in-20261007-IR-010260364FNA: UNCLAIMED PROPERTY

TITLE 10 OFFICE OF ATTORNEY GENERAL FOR THE STATE Notice of First Public Comment Period LSA Document #26-364 UNCLAIMED PROPERTY PURPOSE OF NOTICE The Office of the Indiana Attorney General's Unclaimed Property Division (OAG) is soliciting public comment on adding and amending rules at 10 IAC 1.5 concerning unclaimed property. ADDITIONAL DOCUMENTS Regulatory Analysis: 20261007-IR-010260364RAA Notice of Public Hearing: 20261007-IR-010260364PHA CITATIONS AFFECTED: 10 IAC 1.5 AUTHORITY: IC 32-34-1.5-87; IC 4-22-2 OVERVIEW Basic Purpose and Background This Proposed Rule is intended to update and align 10 IAC 1.5 with the current unclaimed property statute that was recodified at IC 32-34-1.5. The implementation costs of the proposed rule are not expected to exceed the threshold set in IC 4-22-2-22.7(c)(6). For purposes of IC 4-22-2-28.1, small businesses affected by this rulemaking may contact the Small Business Regulatory Coordinator: For purposes of IC 4-22-2-28.1, the Small Business Ombudsman designated by IC 5-28-17-6 is: Resources available to regulated entities through the small business ombudsman include the ombudsman's duties stated in IC 5-28-17-6, specifically IC 5-28-17-6(9), investigating and attempting to resolve any matter regarding compliance by a small business with a law, rule, or policy administered by a state agency, either as a party to a proceeding or as a mediator. REQUEST FOR PUBLIC COMMENT OAG is soliciting public comment on the proposed rule. Comments may be submitted in one of the following ways: COMMENT PERIOD DEADLINE All comments must be postmarked or time-stamped not later than October 29, 2026. The rule, Regulatory Analysis, appendices referenced in the Regulatory Analysis, and materials incorporated by reference (if applicable) are on file at the Office of the Attorney General for the State, 302 West Washington Street, Indiana Government Center South, 5th Floor, Indianapolis, Indiana and are available for public inspection. Copies of the rule, Regulatory Analysis, and appendices referenced in the Regulatory Analysis are available at the Office of the Attorney General for the State. If OAG does not receive substantive comments during the public comment period or public hearing, the rule may be adopted with text that is the same as or does not substantially differ from the text of the proposed rule published in this notice. PROPOSED RULE Sec. 1. The definitions in the Unclaimed Property Act and in this rule apply throughout this article. Sec. 2. "Act" means the revised unclaimed property act (IC 32-34-1) set forth in IC 32-34-1.5-2. Sec. 4. "Credit memo" memorandum" means all the types of refunds and credit balances that represent the value of a person's property held by a holder and owed to the apparent owner. Sec. 5. "Deduct" or "deducted" means: Sec. 5.5. "Finder" means a person acting on behalf of an apparent owner, with the primary purpose to: property held by the attorney general for a fee, compensation, commission or other remuneration paid by the apparent owner of the property. Sec. 6. "Holder in due course" means the holder of an instrument as defined has the meaning set forth in IC 26-1-3.1-302. Sec. 7. "Law enforcement agency" means any agency or entity as defined in IC 5-2-5-1(14) under IC 10-13-3-10. Sec. 7.5. "Owner" shall have the same meaning as set forth in IC 32-34-1.5-3(21). Sec. 8.5. "Person" shall have the same meaning as set forth in IC 32-34-1.5-3(23). Sec. 1. Any organization A person holding unclaimed property shall, under annual reporting requirements, examine the records of its offices, including branch offices and various subsidiaries, to determine: Sec. 3. (a) Any An unclaimed property report or remittance submitted to the attorney general that: shall may be returned to the holder for correction. (b) The attorney general shall provide a written explanation of the deficiencies in the report and the manner in which how the deficiencies may be corrected. (c) The holder is required to submit a corrected unclaimed property report or remittance to the attorney general within twenty (20) calendar days after the attorney general returns the original report or remittance to the holder. (d) Under IC 32-34-1-42(b) IC 32-34-1.5-18 and IC 32-34-1-45 IC 32-34-1.5-19, failure of the holder to submit a corrected, accurate, and complete report or remittance within the time set forth in subsection (c) is sufficient reason to believe enough proof that the holder's failure to report property is grounds for examination of the holder and grounds for assessment of statutory fines and/or or penalties, or both. Sec. 4. (a) A holder shall immediately notify the attorney general if the reported information previously given to the attorney general has changed. A holder seeking to amend an unclaimed property report previously submitted shall contact the attorney general for instructions on how to amend a holder's report securely and protect any additional personal and confidential information. (a) (b) The holder must file an amended unclaimed property report if any change occurs after a report is submitted to the attorney general. The amended report must include a statement of the reason for the change, when appropriate, including but not limited to, the following reasons: (b) (c) If the attorney general determines that at least one (1) amendment to the holder's report is needed, the amendment or amendments must be filed no not more than thirty (30) days from the latter of either the date of the change or the date the holder became aware of the change date that the attorney general makes a determination. Sec. 5. (a) A holder who has delivered unclaimed property to the attorney general under IC 32-34-1-27 and has subsequently paid an apparent owner