Moreover, while states seemingly are forever adjusting escheat laws, businesses are also adjusting their practices in response to those laws.
According to Larson, the first, and perhaps most critical, step in compliance with escheat laws is to identify which among the 50 state (and District of Columbia and Virgin Islands) escheat laws apply to a given business.
Further, the state in which a gift card purchase occurred may lay similar escheat claims in instances where neither of the previously mentioned states have made a claim.
We accordingly adhere to Texas and Pennsylvania and award the right to escheat under the secondary rule to the State in which the debtor is incorporated.
In essence, the first priority rule provides that the primary right to escheat a given item of intangible property belongs to the jurisdiction of the owner's last-known address, as shown by the holder's books and records.
New Jersey and award the secondary right to escheat to the jurisdiction in which the holder is domiciled, when the holder is not a corporation, the Acts define "domicile" as the jurisdiction of a noncorporate holder's principal place of business.
New Jersey by awarding the secondary right to escheat to the state in which the holder is a "domiciliary.
If such an LLC holds an item of unclaimed property for which it does not have the owner's last known address, both Montana and Delaware could ostensibly claim the right to escheat the property under Texas v.
Dormant bank accounts, uncashed dividend checks, untendered shares and outstanding insurance drafts used to be the only property subject to the escheat laws.
If, within the statutorily imposed period, the owner does not reestablish contact or exercise control over the property, the property becomes subject to escheat in the state with jurisdiction over the property.
If name and address records are maintained, the state of the purchaser's last known address has the first priority right to escheat the unused balances.
Delaware, a common state of incorporation and therefore a frequent beneficiary of the second priority rule, recently considered and rejected an amendment to its escheat laws exempting gift certificates.