(a) Any person, excluding another state, who claims to have been the owner, as defined in subdivision (d), of property paid or delivered to the Controller under this chapter may file a claim to the property or to the net proceeds from its sale. The claim shall be on a form prescribed by the Controller and shall be verified by the claimant.
§ 1540.Generally
Title 10. Unclaimed Property · Chapter 7. Unclaimed Property Law · Article 4. Payment of Claims · Last amended 2021 · Last verified July 29, 2026
In one sentenceSection 1540 lets an owner, including certain dissolved nonprofit organizations, file a verified claim with the Controller for escheated property or its sale proceeds, requires a decision within 180 days with no interest payable, and lets property held for a state or local agency transfer directly without a claim.
Full Text of § 1540
(b) The Controller shall consider each claim within 180 days after it is filed to determine if the claimant is the owner, as defined in subdivision (d), and may hold a hearing and receive evidence. The Controller shall give written notice to the claimant if the Controller denies the claim in whole or in part. The notice may be given by mailing it to the address, if any, stated in the claim as the address to which notices are to be sent. If no address is stated in the claim, the notice may be mailed to the address, if any, of the claimant as stated in the claim. A notice of denial need not be given if the claim fails to state either an address to which notices are to be sent or an address of the claimant.
(c) Interest shall not be payable on any claim paid under this chapter.
(d) Notwithstanding subdivision (g) of Section 1501, for purposes of filing a claim pursuant to this section, "owner" means the person who had legal right to the property before its escheat, the person's heirs or estate representative, the person's guardian or conservator, or a public administrator acting pursuant to the authority granted in Sections 7660 and 7661 of the Probate Code. An "owner" also means a nonprofit civic, charitable, or educational organization that granted a charter, sponsorship, or approval for the existence of the organization that had the legal right to the property before its escheat but that has dissolved or is no longer in existence, if the charter, sponsorship, approval, organization bylaws, or other governing documents provide that unclaimed or surplus property shall be conveyed to the granting organization upon dissolution or cessation to exist as a distinct legal entity. Only an owner, as defined in this subdivision, may file a claim with the Controller pursuant to this article.
(e) Following a public hearing, the Controller shall adopt guidelines and forms that shall provide specific instructions to assist owners in filing claims pursuant to this article.
(f) Notwithstanding any other provision, property reported to, and received by, the Controller pursuant to this chapter in the name of a state agency, including the University of California and the California State University, or a local agency, including a school district and community college district, may be transferred by the Controller directly to the state or local agency without the filing of a claim. Property transferred pursuant to this subdivision is immune from suit pursuant to Section 1566 in the same manner as if the state or local agency had filed a claim to the property. For purposes of this subdivision, "local agency" means a city, county, city and county, or district.
Plain-English Summary
Once property has escheated and the Controller holds it, the owner needs a defined path to get it back, and Section 1540 is that path. Anyone, other than another state, who claims to have owned property paid or delivered to the Controller may file a verified claim, on a Controller-prescribed form, either to the property itself or to what it sold for. The Controller has to consider the claim within 180 days, may hold a hearing and take evidence, and must give written notice if the claim is denied in whole or in part, though no interest accrues on whatever gets paid.
“Owner” gets a careful definition here: the person who had the legal right to the property before it escheated, that person's heirs or estate representative, a guardian or conservator, or a public administrator acting under the Probate Code. The definition also reaches a nonprofit civic, charitable, or educational group that granted a charter or sponsorship to an organization that has since dissolved, when that group's own governing documents say leftover property reverts to it. Only someone who fits this definition can file a claim under this article. The Controller has to adopt guidelines and forms, following a public hearing, to help owners navigate the process, and property recorded in the name of a state or local agency, including a school district or the University of California, can be transferred directly to that agency without any claim being filed at all.
Frequently Asked Questions
Who counts as an “owner” eligible to file a claim under this section?
The person who had legal right to the property before escheat, that person's heirs or estate representative, a guardian or conservator, a public administrator acting under the Probate Code, or a qualifying dissolved nonprofit organization entitled to leftover property under its own governing documents.
How long does the Controller have to decide a claim?
180 days after the claim is filed, with the option to hold a hearing and take evidence before deciding.
Is interest paid on a successful claim?
No. Section 1540 states that interest is not payable on any claim paid under this chapter.
Does a state agency have to file a claim to get its own escheated property back?
No. Property recorded in the name of a state or local agency, including a school district or the University of California, can be transferred directly to that agency without a claim.
What happens if the Controller denies a claim?
The Controller must give written notice of the denial, mailed to the address stated in the claim, unless the claim itself never listed an address to send notice to.
Amendment History
Amended by Stats 2020 ch 36 (AB 3364),s 26, eff. 1/1/2021. Amended by Stats 2019 ch 320 (AB 1637),s 1, eff. 1/1/2020. Amended by Stats 2014 ch 330 (AB 1712),s 1, eff. 1/1/2015. Amended by Stats 2013 ch 128 (AB 1275),s 1, eff. 1/1/2014. Amended by Stats 2005 ch 706 (AB 1742),s 15, eff. 1/1/2006 Amended by Stats 2002 ch 1124 (AB 3000),s 3, eff. 9/30/2002.
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
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