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90_HB2210eng
765 ILCS 1025/1 from Ch. 141, par. 101
765 ILCS 1025/2 from Ch. 141, par. 102
765 ILCS 1025/2a from Ch. 141, par. 102a
765 ILCS 1025/4 from Ch. 141, par. 104
765 ILCS 1025/5 from Ch. 141, par. 105
765 ILCS 1025/6 from Ch. 141, par. 106
765 ILCS 1025/7 from Ch. 141, par. 107
765 ILCS 1025/7a from Ch. 141, par. 107a
765 ILCS 1025/8 from Ch. 141, par. 108
765 ILCS 1025/8.1 from Ch. 141, par. 108.1
765 ILCS 1025/9 from Ch. 141, par. 109
765 ILCS 1025/10.5
765 ILCS 1025/11 from Ch. 141, par. 111
765 ILCS 1025/12 from Ch. 141, par. 112
765 ILCS 1025/13 from Ch. 141, par. 113
765 ILCS 1025/21 from Ch. 141, par. 121
765 ILCS 1025/23 from Ch. 141, par. 123
765 ILCS 1025/23.5
765 ILCS 1025/24 from Ch. 141, par. 124
765 ILCS 1025/25.5
Amends the Uniform Unclaimed Property Distribution
Act. Removes references limiting the applicability of the
Act to activity in this State. Provides for the
inapplicability of a number of provisions for any examination
commenced by the Department of Financial Institutions after
January 1, 1998. Makes other changes. Effective immediately.
LRB9004658SMcwA
HB2210 Engrossed LRB9004658SMcwA
1 AN ACT regarding the disposition of unclaimed property.
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 1, 2, 2a, 4, 5, 6, 7, 7a,
6 8, 8.1, 9, 10.5, 11, 12, 13, 21, 23, 23.5, 24, and 25.5 as
7 follows:
8 (765 ILCS 1025/1) (from Ch. 141, par. 101)
9 Sec. 1. As used in this Act, unless the context
10 otherwise requires:
11 (a) "Banking organization" means any bank, trust
12 company, savings bank, industrial bank, land bank, safe
13 deposit company, or a private banker engaged in business in
14 this State.
15 (b) "Business association" means any corporation, joint
16 stock company, business trust, partnership, or any
17 association, limited liability company, or other business
18 entity consisting of one or more persons, whether or not for
19 profit for business purposes of 2 or more individuals.
20 (c) "Financial organization" means any savings and loan
21 association, building and loan association, credit union,
22 currency exchange, co-operative bank, mutual funds, or
23 investment company, engaged in business in this State.
24 (d) "Holder" means any person in possession of property
25 subject to this Act belonging to another, or who is trustee
26 in case of a trust, or is indebted to another on an
27 obligation subject to this Act.
28 (e) "Life insurance corporation" means any association
29 or corporation transacting within this State the business of
30 insurance on the lives of persons or insurance appertaining
31 thereto, including, but not by way of limitation, endowments
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1 and annuities.
2 (f) "Owner" means a depositor in case of a deposit, a
3 beneficiary in case of a trust, a creditor, claimant, or
4 payee in case of other property choses in action, or any
5 person having a legal or equitable interest in property
6 subject to this Act, or his legal representative.
7 (g) "Person" means any individual, business association,
8 financial organization, government or political subdivision
9 or agency, public corporation, public authority, estate,
10 trust, 2 or more persons having a joint or common interest,
11 or any other legal or commercial entity.
12 (h) "Utility" means any person who owns or operates
13 within this State, for public use, any plant, equipment,
14 property, franchise, or license for the transmission of
15 communications or the production, storage, transmission,
16 sale, delivery, or furnishing of electricity, water, steam,
17 oil or gas.
18 (i) "Director" means the Director of the Illinois
19 Department of Financial Institutions.
20 (j) "Insurance company" means any person transacting the
21 kinds of business enumerated in Section 4 of the Illinois
22 Insurance Code other than life insurance.
23 (k) "Economic loss", as used in Sections 2a and 9 of
24 this Act includes, but is not limited to, delivery charges,
25 mark-downs and write-offs, carrying costs, restocking
26 charges, lay-aways, special orders, issuance of credit memos,
27 and the costs of special services or goods provided that
28 reduce the property value or that result in lost sales
29 opportunity.
