2005 California Code of Civil Procedure Sections 1510-1528 Article 2. Escheat of Unclaimed Personal Property

1510.  Unless otherwise provided by statute of this state,
intangible personal property escheats to this state under this
chapter if the conditions for escheat stated in Sections 1513 through
1521 exist, and if:
   (a) The last known address, as shown on the records of the holder,
of the apparent owner is in this state.
   (b) No address of the apparent owner appears on the records of the
holder and:
   (1) The last known address of the apparent owner is in this state;
or
   (2) The holder is domiciled in this state and has not previously
paid the property to the state of the last known address of the
apparent owner; or
   (3) The holder is a government or governmental subdivision or
agency of this state and has not previously paid the property to the
state of the last known address of the apparent owner.
   (c) The last known address, as shown on the records of the holder,
of the apparent owner is in a state that does not provide by law for
the escheat of such property and the holder is (1) domiciled in this
state or (2) a government or governmental subdivision or agency of
this state.
   (d) The last known address, as shown on the records of the holder,
of the apparent owner is in a foreign nation and the holder is (1)
domiciled in this state or (2) a government or governmental
subdivision or agency of this state.
1511.  (a) Any sum payable on a money order, travelers check, or
other similar written instrument (other than a third-party bank
check) on which a business association is directly liable escheats to
this state under this chapter if the conditions for escheat stated
in Section 1513 exist and if:
   (1) The books and records of such business association show that
such money order, travelers check, or similar written instrument was
purchased in this state;
   (2) The business association has its principal place of business
in this state and the books and records of the business association
do not show the state in which such money order, travelers check, or
similar written instrument was purchased; or
   (3) The business association has its principal place of business
in this state, the books and records of the business association show
the state in which such money order, travelers check, or similar
written instrument was purchased, and the laws of the state of
purchase do not provide for the escheat of the sum payable on such
instrument.
   (b) Notwithstanding any other provision of this chapter, this
section applies to sums payable on money orders, travelers checks,
and similar written instruments deemed abandoned on or after February
1, 1965, except to the extent that such sums have been paid over to
a state prior to January 1, 1974.  For the purposes of this
subdivision, the words "deemed abandoned" have the same meaning as
those words have as used in Section 604 of Public Law Number 93-495
(October 28, 1974), 88th Statutes at Large 1500.
1513.  Subject to Sections 1510 and 1511, the following property
held or owing by a business association escheats to this state:
   (a) Except as provided in subdivision (f), any demand, savings, or
matured time deposit, or account subject to a negotiable order of
withdrawal, made with a banking organization, together with any
interest or dividends thereon, excluding, from demand deposits and
accounts subject to a negotiable order of withdrawal only, any
reasonable service charges that may lawfully be withheld and that do
not (where made in this state) exceed those set forth in schedules
filed by the banking organization from time to time with the
Controller, when the owner, for more than three years, has not done
any of the following:
   (1) Increased or decreased the amount of the deposit, cashed an
interest check, or presented the passbook or other similar evidence
of the deposit for the crediting of interest.
   (2) Corresponded electronically or in writing with the banking
organization concerning the deposit.
   (3) Otherwise indicated an interest in the deposit as evidenced by
a memorandum or other record on file with the banking organization.
   A deposit or account shall not, however, escheat to the state if,
during the previous three years, the owner has owned another deposit
or account with the banking organization and, with respect to that
deposit or account, the owner has done any of the acts described in
paragraph (1), (2), or (3), and the banking organization has
communicated electronically or in writing with the owner, at the
address to which communications regarding that deposit or account are
regularly sent, with regard to the deposit or account that would
otherwise escheat under this subdivision.  For purposes of this
subdivision, "communications" means account statements or statements
of interest paid for federal and state income tax purposes.
   No banking organization may discontinue any interest or dividends
on any savings deposit because of the inactivity contemplated by this
section.
