Arizona State Legislature recently made changes to their Unclaimed Property laws as HB 2023 was passed on April 10, 2012. This new law adds language clarifying that a certificate of deposit cannot be presumed abandoned until after the initial maturity of the CD. Presently, Arizona unclaimed property law states that “a demand, savings or time deposit, including a deposit that is automatically renewable, and any interest or dividends are presumed abandoned three years after maturity or the date of the last indication by the owner of interest in the property, whichever occurs first.”
With the new language in place, the dormancy trigger for the CD cannot begin until initial maturity, even if the last indication of interest by an owner occurs prior to initial maturity. The new law also specifies that if a person agrees to auto renewal upon opening an account and the consent is in writing, it is not considered abandoned property upon its initial maturity date.
The new law will be effective 91 days after the legislature adjourns or approximately September 23rd, 2012.