Reed Smith Client Alerts

Key takeaways

  • The Delaware General Assembly has proposed Senate Bills 266 and 267 related to the State’s unclaimed property law.
  • SB 266 would provide the Delaware State Escheator with control over whistleblower actions, though incentives to such whistleblowers, and consequences to holders, remain high.
  • SB 267 addresses important aspects of compliance, such as foreign property, worthless securities, and early reporting.

Once again, the Delaware General Assembly is considering changes to the State’s unclaimed property law. The Senate has proposed two bills addressing various aspects of the law. Senate Bill 266 (“SB266”) would provide the Delaware State Escheator with control over whistleblower actions, though incentives to such whistleblowers, and consequences to holders, remain high. Senate Bill 267 (“SB 267”) addresses critical issues, such as foreign property, worthless securities, and early reporting. Both bills have been reported out of committee and are listed as “Ready” for review.

SB266:

This bill appears on its face to be favorable to holders, in that it “removes” the ability of whistleblowers to directly bring claims of unclaimed property noncompliance. Yet the law, if enacted, would permit the Attorney General to bring such actions and provide for potentially significant compensation to whistleblowers.