SB1464 EngrossedLRB101 09433 LNS 54531 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 Illinois Funeral or Burial Funds Act is
5amended by changing Section 2 as follows:
 
6    (225 ILCS 45/2)  (from Ch. 111 1/2, par. 73.102)
7    Sec. 2. (a) If a purchaser selects a trust arrangement to
8fund the pre-need contract, all trust deposits as determined by
9Section 1b shall be made within 30 days of receipt.
10    (b) A trust established under this Act must be maintained
11with a corporate fiduciary as defined in Section 1-5.05 of the
12Corporate Fiduciary Act or with a foreign corporate fiduciary
13recognized by Article IV of the Corporate Fiduciary Act.
14    (c) Trust agreements and amendments to the trust agreements
15used to fund a pre-need contract shall be filed with the
16Comptroller.
17    (d) (Blank).
18    (e) A seller or provider shall furnish to the trustee and
19depositary the name of each payor and the amount of payment on
20each such account for which deposit is being so made. Nothing
21shall prevent the trustee from commingling the deposits in any
22such trust fund for purposes of its management and the
23investment of its funds as provided in the Common Trust Fund

 

 

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1Act. In addition, multiple trust funds maintained under this
2Act may be commingled or commingled with other funeral or
3burial related trust funds if all record keeping requirements
4imposed by law are met.
5    (f) (Blank).
6    (g) Upon no less than 30 days prior notice to the
7Comptroller, the seller may change the trustee of the fund.
8Failure to provide the Comptroller with timely prior notice is
9an intentional violation of this Act.
10    (h) A trustee shall at least annually furnish to each
11purchaser a statement containing: (1) the receipts,
12disbursements, and inventory of the trust, including an
13explanation of any fees or expenses charged by the trustee
14under Section 5 of this Act or otherwise, (2) an explanation of
15the purchaser's right to a refund, if any, under this Act, and
16(3) identifying the primary regulator of the trust as a
17corporate fiduciary under state or federal law.
18    (i) If a trustee has reason to believe that the contact
19information for a purchaser is no longer valid, then the
20trustee shall promptly notify the seller. If a trustee has
21reason to believe that the purchaser is deceased, then the
22trustee shall promptly notify the seller. A trustee shall
23report and remit to the State Treasurer any trust funds,
24including both the principal and any accrued earnings or
25losses, relating to an individual account that is presumed
26abandoned under the Revised Uniform Unclaimed Property Act.

 

 

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1(Source: P.A. 96-879, eff. 2-2-10; 97-593, eff. 8-26-11.)
 
2    Section 10. The Revised Uniform Unclaimed Property Act is
3amended by changing Section 15-201 as follows:
 
4    (765 ILCS 1026/15-201)
5    Sec. 15-201. When property presumed abandoned. Subject to
6Section 15-210, the following property is presumed abandoned if
7it is unclaimed by the apparent owner during the period
8specified below:
9        (1) a traveler's check, 15 years after issuance;
10        (2) a money order, 7 years after issuance;
11        (3) any instrument on which a financial organization or
12    business association is directly liable, 3 years after
13    issuance;
14        (4) a state or municipal bond, bearer bond, or
15    original-issue-discount bond, 3 years after the earliest
16    of the date the bond matures or is called or the obligation
17    to pay the principal of the bond arises;
18        (5) a debt of a business association, 3 years after the
19    obligation to pay arises;
20        (6) a demand, savings, or time deposit, 3 years after
21    the later of maturity or the date of the last indication of
22    interest in the property by the apparent owner, except for
23    a deposit that is automatically renewable, 3 years after
24    its initial date of maturity unless the apparent owner

 

 

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1    consented in a record on file with the holder to renewal at
2    or about the time of the renewal;
3        (7) money or a credit owed to a customer as a result of
4    a retail business transaction, other than in-store credit
5    for returned merchandise, 3 years after the obligation
6    arose;
7        (8) an amount owed by an insurance company on a life or
8    endowment insurance policy or an annuity contract that has
9    matured or terminated, 3 years after the obligation to pay
10    arose under the terms of the policy or contract or, if a
11    policy or contract for which an amount is owed on proof of
12    death has not matured by proof of the death of the insured
13    or annuitant, as follows:
14            (A) with respect to an amount owed on a life or
15        endowment insurance policy, the earlier of:
16                (i) 3 years after the death of the insured; or
17                (ii) 2 years after the insured has attained, or
18            would have attained if living, the limiting age
19            under the mortality table on which the reserve for
20            the policy is based; and
21            (B) with respect to an amount owed on an annuity
22        contract, 3 years after the death of the annuitant.
23        (9) funds on deposit or held in trust pursuant to the
24    Illinois Funeral or Burial Funds Act, the earliest of:
25            (A) 2 years after the date of death of the
26        beneficiary;

 

 

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1            (B) one year after the date the beneficiary has
2        attained, or would have attained if living, the age of
3        105 where the holder does not know whether the
4        beneficiary is deceased;
5            (C) 40 years after the contract for prepayment was
6        executed, unless the apparent owner has indicated an
7        interest in the property more than 40 years after the
8        contract for prepayment was executed, in which case, 3
9        years after the last indication of interest in the
10        property by the apparent owner;
11        (10) property distributable by a business association
12    in the course of dissolution or distributions from the
13    termination of a retirement plan, one year after the
14    property becomes distributable;
15        (11) property held by a court, including property
16    received as proceeds of a class action, 3 years after the
17    property becomes distributable;
18        (12) property held by a government or governmental
19    subdivision, agency, or instrumentality, including
20    municipal bond interest and unredeemed principal under the
21    administration of a paying agent or indenture trustee, 3
22    years after the property becomes distributable;
23        (13) wages, commissions, bonuses, or reimbursements to
24    which an employee is entitled, or other compensation for
25    personal services, including amounts held on a payroll
26    card, one year after the amount becomes payable;

