I read previous posts on dormant cashiers checks and understand that local escheat laws apply (e.g., abandoned property). But I have a few additional questions ...

1. It appears that some banks try to contact the customer or the payee before the check is escheated. Is it appropriate to contact the payee? What if the customer is still holding the check (and the payee does not have knowledge about the check made payable to him/her)?

2. Would your answer to #1 above be different if the payee is the IRS (or a legal business entity)?

3. Would your answer to #1 above be different if the bank uses a third-party vendor to process cashiers checks (and the bank does not carry the checks on its G/L because they are not drawn on the bank)? In this case ... is the third-party vendor responsible and liable for handling the abandoned property?

1. It may be determined by State law - some States indicate the actions that a bank must take prior to escheatment.

2. See #1.

3. You would have to look to your third party contract.