KRS 393.117: Conditions governing enforceability of agreements to locate property

presumed abandoned.

(1) An agreement by an owner, the primary purpose of which is to locate, deliver,

recover, or assist in the recovery of property that is presumed abandoned, is vo id

and unenforceable if it was entered into during the period commencing on the date

that the property was presumed abandoned and extending to a time that is twenty -

four (24) months after the date that the property is paid or delivered to the

department. T his subsection shall not apply to an owner's agreement with an

attorney to file a claim as to identified property or contest the administrator's denial

of a claim.

(2) An agreement by an owner, the primary purpose of which is to locate, deliver,

recover, o r assist in the recovery of property and that is not in violation of

subsection (1) of this section, is enforceable only if:

(a) The agreement is in writing;

(b) The agreement provides that the fee or compensation agreed upon is an

amount not more than ten percent (10%) of the value of the property collected;

(c) The agreement clearly sets forth the nature of the property and the services to

be rendered;

(d) The agreement is signed by the apparent owner; and

(e) The agreement states the value of the property before and after the fee or other

compensation has been deducted.

(3) An agreement covered by this section that provides for compensation that is

unconscionable is unenforceable except by the owner. An owner who has agreed to

pay compensation that is unc onscionable, or the administrator on behalf of the

owner, may maintain an action to reduce the compensation to a conscionable

amount. The court may award reasonable attorney's fees to an owner who prevails

in the action.

(4) This section does not preclude an owner from asserting that an agreement covered

by this section is invalid on grounds other than unconscionable compensation.

(5) An advertisement, a written communication, or an agreement concerning the

location, delivery, recover, or assistance in the recovery of property reported under

this chapter shall contain a provision stating that, by law, any contract provision

requiring the payment of a fee for finding property that has been held by the

administrator for less than twenty-four (24) months is void and not enforceable, and

that fees are limited to an amount not more than ten percent (10%) of the value of

the property collected.