TITLE 74: PUBLIC FINANCE
CHAPTER V: TREASURER
PART 760
REVISED UNIFORM UNCLAIMED PROPERTY ACT
SECTION 760.100 DEFINITIONS
Section 760.100 Definitions
"Act"
or "Revised Act" means the Revised Uniform Unclaimed Property Act
[765 ILCS 1026].
"Administrator" means the State Treasurer.
"Administrator's
Agent" or "Auditor" means
a person with whom the administrator contracts to conduct an examination under
Article 10 of the Act on behalf of the administrator. The term includes an
independent contractor of the person and each individual participating in the
examination on behalf of the person or contractor. [765 ILCS 1026/15-102]
"Affiliated
Group of Merchants" means 2 or more affiliated merchants or other persons
that are related by common ownership or common corporate control and that share
the same name, mark, or logo. The term also applies to 2 or more merchants or
other persons that agree among themselves, by contract or otherwise, to redeem
cards, codes, or other devices bearing the same name, mark, or logo (other than
the mark, logo, or brand of a payment network), for the purchase of goods or
services solely at such merchants or persons. However, merchants or other
persons are not considered to be affiliated merely because they agree to accept
a card that bears the mark, logo, or brand of a payment network.
"Apparent
Owner" means a person whose name appears on the records of a holder as the
owner of property held, issued or owing by the holder.
"Business
Association" means a corporation, joint stock company, investment company,
unincorporated association, joint venture, limited liability company, business
trust, trust company, land bank, safe deposit company, safekeeping depository,
financial organization, insurance company, federally chartered entity, utility,
sole proprietorship, or other business entity, whether or not for profit.
"Confidential
Information" means information that is "personal information"
under the Personal Information Protection Act [815 ILCS 530/5], "private information" under
the Freedom of Information Act [5 ILCS 140/2(c-5)], or personal
information contained within public records, the disclosure of which would
constitute a clearly unwarranted invasion of personal privacy, unless the
disclosure is consented to in writing by the individual subjects of the
information as provided in the Freedom of Information Act [5 ILCS
140/7(1)(c)].
"Debt
Collection Agency" means any person who uses any instrumentality of
interstate commerce or mail in any business the principal purpose of which is
the collection of debts, or who regularly
collects or attempts to collect, directly or indirectly, debts owed or due, or
asserted to be owed or due, to another. The term debt collection agency
excludes any officer or employee of a creditor while the officer or employee is
collecting debts for the creditor in the creditor’s name.
"Domicile" means:
for a corporation, the state of its incorporation;
for a
business association whose formation requires a filing with a state, other than
a corporation, the state of its filing;
for a
federally chartered entity or an investment company registered under the
Investment Company Act of 1940 (15 U.S.C.
80a-1 through 80a-63), the state of its home office; and
for
any other holder, the state of its principal place of business. [765 ILCS 1026/15-102]
"DOR"
means the Illinois Department of Revenue.
"Electronic"
means relating to technology having electrical, digital, magnetic, wireless,
optical, electromagnetic or similar capabilities.
"Electronic
Mail" or "E-mail" means
a communication by electronic means that is automatically retained and stored
and may be readily accessed or retrieved.
"Escheat
Fee" means any charge imposed solely by virtue of property being reported
as presumed abandoned.
"Financial
Organization" means a bank, savings bank, foreign bank, corporate
fiduciary, currency exchange, money transmitter, or credit union. [765 ILCS 1026/15-102]
"Former
Act" means the Uniform Disposition of Unclaimed Property Act [765 ILCS
1025], repealed effective January 1, 2018.
"Game-Related
Digital Content" means digital content that exists only in an electronic
game or electronic game platform. The term includes:
game-play
currency such as a virtual wallet, even if denominated in United States
currency;
the
following, if for use or redemption only within the game or platform or another
electronic game or electronic game platform:
points
sometimes referred to as gems, tokens, gold and similar names; and
digital
codes; and
does not include an item that the issuer:
permits
to be redeemed for use outside a game or platform for money or goods/services
that have more than minimal value; or
otherwise monetizes for use outside a game or platform.
"Gift
Card" means a record evidencing a promise made for consideration by the
seller or issuer of the record that goods, services or money will be provided
to the owner of the record to the value or amount shown in the record that is
either:
a record:
issued
on a prepaid basis primarily for personal, family or household purposes to a
consumer in a specified amount;
the value of which does not expire;
that
is not subject to a dormancy, inactivity or post-sale service fee;
that
is redeemable upon presentation for goods or services; and
that,
unless required by law, may not be redeemed for or converted into money or
otherwise monetized by the issuer; or
a
prepaid commercial mobile radio service, as defined in 47 CFR 20.3.
"Holder"
means a person obligated to hold for the account of, or to deliver or pay to,
the owner, property subject to the Act.
"Insurance
Company" means an association, corporation or fraternal or mutual-benefit
organization, whether or not for profit, engaged in the business of providing
life endowments, annuities or insurance, including accident, burial, casualty,
credit-life, contract performance, dental, disability, fidelity, fire, health,
hospitalization, illness, life, malpractice, marine, mortgage, surety, wage protection,
and workers' compensation insurance.
"Loyalty
Card" means a record given without direct monetary consideration under an
award, reward, benefit, loyalty, incentive, rebate, or promotional program that
may be used or redeemed only to obtain goods or services or a discount on goods
or services. The term does not include a record that may be redeemed for money
or otherwise monetized by the issuer. [765
ILCS 1026/15-102]
"Merchandise
Credit" means in-store credit for returned merchandise redeemable for
merchandise, goods or services upon presentation at a single merchant or an
affiliated group of merchants.
"Mineral"
means gas, oil, coal, oil shale, other gaseous liquid or solid hydrocarbon,
cement material, sand and gravel, road material, building stone, chemical raw
material, gemstone, fissionable and nonfissionable ores, colloidal and other
clay, steam and other geothermal resources, and any other substance defined as
a mineral by other law of this State.
"Mineral
Proceeds" means an amount payable for extraction, production, or sale of
minerals, or, on the abandonment of the amount, an amount that becomes payable
after abandonment. The term includes an amount payable:
for
the acquisition and retention of a mineral lease, including a bonus, royalty,
compensatory royalty, shut-in royalty, minimum royalty, and delay rental;
for
the extraction, production or sale of minerals, including a net revenue
interest, royalty, overriding royalty, extraction payment, and production
payment; and
under
an agreement or option, including a joint-operating agreement, unit agreement,
pooling agreement, and farm-out agreement.
"Money
Order" means a payment order for a specified amount of money. The term
includes an express money order and a personal money order on which the
remitter is the purchaser.
"Net
Card Value" means the original purchase price or original issued value of
a stored-value card, plus amounts added to the original price or value, minus
amounts used and any service charge, fee, or dormancy charge permitted by law.
"Non-Freely
Transferable Security" means a security that cannot be delivered to the
administrator by the Depository Trust Clearing Corporation or similar custodian
of securities providing post-trade clearing and settlement services to
financial markets or cannot be delivered because there is no agent to effect
transfer. The term includes a worthless security. [765 ILCS 1026/15-102] A non-freely transferable
security includes a security that cannot be delivered to or liquidated by the
administrator because of sanctions and imposed by the federal government,
including sanctions administered by the U.S. Department of the Treasury's
Office of Foreign Assets Control.
"Online sports wagering"
means internet sports gaming and sports betting that is subject to the
applicable laws administered by the Illinois Gaming Board under the Sports
Wagering Act [230 ILCS 45] and the Illinois Racing Board under the Illinois
Horse Racing Act of 1975 [230 ILCS 5].
"Owner",
unless the context otherwise requires, means a person that has a legal,
beneficial, or equitable interest in property subject to the Act or the person's
legal representative when acting on behalf of the owner. The term includes:
a
depositor, for a deposit;
a
beneficiary, for a trust other than a deposit in trust;
a
creditor, claimant or payee, for other property; and
the
lawful bearer of a record that may be used to obtain money, a reward, or a
thing of value.
"Payroll
Card" means a record that evidences a payroll-card account as defined in
12 CFR 1005 (Regulation E). [765 ILCS
1026/15-102]
"Payroll-Card
Account" is an account that is directly or indirectly established through
an employer and to which electronic fund transfers of the consumer's wages,
salary or other employee compensation (such as commissions) are made on a
recurring basis, whether the account is operated or managed by the employer, a
third-party payroll processor, a depository institution, or any other person. See
12 CFR 1005.2(b)(3)(i)(A).
"Person"
means an individual, estate, business association, public corporation,
government or governmental subdivision, agency, or instrumentality, or other
legal entity, whether or not for profit.
"Property"
means tangible property described in Section 15-201 of the Act or a fixed and certain interest in intangible
property held, issued, or owed in the course of a holder's business or by a
government, governmental subdivision, agency or instrumentality. The term:
includes
all income from or increments to the property;
includes
property referred to as or evidenced by:
money,
virtual currency, interest, or a dividend, check, draft, deposit or payroll
card;
a
credit balance, customer's overpayment, stored-value card, security deposit,
refund, credit memorandum, unpaid wage, unused ticket for which the issuer has
an obligation to provide a refund, mineral proceeds, or unidentified
remittance;
a
security except for:
a
worthless security; or
a
security that is subject to a lien, legal hold, or restriction evidenced on the
records of the holder or imposed by operation of law, if the lien, legal hold,
or restriction restricts the holder's or owner's ability to receive, transfer,
sell, or otherwise negotiate the security;
a
bond, debenture, note, or other evidence of indebtedness;
money
deposited to redeem a security, make a distribution, or pay a dividend;
an
amount due and payable under an annuity contract or insurance policy;
an
amount distributable from a trust or custodial fund established under a plan to
provide health, welfare, pension, vacation, severance, retirement, death, stock
purchase, profitsharing, employee savings, supplemental unemployment insurance,
or a similar benefit; and
any
instrument on which a financial organization or business association is
directly liable; and
does
not include:
game related
digital content;
a
loyalty card;
a
gift card; or
funds
on deposit or held in trust pursuant to Section 16 of the Illinois Pre-Need
Cemetery Sales Act. [815 ILCS 390]
"Putative
Holder" means a person believed by the administrator to be a holder, until
the person pays or delivers to the administrator property subject to the Act, or the administrator or a court makes a final
determination that the person is or is not a holder.
"Record"
means information that is inscribed on a tangible medium or that is stored in
an electronic or other medium and is retrievable in perceivable form.
"Records
of the Holder" includes records maintained by a third party that has
contracted with the holder.
"Security" means:
a
security as defined in Article 8 of the Uniform Commercial Code [810 ILCS 5/8-102];
a
security entitlement as defined in Article 8 of the Uniform Commercial Code,
including a customer security account held by a registered broker-dealer, to
the extent the financial assets held in the security account are not:
registered
on the books of the issuer in the name of the person for which the
broker-dealer holds the assets;
payable
to the order of the person; or
specifically
indorsed to the person; or
an
equity interest in a business association not included in the above paragraph.
"Sign" means, with present intent to authenticate
or adopt a record:
to
execute or adopt a tangible symbol; or
to
attach to or logically associate with the record an electronic symbol, sound or
process.
"State", when not limited to the State of Illinois, means a
state of the United States, the District of Columbia, the Commonwealth of
Puerto Rico, the United States Virgin Islands, or any territory or insular
possession subject to the jurisdiction of the United States. When
capitalized, the term "State" means the State of Illinois. [765 ILCS
1026/15-102]
"State Treasurer" means the duly elected
Treasurer of the State of Illinois.
"Stored-Value Card" means a card, code, or other
device that is:
issued
on a prepaid basis primarily for personal, family, or household purposes to a
consumer in a specified amount, whether or not that amount may be increased or
reloaded in exchange for payment; and
redeemable
upon presentation at multiple unaffiliated merchants for goods or services or
usable at automated teller machines;
Stored
value card does not include a gift card, payroll card, loyalty card, or game related
digital content.
"Utility"
means a person that owns or operates for public use a plant, equipment, real
property, franchise, or license for the following public services:
transmission
of communications or information;
production,
storage, transmission, sale, delivery, or furnishing of electricity, water,
steam or gas; or
provision
of sewage or septic services, or trash, garbage or recycling disposal.
"Virtual
Currency" means any type of digital unit, including cryptocurrency used as
a medium of exchange, unit of account, or a form of digitally stored value that
does not have legal tender status recognized by the United States. The term
does not include:
the
software or protocols governing the transfer of the digital representation of
value;
game related
digital content; or
a loyalty
card or gift card.
"Worthless
Security" means a security whose cost of liquidation and delivery to the
administrator would exceed the value of the security on the date a report is
due under the Act. [765 ILCS
1026/15-102]
(Source:
Amended at 48 Ill. Reg. 14162, effective September 10, 2024)
SUBPART B: PRESUMPTION OF ABANDONMENT
 | TITLE 74: PUBLIC FINANCE
CHAPTER V: TREASURER
PART 760
REVISED UNIFORM UNCLAIMED PROPERTY ACT
SECTION 760.200 TAX-DEFERRED AND TAX-EXEMPT ACCOUNTS
Section 760.200 Tax-Deferred and Tax-Exempt Accounts
a) Sections 15-202 and 15-203 of the Act indicate
when "tax deferred" and "tax exempt" accounts are
presumptively abandoned. Section 15-202 prescribes the rules for tax deferred and
tax exempt retirement accounts and Section 15-203 prescribes the rules for
other tax deferred accounts. These rules for tax deferred and tax exempt accounts
generally have longer periods of abandonment than accounts covered by Section
15-201 of the Act.
b) A Roth IRA is covered under Section 15-202.
c) In some cases, federal law, specifically ERISA (29
U.S.C. 1001 et seq.), may preempt the Act and prevent reporting and remitting
retirement accounts or other property representing a retirement plan asset that
would otherwise be reportable under the Act. Concerning ERISA preemption and
unclaimed property statutes, see Commonwealth Edison Co. v. Vega, 174 F.3d 870 (7th Cir.
1999). Nonqualified, government and church
plans are not subject to an ERISA preemption, nor are uncashed plan
distribution checks issued by a qualified plan that lacks, or has failed to
exercise, a forfeiture or other reversionary interest.
d) If a holder is uncertain whether an account
qualifies as tax deferred or tax exempt under the Act (i.e., whether the
account is covered by Section 15-201 or by Sections 15-202 and 15-203), whether
ERISA preempts the Act for a retirement account, or whether an account is
covered by Section 15-202 or Section 15-203, the holder may specifically
identify the property in a report filed with the administrator or give express
notice to the administrator of a potential dispute regarding the property.
Specifically identifying the property in a report or providing express notice
to the administrator both ensures that the property will be covered by the
limitations period of Section 15-610 of the Act and demonstrates that the
holder is attempting to comply with the Act in good faith and without
negligence. Specifically identifying the property in a report filed with the
administrator indicating that the property is not being remitted because ERISA
preemption allows a holder to satisfy both its fiduciary obligation under ERISA,
which would generally prohibit remitting the property to the administrator, and
any obligation under the Act.
e) Pursuant to Section 15-405 of the Act (property
reportable and payable or deliverable absent owner demand provision) and
Section 15-610(a) of the Act (anti-limitations provision) a nonqualified plan
or plan not otherwise subject to preemption under ERISA is prohibited from
forfeiting an account or other property.
f) The administrator will accept missing
participants' account balances reported and remitted by an ERISA plan fiduciary
for a terminated defined contribution plan. See United States Department of
Labor Field Assistance Bulletin No. 2014-01 (available at www.dol.gov/agencies/ebsa/employers-and-advisers/guidance/field-assistance-bulletins),
which indicates that, despite the ERISA preemption for ongoing plans, a plan
fiduciary may report and remit "missing participants' account balances
under a state's unclaimed property statute to complete the plan termination
process".
(Source:
Amended at 46 Ill. Reg. 16898, effective September 26, 2022)
| TITLE 74: PUBLIC FINANCE
CHAPTER V: TREASURER
PART 760
REVISED UNIFORM UNCLAIMED PROPERTY ACT
SECTION 760.210 SAFE DEPOSIT BOXES
Section 760.210 Safe Deposit Boxes
a) Safe deposit boxes with contents that have
remained unclaimed for 5 years after expiration of the lease or rental period
are presumed abandoned. [765 ILCS 1026/15-205] Presumptively abandoned
boxes shall be opened and inventoried in the presence of at least two employees
of the holder who shall verify the accuracy of the inventory. The property
shall then be sealed for safekeeping until delivered to the owner or the
administrator.
b) The Annual Report containing information about
the contents of safe deposit boxes must be filed before November 1, for
financial organizations, and before May 1, for all other business associations,
in the year in which the report is due. The Annual Report is to be submitted
online. If a holder provides safe deposit boxes, then the Annual Report must be
completed in its entirety, verified for accuracy, and filed regardless of
whether a holder has abandoned safe deposit boxes to report. A "negative
report" indicating no safe deposit box contents are being reported and
remitted serves as a control to assist in detecting and preventing fraud or
theft.
c) Notice to the apparent owner must be given prior
to remittance to the administrator.
1) The holder of property presumed abandoned
shall send to the apparent owner notice by first-class United States mail that
complies with Section 15-502 of the Act in a format acceptable to the
administrator not more than one year nor less than 60 days before filing the
Annual Report under Section 15-401 of the Act if:
A) the holder has in its records an address for
the apparent owner that the holder's records do not disclose to be invalid and
is sufficient to direct the delivery of first-class United States mail to the
apparent owner; and
B) the value of the property is $50 or more.
2) If an apparent owner has consented to receive
electronic-mail delivery from the holder, the holder shall send the notice both
by first-class United States mail to the apparent owner's last-known mailing
address and by electronic mail, unless the holder believes that the apparent
owner's electronic-mail address is invalid. [765 ILCS 1026/15-501]
d) Tangible property from a safe deposit box may
not be delivered to the administrator until a mutually agreed upon date that is
no sooner than 60 days after filing the Annual Report. [765 ILCS
1026/15-603(b)]
1) All safe deposit box shipments shall include a
full copy of the previously submitted Annual Report. The Annual Report shall
list all properties included and an inventory of each property.
2) Each property shall be provided in a tamper
evident bag or envelope. An inventory sheet for each specific property shall be
attached to or enclosed in the bag or envelope.
3) When remitting multiple properties at the same
time, each property shall be in a separate tamper evident bag or envelope and
labeled with the name of the owner. If a single property requires the use of
more than one bag/envelope, the bags/envelopes are to be numbered accordingly
(i.e., 1 of 3, 2 of 3, etc.).
e) Reimbursement
of Holder
1) Property removed from a safe deposit box and
delivered to the administrator under the Act is subject to the holder's right
to reimbursement for the cost of opening the box and a lien or contract
providing reimbursement to the holder for unpaid rent charges for the box. Upon
application by the holder, and after there are sufficient cash funds available
either from the contents of the box or the sale of the property, the
administrator shall reimburse the holder from the proceeds. [765 ILCS
1026/15-606]
2) Holders may only be reimbursed for any costs and
charges that were included in the Annual Report listing the contents of the
safe deposit box whose owner owes the costs and charges to the holder.