   (b) Except as provided in subdivision (f), any demand, savings, or
matured time deposit, or matured investment certificate, or account
subject to a negotiable order of withdrawal, or other interest in a
financial organization or any deposit made therewith, and any
interest or dividends thereon, excluding, from demand deposits and
accounts subject to a negotiable order of withdrawal only, any
reasonable service charges that may lawfully be withheld and that do
not (where made in this state) exceed those set forth in schedules
filed by the financial organization from time to time with the
Controller, when the owner, for more than three years, has not done
any of the following:
   (1) Increased or decreased the amount of the funds or deposit,
cashed an interest check, or presented an appropriate record for the
crediting of interest or dividends.
   (2) Corresponded electronically or in writing with the financial
organization concerning the funds or deposit.
   (3) Otherwise indicated an interest in the funds or deposit as
evidenced by a memorandum or other record on file with the financial
organization.
   A deposit or account shall not, however, escheat to the state if,
during the previous three years, the owner has owned another deposit
or account with the financial organization and, with respect to that
deposit or account, the owner has done any of the acts described in
paragraph (1), (2), or (3), and the financial organization has
communicated electronically or in writing with the owner, at the
address to which communications regarding that deposit or account are
regularly sent, with regard to the deposit or account that would
otherwise escheat under this subdivision.  For purposes of this
subdivision, "communications" means account statements or statements
of interest paid for federal and state income tax purposes.
   No financial organization may discontinue any interest or
dividends on any funds paid toward purchase of shares or other
interest, or on any deposit, because of the inactivity contemplated
by this section.
   (c) Any sum payable on a traveler's check issued by a business
association that has been outstanding for more than 15 years from the
date of its issuance, when the owner, for more than 15 years, has
not corresponded in writing with the business association concerning
it, or otherwise indicated an interest as evidenced by a memorandum
or other record on file with the association.
   (d) Any sum payable on any other written instrument on which a
banking or financial organization is directly liable, including, by
way of illustration but not of limitation, any draft or certified
check, that has been outstanding for more than three years from the
date it was payable, or from the date of its issuance if payable on
demand, when the owner, for more than three years, has not
corresponded electronically or in writing with the banking or
financial organization concerning it, or otherwise indicated an
interest as evidenced by a memorandum or other record on file with
the banking or financial organization.
   (e) Any sum payable on a money order issued by a business
association (including a banking or financial organization), that has
been outstanding for more than seven years from the date it was
payable, or from the date of its issuance if payable on demand,
excluding any reasonable service charges that may lawfully be
withheld and that do not, when made in this state, exceed those set
forth in schedules filed by the business association from time to
time with the Controller, when the owner, for more than seven years,
has not corresponded electronically or in writing with the business
association, banking, or financial organization concerning it, or
otherwise indicated an interest as evidenced by a memorandum or other
record on file with the business association.  For the purposes of
this subdivision, "reasonable service charge" means a service charge
that meets all of the following requirements:
   (1) It is uniformly applied to all of the issuer's money orders.
   (2) It is clearly disclosed to the purchaser at the time of
purchase and to the recipient of the money order.
   (3) It does not begin to accrue until three years after the
purchase date, and it stops accruing after the value of the money
order escheats.
   (4) It is permitted by contract between the issuer and the
purchaser.
   (5) It does not exceed 25 cents ($0.25) per month or the aggregate
amount of twenty-one dollars ($21).
   (f) Any funds held by a business association in an individual
retirement account or under a retirement plan for self-employed
individuals or similar account or plan established pursuant to the
internal revenue laws of the United States or of this state, when the
owner, for more than three years after the funds become payable or
distributable, has not done any of the following:
   (1) Increased or decreased the principal.
   (2) Accepted payment of principal or income.
   (3) Corresponded electronically or in writing concerning the
property or otherwise indicated an interest.
   These funds are not payable or distributable within the meaning of
this subdivision unless, under the terms of the account or plan,
distribution of all or a part of the funds would then be mandatory.
   (g) Any wages or salaries that have remained unclaimed by the
owner for more than one year after the wages or salaries become
payable.
