§ 1513.5.Notice By Banking Or Financial Organization that Deposit, Account, Shares, Etc. May Escheat to State
Title 10. Unclaimed Property · Chapter 7. Unclaimed Property Law · Article 2. Escheat of Unclaimed Personal Property · Last amended 2014 · Last verified July 29, 2026
In one sentenceSection 1513.5 requires a banking or financial organization to mail or electronically notify an owner, roughly two to two-and-a-half years after the account went dormant or six to twelve months before it becomes reportable, that a deposit or account covered by Section 1513 is at risk of escheating, using specific warning language and a response form, unless the balance is under fifty dollars.
(a)Except as provided in subdivision (c), if the holder has in its records an address for the apparent owner, which the holder's records do not disclose to be inaccurate, every banking or financial organization shall make reasonable efforts to notify any owner by mail or, if the owner has consented to electronic notice, electronically, that the owner's deposit, account, shares, or other interest in the banking or financial organization will escheat to the state pursuant to clause (i), (ii), or (iii) of subparagraph (A) of paragraph
(1), (2), or (6) of subdivision (a) of Section 1513. The holder shall give notice either:
(1)Not less than two years nor more than two and one-half years after the date of last activity by, or communication with, the owner with respect to the account, deposit, shares, or other interest, as shown on the record of the banking or financial organization.
(2)Not less than 6 nor more than 12 months before the time the account, deposit, shares, or other interest becomes reportable to the Controller in accordance with this chapter.
(b)The notice required by this section shall specify the time that the deposit, account, shares, or other interest will escheat and the effects of escheat, including the necessity for filing a claim for the return of the deposit, account, shares, or other interest. The face of the notice shall contain a heading at the top that reads as follows: "THE STATE OF CALIFORNIA REQUIRES US TO NOTIFY YOU THAT YOUR UNCLAIMED PROPERTY MAY BE TRANSFERRED TO THE STATE IF YOU DO NOT CONTACT US," or substantially similar language. The notice required by this section shall, in boldface type or in a font a minimum of two points larger than the rest of the notice, exclusive of the heading, (1) specify that since the date of last activity, or for the last two years, there has been no owner activity on the deposit, account, shares, or other interest; (2) identify the deposit, account, shares, or other interest by number or identifier, which need not exceed four digits; (3) indicate that the deposit, account, shares, or other interest is in danger of escheating to the state; and (4) specify that the Unclaimed Property Law requires banking and financial organizations to transfer funds of a deposit, account, shares, or other interest if it has been inactive for three years. It shall also include a form, as prescribed by the Controller, by which the owner may declare an intention to maintain the deposit, account, shares, or other interest. If that form is filled out, signed by the owner, and returned to the banking or financial organization, it shall satisfy the requirement of clause (iii) of subparagraph (A) of paragraph (1), clause (iii) of subparagraph (A) of paragraph (2), or clause (iii) of subparagraph (A) of paragraph (6) of subdivision (a) of Section 1513. In lieu of returning the form, the banking or financial organization may provide a telephone number or other electronic means to enable the owner to contact that organization. The contact, as evidenced by a memorandum or other record on file with the banking or financial organization, shall satisfy the requirement of clause (iii) of subparagraph (A) of paragraph (1), clause (iii) of subparagraph (A) of paragraph (2), or clause (iii) of subparagraph (A) of paragraph (6) of subdivision (a) of Section 1513. If the deposit, account, shares, or other interest has a value greater than two dollars ($2), the banking or financial organization may impose a service charge on the deposit, account, shares, or other interest for this notice in an amount not to exceed the administrative cost of mailing or electronically sending the notice and form and in no case to exceed two dollars ($2).
(c)Notice as provided by subdivisions (a) and (b) shall not be required for deposits, accounts, shares, or other interests of less than fifty dollars ($50), and, except as provided in subdivision (b), no service charge may be made for notice on these items.
(d)In addition to the notices required pursuant to subdivision (a), the holder may give additional notice as described in subdivision (b) at any time between the date of last activity by, or communication with, the owner and the date the holder transfers the deposit, account, shares, or other interest to the Controller.
(e)At the time a new account is opened with a banking or financial organization, the organization shall provide a written notice to the person opening the account informing the person that his or her property may be transferred to the appropriate state if no activity occurs in the account within the time period specified by state law. If the person opening the account has consented to electronic notice, that notice may be provided electronically.
Plain-English Summary
Section 1513 sets the dormancy clock, and Section 1513.5 makes sure the owner gets a warning before that clock runs out. If the holder has an address on file for the apparent owner that its records do not show to be inaccurate, the institution must make reasonable efforts to notify the owner, by mail or, if the owner consented, electronically, that the account will escheat. That notice has to go out either two to two-and-a-half years after the last activity on the account, or six to twelve months before the account becomes reportable to the Controller, whichever timing the institution chooses to follow.
The section is specific about what the notice has to say. It needs a prominent heading warning that California requires the notification, boldface or larger-type language explaining the inactivity and the risk of escheat, and a form the owner can sign and return to keep the account active, or a phone number or electronic alternative that serves the same purpose. Accounts under fifty dollars are exempt from this notice requirement entirely, and where notice is required, the institution's own service charge for sending it cannot exceed two dollars. New accounts opened at a bank or financial organization must also receive an upfront written notice, at account opening, warning that inactivity can eventually lead to the funds being transferred to the state.
Frequently Asked Questions
Does a bank have to warn a customer before an inactive account escheats to the state?
Yes, if the bank has an address on file that is not known to be inaccurate. Section 1513.5 requires notice either two to two-and-a-half years after the account went dormant or six to twelve months before it becomes reportable.
What has to be included in that notice?
A specific warning heading, boldface language describing the inactivity and the risk of escheat, an account identifier, and a form or contact method the owner can use to keep the account active.
Are small accounts exempt from this notice requirement?
Yes. Accounts, deposits, shares, or other interests under fifty dollars do not require this notice.
Can the bank charge for sending the notice?
Only if the account is worth more than two dollars, and even then the charge cannot exceed the actual cost of sending the notice, capped at two dollars.
Amendment History
Amended by Stats 2013 ch 362 (AB 212),s 1, eff. 1/1/2014. Amended by Stats 2011 ch 305 (SB 495),s 2, eff. 1/1/2012. Amended by Stats 2009 ch 522 (AB 1291),s 2, eff. 1/1/2010. Amended by Stats 2002 ch 813 (AB 1772),s 1, eff. 1/1/2004
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:bank notice before account escheats californiadormant account warning letter requirements