SECTIONS 1560-1567 - California Statutes

CODE OF CIVIL PROCEDURE

SECTION 1560-1567

1560. (a) Upon the payment or delivery of escheated property to the
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 Controller under this chapter and who,
prior to escheat, if the person's records contain an address for the
apparent owner, which the holder's records do not disclose to be
inaccurate, has made reasonable efforts to notify the owner by mail
or, if the owner has consented to electronic notice, electronically,
in substantial compliance with Sections 1513.5, 1514, 1516, and 1520,
that the owner's property, deposit, account, shares, or other
interest will escheat to the state, 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 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 Controller has deducted therefrom his or her 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 Controller
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 traveler's
check or money order), the holder shall be reimbursed under this
subdivision upon filing proof that the instrument was duly presented
to him or her 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
Controller pursuant to this chapter may reclaim such personal
property if still in the possession of the 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 Controller
may, in his or her 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. However, no
sale shall be made pursuant to this subdivision until 18 months
after the final date for filing the report required by Section 1530.
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 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. These securities shall be sold by the Controller no sooner
than 18 months, but no later than 20 months, after the final date
for filing the report required by Section 1530. If securities
delivered to the Controller by a holder of the securities remain in
the custody of the Controller, a person making a valid claim for
those securities under this chapter shall be entitled to receive the
securities from the Controller. If the securities have been sold, the
person shall be entitled to receive the net proceeds received by the
Controller from the sale of the securities. 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 that has no apparent commercial value shall be retained
by the Controller for a period of not less than 18 months from the
date the property is delivered to the Controller. If the Controller
determines that any property delivered to him or her pursuant to this
chapter has no apparent commercial value, he or she 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 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.