Taking Custody of Property by Administrator

V.S.A. tit. 27, ch. 18, subch. 6

in effect

27 V.S.A. § 1511 Definition of good faith

1511. Definition of good faith In this subchapter, payment or delivery of property is 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 that the holder reasonably believed required or permitted the property to be paid or delivered. Added 2019, No. 93 (Adj. Sess.), § 2, eff. Jan. 1, 2021.

27 V.S.A. § 1512 Dormancy charge

1512. Dormancy charge (a) A holder may deduct a dormancy charge from property required to be paid or delivered to the Administrator if: (1) 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 (2) the holder regularly imposes the charge and regularly does not reverse or otherwise cancel the charge. (b) The amount of the deduction under subsection (a) is limited to an amount that is not 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. Added 2019, No. 93 (Adj. Sess.), § 2, eff. Jan. 1, 2021.

27 V.S.A. § 1513 Payment or delivery of property to Administrator

1513. Payment or delivery of property to Administrator (a) Except as otherwise provided in this section, on filing a report under section 1491 of this title, the holder shall pay or deliver to the Administrator the property described in the report. (b) If property in a report under section 1491 of this title 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. (c) Tangible property in a safe-deposit box may not be delivered to the Administrator until 120 days after filing the report under section 1491 of this title. (d) If property reported to the Administrator under section 1491 of this title is a security, the Administrator may: (1) 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 (2) dispose of the security under section 1532 of this title. (e) If the holder of property reported to the Administrator under section 1491 of this title is the issuer of a certificated security, the Administrator may obtain a replacement certificate in physical or book-entry form under 9A V.S.A. § 8-405. An indemnity bond is not required. (f) If property reported to the Administrator under section 1491 of this title is virtual currency, the holder shall liquidate the virtual currency and remit the proceeds to the Administrator. The liquidation shall occur anytime within 30 days prior to the remittance. The owner of the property 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 for property properly reported as set forth in this chapter. (g) The Administrator shall establish procedures for the registration, issuance, method of delivery, transfer, and maintenance of securities delivered to the Administrator by a holder. (h) An issuer, holder, and transfer agent or other person acting under this section under instructions of and on behalf of the issuer or holder is not liable to the apparent owner for, and must be indemnified by the State against, a claim arising with respect to property after the property has been delivered to the Administrator. (i) A holder is not required to deliver to the Administrator a security identified by the holder as a nonfreely transferable security. If the Administrator or holder determines that a security is no longer a nonfreely 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 section 1491 of this title as a nonfreely transferable security is no longer a nonfreely transferable security. Added 2019, No. 93 (Adj. Sess.), § 2, eff. Jan. 1, 2021; amended 2023, No. 87 (Adj. Sess.), § 83, eff. Mar. 13, 2024.

27 V.S.A. § 1514 Effect of payment or delivery of property to Administrator

1514. Effect of payment or delivery of property to Administrator 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 sections 1501 and 1502 of this title is relieved of liability arising thereafter with respect to payment or delivery of the property to the Administrator. Added 2019, No. 93 (Adj. Sess.), § 2, eff. Jan. 1, 2021.

