§ 1248. Payment or delivery of unclaimed property

(a) Except for property held in a safe deposit box or other safekeeping depository, upon filing the report required by section 1247 of this title, the holder of property presumed abandoned shall pay, deliver, or cause to be paid or delivered to the treasurer the property described in the report as unclaimed. However, if the property is an automatically renewable deposit, and a penalty or forfeiture in the payment of interest would result, the time for compliance is extended until a penalty or forfeiture would no longer result. Tangible property held in a safe deposit box or other safekeeping depository may not be delivered to the treasurer until 120 days after filing the report required by section 1247 of this title.

(b) If the property reported to the treasurer is a security or security entitlement under 9 V.S.A. article 8, the treasurer is an appropriate person to make an endorsement, instruction, or entitlement order on behalf of the apparent owner to invoke the duty of the issuer or its transfer agent or the securities intermediary to transfer or dispose of the security or the security entitlement in accordance with 9 V.S.A. article 8.

(c) If the holder of property reported to the treasurer is the issuer of a certificated security, the treasurer has the right to obtain a replacement certificate pursuant to 9A V.S.A. § 8-405, but an indemnity bond is not required.

(d) An issuer, the holder, or a transfer agent or other person acting pursuant to the instructions of and on behalf of the issuer or holder in accordance with this section shall not be liable to the apparent owner in accordance with section 1250 of this title.

(e) A holder may deduct from that property a charge imposed by reason of the owner's failure to claim the property within a specified time only if there is a valid and enforceable written contract between the holder and the owner under which the holder may impose the charge and the holder regularly imposes the charge, which is not regularly reversed or otherwise cancelled. The amount of the charge shall be limited to an amount that is not unconscionable.

(f) The treasurer may require holders of unclaimed mutual funds to liquidate the mutual fund shares and remit the cash proceeds of the sale. (Added 2005, No. 161 (Adj. Sess.), § 1.)