3) It is the responsibility of the holder to apply
for reimbursement of costs and charges under Section 15-606 of the Act. The
administrator shall make available on the administrator's website a form for
holders to apply for reimbursement under Section 15-606 of the Act.
4) If, after the sale of property removed from a
safe deposit box and delivered to the administrator, there are not sufficient
cash funds available to fully reimburse the holder for costs and charges
allowed under Section 15-606 of the Act, the holder may apply to the
administrator to be partially reimbursed up to the amount of cash funds
available. If, however, the administrator pays all available cash funds to the
holder under this subsection (e), the holder may not claim any additional costs
and charges from the same safe deposit box.
f) Exceptions to the
sale of tangible property.
1) Military
medals or decorations. The administrator may
not sell a medal or decoration awarded for military service in the armed forces
of the United States.
2) Property
with historical value. Property that the administrator reasonably
believes may have historical value may be, at their discretion, loaned
to an accredited museum in the United States where it will be kept until the
administrator orders it to be returned to their custody.
3) Human
remains. If human remains are delivered to the administrator under the
Act, the administrator shall deliver those human remains to the coroner of the
county in which the human remains were abandoned for disposition under the
Counties Code [55 ILCS 5].
4) Evidence
in a criminal investigation. Property that may have been used in the commission
of a crime or that may assist in the investigation of a crime, as determined
after consulting with the Illinois State Police, shall be delivered to the
Illinois State Police or other appropriate law enforcement authority to allow
law enforcement to determine whether a criminal investigation should take
place.
5) Firearms.
The administrator shall deliver to the Illinois State Police any firearm that has
been stolen or used in the commission of a crime. Further, if the
administrator is unable to return a firearm to its owner, the administrator
shall transfer custody of the firearm to the Illinois State Police.
6) Religious
artifacts and records. Despite being property that has no substantial
commercial value under Section 15-609(a) of the Act, property that the
administrator reasonably believes may be a religious artifact or record, which
has no substantial commercial value or where the cost of disposing of that
property exceeds the value of the property, will be preserved and retained by
the administrator until that property is claimed by the owner or the owner's
heirs or successors if storage of that property does not unduly burden the
administrator.
7) Wills,
testamentary instruments, and trust documents. Despite being property that has
no substantial commercial value under Section 15-609(a) of the Act, records
that the administrator reasonably believes to be an original will, codicil, or
other testamentary instrument under the Probate Act of 1975 [755 ILCS 5] or a
trust document under the Illinois Trust Code [760 ILCS 3] will be preserved and
retained by the administrator until such property is claimed by the owner or by
the owner's heirs or successors, if those records are not required to be filed
with the clerk of the appropriate court, if storage of those records does not
unduly burden the administrator.
(Source: Amended at 46 Ill. Reg. 16898, effective September
26, 2022)
| TITLE 74: PUBLIC FINANCE
CHAPTER V: TREASURER
PART 760
REVISED UNIFORM UNCLAIMED PROPERTY ACT
SECTION 760.215 FINANCIAL ORGANIZATIONS
Section 760.215 Financial Organizations
a) Demand, Savings, or Time Deposits. A demand,
savings, or time deposit is presumed abandoned as follows:
1) a
demand deposit, 3 years after the date of the last indication of interest in
the property by the apparent owner;
2) a
savings deposit, 3 years after the date of last indication of interest in the
property by the apparent owner;
3) a
time deposit for which the owner has not consented to automatic renewal of the
time deposit, 3 years after the later of maturity or the date of the last
indication of interest in the property by the apparent owner; and
4) an
automatically renewable time deposit for which the owner consented to the
automatic renewal in a record to file with the holder, 3 years after the date
of last indication of interest in the property by the apparent owner, following
the completion of the initial term of the time deposit and one automatic
renewal term of the time deposit. [765 ILCS 1026/15-201(6)]
b) Automatically
Renewable Deposits
1) General
Rule. A deposit that is automatically renewable is presumed abandoned 3
years after the date of last indication of interest in the property by the
apparent owner, following the completion of the initial term of the time
deposit and one automatic renewal term of the time deposit. [765 ILCS
1026/15-201(6)]
2) Anti-penalty
Provision. If property in a report under Section 15-401 of the Act is
an automatically renewable time deposit and the holder determines that a
penalty or forfeiture in the payment of interest would result from paying the
deposit to the administrator at the time of the report, the date for reporting
and delivering the property to the administrator is extended until a penalty or
forfeiture no longer would result from delivery of the property to the
administrator. The holder shall report and deliver the property on the next
regular date prescribed for reporting by the holder under Section 15-603(b)
of the Act after this extended date, and the holder shall indicate in
its report to the administrator that the property is being reported on an
extended date pursuant to this subsection. [765 ILCS 1026/15-603(b)]
3) Under
the Act, the time when a holder is required to remit to the administrator a
presumptively abandoned automatically renewable deposit is dependent upon both
the term of the deposit and whether there is a penalty or forfeiture of
interest provision applicable to such an automatically renewable deposit.
4) If it
does not have a penalty or forfeiture of interest provision, then a
presumptively abandoned automatically renewable deposit should be remitted to
the administrator with the holder's first report after the initial term of the
deposit and one automatic renewal term plus 3 years.
5) When
a holder is required to remit a presumptively abandoned automatically renewable
deposit with a penalty or forfeiture of interest provision depends upon the
term of the deposit.
A) A
presumptively abandoned automatically renewable deposit with a term of less
than one year should be remitted to the administrator in the holder's first
report after the initial term and one automatic renewal term plus 3 years.
EXAMPLE: A 6-month certificate of
deposit would be remitted with the holder's first report after 4 years have
passed. This would be the initial 6-month term, one automatic 6-month renewal
term, plus the 6 additional 6-month terms that comprise the 3-year period of
abandonment and then the time, which should be less than a year, until the
holder's next report is due under the Act.
B) A
presumptively abandoned automatically renewable deposit with a term of less
than 3 years, but more than one year, should be remitted to the administrator
with the holder's first report after the initial term and one automatic renewal
term plus 3 years plus any time needed to avoid a penalty.
EXAMPLE: A 2-year certificate of
deposit would be remitted with the holder's first report after 8 years have
passed. This would be the initial 2-year term, one automatic 2-year renewal
term, plus the 3-year period of abandonment plus the final year of the fourth
2-year term so as to avoid the penalty (i.e., the first report after four
2-year terms).
C) A
presumptively abandoned automatically renewable deposit with a term of 3 years
or more should be remitted to the administrator with the holder's first report
after the end of the third term of the deposit.
EXAMPLE: A 5-year certificate of
deposit would be remitted with the holder's first report after 15 years have
passed. After the first 5-year term and one automatic renewal term, the end of
the 3-year period of abandonment falls within the third 5-year term. So, to
avoid any penalty, the certificate of deposit is remitted with the holder's
first report after the end of the third 5-year term.
c) Money
Orders. Subject to Section 15-201 of the Act, money orders are presumed
abandoned 5 years after issuance.
d) Instruments
other than money orders. Subject to Section 15-201 of the Act, any instrument
on which a financial organization or business association is directly liable,
other than a money order, is presumed abandoned 3 years after issuance. [765
ILCS 1026/15-201(3)]
(Source:
Amended at 46 Ill. Reg. 16898, effective September 26, 2022)
| TITLE 74: PUBLIC FINANCE
CHAPTER V: TREASURER
PART 760
REVISED UNIFORM UNCLAIMED PROPERTY ACT
SECTION 760.220 STORED VALUE CARDS
Section 760.220 Stored Value Cards
a) Stored
Value Cards
1) Unless otherwise exempted by the Act or this
Part, the net card value of a stored value card is required to be reported and
remitted under the Act as property that is presumed abandoned pursuant to
Section 15-206 of the Act.
2) In determining whether property falls within the
definition of stored value card under the Act, the State Treasurer will
consider the federal regulations concerning gift cards and gift certificates
and official staff interpretations issued by the Board of Governors of the
Federal Reserve System as part of what is commonly known as "Regulation
E" (12 CFR 1005 (2011)). A stored value card will, in most cases, be a "general-use
prepaid card" under those federal regulations. The use of those federal
regulations and interpretations by the State Treasurer is intended to harmonize
definitions and concepts used by state and federal regulators to make
compliance easier for affected businesses.
3) Property that satisfies the definition of
payroll card, merchandise credit, or gift card is not a stored value card.
4) If a holder has reported and remitted to the
administrator the net card value on a stored-value card presumed abandoned
under the Act and the stored-value card does not have an expiration date, then
the holder must honor the card on presentation indefinitely and may then
request reimbursement from the administrator under Section 15-605 of the Act.
A) This provision is required for the Act to avoid
preemption by federal law.
B) See Notice of preemption determination "Electronic
Fund Transfers; Determination of Effect on State Laws (Maine and Tennessee)"
(Docket No. CFPB-2012-0036) issued by the federal Bureau of Consumer Financial
Protection holding that Maine's unclaimed property law was not preempted by
federal law because it contained an indefinite presentation provision, but
Tennessee's unclaimed property law, which did not contain an indefinite
presentation provision, was preempted by federal law.
| TITLE 74: PUBLIC FINANCE
CHAPTER V: TREASURER
PART 760
REVISED UNIFORM UNCLAIMED PROPERTY ACT
SECTION 760.230 GIFT CARDS
Section 760.230 Gift Cards
a) Gift cards as defined in the Act are exempt from
being reported and remitted as property that is presumed abandoned. Gift cards
are excluded from the definition of property in the Act (see 765 ILCS
1026/15-102(24)(C)(iii)).
b) If property does not satisfy all the parts of
the definition of gift card under the Act, then it does not qualify for the
gift card exemption.
c) Property that does not qualify as a gift card
includes, but is not limited to, property that:
1) has an expiration date;
2) is subject to a dormancy, inactivity, or
post-sale service fee; or
3) may be redeemed for money, including at
automated teller machines.
| TITLE 74: PUBLIC FINANCE
CHAPTER V: TREASURER
PART 760
REVISED UNIFORM UNCLAIMED PROPERTY ACT
SECTION 760.240 PAYROLL CARDS
Section 760.240 Payroll Cards
a) Amounts held on payroll cards are presumed
abandoned one year after the amount becomes payable under Section 15-201(13) of
the Act.
b) Because payroll cards are not stored value
cards, this one year period of abandonment applies to payroll cards instead of
the 5-year period of abandonment for stored value cards under Section 15-206 of
the Act.
| TITLE 74: PUBLIC FINANCE
CHAPTER V: TREASURER
PART 760
REVISED UNIFORM UNCLAIMED PROPERTY ACT
SECTION 760.250 MERCHANDISE CREDITS
Section 760.250 Merchandise Credits
a) Merchandise credits are exempt from being
reported and remitted under the Act pursuant to Section 15-201(7) of the Act.
b) This exemption includes, but is not limited to,
a stored value card that is given as in-store credit for returned merchandise.
c) However, the exemption for merchandise credits
does not include stored value cards that:
1) are redeemable at multiple, unaffiliated
merchants; or
2) may be redeemed for or converted into money or
otherwise monetized by the issuer.
| TITLE 74: PUBLIC FINANCE
CHAPTER V: TREASURER
PART 760
REVISED UNIFORM UNCLAIMED PROPERTY ACT
SECTION 760.260 LOYALTY CARDS
Section 760.260 Loyalty
Cards
A loyalty card as defined in the
Act is not a stored value card and is exempt from being reported and remitted.
The exemption from the Act for loyalty cards does not apply to a "rebate
card" as defined in Section 2LLL of the Consumer Fraud and Deceptive
Business Practices Act [815 ILCS 505] as rebate cards are given for the direct
monetary consideration of the consumer's purchase of a product or service.
(Source: Amended at 46 Ill. Reg. 16898,
effective September 26, 2022)
| TITLE 74: PUBLIC FINANCE
CHAPTER V: TREASURER
PART 760
REVISED UNIFORM UNCLAIMED PROPERTY ACT
SECTION 760.270 PROPERTY RELATED TO PRE-NEED DEATH CARE CONTRACTS
Section 760.270 Property Related to Pre-need Death Care
Contracts
a) Illinois
Funeral or Burial Funds Act [225 ILCS 45]
1) Funds on deposit or held in trust pursuant to
the Illinois Funeral or Burial Funds Act are covered under the Act pursuant to
Section 15-201(9).
2) Proceeds of a life insurance policy or annuity
contract, even if used to fund a pre-need contract pursuant to the Illinois
Funeral or Burial Funds Act, are covered under the Act pursuant to Sections
15-201(8) and 15-211.
3) The relevant provisions of Section 4 of the
Illinois Funeral or Burial Funds Act determine the amount to be reported and
remitted as unclaimed property under the Act.
A) If, after the death of the beneficiary, no
funeral merchandise or services are provided or if the funeral is conducted by
another provider, the seller may keep no more than 10% of the payments made
under the pre-need contract or $300, whichever sum is less. The remainder of
the trust funds or insurance or annuity proceeds shall be forwarded to the
legal heirs of the deceased beneficiary or as determined by probate action.
[225 ILCS 45/4(c-5)] If the legal heirs of the deceased beneficiary cannot be
located and there is not an active probate action, the remainder of trust funds
should be reported and remitted as unclaimed property pursuant to Section
15-201(9) of the Act and insurance or annuity proceeds should be reported and
remitted pursuant to Sections 15-201(8) and 15-211 of the Act.
B) Refunds provided pursuant to Section 4 of the
Illinois Funeral or Burial Funds Act may become unclaimed property as the debt
of a business association under Section 15-201(5) of the Act.
4) If a pre-need contract requires entrustment
under both the Illinois Funeral or Burial Funds Act and the Illinois Pre-Need
Cemetery Sales Act [815 ILCS 390] and the only item that requires entrustment
under the Illinois Pre-Need Cemetery Sales Act is an outer burial container,
then, for the purposes of determining a presumption of abandonment under the
Act, all amounts entrusted under the pre-need contract shall be treated as
though they were entrusted under the Illinois Funeral or Burial Funds Act.
5) Funds on deposit or held in trust pursuant to
the Illinois Funeral or Burial Funds Act are presumed abandoned the
earliest of:
A) 2 years after the date of death of the
beneficiary;
B) one year after the date the beneficiary has
attained, or would have attained if living, the age of 105 when the holder does
not know whether the beneficiary is deceased; or
C) 40 years after the contract for prepayment was
executed, unless the apparent owner has indicated an interest in the property
more than 40 years after the contract for prepayment was executed, in which
case, 3 years after the last indication of interest in the property by the
apparent owner. [765 ILCS 1026/15-201]
6) Pre-need
funeral trusts established in jurisdictions other than the State of Illinois
are generally not governed by the Illinois Funeral or Burial Funds Act.
Pursuant to federal common law (U.S. Supreme Court Texas v. New Jersey, 379
U.S. 674 (1965); Pennsylvania v. New York, 407 U.S. 206 (1972); and Delaware v.
New York, 507 U.S. 490 (1993)) and the Act, these non-Illinois pre-need
funeral trusts should be reported and remitted to the administrator as
unclaimed property when the address of the apparent owner in the records of the
holder is in Illinois. The amount to be reported and remitted for these
non-Illinois pre-need funeral trusts is determined by applicable law, including
but not limited to the pre-need law of the state under which the contract was
entered into.
b) Illinois
Pre-Need Cemetery Sales Act [815 ILCS 390]
1) Burial rights, along with rights of interment,
entombment or inurnment are all interests in real property. Interests in real
property are not covered by the Act and do not become unclaimed property under
the Act.
2) Refunds provided pursuant to Section 18 of the
Illinois Pre-Need Cemetery Sales Act may become unclaimed property as the debt
of a business association under Section 15-201(5) of the Act.
3) Funds on deposit or held in trust pursuant to
Section 16 of the Illinois Pre-Need Cemetery Sales Act are not property under the
Act. Instead, Section 18.5 of the Illinois Pre-Need Cemetery Sales Act provides
an alternative mechanism for unclaimed pre-need cemetery trust funds. The
Illinois Office of the Comptroller is the primary regulator for these trust
funds.
4) Pre-need
cemetery trusts established in jurisdictions other than the State of Illinois
are generally not governed by the Illinois Pre-Need Cemetery Sales Act. These
non-Illinois pre-need cemetery trusts are not exempt from the Act. Instead,
pursuant to federal common law and the Act, they must be reported and remitted
to the administrator as unclaimed property when the address of the apparent
owner in the records of the holder is in Illinois. The amount to be reported
and remitted for these non-Illinois pre-need cemetery trusts is determined by
applicable law, including but not limited to the pre-need cemetery trusts law
of the state under which the contract was entered into.
c) Death
Master File
1) The Act does not mandate holders of trust funds
under the Illinois Funeral or Burial Funds Act or the Illinois Pre-Need
Cemetery Sales Act to compare their records against the Social Security
Administration's Death Master File.
2) While the Act does not mandate holders of life
insurance or annuities, including those intended to fund a pre-need contract
under the Illinois Funeral or Burial Funds Act or Illinois Pre-Need Cemetery
Sales Act, to compare their records against the Social Security Administration's
Death Master File, holders must still comply with the provisions of the
Unclaimed Life Insurance Benefits Act [215 ILCS 185].
3) Nothing in the Act or this Part restricts the
ability of the administrator or the administrator's agent to conduct a
comparison between the Social Security Administration's Death Master File and a
holder's records during an examination conducted pursuant to the Act.
(Source: Amended at 46 Ill. Reg. 16898, effective September
26, 2022)
| TITLE 74: PUBLIC FINANCE
CHAPTER V: TREASURER
PART 760
REVISED UNIFORM UNCLAIMED PROPERTY ACT
SECTION 760.280 REPORTING SECURITIES
Section 760.280 Reporting Securities
Remittance of securities. Unless
otherwise provided, all securities and commodities when remitted by the holder to
the administrator shall:
a) be
registered as "Treasurer of the State of Illinois"; or
b) be deposited into a new or existing securities
or commodities account either in the name of "Treasurer of the State of
Illinois" or in a nominee account (aka "street name" account)
established by a vendor acting as a custodian for the administrator; and
c) include all dividends, interest, warrants, or
other rights, or associated cash in a check payable to "Treasurer of the
State of Illinois" unless otherwise directed by the administrator.
