§ 12659 Unclaimed Property Deposits

This law says if a company can't find someone to give them money or property they're owed, or if there's a fight over who gets it, the company can give it to the state to hold onto until the right person claims it.

Key Takeaways

•If a company can't find someone they owe money to, they can give it to the state to hold.
•The state will keep the money safe until the right person shows up to claim it.
•The person who is owed must prove it's theirs to get the money back.

Example

A small business closes and owes money to an old employee, but they moved away and no one can find them.

The business can give the money to the state instead of keeping it. If the employee ever comes back, they can prove it's theirs and get the money from the state.

(a) If any members, creditors, or other persons are unknown or fail or refuse to accept their payment or distribution in cash or property or their whereabouts cannot be ascertained after diligent inquiry, or the existence or amount of a claim of a creditor, member, or other person is contingent, contested, or not determined, or if the ownership of any memberships is in dispute, the corporation may deposit any such payment, distribution, or the maximum amount of the claim with the Controller in trust for the benefit of those lawfully entitled to the payment, distribution, or the amount of the claim. The payment or distribution shall be paid over by the depositary to the lawful owners, their representatives or assigns, upon satisfactory proof of title. (b)For the purpose of providing for the transmittal, receipt, accounting for, claiming, management, and investment of all money or other property deposited with the Controller under subdivision (a), the money or other property shall be deemed to be paid or delivered for deposit with the Controller under Chapter 7 (commencing with Section 1500) of Title 10 of Part 3 of the Code of Civil Procedure, and may be recovered in the manner prescribed in that chapter. (Amended by Stats. 1996, Ch. 860, Sec. 4. Effective January 1, 1997.)

Key Takeaways

•If a company can't find someone they owe money to, they can give it to the state to hold.
•The state will keep the money safe until the right person shows up to claim it.
•The person who is owed must prove it's theirs to get the money back.

Example

A small business closes and owes money to an old employee, but they moved away and no one can find them.

The business can give the money to the state instead of keeping it. If the employee ever comes back, they can prove it's theirs and get the money from the state.

Key Takeaways

Example

Key Terms

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§ 12659 Unclaimed Property Deposits

Key Takeaways

Example

Key Terms

References

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References