LAWRENCE J. HOGAN, JR., Governor Ch. 648
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Chapter 648
(House Bill 305)
AN ACT concerning
Financial Institutions – Abandoned Presumption of Property Abandonment –
Notice and Records Revisions
FOR the purpose of requiring the holder of presumed abandoned property over a certain
value to send written notice to the apparent owner by certified mail, return receipt
requested, rather than by first–class mail; requiring the holder of abandoned
property over a certain value to keep records relating to that property; altering the
circumstances under which certain property is presumed abandoned; altering the
circumstances under which the running of the period of abandonment of certain
property ceases; providing that the period of abandonment of certain property ceases
under certain circumstances; and generally relating to abandoned property.
BY repealing and reenacting, without amendments,
Article – Commercial Law
Section 17–101(a), (i), and (k)
Annotated Code of Maryland
(2013 Replacement Volume and 2021 Supplement)
BY repealing and reenacting, with amendments,
Article – Commercial Law
Section 17–308.2 and 17–312 17–301, 17–304, 17–308(d), and 17–308.1(b)
Annotated Code of Maryland
(2013 Replacement Volume and 2021 Supplement)
BY repealing and reenacting, without amendments,
Article – Commercial Law
Section 17–310
Annotated Code of Maryland
(2013 Replacement Volume and 2021 Supplement)
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
That the Laws of Maryland read as follows:
Article – Commercial Law
17–308.2.
(A) Not more than 120 days or less than 30 days before the filing of the report
required under § 17–310 of this subtitle, the holder in possession of presumed abandoned Ch. 648 2022 LAWS OF MARYLAND
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property shall send, TO THE APPARENT OWNE R’S LAST KNOWN ADDRESS , a written
notice:
(1) FOR PRESUMED ABANDONE D PROPERTY VALUED AT $100 OR
MORE BUT LESS THAN $10,000, by first–class mail [to the apparent owner of]; OR
(2) FOR presumed abandoned property valued at [$100] $10,000 or more
[to the owner’s last known address informing], BY CERTIFIED MAIL , RETURN RECEIPT
REQUESTED .
(B) THE WRITTEN NOTICE SH ALL INFORM the owner that:
(1) The holder is in possession of property subject to the provisions of this
title; and
(2) The property will be considered abandoned unless the owner responds
within 30 days of the notification to the holder.
17–310.
(a) Every person holding funds or other tangible or intangible property presumed
abandoned under this subtitle shall report to the Administrator with respect to the property
as provided in this section.
(b) The report shall be made under oath and shall include:
(1) The name, if known, and last known address, if any, of each person who
appears from the records of the holder to be the owner of any property valued at $100 or
more and presumed abandoned under this subtitle;
(2) In case of unclaimed funds of an insurance corporation, the full name
of the insured, annuitant, principal, or claimant, and the last known address according to
the insurance corporation’s records;
(3) The nature and identifying number, if any, or description of the
property and the amount which appears from the records to be due, except that items
valued at less than $100 each may be reported in the aggregate;
(4) The date when the property became payable, demandable, or
returnable, and the date of the last transaction with the owner with respect to the property;
and
(5) Any other information which the Administrator prescribes by rule as
necessary for the administration of this title.
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(c) If the person holding property presumed abandoned is a successor to any other
person who previously held the property for the owner, or if the holder has changed his
name while holding the property, the person shall file with the report all prior known
names and addresses of each holder of the property.
(d) The report shall be for the period of July 1 through June 30 of each year and
filed no later than October 31 of that year. However, the reporting period for an insurance
corporation shall be from January 1 through December 31 of each year and the report shall
be filed no later than April 30 of the following year. The Administrator may postpone the
reporting date on the written request of any person required to file a report.
(e) Verification, if made by a partnership, shall be executed by a partner; if made
by an unincorporated association or private corporation, by an officer; and if made by a
public corporation, by its chief fiscal officer.
17–312.
(A) Every person who has filed a report as provided in § 17–310 of this subtitle,
at the time of the filing of the report, shall pay or deliver to the Administrator all abandoned
property specified in the report.
