§ 38-13-603 — Payment or delivery of property to administrator

Colorado § 38-13-603

• Jurisdiction: Colorado
• Title 38: Property -
• Art.: Revised Uniform Unclaimed Property Act

Text

(1) Except as
otherwise provided in this section, on filing a report under section 38-13-401, the
holder shall pay or deliver to the administrator the property described in the report.

(2) If property in a report under section 38-13-401 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 days after filing the report under section
38-13-401.

(4) If property reported to the administrator under section 38-13-401 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 section 38-13-702.

(4.5) (a) If property in a report under section 38-13-401 is virtual currency,
the holder shall liquidate the virtual currency within thirty days of filing the report
and remit the liquidation proceeds to the administrator. The owner shall have no
recourse against either the holder or the administrator for any gain in value of the
virtual currency after liquidation.

(b) If a holder cannot liquidate virtual currency and cannot otherwise cause
virtual currency to be liquidated, the holder shall promptly notify the administrator
in writing and explain the reasons why the virtual currency cannot be liquidated.
The administrator, in the administrator's absolute and sole discretion, may direct
the holder to either:

(I) Transfer the virtual currency that cannot be liquidated to a custodian
selected by the administrator; or

(II) Continue to hold the virtual currency until the administrator or the holder
determines that the virtual currency can be liquidated pursuant to this article 13 or
that there is an indication of apparent owner interest.

(5) If the holder of property reported to the administrator under section 38-13-401 is the issuer of a certificated security, the administrator may obtain a
replacement certificate in physical or book-entry form under section 4-8-405. An
indemnity bond is not 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 is not 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 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 article 13. The holder shall make a determination annually
whether a security identified in a report filed under section 38-13-401 as a
nonfreely transferable security is no longer a nonfreely transferable security.

Legislative History

Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 431, � 1, effective July 1, 2020. L. 2025: (4.5) added, (HB 25-1224), ch. 440, p. 2535, � 8, effective June 4.