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How does an account become “presumed abandoned”, and what happens to abandoned accounts?

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Accounts identified by banks as “presumed abandoned” are subject to escheat (be remitted) to the state. Under section 73.101 of the Texas Property Code, an account is classified as abandoned when: (1) it has been inactive (without any depositor-initiated activity) for at least five years, (2) the bank is unable to identify the location of the depositor, and (3) the amount of the account or the contents of the box have not been delivered to the comptroller in accordance with Ch. 74. An account is not considered abandoned if the depositor has another account at the bank that is in “active” status.

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Accounts identified by credit unions as “presumed abandoned” are subject to escheat (be remitted) to the State. Under section 73.101 of the Texas Property Code, an account is classified as abandoned when: (1) it has been inactive (without any member initiated activity) for at least five years, (2) the credit union is unable to identify the location of the member, and (3) the balance of the account or the contents of the safety deposit box have not been delivered to the Comptroller in accordance with Chapter 74 of the Texas Property Code. An account is not considered abandoned if the member has another account at the credit union that is in active status.

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