt of property presumed abandoned. (2) Before selling property under subsection (1) of this section, the administrator shall give notice to the public of: (a) The date of the sale; and (b) A reasonable description of the property. (3) A sale under subsection (1) of this section shall be to the highest bidder: (a) At public sale at a location in this state which the administrator determines to be the most favorable market for the property; (b) On the Internet; or (c) On another forum the administrator determines is likely to yield the highest net proceeds of sale. (4) The administrator may decline the highest bid at a sale under this section and reoffer the property for sale if the administrator determines the highest bid is insufficient. (5) If a sale held under this section is to be conducted other than on the Internet, the administrator shall publish at least one (1) notice of the sale, at least three (3) weeks but not more than five (5) weeks before the sale, in a newspaper of general circulation in the county in which the property is sold. Effective: July 14, 2018 History: Created 2018 Ky. Acts ch. 163, sec. 40, effective July 14, 2018.

KRS 393A.410 Disposal of securities

393A.410. Disposal of securities (1) The administrator shall not sell or otherwise liquidate a security until three (3) years after the administrator receives the security and gives the apparent owner notice under KRS 393A.290 that the administrator holds the security. (2) The administrator shall not sell a security listed on an established stock exchange for less than the price prevailing on the exchange at the time of sale. The administrator may sell a security not listed on an established exchange by any commercially reasonable method. Effective: July 14, 2018 History: Created 2018 Ky. Acts ch. 163, sec. 41, effective July 14, 2018.

KRS 393A.420 Recovery of securities or value by owner

393A.420. Recovery of securities or value by owner (1) If securities are sold by the administrator before the expiration of three (3) years after their delivery to the administrator, a person making a claim under this chapter before the end of the three (3) year period shall be entitled to the proceeds of the sale of the securities or the market value of the securities at the time the claim is made, plus dividends, interest, and other increments up to the time the claim is made, less any deduction for expenses of the sale. (2) A person making a claim under this chapter after the expiration of the three (3) year period shall be entitled to receive the securities delivered to the administrator by the holder, if the securities remain in the custody of the administrator, or the net proceeds received from the sale, and shall not be entitled to receive any appreciation in the value of the property occurring after the delivery to the administrator. Effective: July 14, 2018 History: Created 2018 Ky. Acts ch. 163, sec. 42, effective July 14, 2018.

KRS 393A.430 Purchaser owns property after sale

393A.430. Purchaser owns property after sale A purchaser of property at a sale conducted by the administrator under this chapter takes the property free of all claims of the owner, a previous holder, or a person claiming through the owner or holder. The administrator shall execute documents necessary to complete the transfer of ownership to the purchaser. Effective: July 14, 2018 History: Created 2018 Ky. Acts ch. 163, sec. 43, effective July 14, 2018.

KRS 393A.440 Military medal or decoration

393A.440. Military medal or decoration (1) The administrator shall not sell a medal or decoration awarded for military service in the Armed Forces of the United States. (2) The administrator, with the consent of the respective organization under paragraphs (a) to (c) of this subsection, may deliver a medal or decoration described in subsection (1) of this section to be held in custody for the owner, to: (a) A military veterans organization qualified under 26 U.S.C. sec. 501(c)(19); (b) The agency that awarded the medal or decoration; (c) The Kentucky Historical Society, or any museum or historical society approved by the administrator; or (d) A governmental entity. (3) On delivery under subsection (2) of this section, the administrator shall not be responsible for safekeeping the medal or decoration. Effective: July 14, 2018 History: Created 2018 Ky. Acts ch. 163, sec. 44, effective July 14, 2018.

KRS 393A.450 Deposit of funds by administrator

393A.450. Deposit of funds by administrator The administrator shall deposit in the State Treasury all funds received under this chapter, including proceeds from the sale of property under KRS 393A.400 to 393A.440. Effective: July 14, 2018 History: Created 2018 Ky. Acts ch. 163, sec. 45, effective July 14, 2018.

KRS 393A.460 Administrator to retain records of property

393A.460. Administrator to retain records of property The administrator shall: (1) Record and retain the name and last-known address of each person shown on a report filed under KRS 393A.220 to be the apparent owner of property delivered to the administrator; (2) Record and retain the name and last-known address of each insured or annuitant and beneficiary shown on the report; (3) For each policy of insurance or annuity contract listed in the report of an insurance company, record and retain the policy or account number, the name of the company, and the amount due or paid; and (4) For each apparent owner listed in the report, record and retain the name of the holder that filed the report and the amount due or paid. Effective: July 14, 2018 History: Created 2018 Ky. Acts ch. 163, sec. 46, effective July 14, 2018.

KRS 393A.470 Expenses and service charges of administrator

393A.470. Expenses and service charges of administrator (1) In addition to the expenses permitted under KRS 393.250, the administrator may deduct: (a) Expenses of disposition of property delivered to the administrator under this chapter; (b) Costs of mailing and publication in connection with property delivered to the administrator under this chapter; (c) Reasonable service charges; and (d) Expenses incurred in examining records of or collecting property from a putative holder or holder. (2) In addition to any expenses in subsection (1) of this section, the administrator shall deduct the proportionate costs of advertisement and operations from the amount of any claim allowed in an amount greater than ten dollars ($10). The administrator shall deduct at least one dollar ($1). Effective: July 14, 2018 History: Created 2018 Ky. Acts ch. 163, sec. 47, effective July 14, 2018.

