781—9.20(556) Owner notification and holder due diligence.
- 9.20(1) Holders shall exercise reasonable and necessary due diligence consistent with good business practice in attempting to reactivate dormant accounts and to locate owners of unclaimed property.
- 9.20(2) If a holder fails to perform due diligence as required by Iowa Code section 556.11(5), the treasurer may charge five dollars for each name and address account reported if 35 percent or more of the accounts are claimed within 24 months immediately following the filing of a holder report.
- 9.20(3) If a holder fails to perform due diligence as required by Iowa Code section 556.11, the holder will not have met the good-faith reporting standard of Iowa Code section 556.14 and the division will not be obligated to defend the holder against any claim of liability.
This rule is intended to implement Iowa Code section 556.11.
[ARC 2809C, IAB 11/9/16, effective 12/14/16; ARC 8844C, IAB 1/22/25, effective 2/26/25]