(B) (1) A HOLDER SHALL KEEP AC CURATE RECORDS RELAT ING TO
ABANDONED PROPERTY V ALUED AT $10,000 OR MORE FOR AT LEAST 3 YEARS AFTER
THE HOLDER HAS PAID OR DELIVERED THE ABA NDONED PROPERTY TO T HE
ADMINISTRATOR .
(2) THE RECORDS SHALL BE SUFFICIENT TO ALLOW A PERSON WHO
IS ABLE TO RECOVER T HE ABANDONED PROPERT Y TO ESTABLISH A TAX BASIS.
17–101.
(a) In this title the following words have the meanings indicated.
(i) “Holder” means any person who is:
(1) In possession of property subject to this title belonging to another;
(2) A trustee, in the case of a trust; or
(3) Indebted to another on an obligation subject to this title.
(k) “Owner” means:
(1) In the case of a deposit, a depositor or a person entitled to receive the
funds as reflected on the records of the bank or financial organization;
Ch. 648 2022 LAWS OF MARYLAND
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(2) In the case of a trust, a beneficiary;
(3) In the case of other choses in action, a creditor, claimant, or payee;
(4) In the case of abandoned property in federal custody, the person who is
defined as the owner by any applicable federal law; or
(5) Any person who has a legal or equitable interest in property subject to
this title, or the legal representative of that person.
17–301.
(a) (1) FOR PURPOSES OF THIS SECTION AND SUBJECT TO PARAGRAPH
(2) OF THIS SUBSECTION , A HOLDER SHALL BE DE EMED TO NO LONGER HA VE A
VALID ADDRESS FOR TH E OWNER OF THE PROPE RTY AS OF THE LATER OF:
(I) THE DATE A SECOND COM MUNICATION IS RETURN ED BY
THE U.S. POSTAL SERVICE TO A HOLDE R AS UNDELIVERABLE T O AN APPARENT
OWNER, IF:
1. THE HOLDER SENT THE S ECOND COMMUNICATION TO
THE APPARENT OWNER B Y FIRST–CLASS MAIL; AND
2. A PREVIOUS COMMUNICATI ON WAS:
A. SENT BY FIRST–CLASS MAIL;
B. SENT IMMEDIATELY PREC EDING THE SECOND
COMMUNICATION ; AND
C. RETURNED BY THE U.S. POSTAL SERVICE TO THE
HOLDER AS UNDELIVERA BLE TO THE APPARENT OWNER; OR
(II) THE DATE A PREVIOUS C OMMUNICATION IS RETU RNED BY
THE U.S. POSTAL SERVICE TO A HOLDER A S UNDELIVERABLE TO AN APPARENT
OWNER, IF THE HOLDER :
1. SENT THE PREVIOUS COM MUNICATION TO THE
APPARENT OWNER :
A. BY FIRST–CLASS MAIL; AND
B. IMMEDIATELY PRECEDING A SECOND
COMMUNICATION ; AND LAWRENCE J. HOGAN, JR., Governor Ch. 648
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2. SENT THE SECOND COMMU NICATION TO THE
APPARENT OWNER :
A. BY FIRST–CLASS MAIL; AND
B. MORE THAN 30 DAYS AFTER THE PREVI OUS
COMMUNICATION UNDER THIS SUBPARAGRAPH WA S SENT.
(2) (I) SUBJECT TO SUBPARAGRA PH (II) OF THIS PARAGRAPH , IF
THE HOLDER DOES NOT SEND COMMUNICATIONS TO AN APPAR ENT OWNER BY
FIRST–CLASS MAIL, THE HOLDER SHALL ATT EMPT TO CONFIRM THE APPARENT
OWNER’S INTEREST IN THE PR OPERTY BY E–MAILING THE APPARENT OWNER NOT
LATER THAN 2 YEARS AFTER THE APPA RENT OWNER ’S LAST INDICATION OF
INTEREST IN THE PROP ERTY.
