# Commercial Law (GCL)

## Title 17. Disposition of Abandoned Property

### Subtitle 3. Abandoned Property in This State

#### Section 17-301

(a) For purposes of this subtitle:

  (1) An action by an agent or other representative of an apparent owner, other than a holder acting as the apparent owner's agent, is presumed to be an action on behalf of the apparent owner; and

  (2) A communication with an apparent owner by a person other than the holder or the holder's representative is not an indication of apparent owner interest in property unless a record of the communication evidences the apparent owner's knowledge of a right to the property.

(b) When determining the address of an apparent owner under this subtitle:

  (1)

    (i) The last known address of an apparent owner includes any description, code, or other indication of the location of the apparent owner that identifies a state; and

    (ii) An indication of the location of the apparent owner that identifies a state does not need to be sufficient to direct the delivery of first-class mail to the apparent owner;

  (2) This State is deemed to be the state of the last known address of the apparent owner if:

    (i) The postal zip code associated with the apparent owner is for a post office located in this State; and

    (ii) There are no other records associated with the apparent owner that specifically identify the physical address of the apparent owner to be in another state;

  (3) Another state is deemed to be the state of the last known address of the apparent owner if:

    (i) The postal zip code associated with the apparent owner is for a post office located outside this State; and

    (ii) There are no other records associated with the apparent owner that specifically identify the physical address of the apparent owner to be in this State; and

  (4) The address of the apparent owner of a life or endowment insurance policy or annuity contract or its proceeds is presumed to be the address of the insured or annuitant if:

    (i) A person other than the insured or annuitant is entitled to the amount owed under the policy or contract; and

    (ii) The address of the person entitled to the amount owed under the policy or contract is:

      (1) Not known by the insurance company; and

      (2) Cannot be determined under Sec. 17-301.1(d) of this subtitle.

#### Section 17-301.1

(a)

  (1) For purposes of this section and subject to paragraph (2) of this subsection, a holder shall be deemed to no longer have a valid address for the owner of the property as of the later of:

    (i) The date a second communication is returned by the U.S. Postal Service to a holder as undeliverable to an apparent owner, if:

      (1) The holder sent the second communication to the apparent owner by first-class mail; and

      (2) A previous communication was:

      (A) Sent by first-class mail;

      (B) Sent immediately preceding 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 communication is returned by the U.S. Postal Service to a holder as undeliverable to an apparent owner, if the holder:

      (1) Sent the previous communication to the apparent owner:

      (A) By first-class mail; and

      (B) Immediately preceding a second communication; and

      (2) Sent the second communication to the apparent owner:

      (A) By first-class mail; and

      (B) More than 30 days after the previous communication under this subparagraph was sent.

  (2)

    (i) Subject to subparagraph (ii) of this paragraph, if the holder does not send communications to an apparent owner by first-class mail, the holder shall attempt to confirm the apparent owner's interest in the property by e-mailing the apparent owner not later than 2 years after the apparent owner's last indication of interest in the property.

    (ii) The holder shall promptly attempt to contact the apparent owner by first-class mail if:

      (1) The holder does not have the information needed to send an e-mail to the apparent owner;

      (2) The holder believes the apparent owner's e-mail address in the holder's records is not valid;

      (3) The holder receives notification that the e-mail was not received; or

      (4) The apparent owner does not respond to the e-mail communication within 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 constitute a communication for purposes of paragraph (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 presumed to have a valid address for the owner of the property.

(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, 3 years after the later of:

    (i) The date the holder is deemed to no longer have a valid address for the owner of the property; or

    (ii) The date the owner last:

      (1) Increased or decreased the amount of the deposit;

      (2) Presented evidence of the deposit for the crediting of interest;

      (3) Corresponded in writing with the banking organization concerning the deposit;

      (4) Accessed the account or information concerning the account;

      (5) Engaged in any credit, trust, or other deposit transaction with the banking organization; or

      (6) 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, 3 years after the later of:

    (i) The date the holder is deemed to no longer have a valid address for the owner of the property; or

    (ii) The date the owner last:

      (1) Increased or decreased the amount of the funds or deposit, or presented an appropriate record for the crediting of interest or dividends;

      (2) Corresponded in writing with the financial organization concerning the funds or deposit;

      (3) Accessed the account or information concerning the account;

      (4) Engaged in any credit, share, or other deposit transaction with the financial organization; or

      (5) 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;

    (ii) Accessed the account or information concerning the account; or

    (iii) 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.

