Delaware Code

12 Del. C. § 1175 (2026)

Evidence of debt or undischarged obligation

✓ current as of May 2026
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(a) A record showing an unpaid debt or undischarged obligation is prima facie evidence of an obligation. In claiming property from a holder, the State Escheator’s burden of proof as to the existence and amount of the property and its abandonment is satisfied by showing evidence of the unpaid debt or undischarged obligation and passage of the requisite period of abandonment.

(b) A holder may overcome prima facie evidence under subsection (a) of this section by establishing by a preponderance of the evidence that 1 of the following occurred:

(1) A check, draft, or similar instrument was issued as an unaccepted offer in settlement of an unliquidated amount.

(2) A check, draft, or similar instrument was issued but later was replaced with another instrument because the earlier instrument was lost or contained an error that was corrected.

(3) A check, draft, or similar instrument was issued to a party affiliated with the issuer.

(4) A check, draft, or similar instrument was paid, satisfied, or discharged.

(5) A check, draft, or similar instrument was issued in error.

(6) A check, draft, or similar instrument was issued without consideration.

81 Del. Laws, c. 1, § 2
Notes of Decisions
Cited in 1 case, 2020–2020 · leading case: State of Delaware, Dep't of Fin. v. AT&T, Inc. (Del. Ch. 2020).
State of Delaware, Dep't of Fin. v. AT&T, Inc. (Del. Ch. 2020). “” 12 Del. C. § 1175(a). AT&T also contends that because it is already subject to regulatory and financial oversight, this court should infer that “AT&T only voids a check because it is not owed[,] not a true liability.”
— 12 Del. C. § 1175(a) — 1 case
State of Delaware, Dep't of Fin. v. AT&T, Inc. (Del. Ch. 2020). “” 12 Del. C. § 1175(a). AT&T also contends that because it is already subject to regulatory and financial oversight, this court should infer that “AT&T only voids a check because it is not owed[,] not a true liability.”
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