2005 California Code of Civil Procedure Sections 1560-1567 Article 5. Administration of Unclaimed Property

1560.  (a) Upon the payment or delivery of escheated property to the
State Controller, the state shall assume custody and shall be
responsible for the safekeeping of the property.  Any person who pays
or delivers escheated property to the State Controller under this
chapter is relieved of all liability to the extent of the value of
the property so paid or delivered for any claim which then exists or
which thereafter may arise or be made in respect to the property.
Property removed from a safe deposit box or other safekeeping
repository shall be received by the State Controller subject to any
valid lien of the holder for rent and other charges, such rent and
other charges to be paid out of the proceeds remaining after the
State Controller has deducted therefrom his selling cost.
   (b) Any holder who has paid moneys to the State Controller
pursuant to this chapter may make payment to any person appearing to
such holder to be entitled thereto, and upon filing proof of such
payment and proof that the payee was entitled thereto, the State
Conroller shall forthwith reimburse the holder for the payment
without deduction of any fee or other charges.  Where reimbursement
is sought for a payment made on a negotiable instrument (including a
travelers check or money order), the holder shall be reimbursed under
this subdivision upon filing proof that the instrument was duly
presented to him and that payment was made thereon to a person who
appeared to the holder to be entitled to payment.
   (c) The holder shall be reimbursed under this section even if he
made the payment to a person whose claim against him was barred
because of the expiration of any such period of time as those
described in Section 1570.
   (d) Any holder who has delivered personal property, including a
certificate of any interest in a business association, to the State
Controller pursuant to this chapter may reclaim such personal
property if still in the possession of the State Controller without
payment of any fee or other charges upon filing proof that the owner
thereof has claimed such personal property from such holder.   The
State Controller may, in his discretion, accept an affidavit of the
holder stating the facts that entitle the holder to reimbursement
under this subdivision as sufficient proof for the purposes of this
subdivision.
1561.  (a) If the holder pays or delivers escheated property to the
State Controller in accordance with this chapter and thereafter any
person claims the property from the holder or another state claims
the property from the holder under that state's laws relating to
escheat, the State Controller shall, upon written notice of such
claim, defend the holder against the claim and indemnify him against
any liability on the claim.
   (b) If any holder, because of mistake of law or fact, pays or
delivers any property to the State Controller that has not escheated
under this chapter and thereafter claims the property from the State
Controller, the State Controller shall, if he has not disposed of the
property in accordance with this chapter, refund or redeliver the
property to the holder without deduction for any fee or other charge.
   (c) As used in this section, "escheated property" means property
which this chapter provides escheats to this state, whether or not it
is determined that another state had a superior right to escheat
such property at the time it was paid or delivered to the State
Controller or at some time thereafter.
1562.  When property other than money is delivered to the State
Controller under this chapter, any dividends, interest or other
increments realized or accruing on such property at or prior to
liquidation or conversion thereof into money, shall upon receipt be
credited to the owner's account by the State Conroller.  Except for
amounts so credited the owner is not entitled to receive income or
other increments on money or other property paid or delivered to the
State Controller under this chapter.  All interest received and other
income derived from the investment of moneys deposited in the
Unclaimed Property Fund under the provisions of this chapter shall,
on order of the State Controller, be transferred to the General Fund.
1563.  (a) Except as provided in subdivisions (b) and (c), all
escheated property delivered to the Controller under this chapter
shall be sold by the Controller to the highest bidder at public sale
in whatever city in the state affords in his or her judgment the most
favorable market for the property involved, or the Controller may
conduct the sale by electronic media, including, but not limited to,
the Internet, if in his or her judgment it is cost effective to
conduct the sale of the property involved in that manner. The
Controller may decline the highest bid and reoffer the property for
sale if he or she considers the price bid insufficient.  The
Controller need not offer any property for sale if, in his or her
opinion, the probable cost of sale exceeds the value of the property.
  Any sale of escheated property held under this section shall be
preceded by a single publication of notice thereof, at least one week
in advance of sale, in an English language newspaper of general
circulation in the county where the property is to be sold.
   (b) Securities listed on an established stock exchange within two
years following receipt by the Controller shall be sold at the
prevailing prices on that exchange.  Other securities may be sold
over the counter at prevailing prices or, with prior approval of the
California Victim Compensation and Government Claims Board, by any
other method that the Controller may determine to be advisable.
United States government savings bonds and United States war bonds
shall be presented to the United States for payment.  Subdivision (a)
does not apply to the property described in this subdivision.