KRS 393A.480 Administrator holds property as custodian for owner

393A.480. Administrator holds property as custodian for owner Property received by the administrator under this chapter shall be held in custody for the benefit of the owner and shall not be owned by the state. Effective: July 14, 2018 History: Created 2018 Ky. Acts ch. 163, sec. 48, effective July 14, 2018.

KRS 393A.490 Claim of another state to recover property

393A.490. Claim of another state to recover property (1) If the administrator knows that property held by the administrator under this chapter is subject to a superior claim of another state, the administrator shall: (a) Report and pay or deliver the property to the other state; or (b) Return the property to the holder so that the holder may pay or deliver the property to the other state. (2) The administrator shall not be required to enter into an agreement to transfer property to the other state under subsection (1) of this section. Effective: July 14, 2018 History: Created 2018 Ky. Acts ch. 163, sec. 49, effective July 14, 2018.

KRS 393A.500 When property subject to recovery by another state

393A.500. When property subject to recovery by another state (1) Property held under this chapter by the administrator shall be subject to the right of another state to take custody of the property if: (a) The property was paid or delivered to the administrator because the records of the holder did not reflect a last-known address in the other state of the apparent owner and: 1. The other state establishes that the last-known address of the apparent owner or other person entitled to the property was in the other state; or 2. Under the law of the other state, the property has become subject to a claim by the other state of abandonment; (b) The records of the holder did not accurately identify the owner of the property, the last-known address of the owner was in another state, and, under the law of the other state, the property has become subject to a claim by the other state of abandonment; (c) The property was subject to the custody of the administrator of this state under KRS 393A.190 and, under the law of the state of domicile of the holder, the property has become subject to a claim of abandonment by the state of domicile of the holder; or (d) The property: 1. Is a sum payable on a traveler's check, money order, or similar instrument that was purchased in the other state and delivered to the administrator under KRS 393A.200; and 2. Under the law of the other state, has become subject to a claim by the other state of abandonment. (2) A claim by another state to recover property under this section shall be presented in a form prescribed by the administrator, unless the administrator waives presentation of the form. (3) The administrator shall decide a claim under this section not later than ninety (90) days after it is presented. If the administrator determines that the other state is entitled under subsection (1) of this section to custody of the property, the administrator shall allow the claim and pay or deliver the property to the other state. (4) The administrator may require another state, before recovering property under this section, to agree to indemnify this state and its agents, officers, and employees against any liability on a claim to the property. Effective: July 14, 2018 History: Created 2018 Ky. Acts ch. 163, sec. 50, effective July 14, 2018.

KRS 393A.510 Claim for property by person claiming to be owner

393A.510. Claim for property by person claiming to be owner (1) A person claiming to be the owner of property held under this chapter by the administrator may file a claim for the property on a form prescribed by the administrator. The claimant shall verify the claim as to its completeness and accuracy. (2) The administrator may permit persons claiming to be the owner of property to submit claims in electronic format. (3) The administrator may waive the requirement in subsection (1) of this section and may pay or deliver property directly to a person if: (a) The person receiving the property or payment is shown to be the apparent owner included on a report filed under KRS 393A.220; (b) The administrator reasonably believes the person is entitled to receive the property or payment; and (c) The property has a value of less than two hundred fifty dollars ($250). Effective: July 14, 2018 History: Created 2018 Ky. Acts ch. 163, sec. 51, effective July 14, 2018.

KRS 393A.520 When administrator must honor claim for property

393A.520. When administrator must honor claim for property (1) The administrator shall pay or deliver property to a claimant under KRS 393A.510(1) if the administrator receives evidence sufficient to establish to the satisfaction of the administrator that the claimant is the owner of the property. (2) Not later than ninety (90) days after a claim is filed under KRS 393A.510(1), the administrator shall allow or deny the claim and give the claimant notice in a record of the decision. (3) If the claim is denied under subsection (2) of this section: (a) The administrator shall inform the claimant of the reason for the denial and specify what additional evidence, if any, is required for the claim to be allowed; (b) The claimant may file an amended claim with the administrator or request an administrative hearing under KRS 393A.540; and (c) The administrator shall consider an amended claim filed under paragraph (b) of this subsection as an initial claim. (4) If the administrator does not take action on a claim during the ninety (90) day period following the filing of a claim under KRS 393A.510(1), the claim shall be deemed denied. Effective: July 14, 2018 History: Created 2018 Ky. Acts ch. 163, sec. 52, effective July 14, 2018.

