Rep. Gregory Harris

Filed: 6/29/2017

 

 


 

 


 
10000SB0009ham002LRB100 06347 HLH 27841 a

1
AMENDMENT TO SENATE BILL 9

2    AMENDMENT NO. ______. Amend Senate Bill 9 by replacing
3everything after the enacting clause with the following:
 
4
"ARTICLE 1. STATE TAX LIEN REGISTRATION ACT

 
5    Section 1-1. Short title. This Act may be cited as the
6State Tax Lien Registration Act. References in this Article to
7"this Act" mean this Article.
 
8    Section 1-5. Purpose.
9    (a) The purpose of this Act is to provide a uniform
10statewide system for filing notices of tax liens that are in
11favor of or enforced by the Department. The Department shall
12maintain the system.
13    (b) The scope of this Act is limited to tax liens in real
14property and personal property, tangible and intangible, of
15taxpayers or other persons against whom the Department has

 

 

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1liens pursuant to law for unpaid final tax liabilities
2administered by the Department.
3    (c) Nothing in this Act shall be construed to invalidate
4any lien filed by the Department with a county recorder of
5deeds prior to the effective date of this Act.
 
6    Section 1-10. Definitions.
7    "Debtor" means a taxpayer or other person against whom
8there is an unpaid final tax liability collectible by the
9Department.
10    "Department" means the Department of Revenue.
11    "Final tax liability" means any State tax, fee, penalty, or
12interest owed by a person to the Department where the
13assessment of the liability is not subject to any further
14timely filed administrative or judicial review.
15    "Last-known address of the debtor" means the address of the
16debtor appearing in the records of the Department at the time
17the notice of tax lien is filed in the registry.
18    "Person" means any natural individual, firm, partnership,
19association, joint stock company, joint adventure, public or
20private corporation, limited liability company, or a receiver,
21executor, trustee, guardian or other representative appointed
22by order of any court.
23    "Registry" or "State Tax Lien Registry" means the public
24database maintained by the Department wherein tax liens are
25filed in favor of and enforced by the Department.
 

 

 

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1    Section 1-15. Registry established.
2    (a) The Department shall establish and maintain a public
3database known as the State Tax Lien Registry. If any person
4neglects or refuses to pay any final tax liability, the
5Department may file in the registry a notice of tax lien within
63 years from the date of the final tax liability.
7    (b) The notice of tax lien file shall include:
8        (1) the name and last-known address of the debtor;
9        (2) the name and address of the Department;
10        (3) the tax lien number assigned to the lien by the
11    Department; and
12        (4) the basis for the tax lien, including, but not
13    limited to, the amount owed by the debtor as of the date of
14    filing in the tax lien registry.
 
15    Section 1-20. Tax lien perfected.
16    (a) When a notice of tax lien is filed by the Department in
17the registry, the tax lien is perfected and shall be attached
18to all of the existing and after-acquired property of the
19debtor, both real and personal, tangible and intangible, which
20is located in any and all counties within the State of
21Illinois.
22    (b) The amount of the tax lien shall be a debt due the
23State of Illinois and shall remain a lien upon all property and
24rights to property belonging to the debtor, both real and

 

 

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1personal, tangible and intangible, which is located in any and
2all counties within the State of Illinois. Interest and penalty
3shall accrue on the tax lien at the same rate and with the same
4restrictions, if any, as specified by statute for the accrual
5of interest and penalty for the type of tax or taxes for which
6the tax lien was issued.
 
7    Section 1-25. Time period of lien.
8    (a) A notice of tax lien shall be a lien upon the debtor's
9property located anywhere in the State for a period of 20 years
10from the date of filing unless it is sooner released by the
11Department.
12    (b) A notice of release of tax lien filed in the registry
13shall constitute a release of the tax lien within the
14Department, the registry, and the county in which the tax lien
15was previously filed. The information contained on the registry
16shall be controlling, and the registry shall supersede the
17records of any county.
 
18    Section 1-30. Registry format.
19    (a) The Department shall maintain notices of tax liens
20filed in the registry after the effective date of this Act in
21its information management system in a form that permits the
22information to be readily accessible in an electronic form
23through the Internet and to be reduced to printed form. The
24electronic and printed form shall include the following

 

 

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1information:
2        (1) the name of the taxpayer;
3        (2) the name and address of the Department;
4        (3) the tax lien number assigned to the lien by the
5    Department;
6        (4) the amount of the taxes, penalties, interest, and
7    fees indicated due on the notice of tax lien received from
8    the Department; and
9        (5) the date and time of filing.
10    (b) Information in the registry shall be searchable by name
11of debtor or by tax lien number. The Department shall not
12charge for access to information in the registry.
13    (c) The Department is authorized to sell at bulk the
14information appearing on the tax lien registry. In selling the
15information, the Department shall adopt rules governing the
16process by which the information will be sold and the media or
17method by which it will be available to the purchaser and shall
18set a price for the information that will at least cover the
19cost of producing the information. The proceeds from the sale
20of bulk information shall be retained by the Department and
21used to cover its cost to produce the information sold and to
22maintain the registry.
23    (d) Registry information, whether accessed by name of
24debtor or by tax lien number at no charge, through a bulk sale
25of information, or by other means, shall not be used for
26survey, marketing, or solicitation purposes. Survey,

 

 

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1marketing, or solicitation purpose does not include any action
2by the Department or its authorized agent to collect a debt
3represented by a tax lien appearing in the registry. The
4Attorney General may bring an action in any court of competent
5jurisdiction to enjoin the unlawful use of registry information
6for survey, marketing, or solicitation purposes and to recover
7the cost of such action, including reasonable attorney's fees.
 
8    Section 1-35. Rulemaking. The Department may adopt rules in
9accordance with the Illinois Administrative Procedure Act to
10enforce the provisions of this Act.
 
11    Section 1-40. Conflicts. In the event of conflict between
12this Act and any other law, this Act shall control.
 
13
ARTICLE 15. REVISED UNIFORM UNCLAIMED PROPERTY ACT

 
14
ARTICLE 1. GENERAL PROVISIONS

 
15    Section 15-101. Short title. This Act may be cited as the
16Revised Uniform Unclaimed Property Act. References in this
17Article 15 (the Revised Uniform Unclaimed Property Act) to
18"this Act" mean this Article 15 (the Revised Uniform Unclaimed
19Property Act).
 
20    Section 15-102. Definitions. In this Act:

 

 

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1        (1) "Administrator" means the State Treasurer.
2        (2) "Administrator's agent" means a person with which
3    the administrator contracts to conduct an examination
4    under Article 10 on behalf of the administrator. The term
5    includes an independent contractor of the person and each
6    individual participating in the examination on behalf of
7    the person or contractor.
8        (2.5) "Affiliated group of merchants" means 2 or more
9    affiliated merchants or other persons that are related by
10    common ownership or common corporate control and that share
11    the same name, mark, or logo. The term also applies to 2 or
12    more merchants or other persons that agree among
13    themselves, by contract or otherwise, to redeem cards,
14    codes, or other devices bearing the same name, mark, or
15    logo (other than the mark, logo, or brand of a payment
16    network), for the purchase of goods or services solely at
17    such merchants or persons. However, merchants or other
18    persons are not considered to be affiliated merely because
19    they agree to accept a card that bears the mark, logo, or
20    brand of a payment network.
21        (3) "Apparent owner" means a person whose name appears
22    on the records of a holder as the owner of property held,
23    issued, or owing by the holder.
24        (4) "Business association" means a corporation, joint
25    stock company, investment company, unincorporated
26    association, joint venture, limited liability company,

 

 

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1    business trust, trust company, land bank, safe deposit
2    company, safekeeping depository, financial organization,
3    insurance company, federally chartered entity, utility,
4    sole proprietorship, or other business entity, whether or
5    not for profit.
6        (5) "Confidential information" means information that
7    is "personal information" under the Personal Information
8    Protection Act, "private information" under the Freedom of
9    Information Act or personal information contained within
10    public records, the disclosure of which would constitute a
11    clearly unwarranted invasion of personal privacy, unless
12    the disclosure is consented to in writing by the individual
13    subjects of the information as provided in the Freedom of
14    Information Act.
15        (6) "Domicile" means:
16            (A) for a corporation, the state of its
17        incorporation;
18            (B) for a business association whose formation
19        requires a filing with a state, other than a
20        corporation, the state of its filing;
21            (C) for a federally chartered entity or an
22        investment company registered under the Investment
23        Company Act of 1940, the state of its home office; and
24            (D) for any other holder, the state of its
25        principal place of business.
26        (7) "Electronic" means relating to technology having

 

 

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1    electrical, digital, magnetic, wireless, optical,
2    electromagnetic, or similar capabilities.
3        (8) "Electronic mail" means a communication by
4    electronic means which is automatically retained and
5    stored and may be readily accessed or retrieved.
6        (9) "Financial organization" means a bank, savings
7    bank, corporate fiduciary, currency exchange, money
8    transmitter, or credit union.
9        (10) "Game-related digital content" means digital
10    content that exists only in an electronic game or
11    electronic-game platform. The term:
12            (A) includes:
13                (i) game-play currency such as a virtual
14            wallet, even if denominated in United States
15            currency; and
16                (ii) the following if for use or redemption
17            only within the game or platform or another
18            electronic game or electronic-game platform:
19                    (I) points sometimes referred to as gems,
20                tokens, gold, and similar names; and
21                    (II) digital codes; and
22            (B) does not include an item that the issuer:
23                (i) permits to be redeemed for use outside a
24            game or platform for:
25                    (I) money; or
26                    (II) goods or services that have more than

 

 

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1                minimal value; or
2                (ii) otherwise monetizes for use outside a
3            game or platform.
4        (11) "Gift card" means:
5            (A) a stored-value card:
6                (i) issued on a prepaid basis in a specified
7            amount;
8                (ii) the value of which does not expire;
9                (iii) that is not subject to a dormancy,
10            inactivity, or service fee;
11                (iv) that may be decreased in value only by
12            redemption for merchandise, goods, or services
13            upon presentation at a single merchant or an
14            affiliated group of merchants; and
15                (v) that, unless required by law, may not be
16            redeemed for or converted into money or otherwise
17            monetized by the issuer;
18            (B) includes a prepaid commercial mobile radio
19        service, as defined in 47 C.F.R. 20.3, as amended; and
20            (C) does not include a stored-value card issued as
21        in-store credit for returned merchandise.
22        (12) "Holder" means a person obligated to hold for the
23    account of, or to deliver or pay to, the owner, property
24    subject to this Act.
25        (13) "Insurance company" means an association,
26    corporation, or fraternal or mutual-benefit organization,

 

 

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1    whether or not for profit, engaged in the business of
2    providing life endowments, annuities, or insurance,
3    including accident, burial, casualty, credit-life,
4    contract-performance, dental, disability, fidelity, fire,
5    health, hospitalization, illness, life, malpractice,
6    marine, mortgage, surety, wage-protection, and
7    worker-compensation insurance.
8        (14) "Loyalty card" means a record given without direct
9    monetary consideration under an award, reward, benefit,
10    loyalty, incentive, rebate, or promotional program which
11    may be used or redeemed only to obtain goods or services or
12    a discount on goods or services. The term does not include
13    a record that may be redeemed for money or otherwise
14    monetized by the issuer.
15        (15) "Mineral" means gas, oil, coal, oil shale, other
16    gaseous liquid or solid hydrocarbon, cement material, sand
17    and gravel, road material, building stone, chemical raw
18    material, gemstone, fissionable and nonfissionable ores,
19    colloidal and other clay, steam and other geothermal
20    resources, and any other substance defined as a mineral by
21    law of this State other than this Act.
22        (16) "Mineral proceeds" means an amount payable for
23    extraction, production, or sale of minerals, or, on the
24    abandonment of the amount, an amount that becomes payable
25    after abandonment. The term includes an amount payable:
26            (A) for the acquisition and retention of a mineral

 

 

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1        lease, including a bonus, royalty, compensatory
2        royalty, shut-in royalty, minimum royalty, and delay
3        rental;
4            (B) for the extraction, production, or sale of
5        minerals, including a net revenue interest, royalty,
6        overriding royalty, extraction payment, and production
7        payment; and
8            (C) under an agreement or option, including a
9        joint-operating agreement, unit agreement, pooling
10        agreement, and farm-out agreement.
11        (17) "Money order" means a payment order for a
12    specified amount of money. The term includes an express
13    money order and a personal money order on which the
14    remitter is the purchaser.
15        (18) "Municipal bond" means a bond or evidence of
16    indebtedness issued by a municipality or other political
17    subdivision of a state.
18        (19) "Net card value" means the original purchase price
19    or original issued value of a stored-value card, plus
20    amounts added to the original price or value, minus amounts
21    used and any service charge, fee, or dormancy charge
22    permitted by law.
23        (20) "Non-freely transferable security" means a
24    security that cannot be delivered to the administrator by
25    the Depository Trust Clearing Corporation or similar
26    custodian of securities providing post-trade clearing and

 

 

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1    settlement services to financial markets or cannot be
2    delivered because there is no agent to effect transfer. The
3    term includes a worthless security.
4        (21) "Owner" means a person that has a legal,
5    beneficial, or equitable interest in property subject to
6    this Act or the person's legal representative when acting
7    on behalf of the owner. The term includes:
8            (A) a depositor, for a deposit;
9            (B) a beneficiary, for a trust other than a deposit
10        in trust;
11            (C) a creditor, claimant, or payee, for other
12        property; and
13            (D) the lawful bearer of a record that may be used
14        to obtain money, a reward, or a thing of value.
15        (22) "Payroll card" means a record that evidences a
16    payroll-card account as defined in Regulation E, 12 CFR
17    Part 1005, as amended.
18        (23) "Person" means an individual, estate, business
19    association, public corporation, government or
20    governmental subdivision, agency, or instrumentality, or
21    other legal entity whether or not for profit.
22        (24) "Property" means tangible property described in
23    Section 15-201 or a fixed and certain interest in
24    intangible property held, issued, or owed in the course of
25    a holder's business or by a government, governmental
26    subdivision, agency, or instrumentality. The term:

 

 

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1            (A) includes all income from or increments to the
2        property;
3            (B) includes property referred to as or evidenced
4        by:
5                (i) money, virtual currency, interest, or a
6            dividend, check, draft, deposit, or payroll card;
7                (ii) a credit balance, customer's overpayment,
8            stored-value card, security deposit, refund,
9            credit memorandum, unpaid wage, unused ticket for
10            which the issuer has an obligation to provide a
11            refund, mineral proceeds, or unidentified
12            remittance;
13                (iii) a security except for:
14                    (I) a worthless security; or
15                    (II) a security that is subject to a lien,
16                legal hold, or restriction evidenced on the
17                records of the holder or imposed by operation
18                of law, if the lien, legal hold, or restriction
19                restricts the holder's or owner's ability to
20                receive, transfer, sell, or otherwise
21                negotiate the security;
22                (iv) a bond, debenture, note, or other
23            evidence of indebtedness;
24                (v) money deposited to redeem a security, make
25            a distribution, or pay a dividend;
26                (vi) an amount due and payable under an annuity

 

 

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1            contract or insurance policy; and
2                (vii) an amount distributable from a trust or
3            custodial fund established under a plan to provide
4            health, welfare, pension, vacation, severance,
5            retirement, death, stock purchase, profit-sharing,
6            employee-savings, supplemental-unemployment
7            insurance, or a similar benefit; and
8            (C) does not include:
9                (i) game-related digital content;
10                (ii) a loyalty card; or
11                (iii) a gift card.
12        (25) "Putative holder" means a person believed by the
13    administrator to be a holder, until the person pays or
14    delivers to the administrator property subject to this Act
15    or the administrator or a court makes a final determination
16    that the person is or is not a holder.
17        (26) "Record" means information that is inscribed on a
18    tangible medium or that is stored in an electronic or other
19    medium and is retrievable in perceivable form. The phrase
20    "records of the holder" includes records maintained by a
21    third party that has contracted with the holder.
22        (27) "Security" means:
23            (A) a security as defined in Article 8 of the
24        Uniform Commercial Code;
25            (B) a security entitlement as defined in Article 8
26        of the Uniform Commercial Code, including a customer

 

 

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1        security account held by a registered broker-dealer,
2        to the extent the financial assets held in the security
3        account are not:
4                (i) registered on the books of the issuer in
5            the name of the person for which the broker-dealer
6            holds the assets;
7                (ii) payable to the order of the person; or
8                (iii) specifically indorsed to the person; or
9            (C) an equity interest in a business association
10        not included in subparagraph (A) or (B).
11        (28) "Sign" means, with present intent to authenticate
12    or adopt a record:
13            (A) to execute or adopt a tangible symbol; or
14            (B) to attach to or logically associate with the
15        record an electronic symbol, sound, or process.
16        (29) "State" means a state of the United States, the
17    District of Columbia, the Commonwealth of Puerto Rico, the
18    United States Virgin Islands, or any territory or insular
19    possession subject to the jurisdiction of the United
20    States.
21        (30) "Stored-value card" means a record evidencing a
22    promise made for consideration by the seller or issuer of
23    the record that goods, services, or money will be provided
24    to the owner of the record to the value or amount shown in
25    the record. The term:
26            (A) includes:

 

 

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1                (i) a record that contains or consists of a
2            microprocessor chip, magnetic strip, or other
3            means for the storage of information, which is
4            prefunded and whose value or amount is decreased on
5            each use and increased by payment of additional
6            consideration; and
7                (ii) a gift card and payroll card; and
8            (B) does not include a loyalty card or game-related
9        digital content.
10        (31) "Utility" means a person that owns or operates for
11    public use a plant, equipment, real property, franchise, or
12    license for the following public services:
13            (A) transmission of communications or information;
14            (B) production, storage, transmission, sale,
15        delivery, or furnishing of electricity, water, steam,
16        or gas; or
17            (C) provision of sewage or septic services, or
18        trash, garbage, or recycling disposal.
19        (32) "Virtual currency" means a digital representation
20    of value used as a medium of exchange, unit of account, or
21    store of value, which does not have legal tender status
22    recognized by the United States. The term does not include:
23            (A) the software or protocols governing the
24        transfer of the digital representation of value;
25            (B) game-related digital content; or
26            (C) a loyalty card or gift card.

 

 

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1        (33) "Worthless security" means a security whose cost
2    of liquidation and delivery to the administrator would
3    exceed the value of the security on the date a report is
4    due under this Act.
 
5    Section 15-103. Inapplicability to foreign transaction.
6This Act does not apply to property held, due, and owing in a
7foreign country if the transaction out of which the property
8arose was a foreign transaction.
 
9    Section 15-104. Rulemaking. The administrator may adopt
10rules to implement and administer this Act pursuant to the
11Illinois Administrative Procedure Act.
 
12
ARTICLE 2. PRESUMPTION OF ABANDONMENT

 
13    Section 15-201. When property presumed abandoned. Subject
14to Section 15-210, the following property is presumed abandoned
15if it is unclaimed by the apparent owner during the period
16specified below:
17        (1) a traveler's check, 15 years after issuance;
18        (2) a money order, 7 years after issuance;
19        (3) (Blank).
20        (4) a state or municipal bond, bearer bond, or
21    original-issue-discount bond, 3 years after the earliest
22    of the date the bond matures or is called or the obligation

 

 

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1    to pay the principal of the bond arises;
2        (5) a debt of a business association, 3 years after the
3    obligation to pay arises;
4        (6) a demand, savings, or time deposit, 3 years after
5    the later of maturity or the date of the last indication of
6    interest in the property by the apparent owner, except for
7    a deposit that is automatically renewable, 3 years after
8    its initial date of maturity unless the apparent owner
9    consented in a record on file with the holder to renewal at
10    or about the time of the renewal;
11        (7) money or a credit owed to a customer as a result of
12    a retail business transaction, including an in-store
13    credit for returned merchandise, other than a stored-value
14    card, 3 years after the obligation arose;
15        (8) an amount owed by an insurance company on a life or
16    endowment insurance policy or an annuity contract that has
17    matured or terminated, 3 years after the obligation to pay
18    arose under the terms of the policy or contract or, if a
19    policy or contract for which an amount is owed on proof of
20    death has not matured by proof of the death of the insured
21    or annuitant, as follows:
22            (A) with respect to an amount owed on a life or
23        endowment insurance policy, the earlier of:
24                (i) 3 years after the death of the insured; or
25                (ii) 2 years after the insured has attained, or
26            would have attained if living, the limiting age

 

 

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1            under the mortality table on which the reserve for
2            the policy is based; and
3            (B) with respect to an amount owed on an annuity
4        contract, 3 years after the death of the annuitant.
5        (9) funds on deposit or held in trust for the
6    prepayment of a funeral or other funeral-related expenses,
7    the earliest of:
8            (A) 2 years after the date of death of the
9        beneficiary;
10            (B) one year after the date the beneficiary has
11        attained, or would have attained if living, the age of
12        105 where the holder does not know whether the
13        beneficiary is deceased;
14            (C) 30 years after the contract for prepayment was
15        executed;
16        (10) property distributable by a business association
17    in the course of dissolution or distributions from the
18    termination of a retirement plan, one year after the
19    property becomes distributable;
20        (11) property held by a court, including property
21    received as proceeds of a class action, 3 years after the
22    property becomes distributable;
23        (12) property held by a government or governmental
24    subdivision, agency, or instrumentality, including
25    municipal bond interest and unredeemed principal under the
26    administration of a paying agent or indenture trustee, 3

 

 

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1    years after the property becomes distributable;
2        (13) wages, commissions, bonuses, or reimbursements to
3    which an employee is entitled, or other compensation for
4    personal services, including amounts held on a payroll
5    card, one year after the amount becomes payable;
6        (14) a deposit or refund owed to a subscriber by a
7    utility, one year after the deposit or refund becomes
8    payable, except that any capital credits or patronage
9    capital retired, returned, refunded or tendered to a member
10    of an electric cooperative as defined in Section 3.4 of the
11    Electric Supplier Act shall not be subject to, or governed
12    by, any other provisions of this Act, but rather shall be
13    used by the cooperative for the benefit of the general
14    membership of the cooperative; and
15        (15) property not specified in this Section or Sections
16    15-202 through 15-208, the earlier of 3 years after the
17    owner first has a right to demand the property or the
18    obligation to pay or distribute the property arises.
19    Notwithstanding anything to the contrary in this Section
2015-201, and subject to Section 15-210, a deceased owner cannot
21indicate interest in his or her property. If the owner is
22deceased and the abandonment period for the owner's property
23specified in this Section 15-201 is greater than 2 years, then
24the property, other than an amount owed by an insurance company
25on a life or endowment insurance policy or an annuity contract
26that has matured or terminated, shall instead be presumed

 

 

10000SB0009ham002- 22 -LRB100 06347 HLH 27841 a

1abandoned 2 years from the date of the owner's last indication
2of interest in the property.
 
3    Section 15-202. When tax-deferred retirement account
4presumed abandoned.
5    (a) Subject to Section 15-210, property held in a pension
6account or retirement account that qualifies for tax deferral
7under the income-tax laws of the United States is presumed
8abandoned if it is unclaimed by the apparent owner after the
9later of:
10        (1) 3 years after the following dates:
11            (A) except as in subparagraph (B), the date a
12        communication sent by the holder by first-class United
13        States mail to the apparent owner is returned to the
14        holder undelivered by the United States Postal
15        Service; or
16            (B) if such communication is re-sent within 30 days
17        after the date the first communication is returned
18        undelivered, the date the second communication was
19        returned undelivered by the United States Postal
20        Service; or
21        (2) the earlier of the following dates:
22            (A) 3 years after the date the apparent owner
23        becomes 70.5 years of age, if determinable by the
24        holder; or
25            (B) one year after the date of mandatory

 

 

10000SB0009ham002- 23 -LRB100 06347 HLH 27841 a

1        distribution following death if the Internal Revenue
2        Code requires distribution to avoid a tax penalty and
3        the holder:
4                (i) receives confirmation of the death of the
5            apparent owner in the ordinary course of its
6            business; or
7                (ii) confirms the death of the apparent owner
8            under subsection (b).
9    (b) If a holder in the ordinary course of its business
10receives notice or an indication of the death of an apparent
11owner and subsection (a)(2) applies, the holder shall attempt
12not later than 90 days after receipt of the notice or
13indication to confirm whether the apparent owner is deceased.
14    (c) If the holder does not send communications to the
15apparent owner of an account described in subsection (a) by
16first-class United States mail on at least an annual basis, the
17holder shall attempt to confirm the apparent owner's interest
18in the property by sending the apparent owner an
19electronic-mail communication not later than 2 years after the
20apparent owner's last indication of interest in the property.
21However, the holder promptly shall attempt to contact the
22apparent owner by first-class United States mail if:
23        (1) the holder does not have information needed to send
24    the apparent owner an electronic mail communication or the
25    holder believes that the apparent owner's electronic mail
26    address in the holder's records is not valid;

 

 

10000SB0009ham002- 24 -LRB100 06347 HLH 27841 a

1        (2) the holder receives notification that the
2    electronic-mail communication was not received; or
3        (3) the apparent owner does not respond to the
4    electronic-mail communication within 30 days after the
5    communication was sent.
6    (d) If first-class United States mail sent under subsection
7(c) is returned to the holder undelivered by the United States
8Postal Service, the property is presumed abandoned 3 years
9after the later of:
10        (1) except as in paragraph (2), the date a
11    communication to contact the apparent owner sent by
12    first-class United States mail is returned to the holder
13    undelivered;
14        (2) if such communication is re-sent within 30 days
15    after the date the first communication is returned
16    undelivered, the date the second communication was
17    returned undelivered; or
18        (3) the date established by subsection (a)(2).
 
19    Section 15-203. When other tax-deferred account presumed
20abandoned.
21    (a) Subject to Section 15-210 and except for property
22described in Section 15-202, property held in an account or
23plan, including a health savings account, that qualifies for
24tax deferral under the income-tax laws of the United States is
25presumed abandoned if it is unclaimed by the apparent owner 3

 

 

10000SB0009ham002- 25 -LRB100 06347 HLH 27841 a

1years after the earlier of:
2        (1) the date, if determinable by the holder, specified
3    in the income-tax laws and regulations of the United States
4    by which distribution of the property must begin to avoid a
5    tax penalty, with no distribution having been made; or
6        (2) 30 years after the date the account was opened.
7    (b) If the owner is deceased, then property subject to this
8Section is presumed abandoned 2 years from the earliest of:
9        (1) the date of the distribution or attempted
10    distribution of the property;
11        (2) the date of the required distribution as stated in
12    the plan or trust agreement governing the plan; or
13        (3) the date, if determinable by the holder, specified
14    in the income tax laws of the United States by which
15    distribution of the property must begin in order to avoid a
16    tax penalty.
 
17    Section 15-204. When custodial account for minor presumed
18abandoned.
19    (a) Subject to Section 15-210, property held in an account
20established under a state's Uniform Gifts to Minors Act or
21Uniform Transfers to Minors Act is presumed abandoned if it is
22unclaimed by or on behalf of the minor on whose behalf the
23account was opened 3 years after the later of:
24        (1) except as in subparagraph (2), the date a
25    communication sent by the holder by first-class United

 

 

10000SB0009ham002- 26 -LRB100 06347 HLH 27841 a

1    States mail to the custodian of the minor on whose behalf
2    the account was opened is returned undelivered to the
3    holder by the United States Postal Service;
4        (2) if a communication is re-sent within 30 days after
5    the date the first communication is returned undelivered,
6    the date the second communication was returned
7    undelivered; or
8        (3) the date on which the custodian is required to
9    transfer the property to the minor or the minor's estate in
10    accordance with the Uniform Gifts to Minors Act or Uniform
11    Transfers to Minors Act of the state in which the account
12    was opened.
13    (b) If the holder does not send communications to the
14custodian of the minor on whose behalf an account described in
15subsection (a) was opened by first-class United States mail on
16at least an annual basis, the holder shall attempt to confirm
17the custodian's interest in the property by sending the
18custodian an electronic-mail communication not later than 2
19years after the custodian's last indication of interest in the
20property. However, the holder promptly shall attempt to contact
21the custodian by first-class United States mail if:
22        (1) the holder does not have information needed to send
23    the custodian an electronic mail communication or the
24    holder believes that the custodian's electronic-mail
25    address in the holder's records is not valid;
26        (2) the holder receives notification that the

 

 

10000SB0009ham002- 27 -LRB100 06347 HLH 27841 a

1    electronic-mail communication was not received; or
2        (3) the custodian does not respond to the
3    electronic-mail communication within 30 days after the
4    communication was sent.
5    (c) If first-class United States mail sent under subsection
6(b) is returned undelivered to the holder by the United States
7Postal Service, the property is presumed abandoned 3 years
8after the later of:
9        (1) the date a communication to contact the custodian
10    by first-class United States mail is returned to the holder
11    undelivered by the United States Postal Service; or
12        (2) the date established by subsection (a)(3).
13    (d) Notwithstanding any other provision of this Act, money
14of a minor deposited pursuant to Section 24-21 of the Probate
15Act of 1975 shall not be presumed abandoned earlier than 3
16years after the minor attains legal age. Such money shall be
17deposited into an account which shall indicate the date of
18birth of the minor.
19    (e) (Blank).
20    (f) When the property in the account described in
21subsections (a) or (d) is transferred to the minor on whose
22behalf an account was opened or to the minor's estate, the
23property in the account is no longer subject to this Section.
 
24    Section 15-205. When contents of safe-deposit box presumed
25abandoned. Tangible property held in a safe-deposit box are

 

 

10000SB0009ham002- 28 -LRB100 06347 HLH 27841 a

1presumed abandoned if the property remains unclaimed by the
2apparent owner 5 years after the expiration of the lease or
3rental period for the box.
 
4    Section 15-206. When stored-value card presumed abandoned.
5    (a) Subject to Section 15-210, the net card value of a
6stored-value card, other than a payroll card or a gift card, is
7presumed abandoned on the latest of 5 years after:
8        (1) December 31 of the year in which the card is issued
9    or additional funds are deposited into it;
10        (2) the most recent indication of interest in the card
11    by the apparent owner; or
12        (3) a verification or review of the balance by or on
13    behalf of the apparent owner.
14    (b) The amount presumed abandoned in a stored-value card is
15the net card value at the time it is presumed abandoned.
16    (c) However, if a holder has reported and remitted to the
17administrator the net card value on a stored-value card
18presumed abandoned under this Section and the stored-value card
19does not have an expiration date, then the holder must honor
20the card on presentation indefinitely and may then request
21reimbursement from the administrator under Section 605.
 
