State of Illinois
2017 and 2018


Introduced 2/15/2018, by Sen. Don Harmon


See Index

    Amends the Revised Uniform Unclaimed Property Act. Provides that certain property is presumed abandoned after 5 (instead of 3) years. Provides that compensation held on a payroll card is reportable 5 years after the date of the last indication of interest in the property by the apparent owner. Provides that for purposes of determining certain duties of a reporting institution, a recurring Automated Clearing House (ACH) debit or credit previously authorized by the apparent owner constitutes a deposit or withdrawal by the apparent owner. Deletes language requiring a holder to inform the administrator of the extended date on a certain reported renewable time deposit. Deletes language requiring the administrator to pay interest at the percentage increase, if any, in the Consumer Price Index for All Urban Consumers for all items published by the United States Department of Labor (CPI-U), if lower than the rate the property earned while in the possession of the holder and reported to the administrator. Provides that the administrator may not commence an action or proceeding with respect to a duty of a holder under the Act more than 5 years after the duty arose. Deletes language tolling the period under certain circumstances. Provides that examinations of State-regulated financial organizations shall occur at reasonable times and upon reasonable notice if the State Treasurer has reason to believe that a financial organization has failed to report property and provides that records obtained in such examinations are subject to the same provisions concerning use and confidentiality as records obtained in examinations of other persons. Provides that if the administrator enters into a contract with a person to conduct an examination of a financial organization, the compensation shall be based upon a fixed fee or hourly fee (instead of fixed fee, hourly fee, or contingent fee). Deletes language providing that an initial report filed under the Act for property that was not required to be reported before the effective date of the Act, but that is required to be reported under the Act, must include all items of property that would have been presumed abandoned during the 5-year period preceding the effective date of the Act as if the Act had been in effect during that period. Effective immediately.

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1    AN ACT concerning civil law.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Revised Uniform Unclaimed Property Act is
5amended by changing Sections 15-201, 15-210, 15-603, 15-607,
615-610, 15-1002.1, 15-1004, 15-1009, 15-1401, 15-1402, and
715-1503 as follows:
8    (765 ILCS 1026/15-201)
9    Sec. 15-201. When property presumed abandoned. Subject to
10Section 15-210, the following property is presumed abandoned if
11it is unclaimed by the apparent owner during the period
12specified below:
13        (1) a traveler's check, 15 years after issuance;
14        (2) a money order, 7 years after issuance;
15        (3) any instrument on which a financial organization or
16    business association is directly liable, 5 3 years after
17    issuance;
18        (4) a state or municipal bond, bearer bond, or
19    original-issue-discount bond, 3 years after the earliest
20    of the date the bond matures or is called or the obligation
21    to pay the principal of the bond arises;
22        (5) a debt of a business association, 3 years after the
23    obligation to pay arises;



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



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1            (B) with respect to an amount owed on an annuity
2        contract, 3 years after the death of the annuitant.
3        (9) funds on deposit or held in trust pursuant to the
4    Illinois Funeral or Burial Funds Act, the earliest of:
5            (A) 2 years after the date of death of the
6        beneficiary;
7            (B) one year after the date the beneficiary has
8        attained, or would have attained if living, the age of
9        105 where the holder does not know whether the
10        beneficiary is deceased;
11            (C) 40 years after the contract for prepayment was
12        executed;
13        (10) property distributable by a business association
14    in the course of dissolution or distributions from the
15    termination of a retirement plan, one year after the
16    property becomes distributable;
17        (11) property held by a court, including property
18    received as proceeds of a class action, 3 years after the
19    property becomes distributable;
20        (12) property held by a government or governmental
21    subdivision, agency, or instrumentality, including
22    municipal bond interest and unredeemed principal under the
23    administration of a paying agent or indenture trustee, 3
24    years after the property becomes distributable;
25        (13) wages, commissions, bonuses, or reimbursements to
26    which an employee is entitled, or other compensation for



