99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
HB4601

 

Introduced , by Rep. Thomas Bennett

 

SYNOPSIS AS INTRODUCED:
 
765 ILCS 1025/2  from Ch. 141, par. 102
765 ILCS 1025/2a  from Ch. 141, par. 102a

    Amends the Uniform Disposition of Unclaimed Property Act. Provides that certain property is presumed abandoned after 8 (instead of 5) years. Provides that property is not presumed abandoned if the owner of the property was the recipient of a federal taxable interest statement that was not returned to the sender, a dividend check that was cashed, or any automatic transactions, including dividend investments.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB4601LRB099 18174 HEP 42541 b

1    AN ACT concerning civil law.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Uniform Disposition of Unclaimed Property
5Act is amended by changing Sections 2 and 2a as follows:
 
6    (765 ILCS 1025/2)  (from Ch. 141, par. 102)
7    Sec. 2. Property held by financial organizations;
8presumption of abandonment. The following property held or
9owing by a banking or financial organization is presumed
10abandoned:
11    (a) Any demand, savings, or matured time deposit with a
12banking organization, together with any interest or dividend
13thereon, excluding any charges that may lawfully be withheld,
14unless the owner has, within 8 5 years:
15        (1) Increased or decreased the amount of the deposit,
16    or presented the passbook or other similar evidence of the
17    deposit for the crediting of interest; or
18        (2) Corresponded in writing with the banking
19    organization concerning the deposit;
20        (3) Otherwise indicated an interest in the deposit as
21    evidenced by a memorandum on file with the banking
22    organization; or
23        (4) Engaged in the following activity regarding other

 

 

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1    funds or loan accounts with the banking organization:
2            (i) undertook one or more the above actions
3        described in subsection (a) of this Section regarding
4        any account that appears on a consolidated statement
5        with the inactive account;
6            (ii) increased or decreased the amount of funds in
7        any other account the owner has with the banking
8        organization; or
9            (iii) engaged in any other relationship with the
10        banking organization, including payment of any amounts
11        due on a loan; or .
12            (iv) was the recipient of a federal taxable
13        interest statement that was not returned to the sender.
14    The foregoing apply so long as the mailing address for the
15owner in the banking organization's books and records is the
16same for both the inactive account and for the active account.
17    (b) Any funds paid toward the purchase of withdrawable
18shares or other interest in a financial organization, or any
19deposit made, and any interest or dividends thereon, excluding
20any charges that may be lawfully withheld, unless the owner has
21within 8 5 years:
22        (1) Increased or decreased the amount of the funds, or
23    deposit, or presented an appropriate record for the
24    crediting of interest or dividends; or
25        (2) Corresponded in writing with the financial
26    organization concerning the funds or deposit;

 

 

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1        (3) Otherwise indicated an interest in the funds or
2    deposit as evidenced by a memorandum on file with the
3    financial organization; or
4        (4) Engaged in the following activity regarding other
5    funds or loan accounts with the financial organization:
6            (i) undertook one or more the above actions
7        described in subsection (b) of this Section regarding
8        any account that appears on a consolidated statement
9        with the inactive account;
10            (ii) increased or decreased the amount of funds in
11        any other account the owner has with the financial
12        organization; or
13            (iii) engaged in any other relationship with the
14        financial organization, including payment of any
15        amounts due on a loan; or .
16            (iv) was the recipient of a dividend check that was
17        cashed or the recipient of any automatic transactions,
18        including dividend investments.
19    The foregoing apply so long as the mailing address for the
20owner in the financial organization's books and records is the
21same for both the inactive account and for the active account.
22    (c) Any sum payable on checks or on written instruments on
23which a banking or financial organization or business
24association is directly liable including, by way of
25illustration but not of limitation, certificates of deposit,
26drafts, money orders and travelers checks, that with the

 

 

