§ 511 — Unclaimed property; when deemed abandoned

§ 511. Unclaimed property; when deemed abandoned. The following\nunclaimed property shall be deemed abandoned property:\n 1. Any amount (a) received in this state after June thirtieth,\nnineteen hundred forty-six by a broker or dealer or nominee of such\nbroker or dealer as the holder of record of a security remaining unpaid\nto the person entitled thereto for three years following the receipt\nthereof, or (b) when paid to such broker, dealer or nominee on or with\nrespect to a security which has been deemed abandoned.\n 1-a. Any amount (a) received in this state on or after July first,\nnineteen hundred seventy-four by a broker or dealer or nominee of such\nbroker or dealer other than as the holder of record of a security\nremaining unpaid to the person entitled thereto for three years\nfollowing the receipt thereof, or (b) when paid to such broker, dealer\nor nominee on or with respect to a security which has been deemed\nabandoned.\n 2. Any amount (a) received in this state after June thirtieth,\nnineteen hundred forty-six due from a broker or dealer or nominee of\nsuch broker or dealer to a customer which has remained unpaid to the\ncustomer for three years after the date of the last entry, other than\nthe receipt of dividends or interest in the account of such broker,\ndealer or nominee with such customer, or (b) payable on or with respect\nto a security which has been deemed abandoned.\n 3. Any security held in this state by a broker or dealer, or nominee\nof such broker or dealer, as the holder of record of a security for a\ncustomer or for a person or persons unknown to such broker or dealer or\nnominee where, for three successive years, all amounts paid thereon or\nwith respect thereto and received after June thirtieth, nineteen hundred\nforty-six by such broker or dealer or nominee have remained unclaimed.\n Provided, however, that if any amount or security specified in\nsubdivision one, two or three of this section is reflected, recorded, or\nincluded in an account with respect to which such broker or dealer has\non file evidence in writing received within the three years immediately\npreceding the thirty-first day of December preceding the date such\namount or security would otherwise be payable or deliverable pursuant to\nsection five hundred twelve that the person entitled thereto had\nknowledge of such account, then such amount or security shall not be\ndeemed abandoned property.\n 4. Any security held by a broker or dealer or nominee of such broker\nor dealer reflected, recorded, or included in an account with respect to\nwhich, for three successive years, all statements of account or other\ncommunications which have been sent, via first class mail, to the\ncustomer at his last known address have been returned to such broker,\ndealer or nominee by the postal authorities for inability to locate the\ncustomer, and no written communication has been received from the\ncustomer by such broker, dealer or nominee, provided such security was\nreceived or is held in this state by such broker, dealer or nominee or\nthe last known address of the customer is located in this state.\n 5. Any wages held and payable on or after July first, nineteen hundred\nsixty-six by a broker or dealer, as defined in section five hundred ten\nof this article, for the benefit of a person or persons, known or\nunknown shall be deemed to be abandoned property, where for three\nsuccessive years:\n (a) All such wages have remained unpaid to such person, and\n (b) No written communication has been received from such person by the\nholder, and\n (c) Notice regarding such wages, if sent by the broker or dealer, via\nfirst class mail, to such person at his last known address has been\nreturned to the broker or dealer by the postal authorities for inability\nto locate such person.\n 6. Any broker or dealer who satisfies the requirements of this\nsubdivision may determine the property which on the thirty-first day of\nDecember in the years nineteen hundred seventy-two, nineteen hundred\nseventy-three, nineteen hundred seventy-four and nineteen hundred\nseventy-five shall be deemed abandoned property pursuant to subdivisions\none and three of this section relating to the years nineteen hundred\nsixty-seven, nineteen hundred sixty-eight, nineteen hundred sixty-nine,\nand nineteen hundred seventy by the method hereinafter in this\nsubdivision described and the amount so determined as at any such date\nshall be deemed to be all of such abandoned property held by such broker\nor dealer pursuant to subdivisions one and three of this section on such\ndate.