 

 

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1        (14) a deposit or refund owed to a subscriber by a
2    utility, one year after the deposit or refund becomes
3    payable, except that any capital credits or patronage
4    capital retired, returned, refunded or tendered to a member
5    of an electric cooperative, as defined in Section 3.4 of
6    the Electric Supplier Act, or a telephone or
7    telecommunications cooperative, as defined in Section
8    13-212 of the Public Utilities Act, that has remained
9    unclaimed by the person appearing on the records of the
10    entitled cooperative for more than 2 years, shall not be
11    subject to, or governed by, any other provisions of this
12    Act, but rather shall be used by the cooperative for the
13    benefit of the general membership of the cooperative; and
14        (15) property not specified in this Section or Sections
15    15-202 through 15-208, the earlier of 3 years after the
16    owner first has a right to demand the property or the
17    obligation to pay or distribute the property arises.
18    Notwithstanding anything to the contrary in this Section
1915-201, and subject to Section 15-210, a deceased owner cannot
20indicate interest in his or her property. If the owner is
21deceased and the abandonment period for the owner's property
22specified in this Section 15-201 is greater than 2 years, then
23the property, other than an amount owed by an insurance company
24on a life or endowment insurance policy or an annuity contract
25that has matured or terminated, shall instead be presumed
26abandoned 2 years from the date of the owner's last indication

 

 

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1of interest in the property.
2(Source: P.A. 100-22, eff. 1-1-18; 100-566, eff. 1-1-18.)
 
3    Section 15. The Illinois Pre-Need Cemetery Sales Act is
4amended by changing Section 16 as follows:
 
5    (815 ILCS 390/16)  (from Ch. 21, par. 216)
6    Sec. 16. Trust funds; disbursements.
7    (a) A trustee shall make no disbursements from the trust
8fund except as provided in this Act.
9    (b) A trustee has a duty to invest and manage the trust
10assets pursuant to the Prudent Investor Rule under the Trusts
11and Trustees Act. Whenever the seller changes trustees pursuant
12to this Act, the trustee must provide written notice of the
13change in trustees to the Comptroller no less than 28 days
14prior to the effective date of such a change in trustee. The
15trustee has an ongoing duty to provide the Comptroller with a
16current and true copy of the trust agreement under which the
17trust funds are held pursuant to this Act.
18    (c) The trustee may rely upon certifications and affidavits
19made to it under the provisions of this Act, and shall not be
20liable to any person for such reliance.
21    (d) A trustee shall be allowed to withdraw from the trust
22funds maintained pursuant to this Act a reasonable fee pursuant
23to the Trusts and Trustees Act.
24    (e) The trust shall be a single-purpose trust fund. In the

 

 

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1event of the seller's bankruptcy, insolvency or assignment for
2the benefit of creditors, or an adverse judgment, the trust
3funds shall not be available to any creditor as assets of the
4seller or to pay any expenses of any bankruptcy or similar
5proceeding, but shall be distributed to the purchasers or
6managed for their benefit by the trustee holding the funds.
7Except in an action by the Comptroller to revoke a license
8issued pursuant to this Act and for creation of a receivership
9as provided in this Act, the trust shall not be subject to
10judgment, execution, garnishment, attachment, or other seizure
11by process in bankruptcy or otherwise, nor to sale, pledge,
12mortgage, or other alienation, and shall not be assignable
13except as approved by the Comptroller. The changes made by this
14amendatory Act of the 91st General Assembly are intended to
15clarify existing law regarding the inability of licensees to
16pledge the trust.
17    (f) Because it is not known at the time of deposit or at
18the time that income is earned on the trust account to whom the
19principal and the accumulated earnings will be distributed, for
20purposes of determining the Illinois Income Tax due on these
21trust funds, the principal and any accrued earnings or losses
22relating to each individual account shall be held in suspense
23until the final determination is made as to whom the account
24shall be paid.
25    (g) A trustee shall at least annually furnish to each
26purchaser a statement identifying: (1) the receipts,

 

 

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1disbursements, and inventory of the trust, including an
2explanation of any fees or expenses charged by the trustee
3under paragraph (d) of this Section or otherwise, (2) an
4explanation of the purchaser's right to a refund, if any, under
5this Act, and (3) the primary regulator of the trust as a
6corporate fiduciary under state or federal law.
7    (h) If a trustee has reason to believe that the contact
8information for a purchaser is no longer valid, then the
9trustee shall promptly notify the seller. If a trustee has
10reason to believe that the purchaser is deceased, then the
11trustee shall promptly notify the seller. A trustee shall
12report and remit to the State Treasurer any trust funds,
13including both the principal and any accrued earnings or
14losses, relating to an individual account that is presumed
15abandoned under the Revised Uniform Unclaimed Property Act.
16(Source: P.A. 96-879, eff. 2-2-10.)