State of Illinois
90th General Assembly
Legislation

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[ Introduced ][ Enrolled ][ House Amendment 001 ]

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
HB2210 Engrossed            -2-               LRB9004658SMcwA
 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
HB2210 Engrossed            -3-               LRB9004658SMcwA
 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.
HB2210 Engrossed            -4-               LRB9004658SMcwA
 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
HB2210 Engrossed            -6-               LRB9004658SMcwA
 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.)
HB2210 Engrossed            -7-               LRB9004658SMcwA
 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
HB2210 Engrossed            -11-              LRB9004658SMcwA
 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
HB2210 Engrossed            -12-              LRB9004658SMcwA
 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
HB2210 Engrossed            -13-              LRB9004658SMcwA
 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
HB2210 Engrossed            -14-              LRB9004658SMcwA
 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,
HB2210 Engrossed            -15-              LRB9004658SMcwA
 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.)
HB2210 Engrossed            -16-              LRB9004658SMcwA
 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
HB2210 Engrossed            -17-              LRB9004658SMcwA
 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
HB2210 Engrossed            -18-              LRB9004658SMcwA
 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
HB2210 Engrossed            -19-              LRB9004658SMcwA
 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
HB2210 Engrossed            -20-              LRB9004658SMcwA
 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
HB2210 Engrossed            -21-              LRB9004658SMcwA
 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
HB2210 Engrossed            -22-              LRB9004658SMcwA
 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.

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