Unclaimed Money Act 1971

Reprint
as at 7 July 2010

Unclaimed Money Act 1971

Public Act1971 No 28
Date of assent16 October 1971
Note

Changes authorised by section 17C of the Acts and Regulations Publication Act 1989 have been made in this eprint.

A general outline of these changes is set out in the notes at the end of this eprint, together with other explanatory material about this eprint.

This Act is administered in the Treasury, but is for practical purposes administered in the Inland Revenue Department - see s 2 of this Act.

An Act to consolidate and amend certain enactments of the Parliament of New Zealand relating to unclaimed money

1 Short Title and commencement

  • (1) This Act may be cited as the Unclaimed Money Act 1971.

    (2) This Act shall be deemed to have come into force on the 1st day of June 1971.

2 Interpretation

  • In this Act, unless the context otherwise requires,—

    Commissioner means the Commissioner of Inland Revenue as defined in the Tax Administration Act 1994

    Commissioner: the former reference to the Inland Revenue Department Act 1974 was substituted, as from 1 January 1975, for a reference to the Inland Revenue Department Act 1952 pursuant to section 49 Inland Revenue Department Act 1974 (1974 No 133).

    Commissioner: amended, as from 1 April 1995, by section YB 1 Income Tax Act 1994 (1994 No 164) by substituting the words “Tax Administration Act 1994” for the words “Inland Revenue Department Act 1974”.

    Holder, in relation to any unclaimed money, means a holder within the meaning of section 5 of this Act; and includes any person acting for or on behalf of the holder; and also includes the personal representative of the holder

    Officer of the Department means any person employed in the Inland Revenue Department

    Owner, in relation to any unclaimed money, means the person entitled to the unclaimed money; and includes any other person claiming under or on behalf of that person

    Savings bank means—

    • (a) Post Office Bank Limited:

    • (b) A trustee bank's successor company in respect of any money vested in it by virtue of the Trustee Banks Restructuring Act 1988:

    Savings bank: amended, as from 1 April 1987, by section 11(1) State-Owned Enterprises Amendment Act 1987 (1987 No 117) by substituting the words “Post Office Bank Limited” for the words “New Zealand Post Limited, a company duly incorporated under the State-Owned Enterprises Act 1986”. The reference to a trustee bank was substituted, as from 1 April 1984, for a reference to a trustee savings bank by section 54(5) Trustee Banks Act 1983 (1983 No 116).

    Savings bank: this definition was substituted as from 22 May 1998, by section 22(1) Private Savings Banks (Transfer of Undertakings) Act 1992 (1992 No 21). See clause 2 Private Savings Banks (Transfer of Undertakings) Act Commencement Order 1998.

    Unclaimed money means unclaimed money within the meaning of section 4 of this Act, being unclaimed money situated in New Zealand.

    Compare: 1908 No 201 s 2

3 Unclaimed money to be paid to Crown

  • Subject to this Act, there shall be payable to the Crown all money which becomes unclaimed money after the commencement of this Act, except and so far as special provisions are made by or under any other Act.

4 Unclaimed money

  • (1) Subject to this section, unclaimed money shall consist of—

    • (a) Money, including the interest or any amount in the nature of interest thereon, deposited with any holder so as to bear interest for a fixed term, which has been in the possession of the holder for the period of 6 years immediately following the date of expiry of the term:

    • (b) Money, including the interest or any amount in the nature of interest thereon, deposited with any holder so as to bear interest—

      • (i) Without limitation of time; or

      • (ii) For a fixed term where, on the expiry of the fixed term, the money, if it is not withdrawn by the customer, is to be treated as reinvested,—

      where in either case the customer has not operated on the account for a period of 25 years, whether by deposit, or withdrawal, or instruction in writing:

    • (c) Money deposited upon current account or otherwise with any holder and not bearing interest, where—

      • (i) In any case where the holder is a savings bank, the customer has not operated on the account for a period of 25 years, whether by deposit, or withdrawal, or instruction in writing; and

      • (ii) In any other case, the customer has not operated on the account for a period of 6 years, whether by deposit, or withdrawal, or instruction in writing:

    • (d) Money payable or distributable on or in consequence of the maturity of a policy of life assurance, being money which has been in the possession of any holder for the period of 6 years immediately succeeding the date on which—

      • (i) The policy matured otherwise than by death; or

      • (ii) The holder first had reason to suppose that the policy has matured by death, whether such death has been legally proved or not,—

      whichever date is the earlier, and notwithstanding that by the terms of the policy the money is not payable or distributable except on proof of death, or on proof of age or any other collateral matter:

    • (e) Any other money, of any kind whatsoever, which has been owing by any holder for the period of 6 years immediately following the date on which the money has become payable by the holder:

      Provided that money of any of the kinds referred to in this subsection shall cease to be unclaimed money where—

      • (i) In respect of any one owner it does not exceed $100 in total; and

      • (ii) Before the 1st day of June next succeeding the end of the period of 6 years or, as the case may be, 25 years specified in this subsection, that unclaimed money is, without limiting any claim any owner may have thereto, applied by the holder for his own benefit or for the benefit of any other person or for any purpose or object.

