SECTIONS 1600-1615 - California Statutes

CODE OF CIVIL PROCEDURE

SECTION 1600-1615

1600. It is the policy of this State:
(a) To discover property in the custody of officers, departments,
and agencies of the United States, which property is unclaimed by
owners whose addresses are known or presumed to be in this State;
(b) To provide a procedure for judicial determination of the right
of the State to receive custody of such unclaimed property; and
(c) To authorize expenditure of state funds to pay the
proportionate cost of the State in discovering such unclaimed
property and to hold the United States harmless against claims
concerning such property when delivered to the custody of the State
in accordance with this chapter.

1601. As used in this chapter:
(a) "Unclaimed property" means any tangible personal property or
intangible personal property, including choses in action in amounts
certain, and all debts owed or entrusted funds or other property held
by any federal agency or any officer or employee thereof, whether
occasioned by contract or operation of law or otherwise, except
bonuses and gratuities, which has remained unclaimed by the owner
for:
(1) Twenty years from the date of maturity or call for payment, if
arising from transactions under the public debt; or
(2) Twenty years after the last transaction concerning principal
or interest, if deposits in the postal savings system; or
(3) Five years after the property first became payable,
demandable, or returnable, if arising from any other transaction.
(b) "Owner" means any person, including his or her legal
representative, who has or had a legal or equitable interest in
unclaimed property. The owner shall be conclusively presumed to be
the person to whom unclaimed property was or is payable or returnable
according to the records of the United States Government. If two or
more persons are interested in the property, and the extent of their
respective interests is unknown, it shall be presumed that their
interests in such property are equal.
(c) "Person" includes any individual, partnership, corporation,
limited liability company, unincorporated association, or other legal
entity.

1602. The Controller is authorized to enter into agreements
establishing the time and manner for payments of this State's
proportionate share of the actual and necessary cost incurred by the
United States in examining records and reporting information to this
State as such share of such cost shall be determined pursuant to
federal law. Said agreements may provide for single payments at
stated times over a period of years. The State Controller shall make
all payments at the time and in the manner provided in said
agreements.

1603. The State hereby undertakes to hold the United States
harmless against any claim concerning property delivered to the
custody of the State in accordance with the provisions of this
chapter. In the event an action or proceeding on such claim is
brought against the United States the Attorney General shall
intervene therein. The State consents to suit by such claimant in
such contingency and any defense in favor of the United States shall
be available to and urged by the State.

1604. (a) All unclaimed intangible property, together with all
interest and other increments accruing thereto, is subject to
delivery to this state if the last known address of the owner is in
this state. If the last known address of an owner is in this state,
any other owner's address which is unknown shall be presumed to be in
this state. If the last known addresses of owners are in this state
and in one or more other states, the addresses of other owners whose
addresses are unknown shall be presumed to be within this state if
the federal agency having custody of the unclaimed property initially
acquired possession in this state. If the records of the United
States do not disclose the address of any owner of unclaimed
property, such address shall be presumed to be within this state if
the federal agency having custody of such property initially acquired
possession in this state. All addresses presumed to be within this
state are presumed to be within the County of Sacramento. For the
purposes of this chapter, it shall be presumed that the situs of
unclaimed intangible property is in this state if the last known or
presumed address of the owner is in this state.
(b) All unclaimed tangible property is subject to delivery to this
state if the federal agency having custody of the unclaimed property
initially acquired possession in this state.

1605. The Governor shall certify to the Comptroller General or
other proper officer of the United States that the law of this State
provides effective means whereby the United States shall be
compensated at reasonable times for this State's proportionate share
of the actual and necessary cost of examining records and for
reporting information and whereby the United States shall be held
harmless in the event of claim for property delivered to this State
in accordance with the provisions of this chapter.
Such certification shall be made on the thirtieth day of June next
following the effective date of any federal statute requiring such
certification.

1606. On the thirtieth day of June next following the date of
certification by the Governor, and annually thereafter, the
Controller shall request the Comptroller General or other proper
officer of the United States to report all previously unreported
information relating to unclaimed property as determined by that
officer pursuant to federal law.

1607. When a report is received from the Comptroller General or
other proper officer of the United States, the Controller shall
prepare and forward a copy thereof to the clerk of the superior court
of each county within this state and the clerk shall post a copy at
the courthouse for a period of 60 days. Any person asserting an
interest in property mentioned in the report may elect to claim
against the United States under the laws of the United States, in
which event and within 90 days following the date of initial posting
by the clerk the person shall notify the Controller of the asserted
interest and intention to so claim. The Controller shall omit the
property from any claim by the state until such time as the asserted
interest may be finally determined against the claimant. The interest
may not thereafter be asserted against the state.

1608. The expiration of any period of time specified by statute or
court order, during which an action or proceeding may be commenced or
enforced to obtain payment of a claim for funds or delivery of
property shall not affect the right of this State to acquire
possession of unclaimed property in accordance with the provisions of
this chapter.