KRS 393A.530 Allowance of claim for property

393A.530. Allowance of claim for property (1) Not later than thirty (30) days after a claim is allowed under KRS 393A.520(2), the administrator shall pay or deliver to the owner the property or pay to the owner the net proceeds of a sale of the property. On request of the owner, the administrator may sell or liquidate a security and pay the net proceeds to the owner, even if the security had been held by the administrator for less than three (3) years or the administrator has not complied with the notice requirements under KRS 393A.410. (2) Property held under this chapter by the administrator shall be subject to a claim for the payment of an enforceable debt the owner owes in this state for: (a) Child-support arrearages, including child-support collection costs and child- support arrearages that are combined with maintenance; (b) A civil or criminal fine or penalty, court costs, a surcharge, or restitution imposed by a final order of an administrative agency or a final court judgment; or (c) State or local taxes, penalties, and interest that have been determined to be delinquent or as to which notice has been recorded with the county sheriff or local taking authority. (3) Before delivery or payment to an owner under subsection (1) of this section of property or payment to the owner of net proceeds of a sale of the property, the administrator first shall apply the property or net proceeds to a debt under subsection (2) of this section the administrator determines is owed by the owner. The administrator shall pay the amount to the appropriate state or local agency and notify the owner of the payment. (4) The administrator may make periodic inquiries of state and local agencies in the absence of a claim filed under KRS 393A.510 to determine whether an apparent owner included in the unclaimed-property records of this state has enforceable debts described in subsection (2) of this section. The administrator first shall apply the property or net proceeds of a sale of property held by the administrator to a debt under subsection (2) of this section of an apparent owner which appears in the records of the administrator and deliver the amount to the appropriate state or local agency. The administrator shall notify the apparent owner of the payment. Effective: July 14, 2018 History: Created 2018 Ky. Acts ch. 163, sec. 53, effective July 14, 2018.

KRS 393A.540 Filing a claim under KRS 393A.510 -- Request for administrative hearing

393A.540. Filing a claim under KRS 393A.510 -- Request for administrative hearing Not later than one (1) year after filing a claim under KRS 393A.510(1), the claimant may request in writing an administrative hearing, to be conducted in accordance with KRS Chapter 13B. Effective: July 14, 2018 History: Created 2018 Ky. Acts ch. 163, sec. 54, effective July 14, 2018.

KRS 393A.550 Verified report of property

393A.550. Verified report of property If a person does not file a report required by KRS 393A.220 or the administrator believes that a person may have filed an inaccurate, incomplete, or false report, the administrator may require the person to file a verified report in a form prescribed by the administrator. The verified report shall: (1) State whether the person is holding property reportable under this chapter; (2) Describe property not previously reported or about which the administrator has inquired; (3) Specifically identify property described under subsection (2) of this section about which there is a dispute whether it is reportable under this chapter; and (4) State the amount or value of the property. Effective: July 14, 2018 History: Created 2018 Ky. Acts ch. 163, sec. 55, effective July 14, 2018.

KRS 393A.560 Examination of records to determine compliance

393A.560. Examination of records to determine compliance The administrator, at reasonable times and on reasonable notice, may: (1) Examine the records of a person, including examination of appropriate records in the possession of an agent of the person under examination, if the records are reasonably necessary to determine whether the person has complied with this chapter; (2) Issue an administrative subpoena requiring the person or agent of the person to make records available for examination; and (3) Bring an action seeking judicial enforcement of the subpoena. Effective: July 14, 2018 History: Created 2018 Ky. Acts ch. 163, sec. 56, effective July 14, 2018.

KRS 393A.570 Administrative regulations for conducting examination

393A.570. Administrative regulations for conducting examination (1) The administrator shall promulgate administrative regulations in accordance with KRS Chapter 13A governing procedures and standards for an examination under KRS 393A.560, including rules for use of an estimation, extrapolation, and statistical sampling in conducting an examination. (2) An examination under KRS 393A.560 shall be performed under administrative regulations promulgated under subsection (1) of this section and with generally accepted examination practices and standards applicable to an unclaimed-property examination. (3) If a person subject to examination under KRS 393A.560 has filed the reports required under KRS 393A.220 and 393A.550 and has retained the records required by KRS 393A.250, the following shall apply to the examination: (a) The examination shall include a review of the person's records; (b) The examination shall not be based on an estimate unless the person expressly consents in a record to the use of an estimate; and (c) The person conducting the examination shall consider the evidence presented in good faith by the person in preparing the findings of the examination under KRS 393A.610. Effective: July 14, 2018 History: Created 2018 Ky. Acts ch. 163, sec. 57, effective July 14, 2018.

KRS 393A.580 Records obtained in examination

393A.580. Records obtained in examination Records obtained and records, including work papers, compiled by the administrator in the course of conducting an examination under KRS 393A.560: (1) Shall be subject to the confidentiality and security provisions of KRS 393A.770 to 393A.830 and are not public records; (2) May be used by the administrator in an action to collect property or otherwise enforce this chapter; (3) May be used in a joint examination conducted with another state, the United States, a foreign country or subordinate unit of a foreign country, or any other governmental entity if the governmental entity conducting the examination is legally bound to maintain the confidentiality and security of information obtained from a person subject to examination in a manner substantially equivalent to KRS 393A.770 to 393A.830; (4) Shall be disclosed, on request, to the person that administers the unclaimed property law of another state for that state's use in circumstances equivalent to circumstances described in KRS 393A.550 to 393A.650, if the other state is required to maintain the confidentiality and security of information obtained in a manner substantially equivalent to KRS 393A.770 to 393A.830; (5) Shall be produced by the administrator under an administrative or judicial subpoena or administrative or court order; and (6) Shall be produced by the administrator on request of the person subject to the examination in an administrative or judicial proceeding relating to the property. Effective: July 14, 2018 History: Created 2018 Ky. Acts ch. 163, sec. 58, effective July 14, 2018.