30 (l) "Reportable property" means property, tangible or
31 intangible, presumed abandoned under this Act that must be
32 appropriately and timely reported and remitted to the
33 Department under this Act. Interest, dividends, stock splits,
34 warrants, or other rights that become reportable property
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1 under this Act include the underlying security or commodity
2 giving rise to the interest, dividend, split, warrant, or
3 other right to which the owner would be entitled.
4 (Source: P.A. 88-435; 89-604, eff. 8-2-96.)
5 (765 ILCS 1025/2) (from Ch. 141, par. 102)
6 Sec. 2. The following property held or owing by a
7 banking or financial organization is presumed abandoned:
8 (a) Any demand, savings, or matured time deposit made in
9 this State with a banking organization, together with any
10 interest or dividend thereon, excluding any charges that may
11 lawfully be withheld, unless the owner has, within 5 years:
12 (1) Increased or decreased the amount of the
13 deposit, or presented the passbook or other similar
14 evidence of the deposit for the crediting of interest; or
15 (2) Corresponded in writing with the banking
16 organization concerning the deposit; or
17 (3) Otherwise indicated an interest in the deposit
18 as evidenced by a memorandum on file with the banking
19 organization.
20 (b) Any funds paid in this State toward the purchase of
21 withdrawable shares or other interest in a financial
22 organization, or any deposit made therewith in this State,
23 and any interest or dividends thereon, excluding any charges
24 that may be lawfully withheld, unless the owner has within 5
25 years:
26 (1) Increased or decreased the amount of the funds,
27 or deposit, or presented an appropriate record for the
28 crediting of interest or dividends; or
29 (2) Corresponded in writing with the financial
30 organization concerning the funds or deposit; or
31 (3) Otherwise indicated an interest in the funds or
32 deposit as evidenced by a memorandum on file with the
33 financial organization.
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1 (c) Any sum payable on checks certified in this State or
2 on written instruments issued in this State on which a
3 banking or financial organization or business association is
4 directly liable including, by way of illustration but not of
5 limitation, certificates of deposit, drafts, money orders and
6 travelers checks, that with the exception of travelers checks
7 has been outstanding for more than 5 years from the date it
8 was payable, or from the date of its issuance if payable on
9 demand, or, in the case of travelers checks, that has been
10 outstanding for more than 15 years from the date of its
11 issuance, unless the owner has within 5 years or within 15
12 years in the case of travelers checks 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 in
20 this State on which the lease or rental period has expired
21 due to nonpayment of rental charges or other reason, or any
22 surplus amounts arising from the sale thereof pursuant to
23 law, that have been unclaimed by the owner for more than 5
24 years from the date on which the lease or rental period
25 expired, subject to lien of the holder for reimbursement of
26 costs incurred in the opening of a safe deposit box as
27 determined by the holder's regular schedule of charges.
28 (e) Notwithstanding any other provision of this Section,
29 no deposit except passbook, checking, NOW accounts, super NOW
30 accounts, money market accounts, or such similar accounts as
31 established by Rule of the Director, held by a banking or
32 financial organization shall be presumed abandoned if with
33 respect to such a deposit which specifies a definite maturity
34 date, such organization was authorized in writing to extend
HB2210 Engrossed -5- LRB9004658SMcwA
1 or rollover the account for an additional like period and
2 such organization does so extend. Such deposits are not
3 presumed abandoned less than 5 years from that final maturity
4 date. Property of any kind held in an individual retirement
5 account (IRA) is not presumed abandoned earlier than 5 years
6 after the owner attains the age at which distributions from
7 the account become mandatory under law.
8 (Source: P.A. 89-604, eff. 8-2-96.)
9 (765 ILCS 1025/2a) (from Ch. 141, par. 102a)
10 Sec. 2a. Business associations shall report, pursuant to
11 Section 11 of this Act, all property and any earnings thereon
12 to which the owner would be entitled that have remained
13 unclaimed for 5 years and are therefore presumed abandoned.
14 Before reporting and delivering property as required under
15 this Act, a business association may deduct from the amount
16 of otherwise reportable intangible personal property the
17 economic loss suffered by it in connection with that
18 intangible personal property arising from transactions
19 involving the sale of tangible personal property at retail.
