Title 12 — Banks and BankingRelease 119-73not60

§2503 State Entitlement to Escheat or Custody

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

Last updated Apr 3, 2026|Official source

Summary

Decides which state can claim unclaimed money on a money order, traveler's check, or similar paper that a bank or company must pay (not a third-party bank check). It says who gets custody of the money based on the issuer’s records and the states’ own laws. If the issuer’s records show where it was bought, that buying state alone may claim the money as allowed by its laws. If the records do not show a purchase state, the state where the issuer has its main office may claim it until another state proves in writing it was the place of purchase. If the records show a purchase state but that state’s laws do not allow claiming the money, the issuer’s main-office state may claim it, but the purchase state can recover the money later if its law changes to allow such claims.

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

Apr 3, 2026

Release point: 119-73not60