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1    personal services: , including amounts held on a payroll
2    card, one year after the amount becomes payable;
3            (A) not held on a payroll card, one year after the
4        amount becomes payable; or
5            (B) held on a payroll card, 5 years after the date
6        of the last indication of interest in the property by
7        the apparent owner;
8        (14) a deposit or refund owed to a subscriber by a
9    utility, one year after the deposit or refund becomes
10    payable, except that any capital credits or patronage
11    capital retired, returned, refunded or tendered to a member
12    of an electric cooperative, as defined in Section 3.4 of
13    the Electric Supplier Act, or a telephone or
14    telecommunications cooperative, as defined in Section
15    13-212 of the Public Utilities Act, that has remained
16    unclaimed by the person appearing on the records of the
17    entitled cooperative for more than 2 years, shall not be
18    subject to, or governed by, any other provisions of this
19    Act, but rather shall be used by the cooperative for the
20    benefit of the general membership of the cooperative; and
21        (15) property not specified in this Section or Sections
22    15-202 through 15-208, the earlier of 3 years after the
23    owner first has a right to demand the property or the
24    obligation to pay or distribute the property arises.
25    Notwithstanding anything to the contrary in this Section
2615-201, and subject to Section 15-210, a deceased owner cannot



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1indicate interest in his or her property. If the owner is
2deceased and the abandonment period for the owner's property
3specified in this Section 15-201 is greater than 2 years, then
4the property, other than an amount owed by an insurance company
5on a life or endowment insurance policy or an annuity contract
6that has matured or terminated, shall instead be presumed
7abandoned 2 years from the date of the owner's last indication
8of interest in the property.
9(Source: P.A. 100-22, eff. 1-1-18; 100-566, eff. 1-1-18.)
10    (765 ILCS 1026/15-210)
11    Sec. 15-210. Indication of apparent owner interest in
13    (a) The period after which property is presumed abandoned
14is measured from the later of:
15        (1) the date the property is presumed abandoned under
16    this Article; or
17        (2) the latest indication of interest by the apparent
18    owner in the property.
19    (b) Under this Act, an indication of an apparent owner's
20interest in property includes:
21        (1) a record communicated by the apparent owner to the
22    holder or agent of the holder concerning the property or
23    the account in which the property is held;
24        (2) an oral communication by the apparent owner to the
25    holder or agent of the holder concerning the property or



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1    the account in which the property is held, if the holder or
2    its agent contemporaneously makes and preserves a record of
3    the fact of the apparent owner's communication;
4        (3) presentment of a check or other instrument of
5    payment of a dividend, interest payment, or other
6    distribution, or evidence of receipt of a distribution made
7    by electronic or similar means, with respect to an account,
8    underlying security, or interest in a business
9    association;
10        (4) activity directed by an apparent owner in the
11    account in which the property is held, including accessing
12    the account or information concerning the account, or a
13    direction by the apparent owner to increase, decrease, or
14    otherwise change the amount or type of property held in the
15    account;
16        (5) a deposit into or withdrawal from an account at a
17    financial organization, except for a recurring Automated
18    Clearing House (ACH) debit or credit previously authorized
19    by the apparent owner or an automatic reinvestment of
20    dividends or interest; and
21        (6) subject to subsection (e), payment of a premium on
22    an insurance policy.
23    (c) An action by an agent or other representative of an
24apparent owner, other than the holder acting as the apparent
25owner's agent, is presumed to be an action on behalf of the
26apparent owner.



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1    (d) A communication with an apparent owner by a person
2other than the holder or the holder's representative is not an
3indication of interest in the property by the apparent owner
4unless a record of the communication evidences the apparent
5owner's knowledge of a right to the property.
6    (e) If the insured dies or the insured or beneficiary of an
7insurance policy otherwise becomes entitled to the proceeds
8before depletion of the cash surrender value of the policy by
9operation of an automatic-premium-loan provision or other
10nonforfeiture provision contained in the policy, the operation
11does not prevent the policy from maturing or terminating.
12    (f) If the apparent owner has another property with the
13holder to which Section 201(6) applies, then activity directed
14by an apparent owner in any other accounts, including loan
15accounts, at a financial organization holding an inactive
16account of the apparent owner shall be an indication of
17interest in all such accounts if:
18            (A) the apparent owner engages in one or more of
19        the following activities:
20                (i) the apparent owner undertakes one or more
21            of the actions described in subsection (b) of this
22            Section regarding any account that appears on a
23            consolidated statement with the inactive account;
24                (ii) the apparent owner increases or decreases
25            the amount of funds in any other account the
26            apparent owner has with the financial



