N.Y. Abandoned Property Law § 511: Unclaimed property; when deemed abandoned

§ 511. Unclaimed property; when deemed abandoned. The following

unclaimed property shall be deemed abandoned property:

1. Any amount (a) received in this state after June thirtieth,

nineteen hundred forty-six by a broker or dealer or nominee of such

broker or dealer as the holder of record of a security remaining unpaid

to the person entitled thereto for three years following the receipt

thereof, or (b) when paid to such broker, dealer or nominee on or with

respect to a security which has been deemed abandoned.

1-a. Any amount (a) received in this state on or after July first,

nineteen hundred seventy-four by a broker or dealer or nominee of such

broker or dealer other than as the holder of record of a security

remaining unpaid to the person entitled thereto for three years

following the receipt thereof, or (b) when paid to such broker, dealer

or nominee on or with respect to a security which has been deemed

abandoned.

2. Any amount (a) received in this state after June thirtieth,

nineteen hundred forty-six due from a broker or dealer or nominee of

such broker or dealer to a customer which has remained unpaid to the

customer for three years after the date of the last entry, other than

the receipt of dividends or interest in the account of such broker,

dealer or nominee with such customer, or (b) payable on or with respect

to a security which has been deemed abandoned.

3. Any security held in this state by a broker or dealer, or nominee

of such broker or dealer, as the holder of record of a security for a

customer or for a person or persons unknown to such broker or dealer or

nominee where, for three successive years, all amounts paid thereon or

with respect thereto and received after June thirtieth, nineteen hundred

forty-six by such broker or dealer or nominee have remained unclaimed.

Provided, however, that if any amount or security specified in

subdivision one, two or three of this section is reflected, recorded, or

included in an account with respect to which such broker or dealer has

on file evidence in writing received within the three years immediately

preceding the thirty-first day of December preceding the date such

amount or security would otherwise be payable or deliverable pursuant to

section five hundred twelve that the person entitled thereto had

knowledge of such account, then such amount or security shall not be

deemed abandoned property.

4. Any security held by a broker or dealer or nominee of such broker

or dealer reflected, recorded, or included in an account with respect to

which, for three successive years, all statements of account or other

communications which have been sent, via first class mail, to the

customer at his last known address have been returned to such broker,

dealer or nominee by the postal authorities for inability to locate the

customer, and no written communication has been received from the

customer by such broker, dealer or nominee, provided such security was

received or is held in this state by such broker, dealer or nominee or

the last known address of the customer is located in this state.

5. Any wages held and payable on or after July first, nineteen hundred

sixty-six by a broker or dealer, as defined in section five hundred ten

of this article, for the benefit of a person or persons, known or

unknown shall be deemed to be abandoned property, where for three

successive years:

(a) All such wages have remained unpaid to such person, and

(b) No written communication has been received from such person by the

holder, and

(c) Notice regarding such wages, if sent by the broker or dealer, via

first class mail, to such person at his last known address has been

returned to the broker or dealer by the postal authorities for inability

to locate such person.

6. Any broker or dealer who satisfies the requirements of this

subdivision may determine the property which on the thirty-first day of

December in the years nineteen hundred seventy-two, nineteen hundred

seventy-three, nineteen hundred seventy-four and nineteen hundred

seventy-five shall be deemed abandoned property pursuant to subdivisions

one and three of this section relating to the years nineteen hundred

sixty-seven, nineteen hundred sixty-eight, nineteen hundred sixty-nine,

and nineteen hundred seventy by the method hereinafter in this

subdivision described and the amount so determined as at any such date

shall be deemed to be all of such abandoned property held by such broker

or dealer pursuant to subdivisions one and three of this section on such

date.

The broker or dealer shall compute separately for each of the years

nineteen hundred sixty-five and nineteen hundred sixty-six (each of

which years is referred to in this subdivision as a "base year") the

total value of all stock and cash dividends received by such broker or

dealer, or nominee of such broker or dealer, in this state during such

year as the holder of record of a security. The value of any dividend

paid in stock shall be the mean price of such stock during the calendar

month in which the dividend was received as reported by any generally

recognized statistical service or, if not so reported, as established in

any other manner satisfactory to the state comptroller. The total value

of all such stock and cash dividends thus determined for each base year

shall be the denominator for that base year. The broker or dealer shall

then determine the total value of all such dividends received during

each base year belonging to unknown owners as reported to the state

comptroller, or as required to be so reported pursuant to this article,

which continued to be held by such broker or dealer, or nominee of such

broker or dealer, unpaid to the person entitled thereto on the December

thirty-first occurring five years after the close of such base year. To

the extent any such dividends which continued to be so held unpaid on

any such December thirty-first consisted of stock, such stock shall be

valued at the mean price of such stock during the calendar month ending

on such December thirty-first as reported by any generally recognized

statistical service or, if not so reported, as established in any other

manner satisfactory to the state comptroller. The total value of such

remaining dividends thus determined for each base year shall be the

numerator for that base year. The sum of the numerators for the base

years shall be divided by the sum of the denominators for the base years

and the result thus obtained shall be multiplied by two. The product

obtained as the result of such multiplication shall be the average

factor of such broker or dealer.