27 V.S.A. § 1515 Recovery of property by holder from Administrator

1515. Recovery of property by holder from Administrator (a) A holder that under this chapter pays money to the Administrator may file a claim for reimbursement from the Administrator of the amount paid if the holder: (1) paid the money in error; or (2) after paying the money to the Administrator, paid money to a person the holder reasonably believed entitled to the money. (b) If a claim for reimbursement under subsection (a) 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 must 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. (c) If a holder is reimbursed by the Administrator under subdivision (a)(2) of this section, the holder may also recover from the Administrator income or gain under section 607 that would have been paid to the owner if the money had been claimed from the Administrator by the owner to the extent the income or gain was paid by the holder to the owner. (d) A holder that under this chapter delivers property other than money to the Administrator may file a claim for return of the property from the Administrator if: (1) the holder delivered the property in error; or (2) the apparent owner has claimed the property from the holder. (e) If a claim for return of property under subsection (d) 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. (f) The Administrator may determine that an affidavit submitted by a holder is evidence sufficient to establish that the holder is entitled to reimbursement or to recover property under this section. (g) A holder is not required to pay a fee or other charge for reimbursement or return of property under this section. (h) Not later than 90 days after a claim is filed under subsection (a) or (d) 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 90-day period, the claim is deemed denied. (i) The claimant may initiate a proceeding under 3 V.S.A. chapter 25 for review of the Administrator’s decision or the deemed denial under subsection (h) of this section not later than: (1) 30 days following receipt of the notice of the Administrator’s decision; or (2) 120 days following the filing of a claim under subsection (a) or (d) of this section in the case of a deemed denial under subsection (h) of this section. (j) A final decision in an administrative proceeding initiated under subsection (i) of this section may be appealed to the Civil Division of the Washington County Superior Court, which shall hear the appeal de novo. Added 2019, No. 93 (Adj. Sess.), § 2, eff. Jan. 1, 2021.

27 V.S.A. § 1516 Property removed from safe-deposit box

1516. Property removed from safe-deposit box Property removed from a safe-deposit box and delivered under this chapter to the Administrator under this chapter is 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. Added 2019, No. 93 (Adj. Sess.), § 2, eff. Jan. 1, 2021.

27 V.S.A. § 1517 Crediting income or gain to owner’s account

1517. Crediting income or gain to owner’s account If property other than money is delivered to the Administrator, the owner is entitled to receive from the Administrator income or gain realized or accrued on the property before the property is sold. Added 2019, No. 93 (Adj. Sess.), § 2, eff. Jan. 1, 2021.

27 V.S.A. § 1518 Administrator’s options as to custody

1518. Administrator’s options as to custody (a) The Administrator may decline to take custody of property reported under section 1491 of this title if the Administrator determines that: (1) the property has a value less than the estimated expenses of notice and sale of the property; or (2) taking custody of the property would be unlawful. (b) A holder may pay or deliver property to the Administrator before the property is presumed abandoned under this chapter if the holder: (1) sends the apparent owner of the property notice required by section 1501 of this title and provides the Administrator evidence that the holder sent such notice; (2) includes with the payment or delivery a report regarding the property conforming to section 1492 of this title; and (3) first obtains the Administrator’s consent in a record to accept payment or delivery. (c) A holder’s request for the Administrator’s consent under subdivision (b)(3) of this section must be in a record. If the Administrator fails to respond to the request not later than 30 days after receipt of the request, the Administrator is deemed to consent to the payment or delivery of the property and the payment or delivery is considered to have been made in good faith. (d) On payment or delivery of property under subsection (b), the property is presumed abandoned. Added 2019, No. 93 (Adj. Sess.), § 2, eff. Jan. 1, 2021.

27 V.S.A. § 1519 Disposition of property having no substantial value; immunity from liability

1519. Disposition of property having no substantial value; immunity from liability (a) 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. (b) An action or proceeding may 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. Added 2019, No. 93 (Adj. Sess.), § 2, eff. Jan. 1, 2021.

27 V.S.A. § 1520 Periods of limitation and repose

1520. Periods of limitation and repose (a) Expiration, before, on, or after January 1, 2021, of a period of limitation on an owner’s right to receive or recover property, whether specified by contract, statute, or court order, does 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. (b) The Administrator may not commence an action or proceeding to enforce this chapter with respect to the reporting, payment, or delivery of property more than five years after the holder filed a non-fraudulent report under section 1491 of this title with the Administrator. The parties may agree in a record to extend the limitation in this subsection. (c) The Administrator may not commence an action, proceeding, or examination with respect to a duty of a holder under this chapter more than 10 years after the duty arose. Added 2019, No. 93 (Adj. Sess.), § 2, eff. Jan. 1, 2021.

Source: Vermont General Assembly (legislature.vermont.gov)URL: https://legislature.vermont.gov/statutes/chapter/27/018Fetched: 10/21/2026