(II) THE HOLDER SHALL PROMPTLY A TTEMPT TO CONTACT TH E
APPARENT OWNER BY FI RST–CLASS MAIL IF:
1. THE HOLDER DOES NOT H AVE THE INFORMATION
NEEDED TO SEND AN E –MAIL TO THE APPARENT OWNER;
2. THE HOLDER BELIEVES T HE APPARENT OWNER ’S
E–MAIL ADDRESS IN THE HOLDER’S RECORDS IS NOT VAL ID;
3. THE HOLDER RECEIVES N OTIFICATION THAT THE
E–MAIL WAS NOT RECEIVE D; OR
4. THE APPARENT OWNER DO ES NOT RESPOND TO TH E
E–MAIL COMMUNICATION W ITHIN 30 DAYS AFTER THE E –MAIL WAS SENT .
(III) 1. IF A MAILING SENT IN ACCORDANCE WITH
SUBPARAGRAPH (II) OF THIS PARAGRAPH IS RETURNED BY THE U.S. POSTAL
SERVICE TO THE HOLDER AS UNDELIVERABLE TO THE APPARENT OWNER , THE
MAILING SHALL CONSTI TUTE A COMMUNICATION FOR PURPOSES OF PARA GRAPH (1)
OF THIS SUBSECTION .
2. IF A MAILING SENT IN ACCO RDANCE WITH
SUBPARAGRAPH (II) OF THIS PARAGRAPH IS NOT RETURNED BY THE U.S. POSTAL
SERVICE TO THE HOLDER AS UNDELIVERABLE TO THE APPARENT OWNER , THE
HOLDER SHALL BE PRES UMED TO HAVE A VALID ADDRESS FOR THE OWNE R OF THE
PROPERTY.
Ch. 648 2022 LAWS OF MARYLAND
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(B) The following property held by a banking or financial organization, or business
association is presumed abandoned:
(1) Any demand, savings, or matured time deposit account made with a
banking organization, together with any interest or dividend on it, excluding any charges
that lawfully may be withheld, [unless, within 3 years,] 3 YEARS AFTER THE LATE R OF:
(I) THE DATE THE HOLDER I S DEEMED TO NO LONGE R HAVE A
VALID ADDRESS FOR TH E OWNER OF THE PROPE RTY; OR
(II) THE DATE the owner [has] LAST:
[(i)] 1. Increased or decreased the amount of the deposit;
[(ii)] 2. Presented evidence of the deposit for the crediting of
interest;
[(iii)] 3. Corresponded in writing with the banking organization
concerning the deposit;
[(iv)] 4. Engaged in any credit, trust, or other deposit transaction
with the banking organization; or
[(v)] 5. Otherwise indicated an interest in the deposit as
evidenced by a memorandum on file with the banking organization;
(2) Any funds paid toward the purchase of shares or other interest in a
financial organization, or any deposit made with these funds, and any interest or dividends
on these, excluding any charges that lawfully may be withheld, [unless, within 3 years,] 3
YEARS AFTER THE LATE R OF:
(I) THE DATE THE HOLDER IS DEEMED TO NO LONGER HAVE A
VALID ADDRESS FOR TH E OWNER OF THE PROPE RTY; OR
(II) THE DATE the owner [has] LAST:
[(i)] 1. Increased or decreased the amount of the funds or deposit,
or presented an appropriate record for the crediting of interest or dividends;
[(ii)] 2. Corresponded in writing with the financial organization
concerning the funds or deposit;
[(iii)] 3. Engaged in any credit, share, or other deposit transaction
with the financial organization; or
LAWRENCE J. HOGAN, JR., Governor Ch. 648
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[(iv)] 4. Otherwise indicated an interest in the funds or deposit as
evidenced by a memorandum on file with the financial organization;
(3) Any sum payable on a check certified in this State or on a written
instrument issued in this State on which a banking or financial organization or business
association is directly liable, including any certificate of deposit, draft, traveler’s check, and
money order, that has been outstanding for more than 3 years from the date it was payable
(or 15 years in the case of a traveler’s check) or, if payable on demand, from the date of its
issuance, unless, within 3 years or 15 years in the case of a traveler’s check, the owner has:
(i) Corresponded in writing with the banking or financial
organization or business association concerning it; or
(ii) Otherwise indicated an interest as evidenced by a memorandum
on file with the banking or financial organization or business association; and
(4) Any property removed from a safekeeping repository on which the lease
or rental period has expired or any surplus amounts arising from the sale of the property
pursuant to law, that have been unclaimed by the owner for more than 3 years from the
date on which the lease or rental period expired.