(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.

(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;

  (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) The running of the 3-year period of abandonment ceases immediately on:

  (1) The holder obtaining a valid address for the owner of the property; or

  (2) The occurrence of an action referred to in subsection (b)(1)(ii) or (2)(ii) of this section.

#### Section 17-302

(a) Funds held or owing under any life or endowment insurance policy or annuity contract that has matured or terminated are presumed abandoned if unclaimed for more than 3 years after the funds first become due and payable in accordance with:

  (1) The insurance policy or annuity contract; or

  (2) Section 16-118 of the Insurance Article.

(b) For purposes of this subtitle, a life or endowment insurance policy or annuity contract not matured by actual proof of the death of the insured or annuitant according to the records of the insurance company is matured and the proceeds due and payable if:

  (1) The company knows that the insured or annuitant has died; or

  (2)

    (i) The insured has attained, or would have attained if the insured were living, the limiting age under the mortality table on which the reserve is based;

    (ii) The policy was in force at the time the insured attained, or would have attained, the limiting age specified in item (i) of this paragraph; and

    (iii) Neither the insured nor any other person appearing to have an interest in the policy within the preceding 3 years, according to the records of the company, has assigned, readjusted, or paid premiums on the policy, subjected the policy to a loan, corresponded in writing with the company concerning the policy, or otherwise indicated an interest as evidenced by a memorandum or other record on file prepared by an employee of the company.

(c)

  (1)

    (i) "Unclaimed funds", as defined in paragraph (2) of this subsection, held by a fire, casualty, or surety insurance corporation, shall be presumed abandoned if the last known address of the person entitled to the funds, according to the records of the corporation, is in this State.

    (ii) If a person other than the insured, the principal, or the claimant is entitled to the funds and the address of the person is not known to the corporation or if it is not definite and certain from the records of the corporation which person is entitled to the funds, it is presumed that the last known address of the person entitled to the funds is the same as the last known address of the insured, the principal, or the claimant according to the records of the corporation.

  (2) "Unclaimed funds", as used in this subsection, means all money held by any fire, casualty, or surety insurance corporation unclaimed and unpaid for more than 3 years after the money becomes due and payable, as established from the records of the corporation, either to an insured, a principal, or a claimant under any fire, casualty, or surety insurance policy or contract.

(d) Money otherwise payable according to the records of the corporation is considered due and payable although the policy or contract has not been surrendered as required.

#### Section 17-302.1

(a) In this section, "death master file" means:

  (1) The Social Security Administration Death Master File; or

  (2) Any other database or service that is at least as comprehensive as the Social Security Administration Death Master File for determining that an individual reportedly has died.

(b) For purposes of this section:

  (1) A death master file match described under subsection (c)(3) and (4) of this section occurs if the criteria for an exact or partial match are satisfied as provided by:

    (i) The Insurance Article; or

    (ii) A rule or policy adopted by the Maryland Insurance Commissioner.

  (2) A death master file match or validation of the insured's or annuitant's death does not alter the requirements for a beneficiary, annuitant, or owner of the policy or contract to make a claim to receive proceeds under the terms of the policy or contract.

  (3) An insured or an annuitant is presumed dead if the date of the insured's or annuitant's death is indicated by a death master file match described under subsection (c)(3) and (4) of this section, unless the insurance company has competent and substantial evidence that the insured or annuitant is living, including a contact made by the company with the insured or annuitant or the insured's or annuitant's legal representative.

(c) With respect to a life or endowment insurance policy or annuity contract for which an amount is owed on proof of death, but that has not matured by proof of death of the insured or annuitant, the insurance company shall be deemed to have knowledge of the death of an insured or annuitant when:

  (1) The company receives a death certificate or court order determining that the insured or annuitant has died;

  (2) The company receives notice of the death of the insured or annuitant from:

    (i) The Administrator or an unclaimed property administrator of another state;

    (ii) A beneficiary;

    (iii) A policy owner;

    (iv) A relative of the insured or annuitant;

    (v) A representative of the insured or annuitant, including an administrator, a guardian, a standby guardian, or a temporary guardian; or

    (vi) An executor or other legal representative of the insured's or annuitant's estate;

  (3)

    (i) The company conducts a comparison for any purpose between a death master file and the names of some or all of the company's insureds or annuitants; and

    (ii) Finds a match that provides notice that the insured or annuitant has died; or

  (4)

    (i) The Administrator or the Administrator's agent in the normal course of business conducts a comparison for the purpose of finding matches between a death master file and the names of some or all of the company's insureds or annuitants; and

    (ii) Finds a match that provides notice that the insured or annuitant has died.

