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
Shares: means that portion of the capital paid into the credit union by members on which dividends may be paid. See Utah Code 7-9-3
State: means , unless the context demands otherwise:
Shares of the credit union may be subscribed and paid for in cash or its equivalent in a manner prescribed in the bylaws.
(3)
The par value of each share of a credit union shall be determined by the board of directors in multiples of $5 as prescribed in the bylaws.
(4)
Each member of the credit union shall subscribe to at least one share and pay the initial installment thereon. The par value of the share shall be paid for within six months.
(5)
The board of directors may close a member’s account when the share par value is not paid within the required period or the par value is not maintained. Notice in writing shall be mailed to the member at the last known address and shall contain a statement that the member may increase payment or voluntarily close the account within 60 days of receipt of the notice.
(6)
When a member’s account becomes dormant or is reasonably presumed to be dormant and abandoned, as provided in Chapter 1, General Provisions, the credit union by resolution of the board of directors may close the account and transfer the credits of the account to an account for unclaimed shares. Thereafter the credit union may not pay dividends or interest on the account, as provided in the bylaws, until the funds in the account escheat to the state of Utah. Prior to transferring the member’s dormant and abandoned account to the credit union unclaimed shares account, the credit union shall mail a written notice to the member at the member’s last known address stating that this action will be taken within 30 days of the date of the notice.