   (c) (1) All escheated property consisting of military awards,
decorations, equipment, artifacts, memorabilia, documents,
photographs, films, literature, and any other item relating to the
military history of California and Californians that is delivered to
the Controller is exempt from subdivision (a) and shall be held in
trust for the Controller at the California State Military Museum and
Resource Center.  All escheated property held in trust pursuant to
this subdivision is subject to the applicable regulations of the
United States Army governing Army museum activities as described in
Section 179 of the Military and Veterans Code.  Any person claiming
an interest in the escheated property may file a claim to the
property pursuant to Article 4 (commencing with Section 1540).
   (2) The California State Military Museum and Resource Center shall
be responsible for the costs of storage and maintenance of escheated
property delivered by the Controller under this subdivision.
   (d) The purchaser at any sale conducted by the Controller pursuant
to this chapter shall receive title to the property purchased, free
from all claims of the owner or prior holder thereof and of all
persons claiming through or under them.  The Controller shall execute
all documents necessary to complete the transfer of title.
1564.  (a) All money received under this chapter, including the
proceeds from the sale of property under Section 1563, shall be
deposited in the Unclaimed Property Fund in an account titled
"Abandoned Property."
   (b) Notwithstanding Section 13340 of the Government Code, all
money in the Abandoned Property Account in the Unclaimed Property
Fund is hereby continuously appropriated to the Controller, without
regard to fiscal years, for expenditure in accordance with law in
carrying out and enforcing the provisions of this chapter, including,
but not limited to, the following purposes:
   (1) For payment of claims allowed by the Controller under the
provisions of this chapter.
   (2) For refund, to the person making such deposit, of amounts,
including overpayments, deposited in error in such fund.
   (3) For payment of the cost of appraisals incurred by the
Controller covering property held in the name of an account in such
fund.
   (4) For payment of the cost incurred by the Controller for the
purchase of lost instrument indemnity bonds, or for payment to the
person entitled thereto, for any unpaid lawful charges or costs which
arose from holding any specific property or any specific funds which
were delivered or paid to the Controller, or which arose from
complying with this chapter with respect to such property or funds.
   (5) For payment of amounts required to be paid by the state as
trustee, bailee, or successor in interest to the preceding owner.
   (6) For payment of costs incurred by the Controller for the
repair, maintenance, and upkeep of property held in the name of an
account in such fund.
   (7) For payment of costs of official advertising in connection
with the sale of property held in the name of an account in such
fund.
   (8) For transfer to the General Fund as provided in subdivision
(c).
   (9) For transfer to the Inheritance Tax Fund of the amount of any
inheritance taxes determined to be due and payable to the state by
any claimant with respect to any property claimed by him or her under
the provisions of this chapter.
   (c) At the end of each month, or more often if he or she deems it
advisable, the Controller shall transfer all money in the Abandoned
Property Account in excess of fifty thousand dollars ($50,000) to the
General Fund.  Before making this transfer, the Controller shall
record the name and last known address of each person appearing from
the holders' report to be entitled to the escheated property and the
name and last known address of each insured person or annuitant, and
with respect to each policy or contract listed in the report of a
life insurance corporation, its number, and the name of the
corporation.  The record shall be available for public inspection at
all reasonable business hours.
1565.  Any property delivered to the State Controller pursuant to
this chapter which has no apparent commercial value shall be retained
by the State Controller until such time as he determines to destroy
or otherwise dispose of it.  If the State Controller determines that
any property delivered to him pursuant to this chapter has no
apparent commercial value, he may at any time thereafter destroy or
otherwise dispose of the property, and in that event no action or
proceeding shall be brought or maintained against the state or any
officer thereof or against the holder for or on account of any action
taken by the State Controller pursuant to this chapter with respect
to the property.
1566.  (a) When payment or delivery of money or other property has
been made to any claimant under the provisions of this chapter, no
suit shall thereafter be maintained by any other claimant against the
state or any officer or employee thereof for or on account of such
property.
   (b) Except as provided in Section 1541, no suit shall be
maintained by any person against the state or any officer or employee
thereof for or on account of any transaction entered into by the
State Controller pursuant to this chapter.
1567.  The Director of Parks and Recreation may examine any tangible
personal property delivered to the Controller under this chapter for
purposes of determining whether such property would be useful under
the provisions of Section 512 of the Public Resources Code.  If the
director makes such a determination with respect to the property, the
Controller may deliver the property to the director for use in
carrying out the purposes of Section 512 of the Public Resources
Code.  Upon the termination of any such use, the director shall
return the property to the Controller.