AI-assisted research summary: This section sets rules for banks disposing of contents from abandoned safety deposit boxes, including valuation, sale methods, low-value item handling, and immunity.
§327.1. Disposition of abandoned safety deposit box contents A. If a bank has entered an abandoned safety deposit box in accordance with the requirements of R.S. 6:327, and the bank decides to proceed with disposing of or selling the abandoned contents, then the provisions contained in the safety deposit box rental agreement or the provisions contained in this Section shall apply. B.(1) Prior to a public or private sale of contents from an abandoned box, the following types of property may be classified as unsalable by an independent appraiser, an auctioneer, a pawn broker, or the bank, and disposed of in the following manner: (a) Documents, writings, or photographs having little or no commercial value may be destroyed by the bank, except for those contents subject to the provisions of R.S. 9:155(B). (b) Coins or currency with a face value of twenty dollars or less each that are valued at no more than twice the face value shall be treated as proceeds of a sale and used to satisfy the bank's lien and any excess proceeds shall be remitted to the administrator of the Uniform Unclaimed Property Act by paper check or electronic funds transfer. (c) Coins or currency with a face value of greater than twenty dollars each that are valued at one hundred twenty-five percent or less of face value shall be treated as proceeds of sale and used to satisfy the bank's lien and any excess proceeds shall be remitted to the administrator of the Uniform Unclaimed Property Act by paper check or electronic funds transfer. (d) Any other tangible item having an estimated sale value of twenty-five dollars or less may be destroyed by the bank or donated by the bank to a charitable organization qualified under Section 501(c)(3) of the Internal Revenue Code, 26 U.S.C. 501, provided that the aggregate value of the items from a specific abandoned safety deposit box does not exceed two hundred fifty dollars. (2) A current version of any recognized numismatist publication may be used for purposes of valuation of coins and currency. C.(1) Prior to a public or private sale of contents from an abandoned safety deposit box that has not been classified as unsalable as provided in Subsection B of this Section, the bank shall obtain an independent valuation of the contents by an independent appraiser, auctioneer, pawn broker, coin or collectibles dealer, a jeweler, or by any other person who is regularly engaged in the business of appraising, buying, or selling like merchandise, or any other combination thereof. (a) Contents from a safety deposit box with an independent valuation of more than one thousand dollars shall be sold for at least sixty-six percent of the independent valuation price at public or private sale. If no offer is received which meets the minimum valuation requirements, the contents may be sold without a value restriction at a subsequent public or private sale. (b) Contents from a safety deposit box with an independent valuation of one thousand dollars or less may be sold without a value restriction at public or private sale. (2) Firearms shall be disposed of in one of the following ways: (a) Sold through a federal firearms licensed dealer. (b) Sold through a public auction through an auctioneer who possesses a federal firearms license. (c) Turned over to law enforcement. D. Any public or private sale of contents of an abandoned safety deposit box must be a commercially reasonable sale held at a time and place in the judgment of the bank that will bring the most favorable prices for the property involved. For purposes of this Section, "commercially reasonable" includes but is not limited to a sale that would be commercially reasonable under R.S. 10:9-610, or a sale, or sale methodology, that is approved by the commissioner of financial institutions. A bank may sell the contents of an abandoned safety deposit box in a sale conducted exclusively for the bank, or in a sale conducted jointly for the bank and any number of other financial institutions or other entities. A bank may use an online auction service as a commercially reasonable public sale. A party providing an independent valuation is eligible to purchase the contents valued at a public or private sale. E. A bank and its directors, officers, employees, agents, and other representatives who act in accordance with the authority granted in R.S. 6:327 and this Section relative to the disposition of abandoned safety deposit box contents shall be immune from all civil and administrative liability. Acts 2020, No. 236, §1.