Definitions

‘Holder’
A ‘Holder’ is defined as a corporation that holds property on behalf of an owner.  In general terms, the ‘holder’ is McLean Budden or McLean Budden Funds Inc as unitholder recordkeeper for the McLean Budden Mutual Funds.

‘Property’
A ‘holder’ must hold ‘property’ before the BC Unclaimed Property Act will take affect.  ‘Property’ includes securities and their entitlements and money deposited to make a distribution or the right to a trust, custodial fund or fiduciary arrangement of any kind.

‘Reasonable Efforts’
The BC Unclaimed Property Act requires a holder to make reasonable efforts to locate and notify an owner about property they are holding when certain circumstances have occurred.  Reasonable efforts must be taken within six (6) months of the circumstance arising.  Reasonable efforts are NOT required for property falling below a prescribed dollar value – generally $200.  If the value of the property is less than $50, then MB is not required to make reasonable efforts, nor to enter the property into the ‘Database’ (excel spreadsheet titled “Unclaimed Property”).

Regardless of the dollar value of the property, an owners right to their property is not affected by the Property Act.

Process and Procedures

Unclaimed Property
When any communication regarding property being held (client statement) or a cheque sent to the owner is returned undelivered, it must immediately be delivered to MB’s Compliance Officer.  The CO maintains a list of all returned communications.  The CO then notifies the MBFI Mutual Fund Department of the returned communication and the department is requested to then use ‘reasonable efforts’ to contact the client. 

Locating the Owner of Unclaimed Property
Locating the owner of unclaimed property can be a very simple process. In many cases, people have simply forgotten about their property and have changed their mailing address, and they are easily contacted. In other cases, though, MB may be required to do some simple investigative work to locate owners.

There are many simple ways to locate owners of property. Some are detailed below:

1. Try to contact the owner at their last known address.
    - Phone or send a letter advising that MBFI is holding his or her property. Even if the person has moved, the owners might know the owners whereabouts.

2. Try to locate the owner in a local phone book
    - Try neighboring phone books as well.

3. Try to locate the owner using Canada-411
    - www.Canada411.com

4. Try to locate the owner through telephone directory assistance
    - Regular directory assistance is usually more up to date than Canada 411

5. Search the local phone book for possible relatives.
    - Only if the surname is very uncommon should this option be used.

6. Reverse Phone Directory
    - Use a reverse phone directory if you have a phone number for the client, but the address is incorrect.

When attempting to locate an owner, MBFI employees may find it useful to keep a record of location attempts. A sample “Record of Owners Location Attempt” has been included in Appendix A.  This document should be kept in the client file.  The client file must be flagged so that any subsequent trade request is brought to the attention of the CO prior to being processed.  The CO will determine whether the trade should proceed or if further identification is needed.

When Reasonable Efforts are Unsuccessful
When efforts by MBFI staff are unsuccessful in locating and notifying the client, the Compliance Officer will enter the name of the owner and the date that the property became ‘unclaimed’ will be entered into the Database.  This must occur within 12 months of the initial indication that the client could not be located.

Constructing and Maintaining the Database
Maintenance of the database is the responsibility of the Compliance Officer.  The information contained in the database will consist of all relevant information regarding the client in question and their unclaimed property.

The general public may inquire about the MB Unclaimed Property Database.  If someone inquires about the database, they must immediately be directed to the Compliance Officer of MB.  The CO can only make available the name of the owner of the unclaimed property and the date on which the property became unclaimed. 

Reviewing and Processing Claims
All claims for Unclaimed Property must be brought to the attention of the Review Committee – MB’s CO, the Senior Vice President Finance & Administration and the President (CEO).  These individuals will determine the validity of the claim and will do all in their power to ensure that the claimant is in deed the true owner of the property.

Appeals process for Denied Claims
Claimants have the right to appeal the decision of the Review Committee.  In these circumstances, MB will attain legal council for their expertise prior to proceeding.