How does a Mississippi city handle unclaimed cash found by police, and does a court order have to authorize transfer to the city general fund?

Plain-English summary

In October 2023, the Sturgis Police Department got a call about suspicious activity at a Dollar General. The chief found $11,180 in cash in a bathroom trashcan. The Dollar General did not claim the money. The chief took custody of it and turned it over to the Oktibbeha County Sheriff's Department for safekeeping. No owner has ever come forward, and the money is not part of any criminal investigation or seizure. The county attorney asked how to legally move the money out of evidence storage and into a public fund.

The AG identified Section 21-39-21 as the governing statute. The statute applies when a municipal officer receives or recovers "any lost, stolen, abandoned or misplaced personal property." "Personal property" includes cash, per Section 1-3-41's general definition. So the cash here is within the statute.

The procedure: post notice in three public places in the municipality describing the property; if the owner is known, also mail the notice. The owner has 120 days from the date of notice to claim the property. If no one claims it within 120 days, the statute requires public auction. But here, the property is cash, which cannot be sold. So after the notice period, the cash is deposited directly into the municipality's general fund (no auction needed because cash has no resale step).

Section 21-39-21 does not contemplate transferring the money to a law enforcement agency's general fund. The destination is the municipal general fund. The statute does not require a court order, county court or otherwise, to authorize the deposit.

The AG noted that since the owner is unknown, the Uniform Disposition of Unclaimed Property Act (Sections 89-12-1 et seq.) does not apply. That Act applies when there is a known holder of property belonging to an unknown owner; the found-money scenario here is different.

What this means for you

For police chiefs and city attorneys

The opinion holds that if the city makes the factual determination that the cash is "abandoned property," the governing procedure is Section 21-39-21: notice posted in three public places, a 120-day claim period, and, because cash cannot be sold, direct deposit into the municipal general fund without an auction. It holds no county-court order or other judicial order is required, and it recommends contacting the Office of the State Auditor for advice on applying the procedure.

For sheriffs holding found cash on behalf of a municipality

The opinion holds that Section 21-39-21 routes the funds to the municipality's general fund and does not contemplate depositing the money with a law enforcement agency. On these facts, the Sturgis Police Department found the money and the sheriff's department held it for safekeeping.

For municipal clerks

Section 21-39-21 provides that, after a sale, the designated officer delivers to the municipal clerk the notice, a list of property sold, the amounts received, and the buyers, and the clerk deposits the money in the general fund and files the records. The opinion holds that for cash, the funds are deposited into the general fund directly, without a sale.

For police departments hoping to put found cash into their own budget

The opinion holds that Section 21-39-21 routes the funds to the municipal general fund, not to a law enforcement agency. The question presented concerned cash that was not part of any criminal investigation or seizure.

Common questions

Does Section 21-39-21 apply to cash, not just to physical items?

Yes. Section 1-3-41 generally defines "personal property" to include cash, and the AG specifically applied Section 21-39-21 to cash in MS AG Op., Murdock (Aug. 24, 2007) (money found and turned in to the Gulfport Police Department).

What is the notice procedure?

Post notice in three public places in the municipality. The notice has to contain "an accurate and detailed description of such property." If the city knows who the owner is, also mail the owner a copy of the notice.

How long does the owner have to claim the property?

120 days from the date the notice is given.

What happens after 120 days if no one claims the cash?

For ordinary personal property, the statute requires public auction with at least 10 days' advance notice posted in three public places. For cash, which cannot be sold, the cash goes directly into the municipal general fund after the notice period without an auction step.

Does a county court judge have to sign off on the transfer?

No. Section 21-39-21 does not require a court order from a county court judge or any other judicial officer.

Can the law enforcement agency keep the cash for its own budget?

No. The opinion holds that Section 21-39-21 routes the funds to the municipality's general fund and does not contemplate depositing the money with a law enforcement agency. The question here concerned cash that was not part of any criminal investigation or seizure.

What about the Uniform Disposition of Unclaimed Property Act?

The UDUPA, Sections 89-12-1 et seq., applies when there is a known holder (a bank, an insurance company, etc.) of property belonging to an unknown owner. That is not the situation here, where the owner of the found cash itself is unknown. So UDUPA does not apply.

Background and statutory framework

Section 21-39-21, municipal disposition of lost, stolen, abandoned, or misplaced personal property. When a marshal, police, or other municipal officer recovers such personal property, the municipality posts notice in three public places. The owner has 120 days to claim. If no one claims within 120 days, the property is sold at public auction with at least 10 days' notice. Sale proceeds go to the municipal general fund.

Section 1-3-41. Defines "personal property" generally to include cash.

MS AG Op., Stewart (May 20, 2005). The finder of lost property does not acquire absolute ownership but has a property interest as against all but the rightful owner.

MS AG Op., Murdock (Aug. 24, 2007). Section 21-39-21 applies to money found and turned in to a municipal police department.

Sections 89-12-1 et seq., Uniform Disposition of Unclaimed Property Act. Applies when a known holder is in possession of property belonging to an unknown owner. Does not apply when the owner of the found property itself is unknown.

