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Regular Session, 2014
SENATE BILL NO. 603
BY SENATOR ALARIO
UNCLAIMED PROPERTY. Provides procedure for the escheatment of United States
savings bonds presumed abandoned. (gov sig)
AN ACT1
To enact R.S. 9:182, relative to unclaimed property; to provide a procedure for the2
escheatment of United States savings bonds presumed abandoned; and to provide for3
related matters.4
Be it enacted by the Legislature of Louisiana:5
Section 1. R.S. 9:182 is hereby enacted to read as follows:6
ยง182. United States savings bonds; escheatment procedures7
A. Notwithstanding any contrary provisions of law, United States8
savings bonds which are unclaimed property and subject to the provisions of9
this Chapter, shall escheat to the state three years after becoming unclaimed10
property by virtue of the provisions of this Chapter, and all property rights and11
legal title to and ownership of such United States savings bonds or proceeds12
from such bonds, including all rights, powers, and privileges of survivorship of13
any owner, co-owner or beneficiary, shall vest solely in the state according to the14
procedure set forth in Subsections B through F of this Section.15
B. Within one hundred eighty days after the three years prescribed in16
Subsection A of this Section, if no claim has been filed in accordance with the17 SB NO. 603
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provisions of this Chapter for such United States savings bonds, the1
administrator shall commence a civil action in the Nineteenth Judicial District2
Court for a determination that such United States savings bonds shall escheat3
to the state. The administrator may postpone the bringing of such action until4
sufficient United States savings bonds have accumulated in the custody of the5
administrator to justify the expense of such proceedings.6
C.(1) The administrator shall make service by publication of the7
proceeding in the Nineteenth Judicial District Court in East Baton Rouge Parish8
in accordance with R.S. 9:161. The notice shall name any defendant to be served9
and notify the defendant of the following:10
(a) The defendant has been sued in the Nineteenth Judicial District11
Court.12
(b) The defendant shall answer the petition or other pleading or13
otherwise defend, on or before a specified date, not less than forty-one days14
after the date the notice is first published.15
(c) If the defendant does not answer or otherwise defend, the petition or16
other pleading will be taken as true and judgment, the nature of which will be17
stated, will be rendered accordingly.18
(2) In addition, before service by publication under this Section can be19
made, the administrator or the administrator's attorney shall file with the court20
an affidavit or a declaration stating all of the following facts that apply:21
(a) The residences of all named defendants sought to be served, if22
known, and the names of all defendants whose residences are unknown after23
reasonable effort to ascertain them and the specific efforts made to ascertain24
their residences.25
(b) The affiant or declarant has made a reasonable but unsuccessful26
effort to ascertain the names and residences of any defendants sought to be27
served as unknown parties and the specific efforts made to ascertain the names28
and residences.29 SB NO. 603
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(c) The party seeking service by publication is unable to obtain service1
of summons on the defendants in this state.2
(d) The case is one in which the party with due diligence is unable to3
serve summons on the defendant in this state and either:4
(i) The case relates to or involves real or personal property in this state,5
if any defendant has or claims a lien or interest, vested or contingent, in the6
property.7
(ii) In which the relief demanded consists wholly or partly in excluding8
the defendant from any interest in the property.9
D. If no person shall file a claim or appear at the hearing to substantiate10
a claim or where the court determines that a claimant is not entitled to the11
property claimed by such claimant, then the court, if satisfied by evidence that12
the administrator has substantially complied with state law, shall enter a13
judgment that the subject United States savings bonds have escheated to the14
state, and all property rights and legal title to and ownership of such United15
States savings bonds or proceeds from such bonds, including all rights, powers16
and privileges of survivorship of any owner, co-owner or beneficiary, shall vest17
solely in the state.18
E. The administrator shall redeem such United States savings bonds19
escheated to the state and the proceeds from such redemption of United States20
savings bonds shall be deposited in the state treasury to the credit of the state21
general fund. The administrator shall not deposit the proceeds from the22
redemption of the United States savings bonds in the Bond Security and23
Redemption Fund nor in the Unclaimed Property Leverage Fund in accordance24
with the provisions of R.S. 9:165.25
F. Any person making a claim for the United States savings bonds26
escheated to the state under this Section, or for the proceeds from such bonds,27
may file a claim in accordance with the provisions of this Chapter. Upon28
providing sufficient proof of the validity of such person's claim, the29 SB NO. 603
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administrator may, is his sole discretion, pay such claim in accordance with the1
provisions of this Chapter.2
Section 2. This Act shall become effective upon signature by the governor or, if not3
signed by the governor, upon expiration of the time for bills to become law without signature4
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If5
vetoed by the governor and subsequently approved by the legislature, this Act shall become6
effective on the day following such approval.7
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Jerry J. Guillot.
