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Changes to the Arkansas Dormancy Period
Wednesday, May 18, 2016 6:55 AM

During the 2015 Legislative Session, the Arkansas Legislature passed HB 1752, which reduced the escheatment dormancy period from five to three years for certain kinds of property, including deposit accounts, time deposits, and outstanding checks. This law took effect July 22, 2015.

The law did not impact the dormancy period (years in parentheses) for money orders (7), safe deposit box contents (5), or travelers checks (15).

With the review date just around the corner, credit unions currently holding property for Arkansas persons and entities need to make sure that all policies and procedures are updated to reflect the shorter dormancy period. This change may result in a higher than normal amount of reportable assets for this year and may require additional staff resources.

As a reminder, all holders of property must conduct a review to identify property that has met or exceeded dormancy periods in the 12 months preceding July 1 of the current year.  Holders must also file a report with the state identifying the property and submit the property by November 1 if no contact is received from the property owner. 

Holders must also provide property owners with a notice indicating that the holder is in possession of the property subject to turnover. This notice must be mailed between 120 and 60 days before the holder is required to file its November 1 report and serves as a friendly reminder to the property owner that contact is necessary to prevent escheatment.  This notice is required unless:

  1. The credit union has in its records an address for the apparent owner which the credit union’s records do not disclose to be accurate;
  2. The claim of the apparent owner is not barred by a statute of limitations; and
  3. The value of property is fifty dollars ($50) or more.

Holders are also required to submit an affidavit with its November 1 report, indicating that the holder has complied with notice requirements.

For any questions regarding dormant property, please contact Information Central at 512-853-8515, or nbehncke@cornerstoneleague.coop.

For dormancy periods on other kinds of property, please review our Infosight article here, or visit our chart at the following link.