State of Illinois
92nd General Assembly

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[ Introduced ][ Engrossed ][ House Amendment 001 ]
[ House Amendment 002 ]


HB2282 Enrolled                                LRB9202573DJgc

 1        AN ACT concerning currency exchanges.

 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:

 4        Section 5.  The  Currency  Exchange  Act  is  amended  by
 5    changing Section 6 as follows:

 6        (205 ILCS 405/6) (from Ch. 17, par. 4813)
 7        Sec.  6.  Insurance  against loss.  Every applicant for a
 8    license hereunder shall, after his application for a  license
 9    has  been  approved,  file  with  and  have  approved  by the
10    Director, a policy or policies  of  insurance  issued  by  an
11    insurance  company  or  indemnity  company  authorized  to do
12    business under the law of this State, which shall insure  the
13    applicant against loss by theft, burglary, robbery or forgery
14    in  a  principal  sum as hereinafter provided; if the average
15    amount of cash and liquid funds to be kept  on  hand  in  the
16    office  of  the  community  currency exchange during the year
17    will not be in excess of $10,000 the policy or policies shall
18    be in the principal sum of $10,000. If  such  average  amount
19    will be in excess of $10,000, the policy or policies shall be
20    for  an  additional  principal sum of $500 for each $1,000 or
21    fraction thereof of such excess over  the  original  $10,000.
22    From  time  to time, the Director may determine the amount of
23    cash and liquid funds on hand in the office of any  community
24    currency  exchange  and  shall require the licensee to submit
25    additional  policies  if  the  same  are  determined  to   be
26    necessary   in  accordance  with  the  requirements  of  this
27    Section.
28        Any such policy or policies, with respect to forgery, may
29    carry  a  condition  that  the  community  currency  exchange
30    assumes the first $1,000 $100 of each claim thereunder.
31        Before an ambulatory  currency  exchange  shall  sell  or
HB2282 Enrolled             -2-                LRB9202573DJgc
 1    issue  money  orders, it shall file with and have approved by
 2    the Director, a policy or policies of insurance issued by  an
 3    insurance  company  or  indemnity  company  authorized  to do
 4    business under the laws of this  State,  which  shall  insure
 5    such  ambulatory  currency  exchange  against  loss by theft,
 6    burglary, robbery, forgery or embezzlement in  the  principal
 7    sum of not less than $500,000.  If the average amount of cash
 8    and  liquid  funds  to  be  kept on hand during the year will
 9    exceed $500,000, the policy  or  policies  shall  be  for  an
10    additional  principal sum of $500 for each $1,000 or fraction
11    thereof in excess of $500,000. From time to time the Director
12    may determine the amount of cash and  liquid  funds  kept  on
13    hand  by an ambulatory currency exchange and shall require it
14    to submit such additional policies as are  determined  to  be
15    required  within  the  limits of this Section.  No ambulatory
16    currency exchange subject to this Section shall  be  required
17    to  furnish  more  than one policy of insurance if the policy
18    furnished insures it against  the  foregoing  losses  at  all
19    locations served by it.
20        Any  such policy may contain a condition that the insured
21    assumes a portion of the loss,  provided  the  insured  shall
22    file  with such policy a sworn financial statement indicating
23    its ability to act as self-insurer  in  the  amount  of  such
24    deductible  portion  of  the  policy without prejudice to the
25    safety of any funds  belonging  to  its  customers.   If  the
26    Director  is not satisfied as to the financial ability of the
27    ambulatory currency exchange, he may require  it  to  deposit
28    cash  or United States Government Bonds in the amount of part
29    or  all of the deductible portion of the policy.
30    (Source: P.A. 86-432.)