(Source: Amended at 46 Ill. Reg. 16898, effective September
26, 2022)
| TITLE 74: PUBLIC FINANCE
CHAPTER V: TREASURER
PART 760
REVISED UNIFORM UNCLAIMED PROPERTY ACT
SECTION 760.290 DECEASED OWNER
Section 760.290 Deceased Owner
a) Subject to the owner interest provisions
of Section 15-210 of the Act, a deceased owner cannot indicate interest in
his or her property. [765 ILCS 1026/15-201]
1) Apparent owner interest shall include the activity
of beneficiaries and estate executors or other persons who have a legal or
equitable right to ownership or custody of the property when the apparent owner
as listed in the records of the holder is deceased.
2) Thus, while a deceased apparent owner can no
longer indicate interest in their own property, the new owner or his/her
agent(s) may indicate interest in the property and, thus, prevent abandonment.
b) If the apparent owner as listed in the records
of the holder is deceased and the abandonment period for the owner's property
is greater than 2 years, then the property, shall instead be presumed
abandoned 2 years from the date of the owner's last indication of interest in
the property. This provision does not apply to an amount owed by an insurance
company on a life or endowment insurance policy or an annuity contract that has
matured or terminated. [765 ILCS 1026/15-201] This statutory provision does
not apply to situations involving the death of the apparent owner when the
property is covered by either Section 15-202(a)(2)(B) of the Act (tax-deferred
retirement accounts) or Section 15-208(d) of the Act (concerning securities),
as in neither case is the abandonment period greater than 2 years.
c) A holder who fails to report, pay, or deliver
property within the time prescribed by the Act shall not be required to pay
interest or be subject to penalties if the failure to report, pay, or deliver
the property was due to lack of knowledge of the death that established a
shorter period of abandonment under the Act. [765 ILCS 1026/15-1204(c)]
d) The Act does not impose a new or separate duty
on a holder to determine whether an apparent owner is deceased. However, the
Act does not relieve a holder of any duty imposed by another law, whether state
or federal, that may impose such a duty.
e) Sections 15-202 and 15-208 of the Act both
provide that when a holder, in the ordinary course of its business, receives
notice or an indication of the death of an apparent owner, the holder shall
attempt not later than 90 days after receipt of the notice or indication to
confirm whether the apparent owner is deceased.
1) These provisions are not intended to require a
holder to independently confirm the death of the apparent owner when the holder
reasonably believes that the apparent owner is deceased.
2) Instead, these provisions establish a 90-day
deadline for a holder to conduct any independent investigation or search to
confirm the death of the apparent owner.
3) EXAMPLE: If a holder learns that an apparent owner
is listed on the Social Security Administration's Death Master File (DMF) and
the holder is satisfied that the presumption of death from such a match is
correct, then the holder does not need to independently confirm the death of
the apparent owner.
| TITLE 74: PUBLIC FINANCE
CHAPTER V: TREASURER
PART 760
REVISED UNIFORM UNCLAIMED PROPERTY ACT
SECTION 760.300 APPARENT OWNER INTEREST
Section 760.300 Apparent Owner Interest
a) Under Section 15-210(a) of the Act the period
after which property is presumed abandoned is measured from the later of:
1) the date the property is presumed abandoned
under the Act; or
2) the latest indication of interest by the
apparent owner in the property.
b) Under Section 15-210(b) of the Act,
an indication of an apparent owner's interest in property includes, but
is not limited to:
1) a record communicated by the apparent owner
to the holder or agent of the holder concerning the property or the account in
which the property is held;
2) an oral communication by the apparent owner
to the holder or agent of the holder concerning the property or the account in
which the property is held, if the holder or its agent contemporaneously makes
and preserves a record of the fact of the apparent owner's communication;
3) presentment of a check or other instrument of
payment of a dividend, interest payment, or other distribution with respect to
an account, underlying security, or interest in a business association;
4) activity directed by an apparent owner in the
account in which the property is held, including accessing the account or
information concerning the account, or a direction by the apparent owner to
increase, decrease, or otherwise change the amount or type of property held in
the account;
5) a deposit into or withdrawal from an account
at a financial organization, except for a recurring ACH debit or credit
previously authorized by the apparent owner or an automatic reinvestment of
dividends or interest; and
6) subject to Section 15-210(e) of the Act,
payment of a premium on an insurance policy.
c) Owner-initiated Activity. Owner-initiated
financial transactions or authenticated owner-initiated administrative activity
are an indication of an apparent owner's interest in the property. A holder
must maintain a record of owner-initiated activity. These include, without
limitation:
1) trading activity in the account;
2) depositing funds into the account or withdrawing
funds from the account;
3) non-automated electronic distributions;
4) contacting the holder to discuss any account
related matters;
5) sending the holder paperwork or documents
related to the account;
6) meeting with (or otherwise interacting with) a
financial advisor regarding the account;
7) modifying the account profile;
8) sending the holder correspondence regarding the
account whether via mail or electronic means, including e-mail;
9) submitting an account service request online;
10) voting a proxy;
11) setting up the account for e-delivery;
12) accessing the account via the holder's website
or other electronic means; and
13) the initial authorizing of automatic payments
or distributions from the account by the apparent owner.
d) Activity that Does Not Show Apparent Owner Interest.
Apparent owner interest is distinguishable from holder-generated activity such
as, without limitation, crediting dividends, posting account fees, and mailing
account statements, which does not constitute apparent owner interest.
1) Automatic financial or administrative
transactions or activity, such as automatic payments or distributions or automatic
portfolio rebalancing, or system conversions, shall not be considered apparent
owner interest.
2) Non-return of Mail
A) Non-return of mail sent by the holder to an
account owner does not constitute apparent owner interest.
B) Returned Post Officer (RPO) Standard
i) Despite the general rule that non-return of
mail does not constitute apparent owner interest, certain types of property are
considered abandoned when first-class mail is returned undelivered to the
holder by the U.S. Postal Service. This is commonly referred to as an RPO
standard and is used in Sections 15-202, 15-204 and 15-208 of the Act.
ii) When an RPO standard is used in the Act, the
non-return of mail still does not constitute apparent owner interest. Instead,
the presumption of abandonment is triggered by the return of the mail instead
of by the passage of time without apparent owner interest.
iii) In Section 15-208 of the Act, a security is
presumptively abandoned on the earlier of 3 years after an RPO standard is met
or 5 years from the last indication of interest by the apparent owner. The
non-return of mail does not constitute apparent owner interest for the 5-year
presumption under Section 15-208 of the Act.
e) Interest
by a Person Other Than the Apparent Owner
1) An action by an agent or other representative
of an apparent owner, other than the holder acting as the apparent owner's
agent, is presumed to be an action on behalf of the apparent owner. [765
ILCS 1026/15-210(c)]
2) A communication with an apparent owner by a
person other than the holder or the holder's representative is not an
indication of interest in the property by the apparent owner unless a record of
the communication evidences the apparent owner's knowledge of a right to the
property. [765 ILCS 1026/15-210(d)]
3) If an apparent owner is deceased, apparent owner
interest shall include, but is not limited to, activity of beneficiaries and
estate executors or other persons who have a legal or equitable right to
ownership or custody of the property.
f) Consolidated Statement Rule for Financial Organizations
1) If the apparent owner has another property
with the holder to which Section 201(6) of the Act applies, then
activity directed by an apparent owner in any other accounts, including loan
accounts, at a financial organization holding an inactive account of the
apparent owner shall be an indication of interest in all such accounts if the
apparent owner engages in one or more of the following activities:
A) the apparent owner undertakes one or more of the
actions described in this Section regarding any of the other accounts
the apparent owner has with the financial organization;
B) the apparent owner increases or decreases the
amount of funds in any other account the apparent owner has with the financial
organization; or
C) the apparent owner engages in any other
relationship with the financial organization, including payment of any amounts
due on a loan.
2) This subsection (f) applies so long as the
mailing address for the apparent owner in the financial organization's books
and records is the same for both the inactive account and the active account.
[765 ILCS 1026/15-210(f)]
g) For
an amount held on a payroll card, an indication of owner interest includes
wages from an employer pursuant to Section 14.5 of the Illinois Wage Payment
and Collection Act [820 ILCS 115] in the form of a recurring ACH credit
previously authorized by the apparent owner; however, an ACH credit is not an
indication of owner interest if the holder assesses fees for account inactivity
on the payroll card account. [765 ILCS 1026/15-210(g)]
(Source:
Amended at 48 Ill. Reg. 14162, effective September 10, 2024)
| TITLE 74: PUBLIC FINANCE
CHAPTER V: TREASURER
PART 760
REVISED UNIFORM UNCLAIMED PROPERTY ACT
SECTION 760.310 ANTI-LIMITATIONS PROVISION
Section 760.310 Anti-Limitations Provision
a) Expiration
of a period of limitation on an owner's right to receive or recover property,
whether specified by contract, statute, or court order, does not prevent the
property from being presumed abandoned or affect the duty of a holder under the
Act to file a report or pay or deliver property to the administrator. [765
ILCS 1026/15-610(a)]
b) This
provision of the Act is a continuation of existing Illinois law. Under the
common law in Illinois, contracts could not serve as a limitation on the
ability of the State to take custody of unclaimed property. (See People ex rel.
Callahan v. Marshall Field & Co., 83 Ill. App. 3d 811, 818, 404 N.E.2d 368,
374 (1980) citing Connecticut Mutual Life Insurance Co. v. Moore, 333 U.S. 541
(1948); Screen Actors Guild, Inc. v. Cory (1979), 91 Cal. App. 3d 111, 154 Cal.
Rptr. 77; and State v. Jefferson Lake Sulphur Co. (1962), 36 N.J. 577, 178 A.2d
329.)
| TITLE 74: PUBLIC FINANCE
CHAPTER V: TREASURER
PART 760
REVISED UNIFORM UNCLAIMED PROPERTY ACT
SECTION 760.320 ONLINE SPORTS WAGERING
Section 760.320 Online Sports Wagering
a) As the debt of
a business association, an online sports wagering account with a balance, where
3 years have passed from the date of last indication of interest by the
apparent owner, is presumed to be an abandoned account.
b) The amount to
be reported and remitted to the administrator from an abandoned online sports
wagering account is determined by relevant law beyond the Act including where
applicable, the relevant state laws concerning online sports wagering.
However, the anti-limitations provisions of Section 15-610(a) of the Act are
applicable.
(Source: Added
at 46 Ill. Reg. 16898, effective September 26, 2022)
| TITLE 74: PUBLIC FINANCE
CHAPTER V: TREASURER
PART 760
REVISED UNIFORM UNCLAIMED PROPERTY ACT
SECTION 760.330 VIRTUAL CURRENCY
Section 760.330 Virtual
Currency
Virtual currency is presumed
abandoned 5 years after the last indication of interest in the property by the
apparent owner. [765 ILCS 1026/15-201(6.5)]
(Source: Added at 46 Ill. Reg. 16898,
effective September 26, 2022)
SUBPART C: REPORTING
| TITLE 74: PUBLIC FINANCE
CHAPTER V: TREASURER
PART 760
REVISED UNIFORM UNCLAIMED PROPERTY ACT
SECTION 760.400 HOLDER REPORTING REQUIRED
Section 760.400 Holder Reporting Required
a) A holder of property presumed abandoned shall
report to the administrator via the internet in a format approved by the
administrator, unless granted written permission by the administrator to file a
paper report.
b) A holder may contract with a third party to make
the report required, but remains responsible to the administrator for the
complete, accurate, and timely reporting of property presumed abandoned and for
paying or delivering to the administrator property described in the report.
Any reports filed by a third party must provide the holder's contact name,
email address, mailing address, and phone number.
c) The administrator will accept a report filed in
the current National Association of Unclaimed Property Administrators (NAUPA)
standard format found on the administrator's website: icash.illinoistreasurer.gov.
d) A business association who has no reportable
property shall so report to the administrator on forms via the Internet in a
format approved by the administrator if the business association has:
1) annual
sales of more than $1,000,000;
2) securities
that are publicly traded;
3) a
net worth of more than $10,000,000; or
4) more
than 100 employees. [765 ILCS 1026/15-401(d)]
(Source: Amended at 48 Ill. Reg. 14162, effective September
10, 2024)
| TITLE 74: PUBLIC FINANCE
CHAPTER V: TREASURER
PART 760
REVISED UNIFORM UNCLAIMED PROPERTY ACT
SECTION 760.405 REPORTING AND REMITTING BY PENSION SYSTEMS SUBJECT TO SECTION 15-1506 OF THE ACT
Section 760.405 Reporting and Remitting by Pension
Systems Subject to Section 15-1506 of the Act
a) All
retirement systems, pension funds, and investment boards created pursuant to
Article 3, 4, or 22 of the Illinois Pension Code (Police, Firefighters' and
Miscellaneous Collateral Provisions) must report abandoned property to the
administrator.
b) The
report must include:
1) Name
of the owner and the names of any beneficiaries;
2) Last
known address, if known, of owner and beneficiaries, if any;
3) Social
Security number or taxpayer identification number of owner and beneficiaries,
if any; and
4) Dollar
amount.
c) All
retirement systems, pension funds, and investment boards created pursuant to
Article 3, 4, or 22 of the Illinois Pension Code shall engage in the following
due diligence for presumptively abandoned property with a value of $50 or more:
1) Attempt
to contact the apparent owner not less than 90 days before the filing of the
report with the administrator, using first-class U.S. Mail, telephone, and email;
2) Send a
notice to the apparent owner, not less than 60 days before filing the report
with the administrator, using certified U.S. Mail;
3) Check
related plan and employer records for more current contact information for the
apparent owner, as well as for more current contact information for any
beneficiaries;
4) Attempt
to contact designated beneficiaries to find updated contact information for the
apparent owner;
5) Make
reasonable use of free internet search tools to search for an apparent owner;
and
6) Conduct
additional due diligence, such as the use of internet search tools, commercial
locator services, credit reporting agencies, information brokers, investigation
databases, and analogous services that may involve charges if the property is
valued over $1,000.
d) A
retirement system, pension fund, or investment board subject to this Section
does not need to send due diligence mail or email to an address that it knows
to be invalid.
e) The
due diligence requirements of this Section follow the U.S. Department of Labor
Employee Benefits Security Administration's Field Assistance Bulletin No.
2014-01. If the U.S. Department of Labor issues subsequent guidance or regulations
that require additional due diligence or otherwise conflict with this Section,
this subsection will be amended accordingly.
f) All
retirement systems, pension funds, and investment boards created pursuant to
Article 3, 4, or 22 of the Illinois Pension Code shall enter into an
interagency agreement with the administrator concerning the due diligence and
reporting requirements of this Section. The interagency agreement shall
require an annual certification that the retirement system, pension fund, or
investment board meets or exceeds the due diligence requirements of this
Section.
g) If a
retirement system, pension fund, or investment board created pursuant to
Article 3, 4, or 22 of the Illinois Pension Code satisfies the due diligence
and certification requirements of Section 15-1506 of the Act, then that
retirement system, pension fund, or investment board shall report presumptively
abandoned property in an annuity, pension, or benefit fund held in a fiduciary
capacity by or on behalf of that retirement system, pension fund, or investment
board (see subsections (a) and (b)), but is not required to remit presumptively
abandoned property to the administrator.
h) If a
retirement system, pension fund, or investment board created pursuant to
Article 3, 4, or 22 of the Illinois Pension Code does not meet the due
diligence and certification requirements of Section 15-1506 of the Act, then that
retirement system, pension fund, or investment board is required to both report
and remit all presumptively abandoned property, as required by the Act,
including presumptively abandoned property in an annuity, pension, or benefit
fund held in a fiduciary capacity.
i) A
retirement system, pension fund, or investment board created pursuant to
Article 3, 4, or 22 of the Illinois Pension Code is still required to report
and remit to the administrator all other presumptively abandoned property that
is not in an annuity, pension, or benefit fund held in a fiduciary capacity.
(Source: Added
at 44 Ill. Reg. 6403, effective April 8, 2020)
| TITLE 74: PUBLIC FINANCE
CHAPTER V: TREASURER
PART 760
REVISED UNIFORM UNCLAIMED PROPERTY ACT
SECTION 760.406 REPORTING AND REMITTING BY PENSION SYSTEMS SUBJECT TO SECTION 15-1505 OF THE ACT
Section 760.406 Reporting and Remitting by Pension
Systems Subject to Section 15-1505 of the Act
a) Property
in an annuity, pension, or benefit fund held in a fiduciary capacity by or on
behalf of a retirement system, pension fund, or investment board created
pursuant to any Article of the Illinois Pension Code, except for Articles 3, 4,
and 22, that would be presumed abandoned under Article 2 of the Act shall be
reported to the administrator but not paid or delivered to the administrator.
b) The
report must include:
1) Name
of the owner and the names of any beneficiaries;
2) Last
known address, if known, of owner and beneficiaries;
3) Social
Security number or taxpayer identification number of owner and beneficiaries,
if any; and
4) Dollar
amount.
c) A
retirement system, pension fund, or investment board created pursuant to any
Article of the Illinois Pension Code is still required to report and remit to
the administrator all other presumptively abandoned property that is not in an
annuity, pension, or benefit fund held in a fiduciary capacity.
(Source: Added
at 44 Ill. Reg. 6403, effective April 8, 2020)
| TITLE 74: PUBLIC FINANCE
CHAPTER V: TREASURER
PART 760
REVISED UNIFORM UNCLAIMED PROPERTY ACT
SECTION 760.407 REPORTING VIRTUAL CURRENCY
Section 760.407 Reporting Virtual Currency
a) If property reported to
the administrator is virtual currency, the holder shall liquidate the virtual
currency and remit the proceeds to the administrator. The liquidation shall
occur anytime within 30 days prior to the filing of the report under Section 15-401
of the Act.
b) The owner
shall not have recourse against the holder or the administrator to recover any
gain in value that occurs after the liquidation of the virtual currency under this Section. [765 ILCS 1026/15-603(i)]
c) If a holder reasonably believes it cannot
liquidate virtual currency and cannot otherwise cause virtual currency to be
liquidated, the holder shall promptly notify the administrator in writing and
explain the reasons why the virtual currency cannot be liquidated as otherwise
required by the Act. Reasons why a holder cannot liquidate virtual currency
include, but are not limited to, the following:
1) the cost of
liquidation and delivery to the administrator would exceed the value of the
virtual currency on the date a report is due under the Act;
2) there is no functioning market in the virtual
currency; or
3) trading in the virtual currency is so limited
that liquidation of the virtual currency would result in a market distortion for
such virtual currency.
d) The administrator
may direct the holder to:
1) transfer the virtual currency that cannot be liquidated
to a custodian selected by the administrator; or
2) continue to hold the virtual currency until the
administrator or the holder determines that the virtual currency can be
liquidated pursuant to the Act or there is an indication of apparent owner
interest pursuant to Section 15-210 of the Act.
