AUTHORITY: Implementing and authorized by the Revised Uniform Unclaimed Property Act [765 ILCS 1026].

SOURCE: Filed November 20, 1977; emergency amendment at 3 Ill. Reg. 39, p. 225, effective September 14, 1979, for a maximum of 150 days; amended at 3 Ill. Reg. 48, p. 153, effective November 20, 1979; rules repealed, new rules adopted and codified at 8 Ill. Reg. 1464, effective January 18, 1984; amended at 15 Ill. Reg. 8555, effective May 24, 1991; amended at 17 Ill. Reg. 123, effective December 21, 1992; emergency amendment at 17 Ill. Reg. 6321, effective April 6, 1993; amended at 17 Ill. Reg. 9893, effective June 21, 1993; amended at 18 Ill. Reg. 18001, effective December 12, 1994; amended at 20 Ill. Reg. 8325, effective June 8, 1996; recodified from the Department of Financial Institutions (38 Ill. Adm. Code 180) to the State Treasurer, pursuant to PA 91-16, at 26 Ill. Reg. 8164; emergency amendment at 28 Ill. Reg. 13919, effective October 5, 2004, for a maximum of 150 days; emergency expired March 3, 2005; amended at 36 Ill. Reg. 12162, effective July 12, 2012; amended at 37 Ill. Reg. 5886, effective April 18, 2013; amended at 40 Ill. Reg. 16804, effective December 19, 2016; old Part repealed at 43 Ill. Reg. 4251 and new Part adopted at 43 Ill. Reg. 4253, effective March 25, 2019; emergency amendment at 44 Ill. Reg. 5489, effective March 16, 2020, for a maximum of 150 days; amended at 44 Ill. Reg. 6403, effective April 8, 2020; amended at 46 Ill. Reg. 16898, effective September 26, 2022.

SUBPART A: DEFINITIONS

 

Section 760.100  Definitions

 

"Act" or "Revised Act" means the Revised Uniform Unclaimed Property Act [765 ILCS 1026].

 

"Administrator" means the State Treasurer.

 

"Administrator's Agent" or "Auditor" means a person with whom the administrator contracts to conduct an examination under Article 10 of the Act on behalf of the administrator. The term includes an independent contractor of the person and each individual participating in the examination on behalf of the person or contractor.  [765 ILCS 1026/15-102]

 

"Affiliated Group of Merchants" means 2 or more affiliated merchants or other persons that are related by common ownership or common corporate control and that share the same name, mark, or logo. The term also applies to 2 or more merchants or other persons that agree among themselves, by contract or otherwise, to redeem cards, codes, or other devices bearing the same name, mark, or logo (other than the mark, logo, or brand of a payment network), for the purchase of goods or services solely at such merchants or persons. However, merchants or other persons are not considered to be affiliated merely because they agree to accept a card that bears the mark, logo, or brand of a payment network.

 

"Apparent Owner" means a person whose name appears on the records of a holder as the owner of property held, issued or owing by the holder.

 

"Business Association" means a corporation, joint stock company, investment company, unincorporated association, joint venture, limited liability company, business trust, trust company, land bank, safe deposit company, safekeeping depository, financial organization, insurance company, federally chartered entity, utility, sole proprietorship, or other business entity, whether or not for profit.

 

"Confidential Information" means information that is "personal information" under the Personal Information Protection Act [815 ILCS 530/5], "private information" under the Freedom of Information Act [5 ILCS 140/2(c-5)], or personal information contained within public records, the disclosure of which would constitute a clearly unwarranted invasion of personal privacy, unless the disclosure is consented to in writing by the individual subjects of the information as provided in the Freedom of Information Act [5 ILCS 140/7(1)(c)].

 

"Domicile" means:

 

for a corporation, the state of its incorporation;

 

for a business association whose formation requires a filing with a state, other than a corporation, the state of its filing;

 

for a federally chartered entity or an investment company registered under the Investment Company Act of 1940 (15 U.S.C. 80a-1 through 80a-63), the state of its home office; and

 

for any other holder, the state of its principal place of business.  [765 ILCS 1026/15-102]

 

"DOR" means the Illinois Department of Revenue.

 

"Electronic" means relating to technology having electrical, digital, magnetic, wireless, optical, electromagnetic or similar capabilities.

 

"Electronic Mail" or "E-mail" means a communication by electronic means that is automatically retained and stored and may be readily accessed or retrieved.

 

"Escheat Fee" means any charge imposed solely by virtue of property being reported as presumed abandoned.

 

"Financial Organization" means a bank, savings bank, foreign bank, corporate fiduciary, currency exchange, money transmitter, or credit union.  [765 ILCS 1026/15-102]

 

"Former Act" means the Uniform Disposition of Unclaimed Property Act [765 ILCS 1025], repealed effective January 1, 2018.

 

"Game-Related Digital Content" means digital content that exists only in an electronic game or electronic game platform. The term includes:

 

game-play currency such as a virtual wallet, even if denominated in United States currency;

 

the following, if for use or redemption only within the game or platform or another electronic game or electronic game platform:

 

points sometimes referred to as gems, tokens, gold and similar names; and

 

digital codes; and

 

does not include an item that the issuer:

 

permits to be redeemed for use outside a game or platform for money or goods/services that have more than minimal value; or

 

otherwise monetizes for use outside a game or platform.

 

"Gift Card" means a record evidencing a promise made for consideration by the seller or issuer of the record that goods, services or money will be provided to the owner of the record to the value or amount shown in the record that is either:

 

a record:

 

issued on a prepaid basis primarily for personal, family or household purposes to a consumer in a specified amount;

 

the value of which does not expire;

 

that is not subject to a dormancy, inactivity or post-sale service fee;

 

that is redeemable upon presentation for goods or services; and

 

that, unless required by law, may not be redeemed for or converted into money or otherwise monetized by the issuer; or

 

a prepaid commercial mobile radio service, as defined in 47 CFR 20.3.

 

"Holder" means a person obligated to hold for the account of, or to deliver or pay to, the owner, property subject to the Act.

 

"Insurance Company" means an association, corporation or fraternal or mutual-benefit organization, whether or not for profit, engaged in the business of providing life endowments, annuities or insurance, including accident, burial, casualty, credit-life, contract performance, dental, disability, fidelity, fire, health, hospitalization, illness, life, malpractice, marine, mortgage, surety, wage protection, and workers' compensation insurance.

 

"Loyalty Card" means a record given without direct monetary consideration under an award, reward, benefit, loyalty, incentive, rebate, or promotional program that may be used or redeemed only to obtain goods or services or a discount on goods or services. The term does not include a record that may be redeemed for money or otherwise monetized by the issuer.  [765 ILCS 1026/15-102]

 

"Merchandise Credit" means in-store credit for returned merchandise redeemable for merchandise, goods or services upon presentation at a single merchant or an affiliated group of merchants.

 

"Mineral" means gas, oil, coal, oil shale, other gaseous liquid or solid hydrocarbon, cement material, sand and gravel, road material, building stone, chemical raw material, gemstone, fissionable and nonfissionable ores, colloidal and other clay, steam and other geothermal resources, and any other substance defined as a mineral by other law of this State.

 

"Mineral Proceeds" means an amount payable for extraction, production, or sale of minerals, or, on the abandonment of the amount, an amount that becomes payable after abandonment. The term includes an amount payable:

 

for the acquisition and retention of a mineral lease, including a bonus, royalty, compensatory royalty, shut-in royalty, minimum royalty, and delay rental;

 

for the extraction, production or sale of minerals, including a net revenue interest, royalty, overriding royalty, extraction payment, and production payment; and

 

under an agreement or option, including a joint-operating agreement, unit agreement, pooling agreement, and farm-out agreement.

 

"Money Order" means a payment order for a specified amount of money. The term includes an express money order and a personal money order on which the remitter is the purchaser.

 

"Municipal Bond" means a bond or evidence of indebtedness issued by a municipality or other political subdivision of a state.

 

"Net Card Value" means the original purchase price or original issued value of a stored-value card, plus amounts added to the original price or value, minus amounts used and any service charge, fee, or dormancy charge permitted by law.

 

"Non-Freely Transferable Security" means a security that cannot be delivered to the administrator by the Depository Trust Clearing Corporation or similar custodian of securities providing post-trade clearing and settlement services to financial markets or cannot be delivered because there is no agent to effect transfer. The term includes a worthless security.  [765 ILCS 1026/15-102]

 

"Online sports wagering" means internet sports gaming and sports betting that is subject to the applicable laws administered by the Illinois Gaming Board under the Sports Wagering Act [230 ILCS 45] and the Illinois Racing Board under the Illinois Horse Racing Act of 1975 [230 ILCS 5].

 

"Owner", unless the context otherwise requires, means a person that has a legal, beneficial, or equitable interest in property subject to the Act or the person's legal representative when acting on behalf of the owner. The term includes:

 

a depositor, for a deposit;

 

a beneficiary, for a trust other than a deposit in trust;

 

a creditor, claimant or payee, for other property; and

 

the lawful bearer of a record that may be used to obtain money, a reward, or a thing of value.

