GENERAL ASSEMBLY OF NORTH CAROLINA
The General Assembly of North Carolina enacts:
Section 1. Subsection (c) of Section 7A of Chapter 18 of the Session Laws of the Second Extra Session of 1996 reads as rewritten:
"(c) Subsection (a) of this section applies to
funds held or collected by business associations on or after July 1, 1996.
(a) of this section expires June 30, 1997, but funds collected or held by
business associations before June 30, 1997 shall not escheat."
Section 2. G.S. 116B-23 reads as rewritten:
"§ 116B-23. Exclusion for forfeited reservation deposits.
Property or funds withheld by a business association as a
penalty or forfeiture or as damages in the event a person who has reserved the
services of the business association fails to make use of and pay for the
services, regardless of any practice or policy of the business association related
to the return of withheld funds, is not unclaimed or abandoned property. A
forfeited reservation deposit is not unclaimed or abandoned property. For the
purposes of this section, the term 'reservation deposit' means an amount of
money paid to a business association to guarantee that the business association
holds a specific service, such as a room accommodation at a hotel, seating at a
restaurant, or an appointment with a doctor, for a specified date and place.
The term does not include an application fee, a utility deposit, or a deposit
made toward the purchase of real or personal property."
Section 3. This act is effective when it becomes law. All property or funds held as forfeited reservation deposits prior to the effective date of this act pursuant to G.S. 116B-23 shall not escheat.
In the General Assembly read three times and ratified this the 2nd day of July, 1997.
s/ Dennis A. Wicker
President of the Senate
s/ Harold J. Brubaker
Speaker of the House of Representatives
s/ James B. Hunt, Jr.
Approved 10:22 a.m. this 9th day of July, 1997