(Source:
Amended at 48 Ill. Reg. 14162, effective September 10, 2024)
| TITLE 74: PUBLIC FINANCE
CHAPTER V: TREASURER
PART 760
REVISED UNIFORM UNCLAIMED PROPERTY ACT
SECTION 760.410 REPORT CONTENTS
Section 760.410 Report Contents
a) The
report required by Article 4 of the Act must:
1) be signed by or on behalf of the holder and
verified as to its completeness and accuracy;
2) if filed electronically, be in a secure
format approved by the administrator that protects confidential information of
the apparent owner;
3) describe the property;
4) except for a traveler's check, money order,
or similar instrument, contain the name, if known, complete last-known
address, if known, e-mail address, if known, and Social Security number
or taxpayer identification number, if known or readily ascertainable, of the
apparent owner of property with a value of $5 or more;
5) for an amount held or owing under a life or
endowment insurance policy, annuity contract, or other property in which
ownership vests in a beneficiary upon the death of the owner, contain the name
and last-known address of the insured, annuitant, or other apparent owner of the
policy or contract and of the beneficiary;
6) for property held in or removed from a safe
deposit box, indicate the location of the property, where it may be inspected
by the administrator, and any amounts owed to the holder under Section 15-606
of the Act;
7) combine all dividend checks into one property
for each reported account;
8) contain the commencement date for determining
abandonment;
9) state that the holder has complied with the
notice requirements of the Act;
10) identify property that is a non-freely
transferable security and explain why it is a non-freely transferable security;
11) detail the gross amount of the property as well
as any dormancy fees or escheat fees deducted as allowed under Section 15-602
of the Act;
12) identify the remitter and payee for all
two-party checks (e.g., cashier's checks); and
13) identify a bank issued check for the closure of
an account as Outstanding Official Checks with the appropriate corresponding
NAUPA code.
b) Holders may report property valued at less than
$5 each in the aggregate. However, the administrator may request that the
holder provide information about the name, address, Social Security number or
taxpayer identification number of an apparent owner of property with a value of
less than $5 when the information is necessary to verify or process a claim
filed with the administrator by an apparent owner.
c) If a holder has changed its name while
holding property presumed abandoned or is a successor to another person that
previously held the property for the apparent owner, the holder must include in
the report its former name or the name of the previous holder, if any, and the
known name and address of each previous holder of the property. [765 ILCS
1026/15-402(d)]
(Source: Amended at 48 Ill. Reg. 14162,
effective September 10, 2024)
| TITLE 74: PUBLIC FINANCE
CHAPTER V: TREASURER
PART 760
REVISED UNIFORM UNCLAIMED PROPERTY ACT
SECTION 760.420 FILING DATES
Section 760.420 Filing Dates
a) Financial organizations, governments,
governmental entities, and insurance companies except life insurance companies
must file a report before November 1 of each year that covers the 12 months
preceding July 1 of that year.
b) All other business associations must file before
May 1 of each year for the immediately preceding calendar year.
| TITLE 74: PUBLIC FINANCE
CHAPTER V: TREASURER
PART 760
REVISED UNIFORM UNCLAIMED PROPERTY ACT
SECTION 760.430 EARLY REPORTING AND REMITTANCE OF PROPERTY
Section 760.430 Early Reporting and Remittance of
Property
a) A holder may pay or deliver property to the
administrator before the property is presumed abandoned under the Act if the
holder:
1) provides the apparent owner of the property
any notice required by Section 15-501 of the Act and provides the administrator
evidence of the holder's compliance with any notice required by the Act;
2) includes with the payment or delivery a
report regarding the property conforming to the Act and this Section; and
3) first obtains the administrator's written
consent to accept payment or delivery of the property.
b) A holder's request for the administrator's
consent to remit or deliver property before the property is presumed
abandoned under the Act must be in writing.
c) If the administrator fails to respond to the
request not later than 30 days after receipt of the request, the administrator
is deemed to consent to the payment or delivery of the property and the payment
or delivery is considered to have been made in good faith.
d) On payment or delivery of property under this
Section, the property is presumed abandoned. [765 ILCS 1026/15-608]
e) A holder that pays or delivers property to
the administrator pursuant to Section 15-608 of the Act in good faith
and substantially complies with Sections 15-501 and 15-502 of the Act is
relieved of all liability that thereafter may arise or be made in respect to
the property to the extent of the value of the property so paid or delivered.
[765 ILCS 15-604(a)]
| TITLE 74: PUBLIC FINANCE
CHAPTER V: TREASURER
PART 760
REVISED UNIFORM UNCLAIMED PROPERTY ACT
SECTION 760.440 EXTENSIONS
Section 760.440 Extensions
a) A holder may request an extension for filing.
The request must be in writing and must specify the proposed period of
extension.
b) The
request must include a reasonable cause for an extension.
1) Reasonable cause includes, without limitation,
natural disaster, criminal activity related to the holder's books and records,
recent changes in the form of ownership of the holder, etc.
2) Providing due diligence notices to apparent
owners and other holder actions required by the Act does not constitute
reasonable cause.
c) Extension requests must be received by the
administrator at least 15 business days before the date the report would
otherwise be due.
d) Not later than 10 business days after the date
of the request, the administrator shall respond to the request. The
administrator may grant the request, deny the request, or grant an extension
for a different period of time.
e) If an extension is granted, the holder
may pay or make a partial payment of the amount the holder estimates ultimately
will be due. The payment or partial payment terminates accrual of interest on
the amount paid. [765 ILCS 1026/15-403(c)]
| TITLE 74: PUBLIC FINANCE
CHAPTER V: TREASURER
PART 760
REVISED UNIFORM UNCLAIMED PROPERTY ACT
SECTION 760.450 INCOMPLETE AND REJECTED REPORTS
Section 760.450 Incomplete
and Rejected Reports
If the
administrator notifies a holder that a report is incomplete or incorrect, then
a corrected report must be filed by the holder no later than 20 calendar days
after notification by the administrator. The administrator may grant an
extension in writing for reasonable cause.
| TITLE 74: PUBLIC FINANCE
CHAPTER V: TREASURER
PART 760
REVISED UNIFORM UNCLAIMED PROPERTY ACT
SECTION 760.460 DUE DILIGENCE NOTICE BY HOLDER
Section 760.460 Due Diligence Notice by Holder
a) Sections 15-501 and 15-502 of the Act specify
when and how a holder must provide notice to the apparent owner of property
presumed abandoned. This notice process is a "due diligence notice"
from the holder to the apparent owner. A due diligence notice is intended to
provide an opportunity for an apparent owner to indicate interest in the
property presumed abandoned prior to such property being reported and remitted
to the administrator.
b) Unless otherwise provided by the Act or these
rules, the holder of property presumed abandoned shall send to the apparent
owner a due diligence notice by first-class U.S. Mail between 60 days and one
year before reporting the property (see 765 ILCS 1026/15-501(a)).
c) A holder does not need to send notice by
first-class U.S. Mail if any of the following are true:
1) the property is valued at less than $50;
2) the holder does not have in its records an
address for the apparent owner that is sufficient for delivery of first-class U.S.
Mail;
3) the holder's records indicate that the address
for the apparent owner is invalid; or,
4) the holder sends notice by certified U.S. Mail.
d) If the holder has in its records an e-mail
address for an apparent owner and the apparent owner has consented to receive
e-mail from the holder, then unless the holder believes the e-mail address is
invalid, the holder shall send a due diligence notice by e-mail to the apparent
owner in addition to any other due diligence notice required by the Act (see 765
ILCS 1026/15-501(b)). Due diligence notice by e-mail does not have to be sent
at the same time as a due diligence notice by U.S. mail.
e) Certified
Mail Due Diligence for Securities Valued at $1,000 or More
1) If the property presumed abandoned is securities
valued at $1,000 or more and the holder has in its records an address for the
apparent owner that the holder's records do not disclose to be invalid and is
sufficient to direct the delivery of U.S. Mail to the apparent owner, then the
due diligence notice shall be sent by certified U.S. Mail (see 765 ILCS
1026/15-501(c)). If the apparent owner is a natural person, then the holder
should utilize Certified Mail Restricted Delivery to direct the due diligence
notice to the apparent owner or the apparent owner's authorized agent.
2) If the holder sends a due diligence notice by
certified mail, then the holder does not need to send a due diligence notice by
first-class U.S. Mail.
3) A signed return receipt in response to a notice
sent by certified U.S. Mail shall constitute a record communicated by the
apparent owner to the holder concerning the property or the account in which
the property is held, and thus shall constitute an indication of interest by
the apparent owner in the property under Section 15-210 of the Act.
f) A holder may contract with a third party to
provide the required due diligence notice to an apparent owner under the Act
and these rules.
1) Whether or not the holder contracts with a third
party to provide required due diligence notices, the holder remains responsible
for ensuring that any required due diligence notices are provided prior to the
reporting and remitting of property presumed abandoned to the administrator.
2) If a holder contracts with a third party to
provide required due diligence notices and the due diligence notice is being
sent after the date the property was presumed abandoned under the Act, then,
pursuant to Section 15-1302 of the Act, neither the holder nor the third party
may charge the apparent owner a fee to indicate an interest in property
presumed abandoned or to otherwise prevent the reporting and remitting of
property presumed abandoned to the administrator.
g) Contents
of Due Diligence Notice
1) A due diligence notice by a holder must contain
a heading that reads substantially as follows: "Notice. The State of
Illinois requires us to notify you that your property may be transferred to the
custody of the State Treasurer if you do not contact us before (insert date
that is 30 days after the date of this notice)."
2) A due diligence notice by a holder must:
A) identify the nature and, except for property that
does not have a fixed value, the value of the property that is the subject of
the notice;
B) state that the property will be turned over to
the State Treasurer;
C) state that after the property is turned over to
the State Treasurer an apparent owner that seeks return of the property may
file a claim with the State Treasurer;
D) state that property that is not legal tender of
the United States may be sold by the State Treasurer;
E) provide instructions that the apparent owner must
follow to prevent the holder from reporting and paying or delivering the
property to the State Treasurer; and,
F) provide the name, address, and e-mail address or
telephone number to contact the holder.
3) In a due diligence notice, the holder may also
list a website where apparent owners may obtain more information about how to
prevent the holder from reporting and paying or delivering the property to the
State Treasurer.
h) Holder
Deduction of Costs of Due Diligence Notices
1) A holder that reports and remits money may
deduct from total amounts remitted, the actual costs of due diligence notices.
2) The deduction shall consist of the cost of
envelopes, postage, and stationery. No other costs may be deducted.
3) For purposes of holder deductions for due
diligence mailings, postage includes amounts paid to the United States Postal
Service for first class United States mail and certified United States mail.
4) A holder may be required to document or certify
to the costs incurred and deducted.
(Source: Amended at 46 Ill. Reg. 16898, effective September
26, 2022)
| TITLE 74: PUBLIC FINANCE
CHAPTER V: TREASURER
PART 760
REVISED UNIFORM UNCLAIMED PROPERTY ACT
SECTION 760.470 RETENTION OF RECORDS BY HOLDER
Section 760.470 Retention of Records by Holder
a) A holder is required to retain records for 10
years after the later of the date the report was filed or the last date a
timely report was due to be filed.
b) The
records must contain:
1) the information required to be included in
the report;
2) the date, place, and nature of the
circumstances that gave rise to the property right;
3) the amount or value of the property;
4) the last address of the apparent owner, if
known to the holder;
5) sufficient records of items that were not
reported as unclaimed, to allow examination to determine whether the holder has
complied with the Act [765 ILCS 1026/15-404];
EXAMPLE:
Records related to property when the holder gave express notice to
the administrator of a dispute regarding the property. [765 ILCS
1026/15-610(b)]; and
6) a record of the instruments while they remain
outstanding indicating the state and date of issue if the holder sells, issues,
or provides to others for sale or issue in this State traveler's checks, money
orders, or similar instruments, other than third-party bank checks, on which
the holder is directly liable. [765 ILCS 1026/15-404].
c) If a holder fails to maintain records required
by Section 15-404 of the Act, 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 in this Part.
d) Both the records retention period of Section
15-404 of the Act and the statute of limitations in Section 15-610(b) of the
Act are 10 years. However, the statute of limitations only applies after
the holder specifically identified the property in a report filed with the
administrator or gave express notice to the administrator of a dispute
regarding the property. [765 ILCS 1026/15-610(b)] If the statute of
limitations has been tolled because the holder failed to either report property
or provide express notice to the administrator and the holder fails to maintain
sufficient records of items that were not reported as unclaimed, to allow
examination to determine whether the holder has complied with the Act [765
ILCS 1026/15-404(5)], the administrator may use estimation in an examination of
that holder pursuant to Section 15-1006 of the Act and this Part.
SUBPART D: NOTICE TO APPARENT OWNERS BY THE ADMINISTRATOR
| TITLE 74: PUBLIC FINANCE
CHAPTER V: TREASURER
PART 760
REVISED UNIFORM UNCLAIMED PROPERTY ACT
SECTION 760.500 NOTICES BY UNITED STATES MAIL
Section 760.500 Notices by United States Mail
a) The administrator shall send at least one
written notice by first-class U.S. Mail to each apparent owner of unclaimed
property held by the administrator and valued at $100 or more.
b) However, the administrator shall not send a
notice under this Section by first-class U.S. Mail if the administrator
reasonably believes that a mailing by first-class U.S. Mail would not be
received by the apparent owner.
c) In the case of a security held in an account
for which the apparent owner had consented to receiving e-mail from the holder,
the administrator shall send notice by e-mail if the e-mail address
of the apparent owner is known to the administrator, instead of by first-class U.S.
Mail. [765 ILCS 1026/15-503(b)(1)]
| TITLE 74: PUBLIC FINANCE
CHAPTER V: TREASURER
PART 760
REVISED UNIFORM UNCLAIMED PROPERTY ACT
SECTION 760.510 E-MAIL NOTICES
Section 760.510 E-Mail Notices
a) Whenever the administrator has an e-mail address
for an apparent owner of unclaimed property held by the administrator and
valued at $100 or more and the administrator does not know that e-mail address
to be invalid, the administrator shall send at least one notice to the apparent
owner by e-mail if the administrator did not send a written notice by
first-class U.S. Mail. (See 765 ILCS 1026/15-503(b)(2).)
b) In addition to any notice mandated by the Act,
the administrator may send an additional notice to an apparent owner to any
e-mail address for the apparent owner that the administrator does not know to
be invalid.
c) When practicable, e-mail notices from the
administrator shall provide a hyperlink to the website maintained by the
administrator.
| TITLE 74: PUBLIC FINANCE
CHAPTER V: TREASURER
PART 760
REVISED UNIFORM UNCLAIMED PROPERTY ACT
SECTION 760.520 NEWSPAPER NOTICES
Section 760.520 Newspaper Notices
a) At least once every 6 months, the
administrator shall cause to be published in at least one English language
newspaper of general circulation in each county in this State a notice
concerning the unclaimed property program.
b) The
newspaper notice shall include the following information:
1) the total value of property received statewide
by the administrator during the preceding 6-month period;
2) the total value of claims paid by the
administrator statewide during the preceding 6-month period;
3) the address of the unclaimed property website
maintained by the administrator;
4) an e-mail address to contact the
administrator to inquire about or claim property; and
5) a statement that computers may be available
at a local public library to search for unclaimed property. [765 ILCS
1026/15-503(c)(1)]
c) The administrator may contract with a vendor to
cause to be published the required newspaper notices. A contract concerning
newspaper notices may, but is not required to, be part of a more comprehensive
marketing services contract or specific contract.
d) Newspaper notices may include other information
at the discretion of the administrator.
e) The administrator may cause additional notices
or advertisements to be published in newspapers and print publications other
than the required notices. The additional notices do not need to contain the
mandatory information listed in subsection (b).
(Source:
Amended at 46 Ill. Reg. 16898, effective September 26, 2022)
| TITLE 74: PUBLIC FINANCE
CHAPTER V: TREASURER
PART 760
REVISED UNIFORM UNCLAIMED PROPERTY ACT
SECTION 760.530 WEBSITE
Section 760.530 Website
a) The administrator shall maintain a website
accessible by the public and electronically searchable that contains the names
reported to the administrator of apparent owners for whom property is being
held by the administrator.
b) The administrator does not need to list
property on the unclaimed property website when:
1) no owner name was reported;
2) a claim has been initiated or is pending for
the property;
3) the administrator has made direct contact
with the apparent owner of the property; and
4) in other instances in which the administrator
reasonably believes exclusion of the property is in the best interests of both
the State and the owner of the property. [765 ILCS 1026/15-503(c)(1)]
c) The administrator's unclaimed property
website shall include an online claim form and instructions for filing a claim
with the administrator. The administrator may also make available a printable
claim form with instructions for its use. [765 ILCS 1026/15-503(d)]
d) The administrator may include on the website
the names and addresses of apparent owners of property held by the
administrator. [765 ILCS 1026/15-1401(d)]
e) In addition to the required website, the
administrator may utilize other websites, including any websites endorsed by
the National Association of Unclaimed Property Administrators (NAUPA), to
promote the unclaimed property program and seek to reunite owners with their
unclaimed property.
(Source: Amended at 48 Ill. Reg. 14162, effective September
10, 2024)
| TITLE 74: PUBLIC FINANCE
CHAPTER V: TREASURER
PART 760
REVISED UNIFORM UNCLAIMED PROPERTY ACT
SECTION 760.540 TAX RETURN IDENTIFICATION OF APPARENT OWNERS
Section 760.540 Tax Return Identification of Apparent Owners
The administrator will work with
the Illinois Department of Revenue (DOR) to facilitate the return of unclaimed
property to Illinois taxpayers through data sharing as required by the Act. This
data sharing is intended to update contact information for apparent owners in
the administrator's records, to allow the administrator to return some types of
unclaimed property directly to apparent owners without a claim being filed, and
to otherwise facilitate the return of unclaimed property in the custody of the
administrator to the legal owners.
| TITLE 74: PUBLIC FINANCE
CHAPTER V: TREASURER
PART 760
REVISED UNIFORM UNCLAIMED PROPERTY ACT
SECTION 760.550 UPDATING APPARENT OWNER DATA
Section 760.550 Updating Apparent Owner Data
a) The administrator may utilize publicly and
commercially available databases, as well as information obtained through data
sharing agreements authorized by the Act, to find and update or add information
for apparent owners of property held by the administrator.
b) The administrator may, but is not required to,
update or add a mailing address or e-mail address for an apparent owner prior
to sending notices required by the Act.
c) If a required notice has already been sent by
the administrator, the administrator does not need to send a new written notice
merely because a mailing address or e-mail address for an apparent owner has
been subsequently updated or added.
| TITLE 74: PUBLIC FINANCE
CHAPTER V: TREASURER
PART 760
REVISED UNIFORM UNCLAIMED PROPERTY ACT
SECTION 760.560 OTHER DISCRETIONARY MEANS OF PROVIDING NOTICE
Section 760.560 Other Discretionary Means of Providing
Notice
a) Paid
Advertising
1) The administrator may use paid advertising to
increase awareness of the unclaimed property program, provide notice to persons
who may be the owners of unclaimed property in the custody of the
administrator, or to otherwise facilitate the return of unclaimed property to
legal owners.
