Whether they are mining or gas royalties or music related royalties, royalty payments to owners that remain uncashed are subject to state unclaimed property laws. Furthermore, uncashed royalty payments must be escheated to the appropriate state and cannot remain with a membership organization, such as the Screen Actors Guild, even if such funds benefit the membership at large. (Screen Actors Guild v. Cory, 91 Cal.App.3d 111 (1979))
Vee Jay Limited Partnership is finding out the hard way as they are subject to a lawsuit filed last week in the Northern District of California. The R&B group known as The Dells have sued for amounts in excess of $75,000 for royalties.