Arizona Revised Statutes § 44-310 Custody By State; Recovery By Holder; Defense Of Holder

44-310. Custody by state; recovery by holder; defense of holder

A. On payment or delivery of property to the department, the state assumes custody and responsibility for the safekeeping of the property. A holder who pays or delivers property to the department in good faith is relieved of all liability with respect to the property that arises after the payment or delivery.

B. A holder who has paid money to the department pursuant to this chapter may subsequently make payment to a person who reasonably appears to the holder to be entitled to payment. On a filing by the holder of proof of payment and proof that the payee was entitled to the payment, the department shall promptly reimburse the holder for the payment without imposing any fee or other charge. If the holder seeks reimbursement for a payment made on a negotiable instrument, including a traveler's check or money order, the department shall reimburse the holder if the holder files proof that the instrument was duly presented and that payment was made to a person who reasonably appeared to be entitled to payment. The department shall reimburse the holder for payment even if the payment was made to a person whose claim was barred pursuant to section 44-321.

C. Without paying any fee or other charge, a holder who has delivered property other than money to the department pursuant to this chapter may reclaim the property if the property is still in the possession of the department and the holder files proof that the apparent owner has claimed the property from the holder.

D. The department may accept a holder's affidavit as sufficient proof of the holder's right to recover money and property under this chapter.

E. If a holder pays or delivers property to the department in good faith and after the payment or delivery another person claims the property from the holder or another state claims the money or property under that state's laws relating to escheat or abandoned or unclaimed property, on written notice of the claim the department shall defend the holder against the claim and indemnify the holder against any liability on the claim that results from payment or delivery of the property to the department.

F. If the department receives any property that is removed from a safe deposit box or any other safekeeping depository the department is subject to the holder's right to be reimbursed for the cost of the opening and to any valid lien or contract that provides for the holder to be reimbursed for unpaid rent or storage charges. The department shall reimburse the holder from the proceeds that remain after deducting the expense incurred by the department in selling the property.

G. For the purposes of this section, payment or delivery is made in good faith if all of the following requirements are met:

1. Payment or delivery was made in a reasonable attempt to comply with this chapter.

2. At the time of the payment or delivery the holder was not in breach of a fiduciary obligation with respect to the property and based on facts known by the holder at the time of the payment or delivery the holder reasonably believed that the property was presumed abandoned.

3. Records pursuant to which the payment or delivery was made meet reasonable commercial standards of practice.

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Last modified: October 13, 2016