   (h) For purposes of this section "service charges" means service
charges imposed because of the inactivity contemplated by this
section.
1513.5.  (a) Except as provided in subdivision (c), if the holder
has in its records an address for the apparent owner, which the
holder's records do not disclose to be inaccurate, every banking or
financial organization shall make reasonable efforts to notify by
mail any customer that the customer's deposit, account, shares, or
other interest in the banking or financial organization will escheat
to the state pursuant to subdivision (a) or (b) of Section 1513.  The
holder shall give notice either:
   (1) Not less than two years nor more than two and one-half years
after the date of last activity by, or communication with, the owner
with respect to the account, deposit, shares, or other interest, as
shown on the record of the financial organization.
   (2) Not less than six nor more than 12 months before the time the
account, deposit, shares, or other interest becomes reportable to the
Controller in accordance with this chapter.
   (b) The notice required by this section shall specify the time
that the deposit, account, shares, or other interest will escheat and
the effects of escheat, including the necessity for filing a claim
for the return of the deposit, account, shares, or other interest.
The notice required by this section shall, in bold or in a font a
minimum of two points larger than the rest of the notice, (1) specify
that since the date of last activity, or for the last two years,
there has been no customer activity on the deposit, account, shares,
or other interest; (2) identify the deposit, account, shares, or
other interest by number or identifier; (3) indicate that the
deposit, account, shares, or other interest is in danger of
escheating to the state; and (4) specify that the California
Unclaimed Property Law requires banks, banking organizations, and
financial organizations to transfer funds of a deposit, account,
shares, or other interest if it has been inactive for three years.
It shall also include a form, as prescribed by the Controller, by
which the customer may declare an intention to maintain the deposit,
account, shares, or other interest.  If that form is filled out,
signed by the customer, and returned to the banking or financial
organization, it shall satisfy the requirement of paragraph (3) of
subdivision (a) or paragraph (3) of subdivision (b) of Section 1513.
The banking or financial organization may impose a service charge on
the deposit, account, shares, or other interest for this notice in
an amount not to exceed the administrative cost of mailing the notice
and form and in no case to exceed two dollars ($2).
   (c) Notice as provided by subdivisions (a) and (b) shall not be
required for deposits, accounts, shares, or other interests of less
than fifty dollars ($50), and no service charge may be made for
notice on these items.
1514.  The contents of any safe deposit box or any other safekeeping
repository, held in this state by a business association, escheat to
this state if unclaimed by the owner for more than three years from
the date on which the lease or rental period on the box or other
repository expired, or from the date of termination of any agreement
because of which the box or other repository was furnished  to the
owner without cost, whichever last occurs.
1515.  (a) Subject to Section 1510, funds held or owing by a life
insurance corporation under any life or endowment insurance policy or
annuity contract which has matured or terminated escheat to this
state if unclaimed and unpaid for more than three years after the
funds became due and payable as established from the records of the
corporation.
   (b) If a person other than the insured or annuitant is entitled to
the funds and no address of that person is known to the corporation
or if it is not definite and certain from the records of the
corporation what person is entitled to the funds, it is presumed that
the last known address of the person entitled to the funds is the
same as the last known address of the insured or annuitant according
to the records of the corporation.  This presumption is a presumption
affecting the burden of proof.
   (c) A life insurance policy not matured by actual proof of the
death of the insured according to the records of the corporation is
deemed to be matured and the proceeds due and payable if:
   (1) The insured has attained, or would have attained if he or she
were living, the limiting age under the mortality table on which the
reserve is based.
   (2) The policy was in force at the time the insured attained, or
would have attained, the limiting age specified in paragraph (1).
   (3) Neither the insured nor any other person appearing to have an
interest in the policy has, within the preceding three years,
according to the records of the corporation (i) assigned, readjusted,
or paid premiums on the policy, (ii) subjected the policy to loan,
or (iii) corresponded in writing with the life insurance corporation
concerning the policy.
