D.C. Mun. Regs. tit. 9, r. 9-3002

Current through Register Vol. 71, No. 43, October 25, 2024

Rule 9-3002 - ABANDONMENT OF PROPERTY

3002.1

For the purposes of the Act and this chapter, the term "tangible personal property" shall include everything that is the subject of ownership consisting of movable corporeal articles, except real estate, with a market value of fifty dollars ($50) or more.

3002.2

For the purposes of the Act and this chapter, the term "intangible personal property" shall include the following:

(a) Monies, checks, drafts, deposits, interest, dividends, and income;

(b) Credit balances, customer overpayments, gift certificates, security deposits, refunds, credit memos, unpaid wages, and uncashed airline tickets;

(c) Stocks, bonds, and other intangible interests in business associations;

(d) Monies deposited to redeem stocks, bonds, coupons, and other securities or to make distributions;

(e) Amounts due and payable under the terms of insurance policies;

(f) Unclaimed prizes or contest winnings;

(g) Assets distributable from a trust or custodial fund established under a plan to provide health and welfare, pension, vacation, severance, retirement benefits, death benefits, stock purchase, profit sharing, employee savings, supplemental unemployment insurance benefits, or similar savings; and

(h) All other choses or things in action (property which has no intrinsic or marketable value, but is merely evidence or representative of value) including, but not limited to, other items specifically set forth in the Act or this section.

3002.3

For the purposes of § 106 of the Act (D.C. Code § 42-206) relating to the (ten (10)year) period for presumption of abandonment of bank deposits and funds in financial institutions, those deposits and funds include, but are not limited to, the following:

(a) Checking accounts and savings accounts;

(b) Matured certificates of deposit or saving certificates;

(c) Christmas club accounts;

(d) Security deposits;

(e) Funds paid toward the purchase of shares;

(f) Money on deposit to secure funds;

(g) Unidentified deposits;

(h) Mutual investment certificates;

(i) Certified or registered checks, drafts, and cashier's checks;

(j) Bills of exchange; and

(k) Any other interest in a financial organization.

3002.4

For the purposes of § 112 of the Act (D.C. Code § 42-212), relating to property held by public officers and agencies, unclaimed property shall include, but is not necessarily limited to, escrow funds, condemnation awards, and missing heirs funds.

3002.5

For the purposes of § 107 of the Act (D.C. Code § 42-207), relating to funds held by life insurance corporations and all insurance corporations who pay benefits, unclaimed property shall include, but is not necessarily limited to, the following:

(a) Amounts due and payable under the terms of a policy;

(b) Matured whole life, term, or endowment insurance policies or annuity and supplementary contracts; and

(c) Claim payments.

3002.6

A claim shall be considered payable and therefore reportable by an insurance company when the "offer" of payment has been delivered to the claimant.

3002.7

The burden shall be on the insurance company to show that the "offer" of payment is not reportable due to a reasonable lapse of time which has terminated the offer, or the specific rejection or revocation of the offer.

3002.8

The application of an automatic premium loan provision or other nonforfeiture provision of an insurance policy does not prevent a policy from being matured or terminated if the insured has died or the insured or the beneficiaries of the policy otherwise have become entitled to the proceeds of the policy before the depletion of the cash surrender value of the policy by the application of those provisions.

3002.9

For the purposes of § 109 of the Act (D.C. Code § 42-209), relating to undistributed dividends and distributions of business associations, in addition to items set forth in that section, unclaimed property shall include, but is not necessarily limited to, the following:

(a) Escrow funds; and

(b) Any sum which is owed to a shareholder, certificate holder, member, bond holder, or other security holder or participating member of a cooperative (such as dividends, interest, principal payments, equity payments, profits, or distributions).

3002.10

Holders of abandoned securities, with a marketable value, are required to re-register the abandoned securities in the name of the District of Columbia prior to the delivery date. Delivery shall be pursuant to § 119 of the Act.

3002.11

If the securities have no marketable value, the certificate shall be turned over to the District as custodian of the property pursuant to the provisions of § 119(a) of the Act.

3002.12

The Mayor or the Mayor's designee acting in a fiduciary capacity as conservator of an abandoned security shall be considered the appropriate person to provide the necessary signature needed to negotiate a security.

3002.13

An indorsement of a security shall be made when the Mayor or the Mayor's designee signs on the security or on a separate document as assignment or transfer of the security or a power to assign or transfer it, or the Mayor's (or designee's) signature is written without more upon the back of the security.

D.C. Mun. Regs. tit. 9, r. 9-3002

Final Rulemaking published at 28 DCR 3622, 3623 (August 14, 1981); as amended by Final Rulemaking 28 DCR 4183 (September 25, 1981); and by Final Rulemaking published at 29 DCR 2200 (May 28, 1982)