KRS 393A.590 Evidence of unpaid debt or undischarged obligation

393A.590. Evidence of unpaid debt or undischarged obligation (1) A record of a putative holder showing an unpaid debt or undischarged obligation shall be prima facie evidence of the debt or obligation. (2) A putative holder may establish by a preponderance of the evidence that there is no unpaid debt or undischarged obligation for a debt or obligation described in subsection (1) of this section or that the debt or obligation was not, or no longer is, a fixed and certain obligation of the putative holder. (3) A putative holder may overcome prima facie evidence under subsection (1) of this section by establishing by a preponderance of the evidence that a check, draft, or similar instrument was: (a) Issued as an unaccepted offer in settlement of an unliquidated amount; (b) Issued but later was replaced with another instrument because the earlier instrument was lost or contained an error that was corrected; (c) Issued to a party affiliated with the issuer; (d) Paid, satisfied, or discharged; (e) Issued in error; (f) Issued without consideration; (g) Issued but there was a failure of consideration; (h) Voided not later than ninety (90) days after issuance for a valid business reason set forth in a contemporaneous record; or (i) Issued but not delivered to the third-party payee for a sufficient reason recorded within a reasonable time after issuance. (4) In asserting a defense under this section, a putative holder may present evidence of a course of dealing between the putative holder and the apparent owner or of custom and practice. Effective: July 14, 2018 History: Created 2018 Ky. Acts ch. 163, sec. 59, effective July 14, 2018.

KRS 393A.600 Failure of person examined to retain records

393A.600. Failure of person examined to retain records If a person subject to examination under KRS 393A.560 does not retain the records required by KRS 393A.250, the administrator may determine the value of property due using a reasonable method of estimation based on all information available to the administrator, including extrapolation and use of statistical sampling when appropriate and necessary, consistent with examination procedures and standards adopted under KRS 393A.570. Effective: July 14, 2018 History: Created 2018 Ky. Acts ch. 163, sec. 60, effective July 14, 2018.

KRS 393A.610 Report to person whose records were examined

393A.610. Report to person whose records were examined At the conclusion of an examination under KRS 393A.560, the administrator shall provide to the person whose records were examined a complete and unredacted examination report that specifies: (1) The work performed; (2) The property types reviewed; (3) The methodology of any estimation technique, extrapolation, or statistical sampling used in conducting the examination; (4) Each calculation showing the value of property determined to be due; and (5) The findings of the person conducting the examination. Effective: July 14, 2018 History: Created 2018 Ky. Acts ch. 163, sec. 61, effective July 14, 2018.

KRS 393A.620 Complaint to administrator about conduct of person conducting examination

393A.620. Complaint to administrator about conduct of person conducting examination (1) If a person subject to examination under KRS 393A.560 believes the person conducting the examination has made an unreasonable or unauthorized request or is not proceeding expeditiously to complete the examination, the person in a record may ask the administrator to intervene and take appropriate remedial action, including countermanding the request of the person conducting the examination, imposing a time limit for completion of the examination, or reassigning the examination to another person. (2) If a person in a record requests a conference with the administrator to present matters that are the basis of a request under subsection (1) of this section, the administrator shall hold the conference not later than thirty (30) days after receiving the request. The administrator may hold the conference in person, by telephone, or by electronic means. (3) If a conference is held under subsection (2) of this section, not later than thirty (30) days after the conference ends, the administrator shall provide a report in a record of the conference to the person that requested the conference. Effective: July 14, 2018 History: Created 2018 Ky. Acts ch. 163, sec. 62, effective July 14, 2018.

KRS 393A.630 Administrator's contract with another to conduct examination

393A.630. Administrator's contract with another to conduct examination (1) As used in this section, "related to the administrator" means an individual who is: (a) The administrator's spouse, partner in a civil union, domestic partner, or reciprocal beneficiary; (b) The administrator's child, stepchild, grandchild, parent, stepparent, sibling, stepsibling, half-sibling, aunt, uncle, niece, or nephew; (c) A spouse, partner in a civil union, domestic partner, or reciprocal beneficiary of an individual in paragraph (b) of this subsection; or (d) Any individual residing in the administrator's household. (2) The administrator may contract with a person to conduct an examination under KRS 393A.550 to 393A.650. (3) If the person with whom the administrator contracts under subsection (2) of this section is: (a) An individual, the individual shall not be related to the administrator; or (b) A business entity, the entity shall not be owned in whole or in part by the administrator or an individual related to the administrator. (4) If the administrator contracts with a person under subsection (2) of this section: (a) The contract may provide for compensation of the person based on a fixed fee, hourly fee, or contingent fee; (b) A contingent fee arrangement shall not provide for a payment that exceeds ten percent (10%) of the amount or value of property paid or delivered as a result of the examination; and (c) On request by a person subject to examination by a contractor, the administrator shall deliver to the person a complete and unredacted copy of the contract and any contract between the contractor and a person employed or engaged by the contractor to conduct the examination. (5) A contract under subsection (2) of this section shall be subject to KRS 61.870 to 61.884. Effective: July 14, 2018 History: Created 2018 Ky. Acts ch. 163, sec. 63, effective July 14, 2018.

