Bulletin: CO000041

Date:
September 05, 2003
To:
All Issuing Offices in Colorado
RE:
Colorado's Unclaimed Property Act

Dear Associates:

Many questions have arisen regarding title agent reporting requirements under the Colorado Unclaimed Property Act. This Bulletin will address these reporting requirements under this Act.

As you are aware, the Colorado State Treasurer administers the "Great Colorado Payback" program created to reunite Coloradans' with their lost or forgotten assets.

Section 38-13-103, C.R.S. states:

(1) Except as otherwise provided by this article, all intangible property, including any income or increment derived there from, less any lawful charges, that is held, issued, or owing in the ordinary course of a holder's business and has remained unclaimed by the owner for more than five years after it became payable or distributable is presumed abandoned.

Title insurance companies operating in the State of Colorado must conform with Colorado's Unclaimed Property Program by turning unclaimed property from customers over to the Colorado State Treasurer. Property held in escrow is deemed "unclaimed" if it has not been claimed by the rightful owner for 5 years after it became payable or distributable (generally at the time of closing). "Unclaimed property" for our purposes consists of credit file balances and outstanding checks. There is an allowable deduction that offices can retain for reporting property. All unclaimed property must be reported regardless of amount. Property under $25.00 may be reported in the aggregate, but an itemized list must be maintained. Property that is unidentified should be reported as "unknown."

You should review your open file list and outstanding check list for credit files and/or outstanding checks dated on or prior to August 27, 1998. If such items do exist, then these items should be reported to the State Treasurer's office.

Credit files should have a check in the amount of the remaining balance disbursed directly to the State Treasurer.

Outstanding checks should be cancelled and replacement checks should be distributed directly to the Treasurer.

Form A should be completed and reported even if there is no property to report. Form A and B should be completed if there is property to report. The forms and additional reporting requirements may be found at http://www.treasurer.state.co.us/payback/index.htm .

IF YOU HAVE ANY QUESTIONS REGARDING THE ISSUES RAISED BY THIS BULLETIN, PLEASE CONTACT YOUR LOCAL UNDERWRITING PERSONNEL.

THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER  AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.

References

Bulletins Replaced:
None
Related Bulletins:
NL000074 Escheat of Unclaimed Property
Underwriting Manual:
None
Exceptions Manual:
None
Forms:
None