DIGEST
Alario (SB 603)
Present law, the Uniform Unclaimed Property Act, provides for the disposition of various
unclaimed property. The state treasurer is defined as the administrator of the Act.
Proposed law provides a procedure for the escheatment of United States savings bonds
presumed abandoned. Provides that U.S. savings bonds which are unclaimed property and
subject to present law shall escheat to the state three years after becoming unclaimed
property by virtue of present law, and all property rights and legal title to and ownership of
such bonds or proceeds from such bonds, including all rights, powers, and privileges of
survivorship of any owner, co-owner or beneficiary, shall vest solely in the state according
to the procedure set forth in proposed law.
Provides that within 180 days after the three years prescribed in proposed law, if no claim
has been filed in accordance with proposed law for such U. S. savings bonds, the
administrator shall commence a civil action in the 19th JDC for a determination that such
savings bonds shall escheat to the state. Provides that the administrator may postpone the
bringing of such action until sufficient U.S. savings bonds have accumulated in his custody
to justify the expense of such proceedings.
Requires that the administrator make service by publication of the proceeding in the 19th
JDC in East Baton Rouge Parish in accordance with present law. Requires that the notice
name any defendant to be served and notify the defendant of the following:
(1) The defendant has been sued in the 19th JDC.
(2) The defendant shall answer the petition or other pleading or otherwise defend, on or
before a specified date, not less than 41 days after the date the notice is first
published.
(3) If the defendant does not answer or otherwise defend, the petition or other pleading
will be taken as true and judgment, the nature of which will be stated, will be
rendered accordingly.
Provides that, in addition, before service by publication under proposed law can be made,
the administrator or the administrator's attorney shall file with the court an affidavit or a
declaration stating all of the following facts that apply:
(1)The residences of all named defendants sought to be served, if known, and the names SB NO. 603
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of all defendants whose residences are unknown after reasonable effort to ascertain
them and the specific efforts made to ascertain their residences.
(2)The affiant or declarant has made a reasonable but unsuccessful effort to ascertain
the names and residences of any defendants sought to be served as unknown parties
and the specific efforts made to ascertain the names and residences.
(3) The party seeking service by publication is unable to obtain service of summons on
the defendants in this state.
(4) The case is one in which the party with due diligence is unable to serve summons on
the defendant in this state and either:
(a)The case relates to or involves real or personal property in this state, if any
defendant has or claims a lien or interest, vested or contingent, in the
property.
(b)In which the relief demanded consists wholly or partly in excluding the
defendant from any interest in the property.
Provides that if no person shall file a claim or appear at the hearing to substantiate a claim
or where the court determines that a claimant is not entitled to the property claimed by such
claimant, then the court, if satisfied by evidence that the administrator has substantially
complied with state law, shall enter a judgment that the subject U. S. savings bonds have
escheated to the state, and all property rights and legal title to and ownership of such U.S.
savings bonds or proceeds from such bonds, including all rights, powers, and privileges of
survivorship of any owner, co-owner or beneficiary, shall vest solely in the state.
Provides that the administrator shall redeem such U. S. savings bonds escheated to the state
and the proceeds from such redemption shall be deposited in the state treasury to the credit
of the state general fund. Requires that the administrator not deposit the proceeds from the
redemption of the U. S. savings bonds in the Bond Security and Redemption Fund nor in the
Unclaimed Property Leverage Fund.
Provides that any person making a claim for U. S. savings bonds escheated to the state, or
for the proceeds from such bonds, may file a claim in accordance with present law. Provides
that upon providing sufficient proof of the validity of such person's claim, the administrator
may, is his sole discretion, pay such claim in accordance with present law.
Otherwise retains present law.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Amends R.S. 9:182)