20 This property shall consist of, but is not limited to:
21 (1) unclaimed wages;
22 (2) deposits or payment for repair or purchase of
23 goods or services;
24 (3) credit checks or memos, or customer
25 overpayments;
26 (4) stocks, bonds, or any other type of securities
27 or debt instruments, and interest and dividends
28 therefrom;
29 (5) unidentified remittances, unrefunded
30 overcharges;
31 (6) unpaid claims, unpaid accounts payable or
32 unpaid commissions; and
33 (7) credit balances-accounts receivable, checks
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1 written off, employee bond buying and profit-sharing.
2 (Source: P.A. 87-925; 88-435.)
3 (765 ILCS 1025/4) (from Ch. 141, par. 104)
4 Sec. 4. The following funds held or owing by any utility
5 are presumed abandoned:
6 (a) Any deposit made by a subscriber with a utility to
7 secure payment for, or any sum paid in advance for, utility
8 services to be furnished in this State, less any lawful
9 deduction, that has remained unclaimed by the person
10 appearing on the records of the utility entitled thereto for
11 more than 5 years after the termination of the services for
12 which the deposit or advance payment was made.
13 (b) Any sum which a utility has been ordered to refund
14 and which was received for utility services rendered in this
15 State, together with any interest thereon, less any lawful
16 deductions, that has remained unclaimed by the person
17 appearing on the records of the utility entitled thereto for
18 more than 5 years after the date it became payable in
19 accordance with the final determination or order providing
20 for the refund.
21 (c) Any capital credits or patronage capital retired,
22 returned, refunded or tendered to a member of an electric
23 cooperative as defined in Section 3.4 of the Electric
24 Supplier Act or a telephone or telecommunications cooperative
25 as defined in Section 13-212 of the Public Utilities Act that
26 have remained unclaimed by the person appearing on the
27 records of the cooperative entitled thereto for more than 2
28 years. Such unclaimed capital credits or patronage capital
29 shall not be subject to, or governed by, any other provisions
30 of this Act, but rather shall be used by the cooperative for
31 the benefit of the general membership of the cooperative.
32 (Source: P.A. 86-1421; 87-925.)
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1 (765 ILCS 1025/5) (from Ch. 141, par. 105)
2 Sec. 5. The provisions of this Act shall not apply to any
3 amount held or owing by a banking organization as agent, or
4 as trustee of an express trust, for the purpose of making
5 payment to holders of, or in respect of stocks, bonds, or
6 other securities of a governmental or other public issuer, or
7 of a business association other than a business association
8 which shall have discontinued the conduct of its business, or
9 the corporate existence of which shall have terminated,
10 without the right to receive such amount having passed to a
11 successor or successors.
12 As of January 1, 1998, this Section shall not be
13 applicable unless the Department has commenced, but not
14 finalized, an examination of the holder as of that date and
15 the property is included in a final examination report for
16 the period covered by the examination.
17 (Source: Laws 1961, p. 3426.)
18 (765 ILCS 1025/6) (from Ch. 141, par. 106)
19 Sec. 6. All intangible personal property distributable in
20 the course of a voluntary dissolution of a business
21 association, banking organization, or financial organization
22 organized under the laws of or created in this State, that is
23 unclaimed by the owner within 2 years after the date for
24 final distribution, is presumed abandoned.
25 (Source: Laws 1961, p. 3426.)
26 (765 ILCS 1025/7) (from Ch. 141, par. 107)
27 Sec. 7. All intangible personal property and any income
28 or increment thereon, held in a fiduciary capacity (other
29 than as trustee of an active express trust) for the benefit
30 of another person is presumed abandoned unless the owner has,
31 within 5 years after it becomes payable or distributable,
32 increased or decreased the principal, accepted payment of
HB2210 Engrossed -8- LRB9004658SMcwA
1 principal or income, corresponded in writing concerning the
2 property, or otherwise indicated an interest as evidenced by
3 a memorandum on file with the fiduciary.;
4 A fiduciary may deduct any actual cost incurred in
5 connection with the administration of suspense, abeyant, and
6 similar accounts arising out of its fiduciary, stock
7 transfer, corporation trust, and securities processing
8 activities but not to exceed 8% of the property remitted.