22    Section 15-208. When security presumed abandoned.
23    (a) Subject to Section 15-210, a security is presumed
24abandoned upon the earlier of the following:

 

 

10000SB0009ham002- 29 -LRB100 06347 HLH 27841 a

1        (1) 3 years after the date a communication sent by the
2    holder by first-class United States mail to the apparent
3    owner is returned to the holder undelivered by the United
4    States Postal Service; however, if such returned
5    communication is re-sent within one month to the apparent
6    owner, the 3-year period does not begin to run until the
7    day the resent item is returned as undeliverable; or
8        (2) 5 years after the date of the apparent owner's last
9    indication of interest in the security.
10    (b) If the holder does not send communications to the
11apparent owner of a security by first-class United States mail
12on at least an annual basis, the holder shall attempt to
13confirm the apparent owner's interest in the security by
14sending the apparent owner an electronic-mail communication
15not later than 3 years after the apparent owner's last
16indication of interest in the security. However, the holder
17promptly shall attempt to contact the apparent owner by
18first-class United States mail if:
19        (1) the holder does not have information needed to send
20    the apparent owner an electronic-mail communication or the
21    holder believes that the apparent owner's electronic-mail
22    address in the holder's records is not valid;
23        (2) the holder receives notification that the
24    electronic-mail communication was not received; or
25        (3) the apparent owner does not respond to the
26    electronic-mail communication within 30 days after the

 

 

10000SB0009ham002- 30 -LRB100 06347 HLH 27841 a

1    communication was sent.
2    (c) If first-class United States mail sent under subsection
3(b) is returned to the holder undelivered by the United States
4Postal Service, the security is presumed abandoned in
5accordance with subsection (a)(2) above.
6    (d) If a holder in the ordinary course of its business
7receives notice or an indication of the death of an apparent
8owner, the holder shall attempt not later than 90 days after
9receipt of the notice or indication to confirm whether the
10apparent owner is deceased. Notwithstanding the standards set
11forth in paragraphs (a), (b) and (c), if the holder either
12receives confirmation of the death of the apparent owner in the
13ordinary course of its business or confirms the death of the
14apparent owner under this subsection (d), then, the property
15shall be presumed abandoned 2 years after the date of death of
16the owner.
 
17    Section 15-209. When related property presumed abandoned.
18At and after the time property is presumed abandoned under this
19Act, any other property right or interest accrued or accruing
20from the property and not previously presumed abandoned is also
21presumed abandoned.
 
22    Section 15-210. Indication of apparent owner interest in
23property.
24    (a) The period after which property is presumed abandoned

 

 

10000SB0009ham002- 31 -LRB100 06347 HLH 27841 a

1is measured from the later of:
2        (1) the date the property is presumed abandoned under
3    this Article; or
4        (2) the latest indication of interest by the apparent
5    owner in the property.
6    (b) Under this Act, an indication of an apparent owner's
7interest in property includes:
8        (1) a record communicated by the apparent owner to the
9    holder or agent of the holder concerning the property or
10    the account in which the property is held;
11        (2) an oral communication by the apparent owner to the
12    holder or agent of the holder concerning the property or
13    the account in which the property is held, if the holder or
14    its agent contemporaneously makes and preserves a record of
15    the fact of the apparent owner's communication;
16        (3) presentment of a check or other instrument of
17    payment of a dividend, interest payment, or other
18    distribution, or evidence of receipt of a distribution made
19    by electronic or similar means, with respect to an account,
20    underlying security, or interest in a business
21    association;
22        (4) activity directed by an apparent owner in the
23    account in which the property is held, including accessing
24    the account or information concerning the account, or a
25    direction by the apparent owner to increase, decrease, or
26    otherwise change the amount or type of property held in the

 

 

10000SB0009ham002- 32 -LRB100 06347 HLH 27841 a

1    account;
2        (5) a deposit into or withdrawal from an account at a
3    financial organization, except for a recurring Automated
4    Clearing House (ACH) debit or credit previously authorized
5    by the apparent owner or an automatic reinvestment of
6    dividends or interest; and
7        (6) subject to subsection (e), payment of a premium on
8    an insurance policy.
9    (c) An action by an agent or other representative of an
10apparent owner, other than the holder acting as the apparent
11owner's agent, is presumed to be an action on behalf of the
12apparent owner.
13    (d) A communication with an apparent owner by a person
14other than the holder or the holder's representative is not an
15indication of interest in the property by the apparent owner
16unless a record of the communication evidences the apparent
17owner's knowledge of a right to the property.
18    (e) If the insured dies or the insured or beneficiary of an
19insurance policy otherwise becomes entitled to the proceeds
20before depletion of the cash surrender value of the policy by
21operation of an automatic-premium-loan provision or other
22nonforfeiture provision contained in the policy, the operation
23does not prevent the policy from maturing or terminating.
24    (f) If the apparent owner has another property with the
25holder to which Section 201(6) applies, then activity directed
26by an apparent owner in any other accounts, including loan

 

 

10000SB0009ham002- 33 -LRB100 06347 HLH 27841 a

1accounts, at a financial organization holding an inactive
2account of the apparent owner shall be an indication of
3interest in all such accounts if:
4            (A) the apparent owner engages in one or more of
5        the following activities:
6                (i) the apparent owner undertakes one or more
7            of the actions described in subsection (b) of this
8            Section regarding any account that appears on a
9            consolidated statement with the inactive account;
10                (ii) the apparent owner increases or decreases
11            the amount of funds in any other account the
12            apparent owner has with the financial
13            organization; or
14                (iii) the apparent owner engages in any other
15            relationship with the financial organization,
16            including payment of any amounts due on a loan; and
17            (B) the foregoing apply so long as the mailing
18        address for the apparent owner in the financial
19        organization's books and records is the same for both
20        the inactive account and the active account.
 
21    Section 15-211. Knowledge of death of insured or annuitant.
22    (a) In this Section, "death master file" means the United
23States Social Security Administration Death Master File or
24other database or service that is at least as comprehensive as
25the United States Social Security Administration Death Master

 

 

10000SB0009ham002- 34 -LRB100 06347 HLH 27841 a

1File for determining that an individual reportedly has died.
2    (b) With respect to a life or endowment insurance policy or
3annuity contract for which an amount is owed on proof of death,
4but which has not matured by proof of death of the insured or
5annuitant, the company has knowledge of the death of an insured
6or annuitant when:
7        (1) the company receives a death certificate or court
8    order determining that the insured or annuitant has died;
9        (2) the company:
10            (A) receives notice of the death of the insured or
11        annuitant from the administrator or an unclaimed
12        property administrator of another state, a
13        beneficiary, a policy owner, a relative of the insured,
14        a representative under the Probate Act of 1975, or from
15        an executor or other legal representative of the
16        insured's or annuitant's estate; and
17            (B) validates the death of the insured or
18        annuitant;
19        (3) the company conducts a comparison for any purpose
20    between a death master file and the names of some or all of
21    the company's insureds or annuitants, finds a match that
22    provides notice that the insured or annuitant has died; or
23        (4) the administrator or the administrator's agent
24    conducts a comparison for the purpose of finding matches
25    during an examination conducted under Article 10 between a
26    death master file and the names of some or all of the

 

 

10000SB0009ham002- 35 -LRB100 06347 HLH 27841 a

1    company's insureds or annuitants, finds a match that
2    provides notice that the insured or annuitant has died.
3    (c) The following rules apply under this Section:
4        (1) A death-master-file match under subsection (b)(3)
5    or (4) occurs if the criteria for an exact or partial match
6    are satisfied as provided by either:
7            (A) the Unclaimed Life Insurance Benefits Act or
8        other law of this State other than this Act; or
9            (B) a rule or policy adopted by the Director of the
10        Department of Insurance.
11        (2) The death-master-file match does not constitute
12    proof of death for the purpose of submission to an
13    insurance company of a claim by a beneficiary, annuitant,
14    or owner of the policy or contract for an amount due under
15    an insurance policy or annuity contract.
16        (3) The death-master-file match or validation of the
17    insured's or annuitant's death does not alter the
18    requirements for a beneficiary, annuitant, or owner of the
19    policy or contract to make a claim to receive proceeds
20    under the terms of the policy or contract.
21        (4) An insured or an annuitant is presumed dead if the
22    date of his or her death is indicated by the
23    death-master-file match under either subsection (b)(3) or
24    (b)(4), unless the insurer has competent and substantial
25    evidence that the person is living, including, but not
26    limited to, a contact made by the insurer with the person

 

 

10000SB0009ham002- 36 -LRB100 06347 HLH 27841 a

1    or his or her legal representative.
2    (d) This Act does not affect the determination of the
3extent to which an insurance company before the effective date
4of this Act had knowledge of the death of an insured or
5annuitant or was required to conduct a death-master-file
6comparison to determine whether amounts owed by the company on
7a life or endowment insurance policy or annuity contract were
8presumed abandoned or unclaimed.
 
9    Section 15-212. Deposit account for proceeds of insurance
10policy or annuity contract. If proceeds payable under a life or
11endowment insurance policy or annuity contract are deposited
12into an account with check or draft-writing privileges for the
13beneficiary of the policy or contract and, under a
14supplementary contract not involving annuity benefits other
15than death benefits, the proceeds are retained by the insurance
16company or the financial organization where the account is
17held, the policy or contract includes the assets in the
18account.
 
19    Section 15-213. United States savings bonds.
20    (a) As used in this Section, "United States savings bond"
21means property, tangible or intangible, in the form of a
22savings bond issued by the United States Treasury, whether in
23paper, electronic, or paperless form, along with all proceeds
24thereof in the possession of the administrator.

 

 

10000SB0009ham002- 37 -LRB100 06347 HLH 27841 a

1    (b) Notwithstanding any provision of this Act to the
2contrary, a United States savings bond subject to this Section
3or held or owing in this State by any person is presumed
4abandoned when such bond has remained unclaimed and unredeemed
5for 5 years after its date of final extended maturity.
6    (c) United States savings bonds that are presumed abandoned
7and unclaimed under subsection (b) shall escheat to the State
8of Illinois and all property rights and legal title to and
9ownership of the United States savings bonds, or proceeds from
10the bonds, including all rights, powers, and privileges of
11survivorship of any owner, co-owner, or beneficiary, shall vest
12solely in the State according to the procedure set forth in
13subsections (d) through (f).
14    (d) Within 180 days after a United States savings bond has
15been presumed abandoned, in the absence of a claim having been
16filed with the administrator for the savings bond, the
17administrator shall commence a civil action in the Circuit
18Court of Sangamon County for a determination that the United
19States savings bonds has escheated to the State. The
20administrator may postpone the bringing of the action until
21sufficient United States savings bonds have accumulated in the
22administrator's custody to justify the expense of the
23proceedings.
24    (e) The administrator shall make service by publication in
25the civil action in accordance with Sections 2-206 and 2-207 of
26the Code of Civil Procedure, which shall include the filing

 

 

10000SB0009ham002- 38 -LRB100 06347 HLH 27841 a

1with the Circuit Court of Sangamon County of the affidavit
2required in Section 2-206 of that Code by an employee of the
3administrator with personal knowledge of the efforts made to
4contact the owners of United States savings bonds presumed
5abandoned under this Section. In addition to the diligent
6inquiries made pursuant to Section 2-206 of the Code of Civil
7Procedure, the administrator may also utilize additional
8discretionary means to attempt to provide notice to persons who
9may own a United States savings bond registered to a person
10with a last known address in the State of Illinois subject to a
11civil action pursuant to subsection (d).
12    (f) The owner of a United States savings bond registered to
13a person with a last known address in the State of Illinois
14subject to a civil action pursuant to subsection (d) may file a
15claim for such United States savings bond with either the
16administrator or by filing a claim in the civil action in the
17Circuit Court of Sangamon County in which the savings bond
18registered to that person is at issue prior to the entry of a
19final judgment by the Circuit Court pursuant to this
20subsection, and unless the Circuit Court determines that such
21United States savings bond is not owned by the claimant, then
22such United States savings bond shall no longer be presumed
23abandoned. If no person files a claim or appears at the hearing
24to substantiate a disputed claim or if the court determines
25that a claimant is not entitled to the property claimed by the
26claimant, then the court, if satisfied by evidence that the

 

 

10000SB0009ham002- 39 -LRB100 06347 HLH 27841 a

1administrator has substantially complied with the laws of this
2State, shall enter a judgment that the United States savings
3bonds have escheated to this State, and all property rights and
4legal title to and ownership of such United States savings
5bonds or proceeds from such bonds, including all rights,
6powers, and privileges of survivorship of any owner, co-owner,
7or beneficiary, shall vest in this State.
8    (g) The administrator shall redeem from the Bureau of the
9Fiscal Service of the United States Treasury the United States
10savings bonds escheated to the State and deposit the proceeds
11from the redemption of United States savings bonds into the
12Unclaimed Property Trust Fund.
13    (h) Any person making a claim for the United States savings
14bonds escheated to the State under this subsection, or for the
15proceeds from such bonds, may file a claim with the
16administrator. Upon providing sufficient proof of the validity
17of such person's claim, the administrator may, in his or her
18sole discretion, pay such claim. If payment has been made to
19any claimant, no action thereafter may be maintained by any
20other claimant against the State or any officer thereof for or
21on account of such funds.
 
22
ARTICLE 3. RULES FOR TAKING CUSTODY OF PROPERTY PRESUMED
23
ABANDONED

 
24    Section 15-301. Address of apparent owner to establish

 

 

10000SB0009ham002- 40 -LRB100 06347 HLH 27841 a

1priority. In this Article, the following rules apply:
2        (1) The last-known address of an apparent owner is any
3    description, code, or other indication of the location of
4    the apparent owner which identifies the state, even if the
5    description, code, or indication of location is not
6    sufficient to direct the delivery of first-class United
7    States mail to the apparent owner.
8        (2) If the United States postal zip code associated
9    with the apparent owner is for a post office located in
10    this State, this State is deemed to be the state of the
11    last-known address of the apparent owner unless other
12    records associated with the apparent owner specifically
13    identify the physical address of the apparent owner to be
14    in another state.
15        (3) If the address under paragraph (2) is in another
16    state, the other state is deemed to be the state of the
17    last-known address of the apparent owner.
18        (4) The address of the apparent owner of a life or
19    endowment insurance policy or annuity contract or its
20    proceeds is presumed to be the address of the insured or
21    annuitant if a person other than the insured or annuitant
22    is entitled to the amount owed under the policy or contract
23    and the address of the other person is not known by the
24    insurance company and cannot be determined under Section
25    15-302. The address of the apparent owner of other property
26    where ownership vests in a beneficiary upon the death of

 

 

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1    the owner is presumed to be the address of the now-deceased
2    owner if the address of the beneficiary is not known by the
3    holder and cannot be determined under Section 15-302.
 
4    Section 15-302. Address of apparent owner in this State.
5The administrator may take custody of property that is presumed
6abandoned, whether located in this State, another state, or a
7foreign country if:
8        (1) the last-known address of the apparent owner in the
9    records of the holder is in this State; or
10        (2) the records of the holder do not reflect the
11    identity or last-known address of the apparent owner, but
12    the administrator has determined that the last-known
13    address of the apparent owner is in this State.
 
14    Section 15-303. If records show multiple addresses of
15apparent owner.
16    (a) Except as in subsection (b), if records of a holder
17reflect multiple addresses for an apparent owner and this State
18is the state of the most recently recorded address, this State
19may take custody of property presumed abandoned, whether
20located in this State or another state.
21    (b) If it appears from records of the holder that the most
22recently recorded address of the apparent owner under
23subsection (a) is a temporary address and this State is the
24state of the next most recently recorded address that is not a

 

 

10000SB0009ham002- 42 -LRB100 06347 HLH 27841 a

1temporary address, this State may take custody of the property
2presumed abandoned.
 
3    Section 15-304. Holder domiciled in this State.
4    (a) Except as in subsection (b) or Section 15-302 or
515-303, the administrator may take custody of property presumed
6abandoned, whether located in this State, another state, or a
7foreign country, if the holder is domiciled in this State or is
8this State or a governmental subdivision, agency, or
9instrumentality of this State, and
10        (1) another state or foreign country is not entitled to
11    the property because there is no last-known address of the
12    apparent owner or other person entitled to the property in
13    the records of the holder; or
14        (2) the state or foreign country of the last-known
15    address of the apparent owner or other person entitled to
16    the property does not provide for custodial taking of the
17    property.
18    (b) Property is not subject to custody of the administrator
19under subsection (a) if the property is specifically exempt
20from custodial taking under the law of this State or the state
21or foreign country of the last-known address of the apparent
22owner.
23    (c) If a holder's state of domicile has changed since the
24time property was presumed abandoned, the holder's state of
25domicile under this Section is deemed to be the state where the

 

 

10000SB0009ham002- 43 -LRB100 06347 HLH 27841 a

1holder was domiciled at the time the property was presumed
2abandoned.
 
3    Section 15-305. Custody if transaction took place in this
4State. Except as in Section 15-302, 15-303, or 15-304, the
5administrator may take custody of property presumed abandoned
6whether located in this State or another state if:
7        (1) the transaction out of which the property arose
8    took place in this State;
9        (2) the holder is domiciled in a state that does not
10    provide for the custodial taking of the property, except
11    that if the property is specifically exempt from custodial
12    taking under the law of the state of the holder's domicile,
13    the property is not subject to the custody of the
14    administrator; and
15        (3) the last-known address of the apparent owner or
16    other person entitled to the property is unknown or in a
17    state that does not provide for the custodial taking of the
18    property, except that if the property is specifically
19    exempt from custodial taking under the law of the state of
20    the last-known address, the property is not subject to the
21    custody of the administrator.
 
22    Section 15-306. Traveler's check, money order, or similar
23instrument. The administrator may take custody of sums payable
24on a traveler's check, money order, or similar instrument

 

 

10000SB0009ham002- 44 -LRB100 06347 HLH 27841 a

1presumed abandoned to the extent permissible under 12 U.S.C.
2Sections 2501 through 2503, as amended.
 
3    Section 15-307. Burden of proof to establish
4administrator's right to custody. Subject to Article 4 and
5Section 15-1005, if the administrator asserts a right to
6custody of unclaimed property and there is a dispute concerning
7such property, the administrator has the initial burden to
8prove:
9        (1) the amount of the property;
10        (2) the property is presumed abandoned; and
11        (3) the property is subject to the custody of the
12    administrator.
 
13
ARTICLE 4. REPORT BY HOLDER

 
14    Section 15-401. Report required by holder.
15    (a) A holder of property presumed abandoned and subject to
16the custody of the administrator shall report in a record to
17the administrator concerning the property. A holder shall
18report via the internet in a format approved by the
19administrator, unless the administrator gives a holder
20specific permission to file a paper report.
21    (b) A holder may contract with a third party to make the
22report required under subsection (a).
23    (c) Whether or not a holder contracts with a third party

 

 

10000SB0009ham002- 45 -LRB100 06347 HLH 27841 a

1under subsection (b), the holder is responsible:
2        (1) to the administrator for the complete, accurate,
3    and timely reporting of property presumed abandoned; and
4        (2) for paying or delivering to the administrator
5    property described in the report.
 
6    Section 15-402. Content of report.
7    (a) The report required under Section 15-401 must:
8        (1) be signed by or on behalf of the holder and
9    verified as to its completeness and accuracy;
10        (2) if filed electronically, be in a secure format
11    approved by the administrator which protects confidential
12    information of the apparent owner;
13        (3) describe the property;
14        (4) except for a traveler's check, money order, or
15    similar instrument, contain the name, if known, last-known
16    address, if known, and Social Security number or taxpayer
17    identification number, if known or readily ascertainable,
18    of the apparent owner of property with a value of $5 or
19    more;
20        (5) for an amount held or owing under a life or
21    endowment insurance policy, annuity contract, or other
22    property where ownership vests in a beneficiary upon the
23    death of the owner, contain the name and last-known address
24    of the insured, annuitant, or other apparent owner of the
25    policy or contract and of the beneficiary;

 

 

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1        (6) for property held in or removed from a safe-deposit
2    box, indicate the location of the property, where it may be
3    inspected by the administrator, and any amounts owed to the
4    holder under Section 15-606;
5        (7) contain the commencement date for determining
6    abandonment under Article 2;
7        (8) state that the holder has complied with the notice
8    requirements of Section 15-501;
9        (9) identify property that is a non-freely
10    transferable security and explain why it is a non-freely
11    transferable security; and
12        (10) contain other information the administrator
13    prescribes by rules.
14    (b) A report under Section 15-401 may include in the
15aggregate items valued under $5 each. If the report includes
16items in the aggregate valued under $5 each, the administrator
17may not require the holder to provide the name and address of
18an apparent owner of an item unless the information is
19necessary to verify or process a claim in progress by the
20apparent owner.
21    (c) A report under Section 15-401 may include personal
22information as defined in Section 15-1401(a) about the apparent
23owner or the apparent owner's property.
24    (d) If a holder has changed its name while holding property
25presumed abandoned or is a successor to another person that
26previously held the property for the apparent owner, the holder

 

 

10000SB0009ham002- 47 -LRB100 06347 HLH 27841 a

1must include in the report under Section 15-401 its former name
2or the name of the previous holder, if any, and the known name
3and address of each previous holder of the property.
 
4    Section 15-403. When report to be filed.
5    (a) Except as otherwise provided in subsection (b) and
6subject to subsection (c), the report under Section 15-401 must
7be filed before November 1 of each year and cover the 12 months
8preceding July 1 of that year.
9    (b) Subject to subsection (c), the report under Section
1015-401 to be filed by business associations, utilities, and
11life insurance companies must be filed before May 1 of each
12year for the immediately preceding calendar year.
13    (c) Before the date for filing the report under Section
1415-401, the holder of property presumed abandoned may request
15the administrator to extend the time for filing. The
16administrator may grant an extension. If the extension is
17granted, the holder may pay or make a partial payment of the
18amount the holder estimates ultimately will be due. The payment
19or partial payment terminates accrual of interest on the amount
20paid.
 
21    Section 15-404. Retention of records by holder. A holder
22required to file a report under Section 15-401 shall retain
23records for 10 years after the later of the date the report was
24filed or the last date a timely report was due to be filed,

 

 

10000SB0009ham002- 48 -LRB100 06347 HLH 27841 a

1unless a shorter period is provided by rule of the
2administrator. The holder may satisfy the requirement to retain
3records under this Section through an agent. The records must
4contain:
5        (1) the information required to be included in the
6    report;
7        (2) the date, place, and nature of the circumstances
8    that gave rise to the property right;
9        (3) the amount or value of the property;
10        (4) the last address of the apparent owner, if known to
11    the holder;
12        (5) sufficient records of items which were not reported
13    as unclaimed, to allow examination to determine whether the
14    holder has complied with the Act; and
15        (6) if the holder sells, issues, or provides to others
16    for sale or issue in this State traveler's checks, money
17    orders, or similar instruments, other than third-party
18    bank checks, on which the holder is directly liable, a
19    record of the instruments while they remain outstanding
20    indicating the state and date of issue.
 
21    Section 15-405. Property reportable and payable or
22deliverable absent owner demand. Property is reportable and
23payable or deliverable under this Act even if the owner fails
24to make demand or present an instrument or document otherwise
25required to obtain payment.
 

 

 

10000SB0009ham002- 49 -LRB100 06347 HLH 27841 a

1
ARTICLE 5. NOTICE TO APPARENT OWNER OF PROPERTY PRESUMED
2
ABANDONED

 
3    Section 15-501. Notice to apparent owner by holder.
4    (a) Subject to subsections (b) and (c), the holder of
5property presumed abandoned shall send to the apparent owner
6notice by first-class United States mail that complies with
7Section 15-502 in a format acceptable to the administrator not
8more than one year nor less than 60 days before filing the
9report under Section 15-401 if:
10        (1) the holder has in its records an address for the
11    apparent owner which the holder's records do not disclose
12    to be invalid and is sufficient to direct the delivery of
13    first-class United States mail to the apparent owner; and
14        (2) the value of the property is $50 or more.
15    (b) If an apparent owner has consented to receive
16electronic-mail delivery from the holder, the holder shall send
17the notice described in subsection (a) both by first-class
18United States mail to the apparent owner's last-known mailing
19address and by electronic mail, unless the holder believes that
20the apparent owner's electronic-mail address is invalid.
21    (c) The holder of securities presumed abandoned under
22Sections 15-202, 15-203, or 15-208 shall send to the apparent
23owner notice by certified United States mail that complies with
24Section 15-502 in a format acceptable to the administrator not

 

 

10000SB0009ham002- 50 -LRB100 06347 HLH 27841 a

1less than 60 days before filing the report under Section 15-401
2if:
3        (1) the holder has in its records an address for the
4    apparent owner which the holder's records do not disclose
5    to be invalid and is sufficient to direct the delivery of
6    United States mail to the apparent owner; and
7        (2) the value of the property is $1,000 or more.
8    The administrator may issue rules allowing a holder to
9deduct reasonable costs incurred in sending a notice by
10certified United States mail under this subsection.
11    (d) In addition to other indications of an apparent owner's
12interest in property pursuant to Section 15-210, a signed
13return receipt in response to a notice sent pursuant to this
14Section by certified United States mail shall constitute a
15record communicated by the apparent owner to the holder
16concerning the property or the account in which the property is
17held.
 
18    Section 15-502. Contents of notice by holder.
19    (a) Notice under Section 15-501 must contain a heading that
20reads substantially as follows: "Notice. The State of Illinois
21requires us to notify you that your property may be transferred
22to the custody of the administrator if you do not contact us
23before (insert date that is 30 days after the date of this
24notice)."
25    (b) The notice under Section 15-501 must:

 

 

10000SB0009ham002- 51 -LRB100 06347 HLH 27841 a

1        (1) identify the nature and, except for property that
2    does not have a fixed value, the value of the property that
3    is the subject of the notice;
4        (2) state that the property will be turned over to the
5    State Treasurer;
6        (3) state that after the property is turned over to the
7    State Treasurer an apparent owner that seeks return of the
8    property may file a claim with the administrator;
9        (4) state that property that is not legal tender of the
10    United States may be sold by the State Treasurer;
11        (5) provide instructions that the apparent owner must
12    follow to prevent the holder from reporting and paying or
13    delivering the property to the State Treasurer; and
14        (6) provide the name, address, and e-mail address or
15    telephone number to contact the holder.
16    (c) The holder may supplement the required information by
17listing a website where apparent owners may obtain more
18information about how to prevent the holder from reporting and
19paying or delivering the property to the State Treasurer.
 
20    Section 15-503. Notice by administrator.
21    (a) The administrator shall give notice to an apparent
22owner that property presumed abandoned and appears to be owned
23by the apparent owner is held by the administrator under this
24Act.
25    (b) In providing notice under subsection (a), the

 

 

10000SB0009ham002- 52 -LRB100 06347 HLH 27841 a

1administrator shall:
2        (1) except as otherwise provided in paragraph (2), send
3    written notice by first-class United States mail to each
4    apparent owner of property valued at $100 or more held by
5    the administrator, unless the administrator determines
6    that a mailing by first-class United States mail would not
7    be received by the apparent owner, and, in the case of a
8    security held in an account for which the apparent owner
9    had consented to receiving electronic mail from the holder,
10    send notice by electronic mail if the electronic-mail
11    address of the apparent owner is known to the administrator
12    instead of by first-class United States mail; or
13        (2) send the notice to the apparent owner's
14    electronic-mail address if the administrator does not have
15    a valid United States mail address for an apparent owner,
16    but has an electronic-mail address that the administrator
17    does not know to be invalid.
18    (c) In addition to the notice under subsection (b), the
19administrator shall:
20        (1) publish every 6 months in at least one English
21    language newspaper of general circulation in each county in
22    this State notice of property held by the administrator
23    which must include:
24            (A) the total value of property received by the
25        administrator during the preceding 6-month period,
26        taken from the reports under Section 15-401;

 

 

10000SB0009ham002- 53 -LRB100 06347 HLH 27841 a

1            (B) the total value of claims paid by the
2        administrator during the preceding 6-month period;
3            (C) the Internet web address of the unclaimed
4        property website maintained by the administrator;
5            (D) a telephone number and electronic-mail address
6        to contact the administrator to inquire about or claim
7        property; and
8            (E) a statement that a person may access the
9        Internet by a computer to search for unclaimed property
10        and a computer may be available as a service to the
11        public at a local public library.
12        (2) The administrator shall maintain a website
13    accessible by the public and electronically searchable
14    which contains the names reported to the administrator of
15    apparent owners for whom property is being held by the
16    administrator. The administrator need not list property on
17    such website when: no owner name was reported, a claim has
18    been initiated or is pending for the property, the
19    administrator has made direct contact with the apparent
20    owner of the property, and in other instances where the
21    administrator reasonably believes exclusion of the
22    property is in the best interests of both the State and the
23    owner of the property.
24    (d) The website or database maintained under subsection
25(c)(2) must include instructions for filing with the
26administrator a claim to property and a printable claim form

 

 

10000SB0009ham002- 54 -LRB100 06347 HLH 27841 a

1with instructions for its use.
2    (e) Tax return identification of apparent owners of
3abandoned property.
4        (1) At least annually the administrator shall notify
5    the Department of Revenue of the names of persons appearing
6    to be owners of abandoned property under this Section. The
7    administrator shall also provide to the Department of
8    Revenue the social security numbers of the persons, if
9    available.
10        (2) The Department of Revenue shall notify the
11    administrator if any person under subsection (e)(1) has
12    filed an Illinois income tax return and shall provide the
13    administrator with the last known address of the person as
14    it appears in Department of Revenue records, except as
15    prohibited by federal law. The Department of Revenue may
16    also provide additional addresses for the same taxpayer
17    from the records of the Department, except as prohibited by
18    federal law.
19        (3) In order to facilitate the return of property under
20    this subsection, the administrator and the Department of
21    Revenue may enter into an interagency agreement concerning
22    protection of confidential information, data match rules,
23    and other issues.
24        (4) The administrator may deliver, as provided under
25    Section 15-904 of this Act, property or pay the amount
26    owing to a person matched under this Section without the

 

 

10000SB0009ham002- 55 -LRB100 06347 HLH 27841 a

1    person filing a claim under Section 15-903 of this Act if
2    the following conditions are met:
3            (A) the value of the property that is owed the
4        person is $2,000 or less;
5            (B) the property is not either tangible property or
6        securities;
7            (C) the last known address for the person according
8        to the Department of Revenue records is less than 12
9        months old; and
10            (D) the administrator has evidence sufficient to
11        establish that the person who appears in Department of
12        Revenue records is the owner of the property and the
13        owner currently resides at the last known address from
14        the Department of Revenue.
15        (5) If the value of the property that is owed the
16    person is greater than $2,000, or is tangible property or
17    securities the administrator shall provide notice to the
18    person, informing the person that he or she is the owner of
19    abandoned property held by the State and may file a claim
20    with the administrator for return of the property.
21    (f) The administrator may use additional databases to
22verify the identity of the person and that the person currently
23resides at the last known address. The administrator may
24utilize publicly and commercially available databases to find
25and update or add information for apparent owners of property
26held by the administrator.

 

 

10000SB0009ham002- 56 -LRB100 06347 HLH 27841 a

1    (g) In addition to giving notice under subsection (b),
2publishing the information under subsection (c)(1) and
3maintaining the website or database under subsection (c)(2),
4the administrator may use other printed publication,
5telecommunication, the Internet, or other media to inform the
6public of the existence of unclaimed property held by the
7administrator.
 
8    Section 15-504. Cooperation among State officers and
9agencies to locate apparent owner. Unless prohibited by law of
10this State other than this Act, on request of the
11administrator, each officer, agency, board, commission,
12division, and department of this State, any body politic and
13corporate created by this State for a public purpose, and each
14political subdivision of this State shall make its books and
15records available to the administrator and cooperate with the
16administrator to determine the current address of an apparent
17owner of property held by the administrator under this Act or
18to otherwise assist the administrator in the administration of
19this Act. The administrator may also enter into data sharing
20agreements to enable such other governmental agencies to
21provide an additional notice to apparent owners of property
22held by the administrator.
 