\n The broker or dealer shall compute separately for each of the years\nnineteen hundred sixty-five and nineteen hundred sixty-six (each of\nwhich years is referred to in this subdivision as a "base year") the\ntotal value of all stock and cash dividends received by such broker or\ndealer, or nominee of such broker or dealer, in this state during such\nyear as the holder of record of a security. The value of any dividend\npaid in stock shall be the mean price of such stock during the calendar\nmonth in which the dividend was received as reported by any generally\nrecognized statistical service or, if not so reported, as established in\nany other manner satisfactory to the state comptroller. The total value\nof all such stock and cash dividends thus determined for each base year\nshall be the denominator for that base year. The broker or dealer shall\nthen determine the total value of all such dividends received during\neach base year belonging to unknown owners as reported to the state\ncomptroller, or as required to be so reported pursuant to this article,\nwhich continued to be held by such broker or dealer, or nominee of such\nbroker or dealer, unpaid to the person entitled thereto on the December\nthirty-first occurring five years after the close of such base year. To\nthe extent any such dividends which continued to be so held unpaid on\nany such December thirty-first consisted of stock, such stock shall be\nvalued at the mean price of such stock during the calendar month ending\non such December thirty-first as reported by any generally recognized\nstatistical service or, if not so reported, as established in any other\nmanner satisfactory to the state comptroller. The total value of such\nremaining dividends thus determined for each base year shall be the\nnumerator for that base year. The sum of the numerators for the base\nyears shall be divided by the sum of the denominators for the base years\nand the result thus obtained shall be multiplied by two. The product\nobtained as the result of such multiplication shall be the average\nfactor of such broker or dealer.\n In order to determine the property which on the thirty-first day of\nDecember, nineteen hundred seventy-two shall be deemed abandoned\nproperty pursuant to subdivisions one and three of this section relating\nto the year nineteen hundred sixty-seven the broker or dealer shall\ndetermine (i) the total value of all stock and cash dividends (valued as\nabove provided) received by such broker or dealer, or nominee of such\nbroker or dealer, in this state during nineteen hundred sixty-seven as\nthe holder of record of a security and shall multiply such total value\nby the average factor of such broker or dealer, (ii) the aggregate\namount of stock and cash dividends (valued as above provided) received\nby such broker or dealer, or nominee of such broker or dealer, in this\nstate during nineteen hundred sixty-seven as the holder of record of a\nsecurity for a person or persons unknown to such broker or dealer, less\nthe cost incurred by such broker or dealer not later than the\nthirty-first day of December, nineteen hundred seventy-two in covering\nstock and cash dividends which should have been received by such broker\nor dealer, or nominee of such broker or dealer, during nineteen hundred\nsixty-seven but, according to the books and records of such broker or\ndealer, were not received, and (iii) the aggregate amount of interest\npayments received by such broker or dealer, or nominee of such broker or\ndealer, in this state during nineteen hundred sixty-seven on securities\nheld for persons unknown to such broker or dealer, less the cost\nincurred by such broker or dealer not later than the thirty-first day of\nDecember, nineteen hundred seventy-two in covering interest payments\nwhich should have been received by such broker or dealer, or nominee of\nsuch broker or dealer, during nineteen hundred sixty-seven but,\naccording to the books and records of such broker or dealer, were not\nreceived. The greater of the two amounts determined pursuant to clauses\n(i) and (ii) of the preceding sentence, plus the amount determined\npursuant to clause (iii) of such sentence, shall be deemed abandoned\nproperty pursuant to subdivisions one and three of this section relating\nto the year nineteen hundred sixty-seven on the thirty-first day of\nDecember nineteen hundred seventy-two.\n In order to determine the property which on the thirty-first day of\nDecember, nineteen hundred seventy-three shall be deemed abandoned\nproperty pursuant to subdivisions one and three of this section relating\nto the year nineteen hundred sixty-eight the broker or dealer shall\ndetermine (i) the total value of all stock and cash dividends (valued as\nabove provided) received by such broker or dealer, or nominee of such\nbroker or dealer, in this state during nineteen hundred sixty-eight as\nthe holder of record of a security and shall multiply such total value\nby the average factor of such broker or dealer, (ii) the aggregate\namount of stock and cash dividends (valued as above provided) received\nby such broker or dealer, or nominee of