Fee agreement to locate, deliver, or recover owner's property
Sec. 46. (a) This subsection does not apply to an owner's
agreement with an attorney to file a claim as to identified property or
to contest the attorney general's denial of a claim. An agreement by
an owner that:
(1) has the primary purpose of paying compensation to locate,
deliver, recover, or assist in the recovery of property presumed
abandoned under this chapter; and
(2) is entered into not earlier than the date the property was
presumed abandoned and not later than twenty-four (24) months
after the date the property is paid or delivered to the attorney
general;
is void and unenforceable.
(b) An agreement by an owner that has the primary purpose of
locating, delivering, recovering, or assisting in the recovery of
property is valid only if:
(1) the fee or compensation agreed upon is not more than ten
percent (10%) of the amount collected, unless the amount
collected is fifty dollars ($50) or less;
(2) the agreement is in writing;
(3) the agreement is signed by the apparent owner;
(4) the agreement clearly sets forth:
(A) the nature and value of the property; and
(B) the value of the apparent owner's share after the fee or
compensation has been deducted; and
(5) the agreement contains the provision set forth in subsection
(d).
(c) This section does not prevent an owner from asserting at any
time that an agreement to locate property is otherwise invalid.
(d) This subsection applies to a person who locates, delivers,
recovers, or assists in the recovery of property reported under this
chapter for a fee or compensation. An advertisement, a written
communication, or an agreement concerning the location, delivery,
recovery, or assistance in the recovery of property reported under this
chapter must contain a provision stating that, by law, any contract
provision requiring the payment of a fee for finding property held by
the attorney general for less than twenty-four (24) months is void,
and that fees are limited to not more than ten percent (10%) of the
amount collected unless the amount collected is fifty dollars ($50) or
less.
(e) Subsections (b)(4) and (d) do not apply to attorney's fees.
(f) If an agreement covered by this section:
(1) applies to mineral proceeds; and
(2) contains a provision to pay compensation that includes a
portion of the underlying minerals or any mineral proceeds not
then presumed abandoned;
the provision is void and unenforceable.
(g) An agreement covered by this section that provides for
compensation that is unconscionable is unenforceable except by the
owner. An owner who has agreed to pay compensation that is
unconscionable, or the attorney general on behalf of the owner, may
maintain an action to reduce the compensation to a conscionable
amount. The court may award reasonable attorney's fees to an owner
who prevails in the action.
As added by P.L.2-2002, SEC.19.
Last modified: May 24, 2006