Recently we closed an account due to excessive transactions on a Reg D account. The customer stated they would not come in and had stopped returning our bankers phone calls. She mailed a cashiers check for the balance (certified mail) since they had no other account to transfer the funds to. Since then, the check has been returned "not deliverable as addressed". Do we just store this in the vault until the escheat date? I figured this situation would come up sometime.

Do you not have a GL account or something where you store funds/escrow for cashier's checks that never cleared? You would follow the state escheatment rules on this, but you wouldn't have to hold the physical check necessarily. I'd still try to find them to save you the hassle of sitting on it for the next few years, but you can only do so much before you just put it away until it's time to forward to the state.

Late response, I know!

Thank you