[(b)] (C) Nothing in this section shall be construed to apply to any demand,
savings, or matured time deposits that are designated subject to the order of any court of
this State.
[(c)] (D) Property is subject to the custody of this State as unclaimed property if
the conditions raising a presumption of abandonment under this section are met and:
(1) The last known address, as shown on the records of the holder, of the
apparent owner is in this State;
(2) The records of the holder do not reflect the identity of the person
entitled to the property and it is established that the last known address of the person
entitled to the property is in this State;
(3) The records of the holder do not reflect the last known address of the
apparent owner, and it is established that:
(i) The last known address of the person entitled to the property is
in this State; or
(ii) The holder is a domiciliary or a government or governmental
subdivision or agency of this State and has not previously paid or delivered the property to
the State of the last known address of the apparent owner or other person entitled to the
property;
Ch. 648 2022 LAWS OF MARYLAND
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(4) The last known address, as shown on the records of the holder, of the
apparent owner is in a state that does not provide by law for the escheat or custodial taking
of the property or its escheat or unclaimed property law is not applicable to the property
and the holder is a domiciliary or a government or governmental subdivision or agency of
this State;
(5) The last known address, as shown on the records of the holder, of the
apparent owner is in a foreign nation and the holder is a domiciliary or a government or
governmental subdivision or agency of this State; or
(6) The transaction out of which the property arose occurred in this State
and:
(i) The last known address of the apparent owner or other person
entitled to the property is unknown or the last known address of the apparent owner or
other person entitled to the property is in a state that does not provide by law for the escheat
or custodial taking of the property or its escheat or unclaimed property law is not applicable
to the property; and
(ii) The holder is a domiciliary of a state that does not provide by law
for the escheat or custodial taking of the property or its escheat or unclaimed property law
is not applicable to the property.
(E) (1) THE RUNNING OF THE 3–YEAR PERIOD OF ABAND ONMENT CEASES
IMMEDIATELY ON :
(I) (1) THE HOLDER OBTAINING A VALID ADDRESS FOR THE
OWNER OF THE PROPERT Y; OR
(II) (2) THE OCCURRENCE OF AN ACTION REFERRED TO I N
SUBSECTION (B)(1)(II) OR (2)(II) OF THIS SECTION.
(2) IF ANY FUTURE DIVIDEN D, DISTRIBUTION, OR OTHER SUM
PAYABLE TO THE OWNER AS A RESULT OF THE I NTEREST IS SUBSEQUEN TLY NOT
CLAIMED BY THE OWNER , A NEW PERIOD OF ABANDONMENT COMME NCES AND
RELATES BACK TO THE TIME A SUBSEQUENT DI VIDEND, DISTRIBUTION, OR OTHER
SUM BECAME DUE AND P AYABLE.
17–304.
(a) (1) FOR PURPOSES OF THIS SECTION AND SUBJECT TO PARAGRAPH
(2) OF THIS SUBSECTION , A HOLDER SHALL BE DE EMED TO NO LONGER HAVE A
VALID ADDRESS FOR TH E OWNER OF THE PROPE RTY AS OF THE LATER OF:
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(I) THE DATE A SECOND COM MUNICATION IS RETURN ED BY
THE U.S. POSTAL SERVICE TO A HOLDER A S UNDELIVERABLE TO A N APPARENT
OWNER, IF:
1. THE HOLDER SENT THE S ECOND COMMUNICA TION TO
THE APPARENT OWNER B Y FIRST–CLASS MAIL; AND
2. A PREVIOUS COMMUNICATI ON WAS:
A. SENT BY FIRST–CLASS MAIL;
B. SENT IMMEDIATELY PREC EDING THE SECOND
COMMUNICATION ; AND
C. RETURNED BY THE U.S. POSTAL SERVICE TO THE
HOLDER AS UNDELIVERABLE TO THE APPARENT OWNER ; OR
(II) THE DATE A PREVIOUS C OMMUNICATION IS RETU RNED BY
THE U.S. POSTAL SERVICE TO A HOLDER A S UNDELIVERABLE TO A N APPARENT
OWNER, IF THE HOLDER :
1. SENT THE PREVIOUS COM MUNICATION TO THE
APPARENT OWNER :
A. BY FIRST–CLASS MAIL; AND
B. IMMEDIATELY PRECEDING A SECOND
COMMUNICATION ; AND
2. SENT THE SECOND COMMU NICATION TO THE
APPARENT OWNER :
A. BY FIRST–CLASS MAIL; AND
B. MORE THAN 30 DAYS AFTER THE PREVI OUS
COMMUNICATION UNDER THIS SUBPARAGRAPH WA S SENT.
