Hoosier Banker 25 reporting and delivering the property to the attorney general. Unlike the Unclaimed Property Act, the RUPA allows banks to use electronic mail for those communications, should they choose. For example, under the Unclaimed Property Act, financial institutions were required to send a written notice (a due diligence letter) by first-class mail to the apparent owner of property that is presumed abandoned within a certain time frame prior to reporting it to the attorney general. Under the RUPA, that notice may be sent to the apparent owner by first-class mail or electronic mail, if such person has previously consented to receiving electronic mail from the financial institution and if the financial institution elects to send it electronically. Ultimately, the financial institution gets to decide how due diligence notices are sent. Potential audits. The RUPA authorizes the attorney general to contract with thirdparty audit firms to conduct examinations of companies, including financial institutions, for unreported or improperly reported property. These audit firms may be compensated by the attorney general on a fixed fee, hourly fee or contingent fee basis, with the payments based upon the amount or value of property paid or delivered to the attorney general as a result of the examination. Necessary actions. The penalties and interest assessed for a failure to comply with the requirements of the unclaimed property laws can be substantial. Accordingly, in order to minimize their risk, we recommend that financial institutions develop a comprehensive plan for complying with the RUPA which would include, at a minimum, the following actions: • Thoroughly review the RUPA and the financial institution’s current unclaimed property policies and procedures; • Confirm that the financial institution’s unclaimed property policies and procedures (and in any manual or automated unclaimed property tracking system) properly defines what constitutes “property” for purposes of complying with the RUPA; • Ensure that the correct time frames for determining when the property is presumed abandoned have been identified for each relevant property type; • Develop a compliance calendar (or update the financial institution’s existing compliance calendar) to track the dates for completion of all actions required under the policies and procedures, including mailing the required due diligence letters; • Determine if any property held by the financial institution must be reported to a state other than Indiana, and become familiar with the applicable reporting requirements of such states; and • Maintain copies of all reports of unclaimed property filed with the attorney general for a minimum of 10 years after the latter of the date the report was actually filed or the last date on which the report was due to be filed. This is not a comprehensive review of the new law, but rather a highlight of key provisions you should be aware of. A thorough review of the law should be conducted. If you are uncertain whether your policies and procedures or compliance program is consistent with the requirements of RUPA, you should consult with your financial institution’s counsel. HB The information in this article is provided for general information purposes only and does not constitute legal advice or an opinion of any kind. You should consult with legal counsel for advice on your institution’s specific legal issues. Woman on the Rise Award Sponsored by Celebrating a woman age 40 or younger who is making a significant impact in her industry and community, making her “one to watch.” Candidates are interwoven and involved in their communities and should achieve success independently, but thrive on sharing their vision with others and contributing to team success. This young professional welcomes change and opportunities to tackle new projects. Nominations are now open! See details and webform at indiana.bank/woman-rise-award or contact Laurie Rees at Lrees@indiana.bank, to nominate yourself or another woman in banking by Sept. 3. Heather Wages, image processing coordinator, First Bank Richmond, has completed 25 years of service with the bank. HB ANNIVERSARY MILESTONE
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