Section 1405. Accrual of interest after payment of abandoned property to the state comptroller

 1. (a) Notwithstanding any other provision of law, no
  owner  of  abandoned  property  shall be entitled to receive interest on
  account of such abandoned property from and after the date a payment  of
  such  abandoned  property  is  hereafter  made  to the state comptroller
  pursuant to this chapter or any  law  relating  to  abandoned  property,
  whether  or  not  he  was entitled to interest on such property prior to
  such date, except that interest at  the  overpayment  rate  set  by  the
  commissioner  of  taxation  and  finance  pursuant  to subsection (j) of
  section six hundred ninety-seven of the tax  law,  less  one  percentage
  point,  shall  accrue  to abandoned property hereafter paid to the state
  comptroller under the following provisions  of  this  chapter,  for  the
  first five years such property is held by him:
    (i)  paragraph (a) of subdivision one of section three hundred of this
  chapter; or
    (ii) subdivision one of section four hundred of this chapter; or
    (iii) paragraph (a) of subdivision one of section six hundred of  this
  chapter; or
    (iv) subdivision one of section ten hundred of this chapter.
    (b)  No  claimant  to  abandoned property heretofore paid to the state
  comptroller shall be entitled to receive interest  on  account  of  such
  property,  whether  or  not he was entitled to interest on such property
  prior to such payment, except that as to abandoned property paid to  the
  state  comptroller  pursuant  to  the  provisions of sub-paragraphs (i),
  (ii), (iii) and (iv) of subdivision one of this section no earlier  than
  five   years   preceding   the  first  day  of  July,  nineteen  hundred
  seventy-seven, such abandoned property shall accrue simple interest  for
  that  portion of such five year period remaining after the thirtieth day
  of June, nineteen hundred seventy-seven.
    2. (a) Notwithstanding subdivision one of this section,  any  property
  heretofore  or  hereafter  received by the state comptroller pursuant to
  this chapter or  any  law  relating  to  the  disposition  of  abandoned
  property,  which is subject to the interest crediting provisions of part
  five hundred of foreign assets control regulations,  part  five  hundred
  fifteen  of Cuban assets control regulations or part five hundred twenty
  of foreign funds control regulations of the United States department  of
  the  treasury,  shall  be credited with interest at a rate not less than
  the maximum rate payable on the shortest time deposit available  in  any
  domestic bank in this state.
    (b)  Interest  shall  be  credited  from  the  effective  date of this
  subdivision, to abandoned property subject  to  paragraph  (a)  of  this
  subdivision for so long as such property continues to be subject to part
  five  hundred  of  foreign assets control regulations, part five hundred
  fifteen of Cuban assets control regulations or part five hundred  twenty
  of  foreign funds control regulations of the United States department of
  the treasury and is held by the state comptroller.