§ 1513.5.Notice By Banking Or Financial Organization that Deposit, Account, Shares, Etc. May Escheat to State

Section 1513 sets the dormancy clock, and Section 1513.5 makes sure the owner gets a warning before that clock runs out. If the holder has an address on file for the apparent owner that its records do not show to be inaccurate, the institution must make reasonable efforts to notify the owner, by mail or, if the owner consented, electronically, that the account will escheat. That notice has to go out either two to two-and-a-half years after the last activity on the account, or six to twelve months before the account becomes reportable to the Controller, whichever timing the institution chooses to follow.

The section is specific about what the notice has to say. It needs a prominent heading warning that California requires the notification, boldface or larger-type language explaining the inactivity and the risk of escheat, and a form the owner can sign and return to keep the account active, or a phone number or electronic alternative that serves the same purpose. Accounts under fifty dollars are exempt from this notice requirement entirely, and where notice is required, the institution's own service charge for sending it cannot exceed two dollars. New accounts opened at a bank or financial organization must also receive an upfront written notice, at account opening, warning that inactivity can eventually lead to the funds being transferred to the state.