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Public Act 91-0016
HB1281 Enrolled LRB9100404SMdvC
AN ACT regarding unclaimed property.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The State Treasurer Act is amended by adding
Sections 0.02, 0.03, 0.04, 0.05, and 0.06 as follows:
(15 ILCS 505/0.02 new)
Sec. 0.02. Transfer of powers. The rights, powers,
duties, and functions vested in the Department of Financial
Institutions to administer the Uniform Disposition of
Unclaimed Property Act are transferred to the State Treasurer
on July 1, 1999; provided, however, that the rights, powers,
duties, and functions involving the examination of the
records of any person that the State Treasurer has reason to
believe has failed to report properly under this Act shall be
transferred to the Office of Banks and Real Estate if the
person is regulated by the Office of Banks and Real Estate
under the Illinois Banking Act, the Corporate Fiduciary Act,
the Foreign Banking Office Act, the Illinois Savings and Loan
Act of 1985, or the Savings Bank Act and shall be retained by
the Department of Financial Institutions if the person is
doing business in the State under the supervision of the
Department of Financial Institutions, the National Credit
Union Administration, the Office of Thrift Supervision, or
the Comptroller of the Currency.
(15 ILCS 505/0.03 new)
Sec. 0.03. Transfer of personnel.
(a) Except as provided in subsection (b), personnel
employed by the Department of Financial Institutions on June
30, 1999 to perform duties pertaining to the administration
of the Uniform Disposition of Unclaimed Property Act are
transferred to the State Treasurer on July 1, 1999.
(b) In the case of a person employed by the Department
of Financial Institutions to perform both duties pertaining
to the administration of the Uniform Disposition of Unclaimed
Property Act and duties pertaining to a function retained by
the Department of Financial Institutions, the State
Treasurer, in consultation with the Director of Financial
Institutions, shall determine whether to transfer the
employee to the Office of the State Treasurer; until this
determination has been made, the transfer shall not take
effect.
(c) The rights of State employees, the State, and its
agencies under the Personnel Code and applicable collective
bargaining agreements and retirement plans are not affected
by this amendatory Act of 1999, except that all positions
transferred to the State Treasurer shall be subject to the
State Treasurer Employment Code effective July 1, 2000.
All transferred employees who are members of collective
bargaining units shall retain their seniority, continuous
service, salary, and accrued benefits. During the pendency
of the existing collective bargaining agreement, the rights
provided for under that agreement and memoranda and
supplements to that agreement, including but not limited to,
the rights of employees performing duties pertaining to the
administration of the Uniform Disposition of Unclaimed
Property Act to positions in other State agencies and the
right of employees in other State agencies covered by the
agreement to positions performing duties pertaining to the
administration of the Uniform Disposition of Unclaimed
Property Act, shall not be abridged.
The State Treasurer shall continue to honor during their
pendency all bargaining agreements in effect at the time of
the transfer and to recognize all collective bargaining
representatives for the employees who perform or will perform
functions transferred by this amendatory Act of 1999. For
all purposes with respect to the management of the existing
agreement and the negotiation and management of any successor
agreements, the State Treasurer shall be deemed to be the
employer of employees who perform or will perform functions
transferred to the Office of the State Treasurer by this
amendatory Act of 1999; provided that the Illinois Department
of Central Management Services shall be a party to any
grievance or arbitration proceeding held pursuant to the
provisions of the collective bargaining agreement which
involves the movement of employees from the Office of the
State Treasurer to an agency under the jurisdiction of the
Governor covered by the agreement.
(15 ILCS 505/0.04 new)
Sec. 0.04. Transfer of property.
(a) Except as provided in subsection (b), all real and
personal property, including but not limited to all books,
records, and documents, and all unexpended appropriations and
pending business pertaining to the administration of the
Uniform Disposition of Unclaimed Property Act shall be
transferred and delivered to the State Treasurer effective
July 1, 1999.
(b) In the case of books, records, or documents that
pertain both to the administration of the Uniform Disposition
of Unclaimed Property Act and to a function retained by the
Department of Financial Institutions, the State Treasurer, in
consultation with the Director of Financial Institutions,
shall determine whether the books, records, or documents
shall be transferred, copied, or left with the Department of
Financial Institutions; until this determination has been
made, the transfer shall not take effect.
In the case of property or an unexpended appropriation
that pertains both to the administration of the Uniform
Disposition of Unclaimed Property Act and to a function
retained by the Department of Financial Institutions, the
State Treasurer, in consultation with the Director of
Financial Institutions, shall determine whether the property
or unexpended appropriation shall be transferred, divided, or
left with the Department of Financial Institutions; until
this determination has been made (and, in the case of an
unexpended appropriation, notice of the determination has
been filed with the State Comptroller), the transfer shall
not take effect.
(15 ILCS 505/0.05 new)
Sec. 0.05. Rules and standards.
(a) The rules and standards of the Department of
Financial Institutions that are in effect on June 30, 1999
and pertain to the administration of the Uniform Disposition
of Unclaimed Property Act shall become the rules and
standards of the State Treasurer on July 1, 1999 and shall
continue in effect until amended or repealed by the State
Treasurer.
(b) Any rules pertaining to the administration of the
Uniform Disposition of Unclaimed Property Act that have been
proposed by the Department of Financial Institutions but have
not taken effect or been finally adopted by June 30, 1999
shall become proposed rules of the State Treasurer on July 1,
1999, and any rulemaking procedures that have already been
completed by the Department of Financial Institutions need
not be repeated.
(c) As soon as practical after July 1, 1999, the State
Treasurer shall revise and clarify the rules transferred to
it under this amendatory Act of 1999 to reflect the
reorganization of rights, powers, duties, and functions
effected by this amendatory Act of 1999 using the procedures
for recodification of rules available under the Illinois
Administrative Procedure Act, except that existing title,
part, and section numbering for the affected rules may be
retained.
(d) As soon as practical after July 1, 1999, the Office
of Banks and Real Estate and the Office of the State
Treasurer shall jointly promulgate rules to reflect the
transfer of examination functions to the Office of Banks and
Real Estate under this amendatory Act of 1999 using the
procedures available under the Illinois Administrative
Procedure Act.
(e) As soon as practical after July 1, 1999, the
Department of Financial Institutions and the Office of the
State Treasurer shall jointly promulgate rules to reflect the
retention of examination functions by the Department of
Financial Institutions under this amendatory Act of 1999
using the procedures available under the Illinois
Administrative Procedure Act.
(15 ILCS 505/0.06 new)
Sec. 0.06. Savings provisions.
(a) The rights, powers, duties, and functions
transferred to the State Treasurer or the Commissioner of
Banks and Real Estate by this amendatory Act of 1999 shall be
vested in and exercised by the State Treasurer or the
Commissioner of Banks and Real Estate subject to the
provisions of this amendatory Act of 1999. An act done by
the State Treasurer or the Commissioner of Banks and Real
Estate or an officer, employee, or agent of the State
Treasurer or the Commissioner of Banks and Real Estate in the
exercise of the transferred rights, powers, duties, or
functions shall have the same legal effect as if done by the
Department of Financial Institutions or an officer, employee,
or agent of the Department of Financial Institutions prior to
the effective date of this amendatory Act of 1999.
(b) The transfer of rights, powers, duties, and
functions to the State Treasurer or the Commissioner of Banks
and Real Estate under this amendatory Act of 1999 does not
invalidate any previous action taken by or in respect to the
Department of Financial Institutions or its officers,
employees, or agents. References to the Department of
Financial Institutions or its officers, employees or agents
in any document, contract, agreement, or law shall, in
appropriate contexts, be deemed to refer to the State
Treasurer or the Commissioner of Banks and Real Estate or the
officers, employees, or agents of the State Treasurer or the
Commissioner of Banks and Real Estate.
(c) The transfer of rights, powers, duties, and
functions from the Department of Financial Institutions to
the State Treasurer or the Commissioner of Banks and Real
Estate under this amendatory Act of 1999 does not affect the
rights, obligations, or duties of any other person or entity,
including any civil or criminal penalties applicable thereto,
arising out of those transferred rights, powers, duties, and
functions.
(d) With respect to matters that pertain to a right,
power, duty, or function transferred to the State Treasurer
under this amendatory Act of 1999:
(1) Beginning July 1, 1999, any report or notice
that was previously required to be made or given by any
person to the Department of Financial Institutions or any
of its officers, employees, or agents under the Uniform
Disposition of Unclaimed Property Act or rules
promulgated pursuant to that Act shall be made or given
in the same manner to the State Treasurer or his or her
appropriate officer, employee, or agent.
(2) Beginning July 1, 1999, any document that was
previously required to be furnished or served by any
person to or upon the Department of Financial
Institutions or any of its officers, employees, or agents
under the Uniform Disposition of Unclaimed Property Act
or rules promulgated pursuant to that Act shall be
furnished or served in the same manner to or upon the
State Treasurer or his or her appropriate officer,
employee, or agent.
(e) This amendatory Act of 1999 does not affect any act
done, ratified, or canceled, any right occurring or
established, or any action or proceeding had or commenced in
an administrative, civil, or criminal cause before July 1,
1999. Any such action or proceeding that pertains to the
Uniform Disposition of Unclaimed Property Act or rules
promulgated pursuant to that Act and that is pending on that
date may be prosecuted, defended, or continued by the State
Treasurer.
Section 10. The Financial Institutions Code is amended
by adding Section 18.1 as follows:
(20 ILCS 1205/18.1 new)
Sec. 18.1. Transfer of administration of Uniform
Disposition of Unclaimed Property Act to State Treasurer.
The rights, powers, duties, and functions vested in the
Department of Financial Institutions to administer the
Uniform Disposition of Unclaimed Property Act are transferred
to the State Treasurer on July 1, 1999 in accordance with
Sections 0.02 through 0.06 of the State Treasurer Act;
provided, however, that the rights, powers, duties, and
functions involving the examination of the records of any
person that the State Treasurer has reason to believe has
failed to report properly under this Act shall be transferred
to the Office of Banks and Real Estate if the person is
regulated by the Office of Banks and Real Estate under the
Illinois Banking Act, the Corporate Fiduciary Act, the
Foreign Banking Office Act, the Illinois Savings and Loan Act
of 1985, or the Savings Bank Act and shall be retained by the
Department of Financial Institutions if the person is doing
business in the State under the supervision of the Department
of Financial Institutions, the National Credit Union
Administration, the Office of Thrift Supervision, or the
Comptroller of the Currency.
Section 12. The State Finance Act is amended by changing
Section 8.12 as follows:
(30 ILCS 105/8.12) (from Ch. 127, par. 144.12)
Sec. 8.12. State Pensions Fund.
(a) The moneys in the State Pensions Fund shall be used
exclusively for the administration of the Uniform Disposition
of Unclaimed Property Act and for the payment of a portion of
the required State contributions to the designated retirement
systems.
"Designated retirement systems" means:
(1) the State Employees' Retirement System of
Illinois;
(2) the Teachers' Retirement System of the State of
Illinois;
(3) the State Universities Retirement System;
(4) the Judges Retirement System of Illinois; and
(5) the General Assembly Retirement System.
(b) Each year the General Assembly may make
appropriations from the State Pensions Fund for the
administration of the Uniform Disposition of Unclaimed
Property Act.
Each month, the Commissioner of the Office of Banks and
Real Estate shall certify to the State Treasurer the actual
expenditures that the Office of Banks and Real Estate
incurred conducting unclaimed property examinations under the
Uniform Disposition of Unclaimed Property Act during the
immediately preceding month. Within a reasonable time
following the acceptance of such certification by the State
Treasurer, the State Treasurer shall pay from its
appropriation from the State Pensions Fund to the Bank and
Trust Company Fund and the Savings and Residential Finance
Regulatory Fund an amount equal to the expenditures incurred
by each Fund for that month.
