Bill Text: IL HB4601 | 2015-2016 | 99th General Assembly | Introduced

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Bill Title: Amends the Uniform Disposition of Unclaimed Property Act. Provides that certain property is presumed abandoned after 8 (instead of 5) years. Provides that property is not presumed abandoned if the owner of the property was the recipient of a federal taxable interest statement that was not returned to the sender, a dividend check that was cashed, or any automatic transactions, including dividend investments.

Sponsorship: Partisan Bill (Republican 1)

Status: (Introduced - Dead) 2016-04-22 - Rule 19(a) / Re-referred to Rules Committee [HB4601 Detail]

Download: Illinois-2015-HB4601-Introduced.html

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99TH GENERAL ASSEMBLY State of Illinois 2015 and 2016 HB4601 Introduced , by Rep. Thomas Bennett SYNOPSIS AS INTRODUCED:
765 ILCS 1025/2 from Ch. 141, par. 102
765 ILCS 1025/2a from Ch. 141, par. 102a
Amends the Uniform Disposition of Unclaimed Property Act. Provides that certain property is presumed abandoned after 8 (instead of 5) years. Provides that property is not presumed abandoned if the owner of the property was the recipient of a federal taxable interest statement that was not returned to the sender, a dividend check that was cashed, or any automatic transactions, including dividend investments.
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FISCAL NOTE ACT MAY APPLY
A BILL FOR
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AN ACT concerning civil law.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Uniform Disposition of Unclaimed Property
Act is amended by changing Sections 2 and 2a as follows:
(765 ILCS 1025/2) (from Ch. 141, par. 102)
Sec. 2. Property held by financial organizations;
presumption of abandonment. 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 8 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;
(3) Otherwise indicated an interest in the deposit as
evidenced by a memorandum on file with the banking
organization; or
(4) Engaged in the following activity regarding other

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funds or loan accounts with the banking organization:
(i) undertook one or more the above actions
described in subsection (a) of this Section regarding
any account that appears on a consolidated statement
with the inactive account;
(ii) increased or decreased the amount of funds in
any other account the owner has with the banking
organization; or
(iii) engaged in any other relationship with the
banking organization, including payment of any amounts
due on a loan; or .
(iv) was the recipient of a federal taxable
interest statement that was not returned to the sender.
The foregoing apply so long as the mailing address for the
owner in the banking organization's books and records is the
same for both the inactive account and for the active account.
(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 8 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;

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(3) Otherwise indicated an interest in the funds or
deposit as evidenced by a memorandum on file with the
financial organization; or
(4) Engaged in the following activity regarding other
funds or loan accounts with the financial organization:
(i) undertook one or more the above actions
described in subsection (b) of this Section regarding
any account that appears on a consolidated statement
with the inactive account;
(ii) increased or decreased the amount of funds in
any other account the owner has with the financial
organization; or
(iii) engaged in any other relationship with the
financial organization, including payment of any
amounts due on a loan; or .
(iv) was the recipient of a dividend check that was
cashed or the recipient of any automatic transactions,
including dividend investments.
The foregoing apply so long as the mailing address for the
owner in the financial organization's books and records is the
same for both the inactive account and for the active account.
(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

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exception of travelers checks and unclaimed wages, payroll, and
salary has been outstanding for more than 8 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, or, in the case of unclaimed wages, payroll, or
salary, that has been outstanding for more than one year from
the date of its issuance, excluding any charges that may be
lawfully withheld relating to money orders issued by currency
exchanges, unless the owner has within 8 5 years (or within 15
years in the case of travelers checks or one year in the case
of unclaimed wages, payroll, or salary) 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 8 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

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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, 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 8 5 years from that final maturity date.
Property of any kind held in an individual retirement account
(IRA) is not presumed abandoned earlier than 8 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 8 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. 97-270, eff. 8-8-11.)
(765 ILCS 1025/2a) (from Ch. 141, par. 102a)
Sec. 2a. (a) Business associations shall report, pursuant
to Section 11 of this Act, all property and any earnings

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thereon to which the owner would be entitled that have remained
unclaimed for 8 5 years and are therefore presumed abandoned.
Before reporting and delivering property as required under this
Act, a business association may deduct from the amount of
otherwise reportable intangible personal property the economic
loss suffered by it in connection with that intangible personal
property arising from transactions involving the sale of
tangible personal property at retail. This property shall
consist of, but is not limited to:
(1) (blank);
(2) deposits or payment for repair or purchase of goods
or services;
(3) credit checks or memos, or customer overpayments;
(4) stocks, bonds, or any other type of securities or
debt instruments, and interest and dividends therefrom;
(5) unidentified remittances, unrefunded overcharges;
(6) unpaid claims, unpaid accounts payable or unpaid
commissions; and
(7) credit balances - accounts receivable, checks
written off, employee bond buying and profit-sharing.
(b) Notwithstanding the provisions of subsection (a), any
property due or owed by a business association to or for the
benefit of another business association resulting from a
transaction occurring in the normal and ordinary course of
business shall be exempt from the provisions of this Act.
(c) Notwithstanding the provisions of subsection (a),

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unclaimed wages, payroll, and salary, in any form, shall be
reported after remaining unclaimed for one year, pursuant to
Section 2.
(Source: P.A. 97-270, eff. 8-8-11.)