In order to determine the property which on the thirty-first day of

December, nineteen hundred seventy-two shall be deemed abandoned

property pursuant to subdivisions one and three of this section relating

to the year nineteen hundred sixty-seven the broker or dealer shall

determine (i) the total value of all stock and cash dividends (valued as

above provided) received by such broker or dealer, or nominee of such

broker or dealer, in this state during nineteen hundred sixty-seven as

the holder of record of a security and shall multiply such total value

by the average factor of such broker or dealer, (ii) the aggregate

amount of stock and cash dividends (valued as above provided) received

by such broker or dealer, or nominee of such broker or dealer, in this

state during nineteen hundred sixty-seven as the holder of record of a

security for a person or persons unknown to such broker or dealer, less

the cost incurred by such broker or dealer not later than the

thirty-first day of December, nineteen hundred seventy-two in covering

stock and cash dividends which should have been received by such broker

or dealer, or nominee of such broker or dealer, during nineteen hundred

sixty-seven but, according to the books and records of such broker or

dealer, were not received, and (iii) the aggregate amount of interest

payments received by such broker or dealer, or nominee of such broker or

dealer, in this state during nineteen hundred sixty-seven on securities

held for persons unknown to such broker or dealer, less the cost

incurred by such broker or dealer not later than the thirty-first day of

December, nineteen hundred seventy-two in covering interest payments

which should have been received by such broker or dealer, or nominee of

such broker or dealer, during nineteen hundred sixty-seven but,

according to the books and records of such broker or dealer, were not

received. The greater of the two amounts determined pursuant to clauses

(i) and (ii) of the preceding sentence, plus the amount determined

pursuant to clause (iii) of such sentence, shall be deemed abandoned

property pursuant to subdivisions one and three of this section relating

to the year nineteen hundred sixty-seven on the thirty-first day of

December nineteen hundred seventy-two.

In order to determine the property which on the thirty-first day of

December, nineteen hundred seventy-three shall be deemed abandoned

property pursuant to subdivisions one and three of this section relating

to the year nineteen hundred sixty-eight the broker or dealer shall

determine (i) the total value of all stock and cash dividends (valued as

above provided) received by such broker or dealer, or nominee of such

broker or dealer, in this state during nineteen hundred sixty-eight as

the holder of record of a security and shall multiply such total value

by the average factor of such broker or dealer, (ii) the aggregate

amount of stock and cash dividends (valued as above provided) received

by such broker or dealer, or nominee of such broker or dealer, in this

state during nineteen hundred sixty-eight as the holder of record of a

security for a person or persons unknown to such broker or dealer, less

the cost incurred by such broker or dealer not later than the

thirty-first day of December, nineteen hundred seventy-three in covering

stock and cash dividends which should have been received by such broker

or dealer, or nominee of such broker or dealer, during nineteen hundred

sixty-eight but, according to the books and records of such broker or

dealer, were not received, and (iii) the aggregate amount of interest

payments received by such broker or dealer, or nominee of such broker or

dealer, in this state during nineteen hundred sixty-eight on securities

held for persons unknown to such broker or dealer, less the cost

incurred by such broker or dealer not later than the thirty-first day of

December, nineteen hundred seventy-three in covering interest payments

which should have been received by such broker or dealer, or nominee of

such broker or dealer, during nineteen hundred sixty-eight but,

according to the books and records of such broker or dealer, were not

received. The greater of the two amounts determined pursuant to clauses

(i) and (ii) of the preceding sentence, plus the amount determined

pursuant to clause (iii) of such sentence, shall be deemed abandoned

property pursuant to subdivisions one and three of this section relating

to the year nineteen hundred sixty-eight on the thirty-first day of

December, nineteen hundred seventy-three.

In order to determine the property which on the thirty-first day of

December, nineteen hundred seventy-four shall be deemed abandoned

property pursuant to subdivisions one and three of this section relating

to the year nineteen hundred sixty-nine the broker or dealer shall

determine (i) the total value of all stock and cash dividends (valued as

above provided) received by such broker or dealer, or nominee of such

broker or dealer, in this state during nineteen hundred sixty-nine as

the holder of record of a security and shall multiply such total value

by the average factor of such broker or dealer, (ii) the aggregate

amount of stock and cash dividends (valued as above provided) received

by such broker or dealer, or nominee of such broker or dealer, in this

state during nineteen hundred sixty-nine as the holder of record of a

security for a person or persons unknown to such broker or dealer, less

the cost incurred by such broker or dealer not later than the

thirty-first day of December, nineteen hundred seventy-four in covering

stock and cash dividends which should have been received by such broker

or dealer, or nominee of such broker or dealer, during nineteen hundred

sixty-nine but, according to the books and records of such broker or

dealer, were not received, and (iii) the aggregate amount of interest

payments received by such broker or dealer, or nominee of such broker or

dealer, in this state during nineteen hundred sixty-nine on securities

held for persons unknown to such broker or dealer, less the cost

incurred by such broker or dealer not later than the thirty-first day of

December, nineteen hundred seventy-four in covering interest payments

which should have been received by such broker or dealer, or nominee of

such broker or dealer, during nineteen hundred sixty-nine but, according

to the books and records of such broker or dealer, were not received.

