AN ACT TO PROVIDE THAT UNCLAIMED UNITED STATES SAVINGS BONDS SHALL ESCHEAT TO THE STATE, TO DIRECT THE TREASURER TO REDEEM THOSE UNITED STATES SAVINGS BONDS ESCHEATED TO THE STATE, TO CREATE AN ESCHEAT SAVINGS BOND TRUST FUND WITHIN THE ESCHEAT FUND FOR DEPOSIT OF THE PROCEEDS OF THOSE REDEMPTIONS, AND TO PROVIDE THAT INTEREST AND INVESTMENT EARNINGS FROM THE ESCHEAT SAVINGS BOND TRUST FUND SHALL BE USED TO FUND SCHOLARSHIPS TO WORTHY AND NEEDY STUDENTS WHO ARE RESIDENTS OF NORTH CAROLINA AND ARE ENROLLED IN PUBLIC INSTITUTIONS OF HIGHER EDUCATION IN NORTH CAROLINA.
Senate committee substitute makes the following changes to the 3rd edition:
Changes the short and long titles.
Deletes all of the provisions of the previous edition in their entirety.
Enacts GS 116B-54A, concerning unclaimed US savings bonds, providing for all abandoned US savings bonds (bond) to escheat to the state of North Carolina three years after they have matured. A bond is deemed to be abandoned if it is not redeemed within three years after the bond has fully matured. Creates a judicial process by which the NC Treasurer can bring a civil action to take all property rights and legal title of the bond or proceeds. Specifies process and procedures for carrying out a civil action to claim right to the bonds, including requiring the Treasurer to make sufficient efforts to locate the owner of the savings bond before bringing a civil action. Provides that the court must enter a judgment that the bond has escheated to North Carolina if the following three conditions are met: (1) no person has filed a claim or appears at the hearing to substantiate a claim, (2) the court determines that a person who has filed a claim or who has appeared is not entitled to the property, and (3) the court is satisfied by the evidence that the Treasurer has substantially complied with the laws of North Carolina.
Provides that a person claiming ownership over a bond that has been escheated to North Carolina and redeemed by North Carolina can file a claim for the bond and after a showing of sufficient proof of validity of the claim the Treasurer can pay the claim.
Requires the Treasurer to take steps to redeem any bond that has escheated to NC, with the proceeds being deposited in the Escheat Savings Bond Trust Fund.
Creates the Escheat Savings Bond Trust Fund as a separately accounted fund within the Escheat Fund. The balance of the fund can only be spent for purposes of investment and to pay funds to potential claimants. Any interest and investment earnings of the fund can only be used to provide scholarships to worthy and needy students who are residents of North Carolina and enrolled in public institutions of higher education in North Carolina.
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