67-4a-603. Payment or delivery of property to administrator.

844 words·~4 min read·/ut/title-67/chapter-4a/67-4a-603

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

Effective 5/6/2026

(a)Except as otherwise provided in this section, on filing a report under Section 67-4a-401 the holder shall pay or deliver to the administrator the property described in the report.

(b)If property in a report under Section 67-4a-401 is an automatically renewable deposit and a penalty or forfeiture in the payment of interest would result from paying the deposit to the administrator at the time of the report, the date for payment of the property to the administrator is extended until a penalty or forfeiture no longer would result from payment, if the holder informs the administrator of the extended date.

(2)Tangible property in a safe-deposit box may not be delivered to the administrator until 120 days after filing the report under Section 67-4a-401 .

(3)If property reported to the administrator under Section 67-4a-401 is a security, the administrator may:

(a)make an endorsement, instruction, or entitlement order on behalf of the apparent owner to invoke the duty of the issuer, the transfer agent, or the securities intermediary to transfer the security; or

(b)dispose of the security under Section 67-4a-702 .

(a)If the holder of property reported to the administrator under Section 67-4a-401 is the issuer of a certificated security, the administrator may obtain a replacement certificate in physical or book-entry form under Section 70A-8-405 .

(b)An indemnity bond is not required under Subsection (4)(a) .

(5)The administrator shall establish procedures for the registration, issuance, method of delivery, transfer, and maintenance of securities delivered to the administrator by a holder.

(6)An issuer, holder, and transfer agent or other person acting in good faith under this section under instructions of and on behalf of the issuer or holder is not liable to the apparent owner for, and shall be indemnified by the state against, a claim arising with respect to property after the property has been delivered to the administrator.

(a)A holder is not required to deliver to the administrator a security identified by the holder as a nonfreely transferable security in a report filed under Section 67-4a-401 .

(b)If the administrator or holder determines that a security is no longer a nonfreely transferable security, the holder shall deliver the security on the next regular date prescribed for delivery of securities under this chapter.

(c)The holder shall make a determination annually whether a security identified in a report filed under Section 67-4a-401 as a nonfreely transferable security is no longer a nonfreely transferable security.

(a)Except as provided in Subsection

(9), if property reported to the administrator under Section 67-4a-401 is a digital asset and the digital asset holder has the ability to transfer the digital asset, the digital asset holder shall:

(i)deliver to the administrator's designated custodian the digital asset, in the form of the digital asset, within 30 days from the date on which the digital asset is reported under Section 67-4a-401 ; and

(ii)provide the administrator, upon request, a record evidencing delivery to the administrator's designated custodian.

(b)Within 30 days after the date on which the digital asset holder delivers a digital asset under this Subsection

(8), the digital asset holder shall provide the administrator with a reconciliation of the delivered digital asset with respect to the report filed regarding the digital asset.

(c)The delivery of a digital asset to the administrator's designated custodian under this Subsection

(8)constitutes payment or delivery for purposes of this chapter.

(a)Notwithstanding Subsection

(8), if the administrator determines that a digital asset reported under Section 67-4a-401 cannot be accepted for custody, or that the costs of custody and administration of the digital asset would exceed the digital asset's value, the administrator may direct the digital asset holder to sell or otherwise liquidate the digital asset and deliver the net proceeds as directed by the administrator.

(b)A digital asset holder to whom the administrator directs to sell or otherwise liquidate a digital asset under this Subsection

(9)shall sell or liquidate the digital asset:

(i)by any commercially reasonable method; and

(ii)for no less than the prevailing market price of the digital asset at the time of sale.

(a)A digital asset holder is not required to deliver a digital asset in accordance with Subsection

(8)if the digital asset holder does not have the private key or other authority that is necessary to transfer the digital asset.

(b)A digital asset holder described in Subsection (10)(a) shall:

(i)report the digital asset under Section 67-4a-401 ;

(ii)maintain the digital asset until the digital asset holder obtains the ability to transfer the digital asset;

(iii)determine no less than annually as to whether the digital asset holder has obtained the ability to transfer the digital asset; and

(iv)after obtaining the ability to transfer the digital asset, deliver the digital asset to the administrator's designated custodian at the next reporting cycle.

Amended by Chapter 158 , 2026 General Session