Barister's Brain
As a regular feature in Quarterly Interest, our advice columnist, Barry Barrister, will answer a legal question the OSBC has received that we think would be of interest to bankers. Even though he's a fictional lawyer (arguably the best kind), Barry has insisted we include the caveat that the advice he dispenses is general in nature, and is not intended as a substitute for obtaining specific legal advice from counsel when necessary.
Dear Barry,
Questions have recently come up at our bank regarding the reporting requirements for unclaimed property. First, what is the dollar threshold for reporting property? Also, why does the treasurer's office require that we submit a resolution of our board of directors along with the property we report to them?
- Rapid Reporter Ron
Dear Ron:
Regarding your dollar threshold question, there are two things to look at. First, does your bank hold any individual piece of property over $100.00 in value? If so, you must report the property. Second, if there is no individual piece of property over $100.00 in value but there are a number of smaller valued pieces of property that the bank is holding, if the total of that property reaches $250.00, then all of the property must be reported. The bank must hold the properties under $100.00 until such time as the total properties reaches $250.00; the obligation to report the under $100.00 item never goes away. See K.S.A. 58-3850 (i).
You also asked why the Treasurer's office requires that a board resolution be provided. The answer is fairly straight forward. The law allows the Treasurer to come to your bank and perform examinations of your records to determine compliance with the Unclaimed Property Act. However, the law gives an "out" to certain types of financial institutions, including state banks and trust companies, which provide a letter from an independent CPA, or a resolution of its board of directors, certifying compliance with the act. While a resolution can take some time, it sure sounds better than an examination.
The unclaimed property section of the State Treasurer's website, found at www.kansascash.com/prodweb.up/index.php, is chock-full of useful and interesting information concerning your responsibilities under the Unclaimed Property Act. In my search of the site, for example, I found that the Treasurer apparently does not want the stray animals that show up at your bank to be reported to them as unclaimed property. I guess they let you keep the really valuable stuff! Go figure.
Legally yours,
Barry
