Unclaimed Savings Bond Act of 2021
This bill establishes requirements and procedures for the Department of the Treasury to transfer ownership of certain matured, unredeemed savings bonds and related records to states.
[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4085 Introduced in House (IH)]
<DOC>
117th CONGRESS
1st Session
H. R. 4085
To allow for the transfer and redemption of abandoned savings bonds.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 23, 2021
Mr. Estes (for himself, Mr. Danny K. Davis of Illinois, Mr. LaHood, Mr.
Larson of Connecticut, Mrs. Walorski, Mr. Kind, Mrs. Wagner, Mr.
Pascrell, Mr. Timmons, Mr. Beyer, Mr. Norman, Mr. Panetta, and Mr.
Horsford) introduced the following bill; which was referred to the
Committee on Ways and Means
_______________________________________________________________________
A BILL
To allow for the transfer and redemption of abandoned savings bonds.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Unclaimed Savings Bond Act of
2021''.
SEC. 2. FINDINGS.
Congress finds the following:
(1) Tens of billions of dollars' worth of savings bonds
have never been redeemed by their owners, including millions of
bonds that matured years and even decades ago. The Department
of the Treasury refers to these bonds as Matured Unredeemed
Debt (``MUD'').
(2) The United States savings bond program was created to
fund critical government operations during times of national
need while guaranteeing to citizens the promise of a safe
return.
(3) The States are the traditional custodians of abandoned
property and are best positioned to help owners of abandoned
bonds recover the proceeds of their investment.
(4) Until abandoned property is claimed, the States are
able to devote unclaimed funds to the health and welfare of
their citizens.
(5) Allowing States to utilize the proceeds of abandoned
savings bonds provides them with liquidity and the ability to
serve their citizens without increasing the Federal deficit.
SEC. 3. TRANSFER AND REDEMPTION OF ABANDONED SAVINGS BONDS.
Section 3105 of title 31, United States Code, is amended by adding
at the end the following:
``(f)(1) Notwithstanding any other Federal law, the ownership of an
applicable savings bond may be transferred pursuant to a valid judgment
of escheatment vesting a State with title to the bond. Nothing in this
section, or in any regulation promulgated by the Secretary to implement
this section, may be construed to preempt State law providing for, or
governing the escheatment of, applicable savings bonds.
``(2) The Secretary shall recognize an order of a court of
competent jurisdiction that vests title to an applicable savings bond
with a State, regardless of whether the State has possession of such
bond if the State provides the Secretary with a certified copy of such
order.
``(3)(A) If a State has title or is seeking to obtain title through
a judicial proceeding to an applicable savings bond, the Secretary
shall provide to the State, upon request, the serial number of such
bond, and any reasonably available records or information--
``(i) relating to the purchase or ownership of such bond,
including any transactions involving such bond; or
``(ii) which may provide other identifying information
relating to such bond.
``(B) Any records or information provided to a State pursuant to
subparagraph (A) shall be considered sufficient to enable the State to
redeem the applicable savings bond for full value, regardless whether
the bond is lost, stolen, destroyed, mutilated, defaced, or otherwise
not in the State's possession.
``(4)(A) Subject to subparagraph (C), a State may redeem and
receive payment for an applicable savings bond for which the State has
title pursuant to the same procedures established pursuant to
regulations which are available for payment or redemption of a savings
bond by any owner of such bond.
``(B) The Secretary may not prescribe any regulation which prevents
or prohibits a State from obtaining title to an applicable savings bond
or redeeming such bond pursuant to the procedures described in
subparagraph (A).
``(C) In the case of an applicable savings bond which is lost,
stolen, destroyed, mutilated, defaced, or otherwise not in the
possession of the State, if the State has requested records and
information under paragraph (3)(A), any applicable period of limitation
for payment or redemption of such bond shall not begin to run against
the State until the date on which the Secretary has provided the State
with the records and information described in such paragraph.
``(5) If the United States Government makes payment to a State for
an applicable savings bond pursuant to paragraph (4)--
``(A) that State shall attempt to locate the original owner
of each such bond registered with an address in that State
pursuant to the same standards and requirements as exist under
that State's abandoned property rules and regulations;
``(B) except as provided in subparagraph (C), the United
States Government shall not retain any further obligation or
liability relating to such bond, including any obligation or
liability with respect to the registered owner of such bond (as
described in paragraph (6));
``(C) should a State that receives payment for an
applicable savings bond pursuant to paragraph (4) fail to make
payment to a registered owner of such bond (as described in
paragraph (6)(B)) after presentment of a valid claim of
ownership pursuant to that State's abandoned property rules and
regulations, such owner may then seek redemption of their bond
through the Secretary or any paying agent authorized by the
United States Government to make payments to redeem such bonds,
and it shall be paid; and
``(D) where the United States Government has made payment
of an applicable savings bond under subparagraph (C), the
respective State shall indemnify the United States for payments
made on such bond.
``(6) For purposes of this subsection, the term `applicable savings
bond' means any United States savings bond that--
``(A) matured on or before December 31, 2017;
``(B) is registered to an owner with a last known address
within a State claiming title under a valid escheatment order
entered after December 31, 2012, and before January 2026; and
``(C) has not been redeemed by such owner.''.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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