(d) A holder of funds under Sec. 17-302 of this subtitle shall, on at least an annual basis:

  (1) Conduct a death master file examination and comparison described under subsection (c)(3) of this section on all insureds and annuitants; and

  (2) Make a record of the date on which any examination and comparison under item (1) of this subsection occurs.

#### Section 17-303

The following funds held by any utility are presumed abandoned:

(1) Any deposit made by a subscriber with a utility to secure payment for, or any sum paid in advance for, utility services to be furnished in the State, less any lawful deduction, that has remained unclaimed by the person who appears on the records of the utility as entitled to it for more than 3 years after the termination of the services for which the deposit or advance payment was made;

(2) Any sum which a utility has been ordered to refund and which was received for utility services rendered in the State, together with any interest on it, less any lawful deduction, that has remained unclaimed by the person appearing on the records of the utility as entitled to it for more than 3 years after the date it became payable in accordance with the final determination or order providing for the refund; and

(3) Any sum paid to a utility for a utility service, which service has not been rendered within 3 years of the payment.

#### Section 17-304

(a)

  (1) For purposes of this section and subject to paragraph (2) of this subsection, a holder shall be deemed to no longer have a valid address for the owner of the property as of the later of:

    (i) The date a second communication is returned by the U.S. Postal Service to a holder as undeliverable to an apparent owner, if:

      (1) The holder sent the second communication to the apparent owner by first-class mail; and

      (2) A previous communication was:

      (A) Sent by first-class mail;

      (B) Sent immediately preceding 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 communication is returned by the U.S. Postal Service to a holder as undeliverable to an apparent owner, if the holder:

      (1) Sent the previous communication to the apparent owner:

      (A) By first-class mail; and

      (B) Immediately preceding a second communication; and

      (2) Sent the second communication to the apparent owner:

      (A) By first-class mail; and

      (B) More than 30 days after the previous communication under this subparagraph was sent.

  (2)

    (i) Subject to subparagraph (ii) of this paragraph, if the holder does not send communications to an apparent owner by first-class mail, the holder shall attempt to confirm the apparent owner's interest in the property by e-mailing the apparent owner not later than 2 years after the apparent owner's last indication of apparent owner interest in the property.

    (ii) The holder shall promptly attempt to contact the apparent owner by first-class mail if:

      (1) The holder does not have the information needed to send an e-mail to the apparent owner;

      (2) The holder believes the apparent owner's e-mail address in the holder's records is not valid;

      (3) The holder receives notification that the e-mail was not received; or

      (4) The apparent owner does not respond to the e-mail communication within 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 constitute a communication for purposes of paragraph (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 presumed to have a valid address for the owner 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 is presumed abandoned 3 years after the later of:

  (1) The date the holder is deemed to no longer have a valid address for the owner of the property; or

  (2) The date the owner last communicated with the business association regarding the property if:

    (i) It is held by a business association organized under the laws of or created in this State;

    (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

    (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.

(c) This section shall apply to the stock or other certificate of ownership on, for or from which the amounts described in subsection (b) of this section have been presumed abandoned only if:

  (1) The holder is deemed to no longer have a valid address for the owner of the property for the preceding 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:

    (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

    (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.

(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.

(e)

  (1) The running of the 3-year period of abandonment ceases immediately upon:

    (i) The holder obtaining a valid address for the owner of the property; or

    (ii) The occurrence of a communication referred to in subsection (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.

(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.

(g) This section does not apply to:

  (1) 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:

    (i) The holder is deemed to no longer have a valid address for the owner of the stock or other intangible ownership interest; or

    (ii) The owner has not within 3 years communicated in any manner described in subsection (c)(2) of this section; or

  (2) Nonescheat capital credits, as defined in Sec. 5-650.1 of the Corporations and Associations Article.

(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 Sec. 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.

#### Section 17-305

All tangible or intangible personal property distributable on forfeiture of the charter or voluntary dissolution of a business association, banking organization, or financial organization organized under the laws of this State, that is unclaimed by the owner 60 days after the date of final distribution, is presumed abandoned.

