AB752,40,11 177.0602 Dormancy charge. (1) A holder may deduct a dormancy charge from property required to be paid or delivered to the administrator if all of the following apply:

AB752,40,14 (a) A valid written contract between the holder and the apparent owner authorizes imposition of the charge for the apparent owner's failure to claim the property within a specified time.

AB752,40,16 (b) The holder regularly imposes the charge and regularly does not reverse or otherwise cancel or not collect the charge.

AB752,40,20 (2) The amount of the deduction under sub. (1) is limited to an amount that is not unconscionable considering all relevant factors, including the marginal transactional costs incurred by the holder in maintaining the apparent owner's property and any services received by the apparent owner.

AB752,90 Section 90. 177.0603 of the statutes is created to read:

AB752,40,24 177.0603 Payment or delivery of property to administrator. (1) Except as otherwise provided in this section, upon filing a report under s. 177.0401, the holder shall pay or deliver to the administrator the property described in the report.

AB752,41,6 (2) If property in a report under s. 177.0401 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.

AB752,41,8 (3) After filing the report under s. 177.0401, property in a safe deposit box shall be delivered to the administrator no later than December 1.

AB752,41,10 (4) If property reported to the administrator under s. 177.0401 is a security, the administrator may do any of the following:

AB752,41,13 (a) Make an endorsement, instruction, or entitlement order on behalf of the apparent owner to invoke the duty of the issuer, its transfer agent, or the securities intermediary to transfer the security.

AB752,41,14 (b) Dispose of the security under s. 177.0702.

AB752,41,18 (5) If the holder of property reported to the administrator under s. 177.0401 is the issuer of a certificated security, the administrator may obtain a replacement certificate in physical or book-entry form under s. 408.405. An indemnity bond is not required for purposes of this subsection.

AB752,41,21 (6) The administrator shall establish procedures for the registration, issuance, method of delivery, transfer, and maintenance of securities delivered to the administrator by a holder.

AB752,41,25 (7) An issuer, holder, or transfer agent, or other person acting 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.

AB752,91 Section 91. 177.0604 of the statutes is created to read:

AB752,42,8 177.0604 Effect of payment or delivery of property to administrator. (1) On payment or delivery of property to the administrator under this chapter, the administrator, as agent for the state, assumes custody and responsibility for safekeeping the property. A holder that pays or delivers property to the administrator in good faith and substantially complies with ss. 177.0501 and 177.0502 is relieved of liability arising thereafter with respect to payment or delivery of the property to the administrator.

AB752,42,12 (2) This state shall defend and indemnify a holder against liability on a claim against the holder resulting from the payment or delivery of property to the administrator made in good faith and after the holder substantially complied with ss. 177.0501 and 177.0502.

AB752,92 Section 92. 177.0605 of the statutes is created to read:

AB752,42,16 177.0605 Recovery of property by holder from administrator. (1) A holder that pays money to the administrator may file a claim for reimbursement from the administrator of the amount paid if any of the following applies:

AB752,42,17 (a) The holder paid the money in error.

AB752,42,19 (b) After paying the money to the administrator, the holder paid money to a person the holder reasonably believed was entitled to the money.

AB752,43,2 (2) If a claim for reimbursement under sub. (1) is made for a payment made on a negotiable instrument, including a travelers check, money order, or similar instrument, the holder shall submit proof that the instrument was presented and payment was made to a person the holder reasonably believed was entitled to payment. The holder may claim reimbursement even if the payment was made to a person whose claim was made after expiration of a period of limitation on the owner's right to receive or recover property, whether specified by contract or court order and notwithstanding any law to the contrary.

AB752,43,4 (3) The administrator may only grant and pay a holder's claim under sub. (1) if the money being claimed is in the administrator's possession.

AB752,43,8 (4) If a holder is reimbursed by the administrator under sub. (1) (b), the holder may also recover from the administrator income or gain under s. 177.0607 that would have been paid to the owner if the money had been claimed from the administrator by the owner, to the extent the income or gain was paid by the holder to the owner.

AB752,43,11 (5) A holder that delivers property other than money to the administrator may file a claim for return of the property from the administrator if any of the following applies:

AB752,43,12 (a) The holder delivered the property in error.

AB752,43,13 (b) The apparent owner has claimed the property from the holder.

AB752,43,15 (6) The administrator may only grant and pay a holder's claim under sub. (5) if the property being claimed is in the administrator's possession.

AB752,43,18 (7) A holder that files a claim under sub. (5) shall include with the claim evidence sufficient to establish that the apparent owner claimed the property from the holder or that the holder delivered the property to the administrator in error.