Disposal Of Unclaimed Trust Property - Liquidation And Conservation - Financial - CA

Section § 700

If a financial company's license is being dissolved or its trust business has ended, and it has money or property that belongs to unknown or unlocatable people, the commissioner or the company can, with court approval, take certain actions. They can deliver the money to the State Treasurer or hand over other property to the State Controller for safe keeping in the State Treasury.

Whenever any licensee is being liquidated or whenever the trust business of any licensee has been discontinued and the licensee has in its possession money or other property held by it in trust or for safekeeping and the beneficiaries or persons entitled thereto are unknown or cannot be found, the commissioner or the licensee, upon obtaining approval of the superior court of the county in which the liquidation proceedings are pending or in which the head office of the licensee is situated, may do the following:

(a) In the case of money, deliver it to the Treasurer.

(b) In the case of other property, deliver it to the Controller for deposit in the State Treasury.

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Section § 701

This law states that when money or property is handed over to the Treasurer or Controller, a certified court order approving the transfer must be given to the Controller. Furthermore, if money is given to the Treasurer, the amount must be reported to the Controller. Upon receiving any money or property, the Treasurer or Controller provides a receipt. This receipt acts like a voucher for the licensee, similar to one executed by the rightful beneficiary or person entitled to it.

Upon the delivery of any money to the Treasurer or upon the delivery of any property to the Controller, a certified copy of the order of the court approving the delivery shall be given to the Controller, and upon the delivery of any money to the Treasurer a notice giving the amount delivered shall be filed with the Controller. Upon the receipt of any money or other properties, the Treasurer or the Controller, as the case may be, shall issue a receipt for the same and the receipt shall be deemed a voucher in favor of the licensee to the same extent as though executed by the beneficiary or other person entitled thereto.

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Section § 702

This section explains that any money or property given to the Treasurer or Controller is considered deposited into the State Treasury. These assets are managed under certain rules found in the Code of Civil Procedure and can be claimed or handled as specified in those rules.

All money or other property delivered to the Treasurer or Controller pursuant to this article shall be deemed to be delivered for deposit in the State Treasury under the provisions of Chapter 7 (commencing with Section 1500) of Title 10 of Part 3 of the Code of Civil Procedure and shall be subject to claim or other disposition as provided in that chapter.

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