You are dealing with what is known as an escheatment issue. If you hold an
asset that does not belong to you (the former partner's investment value),
the value eventually must be transferred to the State. This is a common
issue in business where a company may have a credit for a product return or
an overpayment on an invoice. If the company files bankruptcy or goes out of
business before recouping the money - eventually there needs to be a
transfer to the State.

I would make every attempt to get the former member her money as your club
is carrying this value as a liability at the present time.



"escheatment"
The process of turning over unclaimed or abandoned property to a state
authority, such as if a person dies without a will.




-----Original Message-----
From: Ernie Habicht [mailto:financialfreedom99@bivio.com]
Sent: Wednesday, July 23, 2003 2:24 PM
To: club_cafe@bivio.com
Subject: club_cafe: Withdrawal check not cashed


We had a member withdraw who did not cash her withdrawal
check. The funds were returned to our brokerage account
after a year. How do we record this in Bivio? Is this
something for a suspense account?

The former member has since moved across the country and we
are having a hard time contacting her. In the meantime, we
are earning interest on her funds in our brokerage account.

We know she did receive the check when we originally issued
it. I guess she just forgot to cash it. What are the
responsibilities of our club in a situation like this?

Any advice is greatly appreciated.

Thanks,
Ernie