2) Any paid advertising shall conform to the
requirements of Section 5-20 of the State Officials and Employees Ethics Act [5
ILCS 430].
b) Direct
Contact
1) The administrator may use contact information
reasonably believed to be accurate to attempt to directly contact apparent
owners of property held by the administrator.
2) When directly contacting an apparent owner, the
administrator may reveal additional information concerning the apparent owner's
property if the administrator believes the information will assist in
identifying and returning property to the owner and does not disclose personal
information as defined in the Personal Information Protection Act [815 ILCS
530].
3) Direct contacts include, but are not limited to,
telephone calls, in-person meetings, direct electronic communications, targeted
social media contacts, and similar methods of contact.
c) Broadcast
Media
1) The administrator may make agreements with
broadcast media outlets to use live telethons, call-in programs, and similar
events of limited duration to both promote the unclaimed property program
authorized by the Act and to notify owners of the existence of unclaimed
property.
2) These broadcasts should be considered the
dissemination of news and should not be considered a public service
announcement or advertisement.
d) Contractual
Vendors
1) The administrator may contract with one or more
vendors that provide websites, including any websites endorsed by the National
Association of Unclaimed Property Administrators (NAUPA), to promote the
unclaimed property program and seek to reunite owners with their unclaimed
property.
2) The administrator may contract with one or more
vendors that provide applications to assist apparent owners in identifying and
claiming property in the custody of the administrator. The vendors shall be
selected by a competitive request for proposals pursuant to the Office of the
Treasurer Procurement Rules [44 Ill. Adm. Code 1400]. Compensation must conform
with the restrictions in Article 13 of the Act concerning agreements to locate
property of apparent owners held by the administrator.
| TITLE 74: PUBLIC FINANCE
CHAPTER V: TREASURER
PART 760
REVISED UNIFORM UNCLAIMED PROPERTY ACT
SECTION 760.570 CONFIDENTIALITY
Section 760.570 Confidentiality
The
administrator may include in published notices, printed publications,
telecommunications, the Internet, or other media and on the website or in the
database additional information concerning the apparent owner's property if the
administrator believes the information will assist in identifying and returning
property to the owner and does not disclose personal information as defined in
the Personal Information Protection Act
[815 ILCS 530]. [765 ILCS 1026/15-1401(d)]
| TITLE 74: PUBLIC FINANCE
CHAPTER V: TREASURER
PART 760
REVISED UNIFORM UNCLAIMED PROPERTY ACT
SECTION 760.580 NOTICE TO STATE AGENCIES AND UNITS OF LOCAL GOVERNMENT
Section 760.580 Notice to State Agencies and Units of Local
Government
a) If the administrator reasonably believes that
the apparent owner of property presumed abandoned held by the administrator
under this Act is a unit of local government in this State which files an audit
report or annual financial report with the Comptroller, the administrator may
give written notice to the person or persons identified in the most recent
annual financial report as the contact person, the chief executive officer, and
the chief financial officer. [765 ILCS 1026/15-504(b)]
1) Various state laws mandate that specified units
of local government file an annual financial report with the Comptroller. The
Governmental Account Audit Act mandates each governmental unit file an annual
financial report with the Comptroller. [50 ILCS 310] The Illinois Municipal
Auditing Law in the Illinois Municipal Code mandates each municipality file an
annual financial report with the Comptroller. [65 ILCS 5/8-8-1] The County
Auditing Law of the Counties Code mandates that counties file an annual
financial report with the Comptroller. [55 ILCS 5/6-31001]
2) The Comptroller requires as part of the annual
financial report that the unit of local government provide contact information
for a Contact Person, the Chief Executive Official, and the Chief Financial
Officer. Depending upon the unit of local government these may all be separate
individuals or the same individual. The Comptroller requires the unit of local
government to validate an email address for each listed government official.
3) The administrator may provide notice to a unit
of local government by sending a written notice to the Contact Person, the
Chief Executive Official, and the Chief Financial Officer indicated in the most
recent annual financial report filed with the Comptroller. A holder may report
unclaimed property to the administrator with the name of a previous official or
employee of a unit of local government, but the administrator should provide
notice to the current officials or employees designated by the unit of local
government. The written notice from the administrator may be by e-mail or U.S.
Mail or both.
b) If the administrator reasonably believes that
the apparent owner of property presumed abandoned held by the administrator
under this Act is a State agency as defined in the Illinois State Auditing Act
[30 ILCS 5/1-7], the administrator may give written notice to the person
whom the records of the Comptroller indicate are the chief executive officer
and chief fiscal officer of such State agency. [765 ILCS 1026/15-504(c)]
(Source: Added at 48 Ill. Reg. 14162,
effective September 10, 2024)
SUBPART E: CLAIMS
| TITLE 74: PUBLIC FINANCE
CHAPTER V: TREASURER
PART 760
REVISED UNIFORM UNCLAIMED PROPERTY ACT
SECTION 760.600 CLAIMS
Section 760.600 Claims
A
person claiming to be the owner of property held under the Act by the
administrator or of the proceeds from
the sale of property may file a claim for the property or proceeds from the
sale of property on a form prescribed by the administrator and that is
available on the Administrator's website at icash.illinoistreasurer.gov. [765
ILCS 1026/15-903]
| TITLE 74: PUBLIC FINANCE
CHAPTER V: TREASURER
PART 760
REVISED UNIFORM UNCLAIMED PROPERTY ACT
SECTION 760.610 BURDEN OF PROOF
Section 760.610 Burden of Proof
a) The administrator is the custodian for property
delivered to the State under the Act and is responsible for the safekeeping of
that property. Therefore, any person who files a claim for any property held by
the administrator pursuant to the Act shall bear the burden of proof in
establishing that person is the lawful owner of the property or has an interest
in the property.
b) The administrator will release the property to a
claimant after the person establishes his or her ownership of the property or
an interest in the property by a preponderance of the evidence.
c) Notwithstanding the requirements of subsection
(a) and (b), the administrator may waive those requirements if a claimant
satisfies the requirements for payment or delivery of property under Section
760.620 or 760.630.
| TITLE 74: PUBLIC FINANCE
CHAPTER V: TREASURER
PART 760
REVISED UNIFORM UNCLAIMED PROPERTY ACT
SECTION 760.620 FILING OF CLAIMS
Section 760.620 Filing of Claims
a) Claimants may file claims with the administrator
either in writing on forms prescribed by the administrator or through
completion of a form on the administrator's website.
b) Claims
shall be verified or signed by the claimant under penalty of perjury.
c) If the subject property, including contents of a
safe deposit box, is valued at more than $5,000, the claimant may either
provide a claim form supported by a notarized signature or verify the claim
under penalty of perjury via the administrator's website. The administrator
may require a notarized signature for claims submitted on the website when
requesting a notarized signature would aid in the determination of whether the
claimant has met their burden of proof.
d) If
the value of the subject property is $5,000 or less:
1) a fully completed owner claim and owner
indemnification form, submitted to the administrator either in writing or
through completion of a form on the administrator's website, will be accepted as
prima facie evidence of validity of the claim, unless the administrator has
facts within his or her knowledge that would tend to rebut the claim; and
2) the administrator may waive the requirement to
complete a claim form and may pay or deliver property directly to a claimant if
the person receiving the property is shown to be the apparent owner of the
property included on a report filed pursuant to the Act, and the administrator
reasonably believes the claimant is entitled to receive the property or payment.
[765 ILCS 1026/15-903]
e) An heir or agent who files an unclaimed
property claim in which the decedent's property does not exceed $250 may
submit an affidavit attesting to the heir's or agent's capacity to claim in
lieu of submitting a certified copy of the will to verify a claim. [765
ILCS 1026/15-904(b-5)]
f) If the property being claimed is a two-party
check, in addition to submitting a fully completed claim form, the claimant
must:
1) submit the original check;
2) submit verification in the form of an affidavit
from the issuing agent of the check that the claimant is the true owner of the
check and the issuing agent would then pay the value of the check to the
claimant if the issuing agent had not remitted the funds to the administrator;
3) post a surety bond, issued by an insurance
company with an A+ or A rating by A.M. Best and Company, in the amount of the
check;
4) submit a release of interest executed by all
persons not claiming the property who were listed as apparent owners by the
holder;
5) submit an order from a court of competent
jurisdiction indicating the claimant is the owner of the unclaimed property; or
6) submit an indemnification form if the
administrator does not have facts within its knowledge that would tend to rebut
the claim and all the following apply:
A) the original check is missing or has been
destroyed;
B) the original check is older than 14 years;
C) incomplete information was reported by the
holder; and
D) the amount of the two-party check is $5,000 or
less.
g) A claim will be considered complete when a
claimant has provided all the information and documentation requested by the
administrator as necessary to establish legal ownership and that information or
documentation is entered into the unclaimed property system. Unless extended
for reasonable cause, the administrator shall issue a decision no later than 90
days after a claim is complete.
h) If a claimant is unable to provide documentation
sufficient to establish ownership by a preponderance of the evidence, the
claimant may request that the administrator formally deny the claim in order to
allow the claimant to commence a contested case, pursuant to Article 10 of the
Illinois Administrative Procedure Act [5 ILCS 100], for review of the
administrator's decision.
i) Closing
Claims
1) If a claimant fails to provide information and
documentation necessary to establish legal ownership of the property by a
preponderance of the evidence and the claim is inactive for at least 90 days,
the administrator may close the claim without issuing a final decision.
2) If the claimant makes a request in writing for a
final decision prior to the administrator's closing of the claim, the
administrator shall issue a final decision.
3) If, after a claim is closed, a claimant
subsequently provides additional information or documentation concerning the
same property, the administrator shall open a new claim and shall incorporate
by reference all information and documentation provided for the closed claim.
j) Not later than one year after filing a
claim, a claimant may commence a contested case pursuant to the Illinois
Administrative Procedure Act to establish a claim by the preponderance of the
evidence after either receiving notice of the denial from the administrator
or the claim is deemed denied. [765 ILCS 1026/15-906]
k) This Section is the sole administrative
and legal procedure for claiming property under the Act. Compliance with this Section is required prior to
exercising the exclusive judicial remedy found in Section 15-906 of the Act.
(Source:
Amended at 48 Ill. Reg. 14162, effective September 10, 2024)
| TITLE 74: PUBLIC FINANCE
CHAPTER V: TREASURER
PART 760
REVISED UNIFORM UNCLAIMED PROPERTY ACT
SECTION 760.630 TAX RETURN IDENTIFICATION OF APPARENT OWNERS
Section 760.630 Tax Return Identification of Apparent
Owners
a) At least annually the administrator shall
notify the Illinois Department of Revenue of the names of
apparent owners of abandoned property.
1) The administrator shall also provide to DOR
the social security numbers of apparent owners of abandoned property, if
available. [765 ILCS 1026/15-503(e)]
2) The administrator may also provide DOR with
other data, such as the mailing address of the apparent owner.
3) The administrator shall not provide DOR with the
name of an apparent owner of unclaimed property if a claim has been filed for that
property with the administrator and the claim has not been denied or closed.
4) The administrator does not need to
notify DOR of the names or social security numbers of apparent owners of
abandoned property if the administrator reasonably believes that DOR
will be unable to provide information that would provide sufficient evidence to
establish that the person in DOR's records is the apparent owner of unclaimed
property in the custody of the administrator. [765 ILCS 1026/15-503(e)(6)]
5) EXAMPLE: The administrator does not need to
notify DOR of the name of an apparent owner of unclaimed property in the
custody of the administrator when:
A) the administrator has previously notified DOR of the
name of an apparent owner, DOR was unable to match the name to any person in DOR's
records, and the administrator reasonably believes that DOR would continue to
not be able to match the name;
B) the administrator's records contain the name of
an apparent owner without an address or social security number and that name is
so common as to prevent an unique match with DOR records;
C) the administrator has reason to believe that the
apparent owner is deceased; or
D) even if DOR provided a current address for the
apparent owner, the administrator would not be able to deliver the unclaimed
property to that owner because the property is jointly owned, is an escrow
account, or has other legal impediments to clear ownership of the property by a
unique owner.
b) DOR shall notify the administrator if any person
matching the name of an apparent owner has filed an Illinois income tax return
and shall provide the administrator with the last known address and/or
additional addresses of the person as it appears in DOR records, except as
prohibited by federal law. (See 765 ILCS 1026/15-503(e)(2))
c) The administrator may deliver property or pay
the amount owing to a person matched under this Section without the person filing
a claim if the following conditions are met:
1) the value of each individual property that is
owed the apparent owner is $5,000 or less;
2) the property is not either tangible property or
securities;
3) there are no legal impediments to delivering the
property or paying the amount owed to an unique apparent owner;
4) the last known address for the apparent owner
according to DOR records is less than 12 months old; and
5) the administrator has evidence sufficient to
establish that the person who appears in DOR records is the owner of the
property and the owner currently resides at the last known address from DOR.
d) If the name, address and social security number
of the apparent owner in the records of the administrator and DOR match, there
is a presumption that the administrator has sufficient evidence to deliver
property or pay the amount owing to the apparent owner.
e) After receiving a match from DOR, the
administrator may use additional databases to verify the identity of the person
and that the person currently resides at the last known address. The
administrator may utilize publicly and commercially available databases to find
and update or add information for apparent owners of property held by the
administrator. [765 ILCS 1026/15-503(f)]
f) In determining whether there is sufficient
evidence to deliver property or pay the amount owing to the apparent owner, the
administrator may rely upon evidence beyond the match provided by DOR.
g) When the name of an apparent owner has an unique
match with DOR records and the property owed to the apparent owner is greater
than $5,000, or is tangible property or securities, the administrator shall
provide notice to the person, informing the person that he or she is the owner
of abandoned property held by the State and may file a claim with the
administrator for return of the property. The administrator may provide the
notice by email, U.S. Mail, direct contact, or any combination of these methods.
(Source: Amended at 46 Ill. Reg. 16898, effective September
26, 2022)
| TITLE 74: PUBLIC FINANCE
CHAPTER V: TREASURER
PART 760
REVISED UNIFORM UNCLAIMED PROPERTY ACT
SECTION 760.631 IDENTIFICATION OF APPARENT OWNERS OF ABANDONED PROPERTY USING OTHER STATE DATABASES
Section 760.631 Identification of Apparent Owners of
Abandoned Property Using Other State Databases
a) The
administrator may enter into interagency agreements with the Secretary of State
and the Illinois State Board of Elections to identify persons appearing to be
owners of abandoned property with databases under the control of the Secretary
of State and the Illinois State Board of Elections. These interagency agreements shall include protection of
confidential information, data match rules, and other necessary and proper
issues. [765 ILCS 1026/15-503(h)(1)]
b) Except as
prohibited by federal law, after January 1, 2022, the administrator may provide
the Secretary of State with names and other identifying information of persons
appearing to be owners of abandoned property. [765 ILCS 1026/15-503(h)(2)]
Consistent with any interagency agreements with the Secretary of State, the
administrator will use the last known address as it appears in its
respective records of any person reasonably believed to be the apparent owner
of abandoned property provided by the Secretary of State to pay apparent
owners pursuant to the Act. [765 ILCS 1026/15-503(h)(2)] Similar to the tax
return identification of apparent owners in Section 760.630, the administrator will
provide unclaimed property data to the Secretary of State in order for the
Secretary of State to perform the data matching so that the Secretary of State can
comply with relevant federal laws concerning data privacy that prevent the
administrator from performing the data matching.
c) The administrator will request that the Illinois
State Board of Elections provide electronic data or compilations of
voter registration information to the administrator at least annually. The
administrator may use such electronic data or compilations of voter
registration information to identify persons appearing to be owners of abandoned
property. [765 ILCS 1026/15-503(h)(3)] Unlike the data matching with the
Illinois Department of Revenue and the Secretary of State, the Illinois State
Board of Elections has the legal authority to provide this data to the
administrator, and the administrator may perform the data matching. [10 ILCS
5/1A-25 and 765 ILCS 1026/15-503(h)(3)]
d) The
administrator may deliver, as provided under Section 15-904 of the Act,
property or pay the amount owing to a person matched under this Section without
the person filing a claim under Section 15-903 of the Act if:
1) the
value of the property that is owed the person is $5,000 or less;
2) the
property is not either tangible property or securities;
3) the
last known address for the person according to the records of the Secretary of
State or Illinois State Board of Elections is less than 12 months old; and
4) the
administrator has evidence sufficient to establish that the person who appears
in the records of the Secretary of State or Illinois State Board of Elections
is the owner of the property and the owner currently resides at the last known
address from the Secretary of State or the Illinois State Board of Elections.
[765 ILCS 1026/15-503(h)(4)]
e) If the name, address and other identifying
information of the apparent owner in the records of the administrator and the
Secretary of State or Illinois State Board of Elections match, there is a
presumption that the administrator has sufficient evidence to deliver property
or pay the amount owing to the apparent owner.
(Source: Added at 46 Ill. Reg. 16898,
effective September 26, 2022)
| TITLE 74: PUBLIC FINANCE
CHAPTER V: TREASURER
PART 760
REVISED UNIFORM UNCLAIMED PROPERTY ACT
SECTION 760.640 CREDITING INCOME OR GAIN TO OWNER'S ACCOUNT
Section 760.640 Crediting Income or Gain to Owner's
Account
a) If property other than money is delivered to
the administrator, the owner is entitled to receive from the administrator
income or gain realized or accrued on the property before the property is sold.
