AI-assisted research summary: This section limits and conditions compensation agreements for locating abandoned property, and sets rules for fiduciary agent payment requests and payment responsibility.
§177. Agreement to locate property A. An agreement by an owner to pay compensation to locate, deliver, recover, or assist in the recovery of property that is presumed abandoned is void and unenforceable if it was entered into during the period commencing on the date the property was presumed abandoned and extending to a time that is twenty-four months after the date the property is paid or delivered to the administrator. B. For his services, a fiduciary agent shall be entitled to compensation of an amount not to exceed ten percent of the total claim value. C. A fiduciary agent who seeks compensation pursuant to this Section shall submit to the administrator a payment request. The payment request shall be submitted with the abandoned property claim. The payment request shall be sworn to and signed by the fiduciary agent and the owner before a notary public and contain both of the following: (1) A clear disclosure of any amount that may be paid pursuant to the provisions of this Section. (2) The signature of the owner below a statement that the owner is aware that a portion of his unclaimed property may be used by the unclaimed property administrator to pay the fiduciary agent. D.(1) If the property claimed is cash or has been converted to cash through sale as provided in this Chapter, the administrator shall pay the fiduciary agent from the claim proceeds otherwise due the owner. (2) If the property claimed has not been converted to cash as provided in this Chapter, the owner shall be responsible for payment to the fiduciary agent. E. The provisions of this Section do not apply to any claim made by another state. F. A fiduciary agent shall have a fiduciary duty to the owner until the owner's claim is paid. G. Any agreement by an owner to pay compensation to locate, deliver, recover, or assist in the recovery of property is enforceable only if the agreement is in writing, clearly sets forth the nature of the property and the services to be rendered, is signed by the apparent owner, and states the value of the property before and after the fee or other compensation has been deducted. H. If an agreement covered by this Section is applicable to mineral proceeds and the agreement contains a provision to pay compensation that includes a portion of the underlying minerals or any production payment, overriding royalty, compensating royalty, or similar payment, the provision is void and unenforceable. I. An owner who has agreed to pay compensation that is unconscionable, or the administrator on behalf of the owner, may maintain an action to reduce the compensation to a conscionable amount. The court may award reasonable attorney fees to an owner who prevails in the action. J. At any time, an owner may assert that an agreement covered by this Section is otherwise invalid. Acts 1986, No. 829, §1, eff. July 10, 1986; Acts 1997, No. 809, §1, eff. July 10, 1997; Acts 2023, No. 351, §1, eff. June 12, 2023.