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1exception of travelers checks and unclaimed wages, payroll, and
2salary has been outstanding for more than 8 5 years from the
3date it was payable, or from the date of its issuance if
4payable on demand, or, in the case of travelers checks, that
5has been outstanding for more than 15 years from the date of
6its issuance, or, in the case of unclaimed wages, payroll, or
7salary, that has been outstanding for more than one year from
8the date of its issuance, excluding any charges that may be
9lawfully withheld relating to money orders issued by currency
10exchanges, unless the owner has within 8 5 years (or within 15
11years in the case of travelers checks or one year in the case
12of unclaimed wages, payroll, or salary) corresponded in writing
13with the banking or financial organization or business
14association concerning it, or otherwise indicated an interest
15as evidenced by a memorandum on file with the banking or
16financial organization or business association.
17    (d) Any funds or other personal property, tangible or
18intangible, removed from a safe deposit box or any other
19safekeeping repository or agency or collateral deposit box on
20which the lease or rental period has expired due to nonpayment
21of rental charges or other reason, or any surplus amounts
22arising from the sale thereof pursuant to law, that have been
23unclaimed by the owner for more than 8 5 years from the date on
24which the lease or rental period expired, subject to lien of
25the holder for reimbursement of costs incurred in the opening
26of a safe deposit box as determined by the holder's regular

 

 

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1schedule of charges.
2    (e) Notwithstanding any other provision of this Section, no
3deposit except passbook, checking, NOW accounts, super NOW
4accounts, money market accounts, or such similar accounts as
5established by Rule of the State Treasurer, held by a banking
6or financial organization shall be presumed abandoned if with
7respect to such a deposit which specifies a definite maturity
8date, such organization was authorized in writing to extend or
9rollover the account for an additional like period and such
10organization does so extend. Such deposits are not presumed
11abandoned less than 8 5 years from that final maturity date.
12Property of any kind held in an individual retirement account
13(IRA) is not presumed abandoned earlier than 8 5 years after
14the owner attains the age at which distributions from the
15account become mandatory under law.
16    (f) Notwithstanding any other provision of this Section,
17money of a minor deposited pursuant to Section 24-21 of the
18Probate Act of 1975 shall not be presumed abandoned earlier
19than 8 5 years after the minor attains legal age. Such money
20shall be deposited in an account which shall indicate the birth
21date of the minor.
22(Source: P.A. 97-270, eff. 8-8-11.)
 
23    (765 ILCS 1025/2a)  (from Ch. 141, par. 102a)
24    Sec. 2a. (a) Business associations shall report, pursuant
25to Section 11 of this Act, all property and any earnings

 

 

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1thereon to which the owner would be entitled that have remained
2unclaimed for 8 5 years and are therefore presumed abandoned.
3Before reporting and delivering property as required under this
4Act, a business association may deduct from the amount of
5otherwise reportable intangible personal property the economic
6loss suffered by it in connection with that intangible personal
7property arising from transactions involving the sale of
8tangible personal property at retail. This property shall
9consist of, but is not limited to:
10        (1) (blank);
11        (2) deposits or payment for repair or purchase of goods
12    or services;
13        (3) credit checks or memos, or customer overpayments;
14        (4) stocks, bonds, or any other type of securities or
15    debt instruments, and interest and dividends therefrom;
16        (5) unidentified remittances, unrefunded overcharges;
17        (6) unpaid claims, unpaid accounts payable or unpaid
18    commissions; and
19        (7) credit balances - accounts receivable, checks
20    written off, employee bond buying and profit-sharing.
21    (b) Notwithstanding the provisions of subsection (a), any
22property due or owed by a business association to or for the
23benefit of another business association resulting from a
24transaction occurring in the normal and ordinary course of
25business shall be exempt from the provisions of this Act.
26    (c) Notwithstanding the provisions of subsection (a),

 

 

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1unclaimed wages, payroll, and salary, in any form, shall be
2reported after remaining unclaimed for one year, pursuant to
3Section 2.
4(Source: P.A. 97-270, eff. 8-8-11.)