Q: Do uncashed refund checks for spay/neuter deposits still constitute a debt in NC?
I run a company in North Carolina that requires a deposit from adopters, which is refunded upon providing proof of spay/neuter surgery. Many refund checks issued to adopters remain uncashed. Although our contract requires proof within a year to avoid forfeiture of the deposit, it does not address the expiration of refund checks. We make several attempts to contact these adopters via email and voicemail, with informal notes documenting these communications. We've used escheatment for unclaimed checks before but are unsure if it's necessary in this context. Do we still owe the money if the checks remain uncashed, or does the escheatment law in NC apply here?
Lawyers, want to be a Justia Connect Pro too? Learn more ›
- (916) 704-3009
- View Profile
- Answered
A:
In North Carolina, uncashed refund checks can still be considered a debt owed to the adopters until the money is claimed or lawfully forfeited. Since your contract specifies that the deposit must be refunded upon proof of spay/neuter surgery, the obligation to pay the refund generally remains in effect unless the adopters forfeit their right to the refund due to the passage of time. The issue of the uncashed checks, however, adds complexity to the matter.
The state’s escheatment law, which deals with unclaimed property, may apply in this situation. According to the law, if checks remain uncashed for a certain period, typically five years, they must be reported and turned over to the state as unclaimed property. You are required to make a good-faith effort to contact the adopters, which you have done through emails and voicemails, but if the checks are not cashed within the specified time frame, escheatment would likely apply.
If you have already used escheatment for other unclaimed checks, you may need to follow the same process for these uncashed refund checks. It is important to ensure compliance with North Carolina’s unclaimed property laws and to maintain thorough records of your attempts to contact the adopters.
Justia Ask A Lawyer is a forum for consumers to get free answers to basic legal questions. Any information sent through Justia Ask A Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between Justia and you, or between any attorney who receives your information or responds to your questions and you, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask A Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises, or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