Each month, the Director of Financial Institutions shall
certify to the State Treasurer the actual expenditures that
the Department of Financial Institutions incurred conducting
unclaimed property examinations under the Uniform Disposition
of Unclaimed Property Act during the immediately preceding
month. Within a reasonable time following the acceptance of
such certification by the State Treasurer, the State
Treasurer shall pay from its appropriation from the State
Pensions Fund to the Financial Institutions Fund and the
Credit Union Fund an amount equal to the expenditures
incurred by each Fund for that month.
(c) Each year the General Assembly shall appropriate a
total amount equal to the balance in the State Pensions Fund
at the close of business on June 30 of the preceding fiscal
year, less $5,000,000, as part of the required State
contributions to the designated retirement systems. The
amount of the appropriation to each designated retirement
system shall constitute a portion of the total appropriation
under this subsection for that fiscal year which is the same
as that retirement system's portion of the total actuarial
reserve deficiency of the systems, as most recently
determined by the Bureau of the Budget.
(d) The Bureau of the Budget shall determine the
individual and total reserve deficiencies of the designated
retirement systems. For this purpose, the Bureau of the
Budget shall utilize the latest available audit and actuarial
reports of each of the retirement systems and the relevant
reports and statistics of the Public Employee Pension Fund
Division of the Department of Insurance.
(e) The changes to this Section made by this amendatory
Act of 1994 shall first apply to distributions from the Fund
for State fiscal year 1996.
(Source: P.A. 87-838; 88-593, eff. 8-22-94.)
Section 15. The Illinois Banking Act is amended by
changing Sections 48 and 65 as follows:
(205 ILCS 5/48) (from Ch. 17, par. 359)
Sec. 48. Commissioner's powers; duties. The Commissioner
shall have the powers and authority, and is charged with the
duties and responsibilities designated in this Act, and a
State bank shall not be subject to any other visitorial power
other than as authorized by this Act, except those vested in
the courts, or upon prior consultation with the Commissioner,
a foreign bank regulator with an appropriate supervisory
interest in the parent or affiliate of a state bank. In the
performance of the Commissioner's duties:
(1) The Commissioner shall call for statements from all
State banks as provided in Section 47 at least one time
during each calendar quarter.
(2) (a) The Commissioner, as often as the Commissioner
shall deem necessary or proper, and no less frequently than
18 months following the preceding examination, shall appoint
a suitable person or persons to make an examination of the
affairs of every State bank, except that for every eligible
State bank, as defined by regulation, the Commissioner in
lieu of the examination may accept on an alternating basis
the examination made by the eligible State bank's appropriate
federal banking agency pursuant to Section 111 of the Federal
Deposit Insurance Corporation Improvement Act of 1991,
provided the appropriate federal banking agency has made such
an examination. A person so appointed shall not be a
stockholder or officer or employee of any bank which that
person may be directed to examine, and shall have powers to
make a thorough examination into all the affairs of the bank
and in so doing to examine any of the officers or agents or
employees thereof on oath and shall make a full and detailed
report of the condition of the bank to the Commissioner. In
making the examination the examiners shall include an
examination of the affairs of all the affiliates of the bank,
as defined in subsection (b) of Section 35.2 of this Act, as
shall be necessary to disclose fully the conditions of the
affiliates, the relations between the bank and the affiliates
and the effect of those relations upon the affairs of the
bank, and in connection therewith shall have power to examine
any of the officers, directors, agents, or employees of the
affiliates on oath. After May 31, 1997, the Commissioner may
enter into cooperative agreements with state regulatory
authorities of other states to provide for examination of
State bank branches in those states, and the Commissioner may
accept reports of examinations of State bank branches from
those state regulatory authorities. These cooperative
agreements may set forth the manner in which the other state
regulatory authorities may be compensated for examinations
prepared for and submitted to the Commissioner.
(b) After May 31, 1997, the Commissioner is authorized
to examine, as often as the Commissioner shall deem necessary
or proper, branches of out-of-state banks. The Commissioner
may establish and may assess fees to be paid to the
Commissioner for examinations under this subsection (b). The
fees shall be borne by the out-of-state bank, unless the fees
are borne by the state regulatory authority that chartered
the out-of-state bank, as determined by a cooperative
agreement between the Commissioner and the state regulatory
authority that chartered the out-of-state bank.
(2.5) Whenever any State bank, any subsidiary or
affiliate of a State bank, or after May 31, 1997, any branch
of an out-of-state bank causes to be performed, by contract
or otherwise, any bank services for itself, whether on or off
its premises:
(a) that performance shall be subject to
examination by the Commissioner to the same extent as if
services were being performed by the bank or, after May
31, 1997, branch of the out-of-state bank itself on its
own premises; and
(b) the bank or, after May 31, 1997, branch of the
out-of-state bank shall notify the Commissioner of the
existence of a service relationship. The notification
shall be submitted with the first statement of condition
(as required by Section 47 of this Act) due after the
making of the service contract or the performance of the
service, whichever occurs first. The Commissioner shall
be notified of each subsequent contract in the same
manner.
For purposes of this subsection (2.5), the term "bank
services" means services such as sorting and posting of
checks and deposits, computation and posting of interest and
other credits and charges, preparation and mailing of checks,
statements, notices, and similar items, or any other
clerical, bookkeeping, accounting, statistical, or similar
functions performed for a State bank, including but not
limited to electronic data processing related to those bank
services.
(3) The expense of administering this Act, including the
expense of the examinations of State banks as provided in
this Act, shall to the extent of the amounts resulting from
the fees provided for in paragraphs (a), (a-2), and (b) of
this subsection (3) be assessed against and borne by the
State banks:
(a) Each bank shall pay to the Commissioner a Call
Report Fee which shall be paid in quarterly installments
equal to one-fourth of the sum of the annual fixed fee of
$800, plus a variable fee based on the assets shown on
the quarterly statement of condition delivered to the
Commissioner in accordance with Section 47 for the
preceding quarter according to the following schedule:
16¢ per $1,000 of the first $5,000,000 of total assets,
15¢ per $1,000 of the next $20,000,000 of total assets,
13¢ per $1,000 of the next $75,000,000 of total assets,
9¢ per $1,000 of the next $400,000,000 of total assets,
7¢ per $1,000 of the next $500,000,000 of total assets,
and 5¢ per $1,000 of all assets in excess of
$1,000,000,000, of the State bank. The Call Report Fee
shall be calculated by the Commissioner and billed to the
banks for remittance at the time of the quarterly
statements of condition provided for in Section 47. The
Commissioner may require payment of the fees provided in
this Section by an electronic transfer of funds or an
automatic debit of an account of each of the State banks.
In case more than one examination of any bank is deemed
by the Commissioner to be necessary in any examination
frequency cycle specified in subsection 2(a) of this
Section, and is performed at his direction, the
Commissioner may assess a reasonable additional fee to
recover the cost of the additional examination; provided,
however, that an examination conducted at the request of
the State Treasurer pursuant to the Uniform Disposition
of Unclaimed Property Act shall not be deemed to be an
additional examination under this Section. In lieu of the
method and amounts set forth in this paragraph (a) for
the calculation of the Call Report Fee, the Commissioner
may specify by rule that the Call Report Fees provided by
this Section may be assessed semiannually or some other
period and may provide in the rule the formula to be used
for calculating and assessing the periodic Call Report
Fees to be paid by State banks.
(a-1) If in the opinion of the Commissioner an
emergency exists or appears likely, the Commissioner may
assign an examiner or examiners to monitor the affairs of
a State bank with whatever frequency he deems
appropriate, including but not limited to a daily basis.
The reasonable and necessary expenses of the Commissioner
during the period of the monitoring shall be borne by the
subject bank. The Commissioner shall furnish the State
bank a statement of time and expenses if requested to do
so within 30 days of the conclusion of the monitoring
period.
(a-2) On and after January 1, 1990, the reasonable
and necessary expenses of the Commissioner during
examination of the performance of electronic data
processing services under subsection (2.5) shall be borne
by the banks for which the services are provided. An
amount, based upon a fee structure prescribed by the
Commissioner, shall be paid by the banks or, after May
31, 1997, branches of out-of-state banks receiving the
electronic data processing services along with the Call
Report Fee assessed under paragraph (a) of this
subsection (3).
(a-3) After May 31, 1997, the reasonable and
necessary expenses of the Commissioner during examination
of the performance of electronic data processing services
under subsection (2.5) at or on behalf of branches of
out-of-state banks shall be borne by the out-of-state
banks, unless those expenses are borne by the state
regulatory authorities that chartered the out-of-state
banks, as determined by cooperative agreements between
the Commissioner and the state regulatory authorities
that chartered the out-of-state banks.
(b) "Fiscal year" for purposes of this Section 48
is defined as a period beginning July 1 of any year and
ending June 30 of the next year. The Commissioner shall
receive for each fiscal year, commencing with the fiscal
year ending June 30, 1987, a contingent fee equal to the
lesser of the aggregate of the fees paid by all State
banks under paragraph (a) of subsection (3) for that
year, or the amount, if any, whereby the aggregate of the
administration expenses, as defined in paragraph (c), for
that fiscal year exceeds the sum of the aggregate of the
fees payable by all State banks for that year under
paragraph (a) of subsection (3), plus any amounts
transferred into the Bank and Trust Company Fund from the
State Pensions Fund for that year, plus all other amounts
collected by the Commissioner for that year under any
other provision of this Act, plus the aggregate of all
fees collected for that year by the Commissioner under
the Corporate Fiduciary Act, excluding the receivership
fees provided for in Section 5-10 of the Corporate
Fiduciary Act, and the Foreign Banking Office Act. The
aggregate amount of the contingent fee thus arrived at
for any fiscal year shall be apportioned amongst,
assessed upon, and paid by the State banks and foreign
banking corporations, respectively, in the same
proportion that the fee of each under paragraph (a) of
subsection (3), respectively, for that year bears to the
aggregate for that year of the fees collected under
paragraph (a) of subsection (3). The aggregate amount of
the contingent fee, and the portion thereof to be
assessed upon each State bank and foreign banking
corporation, respectively, shall be determined by the
Commissioner and shall be paid by each, respectively,
within 120 days of the close of the period for which the
contingent fee is computed and is payable, and the
Commissioner shall give 20 days advance notice of the
amount of the contingent fee payable by the State bank
and of the date fixed by the Commissioner for payment of
the fee.
(c) The "administration expenses" for any fiscal
year shall mean the ordinary and contingent expenses for
that year incident to making the examinations provided
for by, and for otherwise administering, this Act, the
Corporate Fiduciary Act, excluding the expenses paid from
the Corporate Fiduciary Receivership account in the Bank
and Trust Company Fund, the Foreign Banking Office Act,
the Electronic Fund Transfer Act, and the Illinois Bank
Examiners' Education Foundation Act, including all
salaries and other compensation paid for personal
services rendered for the State by officers or employees
of the State, including the Commissioner and the Deputy
Commissioners, all expenditures for telephone and
telegraph charges, postage and postal charges, office
stationery, supplies and services, and office furniture
and equipment, including typewriters and copying and
duplicating machines and filing equipment, surety bond
premiums, and travel expenses of those officers and
employees, employees, expenditures or charges for the
acquisition, enlargement or improvement of, or for the
use of, any office space, building, or structure, or
expenditures for the maintenance thereof or for
furnishing heat, light, or power with respect thereto,
all to the extent that those expenditures are directly
incidental to such examinations or administration. The
Commissioner shall not be required by paragraphs (c) or
(d-1) of this subsection (3) to maintain in any fiscal
year's budget appropriated reserves for accrued vacation
and accrued sick leave that is required to be paid to
employees of the Commissioner upon termination of their
service with the Commissioner in an amount that is more
than is reasonably anticipated to be necessary for any
anticipated turnover in employees, whether due to normal
attrition or due to layoffs, terminations, or
resignations.
