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HomeFinancial CodeDiv. 1.1Ch. 12Art. 3§ 1440 Bank Liability For Unclaimed Deposits

§ 1440 Bank Liability For Unclaimed Deposits

Financial Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 1440 Bank Liability For Unclaimed Deposits

This law says that once a bank sends unclaimed or abandoned money to the State Treasurer, the bank is no longer responsible for that money, and any lawsuit about it will be handled by the Attorney General at no cost to the bank.

Key Takeaways

  • •Bank’s responsibility ends once it gives unclaimed money to the State Treasurer.
  • •The State Treasurer holds the money after the bank turns it over.
  • •Any lawsuit about that money is defended by the Attorney General, and the bank doesn’t pay for it.

Example

John thinks a bank still owes him $500 from an old account, but the bank already turned that money over to the State Treasurer.

If John sues the bank to get the $500, the Attorney General will defend the bank for free because the law says the bank isn’t liable after sending the money to the state.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 1440 Bank Liability For Unclaimed Deposits

Any bank which delivers or has heretofore delivered to the State Treasurer pursuant to law any unclaimed or abandoned deposit shall not thereafter be liable to any person for the same and any action which may be brought by any person against a bank for money so delivered to the State Treasurer shall be defended by the Attorney General without cost to the bank. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)

Last verified: January 11, 2026

Key Terms

unclaimed or abandoned depositState TreasurerliableAttorney General

Related Statutes

  • § 16550 Foreign Credit Union Operations
  • § 16551 Foreign Credit Union Licensing
  • § 16552 Foreign Credit Union Licensing
  • § 16553 Foreign Credit Union Branches
  • § 16554 Foreign Credit Union Relocation

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Financial Code. Section 1440.
View Official Source