An involuntary Chapter VII bankruptcy petition was filed against Yellow Poplar Lumber Company, Inc. under the Bankruptcy Act of 1898. The case was closed and then later reopened when the bankruptcy estate received proceeds from gas wells on property Yellow Poplar had an interest in at the time of its bankruptcy. The Trustee was left with $422,857.12 in unclaimed funds, which were transmitted to the Clerk of this Court. The issue before the Court is which version of Section 66 of the Bankruptcy Act applied: the 1956 version or the version in effect when the bankruptcy case was pending. The statute, as amended in 1956, provided that unclaimed funds were not subject to escheat under the laws of any state. The State of South Carolina asserted that under the pre-1956 version the funds are subject to escheat back to individual States where deceased shareholders who left no heirs were located. While Yellow Poplar went bankrupt in 1928, the natural gas royalties that give rise to the unclaimed funds did not manifest themselves until many decades after the case was closed. Since the funds did not exist prior to 1956, and therefore could not have escheated to any state prior to the date of amendment, the Court held that the 1956 amendment to Section 66 applies. As the unclaimed funds are not subject to escheat, the Court denied the State of South Carolina’s motion to pay the unclaimed funds into the registry of the court and then transfer the case and the funds back to the District of South Carolina.