(d) The aggregate of all fees collected by the
Commissioner under this Act, the Corporate Fiduciary Act,
or the Foreign Banking Office Act on and after July 1,
1979, shall be paid promptly after receipt of the same,
accompanied by a detailed statement thereof, into the
State treasury and shall be set apart in a special fund
to be known as the "Bank and Trust Company Fund", except
as provided in paragraph (c) of subsection (11) of this
Section. The amount from time to time deposited into the
Bank and Trust Company Fund shall be used to offset the
ordinary administrative expenses of the Commissioner of
Banks and Real Estate as defined in this Section. Nothing
in this amendatory Act of 1979 shall prevent continuing
the practice of paying expenses involving salaries,
retirement, social security, and State-paid insurance
premiums of State officers by appropriations from the
General Revenue Fund. However, the General Revenue Fund
shall be reimbursed for those payments made on and after
July 1, 1979, by an annual transfer of funds from the
Bank and Trust Company Fund.
(d-1) Adequate funds shall be available in the Bank
and Trust Company Fund to permit the timely payment of
administration expenses. In each fiscal year the total
administration expenses shall be deducted from the total
fees collected by the Commissioner and the remainder
transferred into the Cash Flow Reserve Account, unless
the balance of the Cash Flow Reserve Account prior to the
transfer equals or exceeds one-fourth of the total
initial appropriations from the Bank and Trust Company
Fund for the subsequent year, in which case the remainder
shall be credited to State banks and foreign banking
corporations and applied against their fees for the
subsequent year. The amount credited to each State bank
and foreign banking corporation shall be in the same
proportion as the Call Report Fees paid by each for the
year bear to the total Call Report Fees collected for the
year. If, after a transfer to the Cash Flow Reserve
Account is made or if no remainder is available for
transfer, the balance of the Cash Flow Reserve Account is
less than one-fourth of the total initial appropriations
for the subsequent year and the amount transferred is
less than 5% of the total Call Report Fees for the year,
additional amounts needed to make the transfer equal to
5% of the total Call Report Fees for the year shall be
apportioned amongst, assessed upon, and paid by the State
banks and foreign banking corporations in the same
proportion that the Call Report Fees of each,
respectively, for the year bear to the total Call Report
Fees collected for the year. The additional amounts
assessed shall be transferred into the Cash Flow Reserve
Account. For purposes of this paragraph (d-1), the
calculation of the fees collected by the Commissioner
shall exclude the receivership fees provided for in
Section 5-10 of the Corporate Fiduciary Act.
(e) The Commissioner may upon request certify to
any public record in his keeping and shall have authority
to levy a reasonable charge for issuing certifications of
any public record in his keeping.
(f) In addition to fees authorized elsewhere in
this Act, the Commissioner may, in connection with a
review, approval, or provision of a service, levy a
reasonable charge to recover the cost of the review,
approval, or service.
(4) Nothing contained in this Act shall be construed to
limit the obligation relative to examinations and reports of
any State bank, deposits in which are to any extent insured
by the United States or any agency thereof, nor to limit in
any way the powers of the Commissioner with reference to
examinations and reports of that bank.
(5) The nature and condition of the assets in or
investment of any bonus, pension, or profit sharing plan for
officers or employees of every State bank or, after May 31,
1997, branch of an out-of-state bank shall be deemed to be
included in the affairs of that State bank or branch of an
out-of-state bank subject to examination by the Commissioner
under the provisions of subsection (2) of this Section, and
if the Commissioner shall find from an examination that the
condition of or operation of the investments or assets of the
plan is unlawful, fraudulent, or unsafe, or that any trustee
has abused his trust, the Commissioner shall, if the
situation so found by the Commissioner shall not be corrected
to his satisfaction within 60 days after the Commissioner has
given notice to the board of directors of the State bank or
out-of-state bank of his findings, report the facts to the
Attorney General who shall thereupon institute proceedings
against the State bank or out-of-state bank, the board of
directors thereof, or the trustees under such plan as the
nature of the case may require.
(6) The Commissioner shall have the power:
(a) To promulgate reasonable rules for the purpose
of administering the provisions of this Act.
(b) To issue orders for the purpose of
administering the provisions of this Act and any rule
promulgated in accordance with this Act.
(c) To appoint hearing officers to execute any of
the powers granted to the Commissioner under this Section
for the purpose of administering this Act and any rule
promulgated in accordance with this Act.
(d) To subpoena witnesses, to compel their
attendance, to administer an oath, to examine any person
under oath, and to require the production of any relevant
books, papers, accounts, and documents in the course of
and pursuant to any investigation being conducted, or any
action being taken, by the Commissioner in respect of any
matter relating to the duties imposed upon, or the powers
vested in, the Commissioner under the provisions of this
Act or any rule promulgated in accordance with this Act.
(e) To conduct hearings.
(7) Whenever, in the opinion of the Commissioner, any
director, officer, employee, or agent of a State bank or,
after May 31, 1997, of any branch of an out-of-state bank
shall have violated any law, rule, or order relating to that
bank or shall have engaged in an unsafe or unsound practice
in conducting the business of that bank or shall have
violated any law or engaged or participated in any unsafe or
unsound practice in connection with any financial institution
or other business entity such that the character and fitness
of the director, officer, employee, or agent does not assure
reasonable promise of safe and sound operation of the State
bank, the Commissioner may issue an order of removal. If, in
the opinion of the Commissioner, any former director,
officer, employee, or agent of a State bank, prior to the
termination of his or her service with that bank, violated
any law, rule, or order relating to that State bank or
engaged in an unsafe or unsound practice in conducting the
business of that bank or violated any law or engaged or
participated in any unsafe or unsound practice in connection
with any financial institution or other business entity such
that the character and fitness of the director, officer,
employee, or agent would not have assured reasonable promise
of safe and sound operation of the State bank, the
Commissioner may issue an order prohibiting that person from
further service with a bank as a director, officer, employee,
or agent. An order issued pursuant to this subsection shall
be served upon the director, officer, employee, or agent. A
copy of the order shall be sent to each director of the bank
affected by registered mail. The person affected by the
action may request a hearing before the State Banking Board
within 10 days after receipt of the order of removal. The
hearing shall be held by the Board within 30 days after the
request has been received by the Board. The Board shall make
a determination approving, modifying, or disapproving the
order of the Commissioner as its final administrative
decision. If a hearing is held by the Board, the Board shall
make its determination within 60 days from the conclusion of
the hearing. Any person affected by a decision of the Board
under this subsection (7) of Section 48 of this Act may have
the decision reviewed only under and in accordance with the
Administrative Review Law and the rules adopted pursuant
thereto. A copy of the order shall also be served upon the
bank of which he is a director, officer, employee, or agent,
whereupon he shall cease to be a director, officer, employee,
or agent of that bank. The Commissioner may institute a
civil action against the director, officer, or agent of the
State bank or, after May 31, 1997, of the branch of the
out-of-state bank against whom any order provided for by this
subsection (7) of this Section 48 has been issued, and
against the State bank or, after May 31, 1997, out-of-state
bank, to enforce compliance with or to enjoin any violation
of the terms of the order. Any person who has been the
subject of an order of removal or an order of prohibition
issued by the Commissioner under this subsection or Section
5-6 of the Corporate Fiduciary Act may not thereafter serve
as director, officer, employee, or agent of any State bank or
of any branch of any out-of-state bank, or of any corporate
fiduciary, as defined in Section 1-5.05 of the Corporate
Fiduciary Act, or of any other entity that is subject to
licensure or regulation by the Commissioner or the Office of
Banks and Real Estate unless the Commissioner has granted
prior approval in writing.
(8) The Commissioner may impose civil penalties of up to
$10,000 against any person for each violation of any
provision of this Act, any rule promulgated in accordance
with this Act, any order of the Commissioner, or any other
action which in the Commissioner's discretion is an unsafe or
unsound banking practice.
(9) The Commissioner may impose civil penalties of up to
$100 against any person for the first failure to comply with
reporting requirements set forth in the report of examination
of the bank and up to $200 for the second and subsequent
failures to comply with those reporting requirements.
(10) All final administrative decisions of the
Commissioner hereunder shall be subject to judicial review
pursuant to the provisions of the Administrative Review Law.
For matters involving administrative review, venue shall be
in either Sangamon County or Cook County.
(11) The endowment fund for the Illinois Bank Examiners'
Education Foundation shall be administered as follows:
(a) (Blank).
(b) The Foundation is empowered to receive
voluntary contributions, gifts, grants, bequests, and
donations on behalf of the Illinois Bank Examiners'
Education Foundation from national banks and other
persons for the purpose of funding the endowment of the
Illinois Bank Examiners' Education Foundation.
(c) The aggregate of all special educational fees
collected by the Commissioner and property received by
the Commissioner on behalf of the Illinois Bank
Examiners' Education Foundation under this subsection
(11) on or after June 30, 1986, shall be either (i)
promptly paid after receipt of the same, accompanied by a
detailed statement thereof, into the State Treasury and
shall be set apart in a special fund to be known as "The
Illinois Bank Examiners' Education Fund" to be invested
by either the Treasurer of the State of Illinois in the
Public Treasurers' Investment Pool or in any other
investment he is authorized to make or by the Illinois
State Board of Investment as the board of trustees of the
Illinois Bank Examiners' Education Foundation may direct
or (ii) deposited into an account maintained in a
commercial bank or corporate fiduciary in the name of the
Illinois Bank Examiners' Education Foundation pursuant to
the order and direction of the Board of Trustees of the
Illinois Bank Examiners' Education Foundation.
(12) (Blank).
(Source: P.A. 89-208, eff. 9-29-95; 89-317, eff. 8-11-95;
89-508, eff. 7-3-96; 89-567, eff. 7-26-96; 89-626, eff.
8-9-96; 90-14, eff. 7-1-97; 90-301, eff. 8-1-97; 90-665, eff.
7-30-98.)
(205 ILCS 5/65) (from Ch. 17, par. 377)
Sec. 65. Dividends; dissolution. From time to time
during a receivership other than a receivership conducted by
the Federal Deposit Insurance Corporation, the Commissioner
shall make and pay from monies of the bank a ratable dividend
on all claims as may be proved to his or her satisfaction or
adjudicated by the court. Claims so proven or adjudicated
shall bear interest at the rate of 3% per annum from the date
of the appointment of the receiver to the date of payment,
but all dividends on a claim shall be applied first to
principal. In computing the amount of any dividend to be
paid, if the Commissioner deems it desirable in the interests
of economy of administration and to the interest of the bank
and its creditors, he or she may pay up to the amount of $10
of each claim or unpaid portion thereof in full. As the
proceeds of the assets of the bank are collected in the
course of liquidation, the Commissioner shall make and pay
further dividends on all claims previously proven or
adjudicated. After one year from the entry of a judgment of
dissolution, all unclaimed dividends shall be remitted to the
State Treasurer Director of Financial Institutions in
accordance with the "Uniform Disposition of Unclaimed
Property Act", as now or hereafter amended, together with a
list of all unpaid claimants, their last known addresses and
the amounts unpaid.
(Source: P.A. 89-364, eff. 8-18-95.)
Section 17. The Illinois Credit Union Act is amended by
changing Section 62 as follows:
(205 ILCS 305/62) (from Ch. 17, par. 4463)
Sec. 62. Liquidation. (1) A credit union may elect to
dissolve voluntarily and liquidate its affairs in the manner
prescribed in this Section.
(2) The Board of Directors shall adopt a resolution
recommending the credit union be dissolved voluntarily, and
directing that the question of liquidating be submitted to
the members.