31        Section  10.  The  Uniform   Disposition   of   Unclaimed
32    Property Act is amended by changing Section 11 as follows:
HB2282 Enrolled             -3-                LRB9202573DJgc
 1        (765 ILCS 1025/11) (from Ch. 141, par. 111)
 2        Sec.  11.  (a) Except as otherwise provided in subsection
 3    (c) of  Section  4,  every  person  holding  funds  or  other
 4    property,  tangible  or  intangible, presumed abandoned under
 5    this Act  shall  report  and  remit  all  abandoned  property
 6    specified  in  the report to the State Treasurer with respect
 7    to the property as hereinafter provided.  The State Treasurer
 8    may exempt any businesses from the reporting  requirement  if
 9    he  deems  such  businesses  unlikely to be holding unclaimed
10    property.
11        (b)  The information shall be obtained  in  one  or  more
12    reports  as required by the State Treasurer.  The information
13    shall be verified and shall include:
14             (1)  The  name,  social  security  or  federal   tax
15        identification  number, if known, and last known address,
16        including zip code, of each  person  appearing  from  the
17        records  of the holder to be the owner of any property of
18        the value of $25 or more presumed  abandoned  under  this
19        Act;
20             (2)  In  case  of  unclaimed funds of life insurance
21        corporations  the  full  name  of  the  insured  and  any
22        beneficiary or  annuitant  and  the  last  known  address
23        according to the life insurance corporation's records;
24             (3)  The  date  when  the  property  became payable,
25        demandable, or returnable,  and  the  date  of  the  last
26        transaction  with the owner with respect to the property;
27        and
28             (4)  Other information  which  the  State  Treasurer
29        prescribes by rule as necessary for the administration of
30        this Act.
31        (c)  If the person holding property presumed abandoned is
32    a successor to other persons who previously held the property
33    for  the  owner,  or if the holder has changed his name while
34    holding the property, he shall file with his report all prior
HB2282 Enrolled             -4-                LRB9202573DJgc
 1    known names and addresses of each holder of the property.
 2        (d)  The report and remittance of the property  specified
 3    in  the  report  shall  be  filed  by  banking organizations,
 4    financial organizations, insurance companies other than  life
 5    insurance  corporations,  and  governmental  entities  before
 6    November  1  of  each  year as of June 30 next preceding. The
 7    report and remittance of the property specified in the report
 8    shall be filed by business associations, utilities, and  life
 9    insurance  corporations  before  May  1  of  each  year as of
10    December 31 next preceding.  The Director  may  postpone  the
11    reporting date upon written request by any person required to
12    file a report.
13        (d-5)  Notwithstanding  the foregoing, currency exchanges
14    shall be required to report and remit property  specified  in
15    the  report within 30 days after the conclusion of its annual
16    examination by the Department of Financial Institutions.   As
17    part   of   the  examination  of  a  currency  exchange,  the
18    Department  of  Financial  Institutions  shall  instruct  the
19    currency exchange to submit  a  complete  unclaimed  property
20    report   using   the  State  Treasurer's  formatted  diskette
21    reporting program or an alternative reporting format approved
22    by  the  State  Treasurer.    The  Department  of   Financial
23    Institutions  shall  provide  the  State  Treasurer  with  an
24    accounting  of  the money orders located in the course of the
25    annual examination including, where available, the amount  of
26    service  fees  deducted and the date of the conclusion of the
27    examination.
28        (e)  Before filing  the  annual  report,  the  holder  of
29    property  presumed abandoned under this Act shall communicate
30    with the owner at his last known address if  any  address  is
31    known  to  the  holder,  setting  forth the provisions hereof
32    necessary to occur in order to prevent abandonment from being
33    presumed.  If the holder has not communicated with the  owner
34    at  his  last  known  address  at  least  120 days before the
HB2282 Enrolled             -5-                LRB9202573DJgc
 1    deadline for filing the annual report, the holder shall mail,
 2    at least 60 days before that  deadline,  a  letter  by  first
 3    class  mail to the owner at his last known address unless any
 4    address  is  shown  to  be  inaccurate,  setting  forth   the
 5    provisions hereof necessary to prevent abandonment from being
 6    presumed.
 7        (f)  Verification,  if  made  by  a partnership, shall be
 8    executed  by  a  partner;  if  made  by   an   unincorporated
 9    association  or  private  corporation,  by an officer; and if
10    made by a public corporation, by its chief fiscal officer.
11        (g)  Any person who has possession of property  which  he
12    has  reason  to  believe  will be reportable in the future as
13    unclaimed property, may report and deliver it  prior  to  the
14    date  required  for  such  reporting  in accordance with this
15    Section and is then relieved of responsibility as provided in
16    Section 14.
17        (h) (1)  Records pertaining  to  presumptively  abandoned
18    property held by a trust division or trust department or by a
19    trust  company,  or  affiliate  of  any of the foregoing that
20    provides   nondealer   corporate   custodial   services   for
21    securities or securities transactions,  organized  under  the
22    laws  of  this or another state or the United States shall be
23    retained  until  the  property  is  delivered  to  the  State
24    Treasurer.
25        As of January 1, 1998, this subdivision (h)(1) shall  not
26    be applicable unless the Department of Financial Institutions
27    has  commenced,  but  not  finalized,  an  examination of the
28    holder as of that date and the  property  is  included  in  a
29    final  examination  report  for  the  period  covered  by the
30    examination.
31        (2)  In the case of all other holders commencing  on  the
32    effective  date  of  this  amendatory  Act  of 1993, property
33    records for the period required for  presumptive  abandonment
34    plus  the 9 years immediately preceding the beginning of that
HB2282 Enrolled             -6-                LRB9202573DJgc
 1    period shall be retained for 5 years after the  property  was
 2    reportable.
 3        (i)  The    State    Treasurer   may   promulgate   rules
 4    establishing the format and media to be used by a  holder  in
 5    submitting reports required under this Act.
 6    (Source: P.A. 90-167, eff. 7-23-97; 91-16, eff. 7-1-99.)

 7        Section  99.  Effective date.  This Act takes effect upon
 8    becoming law.

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