23
ARTICLE 6. TAKING CUSTODY OF PROPERTY BY ADMINISTRATOR

 

 

 

10000SB0009ham002- 57 -LRB100 06347 HLH 27841 a

1    Section 15-601. Definition of good faith. In this Article,
2payment or delivery of property is made in good faith if a
3holder:
4        (1) had a reasonable basis for believing, based on the
5    facts then known, that the property was required or
6    permitted to be paid or delivered to the administrator
7    under this Act; or
8        (2) made payment or delivery:
9            (A) in response to a demand by the administrator or
10        administrator's agent; or
11            (B) under a guidance or ruling issued by the
12        administrator which the holder reasonably believed
13        required or permitted the property to be paid or
14        delivered.
 
15    Section 15-602. Dormancy charge.
16    (a) A holder may deduct a dormancy charge from property
17required to be paid or delivered to the administrator if:
18        (1) a valid contract between the holder and the
19    apparent owner authorizes imposition of the charge for the
20    apparent owner's failure to claim the property within a
21    specified time; and
22        (2) the holder regularly imposes the charge and
23    regularly does not reverse or otherwise cancel the charge.
24    (b) The amount of the deduction under subsection (a) is
25limited to an amount that is not unconscionable considering all

 

 

10000SB0009ham002- 58 -LRB100 06347 HLH 27841 a

1relevant factors, including the marginal transactional costs
2incurred by the holder in maintaining the apparent owner's
3property and any services received by the apparent owner.
4    (c) A holder may not deduct an escheat fee or other charges
5imposed solely by virtue of property being reported as presumed
6abandoned.
 
7    Section 15-603. Payment or delivery of property to
8administrator.
9    (a) Except as otherwise provided in this Section, on filing
10a report under Section 15-401, the holder shall pay or deliver
11to the administrator the property described in the report.
12    (b) If property in a report under Section 15-401 is an
13automatically renewable deposit and a penalty or forfeiture in
14the payment of interest would result from paying the deposit to
15the administrator at the time of the report, the date for
16payment of the property to the administrator is extended until
17a penalty or forfeiture no longer would result from payment, if
18the holder informs the administrator of the extended date.
19    (c) Tangible property in a safe-deposit box may not be
20delivered to the administrator until a mutually agreed upon
21date that is no sooner than 60 days after filing the report
22under Section 15-401.
23    (d) If property reported to the administrator under Section
2415-401 is a security, the administrator may:
25        (1) make an endorsement, instruction, or entitlement

 

 

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1    order on behalf of the apparent owner to invoke the duty of
2    the issuer, its transfer agent, or the securities
3    intermediary to transfer the security; or
4        (2) dispose of the security under Section 15-702.
5    (e) If the holder of property reported to the administrator
6under Section 15-401 is the issuer of a certificated security,
7the administrator may obtain a replacement certificate in
8physical or book-entry form under Section 8-405 of the Uniform
9Commercial Code. An indemnity bond is not required.
10    (f) The administrator shall establish procedures for the
11registration, issuance, method of delivery, transfer, and
12maintenance of securities delivered to the administrator by a
13holder.
14    (g) An issuer, holder, and transfer agent or other person
15acting in good faith under this Section under instructions of
16and on behalf of the issuer or holder is not liable to the
17apparent owner for a claim arising with respect to property
18after the property has been delivered to the administrator.
19    (h) A holder is not required to deliver to the
20administrator a security identified by the holder as a
21non-freely transferable security in a report filed under
22Section 15-401. If the administrator or holder determines that
23a security is no longer a non-freely transferable security, the
24holder shall report and deliver the security on the next
25regular date prescribed for delivery of securities under this
26Act. The holder shall make a determination annually whether a

 

 

10000SB0009ham002- 60 -LRB100 06347 HLH 27841 a

1security identified in a report filed under Section 15-401 as a
2non-freely transferable security is no longer a non-freely
3transferable security.
 
4    Section 15-604. Effect of payment or delivery of property
5to administrator.
6    (a) On payment or delivery of property to the administrator
7under this Act, the administrator as agent for the State
8assumes custody and responsibility for safekeeping the
9property. A holder that pays or delivers property to the
10administrator in good faith and substantially complies with
11Sections 15-501 and 15-502 is relieved of all liability which
12thereafter may arise or be made in respect to the property to
13the extent of the value of the property so paid or delivered.
14    (b) If legal proceedings are instituted by any other state
15or states in any state or federal court with respect to
16unclaimed funds or abandoned property previously paid or
17delivered to the administrator, the holder shall give written
18notification to the administrator and the Attorney General of
19this State of such proceedings within 10 days after service of
20process, or in the alternative at least 10 days before the
21return date or date on which an answer or similar pleading is
22due (or any extension thereof secured by the holder). The
23Attorney General may take such action as he or she deems
24necessary or expedient to protect the interests of this State.
25The Attorney General by written notice prior to the return date

 

 

10000SB0009ham002- 61 -LRB100 06347 HLH 27841 a

1or date on which an answer or similar pleading is due (or any
2extension thereof secured by the holder), but in any event in
3reasonably sufficient time for the holder to comply with the
4directions received, shall either direct the holder actively to
5defend in such proceedings or that no defense need be entered
6in such proceedings. If a direction is received from the
7Attorney General that the holder need not make a defense, such
8shall not preclude the holder from entering a defense in its
9own name if it should so choose. However, any defense made by
10the holder on its own initiative shall not entitle the holder
11to reimbursement for legal fees, costs and other expenses as is
12hereinafter provided in respect to defenses made pursuant to
13the directions of the Attorney General. If, after the holder
14has actively defended in such proceedings pursuant to a
15direction of the Attorney General, or has been notified in
16writing by the Attorney General that no defense need be made
17with respect to such funds, a judgment is entered against the
18holder for any amount paid to the administrator under this Act,
19the administrator shall, upon being furnished with proof of
20payment in satisfaction of such judgment, reimburse the holder
21the amount so paid. The administrator shall also reimburse the
22holder for any legal fees, costs and other directly related
23expenses incurred in legal proceedings undertaken pursuant to
24the direction of the Attorney General.
 
25    Section 15-605. Recovery of property by holder from

 

 

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1administrator.
2    (a) A holder that under this Act pays money to the
3administrator may file a claim for reimbursement from the
4administrator of the amount paid if the holder:
5        (1) paid the money in error; or
6        (2) after paying the money to the administrator, paid
7    money to a person the holder reasonably believed entitled
8    to the money.
9    (b) If a claim for reimbursement under subsection (a) is
10made for a payment made on a negotiable instrument, including a
11traveler's check, money order, or similar instrument, the
12holder must submit proof that the instrument was presented and
13payment was made to a person the holder reasonably believed
14entitled to payment. The holder may claim reimbursement even if
15the payment was made to a person whose claim was made after
16expiration of a period of limitation on the owner's right to
17receive or recover property, whether specified by contract,
18statute, or court order.
19    (c) If a holder is reimbursed by the administrator under
20subsection (a)(2), the holder may also recover from the
21administrator income or gain under Section 15-607 that would
22have been paid to the owner if the money had been claimed from
23the administrator by the owner to the extent the income or gain
24was paid by the holder to the owner.
25    (d) A holder that under this Act delivers property other
26than money to the administrator may file a claim for return of

 

 

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1the property from the administrator if:
2        (1) the holder delivered the property in error; or
3        (2) the apparent owner has claimed the property from
4    the holder.
5    (e) If a claim for return of property under subsection (d)
6is made, the holder shall include with the claim evidence
7sufficient to establish that the apparent owner has claimed the
8property from the holder or that the property was delivered by
9the holder to the administrator in error.
10    (f) The administrator may determine that an affidavit
11submitted by a holder is evidence sufficient to establish that
12the holder is entitled to reimbursement or to recover property
13under this Section.
14    (g) A holder is not required to pay a fee or other charge
15for reimbursement or return of property under this Section.
16    (h) Unless extended for reasonable cause, not later than 90
17days after a holder's claim is complete the administrator shall
18allow or deny the claim and give the holder notice in a record
19of the decision. If a holder fails to provide all the
20information and documentation requested by the administrator
21as necessary to establish legal ownership of the property and
22the claim is inactive for at least 90 days, then the
23administrator may close the claim without issuing a final
24decision. However, if the claimant makes a request in writing
25for a final decision prior to the administrator's closing of
26the claim, the administrator shall issue a final decision. A

 

 

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1claim will be considered complete when a holder has provided
2all the information and documentation requested by the
3administrator as necessary to establish legal ownership and
4such information or documentation is entered into the
5administrator's unclaimed property system.
6    (i) The claimant may initiate a proceeding under the
7Illinois Administrative Procedure Act for review of the
8administrator's decision or the deemed denial under subsection
9(h) not later than:
10        (1) 30 days following receipt of the notice of the
11    administrator's decision; or
12        (2) 120 days following the filing of a claim under
13    subsection (a) or (d) in the case of a deemed denial under
14    subsection (h).
 
15    Section 15-606. Property removed from safe-deposit box.
16Property removed from a safe-deposit box and delivered under
17this Act to the administrator under this Act is subject to the
18holder's right to reimbursement for the cost of opening the box
19and a lien or contract providing reimbursement to the holder
20for unpaid rent charges for the box. Upon application by the
21holder, after the sale of the property, and after deducting the
22expense incurred by the administrator in selling the property,
23the administrator shall reimburse the holder from the proceeds
24remaining. The administrator shall promulgate administrative
25rules concerning the reimbursement process under this Section.
 

 

 

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1    Section 15-607. Crediting income or gain to owner's
2account. If property other than money is delivered to the
3administrator, the owner is entitled to receive from the
4administrator income or gain realized or accrued on the
5property before the property is sold. Interest on money is not
6payable to an owner for periods where the property is in the
7possession of the administrator.
 
8    Section 15-608. Administrator's options as to custody.
9    (a) The administrator may decline to take custody of
10property reported under Section 15-401 if the administrator
11determines that:
12        (1) the property has a value less than the estimated
13    expenses of notice and sale of the property; or
14        (2) taking custody of the property would be unlawful.
15    (b) A holder may pay or deliver property to the
16administrator before the property is presumed abandoned under
17this Act if the holder:
18        (1) provides the apparent owner of the property any
19    notice required by Section 15-501 and provides the
20    administrator evidence of the holder's compliance with
21    this paragraph;
22        (2) includes with the payment or delivery a report
23    regarding the property conforming to Section 15-402; and
24        (3) first obtains the administrator's consent in a

 

 

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1    record to accept payment or delivery.
2    (c) A holder's request for the administrator's consent
3under subsection (b)(3) must be in a record. If the
4administrator fails to respond to the request not later than 30
5days after receipt of the request, the administrator is deemed
6to consent to the payment or delivery of the property and the
7payment or delivery is considered to have been made in good
8faith.
9    (d) On payment or delivery of property under subsection
10(b), the property is presumed abandoned.
 
11    Section 15-609. Disposition of property having no
12substantial value; immunity from liability.
13    (a) If the administrator takes custody of property
14delivered under this Act and later determines that the property
15has no substantial commercial value or that the cost of
16disposing of the property will exceed the value of the
17property, the administrator may return the property to the
18holder or destroy or otherwise dispose of the property.
19    (b) An action or proceeding may not be commenced against
20the State, an agency of the State, the administrator, another
21officer, employee, or agent of the State, or a holder for or
22because of an act of the administrator under this Section,
23except for intentional misconduct or malfeasance.
 
24    Section 15-610. Periods of limitation and repose.

 

 

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1    (a) Expiration, before, on, or after the effective date of
2this Act, of a period of limitation on an owner's right to
3receive or recover property, whether specified by contract,
4statute, or court order, does not prevent the property from
5being presumed abandoned or affect the duty of a holder under
6this Act to file a report or pay or deliver property to the
7administrator.
8    (b) An action or proceeding may not be maintained by the
9administrator to enforce this Act in regard to the reporting,
10delivery, or payment of property more than 10 years after the
11holder specifically identified the property in a report filed
12with the administrator or gave express notice to the
13administrator of a dispute regarding the property. In the
14absence of such a report or other express notice, the period of
15limitation is tolled. The period of limitation is also tolled
16by the filing of a report that is fraudulent.
 
17
ARTICLE 7. SALE OF PROPERTY BY ADMINISTRATOR

 
18    Section 15-701. Public sale of property.
19    (a) Subject to Section 15-702, not earlier than 3 years
20after receipt of property presumed abandoned, the
21administrator may sell the property.
22    (b) Before selling property under subsection (a), the
23administrator shall give notice to the public of:
24        (1) the date of the sale; and

 

 

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1        (2) a reasonable description of the property.
2    (c) A sale under subsection (a) must be to the highest
3bidder:
4        (1) at public sale at a location in this State which
5    the administrator determines to be the most favorable
6    market for the property;
7        (2) on the Internet; or
8        (3) on another forum the administrator determines is
9    likely to yield the highest net proceeds of sale.
10    (d) The administrator may decline the highest bid at a sale
11under this Section and reoffer the property for sale if the
12administrator determines the highest bid is insufficient.
13    (e) If a sale held under this Section is to be conducted
14other than on the Internet, the administrator must cause to be
15published at least one notice of the sale, at least 2 weeks but
16not more than 5 weeks before the sale, in a newspaper of
17general circulation in the county in which the property is to
18be sold. For purposes of this subsection, the reasonable
19description of property to be sold required by subsection (b)
20above may be satisfied by posting such information on the
21administrator's website so long as the newspaper notice
22includes the website address where such information is posted.
23    (f) Property eligible for sale will not be sold when a
24claim has been filed with the administrator by an apparent
25owner, heir, or agent. However, upon approval of a claim, the
26owner, heir or, agent may request the administrator to dispose

 

 

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1of the property by sale and remit the net proceeds to the
2owner, heir, or agent. Upon disapproval of the claim, the
3administrator may dispose of the property by sale.
 
4    Section 15-702. Disposal of securities.
5    (a) The administrator may not sell or otherwise liquidate a
6security until 3 years after the administrator receives the
7security and gives the apparent owner notice under Section
815-503 that the administrator holds the security unless the
9administrator determines it would be in the best interests of
10the owner for the sale to occur prior to the expiration of the
113-year period after the administrator receives the security and
12gives the apparent owner notice under Section 15-503. The
13administrator shall by administrative rule provide examples of
14situations where it would be in the best interests of the owner
15for the sale to occur prior to the expiration of the 3-year
16period.
17    (b) The administrator may not sell a security listed on an
18established stock exchange for less than the price prevailing
19on the exchange at the time of sale. The administrator may sell
20a security not listed on an established exchange by any
21commercially reasonable method.
 
22    Section 15-703. Recovery of securities or value by owner.
23    (a) If the administrator sells a security before the
24expiration of 3 years after delivery of the security to the

 

 

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1administrator, an apparent owner that files a valid claim under
2this Act of ownership of the security before the 3-year period
3expires is entitled, at the option of the owner, to receive:
4        (1) replacement of the security;
5        (2) the market value of the security at the time the
6    claim is filed, plus dividends, interest, and other
7    increments on the security up to the time the claim is
8    paid; or
9        (3) the net proceeds of the sale of the security, plus
10    dividends, interest, and other increments on the security
11    up to the time the security was sold.
12    (b) Replacement of the security or calculation of market
13value under subsection (a) must take into account a stock
14split, reverse stock split, stock dividend, or similar
15corporate action.
16    (c) A person that makes a valid claim under this Act of
17ownership of a security after expiration of 3 years after
18delivery of the security to the administrator is entitled to
19receive:
20        (1) the security the holder delivered to the
21    administrator, if it is in the custody of the
22    administrator, plus dividends, interest, and other
23    increments on the security up to the time the administrator
24    delivers the security to the person; or
25        (2) the net proceeds of the sale of the security, plus
26    dividends, interest, and other increments on the security

 

 

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1    up to the time the security was sold.
2    (d) Securities eligible for sale will not be sold when a
3claim has been filed with the administrator by an apparent
4owner, heir, or agent. However, upon approval of a claim, the
5owner, heir or, agent may request the administrator to dispose
6of the securities by sale and remit the net proceeds to the
7owner, heir, or agent. Upon disapproval of the claim, the
8administrator may dispose of the securities by sale.
 
9    Section 15-704. Purchaser owns property after sale. A
10purchaser of property at a sale conducted by the administrator
11under this Act takes the property free of all claims of the
12owner, a previous holder, or a person claiming through the
13owner or holder. The administrator shall execute documents
14necessary to complete the transfer of ownership to the
15purchaser.
 
16    Section 15-705. Exceptions to the sale of tangible
17property. The administrator shall dispose of tangible property
18identified by this Section in accordance with this Section.
19    (a) Military medals or decorations. The administrator may
20not sell a medal or decoration awarded for military service in
21the armed forces of the United States. Instead, the
22administrator, with the consent of the respective organization
23under paragraph (1), agency under paragraph (2), or entity
24under paragraph (3), may deliver a medal or decoration to be

 

 

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1held in custody for the owner, to:
2        (1) a military veterans organization qualified under
3    Section 501(c)(19) of the Internal Revenue Code;
4        (2) the agency that awarded the medal or decoration; or
5        (3) a governmental entity.
6    After delivery, the administrator is not responsible for
7the safekeeping of the medal or decoration.
8    (b) Property with historical value. Property that the
9administrator reasonably believes may have historical value
10may be, at his or her discretion, loaned to an accredited
11museum in the United States where it will be kept until such
12time as the administrator orders it to be returned to his or
13her custody.
14    (c) Human remains. If human remains are delivered to the
15administrator under this Act, the administrator shall deliver
16those human remains to the coroner of the county in which the
17human remains were abandoned for disposition under Section
183-3034 of the Counties Code. The only human remains that may be
19delivered to the administrator under this Act and that the
20administrator may receive are those that are reported and
21delivered as contents of a safe deposit box.
22    (d) Evidence in a criminal investigation. Property that may
23have been used in the commission of a crime or that may assist
24in the investigation of a crime, as determined after consulting
25with the Department of State Police, shall be delivered to the
26Department of State Police or other appropriate law enforcement

 

 

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1authority to allow law enforcement to determine whether a
2criminal investigation should take place. Any such property
3delivered to a law enforcement authority shall be held in
4accordance with existing statutes and rules related to the
5gathering, retention, and release of evidence.
6    (e) Firearms.
7        (1) The administrator, in cooperation with the
8    Department of State Police, shall develop a procedure to
9    determine whether a firearm delivered to the administrator
10    under this Act has been stolen or used in the commission of
11    a crime. The Department of State Police shall determine the
12    appropriate disposition of a firearm that has been stolen
13    or used in the commission of a crime. The administrator
14    shall attempt to return a firearm that has not been stolen
15    or used in the commission of a crime to the rightful owner
16    if the Department of State Police determines that the owner
17    may lawfully possess the firearm.
18        (2) If the administrator is unable to return a firearm
19    to its owner, the administrator shall transfer custody of
20    the firearm to the Department of State Police. Legal title
21    to a firearm transferred to the Department of State Police
22    under this subsection (e) is vested in the Department of
23    State Police by operation of law if:
24            (i) the administrator cannot locate the owner of
25        the firearm;
26            (ii) the owner of the firearm may not lawfully

 

 

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1        possess the firearm;
2            (iii) the apparent owner does not respond to notice
3        published under Section 15-503 of this Act; or
4            (iv) the apparent owner responds to notice
5        published under Section 15-502 and states that he or
6        she no longer claims an interest in the firearm.
7        (3) With respect to a firearm whose title is
8    transferred to the Department of State Police under this
9    subsection (e), the Department of State Police may:
10                (i) retain the firearm for use by the crime
11            laboratory system, for training purposes, or for
12            any other application as deemed appropriate by the
13            Department;
14                (ii) transfer the firearm to the Illinois
15            State Museum if the firearm has historical value;
16            or
17                (iii) destroy the firearm if it is not retained
18            pursuant to subparagraph (i) or transferred
19            pursuant to subparagraph (ii).
20    As used in this subsection, "firearm" has the meaning
21provided in the Firearm Owners Identification Card Act.
 
22
ARTICLE 8. ADMINISTRATION OF PROPERTY

 
23    Section 15-801. Deposit of funds by administrator.
24    (a) Except as otherwise provided in this Section, the

 

 

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1administrator shall deposit in the Unclaimed Property Trust
2Fund all funds received under this Act, including proceeds from
3the sale of property under Article 7. The administrator may
4deposit any amount in the Unclaimed Property Trust Fund into
5the State Pensions Fund during the fiscal year at his or her
6discretion; however, he or she shall, on April 15 and October
715 of each year, deposit any amount in the Unclaimed Property
8Trust Fund exceeding $2,500,000 into the State Pensions Fund.
9If on either April 15 or October 15, the administrator
10determines that a balance of $2,500,000 is insufficient for the
11prompt payment of unclaimed property claims authorized under
12this Act, the administrator may retain more than $2,500,000 in
13the Unclaimed Property Trust Fund in order to ensure the prompt
14payment of claims. Beginning in State fiscal year 2018, all
15amounts that are deposited into the State Pensions Fund from
16the Unclaimed Property Trust Fund shall be apportioned to the
17designated retirement systems as provided in subsection (c-6)
18of Section 8.12 of the State Finance Act to reduce their
19actuarial reserve deficiencies.
20    (b) The administrator shall make prompt payment of claims
21he or she duly allows as provided for in this Act from the
22Unclaimed Property Trust Fund. This shall constitute an
23irrevocable and continuing appropriation of all amounts in the
24Unclaimed Property Trust Fund necessary to make prompt payment
25of claims duly allowed by the administrator pursuant to this
26Act.
 

 

 

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1    Section 15-802. Administrator to retain records of
2property. The administrator shall:
3        (1) record and retain the name and last-known address
4    of each person shown on a report filed under Section 15-401
5    to be the apparent owner of property delivered to the
6    administrator;
7        (2) record and retain the name and last-known address
8    of each insured or annuitant and beneficiary shown on the
9    report;
10        (3) for each policy of insurance or annuity contract
11    listed in the report of an insurance company, record and
12    retain the policy or account number, the name of the
13    company, and the amount due or paid shown on the report;
14        (4) for each apparent owner listed in the report,
15    record and retain the name of the holder that filed the
16    report and the amount due or paid; and
17        (5) maintain records sufficient to indicate the filing
18    of reports required under Section 15-401 and the payment or
19    delivery of property to the administrator under Section
20    15-603.
21    Records created or maintained pursuant to this Section are
22subject to the requirements of the Illinois State Records Act.
 
23    Section 15-803. Expenses and service charges of
24administrator. Before making a deposit of funds received under

 

 

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1this Act to the Unclaimed Property Trust Fund, the
2administrator may deduct expenses incurred in examining
3records of or collecting property from a putative holder or
4holder as provided in the State Officers and Employees Money
5Disposition Act.
 
6    Section 15-804. Administrator holds property as custodian
7for owner. Upon the payment or delivery of abandoned property
8to the administrator, the State shall assume custody and shall
9be responsible for the safekeeping thereof.
 
10
ARTICLE 9. CLAIM TO RECOVER PROPERTY FROM ADMINISTRATOR

 
11    Section 15-901. Claim of another state to recover property.
12    (a) If the administrator knows that property held by the
13administrator under this Act is subject to a superior claim of
14another state, the administrator shall:
15        (1) report and pay or deliver the property to the other
16    state; or
17        (2) return the property to the holder so that the
18    holder may pay or deliver the property to the other state.
19    (b) The administrator is not required to enter into an
20agreement to transfer property to the other state under
21subsection (a).
 
22    Section 15-902. Property subject to recovery by another

 

 

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1state.
2    (a) Property held under this Act by the administrator is
3subject to the right of another state to take custody of the
4property if:
5        (1) the property was paid or delivered to the
6    administrator because the records of the holder did not
7    reflect a last-known address in the other state of the
8    apparent owner and:
9            (A) the other state establishes that the
10        last-known address of the apparent owner or other
11        person entitled to the property was in the other state;
12        or
13            (B) under the law of the other state, the property
14        has become subject to a claim by the other state of
15        abandonment;
16        (2) the records of the holder did not accurately
17    identify the owner of the property, the last-known address
18    of the owner was in another state, and, under the law of
19    the other state, the property has become subject to a claim
20    by the other state of abandonment;
21        (3) the property was subject to the custody of the
22    administrator of this State under Section 15-305 and, under
23    the law of the state of domicile of the holder, the
24    property has become subject to a claim by the state of
25    domicile of the holder of abandonment; or
26        (4) the property:

 

 

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1            (A) is a sum payable on a traveler's check, money
2        order, or similar instrument that was purchased in the
3        other state and delivered to the administrator under
4        Section 15-306; and
5            (B) under the law of the other state, has become
6        subject to a claim by the other state of abandonment.
7    (b) A claim by another state to recover property under this
8Section must be presented in a form prescribed by the
9administrator, unless the administrator waives presentation of
10the form.
11    (c) The administrator shall decide a claim under this
12Section not later than 90 days after it is presented. If the
13administrator determines that the other state is entitled under
14subsection (a) to custody of the property, the administrator
15shall allow the claim and pay or deliver the property to the
16other state.
17    (d) The administrator may require another state, before
18recovering property under this Section, to agree to indemnify
19this State and its agents, officers and employees against any
20liability on a claim to the property.
 
21    Section 15-903. Claim for property by person claiming to be
22owner.
23    (a) A person claiming to be the owner of property held
24under this Act by the administrator or to the proceeds from the
25sale thereof may file a claim for the property on a form

 

 

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1prescribed by the administrator. The claimant must verify the
2claim as to its completeness and accuracy.
3    (b) The administrator may waive the requirement in
4subsection (a) and may pay or deliver property directly to a
5person if:
6        (1) the person receiving the property or payment is
7    shown to be the apparent owner included on a report filed
8    under Section 15-401;
9        (2) the administrator reasonably believes the person
10    is entitled to receive the property or payment; and
11        (3) the property has a value of less than $500.
12    (c) The administrator may change the maximum value in
13subsection (b) by administrative rule.
 
14    Section 15-904. When administrator must honor claim for
15property.
16    (a) The administrator shall pay or deliver property to a
17claimant under subsection (a) of Section 15-903 if the
18administrator receives evidence sufficient to establish to the
19satisfaction of the administrator that the claimant is the
20owner of the property.
21    (b) A claim will be considered complete when a claimant has
22provided all the information and documentation requested by the
23administrator as necessary to establish legal ownership and
24such information or documentation is entered into the
25administrator's unclaimed property system. Unless extended for

 

 

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1reasonable cause, not later than 90 days after a claim is
2complete the administrator shall allow or deny the claim and
3give the claimant notice in a record of the decision. If a
4claimant fails to provide all the information and documentation
5requested by the administrator as necessary to establish legal
6ownership of the property and the claim is inactive for at
7least 90 days, then the administrator may close the claim
8without issuing a final decision. However, if the claimant
9makes a request in writing for a final decision prior to the
10administrator's closing of the claim, the administrator shall
11issue a final decision.
12    (c) If the claim is denied or there is insufficient
13evidence to allow the claim under subsection (b):
14        (1) the administrator shall inform the claimant of the
15    reason for the denial and may specify what additional
16    evidence, if any, is required for the claim to be allowed;
17        (2) the claimant may file an amended claim with the
18    administrator or commence an action under Section 15-906;
19    and
20        (3) the administrator shall consider an amended claim
21    filed under paragraph (2) as an initial claim.
 
22    Section 15-905. Allowance of claim for property.
23    (a) The administrator shall pay or deliver to the owner the
24property or pay to the owner the net proceeds of a sale of the
25property, together with income or gain to which the owner is

 

 

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1entitled under Section 15-607. On request of the owner, the
2administrator may sell or liquidate property and pay the net
3proceeds to the owner, even if the property had been held by
4the administrator for less than 3 years or the administrator
5has not complied with the notice requirements under Section
615-503.
7    (b) Property held under this Act by the administrator is
8subject to offset under Section 10.05 of the State Comptroller
9Act.
 
10    Section 15-906. Action by person whose claim is denied. Not
11later than one year after filing a claim under subsection (a)
12of Section 15-903, the claimant may commence a contested case
13pursuant to the Illinois Administrative Procedure Act to
14establish a claim by the preponderance of the evidence after
15either receiving notice under subsection (b) of Section 15-903
16or the claim is deemed denied under subsection (d) of Section
1715-903.
 
18
ARTICLE 10. VERIFIED REPORT OF PROPERTY; EXAMINATION OF RECORDS

 
19    Section 15-1001. Verified report of property. If a person
20does not file a report required by Section 15-401 or the
21administrator believes that a person may have filed an
22inaccurate, incomplete, or false report, the administrator may
23require the person to file a verified report in a form

 

 

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1prescribed by the administrator. The verified report must:
2        (1) state whether the person is holding property
3    reportable under this Act;
4        (2) describe property not previously reported or about
5    which the administrator has inquired;
6        (3) specifically identify property described under
7    paragraph (2) about which there is a dispute whether it is
8    reportable under this Act; and
9        (4) state the amount or value of the property.
 
10    Section 15-1002. Examination of records to determine
11compliance. The administrator, at reasonable times and on
12reasonable notice, may:
13        (1) examine the records of any person to determine
14    whether the person has complied with this Act even if the
15    person believes it is not in possession of any property
16    that must be reported, paid, or delivered under this Act;
17        (2) issue an administrative subpoena requiring the
18    person or agent of the person to make records available for
19    examination; and
20        (3) bring an action seeking judicial enforcement of the
21    subpoena.
 
22    Section 15-1002.1. Examination of State-regulated
23financial institutions.
24    (a) Notwithstanding Section 15-1002 of this Act, for any

 

 

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1financial organization for which the Department of Financial
2and Professional Regulation is the primary prudential
3regulator, the administrator shall not examine such financial
4institution unless the administrator has consulted with the
5Secretary of Financial and Professional Regulation and the
6Department of Financial and Professional Regulation has not
7examined such financial organization for compliance with this
8Act within the past 5 years. The Secretary of Financial and
9Professional Regulation may waive in writing the provisions of
10this subsection (a) in order to permit the administrator to
11examine a financial organization or group of financial
12organizations for compliance with this Act.
13    (b) Nothing in this Section shall be construed to prohibit
14the administrator from examining a financial organization for
15which the Department of Financial and Professional Regulation
16is not the primary prudential regulator. Further, nothing is
17this Act shall be construed to limit the authority of the
18Department of Financial and Professional Regulation to examine
19financial organizations.
 
20    Section 15-1003. Rules for conducting examination.
21    (a) The administrator shall adopt rules governing
22procedures and standards for an examination under Section
2315-1002; the rules may reference any standards concerning
24unclaimed property examinations promulgated by the National
25Association of Unclaimed Property Administrators and shall

 

 

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1make provisions for multi-state examinations.
2    (b) After the adoption of rules under subsection (a), an
3examination under Section 15-1002 must be performed under the
4rules adopted under subsection (a).
5    (c) If a person subject to examination under Section
615-1002 has filed the reports required under Section 15-401 and
7Section 15-1001 and has retained the records required by
8Section 15-404, the following rules apply:
9        (1) The examination must include a review of the
10    person's records.
11        (2) The examination may not be based on an estimate
12    unless the person expressly consents in a record to the use
13    of an estimate.
14        (3) The person conducting the examination shall
15    consider the evidence presented in good faith by the person
16    in preparing the findings of the examination under Section
17    15-1007.
 