[765 ILCS 1026/15-607(a)] (See Canel v. Topinka, 212 Ill. 2d 311, 818 N.E.2d
311 (2004).)
b) Before August 22, 2017, interest on money is
not payable to an owner for periods where the property is in the possession of
the administrator. [765 ILCS 1026/15-607(b)] August 22, 2017 is the
earliest start date for interest under this Section. The date is set by the
Act, but comes from the date of a Seventh Circuit opinion requiring the State
to begin paying interest to owners. (See Kolton v. Frerichs, 869 F.3d 532 (7th
Cir. 2017).)
c) Beginning on August 22, 2017, the
administrator shall pay interest to the owner of property in the form of money
at the greater of:
1) 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); or
2) the actual rate of return the State Treasurer
earned on the Unclaimed Property Trust Fund.
d) Interest
begins to accrue when property in the form of money is delivered to the
administrator or when the administrator converts property to money pursuant to Article
7 of the Act and ends on the earlier of
the expiration of 10 years after the property begins to accrue interest or the
date on which payment is made to the owner. [765 ILCS 1026/15-607(c)]
e) As provided in the settlement agreement entered
in the case of Kolton v. Frerichs, 869 F.3d 532 (7th Cir. 2017), the
administrator will not pay interest when transferring property to another
state's unclaimed property administrator when using an interstate exchange
process pursuant to Section 15-901 of the Act. The administrator will not pay
interest when reimbursing a holder pursuant to Section 15-605 of the Act as the
holder is not the owner of the property entitled to just compensation under
Section 15-607 of the Act or the settlement agreement entered in the case of Kolton
v. Frerichs, 869 F.3d 532 (7th Cir. 2017).
f) When
calculating interest for the month in which the claim is to be paid, the most
recent rate of return earned by the Unclaimed Property Trust Fund and CPI-U
data available at the time the claim is approved will be used.
EXAMPLE: A holder reported two
pension properties to the Treasurer on June 30, 2018. On December 11, 2020,
the owner was reunited with the properties totaling $1,210.69. Although August
22, 2017 is one of the possible start dates used to calculate the interest
payment, June 30, 2018 is used because pursuant to Section 15-607(c) of the
Act, the later date prevails. As such, the interest payment is calculated from
June 30, 2018 to December 10, 2020. The owner is entitled to interest in the
amount of $50.97 from which a $5 administrative fee is deducted from the
interest amount for each property. At the time of this claim’s approval, the
most recent CPI-U interest rate is used because it was the higher amount than
the rate of return earned by the Treasurer in the Unclaimed Property Trust
Fund.
g) When paying interest to an owner, the
administrator shall charge a one-time administrative fee of $5, deductible only
from interest. [765 ILCS 1026/15-607(d)]
(Source: Amended
at 48 Ill. Reg. 14162, effective September 10, 2024)
| TITLE 74: PUBLIC FINANCE
CHAPTER V: TREASURER
PART 760
REVISED UNIFORM UNCLAIMED PROPERTY ACT
SECTION 760.650 FINDERS
Section 760.650 Finders
a) No person or company shall be entitled to a fee
for discovering presumptively abandoned property until it has been in the
custody of the administrator for at least 24 months. Fees for discovering
property that has been in the custody of the administrator for more than 24
months shall be limited to not more than 10% of the amount collected. (See 765
ILCS 1026/15-1302.)
b) Notwithstanding anything in this Section to the
contrary, a licensed attorney may pursue a claim for recovery of
specifically identified property held by the administrator or to contest the
administrator's denial of a claim for recovery of the property provided the
attorney has an attorney-client relationship with the apparent owner. [765 ILCS
1026/15-1302(f)] Section 15-903 of the Act is the sole administrative and
legal procedure for claiming property under the Act. Compliance with Section
15-903 of the Act and this Subpart is required prior to exercising the
exclusive judicial remedy in Section 15-906 of the Act.
1) This exemption from the normal restrictions on
finders is limited to attorneys who have an attorney-client relationship with
the claimant. Being an attorney licensed in Illinois is a necessary, but not
sufficient, precondition for this exemption to be applicable. The attorney must
be in an attorney-client relationship with the claimant. An attorney
representing a person or entity other than the claimant is not covered by this
exemption.
2) The rationale for the exemption is that the
Illinois Rules of Professional Conduct apply to the attorney and to the
attorney's actions.
3) The exemption does not authorize an attorney to
bypass the claims process established by Section 15-903 of the Act.
c) For claims in which a finder is assisting an
apparent owner, the following shall be submitted to the administrator:
1) a signed, dated and notarized copy of the
contract between the finder and the apparent owner that satisfies the
requirements of the Act, specifies the obligations of the parties, and establishes
the fee arrangement between the finder and claimant; and
2) if the finder charges a contingent fee, a copy
of the active private detective license issued by the Illinois Department of
Financial and Professional Regulation to the finder.
(Source:
Amended at 48 Ill. Reg. 14162, effective September 10, 2024)
| TITLE 74: PUBLIC FINANCE
CHAPTER V: TREASURER
PART 760
REVISED UNIFORM UNCLAIMED PROPERTY ACT
SECTION 760.660 PROPERTY SUBJECT TO RECOVERY BY ANOTHER STATE
Section 760.660 Property Subject to Recovery by Another
State
a) If the administrator is aware that property held
under the Act is subject to a superior claim of another state, the
administrator shall either report and deliver the property to the other state
or return the property to the holder for delivery to the other state.
b) A claim by another state to recover property
under this Section must be presented in a form prescribed by the administrator,
unless the administrator waives presentation of the form.
c) The administrator shall decide a claim under
this Section not later than 90 days after it is presented.
d) To the extent permitted under the law of the
other state, the administrator may require another state to agree to indemnify
the administrator and the State of Illinois and its agents, officers and
employees against any liability on a claim to the property.
| TITLE 74: PUBLIC FINANCE
CHAPTER V: TREASURER
PART 760
REVISED UNIFORM UNCLAIMED PROPERTY ACT
SECTION 760.670 DEBT COLLECTION AGENCIES
Section 760.670 Debt Collection Agencies
a) A debt collection agency shall initiate its own
claims for unclaimed property in the custody of the administrator. The
administrator will not initiate claims for debt collection agencies.
b) Debt collection agencies shall submit citations
to discover assets to the administrator at least 30 days in advance of the
return date.
c) Unclaimed property held by the administrator for
a debtor will be held pursuant to a citation to discover assets for up to 90
days.
d) Claims submitted by debt collection agencies
will be closed after 90 days without the submission of a valid turnover order
from a court of competent jurisdiction.
e) Claims submitted by debt collection agencies
will be paid after receipt of a valid turnover order from a court of competent
jurisdiction.
f) The administrator shall reject claims
submitted by debt collection agencies on behalf of entities that:
1) are
under examination by the administrator pursuant to the Act; or
2) the
administrator reasonably believes are not in compliance with the requirements
of the Act including, but not limited to, failure to file reports under Section
15-401 of the Act.
(Source:
Amended at 46 Ill. Reg. 16898, effective September 26, 2022)
| TITLE 74: PUBLIC FINANCE
CHAPTER V: TREASURER
PART 760
REVISED UNIFORM UNCLAIMED PROPERTY ACT
SECTION 760.680 HOLDER REIMBURSEMENT
Section 760.680 Holder Reimbursement
a) A holder that pays money to the administrator
may file a claim for reimbursement from the administrator of the amount paid if
the holder:
1) paid the money in error; or
2) after paying the money to the administrator,
paid money to a person the holder reasonably believed entitled to the money.
b) If a claim for reimbursement is made for a
payment made on a negotiable instrument, including a traveler's check, money
order, or similar instrument, the holder must submit proof that the instrument
was presented and payment was made to a person the holder reasonably believed
entitled to payment. The holder may claim reimbursement even if the
payment was made to a person whose claim was made after expiration of a period
of limitation on the owner's right to receive or recover property, whether
specified by contract, statute or court order.
c) If a holder is reimbursed by the
administrator, the holder may also recover any income or gain that would have
been paid by the administrator to the owner on an owner claim provided the
holder paid the earned income or gain to the owner.
d) A holder that delivers property other than
money to the administrator may file a claim for return of the property from the
administrator if:
1) the holder delivered the property to the
administrator in error; or
2) the apparent owner has claimed the property
from the holder.
e) If a claim for return of property is made,
the holder shall include with the claim evidence sufficient to establish that
the apparent owner has claimed the property from the holder or that the
property was delivered by the holder to the administrator in error.
f) The administrator may make a determination
that an affidavit submitted by a holder is evidence sufficient to establish
that the holder is entitled to reimbursement or to recover property under
this Section.
g) A holder is not required to pay a fee or
other charge for reimbursement or return of property.
h) The administrator shall allow or deny a
holder's claim not later than 90 days after the claim is complete and give the
holder notice in a record of the decision. The administrator may grant an
extension for reasonable cause.
i) A claim will be considered complete when a
holder has provided all the information and documentation requested by the
administrator as necessary to establish legal ownership and that information or
documentation is entered into the administrator's unclaimed property system.
j) If a holder fails to provide all the
information and documentation requested by the administrator as necessary to
establish legal ownership of the property and the claim is inactive for at
least 90 days, the administrator may close the claim without issuing a final
decision. However, if the claimant makes a request in writing for a final
decision prior to the administrator's closing of the claim, the administrator
shall issue a final decision.
k) The holder may initiate a proceeding under Article
10 of the Illinois Administrative Procedure Act for review of the
administrator's decision on the earlier of 30 days following receipt of
the notice of the administrator's decision or 120 days following the filing of
a claim. [765 ILCS 1026/15-605]
| TITLE 74: PUBLIC FINANCE
CHAPTER V: TREASURER
PART 760
REVISED UNIFORM UNCLAIMED PROPERTY ACT
SECTION 760.690 SECURITIES SALE AND CLAIMS
Section 760.690 Securities Sale and Claims
a) Sale
of Securities
1) The administrator may not sell a security prior
to attempting to provide notice as provided for in Section 15-503 of the Act.
2) Unless the administrator reasonably determines
it would be in the best interests of the owner for the sale to occur sooner, the
administrator may not sell or otherwise liquidate a security until 3 years
after the administrator receives the security.
A) Instances in which it would be in the best
interest of the owner for a sale of securities to occur prior to the expiration
of the 3-year period include, without limitation: responding to a tender offer;
a bankruptcy filing; a business liquidation; heirs of a deceased apparent owner
file a claim for their portions of the securities or the net proceeds of the
securities; and instances in which fees will significantly deplete the value of
the securities.
B) If the administrator sells a security prior to
the expiration of the 3-year period, the administrator shall document in a
record the reasons for the sale.
3) Unless otherwise provided in the Act or this
Part, the administrator may sell a security at any time after 3 years after the
administrator receives the security.
A) The administrator may not sell a security
listed on an established stock exchange for less than the price prevailing on
the exchange at the time of sale.
B) The administrator may sell or otherwise
dispose of a security not listed on an established exchange by any
commercially reasonable method. [765 ILCS 1026/15-702(b)]
4) Securities will not be sold when a claim has
been filed with the administrator by an apparent owner, heir, or agent for those
securities.
A) However, the apparent owner, heir, or agent may
direct the administrator to dispose of the securities by sale and remit the net
proceeds to the owner, heir, or agent.
B) Upon denial of a claim, the administrator may
dispose of the securities as provided in the Act and this Part.
C) The administrator may also dispose of the
securities as provided in the Act and this Part if, after being requested by
the administrator, the apparent owner, heir, or agent fails to provide
necessary and sufficient information to allow the administrator to transfer the
securities within 30 days after the administrator's request.
D) The administrator may also dispose of any
securities that remain unclaimed as provided in the Act and this Part if:
i) the apparent owner of the securities is
deceased; and
ii) one or more, but not all, heirs of the apparent
owner file a claim for their portions of the securities or the net proceeds of
the securities.
E) The administrator may dispose of securities that
while in the custody of the administrator become a non-freely transferable security
because of sanctions, government action administered by the U.S. Department of
the Treasury's Office of Foreign Assets Control in any manner in conformity
with federal law.
b) Recovery
of Securities or Value by Owner
1) If the administrator sells a security before
the expiration of 3 years after delivery of the security to the administrator,
an apparent owner that files a valid claim under the Act for the security
before the 3-year period expires is entitled, at the option of the owner, to
receive:
A) replacement of the security;
B) the market value of the security at the time
the claim is filed, plus dividends, interest, and other increments on the
security up to the time the claim is paid; or
C) the net proceeds of the sale of the security,
plus dividends, interest, and other increments on the security up to the time
the security was sold. [765 ILCS 1026/15-703(a)]
2) Replacement of the security or calculation of
market value under subsection (b)(1) must take into account a stock
split, reverse stock split, stock dividend, or similar corporate action.
[765 ILCS 1026/15-703(b)]
3) A person that makes a valid claim under the
Act for a security after expiration of 3 years after delivery of the security
to the administrator is entitled to receive:
A) the security the holder delivered to the
administrator, if it is in the custody of the administrator, plus dividends,
interest, and other increments on the security up to the time the administrator
delivers the security to the person; or
B) the net proceeds of the sale of the security,
plus dividends, interest, and other increments on the security up to the time
the security was sold. [765 ILCS 1026/15-703(c)]
(Source:
Amended at 48 Ill. Reg. 14162, effective September 10, 2024)
SUBPART F: EXAMINATIONS
| TITLE 74: PUBLIC FINANCE
CHAPTER V: TREASURER
PART 760
REVISED UNIFORM UNCLAIMED PROPERTY ACT
SECTION 760.700 AUTHORITY
Section 760.700 Authority
Pursuant
to the Act the administrator may, at reasonable times and on reasonable notice,
examine the records of any person to determine whether the person has
complied with the Act even if the person believes it is not in possession of
any property that must be reported, paid, or delivered under the Act. [765
ILCS 1026/15-1002(1)]
| TITLE 74: PUBLIC FINANCE
CHAPTER V: TREASURER
PART 760
REVISED UNIFORM UNCLAIMED PROPERTY ACT
SECTION 760.710 PURPOSE
Section 760.710 Purpose
a) The goal of an unclaimed property examination
shall be to determine whether a person is in compliance with the Act. Unclaimed
property is reported to the State of Illinois pursuant to the Act and the
federal common law as established by the U.S. Supreme Court (Texas v. New
Jersey, 379 U.S. 674 (1965); Pennsylvania v. New York, 407 U.S. 206 (1972); and
Delaware v. New York, 507 U.S.490 (1993)).
b) The administrator's goal in every examination is
to be predictable, fair and consistent while determining the historical
compliance of the person being examined, and to encourage and facilitate that
person's ongoing and future compliance with the Act.
| TITLE 74: PUBLIC FINANCE
CHAPTER V: TREASURER
PART 760
REVISED UNIFORM UNCLAIMED PROPERTY ACT
SECTION 760.720 CONTRACT AUDITORS
Section 760.720 Contract Auditors
a) The administrator may contract with a person
to conduct unclaimed property examinations to determine compliance with the
Act. Such a contract shall be awarded pursuant to a request for proposals
issued in compliance with the Office of the Treasurer Procurement Rules (44
Ill. Adm. Code 1400). [765 ILCS 1026/15-1009(a)]
b) A contract to conduct an examination may
provide for compensation of the person based on a fixed fee, hourly fee, or
contingent fee. [765 ILCS 1026/15-1009(b)(1)]
1) 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. [765 ILCS 1026/15-1009(b)(2)]
2) As authorized in the State Officers and
Employees Money Disposition Act [30 ILCS 230/2(a)(3.5)], the
administrator may permit the deduction of fees from property recovered during
an unclaimed property examination prior to depositing funds received
under the Act into the Unclaimed Property Trust Fund. [765 ILCS
1026/15-1009(b)(3)]
c) A contract with a person to conduct an
examination is a public record under the Freedom of Information Act.
[765 ILCS 1026/15-1009(c)]
d) An auditor shall collectively possess sufficient
training and experience to adequately perform unclaimed property examinations.
e) An auditor shall not engage in any unclaimed
property examination to determine compliance with the Act without written
authorization from the administrator.
f) An auditor shall report in writing to the
administrator at least monthly on the status of all unclaimed property
examinations the auditor has been authorized to perform by the administrator.
g) An
auditor shall have data security practices, policies, and procedures to prevent
any security breach or loss as well as protect
user privacy, computer security, and network security. An auditor shall also
have a cyber incident response plan in the event of a security breach or loss
as well as cybersecurity training programs on new user awareness, annual user
awareness, and post-incident refresher training.
(Source:
Amended at 46 Ill. Reg. 16898, effective September 26, 2022)
| TITLE 74: PUBLIC FINANCE
CHAPTER V: TREASURER
PART 760
REVISED UNIFORM UNCLAIMED PROPERTY ACT
SECTION 760.730 HOLDER ADVOCATES
Section 760.730 Holder Advocates
a) A person subject to examination may retain
third-party advocates to assist them in the examination process.
b) The retention of an advocate is no basis to
delay the commencement of the examination and the administrator will not delay
the examination so that the advocate may conduct a review or its own audit of
the books and records of the person subject to examination in advance of the
administrator's examination.
c) The administrator will, to the extent
practicable, cooperate with the person subject to examination and its advocate
and keep both apprised of records requests, interviews, and the progress of the
audit in general.
| TITLE 74: PUBLIC FINANCE
CHAPTER V: TREASURER
PART 760
REVISED UNIFORM UNCLAIMED PROPERTY ACT
SECTION 760.740 NOTICE OF EXAMINATION
Section 760.740 Notice of Examination
a) All unclaimed property examinations begin with
an official notice of examination letter.
b) A
notice letter shall notify the person subject to examination that:
1) its books and records (including those belonging
to subsidiary and related entities or maintained by a third party that has
contracted with the person) are subject to examination;
2) identify the assigned auditor; and
3) include auditor contact information.
c) A notice letter may either be sent directly to
the person subject to examination by the administrator or to the auditor
assigned to the examination for delivery to the person subject to examination.
d) Failure to strictly adhere to the requirements
of this Section does not invalidate an examination and may be cured by the
administrator prior to the conclusion of the examination so long as all other
requirements regarding notification and the conduct of an examination were met.