KRS 393A.640 Limit on future employment

393A.640. Limit on future employment The administrator or an individual employed by the administrator who participates in, recommends, or approves the award of a contract under KRS 393A.630 on or after July 14, 2018, shall not be employed by, contract with, or compensated in any capacity by the contractor or an affiliate of the contractor for two (2) years after the latest of participation in, recommendation of, or approval of the award or conclusion of the contract. Effective: July 14, 2018 History: Created 2018 Ky. Acts ch. 163, sec. 64, effective July 14, 2018.

KRS 393A.650 Determination of liability for unreported reportable property

393A.650. Determination of liability for unreported reportable property If the administrator determines from an examination conducted under KRS 393A.560 that a putative holder failed or refused to pay or deliver to the administrator property which is reportable under this chapter, the administrator shall issue a determination of the putative holder's liability to pay or deliver and give notice in a record to the putative holder of the determination. Effective: July 14, 2018 History: Created 2018 Ky. Acts ch. 163, sec. 65, effective July 14, 2018.

KRS 393A.660 Informal conference

393A.660. Informal conference (1) Not later than thirty (30) days after receipt of a notice under KRS 393A.650, the putative holder may request an informal conference with the administrator to review the determination. Except as otherwise provided in this section, the administrator may designate an employee to act on behalf of the administrator. (2) If a putative holder makes a timely request under subsection (1) of this section for an informal conference: (a) Not later than twenty (20) days after the date of the request, the administrator shall set the time and place of the conference; (b) The administrator shall give the putative holder notice in a record of the time and place of the conference; (c) The conference may be held in person, by telephone, or by electronic means, as determined by the administrator; (d) The request tolls the ninety (90) day period under KRS 393A.680 and 393A.690 until notice of a decision under paragraph (g) of this subsection has been given to the putative holder or the putative holder withdraws the request for the conference; (e) The conference may be postponed, adjourned, and reconvened as the administrator determines appropriate; (f) The administrator or administrator's designee with the approval of the administrator may modify a determination made under KRS 393A.650 or withdraw it; and (g) The administrator shall issue a decision in a record and provide a copy of the record to the putative holder and examiner not later than twenty (20) days after the conference ends. (3) A conference under subsection (2) of this section shall not be an administrative remedy and shall not be a contested case subject to KRS Chapter 13B. An oath shall not be required and rules of evidence shall not apply in the conference. (4) At a conference under subsection (2) of this section, the putative holder shall be given an opportunity to confer informally with the administrator and the person that examined the records of the putative holder to: (a) Discuss the determination made under KRS 393A.650; and (b) Present any issue concerning the validity of the determination. (5) If the administrator fails to act within the period prescribed in subsection (2)(a) or (g) of this section, the failure shall not affect a right of the administrator, except that interest shall not accrue on the amount for which the putative holder was determined to be liable under KRS 393A.650 during the period in which the administrator failed to act until the earlier of: (a) The date under KRS 393A.680 the putative holder initiates administrative review or files an action under KRS 393A.690; or (b) Ninety (90) days after the putative holder received notice of the administrator's determination under KRS 393A.680 if no review was initiated under KRS 393A.680 and no action was filed under KRS 393A.690. (6) The administrator may hold an informal conference with a putative holder about a determination under KRS 393A.650 without a request at any time before the putative holder initiates administrative review under KRS 393A.680 or files an action under KRS 393A.690. (7) Interest and penalties under KRS 393A.730 continue to accrue on property not reported, paid, or delivered as required by this chapter after the initiation, and during the pendency, of an informal conference under this section. Effective: July 14, 2018 History: Created 2018 Ky. Acts ch. 163, sec. 66, effective July 14, 2018.

KRS 393A.670 Review of administrator's determination

393A.670. Review of administrator's determination A putative holder may seek relief from a determination under KRS 393A.650 by: (1) Administrative review under KRS 393A.680; or (2) Judicial review under KRS 393A.690. Effective: July 14, 2018 History: Created 2018 Ky. Acts ch. 163, sec. 67, effective July 14, 2018.

KRS 393A.680 Administrative review

393A.680. Administrative review (1) Not later than ninety (90) days after receiving notice of the administrator's determination under KRS 393A.650, a putative holder may initiate a proceeding under KRS Chapter 13B for review of the administrator's determination. (2) A final decision in an administrative proceeding initiated under subsection (1) of this section shall be subject to judicial review under KRS Chapter 13B. Effective: July 14, 2018 History: Created 2018 Ky. Acts ch. 163, sec. 68, effective July 14, 2018.

KRS 393A.690 Judicial remedy

393A.690. Judicial remedy (1) Not later than ninety (90) days after receiving notice of the administrator's determination under KRS 393A.650, the putative holder may: (a) File an action against the administrator in the appropriate court challenging the administrator's determination of liability and seeking a declaration that the determination is unenforceable, in whole or in part; or (b) Pay the amount or deliver the property determined by the administrator to be paid or delivered to the administrator and, not later than six (6) months after payment or delivery, file an action against the administrator in the appropriate court for a refund of all or part of the amount paid or return of all or part of the property delivered. (2) If a putative holder pays or delivers property the administrator determined shall be paid or delivered to the administrator at any time after the putative holder files an action under subsection (1)(a) of this section, the court shall continue the action as if it had been filed originally as an action for a refund or return of property under subsection (1)(b) of this section. Effective: July 14, 2018 History: Created 2018 Ky. Acts ch. 163, sec. 69, effective July 14, 2018.