9 (a) If the property is held by a banking organization or
10 a financial organization, or by a business association
11 organized under the laws of or created in this State; or
12 (b) If it is held by a business association, doing
13 business in this State, but not organized under the laws of
14 or created in this State, and the records of the business
15 association indicate that the last known address of the
16 person entitled thereto is in this State; or
17 (c) If it is held in this State by any other person.
18 (Source: P.A. 87-925.)
19 (765 ILCS 1025/7a) (from Ch. 141, par. 107a)
20 Sec. 7a. The provisions of this Act shall not apply to an
21 active express trust.
22 As of January 1, 1998, this Section shall not be
23 applicable unless the Department has commenced, but not
24 finalized, an examination of the holder as of that date and
25 the property is included in a final examination report for
26 the period covered by the examination.
27 (Source: Laws 1961, p. 3426.)
28 (765 ILCS 1025/8) (from Ch. 141, par. 108)
29 Sec. 8. All funds and intangible personal property held
30 for the owner by any court, public corporation, public
31 authority, or public officer of this State, or a political
32 subdivision thereof, that has remained unclaimed by the owner
HB2210 Engrossed -9- LRB9004658SMcwA
1 for more than 7 years is presumed abandoned. This Section
2 does not apply to deposits made to municipalities as a
3 condition for the issuance of a building permit.
4 (Source: P.A. 88-355.)
5 (765 ILCS 1025/8.1) (from Ch. 141, par. 108.1)
6 Sec. 8.1. Property held by governments.
7 (a) All tangible personal property or intangible
8 personal property, including choses in action in amounts
9 certain, and all debts owed or entrusted funds or other
10 property held by any federal, state or local government or
11 governmental subdivision, agency, entity, officer or
12 appointee thereof, shall be presumed abandoned if in this
13 State if the last known address of the owner of the property
14 is in this State and the property has remained unclaimed for
15 7 years.
16 This Section applies to all abandoned property held by
17 any federal, state or local government or governmental
18 subdivision, agency, entity, officer or appointee thereof, on
19 the effective date of this amendatory Act of 1991 or at any
20 time thereafter, regardless of when the property became or
21 becomes presumptively abandoned.
22 (Source: P.A. 87-206.)
23 (765 ILCS 1025/9) (from Ch. 141, par. 109)
24 Sec. 9. All intangible personal property, not otherwise
25 covered by this Act, including any income or increment
26 thereon that the owner would be entitled to and deducting any
27 lawful charges, that is held or owing in this State in the
28 ordinary course of the holder's business and has remained
29 unclaimed by the owner for more than 5 years after it became
30 payable or distributable is presumed abandoned. Before
31 reporting and delivering property as required under this Act,
32 a business association may deduct from the amount of
HB2210 Engrossed -10- LRB9004658SMcwA
1 otherwise reportable intangible personal property the
2 economic loss suffered by it in connection with that
3 intangible personal property arising from transactions
4 involving the sale of tangible personal property at retail.
5 Except as provided in Section 10.5, this provision shall not
6 apply to intangible personal property held prior to October
7 1, 1968 by business associations. Property remitted to the
8 State pursuant to this Act, prior to the effective date of
9 this amendatory Act of 1982, shall not be affected by this
10 amendatory Act of 1982.
11 (Source: P.A. 87-925; 88-435.)
12 (765 ILCS 1025/10.5)
13 Sec. 10.5. Nonapplicability of Act.
14 (a) Unless the tangible or intangible personal property
15 was identified in a final examination report by the Director
16 issued pursuant to a duly authorized examination and the
17 final examination report was received by the holder on or
18 before May 1, 1993, this Act does not apply to (i) travelers
19 checks reportable as unclaimed property before July 1, 1973,
20 (ii) funds held by any federal, state, or local government or
21 governmental subdivision, agency, entity, officer, or
22 appointee thereof reportable as unclaimed property before
23 July 1, 1981, or (iii) any other tangible or intangible
24 personal property reportable as unclaimed property before
25 July 1, 1985, based upon the presumptive abandonment period
26 in effect on that date.
27 (b) For reports required to be filed after December 31,
28 1993, this Act does not apply to any reportable tangible or
29 intangible personal property held prior to for the period
30 required for presumptive abandonment of the property plus the
31 9 years immediately preceding the beginning of that period.
