AR HB1427; Signed 3/15/2019, effective 3/15/19
This legislation which became effective immediately upon enactment, allows but does not require the administrator the immediate liquidation of securities. A claimant may choose to receive the securities if they remain in custody of the administrator or they may receive the proceeds received from the liquidation of the securities, minus any fees and expenses incurred from the sale.
The second part of this bill prohibits the claimant from taking action or bringing a proceeding for any appreciation or depreciation in the value of the securities that may occur after the delivery to the administrator against the state, administrator, holder, transfer agent, auctioneer, or agent acting for or on behalf of the holder or administrator.
Owners of liquidated securities will not be able to be made whole due to the fees and costs that will be removed from their shares. Holders of securities are going to have to go above and beyond the minimum due diligence requirement to reunite owners with their property.
UPCR has the technology and resources to assist you with your due diligence needs. Contact us today for a free consultation – we will be glad to take this burden from you!