Unclaimed Property Laws - Escheat Laws
State audit of charity's and businesses books and where they have unclaimed property laws, they require uncashed vendor checks and payroll checks after a time period be voided and rewritten to the State. Then they post a legal notice of unclaimed property, listing the name of the person or business and the amount of money they are due. If after a certain period that money is still unclaimed, the State keeps the money. This applies to winnings, gift cards, certificates, royalty checks, anything of value awarded or made as payment to a person or business, but different articles of value have different time periods of effect. A payroll check must be cashed in one year, vendor checks are 5 years. We have it here in Colorado and it was a real pain in the neck for my wife because of these audits where she worked. In this State is it an annual reporting requirement.