32 (c) Subsections (a) and (b) do not apply to property
33 held by a trust division or trust department or by a trust
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1 company, or affiliate of any of the foregoing that provides
2 nondealer corporate custodial services for securities or
3 securities transactions, organized under the laws of this or
4 another state or the United States. Nothing in this
5 subsection shall exempt from subsections (a) and (b) any
6 reportable property generated from the functions of an
7 affiliate of a trust division, trust department, or trust
8 company that is a bank, other than those functions of a bank
9 limited to providing nondealer corporate custodial services
10 for securities or securities transactions.
11 As of January 1, 1998, this subsection shall not be
12 applicable unless the Department has commenced, but not
13 finalized, an examination of the holder as of that date and
14 the property is included in a final examination report for
15 the period covered by the examination.
16 (d) Subsections (a) and (b) do not apply to property
17 held by a holder who files a fraudulent report or fails to
18 file a report.
19 (e) Subsections (a) and (b) do not apply if, as a result
20 of their application, another state would have a legal right
21 to delivery of the property and such other state has
22 commenced proceedings with respect to the property.
23 (Source: P.A. 88-435.)
24 (765 ILCS 1025/11) (from Ch. 141, par. 111)
25 Sec. 11. (a) Except as otherwise provided in subsection
26 (c) of Section 4, every person holding funds or other
27 property, tangible or intangible, presumed abandoned under
28 this Act shall report and remit all abandoned property
29 specified in the report to the Director with respect to the
30 property as hereinafter provided. The Director may exempt
31 any businesses from the reporting requirement if he deems
32 such businesses unlikely to be holding unclaimed property.
33 (b) The information shall be obtained in one or more
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1 reports as required by the Director. The information shall
2 be verified and shall include:
3 (1) The name, social security or federal tax
4 identification number, if known, and last known address,
5 including zip code, of each person appearing from the
6 records of the holder to be the owner of any property of
7 the value of $25 or more presumed abandoned under this
8 Act;
9 (2) In case of unclaimed funds of life insurance
10 corporations the full name of the insured and any
11 beneficiary or annuitant and the last known address
12 according to the life insurance corporation's records;
13 (3) The date when the property became payable,
14 demandable, or returnable, and the date of the last
15 transaction with the owner with respect to the property;
16 and
17 (4) Other information which the Director prescribes
18 by rule as necessary for the administration of this Act.
19 (c) If the person holding property presumed abandoned is
20 a successor to other persons who previously held the property
21 for the owner, or if the holder has changed his name while
22 holding the property, he shall file with his report all prior
23 known names and addresses of each holder of the property.
24 Nothing in this subsection shall exempt from subsections (a)
25 and (b) any reportable property generated from the functions
26 of an affiliate of a trust division, trust department, or
27 trust company that is a bank, other than those functions of a
28 bank limited to providing nondealer corporate custodial
29 services for securities or securities transactions.
30 (d) The report and remittance of the property specified
31 in the report shall be filed by banking organizations,
32 financial organizations, insurance companies other than life
33 insurance corporations, and governmental entities before
34 November 1 of each year as of June 30 next preceding. The
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1 report and remittance of the property specified in the report
2 shall be filed by business associations, utilities, and life
3 insurance corporations before May 1 of each year as of
4 December 31 next preceding. The Director may postpone the
5 reporting date upon written request by any person required to
6 file a report.
7 (e) Before filing the annual report, the holder of
8 property presumed abandoned under this Act shall communicate
9 with the owner at his last known address if any address is
10 known to the holder, setting forth the provisions hereof
11 necessary to occur in order to prevent abandonment from being
12 presumed. If the holder has not communicated with the owner
13 at his last known address at least 120 days before the
14 deadline for filing the annual report, the holder shall mail,
15 at least 60 days before that deadline, a letter by first
16 class mail to the owner at his last known address unless, if
17 any address is not shown to be inaccurate is known to the
18 holder, setting forth the provisions hereof necessary to
19 prevent abandonment from being presumed.
20 (f) Verification, if made by a partnership, shall be
21 executed by a partner; if made by an unincorporated
22 association or private corporation, by an officer; and if
23 made by a public corporation, by its chief fiscal officer.