    (2) Unclaimed money shall not include—

    • (a) Any dividends, not being dividends payable by a mutual association in relation to money deposited with the association, payable by a company to any of its shareholders:

    • (b) Any rebate payable by a mutual association (other than a holder of the kind referred to in paragraph (f) of subsection (1) of section 5 of this Act) to any of its members in relation to the trading transactions of the member with the association, not being a rebate payable in relation to money deposited with the association:

    • (c) Any benefits payable from any pension or superannuation fund.

    (3) Where a holder has ceased to carry on business or has died, and the holder, or, as the case may be, his personal representative, has for a period of 6 months or more immediately succeeding the date of that cessation or death been in possession of or owed money which has remained unclaimed and—

    • (a) Which would become unclaimed money when the period referred to in the appropriate paragraph of subsection (1) of this section had expired if the money had remained unclaimed; or

    • (b) Which would have so become unclaimed money if it were not money of any of the kinds referred to in subsection (2) of this section,—

    the holder or that personal representative may, if he thinks fit, pay the money to the Commissioner and furnish to the Commissioner particulars of the payment and of the person on whose behalf the money was held or to whom it was owed; and thereupon that money shall be deemed to be unclaimed money, and the provisions of this Act, as far as they are applicable, shall apply accordingly:

    Provided that this subsection shall not apply to any money of the kind referred to in section 330 of the Companies Act 1955.

    (4) In subsection (2) of this section the expression mutual association means any body or association of persons, whether incorporated or not, which enters into transactions of a mutual character with its members, whether or not it also enters into transactions with other persons.

    Compare: 1908 No 201 s 2; 1932 No 11 s 26

    Subsection (1) proviso (i) was amended, as from 24 March 1988, by section 2 Unclaimed Money Amendment Act 1988 (1988 No 9) by substituting the expression “$100” for the expression “$20”.

5 Holder

  • (1) This Act shall apply to unclaimed money held or owing by the following holders:

    • (a) Any company incorporated in New Zealand and any liquidator or receiver of any such company:

    • (b) Any company incorporated out of New Zealand and carrying on business in New Zealand, and any liquidator or receiver of any such company:

    • (c) Any bank, including a savings bank, carrying on business in New Zealand:

    • (e) Any person, firm, body, or institution carrying on the business of borrowing and lending money in New Zealand, in respect of money borrowed:

    • (f) Any insurance office or company carrying on business in New Zealand, including the Government Life Insurance Corporation:

    • (g) Any auctioneer within the meaning of the Auctioneers Act 1928, whether or not a company, in respect of any balance of proceeds of any auction sale:

    • (h) any agent within the meaning of the Real Estate Agents Act 2008, whether or not a company, in respect of money held in a trust account:

    • (i) Any sharebroker within the meaning of the Sharebrokers Act 1908, whether or not a company, in respect of money held on behalf of clients:

    • (j) Any chartered accountant (within the meaning of section 19 of the New Zealand Institute of Chartered Accountants Act 1996) in respect of money held on behalf of clients:

    • (k) any motor vehicle trader within the meaning of the Motor Vehicle Sales Act 2003, whether or not a company, for money held on behalf of any person for whom the trader has acted as agent in the course of carrying on the business of motor vehicle trading.

    (2) Any person, firm, body, or institution may elect to be the holder in respect of such money held or owing by him or it as he or it thinks fit, not being—

    • (a) Unclaimed money in respect of which he or it is the holder under subsection (1) of this section; or

    • (b) Except where subsection (3) of section 4 of this Act applies, money to which subsection (2) of that section applies;—

    and in that case he or it shall be deemed to be the holder in respect of that money.