18    Section 15-1004. Records obtained in examination. Records
19obtained and records, including work papers, compiled by the
20administrator in the course of conducting an examination under
21Section 15-1002:
22        (1) are subject to the confidentiality and security
23    provisions of Article 14 and are exempt from disclosure
24    under the Freedom of Information Act;
25        (2) may be used by the administrator in an action to

 

 

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1    collect property or otherwise enforce this Act;
2        (3) may be used in a joint examination conducted with
3    another state, the United States, a foreign country or
4    subordinate unit of a foreign country, or any other
5    governmental entity if the governmental entity conducting
6    the examination is legally bound to maintain the
7    confidentiality and security of information obtained from
8    a person subject to examination in a manner substantially
9    equivalent to Article 14;
10        (4) may be disclosed, on request, to the person that
11    administers the unclaimed property law of another state for
12    that state's use in circumstances equivalent to
13    circumstances described in this Article, if the other state
14    is required to maintain the confidentiality and security of
15    information obtained in a manner substantially equivalent
16    to Article 14;
17        (5) must be produced by the administrator under an
18    administrative or judicial subpoena or administrative or
19    court order; and
20        (6) must be produced by the administrator on request of
21    the person subject to the examination in an administrative
22    or judicial proceeding relating to the property.
 
23    Section 15-1005. Evidence of unpaid debt or undischarged
24obligation.
25    (a) A record of a putative holder showing an unpaid debt or

 

 

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1undischarged obligation is prima facie evidence of the debt or
2obligation.
3    (b) A putative holder may establish by a preponderance of
4the evidence that there is no unpaid debt or undischarged
5obligation for a debt or obligation described in subsection (a)
6or that the debt or obligation was not, or no longer is, a
7fixed and certain obligation of the putative holder.
8    (c) A putative holder may overcome prima facie evidence
9under subsection (a) by establishing by a preponderance of the
10evidence that a check, draft, or similar instrument was:
11        (1) issued as an unaccepted offer in settlement of an
12    unliquidated amount;
13        (2) issued but later was replaced with another
14    instrument because the earlier instrument was lost or
15    contained an error that was corrected;
16        (3) issued to a party affiliated with the issuer;
17        (4) paid, satisfied, or discharged;
18        (5) issued in error;
19        (6) issued without consideration;
20        (7) issued but there was a failure of consideration;
21        (8) voided not later than 90 days after issuance for a
22    valid business reason set forth in a contemporaneous
23    record; or
24        (9) issued but not delivered to the third-party payee
25    for a sufficient reason recorded within a reasonable time
26    after issuance.

 

 

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1    (d) In asserting a defense under this Section, and subject
2to the records retention requirements of Section 15-404, a
3putative holder may present evidence of a course of dealing
4between the putative holder and the apparent owner.
 
5    Section 15-1006. Failure of person examined to retain
6records. If a person subject to examination under Section
715-1002 does not retain the records required by Section 15-404,
8the administrator may determine the value of property due using
9a reasonable method of estimation based on all information
10available to the administrator, including extrapolation and
11use of statistical sampling when appropriate and necessary,
12consistent with examination procedures and standards adopted
13under Section 15-1003. A payment made based on estimation under
14this Section is a penalty for failure to maintain the records
15required by Section 15-404 and does not relieve a person from
16an obligation to report and deliver property to a State in
17which the holder is domiciled.
 
18    Section 15-1007. Report to person whose records were
19examined. At the conclusion of an examination under Section
2015-1002, unless waived in writing by the person being examined,
21the administrator shall provide to the person whose records
22were examined a report that specifies:
23        (1) the work performed;
24        (2) the property types reviewed;

 

 

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1        (3) the methodology of any estimation technique,
2    extrapolation, or statistical sampling used in conducting
3    the examination;
4        (4) each calculation showing the value of property
5    determined to be due; and
6        (5) the findings of the person conducting the
7    examination.
 
8    Section 15-1008. Informal conference during examination.
9    (a) If a person subject to examination under Section
1015-1002 believes the person conducting the examination has made
11an unreasonable or unauthorized request or is not proceeding
12expeditiously to complete the examination, the person in a
13record may request an informal conference with the
14administrator.
15    (b) If a person in a record requests an informal conference
16with the administrator, the administrator shall hold the
17informal conference not later than 30 days after receiving the
18request. For good cause, and after notice in a record to the
19person requesting an informal conference, the administrator
20may extend the time for the holding of an informal conference.
21The administrator may hold the informal conference in person,
22by telephone, or by electronic means.
23    (c) If an informal conference is held under subsection (b),
24not later than 30 days after the conference ends, the
25administrator shall provide a response to the person that

 

 

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1requested the conference.
2    (d) The administrator may deny a request for an informal
3conference under this Section if the administrator reasonably
4believes that the request was made in bad faith or primarily to
5delay the examination. If the administrator denies a request
6for an informal conference the denial shall be in a record
7provided to the person requesting the informal conference.
 
8    Section 15-1009. Administrator's contract with another to
9conduct examination.
10    (a) The administrator may contract with a person to conduct
11an examination under this Article. The contract shall be
12awarded pursuant to a request for proposals issued in
13compliance with the procurement rules of the administrator.
14    (b) If the administrator contracts with a person under
15subsection (a):
16        (1) the contract may provide for compensation of the
17    person based on a fixed fee, hourly fee, or contingent fee;
18        (2) a contingent fee arrangement may not provide for a
19    payment that exceeds 15% of the amount or value of property
20    paid or delivered as a result of the examination; and
21        (3) as authorized in the State Officers and Employees
22    Money Disposition Act, the administrator may permit the
23    deduction of fees from property recovered during an
24    examination under this Article prior to depositing funds
25    received under this Act into the Unclaimed Property Trust

 

 

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1    Fund.
2    (c) A contract under subsection (a) is a public record
3under the Freedom of Information Act.
 
4    Section 15-1010. Report by administrator. As part of the
5report required by Section 15 of the State Treasurer Act, the
6administrator shall compile and include the following
7information about property presumed abandoned for the
8preceding fiscal year for the State:
9        (1) the total amount and value of all property paid or
10    delivered under this Act to the administrator, separated
11    into:
12            (A) the part voluntarily paid or delivered; and
13            (B) the part paid or delivered as a result of an
14        examination under Section 15-1002;
15        (2) the total amount and value of all property paid or
16    delivered by the administrator to persons that made claims
17    for property held by the administrator under this Act;
18        (3) the amounts expended from the State Pensions Fund;
19    and
20        (4) such other information as the administrator
21    believes would be useful or informative.
 
22    Section 15-1011. Determination of liability for unreported
23reportable property. If the administrator determines from an
24examination conducted under Section 15-1002 that a putative

 

 

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1holder failed or refused to pay or deliver to the administrator
2property which is reportable under this Act, the administrator
3shall issue a determination of the putative holder's liability
4to pay or deliver and give notice in a record to the putative
5holder of the determination.
 
6
ARTICLE 11. DETERMINATION OF LIABILITY; PUTATIVE HOLDER
7
REMEDIES

 
8    Section 15-1101. Informal conference.
9    (a) Not later than 30 days after receipt of a notice under
10Section 15-1011, the putative holder may request an informal
11conference with the administrator to review the determination.
12Except as otherwise provided in this Section, the administrator
13may designate an employee to act on behalf of the
14administrator.
15    (b) If a putative holder makes a timely request under
16subsection (a) for an informal conference:
17        (1) not later than 30 days after the date of the
18    request, the administrator shall set the time and place of
19    the conference;
20        (2) the administrator shall give the putative holder
21    notice in a record of the time and place of the conference;
22        (3) the conference may be held in person, by telephone,
23    or by electronic means, as determined by the administrator;
24        (4) the request tolls the 90-day period under Sections

 

 

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1    15-1103 and 15-1104 until notice of a decision under
2    paragraph (7) has been given to the putative holder or the
3    putative holder withdraws the request for the conference;
4        (5) the conference may be postponed, adjourned, and
5    reconvened as the administrator determines appropriate;
6        (6) the administrator or administrator's designee with
7    the approval of the administrator may modify a
8    determination made under Section 15-1011 or withdraw it;
9    and
10        (7) the administrator shall issue a decision in a
11    record and provide a copy of the record to the putative
12    holder and examiner not later than 30 days after the
13    conference ends.
14    (c) A conference under subsection (b) is not an
15administrative remedy and is not a contested case subject to
16the Illinois Administrative Procedure Act. An oath is not
17required and rules of evidence do not apply in the conference.
18    (d) At a conference under subsection (b), the putative
19holder must be given an opportunity to confer informally with
20the administrator and the person that examined the records of
21the putative holder to:
22        (1) discuss the determination made under Section
23    15-1011; and
24        (2) present any issue concerning the validity of the
25    determination.
26    (e) If the administrator fails to act within the period

 

 

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1prescribed in subsection (b)(1) or (7), the failure does not
2affect a right of the administrator, except that interest does
3not accrue on the amount for which the putative holder was
4determined to be liable under Section 15-1011 during the period
5in which the administrator failed to act until the earlier of:
6        (1) the date under Section 15-1103 the putative holder
7    initiates administrative review or files an action under
8    Section 15-1104; or
9        (2) 90 days after the putative holder received notice
10    of the administrator's determination under Section 15-1011
11    if no review was initiated under Section 15-1103 and no
12    action was filed under Section 15-1104.
13    (f) The administrator may hold an informal conference with
14a putative holder about a determination under Section 15-1011
15without a request at any time before the putative holder
16initiates administrative review under Section 15-1102.
17    (g) Interest and penalties under Section 15-1204 continue
18to accrue on property not reported, paid, or delivered as
19required by this Act after the initiation, and during the
20pendency, of an informal conference under this Section.
 
21    Section 15-1102. Administrative review.
22    (a) Not later than 90 days after receiving notice of the
23administrator's determination under Section 15-1011, or, if
24applicable and as provided in Section 15-1101(b)(4), after
25notice of a decision under 15-1101(b)(7) has been given to the

 

 

10000SB0009ham002- 95 -LRB100 06347 HLH 27841 a

1putative holder or the putative holder has withdrawn the
2request for an informal conference, a putative holder may
3initiate a contested case under the Illinois Administrative
4Procedure Act for review of the administrator's determination.
5    (b) A final decision in an administrative proceeding
6initiated under subsection (a) is subject to judicial review
7under the Article III of Code of Civil Procedure.
 
8
ARTICLE 12. ENFORCEMENT BY ADMINISTRATOR

 
9    Section 15-1201. Judicial action to enforce liability.
10    (a) If a determination under Section 15-1011 becomes final
11and is not subject to administrative or judicial review, the
12administrator may commence an action in the Circuit Court of
13Sangamon County or Cook County, federal court, or in an
14appropriate court of another state to enforce the determination
15and secure payment or delivery of past due, unpaid, or
16undelivered property. The action must be brought not later than
175 years after the determination becomes final.
18    (b) In an action under subsection (a), if no court in this
19State has jurisdiction over the defendant, the administrator
20may commence an action in any court having jurisdiction over
21the defendant.
 
22    Section 15-1202. Interstate and international agreement;
23cooperation.

 

 

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1    (a) Subject to subsection (b), the administrator may:
2        (1) exchange information with another state or foreign
3    country relating to property presumed abandoned or
4    relating to the possible existence of property presumed
5    abandoned; and
6        (2) authorize in a record another state or foreign
7    country or a person acting on behalf of the other state or
8    country to examine its records of a putative holder as
9    provided in Article 10.
10    (b) An exchange or examination under subsection (a) may be
11done only if the state or foreign country has confidentiality
12and security requirements substantially equivalent to those in
13Article 14 or agrees in a record to be bound by this State's
14confidentiality and security requirements.
 
15    Section 15-1203. Action involving another state or foreign
16country.
17    (a) The administrator may join another state or foreign
18country to examine and seek enforcement of this Act against a
19putative holder.
20    (b) On request of another state or foreign country, the
21Attorney General may commence an action on behalf of the other
22state or country to enforce, in this State, the law of the
23other state or country against a putative holder subject to a
24claim by the other state or country.
25    (c) The administrator may request the official authorized

 

 

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1to enforce the unclaimed property law of another state or
2foreign country to commence an action to recover property in
3the other state or country on behalf of the administrator. This
4state may pay the costs, including reasonable attorney's fees
5and expenses, incurred by the other state or foreign country in
6an action under this subsection.
7    (d) The administrator may pursue an action on behalf of
8this State to recover property subject to this Act but
9delivered to the custody of another state if the administrator
10believes the property is subject to the custody of the
11administrator.
12    (e) At the request of the administrator, the Attorney
13General may commence an action to recover property on behalf of
14the administrator in this State, another state, or a foreign
15country. With the written consent of the Attorney General, the
16administrator may retain an attorney in this State, another
17state, or a foreign country to recover property on behalf of
18the administrator in this State, another state, or a foreign
19country and may agree to pay attorney's fees based in whole or
20in part on a fixed fee, hourly fee, or a percentage of the
21amounts or value of property recovered in the action.
22    (f) Expenses incurred by this State in an action under this
23Section may be paid from property received under this Act or
24the net proceeds of the property. Expenses paid to recover
25property may not be deducted from the amount that is subject to
26a claim under this Act by the owner.
 

 

 

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1    Section 15-1204. Interest and penalty for failure to act in
2timely manner.
3    (a) A holder that fails to report, pay, or deliver property
4within the time prescribed by this Act shall pay to the
5administrator interest at a rate of 1% per month on the
6property or value of the property from the date the property
7should have been reported, paid, or delivered to the
8administrator until the date reported, paid, or delivered.
9    (b) Except as otherwise provided in Section 15-1 or
1015-1206, the administrator may require a holder that fails to
11report, pay, or deliver property within the time prescribed by
12this Act to pay to the administrator, in addition to interest
13included under subsection (a), a civil penalty of $200 for each
14day the duty is not performed, up to a cumulative maximum
15amount of $5,000.
16    (c) A holder who fails to report, pay, or deliver property
17within the time prescribed by this Act shall not be required to
18pay interest under subsection (a) above or be subject to
19penalties under subsection (b) above if the failure to report,
20pay, or deliver the property was due to lack of knowledge of
21the death that established the period of abandonment under this
22Act.
 
23    Section 15-1205. Other civil penalties.
24    (a) If a holder enters into a contract or other arrangement

 

 

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1for the purpose of evading an obligation under this Act or
2otherwise willfully fails to perform a duty imposed on the
3holder under this Act, the administrator may require the holder
4to pay the administrator, in addition to interest as provided
5in subsection (a) of Section 15-1204, a civil penalty of $1,000
6for each day the obligation is evaded or the duty is not
7performed, up to a cumulative maximum amount of $25,000, plus
825% of the amount or value of property that should have been
9but was not reported, paid, or delivered as a result of the
10evasion or failure to perform.
11    (b) If a holder makes a fraudulent report under this Act,
12the administrator may require the holder to pay to the
13administrator, in addition to interest under subsection (a) of
14Section 15-1204, a civil penalty of $1,000 for each day from
15the date the report was made until corrected, up to a
16cumulative maximum of $25,000, plus 25% of the amount or value
17of any property that should have been reported but was not
18included in the report or was underreported.
 
19    Section 15-1206. Waiver of interest and penalty. The
20administrator:
21        (1) may waive, in whole or in part, interest under
22    subsection (a) of Section 15-1204 and penalties under
23    subsection (b) of Section 15-1204 or Section 15-1; and
24        (2) shall waive a penalty under subsection (b) of
25    Section 15-1204 if the administrator determines that the

 

 

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1    holder acted in good faith and without negligence.
 
2
ARTICLE 13. AGREEMENT TO LOCATE PROPERTY OF APPARENT OWNER HELD
3
BY ADMINISTRATOR

 
4    Section 15-1301. When agreement to locate property
5enforceable. An agreement by an apparent owner and another
6person, the primary purpose of which is to locate, deliver,
7recover, or assist in the location, delivery, or recovery of
8property held by the administrator, is enforceable only if the
9agreement:
10        (1) is in a record that clearly states the nature of
11    the property and the services to be provided;
12        (2) is signed by or on behalf of the apparent owner;
13    and
14        (3) states the amount or value of the property
15    reasonably expected to be recovered, computed before and
16    after a fee or other compensation to be paid to the person
17    has been deducted.
 
18    Section 15-1302. When agreement to locate property void.
19    (a) Subject to subsection (b), an agreement under Section
2015-1301 is void if it is entered into during the period
21beginning on the date the property was presumed abandoned under
22this Act and ending 24 months after the payment or delivery of
23the property to the administrator.

 

 

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1    (b) If a provision in an agreement described in Section
215-1301 applies to mineral proceeds for which compensation is
3to be paid to the other person based in whole or in part on a
4part of the underlying minerals or mineral proceeds not then
5presumed abandoned, the provision is void regardless of when
6the agreement was entered into.
7    (c) An agreement under subsection (a) which provides for
8compensation in an amount that is more than 10% of the amount
9collected is unenforceable except by the apparent owner.
10    (d) An apparent owner or the administrator may assert that
11an agreement described in this Section is void on a ground
12other than it provides for payment of unconscionable
13compensation.
14    (e) A person attempting to collect a contingent fee for
15discovering, on behalf of an apparent owner, presumptively
16abandoned property must be licensed as a private detective
17pursuant to the Private Detective, Private Alarm, Private
18Security, Fingerprint Vendor, and Locksmith Act of 2004.
19    (f) This Section does not apply to an apparent owner's
20agreement with an attorney to pursue a claim for recovery of
21specifically identified property held by the administrator or
22to contest the administrator's denial of a claim for recovery
23of the property.
 
24
ARTICLE 14. CONFIDENTIALITY AND SECURITY OF INFORMATION

 

 

 

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1    Section 15-1401. Confidential information.
2    (a) Except as otherwise provide in this Section,
3information that is confidential under law of this State other
4than this Act, another state, or the United States, including
5"private information" as defined in the Freedom of Information
6Act and "personal information" as defined in the Personal
7Information Protection Act, continues to be confidential when
8disclosed or delivered under this Act to the administrator or
9administrator's agent.
10    (b) Information provided in reports filed pursuant to
11Section 15-401, information obtained in the course of an
12examination pursuant to Section 15-1002, and the database
13required by Section 15-503 is exempt from disclosure under the
14Freedom of Information Act.
15    (c) If reasonably necessary to enforce or implement this
16Act, the administrator or the administrator's agent may
17disclose confidential information concerning property held by
18the administrator or the administrator's agent to:
19        (1) an apparent owner or the apparent owner's
20    representative under the Probate Act of 1975, attorney,
21    other legal representative, or relative;
22        (2) the representative under the Probate Act of 1975,
23    other legal representative, relative of a deceased
24    apparent owner, or a person entitled to inherit from the
25    deceased apparent owner;
26        (3) another department or agency of this State or the

 

 

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1    United States;
2        (4) the person that administers the unclaimed property
3    law of another state, if the other state accords
4    substantially reciprocal privileges to the administrator
5    of this State if the other state is required to maintain
6    the confidentiality and security of information obtained
7    in a manner substantially equivalent to Article 14;
8        (5) a person subject to an examination as required by
9    Section 15-1004; and
10        (6) an agent of the administrator.
11    (b) The administrator may include on the website or in the
12database the names and addresses of apparent owners of property
13held by the administrator as provided in Section 15-503. The
14administrator may include in published notices, printed
15publications, telecommunications, the Internet, or other media
16and on the website or in the database additional information
17concerning the apparent owner's property if the administrator
18believes the information will assist in identifying and
19returning property to the owner and does not disclose personal
20information as defined in the Personal Information Protection
21Act.
22    (c) The administrator and the administrator's agent may not
23use confidential information provided to them or in their
24possession except as expressly authorized by this Act or
25required by law other than this Act.
 

 

 

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1    Section 15-1402. Confidentiality agreement. A person to be
2examined under Section 15-1002 may require, as a condition of
3disclosure of the records of the person to be examined, that
4the administrator or the administrator's agent execute and
5deliver to the person to be examined a confidentiality
6agreement that:
7        (1) is in a form that is reasonably satisfactory to the
8    administrator; and
9        (2) requires the person having access to the records to
10    comply with the provisions of this Article applicable to
11    the person.
 
12    Section 15-1403. No confidential information in notice.
13Except as otherwise provided in Sections 15-501 and 15-502, a
14holder is not required under this Act to include confidential
15information in a notice the holder is required to provide to an
16apparent owner under this Act.
 
17    Section 15-1404. Security of information.
18    (a) If a holder is required to include confidential
19information in a report to the administrator, the information
20must be provided by a secure means.
21    (b) If confidential information in a record is provided to
22and maintained by the administrator or administrator's agent as
23required by this Act, the administrator or agent shall
24implement and maintain reasonable security measures to protect

 

 

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1those records from unauthorized access, acquisition,
2destruction, use, modification, or disclosure as required by
3the Personal Information Protection Act. If a State or federal
4law requires the administrator or agent to provide greater
5protection to records that contain personal information that
6are maintained by the administrator or agent and the
7administrator or agent is in compliance with the provisions of
8that State or federal law, the administrator or agent is deemed
9to be in compliance with the provisions of this subsection.
10    (c) If there is any breach of the security of the system
11data or written material, the administrator and the
12administrator's agent shall comply with the notice
13requirements of Section 12 of the Personal Information
14Protection Act, and shall, if applicable, cooperate with a
15holder in complying with the notice requirements of Section 10
16of the Personal Information Protection Act.
17    (d) The administrator and the administrator's agent shall
18either return in a secure manner or destroy in a manner
19consistent with the Personal Information Protection Act all
20confidential information no longer reasonably needed under
21this Act.
 
22
ARTICLE 15. MISCELLANEOUS

 
23    Section 15-1501. Uniformity of application and
24construction. In applying and construing this uniform Act

 

 

10000SB0009ham002- 106 -LRB100 06347 HLH 27841 a

1consideration must be given to the need to promote uniformity
2of the law with respect to its subject matter among states that
3enact it.
 
4    Section 15-1502. Relation to Electronic Signatures in
5Global and National Commerce Act. This Act modifies, limits, or
6supersedes the Electronic Signatures in Global and National
7Commerce Act, 15 U.S.C. Section 7001 et seq., but does not
8modify, limit, or supersede Section 101(c) of that Act, 15
9U.S.C. Section 7001(c), or authorize electronic delivery of any
10of the notices described in Section 103(b) of that Act, 15
11U.S.C. Section 7003(b).
 
12    Section 15-1503. Transitional provision.
13    (a) An initial report filed under this Act for property
14that was not required to be reported before the effective date
15of this Act, but that is required to be reported under this
16Act, must include all items of property that would have been
17presumed abandoned during the 5-year period preceding the
18effective date of this Act as if this Act had been in effect
19during that period.
20    (b) This Act does not relieve a holder of a duty that arose
21before the effective date of this Act to report, pay, or
22deliver property. Subject to subsection (b) of Section 15-610,
23a holder that did not comply with the law governing unclaimed
24property before the effective date of this Act is subject to

 

 

10000SB0009ham002- 107 -LRB100 06347 HLH 27841 a

1applicable provisions for enforcement and penalties in effect
2before the effective date of this Act.
 
3    Section 15-1504. Severability. If any provision of this Act
4or its application to any person or circumstance is held
5invalid, the invalidity does not affect other provisions or
6applications of this Act which can be given effect without the
7invalid provision or application, and to this end the
8provisions of this Act are severable.
 
9
ARTICLE 17. AMENDATORY PROVISIONS; UNCLAIMED PROPERTY

 
10    (765 ILCS 1025/Act rep.)
11    Section 17-5. The Uniform Disposition of Unclaimed
12Property Act is repealed.
 
13    Section 17-10. The Illinois Administrative Procedure Act
14is amended by changing Section 1-5 as follows:
 
15    (5 ILCS 100/1-5)  (from Ch. 127, par. 1001-5)
16    Sec. 1-5. Applicability.
17    (a) This Act applies to every agency as defined in this
18Act. Beginning January 1, 1978, in case of conflict between the
19provisions of this Act and the Act creating or conferring power
20on an agency, this Act shall control. If, however, an agency
21(or its predecessor in the case of an agency that has been

 

 

10000SB0009ham002- 108 -LRB100 06347 HLH 27841 a

1consolidated or reorganized) has existing procedures on July 1,
21977, specifically for contested cases or licensing, those
3existing provisions control, except that this exception
4respecting contested cases and licensing does not apply if the
5Act creating or conferring power on the agency adopts by
6express reference the provisions of this Act. Where the Act
7creating or conferring power on an agency establishes
8administrative procedures not covered by this Act, those
9procedures shall remain in effect.
10    (b) The provisions of this Act do not apply to (i)
11preliminary hearings, investigations, or practices where no
12final determinations affecting State funding are made by the
13State Board of Education, (ii) legal opinions issued under
14Section 2-3.7 of the School Code, (iii) as to State colleges
15and universities, their disciplinary and grievance
16proceedings, academic irregularity and capricious grading
17proceedings, and admission standards and procedures, and (iv)
18the class specifications for positions and individual position
19descriptions prepared and maintained under the Personnel Code.
20Those class specifications shall, however, be made reasonably
21available to the public for inspection and copying. The
22provisions of this Act do not apply to hearings under Section
2320 of the Uniform Disposition of Unclaimed Property Act.
24    (c) Section 5-35 of this Act relating to procedures for
25rulemaking does not apply to the following:
26        (1) Rules adopted by the Pollution Control Board that,

 

 

10000SB0009ham002- 109 -LRB100 06347 HLH 27841 a

1    in accordance with Section 7.2 of the Environmental
2    Protection Act, are identical in substance to federal
3    regulations or amendments to those regulations
4    implementing the following: Sections 3001, 3002, 3003,
5    3004, 3005, and 9003 of the Solid Waste Disposal Act;
6    Section 105 of the Comprehensive Environmental Response,
7    Compensation, and Liability Act of 1980; Sections 307(b),
8    307(c), 307(d), 402(b)(8), and 402(b)(9) of the Federal
9    Water Pollution Control Act; Sections 1412(b), 1414(c),
10    1417(a), 1421, and 1445(a) of the Safe Drinking Water Act;
11    and Section 109 of the Clean Air Act.
12        (2) Rules adopted by the Pollution Control Board that
13    establish or amend standards for the emission of
14    hydrocarbons and carbon monoxide from gasoline powered
15    motor vehicles subject to inspection under the Vehicle
16    Emissions Inspection Law of 2005 or its predecessor laws.
17        (3) Procedural rules adopted by the Pollution Control
18    Board governing requests for exceptions under Section 14.2
19    of the Environmental Protection Act.
20        (4) The Pollution Control Board's grant, pursuant to an
21    adjudicatory determination, of an adjusted standard for
22    persons who can justify an adjustment consistent with
23    subsection (a) of Section 27 of the Environmental
24    Protection Act.
25        (4.5) The Pollution Control Board's adoption of
26    time-limited water quality standards under Section 38.5 of

 

 

10000SB0009ham002- 110 -LRB100 06347 HLH 27841 a

1    the Environmental Protection Act.
2        (5) Rules adopted by the Pollution Control Board that
3    are identical in substance to the regulations adopted by
4    the Office of the State Fire Marshal under clause (ii) of
5    paragraph (b) of subsection (3) of Section 2 of the
6    Gasoline Storage Act.
7    (d) Pay rates established under Section 8a of the Personnel
8Code shall be amended or repealed pursuant to the process set
9forth in Section 5-50 within 30 days after it becomes necessary
10to do so due to a conflict between the rates and the terms of a
11collective bargaining agreement covering the compensation of
12an employee subject to that Code.
13    (e) Section 10-45 of this Act shall not apply to any
14hearing, proceeding, or investigation conducted under Section
1513-515 of the Public Utilities Act.
16    (f) Article 10 of this Act does not apply to any hearing,
17proceeding, or investigation conducted by the State Council for
18the State of Illinois created under Section 3-3-11.05 of the
19Unified Code of Corrections or by the Interstate Commission for
20Adult Offender Supervision created under the Interstate
21Compact for Adult Offender Supervision or by the Interstate
22Commission for Juveniles created under the Interstate Compact
23for Juveniles.
24    (g) This Act is subject to the provisions of Article XXI of
25the Public Utilities Act. To the extent that any provision of
26this Act conflicts with the provisions of that Article XXI, the

 

 

10000SB0009ham002- 111 -LRB100 06347 HLH 27841 a

1provisions of that Article XXI control.
2(Source: P.A. 98-463, eff. 8-16-13; 99-937, eff. 2-24-17.)
 