Citations

• Miss. Code Ann. § 21-39-21
• Miss. Code Ann. § 1-3-41
• Miss. Code Ann. §§ 89-12-1 et seq.
• MS AG Op., Stewart (May 20, 2005)
• MS AG Op., Murdock (Aug. 24, 2007)

Source

• Landing page: https://attorneygenerallynnfitch.com/divisions/opinions-and-policy/recent-opinions/
• Original PDF: https://attorneygenerallynnfitch.com/wp-content/uploads/2024/12/R.-Roberson-November-22-2024-Money-Found-by-Law-Enforcement.pdf

Original opinion text

November 22, 2024
Mr. Rob Roberson, Esq.
Attorney, Oktibbeha County
212 East Main Street
Starkville, Mississippi 39759
Re:

Money Found by Law Enforcement

Dear Mr. Roberson:
The Office of the Attorney General has received your request for an official opinion.
Background
According to your request, around October 2023, after receiving a call regarding suspicious
activity, the Chief of Police for the Sturgis Police Department found $11,180.00 in a bathroom
trashcan at the Dollar General in Sturgis, Mississippi. The Chief verified with the general manager
that the money did not belong to the Dollar General. The Chief then took the money into custody
and handed it over to the Oktibbeha County Sherrif's Department for holding. Every effort has
been made to locate the owner, but no one has claimed the money. Finally, according to our phone
conversation, the subject money has not been part of any criminal investigation or seizure.
Questions Presented

1. What is the proper procedure for transferring money found by a law enforcement agency
   — that has not been claimed — to the law enforcement agency's general fund?
2. Does a county court judge have to sign an order to transfer the found money to the law
   enforcement agency?
   Brief Response
3. If the factual determination is made that the subject money is "abandoned property," the
   proper procedure for handling the same would be the procedures set forth in Mississippi
   Code Annotated Section 21-39-21. For additional advice on how to apply these procedures,
   we would recommend contacting the Office of the State Auditor.
4. Section 21-39-21 does not contemplate depositing the money with a law enforcement
   agency nor does it require an order from a county court judge.
   Applicable Law and Discussion
   This office has previously noted that "[g]enerally, the finder of lost property does not acquire
   absolute ownership, but acquires such property interest or right as will enable him to keep it against
   all the world but the rightful owner." MS AG Op., Stewart at 2 (May 20, 2005) (citing 1 Am. Jur.
   2d Abandoned, Lost, and Unclaimed Property section 18 (2004)). We have also advised that
   Section 21-39-21 addresses the way municipalities should handle lost, stolen, abandoned, or
   misplaced personal property and is applicable to found money or cash. See MS AG Op., Murdock
   at 2 (Aug. 24, 2007) (discussing Section 21-39-21's applicability to money found by an individual
   and turned in to the Gulfport Police Department). Although Chapter 39 does not define "personal
   property," pursuant to Section 1-3-41, which is generally applicable to every statute, "personal
   property . . . means all tangible and intangible personal property and shall include cash."
   Section 21-39-21 provides in relevant part,
   The governing authorities of any municipality, upon the receipt or recovery of any
   lost, stolen, abandoned or misplaced personal property by the marshal, police or
   other officers of such municipality, shall cause to be posted, in three (3) public
   places in the municipality, notice that such property has been received or
   recovered. Such notice shall contain an accurate and detailed description of such
   property and, if the governing authorities are advised as to who owns such property,
   a copy of such notice shall be mailed to such person or persons in addition to being
   posted as herein required. The owner of such property may recover the same by
   filing a claim with the governing authorities of the municipality and establishing
   his right thereto.
   ...
   If no person claims the property within one hundred twenty (120) days from the
   date the notice provided for above is given, the governing authorities of the
   municipality shall cause the same to be sold at public auction to the highest bidder
   for cash after first posting notice of such sale in three (3) public places in the
   municipality at least ten (10) days preceding the date of such sale. The notice shall
   contain a detailed and accurate description of the property to be sold and shall be
   addressed to the unknown owners or other persons interested in the property to be
   sold. The notice shall also set forth the date, time and place such sale is to be
   conducted and shall designate the person who is to make the sale, which person
   shall be some official designated by the governing authorities of the municipality.
   ...

The person or officer designated and making the sale of such property shall
promptly upon completion of the sale deliver to the clerk of the municipality a copy
of the notice authorizing the sale, a list of the property sold, the amount paid for
each item, the person to whom each item was sold, and all monies received from
such sale, whereupon, the clerk shall deposit the monies in the general fund of the
municipality and shall file the information concerning the sale among the other
records of his office.
(emphasis added).
As stated supra, you have indicated that the subject money has not been part of any criminal
investigation or procedure but rather was found by the Sturgis Police Department, which has not
been able to locate the owner. It is thus the opinion of this office that if Sturgis makes the factual
determination that the subject money is "abandoned property," the proper procedure for handling
the same would be the procedure set forth in Section 21-39-21. We recognize that the subject
personal property is money, which cannot be sold. Accordingly, after providing the requisite
notice, the money could be directly deposited — without an actual sale — into the municipality's
general fund as set forth in Section 21-39-21.
Finally, Section 21-39-21 does not contemplate depositing the money with a law enforcement
agency nor does it require an order by a judge, county court, or otherwise. If you have additional
questions on how to apply procedures set forth in Section 21-39-21, we recommend contacting the
Office of the State Auditor.
If this office may be of any further assistance to you, please do not hesitate to contact us.
Sincerely,
LYNN FITCH, ATTORNEY GENERAL
By:

/s/ Maggie Kate Bobo
Maggie Kate Bobo
Special Assistant Attorney General

Because the owner of the subject money is unknown, the Uniform Disposition of Unclaimed Property Act,
Sections 89-12-1, et. seq., is not applicable here.