765 ILCS 1026/ Revised Uniform Unclaimed Property Act.

(765 ILCS 1026/Art. 10 heading) ARTICLE 10. VERIFIED REPORT OF PROPERTY; EXAMINATION OF RECORDS (Source: P.A. 100-22, eff. 1-1-18.)

(765 ILCS 1026/15-1001)

Sec. 15-1001. Verified report of property. If a person does not file a report required by Section 15-401 or the administrator believes that a person may have filed an inaccurate, incomplete, or false report, the administrator may require the person to file a verified report in a form prescribed by the administrator. The verified report must:

(1) state whether the person is holding property reportable under this Act;

(2) describe property not previously reported or about which the administrator has inquired;

(3) specifically identify property described under paragraph (2) about which there is a dispute whether it is reportable under this Act; and

(4) state the amount or value of the property.

(Source: P.A. 100-22, eff. 1-1-18.)

(765 ILCS 1026/15-1002)

Sec. 15-1002. Examination of records to determine compliance. The administrator, at reasonable times and on reasonable notice, may:

(1) examine the records of any person to determine whether the person has complied with this Act even if the person believes it is not in possession of any property that must be reported, paid, or delivered under this Act;

(2) issue an administrative subpoena requiring the person or agent of the person to make records available for examination; and

(3) bring an action seeking judicial enforcement of the subpoena.

(Source: P.A. 100-22, eff. 1-1-18.)

(765 ILCS 1026/15-1002.1)

Sec. 15-1002.1. Examination of State-regulated financial organizations.

(a) Notwithstanding Section 15-1002 of this Act, for any financial organization for which the Department of Financial and Professional Regulation is the primary prudential regulator, the administrator shall not examine such financial institution unless the administrator has consulted with the Secretary of Financial and Professional Regulation and the Department of Financial and Professional Regulation has not examined such financial organization for compliance with this Act within the past 5 years. The Secretary of Financial and Professional Regulation may waive in writing the provisions of this subsection (a) in order to permit the administrator to examine a financial organization or group of financial organizations for compliance with this Act.

(b) Nothing in this Section shall be construed to prohibit the administrator from examining a financial organization for which the Department of Financial and Professional Regulation is not the primary prudential regulator. Further, nothing in this Act shall be construed to limit the authority of the Department of Financial and Professional Regulation to examine financial organizations.

(c) Notwithstanding Section 15-1002, the administrator may, at reasonable times and upon reasonable notice:

(1) examine the records of a financial organization that is a federally chartered bank, savings bank, or credit union if the administrator has reason to believe that the financial organization has failed to comply with this Act;

(2) issue an administrative subpoena requiring the financial organization or an agent of the financial organization to make records available for examination; and

(3) bring an action seeking judicial enforcement of the subpoena.

The administrator may adopt administrative rules that specify conditions under which the administrator has a reason to believe that a financial organization is not in compliance with this Act.

(Source: P.A. 101-81, eff. 7-12-19; 102-288, eff. 8-6-21.)

(765 ILCS 1026/15-1003)

Sec. 15-1003. Rules for conducting examination.

(a) The administrator shall adopt rules governing procedures and standards for an examination under Section 15-1002; the rules may reference any standards concerning unclaimed property examinations promulgated by the National Association of Unclaimed Property Administrators and shall make provisions for multi-state examinations.

(b) After the adoption of rules under subsection (a), an examination under Section 15-1002 must be performed under the rules adopted under subsection (a).

(c) If a person subject to examination under Section 15-1002 has filed the reports required under Section 15-401 and Section 15-1001 and has retained the records required by Section 15-404, the following rules apply:

(1) The examination must include a review of the person's records.

(2) The examination may not be based on an estimate unless the person expressly consents in a record to the use of an estimate.

(3) The person conducting the examination shall consider the evidence presented in good faith by the person in preparing the findings of the examination under Section 15-1007.

(Source: P.A. 100-22, eff. 1-1-18.)

(765 ILCS 1026/15-1004)

Sec. 15-1004. Records obtained in examination. Records obtained and records, including work papers, compiled by the administrator or administrator's agent in the course of conducting an examination under Section 15-1002 or Section 15-1002.1:

(1) are subject to the confidentiality and security provisions of Article 14 and are exempt from disclosure under the Freedom of Information Act;

(2) may be used by the administrator in an action to collect property or otherwise enforce this Act;

(3) may be used in a joint examination conducted with another state, the United States, a foreign country or subordinate unit of a foreign country, or any other governmental entity if the governmental entity conducting the examination is legally bound to maintain the confidentiality and security of information obtained from a person subject to examination in a manner substantially equivalent to Article 14;

(4) may be disclosed, on request, to the person that administers the unclaimed property law of another state for that state's use in circumstances equivalent to circumstances described in this Article, if the other state is required to maintain the confidentiality and security of information obtained in a manner substantially equivalent to Article 14;

(5) must be produced by the administrator under an administrative or judicial subpoena or administrative or court order; and

(6) must be produced by the administrator on request of the person subject to the examination in an administrative or judicial proceeding relating to the property.

(Source: P.A. 102-288, eff. 8-6-21.)

(765 ILCS 1026/15-1005)

Sec. 15-1005. Evidence of unpaid debt or undischarged obligation.

(a) A record of a putative holder showing an unpaid debt or undischarged obligation is prima facie evidence of the debt or obligation.

