§523A-64 Undertaking to hold the United States harmless; intervention by state attorney general. (a) Upon the payment and delivery of property to the director, the State assumes custody and responsibility for the safekeeping of the property. An officer, department or agency of the United States who pays or delivers property to the director in good faith is relieved of all liability to the extent of the value of the property paid or delivered for any claim then existing or which thereafter may arise or be made in respect to such property.

(b) The State hereby undertakes to hold the United States harmless against any claim concerning property delivered to the custody of the State in accordance with the provisions of this part. In the event an action or proceeding on such claim is brought against the United States the attorney general shall intervene therein upon receipt of actual notice thereof. The State consents to suit by such claimant in such event and any defense in favor of the United States shall be available to and urged by the State.

(c) If an officer, department, or agency of the United States pays or delivers property to the director in good faith and thereafter another person claims the property from such officer, department, or agency, or another state claims the property under its laws relating to escheat or abandoned or unclaimed property, the director, upon written notice of the claim, shall defend such officer, department, or agency against the claim and indemnify such officer, department, or agency against any liability on the claim.

(d) For the purposes of this section "good faith" means that:

(1) Payment or delivery was made in a reasonable attempt to comply with this part; and

(2) The person paying or delivering the property had a reasonable basis for believing, based on the facts then known to the person, that the property was abandoned or unclaimed for the purposes of this part.

(e) If, and as often as may be, required by federal statute, the governor shall certify to the Comptroller General or other proper officer of the United States that the law of this State provides effective means whereby the United States shall be held harmless in the event of claim for property delivered to this State in accordance with the provisions of this part. [L 1988, c 93, pt of §2]