Supreme Court OKs California’s use of ‘unclaimed’ cash

As reported by the Los Angeles Times:

California’s system of seizing and spending “unclaimed” cash from banks, mutual funds and defunct businesses has survived a Supreme Court challenge.

The state says it is now holding $8 billion in lost assets. And from this fund, it takes about $450 million a year to add to the state budget.

After considering an appeal for four months, the justices said Monday they would not hear a long-running lawsuit that contends the state does not do enough to notify the rightful owners before seizing their assets.

Under the state’s law, accounts can be seized if a bank or retirement fund has lost track of the owner for three years. …

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