    Compare: 1908 No 201 s 2; 1932 No 11 s 25; 1932-33 No 45 s 17

    The reference to “the Government Life Insurance Corporation” in subsection (1)(f) was substituted, as from 1 April 1987, for a reference to “the Government Life Insurance Office” pursuant to section 34(3) Government Life Insurance Corporation Act 1987 (1987 No 70). That Act was repealed, as from 20 August 1990, by section 31(1) Tower Corporation Act 1990 (1990 No 2 (Private)).

    Section 5(1)(h): amended, on 16 November 2009, by section 173 of the Real Estate Agents Act 2008 (2008 No 66).

    The reference to the Real Estate Agents Act 1976 in subsection (1)(h) was substituted, as from 1 April 1977, for a reference to the Real Estate Agents Act 1963 pursuant to section 125(a) Real Estate Agents Act 1976 (1976 No 9).

    Section 5(1)(ha): inserted, on 1 August 2008, by section 348 of the Lawyers and Conveyancers Act 2006 (2006 No 1).

    Subsection (1)(j) was substituted, as from 1 October 1996, by section 23 Institute of Chartered Accountants of New Zealand Act 1996 (1996 No 39).

    Section 5(1)(j): amended, on 7 July 2010, by section 10 of the New Zealand Institute of Chartered Accountants Amendment Act 2010 (2010 No 74).

    The reference in subsection (1)(k) to the Motor Vehicle Dealers Act 1975 and section 59 of that Act was substituted, as from 6 February 1976, for a reference to the Motor Vehicle Dealers Act 1958 and section 19 of that Act pursuant to section 149 Motor Vehicle Dealers Act 1975 (1975 No 127).

    Subsection (1)(k) was substituted, as from 15 December 2003, by section 145 Motor Vehicle Sales Act 2003 (2003 No 12). See sections 148 to 162 of that Act as to the transitional provisions. See clause 2 Motor Vehicle Sales Act Commencement Order 2003 (SR 2003/329).

6 Register to be kept

  • (1) Every holder shall, on the 1st day of June in each year, enter in an alphabetical register, to be kept at the head or principal office in New Zealand of the holder, in the form prescribed in the Schedule to this Act, particulars of unclaimed money arising on or after the 1st day of June in the preceding year; and from and after the 8th day of June in each year that register shall be open to the inspection of all persons at that head or principal office during the hours within which the ordinary business of the holder is transacted, on payment of such fee as may be determined by the holder, but not exceeding 50 cents:

    Provided that—

    • (a) On ceasing to carry on business in New Zealand a holder shall deposit the register in the custody of the Registrar of the District Court nearest to the place where that register was theretofore kept:

    • (b) Any holder may at any time so deposit any book or part of the register in which no entry has been made for a period of not less than 6 years immediately preceding the date of that deposit.

    (2) Nothing in this section shall apply to any unclaimed money in respect of which special provisions are made by or under any other Act, or to any unclaimed money which, pursuant to the proviso to subsection (1) of section 4 of this Act, ceases to be unclaimed money.

    Compare: 1908 No 201 s 3; 1932 No 11 s 27

    The words “District Court” were substituted, as from 1 April 1980, for the words “Magistrate's Court” pursuant to section 18(2) District Courts Amendment Act 1979 (1979 No 125).

7 Holder to notify Commissioner and owners of entries in register of unclaimed money

  • (1) Not later than the 30th day of June in each year, every holder shall, by letter addressed to the last known place of business or abode of the owner, post to every owner in respect of whom an entry as the owner of unclaimed money was required to be made on the 1st day of that month in the register kept by the holder pursuant to section 6 of this Act, a notice specifying the amount of that money and the fact that it is entered in the register as unclaimed money, and the holder shall thereupon enter in that register the date of posting of the notice.

    (2) Not later than the 30th day of September in each year, every holder shall furnish to the Commissioner a copy of every entry made, on or after the 1st day of June in that year, in the register kept by the holder pursuant to section 6 of this Act, and shall indicate to the Commissioner which, if any, of the unclaimed money in respect of which the entry was so made, has, on or after that 1st day of June, been paid to the owner thereof.

    (3) Nothing in this section shall apply to any unclaimed money in respect of which special provisions are made by or under any other Act.

    Compare: 1932 No 11 s 28

8 Payment of unclaimed money to Commissioner

  • (1) All unclaimed money arising in any year ending with the 31st day of May which has not, before the next succeeding 30th day of September, been paid by a holder to the owner thereof, and in respect of which no person has before that 30th day of September established a valid claim, shall be paid, on or before the next succeeding 31st day of October, by the holder to the Commissioner:

    Provided that this subsection shall not apply to any unclaimed money in respect of which special provisions in relation to payment to the Commissioner are made by this Act or in respect of which special provisions are made by or under any other Act.

