If you have unclaimed stocks, bonds, or dividends held by the California State Controller’s Office (CA SCO), you’re not alone. Many individuals and businesses are unaware that they have unclaimed financial assets waiting for them. Whether due to forgotten accounts, lost certificates, or estate-related matters, recovering these assets can be an important financial windfall.
In this guide, we’ll walk you through the exact steps to claim your unclaimed stocks, dividends, bonds, or debentures from the CA SCO, ensuring you provide the correct documentation and follow the process smoothly. By following these clear and actionable steps, you can reclaim what’s rightfully yours with confidence.
Step 1: Understanding Unclaimed Stocks, Dividends, Bonds, and Debentures
Unclaimed financial securities such as stocks, bonds, or dividends are transferred to the California State Controller’s Office when their rightful owner has not claimed or accessed them over a certain period, typically three years. These securities may include:
Stocks: Shares of a company that the owner has not cashed, traded, or transferred.
Dividends: Payouts from companies that were issued but never claimed by shareholders.
Bonds: Debt securities issued by corporations or governments.
Debentures: A type of bond that is not secured by physical assets or collateral.
Once these assets are transferred to the CA SCO, they are held until claimed by the owner or their heirs. However, California’s Unclaimed Property Law requires the State Controller to sell these securities within 18 to 20 months of receiving them, and claimants will receive the market value of the securities at the time of the sale, not the current market value.
Step 2: Required Documentation to Claim Your Securities
To claim unclaimed securities from the CA SCO, you need to provide the appropriate documentation that verifies your ownership. Here’s a breakdown of the documentation required for different types of securities:
- Original Stock Certificate
If you’re claiming stocks, the original stock certificate is the most direct and straightforward way to prove ownership. The certificate will list the number of shares and the company name, making it easy for the CA SCO to match the record to your claim.
- Original Dividend Check
If you are claiming unclaimed dividends, submit the original dividend check. This check serves as proof that you were entitled to receive the dividends from the company’s stock but never cashed or deposited the check.
- Original Bond or Debenture
For bonds or debentures, provide the original bond or debenture certificate. This document will confirm the ownership and terms of the bond or debenture, allowing the CA SCO to verify your claim.
- Account Statement If the original certificates or checks are unavailable, a recent account statement*showing ownership of the securities can also serve as proof of ownership.
Step 3: What to Do If the Original Certificates Are Unavailable
It’s not uncommon for individuals to lose track of their stock certificates or bond documents over time. Fortunately, the CA SCO allows alternative methods for proving ownership if the original documentation is unavailable. Here’s what you can do:
- Verification of Occupancy at Registered Address
If the original certificate is missing, you may be able to prove ownership by providing documentation that verifies you lived at the address associated with the securities account. This could include utility bills, lease agreements, or tax records. This shows that you were the account holder associated with the property.
- Proof of Purchase or Dividend Evidence
If you don’t have the original certificate, another option is to submit **proof of purchase** for the securities or evidence of a dividend payout. This might include brokerage statements, purchase receipts, or records of dividends being issued to you but not cashed.
- Lost Instrument Bond
If necessary, the State Controller may require you to submit a lost instrument bond. This bond is a form of insurance that protects the State in case someone else comes forward with the original certificate after you’ve claimed the securities. Keep in mind, submitting a lost instrument bond alone is **not sufficient** proof of ownership. You will still need to provide additional documentation.
Step 4: Important Considerations for Sold Securities
California law requires the State Controller to sell unclaimed securities within 18 to 20 months of receiving them. This means that if your stocks, bonds, or other securities have been unclaimed for over 20 months, the State Controller may have already sold them.
Here’s what happens in these cases:
- Payment of Market Value at the Time of Sale
If your securities have been sold, you will receive the **market value of the securities at the time they were sold. Unfortunately, this could mean that the value you receive may be higher or lower than the current market value. The law does not provide for interest on the amount paid, so you will only receive the amount the securities were worth when they were sold.
- No Buy-Back of Securities
It’s important to understand that the State Controller’s Office is **not authorized to repurchase securities** once they’ve been sold. Additionally, the State will not cover the difference if the securities were sold for less than their current market value. The proceeds from the sale are final. - Timing of the Sale
The State Controller is required by law to sell unclaimed securities within the 18 to 20 month window, so if your claim is submitted after this period, your securities may no longer be available in their original form.
Step 5: Filing Your Claim with the CA SCO
Once you’ve gathered the necessary documentation, it’s time to file your claim with the California State Controller’s Office. Here’s how to do it:
Filing a Claim Online
- Visit the CA SCO Unclaimed Property Website
Go to the [CA SCO Unclaimed Property webpage](http://www.sco.ca.gov/upd_claiming.html) to search for your unclaimed securities. You can search by name and filter by different types of property, including stocks, bonds, and dividends.
- Find Your Property
If the search returns a match for your unclaimed securities, follow the on-screen instructions to initiate your claim. - Submit Your Documentation
Upload your required documents, including the original certificates, account statements, or alternative proof of ownership. Be sure to provide all the necessary details to avoid delays.
Filing a Claim by Mail
If you prefer to file by mail, follow these steps:
- Download the Claim Form
Download the appropriate claim form from the CA SCO website. - Complete the Form
Fill out the form with all requested information, making sure to include details about the securities you’re claiming. - Attach Documentation
Include copies of your original stock certificates, dividend checks, or proof of residence if needed. - Mail the Form
Send the completed form and all necessary documentation to:
State Controller’s Office
Unclaimed Property Division P.O. Box 942850 Sacramento, CA 94250-5873
Step 6: What Happens After Submitting Your Claim?
After submitting your claim, the CA SCO will review your documents and verify your eligibility. This process can take several weeks to several months, depending on the complexity of the claim and the volume of requests the office is handling.
- Verification of Ownership
The State Controller’s Office will review your documents to ensure that you are the rightful owner of the securities. They may contact you if additional information or clarification is needed. - Claim Approval and Payment
Once your claim is approved, the CA SCO will either return the unsold securities to you or issue a payment for the market value of the securities if they were sold. Payment is typically made by check, but other payment options may be available depending on the type of securities involved.
Final Thoughts: Reclaiming Your Unclaimed Securities in California
Recovering unclaimed stocks, bonds, or dividends in California can be a straightforward process if you have the right documentation. Whether you’re the original owner or an heir, following the steps outlined in this guide will help ensure that your claim is processed smoothly.
The key is to gather all necessary documents, understand the legal timeline for selling securities, and file your claim promptly. While California law requires the sale of unclaimed securities within 18 to 20 months, taking action early can ensure that you recover what’s rightfully yours before that window closes.
If you need assistance or run into challenges along the way, the California State Controller’s Office is available to guide you through the process, helping you reclaim your unclaimed assets.
You can also contact MuleOne, and we’ll take charge of your claim from start to finish without any upfront costs. The CA SCO will issue your claim check or send the securities straight to you.
Comments are closed