Full Text of HB5823 98th General Assembly
HB5823 98TH GENERAL ASSEMBLY |
| | 98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014 HB5823 Introduced , by Rep. Josh Harms SYNOPSIS AS INTRODUCED: |
| 765 ILCS 1025/2 | from Ch. 141, par. 102 | 765 ILCS 1025/2a | from Ch. 141, par. 102a |
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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 |
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| 1 | | AN ACT concerning civil law.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Uniform Disposition of Unclaimed Property | 5 | | Act 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; | 8 | | presumption of
abandonment. The following property held or | 9 | | owing by a banking or financial
organization is presumed | 10 | | abandoned:
| 11 | | (a) Any demand, savings, or matured time deposit with
a | 12 | | banking organization, together with any interest or dividend | 13 | | thereon,
excluding any charges that may lawfully be withheld, | 14 | | unless 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 | 15 | | owner in the banking organization's books and records is the | 16 | | same for both the inactive account and for the active account.
| 17 | | (b) Any funds paid toward the purchase of withdrawable
| 18 | | shares
or other interest in a financial organization, or any | 19 | | deposit made, and any interest or dividends thereon, excluding | 20 | | any charges
that may be lawfully withheld, unless the owner has | 21 | | within 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 | 20 | | owner in the financial organization's books and records is the | 21 | | same for both the inactive account and for the active account.
| 22 | | (c) Any sum payable on checks or on written
instruments on | 23 | | which a banking or financial
organization
or business | 24 | | association is directly liable including, by way of | 25 | | illustration
but not of limitation, certificates of deposit, | 26 | | drafts, money orders and
travelers checks, that with the |
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| 1 | | exception of travelers checks and unclaimed wages, payroll, and | 2 | | salary has been
outstanding for more than 8 5 years from the | 3 | | date it was payable, or from the
date of its issuance if | 4 | | payable on demand, or, in the case of travelers checks,
that | 5 | | has been outstanding for more than 15 years from the date of | 6 | | its issuance,
or, in the case of unclaimed wages, payroll, or | 7 | | salary, that has been outstanding for more than one year from | 8 | | the date of its issuance, excluding any charges that may be | 9 | | lawfully withheld
relating to money orders issued by currency | 10 | | exchanges,
unless the owner has within 8 5 years (or within 15 | 11 | | years in the case of travelers
checks or one year in the case | 12 | | of unclaimed wages, payroll, or salary) corresponded in writing | 13 | | with the banking or financial organization or
business | 14 | | association concerning it, or otherwise indicated an interest | 15 | | as
evidenced by a memorandum on file with the banking or | 16 | | financial organization or
business association.
| 17 | | (d) Any funds or other personal property, tangible or | 18 | | intangible, removed
from a safe deposit box or any other | 19 | | safekeeping repository or agency or
collateral deposit box on | 20 | | which the lease or rental period
has expired due to nonpayment | 21 | | of rental charges or other reason, or any
surplus amounts | 22 | | arising from the sale thereof pursuant to law, that have
been | 23 | | unclaimed by the owner for more than 8 5 years from the date on | 24 | | which
the lease or rental period expired, subject to lien of | 25 | | the holder for
reimbursement of costs incurred in the opening | 26 | | of a safe deposit box as
determined by the holder's regular |
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| 1 | | schedule of charges.
| 2 | | (e) Notwithstanding any other provision of this Section, no | 3 | | deposit
except passbook, checking, NOW accounts, super NOW | 4 | | accounts, money market
accounts, or such similar accounts as | 5 | | established by Rule of the
State Treasurer,
held by a banking | 6 | | or financial organization shall be presumed abandoned if
with | 7 | | respect to such a deposit which specifies a definite maturity | 8 | | date,
such organization was authorized in writing to extend or | 9 | | rollover the
account for an additional like period and such | 10 | | organization does so extend.
Such deposits are not presumed | 11 | | abandoned less than 8 5 years from that final
maturity date.
| 12 | | Property of any kind held in an individual retirement account | 13 | | (IRA) is
not presumed abandoned earlier than 8 5 years after | 14 | | the owner attains the age at
which distributions from the | 15 | | account become mandatory under law.
| 16 | | (f) Notwithstanding any other provision of this Section, | 17 | | money of a minor
deposited pursuant to Section 24-21 of the | 18 | | Probate Act of 1975 shall not be
presumed abandoned earlier | 19 | | than 8 5 years after the minor attains legal age.
Such money | 20 | | shall be deposited in an account which shall indicate the birth | 21 | | date
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 | 25 | | to Section 11 of
this Act, all property and any earnings |
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| 1 | | thereon to which the owner would be
entitled that have remained | 2 | | unclaimed for 8 5 years and are therefore presumed
abandoned. | 3 | | Before reporting and delivering property as required under this
| 4 | | Act, a business association may deduct from the amount of | 5 | | otherwise reportable
intangible personal property the economic | 6 | | loss suffered by it in connection
with that intangible personal | 7 | | property arising from transactions involving the
sale of | 8 | | tangible personal property at retail. This property shall | 9 | | consist 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 | 22 | | property due or
owed by a business association to or for the | 23 | | benefit of another business
association resulting from a | 24 | | transaction occurring in the normal and ordinary
course of | 25 | | business shall be exempt from the provisions of this Act.
| 26 | | (c) Notwithstanding the provisions of subsection (a), |
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| 1 | | unclaimed wages, payroll, and salary, in any form, shall be | 2 | | reported after remaining unclaimed for one year, pursuant to | 3 | | Section 2. | 4 | | (Source: P.A. 97-270, eff. 8-8-11.)
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