AB 2258 Summary

• Requires banking and financial organizations to recognize electronically-initiated transactions as evidence of account activity for determining whether deposits escheat to the state, effective January 1, 2018.

• Specifies that debits, credits, payroll deposits, and federal benefit deposits (Social Security, veterans benefits, pension payments) authorized by account owners count as account activity.

• Applies to demand deposits, savings accounts, matured time deposits, and accounts subject to negotiable orders of withdrawal that would otherwise escheat after three years of inactivity.

• Allows deposits to avoid escheatment if the owner has maintained activity on another account with the same institution during the three-year period and the institution has communicated with the owner about the inactive account.