 

"Payroll Card" means a record that evidences a payroll-card account as defined in 12 CFR 1005 (Regulation E).  [765 ILCS 1026/15-102]

 

"Payroll-Card Account" is an account that is directly or indirectly established through an employer and to which electronic fund transfers of the consumer's wages, salary or other employee compensation (such as commissions) are made on a recurring basis, whether the account is operated or managed by the employer, a third-party payroll processor, a depository institution, or any other person.

 

"Person" means an individual, estate, business association, public corporation, government or governmental subdivision, agency, or instrumentality, or other legal entity, whether or not for profit.

 

"Property" means tangible property described in Section 15-201 of the Act or a fixed and certain interest in intangible property held, issued, or owed in the course of a holder's business or by a government, governmental subdivision, agency or instrumentality. The term:

 

includes all income from or increments to the property;

 

includes property referred to as or evidenced by:

 

money, virtual currency, interest, or a dividend, check, draft, deposit or payroll card;

 

a credit balance, customer's overpayment, stored-value card, security deposit, refund, credit memorandum, unpaid wage, unused ticket for which the issuer has an obligation to provide a refund, mineral proceeds, or unidentified remittance;

 

a security except for:

 

a worthless security; or

 

a security that is subject to a lien, legal hold, or restriction evidenced on the records of the holder or imposed by operation of law, if the lien, legal hold, or restriction restricts the holder's or owner's ability to receive, transfer, sell, or otherwise negotiate the security;

 

a bond, debenture, note, or other evidence of indebtedness;

 

money deposited to redeem a security, make a distribution, or pay a dividend;

 

an amount due and payable under an annuity contract or insurance policy;

 

an amount distributable from a trust or custodial fund established under a plan to provide health, welfare, pension, vacation, severance, retirement, death, stock purchase, profitsharing, employee savings, supplemental unemployment insurance, or a similar benefit; and

 

any instrument on which a financial organization or business association is directly liable; and

 

does not include:

 

game related digital content;

 

a loyalty card;

 

a gift card; or

 

funds on deposit or held in trust pursuant to Section 16 of the Illinois Pre-Need Cemetery Sales Act. [815 ILCS 390]

 

"Putative Holder" means a person believed by the administrator to be a holder, until the person pays or delivers to the administrator property subject to the Act, or the administrator or a court makes a final determination that the person is or is not a holder.

 

"Record" means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form.

 

"Records of the Holder" includes records maintained by a third party that has contracted with the holder.

 

"Security" means:

 

a security as defined in Article 8 of the Uniform Commercial Code [810 ILCS 5/8-102];

 

a security entitlement as defined in Article 8 of the Uniform Commercial Code, including a customer security account held by a registered broker-dealer, to the extent the financial assets held in the security account are not:

 

registered on the books of the issuer in the name of the person for which the broker-dealer holds the assets;

 

payable to the order of the person; or

 

specifically indorsed to the person; or

 

an equity interest in a business association not included in the above paragraph.

 

"Sign" means, with present intent to authenticate or adopt a record:

 

to execute or adopt a tangible symbol; or

 

to attach to or logically associate with the record an electronic symbol, sound or process.

 

"State", when not limited to the State of Illinois, means a state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, the United States Virgin Islands, or any territory or insular possession subject to the jurisdiction of the United States. When capitalized, the term "State" means the State of Illinois.  [765 ILCS 1026/15-102]

 

"State Treasurer" means the duly elected Treasurer of the State of Illinois.

 

"Stored-Value Card" means a card, code, or other device that is:

 

issued on a prepaid basis primarily for personal, family, or household purposes to a consumer in a specified amount, whether or not that amount may be increased or reloaded in exchange for payment; and

 

redeemable upon presentation at multiple unaffiliated merchants for goods or services or usable at automated teller machines;

 

Stored value card does not include a gift card, payroll card, loyalty card, or game related digital content.

 

"Utility" means a person that owns or operates for public use a plant, equipment, real property, franchise, or license for the following public services:

 

transmission of communications or information;

 

production, storage, transmission, sale, delivery, or furnishing of electricity, water, steam or gas; or

 

provision of sewage or septic services, or trash, garbage or recycling disposal.

 

"Virtual Currency" means any type of digital unit, including cryptocurrency used as a medium of exchange, unit of account, or a form of digitally stored value that does not have legal tender status recognized by the United States. The term does not include:

 

the software or protocols governing the transfer of the digital representation of value;

 

game related digital content; or

 

a loyalty card or gift card.

 

"Worthless Security" means a security whose cost of liquidation and delivery to the administrator would exceed the value of the security on the date a report is due under the Act. [765 ILCS 1026/15-102]

 

(Source:  Amended at 46 Ill. Reg. 16898, effective September 26, 2022)

SUBPART B: PRESUMPTION OF ABANDONMENT

 

Section 760.200  Tax-Deferred and Tax-Exempt Accounts

 

a)         Sections 15-202 and 15-203 of the Act indicate when "tax deferred" and "tax exempt" accounts are presumptively abandoned. Section 15-202 prescribes the rules for tax deferred and tax exempt retirement accounts and Section 15-203 prescribes the rules for other tax deferred accounts. These rules for tax deferred and tax exempt accounts generally have longer periods of abandonment than accounts covered by Section 15-201 of the Act.

 

b)         A Roth IRA is covered under Section 15-202.

 

c)         In some cases, federal law, specifically ERISA (29 U.S.C. 1001 et seq.), may preempt the Act and prevent reporting and remitting retirement accounts or other property representing a retirement plan asset that would otherwise be reportable under the Act. Concerning ERISA preemption and unclaimed property statutes, see Commonwealth Edison Co. v. Vega, 174 F.3d 870 (7^th Cir. 1999). Nonqualified, government and church plans are not subject to an ERISA preemption, nor are uncashed plan distribution checks issued by a qualified plan that lacks, or has failed to exercise, a forfeiture or other reversionary interest.

 

d)         If a holder is uncertain whether an account qualifies as tax deferred or tax exempt under the Act (i.e., whether the account is covered by Section 15-201 or by Sections 15-202 and 15-203), whether ERISA preempts the Act for a retirement account, or whether an account is covered by Section 15-202 or Section 15-203, the holder may specifically identify the property in a report filed with the administrator or give express notice to the administrator of a potential dispute regarding the property. Specifically identifying the property in a report or providing express notice to the administrator both ensures that the property will be covered by the limitations period of Section 15-610 of the Act and demonstrates that the holder is attempting to comply with the Act in good faith and without negligence. Specifically identifying the property in a report filed with the administrator indicating that the property is not being remitted because ERISA preemption allows a holder to satisfy both its fiduciary obligation under ERISA, which would generally prohibit remitting the property to the administrator, and any obligation under the Act.

 

e)         Pursuant to Section 15-405 of the Act (property reportable and payable or deliverable absent owner demand provision) and Section 15-610(a) of the Act (anti-limitations provision) a nonqualified plan or plan not otherwise subject to preemption under ERISA is prohibited from forfeiting an account or other property.

 

f)         The administrator will accept missing participants' account balances reported and remitted by an ERISA plan fiduciary for a terminated defined contribution plan. See United States Department of Labor Field Assistance Bulletin No. 2014-01 (available at www.dol.gov/agencies/ebsa/employers-and-advisers/guidance/field-assistance-bulletins), which indicates that, despite the ERISA preemption for ongoing plans, a plan fiduciary may report and remit "missing participants' account balances under a state's unclaimed property statute to complete the plan termination process".

 

(Source:  Amended at 46 Ill. Reg. 16898, effective September 26, 2022)

 

Section 760.210  Safe Deposit Boxes

 

a)         Safe deposit boxes with contents that have remained unclaimed for 5 years after expiration of the lease or rental period are presumed abandoned. [765 ILCS 1026/15-205] Presumptively abandoned boxes shall be opened and inventoried in the presence of at least two employees of the holder who shall verify the accuracy of the inventory. The property shall then be sealed for safekeeping until delivered to the owner or the administrator.

 

b)         The Annual Report containing information about the contents of safe deposit boxes must be filed before November 1, for financial organizations, and before May 1, for all other business associations, in the year in which the report is due. The Annual Report is to be submitted online. If a holder provides safe deposit boxes, then the Annual Report must be completed in its entirety, verified for accuracy, and filed regardless of whether a holder has abandoned safe deposit boxes to report. A "negative report" indicating no safe deposit box contents are being reported and remitted serves as a control to assist in detecting and preventing fraud or theft.

 

c)         Notice to the apparent owner must be given prior to remittance to the administrator.

