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An obligation held, issued or owed in the course of business (known as the “Holder”) that is due and owing to individuals or other companies (known as “Owners”). The property becomes abandoned or unclaimed property once there has been inactivity or no contact between the Holder and the Owner. This period of inactivity is known as the dormancy period. Once dormant, the property should be remitted to the appropriate state.
The Dormancy Period is the length of time a Holder has an item of property without any owner contact before it needs to be reported to the appropriate state.
The duration of the dormancy period varies depending on the type of property in question, but the vast majority of property types in Delaware have a five year dormancy period.
Abandoned or unclaimed property subject to being reported and remitted to Delaware pursuant to the Abandoned or Unclaimed Property Law includes tangible property described in 12 Del. C. § 1134 or a fixed and certain interest in intangible property held, issued, or owed in the course of a Holder’s business or by a government, governmental subdivision, agency, or instrumentality. The term includes, but is not limited to, the following:
Note: This list represents the most common examples of general ledger related to abandoned or unclaimed property and does not address securities, equity or insurance related property types.
The State of Delaware (“State”) takes custody of the property and is required to publish a list of property being held by the State in an attempt to reunite the property with its rightful Owner.
Pursuant to 12 Del. C. §1153(c), if abandoned or unclaimed property is remitted to the State in good faith, the State will defend the Holder against any claims to such property and indemnify the Holder against any liability on the claim—this applies with respect to claims by Owners or by other states.
Legal Disclaimer: The materials contained herein are intended to provide information in regard to the subject matter covered. The Delaware Department of State is not engaged in rendering legal, accounting, or other professional services. If legal advice or other professional assistance is required, the services of a qualified professional should be sought.