#### Section 17-306

All intangible personal property and any income or increment on it, held in a fiduciary capacity for the benefit of another person, is presumed abandoned unless, within 3 years after it becomes payable or distributable, the owner has increased or decreased the principal, accepted payment of principal or income, corresponded in writing concerning the property, or otherwise indicated an interest as evidenced by a memorandum on file with the fiduciary.

#### Section 17-306.1

(a) In this section, "returned as undeliverable" means returned by the U.S. Postal Service to the holder as undeliverable to the apparent owner.

(b) Property held in a pension account or retirement account that qualifies for tax deferral under the income tax provisions of the Internal Revenue Code is presumed abandoned if it is unclaimed by an apparent owner of the account after the later of:

  (1) Subject to subsections (d) through (f) of this section, 3 years after:

    (i) The date a first communication sent by the holder by first-class mail to the apparent owner is returned as undeliverable; or

    (ii) The date a second communication sent by the holder by first-class mail to the apparent owner is returned as undeliverable, if the second communication is sent within 30 days after the date of the first communication under item (i) of this item is returned as undeliverable; or

  (2) If applicable, the earlier of the following dates:

    (i) 3 years after the date the apparent owner becomes 72 years old, if determinable by the holder; or

    (ii) Subject to subsection (c) of this section, if the Internal Revenue Code requires distribution to avoid a tax penalty, 2 years after the date the holder:

      (1) Receives confirmation of the death of the apparent owner in the ordinary course of its business; or

      (2) Confirms the death of the apparent owner.

(c) For purposes of establishing a presumption of abandoned property under this section, if a holder in the ordinary course of its business receives notice or an indication of the death of an apparent owner and subsection (b)(2)(ii) of this section applies, the holder shall attempt not later than 90 days after receipt of the notice or indication to confirm whether the apparent owner is deceased.

(d) Subject to subsection (e) of this section, if the holder does not send communications to the apparent owner of an account by first-class mail as described in subsection (b) of this section, the holder shall attempt to confirm the apparent owner's interest in the property by sending the apparent owner an e-mail not later than 2 years after the last indication of apparent owner interest in the property.

(e) The holder shall promptly attempt to contact the apparent owner by registered mail if:

  (1) The holder does not have information needed to send the apparent owner an e-mail or the holder believes that the apparent owner's e-mail address in the holder's records is not valid;

  (2) The holder receives notification that the e-mail was not received; or

  (3) The apparent owner does not respond to the e-mail within 30 days after the holder sends the e-mail.

(f)

  (1) If the registered mail sent by the holder under subsection (e) of this section is returned as undeliverable:

    (i) The registered mail shall constitute a first communication for purposes of subsection (b)(1)(i) of this section; and

    (ii) The holder shall send a second communication to the apparent owner by first-class mail.

  (2)

    (i) If the second communication under paragraph (1)(ii) of this subsection is returned as undeliverable within 30 days after sending the first communication under paragraph (1)(i) of this subsection, the date the second communication is returned as undeliverable shall constitute the date for purposes of subsection (b)(1)(ii) of this section.

    (ii) If the second communication under paragraph (1)(ii) of this subsection is sent more than 30 days after the first communication under paragraph (1)(i) of this subsection is returned as undeliverable, the date the first communication is returned as undeliverable shall control for purposes of determining a date under subsection (b)(1) of this section.

#### Section 17-307

All intangible personal property held for the owner by any court, public corporation, public authority, or public officer of this State or any political subdivision of it that has remained unclaimed by the owner for more than 3 years is presumed abandoned.

#### Section 17-307.1

The balance of the proceeds from the sale of personal property stored at a self-service storage facility that is unclaimed after the expiration of the 1 year period specified in Sec. 18-504(e) of this article is presumed abandoned.

#### Section 17-307.2

(a) Virtual currency is presumed abandoned if it remains unclaimed 5 years after the last indication of apparent owner interest in the property.

(b) Within 30 days before the filing of the report required under Sec. 17-310 of this subtitle, the holder of abandoned virtual currency shall liquidate the virtual currency.

(c) The holder shall remit any liquidation proceeds to the Administrator.

(d) Notwithstanding any other provision under this subtitle, an owner has no right of recourse against a holder or the Administrator to recover any gain in value to the virtual currency that occurs after the liquidation described under subsection (b) of this section.

