                                 CODE OF VIRGINIA

BANK DEPOSITS AND FUNDS IN FINANCIAL ORGANIZATIONS (§ 55.1-2503)

A. Any demand, savings, or matured time deposit with a banking or financial
organization, including deposits that are automatically renewable, and any funds
paid toward the purchase of shares, a mutual investment certificate, or any
other interest in a banking or financial organization is presumed abandoned
unless the owner has, within five years:

   1. In the case of a deposit or ownership of shares, increased or decreased the
   amount of the deposit or the number of shares owned, or presented the passbook
   or other similar evidence of the deposit or ownership of shares for the
   crediting of interest or dividends, or negotiated a check in payment of
   interest or dividends on a time deposit or ownership of shares;

   2. Communicated in writing with the banking or financial organization
   concerning the property;

   3. Otherwise indicated an interest in the property as evidenced by a
   memorandum or other record on file prepared by an employee of the banking or
   financial organization;

   4. Owned other property to which subdivision 1, 2, or 3 is applicable if the
   banking or financial organization communicated in writing with the owner with
   regard to the property that would otherwise be presumed abandoned under this
   section at the address to which communications regarding the other property
   regularly are sent;

   5. Had another relationship with the banking or financial organization
   concerning which the owner has (i) communicated in writing with the banking or
   financial organization, or (ii) otherwise indicated an interest as evidenced
   by a memorandum or other record on file prepared by an employee of the banking
   or financial organization if the banking or financial organization
   communicates in writing with the owner with regard to the property that would
   otherwise be abandoned under this section at the address to which
   communications regarding the other relationship regularly are sent; or

   6. A deposit made with or purchase of shares in a banking or financial
   organization by a court or by a guardian pursuant to an order of a court or by
   any other person for the benefit of a person who was an infant at the time of
   the making of such deposit or purchase of shares, which deposit or ownership
   of shares is subject to withdrawal or transfer only upon the further order of
   such court or such guardian or other person, shall not be subject to the
   provisions of this chapter until one year after such infant attains the age of
   18 years or until one year after the death of such infant, whichever occurs
   sooner. These accounts are not subject to dormant service charges.

B. Notwithstanding any other provision of this section, share accounts of a
member of a state or federally chartered credit union that is subject to or
covered by life savings insurance provided by the credit union at no additional
charge to the member shall be presumed abandoned five years after the date of
the second mailing of a statement of account or other notification or
communication that was returned as undeliverable or five years after the date
the credit union discontinued the mailings to the member, whichever occurs
earlier. Funds held or owing under the life savings insurance policy are
presumed abandoned pursuant to &#xA7; 55.1-2507.

C. For purposes of this section, &#8220;property&#8221; includes any interest or
dividends thereon. No banking or financial organization may deduct any service
charge or cease to accrue interest on any account from the date the account is
declared dormant or inactive by such organization except in conformity with
cessation of interest or service charges generally assessed upon active accounts
and except as provided in this section. With respect to any property described
in this section, a holder may not impose any charges due to dormancy or
inactivity that differ from charges imposed on active accounts or cease to pay
interest due to dormancy or inactivity that differs from the cessation of
payment of interest on active accounts unless:

   1. There is an enforceable contract between the holder and the owner of the
   property pursuant to which the holder may impose those charges or cease
   payment of interest;

   2. For property in excess of $100, the holder, no more than three months prior
   to the initial imposition of those charges or cessation of interest, has given
   written notice to the owner of the amount of those charges at the last known
   address of the owner stating that those charges will be imposed or that
   interest will cease; however, such notice need not be given with respect to
   charges imposed or interest ceased before July 1, 1984;

   3. When the holder receives a request from the owner of the property to
   reverse or cancel dormancy charges or retroactively credit interest with
   respect to such property, the holder may at its option either:
   				a. Reverse or cancel dormancy charges or retroactively credit interest
   with respect to any such property, in which event the holder shall reverse or
   cancel dormancy charges or retroactively credit interest for all such property
   that becomes subject to the reporting requirements in &#xA7; 55.1-2524 for the
   Department of the Treasury; or
   				b. Not reverse or cancel dormancy charges or retroactively credit interest
   with respect to any such property, in which event the holder shall not be
   required to reverse or cancel dormancy charges or retroactively credit
   interest for any such property that becomes subject to the reporting
   requirements in &#xA7; 55.1-2524 for the Department of the Treasury; and

   4. The holder may at its option reverse or cancel dormancy charges or
   retroactively credit interest with respect to any or all such property to
   correct a documented internal error without becoming required to reverse or
   cancel dormancy charges or retroactively credit interest for all such property
   that becomes subject to the reporting requirements in &#xA7; 55.1-2524 for the
   Department of the Treasury.
   				Notwithstanding any provision of this subsection to the contrary, a holder
   that is a state-chartered credit union may refund charges or reverse or cancel
   those charges or retroactively credit interest with respect to such property
   to the same extent that a federally chartered credit union is authorized to do
   so pursuant to applicable provisions of federal law.

D. Any automatically renewable property to which this section applies is matured
upon the expiration of its initial time period. However, in the case of any
renewal to which the owner consents at or about the time of renewal by
communicating in writing with the banking or financial organization or otherwise
indicates consent as specified in subsection A, the property is matured upon the
expiration of the last time period for which consent was given. If, at the time
provided for delivery in subsection D of &#xA7; 55.1-2524, a penalty or
forfeiture in the payment of interest would result from the delivery of the
property, the time for delivery is extended until the time when no penalty or
forfeiture would result. Notwithstanding any other provision of this section to
the contrary, any automatically renewable time deposit that has matured shall be
presumed abandoned five years after the date of the second mailing of a
statement of account or other notification or communication that was returned as
undeliverable or five years after the date the holder discontinued the mailings
to the apparent owner, whichever occurs earlier. However, any automatically
renewable time deposit for which no such statement or other notification or
mailing is required to be sent by the banking or financial organization shall be
presumed abandoned as otherwise provided in this section.

HISTORY: 1984, c. 121, § 55-210.3:01; 1985, c. 294; 1991, c. 357; 1995, c. 624;
1996, c. 419; 2000, cc. 733, 745; 2008, cc. 90, 556; 2018, cc. 359, 439; 2019,
c. 712.