   (d) Any funds otherwise payable according to the records of the
corporation are deemed due and payable although the policy or
contract has not been surrendered as required.
1515.5.  Property distributable in the course of a demutualization
or related reorganization of an insurance company is deemed abandoned
as follows:
   (a) On the date of the demutualization or reorganization, if the
instruments or statements reflecting the distribution are not mailed
to the owner because the address on the books and records for the
holder is known to be incorrect.
   (b) Two years after the date of the demutualization or
reorganization, if instruments or statements reflecting the
distribution are mailed to the owner and returned by the post office
as undeliverable and the owner has done neither of the following:
   (1) Communicated in writing with the holder or its agent regarding
the property.
   (2) Otherwise communicated with the holder or its agent regarding
the property as evidenced by a memorandum or other record on file
with the holder or its agent.
   (c) Three years after the date of the demutualization or
reorganization, if instruments or statements reflecting the
distribution are mailed to the owner and not returned by the post
office as undeliverable and the owner has done neither of the
following:
   (1) Communicated in writing with the holder or its agent regarding
the property.
   (2) Otherwise communicated with the holder or its agent regarding
the property as evidenced by a memorandum or other record on file
with the holder or its agent.
1516.  (a) Subject to Section 1510, any dividend, profit,
distribution, interest, payment on principal, or other sum held or
owing by a business association for or to its shareholder,
certificate holder, member, bondholder, or other security holder, or
a participating patron of a cooperative, who has not claimed it, or
corresponded in writing with the business association concerning it,
within three years after the date prescribed for payment or delivery,
escheats to this state.
   (b) Subject to Section 1510, any intangible interest in a business
association, as evidenced by the stock records or membership records
of the association, escheats to this state if (1) the interest in
the association is owned by a person who for more than three years
has neither claimed a dividend or other sum referred to in
subdivision (a) nor corresponded in writing with the association or
otherwise indicated an interest as evidenced by a memorandum or other
record on file with the association, and (2) the association does
not know the location of the owner at the end of the three-year
period.  With respect to the interest, the business association shall
be deemed the holder.
   (c) Subject to Section 1510, any dividends or other distributions
held for or owing to a person at the time the stock or other security
to which they attach escheats to this state also escheat to this
state as of the same time.
   (d) With respect to any interest that may escheat pursuant to
subdivision (b), the business association shall make reasonable
efforts to notify the owner by mail that the owner's interest in the
business association will escheat to the state.  The notice shall be
given not less than 6 nor more than 12 months before the time the
interest in the business association becomes reportable to the
Controller in accordance with this chapter.  The notice required by
this subdivision shall specify the time that the interest will
escheat and the effects of escheat, including the necessity for
filing a claim for the return of the interest.  The notice required
by this section shall, in bold or in a font a minimum of two points
larger than the rest of the notice, (1) specify that since the date
of last activity, or for the last two years, there has been no
customer activity on the deposit, account, shares, or other interest;
(2) identify the deposit, account, shares, or other interest by
number or identifier; (3) indicate that the deposit, account, shares,
or other interest is in danger of escheating to the state; and (4)
specify that the California Unclaimed Property Law requires banks,
banking organizations, and financial organizations to transfer funds
of a deposit, account, shares, or other interest if it has been
inactive for three years.  It shall also include a form, as
prescribed by the Controller, by which the owner may confirm the
owner's current address.  If that form is filled out, signed by the
owner, and returned to the holder, it shall be deemed that the
business association knows the location of the owner.
1517.  (a) All property distributable in the course of a voluntary
or involuntary dissolution or liquidation of a business association
that is unclaimed by the owner within six months after the date of
final distribution or liquidation escheats to this state.
   (b) All property distributable in the course of voluntary or
involuntary dissolution or liquidation of an insurer or other person
brought under Article 14 (commencing with Section 1010) of Chapter 1
of Part 2 of Division 1 of the Insurance Code, that is unclaimed by
the owner after six months of the date of final distribution, shall
be transferred to the Department of Insurance, with any proceeds of
sale of property and other funds to be deposited in the Insurance
Fund for expenditure as provided in Section 12937 of the Insurance
Code.
