BC 148
Type: Banking Circular
Subject: Service Charges on Dormant Accounts and Abandoned Property Law
Date: September 25, 1980

TO:  Chief Executive Officers of National Banks


Considerable attention has recently been focused on the amount of
unclaimed property held by the nation's financial institutions. In
particular, the policies, practices and procedures of national banks as
they relate to dormant accounts and state abandoned property laws have
been the subject of much discussion and a recent congressional hearing.

DORMANT ACCOUNTS

Interpretive Ruling 12 CFR 7.7515, Service Charges on Dormant Accounts,
provides that "A national bank may, consistent with contracts of deposit,
impose such service charges on dormant accounts as its board of directors
determines to be reasonable." The directorate of each national bank is
responsible for reviewing the basis for the bank's service charges on
dormant accounts and for recording its determination that the charges are
reasonable. The record of the board's determination of reasonableness will
be reviewed by national bank examiners during the course of their
examination.

ABANDONED PROPERTY LAW

It has been, and will continue to be, the policy of this Office to monitor
national banks' compliance with applicable state laws, including abandoned
property law. To this end, we are revising our examination procedures to
enable us to more effectively evaluate compliance with those laws and to
assure that prompt remedial action is taken when violations are found.

The directorate and management of each national bank are responsible for
implementing policies and operating procedures which will insure
compliance with all applicable state abandoned property laws. These
policies and procedures should be tested by the bank's internal and
external auditors and will be reviewed by national bank examiners during
the course of their examination.

You are encouraged to stay abreast of developments in this area and to
evaluate the impact they may have on your bank.

ORIGINATING OFFICE

Chief National Bank Examiner's Office, Commercial Examinations Division,
(202) 447-1756

Paul M. Homan
Senior Deputy Comptroller
for Bank Supervision