3    Section 17-15. The Freedom of Information Act is amended by
4changing Section 7.5 as follows:
 
5    (5 ILCS 140/7.5)
6    Sec. 7.5. Statutory exemptions. To the extent provided for
7by the statutes referenced below, the following shall be exempt
8from inspection and copying:
9        (a) All information determined to be confidential
10    under Section 4002 of the Technology Advancement and
11    Development Act.
12        (b) Library circulation and order records identifying
13    library users with specific materials under the Library
14    Records Confidentiality Act.
15        (c) Applications, related documents, and medical
16    records received by the Experimental Organ Transplantation
17    Procedures Board and any and all documents or other records
18    prepared by the Experimental Organ Transplantation
19    Procedures Board or its staff relating to applications it
20    has received.
21        (d) Information and records held by the Department of
22    Public Health and its authorized representatives relating
23    to known or suspected cases of sexually transmissible
24    disease or any information the disclosure of which is

 

 

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1    restricted under the Illinois Sexually Transmissible
2    Disease Control Act.
3        (e) Information the disclosure of which is exempted
4    under Section 30 of the Radon Industry Licensing Act.
5        (f) Firm performance evaluations under Section 55 of
6    the Architectural, Engineering, and Land Surveying
7    Qualifications Based Selection Act.
8        (g) Information the disclosure of which is restricted
9    and exempted under Section 50 of the Illinois Prepaid
10    Tuition Act.
11        (h) Information the disclosure of which is exempted
12    under the State Officials and Employees Ethics Act, and
13    records of any lawfully created State or local inspector
14    general's office that would be exempt if created or
15    obtained by an Executive Inspector General's office under
16    that Act.
17        (i) Information contained in a local emergency energy
18    plan submitted to a municipality in accordance with a local
19    emergency energy plan ordinance that is adopted under
20    Section 11-21.5-5 of the Illinois Municipal Code.
21        (j) Information and data concerning the distribution
22    of surcharge moneys collected and remitted by wireless
23    carriers under the Wireless Emergency Telephone Safety
24    Act.
25        (k) Law enforcement officer identification information
26    or driver identification information compiled by a law

 

 

10000SB0009ham002- 113 -LRB100 06347 HLH 27841 a

1    enforcement agency or the Department of Transportation
2    under Section 11-212 of the Illinois Vehicle Code.
3        (l) Records and information provided to a residential
4    health care facility resident sexual assault and death
5    review team or the Executive Council under the Abuse
6    Prevention Review Team Act.
7        (m) Information provided to the predatory lending
8    database created pursuant to Article 3 of the Residential
9    Real Property Disclosure Act, except to the extent
10    authorized under that Article.
11        (n) Defense budgets and petitions for certification of
12    compensation and expenses for court appointed trial
13    counsel as provided under Sections 10 and 15 of the Capital
14    Crimes Litigation Act. This subsection (n) shall apply
15    until the conclusion of the trial of the case, even if the
16    prosecution chooses not to pursue the death penalty prior
17    to trial or sentencing.
18        (o) Information that is prohibited from being
19    disclosed under Section 4 of the Illinois Health and
20    Hazardous Substances Registry Act.
21        (p) Security portions of system safety program plans,
22    investigation reports, surveys, schedules, lists, data, or
23    information compiled, collected, or prepared by or for the
24    Regional Transportation Authority under Section 2.11 of
25    the Regional Transportation Authority Act or the St. Clair
26    County Transit District under the Bi-State Transit Safety

 

 

10000SB0009ham002- 114 -LRB100 06347 HLH 27841 a

1    Act.
2        (q) Information prohibited from being disclosed by the
3    Personnel Records Review Act.
4        (r) Information prohibited from being disclosed by the
5    Illinois School Student Records Act.
6        (s) Information the disclosure of which is restricted
7    under Section 5-108 of the Public Utilities Act.
8        (t) All identified or deidentified health information
9    in the form of health data or medical records contained in,
10    stored in, submitted to, transferred by, or released from
11    the Illinois Health Information Exchange, and identified
12    or deidentified health information in the form of health
13    data and medical records of the Illinois Health Information
14    Exchange in the possession of the Illinois Health
15    Information Exchange Authority due to its administration
16    of the Illinois Health Information Exchange. The terms
17    "identified" and "deidentified" shall be given the same
18    meaning as in the Health Insurance Portability and
19    Accountability Act of 1996, Public Law 104-191, or any
20    subsequent amendments thereto, and any regulations
21    promulgated thereunder.
22        (u) Records and information provided to an independent
23    team of experts under Brian's Law.
24        (v) Names and information of people who have applied
25    for or received Firearm Owner's Identification Cards under
26    the Firearm Owners Identification Card Act or applied for

 

 

10000SB0009ham002- 115 -LRB100 06347 HLH 27841 a

1    or received a concealed carry license under the Firearm
2    Concealed Carry Act, unless otherwise authorized by the
3    Firearm Concealed Carry Act; and databases under the
4    Firearm Concealed Carry Act, records of the Concealed Carry
5    Licensing Review Board under the Firearm Concealed Carry
6    Act, and law enforcement agency objections under the
7    Firearm Concealed Carry Act.
8        (w) Personally identifiable information which is
9    exempted from disclosure under subsection (g) of Section
10    19.1 of the Toll Highway Act.
11        (x) Information which is exempted from disclosure
12    under Section 5-1014.3 of the Counties Code or Section
13    8-11-21 of the Illinois Municipal Code.
14        (y) Confidential information under the Adult
15    Protective Services Act and its predecessor enabling
16    statute, the Elder Abuse and Neglect Act, including
17    information about the identity and administrative finding
18    against any caregiver of a verified and substantiated
19    decision of abuse, neglect, or financial exploitation of an
20    eligible adult maintained in the Registry established
21    under Section 7.5 of the Adult Protective Services Act.
22        (z) Records and information provided to a fatality
23    review team or the Illinois Fatality Review Team Advisory
24    Council under Section 15 of the Adult Protective Services
25    Act.
26        (aa) Information which is exempted from disclosure

 

 

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1    under Section 2.37 of the Wildlife Code.
2        (bb) Information which is or was prohibited from
3    disclosure by the Juvenile Court Act of 1987.
4        (cc) Recordings made under the Law Enforcement
5    Officer-Worn Body Camera Act, except to the extent
6    authorized under that Act.
7        (dd) Information that is prohibited from being
8    disclosed under Section 45 of the Condominium and Common
9    Interest Community Ombudsperson Act.
10        (ee) (dd) Information that is exempted from disclosure
11    under Section 30.1 of the Pharmacy Practice Act.
12        (ff) Information that is exempted from disclosure
13    under the Revised Uniform Unclaimed Property Act.
14(Source: P.A. 98-49, eff. 7-1-13; 98-63, eff. 7-9-13; 98-756,
15eff. 7-16-14; 98-1039, eff. 8-25-14; 98-1045, eff. 8-25-14;
1699-78, eff. 7-20-15; 99-298, eff. 8-6-15; 99-352, eff. 1-1-16;
1799-642, eff. 7-28-16; 99-776, eff. 8-12-16; 99-863, eff.
188-19-16; revised 9-1-16.)
 
19    Section 17-20. The State Comptroller Act is amended by
20changing Section 9 as follows:
 
21    (15 ILCS 405/9)  (from Ch. 15, par. 209)
22    Sec. 9. Warrants; vouchers; preaudit.
23    (a) No payment may be made from public funds held by the
24State Treasurer in or outside of the State treasury, except by

 

 

10000SB0009ham002- 117 -LRB100 06347 HLH 27841 a

1warrant drawn by the Comptroller and presented by him to the
2treasurer to be countersigned except for payments made pursuant
3to Section 9.03 or 9.05 of this Act.
4    (b) No warrant for the payment of money by the State
5Treasurer may be drawn by the Comptroller without the
6presentation of itemized vouchers indicating that the
7obligation or expenditure is pursuant to law and authorized,
8and authorizing the Comptroller to order payment.
9    (b-1) An itemized voucher for under $5 that is presented to
10the Comptroller for payment shall not be paid except through
11electronic funds transfer. This subsection (b-1) does not apply
12to (i) vouchers presented by the legislative branch of State
13government, (ii) vouchers presented by the State Treasurer's
14Office for the payment of unclaimed property claims authorized
15under the Revised Uniform Disposition of Unclaimed Property
16Act, or (iii) vouchers presented by the Department of Revenue
17for the payment of refunds of taxes administered by the
18Department.
19    (c) The Comptroller shall examine each voucher required by
20law to be filed with him and determine whether unencumbered
21appropriations or unencumbered obligational or expenditure
22authority other than by appropriation are legally available to
23incur the obligation or to make the expenditure of public
24funds. If he determines that unencumbered appropriations or
25other obligational or expenditure authority are not available
26from which to incur the obligation or make the expenditure, the

 

 

10000SB0009ham002- 118 -LRB100 06347 HLH 27841 a

1Comptroller shall refuse to draw a warrant.
2    (d) The Comptroller shall examine each voucher and all
3other documentation required to accompany the voucher, and
4shall ascertain whether the voucher and documentation meet all
5requirements established by or pursuant to law. If the
6Comptroller determines that the voucher and documentation do
7not meet applicable requirements established by or pursuant to
8law, he shall refuse to draw a warrant. As used in this
9Section, "requirements established by or pursuant to law"
10includes statutory enactments and requirements established by
11rules and regulations adopted pursuant to this Act.
12    (e) Prior to drawing a warrant, the Comptroller may review
13the voucher, any documentation accompanying the voucher, and
14any other documentation related to the transaction on file with
15him, and determine if the transaction is in accordance with the
16law. If based on his review the Comptroller has reason to
17believe that such transaction is not in accordance with the
18law, he shall refuse to draw a warrant.
19    (f) Where the Comptroller refuses to draw a warrant
20pursuant to this Section, he shall maintain separate records of
21such transactions.
22    (g) State agencies shall have the principal responsibility
23for the preaudit of their encumbrances, expenditures, and other
24transactions as otherwise required by law.
25(Source: P.A. 97-969, eff. 8-16-12; 97-1142, eff. 12-28-12;
2698-421, eff. 8-16-13.)
 

 

 

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1    Section 17-25. The State Treasurer Act is amended by
2changing Sections 0.02, 0.03, 0.04, 0.05, and 0.06 as follows:
 
3    (15 ILCS 505/0.02)
4    Sec. 0.02. Transfer of powers. The rights, powers, duties,
5and functions vested in the Department of Financial
6Institutions to administer the Uniform Disposition of
7Unclaimed Property Act (superseded by the Revised Uniform
8Unclaimed Property Act) are transferred to the State Treasurer
9on July 1, 1999; provided, however, that the rights, powers,
10duties, and functions involving the examination of the records
11of any person that the State Treasurer has reason to believe
12has failed to report properly under this Act shall be
13transferred to the Office of Banks and Real Estate if the
14person is regulated by the Office of Banks and Real Estate
15under the Illinois Banking Act, the Corporate Fiduciary Act,
16the Foreign Banking Office Act, the Illinois Savings and Loan
17Act of 1985, or the Savings Bank Act and shall be retained by
18the Department of Financial Institutions if the person is doing
19business in the State under the supervision of the Department
20of Financial Institutions, the National Credit Union
21Administration, the Office of Thrift Supervision, or the
22Comptroller of the Currency.
23(Source: P.A. 91-16, eff. 6-4-99.)
 

 

 

10000SB0009ham002- 120 -LRB100 06347 HLH 27841 a

1    (15 ILCS 505/0.03)
2    Sec. 0.03. Transfer of personnel.
3    (a) Except as provided in subsection (b), personnel
4employed by the Department of Financial Institutions on June
530, 1999 to perform duties pertaining to the administration of
6the Uniform Disposition of Unclaimed Property Act (superseded
7by the Revised Uniform Unclaimed Property Act) are transferred
8to the State Treasurer on July 1, 1999.
9    (b) In the case of a person employed by the Department of
10Financial Institutions to perform both duties pertaining to the
11administration of the Uniform Disposition of Unclaimed
12Property Act (superseded by the Revised Uniform Unclaimed
13Property Act) and duties pertaining to a function retained by
14the Department of Financial Institutions, the State Treasurer,
15in consultation with the Director of Financial Institutions,
16shall determine whether to transfer the employee to the Office
17of the State Treasurer; until this determination has been made,
18the transfer shall not take effect.
19    (c) The rights of State employees, the State, and its
20agencies under the Personnel Code and applicable collective
21bargaining agreements and retirement plans are not affected by
22this amendatory Act of 1999, except that all positions
23transferred to the State Treasurer shall be subject to the
24State Treasurer Employment Code effective July 1, 2000.
25    All transferred employees who are members of collective
26bargaining units shall retain their seniority, continuous

 

 

10000SB0009ham002- 121 -LRB100 06347 HLH 27841 a

1service, salary, and accrued benefits. During the pendency of
2the existing collective bargaining agreement, the rights
3provided for under that agreement and memoranda and supplements
4to that agreement, including but not limited to, the rights of
5employees performing duties pertaining to the administration
6of the Uniform Disposition of Unclaimed Property Act
7(superseded by the Revised Uniform Unclaimed Property Act) to
8positions in other State agencies and the right of employees in
9other State agencies covered by the agreement to positions
10performing duties pertaining to the administration of the
11Uniform Disposition of Unclaimed Property Act (superseded by
12the Revised Uniform Unclaimed Property Act), shall not be
13abridged.
14    The State Treasurer shall continue to honor during their
15pendency all bargaining agreements in effect at the time of the
16transfer and to recognize all collective bargaining
17representatives for the employees who perform or will perform
18functions transferred by this amendatory Act of 1999. For all
19purposes with respect to the management of the existing
20agreement and the negotiation and management of any successor
21agreements, the State Treasurer shall be deemed to be the
22employer of employees who perform or will perform functions
23transferred to the Office of the State Treasurer by this
24amendatory Act of 1999; provided that the Illinois Department
25of Central Management Services shall be a party to any
26grievance or arbitration proceeding held pursuant to the

 

 

10000SB0009ham002- 122 -LRB100 06347 HLH 27841 a

1provisions of the collective bargaining agreement which
2involves the movement of employees from the Office of the State
3Treasurer to an agency under the jurisdiction of the Governor
4covered by the agreement.
5(Source: P.A. 91-16, eff. 6-4-99.)
 
6    (15 ILCS 505/0.04)
7    Sec. 0.04. Transfer of property.
8    (a) Except as provided in subsection (b), all real and
9personal property, including but not limited to all books,
10records, and documents, and all unexpended appropriations and
11pending business pertaining to the administration of the
12Uniform Disposition of Unclaimed Property Act (superseded by
13the Revised Uniform Unclaimed Property Act) shall be
14transferred and delivered to the State Treasurer effective July
151, 1999.
16    (b) In the case of books, records, or documents that
17pertain both to the administration of the Uniform Disposition
18of Unclaimed Property Act (superseded by the Revised Uniform
19Unclaimed Property Act) and to a function retained by the
20Department of Financial Institutions, the State Treasurer, in
21consultation with the Director of Financial Institutions,
22shall determine whether the books, records, or documents shall
23be transferred, copied, or left with the Department of
24Financial Institutions; until this determination has been
25made, the transfer shall not take effect.

 

 

10000SB0009ham002- 123 -LRB100 06347 HLH 27841 a

1    In the case of property or an unexpended appropriation that
2pertains both to the administration of the Uniform Disposition
3of Unclaimed Property Act (superseded by the Revised Uniform
4Unclaimed Property Act) and to a function retained by the
5Department of Financial Institutions, the State Treasurer, in
6consultation with the Director of Financial Institutions,
7shall determine whether the property or unexpended
8appropriation shall be transferred, divided, or left with the
9Department of Financial Institutions; until this determination
10has been made (and, in the case of an unexpended appropriation,
11notice of the determination has been filed with the State
12Comptroller), the transfer shall not take effect.
13(Source: P.A. 91-16, eff. 6-4-99.)
 
14    (15 ILCS 505/0.05)
15    Sec. 0.05. Rules and standards.
16    (a) The rules and standards of the Department of Financial
17Institutions that are in effect on June 30, 1999 and pertain to
18the administration of the Uniform Disposition of Unclaimed
19Property Act (superseded by the Revised Uniform Unclaimed
20Property Act) shall become the rules and standards of the State
21Treasurer on July 1, 1999 and shall continue in effect until
22amended or repealed by the State Treasurer.
23    (b) Any rules pertaining to the administration of the
24Uniform Disposition of Unclaimed Property Act (superseded by
25the Revised Uniform Unclaimed Property Act) that have been

 

 

10000SB0009ham002- 124 -LRB100 06347 HLH 27841 a

1proposed by the Department of Financial Institutions but have
2not taken effect or been finally adopted by June 30, 1999 shall
3become proposed rules of the State Treasurer on July 1, 1999,
4and any rulemaking procedures that have already been completed
5by the Department of Financial Institutions need not be
6repeated.
7    (c) As soon as practical after July 1, 1999, the State
8Treasurer shall revise and clarify the rules transferred to it
9under this amendatory Act of 1999 to reflect the reorganization
10of rights, powers, duties, and functions effected by this
11amendatory Act of 1999 using the procedures for recodification
12of rules available under the Illinois Administrative Procedure
13Act, except that existing title, part, and section numbering
14for the affected rules may be retained.
15    (d) As soon as practical after July 1, 1999, the Office of
16Banks and Real Estate and the Office of the State Treasurer
17shall jointly promulgate rules to reflect the transfer of
18examination functions to the Office of Banks and Real Estate
19under this amendatory Act of 1999 using the procedures
20available under the Illinois Administrative Procedure Act.
21    (e) As soon as practical after July 1, 1999, the Department
22of Financial Institutions and the Office of the State Treasurer
23shall jointly promulgate rules to reflect the retention of
24examination functions by the Department of Financial
25Institutions under this amendatory Act of 1999 using the
26procedures available under the Illinois Administrative

 

 

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1Procedure Act.
2(Source: P.A. 91-16, eff. 6-4-99.)
 
3    (15 ILCS 505/0.06)
4    Sec. 0.06. Savings provisions.
5    (a) The rights, powers, duties, and functions transferred
6to the State Treasurer or the Commissioner of Banks and Real
7Estate by this amendatory Act of 1999 shall be vested in and
8exercised by the State Treasurer or the Commissioner of Banks
9and Real Estate subject to the provisions of this amendatory
10Act of 1999. An act done by the State Treasurer or the
11Commissioner of Banks and Real Estate or an officer, employee,
12or agent of the State Treasurer or the Commissioner of Banks
13and Real Estate in the exercise of the transferred rights,
14powers, duties, or functions shall have the same legal effect
15as if done by the Department of Financial Institutions or an
16officer, employee, or agent of the Department of Financial
17Institutions prior to the effective date of this amendatory Act
18of 1999.
19    (b) The transfer of rights, powers, duties, and functions
20to the State Treasurer or the Commissioner of Banks and Real
21Estate under this amendatory Act of 1999 does not invalidate
22any previous action taken by or in respect to the Department of
23Financial Institutions or its officers, employees, or agents.
24References to the Department of Financial Institutions or its
25officers, employees or agents in any document, contract,

 

 

10000SB0009ham002- 126 -LRB100 06347 HLH 27841 a

1agreement, or law shall, in appropriate contexts, be deemed to
2refer to the State Treasurer or the Commissioner of Banks and
3Real Estate or the officers, employees, or agents of the State
4Treasurer or the Commissioner of Banks and Real Estate.
5    (c) The transfer of rights, powers, duties, and functions
6from the Department of Financial Institutions to the State
7Treasurer or the Commissioner of Banks and Real Estate under
8this amendatory Act of 1999 does not affect the rights,
9obligations, or duties of any other person or entity, including
10any civil or criminal penalties applicable thereto, arising out
11of those transferred rights, powers, duties, and functions.
12    (d) With respect to matters that pertain to a right, power,
13duty, or function transferred to the State Treasurer under this
14amendatory Act of 1999:
15        (1) Beginning July 1, 1999, any report or notice that
16    was previously required to be made or given by any person
17    to the Department of Financial Institutions or any of its
18    officers, employees, or agents under the Uniform
19    Disposition of Unclaimed Property Act (superseded by the
20    Revised Uniform Unclaimed Property Act) or rules
21    promulgated pursuant to that Act shall be made or given in
22    the same manner to the State Treasurer or his or her
23    appropriate officer, employee, or agent.
24        (2) Beginning July 1, 1999, any document that was
25    previously required to be furnished or served by any person
26    to or upon the Department of Financial Institutions or any

 

 

10000SB0009ham002- 127 -LRB100 06347 HLH 27841 a

1    of its officers, employees, or agents under the Uniform
2    Disposition of Unclaimed Property Act (superseded by the
3    Revised Uniform Unclaimed Property Act) or rules
4    promulgated pursuant to that Act shall be furnished or
5    served in the same manner to or upon the State Treasurer or
6    his or her appropriate officer, employee, or agent.
7    (e) This amendatory Act of 1999 does not affect any act
8done, ratified, or canceled, any right occurring or
9established, or any action or proceeding had or commenced in an
10administrative, civil, or criminal cause before July 1, 1999.
11Any such action or proceeding that pertains to the Uniform
12Disposition of Unclaimed Property Act (superseded by the
13Revised Uniform Unclaimed Property Act) or rules promulgated
14pursuant to that Act and that is pending on that date may be
15prosecuted, defended, or continued by the State Treasurer.
16(Source: P.A. 91-16, eff. 6-4-99.)
 
17    Section 17-30. The Financial Institutions Code is amended
18by changing Sections 7 and 18.1 as follows:
 
19    (20 ILCS 1205/7)  (from Ch. 17, par. 108)
20    Sec. 7. The provisions of "The Illinois Administrative
21Procedure Act", as now or hereafter amended, are hereby
22expressly adopted and incorporated herein as though a part of
23this Act, and shall apply to all administrative rules and
24procedures of the Director and the Department of Financial

 

 

10000SB0009ham002- 128 -LRB100 06347 HLH 27841 a

1Institutions under this Act, except that the provisions of the
2Administrative Procedure Act regarding contested cases shall
3not apply to actions of the Director under Section 15.1 of "An
4Act in relation to the definition, licensing and regulation of
5community currency exchanges and ambulatory currency
6exchanges, and the operators and employees thereof, and to make
7an appropriation therefor, and to provide penalties and
8remedies for the violation thereof", approved June 30, 1943, as
9amended, or Sections 8 and 61 of "The Illinois Credit Union
10Act", or to hearings under Section 20 of the "Uniform
11Disposition of Unclaimed Property Act".
12(Source: P.A. 81-329.)
 
13    (20 ILCS 1205/18.1)
14    Sec. 18.1. Transfer of administration of Uniform
15Disposition of Unclaimed Property Act to State Treasurer. The
16rights, powers, duties, and functions vested in the Department
17of Financial Institutions to administer the Uniform
18Disposition of Unclaimed Property Act (superseded by the
19Revised Uniform Unclaimed Property Act) are transferred to the
20State Treasurer on July 1, 1999 in accordance with Sections
210.02 through 0.06 of the State Treasurer Act; provided,
22however, that the rights, powers, duties, and functions
23involving the examination of the records of any person that the
24State Treasurer has reason to believe has failed to report
25properly under this Act shall be transferred to the Office of

 

 

10000SB0009ham002- 129 -LRB100 06347 HLH 27841 a

1Banks and Real Estate if the person is regulated by the Office
2of Banks and Real Estate under the Illinois Banking Act, the
3Corporate Fiduciary Act, the Foreign Banking Office Act, the
4Illinois Savings and Loan Act of 1985, or the Savings Bank Act
5and shall be retained by the Department of Financial
6Institutions if the person is doing business in the State under
7the supervision of the Department of Financial Institutions,
8the National Credit Union Administration, the Office of Thrift
9Supervision, or the Comptroller of the Currency.
10(Source: P.A. 91-16, eff. 6-4-99.)
 
11    Section 17-35. The State Finance Act is amended by changing
12Sections 6b-1 and 8.12 as follows:
 
13    (30 ILCS 105/6b-1)  (from Ch. 127, par. 142b1)
14    Sec. 6b-1. There shall be paid into the State Pensions Fund
15the funds and proceeds from the sale of abandoned property as
16provided in Section 18 of the Revised Uniform "Uniform
17Disposition of Unclaimed Property Act", enacted by the
18Seventy-second General Assembly.
19(Source: Laws 1961, p. 3423.)
 
20    (30 ILCS 105/8.12)   (from Ch. 127, par. 144.12)
21    Sec. 8.12. State Pensions Fund.
22    (a) The moneys in the State Pensions Fund shall be used
23exclusively for the administration of the Revised Uniform

 

 

10000SB0009ham002- 130 -LRB100 06347 HLH 27841 a

1Disposition of Unclaimed Property Act and for the expenses
2incurred by the Auditor General for administering the
3provisions of Section 2-8.1 of the Illinois State Auditing Act
4and for operational expenses of the Office of the State
5Treasurer and for the funding of the unfunded liabilities of
6the designated retirement systems. Beginning in State fiscal
7year 2018, payments to the designated retirement systems under
8this Section shall be in addition to, and not in lieu of, any
9State contributions required under the Illinois Pension Code.
10    "Designated retirement systems" means:
11        (1) the State Employees' Retirement System of
12    Illinois;
13        (2) the Teachers' Retirement System of the State of
14    Illinois;
15        (3) the State Universities Retirement System;
16        (4) the Judges Retirement System of Illinois; and
17        (5) the General Assembly Retirement System.
18    (b) Each year the General Assembly may make appropriations
19from the State Pensions Fund for the administration of the
20Revised Uniform Disposition of Unclaimed Property Act.
21    Each month, the Commissioner of the Office of Banks and
22Real Estate shall certify to the State Treasurer the actual
23expenditures that the Office of Banks and Real Estate incurred
24conducting unclaimed property examinations under the Uniform
25Disposition of Unclaimed Property Act during the immediately
26preceding month. Within a reasonable time following the

 

 

10000SB0009ham002- 131 -LRB100 06347 HLH 27841 a

1acceptance of such certification by the State Treasurer, the
2State Treasurer shall pay from its appropriation from the State
3Pensions Fund to the Bank and Trust Company Fund, the Savings
4Bank Regulatory Fund, and the Residential Finance Regulatory
5Fund an amount equal to the expenditures incurred by each Fund
6for that month.
7    Each month, the Director of Financial Institutions shall
8certify to the State Treasurer the actual expenditures that the
9Department of Financial Institutions incurred conducting
10unclaimed property examinations under the Uniform Disposition
11of Unclaimed Property Act during the immediately preceding
12month. Within a reasonable time following the acceptance of
13such certification by the State Treasurer, the State Treasurer
14shall pay from its appropriation from the State Pensions Fund
15to the Financial Institution Fund and the Credit Union Fund an
16amount equal to the expenditures incurred by each Fund for that
17month.
18    (c) As soon as possible after the effective date of this
19amendatory Act of the 93rd General Assembly, the General
20Assembly shall appropriate from the State Pensions Fund (1) to
21the State Universities Retirement System the amount certified
22under Section 15-165 during the prior year, (2) to the Judges
23Retirement System of Illinois the amount certified under
24Section 18-140 during the prior year, and (3) to the General
25Assembly Retirement System the amount certified under Section
262-134 during the prior year as part of the required State

 

 

10000SB0009ham002- 132 -LRB100 06347 HLH 27841 a

1contributions to each of those designated retirement systems;
2except that amounts appropriated under this subsection (c) in
3State fiscal year 2005 shall not reduce the amount in the State
4Pensions Fund below $5,000,000. If the amount in the State
5Pensions Fund does not exceed the sum of the amounts certified
6in Sections 15-165, 18-140, and 2-134 by at least $5,000,000,
7the amount paid to each designated retirement system under this
8subsection shall be reduced in proportion to the amount
9certified by each of those designated retirement systems.
10    (c-5) For fiscal years 2006 through 2017, the General
11Assembly shall appropriate from the State Pensions Fund to the
12State Universities Retirement System the amount estimated to be
13available during the fiscal year in the State Pensions Fund;
14provided, however, that the amounts appropriated under this
15subsection (c-5) shall not reduce the amount in the State
16Pensions Fund below $5,000,000.
17    (c-6) For fiscal year 2018 and each fiscal year thereafter,
18as soon as may be practical after any money is deposited into
19the State Pensions Fund from the Unclaimed Property Trust Fund,
20the State Treasurer shall apportion the deposited amount among
21the designated retirement systems as defined in subsection (a)
22to reduce their actuarial reserve deficiencies. The State
23Comptroller and State Treasurer shall pay the apportioned
24amounts to the designated retirement systems to fund the
25unfunded liabilities of the designated retirement systems. The
26amount apportioned to each designated retirement system shall

 

 

10000SB0009ham002- 133 -LRB100 06347 HLH 27841 a

1constitute a portion of the amount estimated to be available
2for appropriation from the State Pensions Fund that is the same
3as that retirement system's portion of the total actual reserve
4deficiency of the systems, as determined annually by the
5Governor's Office of Management and Budget at the request of
6the State Treasurer. The amounts apportioned under this
7subsection shall not reduce the amount in the State Pensions
8Fund below $5,000,000.
9    (d) The Governor's Office of Management and Budget shall
10determine the individual and total reserve deficiencies of the
11designated retirement systems. For this purpose, the
12Governor's Office of Management and Budget shall utilize the
13latest available audit and actuarial reports of each of the
14retirement systems and the relevant reports and statistics of
15the Public Employee Pension Fund Division of the Department of
16Insurance.
17    (d-1) As soon as practicable after the effective date of
18this amendatory Act of the 93rd General Assembly, the
19Comptroller shall direct and the Treasurer shall transfer from
20the State Pensions Fund to the General Revenue Fund, as funds
21become available, a sum equal to the amounts that would have
22been paid from the State Pensions Fund to the Teachers'
23Retirement System of the State of Illinois, the State
24Universities Retirement System, the Judges Retirement System
25of Illinois, the General Assembly Retirement System, and the
26State Employees' Retirement System of Illinois after the

 

 

10000SB0009ham002- 134 -LRB100 06347 HLH 27841 a

1effective date of this amendatory Act during the remainder of
2fiscal year 2004 to the designated retirement systems from the
3appropriations provided for in this Section if the transfers
4provided in Section 6z-61 had not occurred. The transfers
5described in this subsection (d-1) are to partially repay the
6General Revenue Fund for the costs associated with the bonds
7used to fund the moneys transferred to the designated
8retirement systems under Section 6z-61.
9    (e) The changes to this Section made by this amendatory Act
10of 1994 shall first apply to distributions from the Fund for
11State fiscal year 1996.
12(Source: P.A. 98-24, eff. 6-19-13; 98-463, eff. 8-16-13;
1398-674, eff. 6-30-14; 98-1081, eff. 1-1-15; 99-8, eff. 7-9-15;
1499-78, eff. 7-20-15; 99-523, eff. 6-30-16.)
 
15    Section 17-40. The State Officers and Employees Money
16Disposition Act is amended by changing Section 2 as follows:
 
17    (30 ILCS 230/2)  (from Ch. 127, par. 171)
18    Sec. 2. Accounts of money received; payment into State
19treasury.
20    (a) Every officer, board, commission, commissioner,
21department, institution, arm or agency brought within the
22provisions of this Act by Section 1 shall keep in proper books
23a detailed itemized account of all moneys received for or on
24behalf of the State of Illinois, showing the date of receipt,

 

 

10000SB0009ham002- 135 -LRB100 06347 HLH 27841 a

1the payor, and purpose and amount, and the date and manner of
2disbursement as hereinafter provided, and, unless a different
3time of payment is expressly provided by law or by rules or
4regulations promulgated under subsection (b) of this Section,
5shall pay into the State treasury the gross amount of money so
6received on the day of actual physical receipt with respect to
7any single item of receipt exceeding $10,000, within 24 hours
8of actual physical receipt with respect to an accumulation of
9receipts of $10,000 or more, or within 48 hours of actual
10physical receipt with respect to an accumulation of receipts
11exceeding $500 but less than $10,000, disregarding holidays,
12Saturdays and Sundays, after the receipt of same, without any
13deduction on account of salaries, fees, costs, charges,
14expenses or claims of any description whatever; provided that:
15        (1) the provisions of (i) Section 2505-475 of the
16    Department of Revenue Law (20 ILCS 2505/2505-475), (ii) any
17    specific taxing statute authorizing a claim for credit
18    procedure instead of the actual making of refunds, (iii)
19    Section 505 of the Illinois Controlled Substances Act, (iv)
20    Section 85 of the Methamphetamine Control and Community
21    Protection Act, authorizing the Director of State Police to
22    dispose of forfeited property, which includes the sale and
23    disposition of the proceeds of the sale of forfeited
24    property, and the Department of Central Management
25    Services to be reimbursed for costs incurred with the sales
26    of forfeited vehicles, boats or aircraft and to pay to bona

 

 

10000SB0009ham002- 136 -LRB100 06347 HLH 27841 a

1    fide or innocent purchasers, conditional sales vendors or
2    mortgagees of such vehicles, boats or aircraft their
3    interest in such vehicles, boats or aircraft, and (v)
4    Section 6b-2 of the State Finance Act, establishing
5    procedures for handling cash receipts from the sale of
6    pari-mutuel wagering tickets, shall not be deemed to be in
7    conflict with the requirements of this Section;
8        (2) any fees received by the State Registrar of Vital
9    Records pursuant to the Vital Records Act which are
10    insufficient in amount may be returned by the Registrar as
11    provided in that Act;
12        (3) any fees received by the Department of Public
13    Health under the Food Handling Regulation Enforcement Act
14    that are submitted for renewal of an expired food service
15    sanitation manager certificate may be returned by the
16    Director as provided in that Act;
17        (3.5) the State Treasurer may permit the deduction of
18    fees by third-party unclaimed property examiners from the
19    property recovered by the examiners for the State of
20    Illinois during examinations of holders located outside
21    the State under which the Office of the Treasurer has
22    agreed to pay for the examinations based upon a percentage,
23    set by rule by the State Treasurer in accordance with the
24    Revised Uniform Unclaimed Property Illinois Administrative
25    Procedure Act, of the property recovered during the
26    examination; and

 

 

10000SB0009ham002- 137 -LRB100 06347 HLH 27841 a

1        (4) if the amount of money received does not exceed
2    $500, such money may be retained and need not be paid into
3    the State treasury until the total amount of money so
4    received exceeds $500, or until the next succeeding 1st or
5    15th day of each month (or until the next business day if
6    these days fall on Sunday or a holiday), whichever is
7    earlier, at which earlier time such money shall be paid
8    into the State treasury, except that if a local bank or
9    savings and loan association account has been authorized by
10    law, any balances shall be paid into the State treasury on
11    Monday of each week if more than $500 is to be deposited in
12    any fund.
13Single items of receipt exceeding $10,000 received after 2 p.m.
14on a working day may be deemed to have been received on the
15next working day for purposes of fulfilling the requirement
16that the item be deposited on the day of actual physical
17receipt.
18    No money belonging to or left for the use of the State
19shall be expended or applied except in consequence of an
20appropriation made by law and upon the warrant of the State
21Comptroller. However, payments made by the Comptroller to
22persons by direct deposit need not be made upon the warrant of
23the Comptroller, but if not made upon a warrant, shall be made
24in accordance with Section 9.02 of the State Comptroller Act.
25All moneys so paid into the State treasury shall, unless
26required by some statute to be held in the State treasury in a

 

 

10000SB0009ham002- 138 -LRB100 06347 HLH 27841 a

1separate or special fund, be covered into the General Revenue
2Fund in the State treasury. Moneys received in the form of
3checks, drafts or similar instruments shall be properly
4endorsed, if necessary, and delivered to the State Treasurer
5for collection. The State Treasurer shall remit such collected
6funds to the depositing officer, board, commission,
7commissioner, department, institution, arm or agency by
8Treasurers Draft or through electronic funds transfer. The
9draft or notification of the electronic funds transfer shall be
10provided to the State Comptroller to allow deposit into the
11appropriate fund.
12    (b) Different time periods for the payment of public funds
13into the State treasury or to the State Treasurer, in excess of
14the periods established in subsection (a) of this Section, but
15not in excess of 30 days after receipt of such funds, may be
16established and revised from time to time by rules or
17regulations promulgated jointly by the State Treasurer and the
18State Comptroller in accordance with the Illinois
19Administrative Procedure Act. The different time periods
20established by rule or regulation under this subsection may
21vary according to the nature and amounts of the funds received,
22the locations at which the funds are received, whether
23compliance with the deposit requirements specified in
24subsection (a) of this Section would be cost effective, and
25such other circumstances and conditions as the promulgating
26authorities consider to be appropriate. The Treasurer and the

 

 

10000SB0009ham002- 139 -LRB100 06347 HLH 27841 a

1Comptroller shall review all such different time periods
2established pursuant to this subsection every 2 years from the
3establishment thereof and upon such review, unless it is
4determined that it is economically unfeasible for the agency to
5comply with the provisions of subsection (a), shall repeal such
6different time period.
7(Source: P.A. 94-556, eff. 9-11-05.)
 
