NOTICE TO MISSING SECURITY HOLDERS.

SEC. 929W. NOTICE TO MISSING SECURITY HOLDERS. Section 17A of the Securities Exchange Act of 1934 (15 U.S.C. 78q–1) is amended by adding at the end the following new subsection:“(g) Due Diligence for the Delivery of Dividends, Interest, and Other Valuable Property Rights.—“(1) Revision of rules required.—The Commission shall revise its regulations in section 240.17Ad–17 of title 17, Code of Federal Regulations, as in effect on December 8, 1997, to extend the application of such section to brokers and dealers and to provide for the following:“(A) A requirement that the paying agent provide a single written notification to each missing security holder that the missing security holder has been sent a check that has not yet been negotiated. The written notification may be sent along with a check or other mailing subsequently sent to the missing security holder but must be provided no later than 7 months after the sending of the not yet negotiated check.“(B) An exclusion for paying agents from the notification requirements when the value of the not yet negotiated check is less than $25.“(C) A provision clarifying that the requirements described in subparagraph (A) shall have no effect on State escheatment laws.“(D) For purposes of such revised regulations—“(i) a security holder shall be considered a ‘missing security holder’ if a check is sent to the security holder and the check is not negotiated before the earlier of the paying agent sending the next regularly scheduled check or the elapsing of 6 months after the sending of the not yet negotiated check; and“(ii) the term ‘paying agent’ includes any issuer, transfer agent, broker, dealer, investment adviser, indenture trustee, custodian, or any other person that 124 STAT. 1870 accepts payments from the issuer of a security and distributes the payments to the holders of the security.“(2) Rulemaking.—The Commission shall adopt such rules, regulations, and orders necessary to implement this subsection no later than 1 year after the date of enactment of this subsection. In proposing such rules, the Commission shall seek to minimize disruptions to current systems used by or on behalf of paying agents to process payment to account holders and avoid requiring multiple paying agents to send written notification to a missing security holder regarding the same not yet negotiated check.”.