 

1)         The holder of property presumed abandoned shall send to the apparent owner notice by first-class United States mail that complies with Section 15-502 of the Act in a format acceptable to the administrator not more than one year nor less than 60 days before filing the Annual Report under Section 15-401 of the Act if:

 

A)        the holder has in its records an address for the apparent owner that the holder's records do not disclose to be invalid and is sufficient to direct the delivery of first-class United States mail to the apparent owner; and

 

B)        the value of the property is $50 or more.

 

2)         If an apparent owner has consented to receive electronic-mail delivery from the holder, the holder shall send the notice both by first-class United States mail to the apparent owner's last-known mailing address and by electronic mail, unless the holder believes that the apparent owner's electronic-mail address is invalid. [765 ILCS 1026/15-501]

 

d)         Tangible property from a safe deposit box may not be delivered to the administrator until a mutually agreed upon date that is no sooner than 60 days after filing the Annual Report. [765 ILCS 1026/15-603(b)]

 

1)         All safe deposit box shipments shall include a full copy of the previously submitted Annual Report. The Annual Report shall list all properties included and an inventory of each property.

 

2)         Each property shall be provided in a tamper evident bag or envelope. An inventory sheet for each specific property shall be attached to or enclosed in the bag or envelope.

 

3)         When remitting multiple properties at the same time, each property shall be in a separate tamper evident bag or envelope and labeled with the name of the owner. If a single property requires the use of more than one bag/envelope, the bags/envelopes are to be numbered accordingly (i.e., 1 of 3, 2 of 3, etc.).

 

e)         Reimbursement of Holder

 

1)         Property removed from a safe deposit box and delivered to the administrator under the Act is subject to the holder's right to reimbursement for the cost of opening the box and a lien or contract providing reimbursement to the holder for unpaid rent charges for the box. Upon application by the holder, and after there are sufficient cash funds available either from the contents of the box or the sale of the property, the administrator shall reimburse the holder from the proceeds. [765 ILCS 1026/15-606]

 

2)         Holders may only be reimbursed for any costs and charges that were included in the Annual Report listing the contents of the safe deposit box whose owner owes the costs and charges to the holder.

 

3)         It is the responsibility of the holder to apply for reimbursement of costs and charges under Section 15-606 of the Act. The administrator shall make available on the administrator's website a form for holders to apply for reimbursement under Section 15-606 of the Act.

 

4)         If, after the sale of property removed from a safe deposit box and delivered to the administrator, there are not sufficient cash funds available to fully reimburse the holder for costs and charges allowed under Section 15-606 of the Act, the holder may apply to the administrator to be partially reimbursed up to the amount of cash funds available. If, however, the administrator pays all available cash funds to the holder under this subsection (e), the holder may not claim any additional costs and charges from the same safe deposit box.

 

f)         Exceptions to the sale of tangible property.

 

1)         Military medals or decorations. The administrator may not sell a medal or decoration awarded for military service in the armed forces of the United States.

 

2)         Property with historical value. Property that the administrator reasonably believes may have historical value may be, at their discretion, loaned to an accredited museum in the United States where it will be kept until the administrator orders it to be returned to their custody.

 

3)         Human remains. If human remains are delivered to the administrator under the Act, the administrator shall deliver those human remains to the coroner of the county in which the human remains were abandoned for disposition under the Counties Code [55 ILCS 5].

 

4)         Evidence in a criminal investigation. Property that may have been used in the commission of a crime or that may assist in the investigation of a crime, as determined after consulting with the Illinois State Police, shall be delivered to the Illinois State Police or other appropriate law enforcement authority to allow law enforcement to determine whether a criminal investigation should take place.

 

5)         Firearms. The administrator shall deliver to the Illinois State Police any firearm that has been stolen or used in the commission of a crime. Further, if the administrator is unable to return a firearm to its owner, the administrator shall transfer custody of the firearm to the Illinois State Police.

 

6)         Religious artifacts and records. Despite being property that has no substantial commercial value under Section 15-609(a) of the Act, property that the administrator reasonably believes may be a religious artifact or record, which has no substantial commercial value or where the cost of disposing of that property exceeds the value of the property, will be preserved and retained by the administrator until that property is claimed by the owner or the owner's heirs or successors if storage of that property does not unduly burden the administrator.

 

7)         Wills, testamentary instruments, and trust documents. Despite being property that has no substantial commercial value under Section 15-609(a) of the Act, records that the administrator reasonably believes to be an original will, codicil, or other testamentary instrument under the Probate Act of 1975 [755 ILCS 5] or a trust document under the Illinois Trust Code [760 ILCS 3] will be preserved and retained by the administrator until such property is claimed by the owner or by the owner's heirs or successors, if those records are not required to be filed with the clerk of the appropriate court, if storage of those records does not unduly burden the administrator.

 

(Source:  Amended at 46 Ill. Reg. 16898, effective September 26, 2022)

 

Section 760.215  Financial Organizations

 

a)         Demand, Savings, or Time Deposits. A demand, savings, or time deposit is presumed abandoned as follows:

 

1)         a demand deposit, 3 years after the date of the last indication of interest in the property by the apparent owner;

 

2)         a savings deposit, 3 years after the date of last indication of interest in the property by the apparent owner;

 

3)         a time deposit for which the owner has not consented to automatic renewal of the time deposit, 3 years after the later of maturity or the date of the last indication of interest in the property by the apparent owner; and

 

4)         an automatically renewable time deposit for which the owner consented to the automatic renewal in a record to file with the holder, 3 years after the date of last indication of interest in the property by the apparent owner, following the completion of the initial term of the time deposit and one automatic renewal term of the time deposit. [765 ILCS 1026/15-201(6)]

 

b)         Automatically Renewable Deposits

 

1)         General Rule. A deposit that is automatically renewable is presumed abandoned 3 years after the date of last indication of interest in the property by the apparent owner, following the completion of the initial term of the time deposit and one automatic renewal term of the time deposit. [765 ILCS 1026/15-201(6)]

 

2)         Anti-penalty Provision. If property in a report under Section 15-401 of the Act is an automatically renewable time deposit and the holder determines that a penalty or forfeiture in the payment of interest would result from paying the deposit to the administrator at the time of the report, the date for reporting and delivering the property to the administrator is extended until a penalty or forfeiture no longer would result from delivery of the property to the administrator. The holder shall report and deliver the property on the next regular date prescribed for reporting by the holder under Section 15-603(b) of the Act after this extended date, and the holder shall indicate in its report to the administrator that the property is being reported on an extended date pursuant to this subsection. [765 ILCS 1026/15-603(b)]

 

3)         Under the Act, the time when a holder is required to remit to the administrator a presumptively abandoned automatically renewable deposit is dependent upon both the term of the deposit and whether there is a penalty or forfeiture of interest provision applicable to such an automatically renewable deposit.

 

4)         If it does not have a penalty or forfeiture of interest provision, then a presumptively abandoned automatically renewable deposit should be remitted to the administrator with the holder's first report after the initial term of the deposit and one automatic renewal term plus 3 years.

 

5)         When a holder is required to remit a presumptively abandoned automatically renewable deposit with a penalty or forfeiture of interest provision depends upon the term of the deposit.

 

A)        A presumptively abandoned automatically renewable deposit with a term of less than one year should be remitted to the administrator in the holder's first report after the initial term and one automatic renewal term plus 3 years. 

 

EXAMPLE: A 6-month certificate of deposit would be remitted with the holder's first report after 4 years have passed. This would be the initial 6-month term, one automatic 6-month renewal term, plus the 6 additional 6-month terms that comprise the 3-year period of abandonment and then the time, which should be less than a year, until the holder's next report is due under the Act.

 

B)        A presumptively abandoned automatically renewable deposit with a term of less than 3 years, but more than one year, should be remitted to the administrator with the holder's first report after the initial term and one automatic renewal term plus 3 years plus any time needed to avoid a penalty. 

 

EXAMPLE: A 2-year certificate of deposit would be remitted with the holder's first report after 8 years have passed. This would be the initial 2-year term, one automatic 2-year renewal term, plus the 3-year period of abandonment plus the final year of the fourth 2-year term so as to avoid the penalty (i.e., the first report after four 2-year terms).

 

C)        A presumptively abandoned automatically renewable deposit with a term of 3 years or more should be remitted to the administrator with the holder's first report after the end of the third term of the deposit.

 

EXAMPLE: A 5-year certificate of deposit would be remitted with the holder's first report after 15 years have passed. After the first 5-year term and one automatic renewal term, the end of the 3-year period of abandonment falls within the third 5-year term. So, to avoid any penalty, the certificate of deposit is remitted with the holder's first report after the end of the third 5-year term.

 

c)         Money Orders. Subject to Section 15-201 of the Act, money orders are presumed abandoned 5 years after issuance.

