393.117 Conditions governing enforceability of agreements to locate property
397 words·~2 min read·
/ky/393-117A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
presumed abandoned.
(1)An agreement by an owner, the primary purpose of which is to locate, deliver,
recover, or assist in the recovery of property that is presumed abandoned, is void
and unenforceable if it was entered into during the period commencing on the date
that the property was presumed abandoned and extending to a time that is twenty-
four
(24)months after the date that the property is paid or delivered to the
department. This subsection shall not apply to an owner's agreement with an
attorney to file a claim as to identified property or contest the administrator's denial
of a claim.
(2)An agreement by an owner, the primary purpose of which is to locate, deliver,
recover, or assist in the recovery of property and that is not in violation of
subsection
(1)of this section, is enforceable only if:
(a)The agreement is in writing;
(b)The agreement provides that the fee or compensation agreed upon is an
amount not more than ten percent (10%) of the value of the property collected;
(c)The agreement clearly sets forth the nature of the property and the services to
be rendered;
(d)The agreement is signed by the apparent owner; and
(e)The agreement states the value of the property before and after the fee or other
compensation has been deducted.
(3)An agreement covered by this section that provides for compensation that is
unconscionable is unenforceable except by the owner. An owner who has agreed to
pay compensation that is unconscionable, or the administrator on behalf of the
owner, may maintain an action to reduce the compensation to a conscionable
amount. The court may award reasonable attorney's fees to an owner who prevails
in the action.
(4)This section does not preclude an owner from asserting that an agreement covered
by this section is invalid on grounds other than unconscionable compensation.
(5)An advertisement, a written communication, or an agreement concerning the
location, delivery, recover, or assistance in the recovery of property reported under
this chapter shall contain a provision stating that, by law, any contract provision
requiring the payment of a fee for finding property that has been held by the
administrator for less than twenty-four
(24)months is void and not enforceable, and
that fees are limited to an amount not more than ten percent (10%) of the value of
the property collected.