137TH GENERAL ASSEMBLY
HOUSE BILL NO. 370
AN ACT TO AMEND TITLE 12 OF THE DELAWARE CODE RELATING TO UNCLAIMED DIVIDENDS, INTEREST AND OTHER DISTRIBUTIONS MADE BY ISSUERS OF SECURITIES AND HELD BY FINANCIAL INTERMEDIARIES FOR OWNERS WHOSE IDENTITIES ARE UNKNOWN.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:
Section 1. Amend Section 1198(10), Chapter 11 of Title 12 of the Delaware Code, by inserting after the phrase "personal property" as it appears for the first time in said subsection the following:
"including 'distributions held by financial Intermediaries for unknown owners' as that phrase is defined in subsection (11) of this section,"
Section 2. Amend Section 1198, Chapter 11 of Title 12 of the Delaware Code by adding thereto a new subsection (11) to read as follows:
"(11) 'Distributions held by financial intermediaries for unknown owners' means property as generally defined in subsection (10) of this section, which consists of dividends, interest, stock and other distributions made by issuers of securities which are held by financial intermediaries (including, by way of example and not limitation, banks, transfer agents, brokers, and other depositories) for beneficial owners whose identities are unknown."
Section 3. Amend §1201, Chapter 11 of Title 12 of the Delaware Code by striking the word "Ninety" as it appears at the beginning of said section and substituting in lieu thereof the phrase "Except as otherwise provided in subsection (b) of this section, ninety".
Section 4. Amend §1201, Chapter 11 of Title 12 of the Delaware Code by designating existing §1201 as subsection "(a)" of said section and by adding to said section
new subsection "(b)" to read as follows:
"(b) In the case of 'distributions held by financial intermediaries for unknown owners', as defined in §1198(11) of this title, payment or delivery shall be made on or before the date required for filing of the report pursuant to §1199 of this title,"
Section 5 Effective Date. Holders of property for which the period of dormancy equals or exceeds five years as of December 31, 1993, shall report and remit or deliver such property by the later of: (a) The date required under Chapter 11 of Title 12 of the Delaware Code as amended by this Act; and (b) A date 21 days from the enactment of this Act into law, subject to an extension of time for payment or delivery based upon reasonable cause shown, such extension period not to exceed 30 days, but in no case later than June 1, 1994. The State Escheator shall not impose penalties under §1192 of Title 12 in the case of such property, provided such property is reported and remitted in accordance with this Act.