(3) Within 10 days after the Board of Directors decides
to submit the question of liquidation to the members, the
Chairman or President shall notify the Director thereof, in
writing, setting forth the reasons for the proposed action.
Within 10 days after the members act on the question of
liquidation, the Chairman or President shall notify the
Director, in writing, as to whether or not the members
approved the proposed liquidation. The Director then must
determine whether this Section has been complied with and if
his decision is favorable, he shall prepare a certificate to
the effect that this Section has been complied with, a copy
of which will be retained by the Department and the other
copy forwarded to the credit union. The certificate must be
filed with the recorder or if there is no recorder, in the
office of the County Clerk of the County or Counties in which
the credit union is operating, whereupon the credit union
must cease operations except for the purpose of its
liquidation.
(4) As soon as the Board of Directors passes a
resolution to submit the question of liquidation to the
members, payment on shares, withdrawal of shares, making any
transfer of shares to loans and interest, making investments
of any kind and granting loans shall be suspended pending
action by members. On approval by the members of such
proposal, all such operations shall be permanently
discontinued. The necessary expenses of operating shall,
however, continue to be paid on authorization of the Board of
Directors or the Liquidating Agent during the period of
liquidation.
(5) For a credit union to enter voluntary liquidation,
it must be approved by affirmative vote of the members owning
a majority of the shares entitled to vote, in person or by
proxy, at a regular or special meeting of the members.
Notice, in writing, shall be given to each member, by first
class mail, at least 10 days prior to such meeting. If
liquidation is approved, the Board of Directors shall appoint
a Liquidating Agent for the purpose of conserving and
collecting the assets, closing the affairs of the credit
union and distributing the assets as required by this Act.
(6) A liquidating credit union shall continue in
existence for the purpose of discharging its debts,
collecting and distributing its assets, and doing all acts
required in order to terminate its operations and may sue and
be sued for the purpose of enforcing such debts and
obligations until its affairs are fully adjusted.
(7) Subject to such rules and regulations as the
Director may promulgate, the Liquidating Agent shall use the
assets of the credit union to pay; first, expenses incidental
to liquidating including any surety bond that may be
required; then, liabilities of the credit union; then special
classes of shares. The remaining assets shall then be
distributed to the members proportionately to the dollar
value of the shares held by each member in relation to the
total dollar value of all shares outstanding as of the date
the dissolution was voted.
(8) As soon as the Liquidating Agent determines that all
assets as to which there is a reasonable expectancy of sale
or transfer have been liquidated and distributed as set forth
in this Section, he shall execute a Certificate of
Dissolution on a form prescribed by the Department and file
the same, together with all pertinent books and records of
the liquidating credit union with the Department, whereupon
such credit union shall be dissolved. The Liquidating Agent
must, within 3 years after issuance of a certificate by the
Director referred to in Subsection (3) of this Section,
discharge the debts of the credit union, collect and
distribute its assets and do all other acts required to wind
up its business.
(9) If the Director determines that the Liquidating
Agent has failed to make reasonable progress in the
liquidating of the credit union's affairs and distribution of
its assets or has violated this Act, the Director may take
possession and control of the credit union and remove the
Liquidating Agent and appoint a Liquidating Agent to complete
the liquidation under his direction and control. The
Director shall fill any vacancy caused by the resignation,
death, illness, removal, desertion or incapacity to function
of the Liquidating Agent.
(10) Any funds representing unclaimed dividends and
shares in liquidation and remaining in the hands of the Board
of Directors or the Liquidating Agent at the end of the
liquidation must be deposited by them, together with all
books and papers of the credit union, with the Department.
Such funds must be deposited by the Department with the State
Treasurer in compliance with the Uniform Disposition of
Unclaimed Property Act, approved August 17, 1961, as amended.
(Source: P.A. 83-358.)
Section 18. The Currency Exchange Act is amended by
changing Section 19.3 as follows:
(205 ILCS 405/19.3) (from Ch. 17, par. 4838)
Sec. 19.3. (A) The General Assembly hereby finds and
declares: community currency exchanges and ambulatory
currency exchanges provide important and vital services to
Illinois citizens. In so doing, they transact extensive
business involving check cashing and the writing of money
orders in communities in which banking services are generally
unavailable. Customers of currency exchanges who receive
these services must be protected from being charged
unreasonable and unconscionable rates for cashing checks and
purchasing money orders. The Illinois Department of
Financial Institutions has the responsibility for regulating
the operations of currency exchanges and has the expertise to
determine reasonable maximum rates to be charged for check
cashing and money order purchases. Therefore, it is in the
public interest, convenience, welfare and good to have the
Department establish reasonable maximum rate schedules for
check cashing and the issuance of money orders and to require
community and ambulatory currency exchanges to prominently
display to the public the fees charged for all services. The
Director shall review, each year, the cost of operation of
the Currency Exchange Division and the revenue generated from
currency exchange examinations and report to the General
Assembly if the need exists for an increase in the fees
mandated by this Act to maintain the Currency Exchange
Division at a fiscally self-sufficient level. The Director
shall include in such report the total amount of funds
remitted to the State and delivered to the State Treasurer by
currency exchanges pursuant to the Uniform Disposition of
Unclaimed Property Act.
(B) The Director shall, by rules adopted in accordance
with the Illinois Administrative Procedure Act, expeditiously
formulate and issue schedules of reasonable maximum rates
which can be charged for check cashing and writing of money
orders by community currency exchanges and ambulatory
currency exchanges.
(1) In determining the maximum rate schedules for
the purposes of this Section the Director shall take into
account:
(a) Rates charged in the past for the cashing
of checks and the issuance of money orders by
community and ambulatory currency exchanges.
(b) Rates charged by banks or other business
entities for rendering the same or similar services
and the factors upon which those rates are based.
(c) The income, cost and expense of the
operation of currency exchanges.
(d) Rates charged by currency exchanges or
other similar entities located in other states for
the same or similar services and the factors upon
which those rates are based.
(e) Rates charged by the United States Postal
Service for the issuing of money orders and the
factors upon which those rates are based.
(f) A reasonable profit for a currency
exchange operation.
(2) (a) The schedule of reasonable maximum rates
established pursuant to this Section may be modified by
the Director from time to time pursuant to rules adopted
in accordance with the Illinois Administrative Procedure
Act.
(b) Upon the filing of a verified petition setting
forth allegations demonstrating reasonable cause to
believe that the schedule of maximum rates previously
issued and promulgated should be adjusted, the Director
shall expeditiously:
(i) reject the petition if it fails to
demonstrate reasonable cause to believe that an
adjustment is necessary; or
(ii) conduct such hearings, in accordance with
this Section, as may be necessary to determine
whether the petition should be granted in whole or
in part.
(c) No petition may be filed pursuant to
subparagraph (a) of paragraph (2) of subsection (B)
unless:
(i) at least nine months have expired since
the last promulgation of schedules of maximum rates;
and
(ii) at least one-fourth of all community
currency exchange licensees join in a petition or,
in the case of ambulatory currency exchanges, a
licensee or licensees authorized to serve at least
100 locations join in a petition.
(3) Any currency exchange may charge lower fees than
those of the applicable maximum fee schedule after filing
with the Director a schedule of fees it proposes to use.
(Source: P.A. 88-45.)
Section 20. The Corporate Fiduciary Act is amended by
changing Section 6-14 as follows:
(205 ILCS 620/6-14) (from Ch. 17, par. 1556-14)
Sec. 6-14. From time to time during receivership the
Commissioner shall make and pay from monies of the corporate
fiduciary a ratable dividend on all claims as may be proved
to his or her satisfaction or adjudicated by the court.
After one year from the entry of a judgment of dissolution,
all unclaimed dividends shall be remitted to the State
Treasurer Director of Financial Institutions in accordance
with the Uniform Disposition of Unclaimed Property Act, as
now or hereafter amended, together with a list of all unpaid
claimants, their last known addresses and the amounts unpaid.
(Source: P.A. 85-858.)
Section 25. The Illinois Insurance Code is amended by
changing Section 210 as follows:
(215 ILCS 5/210) (from Ch. 73, par. 822)
Sec. 210. Distribution of assets; priorities; unpaid
dividends.
(1) Any time after the last day fixed for the filing of
proofs of claims in the liquidation of a company, the court
may, upon the application of the Director authorize him to
declare out of the funds remaining in his hands, one or more
dividends upon all claims allowed in accordance with the
priorities established in Section 205.
(2) Where there has been no adjudication of insolvency,
the Director shall pay all allowed claims in full in
accordance with the priorities set forth in Section 205.
The director shall not be chargeable for any assets so
distributed to any claimant who has failed to file a proper
proof of claim before such distribution has been made.
(3) When subsequent to an adjudication of insolvency,
pursuant to Section 208, a surplus is found to exist after
the payment in full of all allowed claims falling within the
priorities set forth in paragraphs (a),(b),(c), (d), (e), (f)
and (g) of subsection (1) of Section 205 and which have been
duly filed prior to the last date fixed for the filing
thereof, and after the setting aside of a reserve for all
additional costs and expenses of the proceeding, the court
shall set a new date for the filing of claims. After the
expiration of the new date, all allowed claims filed on or
before said new date together with all previously allowed
claims falling within the priorities set forth in paragraphs
(h) and (i) of subsection (1) of Section 205 shall be paid in
accordance with the priorities set forth in Section 205.
(4) Dividends remaining unclaimed or unpaid in the hands
of the Director for 6 months after the final order of
distribution may be by him deposited in one or more savings
and loan associations, State or national banks, trust
companies or savings banks to the credit of the Director,
whomsoever he may be, in trust for the person entitled
thereto, but no such person shall be entitled to any interest
upon such deposit. All such deposits shall be entitled to
priority of payment in case of the insolvency or voluntary or
involuntary liquidation of the depositary on an equality with
any other priority given by the banking law. Any such funds
together with interest, if any, paid or credited thereon,
remaining and unclaimed in the hands of the Director in Trust
after 2 years shall be presumed abandoned and reported and
delivered to the State Treasurer Director of Financial
Institutions and become subject to the provisions of the
Uniform Disposition of Unclaimed Property Act.
(Source: P.A. 88-297; 89-206, eff. 7-21-95.)
Section 30. The Probate Act of 1975 is amended by
changing Sections 2-1 and 2-2 as follows:
(755 ILCS 5/2-1) (from Ch. 110 1/2, par. 2-1)
Sec. 2-1. Rules of descent and distribution. The
intestate real and personal estate of a resident decedent and
the intestate real estate in this State of a nonresident
decedent, after all just claims against his estate are fully
paid, descends and shall be distributed as follows:
(a) If there is a surviving spouse and also a descendant
of the decedent: 1/2 of the entire estate to the surviving
spouse and 1/2 to the decedent's descendants per stirpes.
(b) If there is no surviving spouse but a descendant of
the decedent: the entire estate to the decedent's
descendants per stirpes.
(c) If there is a surviving spouse but no descendant of
the decedent: the entire estate to the surviving spouse.
(d) If there is no surviving spouse or descendant but a
parent, brother, sister or descendant of a brother or sister
of the decedent: the entire estate to the parents, brothers
and sisters of the decedent in equal parts, allowing to the
surviving parent if one is dead a double portion and to the
descendants of a deceased brother or sister per stirpes the
portion which the deceased brother or sister would have taken
if living.
