N.Y. Abandoned Property Law § 1317: Unclaimed security deposits held by the title insurance companies

§ 1317. Unclaimed security deposits held by the title insurance

companies. 1. Any amount held or owing by a domestic or foreign title

insurer or by an agent or representative of such insurer as a security

deposit, relating to the transfer or financing of real property located

in this state, made as an inducement to issue a title insurance policy

shall be deemed abandoned property if unclaimed as of December

thirty-first in any year for three years from the date of deposit,

unless there has been written communication from the depositor or other

person entitled thereto to the insurer to its agent or representative

within said three-year period.

2. Any such property deemed abandoned as of the preceding December

thirty-first shall be paid and delivered to the comptroller within the

first ten days of March in each year, together with a report of said

property, including a listing of depositors and lienholders, in such

form as the comptroller may prescribe.

3. The title insurer or its agent or representative shall retain

records of the names and addresses of the depositors and lienholders,

and any records necessary to show proof of entitlement of such deposits.

4. Notwithstanding any other provision of law to the contrary, the

rights of a depositor to payment from a title insurer or its agent or

representative pursuant to a security deposit agreement and the

obligations of such insurer its agent or representative to fulfill the

requirements specified in any such agreement shall in no way be

affected, impaired or enlarged by reason of the provisions of this

section or by reason of the payment or delivery to the comptroller of

abandoned property hereunder. Claim for reimbursement may be filed with

the comptroller by any title insurer or its agent or representative who

may be required to pay or deliver any abandoned property to the

comptroller pursuant to this section.

5. The comptroller may require proof that the title insurer has made

payment on the underlying claim under the terms of the security deposit

agreement and is entitled to reimbursement therefor and after audit the

comptroller shall pay the same.

6. The comptroller shall not be liable for any action by the

comptroller made in good faith or based upon representations made by a

title insurer pursuant to this section.