    (2) All money payable to the Commissioner in accordance with this section shall be recoverable by the Commissioner on behalf of the Crown by action in his official name in any Court of competent jurisdiction against the holder as a debt due to the Crown.

    (3) All unclaimed money received by the Commissioner under this or any other Act shall be paid into the Crown Bank Account.

    (4) Where unclaimed money is paid by a holder to the Commissioner in accordance with this Act, the holder shall thereafter be relieved of all further liability to any claimant in respect of the money so paid.

    Compare: 1932 No 11 s 30

    The words “Consolidated Account” referred to in subsection (3) were substituted, as from 1 April 1978, for the words “Consolidated Revenue Account” pursuant to section 114(6) Public Finance Act 1977 (1977 No 65). That reference was substituted by a reference to the “Crown Bank Account” pursuant to section 83(7) Public Finance Act 1989 (1989 No 44).

9 Special arrangements may be made by Commissioner

  • Notwithstanding the provisions of this Act, but without affecting the liability of the holder to pay unclaimed money to the Crown, the Commissioner may from time to time, pursuant to a special arrangement, exempt in writing any holder or any class of holder from compliance with all or any of the provisions of section 6, section 7, or subsection (1) of section 8 of this Act, either absolutely or conditionally, or in respect of specified kinds of unclaimed money.

10 Examination of accounts

  • (1) The Commissioner or any officer of the Department authorised by him in that behalf may at any time examine any register kept by a holder pursuant to section 6 of this Act and any accounts of the holder which relate to money which is or may be unclaimed money, and for that purpose may require the production of any book, voucher, or document relating to such money. If any error is found in the register furnished to the Commissioner or any such officer or in any notice sent to any owner, the Commissioner or the officer may require the same to be amended.

    (2) The Commissioner or any officer of the Department authorised by him in that behalf shall at all times have full and free access to all books and documents for the purpose of inspecting them for the purposes of this Act, and for this purpose may, without fee, make extracts from or copies of any such books or documents.

    (3) Every person shall, without fee, from time to time as required by the Commissioner or any officer of the Department authorised by him in that behalf furnish in writing any information or produce any books or documents which may be in his knowledge, or his possession or control, as the case may be, and which relate to money which is or may be unclaimed money.

    Compare: 1932 No 11 s 31(1)-(4)

11 Commissioner may make payment to claimant

  • (1) If any claimant makes any demand against the Commissioner for any money—

    • (a) Paid to the Commissioner; or

    • (b) Paid, whether before or after the commencement of this Act, into the Crown Bank Account under the provisions of any former enactment,—

    the Commissioner, on being satisfied that the claimant is the owner of the money demanded by him, shall cause payment to be made by him.

    (2) All money paid by the Commissioner under subsection (1) of this section shall be paid out of the Crown Bank Account without further appropriation than this Act.

    (3) [Repealed]

    (4) Where any money paid to any claimant under this section is afterwards claimed by any other person, the Commissioner shall not be responsible for the payment of the same, but that person may have recourse against the claimant to whom the Commissioner has paid the money.

    (5) No claimant shall be entitled to interest on the amount of any money for which demand on the Commissioner is made by him or on the amount of any money payment of which is made to him under this section.

    Compare: 1908 No 201 ss 8, 9

    Subsection (2) was amended, as from 1 April 1987, by section 16(4) State Services Conditions of Employment Amendment Act 1987 (1987 No 17) by omitting the words “, not being money paid by the Director-General of the Post Office under subsection (3) of this section,”.

    The words “Consolidated Account” in subsection (2) were substituted for the words “Consolidated Revenue Account” pursuant to section 114(6) Public Finance Act 1977 (1977 No 65). The words “Crown Bank Account” were substituted, as from 1 April 1990, for the words “Consolidated Account” pursuant to section 83(7) Public Finance Act 1989 (1989 No 44).

    Subsection (3) was repealed, as from 1 April 1987, by section 16(4) State Services Conditions of Employment Amendment Act 1987 (1987 No 17).

    Subsection (4) was amended, as from 1 April 1987, by section 16(4) State Services Conditions of Employment Amendment Act 1987 (1987 No 17) by substituting the words “the Commissioner” for the words “neither the Commissioner nor the Director-General of the Post Office”. It was further amended, as from 1 August 1990, by section 2 Unclaimed Money Amendment Act 1990 (1990 No 65) by inserting the word “not”.

