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Public Act 097-0270


 

Public Act 0270 97TH GENERAL ASSEMBLY

  
  
  

 


 
Public Act 097-0270
 
HB1560 EnrolledLRB097 08604 AJO 50211 b

    AN ACT concerning civil law.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Uniform Disposition of Unclaimed Property
Act is amended by changing Sections 2 and 2a as follows:
 
    (765 ILCS 1025/2)  (from Ch. 141, par. 102)
    Sec. 2. Property held by financial organizations;
presumption of abandonment. The following property held or
owing by a banking or financial organization is presumed
abandoned:
    (a) Any demand, savings, or matured time deposit with a
banking organization, together with any interest or dividend
thereon, excluding any charges that may lawfully be withheld,
unless the owner has, within 5 years:
        (1) Increased or decreased the amount of the deposit,
    or presented the passbook or other similar evidence of the
    deposit for the crediting of interest; or
        (2) Corresponded in writing with the banking
    organization concerning the deposit;
        (3) Otherwise indicated an interest in the deposit as
    evidenced by a memorandum on file with the banking
    organization; or
        (4) Engaged in the following activity regarding other
    funds or loan accounts with the banking organization:
            (i) undertook one or more the above actions
        described in subsection (a) of this Section regarding
        any account that appears on a consolidated statement
        with the inactive account;
            (ii) increased or decreased the amount of funds in
        any other account the owner has with the banking
        organization; or
            (iii) engaged in any other relationship with the
        banking organization, including payment of any amounts
        due on a loan.
    The foregoing apply so long as the mailing address for the
owner in the banking organization's books and records is the
same for both the inactive account and for the active account.
    (b) Any funds paid toward the purchase of withdrawable
shares or other interest in a financial organization, or any
deposit made, and any interest or dividends thereon, excluding
any charges that may be lawfully withheld, unless the owner has
within 5 years:
        (1) Increased or decreased the amount of the funds, or
    deposit, or presented an appropriate record for the
    crediting of interest or dividends; or
        (2) Corresponded in writing with the financial
    organization concerning the funds or deposit;
        (3) Otherwise indicated an interest in the funds or
    deposit as evidenced by a memorandum on file with the
    financial organization; or
        (4) Engaged in the following activity regarding other
    funds or loan accounts with the financial organization:
            (i) undertook one or more the above actions
        described in subsection (b) of this Section regarding
        any account that appears on a consolidated statement
        with the inactive account;
            (ii) increased or decreased the amount of funds in
        any other account the owner has with the financial
        organization; or
            (iii) engaged in any other relationship with the
        financial organization, including payment of any
        amounts due on a loan.
    The foregoing apply so long as the mailing address for the
owner in the financial organization's books and records is the
same for both the inactive account and for the active account.
    (c) Any sum payable on checks or on written instruments on
which a banking or financial organization or business
association is directly liable including, by way of
illustration but not of limitation, certificates of deposit,
drafts, money orders and travelers checks, that with the
exception of travelers checks and unclaimed wages, payroll, and
salary has been outstanding for more than 5 years from the date
it was payable, or from the date of its issuance if payable on
demand, or, in the case of travelers checks, that has been
outstanding for more than 15 years from the date of its
issuance, or, in the case of unclaimed wages, payroll, or
salary, that has been outstanding for more than one year from
the date of its issuance, excluding any charges that may be
lawfully withheld relating to money orders issued by currency
exchanges, unless the owner has within 5 years (or within 15
years in the case of travelers checks or one year in the case
of unclaimed wages, payroll, or salary) corresponded in writing
with the banking or financial organization or business
association concerning it, or otherwise indicated an interest
as evidenced by a memorandum on file with the banking or
financial organization or business association.
    (d) Any funds or other personal property, tangible or
intangible, removed from a safe deposit box or any other
safekeeping repository or agency or collateral deposit box on
which the lease or rental period has expired due to nonpayment
of rental charges or other reason, or any surplus amounts
arising from the sale thereof pursuant to law, that have been
unclaimed by the owner for more than 5 years from the date on
which the lease or rental period expired, subject to lien of
the holder for reimbursement of costs incurred in the opening
of a safe deposit box as determined by the holder's regular
schedule of charges.
    (e) Notwithstanding any other provision of this Section, no
deposit except passbook, checking, NOW accounts, super NOW
accounts, money market accounts, or such similar accounts as
established by Rule of the State Treasurer, held by a banking
or financial organization shall be presumed abandoned if with
respect to such a deposit which specifies a definite maturity
date, such organization was authorized in writing to extend or
rollover the account for an additional like period and such
organization does so extend. Such deposits are not presumed
abandoned less than 5 years from that final maturity date.
Property of any kind held in an individual retirement account
(IRA) is not presumed abandoned earlier than 5 years after the
owner attains the age at which distributions from the account
become mandatory under law.
    (f) Notwithstanding any other provision of this Section,
money of a minor deposited pursuant to Section 24-21 of the
Probate Act of 1975 shall not be presumed abandoned earlier
than 5 years after the minor attains legal age. Such money
shall be deposited in an account which shall indicate the birth
date of the minor.
(Source: P.A. 94-255, eff. 1-1-06.)
 
    (765 ILCS 1025/2a)  (from Ch. 141, par. 102a)
    Sec. 2a. (a) Business associations shall report, pursuant
to Section 11 of this Act, all property and any earnings
thereon to which the owner would be entitled that have remained
unclaimed for 5 years and are therefore presumed abandoned.
Before reporting and delivering property as required under this
Act, a business association may deduct from the amount of
otherwise reportable intangible personal property the economic
loss suffered by it in connection with that intangible personal
property arising from transactions involving the sale of
tangible personal property at retail. This property shall
consist of, but is not limited to:
        (1) (blank); unclaimed wages;
        (2) deposits or payment for repair or purchase of goods
    or services;
        (3) credit checks or memos, or customer overpayments;
        (4) stocks, bonds, or any other type of securities or
    debt instruments, and interest and dividends therefrom;
        (5) unidentified remittances, unrefunded overcharges;
        (6) unpaid claims, unpaid accounts payable or unpaid
    commissions; and
        (7) credit balances - accounts receivable, checks
    written off, employee bond buying and profit-sharing.
    (b) Notwithstanding the provisions of subsection (a), any
property due or owed by a business association to or for the
benefit of another business association resulting from a
transaction occurring in the normal and ordinary course of
business shall be exempt from the provisions of this Act.
    (c) Notwithstanding the provisions of subsection (a),
unclaimed wages, payroll, and salary, in any form, shall be
reported after remaining unclaimed for one year, pursuant to
Section 2.
(Source: P.A. 90-167, eff. 7-23-97; 91-688, eff. 3-23-00.)
 
    Section 99. Effective date. This Act takes effect upon
becoming law.

Effective Date: 8/8/2011