 

d)         Instruments other than money orders. Subject to Section 15-201 of the Act, any instrument on which a financial organization or business association is directly liable, other than a money order, is presumed abandoned 3 years after issuance. [765 ILCS 1026/15-201(3)]

 

(Source:  Amended at 46 Ill. Reg. 16898, effective September 26, 2022)

 

Section 760.220  Stored Value Cards

 

a)         Stored Value Cards

 

1)         Unless otherwise exempted by the Act or this Part, the net card value of a stored value card is required to be reported and remitted under the Act as property that is presumed abandoned pursuant to Section 15-206 of the Act.

 

2)         In determining whether property falls within the definition of stored value card under the Act, the State Treasurer will consider the federal regulations concerning gift cards and gift certificates and official staff interpretations issued by the Board of Governors of the Federal Reserve System as part of what is commonly known as "Regulation E" (12 CFR 1005 (2011)). A stored value card will, in most cases, be a "general-use prepaid card" under those federal regulations. The use of those federal regulations and interpretations by the State Treasurer is intended to harmonize definitions and concepts used by state and federal regulators to make compliance easier for affected businesses.

 

3)         Property that satisfies the definition of payroll card, merchandise credit, or gift card is not a stored value card.

 

4)         If a holder has reported and remitted to the administrator the net card value on a stored-value card presumed abandoned under the Act and the stored-value card does not have an expiration date, then the holder must honor the card on presentation indefinitely and may then request reimbursement from the administrator under Section 15-605 of the Act.

 

A)        This provision is required for the Act to avoid preemption by federal law.

 

B)        See Notice of preemption determination "Electronic Fund Transfers; Determination of Effect on State Laws (Maine and Tennessee)" (Docket No. CFPB-2012-0036) issued by the federal Bureau of Consumer Financial Protection holding that Maine's unclaimed property law was not preempted by federal law because it contained an indefinite presentation provision, but Tennessee's unclaimed property law, which did not contain an indefinite presentation provision, was preempted by federal law.

 

Section 760.230  Gift Cards

 

a)         Gift cards as defined in the Act are exempt from being reported and remitted as property that is presumed abandoned. Gift cards are excluded from the definition of property in the Act (see 765 ILCS 1026/15-102(24)(C)(iii)).

 

b)         If property does not satisfy all the parts of the definition of gift card under the Act, then it does not qualify for the gift card exemption.

 

c)         Property that does not qualify as a gift card includes, but is not limited to, property that:

 

1)         has an expiration date;

 

2)         is subject to a dormancy, inactivity, or post-sale service fee; or

 

3)         may be redeemed for money, including at automated teller machines.

 

Section 760.240  Payroll Cards

 

a)         Amounts held on payroll cards are presumed abandoned one year after the amount becomes payable under Section 15-201(13) of the Act.

 

b)         Because payroll cards are not stored value cards, this one year period of abandonment applies to payroll cards instead of the 5-year period of abandonment for stored value cards under Section 15-206 of the Act.

 

Section 760.250  Merchandise Credits

 

a)         Merchandise credits are exempt from being reported and remitted under the Act pursuant to Section 15-201(7) of the Act.

 

b)         This exemption includes, but is not limited to, a stored value card that is given as in-store credit for returned merchandise.

 

c)         However, the exemption for merchandise credits does not include stored value cards that:

 

1)         are redeemable at multiple, unaffiliated merchants; or

 

2)         may be redeemed for or converted into money or otherwise monetized by the issuer.

 

Section 760.260  Loyalty Cards

 

A loyalty card as defined in the Act is not a stored value card and is exempt from being reported and remitted.  The exemption from the Act for loyalty cards does not apply to a "rebate card" as defined in Section 2LLL of the Consumer Fraud and Deceptive Business Practices Act [815 ILCS 505] as rebate cards are given for the direct monetary consideration of the consumer's purchase of a product or service.

 

(Source:  Amended at 46 Ill. Reg. 16898, effective September 26, 2022)

 

Section 760.270  Property Related to Pre-need Death Care Contracts

 

a)         Illinois Funeral or Burial Funds Act [225 ILCS 45]

 

1)         Funds on deposit or held in trust pursuant to the Illinois Funeral or Burial Funds Act are covered under the Act pursuant to Section 15-201(9).

 

2)         Proceeds of a life insurance policy or annuity contract, even if used to fund a pre-need contract pursuant to the Illinois Funeral or Burial Funds Act, are covered under the Act pursuant to Sections 15-201(8) and 15-211.

 

3)         The relevant provisions of Section 4 of the Illinois Funeral or Burial Funds Act determine the amount to be reported and remitted as unclaimed property under the Act.

 

A)        If, after the death of the beneficiary, no funeral merchandise or services are provided or if the funeral is conducted by another provider, the seller may keep no more than 10% of the payments made under the pre-need contract or $300, whichever sum is less. The remainder of the trust funds or insurance or annuity proceeds shall be forwarded to the legal heirs of the deceased beneficiary or as determined by probate action. [225 ILCS 45/4(c-5)] If the legal heirs of the deceased beneficiary cannot be located and there is not an active probate action, the remainder of trust funds should be reported and remitted as unclaimed property pursuant to Section 15-201(9) of the Act and insurance or annuity proceeds should be reported and remitted pursuant to Sections 15-201(8) and 15-211 of the Act.

 

B)        Refunds provided pursuant to Section 4 of the Illinois Funeral or Burial Funds Act may become unclaimed property as the debt of a business association under Section 15-201(5) of the Act.

 

4)         If a pre-need contract requires entrustment under both the Illinois Funeral or Burial Funds Act and the Illinois Pre-Need Cemetery Sales Act [815 ILCS 390] and the only item that requires entrustment under the Illinois Pre-Need Cemetery Sales Act is an outer burial container, then, for the purposes of determining a presumption of abandonment under the Act, all amounts entrusted under the pre-need contract shall be treated as though they were entrusted under the Illinois Funeral or Burial Funds Act.

 

5)         Funds on deposit or held in trust pursuant to the Illinois Funeral or Burial Funds Act are presumed abandoned the earliest of:

 

A)        2 years after the date of death of the beneficiary;

 

B)        one year after the date the beneficiary has attained, or would have attained if living, the age of 105 when the holder does not know whether the beneficiary is deceased; or

 

C)        40 years after the contract for prepayment was executed, unless the apparent owner has indicated an interest in the property more than 40 years after the contract for prepayment was executed, in which case, 3 years after the last indication of interest in the property by the apparent owner. [765 ILCS 1026/15-201]

 

6)         Pre-need funeral trusts established in jurisdictions other than the State of Illinois are generally not governed by the Illinois Funeral or Burial Funds Act. Pursuant to federal common law (U.S. Supreme Court Texas v. New Jersey, 379 U.S. 674 (1965); Pennsylvania v. New York, 407 U.S. 206 (1972); and Delaware v. New York, 507  U.S. 490 (1993)) and the Act, these non-Illinois pre-need funeral trusts should be reported and remitted to the administrator as unclaimed property when the address of the apparent owner in the records of the holder is in Illinois. The amount to be reported and remitted for these non-Illinois pre-need funeral trusts is determined by applicable law, including but not limited to the pre-need law of the state under which the contract was entered into.

 

b)         Illinois Pre-Need Cemetery Sales Act [815 ILCS 390]

 

1)         Burial rights, along with rights of interment, entombment or inurnment are all interests in real property. Interests in real property are not covered by the Act and do not become unclaimed property under the Act.

 

2)         Refunds provided pursuant to Section 18 of the Illinois Pre-Need Cemetery Sales Act may become unclaimed property as the debt of a business association under Section 15-201(5) of the Act.

 

3)         Funds on deposit or held in trust pursuant to Section 16 of the Illinois Pre-Need Cemetery Sales Act are not property under the Act. Instead, Section 18.5 of the Illinois Pre-Need Cemetery Sales Act provides an alternative mechanism for unclaimed pre-need cemetery trust funds. The Illinois Office of the Comptroller is the primary regulator for these trust funds.

 

4)         Pre-need cemetery trusts established in jurisdictions other than the State of Illinois are generally not governed by the Illinois Pre-Need Cemetery Sales Act. These non-Illinois pre-need cemetery trusts are not exempt from the Act. Instead, pursuant to federal common law and the Act, they must be reported and remitted to the administrator as unclaimed property when the address of the apparent owner in the records of the holder is in Illinois. The amount to be reported and remitted for these non-Illinois pre-need cemetery trusts is determined by applicable law, including but not limited to the pre-need cemetery trusts law of the state under which the contract was entered into.

 

c)         Death Master File

 

1)         The Act does not mandate holders of trust funds under the Illinois Funeral or Burial Funds Act or the Illinois Pre-Need Cemetery Sales Act to compare their records against the Social Security Administration's Death Master File.

 

2)         While the Act does not mandate holders of life insurance or annuities, including those intended to fund a pre-need contract under the Illinois Funeral or Burial Funds Act or Illinois Pre-Need Cemetery Sales Act, to compare their records against the Social Security Administration's Death Master File, holders must still comply with the provisions of the Unclaimed Life Insurance Benefits Act [215 ILCS 185].

