SLS 20RS-452 ORIGINAL
2020 Regular Session
SENATE BILL NO. 268
BY SENATOR JOHNS
BANKS/BANKING. Provides relative to abandonment of safety deposit boxes. (8/1/20)
1 AN ACT
2 To amend and reenact R.S. 6:327(C) and to enact R.S. 6:327.1, 771, and 1142, relative to
3 banks; to provide for the abandonment of safety deposit boxes; to allow for the
4 disposal of unsalable contents; to provide procedures for disposing of or selling of
5 abandoned contents; to provide relative to the State Unclaimed Property Program;
6 to provide relative to savings and loan associations and savings banks; and to provide
7 for related matters.
8 Be it enacted by the Legislature of Louisiana:
9 Section 1. R.S. 6:327(C) is hereby amended and reenacted and R.S. 6:327.1, 771,
10 and 1142 are hereby enacted to read as follows:
11 §327. Abandonment of safety deposit box
12 * * *
13 C. After a bank has entered an abandoned safety deposit box and removed the
14 contents thereof, it shall then hold such contents in the name of the lessee subject to
15 a lien and privilege for the unpaid rent, the costs of opening the box and making the
16 inventory of and storing its contents, and any other costs, expenses or other amounts
17 as provided in the lease or by law. If such amounts are not paid in full within one
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1 year from the date the safety deposit box became abandoned, the bank may sell all
2 or any part of the contents by public, private, or judicial sale in accordance with
3 Louisiana law and the terms of the safety deposit box contract., and the bank may
4 also dispose of any unsalable contents in accordance with R.S. 6:327.1. After
5 satisfaction of the bank's lien, any remaining proceeds shall be subject to the
6 Uniform Unclaimed Property Act of 1997, R.S. 9:151, et seq. The bank may
7 treat the remaining proceeds as presumed abandoned and turn them over to the
8 administrator of the State Unclaimed Property Program without having to wait
9 for the passage of time delays set forth in R.S. 9:154.
10 * * *
11 §327.1. Disposition of abandoned safety deposit box contents
12 A. If a bank has entered an abandoned safety deposit box in accordance
13 with the requirements of R.S. 6:327, and the bank decides to proceed with
14 disposing or selling the abandoned contents, then the provisions contained in
15 this Section shall apply.
16 B. (1) Prior to a public or private sale of contents from an abandoned
17 box, the following types of property may be classified as unsalable by an
18 independent appraiser, an auctioneer, a pawn broker, or the bank, and disposed
19 of in the following manner:
20 (a) Documents, writings, or photographs having little or no commercial
21 value may be destroyed by the bank.
22 (b) Coins or currency with a face value of twenty dollars or less each that
23 are valued at no more than twice the face value, shall be treated as proceeds of
24 a sale and used to satisfy the bank's lien and any excess proceeds remitted to the
25 Louisiana Unclaimed Property Program.
26 (c) Coins or currency with a face value of greater than twenty dollars
27 each that are valued at one hundred twenty-five percent or less of face value,
28 shall be treated as proceeds of sale and used to satisfy the bank's lien and any
29 excess proceeds remitted to the Louisiana Unclaimed Property Program.
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1 (d) Any other tangible item having an estimated sale value of twenty-five
2 dollars or less may be destroyed by the bank, provided that the aggregate value
3 of the items from a specific abandoned safety deposit box does not exceed two
4 hundred fifty dollars.
5 (2) A current version of any recognized numismatist publication may be
6 used for purposes of valuation of coins and currency.
7 C. Prior to a public or private sale of contents from an abandoned safety
8 deposit box that has not been classified as unsalable as provided in Subsection
9 B of this Section, the bank shall obtain an independent valuation of the contents
10 by an independent appraiser, auctioneer, pawn broker, coin or collectibles
11 dealer, a jeweler, or by any other person who is regularly engaged in the
12 business of appraising, buying, or selling like merchandise, or any other
13 combination thereof. Firearms shall be sold through a federal firearm licensed
14 dealer, or if sold at public auction, through an auctioneer who possesses a
15 federal firearm license. Alternatively, firearms may be turned over to law
16 enforcement.
17 D. Any public or private sale of contents of an abandoned safety deposit
18 box must be a commercially reasonable sale held at a time and place in the
19 judgment of the bank that will bring the most favorable prices for the property
20 involved. For purposes of this Section, "commercially reasonable", includes but
21 is not limited to a sale that would be commercially reasonable under R.S.