such broker or dealer, in this\nstate during nineteen hundred sixty-eight as the holder of record of a\nsecurity for a person or persons unknown to such broker or dealer, less\nthe cost incurred by such broker or dealer not later than the\nthirty-first day of December, nineteen hundred seventy-three in covering\nstock and cash dividends which should have been received by such broker\nor dealer, or nominee of such broker or dealer, during nineteen hundred\nsixty-eight but, according to the books and records of such broker or\ndealer, were not received, and (iii) the aggregate amount of interest\npayments received by such broker or dealer, or nominee of such broker or\ndealer, in this state during nineteen hundred sixty-eight on securities\nheld for persons unknown to such broker or dealer, less the cost\nincurred by such broker or dealer not later than the thirty-first day of\nDecember, nineteen hundred seventy-three in covering interest payments\nwhich should have been received by such broker or dealer, or nominee of\nsuch broker or dealer, during nineteen hundred sixty-eight but,\naccording to the books and records of such broker or dealer, were not\nreceived. The greater of the two amounts determined pursuant to clauses\n(i) and (ii) of the preceding sentence, plus the amount determined\npursuant to clause (iii) of such sentence, shall be deemed abandoned\nproperty pursuant to subdivisions one and three of this section relating\nto the year nineteen hundred sixty-eight on the thirty-first day of\nDecember, nineteen hundred seventy-three.\n In order to determine the property which on the thirty-first day of\nDecember, nineteen hundred seventy-four shall be deemed abandoned\nproperty pursuant to subdivisions one and three of this section relating\nto the year nineteen hundred sixty-nine the broker or dealer shall\ndetermine (i) the total value of all stock and cash dividends (valued as\nabove provided) received by such broker or dealer, or nominee of such\nbroker or dealer, in this state during nineteen hundred sixty-nine as\nthe holder of record of a security and shall multiply such total value\nby the average factor of such broker or dealer, (ii) the aggregate\namount of stock and cash dividends (valued as above provided) received\nby such broker or dealer, or nominee of such broker or dealer, in this\nstate during nineteen hundred sixty-nine as the holder of record of a\nsecurity for a person or persons unknown to such broker or dealer, less\nthe cost incurred by such broker or dealer not later than the\nthirty-first day of December, nineteen hundred seventy-four in covering\nstock and cash dividends which should have been received by such broker\nor dealer, or nominee of such broker or dealer, during nineteen hundred\nsixty-nine but, according to the books and records of such broker or\ndealer, were not received, and (iii) the aggregate amount of interest\npayments received by such broker or dealer, or nominee of such broker or\ndealer, in this state during nineteen hundred sixty-nine on securities\nheld for persons unknown to such broker or dealer, less the cost\nincurred by such broker or dealer not later than the thirty-first day of\nDecember, nineteen hundred seventy-four in covering interest payments\nwhich should have been received by such broker or dealer, or nominee of\nsuch broker or dealer, during nineteen hundred sixty-nine but, according\nto the books and records of such broker or dealer, were not received.\nThe greater of the two amounts determined pursuant to clauses (i) and\n(ii) of the preceding sentence, plus the amount determined pursuant to\nclause (iii) of such sentence, shall be deemed abandoned property\npursuant to subdivisions one and three of this section relating to the\nyear nineteen hundred sixty-nine on the thirty-first day of December\nnineteen hundred seventy-four.\n In order to determine the property which on the thirty-first day of\nDecember, nineteen hundred seventy-five shall be deemed abandoned\nproperty pursuant to subdivisions one and three of this section relating\nto the year nineteen hundred seventy the broker or dealer shall\ndetermine (i) the total value of all stock and cash dividends (valued as\nabove provided) received by such broker or dealer, or nominee of such\nbroker or dealer, in this state during nineteen hundred seventy as the\nholder of record of a security and shall multiply such total value by\nthe average factor of such broker or dealer, (ii) the aggregate amount\nof stock and cash dividends (valued as above provided) received by such\nbroker or dealer, or nominee of such broker or dealer, in this state\nduring nineteen hundred seventy as the holder of record of a security\nfor a person or persons unknown to such broker or dealer, less the cost\nincurred by such broker or dealer not later than the thirty-first day of\nDecember, nineteen hundred seventy-five in