§ 38-13-702 — Disposal of securities - definition

(1) The administrator shall not
sell or otherwise liquidate a security until three years after the administrator
receives the security and gives the apparent owner notice under section 38-13-503
that the administrator holds the security. This subsection (1) applies to any security
presumed abandoned under section 38-13-208 with a commencement date,
reported under section 38-13-402, that is on or after July 1, 2014.

(2) Except as otherwise provided in subsection (3) of this section, 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.

(3) (a) The administrator may sell a thinly traded security that is listed on an
established stock exchange for less than the price prevailing on the exchange at
the time of sale by any commercially reasonable method and at any time after the
three-year period set forth in subsection (1) of this section has passed if the
administrator determines, in the administrator's sole discretion, that there are no
buyers for the thinly traded security at the price prevailing on the exchange at the
time of sale. If the administrator determines that the thinly traded security has no
substantial commercial value or that the costs of disposing of it will exceed its
value, the administrator may return it to the holder or destroy or otherwise dispose
of it as authorized by section 38-13-608.

(b) As used in this section, unless the context otherwise requires, thinly
traded security means a security that cannot be easily sold or exchanged for cash
without causing a significant change in the price of the security.

Legislative History

Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 436, � 1, effective July 1, 2020. L. 2025: (2) amended and (3) added, (HB 25-1224), ch. 440, p. 2536, � 11, effective June 4.