under IC 32-34-1-29(c) may request reimbursement. that establishes a claim for reimbursement pursuant to IC 32-34-1.5-31 shall make the request using the designated form or forms and procedure set forth by the attorney general. (b) The attorney general shall reimburse the holder upon presentation of proof of after payment which is verified with documentation that may include: but not be limited to: (c) The attorney general may require a holder to provide government issued identification verifying that a person is qualified to accept reimbursement from the attorney general on behalf of the holder. Sec. 6. (a) Except as provided in subsection (b), a holder of foreign currency must shall exchange the currency for United States dollars before transmitting the property to the attorney general. (b) A holder of foreign currency having a market value greater than face value must shall submit the foreign currency in its original form to the attorney general. Sec. 1. (a) Unclaimed property on the books of the holder that has been converted to income, reversed back to the account upon which the check or draft was drawn, or any other method used to convert the unclaimed property to an asset of the holder must be reported and submitted to the attorney general. (b) The books and records of the holder are presumptive evidence of the existence of such that the intangible property exists. (c) A presumption under subsection (b) may be rebutted by evidence arising from shown in the books and records of the holder, that which may include but are not limited to, stop-payment orders or items that can be verified as accounting errors that establish proving that the original check or draft was issued in error or reissued to the original payee. Sec. 3. The allowable holding presumed abandonment period shall be is determined by the type of liability or by the type of property payable, not the method of payment. Sec. 4. (a) Except as provided in subsections subsection (b), and (c), any property that is automatically renewable, such as an instrument having rollover provisions, is matured upon the expiration of when its initial presumed abandonment time period expires. (b) If the owner consents to a renewal by communicating in writing with the banking or financial organization at or about the time of during the renewal period, or otherwise indicates gives consent, as evidenced shown by a memorandum or other record on file prepared by an employee of the organization, the property is matured upon the expiration date of when the last final time period for which the consent was given expires. (c) If, at the time for delivery to the attorney general, a penalty or forfeiture in the payment of interest would result from the delivery of the property, the time for delivery shall be extended until the earliest date when no penalty or forfeiture would result. Sec. 7. (a) Except as provided in IC 32-34-1-22(b) IC 32-34-1.5-28(b), there must be a valid, written contract between the holder and the owner to permit the lawful withholding of charges for the owner's failure to claim the property within a specified time. No A holder shall may not seek to implement enforce the terms of any contract against the state if it does not do so against owners who claim claiming their assets prior to before remittance. (b) The holder shall cite, in its unclaimed property report, specify, when reporting to the attorney general, the legal authority or contract provision supporting the discontinuation of interest or dividend payments on property during the period of its inactivity. while the owner is inactive. If such those payments would not have been discontinued had if the property had been claimed by the owner prior to before being reported or remitted to the attorney general, and the holder does not regularly waive its contractual right to cease payment of stop paying interest, such that discontinuance is prohibited. (c) The holder shall provide the following information as part of any an unclaimed property report filed from which that has had service charges have been deducted: (d) The A holder shall maintain a record for three (3) ten (10) years from after the last date on which such that service charges under this section were deducted. Sec. 8. (a) Safe deposit boxes or other safekeeping depositories that have been abandoned shall must be opened and inventoried in the presence of at least two (2) employees of the holder, who shall verify by affidavit the contents of the box. After verification, the property contents of the safe deposit box and a copy of the employees' affidavit shall then will be sealed for safekeeping until delivered to the owner or the attorney general. (b) Every A holder maintaining safe deposit boxes or other safekeeping repositories shall report to the attorney general with an inventory of property in its possession that constitutes unclaimed funds. (c) Such The inventory shall described in subsection (b) must include a statement containing the following information: The inventory shall contain such further must also include additional identifying data and information as shall be requested by at the attorney general. general's request. (d) Upon receipt by the attorney general of After receiving the contents of a safe deposit box or other safekeeping repository, the attorney general shall perform an inventory of the property shall be performed by the attorney general to: The attorney general shall assign a holder number and an owner number shall be assigned by the attorney general to identify the items received. (e) This section shall apply applies when the contents of any a safe deposit box or other safekeeping depository is remitted to the attorney general under IC 32-34-1-20(c)(14) , IC 32-34-1-24, and IC 32-34-1-39. IC 32-34-1.5-4, IC 32-34-1.5-8, and