10 Ind. Admin. Code 1.5-3-7

Current through September 4, 2024

Section 10 IAC 1.5-3-7 - Lawful charges; interest

Authority: IC 32-34-1-52

Affected: IC 32-34-1-22

Sec. 7.

(a) Except as provided in IC 32-34-1-22(b) [IC 32-34-1 was repealed by P.L. 141-2021, SECTION 19, effective July 1, 2021.], there must be a valid, written contract between the holder and the owner to permit the lawful withholding of charges for the owner's failure to claim the property within a specified time. No holder shall seek to implement the terms of any contract against the state if it does not do so against owners who claim their assets prior to remittance.

(b) The holder shall cite, in its unclaimed property report, the legal authority or contract provision supporting the discontinuation of interest or dividend payments on property during the period of its inactivity. If such payments would not have been discontinued had the property been claimed by the owner prior to being reported or remitted to the attorney general, and the holder does not regularly waive its contractual right to cease payment of interest, such discontinuance is prohibited.

(c) The holder shall provide the following information as part of any unclaimed property report filed from which service charges have been deducted:

(1) The citation of IC 32-34-1[IC 32-34-1 was repealed by P.L. 141-2021, SECTION 19, effective July 1, 2021.] or a copy of the contract between the parties authorizing such service charges.

(2) The value or amount of each item or property, prior to deduction of service charges as well as the total amount of service charges deducted from each item.

(3) Such other information or documentation to substantiate the deduction of service charges. This may include:

(A) correspondence;

(B) passbook provisions;

(C) signature cards;

(D) regulations;

(E) bylaws; or

(F) any other documentation concerning any agreement between the holder and the owner.

(d) The holder shall maintain a record for three (3) years from the last date on which such service charges were deducted.

10 IAC 1.5-3-7

Office of Attorney General for the State; 10 IAC 1.5-3-7; filed Jul 1, 1997, 4:15 p.m.: 20 IR 2999; errata filed Apr 17, 2003, 3:30 p.m.: 26 IR 3046; readopted filed Aug 14, 2003, 1:15 p.m.: 27 IR 946; readopted filed Oct 6, 2009, 9:03 a.m.: 20091104-IR-010090575RFA

Readopted filed 10/26/2015, 1:48 p.m.: 20151125-IR-010150149RFA

Readopted filed 11/10/2021, 4:13 p.m.: 20211208-IR-010210426RFA