8    Section 17-45. The Counties Code is amended by changing
9Section 3-3034 as follows:
 
10    (55 ILCS 5/3-3034)  (from Ch. 34, par. 3-3034)
11    Sec. 3-3034. Disposition of body. After the inquest the
12coroner may deliver the body or human remains of the deceased
13to the family of the deceased or, if there are no family
14members to accept the body or the remains, then to friends of
15the deceased, if there be any, but if not, the coroner shall
16cause the body or the remains to be decently buried, cremated,
17or donated for medical science purposes, the expenses to be
18paid from the property of the deceased, if there is sufficient,
19if not, by the county. The coroner may not approve the
20cremation or donation of the body if it is necessary to
21preserve the body for law enforcement purposes. If the State
22Treasurer, pursuant to the Revised Uniform Disposition of
23Unclaimed Property Act, delivers human remains to the coroner,
24the coroner shall cause the human remains to be disposed of as

 

 

10000SB0009ham002- 140 -LRB100 06347 HLH 27841 a

1provided in this Section. If the police department of any
2municipality or county investigates abandoned cremated
3remains, determines that they are human remains, and cannot
4locate the owner of the remains, then the police shall deliver
5the remains to the coroner, and the coroner shall cause the
6remains to be disposed of as provided in this Section.
7(Source: P.A. 96-1339, eff. 7-27-10; 97-679, eff. 2-6-12.)
 
8    Section 17-50. The Illinois Banking Act is amended by
9changing Sections 48, 48.1, 48.3, and 65 as follows:
 
10    (205 ILCS 5/48)
11    Sec. 48. Secretary's powers; duties. The Secretary shall
12have the powers and authority, and is charged with the duties
13and responsibilities designated in this Act, and a State bank
14shall not be subject to any other visitorial power other than
15as authorized by this Act, except those vested in the courts,
16or upon prior consultation with the Secretary, a foreign bank
17regulator with an appropriate supervisory interest in the
18parent or affiliate of a state bank. In the performance of the
19Secretary's duties:
20        (1) The Commissioner shall call for statements from all
21    State banks as provided in Section 47 at least one time
22    during each calendar quarter.
23        (2) (a) The Commissioner, as often as the Commissioner
24    shall deem necessary or proper, and no less frequently than

 

 

10000SB0009ham002- 141 -LRB100 06347 HLH 27841 a

1    18 months following the preceding examination, shall
2    appoint a suitable person or persons to make an examination
3    of the affairs of every State bank, except that for every
4    eligible State bank, as defined by regulation, the
5    Commissioner in lieu of the examination may accept on an
6    alternating basis the examination made by the eligible
7    State bank's appropriate federal banking agency pursuant
8    to Section 111 of the Federal Deposit Insurance Corporation
9    Improvement Act of 1991, provided the appropriate federal
10    banking agency has made such an examination. A person so
11    appointed shall not be a stockholder or officer or employee
12    of any bank which that person may be directed to examine,
13    and shall have powers to make a thorough examination into
14    all the affairs of the bank and in so doing to examine any
15    of the officers or agents or employees thereof on oath and
16    shall make a full and detailed report of the condition of
17    the bank to the Commissioner. In making the examination the
18    examiners shall include an examination of the affairs of
19    all the affiliates of the bank, as defined in subsection
20    (b) of Section 35.2 of this Act, or subsidiaries of the
21    bank as shall be necessary to disclose fully the conditions
22    of the subsidiaries or affiliates, the relations between
23    the bank and the subsidiaries or affiliates and the effect
24    of those relations upon the affairs of the bank, and in
25    connection therewith shall have power to examine any of the
26    officers, directors, agents, or employees of the

 

 

10000SB0009ham002- 142 -LRB100 06347 HLH 27841 a

1    subsidiaries or affiliates on oath. After May 31, 1997, the
2    Commissioner may enter into cooperative agreements with
3    state regulatory authorities of other states to provide for
4    examination of State bank branches in those states, and the
5    Commissioner may accept reports of examinations of State
6    bank branches from those state regulatory authorities.
7    These cooperative agreements may set forth the manner in
8    which the other state regulatory authorities may be
9    compensated for examinations prepared for and submitted to
10    the Commissioner.
11        (b) After May 31, 1997, the Commissioner is authorized
12    to examine, as often as the Commissioner shall deem
13    necessary or proper, branches of out-of-state banks. The
14    Commissioner may establish and may assess fees to be paid
15    to the Commissioner for examinations under this subsection
16    (b). The fees shall be borne by the out-of-state bank,
17    unless the fees are borne by the state regulatory authority
18    that chartered the out-of-state bank, as determined by a
19    cooperative agreement between the Commissioner and the
20    state regulatory authority that chartered the out-of-state
21    bank.
22        (2.1) Pursuant to paragraph (a) of subsection (6) of
23    this Section, the Secretary shall adopt rules that ensure
24    consistency and due process in the examination process. The
25    Secretary may also establish guidelines that (i) define the
26    scope of the examination process and (ii) clarify

 

 

10000SB0009ham002- 143 -LRB100 06347 HLH 27841 a

1    examination items to be resolved. The rules, formal
2    guidance, interpretive letters, or opinions furnished to
3    State banks by the Secretary may be relied upon by the
4    State banks.
5        (2.5) Whenever any State bank, any subsidiary or
6    affiliate of a State bank, or after May 31, 1997, any
7    branch of an out-of-state bank causes to be performed, by
8    contract or otherwise, any bank services for itself,
9    whether on or off its premises:
10            (a) that performance shall be subject to
11        examination by the Commissioner to the same extent as
12        if services were being performed by the bank or, after
13        May 31, 1997, branch of the out-of-state bank itself on
14        its own premises; and
15            (b) the bank or, after May 31, 1997, branch of the
16        out-of-state bank shall notify the Commissioner of the
17        existence of a service relationship. The notification
18        shall be submitted with the first statement of
19        condition (as required by Section 47 of this Act) due
20        after the making of the service contract or the
21        performance of the service, whichever occurs first.
22        The Commissioner shall be notified of each subsequent
23        contract in the same manner.
24        For purposes of this subsection (2.5), the term "bank
25    services" means services such as sorting and posting of
26    checks and deposits, computation and posting of interest

 

 

10000SB0009ham002- 144 -LRB100 06347 HLH 27841 a

1    and other credits and charges, preparation and mailing of
2    checks, statements, notices, and similar items, or any
3    other clerical, bookkeeping, accounting, statistical, or
4    similar functions performed for a State bank, including but
5    not limited to electronic data processing related to those
6    bank services.
7        (3) The expense of administering this Act, including
8    the expense of the examinations of State banks as provided
9    in this Act, shall to the extent of the amounts resulting
10    from the fees provided for in paragraphs (a), (a-2), and
11    (b) of this subsection (3) be assessed against and borne by
12    the State banks:
13            (a) Each bank shall pay to the Secretary a Call
14        Report Fee which shall be paid in quarterly
15        installments equal to one-fourth of the sum of the
16        annual fixed fee of $800, plus a variable fee based on
17        the assets shown on the quarterly statement of
18        condition delivered to the Secretary in accordance
19        with Section 47 for the preceding quarter according to
20        the following schedule: 16 per $1,000 of the first
21        $5,000,000 of total assets, 15 per $1,000 of the next
22        $20,000,000 of total assets, 13 per $1,000 of the next
23        $75,000,000 of total assets, 9 per $1,000 of the next
24        $400,000,000 of total assets, 7 per $1,000 of the next
25        $500,000,000 of total assets, and 5 per $1,000 of all
26        assets in excess of $1,000,000,000, of the State bank.

 

 

10000SB0009ham002- 145 -LRB100 06347 HLH 27841 a

1        The Call Report Fee shall be calculated by the
2        Secretary and billed to the banks for remittance at the
3        time of the quarterly statements of condition provided
4        for in Section 47. The Secretary may require payment of
5        the fees provided in this Section by an electronic
6        transfer of funds or an automatic debit of an account
7        of each of the State banks. In case more than one
8        examination of any bank is deemed by the Secretary to
9        be necessary in any examination frequency cycle
10        specified in subsection 2(a) of this Section, and is
11        performed at his direction, the Secretary may assess a
12        reasonable additional fee to recover the cost of the
13        additional examination; provided, however, that an
14        examination conducted at the request of the State
15        Treasurer pursuant to the Uniform Disposition of
16        Unclaimed Property Act shall not be deemed to be an
17        additional examination under this Section. In lieu of
18        the method and amounts set forth in this paragraph (a)
19        for the calculation of the Call Report Fee, the
20        Secretary may specify by rule that the Call Report Fees
21        provided by this Section may be assessed semiannually
22        or some other period and may provide in the rule the
23        formula to be used for calculating and assessing the
24        periodic Call Report Fees to be paid by State banks.
25            (a-1) If in the opinion of the Commissioner an
26        emergency exists or appears likely, the Commissioner

 

 

10000SB0009ham002- 146 -LRB100 06347 HLH 27841 a

1        may assign an examiner or examiners to monitor the
2        affairs of a State bank with whatever frequency he
3        deems appropriate, including but not limited to a daily
4        basis. The reasonable and necessary expenses of the
5        Commissioner during the period of the monitoring shall
6        be borne by the subject bank. The Commissioner shall
7        furnish the State bank a statement of time and expenses
8        if requested to do so within 30 days of the conclusion
9        of the monitoring period.
10            (a-2) On and after January 1, 1990, the reasonable
11        and necessary expenses of the Commissioner during
12        examination of the performance of electronic data
13        processing services under subsection (2.5) shall be
14        borne by the banks for which the services are provided.
15        An amount, based upon a fee structure prescribed by the
16        Commissioner, shall be paid by the banks or, after May
17        31, 1997, branches of out-of-state banks receiving the
18        electronic data processing services along with the
19        Call Report Fee assessed under paragraph (a) of this
20        subsection (3).
21            (a-3) After May 31, 1997, the reasonable and
22        necessary expenses of the Commissioner during
23        examination of the performance of electronic data
24        processing services under subsection (2.5) at or on
25        behalf of branches of out-of-state banks shall be borne
26        by the out-of-state banks, unless those expenses are

 

 

10000SB0009ham002- 147 -LRB100 06347 HLH 27841 a

1        borne by the state regulatory authorities that
2        chartered the out-of-state banks, as determined by
3        cooperative agreements between the Commissioner and
4        the state regulatory authorities that chartered the
5        out-of-state banks.
6            (b) "Fiscal year" for purposes of this Section 48
7        is defined as a period beginning July 1 of any year and
8        ending June 30 of the next year. The Commissioner shall
9        receive for each fiscal year, commencing with the
10        fiscal year ending June 30, 1987, a contingent fee
11        equal to the lesser of the aggregate of the fees paid
12        by all State banks under paragraph (a) of subsection
13        (3) for that year, or the amount, if any, whereby the
14        aggregate of the administration expenses, as defined
15        in paragraph (c), for that fiscal year exceeds the sum
16        of the aggregate of the fees payable by all State banks
17        for that year under paragraph (a) of subsection (3),
18        plus any amounts transferred into the Bank and Trust
19        Company Fund from the State Pensions Fund for that
20        year, plus all other amounts collected by the
21        Commissioner for that year under any other provision of
22        this Act, plus the aggregate of all fees collected for
23        that year by the Commissioner under the Corporate
24        Fiduciary Act, excluding the receivership fees
25        provided for in Section 5-10 of the Corporate Fiduciary
26        Act, and the Foreign Banking Office Act. The aggregate

 

 

10000SB0009ham002- 148 -LRB100 06347 HLH 27841 a

1        amount of the contingent fee thus arrived at for any
2        fiscal year shall be apportioned amongst, assessed
3        upon, and paid by the State banks and foreign banking
4        corporations, respectively, in the same proportion
5        that the fee of each under paragraph (a) of subsection
6        (3), respectively, for that year bears to the aggregate
7        for that year of the fees collected under paragraph (a)
8        of subsection (3). The aggregate amount of the
9        contingent fee, and the portion thereof to be assessed
10        upon each State bank and foreign banking corporation,
11        respectively, shall be determined by the Commissioner
12        and shall be paid by each, respectively, within 120
13        days of the close of the period for which the
14        contingent fee is computed and is payable, and the
15        Commissioner shall give 20 days' days advance notice of
16        the amount of the contingent fee payable by the State
17        bank and of the date fixed by the Commissioner for
18        payment of the fee.
19            (c) The "administration expenses" for any fiscal
20        year shall mean the ordinary and contingent expenses
21        for that year incident to making the examinations
22        provided for by, and for otherwise administering, this
23        Act, the Corporate Fiduciary Act, excluding the
24        expenses paid from the Corporate Fiduciary
25        Receivership account in the Bank and Trust Company
26        Fund, the Foreign Banking Office Act, the Electronic

 

 

10000SB0009ham002- 149 -LRB100 06347 HLH 27841 a

1        Fund Transfer Act, and the Illinois Bank Examiners'
2        Education Foundation Act, including all salaries and
3        other compensation paid for personal services rendered
4        for the State by officers or employees of the State,
5        including the Commissioner and the Deputy
6        Commissioners, communication equipment and services,
7        office furnishings, surety bond premiums, and travel
8        expenses of those officers and employees, employees,
9        expenditures or charges for the acquisition,
10        enlargement or improvement of, or for the use of, any
11        office space, building, or structure, or expenditures
12        for the maintenance thereof or for furnishing heat,
13        light, or power with respect thereto, all to the extent
14        that those expenditures are directly incidental to
15        such examinations or administration. The Commissioner
16        shall not be required by paragraphs (c) or (d-1) of
17        this subsection (3) to maintain in any fiscal year's
18        budget appropriated reserves for accrued vacation and
19        accrued sick leave that is required to be paid to
20        employees of the Commissioner upon termination of
21        their service with the Commissioner in an amount that
22        is more than is reasonably anticipated to be necessary
23        for any anticipated turnover in employees, whether due
24        to normal attrition or due to layoffs, terminations, or
25        resignations.
26            (d) The aggregate of all fees collected by the

 

 

10000SB0009ham002- 150 -LRB100 06347 HLH 27841 a

1        Secretary under this Act, the Corporate Fiduciary Act,
2        or the Foreign Banking Office Act on and after July 1,
3        1979, shall be paid promptly after receipt of the same,
4        accompanied by a detailed statement thereof, into the
5        State treasury and shall be set apart in a special fund
6        to be known as the "Bank and Trust Company Fund",
7        except as provided in paragraph (c) of subsection (11)
8        of this Section. All earnings received from
9        investments of funds in the Bank and Trust Company Fund
10        shall be deposited in the Bank and Trust Company Fund
11        and may be used for the same purposes as fees deposited
12        in that Fund. The amount from time to time deposited
13        into the Bank and Trust Company Fund shall be used: (i)
14        to offset the ordinary administrative expenses of the
15        Secretary as defined in this Section or (ii) as a
16        credit against fees under paragraph (d-1) of this
17        subsection (3). Nothing in this amendatory Act of 1979
18        shall prevent continuing the practice of paying
19        expenses involving salaries, retirement, social
20        security, and State-paid insurance premiums of State
21        officers by appropriations from the General Revenue
22        Fund. However, the General Revenue Fund shall be
23        reimbursed for those payments made on and after July 1,
24        1979, by an annual transfer of funds from the Bank and
25        Trust Company Fund. Moneys in the Bank and Trust
26        Company Fund may be transferred to the Professions

 

 

10000SB0009ham002- 151 -LRB100 06347 HLH 27841 a

1        Indirect Cost Fund, as authorized under Section
2        2105-300 of the Department of Professional Regulation
3        Law of the Civil Administrative Code of Illinois.
4            Notwithstanding provisions in the State Finance
5        Act, as now or hereafter amended, or any other law to
6        the contrary, the sum of $18,788,847 shall be
7        transferred from the Bank and Trust Company Fund to the
8        Financial Institutions Settlement of 2008 Fund on the
9        effective date of this amendatory Act of the 95th
10        General Assembly, or as soon thereafter as practical.
11            Notwithstanding provisions in the State Finance
12        Act, as now or hereafter amended, or any other law to
13        the contrary, the Governor may, during any fiscal year
14        through January 10, 2011, from time to time direct the
15        State Treasurer and Comptroller to transfer a
16        specified sum not exceeding 10% of the revenues to be
17        deposited into the Bank and Trust Company Fund during
18        that fiscal year from that Fund to the General Revenue
19        Fund in order to help defray the State's operating
20        costs for the fiscal year. Notwithstanding provisions
21        in the State Finance Act, as now or hereafter amended,
22        or any other law to the contrary, the total sum
23        transferred during any fiscal year through January 10,
24        2011, from the Bank and Trust Company Fund to the
25        General Revenue Fund pursuant to this provision shall
26        not exceed during any fiscal year 10% of the revenues

 

 

10000SB0009ham002- 152 -LRB100 06347 HLH 27841 a

1        to be deposited into the Bank and Trust Company Fund
2        during that fiscal year. The State Treasurer and
3        Comptroller shall transfer the amounts designated
4        under this Section as soon as may be practicable after
5        receiving the direction to transfer from the Governor.
6            (d-1) Adequate funds shall be available in the Bank
7        and Trust Company Fund to permit the timely payment of
8        administration expenses. In each fiscal year the total
9        administration expenses shall be deducted from the
10        total fees collected by the Commissioner and the
11        remainder transferred into the Cash Flow Reserve
12        Account, unless the balance of the Cash Flow Reserve
13        Account prior to the transfer equals or exceeds
14        one-fourth of the total initial appropriations from
15        the Bank and Trust Company Fund for the subsequent
16        year, in which case the remainder shall be credited to
17        State banks and foreign banking corporations and
18        applied against their fees for the subsequent year. The
19        amount credited to each State bank and foreign banking
20        corporation shall be in the same proportion as the Call
21        Report Fees paid by each for the year bear to the total
22        Call Report Fees collected for the year. If, after a
23        transfer to the Cash Flow Reserve Account is made or if
24        no remainder is available for transfer, the balance of
25        the Cash Flow Reserve Account is less than one-fourth
26        of the total initial appropriations for the subsequent

 

 

10000SB0009ham002- 153 -LRB100 06347 HLH 27841 a

1        year and the amount transferred is less than 5% of the
2        total Call Report Fees for the year, additional amounts
3        needed to make the transfer equal to 5% of the total
4        Call Report Fees for the year shall be apportioned
5        amongst, assessed upon, and paid by the State banks and
6        foreign banking corporations in the same proportion
7        that the Call Report Fees of each, respectively, for
8        the year bear to the total Call Report Fees collected
9        for the year. The additional amounts assessed shall be
10        transferred into the Cash Flow Reserve Account. For
11        purposes of this paragraph (d-1), the calculation of
12        the fees collected by the Commissioner shall exclude
13        the receivership fees provided for in Section 5-10 of
14        the Corporate Fiduciary Act.
15            (e) The Commissioner may upon request certify to
16        any public record in his keeping and shall have
17        authority to levy a reasonable charge for issuing
18        certifications of any public record in his keeping.
19            (f) In addition to fees authorized elsewhere in
20        this Act, the Commissioner may, in connection with a
21        review, approval, or provision of a service, levy a
22        reasonable charge to recover the cost of the review,
23        approval, or service.
24        (4) Nothing contained in this Act shall be construed to
25    limit the obligation relative to examinations and reports
26    of any State bank, deposits in which are to any extent

 

 

10000SB0009ham002- 154 -LRB100 06347 HLH 27841 a

1    insured by the United States or any agency thereof, nor to
2    limit in any way the powers of the Commissioner with
3    reference to examinations and reports of that bank.
4        (5) The nature and condition of the assets in or
5    investment of any bonus, pension, or profit sharing plan
6    for officers or employees of every State bank or, after May
7    31, 1997, branch of an out-of-state bank shall be deemed to
8    be included in the affairs of that State bank or branch of
9    an out-of-state bank subject to examination by the
10    Commissioner under the provisions of subsection (2) of this
11    Section, and if the Commissioner shall find from an
12    examination that the condition of or operation of the
13    investments or assets of the plan is unlawful, fraudulent,
14    or unsafe, or that any trustee has abused his trust, the
15    Commissioner shall, if the situation so found by the
16    Commissioner shall not be corrected to his satisfaction
17    within 60 days after the Commissioner has given notice to
18    the board of directors of the State bank or out-of-state
19    bank of his findings, report the facts to the Attorney
20    General who shall thereupon institute proceedings against
21    the State bank or out-of-state bank, the board of directors
22    thereof, or the trustees under such plan as the nature of
23    the case may require.
24        (6) The Commissioner shall have the power:
25            (a) To promulgate reasonable rules for the purpose
26        of administering the provisions of this Act.

 

 

10000SB0009ham002- 155 -LRB100 06347 HLH 27841 a

1            (a-5) To impose conditions on any approval issued
2        by the Commissioner if he determines that the
3        conditions are necessary or appropriate. These
4        conditions shall be imposed in writing and shall
5        continue in effect for the period prescribed by the
6        Commissioner.
7            (b) To issue orders against any person, if the
8        Commissioner has reasonable cause to believe that an
9        unsafe or unsound banking practice has occurred, is
10        occurring, or is about to occur, if any person has
11        violated, is violating, or is about to violate any law,
12        rule, or written agreement with the Commissioner, or
13        for the purpose of administering the provisions of this
14        Act and any rule promulgated in accordance with this
15        Act.
16            (b-1) To enter into agreements with a bank
17        establishing a program to correct the condition of the
18        bank or its practices.
19            (c) To appoint hearing officers to execute any of
20        the powers granted to the Commissioner under this
21        Section for the purpose of administering this Act and
22        any rule promulgated in accordance with this Act and
23        otherwise to authorize, in writing, an officer or
24        employee of the Office of Banks and Real Estate to
25        exercise his powers under this Act.
26            (d) To subpoena witnesses, to compel their

 

 

10000SB0009ham002- 156 -LRB100 06347 HLH 27841 a

1        attendance, to administer an oath, to examine any
2        person under oath, and to require the production of any
3        relevant books, papers, accounts, and documents in the
4        course of and pursuant to any investigation being
5        conducted, or any action being taken, by the
6        Commissioner in respect of any matter relating to the
7        duties imposed upon, or the powers vested in, the
8        Commissioner under the provisions of this Act or any
9        rule promulgated in accordance with this Act.
10            (e) To conduct hearings.
11        (7) Whenever, in the opinion of the Secretary, any
12    director, officer, employee, or agent of a State bank or
13    any subsidiary or bank holding company of the bank or,
14    after May 31, 1997, of any branch of an out-of-state bank
15    or any subsidiary or bank holding company of the bank shall
16    have violated any law, rule, or order relating to that bank
17    or any subsidiary or bank holding company of the bank,
18    shall have obstructed or impeded any examination or
19    investigation by the Secretary, shall have engaged in an
20    unsafe or unsound practice in conducting the business of
21    that bank or any subsidiary or bank holding company of the
22    bank, or shall have violated any law or engaged or
23    participated in any unsafe or unsound practice in
24    connection with any financial institution or other
25    business entity such that the character and fitness of the
26    director, officer, employee, or agent does not assure

 

 

10000SB0009ham002- 157 -LRB100 06347 HLH 27841 a

1    reasonable promise of safe and sound operation of the State
2    bank, the Secretary may issue an order of removal. If, in
3    the opinion of the Secretary, any former director, officer,
4    employee, or agent of a State bank or any subsidiary or
5    bank holding company of the bank, prior to the termination
6    of his or her service with that bank or any subsidiary or
7    bank holding company of the bank, violated any law, rule,
8    or order relating to that State bank or any subsidiary or
9    bank holding company of the bank, obstructed or impeded any
10    examination or investigation by the Secretary, engaged in
11    an unsafe or unsound practice in conducting the business of
12    that bank or any subsidiary or bank holding company of the
13    bank, or violated any law or engaged or participated in any
14    unsafe or unsound practice in connection with any financial
15    institution or other business entity such that the
16    character and fitness of the director, officer, employee,
17    or agent would not have assured reasonable promise of safe
18    and sound operation of the State bank, the Secretary may
19    issue an order prohibiting that person from further service
20    with a bank or any subsidiary or bank holding company of
21    the bank as a director, officer, employee, or agent. An
22    order issued pursuant to this subsection shall be served
23    upon the director, officer, employee, or agent. A copy of
24    the order shall be sent to each director of the bank
25    affected by registered mail. A copy of the order shall also
26    be served upon the bank of which he is a director, officer,

 

 

10000SB0009ham002- 158 -LRB100 06347 HLH 27841 a

1    employee, or agent, whereupon he shall cease to be a
2    director, officer, employee, or agent of that bank. The
3    Secretary may institute a civil action against the
4    director, officer, or agent of the State bank or, after May
5    31, 1997, of the branch of the out-of-state bank against
6    whom any order provided for by this subsection (7) of this
7    Section 48 has been issued, and against the State bank or,
8    after May 31, 1997, out-of-state bank, to enforce
9    compliance with or to enjoin any violation of the terms of
10    the order. Any person who has been the subject of an order
11    of removal or an order of prohibition issued by the
12    Secretary under this subsection or Section 5-6 of the
13    Corporate Fiduciary Act may not thereafter serve as
14    director, officer, employee, or agent of any State bank or
15    of any branch of any out-of-state bank, or of any corporate
16    fiduciary, as defined in Section 1-5.05 of the Corporate
17    Fiduciary Act, or of any other entity that is subject to
18    licensure or regulation by the Division of Banking unless
19    the Secretary has granted prior approval in writing.
20        For purposes of this paragraph (7), "bank holding
21    company" has the meaning prescribed in Section 2 of the
22    Illinois Bank Holding Company Act of 1957.
23        (8) The Commissioner may impose civil penalties of up
24    to $100,000 against any person for each violation of any
25    provision of this Act, any rule promulgated in accordance
26    with this Act, any order of the Commissioner, or any other

 

 

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1    action which in the Commissioner's discretion is an unsafe
2    or unsound banking practice.
3        (9) The Commissioner may impose civil penalties of up
4    to $100 against any person for the first failure to comply
5    with reporting requirements set forth in the report of
6    examination of the bank and up to $200 for the second and
7    subsequent failures to comply with those reporting
8    requirements.
9        (10) All final administrative decisions of the
10    Commissioner hereunder shall be subject to judicial review
11    pursuant to the provisions of the Administrative Review
12    Law. For matters involving administrative review, venue
13    shall be in either Sangamon County or Cook County.
14        (11) The endowment fund for the Illinois Bank
15    Examiners' Education Foundation shall be administered as
16    follows:
17            (a) (Blank).
18            (b) The Foundation is empowered to receive
19        voluntary contributions, gifts, grants, bequests, and
20        donations on behalf of the Illinois Bank Examiners'
21        Education Foundation from national banks and other
22        persons for the purpose of funding the endowment of the
23        Illinois Bank Examiners' Education Foundation.
24            (c) The aggregate of all special educational fees
25        collected by the Secretary and property received by the
26        Secretary on behalf of the Illinois Bank Examiners'

 

 

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1        Education Foundation under this subsection (11) on or
2        after June 30, 1986, shall be either (i) promptly paid
3        after receipt of the same, accompanied by a detailed
4        statement thereof, into the State Treasury and shall be
5        set apart in a special fund to be known as "The
6        Illinois Bank Examiners' Education Fund" to be
7        invested by either the Treasurer of the State of
8        Illinois in the Public Treasurers' Investment Pool or
9        in any other investment he is authorized to make or by
10        the Illinois State Board of Investment as the State
11        Banking Board of Illinois may direct or (ii) deposited
12        into an account maintained in a commercial bank or
13        corporate fiduciary in the name of the Illinois Bank
14        Examiners' Education Foundation pursuant to the order
15        and direction of the Board of Trustees of the Illinois
16        Bank Examiners' Education Foundation.
17        (12) (Blank).
18        (13) The Secretary may borrow funds from the General
19    Revenue Fund on behalf of the Bank and Trust Company Fund
20    if the Director of Banking certifies to the Governor that
21    there is an economic emergency affecting banking that
22    requires a borrowing to provide additional funds to the
23    Bank and Trust Company Fund. The borrowed funds shall be
24    paid back within 3 years and shall not exceed the total
25    funding appropriated to the Agency in the previous year.
26        (14) In addition to the fees authorized in this Act,

 

 

10000SB0009ham002- 161 -LRB100 06347 HLH 27841 a

1    the Secretary may assess reasonable receivership fees
2    against any State bank that does not maintain insurance
3    with the Federal Deposit Insurance Corporation. All fees
4    collected under this subsection (14) shall be paid into the
5    Non-insured Institutions Receivership account in the Bank
6    and Trust Company Fund, as established by the Secretary.
7    The fees assessed under this subsection (14) shall provide
8    for the expenses that arise from the administration of the
9    receivership of any such institution required to pay into
10    the Non-insured Institutions Receivership account, whether
11    pursuant to this Act, the Corporate Fiduciary Act, the
12    Foreign Banking Office Act, or any other Act that requires
13    payments into the Non-insured Institutions Receivership
14    account. The Secretary may establish by rule a reasonable
15    manner of assessing fees under this subsection (14).
16(Source: P.A. 98-784, eff. 7-24-14; 99-39, eff. 1-1-16.)
 
