(a) An agreement with an owner whereby the owner is to pay a fee or other remuneration for locating, delivering, recovering, or assisting in the recovery of property that has not yet been reported to the treasurer under this part is enforceable only if the agreement:

Terms Used In Tennessee Code 66-29-176

  • Apparent owner: means a person whose name appears on the records of a holder as the owner of property held, issued, or owing by the holder. See Tennessee Code 66-29-102
  • Holder: means a person obligated to hold for the account of, or to deliver or pay to, the owner of property that is subject to this part. See Tennessee Code 66-29-102
  • Mineral: means gas, oil, coal, oil shale, other gaseous liquid or solid hydrocarbon, cement material, sand and gravel, road material, building stone, chemical raw material, gemstone, fissionable and nonfissionable ores, colloidal and other clay, steam and other geothermal resources, and any other substance defined as a mineral by any other law of this state. See Tennessee Code 66-29-102
  • Mineral proceeds: includes an amount payable:
    (A) For the acquisition and retention of a mineral lease, including, but not limited to, a bonus, royalty, compensatory royalty, shut-in royalty, minimum royalty, and delay rental. See Tennessee Code 66-29-102
  • Owner: includes :
    (A) A depositor, for a deposit. See Tennessee Code 66-29-102
  • Person: means an individual, estate, business association, public corporation, government or governmental subdivision, agency, instrumentality, or other legal entity. See Tennessee Code 66-29-102
  • Property: means tangible property described in §. See Tennessee Code 66-29-102
  • Record: means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form. See Tennessee Code 66-29-102
  • signed: includes a mark, the name being written near the mark and witnessed, or any other symbol or methodology executed or adopted by a party with intention to authenticate a writing or record, regardless of being witnessed. See Tennessee Code 1-3-105
  • State: means a state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, the United States Virgin Islands, or any territory or insular possession subject to the jurisdiction of the United States. See Tennessee Code 66-29-102
  • Treasurer: means the state treasurer. See Tennessee Code 66-29-102
(1) Is in writing;
(2) Clearly sets forth the nature of the property and the services to be rendered;
(3) Is signed by the apparent owner;
(4) States the value of the property before and after the fee; and
(5) Contains such other information as the state treasurer may, by rule, require.
(b) An agreement by an apparent owner and a person, the primary purpose of which is to locate, deliver, recover, or assist in the location, delivery, or recovery of property held by the treasurer, is enforceable only if the agreement:

(1) Is in a record that clearly sets forth the nature of the property and the services to be provided;
(2) Is signed by or on behalf of the apparent owner;
(3) States the amount or value of the property reasonably estimated or expected to be recovered, computed both before and after a fee or other compensation to be paid to the other person has been deducted;
(4) Does not provide for compensation of more than ten percent (10%) of the value of the recoverable property or fifty dollars ($50.00), whichever is greater; and
(5) Contains such other information as the state treasurer may, by rule, require.
(c) An agreement under this section is void and unenforceable if it is entered into within two (2) years from the date on which the property was paid or delivered by the holder to the treasurer.
(d) If a provision in an agreement described in this section applies to mineral proceeds for which compensation must be paid to a person based in whole or in part on a portion of the underlying minerals or mineral proceeds not then presumed abandoned, the provision is void and unenforceable, regardless of when the agreement is executed.
(e) This section does not apply to an apparent owner’s agreement with an attorney to pursue a claim for recovery of specifically identified property held by the treasurer or to contest the treasurer’s denial of a claim for recovery of the property.
  Previous section
Next section  
 Part 1 Contents