#### Section 17-308

(a) All unclaimed wages or outstanding payroll checks held or owing in the ordinary course of the holder's business, that have remained unclaimed by the owner for more than 3 years after they became payable, are presumed abandoned.

(b) All intangible personal property, not otherwise covered by this title, including any income or increment on it and deducting any lawful charges, that is held or owing in the ordinary course of the holder's business and has remained unclaimed by the owner for more than 3 years after it became payable or distributable, is presumed abandoned.

(c) Property is payable or distributable for the purpose of this title notwithstanding the owner's failure to make demand or to present any instrument or document required to receive payment.

(d) Property is reportable to this State under subsection (b) of this section under the priority rules established under Sec. 17-301.1(d) of this subtitle.

#### Section 17-308.1

(a) A holder may not impose any charges on a dormant or inactive account or cease payment or accrual of any benefits, including dividends or interest on property during the period of time giving rise to the presumption of abandonment unless:

  (1) The charges or cessation of any benefit are provided for in a valid, enforceable and written contract between the holder and the owner which specifies the amount or rate of the charges and that the benefit will cease;

  (2) For property in excess of $2, the holder gives written notice to the owner at the owner's last known address before the proposed action; and

  (3) The holder imposes charges or ceases accrual or payment of benefits on all dormant or inactive accounts, and does not reverse or otherwise cancel the charges or retroactively pay or accrue benefits with respect to those accounts.

(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 Sec. 17-301.1(b)(3) of this subtitle for 1 year from the date of issuance of the money order.

(c) The notice required in this section is not required with respect to charges imposed or benefits that ceased prior to July 1, 1981.

#### Section 17-308.2

Not more than 120 days or less than 30 days before the filing of the report required under Sec. 17-310 of this subtitle, the holder in possession of presumed abandoned property shall send a written notice by first-class mail to the apparent owner of presumed abandoned property valued at $100 or more to the owner's last known address informing 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.

#### Section 17-309

If specific property which is subject to the provisions of this subtitle is held for an owner whose last known address is in another state, the specific property is not presumed abandoned in this State and is not subject to this subtitle if:

(1) It may be claimed as abandoned or escheated under the laws of the other state; and

(2) The laws of the other state make reciprocal provision that similar specific property is not presumed abandoned or escheatable by the other state when held for an owner whose last known address is in this State.

#### Section 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.

(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.

#### Section 17-310.1

(a) In case any banking or financial organization, insurance corporation, or utility neither holds nor owes any abandoned property specified in this title on June 30 of any year, it shall make a written report to the Administrator so stating as provided in this section.

(b) The report shall be signed by the holder who, by signing, attests to the veracity of the report.

(c) The report shall be made on a standard form and include information that the Administrator requires.

(d)

  (1) For banking or financial organizations, the report shall be for the period of July 1 through June 30 and shall be filed no later than October 31 of the same year.

  (2) For insurance corporations, the report shall be for the period of January 1 through December 31 of each year, and shall be filed no later than April 30 of the following year.

#### Section 17-311

(a)

  (1) Within 365 days from the filing of the report required by Sec. 17-310 of this subtitle, the Administrator shall cause notice to be published in a newspaper of general circulation in the county in the State within which is located the last known address of any person to be named in the notice.

  (2) If an address is not listed or if the address is outside the State, the notice shall be published in the county within which the person who held the abandoned property has the principal place of business in this State.

(b) The published notice shall be entitled "Notice of Names of Persons Appearing to Be Owners of Abandoned Property" and shall contain:

  (1) The names in alphabetical order and last known addresses, if any, of persons listed in the report and entitled to notice in the county specified in this section;

  (2) A statement that information concerning the amount or description of the property and the name and address of the person who held the property may be obtained by any person who possesses an interest in the property, by addressing an inquiry to the Administrator; and

  (3) A statement that a proof of claim may be presented by the owner to the Administrator.

(c) The Administrator is not required to publish in the notice any item valued at less than $50 unless the Administrator considers the publication to be in the public interest.

(d) Within 120 days from the receipt of the report required by Sec. 17-310 of this subtitle, the Administrator shall mail a notice to each person who has an address listed in the report who appears entitled to property valued at $100 or more and presumed abandoned under this subtitle.