(2) (I) SUBJECT TO SUBPARAGRA PH (II) OF THIS PARAGRAPH , IF
THE HOLDER DOES NOT SEND COMMUNICATIONS TO AN APPARENT OWNER BY
FIRST–CLASS MAIL, THE HOLDER SHALL ATT EMPT TO CONFIRM THE APPARE NT
OWNER’S INTEREST IN THE PR OPERTY BY E–MAILING THE APPARENT OWNER NOT
LATER THAN 2 YEARS AFTER THE APPA RENT OWNER ’S LAST INDICATION OF
INTEREST IN THE PROP ERTY.
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(II) THE HOLDER SHALL PROM PTLY ATTEMPT TO CONT ACT THE
APPARENT OWNER BY FIRST–CLASS MAIL IF:
1. THE HOLDER DOES NOT H AVE THE INFORMATION
NEEDED TO SEND AN E –MAIL TO THE APPARENT OWNER;
2. THE HOLDER BELIEVES T HE APPARENT OWNER ’S
E–MAIL ADDRESS IN THE HOLDER’S RECORDS IS NOT VAL ID;
3. THE HOLDER RECEIVES N OTIFICATION THAT THE
E–MAIL WAS NOT RECEIVE D; OR
4. THE APPARENT OWNER DO ES NOT RESPOND TO TH E
E–MAIL COMMUNICATION W ITHIN 30 DAYS AFTER THE E –MAIL WAS SENT .
(III) 1. IF A MAILING SENT IN ACCORDANCE WITH
SUBPARAGRAPH (II) OF THIS PARAGRAPH IS RE TURNED BY THE U.S. POSTAL
SERVICE TO THE HOLDER AS UNDELIVERABLE TO THE APPARENT OWNER , THE
MAILING SHALL CONSTI TUTE A COMMUNICATION FOR PURPOSES OF PARA GRAPH (1)
OF THIS SUBSECTION .
2. IF A MAILING SENT IN ACCORDANCE WITH
SUBPARAGRAPH (II) OF THIS PARAGRAPH IS NOT RETURNED BY THE U.S. POSTAL
SERVICE TO THE HOLDER AS UNDELIVERABLE TO THE APPARENT OWNER , THE
HOLDER SHALL BE PRES UMED TO HAVE A VALID ADDRESS FOR THE OWNE R OF THE
PROPERTY.
(B) Any stock or other certificate of ownership, or any dividend, profit,
distribution, interest, payment on principal, or other sum held by a business association for
or to a shareholder, certificate holder, member, bondholder or other security holder, or
participating patron of a cooperative[, who has not claimed it or corresponded in writing
with the business association concerning it within 3 years after the date prescribed for
payment or delivery,] is presumed abandoned 3 YEARS AFTER THE LATE R OF:
(1) THE DATE THE HOLDER I S DEEMED TO NO LONGER HAVE A VALID
ADDRESS FOR THE OWNE R OF THE PROPERTY ; OR
(2) THE DATE THE OWNER LA ST COMMUNICATED WITH THE BUSINESS
ASSOCIATION REGARDIN G THE PROPERTY if:
[(1)] (I) It is held by a business association organized under the laws of
or created in this State;
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[(2)] (II) It is held by a business association doing business in this State
but not organized under the laws of this State, and the records of the business association
indicate that the last known address of the person entitled to it is in this State; or
[(3)] (III) It is held by a business association not doing business in this
State and not organized under the laws of this State, but the records of the business
association indicate that the last known address of the person entitled to it is in this State.
