TITLE 14

ESTATES OF DECEDENTS

CHAPTER 5

REVISED UNCLAIMED PROPERTY ACT

PART 6

TAKING CUSTODY OF PROPERTY BY ADMINISTRATOR

14-5-604.  EFFECT OF PAYMENT OR DELIVERY OF PROPERTY TO ADMINISTRATOR. (1) Upon payment or delivery of property to the administrator under this chapter, the administrator as agent for the state assumes custody and responsibility for safekeeping the property. A holder that pays or delivers property to the administrator in good faith and substantially complies with sections 14-5-501 and 14-5-502, Idaho Code, is relieved of all liability that thereafter may arise or be made in respect to the property to the extent of the value of the property so paid or delivered.

(2)  In the event legal proceedings are instituted by any other state or states in any state or federal court with respect to unclaimed funds or abandoned property previously paid or delivered to the administrator, the holder shall give written notification to the administrator and the attorney general of this state of such proceedings within ten (10) days after service of process, or in the alternative at least ten (10) days before the return date or date on which an answer or similar pleading is due (or any extension thereof secured by the holder). The attorney general may take such action as the attorney general deems necessary or expedient to protect the interests of the state of Idaho. The attorney general by written notice prior to the return date or date on which an answer or similar pleading is due (or any extension thereof secured by the holder), but in any event in reasonably sufficient time for the holder to comply with the directions received, shall either direct the holder actively to defend in such proceedings or that no defense need be entered in such proceedings. If a direction is received from the attorney general that the holder need not make a defense, such direction shall not preclude the holder from entering a defense in its own name, if it should so choose. However, any defense made by the holder on its own initiative shall not entitle the holder to reimbursement for legal fees, costs, and other expenses as provided in this section in respect to defenses made pursuant to the directions of the attorney general. If, after the holder has actively defended in such proceedings pursuant to a direction of the attorney general, or has been notified in writing by the attorney general that no defense need be made with respect to such funds, a judgment is entered against the holder for any amount paid to the administrator under this chapter, the administrator shall, upon being furnished with proof of payment in satisfaction of such judgment, reimburse the holder the amount so paid. The administrator shall also reimburse the holder for any legal fees, costs, and other directly related expenses incurred in legal proceedings undertaken pursuant to the direction of the attorney general.

History:

[14-5-604, added 2024, ch. 27, sec. 2, p. 200.]