Title 12, Banks and BankingRelease 119-102

§2503 State Entitlement to Escheat or Custody

Title 12 › CHAPTER 26 — DISPOSITION OF ABANDONED MONEY ORDERS AND TRAVELER’S CHECKS › § 2503

Last updated Aug 21, 2026|Official source

Summary

Gives a state the right to claim money owed on a money order, traveler’s check, or similar written instrument (but not a third-party bank check) when a bank or company is directly responsible for paying it. The state that can claim the money must act under its own laws. If the seller’s state is shown in the payer’s records, that state alone can take the money. If the records don’t show the seller’s state, the state where the bank or company has its main office can take it until another state provides written proof it was bought there. If the records show the seller’s state but that state’s laws don’t allow taking the money, the main-office state can take it, but the seller’s state may recover the money later if it changes its laws.

Full Legal Text

Title 12, §2503

Banks and Banking, Source: USLM XML via OLRC

Where any sum is payable on a money order, traveler’s check, or other similar written instrument (other than a third party bank check) on which a banking or financial organization or a business association is directly liable—

(1)if the books and records of such banking or financial organization or business association show the State in which such money order, traveler’s check, or similar written instrument was purchased, that State shall be entitled exclusively to escheat or take custody of the sum payable on such instrument, to the extent of that State’s power under its own laws to escheat or take custody of such sum;

(2)if the books and records of such banking or financial organization or business association do not show the State in which such money order, traveler’s check, or similar written instrument was purchased, the State in which the banking or financial organization or business association has its principal place of business shall be entitled to escheat or take custody of the sum payable on such money order, traveler’s check, or similar written instrument, to the extent of that State’s power under its own laws to escheat or take custody of such sum, until another State shall demonstrate by written evidence that it is the State of purchase; or

(3)if the books and records of such banking or financial organizations or business association show the State in which such money order, traveler’s check, or similar written instrument was purchased and the laws of the State of purchase do not provide for the escheat or custodial taking of the sum payable on such instrument, the State in which the banking or financial organization or business association has its principal place of business shall be entitled to escheat or take custody of the sum payable on such money order, traveler’s check, or similar written instrument, to the extent of that State’s power under its own laws to escheat or take custody of such sum, subject to the right of the State of purchase to recover such sum from the State of principal place of business if and when the law of the State of purchase makes provision for escheat or custodial taking of such sum.

Reference

Citations & Metadata

Citation

12 U.S.C. § 2503

Title 12, Banks and Banking

Last Updated

Aug 21, 2026

Release point: 119-102