   (c) This section applies to all tangible personal property located
in this state and, subject to Section 1510, to all intangible
personal property.
1518.  (a) All tangible personal property located in this state and,
subject to Section 1510, all intangible personal property, and the
income or increment on such tangible or intangible property, held in
a fiduciary capacity for the benefit of another person escheats to
this state if after it becomes payable or distributable, the owner
has not, within a period of three years, increased or decreased the
principal, accepted payment of principal or income, corresponded in
writing concerning the property, or otherwise indicated an interest
as evidenced by a memorandum or other record on file with the
fiduciary.
   (b) Funds in an individual retirement account or a retirement plan
for self-employed individuals or similar account or plan established
pursuant to the internal revenue laws of the United States or of
this state are not payable or distributable within the meaning of
subdivision (a) unless, under the terms of the account or plan,
distribution of all or part of the funds would then be mandatory.
   (c) For the purpose of this section, when a person holds property
as an agent  for a business association, he or she is deemed to hold
the property in a fiduciary capacity for the business association
alone, unless the agreement between him or her and the business
association clearly provides the contrary. For the purposes of this
chapter, if a person holds property in a fiduciary capacity for a
business association alone, he or she is the holder of the property
only insofar as the interest of the business association in the
property is concerned and the association is deemed to be the holder
of the property insofar as the interest of any other person in the
property is concerned.
1519.  All tangible personal property located in this state, and,
subject to Section 1510, all intangible personal property, held for
the owner by any government or governmental subdivision or agency,
that has remained unclaimed by the owner for more than three years
escheats to this state.
1519.5.  Subject to Section 1510, any sums held by a business
association that have been ordered to be refunded by a court or an
administrative agency including, but not limited to, the Public
Utilities Commission, which have remained unclaimed by the owner for
more than one year after becoming payable in accordance with the
final determination or order providing for the refund, whether or not
the final determination or order requires any person entitled to a
refund to make a claim for it, escheats to this state.
   It is the intent of the Legislature that the provisions of this
section shall apply retroactively to all funds held by business
associations on or after January 1, 1977, and which remain
undistributed by the business association as of the effective date of
this act.
   Further, it is the intent of the Legislature that nothing in this
section shall be construed to change the authority of a court or
administrative agency to order equitable remedies.
1520.  (a) All tangible personal property located in this state and,
subject to Section 1510, all intangible personal property, except
property of the classes mentioned in Sections 1511, 1513, 1514, 1515,
1515.5, 1516, 1517, 1518, 1519, and 1521, including any income or
increment thereon and deducting any lawful charges, that is held or
owing in the ordinary course of the holder's business and has
remained unclaimed by the owner for more than three years after it
became payable or distributable escheats to this state.
   (b) Except as provided in subdivision (a) of Section 1513.5 and
subdivision (d) of Section 1516, if the holder has in its records an
address for the apparent owner of property valued at fifty dollars
($50) or more, which the holder's records do not disclose to be
inaccurate, the holder shall make reasonable efforts to notify the
owner by mail that the owner's property will escheat to the state
pursuant to this chapter.  The notice shall be mailed not less than
six nor more than 12 months before the time when the owner's property
held by the business becomes transferable to the Controller in
accordance with this chapter.  The notice required by this
subdivision shall specify the time when the property will escheat and
the effects of escheat, including the need to file a claim in order
for the owner's property to be returned to the owner.  The notice
required by this section shall, in bold or in a font a minimum of two
points larger than the rest of the notice, (1) specify that since
the date of last activity, or for the last two years, there has been
no customer activity on the deposit, account, shares, or other
interest; (2) identify the deposit, account, shares, or other
interest by number or identifier; (3) indicate that the deposit,
account, shares, or other interest is in danger of escheating to the
state; and (4) specify that the California Unclaimed Property Law
requires banks, banking organizations, and financial organizations to
transfer funds of a deposit, account, shares, or other interest if
it has been inactive for three years.  It shall also include a form,
as prescribed by the Controller, by which the owner may confirm the
owner's current address.  If that form is filled out, signed by the
owner, and returned to the holder, it shall be deemed that the
account, or other device in which the owner's property is being held,
remains currently active and recommences the escheat period.
