Is a bank required to send a periodic statement on dormant accounts? I believe this would probably be a state (Texas) level issue; don't know of any federal regulation addressing this. If you can provide a reference it would be appreciated. Thanks-

The UCC does not require you to send statements at all...but if there is a fraud question, the accountholder is not subject to the notice requirements in the account agreement because they did not get a statement to review. To answer you question, the UCC does not require you to keep sending statements to a bad address, and if it is not a bad address, it is not a dormant account.

If there were transactions, it wouldn't be in an inactive/dormant status. In fact, transactions that occur on these type accounts should be reviewed immediately as suspect.

You are correct. But who is to say that a fraudulent check might not come in and be charged against the account? Surely not at your bank, but there are banks that do not have such saavy compliance officers. (I mean that as a supreme compliment to you.) A dormant account is much more susceptible to fraud because no one is watching it. If that happens and the bank has not put the proper controls in place--and is not sending statements--who is responsible for that money if an owner shows up for the money? I am just asking because I do not have time to think this through or to look it up. I am hoping someone else knows. Or maybe it is moot because all BOL readers take proper precautions.