(e) The mailed notice shall contain:

  (1) A statement that, according to a report filed with the Administrator, property is being held to which the addressee appears entitled;

  (2) The name and address of the person who held the property and any necessary information regarding any change of the name or address of the holder; and

  (3) A statement that a proof of claim may be presented by the owner to the Administrator.

#### Section 17-312

Every person who has filed a report as provided in Sec. 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.

#### Section 17-313

On the payment or delivery of any abandoned property under this title to the Administrator, the State shall assume custody and shall be responsible for its safekeeping. Any person who pays or delivers abandoned property to the Administrator under this title is relieved of all liability, to the extent of the value of the property paid or delivered, for any claim which exists or may arise with respect to the property. Any holder who has paid money to the Administrator under this title may make payment to any person who appears to the holder to be entitled to it and, on proof of the payment and proof that the payee was entitled to it, the Administrator immediately shall reimburse the holder for the payment.

#### Section 17-315

The expiration of any period of time specified by statute or court order, during which an action or proceeding may be commenced or enforced to obtain payment of a claim for money or recovery of property, may not:

(1) Prevent the money or property from being presumed abandoned property; or

(2) Affect any duty to file a report required by this subtitle or to pay or deliver abandoned property to the Administrator.

#### Section 17-316

(a) Within 1 year after delivery under this title of abandoned property other than money, the Administrator shall determine:

  (1) Whether the property has commercial value; and

  (2) If the property has commercial value, the property's commercial value.

(b)

  (1) Except as provided in subsection (c) of this section, within 1 year after delivery under this title of abandoned property other than money, the Administrator shall offer the abandoned property for sale.

  (2) The sale shall be to the highest bidder at public sale in whatever place in the State affords the most favorable market for the property involved.

  (3) The Administrator may decline the highest bid and reoffer the property for sale if the price bid is insufficient.

(c)

  (1) The Administrator need not offer abandoned property for sale if:

    (i) The probable cost of sale exceeds the Administrator's estimation of the value of the property; or

    (ii) The Administrator determines that the property has no commercial value.

  (2) If under paragraph (1) of this subsection abandoned property need not be offered for sale, the Administrator may:

    (i) Return the property to the holder;

    (ii) Destroy the property; or

    (iii) Otherwise dispose of the property.

(d) The Administrator shall give reasonable notice to the public of any sale held under this section.

(e)

  (1) The purchaser at any sale conducted by the Administrator under this section shall receive title to the property purchased, free from every claim of the owner or prior holder of it and of every person who claims through or under them.

  (2) The Administrator shall execute all documents necessary to complete the transfer of title.

(f) No action by any person may be brought or maintained against the State or any officer of the State for or on account of any transaction entered into pursuant to and in accordance with the provisions of this section.

#### Section 17-317

(a)

  (1)

    (i) All funds received under this title, including the proceeds of the sale of abandoned property under Sec. 17-316 of this subtitle, shall be credited by the Administrator to a special fund.

    (ii) The Administrator shall retain in the special fund at the end of each fiscal year, from the proceeds received:

      (1) An amount not exceeding $5,000,000 for information technology costs of the Administrator, including cybersecurity, customer relation systems, and a system for managing unclaimed property; and

      (2) An amount of funds the Administrator reasonably estimates is sufficient, from which sum the Administrator shall pay any claim allowed under this title.

  (2) After deducting all costs incurred in administering this title from the remaining net funds the Administrator shall distribute $8,000,000 to the Maryland Legal Services Corporation Fund established under Sec. 11-402 of the Human Services Article.

  (3)

    (i) Subject to subparagraph (ii) of this paragraph, the Administrator shall distribute all unclaimed money from judgments of restitution under Title 11, Subtitle 6 of the Criminal Procedure Article to the State Victims of Crime Fund established under Sec. 11-916 of the Criminal Procedure Article to assist victims of crimes and delinquent acts to protect the victims' rights as provided by law.

    (ii) If a victim entitled to restitution that has been treated as abandoned property under Sec. 11-614 of the Criminal Procedure Article is located after the money has been distributed under this paragraph, the Administrator shall reduce the next distribution to the State Victims of Crime Fund by the amount recovered by the victim.

  (4) For fiscal year 2025 and each fiscal year thereafter, after making the distributions required under paragraphs (2) and (3) of this subsection, the Administrator shall distribute $500,000 from the remaining net funds to the Tax Clinics for Low-Income Marylanders Fund established under Sec. 1-207 of the Tax - General Article.