(e) If there is no surviving spouse, descendant, parent,
brother, sister or descendant of a brother or sister of the
decedent but a grandparent or descendant of a grandparent of
the decedent: (1) 1/2 of the entire estate to the decedent's
maternal grandparents in equal parts or to the survivor of
them, or if there is none surviving, to their descendants per
stirpes, and (2) 1/2 of the entire estate to the decedent's
paternal grandparents in equal parts or to the survivor of
them, or if there is none surviving, to their descendants per
stirpes. If there is no surviving paternal grandparent or
descendant of a paternal grandparent, but a maternal
grandparent or descendant of a maternal grandparent of the
decedent: the entire estate to the decedent's maternal
grandparents in equal parts or to the survivor of them, or if
there is none surviving, to their descendants per stirpes. If
there is no surviving maternal grandparent or descendant of a
maternal grandparent, but a paternal grandparent or
descendant of a paternal grandparent of the decedent: the
entire estate to the decedent's paternal grandparents in
equal parts or to the survivor of them, or if there is none
surviving, to their descendants per stirpes.
(f) If there is no surviving spouse, descendant, parent,
brother, sister, descendant of a brother or sister or
grandparent or descendant of a grandparent of the decedent:
(1) 1/2 of the entire estate to the decedent's maternal
great-grandparents in equal parts or to the survivor of them,
or if there is none surviving, to their descendants per
stirpes, and (2) 1/2 of the entire estate to the decedent's
paternal great-grandparents in equal parts or to the survivor
of them, or if there is none surviving, to their descendants
per stirpes. If there is no surviving paternal
great-grandparent or descendant of a paternal
great-grandparent, but a maternal great-grandparent or
descendant of a maternal great-grandparent of the decedent:
the entire estate to the decedent's maternal
great-grandparents in equal parts or to the survivor of them,
or if there is none surviving, to their descendants per
stirpes. If there is no surviving maternal great-grandparent
or descendant of a maternal great-grandparent, but a paternal
great-grandparent or descendant of a paternal
great-grandparent of the decedent: the entire estate to the
decedent's paternal great-grandparents in equal parts or to
the survivor of them, or if there is none surviving, to their
descendants per stirpes.
(g) If there is no surviving spouse, descendant, parent,
brother, sister, descendant of a brother or sister,
grandparent, descendant of a grandparent, great-grandparent
or descendant of a great-grandparent of the decedent: the
entire estate in equal parts to the nearest kindred of the
decedent in equal degree (computing by the rules of the civil
law) and without representation.
(h) If there is no surviving spouse and no known kindred
of the decedent: the real estate escheats to the county in
which it is located; the personal estate physically located
within this State and the personal estate physically located
or held outside this State which is the subject of ancillary
administration of an estate being administered within this
State escheats to the county of which the decedent was a
resident, or, if the decedent was not a resident of this
State, to the county in which it is located; all other
personal property of the decedent of every class and
character, wherever situate, or the proceeds thereof, shall
escheat to this State and be delivered to the State Treasurer
Director of Financial Institutions of the State pursuant to
the Uniform Disposition of Unclaimed Property Act.
In no case is there any distinction between the kindred
of the whole and the half blood.
(Source: P.A. 81-400.)
(755 ILCS 5/2-2) (from Ch. 110 1/2, par. 2-2)
Sec. 2-2. Illegitimates. The intestate real and
personal estate of a resident decedent who was illegitimate
at the time of death and the intestate real estate in this
State of a nonresident decedent who was illegitimate at the
time of death, after all just claims against his estate are
fully paid, descends and shall be distributed as provided in
Section 2-1, subject to Section 2-6.5 of this Act, if both
parents are eligible parents. As used in this Section,
"eligible parent" means a parent of the decedent who, during
the decedent's lifetime, acknowledged the decedent as the
parent's child, established a parental relationship with the
decedent, and supported the decedent as the parent's child.
"Eligible parents" who are in arrears of in excess of one
year's child support obligations shall not receive any
property benefit or other interest of the decedent unless and
until a court of competent jurisdiction makes a determination
as to the effect on the deceased of the arrearage and allows
a reduced benefit. In no event shall the reduction of the
benefit or other interest be less than the amount of child
support owed for the support of the decedent at the time of
death. The court's considerations shall include but are not
limited to the considerations in subsections (1) through (3)
of Section 2-6.5 of this Act.
If neither parent is an eligible parent, the intestate
real and personal estate of a resident decedent who was
illegitimate at the time of death and the intestate real
estate in this State of a nonresident decedent who was
illegitimate at the time of death, after all just claims
against his or her estate are fully paid, descends and shall
be distributed as provided in Section 2-1, but the parents of
the decedent shall be treated as having predeceased the
decedent.
If only one parent is an eligible parent, the intestate
real and personal estate of a resident decedent who was
illegitimate at the time of death and the intestate real
estate in this State of a nonresident decedent who was
illegitimate at the time of death, after all just claims
against his or her estate are fully paid, subject to Section
2-6.5 of this Act, descends and shall be distributed as
follows:
(a) If there is a surviving spouse and also a descendant
of the decedent: 1/2 of the entire estate to the surviving
spouse and 1/2 to the decedent's descendants per stirpes.
(b) If there is no surviving spouse but a descendant of
the decedent: the entire estate to the decedent's
descendants per stirpes.
(c) If there is a surviving spouse but no descendant of
the decedent: the entire estate to the surviving spouse.
(d) If there is no surviving spouse or descendant but
the eligible parent or a descendant of the eligible parent of
the decedent: the entire estate to the eligible parent and
the eligible parent's descendants, allowing 1/2 to the
eligible parent and 1/2 to the eligible parent's descendants
per stirpes.
(e) If there is no surviving spouse, descendant,
eligible parent, or descendant of the eligible parent of the
decedent, but a grandparent on the eligible parent's side of
the family or descendant of such grandparent of the decedent:
the entire estate to the decedent's grandparents on the
eligible parent's side of the family in equal parts, or to
the survivor of them, or if there is none surviving, to their
descendants per stirpes.
(f) If there is no surviving spouse, descendant,
eligible parent, descendant of the eligible parent,
grandparent on the eligible parent's side of the family, or
descendant of such grandparent of the decedent: the entire
estate to the decedent's great-grandparents on the eligible
parent's side of the family in equal parts or to the survivor
of them, or if there is none surviving, to their descendants
per stirpes.
(g) If there is no surviving spouse, descendant,
eligible parent, descendant of the eligible parent,
grandparent on the eligible parent's side of the family,
descendant of such grandparent, great-grandparent on the
eligible parent's side of the family, or descendant of such
great-grandparent of the decedent: the entire estate in
equal parts to the nearest kindred of the eligible parent of
the decedent in equal degree (computing by the rules of the
civil law) and without representation.
(h) If there is no surviving spouse, descendant, or
eligible parent of the decedent and no known kindred of the
eligible parent of the decedent: the real estate escheats to
the county in which it is located; the personal estate
physically located within this State and the personal estate
physically located or held outside this State which is the
subject of ancillary administration within this State
escheats to the county of which the decedent was a resident
or, if the decedent was not a resident of this State, to the
county in which it is located; all other personal property
of the decedent of every class and character, wherever
situate, or the proceeds thereof, shall escheat to this State
and be delivered to the State Treasurer Director of Financial
Institutions of this State pursuant to the Uniform
Disposition of Unclaimed Property Act.
For purposes of inheritance, the changes made by this
amendatory Act of 1998 apply to all decedents who die on or
after the effective date of this amendatory Act of 1998. For
the purpose of determining the property rights of any person
under any instrument, the changes made by this amendatory Act
of 1998 apply to all instruments executed on or after the
effective date of this amendatory Act of 1998.
An illegitimate person is heir of his mother and of any
maternal ancestor and of any person from whom his mother
might have inherited, if living; and the descendants of an
illegitimate person shall represent such person and take by
descent any estate which the parent would have taken, if
living. If a decedent has acknowledged paternity of an
illegitimate person or if during his lifetime or after his
death a decedent has been adjudged to be the father of an
illegitimate person, that person is heir of his father and of
any paternal ancestor and of any person from whom his father
might have inherited, if living; and the descendants of an
illegitimate person shall represent that person and take by
descent any estate which the parent would have taken, if
living. If during his lifetime the decedent was adjudged to
be the father of an illegitimate person by a court of
competent jurisdiction, an authenticated copy of the judgment
is sufficient proof of the paternity; but in all other cases
paternity must be proved by clear and convincing evidence. A
person who was illegitimate whose parents intermarry and who
is acknowledged by the father as the father's child is
legitimate. After an illegitimate person is adopted, that
person's relationship to his or her adopting and natural
parents shall be governed by Section 2-4 of this Act. For
purposes of inheritance, the changes made by this amendatory
Act of 1997 apply to all decedents who die on or after
January 1, 1998. For the purpose of determining the property
rights of any person under any instrument, the changes made
by this amendatory Act of 1997 apply to all instruments
executed on or after January 1, 1998.
(Source: P.A. 90-237, eff. 1-1-98; 90-803, eff. 12-15-98.)
Section 35. The Uniform Disposition of Unclaimed
Property Act is amended by changing Sections 1, 2, 10.5, 11,
11.5, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 23.5,
24, 24.5, 25, 25.5 and 26 and adding Section 0.05 as follows:
(765 ILCS 1025/0.05 new)
Sec. 0.05. Transfer of powers. The rights, powers,
duties, and functions vested in the Department of Financial
Institutions to administer this Act are transferred to the
State Treasurer on July 1, 1999 in accordance with Sections
0.02 through 0.06 of the State Treasurer Act; provided,
however, that the rights, powers, duties, and functions
involving the examination of the records of any person that
the State Treasurer has reason to believe has failed to
report properly under this Act shall be transferred to the
Office of Banks and Real Estate if the person is regulated by
the Office of Banks and Real Estate under the Illinois
Banking Act, the Corporate Fiduciary Act, the Foreign Banking
Office Act, the Illinois Savings and Loan Act of 1985, or the
Savings Bank Act and shall be retained by the Department of
Financial Institutions if the person is doing business in the
State under the supervision of the Department of Financial
Institutions, the National Credit Union Administration, the
Office of Thrift Supervision, or the Comptroller of the
Currency.
(765 ILCS 1025/1) (from Ch. 141, par. 101)
Sec. 1. As used in this Act, unless the context
otherwise requires:
(a) "Banking organization" means any bank, trust
company, savings bank, industrial bank, land bank, safe
deposit company, or a private banker.
(b) "Business association" means any corporation, joint
stock company, business trust, partnership, or any
association, limited liability company, or other business
entity consisting of one or more persons, whether or not for
profit.
(c) "Financial organization" means any savings and loan
association, building and loan association, credit union,
currency exchange, co-operative bank, mutual funds, or
investment company.
(d) "Holder" means any person in possession of property
subject to this Act belonging to another, or who is trustee
in case of a trust, or is indebted to another on an
obligation subject to this Act.
(e) "Life insurance corporation" means any association
or corporation transacting the business of insurance on the
lives of persons or insurance appertaining thereto,
including, but not by way of limitation, endowments and
annuities.
(f) "Owner" means a depositor in case of a deposit, a
beneficiary in case of a trust, a creditor, claimant, or
payee in case of other property, or any person having a legal
or equitable interest in property subject to this Act, or his
legal representative.
(g) "Person" means any individual, business association,
financial organization, government or political subdivision
or agency, public authority, estate, trust, or any other
legal or commercial entity.
(h) "Utility" means any person who owns or operates, for
public use, any plant, equipment, property, franchise, or
license for the transmission of communications or the
production, storage, transmission, sale, delivery, or
furnishing of electricity, water, steam, oil or gas.
(i) (Blank). "Director" means the Director of the
Illinois Department of Financial Institutions.
(j) "Insurance company" means any person transacting the
kinds of business enumerated in Section 4 of the Illinois
Insurance Code other than life insurance.
(k) "Economic loss", as used in Sections 2a and 9 of
this Act includes, but is not limited to, delivery charges,
mark-downs and write-offs, carrying costs, restocking
charges, lay-aways, special orders, issuance of credit memos,
and the costs of special services or goods provided that
reduce the property value or that result in lost sales
opportunity.
