Unclaimed Property VDA Program: Delaware Reaches Out Again
In May, we posted that the Delaware Secretary of State (SOS) had begun issuing a new round of letters inviting companies to enter the Voluntary Disclosure Agreement (VDA) Program to ensure compliance with Delaware’s Abandoned or Unclaimed Property Law. Read the prior post here.
Last week, the SOS sent an email to holder advocates reminding them that, pursuant to 12 Del. C. §1173(b), it had recently sent out invitations to companies to enter its VDA Program. The SOS stated that it was sending the update to True Partners and other holder advocates because companies frequently seek out an advocate to assist them with unclaimed property VDAs, and True Partners and other holder advocates may start receiving inquiries from companies that received the VDA invitations.
The SOS stated that any company that receives a letter is encouraged to enroll in the SOS VDA Program to facilitate compliance with Delaware’s Abandoned or Unclaimed Property Law. Once a company received a VDA invitation, it has 60 days from the date of the invitation to enroll in the SOS VDA Program by completing, executing and submitting Form VDA-1 Disclosure and Notice of Intent to Voluntarily Comply to the Secretary of State. If an invitee does not enroll in the SOS VDA Program within 60 days of the invitation mailing, the SOS will refer the company to the State Escheator for examination.
As we stated in our earlier post, your company should:
- BE ON THE LOOKOUT. Notify your team that the Delaware VDA invitations may be coming. Often the invitations are sent to corporate officers or others that may not be aware of what they are or the potential consequences of ignoring the invitation.
- REVIEW YOUR OPTIONS. If you receive an invitation, assess your options carefully. Most companies will benefit by entering into a Delaware VDA, but each company’s facts and circumstances are unique. In most cases, a company will benefit from speaking to counsel or holder advocates familiar unclaimed property and the Delaware VDA program.
- RESPOND PROMPTLY. If you’ve determined that the VDA program is right for your company, make sure to respond timely to ensure your company’s right to participate.
Please reach out to any member of the True Partners Unclaimed Property Management Team if you have any questions about this or any other unclaimed property developments likely to impact your company.