 

3)         Nothing in the Act or this Part restricts the ability of the administrator or the administrator's agent to conduct a comparison between the Social Security Administration's Death Master File and a holder's records during an examination conducted pursuant to the Act.

 

(Source:  Amended at 46 Ill. Reg. 16898, effective September 26, 2022)

 

Section 760.280  Reporting Securities

 

Remittance of securities. Unless otherwise provided, all securities and commodities when remitted by the holder to the administrator shall:

 

a)         be registered as "Treasurer of the State of Illinois"; or

 

b)         be deposited into a new or existing securities or commodities account either in the name of "Treasurer of the State of Illinois" or in a nominee account (aka "street name" account) established by a vendor acting as a custodian for the administrator; and

 

c)         include all dividends, interest, warrants, or other rights, or associated cash in a check payable to "Treasurer of the State of Illinois" unless otherwise directed by the administrator.

 

(Source:  Amended at 46 Ill. Reg. 16898, effective September 26, 2022)

 

Section 760.290  Deceased Owner

 

a)         Subject to the owner interest provisions of Section 15-210 of the Act, a deceased owner cannot indicate interest in his or her property. [765 ILCS 1026/15-201]

 

1)         Apparent owner interest shall include the activity of beneficiaries and estate executors or other persons who have a legal or equitable right to ownership or custody of the property when the apparent owner as listed in the records of the holder is deceased.

 

2)         Thus, while a deceased apparent owner can no longer indicate interest in their own property, the new owner or his/her agent(s) may indicate interest in the property and, thus, prevent abandonment.

 

b)         If the apparent owner as listed in the records of the holder is deceased and the abandonment period for the owner's property is greater than 2 years, then the property, shall instead be presumed abandoned 2 years from the date of the owner's last indication of interest in the property. This provision does not apply to an amount owed by an insurance company on a life or endowment insurance policy or an annuity contract that has matured or terminated. [765 ILCS 1026/15-201] This statutory provision does not apply to situations involving the death of the apparent owner when the property is covered by either Section 15-202(a)(2)(B) of the Act (tax-deferred retirement accounts) or Section 15-208(d) of the Act (concerning securities), as in neither case is the abandonment period greater than 2 years.

 

c)         A holder who fails to report, pay, or deliver property within the time prescribed by the Act shall not be required to pay interest or be subject to penalties if the failure to report, pay, or deliver the property was due to lack of knowledge of the death that established a shorter period of abandonment under the Act. [765 ILCS 1026/15-1204(c)]

 

d)         The Act does not impose a new or separate duty on a holder to determine whether an apparent owner is deceased. However, the Act does not relieve a holder of any duty imposed by another law, whether state or federal, that may impose such a duty.

 

e)         Sections 15-202 and 15-208 of the Act both provide that when a holder, in the ordinary course of its business, receives notice or an indication of the death of an apparent owner, the holder shall attempt not later than 90 days after receipt of the notice or indication to confirm whether the apparent owner is deceased.

 

1)         These provisions are not intended to require a holder to independently confirm the death of the apparent owner when the holder reasonably believes that the apparent owner is deceased.

 

2)         Instead, these provisions establish a 90-day deadline for a holder to conduct any independent investigation or search to confirm the death of the apparent owner.

 

3)         EXAMPLE: If a holder learns that an apparent owner is listed on the Social Security Administration's Death Master File (DMF) and the holder is satisfied that the presumption of death from such a match is correct, then the holder does not need to independently confirm the death of the apparent owner.

 

Section 760.300  Apparent Owner Interest

 

a)         Under Section 15-210(a) of the Act the period after which property is presumed abandoned is measured from the later of:

 

1)         the date the property is presumed abandoned under the Act; or

 

2)         the latest indication of interest by the apparent owner in the property.

 

b)         Under Section 15-210(b) of the Act, an indication of an apparent owner's interest in property includes, but is not limited to:

 

1)         a record communicated by the apparent owner to the holder or agent of the holder concerning the property or the account in which the property is held;

 

2)         an oral communication by the apparent owner to the holder or agent of the holder concerning the property or the account in which the property is held, if the holder or its agent contemporaneously makes and preserves a record of the fact of the apparent owner's communication;

 

3)         presentment of a check or other instrument of payment of a dividend, interest payment, or other distribution, or evidence of receipt of a distribution made by electronic or similar means, with respect to an account, underlying security, or interest in a business association;

 

4)         activity directed by an apparent owner in the account in which the property is held, including accessing the account or information concerning the account, or a direction by the apparent owner to increase, decrease, or otherwise change the amount or type of property held in the account;

 

5)         a deposit into or withdrawal from an account at a financial organization, except for a recurring ACH debit or credit previously authorized by the apparent owner or an automatic reinvestment of dividends or interest; and

 

6)         subject to Section 15-210(e) of the Act, payment of a premium on an insurance policy.

 

c)         Owner-initiated Activity. Owner-initiated financial transactions or authenticated owner-initiated administrative activity are an indication of an apparent owner's interest in the property. A holder must maintain a record of owner-initiated activity. These include, without limitation:

 

1)         trading activity in the account;

 

2)         depositing funds into the account or withdrawing funds from the account;

 

3)         non-automated electronic distributions;

 

4)         contacting the holder to discuss any account related matters;

 

5)         sending the holder paperwork or documents related to the account;

 

6)         meeting with (or otherwise interacting with) a financial advisor regarding the account;

 

7)         modifying the account profile;

 

8)         sending the holder correspondence regarding the account whether via mail or electronic means, including e-mail;

 

9)         submitting an account service request online;

 

10)         voting a proxy;

 

11)         setting up the account for e-delivery;

 

12)         accessing the account via the holder's website or other electronic means; and

 

13)         the initial authorizing of automatic payments or distributions from the account by the apparent owner.

 

d)         Activity that Does Not Show Apparent Owner Interest. Apparent owner interest is distinguishable from holder-generated activity such as, without limitation, crediting dividends, posting account fees, and mailing account statements, which does not constitute apparent owner interest.

 

1)         Automatic financial or administrative transactions or activity, such as automatic payments or distributions or automatic portfolio rebalancing, or system conversions, shall not be considered apparent owner interest.

 

2)         Non-return of Mail

 

A)        Non-return of mail sent by the holder to an account owner does not constitute apparent owner interest.

 

B)        Returned Post Officer (RPO) Standard

 

i)          Despite the general rule that non-return of mail does not constitute apparent owner interest, certain types of property are considered abandoned when first-class mail is returned undelivered to the holder by the U.S. Postal Service. This is commonly referred to as an RPO standard and is used in Sections 15-202, 15-204 and 15-208 of the Act.

 

ii)         When an RPO standard is used in the Act, the non-return of mail still does not constitute apparent owner interest. Instead, the presumption of abandonment is triggered by the return of the mail instead of by the passage of time without apparent owner interest.

 

iii)        In Section 15-208 of the Act, a security is presumptively abandoned on the earlier of 3 years after an RPO standard is met or 5 years from the last indication of interest by the apparent owner. The non-return of mail does not constitute apparent owner interest for the 5-year presumption under Section 15-208 of the Act.

 

e)         Interest by a Person Other Than the Apparent Owner

 

1)         An action by an agent or other representative of an apparent owner, other than the holder acting as the apparent owner's agent, is presumed to be an action on behalf of the apparent owner. [765 ILCS 1026/15-210(c)]

 

2)         A communication with an apparent owner by a person other than the holder or the holder's representative is not an indication of interest in the property by the apparent owner unless a record of the communication evidences the apparent owner's knowledge of a right to the property. [765 ILCS 1026/15-210(d)]

 

3)         If an apparent owner is deceased, apparent owner interest shall include, but is not limited to, activity of beneficiaries and estate executors or other persons who have a legal or equitable right to ownership or custody of the property.

 

f)         Consolidated Statement Rule for Financial Organizations

 

1)         If the apparent owner has another property with the holder to which Section 201(6) of the Act applies, then activity directed by an apparent owner in any other accounts, including loan accounts, at a financial organization holding an inactive account of the apparent owner shall be an indication of interest in all such accounts if the apparent owner engages in one or more of the following activities:

 

A)        the apparent owner undertakes one or more of the actions described in this Section regarding any of the other accounts the apparent owner has with the financial organization;

 

B)        the apparent owner increases or decreases the amount of funds in any other account the apparent owner has with the financial organization; or

 

C)        the apparent owner engages in any other relationship with the financial organization, including payment of any amounts due on a loan.