(l) "Reportable property" means property, tangible or
intangible, presumed abandoned under this Act that must be
appropriately and timely reported and remitted to the Office
of the State Treasurer Department under this Act. Interest,
dividends, stock splits, warrants, or other rights that
become reportable property under this Act include the
underlying security or commodity giving rise to the interest,
dividend, split, warrant, or other right to which the owner
would be entitled.
(Source: P.A. 89-604, eff. 8-2-96; 90-167, eff. 7-23-97.)
(765 ILCS 1025/2) (from Ch. 141, par. 102)
Sec. 2. The following property held or owing by a
banking or financial organization is presumed abandoned:
(a) Any demand, savings, or matured time deposit with a
banking organization, together with any interest or dividend
thereon, excluding any charges that may lawfully be withheld,
unless the owner has, within 5 years:
(1) Increased or decreased the amount of the
deposit, or presented the passbook or other similar
evidence of the deposit for the crediting of interest; or
(2) Corresponded in writing with the banking
organization concerning the deposit; or
(3) Otherwise indicated an interest in the deposit
as evidenced by a memorandum on file with the banking
organization.
(b) Any funds paid toward the purchase of withdrawable
shares or other interest in a financial organization, or any
deposit made, and any interest or dividends thereon,
excluding any charges that may be lawfully withheld, unless
the owner has within 5 years:
(1) Increased or decreased the amount of the funds,
or deposit, or presented an appropriate record for the
crediting of interest or dividends; or
(2) Corresponded in writing with the financial
organization concerning the funds or deposit; or
(3) Otherwise indicated an interest in the funds or
deposit as evidenced by a memorandum on file with the
financial organization.
(c) Any sum payable on checks or on written instruments
on which a banking or financial organization or business
association is directly liable including, by way of
illustration but not of limitation, certificates of deposit,
drafts, money orders and travelers checks, that with the
exception of travelers checks has been outstanding for more
than 5 years from the date it was payable, or from the date
of its issuance if payable on demand, or, in the case of
travelers checks, that has been outstanding for more than 15
years from the date of its issuance, unless the owner has
within 5 years or within 15 years in the case of travelers
checks corresponded in writing with the banking or financial
organization or business association concerning it, or
otherwise indicated an interest as evidenced by a memorandum
on file with the banking or financial organization or
business association.
(d) Any funds or other personal property, tangible or
intangible, removed from a safe deposit box or any other
safekeeping repository or agency or collateral deposit box on
which the lease or rental period has expired due to
nonpayment of rental charges or other reason, or any surplus
amounts arising from the sale thereof pursuant to law, that
have been unclaimed by the owner for more than 5 years from
the date on which the lease or rental period expired,
subject to lien of the holder for reimbursement of costs
incurred in the opening of a safe deposit box as determined
by the holder's regular schedule of charges.
(e) Notwithstanding any other provision of this Section,
no deposit except passbook, checking, NOW accounts, super NOW
accounts, money market accounts, or such similar accounts as
established by Rule of the State Treasurer Director, held by
a banking or financial organization shall be presumed
abandoned if with respect to such a deposit which specifies a
definite maturity date, such organization was authorized in
writing to extend or rollover the account for an additional
like period and such organization does so extend. Such
deposits are not presumed abandoned less than 5 years from
that final maturity date. Property of any kind held in an
individual retirement account (IRA) is not presumed abandoned
earlier than 5 years after the owner attains the age at which
distributions from the account become mandatory under law.
(f) Notwithstanding any other provision of this Section,
money of a minor deposited pursuant to Section 24-21 of the
Probate Act of 1975 shall not be presumed abandoned earlier
than 5 years after the minor attains legal age. Such money
shall be deposited in an account which shall indicate the
birth date of the minor.
(Source: P.A. 89-604, eff. 8-2-96; 90-167, eff. 7-23-97;
90-796, eff. 12-15-98.)
(765 ILCS 1025/10.5)
Sec. 10.5. Nonapplicability of Act.
(a) Unless the personal property was identified in a
final examination report by the Director of Financial
Institutions issued pursuant to a duly authorized examination
and the final examination report was received by the holder
on or before May 1, 1993, this Act does not apply to (i)
travelers checks reportable as unclaimed property before July
1, 1973, (ii) funds held by any federal, state, or local
government or governmental subdivision, agency, entity,
officer, or appointee thereof reportable as unclaimed
property before July 1, 1981, or (iii) any other personal
property reportable as unclaimed property before July 1,
1985, based upon the presumptive abandonment period in effect
on that date.
(b) For reports required to be filed after December 31,
1993, this Act does not apply to any reportable personal
property held prior to the period required for presumptive
abandonment of the property plus the 9 years immediately
preceding the beginning of that period.
(c) Subsections (a) and (b) do not apply to property
held by a trust division or trust department or by a trust
company, or affiliate of any of the foregoing that provides
nondealer corporate custodial services for securities or
securities transactions, organized under the laws of this or
another state or the United States.
As of January 1, 1998, this subsection shall not be
applicable unless the Department of Financial Institutions
has commenced, but not finalized, an examination of the
holder as of that date and the property is included in a
final examination report for the period covered by the
examination.
(d) Subsections (a) and (b) do not apply to property
held by a holder who files a fraudulent report or fails to
file a report.
(e) Subsections (a) and (b) do not apply if, as a result
of their application, another state would have a legal right
to delivery of the property and such other state has
commenced proceedings with respect to the property.
(Source: P.A. 90-167, eff. 7-23-97.)
(765 ILCS 1025/11) (from Ch. 141, par. 111)
Sec. 11. (a) Except as otherwise provided in subsection
(c) of Section 4, every person holding funds or other
property, tangible or intangible, presumed abandoned under
this Act shall report and remit all abandoned property
specified in the report to the State Treasurer Director with
respect to the property as hereinafter provided. The State
Treasurer Director may exempt any businesses from the
reporting requirement if he deems such businesses unlikely to
be holding unclaimed property.
(b) The information shall be obtained in one or more
reports as required by the State Treasurer Director. The
information shall be verified and shall include:
(1) The name, social security or federal tax
identification number, if known, and last known address,
including zip code, of each person appearing from the
records of the holder to be the owner of any property of
the value of $25 or more presumed abandoned under this
Act;
(2) In case of unclaimed funds of life insurance
corporations the full name of the insured and any
beneficiary or annuitant and the last known address
according to the life insurance corporation's records;
(3) The date when the property became payable,
demandable, or returnable, and the date of the last
transaction with the owner with respect to the property;
and
(4) Other information which the State Treasurer
Director prescribes by rule as necessary for the
administration of this Act.
(c) If the person holding property presumed abandoned is
a successor to other persons who previously held the property
for the owner, or if the holder has changed his name while
holding the property, he shall file with his report all prior
known names and addresses of each holder of the property.
(d) The report and remittance of the property specified
in the report shall be filed by banking organizations,
financial organizations, insurance companies other than life
insurance corporations, and governmental entities before
November 1 of each year as of June 30 next preceding. The
report and remittance of the property specified in the report
shall be filed by business associations, utilities, and life
insurance corporations before May 1 of each year as of
December 31 next preceding. The Director may postpone the
reporting date upon written request by any person required to
file a report.
(e) Before filing the annual report, the holder of
property presumed abandoned under this Act shall communicate
with the owner at his last known address if any address is
known to the holder, setting forth the provisions hereof
necessary to occur in order to prevent abandonment from being
presumed. If the holder has not communicated with the owner
at his last known address at least 120 days before the
deadline for filing the annual report, the holder shall mail,
at least 60 days before that deadline, a letter by first
class mail to the owner at his last known address unless any
address is shown to be inaccurate, setting forth the
provisions hereof necessary to prevent abandonment from being
presumed.
(f) Verification, if made by a partnership, shall be
executed by a partner; if made by an unincorporated
association or private corporation, by an officer; and if
made by a public corporation, by its chief fiscal officer.
(g) Any person who has possession of property which he
has reason to believe will be reportable in the future as
unclaimed property, may report and deliver it prior to the
date required for such reporting in accordance with this
Section and is then relieved of responsibility as provided in
Section 14.
(h) (1) Records pertaining to presumptively abandoned
property held by a trust division or trust department or by a
trust company, or affiliate of any of the foregoing that
provides nondealer corporate custodial services for
securities or securities transactions, organized under the
laws of this or another state or the United States shall be
retained until the property is delivered to the State
Treasurer Director.
As of January 1, 1998, this subdivision (h)(1) shall not
be applicable unless the Department of Financial Institutions
has commenced, but not finalized, an examination of the
holder as of that date and the property is included in a
final examination report for the period covered by the
examination.
(2) In the case of all other holders commencing on the
effective date of this amendatory Act of 1993, property
records for the period required for presumptive abandonment
plus the 9 years immediately preceding the beginning of that
period shall be retained for 5 years after the property was
reportable.
(i) The State Treasurer Director may promulgate rules
establishing the format and media to be used by a holder in
submitting reports required under this Act.
(Source: P.A. 90-167, eff. 7-23-97.)
(765 ILCS 1025/11.5)
Sec. 11.5. Estimation techniques and record retention.
(a) If a holder has failed to retain records as required
by this Act or if the records retained are shown to be
insufficient to conduct and conclude an examination, the
Office of the State Treasurer Department may use estimation
techniques that conform to either Generally Accepted Auditing
Standards or Generally Accepted Accounting Principles to
determine the amount of unclaimed property. In the conduct
of an examination, the State Department shall not request of
a holder any records that relate only to property that under
subsection (a) or (b) of Section 10.5 is not subject to this
Act.
(b) Within 15 business days of the receipt of a final
examination report, a holder may request a hearing to contest
the use or validity of estimation techniques. The
examination shall become final upon the failure of the holder
to request a hearing as provided in this Section. If a
hearing is held, the State Treasurer Director shall issue an
order approving or disapproving the use or validity of the
estimation techniques. The order shall be a final order
under the Administrative Review Law.
(Source: P.A. 88-435.)
(765 ILCS 1025/12) (from Ch. 141, par. 112)
Sec. 12. (a) Within 120 days from the filing of the
annual report and delivery of the abandoned property
specified in the report as required by Section 11, the State
Treasurer Director shall cause notice to be published once in
an English language newspaper of general circulation in the
county in this State in which is located the last known
address of any person to be named in the notice. If no
address is listed or if the address is outside this State,
the notice shall be published in the county in which the
holder of the abandoned property has his principal place of
business within this State. However, if an out-of-state
address is in a state that is not a party to a reciprocal
agreement with this State concerning abandoned property, the
notice may be published in the Illinois Register.
(b) The published notice shall be entitled "Notice of
Names of Persons Appearing to be Owners of Abandoned
Property", and shall contain:
(1) The names in alphabetical order and last known
addresses, if any, of persons listed in the report and
entitled to notice within the county as hereinbefore
specified.
(2) A statement that information concerning the
amount or description of the property and the name and
address of the holder may be obtained by any persons
possessing an interest in the property by addressing an
inquiry to the State Treasurer Director.
(3) A statement that the abandoned property has
been placed in the custody of the State Treasurer
Director to whom all further claims must thereafter be
directed.
(c) The State Treasurer Director is not required to
publish in such notice any item of less than $100 or any item
for which the address of the last known owner is in a state
that has a reciprocal agreement with this State concerning
abandoned property unless he deems such publication to be in
the public interest.
(Source: P.A. 90-167, eff. 7-23-97.)
(765 ILCS 1025/13) (from Ch. 141, par. 113)
Sec. 13. Every person who has filed a report as provided
by Section 11 shall deliver to the State Treasurer Director
all abandoned property specified in the annual report on the
same date that the annual report is filed. Costs for
communicating with owners by mail as required by subsection
(e) of Section 11 may be deducted from the property specified
in the report. Any such person, who pursuant to a statutory
requirement, filed a bond or bonds pertaining to such
abandoned property with the State Treasurer Director or his
predecessor, may also deduct an amount equivalent to that
part of the bond premium attributable to such abandoned
property.
