8 Colo. Code Regs. § 1508-1.5

Current through Register Vol. 47, No. 20, October 25, 2024

Section 8 CCR 1508-1.5 - Rules

1.5.2Knowledge of Owner

A. A holder of unclaimed property may establish its knowledge of the existence or whereabouts of the owner of that property by recording any owner-generated activity relating to that property. The mailing of a statement, confirmation or other correspondence by a holder of unclaimed property to the last known address of the owner of that property and the nonreturn of such mail to the holder is insufficient to establish that the holder has knowledge of the existence or whereabouts of the owner. A holder may cross-reference with another account in the same institution or business that has current owner generated activity. To cross-reference a dormant or inactive account with an active account the same names must appear in some form either on the account, signature card or contract.

B. A holder may establish a code for indicating "customer contact" or "owner-generated activity" for purposes of record-keeping. That code must be well documented.

1.5.7Indemnification

A. Upon payment or delivery of property to the Administrator, the state assumes custody and responsibility for safekeeping of the property. A person who pays or delivers property in good faith is relieved of all liability to the extent of the value of the property paid or delivered for any claim with respect to the property.

B A holder who has paid or delivered property to the Administrator may make payment to a person who appears to be entitled to payment and upon filing proof of payment and proof that the payee was entitled to payment the Administrator shall promptly reimburse the holder for the payment without imposing any fee or charge.

C. If the holder pays or delivers property to the Administrator in good faith and thereafter another person claims the property from the holder or another state claims the money or property under its unclaimed property laws, the Administrator, upon written notice of claim, shall defend holder against the claim and indemnify the holder against liability on the claim.

1.5.11Located Property

A. Except as otherwise provided in the Act, agreements to pay compensation to recover or assist in the recovery of property reported under the RUUPA are unenforceable within 24 months after date of payment or delivery to the Administrator. Compensation shall not exceed 10% except as provided by the Act.

1.5.13Electronic Reporting

A. Holders shall report unclaimed property as prescribed in 38-13-401, C.R.S. in electronic format only. The format of such report shall be through the current NAUPA Standard Electronic File Format uploaded on the Division website. Holders may file their reports using the manual reporting feature on the Colorado Treasury Unclaimed Property website or file their report electronically via reporting software. The Colorado Treasury Unclaimed Property website shall provide a list of vendors known to currently provide required reporting software along with what forms of reporting that are not accepted by the Colorado Treasury Unclaimed Property Division.

B. Notwithstanding the filing of such electronic report, the Holder shall pay or deliver to the Treasurer all unclaimed property reported as required in 38-13-603, C.R.S

1.5.14Electronic Signatures

A. Any electronic signatures for unclaimed property business as the Administrator may prescribe shall be consistent with the Uniform Electronic Transactions Act, 24-71.3-101, et seq., C.R.S.

1.5.15Power of Attorney

A. A claim made pursuant to 38-13-903, C.R.S. by a person with a duly authorized Power of Attorney on behalf of the original owner may be processed as required by law at the Administrator's discretion. If claim by a Power of Attorney is initiated, such action does not preclude the Administrator from seeking verification from the original owner.

1.5.16Aggregate Reporting

A. Aggregate reporting under 38-13-402(j)(2), C.R.S. shall consist of like properties each of which has an individual value of less than $25. The holder shall maintain a record of the itemized information for ten (10) years.

1.5.17Continuity of Records

A. When a holder acquires unclaimed property from another holder, such as in a merger, acquisition, reorganization, consolidation or transfer, the successor holder shall have a duty to maintain and continue the records of the prior holder concerning unclaimed property, as prescribed in 38-13-404, C.R.S.

1.5.18Remittance and Custody of Securities

A. For payment or delivery of property as identified in 38-13-603(8), C.R.S. a holder is not required to deliver to the Administrator a security statutorily defined as nonfreely transferable. This includes securities that may be under global lock, restricted, worthless or nonfreely transferable for any reason.

B. For unclaimed property as identified in 38-13-402, C.R.S, the report made by the Holder as prescribed in 38-13-401 C.R.S. for such property must match the dollar value of the property as transferred to the Administrator under 38-13-603, C.R.S. CUSIP changes, stock splits, etc. must be fully expressed on holder reports. For example, holders should not report 100 shares of stock A and then deliver 75 shares of stock B or 33 shares of stock A.

C. The Administrator may decline to take custody of property pursuant to 38-13-607, C.R.S. if:

1. The property has a value less than the estimated expenses of notice and sale of the property; or

2. Taking custody of the property would be unlawful.

1.5.19Nature of Unclaimed Property

A. A holder must report under 38-13-402, C.R.S. the original nature of the property being reported, if known, and shall be reported according to the timeline specified for the original nature of the item. For example, if the underlying transaction is an unclaimed wage but the financial instrument is a cashier's check, the reportable item is the wage, and not the cashier's check.

B. The report required under section 38-13-402, C.R.S. must include the name, last known address and social security number or tax payer identification of the apparent owner or property with a value of twenty-five dollars or more.

8 CCR 1508-1.5

44 CR 21, November 10, 2021, effective 11/30/2021