(Source: Amended at 48 Ill. Reg. 14162, effective September
10, 2024)
| TITLE 74: PUBLIC FINANCE
CHAPTER V: TREASURER
PART 760
REVISED UNIFORM UNCLAIMED PROPERTY ACT
SECTION 760.750 ENTRANCE CONFERENCE
Section 760.750 Entrance Conference
a) Once an examination is assigned and written
notice of an examination is provided to the person subject to examination, an
entrance conference will be scheduled with the auditor and representatives of
the person subject to examination. A representative of the administrator may,
but is not required, to participate in an entrance conference. If the person
subject to examination refuses to schedule an entrance conference with the
auditor, the auditor shall inform the administrator of that refusal.
b) During the entrance conference, the auditor
shall, to the extent practicable:
1) identify of the types of property that will be
subject to the examination and the time period covered by the examination;
2) discuss an examination work plan, a tentative
schedule, and any potential scoping issues;
3) provide contact information for both the auditor
and the administrator;
4) if a draft has not been presented prior to the entrance
conference, provide the person subject to examination a draft confidentiality
agreement;
5) notify the person subject to examination of his
or her ability to request an informal conference with the administrator
pursuant to Section 15-1008 of the Act;
6) advise the person subject to examination that
the administrator and not the auditor makes determinations concerning that
person's liability under the Act and that interpretations of the Act are made
by the administrator;
7) request records and materials necessary to
proceed with the next steps of the examination;
8) explain the requirement to provide a due
diligence notice to the apparent owner of property presumed abandoned; and
9) explain that, unless otherwise agreed to in
writing by the administrator, the person subject to examination shall remit to
the auditor any unclaimed property identified during the examination that is
owed to the State of Illinois.
| TITLE 74: PUBLIC FINANCE
CHAPTER V: TREASURER
PART 760
REVISED UNIFORM UNCLAIMED PROPERTY ACT
SECTION 760.760 EXAMINATION GUIDELINES
Section 760.760 Examination Guidelines
a) The auditor and the person subject to
examination shall act in good faith to conduct the examination under the terms
and within the time frame established in the entrance conference.
b) During the examination, the auditor may make
subsequent requests, to the person subject to examination, for additional books
and records required to complete the examination.
1) The auditor shall submit record requests to the
person subject to examination in writing or, if the request is made verbally,
shall follow up with written documentation of the request.
2) Record requests shall have reasonable deadlines
in order to move the examination forward and avoid unnecessary delays.
3) The auditor shall provide a reasonable timeframe
for the person subject to examination to respond to the request based on the
type and extent of the information requested and other relevant facts and
circumstances.
4) The auditor shall provide confirmation of
receipt with reasonable projected response times to submissions received from
the person subject to examination.
5) The person
subject to examination cannot unilaterally require the auditor to perform an
onsite examination. Onsite examinations may be allowed if mutually agreed upon
by the person subject to examination, the auditor, and the administrator.
c) The examination shall not be limited to a review
of work papers, compilations, or record summaries prepared by the person
subject to examination or an advocate, but shall include access to the original
books and records deemed by the administrator to be necessary to ascertain
compliance with the Act.
d) The auditor shall properly document the
examination and make the working papers gathered during the unclaimed property
examination available for review by the administrator. The working papers shall
include planning information and all related calculations, statistical
analyses, and summarizations.
(Source: Amended at 46 Ill. Reg. 16898, effective September
26, 2022)
| TITLE 74: PUBLIC FINANCE
CHAPTER V: TREASURER
PART 760
REVISED UNIFORM UNCLAIMED PROPERTY ACT
SECTION 760.770 CONFIDENTIALITY AGREEMENT
Section 760.770 Confidentiality Agreement
a) A person subject to examination may require, as
a condition of disclosure of the records of the person to be examined, that the
administrator, if the administrator is performing the examination, or
the administrator's agent execute and deliver to the person to be examined a
confidentiality agreement that:
1) is in a form that is reasonably satisfactory
to the administrator; and
2) requires the person having access to the
records to comply with the provisions of Article 14 of the Act
(Confidentiality and Security of Information) applicable to the person.
[765 ILCS 1026/15-1402]
b) If the person subject to examination and the
auditor are unable to enter into a confidentiality agreement within 90 calendar
days from the date an agreement reasonably satisfactory to the administrator
was first presented to the person subject to the examination by the auditor or
the administrator, the examination may commence without a confidentiality
agreement in place and the parties shall rely on the confidentiality provisions
of Article 14 of the Act.
| TITLE 74: PUBLIC FINANCE
CHAPTER V: TREASURER
PART 760
REVISED UNIFORM UNCLAIMED PROPERTY ACT
SECTION 760.780 EVIDENCE OF UNPAID DEBT OR UNDISCHARGED OBLIGATION
Section 760.780 Evidence of Unpaid Debt or Undischarged
Obligation
a) A record of a person subject to
examination showing an unpaid debt or undischarged obligation is prima facie
evidence of the debt or obligation. [765 ILCS 1026/15-1005(a)]
b) A person subject to examination may establish
by a preponderance of the evidence that there is no unpaid debt or undischarged
obligation for a debt or obligation or that the debt or obligation was not, or
no longer is, a fixed and certain obligation of the person subject to
examination. [765 ILCS 1026/15-1005(b)] Thus, the prima facie evidence may be
rebutted by the person subject to examination.
c) A person subject to examination may overcome
prima facie evidence 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;
A) for purposes of this provision "valid
business reason" does not include a policy of voiding outstanding checks,
drafts, or similar instruments after a specified number of days;
B) a policy of automatically voiding would be
tantamount to a private escheat law in violation of longstanding public policy
in Illinois (see People ex rel. Callahan v. Marshall Field & Co., 83 Ill.
App. 3d 811, 818, 404 N.E.2d 368, 374 (1980));
C) this defense merely indicates that when a check,
draft, or similar instrument is voided quickly, for a valid business reason
(i.e., not as a private escheat law), and the reason is indicated in a
contemporaneous record, there is sufficient evidence to overcome the prima
facie evidence of the existence of a debt or obligation; or
9) issued but not delivered to the third-party
payee for a sufficient reason recorded within a reasonable time after issuance.
[765 ILCS 1026/15-1005(c)]
d) In asserting a defense under this Section,
and subject to the records retention requirements of the Act, a putative
holder may present evidence of a course of dealing between the putative holder
and the apparent owner. [765 ILCS 1026/15-1005(d)]
| TITLE 74: PUBLIC FINANCE
CHAPTER V: TREASURER
PART 760
REVISED UNIFORM UNCLAIMED PROPERTY ACT
SECTION 760.790 ESTIMATION
Section 760.790 Estimation
a) If a person subject to examination does not
retain the records required by the Act, 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.
b) A payment made based on estimation under this
Section is a penalty for failure to maintain the records required by the Act and
does not relieve a person from an obligation to report and deliver property to
a state in which the holder is domiciled. [765 ILCS 1026/15-1006]
c) Unless agreed to by a person subject to
examination, estimation should be used only when there has been a violation of
Section 15-404 of the Act. The ability of the administrator to use estimation
is intended as a deterrent to the intentional or negligent destruction of
records that would be used in an unclaimed property examination to identify
unclaimed property.
d) An
auditor may not use estimation in an examination unless:
1) the person subject to examination agrees in
writing to the use of estimation as part of an audit resolution agreement; or
2) the administrator approves in writing the use of
estimation in the examination.
e) Estimation by the administrator should
reasonably approximate the amount of unclaimed property that should have been
reported to Illinois if all reports had been filed and records had been
maintained as required by the Act. Thus, estimation should attempt to determine
the amount of unclaimed property that should have been reported to Illinois
under Sections 15-301, 15-302, and 15-303 (addressed property) and 15-304 (unaddressed
property when the holder is domiciled in Illinois).
f) Prior to approving the use of estimation in an
examination, the administrator shall:
1) notify the person subject to examination, in
writing, that the administrator is considering the use of estimation because of
a failure to maintain the records required by Section 15-404 of the Act;
2) after considering any evidence submitted by the auditor
and the person subject to examination, make a written determination that the
person subject to examination has failed to maintain the records required by
Section 15-404 of the Act;
3) provide an opportunity for the person subject to
examination to submit written objections, including, but not limited to:
A) submitting evidence that the person subject to examination
has maintained sufficient records to perform the examination for some or all of
the years during the time period covered by the examination; or
B) proposing an estimation methodology;
4) notify in writing the person subject to
examination of:
A) the
estimation methodology to be used; and
B) for which years during the time period covered by
the examination estimation will be used.
| TITLE 74: PUBLIC FINANCE
CHAPTER V: TREASURER
PART 760
REVISED UNIFORM UNCLAIMED PROPERTY ACT
SECTION 760.800 MULTISTATE EXAMINATIONS
Section 760.800 Multistate Examinations
a) The administrator may agree to participate in an
examination of a person for compliance with unclaimed property laws of multiple
states, including the Act, when a single auditor performs an examination for
more than one state.
b) Multistate examinations are intended to be more
efficient and effective for both the person being examined and the states that
have authorized the examination. Having a single auditor conducting an
unclaimed property examination reduces the occurrence of a person being
simultaneously subject to multiple unclaimed property examinations by multiple
auditors representing multiple states.
c) Because different states participating in a
multistate examination will have different rules for examinations, there may be
conflicts between the statutory or regulatory requirements for how the auditor
should conduct the examination. When practicable, the auditor should comply
with the requirements of this Section when conducting a multistate examination.
However, if there is a conflict between the requirements of this Section and
the requirements of one or more other states, the auditor may vary from the
requirements of this Section so long as the auditor:
1) follows any requirements imposed by the Act,
including but not limited to confidentiality requirements;
2) uses the Act with regards to any property for
which the State of Illinois has the superior claim pursuant to the federal
common law established in the U.S. Supreme Court cases listed in Appendix A(g);
and
3) complies with the goal to be predictable, fair
and consistent while determining the historical compliance of the person being
examined, and to encourage and facilitate that person's ongoing and future
compliance with the Act.
d) A person subject to examination retains the ability
to request an informal conference with the administrator pursuant to Section
15-1008 of the Act.
| TITLE 74: PUBLIC FINANCE
CHAPTER V: TREASURER
PART 760
REVISED UNIFORM UNCLAIMED PROPERTY ACT
SECTION 760.810 BANKRUPTCY
Section 760.810 Bankruptcy
If, at
any time before or during the course of an examination, the person subject to
examination files for bankruptcy, that person shall give notice of the filing
to the auditor. The auditor shall, within 7 calendar days after receiving
notice or the discovery of the event, notify the administrator of the
bankruptcy filing. If the administrator so elects, the auditor shall assist the
administrator to ensure that a proper proof of claim is timely filed in the
bankruptcy action.
| TITLE 74: PUBLIC FINANCE
CHAPTER V: TREASURER
PART 760
REVISED UNIFORM UNCLAIMED PROPERTY ACT
SECTION 760.820 AUDIT RESOLUTION AGREEMENTS
Section 760.820 Audit Resolution Agreements
a) Pursuant to the administrator's authority to
conduct an examination, the administrator possesses the authority to resolve an
examination via negotiation and settlement with the person subject to
examination. This provides flexibility to both the person subject to
examination and the administrator to resolve issues that could require formal
appeal or litigation. These settlements are often referred to as audit
resolution agreements.
b) The administrator may not agree in a settlement
to provide indemnification beyond that provided in Section 15-604 of the Act.
c) Pursuant to Section 15-1206(1) of the Act, the
administrator may agree to reduce or waive interest and penalties as part of a
settlement.
d) A mutually-agreed upon settlement resolves a
specific examination and does not create any precedent on specific legal
issues.
| TITLE 74: PUBLIC FINANCE
CHAPTER V: TREASURER
PART 760
REVISED UNIFORM UNCLAIMED PROPERTY ACT
SECTION 760.830 REPORT TO HOLDER
Section 760.830 Report to Holder
At the conclusion of an
examination, unless waived in writing by the person being examined, the
administrator shall provide to the person whose records were examined a report
that specifies:
a) the
work performed;
b) the
property types reviewed;
c) the methodology of any estimation technique,
extrapolation, or statistical sampling used in conducting the examination;
d) each
calculation showing the value of property determined to be due; and
e) the
findings of the person conducting the examination. [765 ILCS 1026/15-1007]
| TITLE 74: PUBLIC FINANCE
CHAPTER V: TREASURER
PART 760
REVISED UNIFORM UNCLAIMED PROPERTY ACT
SECTION 760.840 VOLUNTARY DISCLOSURE AGREEMENT PROGRAM
Section 760.840 Voluntary Disclosure Agreement Program
a) Pursuant to the authority of the administrator
under Section 15-1206 of the Act to waive, in whole or in part, interest and
penalties, the administrator may establish a voluntary disclosure agreement
(VDA) program for persons who are not in compliance with the Act.
b) Under a VDA program, the administrator will
agree to waive, in whole or in part, interest and penalties for a person who
voluntarily reports and remits to the administrator property that should have
been previously reported, paid or delivered to the administrator pursuant to
the Act. The VDA program includes, but is not limited to, property that is
reportable pursuant to the transition provisions of Section 15-1503 of the Act.
Thus, property reportable under the Act or the previous Uniform Disposition of
Unclaimed Property Act may be eligible to be voluntarily reported and remitted
under the VDA program.
c) A person who has been sent an official notice of
examination letter may not participate in the VDA program.
d) Participation in the administrator's VDA program
does not waive or otherwise limit the administrator's authority to order and
conduct an unclaimed property examination pursuant to Section 15-1002 of the Act.
| TITLE 74: PUBLIC FINANCE
CHAPTER V: TREASURER
PART 760
REVISED UNIFORM UNCLAIMED PROPERTY ACT
SECTION 760.850 EXAMINATION OF REGULATED FINANCIAL ORGANIZATIONS
Section 760.850 Examination of Regulated Financial
Organizations
a) Purpose of Section
15-1002.1 of the Act
1) Section
15-1002.1 of the Act establishes a system in which the Illinois Department of
Financial and Professional Regulation (DFPR) will include unclaimed property
compliance as part of the regular audits or examinations performed on State-regulated
financial organizations. Because DFPR will perform regular examinations of
these entities, the administrator will not perform unclaimed property
examinations of these State-regulated financial organizations pursuant to
Section 15-1002 of the Act.
2) State-regulated
financial organizations whose operations are either entirely or almost entirely
within the State of Illinois shall be regularly examined by DFPR for compliance
with unclaimed property laws. This should both ensure compliance with the Act
and generally subject these State-regulated financial organizations to only one
set of unclaimed property examinations.
3) Section
15-1002.1 of the Act is not, however, intended to restrict the ability of the
administrator to examine national banks, national credit unions, and other
financial organizations that operate in multiple states. For financial
organizations that operate in multiple states or are created pursuant to a federal
law, the administrator should either participate in multi-state examinations to
determine compliance with the Act and similar unclaimed property laws of other
states or otherwise perform an unclaimed property examination pursuant to
Section 15-1002 of the Act.
b) Entities
for which DFPR is the Primary Prudential Regulator. The administrator may
perform an unclaimed property examination of a financial organization for which
DFPR is the primary prudential regulator when either:
1) the
administrator consults with DFPR and DFPR has not examined the State-regulated
financial organization for compliance with the Act within the past 5 years; or
2) DFPR waives,
in writing, the restrictions of Section 15-1002.1 and permits the administrator
to examine a financial organization or group of financial organizations for
compliance with the Act.
c) Federally
Chartered Financial Organizations
1) The
administrator may, at reasonable times and upon reasonable notice:
A) 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 the Act;
B) issue
an administrative subpoena requiring the financial organization or an agent of
the financial organization to make records available for examination; and
C) bring
an action seeking judicial enforcement of the subpoena. [765 ILCS
1026/15-1002.1(c)]
2) Reasons
to believe under (c)(1)(A) of this Section include, but are not limited to, the
following:
A) A
holder has submitted negative reports to the administrator for two successive
calendar years;
B) A
holder has not submitted a report to the administrator for two successive
calendar years;
C) A
holder does any of the following:
i) adjusts
its asset statements by writing off property that is presumed unclaimed
property under the Act;
ii) fails
to follow generally-accepted accounting principles or the Act with respect to
unidentified remittances or the establishment of unclaimed property liability
accounts;
iii) fails
to follow generally-accepted accounting principles or the Act with respect to
reporting unidentified credits;
iv) fails
to retain records 10 years beyond the period of abandonment to determine the
reporting of property which could be presumed abandoned under the Act; or
v) the
holder's records precludes the holder from reporting property which could be
presumed abandoned under the Act.
D) The administrator
is notified in writing by another governmental agency that a holder is not in
compliance with the Act;
E) The
total unclaimed property remitted by a holder is below the average remittance
for other holders in the same industry and that have assets of similar size to
the holder;
F) A
holder does not report all types of unclaimed property that they may be holding
as indicated by, but not limited to, the following:
i) a
previous examination of the holder; or
ii) a
comparison with asset types reported by other holders in the same industry and
that have assets of similar size to the holder.
G) A
holder is discovered as a subsidiary or affiliate of another holder which has
been or is being examined;
H) A
holder is discovered as a principal or holding company of another holder which
has been or is being examined;
I) An
unclaimed property examination of the records of the holder has not been
performed for 5 or more calendar years;
J) Changes
in a holder's business practices including, but not limited to, changes in
financial status, technological advances, corporate structure, or change in
ownership; or
K) The
administrator has issued a written notice of deficiency to a holder.
3) This
subsection (c) is intended to comply with federal law applicable to federally
chartered financial organizations which provides that "lawfully authorized
State auditors and examiners may, at reasonable times and upon reasonable
notice to a bank, review its records solely to ensure compliance with
applicable State unclaimed property or escheat laws upon reasonable cause to
believe that the bank has failed to comply with such laws." [Section 412
of the Garn-St. Germain Depository Institutions Act of 1982, Public Law 970-320
(Oct. 15, 1982)]
d) Primary
Prudential Regulator. For purposes of the Act, DFPR is the primary prudential
regulator for entities:
1) for
which it performs regular regulatory examinations that include unclaimed
property compliance at least once every 5 years;
2) that
operate primarily or exclusively in Illinois; and
3) that are
created pursuant to one of the following Acts: Illinois Banking Act [205 ILCS
5], Savings Bank Act [205 ILCS 205], Pawnbroker Regulation Act [205 ILCS 510],
Corporate Fiduciary Act [205 ILCS 620], Residential Mortgage License Act of
1987 [205 ILCS 635], Illinois Credit Union Act [205 ILCS 305], Currency
Exchange Act [205 ILCS 405], Transmitters of Money Act [205 ILCS 657], Sales
Finance Agency Act [205 ILCS 660], Debt Management Service Act [205 ILCS 665],
Consumer Installment Loan Act [205 ILCS 670], Title Insurance Act [215 ILCS
155], Debt Settlement Consumer Protection Act [225 ILCS 429], Safety Deposit
License Act [240 ILCS 5], Payday Loan Reform Act [815 ILCS 122], Foreign
Banking Office Act [205 ILCS 645], and Foreign Bank Representative Office Act
[205 ILCS 650].
e) Related Entities Not Covered
by Section 15-1002.1
1) Nothing
in this Section is intended to restrict the ability of the administrator to
perform an unclaimed property examination pursuant to Section 15-1002 of the
Act when DFPR is not the primary prudential regulator. Thus, if a financial
organization has DFPR as a primary prudential regulator under this Section, but
a separate entity related to that financial organization does not have DFPR as
a primary prudential regulator, the administrator may perform an unclaimed
property examination of that entity pursuant to Section 15-1002 of the Act even
if the administrator would defer to DFPR's unclaimed property examination of
the financial organization pursuant to Section 15-1002.1.