  (5) For each of fiscal years 2024 through 2028, after making the distributions required under paragraphs (2) through (4) of this subsection, the Administrator shall distribute $14,000,000 from the remaining net funds to the Access to Counsel in Evictions Special Fund under Sec. 8-909 of the Real Property Article.

  (6) After making the distributions required under paragraphs (2) through (5) of this subsection, the Administrator shall distribute the remaining net funds not retained under paragraph (1) of this subsection to the General Fund of the State.

(b)

  (1) Before making the distribution, the Administrator shall record the name and last known address, if any, of the owners of funds so distributed and the type of property which the funds distributed represent.

  (2) The record shall be available for public inspection during reasonable business hours by any person who claims a legal interest in any property held by the Administrator, provided that the person gives prior notice to the Administrator.

#### Section 17-318

(a)

  (1) Any person who claims a legal interest in any property delivered to the State under this title must:

    (i) File a claim to the property or to the proceeds from its sale on the form prescribed by the Administrator; and

    (ii) Verify the claim as to its completeness and accuracy.

  (2) After a claim is filed under paragraph (1) of this subsection, the Administrator shall allow or deny the claim and provide the claimant notice of the decision.

  (3) If a claim filed in accordance with this subsection is denied:

    (i) The Administrator shall inform the claimant of the reason for the denial and specify what additional evidence, if any, is required for the claim to be allowed;

    (ii) The claimant may file an amended claim with the Administrator or commence an action under Sec. 17-320 of this subtitle; and

    (iii) The Administrator shall consider an amended claim filed under item (ii) of this paragraph as the initial claim.

  (4) If the Administrator does not take action on a claim during the 6-month period immediately following the filing of a claim under this subsection, the claim shall be deemed denied.

(b)

  (1) The Administrator may waive the filing requirement under subsection (a) of this section if:

    (i) The person receiving the property or payment is the apparent owner included in a report filed under Sec. 17-310 of this subtitle;

    (ii) The Administrator reasonably believes the person is entitled to receive the property or payment; and

    (iii) The property or payment has a value of $5,000 or less.

  (2) If the Administrator waives the filing requirement in accordance with paragraph (1) of this subsection, the Administrator shall make payment in accordance with Sec. 17-319(b) of this subtitle.

(c) The Administrator shall pay or deliver property to a claimant under this section if the Administrator receives evidence sufficient to the satisfaction of the Administrator to establish that the claimant is the owner of the property.

#### Section 17-319

(a)

  (1) The Administrator shall consider any claim filed under this title and may hold a hearing and receive evidence concerning it.

  (2)

    (i) If a hearing is held, the Administrator shall prepare a finding and a decision in writing on each claim filed, stating the substance of any evidence heard by the Administrator and the reasons for the Administrator's decision.

    (ii) The decision shall be a public record.

(b)

  (1) If the claim is allowed, or if the Administrator waives the filing requirement in accordance with Sec. 17-318(b) of this subtitle, the Administrator immediately shall make payment.

  (2) The claim shall be paid without deduction for costs of notices or sale or for service charges.

(c) In satisfying a claim the Administrator shall pay the claimant an amount equal to the sales price obtained at the public sale.

#### Section 17-319.1

(a) Not later than 6 months after a claim is allowed under Sec. 17-318(a) of this subtitle, the Administrator shall deliver the property to the owner or pay to the owner the net proceeds of a sale of the property.

(b) The Administrator may apply property held under this title by the Administrator to a claim for the payment of a debt owed to the State identified by or certified to the Administrator, including debts for unpaid State, county, or municipal tax.

(c) Before delivery to an owner of property or payment to an owner for net proceeds of a sale of property, the Administrator shall:

  (1) Apply the property or net proceeds to any debt under subsection (b) of this section that the Administrator determines is owed by the owner;

  (2) Pay the amount identified by or certified to the Administrator under subsection (b) of this section; and

  (3) Notify the owner of any payment toward a debt under subsection (b) of this section that the Administrator determines is owed by the owner.

(d)

  (1) The Administrator may make periodic inquiries of State and local agencies in the absence of a claim filed under Sec. 17-318(a) of this subtitle to determine whether an apparent owner included in the unclaimed property records of the State has enforceable debts under subsection (b) of this section.