   (c) For purposes of this section, "lawful charges" means charges
which are specifically authorized by statute, other than the
Unclaimed Property Law, or by a valid, enforceable contract.
1520.5.  Section 1520 does not apply to gift certificates subject to
Title 1.4A (commencing with Section 1749.45) of Part 4 of Division 3
of the Civil Code.  However, Section 1520  applies to any gift
certificate  that has an expiration date and that is given in
exchange for money or any other thing of value.
1521.  (a) Except as provided in subdivision (b), and subject to
Section 1510, all employee benefit plan distributions and any income
or other increment thereon escheats to the state if the owner has
not, within three years after it becomes payable or distributable,
accepted the distribution, corresponded in writing  concerning the
distribution, or otherwise indicated an interest as evidenced by a
memorandum or other record on file with the fiduciary of the trust or
custodial fund or administrator of the plan under which the trust or
fund is established.  As used in this section, "fiduciary" means any
person exercising any power, authority, or responsibility of
management or disposition with respect to any money or other property
of a retirement system or plan, and "administrator" means the person
specifically so designated by the plan, trust agreement, contract,
or other instrument under which the retirement system or plan is
operated, or if none is designated, the employer.
   (b) Except as provided in subdivision (c), an employee benefit
plan distribution and any income or other increment thereon shall not
escheat to this state if, at the time the distribution shall become
payable to a participant in an employee benefit plan, the plan
contains a provision for forfeiture or expressly authorizes the
administrator to declare a forfeiture of a distribution to a
beneficiary thereof who cannot be found after a period of time
specified in the plan, and the trust or fund established under the
plan has not terminated prior to the date on which the distribution
would become forfeitable in accordance with the provision.
   (c) A participant entitled to an employee benefit plan
distribution in the form of residuals shall be relieved from a
forfeiture declared under subdivision (b) upon the making of a claim
therefor.
1522.  No service, handling, maintenance or other charge or fee of
any kind which is imposed because of the inactive or unclaimed status
contemplated by this chapter, may be deducted or withheld from any
property subject to escheat under this chapter, unless specifically
permitted by this chapter.
   Even when specifically permitted by this chapter, such charges or
fees may not be excluded, withheld or deducted from property subject
to this chapter if, under its policy or procedure, the holder would
not have excluded, withheld or deducted such charges or fees in the
event the property had been claimed by the owner prior to being
reported or remitted to the Controller.
1523.  If an insurer, after a good faith effort to locate and
deliver to a policyholder a Proposition 103 rebate ordered or
negotiated pursuant to Section 1861.01 of the Insurance Code,
determines that a policyholder cannot be located, all funds
attributable to that rebate escheat to the state and shall be
delivered to the Controller.  The funds subject to escheat on or
after July 1, 1997, shall be transferred by the Controller to the
Department of Insurance for deposit in the Insurance Fund in the
following amounts and for the following purposes:
   (a) Up to the amount that will repay principal and interest on the
General Fund loan authorized by Item 0845-001-0001 of the Budget Act
of 1996 for expenditure as provided in Section 12936 of the
Insurance Code.
   (b) The sum of four million dollars ($4,000,000) for expenditure
during the 1998-1999 fiscal year as provided in Section 12967 of the
Insurance Code.
1528.  This chapter does not apply to unclaimed funds held by a life
insurance corporation which is organized or admitted as a domestic
fraternal benefit society under Chapter 10 (commencing with Section
10970) of Part 2 of Division 2 of the Insurance Code, so long as such
funds are used for scholarship funds, exclusive of costs of
administration thereof.