Louisiana SB 268: BANKS/BANKING: Provides relative to abandonment of safety deposit boxes. (8/1/20)

Bill Text

2020 Regular Session ENROLLED
SENATE BILL NO. 268
BY SENATOR JOHNS AND REPRESENTATIVE LYONS
1 AN ACT
2 To amend and reenact R.S. 6:327(B) and (C) and 659.2 and to enact R.S. 6:327.1, 771, and
3 1142, relative to banks; to provide for the abandonment of safety deposit boxes; to
4 allow for the disposal of unsalable contents; to provide procedures for disposing of
5 or selling of abandoned contents; to provide relative to the Uniform Unclaimed
6 Property Act; to provide relative to savings and loan associations, credit unions, and
7 savings banks; and to provide for related matters.
8 Be it enacted by the Legislature of Louisiana:
9 Section 1. R.S. 6:327(B) and (C) and 659.2 are hereby amended and reenacted and
10 R.S. 6:327.1, 771, and 1142 are hereby enacted to read as follows:
11 §327. Abandonment of safety deposit box
12 * * *
13 B. If the safety deposit box rental is delinquent for six months, the bank after
14 sixty days' notice by mail addressed to the lessee at his address as shown on the
15 safety deposit box contract may, if the rent is not paid within the time specified in
16 said the notice, open the box in the presence of two employees of the bank and a
17 notary public who shall make an inventory of the contents of the box and place such
18 contents in a sealed envelope or other container in the name of the lessee. The bank
19 shall then send notice to the administrator of the Uniform Unclaimed Property Act
20 of 1997 for publication as provided by R.S. 9:161 inclusion in their database and
21 listing on their website that the safety deposit box has been abandoned and that the
22 bank is holding the listed contents thereof. Such The notice shall include the lessee's
23 name and last known address.
24 C. After a bank has entered an abandoned safety deposit box and removed the
25 contents thereof, it shall then hold such contents in the name of the lessee subject to
ACT No. 236
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.

SB NO. 268 ENROLLED
1 a lien and privilege for the unpaid rent, the costs of opening the box and making the
2 inventory of and storing its contents, and any other costs, expenses or other amounts
3 as provided in the lease or by law. If such amounts are not paid in full within one
4 year from the date the safety deposit box became abandoned, the bank may sell all
5 or any part of the contents by public, private, or judicial sale in accordance with
6 Louisiana law and the terms of the safety deposit box contract., and the bank may
7 also dispose of any unsalable contents in accordance with R.S. 6:327.1. After
8 satisfaction of the bank's lien, any remaining proceeds shall be subject to the
9 Uniform Unclaimed Property Act of 1997, R.S. 9:151, et seq. The bank may, but
10 is not required to, treat the remaining proceeds as presumed abandoned and
11 turn them over to the administrator of the Uniform Unclaimed Property Act
12 without having to wait for the passage of time delays set forth in R.S. 9:155.
13 * * *
14 §327.1. Disposition of abandoned safety deposit box contents
15 A. If a bank has entered an abandoned safety deposit box in accordance
16 with the requirements of R.S. 6:327, and the bank decides to proceed with
17 disposing or selling the abandoned contents, then the provisions contained in the
18 safety deposit box rental agreement or the provisions contained in this Section
19 shall apply.
20 B.(1) Prior to a public or private sale of contents from an abandoned
21 box, the following types of property may be classified as unsalable by an
22 independent appraiser, an auctioneer, a pawn broker, or the bank, and disposed
23 of in the following manner:
24 (a) Documents, writings, or photographs having little or no commercial
25 value may be destroyed by the bank, except for those contents subject to the
26 provisions of R.S. 9:155(B).
27 (b) Coins or currency with a face value of twenty dollars or less each that
28 are valued at no more than twice the face value, shall be treated as proceeds of
29 a sale and used to satisfy the bank's lien and any excess proceeds shall be
30 remitted to the administrator of the Uniformed Unclaimed Property Act by
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.

SB NO. 268 ENROLLED
1 paper check or electronic funds transfer.
2 (c) Coins or currency with a face value of greater than twenty dollars
3 each that are valued at one hundred twenty-five percent or less of face value,
4 shall be treated as proceeds of sale and used to satisfy the bank's lien and any
5 excess proceeds shall be remitted to the administrator of the Uniform
6 Unclaimed Property Act by paper check or electronic funds transfer.
7 (d) Any other tangible item having an estimated sale value of twenty-five
8 dollars or less may be destroyed by the bank or donated by the bank to a
9 charitable orga