AR SB356

United States savings bonds held in Arkansas are presumed abandoned if unclaimed for 5 years after the bond's maturity date.

Abandoned savings bonds escheat to the state 2 years after becoming abandoned property, with the administrator required to file a civil action for escheatment within 180 days after that 2-year period.

The administrator must provide notice to defendants in civil actions according to Arkansas Rules of Civil Procedure and redeem escrowed bonds, depositing proceeds into the Unclaimed Property Proceeds Trust Fund.

Individuals may file claims for escrowed savings bonds or their proceeds; valid claims are paid after deducting administrative expenses incurred in securing title, and payment bars all future claims by other claimants.

The administrator may contract with outside legal counsel to administer the escheatment process and may postpone filing civil actions until additional bonds accumulate to justify the expense.