My prior response is not specific to California but rather applies as a general unclaimed property rule to all negotiable instruments as well as to any property eligible for unclaimed property reporting. The jurisdictional priority rules for unclaimed property reporting are outlined in the US Supreme Court case of Texas v. New Jersey (1965).
So, in the absence of a payee’s address, the uncashed cashier’s check would be reportable to the bank’s (as the holder of the funds) state of incorporation. And yes, notice to the payee without an address is challenging. As a best practice you might try your Construction Loan customer to inquire if they have any additional contact information for that payee.
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Debbie Zumoff
Chief Compliance Officer
Keane Unclaimed Property
www.keaneup.com