Escheat Rule Agreement

Pursuant to a congressional request, GAO reviewed certain issues associated with the proposed Equitable Escheatment Act. GAO noted that: (1) since the introduction of the act, the principal recipients of the disputed funds have agreed to pay the remaining 47 states and the District of Columbia part of the unclaimed funds; (2) in return, the intervening parties have agreed not to pursue or support legislation to change current escheat rules; (3) a Supreme Court decision held that the unclaimed securities distributions should escheat to the state in which the financial intermediary is incorporated; and (4) the proposed legislation would have adopted a special master's recommendation that the distributions should escheat to the state in which the security's issuer has its principle domestic executive office.