(Source: P.A. 90-167, eff. 7-23-97.)
(765 ILCS 1025/14) (from Ch. 141, par. 114)
Sec. 14. Upon the payment or delivery of abandoned
property to the State Treasurer Director, the state shall
assume custody and shall be responsible for the safekeeping
thereof. Any person who pays or delivers abandoned property
to the State Treasurer Director under this Act is relieved of
all liability to the extent of the value of the property so
paid or delivered for any claim which then exists or which
thereafter may arise or be made in respect to the property.
In the event legal proceedings are instituted by any
other state or states in any state or federal court with
respect to unclaimed funds or abandoned property previously
paid or delivered to the State Treasurer Director, the holder
shall give written notification to the State Treasurer
Director and the Attorney General of this state of such
proceedings within 10 days after service of process, or in
the alternative at least 10 days before the return date or
date on which an answer or similar pleading is due (or any
extension thereof secured by the holder). The Attorney
General may take such action as he deems necessary or
expedient to protect the interests of the State of Illinois.
The Attorney General by written notice prior to the return
date or date on which an answer or similar pleading is due
(or any extension thereof secured by the holder), but in any
event in reasonably sufficient time for the holder to comply
with the directions received, shall either direct the holder
actively to defend in such proceedings or that no defense
need be entered in such proceedings. If a direction is
received from the Attorney General that the holder need not
make a defense, such shall not preclude the holder from
entering a defense in its own name if it should so choose.
However, any defense made by the holder on its own initiative
shall not entitle the holder to reimbursement for legal fees,
costs and other expenses as is hereinafter provided in
respect to defenses made pursuant to the directions of the
Attorney General. If, after the holder has actively defended
in such proceedings pursuant to a direction of the Attorney
General, or has been notified in writing by the Attorney
General that no defense need be made with respect to such
funds, a judgment is entered against the holder for any
amount paid to the State Treasurer Director under this Act,
the State Treasurer Director shall, upon being furnished with
proof of payment in satisfaction of such judgment, reimburse
the holder the amount so paid. The State Treasurer director
shall also reimburse the holder for any legal fees, costs and
other directly related expenses incurred in legal proceedings
undertaken pursuant to the direction of the Attorney General.
(Source: Laws 1963, p. 1805.)
(765 ILCS 1025/15) (from Ch. 141, par. 115)
Sec. 15. When property is paid or delivered to the State
Treasurer Director under this Act, the owner is not entitled
to receive income or other increments accruing thereafter,
except that income accruing on unliquidated stock and mutual
funds after July 1, 1993, may be paid to the owner.
(Source: P.A. 87-925.)
(765 ILCS 1025/16) (from Ch. 141, par. 116)
Sec. 16. The expiration of any period of time specified
by statute or court order, during which an action or
proceeding may be commenced or enforced to obtain payment of
a claim for money or recovery of property, shall not prevent
the money or property from being presumed abandoned property,
nor affect any duty to file a report required by this Act or
to pay or deliver abandoned property to the State Treasurer
Director.
(Source: Laws 1961, p. 3426.)
(765 ILCS 1025/17) (from Ch. 141, par. 117)
Sec. 17. (a) All abandoned property, other than money and
that property exempted by paragraphs (1) and (2) of this
subsection, delivered to the State Treasurer Director under
this Act shall be sold within a reasonable time to the
highest bidder at public sale in whatever city in the State
affords in his or her judgment the most favorable market for
the property involved. The State Treasurer Director may
decline the highest bid and reoffer the property for sale if
he or she considers the price bid insufficient. He or she
need not offer any property for sale, and may destroy or
otherwise dispose of the property, if, in his or her opinion,
the probable cost of sale exceeds the value of the property.
Securities or commodities received by the Office of the State
Treasurer Department may be sold by the State Treasurer
Director through a broker or sales agent suitable for the
sale of the type of securities or commodities being sold.
(1) Property which the State Treasurer Director
determines may have historical value may be, at his or
her discretion, loaned to a recognized exhibitor in the
United States where it will be kept until such time as
the State Treasurer Director orders it to be returned to
his or her possession.
(2) Property returned to the State Treasurer
Director shall be released to the rightful owner or
otherwise disposed of in accordance with this Act. The
State Treasurer Director shall keep identifying records
of the property so loaned, the name of rightful owner and
the owner's last known address, if available.
(b) Any sale held under this Section, except a sale of
securities or commodities, shall be preceded by a single
publication of notice thereof, at least 3 weeks in advance of
sale in an English language newspaper of general circulation
in the county where the property is to be sold. When property
fails to sell and is offered again at a subsequent sale, no
additional notice is required for the subsequent sale.
(c) The purchaser at any sale conducted by the State
Treasurer Director pursuant to this Act shall receive title
to the property purchased, free from all claims of the owner
or prior holder thereof and of all persons claiming through
or under them. The State Treasurer Director shall execute all
documents necessary to complete the transfer of title.
(d) The Office of the State Treasurer Department is not
liable for any reduction in the value of property caused by
changing market conditions.
(Source: P.A. 89-604, eff. 8-2-96.)
(765 ILCS 1025/18) (from Ch. 141, par. 118)
Sec. 18. (a) All funds received under this Act,
including the proceeds from the sale of abandoned property
under Section 17, shall forthwith be deposited transferred by
the Director to the State Treasurer for deposit in the State
Pensions Fund in the state treasury, except that the Director
shall direct the State Treasurer shall to retain in a
separate trust fund an amount not exceeding $2,500,000 from
which he or she shall make prompt payment of claims he or she
duly allows allowed by the Director as hereinafter provided.
However, should any claim be allowed or any refund ordered
under the provisions of this Act, in excess of $2,500,000,
the Director shall direct the State Treasurer shall to
increase the amount of such separate trust fund to an amount
necessary for prompt payment of such claim in excess of
$2,500,000 and the State Treasurer shall make prompt payment
thereof. Before making the deposit the State Treasurer
Director shall record the name and last known address of each
person appearing from the holders' reports to be entitled to
the abandoned property. The record shall be available for
public inspection at all reasonable business hours.
(b) Before making any deposit to the credit of the State
Pensions Fund, the State Treasurer Director may deduct: (1)
any costs in connection with sale of abandoned property, (2)
any costs of mailing and publication in connection with any
abandoned property, and (3) any costs in connection with the
maintenance of records or disposition of claims made pursuant
to this Act. The State Treasurer Director shall semiannually
file an itemized report of all such expenses with the
Legislative Audit Commission.
(Source: P.A. 87-925.)
(765 ILCS 1025/19) (from Ch. 141, par. 119)
Sec. 19. Any person claiming an interest in any property
delivered to the State under this Act may file a claim
thereto or to the proceeds from the sale thereof on the form
prescribed by the State Treasurer Director.
(Source: Laws 1961, p. 3426.)
(765 ILCS 1025/20) (from Ch. 141, par. 120)
Sec. 20. (a) The State Treasurer Director shall consider
any claim filed under this Act and may, in his discretion,
hold a hearing and receive evidence concerning it. Such
hearing shall be conducted by the State Treasurer Director or
by a hearing officer designated by him. No hearings shall be
held if the payment of the claim is ordered by a court, if
the claimant is under court jurisdiction, or if the claim is
paid under Article XXV of the Probate Act of 1975. The State
Treasurer Director or hearing officer shall prepare a finding
and a decision in writing on each hearing, stating the
substance of any evidence heard by him, his findings of fact
in respect thereto, and the reasons for his decision. The
State Treasurer Director shall review the findings and
decision of each hearing conducted by a hearing officer and
issue a final written decision. The final decision shall be
a public record. Any claim of an interest in property that is
filed pursuant to this Act shall be considered and a finding
and decision shall be issued by the Office of the State
Treasurer Department in a timely and expeditious manner.
(b) If the claim is allowed, and after deducting an
amount not to exceed $20 to cover the cost of notice
publication and related clerical expenses, the State
Treasurer shall make payment forthwith, upon notification by
the Director.
(c) In order to carry out the purpose of this Act, no
person or company shall be entitled to a fee for discovering
presumptively abandoned property until it has been in the
custody of the Unclaimed Property Division of the Office of
the State Treasurer Department of Financial Institutions for
at least 24 months. Fees for discovering property that has
been in the custody of that division for more than 24 months
shall be limited to not more than 10% of the amount
collected.
This Section shall not apply to the fees of an attorney
at law duly appointed to practice in a state of the United
States who is employed by a claimant with regard to probate
matters on a contractual basis.
(Source: P.A. 86-1162; 87-925.)
(765 ILCS 1025/21) (from Ch. 141, par. 121)
Sec. 21. A final administrative decision of the State
Treasurer Director in respect to a claim filed hereunder
shall be subject to judicial review pursuant to the
provisions of the Administrative Review Law and the rules
adopted pursuant thereto. The review action may be
instituted by any person adversely affected or aggrieved by
the decision.
The Office of the State Treasurer Department shall
furnish a certified transcript of the record to any party of
record upon the payment of the actual page charge of the
record to a commercial reporting service for the preparation
of the transcript. If no hearing was held, the State
Treasurer Director shall deliver a copy of his decision
stating the reasons upon which the claim was denied and
deliver it to any party of record within 20 days of demand.
(Source: P.A. 90-167, eff. 7-23-97.)
(765 ILCS 1025/22) (from Ch. 141, par. 122)
Sec. 22. The State Treasurer Director, after receiving
reports of property deemed abandoned pursuant to this Act,
may decline to receive any property reported which he deems
to have a value less than the cost of giving notice and
holding sale, or he may, if he deems it desirable because of
the small sum involved, postpone taking possession until a
sufficient sum has accumulated. Unless the holder of the
property is notified to the contrary within 120 days after
filing the report required under Section 11, the State
Treasurer Director shall be deemed to have elected to receive
the custody of the property.
(Source: Laws 1961, p. 3426.)
(765 ILCS 1025/23) (from Ch. 141, par. 123)
Sec. 23. (a) If the State Treasurer Director has reason
to believe that any person has failed to report property in
accordance with this Act, he may make a demand by certified
mail, return receipt requested, that such report be made and
filed with the State Treasurer Director. The report of
abandoned property or any other report required shall be made
and filed with the State Treasurer Director within 30 days
after receipt of the demand.
(b) The State Director may at reasonable times and upon
reasonable notice examine the records of any person if the
State Treasurer Director has reason to believe that such
person has failed to report property that should have been
reported pursuant to this Act. Upon the direction of the
State Treasurer to do so, the Office of Banks and Real Estate
shall, on behalf of the State, conduct the examination of the
records of any person who is regulated by the Office of Banks
and Real Estate under the Illinois Banking Act, the Corporate
Fiduciary Act, the Foreign Banking Office Act, the Illinois
Savings and Loan Act of 1985, or the Savings Bank Act. Upon
direction of the State Treasurer to do so, the Department of
Financial Institutions shall, on behalf of the State, conduct
the examination of the records of any person doing business
in the State under the supervision of the Department of
Financial Institutions, the National Credit Union
Administration, the Office of Thrift Supervision, or the
Comptroller of the Currency. The Office of Banks and Real
Estate and the Department of Financial Institutions shall
conduct all examinations during the next regular examination
of the person, unless the State Treasurer has reason to
believe that an accelerated examination schedule is required
to protect the State's interest, in which case the
examination must be conducted within 90 days of the State
Treasurer's direction to do so. The Office of Banks and Real
Estate and the Department of Financial Institutions may
contract with third parties to ensure that the examinations
are commenced in a timely manner. The Department of
Financial Institutions and the Office of Banks and Real
Estate shall report the results of all examinations that are
undertaken at the direction of the State Treasurer under this
Act, which may include confidential information, to the State
Treasurer in a timely manner and, upon the request of the
Treasurer, shall assist in the evaluation of the
examinations. All examinations that are not performed by the
Office of Banks and Real Estate or the Department of
Financial Institutions shall be performed by the State
Treasurer.
