§ 1391.Proceeds Deposited In General Fund

Once property has permanently escheated to the state, meaning no one remains entitled to claim it, converting that property into cash shouldn't change its legal character. Section 1391 directs the Controller to deliver to the Treasurer the proceeds of any sale or lease of permanently escheated property made under this chapter, and on the Controller's order, that amount goes into the General Fund rather than the Unclaimed Property Fund that non-escheated proceeds use under Section 1390.

The section then fixes the timing question that could otherwise get complicated. All money deposited in the General Fund under this section is deemed to have permanently escheated to the state as of the date the underlying property itself permanently escheated, not the later date of the sale that produced the cash. That backdating keeps the legal moment of escheat tied to the property's own history rather than to whenever the Controller happened to find a buyer.