SB1933 EngrossedLRB097 08608 AJO 50210 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 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.
12    The foregoing apply so long as the mailing address for the
13owner in the banking organization's books and records is the
14same for both the inactive account and for the active account.
15    (b) Any funds paid toward the purchase of withdrawable
16shares or other interest in a financial organization, or any
17deposit made, and any interest or dividends thereon, excluding
18any charges that may be lawfully withheld, unless the owner has
19within 5 years:
20        (1) Increased or decreased the amount of the funds, or
21    deposit, or presented an appropriate record for the
22    crediting of interest or dividends; or
23        (2) Corresponded in writing with the financial
24    organization concerning the funds or deposit;
25        (3) Otherwise indicated an interest in the funds or
26    deposit as evidenced by a memorandum on file with the

 

 

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1    financial organization; or
2        (4) Engaged in the following activity regarding other
3    funds or loan accounts with the financial organization:
4            (i) undertook one or more the above actions
5        described in subsection (b) of this Section regarding
6        any account that appears on a consolidated statement
7        with the inactive account;
8            (ii) increased or decreased the amount of funds in
9        any other account the owner has with the financial
10        organization; or
11            (iii) engaged in any other relationship with the
12        financial organization, including payment of any
13        amounts due on a loan.
14    The foregoing apply so long as the mailing address for the
15owner in the financial organization's books and records is the
16same for both the inactive account and for the active account.
17    (c) Any sum payable on checks or on written instruments on
18which a banking or financial organization or business
19association is directly liable including, by way of
20illustration but not of limitation, certificates of deposit,
21drafts, money orders and travelers checks, that with the
22exception of travelers checks and unclaimed wages, payroll, and
23salary, has been outstanding for more than 5 years from the
24date it was payable, or from the date of its issuance if
25payable on demand, or, in the case of travelers checks, that
26has been outstanding for more than 15 years from the date of

 

 

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1its issuance, or, in the case of unclaimed wages, payroll, or
2salary, that has been outstanding for more than one year from
3the date of its issuance, excluding any charges that may be
4lawfully withheld relating to money orders issued by currency
5exchanges, unless the owner has within 5 years (or within 15
6years in the case of travelers checks or one year in the case
7of unclaimed wages, payroll, or salary) corresponded in writing
8with the banking or financial organization or business
9association concerning it, or otherwise indicated an interest
10as evidenced by a memorandum on file with the banking or
11financial organization or business association.
12    (d) Any funds or other personal property, tangible or
13intangible, removed from a safe deposit box or any other
14safekeeping repository or agency or collateral deposit box on
15which the lease or rental period has expired due to nonpayment
16of rental charges or other reason, or any surplus amounts
17arising from the sale thereof pursuant to law, that have been
18unclaimed by the owner for more than 5 years from the date on
19which the lease or rental period expired, subject to lien of
20the holder for reimbursement of costs incurred in the opening
21of a safe deposit box as determined by the holder's regular
22schedule of charges.
23    (e) Notwithstanding any other provision of this Section, no
24deposit except passbook, checking, NOW accounts, super NOW
25accounts, money market accounts, or such similar accounts as
26established by Rule of the State Treasurer, held by a banking

 

 

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1or financial organization shall be presumed abandoned if with
2respect to such a deposit which specifies a definite maturity
3date, such organization was authorized in writing to extend or
4rollover the account for an additional like period and such
5organization does so extend. Such deposits are not presumed
6abandoned less than 5 years from that final maturity date.
7Property of any kind held in an individual retirement account
8(IRA) is not presumed abandoned earlier than 5 years after the
9owner attains the age at which distributions from the account
10become mandatory under law.
11    (f) Notwithstanding any other provision of this Section,
12money of a minor deposited pursuant to Section 24-21 of the
13Probate Act of 1975 shall not be presumed abandoned earlier
14than 5 years after the minor attains legal age. Such money
15shall be deposited in an account which shall indicate the birth
16date of the minor.
17(Source: P.A. 94-255, eff. 1-1-06.)
 
18    (765 ILCS 1025/2a)  (from Ch. 141, par. 102a)
19    Sec. 2a. (a) Business associations shall report, pursuant
20to Section 11 of this Act, all property and any earnings
21thereon to which the owner would be entitled that have remained
22unclaimed for 5 years and are therefore presumed abandoned.
23Before reporting and delivering property as required under this
24Act, a business association may deduct from the amount of
25otherwise reportable intangible personal property the economic

 

 

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1loss suffered by it in connection with that intangible personal
2property arising from transactions involving the sale of
3tangible personal property at retail. This property shall
4consist of, but is not limited to:
5        (1) (blank); unclaimed wages;
6        (2) deposits or payment for repair or purchase of goods
7    or services;
8        (3) credit checks or memos, or customer overpayments;
9        (4) stocks, bonds, or any other type of securities or
10    debt instruments, and interest and dividends therefrom;
11        (5) unidentified remittances, unrefunded overcharges;
12        (6) unpaid claims, unpaid accounts payable or unpaid
13    commissions; and
14        (7) credit balances - accounts receivable, checks
15    written off, employee bond buying and profit-sharing.
16    (b) Notwithstanding the provisions of subsection (a), any
17property due or owed by a business association to or for the
18benefit of another business association resulting from a
19transaction occurring in the normal and ordinary course of
20business shall be exempt from the provisions of this Act.
21    (c) Notwithstanding the provisions of subsection (a),
22unclaimed wages, payroll, and salary, in any form, shall be
23reported after remaining unclaimed for one year, pursuant to
24Section 2.
25(Source: P.A. 90-167, eff. 7-23-97; 91-688, eff. 3-23-00.)
 
26    Section 99. Effective date. This Act takes effect upon

 

 

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1becoming law.