 

2)         This subsection (f) applies so long as the mailing address for the apparent owner in the financial organization's books and records is the same for both the inactive account and the active account. [765 ILCS 1026/15-210(f)]

 

g)         For an amount held on a payroll card, an indication of owner interest includes wages from an employer pursuant to Section 14.5 of the Illinois Wage Payment and Collection Act [820 ILCS 115] in the form of a recurring ACH credit previously authorized by the apparent owner; however, an ACH credit is not an indication of owner interest if the holder assesses fees for account inactivity on the payroll card account. [765 ILCS 1026/15-210(g)]

 

(Source:  Amended at 46 Ill. Reg. 16898, effective September 26, 2022)

 

Section 760.310  Anti-Limitations Provision

 

a)         Expiration of a period of limitation on an owner's right to receive or recover property, whether specified by contract, statute, or court order, does not prevent the property from being presumed abandoned or affect the duty of a holder under the Act to file a report or pay or deliver property to the administrator. [765 ILCS 1026/15-610(a)]

 

b)         This provision of the Act is a continuation of existing Illinois law.  Under the common law in Illinois, contracts could not serve as a limitation on the ability of the State to take custody of unclaimed property. (See People ex rel. Callahan v. Marshall Field & Co., 83 Ill. App. 3d 811, 818, 404 N.E.2d 368, 374 (1980) citing Connecticut Mutual Life Insurance Co. v. Moore, 333 U.S. 541 (1948); Screen Actors Guild, Inc. v. Cory (1979), 91 Cal. App. 3d 111, 154 Cal. Rptr. 77; and State v. Jefferson Lake Sulphur Co. (1962), 36 N.J. 577, 178 A.2d 329.)

 

Section 760.320  Online Sports Wagering

 

a)         As the debt of a business association, an online sports wagering account with a balance, where 3 years have passed from the date of last indication of interest by the apparent owner, is presumed to be an abandoned account.

 

b)         The amount to be reported and remitted to the administrator from an abandoned online sports wagering account is determined by relevant law beyond the Act including where applicable, the relevant state laws concerning online sports wagering.  However, the anti-limitations provisions of Section 15-610(a) of the Act are applicable.

 

(Source:  Added at 46 Ill. Reg. 16898, effective September 26, 2022)

 

Section 760.330  Virtual Currency

 

Virtual currency is presumed abandoned 5 years after the last indication of interest in the property by the apparent owner. [765 ILCS 1026/15-201(6.5)]

 

(Source:  Added at 46 Ill. Reg. 16898, effective September 26, 2022)

SUBPART C: REPORTING

 

Section 760.400  Holder Reporting Required

 

a)         A holder of property presumed abandoned shall report to the administrator via the internet in a format approved by the administrator, unless granted written permission by the administrator to file a paper report.

 

b)         A holder may contract with a third party to make the report required, but remains responsible to the administrator for the complete, accurate, and timely reporting of property presumed abandoned and for paying or delivering to the administrator property described in the report.

 

c)         The administrator will accept a report filed in the current National Association of Unclaimed Property Administrators (NAUPA) standard format found on the administrator's website: icash.illinoistreasurer.gov.

 

d)         A business association who has no reportable property shall so report to the administrator on forms via the Internet in a format approved by the administrator if the business association has:

 

1)         annual sales of more than $1,000,000;

 

2)         securities that are publicly traded;

 

3)         a net worth of more than $10,000,000; or

 

4)         more than 100 employees. [765 ILCS 1026/15-401(d)]

 

(Source:  Amended at 46 Ill. Reg. 16898, effective September 26, 2022)

 

Section 760.405  Reporting and Remitting by Pension Systems Subject to Section 15-1506 of the Act

 

a)         All retirement systems, pension funds, and investment boards created pursuant to Article 3, 4, or 22 of the Illinois Pension Code (Police, Firefighters' and Miscellaneous Collateral Provisions) must report abandoned property to the administrator.

 

b)         The report must include:

 

1)         Name of the owner and the names of any beneficiaries;

 

2)         Last known address, if known, of owner and beneficiaries, if any;

 

3)         Social Security number or taxpayer identification number of owner and beneficiaries, if any; and

 

4)         Dollar amount.

 

c)         All retirement systems, pension funds, and investment boards created pursuant to Article 3, 4, or 22 of the Illinois Pension Code shall engage in the following due diligence for presumptively abandoned property with a value of $50 or more:

 

1)         Attempt to contact the apparent owner not less than 90 days before the filing of the report with the administrator, using first-class U.S. Mail, telephone, and email;

 

2)         Send a notice to the apparent owner, not less than 60 days before filing the report with the administrator, using certified U.S. Mail;

 

3)         Check related plan and employer records for more current contact information for the apparent owner, as well as for more current contact information for any beneficiaries;

 

4)         Attempt to contact designated beneficiaries to find updated contact information for the apparent owner;

 

5)         Make reasonable use of free internet search tools to search for an apparent owner; and

 

6)         Conduct additional due diligence, such as the use of internet search tools, commercial locator services, credit reporting agencies, information brokers, investigation databases, and analogous services that may involve charges if the property is valued over $1,000.

 

d)         A retirement system, pension fund, or investment board subject to this Section does not need to send due diligence mail or email to an address that it knows to be invalid.

 

e)         The due diligence requirements of this Section follow the U.S. Department of Labor Employee Benefits Security Administration's Field Assistance Bulletin No. 2014-01.  If the U.S. Department of Labor issues subsequent guidance or regulations that require additional due diligence or otherwise conflict with this Section, this subsection will be amended accordingly.

 

f)         All retirement systems, pension funds, and investment boards created pursuant to Article 3, 4, or 22 of the Illinois Pension Code shall enter into an interagency agreement with the administrator concerning the due diligence and reporting requirements of this Section.  The interagency agreement shall require an annual certification that the retirement system, pension fund, or investment board meets or exceeds the due diligence requirements of this Section.

 

g)         If a retirement system, pension fund, or investment board created pursuant to Article 3, 4, or 22 of the Illinois Pension Code satisfies the due diligence and certification requirements of Section 15-1506 of the Act, then that retirement system, pension fund, or investment board shall report presumptively abandoned property in an annuity, pension, or benefit fund held in a fiduciary capacity by or on behalf of that retirement system, pension fund, or investment board (see subsections (a) and (b)), but is not required to remit presumptively abandoned property to the administrator.

 

h)         If a retirement system, pension fund, or investment board created pursuant to Article 3, 4, or 22 of the Illinois Pension Code does not meet the due diligence and certification requirements of Section 15-1506 of the Act, then that retirement system, pension fund, or investment board is required to both report and remit all presumptively abandoned property, as required by the Act, including presumptively abandoned property in an annuity, pension, or benefit fund held in a fiduciary capacity.

 

i)          A retirement system, pension fund, or investment board created pursuant to Article 3, 4, or 22 of the Illinois Pension Code is still required to report and remit to the administrator all other presumptively abandoned property that is not in an annuity, pension, or benefit fund held in a fiduciary capacity.

 

(Source:  Added at 44 Ill. Reg. 6403, effective April 8, 2020)

 

Section 760.406  Reporting and Remitting by Pension Systems Subject to Section 15-1505 of the Act

 

a)         Property in an annuity, pension, or benefit fund held in a fiduciary capacity by or on behalf of a retirement system, pension fund, or investment board created pursuant to any Article of the Illinois Pension Code, except for Articles 3, 4, and 22, that would be presumed abandoned under Article 2 of the Act shall be reported to the administrator but not paid or delivered to the administrator. 

 

b)         The report must include:

 

1)         Name of the owner and the names of any beneficiaries;

 

2)         Last known address, if known, of owner and beneficiaries;

 

3)         Social Security number or taxpayer identification number of owner and beneficiaries, if any; and

 

4)         Dollar amount.

 

c)         A retirement system, pension fund, or investment board created pursuant to any Article of the Illinois Pension Code is still required to report and remit to the administrator all other presumptively abandoned property that is not in an annuity, pension, or benefit fund held in a fiduciary capacity.

 

(Source:  Added at 44 Ill. Reg. 6403, effective April 8, 2020)

 

Section 760.407  Reporting Virtual Currency

 

a)         If property reported to the administrator is virtual currency, the holder shall liquidate the virtual currency and remit the proceeds to the administrator. The liquidation shall occur anytime within 30 days prior to the filing of the report under Section 15-401 of the Act.

 

b)         The owner shall not have recourse against the holder or the administrator to recover any gain in value that occurs after the liquidation of the virtual currency under this Section. [765 ILCS 1026/15-603(i)]

 

(Source:  Added at 46 Ill. Reg. 16898, effective September 26, 2022)

 

Section 760.410  Report Contents

 

a)         The report required by Article 4 of the Act must:

 

1)         be signed by or on behalf of the holder and verified as to its completeness and accuracy;

 

2)         if filed electronically, be in a secure format approved by the administrator that protects confidential information of the apparent owner;

 

3)         describe the property;

 

4)         except for a traveler's check, money order, or similar instrument, contain the name, if known, last-known address, if known, e-mail address, if known, and Social Security number or taxpayer identification number, if known or readily ascertainable, of the apparent owner of property with a value of $5 or more;

 

5)         for an amount held or owing under a life or endowment insurance policy, annuity contract, or other property in which ownership vests in a beneficiary upon the death of the owner, contain the name and last-known address of the insured, annuitant, or other apparent owner of the policy or contract and of the beneficiary;

 

6)         for property held in or removed from a safe deposit box, indicate the location of the property, where it may be inspected by the administrator, and any amounts owed to the holder under Section 15-606 of the Act;

 

7)         combine all dividend checks into one property for each reported account;

 

8)         contain the commencement date for determining abandonment;

 

9)         state that the holder has complied with the notice requirements of the Act;

 

10)         identify property that is a non-freely transferable security and explain why it is a non-freely transferable security;

 

11)         detail the gross amount of the property as well as any dormancy fees deducted as allowed under Section 15-602 of the Act and the addition of any interest as required under Section 15-1204 of the Act; and

 

12)         identify the remitter and payee for all two-party checks (e.g., cashier's checks).