24 (g) Any person who has possession of property which he
25 has reason to believe will be reportable in the future as
26 unclaimed property, may report and deliver it prior to the
27 date required for such reporting in accordance with this
28 Section and is then relieved of responsibility as provided in
29 Section 14.
30 (h)(1) Records pertaining to presumptively abandoned
31 property held by a trust division or trust department or by a
32 trust company, or affiliate of any of the foregoing that
33 provides nondealer corporate custodial services for
34 securities or securities transactions, organized under the
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1 laws of this or another state or the United States shall be
2 retained until the property is delivered to the Director.
3 As of January 1, 1998, this subdivision (h)(1) shall not
4 be applicable unless the Department has commenced, but not
5 finalized, an examination of the holder as of that date and
6 the property is included in a final examination report for
7 the period covered by the examination. The preceding sentence
8 does not apply to records pertaining to presumptively
9 abandoned property held by an affiliate of a trust division,
10 trust department, or trust company that is a bank, other than
11 those functions of a bank limited to providing nondealer
12 corporate custodial services for securities or securities
13 transactions.
14 (2) In the case of all other holders commencing on the
15 effective date of this amendatory Act of 1993, property
16 records for the period required for presumptive abandonment
17 plus the 9 years immediately preceding the beginning of that
18 period shall be retained for 5 years after the property was
19 reportable.
20 (i) The Director may promulgate rules establishing the
21 format and media to be used by a holder in submitting reports
22 required under this Act.
23 (Source: P.A. 87-925; 88-435.)
24 (765 ILCS 1025/12) (from Ch. 141, par. 112)
25 Sec. 12. (a) Within 120 days from the filing of the
26 annual report and delivery of the abandoned property
27 specified in the report as required by Section 11, the
28 Director shall cause notice to be published once in an
29 English language newspaper of general circulation in the
30 county in this State in which is located the last known
31 address of any person to be named in the notice. However,
32 with respect to any annual report and delivery of abandoned
33 property that is made after June 30, 1992, and before July 1,
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1 1993, the Director shall cause the notice required by this
2 Section to be published within 170 days, rather than within
3 120 days, after the filing of the report and delivery of the
4 abandoned property as required by Section 11. If no address
5 is listed or if the address is outside this State, the notice
6 shall be published in the county in which the holder of the
7 abandoned property has his principal place of business within
8 this State. However, if an out-of-state address is in a state
9 that is not a party to a reciprocal agreement with this State
10 concerning abandoned property, the notice may be published in
11 the Illinois Register.
12 (b) The published notice shall be entitled "Notice of
13 Names of Persons Appearing to be Owners of Abandoned
14 Property", and shall contain:
15 (1) The names in alphabetical order and last known
16 addresses, if any, of persons listed in the report and
17 entitled to notice within the county as hereinbefore
18 specified.
19 (2) A statement that information concerning the
20 amount or description of the property and the name and
21 address of the holder may be obtained by any persons
22 possessing an interest in the property by addressing an
23 inquiry to the Director.
24 (3) A statement that the abandoned property has
25 been placed in the custody of the Director to whom all
26 further claims must thereafter be directed.
27 (c) The Director is not required to publish in such
28 notice any item of less than $100 or any item for which the
29 address of the last known owner is in a state that has a
30 reciprocal agreement with this State concerning abandoned
31 property unless he deems such publication to be in the public
32 interest.
33 (Source: P.A. 86-1162; 87-925.)
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1 (765 ILCS 1025/13) (from Ch. 141, par. 113)
2 Sec. 13. Every person who has filed a report as provided
3 by Section 11 shall deliver to the Director all abandoned
4 property specified in the annual report on the same date that
5 the annual report is filed. Annual report mailing costs and
6 Costs for communicating with owners by mail as required by
7 subsection (e) of Section 11 may be deducted from the
8 property specified in the report. Any such person, who
9 pursuant to a statutory requirement, filed a bond or bonds
10 pertaining to such abandoned property with the Director or
11 his predecessor, may also deduct an amount equivalent to that
12 part of the bond premium attributable to such abandoned
13 property. Provided, however, that if the presumption of
14 abandonment is erroneous, the holder need not pay or deliver
15 the property, which will no longer be presumed abandoned, to
16 the Director, but in lieu thereof shall file a verified
17 written explanation of the proof of claim or of the error in
18 the presumption of abandonment.
19 (Source: P.A. 86-1162.)