(c) The actual cost of any examination or investigation
incurred by the State Department in administering any
provision of this Act shall be borne by the holder examined
or investigated if:
(1) a written demand for a report has been made and
the report has not been properly filed within the time
period specified in this Section, or
(2) a report has been received and additional
property reportable under the Act is discovered by such
examination or investigation.
No holder shall be liable to pay more than an amount
equal to the amount of reportable property discovered by such
investigation as a cost of examination or investigation.
(d) For all holders other than a trust division, a trust
department, a trust company, or an affiliate of any of them,
subsection (c) does not apply to any examination commenced
after the effective date of this amendatory Act of 1993. As
of January 1, 1998, subsection (c) does not apply to an
examination of a trust division or trust department or a
trust company, or affiliate of any of the foregoing that
provides nondealer corporate custodial services for
securities or securities transactions, organized under the
laws of this or another state or the United States unless the
Department of Financial Institutions has commenced, but not
finalized, an examination of the holder as of that date and
the property is included in a final examination report for
the period covered by the examination.
(Source: P.A. 90-167, eff. 7-23-97.)
(765 ILCS 1025/23.5)
Sec. 23.5. Notice of deficiency; time; effect.
(a) The State Treasurer Director shall issue a Notice of
Deficiency to a holder or direct the commencement of commence
an examination of a holder with respect to a report required
under this Act within 5 years after the report is filed. A
Notice of Deficiency shall specify the additional amounts, if
known, purportedly reportable under this Act or state that
those amounts are unknown. If the State Treasurer Director
fails to issue a Notice of Deficiency or direct the
commencement of commence an examination within the time
required by this Section, the Office of the State Treasurer
Department may not thereafter issue a Notice of Deficiency,
otherwise assert a deficiency, or seek any other charge or
remedy under this Act with respect to that report.
(b) This Section does not apply to a holder that is a
trust division or trust department or a trust company, or
affiliate of any of the foregoing that provides nondealer
corporate custodial services for securities or securities
transactions, organized under the laws of this or another
state or the United States.
As of January 1, 1998, this subsection shall not be
applicable unless the Department of Financial Institutions
has commenced, but not finalized, an examination of the
holder as of that date and the property is included in a
final examination report for the period covered by the
examination.
(Source: P.A. 90-167, eff. 7-23-97.)
(765 ILCS 1025/24) (from Ch. 141, par. 124)
Sec. 24. Enforcement of delivery. If any person refuses
to deliver property to the State Treasurer Director as
required under this Act, the State Treasurer Director may
bring an action in the name of the State in the circuit court
or any federal court to enforce delivery.
(Source: P.A. 90-167, eff. 7-23-97.)
(765 ILCS 1025/24.5)
Sec. 24.5. Contingency fees. The State Department may
not enter into a contract with a person to conduct an
examination of a holder located within the State of Illinois
under which the State Department agrees to pay such person a
fee based upon a percentage of the property recovered for the
State of Illinois. Nothing in this Section prohibits the
Office of the State Treasurer Department from entering into
contracts with persons to examine holders located outside the
State of Illinois under which the Office of the State
Treasurer Department agrees to pay such persons based upon a
percentage of the property recovered for the State of
Illinois.
(Source: P.A. 88-435.)
(765 ILCS 1025/25) (from Ch. 141, par. 125)
Sec. 25. (a) Any person who fails to render any report
or perform other duties required under this Act, is guilty of
a business offense and fined not more than $500. Each day
such report is withheld or the duties are not performed
constitutes a separate offense.
(b) Any person who wilfully refuses to pay or deliver
abandoned property to the State Treasurer Director as
required under this Act shall be guilty of a Class B
misdemeanor. Each day the violation continues is a separate
offense.
(Source: P.A. 79-1103.)
(765 ILCS 1025/25.5)
Sec. 25.5. Administrative charges, fees, and interest
charges.
(a) The State Treasurer Director may charge a holder
that files an unclaimed property report after the due date,
as determined by the State Treasurer Director, the lesser of
$100 or $1 for each day the report remains overdue.
(b) The State Treasurer Director may charge a holder
that fails to timely perform due diligence, as required by
this Act, $5 for each name and address account reported if
35% or more of the accounts are claimed within the 24 months
immediately following the filing of the holder's annual
report.
(c) A holder who remits unclaimed property that is past
due or fails to remit unclaimed property pursuant to an
examination by the State Department, may be charged based on
the value of the property the greater of 1% per month or an
annualized rate that is 3 percentage points above the prime
rate as published in the Wall Street Journal on the first
business day of the month in which the property was remitted.
If the property remains past due for more than 12 months, the
interest rate for each succeeding year shall be calculated at
the greater of an annual rate of 12% or 3 percentage points
above the prime rate. The prime rate applied shall be as
published on the first business day of January of that
successive year.
(d) The State Treasurer Director may grant an extension
of time to any holder to report or remit when the holder
submits a written request for an extension before the date a
report or remittance is due.
(e) Whenever the State Treasurer Director charges a
holder or assesses a fee provided for in this Section, he
shall serve notice upon the holder by personal service or by
delivering the notice by certified mail, return receipt
required, through the United States Postal Service to the
holder.
(f) A holder may contest a charge or other fee issued by
the State Treasurer Director by requesting in writing an
administrative hearing within 15 business days of the receipt
of the State Treasurer's Director's notice of the charge or
fee. The hearing shall be held at a time and place
designated by the State Treasurer Director.
(g) The State Treasurer's Director's finding subjecting
a holder to a charge or other fee shall become a final order
under the Administrative Review Law upon the failure of the
holder to demand a hearing within 15 business days.
(h) If a hearing is held, the State Treasurer Director
shall issue an order affirming, modifying, or overruling the
charge or other fee. The order shall be a final order under
the Administrative Review Law.
(i) A holder shall not be charged for failing to remit
past due unclaimed property pursuant to the State's
Department's examination and demand for remittance when the
holder, in good faith, contests all or part of the finding,
until a final order reviewing the remittance is entered by a
hearing officer or the circuit court. With regard to
contested examinations, the charges, fees, or interest shall
not accrue during the period from the holder's filing of the
request for a hearing until the date of the final order.
However, a holder may be charged for failing to remit any
undisputed amounts of unclaimed property that are not being
contested in an administrative hearing or court action.
(j) The administrative charges, fees, and interest
charges provided for in this Section shall not apply to
property held by a trust division or trust department or by a
trust company, or affiliate of any of the foregoing that
provides nondealer corporate custodial services for
securities or securities transactions, organized under the
laws of this or another state or the United States.
As of January 1, 1998, this subsection shall not be
applicable unless the Department of Financial Institutions
has commenced, but not finalized, an examination of the
holder as of that date and the property is included in a
final examination report for the period covered by the
examination.
(k) In the conduct of a hearing initiated by a holder
under this Act, the State Treasurer Director has the power to
administer oaths, subpoena witnesses, and compel the
production of books, papers, documents, or records relevant
to the hearing under this Act.
(l) The provisions of this Section apply only to reports
due and examinations commenced after the effective date of
this amendatory Act of 1993.
(Source: P.A. 90-167, eff. 7-23-97.)
(765 ILCS 1025/26) (from Ch. 141, par. 126)
Sec. 26. The State Treasurer, Director of Financial
Institutions, and the Commissioner of Banks and Real Estate
are Director is hereby authorized to make necessary rules and
regulations to carry out the provisions of this Act.
(Source: Laws 1961, p. 3426.)
Section 40. The Business Corporation Act of 1983 is
amended by changing Section 12.70 as follows:
(805 ILCS 5/12.70) (from Ch. 32, par. 12.70)
Sec. 12.70. Deposit of amount due certain shareholders.
Upon the distribution of the assets of a corporation among
its shareholders, the distributive portion to which a
shareholder would be entitled who is unknown or can not be
found, or who is under disability and there is no person
legally competent to receive such distributive portion, shall
be presumed abandoned and reported and delivered to the State
Treasurer Director of Financial Institutions and become
subject to the provision of the Uniform Disposition of
Unclaimed Property Act. In the event such distribution be
made other than in cash, such distributive portion of the
assets shall be reduced to cash before being so reported and
delivered.
(Source: P.A. 83-1025.)
Section 45. The General Not For Profit Corporation Act
of 1986 is amended by changing Section 112.70 as follows:
(805 ILCS 105/112.70) (from Ch. 32, par. 112.70)
Sec. 112.70. Deposit of amount due. Upon the
distribution of the assets of a corporation, the distributive
portion to which a person would be entitled who is unknown or
cannot be found, or who is under disability and there is no
person legally competent to receive such distributive
portion, shall be presumed abandoned and reported and
delivered to the State Treasurer Director of Financial
Institutions and become subject to the provision of the
Uniform Disposition of Unclaimed Property Act. In the event
such distribution be made other than in cash, such
distributive portion of the assets shall be reduced to cash
before being so reported and delivered.
(Source: P.A. 84-1423.)
Section 99. Effective date. This Act takes effect July
1, 1999, except that this Section and the provisions adding
Sections 0.02, 0.03, 0.04, 0.05, and 0.06 to the State
Treasurer Act, Section 18.1 to the Financial Institutions
Code, and Section 0.05 to the Uniform Disposition of
Unclaimed Property Act take effect upon becoming law.
INDEX
Statutes amended in order of appearance
15 ILCS 505/0.02 new
15 ILCS 505/0.03 new
15 ILCS 505/0.04 new
15 ILCS 505/0.05 new
15 ILCS 505/0.06 new
20 ILCS 1205/7 from Ch. 17, par. 108
20 ILCS 1205/18.1 new
205 ILCS 5/65 from Ch. 17, par. 377
205 ILCS 305/62 from Ch. 17, par. 4463
205 ILCS 405/19.3 from Ch. 17, par. 4838
205 ILCS 620/6-14 from Ch. 17, par. 1556-14
215 ILCS 5/210 from Ch. 73, par. 822
755 ILCS 5/2-1 from Ch. 110 1/2, par. 2-1
755 ILCS 5/2-2 from Ch. 110 1/2, par. 2-2
765 ILCS 1025/0.05 new
765 ILCS 1025/1 from Ch. 141, par. 101
765 ILCS 1025/2 from Ch. 141, par. 102
765 ILCS 1025/10.5
765 ILCS 1025/11 from Ch. 141, par. 111
765 ILCS 1025/11.5
765 ILCS 1025/12 from Ch. 141, par. 112
765 ILCS 1025/13 from Ch. 141, par. 113
765 ILCS 1025/14 from Ch. 141, par. 114
765 ILCS 1025/15 from Ch. 141, par. 115
765 ILCS 1025/16 from Ch. 141, par. 116
765 ILCS 1025/17 from Ch. 141, par. 117
765 ILCS 1025/18 from Ch. 141, par. 118
765 ILCS 1025/19 from Ch. 141, par. 119
765 ILCS 1025/20 from Ch. 141, par. 120
765 ILCS 1025/21 from Ch. 141, par. 121
765 ILCS 1025/22 from Ch. 141, par. 122
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 1025/24.5
765 ILCS 1025/25 from Ch. 141, par. 125
765 ILCS 1025/25.5
765 ILCS 1025/26 from Ch. 141, par. 126
805 ILCS 5/12.70 from Ch. 32, par. 12.70
805 ILCS 105/112.70 from Ch. 32, par. 112.70
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