 

b)       Holders may report property valued at less than $5 each in the aggregate. However, the administrator may request that the holder provide information about the name, address, Social Security number or taxpayer identification number of an apparent owner of property with a value of less than $5 when the information is necessary to verify or process a claim filed with the administrator by an apparent owner.

 

c)       If a holder has changed its name while holding property presumed abandoned or is a successor to another person that previously held the property for the apparent owner, the holder must include in the report its former name or the name of the previous holder, if any, and the known name and address of each previous holder of the property. [765 ILCS 1026/15-402(d)]

 

(Source:  Amended at 46 Ill. Reg. 16898, effective September 26, 2022)

 

Section 760.420  Filing Dates

 

a)         Financial organizations, governments, governmental entities, and insurance companies except life insurance companies must file a report before November 1 of each year that covers the 12 months preceding July 1 of that year.

 

b)         All other business associations must file before May 1 of each year for the immediately preceding calendar year.

 

Section 760.430  Early Reporting and Remittance of Property

 

a)         A holder may pay or deliver property to the administrator before the property is presumed abandoned under the Act if the holder:

 

1)         provides the apparent owner of the property any notice required by Section 15-501 of the Act and provides the administrator evidence of the holder's compliance with any notice required by the Act;

 

2)         includes with the payment or delivery a report regarding the property conforming to the Act and this Section; and

 

3)         first obtains the administrator's written consent to accept payment or delivery of the property.

 

b)         A holder's request for the administrator's consent to remit or deliver property before the property is presumed abandoned under the Act must be in writing.

 

c)         If the administrator fails to respond to the request not later than 30 days after receipt of the request, the administrator is deemed to consent to the payment or delivery of the property and the payment or delivery is considered to have been made in good faith.

 

d)         On payment or delivery of property under this Section, the property is presumed abandoned. [765 ILCS 1026/15-608]

 

e)         A holder that pays or delivers property to the administrator pursuant to Section 15-608 of the Act in good faith and substantially complies with Sections 15-501 and 15-502 of the Act is relieved of all liability that thereafter may arise or be made in respect to the property to the extent of the value of the property so paid or delivered. [765 ILCS 15-604(a)]

 

Section 760.440  Extensions

 

a)         A holder may request an extension for filing. The request must be in writing and must specify the proposed period of extension.

 

b)         The request must include a reasonable cause for an extension.

 

1)         Reasonable cause includes, without limitation, natural disaster, criminal activity related to the holder's books and records, recent changes in the form of ownership of the holder, etc.

 

2)         Providing due diligence notices to apparent owners and other holder actions required by the Act does not constitute reasonable cause.

 

c)         Extension requests must be received by the administrator at least 15 business days before the date the report would otherwise be due.

 

d)         Not later than 10 business days after the date of the request, the administrator shall respond to the request. The administrator may grant the request, deny the request, or grant an extension for a different period of time.

 

e)         If an extension is granted, the holder may pay or make a partial payment of the amount the holder estimates ultimately will be due. The payment or partial payment terminates accrual of interest on the amount paid.  [765 ILCS 1026/15-403(c)]

 

Section 760.450  Incomplete and Rejected Reports

 

If the administrator notifies a holder that a report is incomplete or incorrect, then a corrected report must be filed by the holder no later than 20 calendar days after notification by the administrator. The administrator may grant an extension in writing for reasonable cause.

 

Section 760.460  Due Diligence Notice by Holder

 

a)         Sections 15-501 and 15-502 of the Act specify when and how a holder must provide notice to the apparent owner of property presumed abandoned. This notice process is a "due diligence notice" from the holder to the apparent owner. A due diligence notice is intended to provide an opportunity for an apparent owner to indicate interest in the property presumed abandoned prior to such property being reported and remitted to the administrator.

 

b)         Unless otherwise provided by the Act or these rules, the holder of property presumed abandoned shall send to the apparent owner a due diligence notice by first-class U.S. Mail between 60 days and one year before reporting the property (see 765 ILCS 1026/15-501(a)).

 

c)         A holder does not need to send notice by first-class U.S. Mail if any of the following are true:

 

1)         the property is valued at less than $50;

 

2)         the holder does not have in its records an address for the apparent owner that is sufficient for delivery of first-class U.S. Mail;

 

3)         the holder's records indicate that the address for the apparent owner is invalid; or,

 

4)         the holder sends notice by certified U.S. Mail.

 

d)         If the holder has in its records an e-mail address for an apparent owner and the apparent owner has consented to receive e-mail from the holder, then unless the holder believes the e-mail address is invalid, the holder shall send a due diligence notice by e-mail to the apparent owner in addition to any other due diligence notice required by the Act (see 765 ILCS 1026/15-501(b)). Due diligence notice by e-mail does not have to be sent at the same time as a due diligence notice by U.S. mail.

 

e)         Certified Mail Due Diligence for Securities Valued at $1,000 or More

 

1)         If the property presumed abandoned is securities valued at $1,000 or more and the holder has in its records an address for the apparent owner that the holder's records do not disclose to be invalid and is sufficient to direct the delivery of U.S. Mail to the apparent owner, then the due diligence notice shall be sent by certified U.S. Mail (see 765 ILCS 1026/15-501(c)). If the apparent owner is a natural person, then the holder should utilize Certified Mail Restricted Delivery to direct the due diligence notice to the apparent owner or the apparent owner's authorized agent.

 

2)         If the holder sends a due diligence notice by certified mail, then the holder does not need to send a due diligence notice by first-class U.S. Mail.

 

3)         A signed return receipt in response to a notice sent by certified U.S. Mail shall constitute a record communicated by the apparent owner to the holder concerning the property or the account in which the property is held, and thus shall constitute an indication of interest by the apparent owner in the property under Section 15-210 of the Act.

 

f)         A holder may contract with a third party to provide the required due diligence notice to an apparent owner under the Act and these rules.

 

1)         Whether or not the holder contracts with a third party to provide required due diligence notices, the holder remains responsible for ensuring that any required due diligence notices are provided prior to the reporting and remitting of property presumed abandoned to the administrator.

 

2)         If a holder contracts with a third party to provide required due diligence notices and the due diligence notice is being sent after the date the property was presumed abandoned under the Act, then, pursuant to Section 15-1302 of the Act, neither the holder nor the third party may charge the apparent owner a fee to indicate an interest in property presumed abandoned or to otherwise prevent the reporting and remitting of property presumed abandoned to the administrator.

 

g)         Contents of Due Diligence Notice

 

1)         A due diligence notice by a holder must contain a heading that reads substantially as follows: "Notice. The State of Illinois requires us to notify you that your property may be transferred to the custody of the State Treasurer if you do not contact us before (insert date that is 30 days after the date of this notice)."

 

2)         A due diligence notice by a holder must:

 

A)        identify the nature and, except for property that does not have a fixed value, the value of the property that is the subject of the notice;

 

B)        state that the property will be turned over to the State Treasurer;

 

C)        state that after the property is turned over to the State Treasurer an apparent owner that seeks return of the property may file a claim with the State Treasurer;

 

D)        state that property that is not legal tender of the United States may be sold by the State Treasurer;

 

E)        provide instructions that the apparent owner must follow to prevent the holder from reporting and paying or delivering the property to the State Treasurer; and,

 

F)         provide the name, address, and e-mail address or telephone number to contact the holder.

 

3)         In a due diligence notice, the holder may also list a website where apparent owners may obtain more information about how to prevent the holder from reporting and paying or delivering the property to the State Treasurer.

 

h)         Holder Deduction of Costs of Due Diligence Notices

 

1)         A holder that reports and remits money may deduct from total amounts remitted, the actual costs of due diligence notices.

 

2)         The deduction shall consist of the cost of envelopes, postage, and stationery. No other costs may be deducted.

 

3)         For purposes of holder deductions for due diligence mailings, postage includes amounts paid to the United States Postal Service for first class United States mail and certified United States mail.

 

4)         A holder may be required to document or certify to the costs incurred and deducted.

 

(Source:  Amended at 46 Ill. Reg. 16898, effective September 26, 2022)

 

Section 760.470  Retention of Records by Holder

 

a)         A holder is required to retain records for 10 years after the later of the date the report was filed or the last date a timely report was due to be filed.

