A security becomes worthless when it has no value or no potential value. Evidence of worthlessness must clearly indicate no probability of realizing anything of value for the security from a sale, liquidation, or otherwise. A security is considered worthless if the cost of selling or disposing the security is greater than the value of the security.
We will not accept worthless, restricted, or nontransferable securities. Hold these securities until they either have value or can be delivered.
Physical certificates are accepted only if they cannot be sent DTC, DWAC, or DRS. Our custodian must be notified two business days prior to sending. Certificates received without proper notification will be returned. No Certificates will be accepted that require fees to be paid for by the State of Tennessee.
Non-publicly traded securities can be managed by our custodian. We will work directly with the reporting company to process transfers and claims. Understand that if multiple owners are being reported, and one comes forward to claim their shares, that owner’s portion will have to be completely detached from the escheated number of shares and returned to claimant.
The State does offer a buy-back after 36 months of reporting. If your security cannot be purchased by the entity or publicly sold, we will have to be the custodians until the securities are claimed. This does cause our interests to become greater as the securities are reported.
Contact UPCH.Custody@avenuinsights.com for guidance delivering non-publicly traded securities.
It does not matter where the account resides as long as it is related to the Unclaimed Property for the State of Tennessee.
If the shares can easily be transferred and/or liquidated once in the State’s name, register the security under the State’s nominee name and book the shares as Not In Bank (NIB). This way, the State has a record of receiving the shares and can easily transact when authorization to do so is received.
The securities that have no value and/or cannot be registered to our FEIN should not be reported or delivered to the State. If the restrictions are lifted and the security restores its value, then it should be reported on the next submitted report.
If you need clarification that the security is non-reportable, a list of questionable securities can be emailed to UCP.Securities@tn.gov. The email response can be used for auditors, and the Broker will not be penalized for not reporting.
All reported securities must be held or managed by our custodian. Exceptions are only considered if given direct approval prior to reporting by our office. A monthly or no less than quarterly statement for all securities is a requirement to this exception. Any securities reported without prior approval will be refused and returned to the custody of the Reporting Holder.