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1            organization; or
2                (iii) the apparent owner engages in any other
3            relationship with the financial organization,
4            including payment of any amounts due on a loan; and
5            (B) the foregoing apply so long as the mailing
6        address for the apparent owner in the financial
7        organization's books and records is the same for both
8        the inactive account and the active account.
9(Source: P.A. 100-22, eff. 1-1-18.)
10    (765 ILCS 1026/15-603)
11    Sec. 15-603. Payment or delivery of property to
13    (a) Except as otherwise provided in this Section, on filing
14a report under Section 15-401, the holder shall pay or deliver
15to the administrator the property described in the report.
16    (b) If property in a report under Section 15-401 is an
17automatically renewable time deposit and a penalty or
18forfeiture in the payment of interest would result from paying
19the deposit to the administrator at the time of the report, the
20date for payment of the property to the administrator is
21extended until a penalty or forfeiture no longer would result
22from payment, if the holder informs the administrator of the
23extended date.
24    (c) Tangible property in a safe-deposit box may not be
25delivered to the administrator until a mutually agreed upon



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1date that is no sooner than 60 days after filing the report
2under Section 15-401.
3    (d) If property reported to the administrator under Section
415-401 is a security, the administrator may:
5        (1) make an endorsement, instruction, or entitlement
6    order on behalf of the apparent owner to invoke the duty of
7    the issuer, its transfer agent, or the securities
8    intermediary to transfer the security; or
9        (2) dispose of the security under Section 15-702.
10    (e) If the holder of property reported to the administrator
11under Section 15-401 is the issuer of a certificated security,
12the administrator may obtain a replacement certificate in
13physical or book-entry form under Section 8-405 of the Uniform
14Commercial Code. An indemnity bond is not required.
15    (f) The administrator shall establish procedures for the
16registration, issuance, method of delivery, transfer, and
17maintenance of securities delivered to the administrator by a
19    (g) An issuer, holder, and transfer agent or other person
20acting in good faith under this Section under instructions of
21and on behalf of the issuer or holder is not liable to the
22apparent owner for a claim arising with respect to property
23after the property has been delivered to the administrator.
24    (h) A holder is not required to deliver to the
25administrator a security identified by the holder as a
26non-freely transferable security in a report filed under



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1Section 15-401. If the administrator or holder determines that
2a security is no longer a non-freely transferable security, the
3holder shall report and deliver the security on the next
4regular date prescribed for delivery of securities under this
5Act. The holder shall make a determination annually whether a
6security identified in a report filed under Section 15-401 as a
7non-freely transferable security is no longer a non-freely
8transferable security.
9(Source: P.A. 100-22, eff. 1-1-18.)
10    (765 ILCS 1026/15-607)
11    Sec. 15-607. Crediting income or gain to owner's account.
12    (a) If property other than money is delivered to the
13administrator, the owner is entitled to receive from the
14administrator income or gain realized or accrued on the
15property before the property is sold.
16    (b) Except as provided in subsection (c), interest on money
17is not payable to an owner for periods where the property is in
18the possession of the administrator.
19    (c) If an interest-bearing demand, savings, or time deposit
20is paid or delivered to the administrator on or after July 1,
212018, then the administrator shall pay interest to the owner at
22the lesser of: (i) the percentage increase, if any, in the
23Consumer Price Index for All Urban Consumers for all items
24published by the United States Department of Labor (CPI-U); or
25(ii) the rate the property earned while in the possession of



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1the holder and reported to the administrator. Interest begins
2to accrue when the property is delivered to the administrator
3and ends on the earlier of the expiration of 10 years after its
4delivery or the date on which payment is made to the owner. The
5administrator may establish by administrative rule more
6detailed methodologies for calculating the amount of interest
7to be paid to an owner under this Section using CPI-U or the
8rate the property earned while in the possession of the holder.
9(Source: P.A. 100-22, eff. 1-1-18; 100-566, eff. 1-1-18.)
10    (765 ILCS 1026/15-610)
11    Sec. 15-610. Periods of limitation and repose.
12    (a) Expiration, before, on, or after the effective date of
13this Act, of a period of limitation on an owner's right to
14receive or recover property, whether specified by contract,
15statute, or court order, does not prevent the property from
16being presumed abandoned or affect the duty of a holder under
17this Act to file a report or pay or deliver property to the
19    (b) An action or proceeding may not be maintained by the
20administrator to enforce this Act in regard to the reporting,
21delivery, or payment of property more than 5 10 years after the
22holder specifically identified the property in a report filed
23with the administrator or gave express notice to the
24administrator of a dispute regarding the property. In the
25absence of such a report or other express notice, the period of



