§ 1517.Property Distributable In Course of Dissolution of Business Organization Or Insurer

Winding down a company means distributing whatever is left to its owners, and Section 1517 addresses what happens when some of that final distribution goes unclaimed. Property distributable in a business association's voluntary or involuntary dissolution or liquidation escheats to California if it remains unclaimed within six months of the date of final distribution, a far shorter window than the three years this chapter uses for ordinary dormant accounts, reflecting how a dissolution already puts owners on notice that they need to come forward.

Insurers dissolved or liquidated under the Insurance Code's own special proceedings follow a related but separate path. Property unclaimed six months after their final distribution goes to the Department of Insurance rather than the Controller directly, with any sale proceeds and other funds deposited into the Insurance Fund for the specific purposes the Insurance Code sets out. The section applies to all tangible personal property located in California and, subject to Section 1510's jurisdictional rules, to intangible personal property as well.