                                 CODE OF VIRGINIA

INTEREST AND PENALTIES (§ 55.1-2540)

A. Any person who fails to pay or deliver property within the time prescribed by
this chapter shall be required to pay to the administrator interest at the same
annual rate as is applicable to delinquent taxes under &#xA7; 58.1-1812 on the
property or value thereof from the date the property should have been paid or
delivered. Such interest rate shall vary with the rate specified in &#xA7;
58.1-1812.

B. Any person who does not exercise due diligence as defined in &#xA7; 55.1-2500
shall pay a civil penalty not to exceed $50 for each account upon which due
diligence was not performed.

C. Except as otherwise provided in subsection D, a holder that (i) fails to
report, pay, or deliver property within the time prescribed by this chapter;
(ii) files a false report; or (iii) fails to perform other duties imposed by
this chapter without good cause shall pay to the administrator, in addition to
interest as provided in subsection A, a civil penalty of $100 for each day the
report, payment, or delivery is withheld or the duty is not performed, up to a
maximum of the lesser of $10,000 or 25 percent of the value of the property that
should have been but was not reported.

D. A holder that (i) willfully fails to report, pay, or deliver property within
the time prescribed by this chapter; (ii) willfully fails to perform other
duties imposed by this chapter without good cause; or (iii) makes a fraudulent
report to the administrator shall pay to the administrator, in addition to
interest as provided in subsection A, a civil penalty of $1,000 for each day the
report, payment, or delivery is withheld or the duty is not performed, up to a
maximum of the lesser of $50,000 or 100 percent of the value of the property
that should have been but was not reported.

E. The administrator for good cause may waive, in whole or in part, interest
under subsection A and penalties under subsections B, C, and D. All civil
penalties shall be payable to the State Treasurer and credited to the Literary
Fund.

HISTORY: 1984, c. 121, § 55-210.26:1; 1988, c. 378; 1992, c. 583; 2000, cc.
733, 745; 2019, c. 712.