[(b)] (C) This section shall apply to the stock or other certificate of ownership on,
for or from which the amounts described in subsection [(a)] (B) of this section have been
presumed abandoned ONLY if [the]:
(1) THE HOLDER IS DEEM ED TO NO LONGER HAVE A VALID ADDRESS
FOR THE OWNER OF THE PROPERTY FOR THE PRE CEDING 3 YEARS; OR
(2) THE owner of said underlying stock or certificate has not, within the
3–year period giving rise to the presumption of abandonment:
[(1)] (I) Communicated in writing with the association regarding the
interest or a dividend, distribution, or other sum payable as a result of the interest; or
[(2)] (II) Otherwise communicated with the association regarding the
interest or a dividend, distribution, or other sum payable as a result of the interest, as
evidenced by a memorandum or other record on file with the association prepared by an
employee of the association.
[(c)] (D) (1) At the expiration of a 3–year period following the failure of the
owner to claim a dividend, distribution, or other sum payable to the owner as a result of
the interest, the interest is not presumed abandoned unless there have been at least 3
dividends, distributions, or other sums paid during the period, none of which has been
claimed by the owner.
(2) If 3 dividends, distributions, or other sums are paid during the 3–year
period, the period leading to a presumption of abandonment commences on the date
payment of the first such unclaimed dividend, distribution, or other sum became due and
payable.
(3) If 3 dividends, distributions, or other sums are not paid during the
presumptive period, the period continues to run until there have been 3 dividends,
distributions, or other sums that have not been claimed by the owner.
[(d)] (E) (1) The running of the 3–year period of abandonment ceases
immediately upon [the]:
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(I) THE HOLDER OBTAINING A VALID ADDRESS FOR THE
OWNER OF THE PROPERT Y; OR
(II) THE occurrence of a communication referred to in subsection
[(b)] (C)(2) of this section.
(2) If any future dividend, distribution, or other sum payable to the owner
as a result of the interest is subsequently not claimed by the owner, a new period of
abandonment commences and relates back to the time a subsequent dividend, distribution,
or other sum became due and payable.
[(e)] (F) At the time an interest is presumed abandoned under this section, any
dividend, distribution, or other sum then held for or owing to the owner as a result of the
interest, and not previously presumed abandoned, is presumed abandoned.
[(f)] (G) This section does not apply to any stock or other intangible ownership
interest enrolled in a plan that provides for the automatic reinvestment of dividends,
distributions, or other sums payable as a result of the interest unless the records available
to the Administrator of the plan show, with respect to any intangible ownership interest
not enrolled in the reinvestment plan, that [the]:
(1) THE HOLDER IS DEEMED TO NO LONGER HAVE A VALID ADDRESS
FOR THE OWNER OF THE STOCK OR OTHER INTAN GIBLE OWNERSHIP INTE REST; OR
(2) THE owner has not within 3 years communicated in any manner
described in subsection [(b)] (C)(2) of this section.
[(g)] (H) (1) The holder of an interest under this section shall deliver a
duplicate certificate or other evidence of ownership if the holder does not issue certificates
of ownership to the Administrator.
(2) Upon delivery of a duplicate certificate to the Administrator, the holder
and any transfer agent, registrar, or other person acting for or on behalf of a holder in
executing or delivering the duplicate certificate is relieved of all liability of every kind in
accordance with the provision of § 17–313 of this subtitle to every person, including any
person acquiring the original certificate or the duplicate of the certificate issued to the
Administrator, for any losses or damages resulting to any person by the issuance and
delivery to the Administrator of the duplicate certificate.
17–308.
(d) Property is reportable to this State under subsection (b) of this section under
the priority rules established under § [17–301(c)] 17–301(D) of this subtitle.
17–308.1. LAWRENCE J. HOGAN, JR., Governor Ch. 648
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(b) A holder may consider a money order dormant or inactive for purposes of
imposing a service charge if the owner has taken none of the actions set forth in §
[17–301(a)(3)] 17–301(B)(3) of this subtitle for 1 year from the date of issuance of the
money order.
SECTION 2. AND BE IT FURTHER ENACTED, Tha t this Act shall take effect
October 1, 2022.
Enacted under Article II, § 17(c) of the Maryland Constitution, May 29, 2022.