IC 32-34-1.5-34. (f) The attorney general may reject the contents of any safe deposit box reported to the attorney general that they determine to be hazardous, illegal contraband, or otherwise dangerous to the safety of their personnel. (g) For foreign currency held in a safe deposit box, the attorney general may convert the currency to United States dollars. The attorney general may auction off foreign currency in a safe deposit box, instead, if the currency has a market value greater than face value. Sec. 9. If property is owned by more than one (1) person, the presumption of presumed abandonment shall occur occurs when the property has been abandoned by all the owners each owner for the applicable time period. Sec. 2. (a) Claims shall must be prepared and filed only on the form provided by the attorney general, which shall be provided is given to the claimant upon on request, or after filing a claim through the unclaimed property website maintained by the attorney general. (b) The claimant shall assert on the appropriate form that he or she is they are the true owner of the unclaimed property and agrees agree to indemnify and hold harmless the attorney general and the state of Indiana in the event of if a successful claim to such that property is made by another claimant. (c) Claims amounts shown on databases and claim forms are subject to verification by the attorney general to confirm an amount is accurate and the property's status. Sec. 3. (a) A claim is considered completed and filed with the attorney general after the attorney general receives the documentation required to make an accurate decision of ownership. The attorney general shall consider allow or deny each claim within ninety (90) days after receipt of receiving the completed form and the documentation necessary needed to support the claim. (b) The attorney general shall give written notice to the claimant if the a claim is denied in whole or in part. The notice may be given sent by mailing it United States mail to the last mailing address if any, stated or email address provided in the claim. as the address to which notices are to be sent. If no address for notices is stated in the claim, the notice may be mailed to the last address, if any, of the claimant as stated in the claim. Sec. 4. (a) Information required by the attorney general to prove ownership of unclaimed property shall may consist of a copy of the claimant's driver's license or other picture identification, a document proving the claimant's Social Security number, and a copy of one (1) or more any of the following documents: (b) In addition to items set out in subsection (a), the minimum requirements needed to establish ownership for various the attorney general may require the following additional documentation for specific types of property: are as follows; (c) If the subject property is a check, the claimant must, shall, in addition to submitting a fully completed claim form, submit: (d) When a claimant submits documentation to the attorney general as proof of being entitled to make a claim for unclaimed property and the documentation is written in a language other than English, the claimant shall provide translated, certified copies of the documents the attorney general may reasonably rely on to make a determination regarding the claim. Sec. 5. Any A person acting on behalf of a business claiming an interest in the unclaimed, intangible personal property of a business or a business account in the custody of the attorney general shall file with the attorney general the following: Sec. 6. (a) There is a presumption It is presumed that the stock book register or file of a corporation shows the owner of the stock certificate or other certificate of ownership of the corporation and the amount of ownership interest in the corporation. (b) There is a presumption It is presumed that the records of a holder show ownership of or entitlement to other intangible property. Sec. 7. (a) When a person as defined in IC 32-34-1-15 is in receivership or in bankruptcy, the receiver or trustee in bankruptcy is the proper claimant upon the presentment of once certified copies of the entry of appointment are submitted. (b) Payment will not be made to the an owner after due notice has been received by the attorney general from the receiver, the trustee in bankruptcy, or the court in which execution where a levy has been levied. placed. Sec. 8. Any A creditor of an apparent owner claiming an interest in unclaimed property in the custody of the attorney general general's custody shall file the following with the attorney general: Sec. 10. (a) The owner of a cashier's check is presumed to be the payee unless the remitter has the cashier's check in his or her their possession. (b) A payee is presumed to have received payment for a cashier's check or other instrument and the payee must establish shall prove that the check was not cashed and that the owner is not in fact, a an actual holder in due course. (c) It is the responsibility of the payee to disburse any funds or property in accordance with any under an existing contract or agreement. Sec. 11. (a) Stock certificates received through safe deposit boxes or directly from a holder may be released to the rightful owner by the following methods: (b) The An owner must may be required to sign a receipt acknowledging delivery of the certificate. Sec. 12. (a) Warrants for payment of Unclaimed property shall payments must be authorized and payment made: (b) It shall be the responsibility of The payee to disburse any is responsible for disbursing funds or property in accordance with any under an existing contract or agreement. other legal obligation to pay. (c) Where there are Whenever multiple claimants claim property held in the attorney general's custody, the