  (2) If the Administrator identifies an enforceable debt during a periodic inquiry, the Administrator shall:

    (i) Apply the property or net proceeds of a sale of the property held by the Administrator to the debt of an apparent owner who appears in the records of the Administrator;

    (ii) Pay the amount identified by or certified to the Administrator under subsection (b) of this section; and

    (iii) Notify the owner of any payment toward a debt under subsection (b) of this section that the Administrator determines is owed by the owner.

#### Section 17-320

(a) Any person aggrieved by a decision of the Administrator or as to whose claim the Administrator has failed to act within 6 months after the filing of the claim, may commence an action in the circuit court for the county to establish the claim.

(b) The proceeding shall be brought within 90 days after the decision of the Administrator or within 1 year from the filing of the claim if the Administrator fails to act.

#### Section 17-321

After receiving reports of property presumed abandoned under this title, the Administrator may decline to receive any property reported which he considers to be valued at less than the cost of giving notice or of holding a sale. He may postpone taking possession until a sufficient sum accumulates, if he considers it desirable because of the small sum involved.

#### Section 17-322

(a) At reasonable times and on reasonable notice, the Administrator may examine the records of any person if there is reason to believe that the person has failed to report property that should have been reported under this title. The Administrator may not examine the records of any person regarding abandoned property after 5 years from the date the person filed the report with the Administrator covering the period of time during which the property allegedly became abandoned, unless the Administrator finds that the person acted fraudulently or with gross negligence with respect to the report.

(b) If any person refuses to permit the examination of records, the Administrator may issue a subpoena to compel the person to testify and produce records. The subpoena shall be served by the sheriff of the county where the person resides or may be found. The person shall be entitled to the same per diem and mileage as witnesses appearing in a circuit court of the State, which shall be paid by the State.

(c) If any person refuses to obey any subpoena so issued or refuses to testify or produce records, the Administrator may present a petition to the circuit court of the county where the person is served with the subpoena or where the person resides. The court then shall issue an order to require the person to obey the subpoena or to show cause for failure to obey it. Unless the person shows sufficient cause for failing to obey the subpoena, the court immediately shall direct the person to obey and, on refusal to comply, adjudge the person to be in contempt of court and punished as the court may direct.

#### Section 17-323

(a)

  (1) A person who fails to pay or deliver abandoned property to the Administrator as required by this title shall pay a penalty equal to 15% of the value of the property.

  (2) If a person fails to file any report or refuses to deliver property to the Administrator as required by this title, the Administrator may bring an action in a court of appropriate jurisdiction to require the filing of the report and to enforce delivery of the property.

(b) A person who willfully fails to render any report or perform any other duty required by this subtitle is subject to a fine of $100 for each day the report is withheld, but not more than $5,000.

(c) In addition to the provisions of subsection (a) of this section, a person who willfully refuses to pay or deliver abandoned property to the Administrator as required by this subtitle is subject to a fine of not less than $500 nor more than $5,000 or imprisonment for not more than six months or both.

(d) The Administrator may waive any penalty required under this section.

#### Section 17-324

(a) The Administrator may enter into agreements with other states to exchange information needed to enable this or another state to audit or otherwise determine unclaimed property that it or another state may be entitled to subject to a claim of custody. The Administrator by rule may require the reporting of information needed to enable compliance with agreements made pursuant to this section and prescribe the form.

(b) To avoid conflicts between the Administrator's procedures and the procedures of administrators in other jurisdictions that enact the Uniform Unclaimed Property Act, the Administrator, so far as is consistent with the purposes, policies, and provisions of this subtitle, before adopting, amending, or repealing rules, may advise and consult with administrators in other jurisdictions that enact substantially the Uniform Unclaimed Property Act and take into consideration the rules of administrators in other jurisdictions that enact the Uniform Unclaimed Property Act.

(c) The Administrator may join with other states to seek enforcement of this subtitle against any person who is or may be holding property reportable under this Act.

#### Section 17-325

All agreements to pay compensation to recover or assist in the recovery of property made within 24 months of the date the property is paid or delivered to the abandoned property office are unenforceable.

#### Section 17-326

This title may be cited as the Maryland Uniform Disposition of Abandoned Property Act.

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Md. Code Ann., Com. Law (as displayed at mgaleg.maryland.gov, October 16, 2026)