KRS 393A.700 Judicial action to enforce liability

393A.700. Judicial action to enforce liability (1) If a determination under KRS 393A.650 becomes final and not subject to administrative or judicial review, the administrator may commence an action in the court or in an appropriate court of another state to enforce the determination and secure payment or delivery of past due, unpaid, or undelivered property. The action shall be brought not later than one (1) year after the determination becomes final. (2) In an action under subsection (1) of this section, if no court in this state has jurisdiction over the defendant, the administrator may commence an action in any court having jurisdiction over the defendant. Effective: July 14, 2018 History: Created 2018 Ky. Acts ch. 163, sec. 70, effective July 14, 2018.

KRS 393A.710 Interstate and international agreement -- Cooperation

393A.710. Interstate and international agreement -- Cooperation (1) Subject to subsection (2) of this section, the administrator may: (a) Exchange information with another state or foreign country relating to property presumed abandoned or relating to the possible existence of property presumed abandoned; and (b) Authorize in a record another state or foreign country or a person acting on behalf of the other state or country to examine its records of a putative holder as provided in KRS 393A.550 to 393A.650. (2) An exchange or examination under subsection (1) of this section may be done only if the state or foreign country has confidentiality and security requirements substantially equivalent to those in KRS 393A.770 to 393A.830 or agrees in a record to be bound by this state's confidentiality and security requirements. Effective: July 14, 2018 History: Created 2018 Ky. Acts ch. 163, sec. 71, effective July 14, 2018.

KRS 393A.720 Action involving another state or foreign country

393A.720. Action involving another state or foreign country (1) The administrator may join another state or foreign country to examine and seek enforcement of this chapter against a putative holder. (2) On request of another state or foreign country, the Attorney General may commence an action on behalf of the other state or country to enforce, in this state, the law of the other state or country against a putative holder subject to a claim by the other state or country, if the other state or country agrees to pay costs incurred by the Attorney General in the action. (3) The administrator may request the official authorized to enforce the unclaimed property law of another state or foreign country to commence an action to recover property in the other state or country on behalf of the administrator. This state shall pay the costs, including reasonable attorney's fees and expenses, incurred by the other state or foreign country in an action under this subsection. (4) The administrator may pursue an action on behalf of this state to recover property subject to this chapter but delivered to the custody of another state if the administrator believes the property is subject to the custody of the administrator. (5) The administrator may retain an attorney in this state, another state, or a foreign country to commence an action to recover property on behalf of the administrator and may agree to pay attorney's fees based in whole or in part on a fixed fee, hourly fee, or a percentage of the amount or value of property recovered in the action. (6) Expenses incurred by this state in an action under this section may be paid from property received under this chapter or the net proceeds of the property. Expenses paid to recover property shall not be deducted from the amount that is subject to a claim under this chapter by the owner. Effective: July 14, 2018 History: Created 2018 Ky. Acts ch. 163, sec. 72, effective July 14, 2018.

KRS 393A.730 Interest and penalty for failure to act in timely manner

393A.730. Interest and penalty for failure to act in timely manner (1) A holder that fails to report, pay, or deliver property within the time prescribed by this chapter shall pay to the administrator interest at the tax interest rate determined under KRS 131.183 on the property or value of the property from the date the property should have been reported, paid, or delivered to the administrator until the date reported, paid, or delivered. (2) Except as otherwise provided in KRS 393A.740 or 393A.750, the administrator may require a holder that fails to report, pay, or deliver property within the time prescribed by this chapter to pay to the administrator, in addition to interest included under subsection (1) of this section, a civil penalty of two hundred dollars ($200) for each day the duty is not performed, up to a cumulative maximum amount of five thousand dollars ($5,000). Effective: July 14, 2018 History: Created 2018 Ky. Acts ch. 163, sec. 73, effective July 14, 2018.

KRS 393A.740 Other civil penalties

393A.740. Other civil penalties (1) If a holder enters into a contract or other arrangement for the purpose of evading an obligation under this chapter or otherwise willfully fails to perform a duty imposed on the holder under this chapter, the administrator may require the holder to pay the administrator, in addition to interest as provided in KRS 393A.730, a civil penalty of one thousand dollars ($1,000) for each day the obligation is evaded or the duty is not performed, up to a cumulative maximum amount of twenty-five thousand dollars ($25,000), plus twenty-five percent (25%) of the amount or value of property that should have been but was not reported, paid, or delivered as a result of the evasion or failure to perform. (2) If a holder makes a fraudulent report or files a report which fails to provide all necessary information in their possession under this chapter, the administrator may require the holder to pay to the administrator, in addition to interest under KRS 393A.730, a civil penalty of one thousand dollars ($1,000) for each day from the date the report was made until corrected, up to a cumulative maximum of twenty- five thousand dollars ($25,000), plus twenty-five percent (25%) of the amount or value of any property that should have been reported but was not included in the report or was underreported. Effective: July 15, 2026 History: Amended 2026 Ky. Acts ch. 78, sec. 3, effective July 15, 2026. -- Created 2018 Ky. Acts ch. 163, sec. 74, effective July 14, 2018.

