Tuesday, June 21, 2011

Breaking News: Nevada Passes New Law Targeting High-Dollar Holders

The Governor of Nevada has approved Senate Bill 136.  The new law, which makes several changes to Nevada's banking laws, also makes some very unique changes to the state unclaimed property act.  The new legislation shortens the dormancy period for several property types, but only for holders who have reported $10 million in the most recent year's report.

Specifically, the relevant language of the new law provides that for stock, security interests, debt of a business association, deposits and similar accounts, retail credits and for all other non-specified property:

the 3-year period described in each of those paragraphs must be reduced to a 2-year period if the holder of the property reported more than $10 million in property presumed abandoned on the holder's most recent report of abandoned property

Senate Bill 136 at Section 8.  Though the universe of Nevada holders reporting and remitting $10 million per year is probably minimal, this marks the first time that a state is explicitly targeting large-volume holders for special treatment (i.e., shorter dormancy periods) under the unclaimed property laws.

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