20 (765 ILCS 1025/21) (from Ch. 141, par. 121)
21 Sec. 21. A final administrative decision of the Director
22 in respect to a claim filed hereunder shall be subject to
23 judicial review pursuant to the provisions of the
24 Administrative Review Law, as heretofore or hereafter
25 amended, and the rules adopted pursuant thereto. The term
26 "administrative decision" is defined as in Section 3-101 of
27 the Code of Civil Procedure. The review action may be
28 instituted by any person adversely affected or aggrieved by
29 the decision.
30 The Department shall furnish a certified transcript of
31 the record to any party of record upon the payment of the
32 actual page charge of the record to a commercial reporting
33 service for the preparation of the transcript. If no hearing
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1 was held, the Director shall deliver a copy of his decision
2 stating the reasons upon which the claim was denied and
3 deliver it to any party of record within 20 days of demand.
4 (Source: P.A. 82-783.)
5 (765 ILCS 1025/23) (from Ch. 141, par. 123)
6 Sec. 23. (a) If the Director has reason to believe that
7 any person has failed to report property in accordance with
8 this Act, he may make a demand by certified mail, return
9 receipt requested, that such report be made and filed with
10 the Director. The report of abandoned property or any other
11 report required shall be made and filed with the Director
12 within 30 days after receipt of the demand.
13 (b) The Director may at reasonable times and upon
14 reasonable notice examine the records of any person if the
15 Director has reason to believe that such person has failed to
16 report property that should have been reported pursuant to
17 this Act.
18 (c) The actual cost of any examination or investigation
19 incurred by the Department in administering any provision of
20 this Act shall be borne by the holder examined or
21 investigated if:
22 (1) a written demand for a report has been made and
23 the report has not been properly filed within the time
24 period specified in this Section, or
25 (2) a report has been received and additional
26 property reportable under the Act is discovered by such
27 examination or investigation.
28 No holder shall be liable to pay more than an amount
29 equal to the amount of reportable property discovered by such
30 investigation as a cost of examination or investigation.
31 (d) For all holders other than a trust division, a trust
32 department, a trust company, or an affiliate of any of them,
33 subsection (c) does not apply to any examination commenced
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1 after the effective date of this amendatory Act of 1993. As
2 of January 1, 1998, subsection (c) does not apply to an
3 examination, except for examinations of a trust division or
4 trust department or a trust company, or affiliate of any of
5 the foregoing that provides nondealer corporate custodial
6 services for securities or securities transactions, organized
7 under the laws of this or another state or the United States
8 unless the Department has commenced, but not finalized, an
9 examination of the holder as of that date and the property is
10 included in a final examination report for the period covered
11 by the examination. In addition, subsection (c) does not
12 apply to any examination commenced after the effective date
13 of this amendatory Act of 1993 of an affiliate of a trust
14 division, trust department, or trust company that is a bank,
15 other than those functions of a bank limited to providing
16 nondealer corporate custodial services for securities or
17 securities transactions.
18 (Source: P.A. 87-925; 88-435.)
19 (765 ILCS 1025/23.5)
20 Sec. 23.5. Notice of deficiency; time; effect.
21 (a) The Director shall issue a Notice of Deficiency to a
22 holder or commence an examination of a holder with respect to
23 a report required under this Act within 5 years after the
24 report is filed. A Notice of Deficiency shall specify the
25 additional amounts, if known, purportedly reportable under
26 this Act or state that those amounts are unknown. If the
27 Director fails to issue a Notice of Deficiency or commence an
28 examination within the time required by this Section, the
29 Department may not thereafter issue a Notice of Deficiency,
30 otherwise assert a deficiency, or seek any other charge or
31 remedy under this Act with respect to that report.
32 (b) This Section does not apply to a holder that is a
33 trust division or trust department or a trust company, or
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1 affiliate of any of the foregoing that provides nondealer
2 corporate custodial services for securities or securities
3 transactions, organized under the laws of this or another
4 state or the United States. This subsection does not exempt
5 a holder that is an affiliate of a trust division, trust
6 department, or trust company that is a bank, other than those
7 functions of a bank limited to providing nondealer corporate
8 custodial services for securities or securities transactions.
9 As of January 1, 1998, this subsection shall not be
10 applicable unless the Department has commenced, but not
11 finalized, an examination of the holder as of that date and
12 the property is included in a final examination report for
13 the period covered by the examination.
14 (Source: P.A. 88-435.)
