The care and custody of all property delivered to the Treasurer or Controller pursuant to this title is assumed by the State for the benefit of those entitled thereto, and the State is responsible for the payment of all claims established thereto pursuant to law, less any lawful deductions.
§ 1361.Care and Custody of Property Assumed By State For Benefit of Those Entitled
Title 10. Unclaimed Property · Chapter 4. Management of Unclaimed Property · Article 1. General Provisions · Enacted 1708 · no amendments on record · Last verified July 29, 2026
In one sentenceSection 1361 provides that the state takes on care and custody of all property delivered to the Treasurer or Controller under this title for the benefit of the people entitled to it, and makes the state responsible for paying every properly established claim, minus any lawful deductions.
Full Text of § 1361
Plain-English Summary
Once money or property lands with the Treasurer or Controller under this title, someone has to be responsible for keeping it safe until the rightful owner shows up. Section 1361 puts that responsibility squarely on the state. The state assumes the care and custody of all such property for the benefit of the people entitled to it, not for its own use.
That custodial role comes with a matching duty. The state is responsible for paying every claim to that property once it's properly established under law, reduced only by whatever lawful deductions apply. In practice, this section sets the baseline promise underlying the entire chapter: the state holds this property as a trustee, not an owner, and the sale and disposal powers the rest of this chapter grants exist to manage that trust responsibly, not to convert the property into a state asset.
Frequently Asked Questions
Does the state own the unclaimed property it holds under this title?
No. Section 1361 states that the state assumes care and custody of the property for the benefit of those entitled to it, not as an owner in its own right.
Is the state obligated to pay claims against property it holds?
Yes. The state is responsible for paying all claims established to the property pursuant to law, less any lawful deductions.
What kind of deductions might reduce what a claimant recovers?
The section doesn't list specific deductions, but it makes clear that lawful deductions authorized elsewhere can reduce the amount ultimately paid on an established claim.
How does this section relate to the Controller's power to sell property under this chapter?
The sale and disposal powers in Articles 2 through 4 operate within this custodial duty -- the Controller manages and can convert property into proceeds, but the state remains responsible for paying claimants what they're owed.
Amendment History
Added by Stats. 1951, Ch. 1708.
Source & verification. Section text is reproduced verbatim from
the Deering's California Codes Annotated / vLex. Enacted by the California Legislature.
Last verified July 29, 2026.
· Official source
Also known as: state custody of unclaimed property californiastate liability for unclaimed property claims