We have been issuing official teller checks for three years and are coming up on the time we will need to escheat uncashed checks. By state law we are attempting to provide due diligence notifications to the "owner" of the check. However, we are trying to determine whether we should notify the person who purchased the check, or the payee on the check. In most cases, we don't know the address of the payee, but theoretically we can do some research and determine who might have been the purchaser.
Can those who have experience please comment on whether you provide due diligence notification to the Purchaser or the Payee of a teller check? If it is the purchaser and if you still have a relationship with the purchaser do you need to escheat the check (since you know the purchaser is living?).
Thank you.

Most often we will report under the payee on the check. The payee is the one with the legal claim on the item. It was made payable to them. Unfortunately, the state statutes do not make this distinction and from what I can see, neither do the administrative rules.

That leaves it to what we know banking. In that case, we know that we would only negotiate the check for the payee, so the payee is the reportable owner.

Lauriep, there may be some caveats to escheatment.

You must escheat unclaimed property to the state of the owner's last known address as shown by your records, and follow the rules of that state. You can not escheat only to the state where the account is held (branch) or where the holder (bank) is domiciled. For example, if the payee of one of the checks is in NY, you would use New York's escheat law, not Connecticut's.

How would you ever now the address of the payee on a cashier's check??? Plus, this post is a year old.