(a)  A credit memo issued by a business association that remains unredeemed for more than three (3) years after issuance is presumed abandoned. Pursuant to § 6-13-12, gift certificates shall not be presumed to be abandoned.

Terms Used In Rhode Island General Laws 33-21.1-14

  • Business association: means a public corporation, a non-public corporation, joint stock company, investment company, business trust, partnership, or association for business purposes of two (2) or more individuals, whether or not for profit, including a banking organization, financial organization, insurance company, or utility, but not including hospitals, private, nonprofit institutions of higher education, and other domestic charitable corporations as those terms are defined in this section. See Rhode Island General Laws 33-21.1-1
  • Escheat: Reversion of real or personal property to the state when 1) a person dies without leaving a will and has no heirs, or 2) when the property (such as a bank account) has been inactive for a certain period of time. Source: OCC
  • Gift: A voluntary transfer or conveyance of property without consideration, or for less than full and adequate consideration based on fair market value.
  • Last known address: means a description of the location of the apparent owner sufficient for the purpose of the delivery of mail. See Rhode Island General Laws 33-21.1-1
  • State: means any state, district, commonwealth, territory, insular possession, or any other area subject to the legislative authority of the United States. See Rhode Island General Laws 33-21.1-1

(b)  In the case of a credit memo, the amount presumed abandoned is the amount credited as shown in the memo itself.

(c)  The amount of a credit memo presumed abandoned is subject to the custody of this state in the following circumstances:

(1)  The records of the issuer show that the last known address of the recipient of the memo is in this state;

(2)  The records of the issuer do not show the address of the purchaser or recipient, but do show that the certificate or memo was issued in this state;

(3)  The records of the issuer do not show the address of the recipient and do not show the state where the memo was issued and the issuer has its principal place of business in this state;

(4)  The records of the issuer show that the address of the recipient, or if none, the state where the memo was issued, is in or is a state whose escheat or unclaimed property law does provide for the escheat or custodial taking of credit memos, and the issuer has its principal place of business in this state.

(d)  Commencing on July 1, 1992, a business association issuing a credit memo in this state shall have a duty to record either the name and address of a recipient of a credit memo or the state in which the memo was issued.

History of Section.
P.L. 1986, ch. 500, § 3; P.L. 1992, ch. 133, art. 86, § 2; P.L. 2005, ch. 194, § 2; P.L. 2005, ch. 202, § 2.