    Subsections (4) and (5) were amended, as from 1 April 1987, by section 16(4) State Services Conditions of Employment Amendment Act 1987 (1987 No 17) by omitting the words “or the Director-General of the Post Office”. See section 107B(5) Property Law Act 1952 for the application of this section to proceeds of the sale by a lessor of abandoned personal property.

12 Officers to maintain secrecy

  • (1) The Commissioner and every officer of the Department shall maintain and aid in maintaining the secrecy of all matters which come to his knowledge in the course of his duties under this Act, and shall not communicate any such matters to any person, except for the purpose of carrying this Act into effect:

    Provided that the Commissioner may make available for publication the names of owners of unclaimed money paid to the Commissioner under this Act or any former Act and the amounts received belonging to those owners.

    (2) Every person who wilfully acts in contravention of the provisions of this section is liable on summary conviction before a District Court Judge to imprisonment for a term not exceeding 6 months or to a fine not exceeding $200.

    Compare: 1932 No 11 s 31(4), (5)

    The words “District Court Judge” were substituted, as from 1 April 1980, for the word “Magistrate” pursuant to section 18(2) District Courts Amendment Act 1979 (1979 No 125).

13 Offences

  • Every person commits an offence, and is liable on summary conviction to a fine not exceeding $500, who wilfully or negligently—

    • (a) Being a holder, fails to comply with any provision of section 6, section 7, subsection (1) of section 8, or section 10 of this Act, or with any condition on which the Commissioner has granted exemption under section 9 of this Act; or

    • (b) Being a director, manager, secretary, or other officer of the holder, authorises or permits that failure to comply.

    Compare: 1932 No 11 ss 29(1), 31(5)

14 Consequential amendments

  • (1) Impliedly repealed by s 62 of the Waterfront Industry Commission Act 1976.

    (2) Section 13 of the Innkeepers Act 1962 is hereby consequentially amended—

    • (a) By omitting from subsection (1) and also from subsection (3) the words “into the Public Account” and from subsection (2) the words “to the Public Account”, and substituting in each case the words “to the Commissioner of Inland Revenue”:

    • (b) By omitting from subsection (3) the words “the provisions of section 8, 8A, and 9 of the Unclaimed Moneys Act 1908”, and substituting the words “the provisions of section 11 of the Unclaimed Money Act 1971”.

    (3) [Repealed]

    (4) [Repealed]

    (5) [Repealed]

    (6) Subject to section 11 of this Act, the enactments amended by this section shall continue to apply, as if this Act had not been passed, to all money which before the commencement of this Act has become unclaimed money under any provision of any such enactment.

    Subsections (3) and (4) were repealed, as from 1 April 1982, by section 193(1) Law Practitioners Act 1982 (1982 No 123).

    Subsection (5) was repealed, as from 1 July 1994, by section 63 Companies Amendment Act 1993 (1993 No 108).

15 Repeals and savings

  • (1) The following enactments are hereby consequentially repealed:

    • (a) The Unclaimed Moneys Act 1908:

    • (d) The Unclaimed Moneys Amendment Act 1958.

    (2) Subject to section 11 of this Act, the enactments hereby repealed shall continue to apply, as if this Act had not been passed, to all money which before the commencement of this Act has become unclaimed money under any provision of any such enactment.

Schedule
Register of money unclaimed held by [here insert name of holder] on 1 June 19   

Section 6(1)

Name, Occupation, and Last Known Address of Owner on BooksTotal Amount due to OwnerDescription of Unclaimed MoneyDate of Posting Notice to OwnerUnclaimed Money Paid to Owner
    DateAmount
      

Contents

  • 1General

  • 2About this eprint

  • 3List of amendments incorporated in this eprint (most recent first)

Notes
1 General

  • This is an eprint of the Unclaimed Money Act 1971. The eprint incorporates all the amendments to the Act as at 7 July 2010. The list of amendments at the end of these notes specifies all the amendments incorporated into this eprint since 3 September 2007.

    Relevant provisions of any amending enactments that contain transitional, savings, or application provisions that cannot be compiled in the eprint are also included, after the principal enactment, in chronological order.

2 About this eprint
3 List of amendments incorporated in this eprint (most recent first)

  • New Zealand Institute of Chartered Accountants Amendment Act 2010 (2010 No 74): section 10

    Real Estate Agents Act 2008 (2008 No 66): section 173

    Lawyers and Conveyancers Act 2006 (2006 No 1) section 348