KRS 393A.750 Waiver of interest and penalty

393A.750. Waiver of interest and penalty The administrator: (1) May waive, in whole or in part, interest under KRS 393A.730(1) and penalties under KRS 393A.730(2) or 393A.740; and (2) Shall waive a penalty under KRS 393A.730(2) if the administrator determines that the holder acted in good faith and without negligence. Effective: July 14, 2018 History: Created 2018 Ky. Acts ch. 163, sec. 75, effective July 14, 2018.

KRS 393A.760 Right of agent of apparent owner to recover property held by administrator

393A.760. Right of agent of apparent owner to recover property held by administrator (1) An apparent owner that contracts with another person to locate, deliver, recover, or assist in the location, delivery, or recovery of property of the apparent owner which is held by the administrator may designate the person as the agent of the apparent owner. The designation shall be in a record signed by the apparent owner. (2) The administrator shall give the agent of the apparent owner all information concerning the property which the apparent owner is entitled to receive, including information that otherwise is confidential information under KRS 393A.780. (3) If authorized by the apparent owner, the agent of the apparent owner may bring an action against the administrator on behalf of and in the name of the apparent owner. Effective: July 14, 2018 History: Created 2018 Ky. Acts ch. 163, sec. 76, effective July 14, 2018.

KRS 393A.770 Definitions -- Applicability

393A.770. Definitions -- Applicability (1) As used in KRS 393A.770 to 393A.830, "personal information" means: (a) Information that identifies or reasonably can be used to identify an individual, such as first and last name in combination with the individual's: 1. Social Security number or other government-issued number or identifier; 2. Date of birth; 3. Home or physical address; 4. Electronic-mail address or other online contact information or Internet provider address; 5. Financial account number or credit or debit card number; 6. Biometric data, health or medical data, or insurance information; or 7. Passwords or other credentials that permit access to an online or other account; (b) Personally identifiable financial or insurance information, including nonpublic personal information defined by applicable federal law; and (c) Any combination of data that, if accessed, disclosed, modified, or destroyed without authorization of the owner of the data or if lost or misused, would require notice or reporting under KRS 365.720 to 365.730 and federal privacy and data security law, whether or not the administrator or the administrator's agent is subject to the law. (2) Any provision of KRS 393A.770 to 393A.830 that applies to the administrator or the administrator's records applies to an administrator's agent or the agent's records. Effective: July 14, 2018 History: Created 2018 Ky. Acts ch. 163, sec. 77, effective July 14, 2018.

KRS 393A.780 Confidential information

393A.780. Confidential information (1) Except as otherwise provided in this chapter, the following are confidential and exempt from public inspection or disclosure: (a) Records of the administrator and the administrator's agent related to the administration of this chapter; (b) Reports and records of a holder in the possession of the administrator or the administrator's agent; and (c) Personal information and other information derived or otherwise obtained by or communicated to the administrator or the administrator's agent from an examination under this chapter of the records of a person. (2) A record or other information that is confidential under law of this state other than this chapter, another state, or the United States continues to be confidential when disclosed or delivered under this chapter to the administrator or administrator's agent. Effective: July 14, 2018 History: Created 2018 Ky. Acts ch. 163, sec. 78, effective July 14, 2018.

KRS 393A.790 When confidential information may be disclosed

393A.790. When confidential information may be disclosed (1) When reasonably necessary to enforce or implement this chapter, the administrator may disclose confidential information concerning property held by the administrator or the administrator's agent only to: (a) An apparent owner or the apparent owner's personal representative, attorney, other legal representative, relative, or agent designated under KRS 393A.760 to have the information; (b) The personal representative, executor, other legal representative, relative of a deceased apparent owner, agent designated under KRS 393A.760 by the deceased apparent owner, or a person entitled to inherit from the deceased apparent owner; (c) Another department or agency of this state or the United States; (d) The person that administers the unclaimed property law of another state, if the other state accords substantially reciprocal privileges to the administrator of this state if the other state is required to maintain the confidentiality and security of information obtained in a manner substantially equivalent to KRS 393A.770 to 393A.830; or (e) A person subject to an examination as required by KRS 393A.580(6). (2) Except as otherwise provided in KRS 393A.780(1), the administrator shall include on the Web site or in the database required by KRS 393A.290(2)(b) the name of each apparent owner of property held by the administrator. The administrator may include in published notices, printed publications, telecommunications, the Internet, or other media and on the Web site or in the database additional information concerning the apparent owner's property if the administrator believes the information will assist in identifying and returning property to the owner and does not disclose personal information except the home or physical address of an apparent owner. (3) The administrator and the administrator's agent shall not use confidential information provided to them or in their possession, except as expressly authorized by this chapter or required by law other than this chapter. Effective: July 14, 2018 History: Created 2018 Ky. Acts ch. 163, sec. 79, effective July 14, 2018. Legislative Research Commission Note (7/14/2018). Although 2018 Ky. Acts ch. 163, sec. 79, contained a citation to "Section 60 of this Act" (codified as KRS 393A.600) in subsection (1)(e) of this statute, it is clear from the context that Section 58 (codified as KRS 393A.580) was intended, and this manifest clerical or typographical error was corrected in codification under the authority of KRS 7.136.

