(a) Upon the payment or delivery of escheated property to the Controller, the state shall assume custody and shall be responsible for the safekeeping of the property. Any person who pays or delivers escheated property to the Controller under this chapter and who, prior to escheat, if the person's records contain an address for the apparent owner that the holder's records do not disclose to be inaccurate, has made reasonable efforts to notify the owner by mail or, if the owner has consented to electronic notice, electronically, in substantial compliance with Sections 1513.5, 1514, 1516, and 1520, that the owner's property, deposit, account, shares, or other interest will escheat to the state, is relieved of all liability to the extent of the value of the property so paid or delivered for any claim that then exists or that thereafter may arise or be made in respect to the property. Property removed from a safe-deposit box or other safekeeping repository shall be received by the Controller subject to any valid lien of the holder for rent and other charges, the rent and other charges to be paid out of the proceeds remaining after the Controller has deducted therefrom their selling cost.
§ 1560.Generally
Title 10. Unclaimed Property · Chapter 7. Unclaimed Property Law · Article 5. Administration of Unclaimed Property · Enacted 2021 · no amendments on record · Last verified July 29, 2026
In one sentenceSection 1560 gives the state custody and safekeeping responsibility once escheated property is delivered, relieves a holder of further liability if it gave reasonable pre-escheat notice to the owner, and lets a holder who later pays the rightful owner directly recover reimbursement from the Controller without any fee deducted.
Full Text of § 1560
(b) Any holder who has paid moneys to the Controller pursuant to this chapter may make payment to any person appearing to that holder to be entitled thereto, and upon filing proof of the payment and proof that the payee was entitled thereto, the Controller shall forthwith reimburse the holder for the payment without deduction of any fee or other charges. Where reimbursement is sought for a payment made on a negotiable instrument, including a traveler's check or money order, the holder shall be reimbursed under this subdivision upon filing proof that the instrument was duly presented to them and that payment was made thereon to a person who appeared to the holder to be entitled to payment.
(d) Any holder who has delivered personal property, including a certificate of any interest in a business association, to the Controller pursuant to this chapter may reclaim the personal property if still in the possession of the Controller without payment of any fee or other charges upon filing proof that the owner thereof has claimed such personal property from the holder. The Controller may, in their discretion, accept an affidavit of the holder stating the facts that entitle the holder to reimbursement under this subdivision as sufficient proof for the purposes of this subdivision.
(e) Any holder who has delivered funds maintained under a preneed funeral trust or similar account or plan to the Controller pursuant to this chapter and has fulfilled the services of the preneed funeral trust escheated to the Controller shall be reimbursed under this section upon submission of a death certificate for the beneficiary and a statement detailing the personal property or funeral merchandise or services provided.
(f) This section shall become operative on January 1, 2023.
Plain-English Summary
Once a holder hands property over to the state, someone has to be legally responsible for keeping it safe, and Section 1560 puts that responsibility on the state itself. The Controller assumes custody and safekeeping of the property, and a holder who made reasonable efforts to notify the owner by mail, or electronically if the owner consented, before the property escheated is relieved of all further liability for the value paid or delivered. Property removed from a safe deposit box comes to the Controller subject to any valid lien the holder had for rent or other charges, paid out of the eventual sale proceeds.
The section also covers what happens if a holder pays the rightful owner directly after already delivering money to the Controller. The holder gets reimbursed in full, without any fee deducted, upon filing proof of the payment and proof the payee was entitled to it, and that reimbursement holds even if the payee's own claim against the holder would otherwise have been time-barred. A holder can similarly reclaim personal property still in the Controller's possession, or funds delivered under a preneed funeral trust once the funeral services have been provided, again without a fee. This section became operative on January 1, 2023.
Frequently Asked Questions
Who is responsible for safekeeping property once it's escheated to the state?
The Controller, who assumes custody and safekeeping responsibility once the escheated property is paid or delivered.
Is a holder still liable to the owner after property has escheated?
No, if the holder made reasonable efforts to notify the owner by mail or electronic notice before the property escheated, the holder is relieved of all liability to the extent of the value paid or delivered.
What if a holder pays the rightful owner after already sending the money to the Controller?
The holder can file proof of the payment and the payee's entitlement and get reimbursed by the Controller in full, without any fee deducted, even if the payee's claim would otherwise have been time-barred.
Can a holder get back property it delivered, rather than money?
Yes. A holder can reclaim personal property still in the Controller's possession upon filing proof that the owner claimed it directly from the holder.
Amendment History
Added by Stats 2021 ch 514 (AB 293),s 9, eff. 1/1/2022.
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 escheated property californiaholder reimbursement paying rightful owner