Unclaimed Property - Definition - Law Dictionary Home Dictionary Definition unclaimed-property

Definition :

Unclaimed property. This devolves on the Crown at Common Law. Unclaimed property may be dealt with under the heads of (1) Government Stock, (2) Chancery Funds, (3) Stock in Public Companies, (4) Bankers' Balances, (5) Deposits with Bankers for Safe Custody, and (6) Found Property.

(1) Government Stock.-The National Debt Act, 1870 (33 & 34 Vict. c. 71), ss. 51 et seq., as extended by 20 & 21 Geo. 5, c. 28, s. 49 provides that stock on which no dividend has been claimed for ten years must be transferred to the National Debt Commissioners. Lists of names in which the stock stood, with residence, description and amount of stock and date of transfer, are to be kept at the Bank of England [or Ireland, but see 13 Geo. 5, c. 2, s. 6 (d)] and at the National Debt Office, open to inspection, and also kept in duplicate at the National Debt Office. The stock may be re-transferred to persons showing title after, in the case of stock exceeding 20l., three months' public notice by advertisement. A second claimant showing better title may recover the stock from the re-transferee, and if unable to recover it may obtain an order in his favour from the Chancery Division of the High Court, which 'shall, on application by petition by the new claimant, verified as the Court requires, order the National Debt Commissioners to transfer to him such sum in stock, and to pay to him such sum in money for dividend, as the Court thinks just' (s. 60).

(2) Chancery Funds.-These are regulated by the Chancery Funds Act, 1872, and the Judicature Funds Act, 1883. They consist of money paid into Court by trustees, or in administration actions, or by defendants in actions. From a parliamentary return in 1900 it appears that they then amounted to 56 millions, their ultimate destination, except as to 'dormant funds'-i.e., funds not dealt with for fifteen years or upwards-being in most cases well known. A list of 'dormant funds' upwards of 50l. in amount is published, in accordance with Rule 96 of the Supreme Court Funds Rules, 1927 (see the Annual Practice), quintennially in the London Gazette. See Gazette of March 10, 1933, and from an earlier London Gazette (Supplement, March 5, 1923) (going back to 1726), it appears that their amount was then more than 1,050,000l., distributed over upwards of 3,000 separate accounts, one-half not exceeding 150l. in value, and only about one-twentieth exceeding 1000l.

(3) Stock in Public Companies.-By Art. 72 of Table A in Sch. I. of the Companies Act, 1862 (now repealed), 'all dividends unclaimed for three years after having been declared may be forfeited by the directors for the benefit of' a company under that Act; but the Act is silent as to capital stock. There is no similar provision in Table A to the Acts of 1908 and 1929. Dividends are barred by the Statute of Limitations at the end of twenty years [Re Artisans, etc., Corporation, (1904) 1 Ch 796]. No period of limitation necessarily applies to capital stock (but see Re Artisans, etc., Corporation), and in 1884, in Crawford v. Royal Exchange Insurance Corporation (see Times of April 29, 1884), stock on which no dividend had been paid since 1749 was handed over to the representative of a holder, who had taken out administration de bonis non, the amount recovered on 100l. stock being about 3000l., 6600l. having been previously recovered by another plaintiff against the same defendants (see Times of Dec. 11, 1883) in respect of 200l. stock on which no dividend had been paid since 1720. As to the mode of dealing with unclaimed funds in the hands

of a liquidator, see Companies (Winding-up)

Rules, 1909, r. 191; and as to unclaimed funds or dividends in bankruptcy, see Bankruptcy Act, 1914, s. 153.

(4) Bankers' Balances.-Money at a bank on an ordinary current or drawing account is money lent to the banker by the customer, repayable upon and not until demand without which there is no cause of action: see the judgment of Bankes, LJ, in Joachimson v. Swiss Bank Corporation, (1921) 3 KB 110, explaining: Pott v. Clegg, (1849) 16 M&W 321; Foley v. Hill, (1851) 2 HLC 28. It follows from this that the Statute of Limitations will not run for such money until six years after demand.

(5) Deposits with Bankers for Safe Custody.-It does not appear to have been judicially decided for what length of time bankers are bound to keep these, but it would seem that the liability of the banker, if he retains custody, is a perpetual liability limited only by six years after demand and refusal. See the judgment of Lord Hatherley, L.C., in Burdick v. Garrick, (1870) LR 5 Ch 239 (240).

(6) Found Property.-A finder has a title against all the world except the owner of it (see title FINDER OF GOODS), but within what time, if any, he may convert it to his own use is doubtful. The practice of the Metropolitan Police Authorities appears to be that after a reasonable time and efforts to find the owner, the property will be returned to the finder, subject to conditions in case of property of value, and such property, of course, remains the property of the owner until his claim is barred by lapse of time. see LIMITATIONS.

Special provisions are to be found in s. 9 (5) of the (English) Metropolitan Public Carriages Act, 1869 (32 & 33 Vict. c. 115), by which the Secretary of State may make regulations (inter alia) 'for securing the safe custody and re-delivery of any property accidentally left in hackney or stage carriages, the charges to be paid in respect thereof, with power to cause such property to be sold or to be given to the finder in event of its not being claimed with a certain time.'

As to property which has come into possession of the police in connection with a criminal matter, see the general Police (Property) Act, 1897 (60 & 61 Vict. c. 30). See RESTITUTION OF STOLEN GOODS.