Nevada Administrative Code Chapter 120A - Disposition of Unclaimed Property
Nevada Administrative Code (NAC)
Chapter 120A — Disposition of Unclaimed Property
Overview:
Chapter 120A governs how unclaimed or abandoned property is handled in Nevada. It applies to tangible and intangible property, such as bank accounts, stocks, safe deposit boxes, uncashed checks, and personal items. The goal is to protect property owners, ensure proper reporting, and provide clear procedures for holders and the State Treasurer when property remains unclaimed.
1. Definitions and General Provisions (NAC 120A.010 – NAC 120A.030)
Key points:
Defines key terms such as:
“Abandoned property”: property that has been unclaimed for a statutory period.
“Holder”: an entity or person in possession of property owed to another (e.g., banks, businesses).
“Owner”: the person or entity legally entitled to the property.
Establishes the scope of Chapter 120A and applicability to all holders within Nevada.
Specifies that unclaimed property laws take precedence over local rules and require compliance with NAC reporting and remittance requirements.
Why it matters:
Provides clarity on what constitutes unclaimed property and who is responsible for reporting or remitting it to the state.
2. Reporting Requirements (NAC 120A.040 – NAC 120A.080)
Key points:
Holders must report unclaimed property to the State Treasurer annually.
Reports include:
Owner’s name and last known address.
Description and value of the property.
Date the property became abandoned.
Holders must provide supporting documentation, including account statements or invoices.
Late or incomplete reports may result in penalties or administrative action.
Why it matters:
Ensures the state can safeguard unclaimed property and maintain accurate records for potential owners.
3. Due Diligence by Holders (NAC 120A.090 – NAC 120A.110)
Key points:
Holders are required to attempt to contact the rightful owner before remitting property.
Methods include:
Written notice by mail.
Reasonable efforts to locate current addresses.
The notice must be sent at least 60–120 days before reporting to give owners a chance to claim property.
Holders must document all attempts to notify owners.
Why it matters:
Protects owners by requiring active efforts to return property before the state takes custody.
4. Delivery and Remittance to the State Treasurer (NAC 120A.120 – NAC 120A.150)
Key points:
Property must be remitted electronically or physically to the State Treasurer.
Tangible property (like personal items) may be physically delivered or liquidated as required.
Intangible property (like bank balances or dividends) must be remitted in the form of a check or electronic transfer.
Treasurers maintain a record for each item, including owner information, description, and value.
Why it matters:
Ensures secure transfer of unclaimed property and that the state can protect and eventually return it to rightful owners.
5. Claim Process for Owners (NAC 120A.160 – NAC 120A.200)
Key points:
Owners may submit a claim form to the State Treasurer to recover their property.
Claims require proof of identity and ownership, such as:
Government-issued ID.
Account statements or purchase receipts.
The Treasurer reviews claims and, if valid, releases the property or its monetary value.
Disputed claims may require administrative hearings.
Why it matters:
Provides a fair and transparent process for owners to reclaim property.
6. Disposition of Unclaimed Property Not Claimed (NAC 120A.210 – NAC 120A.230)
Key points:
If property remains unclaimed for a specified period, the State Treasurer may:
Liquidate tangible property.
Sell or convert intangible property to cash.
Proceeds are held in a state unclaimed property fund, accessible to owners who later file a claim.
Certain property, like perishable items or hazardous materials, may be disposed of immediately following statutory guidelines.
Why it matters:
Balances owner rights with practical management, allowing the state to safeguard or utilize unclaimed property responsibly.
7. Penalties for Noncompliance (NAC 120A.240 – NAC 120A.260)
Key points:
Holders failing to report or remit property may face:
Administrative fines.
Interest charges on unremitted funds.
Suspension of business privileges in extreme cases.
The State Treasurer may conduct audits and require corrective actions.
Why it matters:
Ensures accountability of holders and compliance with unclaimed property laws.
8. Records Retention and Audits (NAC 120A.270 – NAC 120A.300)
Key points:
Holders must retain records related to unclaimed property for at least five years.
Records include: account statements, communications with owners, and remittance forms.
The State Treasurer may audit holders to verify compliance.
Why it matters:
Maintains transparency and auditability, preventing mismanagement or misappropriation of property.
✅ Summary of Key Rule Areas
| Rule Section | What It Regulates | Core Purpose |
|---|---|---|
| NAC 120A.010–030 | Definitions and general provisions | Clarifies scope, terms, and responsible parties |
| NAC 120A.040–080 | Reporting requirements | Ensures state receives accurate unclaimed property information |
| NAC 120A.090–110 | Due diligence by holders | Protects owners by requiring reasonable notification efforts |
| NAC 120A.120–150 | Delivery and remittance | Secure transfer of property to the state |
| NAC 120A.160–200 | Owner claim process | Fair procedure for owners to recover property |
| NAC 120A.210–230 | Disposition of unclaimed property | Responsible handling of property not claimed |
| NAC 120A.240–260 | Penalties for noncompliance | Ensures holders comply with rules |
| NAC 120A.270–300 | Records retention and audits | Maintains accountability and transparency |
RELATED Blog
comments