Arizona Laws 44-310. Custody by state; recovery by holder; defense of holder
A. On payment or delivery of property to the department, the state assumes custody and responsibility for the safekeeping of the property. A holder who pays or delivers property to the department in good faith is relieved of all liability with respect to the property that arises after the payment or delivery.
Terms Used In Arizona Laws 44-310
- Affidavit: A written statement of facts confirmed by the oath of the party making it, before a notary or officer having authority to administer oaths.
- Apparent owner: means a person whose name appears on the records of a holder as the person entitled to property held, issued or owing by the holder. See Arizona Laws 44-301
- Contract: A legal written agreement that becomes binding when signed.
- Department: means the department of revenue. See Arizona Laws 44-301
- Escheat: Reversion of real or personal property to the state when 1) a person dies without leaving a will and has no heirs, or 2) when the property (such as a bank account) has been inactive for a certain period of time. Source: OCC
- Fiduciary: A trustee, executor, or administrator.
- Holder: means a person who is obligated to hold for the account of or deliver or pay to the owner property that is subject to this chapter. See Arizona Laws 44-301
- including: means not limited to and is not a term of exclusion. See Arizona Laws 1-215
- Lien: A claim against real or personal property in satisfaction of a debt.
- Money order: includes an express money order and a personal money order on which the remitter is the purchaser. See Arizona Laws 44-301
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Person: means an individual, business association, financial organization, estate, trust, government, governmental subdivision, agency or instrumentality or any other legal or commercial entity. See Arizona Laws 44-301
- Property: means tangible property pursuant to section 44-303 or a fixed and certain interest in intangible property that is held, issued or owed in the course of a holder's business or by a government, governmental subdivision, agency or instrumentality and all income or increments from that property. See Arizona Laws 44-301
- State: means a state of the United States, the District of Columbia, the Commonwealth of Puerto Rico or any territory or insular possession that is subject to the jurisdiction of the United States. See Arizona Laws 44-301
B. A holder who has paid money to the department pursuant to this chapter may subsequently make payment to a person who reasonably appears to the holder to be entitled to payment. On a filing by the holder of proof of payment and proof that the payee was entitled to the payment, the department shall promptly reimburse the holder for the payment without imposing any fee or other charge. If the holder seeks reimbursement for a payment made on a negotiable instrument, including a traveler’s check or money order, the department shall reimburse the holder if the holder files proof that the instrument was duly presented and that payment was made to a person who reasonably appeared to be entitled to payment. The department shall reimburse the holder for payment even if the payment was made to a person whose claim was barred pursuant to section 44-321.
C. Without paying any fee or other charge, a holder who has delivered property other than money to the department pursuant to this chapter may reclaim the property if the property is still in the possession of the department and the holder files proof that the apparent owner has claimed the property from the holder.
D. The department may accept a holder’s affidavit as sufficient proof of the holder’s right to recover money and property under this chapter.
E. If a holder pays or delivers property to the department in good faith and after the payment or delivery another person claims the property from the holder or another state claims the money or property under that state’s laws relating to escheat or abandoned or unclaimed property, on written notice of the claim the department shall defend the holder against the claim and indemnify the holder against any liability on the claim that results from payment or delivery of the property to the department.
F. If the department receives any property that is removed from a safe deposit box or any other safekeeping depository the department is subject to the holder’s right to be reimbursed for the cost of the opening and to any valid lien or contract that provides for the holder to be reimbursed for unpaid rent or storage charges. The department shall reimburse the holder from the proceeds that remain after deducting the expense incurred by the department in selling the property.
G. For the purposes of this section, payment or delivery is made in good faith if all of the following requirements are met:
1. Payment or delivery was made in a reasonable attempt to comply with this chapter.
2. At the time of the payment or delivery the holder was not in breach of a fiduciary obligation with respect to the property and based on facts known by the holder at the time of the payment or delivery the holder reasonably believed that the property was presumed abandoned.
3. Records pursuant to which the payment or delivery was made meet reasonable commercial standards of practice.