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1limitation is tolled. The period of limitation is also tolled
2by the filing of a report that is fraudulent.
3(Source: P.A. 100-22, eff. 1-1-18.)
4    (765 ILCS 1026/15-1002.1)
5    Sec. 15-1002.1. Examination of State-regulated financial
7    (a) Notwithstanding Section 15-1002 of this Act, for any
8financial organization for which the Department of Financial
9and Professional Regulation is the primary prudential
10regulator, the administrator shall not examine such financial
11institution unless the administrator has consulted with the
12Secretary of Financial and Professional Regulation and the
13Department of Financial and Professional Regulation has not
14examined such financial organization for compliance with this
15Act within the past 5 years. The Secretary of Financial and
16Professional Regulation may waive in writing the provisions of
17this subsection (a) in order to permit the administrator to
18examine a financial organization or group of financial
19organizations for compliance with this Act.
20    (b) Nothing in this Section shall be construed to prohibit
21the administrator from examining a financial organization for
22which the Department of Financial and Professional Regulation
23is not the primary prudential regulator. Further, nothing is
24this Act shall be construed to limit the authority of the
25Department of Financial and Professional Regulation to examine



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1financial organizations.
2    (c) Examinations authorized by this Section shall occur at
3reasonable times and upon reasonable notice if the State
4Treasurer has reason to believe that a financial organization
5has failed to report property that should have been reported
6pursuant to this Act.
7(Source: P.A. 100-22, eff. 1-1-18; 100-566, eff. 1-1-18.)
8    (765 ILCS 1026/15-1004)
9    Sec. 15-1004. Records obtained in examination. Records
10obtained and records, including work papers, compiled by the
11administrator or administrator's agent in the course of
12conducting an examination under Section 15-1002 or Section
14        (1) are subject to the confidentiality and security
15    provisions of Article 14 and are exempt from disclosure
16    under the Freedom of Information Act;
17        (2) may be used by the administrator in an action to
18    collect property or otherwise enforce this Act;
19        (3) may be used in a joint examination conducted with
20    another state, the United States, a foreign country or
21    subordinate unit of a foreign country, or any other
22    governmental entity if the governmental entity conducting
23    the examination is legally bound to maintain the
24    confidentiality and security of information obtained from
25    a person subject to examination in a manner substantially



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1    equivalent to Article 14;
2        (4) may be disclosed, on request, to the person that
3    administers the unclaimed property law of another state for
4    that state's use in circumstances equivalent to
5    circumstances described in this Article, if the other state
6    is required to maintain the confidentiality and security of
7    information obtained in a manner substantially equivalent
8    to Article 14;
9        (5) must be produced by the administrator under an
10    administrative or judicial subpoena or administrative or
11    court order; and
12        (6) must be produced by the administrator on request of
13    the person subject to the examination in an administrative
14    or judicial proceeding relating to the property.
15(Source: P.A. 100-22, eff. 1-1-18.)
16    (765 ILCS 1026/15-1009)
17    Sec. 15-1009. Administrator's contract with another to
18conduct examination.
19    (a) The administrator may contract with a person to conduct
20an examination under this Article. The contract shall be
21awarded pursuant to a request for proposals issued in
22compliance with the procurement rules of the administrator.
23    (b) If the administrator contracts with a person under
24subsection (a):
25        (1) the contract may provide for compensation of the



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1    person based on a fixed fee, hourly fee, or contingent fee,
2    except that with respect to the examination of a financial
3    organization, the compensation shall be based upon a fixed
4    fee or hourly fee;
5        (2) a contingent fee arrangement may not provide for a
6    payment that exceeds 15% of the amount or value of property
7    paid or delivered as a result of the examination; and
8        (3) as authorized in the State Officers and Employees
9    Money Disposition Act, the administrator may permit the
10    deduction of fees from property recovered during an
11    examination under this Article prior to depositing funds
12    received under this Act into the Unclaimed Property Trust
13    Fund.
14    (c) A contract under subsection (a) is a public record
15under the Freedom of Information Act.
16(Source: P.A. 100-22, eff. 1-1-18.)
17    (765 ILCS 1026/15-1401)
18    Sec. 15-1401. Confidential information.
19    (a) Except as otherwise provided in this Section,
20information that is confidential under law of this State other
21than this Act, another state, or the United States, including
22"private information" as defined in the Freedom of Information
23Act and "personal information" as defined in the Personal
24Information Protection Act, continues to be confidential when
25disclosed or delivered under this Act to the administrator or



