Judge Strikes Down KY Abandoned Property Law

LOUISVILLE, Ky. (AP) -- A federal judge has ruled that Kentucky's abandonded property law is unconstitutional because the state was using the provision to raise money rather than reunite citizens with lost goods.

U.S. District Judge Danny C. Reeves ruled on Monday that the law violates the Constitution's due process clause. It marks the second time in three years the law has been struck down.

Kentucky lawmakers passed laws in 2006 and 2007 saying a traveler's check is considered abandoned after seven years, a move that shortened the waiting period from 15 years. The move allowed the state to more quickly seize checks and cash them.

American Express challeged the law both times, winning in state court in 2007.

Messages left for a spokeswoman for the Kentucky Attorney General's office and a spokeswoman for American Express were not immediately returned Monday.

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