Christa DeOliveira, CIA, CCEP
Louisiana’s unclaimed property statutes require for Louisiana to pay interest on any item that was interest bearing while on the books of the holder. Specifically, Louisiana Revised Statutes 9:163 contains the following:
"If the property was interest bearing to the owner on the date of surrender by the holder, the administrator shall pay interest at a rate of five percent a year or any lesser rate the property earned while in the possession of the holder. Interest begins to accrue when the property is delivered to the administrator and ceases on the earlier of the expiration of ten years after delivery or the date on which payment is made to the owner."
Naturally, Louisiana has no way of knowing which property was interest bearing unless holders convey this information on their unclaimed property reports. In an effort to increase receiving this key information, Louisiana will require holders to sign an Official Verification of Report statement declaring that complete information regarding the interest bearing nature of all reported properties has been included in the report. This new verification statement will be on a revised UP-1 form and become effective July 1, 2013.
The new required verification phrasing relating to the interest bearing nature of reported properties will read:
"I further declare that this documentation contains complete and accurate information pertaining to the interest-bearing nature of all properties, remitted with this documentation contained therein. Specifically, I acknowledge and declare that this report accurately reflects whether each unit of remitted property, listed in the attached documentation, bears interest or is not interest bearing. I understand and acknowledge that failure to designate a remitted unit of property as bearing interest is equivalent to an express statement that such property is not interest bearing."
Naturally, once the change goes into effect, the corresponding changes to the Verification Checklist for Louisiana will be updated within TRACKER®. The new Official Verification of Report statement will be added in its entirety. Rest assured this will be incorporated in the release for the autumn reporting cycle.