17    (205 ILCS 5/48.1)  (from Ch. 17, par. 360)
18    Sec. 48.1. Customer financial records; confidentiality.
19    (a) For the purpose of this Section, the term "financial
20records" means any original, any copy, or any summary of:
21        (1) a document granting signature authority over a
22    deposit or account;
23        (2) a statement, ledger card or other record on any
24    deposit or account, which shows each transaction in or with
25    respect to that account;

 

 

10000SB0009ham002- 162 -LRB100 06347 HLH 27841 a

1        (3) a check, draft or money order drawn on a bank or
2    issued and payable by a bank; or
3        (4) any other item containing information pertaining
4    to any relationship established in the ordinary course of a
5    bank's business between a bank and its customer, including
6    financial statements or other financial information
7    provided by the customer.
8    (b) This Section does not prohibit:
9        (1) The preparation, examination, handling or
10    maintenance of any financial records by any officer,
11    employee or agent of a bank having custody of the records,
12    or the examination of the records by a certified public
13    accountant engaged by the bank to perform an independent
14    audit.
15        (2) The examination of any financial records by, or the
16    furnishing of financial records by a bank to, any officer,
17    employee or agent of (i) the Commissioner of Banks and Real
18    Estate, (ii) after May 31, 1997, a state regulatory
19    authority authorized to examine a branch of a State bank
20    located in another state, (iii) the Comptroller of the
21    Currency, (iv) the Federal Reserve Board, or (v) the
22    Federal Deposit Insurance Corporation for use solely in the
23    exercise of his duties as an officer, employee, or agent.
24        (3) The publication of data furnished from financial
25    records relating to customers where the data cannot be
26    identified to any particular customer or account.

 

 

10000SB0009ham002- 163 -LRB100 06347 HLH 27841 a

1        (4) The making of reports or returns required under
2    Chapter 61 of the Internal Revenue Code of 1986.
3        (5) Furnishing information concerning the dishonor of
4    any negotiable instrument permitted to be disclosed under
5    the Uniform Commercial Code.
6        (6) The exchange in the regular course of business of
7    (i) credit information between a bank and other banks or
8    financial institutions or commercial enterprises, directly
9    or through a consumer reporting agency or (ii) financial
10    records or information derived from financial records
11    between a bank and other banks or financial institutions or
12    commercial enterprises for the purpose of conducting due
13    diligence pursuant to a purchase or sale involving the bank
14    or assets or liabilities of the bank.
15        (7) The furnishing of information to the appropriate
16    law enforcement authorities where the bank reasonably
17    believes it has been the victim of a crime.
18        (8) The furnishing of information under the Revised
19    Uniform Disposition of Unclaimed Property Act.
20        (9) The furnishing of information under the Illinois
21    Income Tax Act and the Illinois Estate and
22    Generation-Skipping Transfer Tax Act.
23        (10) The furnishing of information under the federal
24    Currency and Foreign Transactions Reporting Act Title 31,
25    United States Code, Section 1051 et seq.
26        (11) The furnishing of information under any other

 

 

10000SB0009ham002- 164 -LRB100 06347 HLH 27841 a

1    statute that by its terms or by regulations promulgated
2    thereunder requires the disclosure of financial records
3    other than by subpoena, summons, warrant, or court order.
4        (12) The furnishing of information about the existence
5    of an account of a person to a judgment creditor of that
6    person who has made a written request for that information.
7        (13) The exchange in the regular course of business of
8    information between commonly owned banks in connection
9    with a transaction authorized under paragraph (23) of
10    Section 5 and conducted at an affiliate facility.
11        (14) The furnishing of information in accordance with
12    the federal Personal Responsibility and Work Opportunity
13    Reconciliation Act of 1996. Any bank governed by this Act
14    shall enter into an agreement for data exchanges with a
15    State agency provided the State agency pays to the bank a
16    reasonable fee not to exceed its actual cost incurred. A
17    bank providing information in accordance with this item
18    shall not be liable to any account holder or other person
19    for any disclosure of information to a State agency, for
20    encumbering or surrendering any assets held by the bank in
21    response to a lien or order to withhold and deliver issued
22    by a State agency, or for any other action taken pursuant
23    to this item, including individual or mechanical errors,
24    provided the action does not constitute gross negligence or
25    willful misconduct. A bank shall have no obligation to
26    hold, encumber, or surrender assets until it has been

 

 

10000SB0009ham002- 165 -LRB100 06347 HLH 27841 a

1    served with a subpoena, summons, warrant, court or
2    administrative order, lien, or levy.
3        (15) The exchange in the regular course of business of
4    information between a bank and any commonly owned affiliate
5    of the bank, subject to the provisions of the Financial
6    Institutions Insurance Sales Law.
7        (16) The furnishing of information to law enforcement
8    authorities, the Illinois Department on Aging and its
9    regional administrative and provider agencies, the
10    Department of Human Services Office of Inspector General,
11    or public guardians: (i) upon subpoena by the investigatory
12    entity or the guardian, or (ii) if there is suspicion by
13    the bank that a customer who is an elderly person or person
14    with a disability has been or may become the victim of
15    financial exploitation. For the purposes of this item (16),
16    the term: (i) "elderly person" means a person who is 60 or
17    more years of age, (ii) "disabled person" means a person
18    who has or reasonably appears to the bank to have a
19    physical or mental disability that impairs his or her
20    ability to seek or obtain protection from or prevent
21    financial exploitation, and (iii) "financial exploitation"
22    means tortious or illegal use of the assets or resources of
23    an elderly or disabled person, and includes, without
24    limitation, misappropriation of the elderly or disabled
25    person's assets or resources by undue influence, breach of
26    fiduciary relationship, intimidation, fraud, deception,

 

 

10000SB0009ham002- 166 -LRB100 06347 HLH 27841 a

1    extortion, or the use of assets or resources in any manner
2    contrary to law. A bank or person furnishing information
3    pursuant to this item (16) shall be entitled to the same
4    rights and protections as a person furnishing information
5    under the Adult Protective Services Act and the Illinois
6    Domestic Violence Act of 1986.
7        (17) The disclosure of financial records or
8    information as necessary to effect, administer, or enforce
9    a transaction requested or authorized by the customer, or
10    in connection with:
11            (A) servicing or processing a financial product or
12        service requested or authorized by the customer;
13            (B) maintaining or servicing a customer's account
14        with the bank; or
15            (C) a proposed or actual securitization or
16        secondary market sale (including sales of servicing
17        rights) related to a transaction of a customer.
18        Nothing in this item (17), however, authorizes the sale
19    of the financial records or information of a customer
20    without the consent of the customer.
21        (18) The disclosure of financial records or
22    information as necessary to protect against actual or
23    potential fraud, unauthorized transactions, claims, or
24    other liability.
25        (19)(a) The disclosure of financial records or
26    information related to a private label credit program

 

 

10000SB0009ham002- 167 -LRB100 06347 HLH 27841 a

1    between a financial institution and a private label party
2    in connection with that private label credit program. Such
3    information is limited to outstanding balance, available
4    credit, payment and performance and account history,
5    product references, purchase information, and information
6    related to the identity of the customer.
7        (b)(1) For purposes of this paragraph (19) of
8    subsection (b) of Section 48.1, a "private label credit
9    program" means a credit program involving a financial
10    institution and a private label party that is used by a
11    customer of the financial institution and the private label
12    party primarily for payment for goods or services sold,
13    manufactured, or distributed by a private label party.
14        (2) For purposes of this paragraph (19) of subsection
15    (b) of Section 48.1, a "private label party" means, with
16    respect to a private label credit program, any of the
17    following: a retailer, a merchant, a manufacturer, a trade
18    group, or any such person's affiliate, subsidiary, member,
19    agent, or service provider.
20    (c) Except as otherwise provided by this Act, a bank may
21not disclose to any person, except to the customer or his duly
22authorized agent, any financial records or financial
23information obtained from financial records relating to that
24customer of that bank unless:
25        (1) the customer has authorized disclosure to the
26    person;

 

 

10000SB0009ham002- 168 -LRB100 06347 HLH 27841 a

1        (2) the financial records are disclosed in response to
2    a lawful subpoena, summons, warrant, citation to discover
3    assets, or court order which meets the requirements of
4    subsection (d) of this Section; or
5        (3) the bank is attempting to collect an obligation
6    owed to the bank and the bank complies with the provisions
7    of Section 2I of the Consumer Fraud and Deceptive Business
8    Practices Act.
9    (d) A bank shall disclose financial records under paragraph
10(2) of subsection (c) of this Section under a lawful subpoena,
11summons, warrant, citation to discover assets, or court order
12only after the bank mails a copy of the subpoena, summons,
13warrant, citation to discover assets, or court order to the
14person establishing the relationship with the bank, if living,
15and, otherwise his personal representative, if known, at his
16last known address by first class mail, postage prepaid, unless
17the bank is specifically prohibited from notifying the person
18by order of court or by applicable State or federal law. A bank
19shall not mail a copy of a subpoena to any person pursuant to
20this subsection if the subpoena was issued by a grand jury
21under the Statewide Grand Jury Act.
22    (e) Any officer or employee of a bank who knowingly and
23willfully furnishes financial records in violation of this
24Section is guilty of a business offense and, upon conviction,
25shall be fined not more than $1,000.
26    (f) Any person who knowingly and willfully induces or

 

 

10000SB0009ham002- 169 -LRB100 06347 HLH 27841 a

1attempts to induce any officer or employee of a bank to
2disclose financial records in violation of this Section is
3guilty of a business offense and, upon conviction, shall be
4fined not more than $1,000.
5    (g) A bank shall be reimbursed for costs that are
6reasonably necessary and that have been directly incurred in
7searching for, reproducing, or transporting books, papers,
8records, or other data of a customer required or requested to
9be produced pursuant to a lawful subpoena, summons, warrant,
10citation to discover assets, or court order. The Commissioner
11shall determine the rates and conditions under which payment
12may be made.
13(Source: P.A. 98-49, eff. 7-1-13; 99-143, eff. 7-27-15.)
 
14    (205 ILCS 5/48.3)  (from Ch. 17, par. 360.2)
15    Sec. 48.3. Disclosure of reports of examinations and
16confidential supervisory information; limitations.
17    (a) Any report of examination, visitation, or
18investigation prepared by the Commissioner under this Act, the
19Electronic Fund Transfer Act, the Corporate Fiduciary Act, the
20Illinois Bank Holding Company Act of 1957, and the Foreign
21Banking Office Act, any report of examination, visitation, or
22investigation prepared by the state regulatory authority of
23another state that examines a branch of an Illinois State bank
24in that state, any document or record prepared or obtained in
25connection with or relating to any examination, visitation, or

 

 

10000SB0009ham002- 170 -LRB100 06347 HLH 27841 a

1investigation, and any record prepared or obtained by the
2Commissioner to the extent that the record summarizes or
3contains information derived from any report, document, or
4record described in this subsection shall be deemed
5"confidential supervisory information". Confidential
6supervisory information shall not include any information or
7record routinely prepared by a bank or other financial
8institution and maintained in the ordinary course of business
9or any information or record that is required to be made
10publicly available pursuant to State or federal law or rule.
11Confidential supervisory information shall be the property of
12the Commissioner and shall only be disclosed under the
13circumstances and for the purposes set forth in this Section.
14     The Commissioner may disclose confidential supervisory
15information only under the following circumstances:
16        (1) The Commissioner may furnish confidential
17    supervisory information to the Board of Governors of the
18    Federal Reserve System, the federal reserve bank of the
19    federal reserve district in which the State bank is located
20    or in which the parent or other affiliate of the State bank
21    is located, any official or examiner thereof duly
22    accredited for the purpose, or any other state regulator,
23    federal regulator, or in the case of a foreign bank
24    possessing a certificate of authority pursuant to the
25    Foreign Banking Office Act or a license pursuant to the
26    Foreign Bank Representative Office Act, the bank regulator

 

 

10000SB0009ham002- 171 -LRB100 06347 HLH 27841 a

1    in the country where the foreign bank is chartered, that
2    the Commissioner determines to have an appropriate
3    regulatory interest. Nothing contained in this Act shall be
4    construed to limit the obligation of any member State bank
5    to comply with the requirements relative to examinations
6    and reports of the Federal Reserve Act and of the Board of
7    Governors of the Federal Reserve System or the federal
8    reserve bank of the federal reserve district in which the
9    bank is located, nor to limit in any way the powers of the
10    Commissioner with reference to examinations and reports.
11        (2) The Commissioner may furnish confidential
12    supervisory information to the United States, any agency
13    thereof that has insured a bank's deposits in whole or in
14    part, or any official or examiner thereof duly accredited
15    for the purpose. Nothing contained in this Act shall be
16    construed to limit the obligation relative to examinations
17    and reports of any State bank, deposits in which are to any
18    extent insured by the United States, any agency thereof,
19    nor to limit in any way the powers of the Commissioner with
20    reference to examination and reports of such bank.
21        (3) The Commissioner may furnish confidential
22    supervisory information to the appropriate law enforcement
23    authorities when the Commissioner reasonably believes a
24    bank, which the Commissioner has caused to be examined, has
25    been a victim of a crime.
26        (4) The Commissioner may furnish confidential

 

 

10000SB0009ham002- 172 -LRB100 06347 HLH 27841 a

1    supervisory information relating to a bank or other
2    financial institution, which the Commissioner has caused
3    to be examined, to be sent to the administrator of the
4    Revised Uniform Disposition of Unclaimed Property Act.
5        (5) The Commissioner may furnish confidential
6    supervisory information relating to a bank or other
7    financial institution, which the Commissioner has caused
8    to be examined, relating to its performance of obligations
9    under the Illinois Income Tax Act and the Illinois Estate
10    and Generation-Skipping Transfer Tax Act to the Illinois
11    Department of Revenue.
12        (6) The Commissioner may furnish confidential
13    supervisory information relating to a bank or other
14    financial institution, which the Commissioner has caused
15    to be examined, under the federal Currency and Foreign
16    Transactions Reporting Act, Title 31, United States Code,
17    Section 1051 et seq.
18        (6.5) The Commissioner may furnish confidential
19    supervisory information to any other agency or entity that
20    the Commissioner determines to have a legitimate
21    regulatory interest.
22        (7) The Commissioner may furnish confidential
23    supervisory information under any other statute that by its
24    terms or by regulations promulgated thereunder requires
25    the disclosure of financial records other than by subpoena,
26    summons, warrant, or court order.

 

 

10000SB0009ham002- 173 -LRB100 06347 HLH 27841 a

1        (8) At the request of the affected bank or other
2    financial institution, the Commissioner may furnish
3    confidential supervisory information relating to a bank or
4    other financial institution, which the Commissioner has
5    caused to be examined, in connection with the obtaining of
6    insurance coverage or the pursuit of an insurance claim for
7    or on behalf of the bank or other financial institution;
8    provided that, when possible, the Commissioner shall
9    disclose only relevant information while maintaining the
10    confidentiality of financial records not relevant to such
11    insurance coverage or claim and, when appropriate, may
12    delete identifying data relating to any person or
13    individual.
14        (9) The Commissioner may furnish a copy of a report of
15    any examination performed by the Commissioner of the
16    condition and affairs of any electronic data processing
17    entity to the banks serviced by the electronic data
18    processing entity.
19        (10) In addition to the foregoing circumstances, the
20    Commissioner may, but is not required to, furnish
21    confidential supervisory information under the same
22    circumstances authorized for the bank or financial
23    institution pursuant to subsection (b) of this Section,
24    except that the Commissioner shall provide confidential
25    supervisory information under circumstances described in
26    paragraph (3) of subsection (b) of this Section only upon

 

 

10000SB0009ham002- 174 -LRB100 06347 HLH 27841 a

1    the request of the bank or other financial institution.
2    (b) A bank or other financial institution or its officers,
3agents, and employees may disclose confidential supervisory
4information only under the following circumstances:
5        (1) to the board of directors of the bank or other
6    financial institution, as well as the president,
7    vice-president, cashier, and other officers of the bank or
8    other financial institution to whom the board of directors
9    may delegate duties with respect to compliance with
10    recommendations for action, and to the board of directors
11    of a bank holding company that owns at least 80% of the
12    outstanding stock of the bank or other financial
13    institution;
14        (2) to attorneys for the bank or other financial
15    institution and to a certified public accountant engaged by
16    the State bank or financial institution to perform an
17    independent audit provided that the attorney or certified
18    public accountant shall not permit the confidential
19    supervisory information to be further disseminated;
20        (3) to any person who seeks to acquire a controlling
21    interest in, or who seeks to merge with, the bank or
22    financial institution, provided that all attorneys,
23    certified public accountants, officers, agents, or
24    employees of that person shall agree to be bound to respect
25    the confidentiality of the confidential supervisory
26    information and to not further disseminate the information

 

 

10000SB0009ham002- 175 -LRB100 06347 HLH 27841 a

1    therein contained;
2        (4) (blank); or
3        (5) to the bank's insurance company in relation to an
4    insurance claim or the effort by the bank to procure
5    insurance coverage, provided that, when possible, the bank
6    shall disclose only information that is relevant to the
7    insurance claim or that is necessary to procure the
8    insurance coverage, while maintaining the confidentiality
9    of financial information pertaining to customers. When
10    appropriate, the bank may delete identifying data relating
11    to any person.
12    The disclosure of confidential supervisory information by
13a bank or other financial institution pursuant to this
14subsection (b) and the disclosure of information to the
15Commissioner or other regulatory agency in connection with any
16examination, visitation, or investigation shall not constitute
17a waiver of any legal privilege otherwise available to the bank
18or other financial institution with respect to the information.
19    (c) (1) Notwithstanding any other provision of this Act or
20any other law, confidential supervisory information shall be
21the property of the Commissioner and shall be privileged from
22disclosure to any person except as provided in this Section. No
23person in possession of confidential supervisory information
24may disclose that information for any reason or under any
25circumstances not specified in this Section without the prior
26authorization of the Commissioner. Any person upon whom a

 

 

10000SB0009ham002- 176 -LRB100 06347 HLH 27841 a

1demand for production of confidential supervisory information
2is made, whether by subpoena, order, or other judicial or
3administrative process, must withhold production of the
4confidential supervisory information and must notify the
5Commissioner of the demand, at which time the Commissioner is
6authorized to intervene for the purpose of enforcing the
7limitations of this Section or seeking the withdrawal or
8termination of the attempt to compel production of the
9confidential supervisory information.
10    (2) Any request for discovery or disclosure of confidential
11supervisory information, whether by subpoena, order, or other
12judicial or administrative process, shall be made to the
13Commissioner, and the Commissioner shall determine within 15
14days whether to disclose the information pursuant to procedures
15and standards that the Commissioner shall establish by rule. If
16the Commissioner determines that such information will not be
17disclosed, the Commissioner's decision shall be subject to
18judicial review under the provisions of the Administrative
19Review Law, and venue shall be in either Sangamon County or
20Cook County.
21    (3) Any court order that compels disclosure of confidential
22supervisory information may be immediately appealed by the
23Commissioner, and the order shall be automatically stayed
24pending the outcome of the appeal.
25    (d) If any officer, agent, attorney, or employee of a bank
26or financial institution knowingly and willfully furnishes

 

 

10000SB0009ham002- 177 -LRB100 06347 HLH 27841 a

1confidential supervisory information in violation of this
2Section, the Commissioner may impose a civil monetary penalty
3up to $1,000 for the violation against the officer, agent,
4attorney, or employee.
5(Source: P.A. 90-301, eff. 8-1-97; 91-201, eff. 1-1-00.)
 
6    (205 ILCS 5/65)  (from Ch. 17, par. 377)
7    Sec. 65. Dividends; dissolution. From time to time during a
8receivership other than a receivership conducted by the Federal
9Deposit Insurance Corporation, the Commissioner shall make and
10pay from monies of the bank a ratable dividend on all claims as
11may be proved to his or her satisfaction or adjudicated by the
12court. Claims so proven or adjudicated shall bear interest at
13the rate of 3% per annum from the date of the appointment of
14the receiver to the date of payment, but all dividends on a
15claim shall be applied first to principal. In computing the
16amount of any dividend to be paid, if the Commissioner deems it
17desirable in the interests of economy of administration and to
18the interest of the bank and its creditors, he or she may pay
19up to the amount of $10 of each claim or unpaid portion thereof
20in full. As the proceeds of the assets of the bank are
21collected in the course of liquidation, the Commissioner shall
22make and pay further dividends on all claims previously proven
23or adjudicated. After one year from the entry of a judgment of
24dissolution, all unclaimed dividends shall be remitted to the
25State Treasurer in accordance with the Revised Uniform

 

 

10000SB0009ham002- 178 -LRB100 06347 HLH 27841 a

1Unclaimed Property Act "Uniform Disposition of Unclaimed
2Property Act", as now or hereafter amended, together with a
3list of all unpaid claimants, their last known addresses and
4the amounts unpaid.
5(Source: P.A. 91-16, eff. 7-1-99.)
 
6    Section 17-55. The Savings Bank Act is amended by changing
7Sections 4013, 9012, and 10090 as follows:
 
8    (205 ILCS 205/4013)  (from Ch. 17, par. 7304-13)
9    Sec. 4013. Access to books and records; communication with
10members and shareholders.
11    (a) Every member or shareholder shall have the right to
12inspect books and records of the savings bank that pertain to
13his accounts. Otherwise, the right of inspection and
14examination of the books and records shall be limited as
15provided in this Act, and no other person shall have access to
16the books and records nor shall be entitled to a list of the
17members or shareholders.
18    (b) For the purpose of this Section, the term "financial
19records" means any original, any copy, or any summary of (1) a
20document granting signature authority over a deposit or
21account; (2) a statement, ledger card, or other record on any
22deposit or account that shows each transaction in or with
23respect to that account; (3) a check, draft, or money order
24drawn on a savings bank or issued and payable by a savings

 

 

10000SB0009ham002- 179 -LRB100 06347 HLH 27841 a

1bank; or (4) any other item containing information pertaining
2to any relationship established in the ordinary course of a
3savings bank's business between a savings bank and its
4customer, including financial statements or other financial
5information provided by the member or shareholder.
6    (c) This Section does not prohibit:
7        (1) The preparation, examination, handling, or
8    maintenance of any financial records by any officer,
9    employee, or agent of a savings bank having custody of
10    records or examination of records by a certified public
11    accountant engaged by the savings bank to perform an
12    independent audit.
13        (2) The examination of any financial records by, or the
14    furnishing of financial records by a savings bank to, any
15    officer, employee, or agent of the Commissioner of Banks
16    and Real Estate or the federal depository institution
17    regulator for use solely in the exercise of his duties as
18    an officer, employee, or agent.
19        (3) The publication of data furnished from financial
20    records relating to members or holders of capital where the
21    data cannot be identified to any particular member,
22    shareholder, or account.
23        (4) The making of reports or returns required under
24    Chapter 61 of the Internal Revenue Code of 1986.
25        (5) Furnishing information concerning the dishonor of
26    any negotiable instrument permitted to be disclosed under

 

 

10000SB0009ham002- 180 -LRB100 06347 HLH 27841 a

1    the Uniform Commercial Code.
2        (6) The exchange in the regular course of business of
3    (i) credit information between a savings bank and other
4    savings banks or financial institutions or commercial
5    enterprises, directly or through a consumer reporting
6    agency or (ii) financial records or information derived
7    from financial records between a savings bank and other
8    savings banks or financial institutions or commercial
9    enterprises for the purpose of conducting due diligence
10    pursuant to a purchase or sale involving the savings bank
11    or assets or liabilities of the savings bank.
12        (7) The furnishing of information to the appropriate
13    law enforcement authorities where the savings bank
14    reasonably believes it has been the victim of a crime.
15        (8) The furnishing of information pursuant to the
16    Revised Uniform Disposition of Unclaimed Property Act.
17        (9) The furnishing of information pursuant to the
18    Illinois Income Tax Act and the Illinois Estate and
19    Generation-Skipping Transfer Tax Act.
20        (10) The furnishing of information pursuant to the
21    federal "Currency and Foreign Transactions Reporting Act",
22    (Title 31, United States Code, Section 1051 et seq.).
23        (11) The furnishing of information pursuant to any
24    other statute which by its terms or by regulations
25    promulgated thereunder requires the disclosure of
26    financial records other than by subpoena, summons,

 

 

10000SB0009ham002- 181 -LRB100 06347 HLH 27841 a

1    warrant, or court order.
2        (12) The furnishing of information in accordance with
3    the federal Personal Responsibility and Work Opportunity
4    Reconciliation Act of 1996. Any savings bank governed by
5    this Act shall enter into an agreement for data exchanges
6    with a State agency provided the State agency pays to the
7    savings bank a reasonable fee not to exceed its actual cost
8    incurred. A savings bank providing information in
9    accordance with this item shall not be liable to any
10    account holder or other person for any disclosure of
11    information to a State agency, for encumbering or
12    surrendering any assets held by the savings bank in
13    response to a lien or order to withhold and deliver issued
14    by a State agency, or for any other action taken pursuant
15    to this item, including individual or mechanical errors,
16    provided the action does not constitute gross negligence or
17    willful misconduct. A savings bank shall have no obligation
18    to hold, encumber, or surrender assets until it has been
19    served with a subpoena, summons, warrant, court or
20    administrative order, lien, or levy.
21        (13) The furnishing of information to law enforcement
22    authorities, the Illinois Department on Aging and its
23    regional administrative and provider agencies, the
24    Department of Human Services Office of Inspector General,
25    or public guardians: (i) upon subpoena by the investigatory
26    entity or the guardian, or (ii) if there is suspicion by

 

 

10000SB0009ham002- 182 -LRB100 06347 HLH 27841 a

1    the savings bank that a customer who is an elderly person
2    or person with a disability has been or may become the
3    victim of financial exploitation. For the purposes of this
4    item (13), the term: (i) "elderly person" means a person
5    who is 60 or more years of age, (ii) "person with a
6    disability" means a person who has or reasonably appears to
7    the savings bank to have a physical or mental disability
8    that impairs his or her ability to seek or obtain
9    protection from or prevent financial exploitation, and
10    (iii) "financial exploitation" means tortious or illegal
11    use of the assets or resources of an elderly person or
12    person with a disability, and includes, without
13    limitation, misappropriation of the assets or resources of
14    the elderly person or person with a disability by undue
15    influence, breach of fiduciary relationship, intimidation,
16    fraud, deception, extortion, or the use of assets or
17    resources in any manner contrary to law. A savings bank or
18    person furnishing information pursuant to this item (13)
19    shall be entitled to the same rights and protections as a
20    person furnishing information under the Adult Protective
21    Services Act and the Illinois Domestic Violence Act of
22    1986.
23        (14) The disclosure of financial records or
24    information as necessary to effect, administer, or enforce
25    a transaction requested or authorized by the member or
26    holder of capital, or in connection with:

 

 

10000SB0009ham002- 183 -LRB100 06347 HLH 27841 a

1            (A) servicing or processing a financial product or
2        service requested or authorized by the member or holder
3        of capital;
4            (B) maintaining or servicing an account of a member
5        or holder of capital with the savings bank; or
6            (C) a proposed or actual securitization or
7        secondary market sale (including sales of servicing
8        rights) related to a transaction of a member or holder
9        of capital.
10        Nothing in this item (14), however, authorizes the sale
11    of the financial records or information of a member or
12    holder of capital without the consent of the member or
13    holder of capital.
14        (15) The exchange in the regular course of business of
15    information between a savings bank and any commonly owned
16    affiliate of the savings bank, subject to the provisions of
17    the Financial Institutions Insurance Sales Law.
18        (16) The disclosure of financial records or
19    information as necessary to protect against or prevent
20    actual or potential fraud, unauthorized transactions,
21    claims, or other liability.
22        (17)(a) The disclosure of financial records or
23    information related to a private label credit program
24    between a financial institution and a private label party
25    in connection with that private label credit program. Such
26    information is limited to outstanding balance, available

 

 

10000SB0009ham002- 184 -LRB100 06347 HLH 27841 a

1    credit, payment and performance and account history,
2    product references, purchase information, and information
3    related to the identity of the customer.
4        (b)(1) For purposes of this paragraph (17) of
5    subsection (c) of Section 4013, a "private label credit
6    program" means a credit program involving a financial
7    institution and a private label party that is used by a
8    customer of the financial institution and the private label
9    party primarily for payment for goods or services sold,
10    manufactured, or distributed by a private label party.
11        (2) For purposes of this paragraph (17) of subsection
12    (c) of Section 4013, a "private label party" means, with
13    respect to a private label credit program, any of the
14    following: a retailer, a merchant, a manufacturer, a trade
15    group, or any such person's affiliate, subsidiary, member,
16    agent, or service provider.
17    (d) A savings bank may not disclose to any person, except
18to the member or holder of capital or his duly authorized
19agent, any financial records relating to that member or
20shareholder of the savings bank unless:
21        (1) the member or shareholder has authorized
22    disclosure to the person; or
23        (2) the financial records are disclosed in response to
24    a lawful subpoena, summons, warrant, citation to discover
25    assets, or court order that meets the requirements of
26    subsection (e) of this Section.

 

 

10000SB0009ham002- 185 -LRB100 06347 HLH 27841 a

1    (e) A savings bank shall disclose financial records under
2subsection (d) of this Section pursuant to a lawful subpoena,
3summons, warrant, citation to discover assets, or court order
4only after the savings bank mails a copy of the subpoena,
5summons, warrant, citation to discover assets, or court order
6to the person establishing the relationship with the savings
7bank, if living, and otherwise, his personal representative, if
8known, at his last known address by first class mail, postage
9prepaid, unless the savings bank is specifically prohibited
10from notifying the person by order of court.
11    (f) Any officer or employee of a savings bank who knowingly
12and willfully furnishes financial records in violation of this
13Section is guilty of a business offense and, upon conviction,
14shall be fined not more than $1,000.
15    (g) Any person who knowingly and willfully induces or
16attempts to induce any officer or employee of a savings bank to
17disclose financial records in violation of this Section is
18guilty of a business offense and, upon conviction, shall be
19fined not more than $1,000.
20    (h) If any member or shareholder desires to communicate
21with the other members or shareholders of the savings bank with
22reference to any question pending or to be presented at an
23annual or special meeting, the savings bank shall give that
24person, upon request, a statement of the approximate number of
25members or shareholders entitled to vote at the meeting and an
26estimate of the cost of preparing and mailing the

 

 

10000SB0009ham002- 186 -LRB100 06347 HLH 27841 a

1communication. The requesting member shall submit the
2communication to the Commissioner who, upon finding it to be
3appropriate and truthful, shall direct that it be prepared and
4mailed to the members upon the requesting member's or
5shareholder's payment or adequate provision for payment of the
6expenses of preparation and mailing.
7    (i) A savings bank shall be reimbursed for costs that are
8necessary and that have been directly incurred in searching
9for, reproducing, or transporting books, papers, records, or
10other data of a customer required to be reproduced pursuant to
11a lawful subpoena, warrant, citation to discover assets, or
12court order.
13    (j) Notwithstanding the provisions of this Section, a
14savings bank may sell or otherwise make use of lists of
15customers' names and addresses. All other information
16regarding a customer's account is are subject to the disclosure
17provisions of this Section. At the request of any customer,
18that customer's name and address shall be deleted from any list
19that is to be sold or used in any other manner beyond
20identification of the customer's accounts.
21(Source: P.A. 98-49, eff. 7-1-13; 99-143, eff. 7-27-15; revised
229-14-16.)
 
