Unclaimed property

Definition

Money a business still holds that belongs to somebody it lost track of.

Why It Matters

Uncashed payroll checks, customer credit balances, unreturned deposits and old vendor overpayments do not become the company's money by sitting still. State unclaimed funds law sets a dormancy period for each kind and then requires the holder to report the money and remit it. Ohio's schedule under 169.02 runs one year on wages over fifty dollars and on rent and utility deposits, three years on other retail customer credits and on layaway merchandise, and five years on demand and savings deposits. Buyers are surprised by it because the obligation attaches to whoever is holding the funds, so an asset deal does not always shed it. Ask for the last filed report, and where there has never been one, ask what is sitting in the aged credit balances.

In numbers: Twelve uncashed payroll checks averaging $700 is $8,400 the buyer reports and remits, not keeps.