22 10:9-610, or a sale, or sale methodology, that is approved by the commissioner
23 of financial institutions. A bank may sell the contents of an abandoned safety
24 deposit box in a sale conducted exclusively for the bank, or in a sale conducted
25 jointly for the bank and any number of other financial institutions or other
26 entities. A bank may use an online auction service as a commercially reasonable
27 public sale.
28 E. A bank and its directors, officers, employees, agents, and other
29 representatives who act in accordance with the authority granted in R.S. 6:327
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1 and 327.1 relative to the disposition of abandoned safety deposit box contents
2 shall be immune from all civil and administrative liability.
3 * * *
4 §771. Disposition of abandoned safety deposit box contents
5 The provisions of R.S. 6:327.1 relative to the disposition of abandoned
6 safety deposit box contents shall be applicable to savings and loan associations
7 chartered under the Louisiana Savings and Loan Association Law in the same
8 manner as they are applicable to state banks.
9 * * *
10 §1142. Safety deposit boxes and safekeeping
11 The provisions of R.S. 6:321 through R.S. 6:328 relative to safety deposit
12 boxes and safekeeping shall be applicable to savings banks chartered under the
13 provisions of the Louisiana Savings Bank Act of 1990 in the same manner as
14 they are applicable to state banks.
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Morgan B. Robertson.
DIGEST
SB 268 Original 2020 Regular Session Johns
Present law provides procedures relative to the abandonment of safety deposit boxes and
allows banks to sell the contents of an abandoned safety deposit box by public, private, or
judicial sale in accordance with law and the terms of the safety deposit box contract.
Proposed law retains present law and allows banks to dispose of unsalable contents.
Proposed law provides that proceeds remaining after satisfaction of a bank's lien be subject
to the Uniform Unclaimed Property Act of 1997.
Proposed law allows a bank to treat remaining proceeds as presumed abandoned and turn
them over to the administrator of the State Unclaimed Property Program without having to
wait for the passage of time delays set forth in R.S. 9:154.
Proposed law provides procedures for the disposing of or selling of abandoned contents.
Proposed law allows the following types of property to be classified as unsalable by an
independent appraiser, an auctioneer, a pawn broker, or the bank and disposed of in the
following manner:
(1)Documents, writings, or photographs having little or no commercial value may be
destroyed.
(2)Coins or currency with a face value of $20.00 or less that are valued at no more than
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twice the face value shall be treated as proceeds of a sale and used to satisfy the
bank's lien and any excess proceeds remitted to the Louisiana Unclaimed Property
Program.
(3)Coins or currency with a face value greater than $20.00 that are valued at 125% or
less of face value shall be treated as proceeds of a sale and used to satisfy the bank's
lien and any excess proceeds remitted to the Louisiana Unclaimed Property Program.
(4)Any other tangible item having an estimated sale value of $25.00 or less may be
destroyed by the bank, provided that the aggregate value of the item from a specific
abandoned safety deposit box does not exceed $250.00.
Proposed law requires the bank to obtain an independent valuation of the contents by an
independent appraiser, auctioneer, pawn broker, coin or collectibles dealer, a jeweler, or by
any other person who is regularly engaged in the business of appraising, buying, or selling
like merchandise, or any other combination thereof prior to a public or private sale of
contents not classified as unsalable.
Proposed law requires firearms to be sold through a federal firearm licensed dealer, through
an auctioneer who possesses a federal firearm license, or turned over to law enforcement.
Proposed law requires any public or private sale of contents of an abandoned safety deposit
box to be a commercially reasonable sale.
Proposed law provides immunity to a bank and its directors, officers, employees, agents, and
other representatives who act in accordance with the authority granted in proposed law from
all civil and administrative liability.
Proposed law provides that the provisions of proposed law shall be applicable to savings and
loan associations chartered under the Louisiana Savings and Loan Association Law in the
same manner as they are applicable to state banks.
Proposed law provides that the provisions of R.S. 6:321 through 6:328 relative to safety
deposit boxes and safekeeping shall be applicable to savings banks chartered under the
provisions of the Louisiana Savings Bank Act of 1990 in the same manner as they are
applicable to state banks.
Effective August 1, 2020.
(Amends R.S. 6:327(C); adds R.S. 6:327.1, 771, and 1142)
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