Hurricane Katrina: Legal Issues - Columbus School of Law

General suggestions.
Contact Your Mortgage Company as soon as possible regarding your loss. You are not excused from making your
regular monthly loan payments even if your home is not habitable. You should discuss forbearance or possible
extension or modification of your loan obligations if you are unable to make your payments on time. Contact Your
Insurance Company or Agent and file a loss claim as soon as possible. However, do not make a hasty settlement on
insurance. If the property appears damaged but repairable, attempt to get a professional engineer or licensed
contractor to make an inspection for structural damage. You should also have your lender explain procedures
regarding hanndling insurance loss checks for repairs to the property and payment to contractors.
Property Law
As a result of a natural disaster, property is often lost or scattered on land belonging to others. Even land and
buildings may end up on another person’s property, raising issues of ownership, liability, responsibility for removal,
and the location of land lines. Also, people affected by a storm may be forced to use private property because of
emergency conditions, raising questions of trespass and defense of property. After a storm, questions arise regarding
the obligation of institutions and goverments to hold property for individuals, and of the right of governments to
remove debris on private property.
Claiming financial and personal property
As a general rule, lost or mislaid property does not belong to the finder or to the person on whose land it is located --
ownership remains with the real owner unless he or she abandons the property. In some cases, for example, with
financial property, abandonment is presumed after a certain period of time. Disposition of unclaimed financial
property is governed by Mississippi’s "Uniform Disposition of Unclaimed Property Act.” Miss. Code Ann. § 89-12-1
(2005). Under this act, financial property includes bonds, checks, deposits, interest, dividends, income, credit
balances, gift certificates, security deposits, refunds, credit memos, unpaid wages, amounts due and amounts payable
under the terms of insurance policies, unused airline tickets, monies deposited to redeem stocks, bonds, coupons, and
other securities. Disposition of lost items recovered by a municipality is governed by Miss. Code Ann. § 21-39-21,
which allows sale of the item four months after public notice.
How long does a person have to claim financial property held by an entity or person affected by a
disaster?
An owner of financial property must notify the holder of his or her interest within five years. This applies to
businesses, governmental agencies, or individuals who possess property and/or owe a debt obligation. Financial
property is considered abandoned after five years. However, it is advisable to claim financial property as soon as
possible after a disaster.
What steps should a person take to claim financial property?
The owner should contact the holder of funds in writing (preferably by certified mail) notifying the holder of his or
her interest, with directions for withdrawal, transfer, or other disposition.
What happens to personal property such as cars, equipment, furniture, or other items that have
been recovered by state or municipal authorities?
When a municipality receives property that has been lost, stolen, abandoned, or misplaced, it is required by law to
post a notice in three public places describing the property and to notify the owner by mail if the owner is known.
Property that is not claimed within 120 days may be sold at auction. (Or 90 days for a motor vehicle or bicycle).
Notices of the auction must be posted for 10 days in 3 public places within the municipality.