15 (765 ILCS 1025/24) (from Ch. 141, par. 124)
16 Sec. 24. Enforcement of delivery. If any person refuses
17 to deliver property to the Director as required under this
18 Act, the Director may shall bring an action in the name of
19 the State in the circuit court or any federal court to
20 enforce delivery.
21 (Source: P.A. 87-206.)
22 (765 ILCS 1025/25.5)
23 Sec. 25.5. Administrative charges, fees, and interest
24 charges.
25 (a) The Director may charge a holder that files an
26 unclaimed property report after the due date, as determined
27 by the Director, the lesser of $100 or $1 for each day the
28 report remains overdue.
29 (b) The Director may charge a holder that fails to
30 timely perform due diligence, as required by this Act, $5 for
31 each name and address account reported if 35% or more of the
32 accounts are claimed within the 24 months immediately
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1 following the filing of the holder's annual report.
2 (c) A holder who remits unclaimed property that is past
3 due or fails to remit unclaimed property pursuant to an
4 examination by the Department, may be charged based on the
5 value of the property the greater of 1% per month or an
6 annualized rate that is 3 percentage points above the prime
7 rate as published in the Wall Street Journal on the first
8 business day of the month in which the property was remitted.
9 If the property remains past due for more than 12 months, the
10 interest rate for each succeeding year shall be calculated at
11 the greater of an annual rate of 12% or 3 percentage points
12 above the prime rate. The prime rate applied shall be as
13 published on the first business day of January of that
14 successive year.
15 (d) The Director may grant an extension of time to any
16 holder to report or remit when the holder submits a written
17 request for an extension at least 10 business days before the
18 date a report or remittance is due.
19 (e) Whenever the Director charges a holder or assesses a
20 fee provided for in this Section, he shall serve notice upon
21 the holder by personal service or by delivering the notice by
22 certified mail, return receipt required, through the United
23 States Postal Service to the holder.
24 (f) A holder may contest a charge or other fee issued by
25 the Director by requesting in writing an administrative
26 hearing within 15 business days of the receipt of the
27 Director's notice of the charge or fee. The hearing shall be
28 held at a time and place designated by the Director.
29 (g) The Director's finding subjecting a holder to a
30 charge or other fee shall become a final order under the
31 Administrative Review Law upon the failure of the holder to
32 demand a hearing within 15 business days.
33 (h) If a hearing is held, the Director shall issue an
34 order affirming, modifying, or overruling the charge or other
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1 fee. The order shall be a final order under the
2 Administrative Review Law.
3 (i) A holder shall not be charged for failing to remit
4 past due unclaimed property pursuant to the Department's
5 examination and demand for remittance when the holder, in
6 good faith, contests all or part of the finding, until a
7 final order reviewing the remittance is entered by a hearing
8 officer or the circuit court. With regard to contested
9 examinations, the charges, fees, or interest shall not accrue
10 during the period from the holder's filing of the request for
11 a hearing until the date of the final order. However, a
12 holder may be charged for failing to remit any undisputed
13 amounts of unclaimed property that are not being contested in
14 an administrative hearing or court action.
15 (j) The administrative charges, fees, and interest
16 charges provided for in this Section shall not apply to
17 property held by a trust division or trust department or by a
18 trust company, or affiliate of any of the foregoing that
19 provides nondealer corporate custodial services for
20 securities or securities transactions, organized under the
21 laws of this or another state or the United States. This
22 subsection does not exempt property held by an affiliate of a
23 trust division, trust department, or trust company that is a
24 bank, other than those functions of a bank limited to
25 providing nondealer corporate custodial services for
26 securities or securities transaction.
27 As of January 1, 1998, this subsection shall not be
28 applicable unless the Department has commenced, but not
29 finalized, an examination of the holder as of that date and
30 the property is included in a final examination report for
31 the period covered by the examination.
32 (k) In the conduct of a hearing initiated by a holder
33 under this Act, the Director has the power to administer
34 oaths, subpoena witnesses, and compel the production of
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1 books, papers, documents, or records relevant to the hearing
2 under this Act.
3 (l) The provisions of this Section apply only to reports
4 due and examinations commenced after the effective date of
5 this amendatory Act of 1993.
6 (Source: P.A. 88-435.)
7 Section 99. Effective date. This Act takes effect upon
8 becoming law.