covering stock and cash divi-\ndends which should have been received by such broker or dealer, or\nnominee of such broker or dealer, during nineteen hundred seventy but,\naccording to the books and records of such broker or dealer, were not\nreceived, and (iii) the aggregate amount of interest payments received\nby such broker or dealer, or nominee of such broker or dealer, in this\nstate during nineteen hundred sixty-nine on securities held for persons\nunknown to such broker or dealer, less the cost incurred by such broker\nor dealer not later than the thirty-first day of December, nineteen\nhundred seventy-five in covering interest payments which should have\nbeen received by such broker or dealer, or nominee of such broker or\ndealer, during nineteen hundred seventy but, according to the books and\nrecords of such broker or dealer, were not received. The greater of the\ntwo amounts determined pursuant to clauses (i) and (ii) of the preceding\nsentence, plus the amount determined pursuant to clause (iii) of such\nsentence, shall be deemed abandoned property pursuant to subdivisions\none and three of this section relating to the year nineteen hundred\nseventy on the thirty-first day of December, nineteen hundred\nseventy-five.\n Each broker or dealer which uses the procedure described above in this\nsubdivision shall maintain for a period of not less than six years\ncommencing January first, nineteen hundred seventy-two, books and\nrecords evidencing the receipt of dividends in this state for each of\nthe base years, and the payment thereof over the five years succeeding\neach base year.\n Any broker or dealer who chooses to determine the property which on\nthe thirty-first day of December in the years nineteen hundred\nseventy-two or nineteen hundred seventy-three shall be deemed abandoned\nproperty pursuant to subdivisions one and three of this section relating\nto the years nineteen hundred sixty-seven or nineteen hundred\nsixty-eight by the method described in this subdivision shall thereafter\ndetermine the property which on the thirty-first day of December in each\nsubsequent year ending not later than December thirty-first, nineteen\nhundred seventy-five shall be deemed abandoned property pursuant to\nsubdivisions one and three of this section relating to a year not later\nthan nineteen hundred seventy by the method described in this\nsubdivision. No broker or dealer may choose to determine the property\nwhich on the thirty-first day of December in the years nineteen hundred\nseventy-four or nineteen hundred seventy-five shall be deemed abandoned\nproperty pursuant to subdivisions one and three of this section relating\nto the years nineteen hundred sixty-nine or nineteen hundred seventy by\nthe method described in this subdivision unless such broker or dealer\nshall have used the method described in this subdivision to determine\nthe property which on the thirty-first day of December in the year\nnineteen hundred seventy-three shall be deemed abandoned property\npursuant to subdivisions one and three of this section relating to the\nyear nineteen hundred sixty-eight.\n The method of determining abandoned property pursuant to subdivisions\none and three of this section as described in this subdivision shall be\navailable only to such brokers or dealers as have made written reports\npursuant to section five hundred thirteen in each of the years nineteen\nhundred seventy-one and nineteen hundred seventy-two covering each of\nthe base years.\n In the event that an audit of a broker or dealer by the state\ncomptroller establishes that one or more of the dollar values determined\nby the broker or dealer for the purpose of computing the average factor\nof such broker or dealer pursuant to this subdivision was incorrect, the\ncorrected average factor of such broker or dealer established as a\nresult of such audit shall be determined to be the average factor\nrequired to be used by such broker or dealer in determining abandoned\nproperty pursuant to this subdivision.\n Any broker or dealer who does not determine abandoned property\npursuant to subdivisions one and three of this section by the method\ndescribed in this subdivision and who during any of the calendar years\nnineteen hundred sixty-seven, nineteen hundred sixty-eight, nineteen\nhundred sixty-nine or nineteen hundred seventy received in this state\nany stock dividend as the holder of record of a security for a person or\npersons unknown to such broker or dealer and who sold any such stock\ndividend during any such or subsequent calendar year, shall pay the\nproceeds of such sale to the state comptroller not later than the\nthirty-first day of December, nineteen hundred seventy-three and such\nproceeds shall, for all purposes of this chapter be deemed abandoned\nproperty on the thirty-first day of December of the calendar year during\nwhich such sale takes place.\n