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1administrator's agent.
2    (b) Information provided in reports filed pursuant to
3Section 15-401, information obtained in the course of an
4examination pursuant to Section 15-1002 or Section 15-1002.1,
5and the database required by Section 15-503 is exempt from
6disclosure under the Freedom of Information Act.
7    (c) If reasonably necessary to enforce or implement this
8Act, the administrator or the administrator's agent may
9disclose confidential information concerning property held by
10the administrator or the administrator's agent to:
11        (1) an apparent owner or the apparent owner's
12    representative under the Probate Act of 1975, attorney,
13    other legal representative, or relative;
14        (2) the representative under the Probate Act of 1975,
15    other legal representative, relative of a deceased
16    apparent owner, or a person entitled to inherit from the
17    deceased apparent owner;
18        (3) another department or agency of this State or the
19    United States;
20        (4) the person that administers the unclaimed property
21    law of another state, if the other state accords
22    substantially reciprocal privileges to the administrator
23    of this State if the other state is required to maintain
24    the confidentiality and security of information obtained
25    in a manner substantially equivalent to Article 14;
26        (5) a person subject to an examination as required by



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1    Section 15-1004; and
2        (6) an agent of the administrator.
3    (d) The administrator may include on the website or in the
4database the names and addresses of apparent owners of property
5held by the administrator as provided in Section 15-503. The
6administrator may include in published notices, printed
7publications, telecommunications, the Internet, or other media
8and on the website or in the database additional information
9concerning the apparent owner's property if the administrator
10believes the information will assist in identifying and
11returning property to the owner and does not disclose personal
12information as defined in the Personal Information Protection
14    (e) The administrator and the administrator's agent may not
15use confidential information provided to them or in their
16possession except as expressly authorized by this Act or
17required by law other than this Act.
18(Source: P.A. 100-22, eff. 1-1-18; 100-566, eff. 1-1-18.)
19    (765 ILCS 1026/15-1402)
20    Sec. 15-1402. Confidentiality agreement. A person to be
21examined under Section 15-1002 or Section 15-1002.1 may
22require, as a condition of disclosure of the records of the
23person to be examined, that the administrator or the
24administrator's agent execute and deliver to the person to be
25examined a confidentiality agreement that:



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1        (1) is in a form that is reasonably satisfactory to the
2    administrator; and
3        (2) requires the person having access to the records to
4    comply with the provisions of this Article applicable to
5    the person.
6(Source: P.A. 100-22, eff. 1-1-18.)
7    (765 ILCS 1026/15-1503)
8    Sec. 15-1503. Transitional provision.
9    (a) (Blank). An initial report filed under this Act for
10property that was not required to be reported before the
11effective date of this Act, but that is required to be reported
12under this Act, must include all items of property that would
13have been presumed abandoned during the 5-year period preceding
14the effective date of this Act as if this Act had been in
15effect during that period.
16    (b) This Act does not relieve a holder of a duty that arose
17before the effective date of this Act to report, pay, or
18deliver property. Subject to subsection (b) of Section 15-610,
19a holder that did not comply with the law governing unclaimed
20property before the effective date of this Act is subject to
21applicable provisions for enforcement and penalties in effect
22before the effective date of this Act.
23(Source: P.A. 100-22, eff. 1-1-18.)
24    Section 99. Effective date. This Act takes effect upon
25becoming law.



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2 Statutes amended in order of appearance
3    765 ILCS 1026/15-201
4    765 ILCS 1026/15-210
5    765 ILCS 1026/15-603
6    765 ILCS 1026/15-607
7    765 ILCS 1026/15-610
8    765 ILCS 1026/15-1002.1
9    765 ILCS 1026/15-1004
10    765 ILCS 1026/15-1009
11    765 ILCS 1026/15-1401
12    765 ILCS 1026/15-1402
13    765 ILCS 1026/15-1503