1609. Within 120 days following the date of initial posting by the
clerk of the superior court, the Attorney General shall commence a
proceeding by filing a petition to determine the state's right to
custody of all property mentioned in such report and unclaimed within
the time and in the manner provided by Section 1607. The proceeding
shall be commenced and heard in the superior court in the County of
Sacramento and venue shall not be affected by the provisions of
Section 401, Code of Civil Procedure.
The petition shall name as respondents all persons known to have
been interested and "all persons unknown claiming any title or
interest in or to the property described or referred to in the
petition." If the records of the United States fail to disclose with
reasonable certainty the identity or number of owners or claimants of
specific funds or other personal property, or the extent of their
interests therein, such persons may be designated and described as a
class, to wit, as "all unknown owners or claimants to the funds or
property mentioned in or affected by ____," and, as the case may be,
the petition shall identify and set forth the court actions or
proceedings to the credit of which such funds or other property are
held, or the accounts or other identifying references under which
they are carried upon the records of the United States. The petition
shall describe or refer to the property, and may include one or more
items, as the Attorney General may be advised, without prejudice to
his right to commence subsequent proceedings relating to other items
not included. The petition shall also state the name of the owner and
his last address as known or as presumed under this chapter, and
shall set forth the facts and circumstances by virtue of which it is
claimed that such funds or property are subject to custody by the
state. Any number of respondents may be joined whether they reside in
the same or different counties, and any number of causes of action
may be joined and need not be separately stated.

1610. No summons or other process shall issue to direct the
appearance and answer of a respondent. Commencing within five days
after filing petition, notice of the proceeding shall be published
once each week for three consecutive weeks in a newspaper of general
circulation published within the County of Sacramento. At the time
the notice is first published, a copy of the petition and notice
shall be posted at the courthouse in the county where each defendant
was last known or presumed to have had an address. Such petition and
such notice shall remain posted for 45 days. The notice of proceeding
shall advise that the State seeks custody of unclaimed property held
by the United States. The names but not the addresses of the
respondents shall be contained in the notice with a statement that
such persons are believed to live or to have lived within the State
and are believed to be or to have been owners of the unclaimed
property. The notice shall not contain a description of the unclaimed
property but shall advise that such description together with the
last known or presumed addresses of owners may be determined by
examining the petition filed in the proceeding. The petition and its
place of filing shall be sufficiently identified and described. The
notice shall advise that persons claiming an interest must answer the
petition within the time prescribed by law, which time shall be
stated, if they elect to pursue their claims against the United
States, otherwise their rights to property shall be preserved subject
to delayed delivery as provided by law. The notice shall advise that
Section 1611, Code of Civil Procedure, should be consulted for the
time, form, and costs of an answer.
The notice shall be deemed completed 45 days after the date of
first publication, whereupon the court shall have full and complete
jurisdiction over the property described in the petition and not
claimed within the time or in the manner provided in Section 1611,
and shall have full and complete jurisdiction to determine the right
of the State to custody and to render an appropriate judgment
therefor.

1611. Any person, whether or not named in the petition, may within
15 days after completion of notice respond to the petition by answer
describing the property, asserting an interest as owner or successor,
and declaring an intention to claim the same from the United States
under the laws of the United States. Such answer shall not be filed
unless accompanied by the sum of ten dollars ($10) for deposit in
court, and no other answer or response shall be filed by or on behalf
of a claimant. The court shall strike from the petition and dismiss
from the proceeding all property described in the answer. The funds
on deposit shall be transmitted by the court to the Controller and
shall be received for deposit in the abandoned property account in
the Unclaimed Property Fund as total reimbursement for costs and
services expended on behalf of the claimant. Such dismissal shall be
without prejudice to a subsequent petition should it appear that the
claimant is not entitled to the property, and the interest asserted
in said answer shall not thereafter be asserted against the State.

1612. Within 20 days following expiration of time for filing answer
under Section 1611, the Attorney General shall apply to the court
for a judgment relating to all property set forth in the petition and
not claimed by answer. The court shall find that such property
appears to be or to have been owned by persons residing within this
State and remains unclaimed by such persons. The court shall declare
that the property, which shall be described, is subject to custody of
the State and shall be delivered to and received by the State of
California to be retained until such time as it may be claimed
pursuant to law.

1613. The Controller shall request delivery or payment of all
unclaimed property described in the judgment declaring the right of
the State to receive custody of such property. The request shall be
accompanied by a certified copy of said judgment and shall be
directed to such officer, agency, or department of the United States
as may be designated for such purposes by federal law. The Controller
shall furnish receipts for all property delivered or paid.

1614. Property received under this chapter shall be deposited or
sold by the State Controller as though received under Chapter 7
(commencing with Section 1500) of this title. Property received under
this chapter shall not be subject to claim within two years
following the date upon which it is paid to or received by the state.
Thereafter, claims shall be made in the manner provided in Chapter 7
(commencing with Section 1500) of this title.

1615. All money in the abandoned property account in the Unclaimed
Property Fund is hereby continuously appropriated to the State
Controller without regard to fiscal years, for expenditure in
accordance with this chapter for the following purposes:
(a) For payment of the proportionate costs of this State pursuant
to the terms of any contract entered with the United States;
(b) For payment of sums necessary to indemnify the United States
for losses occasioned by claims to property delivered to the custody
of this State.