KRS 393A.800 Confidentiality agreement

393A.800. Confidentiality agreement A person to be examined under KRS 393A.560 may require, as a condition of disclosure of the records of the person to be examined, that each person having access to the records disclosed in the examination execute and deliver to the person to be examined a confidentiality agreement that: (1) Is in a form that is reasonably satisfactory to the administrator; and (2) Requires the person having access to the records to comply with the provisions of KRS 393A.770 to 393A.830 applicable to the person. Effective: July 14, 2018 History: Created 2018 Ky. Acts ch. 163, sec. 80, effective July 14, 2018.

KRS 393A.810 No confidential information in notice

393A.810. No confidential information in notice Except as otherwise provided in KRS 393A.270 and 393A.280, a holder shall not be required under this chapter to include confidential information in a notice the holder is required to provide to an apparent owner under this chapter. Effective: July 14, 2018 History: Created 2018 Ky. Acts ch. 163, sec. 81, effective July 14, 2018.

KRS 393A.820 Security of information

393A.820. Security of information (1) If a holder is required to include confidential information in a report to the administrator, the information shall be provided by a secure means. (2) If confidential information in a record is provided to and maintained by the administrator or administrator's agent as required by this chapter, the administrator or agent shall: (a) Implement administrative, technical, and physical safeguards to protect the security, confidentiality, and integrity of the information as required by KRS 365.720 to 365.730 and federal privacy and data security law, whether or not the administrator or the administrator's agent is subject to the law; (b) Protect against reasonably anticipated threats or hazards to the security, confidentiality, or integrity of the information; and (c) Protect against unauthorized access to or use of the information which could result in substantial harm or inconvenience to a holder or the holder's customers, including insureds, annuitants, and policy or contract owners and their beneficiaries. (3) The administrator: (a) After notice and comment, shall adopt and implement a security plan that identifies and assesses reasonably foreseeable internal and external risks to confidential information in the administrator's possession and seeks to mitigate the risks; and (b) Shall ensure that an administrator's agent adopts and implements a similar plan with respect to confidential information in the agent's possession. (4) The administrator and the administrator's agent shall educate and train their employees regarding the plan adopted under subsection (3) of this section. (5) The administrator and the administrator's agent shall in a secure manner return or destroy all confidential information no longer reasonably needed under this chapter. Effective: July 14, 2018 History: Created 2018 Ky. Acts ch. 163, sec. 82, effective July 14, 2018.

KRS 393A.830 Security breach

393A.830. Security breach (1) Except to the extent prohibited by law other than this chapter, the administrator or administrator's agent shall notify a holder as soon as practicable of: (a) A suspected loss, misuse or unauthorized access, disclosure, modification, or destruction of confidential information obtained from the holder in the possession of the administrator or an administrator's agent; and (b) Any interference with operations in any system hosting or housing confidential information which: 1. Compromises the security, confidentiality, or integrity of the information; or 2. Creates a substantial risk of identity fraud or theft. (2) Except as necessary to inform an insurer, attorney, investigator, or others as required by law, the administrator and an administrator's agent shall not disclose, without the express consent in a record of the holder, an event described in subsection (1) of this section to a person whose confidential information was supplied by the holder. (3) If an event described in subsection (1) of this section occurs, the administrator and the administrator's agent shall: (a) Take action necessary for the holder to understand and minimize the effect of the event and determine its scope; and (b) Cooperate with the holder with respect to: 1. Any notification required by law concerning a data or other security breach; and 2. A regulatory inquiry, litigation, or similar action. Effective: July 14, 2018 History: Created 2018 Ky. Acts ch. 163, sec. 83, effective July 14, 2018.

KRS 393A.840 Uniformity of application and construction

393A.840. Uniformity of application and construction In applying and construing this chapter, consideration shall be given to the need to promote uniformity of the law with respect to its subject matter among states that enact the Revised Uniform Unclaimed Property Act. Effective: July 14, 2018 History: Created 2018 Ky. Acts ch. 163, sec. 84, effective July 14, 2018.

KRS 393A.850 Relation to Electronic Signatures in Global and National Commerce Act

393A.850. Relation to Electronic Signatures in Global and National Commerce Act This chapter modifies, limits, or supersedes 15 U.S.C. secs. 7001 et seq., but does not modify, limit, or supersede 15 U.S.C. sec. 7001(c), or authorize electronic delivery of any of the notices described in 15 U.S.C. sec. 7003(b). Effective: July 14, 2018 History: Created 2018 Ky. Acts ch. 163, sec. 85, effective July 14, 2018.

KRS 393A.860 Transitional provision

393A.860. Transitional provision (1) An initial report filed under this chapter for property that was not required to be reported before July 14, 2018, but that is required to be reported under this chapter, shall include all items of property that would have been presumed abandoned during the ten (10) year period preceding July 14, 2018, as if this chapter had been in effect during that period. (2) This chapter shall not relieve a holder of a duty that arose before July 14, 2018, to report, pay, or deliver property. Subject to KRS 393A.390(2) and (3), a holder that did not comply with the law governing unclaimed property before July 14, 2018, shall be subject to applicable provisions for enforcement and penalties in effect before July 14, 2018. Effective: July 14, 2018 History: Created 2018 Ky. Acts ch. 163, sec. 86, effective July 14, 2018.

Source: Kentucky Legislative Research Commission (legislature.ky.gov)URL: https://apps.legislature.ky.gov/law/statutes/chapter.aspx?id=47169Fetched: 10/20/2026