attorney general shall may pay one (1) of the claimants a claimant only after that claimant has obtained releases from all the other claimants, allowing which allows payment to that claimant and releasing releases the attorney general from liability. Sec. 13. (a) At the discretion of the attorney general, a successful claimant to the contents of a safe deposit box held by the attorney general must may be required to appear in person or send an authorized agent to receive such the property at a place designated by the attorney general. (b) Securities, warrants, checks, or Other tangible or intangible property may be sent by first-class, certified, U.S. or registered United States mail, postage prepaid, to the claimant's address on an approved claim form, or as another verifiable address requested by the claimant. directs. Sec. 14. When reviewing a claim is due to be paid on a mineral interest that has been sold by the owner or the heir, all the monies reported to the attorney general before the delivery date of delivery of a deed shall be is paid to the grantor. Monies reported after the delivery date of delivery of a deed shall be are paid to the grantee. Sec. 15. If the attorney general pays a claimant in error, the attorney general may do the following: Sec. 16. (a) A finder shall provide to the attorney general a finder agreement between the apparent owner or owners and finder, which meets the requirements of IC 32-34-1.5-74 and IC 32-34-1.5-75, for each claim filed with the attorney general. (b) When a person or an entity is acting as a finder and claiming property on behalf of an apparent owner, the finder shall submit to the attorney general sufficient documentation showing the finder has the authority to make the claim on the apparent owner's behalf. The documentation may include the following: (c) A finder may not charge fees beyond the statutory maximum amount permitted by IC 32-34-1.5-74 and IC 32-34-1.5-75 for services related to the act of finding and recovering property, including genealogical survey services or probate and estate services. (d) If a claim submitted by a finder is denied when the finder agreement is determined to be unenforceable under IC 32-34-1.5-74 and IC 32-34-1.5-75, the finder may submit a new claim, with a compliant version of any revised finder agreement to the attorney general for review. (e) On the approval of a claim submitted to the attorney general by a finder, the attorney general will deliver payments directly to only the apparent owner or owners or court-appointed representative of an apparent owner. (f) For purposes of enforcing IC 32-34-1.5-75(a), delivery shall mean the date on which the property is reconciled in attorney general's unclaimed property system. Sec. 1. (a) All Items of contraband, and all the identifying information related to the item, shall items, must be made available to law enforcement agencies as soon as possible after they are received. (b) The attorney general, in conjunction with law enforcement agencies, shall determine the method of storage, disposal, and delivery of contraband. Sec. 2. (a) The attorney general shall notify the appropriate law enforcement agency upon receipt of any after receiving a firearm or ammunition, and will furnish all the identifying information related to the firearm. (b) The attorney general, in conjunction with law enforcement agencies, shall determine the method of storage, disposal, and delivery of a firearm or ammunition. (b) After the (c) When a law enforcement agency notifies the attorney general that the firearm or ammunition is not connected with any criminal investigation, the attorney general may determine that the firearm shall or ammunition may be sold at auction by a dealer licensed to sell firearms. (c) The dealer shall conduct the sale of firearms in strict compliance with Indiana laws and rules concerning firearms sales. Any firearm that may not lawfully be sold shall be treated as property of no obvious commercial value or as contraband. Sec. 3. (a) Securities and commodities received by the attorney general as unclaimed property shall be sold as soon as practical. (b) (a) Securities and commodities that become reportable abandoned property under the act when remitted to the attorney general must include all interest, dividends, stock splits, if any, warrants, or other rights, even though the interest, dividends, stock splits, warrants, or other rights standing alone would not otherwise be reportable abandoned property. (c) (b) Interest, dividends, stock splits, warrants, or other rights that become reportable abandoned property under the act must, when remitted to the attorney general, include the underlying security or commodity giving rise to providing the interest, dividends, stock splits, warrants, or other rights. (d) The attorney general may, (c) When remittance cannot be made as provided prescribed in subsection (c), (b), the attorney general may provide written instructions to the holder for remittance of the particular security or commodity. Sec. 4. Unclaimed property of intrinsic or historical value if it is determined that it has to have no substantial commercial value may be loaned or donated to other agencies or institutions if deemed by the attorney general determines that the retention of such keeping the property would be of public is in the public's interest. Sec. 1. Unless otherwise provided by statute, the reports required by IC 32-34-1-26(a) IC 32-34-1.5-20 to be filed by holders of property presumed to be abandoned must be filed as follows: Documents Incorporated by Reference: None Received by Publisher Small Business Regulatory Coordinator: Samuel Sites, Office of Attorney General, Unclaimed Property Division, P.O. Box 2504, Greenwood, IN 46142, 1 (317) 497-3009, Samuel.Sites@atg.in.gov