CHAPTER 3CASE ADMINISTRATION
Sub Chapter III Administration
Sec. 347. Unclaimed property
(a) Ninety days after the final distribution under section 726,
1226, or 1326 of this title in a case under chapter 7, 12, or 13 of this
title, as the case may be, the trustee shall stop payment on any check
remaining unpaid, and any remaining property of the estate shall be paid
into the court and disposed of under chapter 129 of title 28.
(b) Any security, money, or other property remaining unclaimed at
the expiration of the time allowed in a case under chapter 9, 11, or 12
of this title for the presentation of a security or the performance of
any other act as a condition to participation in the distribution under
any plan confirmed under section 943(b), 1129, 1173, or 1225 of this
title, as the case may be, becomes the property of the debtor or of the
entity acquiring the assets of the debtor under the plan, as the case
(Pub. L. 95-598, Nov. 6, 1978, 92 Stat. 2568; Pub. L. 99-554, title II,
Sec. 257(h), Oct. 27, 1986, 100 Stat. 3114.)
Historical and Revision Notes
Section 347(a) of the House amendment adopts a comparable provision
contained in the Senate amendment instructing the trustee to stop
payment on any check remaining unpaid more than 90 days after the final
distribution in a case under Chapter 7 or 13. Technical changes are made
in section 347(b) to cover distributions in a railroad reorganization.
senate report no. 95-989
Section 347 is derived from Bankruptcy Act Sec. 66 [section 106 of
former title 11]. Subsection (a) requires the trustee to stop payment on
any distribution check that is unpaid 90 days after the final
distribution in a case under chapter 7 or 13. The unclaimed funds, and
any other property of the estate are paid into the court and disposed of
under chapter 129 [Sec. 2041 et seq.] of title 28, which requires the
clerk of court to hold the funds for their owner for 5 years, after
which they escheat to the Treasury.
Subsection (b) specifies that any property remaining unclaimed at
the expiration of the time allowed in a chapter 9 or 11 case for
presentation (exchange) of securities or the performance of any other
act as a condition to participation in the plan reverts to the debtor or
the entity acquiring the assets of the debtor under the plan. Conditions
to participation under a plan include such acts as cashing a check,
surrendering securities for cancellation, and so on. Similar provisions
are found in sections 96(d) and 205 of current law [sections 416(d) and
605 of former title 11].
1986--Subsec. (a). Pub. L. 99-554, Sec. 257(h)(1), inserted
references to section 1226 and chapter 12 of this title.
Subsec. (b). Pub. L. 99-554, Sec. 257(h)(2), inserted references to
chapter 12 and section 1225 of this title.
Effective Date of 1986 Amendment
Amendment by Pub. L. 99-554 effective 30 days after Oct. 27, 1986,
but not applicable to cases commenced under this title before that date,
see section 302(a), (c)(1) of Pub. L. 99-554, set out as a note under
section 581 of Title 28, Judiciary and Judicial Procedure.
Section Referred to in Other Sections
This section is referred to in section 901 of this title.