(b) A putative holder may establish by a preponderance of the evidence that there is no unpaid debt or undischarged obligation for a debt or obligation described in subsection (a) or that the debt or obligation was not, or no longer is, a fixed and certain obligation of the putative holder.

(c) A putative holder may overcome prima facie evidence under subsection (a) by establishing by a preponderance of the evidence that a check, draft, or similar instrument was:

(1) issued as an unaccepted offer in settlement of an unliquidated amount;

(2) issued but later was replaced with another instrument because the earlier instrument was lost or contained an error that was corrected;

(3) issued to a party affiliated with the issuer;

(4) paid, satisfied, or discharged;

(5) issued in error;

(6) issued without consideration;

(7) issued but there was a failure of consideration;

(8) voided not later than 90 days after issuance for a valid business reason set forth in a contemporaneous record; or

(9) issued but not delivered to the third-party payee for a sufficient reason recorded within a reasonable time after issuance.

(d) In asserting a defense under this Section, and subject to the records retention requirements of Section 15-404, a putative holder may present evidence of a course of dealing between the putative holder and the apparent owner.

(Source: P.A. 100-22, eff. 1-1-18.)

(765 ILCS 1026/15-1006)

Sec. 15-1006. Failure of person examined to retain records. If a person subject to examination under Section 15-1002 does not retain the records required by Section 15-404, the administrator may determine the value of property due using a reasonable method of estimation based on all information available to the administrator, including extrapolation and use of statistical sampling when appropriate and necessary, consistent with examination procedures and standards adopted under Section 15-1003. A payment made based on estimation under this Section is a penalty for failure to maintain the records required by Section 15-404 and does not relieve a person from an obligation to report and deliver property to a State in which the holder is domiciled.

(Source: P.A. 100-22, eff. 1-1-18.)

(765 ILCS 1026/15-1007)

Sec. 15-1007. Report to person whose records were examined. At the conclusion of an examination under Section 15-1002, unless waived in writing by the person being examined, the administrator shall provide to the person whose records were examined a report that specifies:

(1) the work performed;

(2) the property types reviewed;

(3) the methodology of any estimation technique, extrapolation, or statistical sampling used in conducting the examination;

(4) each calculation showing the value of property determined to be due; and

(5) the findings of the person conducting the examination.

(Source: P.A. 100-22, eff. 1-1-18.)

(765 ILCS 1026/15-1008)

Sec. 15-1008. Informal conference during examination.

(a) If a person subject to examination under Section 15-1002 believes the person conducting the examination has made an unreasonable or unauthorized request or is not proceeding expeditiously to complete the examination, the person in a record may request an informal conference with the administrator.

(b) If a person in a record requests an informal conference with the administrator, the administrator shall hold the informal conference not later than 30 days after receiving the request. For good cause, and after notice in a record to the person requesting an informal conference, the administrator may extend the time for the holding of an informal conference. The administrator may hold the informal conference in person, by telephone, or by electronic means.

(c) If an informal conference is held under subsection (b), not later than 30 days after the conference ends, the administrator shall provide a response to the person that requested the conference.

(d) The administrator may deny a request for an informal conference under this Section if the administrator reasonably believes that the request was made in bad faith or primarily to delay the examination. If the administrator denies a request for an informal conference the denial shall be in a record provided to the person requesting the informal conference.

(Source: P.A. 100-22, eff. 1-1-18.)

(765 ILCS 1026/15-1009)

Sec. 15-1009. Administrator's contract with another to conduct examination.

(a) The administrator may contract with a person to conduct an examination under this Article. The contract shall be awarded pursuant to a request for proposals issued in compliance with the procurement rules of the administrator.

(b) If the administrator contracts with a person under subsection (a):

(1) the contract may provide for compensation of the person based on a fixed fee, hourly fee, or contingent fee;

(2) a contingent fee arrangement may not provide for a payment that exceeds 15% of the amount or value of property paid or delivered as a result of the examination; and

(3) as authorized in the State Officers and Employees Money Disposition Act, the administrator may permit the deduction of fees from property recovered during an examination under this Article prior to depositing funds received under this Act into the Unclaimed Property Trust Fund.

(c) A contract under subsection (a) is a public record under the Freedom of Information Act.

(Source: P.A. 100-22, eff. 1-1-18.)

(765 ILCS 1026/15-1010)

Sec. 15-1010. Report by administrator. As part of the report required by Section 15 of the State Treasurer Act, the administrator shall compile and include the following information about property presumed abandoned for the preceding fiscal year for the State:

(1) the total amount and value of all property paid or delivered under this Act to the administrator, separated into:

(A) the part voluntarily paid or delivered; and

(B) the part paid or delivered as a result of an examination under Section 15-1002;

(2) the total amount and value of all property paid or delivered by the administrator to persons that made claims for property held by the administrator under this Act;

(3) the amounts expended from the State Pensions Fund; and

(4) such other information as the administrator believes would be useful or informative.

(Source: P.A. 100-22, eff. 1-1-18.)

(765 ILCS 1026/15-1011)

Sec. 15-1011. Determination of liability for unreported reportable property. If the administrator determines from an examination conducted under Section 15-1002 that a putative holder failed or refused to pay or deliver to the administrator property which is reportable under this Act, the administrator shall issue a determination of the putative holder's liability to pay or deliver and give notice in a record to the putative holder of the determination.

(Source: P.A. 100-22, eff. 1-1-18.)