NRS 120A.590 Custody by State; recovery by holder; defense of holder.

727 words·~3 min read·/nv/chapter-120a-unclaimed-property-uniform-act/120a-590·

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

1. For the purposes of this section, payment or delivery is made in “good faith” if:

(a)Payment or delivery was made in a reasonable attempt to comply with this chapter;

(b)The holder was not then in breach of a fiduciary obligation with respect to the property and had a reasonable basis for believing, based on the facts then known, that the property was presumed abandoned; and

(c)There is no showing that the records under which the payment or delivery was made did not meet reasonable commercial standards of practice.

2. Upon payment or delivery of property to the Administrator, the State assumes custody and responsibility for the safekeeping of the property. A holder who pays or delivers property to the Administrator in good faith is relieved of all liability arising thereafter with respect to the property.

3. A holder who has paid money to the Administrator pursuant to this chapter may subsequently file a claim for reimbursement from the Administrator of the amount paid if the holder:

(a)Paid the money in error; or

(b)After paying the money to the Administrator, paid money to a person who the holder reasonably believed to be entitled to payment.

4. If a claim for reimbursement pursuant to this section is filed for a payment made on a negotiable instrument, including a traveler’s check, money order or similar instrument, the holder must submit proof that the instrument was duly presented and that payment was made to a person who the holder reasonably believed to be entitled to payment. The holder may claim reimbursement even if the payment was made to a person whose claim was made after the expiration of a period of limitation on the owner’s right to receive or recover property, whether specified by contract, statute or court order.

5. A holder who has delivered property other than money to the Administrator pursuant to this chapter may file a claim for return of the property from the Administrator if:

(a)The holder delivered the property in error; or

(b)The apparent owner has claimed the property from the holder.

6. If a claim for return of property pursuant to subsection 5 is filed, the holder must include with the claim evidence sufficient to establish that the apparent owner has claimed the property from the holder or that the property was delivered by the holder to the Administrator in error.

7. The Administrator may determine that an affidavit submitted by a holder is evidence sufficient to establish that the holder is entitled to reimbursement or to recover property pursuant to this section.

8. A holder is not required to pay a fee or other charge for reimbursement or return of property pursuant to this section.

9. A holder otherwise entitled to reimbursement must be reimbursed for payment made even if the payment was made to a person whose claim was barred under subsection 1 of NRS 120A.680 .

10. A holder who has delivered property other than money to the Administrator pursuant to this chapter may reclaim the property if it is still in the possession of the Administrator, without paying any fee or other charge, upon filing proof that the apparent owner has claimed the property from the holder.

11. The Administrator may accept a holder’s affidavit as sufficient proof of the holder’s right to recover money and property under this section.

12. If a holder pays or delivers property to the Administrator in good faith and thereafter another person claims the property from the holder or another state claims the money or property under its laws relating to escheat or abandoned or unclaimed property, the Administrator, upon written notice of the claim, shall defend the holder against the claim and indemnify the holder against any liability on the claim resulting from payment or delivery of the property to the Administrator.

13. Property removed from a safe-deposit box or other safekeeping depository is received by the Administrator subject to the holder’s right to be reimbursed for the cost of the opening and to any valid lien or contract providing for the holder to be reimbursed for unpaid rent or storage charges. The Administrator shall reimburse the holder out of the proceeds remaining after deducting the expense incurred by the Administrator in selling the property.