(a) In addition to any damages, penalties, or fines for which a person may be liable under other provisions of law, any person who fails to report, pay, or deliver unclaimed property within the time prescribed by this chapter, unless that failure is due to reasonable cause, shall pay to the Controller interest at the rate of 12 percent per annum on that property or value thereof from the date the property should have been reported, paid, or delivered.
§ 1577.Interest Payable For Failure to Report, Pay Or Deliver Unclaimed Property; Waiver
Title 10. Unclaimed Property · Chapter 7. Unclaimed Property Law · Article 6. Compliance and Enforcement · Last amended 2023 · Last verified July 29, 2026
In one sentenceSection 1577 charges 12 percent annual interest on unclaimed property that a holder reports, pays, or delivers late without reasonable cause, caps that interest at $10,000 for holders who report and pay on time but not in substantial compliance with reporting requirements, and requires the Controller to waive interest for holders who complete the Voluntary Compliance Program.
Full Text of § 1577
(b) If a holder reports and pays or delivers unclaimed property within the time prescribed by this chapter, but files a report that is not in substantial compliance with the requirements of Section 1530 or 1532, the interest payable on the unclaimed property that is paid or delivered in the time prescribed by this chapter shall not exceed ten thousand dollars ($10,000).
Plain-English Summary
Beyond the willful-failure penalties in Section 1576, this section adds an interest charge for property that arrives late. A holder who misses the deadline for reporting, paying, or delivering unclaimed property, without a reasonable excuse, owes the Controller interest at 12 percent a year, running from the date the property should have been reported, paid, or delivered.
Holders who meet their deadlines but stumble on the reporting details get a break: if a holder reports and pays or delivers on time, but the report doesn't substantially comply with the format and content rules in Sections 1530 or 1532, the interest on that property tops out at $10,000. The Controller can also waive the interest altogether if the compliance shortfall itself had reasonable cause, and must waive it for any holder who enrolls in and completes every step of the Voluntary Compliance Program described in Section 1577.5, subject to reinstatement if that holder later falls short.
Frequently Asked Questions
What interest rate applies to late unclaimed property?
12 percent per year, running from the date the property should have been reported, paid, or delivered.
Is there a cap on interest for holders who file on time but not in full compliance?
Yes. If the report isn't in substantial compliance with Section 1530 or 1532 but payment or delivery is still timely, the interest is capped at $10,000.
Can the Controller waive this interest?
Yes, if the compliance shortfall was due to reasonable cause, and the Controller must waive it for a holder who completes the Voluntary Compliance Program under Section 1577.5.
How does the Voluntary Compliance Program affect interest owed?
Completing it entitles a holder to a mandatory interest waiver, though the Controller can reinstate that interest if the holder doesn't follow through on the program's requirements.
Amendment History
Amended by Stats 2022 ch 282 (AB 2280),s 2, eff. 1/1/2023. Amended by Stats 2009 ch 522 (AB 1291),s 8, eff. 1/1/2010. Amended by Stats 2003 ch 304 (AB 378),s 5, 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
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