23    (205 ILCS 205/9012)  (from Ch. 17, par. 7309-12)
24    Sec. 9012. Disclosure of reports of examinations and
25confidential supervisory information; limitations.

 

 

10000SB0009ham002- 187 -LRB100 06347 HLH 27841 a

1    (a) Any report of examination, visitation, or
2investigation prepared by the Commissioner under this Act, any
3report of examination, visitation, or investigation prepared
4by the state regulatory authority of another state that
5examines a branch of an Illinois State savings bank in that
6state, any document or record prepared or obtained in
7connection with or relating to any examination, visitation, or
8investigation, and any record prepared or obtained by the
9Commissioner to the extent that the record summarizes or
10contains information derived from any report, document, or
11record described in this subsection shall be deemed
12confidential supervisory information. "Confidential
13supervisory information" shall not include any information or
14record routinely prepared by a savings bank and maintained in
15the ordinary course of business or any information or record
16that is required to be made publicly available pursuant to
17State or federal law or rule. Confidential supervisory
18information shall be the property of the Commissioner and shall
19only be disclosed under the circumstances and for the purposes
20set forth in this Section.
21    The Commissioner may disclose confidential supervisory
22information only under the following circumstances:
23        (1) The Commissioner may furnish confidential
24    supervisory information to federal and state depository
25    institution regulators, or any official or examiner
26    thereof duly accredited for the purpose. Nothing contained

 

 

10000SB0009ham002- 188 -LRB100 06347 HLH 27841 a

1    in this Act shall be construed to limit the obligation of
2    any savings bank to comply with the requirements relative
3    to examinations and reports nor to limit in any way the
4    powers of the Commissioner relative to examinations and
5    reports.
6        (2) The Commissioner may furnish confidential
7    supervisory information to the United States or any agency
8    thereof that to any extent has insured a savings bank's
9    deposits, or any official or examiner thereof duly
10    accredited for the purpose. Nothing contained in this Act
11    shall be construed to limit the obligation relative to
12    examinations and reports of any savings bank in which
13    deposits are to any extent insured by the United States or
14    any agency thereof nor to limit in any way the powers of
15    the Commissioner with reference to examination and reports
16    of the savings bank.
17        (3) The Commissioner may furnish confidential
18    supervisory information to the appropriate law enforcement
19    authorities when the Commissioner reasonably believes a
20    savings bank, which the Commissioner has caused to be
21    examined, has been a victim of a crime.
22        (4) The Commissioner may furnish confidential
23    supervisory information related to a savings bank, which
24    the Commissioner has caused to be examined, to the
25    administrator of the Revised Uniform Disposition of
26    Unclaimed Property Act.

 

 

10000SB0009ham002- 189 -LRB100 06347 HLH 27841 a

1        (5) The Commissioner may furnish confidential
2    supervisory information relating to a savings bank, which
3    the Commissioner has caused to be examined, relating to its
4    performance of obligations under the Illinois Income Tax
5    Act and the Illinois Estate and Generation-Skipping
6    Transfer Tax Act to the Illinois Department of Revenue.
7        (6) The Commissioner may furnish confidential
8    supervisory information relating to a savings bank, which
9    the Commissioner has caused to be examined, under the
10    federal Currency and Foreign Transactions Reporting Act,
11    31 United States Code, Section 1051 et seq.
12        (7) The Commissioner may furnish confidential
13    supervisory information to any other agency or entity that
14    the Commissioner determines to have a legitimate
15    regulatory interest.
16        (8) The Commissioner may furnish confidential
17    supervisory information as otherwise permitted or required
18    by this Act and may furnish confidential supervisory
19    information under any other statute that by its terms or by
20    regulations promulgated thereunder requires the disclosure
21    of financial records other than by subpoena, summons,
22    warrant, or court order.
23        (9) At the request of the affected savings bank, the
24    Commissioner may furnish confidential supervisory
25    information relating to the savings bank, which the
26    Commissioner has caused to be examined, in connection with

 

 

10000SB0009ham002- 190 -LRB100 06347 HLH 27841 a

1    the obtaining of insurance coverage or the pursuit of an
2    insurance claim for or on behalf of the savings bank;
3    provided that, when possible, the Commissioner shall
4    disclose only relevant information while maintaining the
5    confidentiality of financial records not relevant to such
6    insurance coverage or claim and, when appropriate, may
7    delete identifying data relating to any person.
8        (10) The Commissioner may furnish a copy of a report of
9    any examination performed by the Commissioner of the
10    condition and affairs of any electronic data processing
11    entity to the savings banks serviced by the electronic data
12    processing entity.
13        (11) In addition to the foregoing circumstances, the
14    Commissioner may, but is not required to, furnish
15    confidential supervisory information under the same
16    circumstances authorized for the savings bank pursuant to
17    subsection (b) of this Section, except that the
18    Commissioner shall provide confidential supervisory
19    information under circumstances described in paragraph (3)
20    of subsection (b) of this Section only upon the request of
21    the savings bank.
22    (b) A savings bank or its officers, agents, and employees
23may disclose confidential supervisory information only under
24the following circumstances:
25        (1) to the board of directors of the savings bank, as
26    well as the president, vice-president, cashier, and other

 

 

10000SB0009ham002- 191 -LRB100 06347 HLH 27841 a

1    officers of the savings bank to whom the board of directors
2    may delegate duties with respect to compliance with
3    recommendations for action, and to the board of directors
4    of a savings bank holding company that owns at least 80% of
5    the outstanding stock of the savings bank or other
6    financial institution.
7        (2) to attorneys for the savings bank and to a
8    certified public accountant engaged by the savings bank to
9    perform an independent audit; provided that the attorney or
10    certified public accountant shall not permit the
11    confidential supervisory information to be further
12    disseminated.
13        (3) to any person who seeks to acquire a controlling
14    interest in, or who seeks to merge with, the savings bank;
15    provided that the person shall agree to be bound to respect
16    the confidentiality of the confidential supervisory
17    information and to not further disseminate the information
18    other than to attorneys, certified public accountants,
19    officers, agents, or employees of that person who likewise
20    shall agree to be bound to respect the confidentiality of
21    the confidential supervisory information and to not
22    further disseminate the information.
23        (4) to the savings bank's insurance company, if the
24    supervisory information contains information that is
25    otherwise unavailable and is strictly necessary to
26    obtaining insurance coverage or pursuing an insurance

 

 

10000SB0009ham002- 192 -LRB100 06347 HLH 27841 a

1    claim for or on behalf of the savings bank; provided that,
2    when possible, the savings bank shall disclose only
3    information that is relevant to obtaining insurance
4    coverage or pursuing an insurance claim, while maintaining
5    the confidentiality of financial information pertaining to
6    customers; and provided further that, when appropriate,
7    the savings bank may delete identifying data relating to
8    any person.
9    The disclosure of confidential supervisory information by
10a savings bank pursuant to this subsection (b) and the
11disclosure of information to the Commissioner or other
12regulatory agency in connection with any examination,
13visitation, or investigation shall not constitute a waiver of
14any legal privilege otherwise available to the savings bank
15with respect to the information.
16    (c) (1) Notwithstanding any other provision of this Act or
17any other law, confidential supervisory information shall be
18the property of the Commissioner and shall be privileged from
19disclosure to any person except as provided in this Section. No
20person in possession of confidential supervisory information
21may disclose that information for any reason or under any
22circumstances not specified in this Section without the prior
23authorization of the Commissioner. Any person upon whom a
24demand for production of confidential supervisory information
25is made, whether by subpoena, order, or other judicial or
26administrative process, must withhold production of the

 

 

10000SB0009ham002- 193 -LRB100 06347 HLH 27841 a

1confidential supervisory information and must notify the
2Commissioner of the demand, at which time the Commissioner is
3authorized to intervene for the purpose of enforcing the
4limitations of this Section or seeking the withdrawal or
5termination of the attempt to compel production of the
6confidential supervisory information.
7    (2) Any request for discovery or disclosure of confidential
8supervisory information, whether by subpoena, order, or other
9judicial or administrative process, shall be made to the
10Commissioner, and the Commissioner shall determine within 15
11days whether to disclose the information pursuant to procedures
12and standards that the Commissioner shall establish by rule. If
13the Commissioner determines that such information will not be
14disclosed, the Commissioner's decision shall be subject to
15judicial review under the provisions of the Administrative
16Review Law, and venue shall be in either Sangamon County or
17Cook County.
18    (3) Any court order that compels disclosure of confidential
19supervisory information may be immediately appealed by the
20Commissioner, and the order shall be automatically stayed
21pending the outcome of the appeal.
22    (d) If any officer, agent, attorney, or employee of a
23savings bank knowingly and willfully furnishes confidential
24supervisory information in violation of this Section, the
25Commissioner may impose a civil monetary penalty up to $1,000
26for the violation against the officer, agent, attorney, or

 

 

10000SB0009ham002- 194 -LRB100 06347 HLH 27841 a

1employee.
2    (e)   Subject to the limits of this Section, the
3Commissioner also may promulgate regulations to set procedures
4and standards for disclosure of the following items:
5        (1) All fixed orders and opinions made in cases of
6    appeals of the Commissioner's actions.
7        (2) Statements of policy and interpretations adopted
8    by the Commissioner's office, but not otherwise made
9    public.
10        (3) Nonconfidential portions of application files,
11    including applications for new charters. The Commissioner
12    shall specify by rule as to what part of the files are
13    confidential.
14        (4) Quarterly reports of income, deposits, and
15    financial condition.
16(Source: P.A. 93-271, eff. 7-22-03.)
 
17    (205 ILCS 205/10090)
18    Sec. 10090. Dividends; dissolution. From time to time
19during a receivership other than a receivership conducted by
20the Federal Deposit Insurance Corporation, the Secretary shall
21make and pay from moneys of the savings bank a ratable dividend
22on all claims as may be proved to his or her satisfaction or
23adjudicated by the court. Claims so proven or adjudicated shall
24bear interest at the rate of 3% per annum from the date of the
25appointment of the receiver to the date of payment, but all

 

 

10000SB0009ham002- 195 -LRB100 06347 HLH 27841 a

1dividends on a claim shall be applied first to principal. In
2computing the amount of any dividend to be paid, if the
3Secretary deems it desirable in the interests of economy of
4administration and to the interest of the savings bank and its
5creditors, he or she may pay up to the amount of $10 of each
6claim or unpaid portion thereof in full. As the proceeds of the
7assets of the savings bank are collected in the course of
8liquidation, the Secretary shall make and pay further dividends
9on all claims previously proven or adjudicated. After one year
10from the entry of a judgment of dissolution, all unclaimed
11dividends shall be remitted to the State Treasurer in
12accordance with the Revised Uniform Disposition of Unclaimed
13Property Act, as now or hereafter amended, together with a list
14of all unpaid claimants, their last known addresses and the
15amounts unpaid.
16(Source: P.A. 96-1365, eff. 7-28-10.)
 
17    Section 17-60. The Illinois Credit Union Act is amended by
18changing Sections 10 and 62 as follows:
 
19    (205 ILCS 305/10)  (from Ch. 17, par. 4411)
20    Sec. 10. Credit union records; member financial records.
21    (1) A credit union shall establish and maintain books,
22records, accounting systems and procedures which accurately
23reflect its operations and which enable the Department to
24readily ascertain the true financial condition of the credit

 

 

10000SB0009ham002- 196 -LRB100 06347 HLH 27841 a

1union and whether it is complying with this Act.
2    (2) A photostatic or photographic reproduction of any
3credit union records shall be admissible as evidence of
4transactions with the credit union.
5    (3)(a) For the purpose of this Section, the term "financial
6records" means any original, any copy, or any summary of (1) a
7document granting signature authority over an account, (2) a
8statement, ledger card or other record on any account which
9shows each transaction in or with respect to that account, (3)
10a check, draft or money order drawn on a financial institution
11or other entity or issued and payable by or through a financial
12institution or other entity, or (4) any other item containing
13information pertaining to any relationship established in the
14ordinary course of business between a credit union and its
15member, including financial statements or other financial
16information provided by the member.
17    (b) This Section does not prohibit:
18        (1) The preparation, examination, handling or
19    maintenance of any financial records by any officer,
20    employee or agent of a credit union having custody of such
21    records, or the examination of such records by a certified
22    public accountant engaged by the credit union to perform an
23    independent audit.
24        (2) The examination of any financial records by or the
25    furnishing of financial records by a credit union to any
26    officer, employee or agent of the Department, the National

 

 

10000SB0009ham002- 197 -LRB100 06347 HLH 27841 a

1    Credit Union Administration, Federal Reserve board or any
2    insurer of share accounts for use solely in the exercise of
3    his duties as an officer, employee or agent.
4        (3) The publication of data furnished from financial
5    records relating to members where the data cannot be
6    identified to any particular customer of account.
7        (4) The making of reports or returns required under
8    Chapter 61 of the Internal Revenue Code of 1954.
9        (5) Furnishing information concerning the dishonor of
10    any negotiable instrument permitted to be disclosed under
11    the Uniform Commercial Code.
12        (6) The exchange in the regular course of business of
13    (i) credit information between a credit union and other
14    credit unions or financial institutions or commercial
15    enterprises, directly or through a consumer reporting
16    agency or (ii) financial records or information derived
17    from financial records between a credit union and other
18    credit unions or financial institutions or commercial
19    enterprises for the purpose of conducting due diligence
20    pursuant to a merger or a purchase or sale of assets or
21    liabilities of the credit union.
22        (7) The furnishing of information to the appropriate
23    law enforcement authorities where the credit union
24    reasonably believes it has been the victim of a crime.
25        (8) The furnishing of information pursuant to the
26    Revised Uniform Disposition of Unclaimed Property Act.

 

 

10000SB0009ham002- 198 -LRB100 06347 HLH 27841 a

1        (9) The furnishing of information pursuant to the
2    Illinois Income Tax Act and the Illinois Estate and
3    Generation-Skipping Transfer Tax Act.
4        (10) The furnishing of information pursuant to the
5    federal "Currency and Foreign Transactions Reporting Act",
6    Title 31, United States Code, Section 1051 et sequentia.
7        (11) The furnishing of information pursuant to any
8    other statute which by its terms or by regulations
9    promulgated thereunder requires the disclosure of
10    financial records other than by subpoena, summons, warrant
11    or court order.
12        (12) The furnishing of information in accordance with
13    the federal Personal Responsibility and Work Opportunity
14    Reconciliation Act of 1996. Any credit union governed by
15    this Act shall enter into an agreement for data exchanges
16    with a State agency provided the State agency pays to the
17    credit union a reasonable fee not to exceed its actual cost
18    incurred. A credit union providing information in
19    accordance with this item shall not be liable to any
20    account holder or other person for any disclosure of
21    information to a State agency, for encumbering or
22    surrendering any assets held by the credit union in
23    response to a lien or order to withhold and deliver issued
24    by a State agency, or for any other action taken pursuant
25    to this item, including individual or mechanical errors,
26    provided the action does not constitute gross negligence or

 

 

10000SB0009ham002- 199 -LRB100 06347 HLH 27841 a

1    willful misconduct. A credit union shall have no obligation
2    to hold, encumber, or surrender assets until it has been
3    served with a subpoena, summons, warrant, court or
4    administrative order, lien, or levy.
5        (13) The furnishing of information to law enforcement
6    authorities, the Illinois Department on Aging and its
7    regional administrative and provider agencies, the
8    Department of Human Services Office of Inspector General,
9    or public guardians: (i) upon subpoena by the investigatory
10    entity or the guardian, or (ii) if there is suspicion by
11    the credit union that a member who is an elderly person or
12    person with a disability has been or may become the victim
13    of financial exploitation. For the purposes of this item
14    (13), the term: (i) "elderly person" means a person who is
15    60 or more years of age, (ii) "person with a disability"
16    means a person who has or reasonably appears to the credit
17    union to have a physical or mental disability that impairs
18    his or her ability to seek or obtain protection from or
19    prevent financial exploitation, and (iii) "financial
20    exploitation" means tortious or illegal use of the assets
21    or resources of an elderly person or person with a
22    disability, and includes, without limitation,
23    misappropriation of the elderly or disabled person's
24    assets or resources by undue influence, breach of fiduciary
25    relationship, intimidation, fraud, deception, extortion,
26    or the use of assets or resources in any manner contrary to

 

 

10000SB0009ham002- 200 -LRB100 06347 HLH 27841 a

1    law. A credit union or person furnishing information
2    pursuant to this item (13) shall be entitled to the same
3    rights and protections as a person furnishing information
4    under the Adult Protective Services Act and the Illinois
5    Domestic Violence Act of 1986.
6        (14) The disclosure of financial records or
7    information as necessary to effect, administer, or enforce
8    a transaction requested or authorized by the member, or in
9    connection with:
10            (A) servicing or processing a financial product or
11        service requested or authorized by the member;
12            (B) maintaining or servicing a member's account
13        with the credit union; or
14            (C) a proposed or actual securitization or
15        secondary market sale (including sales of servicing
16        rights) related to a transaction of a member.
17        Nothing in this item (14), however, authorizes the sale
18    of the financial records or information of a member without
19    the consent of the member.
20        (15) The disclosure of financial records or
21    information as necessary to protect against or prevent
22    actual or potential fraud, unauthorized transactions,
23    claims, or other liability.
24        (16)(a) The disclosure of financial records or
25    information related to a private label credit program
26    between a financial institution and a private label party

 

 

10000SB0009ham002- 201 -LRB100 06347 HLH 27841 a

1    in connection with that private label credit program. Such
2    information is limited to outstanding balance, available
3    credit, payment and performance and account history,
4    product references, purchase information, and information
5    related to the identity of the customer.
6        (b)(1) For purposes of this paragraph (16) of
7    subsection (b) of Section 10, a "private label credit
8    program" means a credit program involving a financial
9    institution and a private label party that is used by a
10    customer of the financial institution and the private label
11    party primarily for payment for goods or services sold,
12    manufactured, or distributed by a private label party.
13        (2) For purposes of this paragraph (16) of subsection
14    (b) of Section 10, a "private label party" means, with
15    respect to a private label credit program, any of the
16    following: a retailer, a merchant, a manufacturer, a trade
17    group, or any such person's affiliate, subsidiary, member,
18    agent, or service provider.
19    (c) Except as otherwise provided by this Act, a credit
20union may not disclose to any person, except to the member or
21his duly authorized agent, any financial records relating to
22that member of the credit union unless:
23        (1) the member has authorized disclosure to the person;
24        (2) the financial records are disclosed in response to
25    a lawful subpoena, summons, warrant, citation to discover
26    assets, or court order that meets the requirements of

 

 

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1    subparagraph (d) of this Section; or
2        (3) the credit union is attempting to collect an
3    obligation owed to the credit union and the credit union
4    complies with the provisions of Section 2I of the Consumer
5    Fraud and Deceptive Business Practices Act.
6    (d) A credit union shall disclose financial records under
7subparagraph (c)(2) of this Section pursuant to a lawful
8subpoena, summons, warrant, citation to discover assets, or
9court order only after the credit union mails a copy of the
10subpoena, summons, warrant, citation to discover assets, or
11court order to the person establishing the relationship with
12the credit union, if living, and otherwise his personal
13representative, if known, at his last known address by first
14class mail, postage prepaid unless the credit union is
15specifically prohibited from notifying the person by order of
16court or by applicable State or federal law. In the case of a
17grand jury subpoena, a credit union shall not mail a copy of a
18subpoena to any person pursuant to this subsection if the
19subpoena was issued by a grand jury under the Statewide Grand
20Jury Act or notifying the person would constitute a violation
21of the federal Right to Financial Privacy Act of 1978.
22    (e)(1) Any officer or employee of a credit union who
23knowingly and wilfully furnishes financial records in
24violation of this Section is guilty of a business offense and
25upon conviction thereof shall be fined not more than $1,000.
26    (2) Any person who knowingly and wilfully induces or

 

 

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1attempts to induce any officer or employee of a credit union to
2disclose financial records in violation of this Section is
3guilty of a business offense and upon conviction thereof shall
4be fined not more than $1,000.
5    (f) A credit union shall be reimbursed for costs which are
6reasonably necessary and which have been directly incurred in
7searching for, reproducing or transporting books, papers,
8records or other data of a member required or requested to be
9produced pursuant to a lawful subpoena, summons, warrant,
10citation to discover assets, or court order. The Secretary and
11the Director may determine, by rule, the rates and conditions
12under which payment shall be made. Delivery of requested
13documents may be delayed until final reimbursement of all costs
14is received.
15(Source: P.A. 98-49, eff. 7-1-13; 99-143, eff. 7-27-15.)
 
16    (205 ILCS 305/62)  (from Ch. 17, par. 4463)
17    Sec. 62. Liquidation.
18    (1) A credit union may elect to dissolve voluntarily and
19liquidate its affairs in the manner prescribed in this Section.
20    (2) The board of directors shall adopt a resolution
21recommending the credit union be dissolved voluntarily, and
22directing that the question of liquidating be submitted to the
23members.
24    (3) Within 10 days after the board of directors decides to
25submit the question of liquidation to the members, the chairman

 

 

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1or president shall notify the Secretary thereof, in writing,
2setting forth the reasons for the proposed action. Within 10
3days after the members act on the question of liquidation, the
4chairman or president shall notify the Secretary, in writing,
5as to whether or not the members approved the proposed
6liquidation. The Secretary then must determine whether this
7Section has been complied with and if his decision is
8favorable, he shall prepare a certificate to the effect that
9this Section has been complied with, a copy of which will be
10retained by the Department and the other copy forwarded to the
11credit union. The certificate must be filed with the recorder
12or if there is no recorder, in the office of the county clerk
13of the county or counties in which the credit union is
14operating, whereupon the credit union must cease operations
15except for the purpose of its liquidation.
16    (4) As soon as the board of directors passes a resolution
17to submit the question of liquidation to the members, payment
18on shares, withdrawal of shares, making any transfer of shares
19to loans and interest, making investments of any kind and
20granting loans shall be suspended pending action by members. On
21approval by the members of such proposal, all such operations
22shall be permanently discontinued. The necessary expenses of
23operating shall, however, continue to be paid on authorization
24of the board of directors or the liquidating agent during the
25period of liquidation.
26    (5) For a credit union to enter voluntary liquidation, it

 

 

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1must be approved by affirmative vote of the members owning a
2majority of the shares entitled to vote, in person or by proxy,
3at a regular or special meeting of the members. Notice, in
4writing, shall be given to each member, by first class mail, at
5least 10 days prior to such meeting. If liquidation is
6approved, the board of directors shall appoint a liquidating
7agent for the purpose of conserving and collecting the assets,
8closing the affairs of the credit union and distributing the
9assets as required by this Act.
10    (6) A liquidating credit union shall continue in existence
11for the purpose of discharging its debts, collecting and
12distributing its assets, and doing all acts required in order
13to terminate its operations and may sue and be sued for the
14purpose of enforcing such debts and obligations until its
15affairs are fully adjusted.
16    (7) Subject to such rules and regulations as the Secretary
17may promulgate, the liquidating agent shall use the assets of
18the credit union to pay; first, expenses incidental to
19liquidating including any surety bond that may be required;
20then, liabilities of the credit union; then special classes of
21shares. The remaining assets shall then be distributed to the
22members proportionately to the dollar value of the shares held
23by each member in relation to the total dollar value of all
24shares outstanding as of the date the dissolution was voted.
25    (8) As soon as the liquidating agent determines that all
26assets as to which there is a reasonable expectancy of sale or

 

 

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1transfer have been liquidated and distributed as set forth in
2this Section, he shall execute a certificate of dissolution on
3a form prescribed by the Department and file the same, together
4with all pertinent books and records of the liquidating credit
5union with the Department, whereupon such credit union shall be
6dissolved. The liquidating agent must, within 3 years after
7issuance of a certificate by the Secretary referred to in
8Subsection (3) of this Section, discharge the debts of the
9credit union, collect and distribute its assets and do all
10other acts required to wind up its business.
11    (9) If the Secretary determines that the liquidating agent
12has failed to make reasonable progress in the liquidating of
13the credit union's affairs and distribution of its assets or
14has violated this Act, the Secretary may take possession and
15control of the credit union and remove the liquidating agent
16and appoint a liquidating agent to complete the liquidation
17under his direction and control. The Secretary shall fill any
18vacancy caused by the resignation, death, illness, removal,
19desertion or incapacity to function of the liquidating agent.
20    (10) Any funds representing unclaimed dividends and shares
21in liquidation and remaining in the hands of the board of
22directors or the liquidating agent at the end of the
23liquidation must be deposited by them, together with all books
24and papers of the credit union, with the State Treasurer in
25compliance with the Revised Uniform Disposition of Unclaimed
26Property Act, approved August 17, 1961, as amended.

 

 

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1(Source: P.A. 97-133, eff. 1-1-12.)
 
2    Section 17-65. The Currency Exchange Act is amended by
3changing Sections 15.1b and 19.3 as follows:
 
4    (205 ILCS 405/15.1b)  (from Ch. 17, par. 4827)
5    Sec. 15.1b. Liquidation; distribution; priority. The
6General Assembly finds and declares that community currency
7exchanges provide important and vital services to Illinois
8citizens. The General Assembly also finds that in providing
9such services, community currency exchanges transact extensive
10business involving check cashing and the writing of money
11orders in communities in which banking services are generally
12unavailable. It is therefore declared to be the policy of this
13State that customers who receive these services must be
14protected from insolvencies of currency exchanges and
15interruptions of services. To carry out this policy and to
16insure that customers of community currency exchanges are
17protected in the event it is determined that a community
18currency exchange in receivership should be liquidated in
19accordance with Section 15.1a of this Act, the Secretary shall
20make a distribution of moneys collected by the receiver in the
21following order of priority: First, allowed claims for the
22actual necessary expenses of the receivership of the community
23currency exchange being liquidated, including (a) reasonable
24receiver fees and receiver's attorney's fees approved by the

 

 

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1Secretary, (b) all expenses of any preliminary or other
2examinations into the condition of the community currency
3exchange or receivership, (c) all expenses incurred by the
4Secretary which are incident to possession and control of any
5property or records of the community currency exchange, and (d)
6reasonable expenses incurred by the Secretary as the result of
7business agreements or contractual arrangements necessary to
8insure that the services of the community currency exchanges
9are delivered to the community without interruption. Said
10business agreements or contractual arrangements may include,
11but are not limited to, agreements made by the Secretary, or by
12the Receiver with the approval of the Secretary, with banks,
13money order companies, bonding companies and other types of
14financial institutions; Second, allowed claims by a purchaser
15of money orders issued on demand of the community currency
16exchange being liquidated; Third, allowed claims arising by
17virtue of and to the extent of the amount a utility customer
18deposits with the community currency exchange being liquidated
19which are not remitted to the utility company; Fourth, allowed
20claims arising by virtue of and to the extent of the amount
21paid by a purchaser of Illinois license plates, vehicle
22stickers sold for State and municipal governments in Illinois,
23and temporary Illinois registration permits purchased at the
24currency exchange being liquidated; Fifth, allowed unsecured
25claims for wages or salaries, excluding vacation, severance and
26sick leave pay earned by employee earned within 90 days prior

 

 

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1to the appointment of a Receiver; Sixth, secured claims;
2Seventh, allowed unsecured claims of any tax, and interest and
3penalty on the tax; Eighth, allowed unsecured claims other than
4a kind specified in paragraph one, two and three of this
5Section, filed with the Secretary within the time the Secretary
6fixes for filing claims; Ninth, allowed unsecured claims, other
7than a kind specified in paragraphs one, two and three of this
8Section filed with the Secretary after the time fixed for
9filing claims by the Secretary; Tenth, allowed creditor claims
10asserted by an owner, member, or stockholder of the community
11currency exchange in liquidation; Eleventh, after one year from
12the final dissolution of the currency exchange, all assets not
13used to satisfy allowed claims shall be distributed pro rata to
14the owner, owners, members, or stockholders of the currency
15exchange.
16    The Secretary shall pay all claims of equal priority
17according to the schedule set out above, and shall not pay
18claims of lower priority until all higher priority claims are
19satisfied. If insufficient assets are available to meet all
20claims of equal priority, those assets shall be distributed pro
21rata among those claims. All unclaimed assets of a currency
22exchange shall be deposited with the Secretary to be paid out
23by him when proper claims therefor are presented to the
24Secretary. If there are funds remaining after the conclusion of
25a receivership of an abandoned currency exchange, the remaining
26funds shall be considered unclaimed property and remitted to

 

 

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1the State Treasurer under the Revised Uniform Disposition of
2Unclaimed Property Act.
3(Source: P.A. 97-315, eff. 1-1-12.)
 
4    (205 ILCS 405/19.3)  (from Ch. 17, par. 4838)
5    Sec. 19.3. (A) The General Assembly hereby finds and
6declares: community currency exchanges and ambulatory currency
7exchanges provide important and vital services to Illinois
8citizens. In so doing, they transact extensive business
9involving check cashing and the writing of money orders in
10communities in which banking services are generally
11unavailable. Customers of currency exchanges who receive these
12services must be protected from being charged unreasonable and
13unconscionable rates for cashing checks and purchasing money
14orders. The Illinois Department of Financial and Professional
15Regulation has the responsibility for regulating the
16operations of currency exchanges and has the expertise to
17determine reasonable maximum rates to be charged for check
18cashing and money order purchases. Therefore, it is in the
19public interest, convenience, welfare and good to have the
20Department establish reasonable maximum rate schedules for
21check cashing and the issuance of money orders and to require
22community and ambulatory currency exchanges to prominently
23display to the public the fees charged for all services. The
24Secretary shall review, each year, the cost of operation of the
25Currency Exchange Section and the revenue generated from

 

 

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1currency exchange examinations and report to the General
2Assembly if the need exists for an increase in the fees
3mandated by this Act to maintain the Currency Exchange Section
4at a fiscally self-sufficient level. The Secretary shall
5include in such report the total amount of funds remitted to
6the State and delivered to the State Treasurer by currency
7exchanges pursuant to the Revised Uniform Disposition of
8Unclaimed Property Act.
9    (B) The Secretary shall, by rules adopted in accordance
10with the Illinois Administrative Procedure Act, expeditiously
11formulate and issue schedules of reasonable maximum rates which
12can be charged for check cashing and writing of money orders by
13community currency exchanges and ambulatory currency
14exchanges.
15        (1) In determining the maximum rate schedules for the
16