SB370,41,4 (4) Any property paid or delivered to a person under this section is subject to recovery by the administrator as provided in s. 177.1206 and this chapter.

SB370,90 Section 90. 177.06 of the statutes is repealed.

SB370,91 Section 91 . Subchapter VI (title) of chapter 177 [precedes 177.0601] of the statutes is created to read:

SB370,41,8 CHAPTER 177

SB370,41,9 SUBCHAPTER VI

SB370,41,10 taking custody of property

SB370,41,11 by administrator

SB370,92 Section 92. 177.0601 of the statutes is created to read:

SB370,41,14 177.0601 Definition of good faith. In this subchapter, payment or delivery of property is made in good faith if any of the following applies:

SB370,41,17 (1) The holder had a reasonable basis for believing, based on the facts then known, that the property was required or permitted to be paid or delivered to the administrator under this chapter.

SB370,41,21 (2) The holder made payment or delivery in response to a demand by the administrator or administrator's agent or under guidance or a ruling issued by the administrator that the holder reasonably believed required or permitted the property to be paid or delivered.

SB370,93 Section 93. 177.0602 of the statutes is created to read:

SB370,41,25 177.0602 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:

SB370,42,3 (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.

SB370,42,5 (b) The holder regularly imposes the charge and regularly does not reverse or otherwise cancel or not collect the charge.

SB370,42,9 (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.

SB370,94 Section 94. 177.0603 of the statutes is created to read:

SB370,42,13 177.0603 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.

SB370,42,19 (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.

SB370,42,21 (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.

SB370,42,23 (4) If property reported to the administrator under s. 177.0401 is a security, the administrator may do any of the following:

SB370,43,3 (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.

SB370,43,4 (b) Dispose of the security under s. 177.0702.

SB370,43,8 (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.

SB370,43,11 (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.

SB370,43,15 (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.

SB370,95 Section 95. 177.0604 of the statutes is created to read:

SB370,43,23 177.0604 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.

SB370,44,2 (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.