 

b)         The records must contain:

 

1)         the information required to be included in the report;

 

2)         the date, place, and nature of the circumstances that gave rise to the property right;

 

3)         the amount or value of the property;

 

4)         the last address of the apparent owner, if known to the holder;

 

5)         sufficient records of items that were not reported as unclaimed, to allow examination to determine whether the holder has complied with the Act [765 ILCS 1026/15-404];

 

EXAMPLE: Records related to property when the holder gave express notice to the administrator of a dispute regarding the property. [765 ILCS 1026/15-610(b)]; and

 

6)         a record of the instruments while they remain outstanding indicating the state and date of issue if the holder sells, issues, or provides to others for sale or issue in this State traveler's checks, money orders, or similar instruments, other than third-party bank checks, on which the holder is directly liable. [765 ILCS 1026/15-404].

 

c)         If a holder fails to maintain records required by Section 15-404 of the Act, the administrator may determine the value of property due using a reasonable method of estimation based on all information available to the administrator, including extrapolation and use of statistical sampling when appropriate and necessary, consistent with examination procedures and standards in this Part.

 

d)         Both the records retention period of Section 15-404 of the Act and the statute of limitations in Section 15-610(b) of the Act are 10 years. However, the statute of limitations only applies after the holder specifically identified the property in a report filed with the administrator or gave express notice to the administrator of a dispute regarding the property. [765 ILCS 1026/15-610(b)]  If the statute of limitations has been tolled because the holder failed to either report property or provide express notice to the administrator and the holder fails to maintain sufficient records of items that were not reported as unclaimed, to allow examination to determine whether the holder has complied with the Act [765 ILCS 1026/15-404(5)], the administrator may use estimation in an examination of that holder pursuant to Section 15-1006 of the Act and this Part.

SUBPART D: NOTICE TO APPARENT OWNERS BY THE ADMINISTRATOR

 

Section 760.500  Notices by United States Mail

 

a)         The administrator shall send at least one written notice by first-class U.S. Mail to each apparent owner of unclaimed property held by the administrator and valued at $100 or more.

 

b)         However, the administrator shall not send a notice under this Section by first-class U.S. Mail if the administrator reasonably believes that a mailing by first-class U.S. Mail would not be received by the apparent owner.

 

c)         In the case of a security held in an account for which the apparent owner had consented to receiving e-mail from the holder, the administrator shall send notice by e-mail if the e-mail address of the apparent owner is known to the administrator, instead of by first-class U.S. Mail. [765 ILCS 1026/15-503(b)(1)]

 

Section 760.510  E-Mail Notices

 

a)         Whenever the administrator has an e-mail address for an apparent owner of unclaimed property held by the administrator and valued at $100 or more and the administrator does not know that e-mail address to be invalid, the administrator shall send at least one notice to the apparent owner by e-mail if the administrator did not send a written notice by first-class U.S. Mail. (See 765 ILCS 1026/15-503(b)(2).)

 

b)         In addition to any notice mandated by the Act, the administrator may send an additional notice to an apparent owner to any e-mail address for the apparent owner that the administrator does not know to be invalid.

 

c)         When practicable, e-mail notices from the administrator shall provide a hyperlink to the website maintained by the administrator.

 

Section 760.520  Newspaper Notices

 

a)         At least once every 6 months, the administrator shall cause to be published in at least one English language newspaper of general circulation in each county in this State a notice concerning the unclaimed property program.

 

b)         The newspaper notice shall include the following information:

 

1)         the total value of property received statewide by the administrator during the preceding 6-month period;

 

2)         the total value of claims paid by the administrator statewide during the preceding 6-month period;

 

3)         the address of the unclaimed property website maintained by the administrator;

 

4)         an e-mail address to contact the administrator to inquire about or claim property; and

 

5)         a statement that computers may be available at a local public library to search for unclaimed property. [765 ILCS 1026/15-503(c)(1)]

 

c)         The administrator may contract with a vendor to cause to be published the required newspaper notices. A contract concerning newspaper notices may, but is not required to, be part of a more comprehensive marketing services contract or specific contract.

 

d)         Newspaper notices may include other information at the discretion of the administrator.

 

e)         The administrator may cause additional notices or advertisements to be published in newspapers and print publications other than the required notices. The additional notices do not need to contain the mandatory information listed in subsection (b).

 

(Source:  Amended at 46 Ill. Reg. 16898, effective September 26, 2022)

 

Section 760.530  Website

 

a)         The administrator shall maintain a website accessible by the public and electronically searchable that contains the names reported to the administrator of apparent owners for whom property is being held by the administrator.

 

b)         The administrator does not need to list property on the unclaimed property website when:

 

1)         no owner name was reported;

 

2)         a claim has been initiated or is pending for the property;

 

3)         the administrator has made direct contact with the apparent owner of the property; and

 

4)         in other instances in which the administrator reasonably believes exclusion of the property is in the best interests of both the State and the owner of the property. [765 ILCS 1026/15-503(c)(1)]

 

c)         The administrator's unclaimed property website shall include an online claim form and instructions for filing a claim with the administrator. The administrator shall also make available a printable claim form with instructions for its use. [765 ILCS 1026/15-503(d)]

 

d)         The administrator may include on the website the names and addresses of apparent owners of property held by the administrator. [765 ILCS 1026/15-1401(d)]

 

e)         In addition to the required website, the administrator may utilize other websites, including any websites endorsed by the National Association of Unclaimed Property Administrators (NAUPA), to promote the unclaimed property program and seek to reunite owners with their unclaimed property.

 

Section 760.540  Tax Return Identification of Apparent Owners

 

The administrator will work with the Illinois Department of Revenue (DOR) to facilitate the return of unclaimed property to Illinois taxpayers through data sharing as required by the Act. This data sharing is intended to update contact information for apparent owners in the administrator's records, to allow the administrator to return some types of unclaimed property directly to apparent owners without a claim being filed, and to otherwise facilitate the return of unclaimed property in the custody of the administrator to the legal owners.

 

Section 760.550  Updating Apparent Owner Data

 

a)         The administrator may utilize publicly and commercially available databases, as well as information obtained through data sharing agreements authorized by the Act, to find and update or add information for apparent owners of property held by the administrator.

 

b)         The administrator may, but is not required to, update or add a mailing address or e-mail address for an apparent owner prior to sending notices required by the Act.

 

c)         If a required notice has already been sent by the administrator, the administrator does not need to send a new written notice merely because a mailing address or e-mail address for an apparent owner has been subsequently updated or added.

 

Section 760.560  Other Discretionary Means of Providing Notice

 

a)         Paid Advertising

 

1)         The administrator may use paid advertising to increase awareness of the unclaimed property program, provide notice to persons who may be the owners of unclaimed property in the custody of the administrator, or to otherwise facilitate the return of unclaimed property to legal owners.

 

2)         Any paid advertising shall conform to the requirements of Section 5-20 of the State Officials and Employees Ethics Act [5 ILCS 430].

 

b)         Direct Contact

 

1)         The administrator may use contact information reasonably believed to be accurate to attempt to directly contact apparent owners of property held by the administrator.

 

2)         When directly contacting an apparent owner, the administrator may reveal additional information concerning the apparent owner's property if the administrator believes the information will assist in identifying and returning property to the owner and does not disclose personal information as defined in the Personal Information Protection Act [815 ILCS 530].

 

3)         Direct contacts include, but are not limited to, telephone calls, in-person meetings, direct electronic communications, targeted social media contacts, and similar methods of contact.

 

c)         Broadcast Media

 

1)         The administrator may make agreements with broadcast media outlets to use live telethons, call-in programs, and similar events of limited duration to both promote the unclaimed property program authorized by the Act and to notify owners of the existence of unclaimed property.

 

2)         These broadcasts should be considered the dissemination of news and should not be considered a public service announcement or advertisement.

 

d)         Contractual Vendors

 

1)         The administrator may contract with one or more vendors that provide websites, including any websites endorsed by the National Association of Unclaimed Property Administrators (NAUPA), to promote the unclaimed property program and seek to reunite owners with their unclaimed property.

 

2)         The administrator may contract with one or more vendors that provide applications to assist apparent owners in identifying and claiming property in the custody of the administrator. The vendors shall be selected by a competitive request for proposals pursuant to the Office of the Treasurer Procurement Rules [44 Ill. Adm. Code 1400]. Compensation must conform with the restrictions in Article 13 of the Act concerning agreements to locate property of apparent owners held by the administrator.

 

Section 760.570  Confidentiality

 

The administrator may include in published notices, printed publications, telecommunications, the Internet, or other media and on the website or in the database additional information concerning the apparent owner's property if the administrator believes the information will assist in identifying and returning property to the owner and does not disclose personal information as defined in the Personal Information Protection Act [815 ILCS 530]. [765 ILCS 1026/15-1401(d)]

SUBPART E: CLAIMS