The greater of the two amounts determined pursuant to clauses (i) and

(ii) of the preceding sentence, plus the amount determined pursuant to

clause (iii) of such sentence, shall be deemed abandoned property

pursuant to subdivisions one and three of this section relating to the

year nineteen hundred sixty-nine on the thirty-first day of December

nineteen hundred seventy-four.

In order to determine the property which on the thirty-first day of

December, nineteen hundred seventy-five shall be deemed abandoned

property pursuant to subdivisions one and three of this section relating

to the year nineteen hundred seventy the broker or dealer shall

determine (i) the total value of all stock and cash dividends (valued as

above provided) received by such broker or dealer, or nominee of such

broker or dealer, in this state during nineteen hundred seventy as the

holder of record of a security and shall multiply such total value by

the average factor of such broker or dealer, (ii) the aggregate amount

of stock and cash dividends (valued as above provided) received by such

broker or dealer, or nominee of such broker or dealer, in this state

during nineteen hundred seventy as the holder of record of a security

for a person or persons unknown to such broker or dealer, less the cost

incurred by such broker or dealer not later than the thirty-first day of

December, nineteen hundred seventy-five in covering stock and cash divi-

dends which should have been received by such broker or dealer, or

nominee of such broker or dealer, during nineteen hundred seventy but,

according to the books and records of such broker or dealer, were not

received, and (iii) the aggregate amount of interest payments received

by such broker or dealer, or nominee of such broker or dealer, in this

state during nineteen hundred sixty-nine on securities held for persons

unknown to such broker or dealer, less the cost incurred by such broker

or dealer not later than the thirty-first day of December, nineteen

hundred seventy-five in covering interest payments which should have

been received by such broker or dealer, or nominee of such broker or

dealer, during nineteen hundred seventy but, according to the books and

records of such broker or dealer, were not received. The greater of the

two amounts determined pursuant to clauses (i) and (ii) of the preceding

sentence, plus the amount determined pursuant to clause (iii) of such

sentence, shall be deemed abandoned property pursuant to subdivisions

one and three of this section relating to the year nineteen hundred

seventy on the thirty-first day of December, nineteen hundred

seventy-five.

Each broker or dealer which uses the procedure described above in this

subdivision shall maintain for a period of not less than six years

commencing January first, nineteen hundred seventy-two, books and

records evidencing the receipt of dividends in this state for each of

the base years, and the payment thereof over the five years succeeding

each base year.

Any broker or dealer who chooses to determine the property which on

the thirty-first day of December in the years nineteen hundred

seventy-two or nineteen hundred seventy-three shall be deemed abandoned

property pursuant to subdivisions one and three of this section relating

to the years nineteen hundred sixty-seven or nineteen hundred

sixty-eight by the method described in this subdivision shall thereafter

determine the property which on the thirty-first day of December in each

subsequent year ending not later than December thirty-first, nineteen

hundred seventy-five shall be deemed abandoned property pursuant to

subdivisions one and three of this section relating to a year not later

than nineteen hundred seventy by the method described in this

subdivision. No broker or dealer may choose to determine the property

which on the thirty-first day of December in the years nineteen hundred

seventy-four or nineteen hundred seventy-five shall be deemed abandoned

property pursuant to subdivisions one and three of this section relating

to the years nineteen hundred sixty-nine or nineteen hundred seventy by

the method described in this subdivision unless such broker or dealer

shall have used the method described in this subdivision to determine

the property which on the thirty-first day of December in the year

nineteen hundred seventy-three shall be deemed abandoned property

pursuant to subdivisions one and three of this section relating to the

year nineteen hundred sixty-eight.

The method of determining abandoned property pursuant to subdivisions

one and three of this section as described in this subdivision shall be

available only to such brokers or dealers as have made written reports

pursuant to section five hundred thirteen in each of the years nineteen

hundred seventy-one and nineteen hundred seventy-two covering each of

the base years.

In the event that an audit of a broker or dealer by the state

comptroller establishes that one or more of the dollar values determined

by the broker or dealer for the purpose of computing the average factor

of such broker or dealer pursuant to this subdivision was incorrect, the

corrected average factor of such broker or dealer established as a

result of such audit shall be determined to be the average factor

required to be used by such broker or dealer in determining abandoned

property pursuant to this subdivision.

Any broker or dealer who does not determine abandoned property

pursuant to subdivisions one and three of this section by the method

described in this subdivision and who during any of the calendar years

nineteen hundred sixty-seven, nineteen hundred sixty-eight, nineteen

hundred sixty-nine or nineteen hundred seventy received in this state

any stock dividend as the holder of record of a security for a person or

persons unknown to such broker or dealer and who sold any such stock

dividend during any such or subsequent calendar year, shall pay the

proceeds of such sale to the state comptroller not later than the

thirty-first day of December, nineteen hundred seventy-three and such

proceeds shall, for all purposes of this chapter be deemed abandoned

property on the thirty-first day of December of the calendar year during

which such sale takes place.