---
kind: "section"
citation: "12 U.S.C. § 2503"
title: "12"
title_heading: "Banks and Banking"
number: "2503"
heading: "State entitlement to escheat or custody"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/12/2503"
units:
  - "Chapter 26 — Disposition of Abandoned Money Orders and Traveler’s Checks"
---

# §2503. State entitlement to escheat or custody


Where any sum is payable on a money order, traveler’s check, or other similar written instrument (other than a third party bank check) on which a banking or [financial organization](/usc/12/2502.md?p=3) or a [business association](/usc/12/2502.md?p=2) is directly liable—

- (1) if the books and records of such banking or [financial organization](/usc/12/2502.md?p=3) or [business association](/usc/12/2502.md?p=2) show the [State](/usc/12/1707.md?p=d) in which such money order, traveler’s check, or similar written instrument was purchased, that [State](/usc/12/1707.md?p=d) shall be entitled exclusively to escheat or take custody of the sum payable on such instrument, to the extent of that [State](/usc/12/1707.md?p=d)’s power under its own laws to escheat or take custody of such sum;
- (2) if the books and records of such banking or [financial organization](/usc/12/2502.md?p=3) or [business association](/usc/12/2502.md?p=2) do not show the [State](/usc/12/1707.md?p=d) in which such money order, traveler’s check, or similar written instrument was purchased, the [State](/usc/12/1707.md?p=d) in which the banking or [financial organization](/usc/12/2502.md?p=3) or [business association](/usc/12/2502.md?p=2) has its principal place of business shall be entitled to escheat or take custody of the sum payable on such money order, traveler’s check, or similar written instrument, to the extent of that [State](/usc/12/1707.md?p=d)’s power under its own laws to escheat or take custody of such sum, until another [State](/usc/12/1707.md?p=d) shall demonstrate by written evidence that it is the [State](/usc/12/1707.md?p=d) of purchase; or
- (3) if the books and records of such banking or [financial organizations](/usc/12/2502.md?p=3) or [business association](/usc/12/2502.md?p=2) show the [State](/usc/12/1707.md?p=d) in which such money order, traveler’s check, or similar written instrument was purchased and the laws of the [State](/usc/12/1707.md?p=d) of purchase do not provide for the escheat or custodial taking of the sum payable on such instrument, the [State](/usc/12/1707.md?p=d) in which the banking or [financial organization](/usc/12/2502.md?p=3) or [business association](/usc/12/2502.md?p=2) has its principal place of business shall be entitled to escheat or take custody of the sum payable on such money order, traveler’s check, or similar written instrument, to the extent of that [State](/usc/12/1707.md?p=d)’s power under its own laws to escheat or take custody of such sum, subject to the right of the [State](/usc/12/1707.md?p=d) of purchase to recover such sum from the [State](/usc/12/1707.md?p=d) of principal place of business if and when the law of the [State](/usc/12/1707.md?p=d) of purchase makes provision for escheat or custodial taking of such sum.

## Source credit

(Pub. L. 93–495, title VI, § 603, Oct. 28, 1974, 88 Stat. 1525.)