309 - Policy on Escheats

Title

University of North Carolina at Chapel Hill Finance Policy 309 - Policy on Escheats

Introduction

Purpose

The purpose of the Policy on Escheats is for the University of North Carolina at Chapel Hill to comply with North Carolina General Statute 116B, Escheats and Abandoned Property.

Scope of Applicability

Accounting Services’ Cash Management Unit holds primary responsibility to escheat University property in cooperation with Payroll Services, the Office of Sponsored Research, Accounts Payable, as well as Departmental petty cash and imprest checking account custodians. Departments with petty cash or imprest checking accounts are responsible for the proper reconciliation and reporting to Accounting Services of all property disbursed from their accounts that are unclaimed. Accounting Services facilitates the bank account reconciliation and review of unclaimed property.

Policy

Policy Statement

The University of North Carolina at Chapel Hill escheats abandoned property in accordance with the provisions of the North Carolina General Assembly General Statute Chapter 116B Escheats and Abandoned Property (N.C.G.S. § 116B-1 through § 116B-80). This policy applies to all property held or issued by the University, especially payments made through disbursing accounts. Procedures to reconcile and report unclaimed property can be found in Finance Procedure 309.1 - Reconciling, Reporting and Escheating Unclaimed Property.

Exceptions

None.

Definitions

Escheat - the succession of abandoned property to the State. It results from the failure of a person legally entitled to the property to make a valid claim against the holder of the property within a prescribed period.

Owner - a person who has a legal or equitable interest in property subject to this Chapter or the person's legal representative. The term includes a depositor in the case of a deposit, a beneficiary in the case of a trust other than a deposit in trust, and a creditor, claimant, or payee in the case of other property.

Person - means an individual, business association, financial organization, estate, trust, government, governmental subdivision, agency, or instrumentality, or any other legal or commercial entity.

Property - means

  1. money or tangible personal property held by a holder that is physically located in a safe deposit box or other safekeeping depository held by a financial institution within this State or
  2. a fixed and certain interest in intangible property or money that is held, issued, or owed in the course of a holder's business, or by a government, governmental subdivision, agency, or instrumentality, and all income or increments therefrom.

The term includes property that is referred to as or evidenced by:

  1. Money, a check, draft, deposit, interest, or dividend;
  2. Credit balance, customer's overpayment, gift certificate, security deposit, refund, credit memorandum, unpaid wage, unused ticket, mineral proceeds, or unidentified remittance;
  3. Security or other evidence of ownership of an interest in a business association;
  4. A bond, debenture, note, or other evidence of indebtedness;
  5. Money deposited to redeem stocks, bonds, coupons, or other securities, or to make distributions;
  6. An amount due and payable under the terms of an annuity or insurance policy, including policies providing life insurance, property and casualty insurance, workers' compensation insurance, or health and disability insurance; and
  7. An amount distributable from a trust or custodial fund established under a plan to provide health, welfare, pension, vacation, severance, retirement, death, stock purchase, profit sharing, employee savings, supplemental unemployment insurance, or similar benefits.

Related Requirements

External Regulations and Consequences

University Policies, Standards, and Procedures

Contact Information

Policy Contact

Cash Management Unit of Accounting Services
Email: Cash_Management@unc.edu
Telephone: (919) 962-0036

Details

Article ID: 131506
Created
Thu 4/8/21 9:10 PM
Modified
Wed 5/11/22 3:55 PM
Effective Date
If the date on which this document became/becomes enforceable differs from the Origination or Last Revision, this attribute reflects the date on which it is/was enforcable.
06/28/2019 12:00 AM
Issuing Officer
Name of the document Issuing Officer. This is the individual whose organizational authority covers the policy scope and who is primarily responsible for the policy.
Issuing Officer Title
Title of the person who is primarily responsible for issuing this policy.
University Cash Manager
Last Review
Date on which the most recent document review was completed.
06/28/2019 12:00 AM
Last Revised
Date on which the most recent changes to this document were approved.
06/28/2019 12:00 AM
Next Review
Date on which the next document review is due.
06/27/2020 12:00 AM
Origination
Date on which the original version of this document was first made official.
06/28/2019 12:00 AM
Responsible Unit
School, Department, or other organizational unit issuing this document.
Finance and Budget