2) EXAMPLE:
If an investment company is related to a state bank chartered by DFPR, the
administrator would be able to perform an unclaimed property examination of the
investment company even if the administrator would defer to DFPR's examination
of the state-chartered bank.
f) Disputes
Over Application. If there is a dispute over whether an entity is covered by
Section 15-1002.1 of the Act, the administrator and DFPR should consult to
resolve the dispute using the framework established by Section 15-1002.1 of the
Act and subsection (a) of this Section.
g) Training.
When requested by DFPR, the administrator shall provide or otherwise make
available appropriate training to employees or representatives of DFPR
regarding the examination for compliance with the Act. DFPR shall be
responsible for all expenses incurred for the training of DFPR employees or
representatives.
(Source:
Amended at 46 Ill. Reg. 16898, effective September 26, 2022)
| TITLE 74: PUBLIC FINANCE
CHAPTER V: TREASURER
PART 760
REVISED UNIFORM UNCLAIMED PROPERTY ACT
SECTION 760.860 HOLDER SELF-EXAMINATION
Section 760.860 Holder Self-Examination
a) The
administrator may direct a person to participate in a self-audit or holder
self-examination. A holder self-examination is intended to provide a
cost-effective means of determining the historical
compliance of the person being examined, and to encourage and facilitate that
person's ongoing and future compliance with the Act.
b) A
holder self-examination is a form of verified report pursuant to Section
15-1001 of the Act and not an examination pursuant to either Sections 15-1002
or 15-1002.1 of the Act. To assist in a holder self-examination the
administrator may retain a contract auditor as provided in Section 760.720 and
the holder may retain a holder advocate as provided in Section 760.730.
c) Under
a holder self-examination a person will be sent an official written notice by
the administrator. If the administrator retains an audit firm to facilitate or
review the results of a holder self-examination, the audit firm will be
identified in the official notice.
(Source: Added at 48 Ill. Reg. 14162,
effective September 10, 2024)
SUBPART G: ENFORCEMENT
| TITLE 74: PUBLIC FINANCE
CHAPTER V: TREASURER
PART 760
REVISED UNIFORM UNCLAIMED PROPERTY ACT
SECTION 760.900 PURPOSE OF ENFORCEMENT
Section 760.900 Purpose of Enforcement
a) State unclaimed property laws are based on a
theory of truthful self-reporting by the holders of unclaimed property.
Enforcement actions by the administrator are intended to both bring holders
subject to enforcement actions into compliance with the Act and to encourage
voluntary compliance by other holders. The expectation is that a holder who has
been the subject of an enforcement action by the administrator will voluntarily
comply with the Act in the future. And, further, a program of enforcement by
the administrator will encourage holders to voluntarily comply with the Act in
order to avoid being subject to enforcement actions.
b) Unclaimed property examinations are an essential
aspect of unclaimed property compliance. However, if a holder is reporting
correctly under the Act, there should be no determination of liability by the
administrator. (For rules concerning unclaimed property examinations, see
Subpart F.)
| TITLE 74: PUBLIC FINANCE
CHAPTER V: TREASURER
PART 760
REVISED UNIFORM UNCLAIMED PROPERTY ACT
SECTION 760.910 VERIFIED REPORT OF PROPERTY
Section 760.910 Verified Report of Property
a) If a person does not file a report required
by Section 15-401 of the Act 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.
b) The
verified report must:
1) state whether the person is holding property
reportable under the Act;
2) describe property not previously reported or
about which the administrator has inquired;
3) specifically identify property about which
there is a dispute whether it is reportable under the Act; and
4) state the amount or value of the property.
[765 ILCS 1026/15-1001]
c) A verified report must otherwise comply with the
requirements of Section 15-402 of the Act and Section 760.410 of this Part.
| TITLE 74: PUBLIC FINANCE
CHAPTER V: TREASURER
PART 760
REVISED UNIFORM UNCLAIMED PROPERTY ACT
SECTION 760.920 ADMINISTRATIVE SUBPOENAS
Section 760.920 Administrative Subpoenas
a) The administrator may, at reasonable times
and on reasonable notice, issue an administrative subpoena requiring the
person or agent of that person to make records available for examination
pursuant to the Act. [765 ILCS 1026/15-1002(2)]
b) Prior to issuance, administrative subpoenas
shall be reviewed and approved by the administrator's General Counsel or by
another employee of the administrator who is an attorney licensed to practice
law in Illinois designated by the General Counsel.
c) The administrator may request that the Attorney
General bring an action seeking judicial enforcement of a subpoena issued
pursuant to the Act on behalf of the administrator.
d) If a person to whom the administrator issues an
administrative subpoena brings an action seeking a judicial order to quash,
limit, or otherwise prevent enforcement of the administrative subpoena, then
the administrator shall request that the Attorney General represent the
administrator in that action.
e) The administrator may request that the Attorney
General appoint a Special Assistant Attorney General to represent the
administrator in any action to enforce or defend an administrative subpoena
issued pursuant to the Act.
| TITLE 74: PUBLIC FINANCE
CHAPTER V: TREASURER
PART 760
REVISED UNIFORM UNCLAIMED PROPERTY ACT
SECTION 760.930 DETERMINATION OF LIABILITY
Section 760.930 Determination of Liability
a) If the administrator determines from an
examination conducted under Section 15-1002 of the Act that a
putative holder failed or refused to pay or deliver to the administrator
property that is reportable under the 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. [765 ILCS
1026/15-1011]
b) The administrator may give notice of any
interest and civil penalties at the same time that notice of a determination of
liability is given.
| TITLE 74: PUBLIC FINANCE
CHAPTER V: TREASURER
PART 760
REVISED UNIFORM UNCLAIMED PROPERTY ACT
SECTION 760.940 INTEREST AND PENALTIES
Section 760.940 Interest and Penalties
a) Interest on Unreported Property. A holder
that fails to report, pay or deliver property within the time prescribed by the
Act shall pay to the administrator interest at a rate of 1% per month on the property
or value of the property from the date the property should have been reported,
paid or delivered to the administrator until the date reported, paid or
delivered. [765 ILCS 1026/15-1204(a)] Thus, unless waived by the
administrator pursuant to Section 15-1206, payment of interest on unreported
reportable property is mandatory under the Act.
b) Civil Penalty for Failure to Act in Timely Manner.
The administrator may require a holder that fails to report, pay, or deliver
property within the time prescribed by the Act to pay to the administrator, in
addition to interest, a civil penalty of $200 for each day the duty is not
performed, up to a cumulative maximum amount of $5,000. [765 ILCS
1026/15-1204(b)] Thus, unless the administrator determines that the holder
acted in good faith and without negligence pursuant to Section 15-1206(b) of
the Act, payment of a penalty for failure to act in a timely manner is a
discretionary enforcement action by the administrator.
c) Civil Penalty for Willful Failure to Perform a Duty
Under the Act. If a holder willfully fails to perform a duty imposed on the
holder under the Act, the administrator may require the holder to pay the
administrator, in addition to interest, a civil penalty of $1,000 for each day
the obligation is evaded or the duty is not performed, up to a cumulative
maximum amount of $25,000, plus 25% of the amount or value of property that
should have been but was not reported, paid or delivered as a result of the
evasion or failure to perform. [765 ILCS 1026/15-1205(a)]
d) Civil Penalty for Filing a Fraudulent Report. If
a holder makes a fraudulent report under the Act, the administrator may
require the holder to pay to the administrator, in addition to interest, a civil
penalty of $1,000 for each day from the date the report was made until
corrected, up to a cumulative maximum of $25,000, plus 25% of the amount or value
of any property that should have been reported but was not included in the
report or was underreported. [765 ILCS 1026/15-1205(b)]
| TITLE 74: PUBLIC FINANCE
CHAPTER V: TREASURER
PART 760
REVISED UNIFORM UNCLAIMED PROPERTY ACT
SECTION 760.950 WAIVER OF INTEREST AND PENALTIES
Section 760.950 Waiver of Interest and Penalties
a) The
administrator may waive, in whole or in part, interest under Section 15-1204(a)
of the Act and penalties under Section 15-1204(b) [765 ILCS
1026/15-1206(1)].
1) This
authority does not provide for waiver of penalties imposed for willful failure
or filing a fraudulent report. However, the imposition of penalties under
Section 15-1205 is not mandatory.
2) The
administrator may agree to reduce or waive interest and penalties as part of an
audit resolution agreement (see Section 760.820).
3) Unless
the holder willfully failed to report, pay or deliver property within the time
prescribed by the Act, the administrator will waive the payment of interest of
less than 3 months.
b) The
administrator shall waive a penalty under Section 15-1204(b) of the Act if the
administrator determines that the holder acted in good faith and without
negligence. [765 ILCS 1026/15-1206(2)]
1) Good
faith will only apply to situations in which the holder has attempted to comply
with the Act.
2) If
the holder has failed to file a report, the holder did not act in good faith
and without negligence as the holder has not attempted to comply with the Act.
c) A
holder who fails to report, pay or deliver property within the time prescribed
by the Act shall not be required to pay interest, or be subject to
penalties, if the failure to report, pay or deliver the property was due to the
lack of knowledge of the death that established the period of abandonment under
the Act. [765 ILCS 1026/15-1204(c)]
| TITLE 74: PUBLIC FINANCE
CHAPTER V: TREASURER
PART 760
REVISED UNIFORM UNCLAIMED PROPERTY ACT
SECTION 760.960 JUDICIAL ENFORCEMENT
Section 760.960 Judicial Enforcement
a) The administrator may commence an
action in the Circuit Court of Sangamon County or Cook County, federal court,
or an appropriate court of another state to enforce a final determination
of liability and secure payment or delivery of past due, unpaid, or
undelivered property.
b) An action to enforce a final
determination of liability must be brought not later than 5 years after the
determination becomes final. [765 ILCS 1026/15-1201(a)]
c) If no court in Illinois has
jurisdiction over the defendant, the administrator may commence an action in
any court having jurisdiction over the defendant. [765 ILCS
1026/15-1201(b)]
d) The administrator may request that the Attorney
General appoint a Special Assistant Attorney General to represent the
administrator in any action to enforce a final determination of liability.
| TITLE 74: PUBLIC FINANCE
CHAPTER V: TREASURER
PART 760
REVISED UNIFORM UNCLAIMED PROPERTY ACT
SECTION 760.970 ACTION INVOLVING ANOTHER STATE OR FOREIGN COUNTRY
Section 760.970 Action Involving Another State or
Foreign Country
a) The administrator may join another state or
foreign country to examine and seek enforcement of the Act against a putative
holder. [765 ILCS 1026/15-1203(a)]
b) On request of another state or foreign
country, the Attorney General may commence an action on behalf of the other
state or country to enforce, in Illinois, the law of the other state or country
against a putative holder subject to a claim by the other state or country. [765
ILCS 1026/15-1203(b)]
c) The administrator may request the official
authorized to enforce the unclaimed property law of another state or foreign
country to commence an action to recover property in the other state or country
on behalf of the administrator. Illinois may pay the costs, including
reasonable attorney's fees and expenses, incurred by the other state or foreign
country in an action under this subsection. [765 ILCS 1026/15-1203(c)]
d) The administrator may pursue an action on
behalf of Illinois to recover property subject to the Act but delivered to the
custody of another state if the administrator believes the property is subject
to the custody of the administrator. [765 ILCS 1026/15-1203(d)]
e) At the request of the administrator, the
Attorney General may commence an action to recover property on behalf of the
administrator in Illinois, another state, or a foreign country. With the
written consent of the Attorney General, the administrator may retain an
attorney in Illinois, another state, or a foreign country as a special
assistant attorney general to recover property on behalf of the
administrator in Illinois, another state, or a foreign country and may agree to
pay attorney's fees based in whole or in part on a fixed fee, hourly fee, or
percentage of the amounts or value of property recovered in the action. [765
ILCS 1026/15-1203(e)]
f) In all actions commenced pursuant to Section
15-1203 of the Act, unless otherwise given permission in writing by the
Attorney General, the administrator shall be represented by the Attorney
General or a special assistant attorney general appointed by the Attorney
General.
g) Expenses incurred by Illinois in an action
under Section 15-1203 of the Act may be paid from property received
under the Act or the net proceeds of the property. Expenses paid to recover
property may not be deducted from the amount that is subject to a claim under
the Act by the owner. [765 ILCS 1026/15-1203(f)]
| TITLE 74: PUBLIC FINANCE
CHAPTER V: TREASURER
PART 760
REVISED UNIFORM UNCLAIMED PROPERTY ACT
SECTION 760.980 PERIODS OF LIMITATION AND REPOSE
Section 760.980 Periods of Limitation and Repose
a) An action or proceeding may not be maintained
by the administrator to enforce the Act in regard to the reporting, delivery or
payment of property more than 10 years after the holder specifically identified
the property in a report filed with the administrator or gave express notice to
the administrator of a dispute regarding the property. [765 ILCS
1026/15-610(b)]
b) The
10-year period of limitation is tolled:
1) if the holder did not specifically identify the
property in a report filed with the administrator or provide other express
notice to the administrator;
2) by the filing of a report that is fraudulent [765
ILCS 1026/15-610(b)]; or
3) if the administrator demands that the holder
file a verified report pursuant to Section 15-1001 of the Act or issues an
official notice of examination letter to the holder pursuant to Section 15-1002
of the Act.
c) Notwithstanding the tolling of the 10-year
period of limitation because of a failure of a holder to specifically identify
property in a report filed with the administrator or provide other express
notice to the administrator, the administrator will not maintain an action in
regard to the reporting, delivery or payment of property more than 10 years
after that property should have been reported and remitted to the administrator
if all of the following apply:
1) the holder has filed reports with the
administrator for the past 10 years;
2) the holder agrees in writing to file all reports
required by the Act, including providing express notice to the administrator of
any future disputes concerning the reporting of property;
3) the total amount of property, excluding any
interest or penalties that the administrator could impose under the Act, is
less than $2,500 or is otherwise de minimis as reasonably determined by the
administrator; and
4) the administrator determines that the holder
acted in good faith and without negligence. [765 ILCS 1026/15-1206(2)]
d) If the administrator issues a demand that the
holder file a verified report pursuant to Section 15-1001 of the Act or issues
an official notice of examination letter to the holder pursuant to Section
15-1002 of the Act within the time permitted by the Act, then the holder has
been put on notice that the administrator is commencing a proceeding within the
meaning of Section 15-610 of the Act. The commencement of a proceeding within
the time period permitted by the Act tolls the 10-year period of limitation for
the commencement of an action.
AGENCY
NOTE: The language of Section 15-610(b) of the Act comes from Section 19(b) of
the 1995 Uniform Unclaimed Property Act promulgated by the Uniform Law
Commission (www.uniformlaws.org). The official comments to the 1995 Uniform
Unclaimed Property Act note that this provision parallels the Internal Revenue
Code (26 U.S.C. 6501(c)). The official comments further note that as "the
Unclaimed Property Act is based on a theory of truthful self-reporting, a
holder which conceals property, willfully or otherwise, cannot expect the
protection of the stated limitations period."
(Source:
Amended at 48 Ill. Reg. 14162, effective September 10, 2024)
SUBPART H: CONFIDENTIALITY
| TITLE 74: PUBLIC FINANCE
CHAPTER V: TREASURER
PART 760
REVISED UNIFORM UNCLAIMED PROPERTY ACT
SECTION 760.1000 CONFIDENTIALITY
Section 760.1000 Confidentiality
a) Information provided in
reports filed pursuant to the Act and the database required by Section
15-503 of the Act are specifically exempt from disclosure under
the Freedom of Information Act. [765 ILCS 1026/15-1401(b)] The Freedom of Information Officer for the administrator
may deny requests for records containing such information as information
specifically prohibited from disclosure by federal or State law or rules and
regulations implementing federal or State law. [5 ILCS 140/7(1)(a)]
b) Under
the Act "private information" as defined in the Freedom of
Information Act and "personal information" as defined in the Personal
Information Protection Act continues to be confidential when disclosed or
delivered under the Act to the administrator or administrator's agent. [765 ILCS 1026/15-1401(a)]
1) Private Information. The
Freedom of Information Officer for the administrator may deny requests for
records containing private information as information
specifically prohibited from disclosure by federal or State law or rules and
regulations implementing federal or State law; or unless disclosure is specifically required by a different State
or federal law or a court order. [5 ILCS 140/7(1)(a) and (b)]
2) Personal Information. Personal
information as defined in the Personal Information Protection Act is either
private information or personal information the disclosure of which would
constitute a clearly unwarranted invasion of personal privacy as defined in
Section 2(c-5) and 7(1)(c) of the Freedom of Information Act and the Freedom of
Information Officer for the administrator may deny requests for records
containing personal information as information
specifically prohibited from disclosure by federal or State law or rules and
regulations implementing federal or State law; or unless disclosure is specifically required by a different State
or federal law or a court order. [5 ILCS 140/7(1)(a) and (b)]
| TITLE 74: PUBLIC FINANCE
CHAPTER V: TREASURER
PART 760
REVISED UNIFORM UNCLAIMED PROPERTY ACT
SECTION 760.1010 CONFIDENTIALITY OF RECORDS OBTAINED DURING EXAMINATION
Section 760.1010 Confidentiality of Records Obtained
During Examination
a) 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 of
the Act:
1) are subject to the confidentiality and
security provisions of Section 760.1000 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 the 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 of the Act;
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 Article 10
of the Act, if the other state is required to maintain the confidentiality and security
of information obtained in a manner substantially equivalent to Article 14 of
the Act;
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. [765 ILCS 1026/15-1004]
b) Auditors shall not disclose confidential
information obtained during an unclaimed property examination to any person
other than the administrator or the administrator's designee and, in the case
of a multistate examination, to authorized representatives of a state
participating in the examination.
c) Auditors shall not use confidential information
obtained from the person subject to an examination for any purpose other than
for purposes of the examination. Auditors shall take reasonable steps to ensure
that the confidential information provided by the person subject to an
examination is securely maintained.
d) Auditors must comply with any applicable federal
and State laws and regulations pertaining to unauthorized disclosures of
confidential information, including the Personal Information Protection Act.
(Source: Amended at 46 Ill. Reg. 16898, effective September
26, 2022)
SUBPART I: MISCELLANEOUS
| TITLE 74: PUBLIC FINANCE
CHAPTER V: TREASURER
PART 760
REVISED UNIFORM UNCLAIMED PROPERTY ACT
SECTION 760.1100 TRANSITION PROVISIONS
Section 760.1100 Transition Provisions
a) An initial report filed under the Revised Act
for property that was not required to be reported before the effective date of
the Revised Act, but that is required to be reported under the Revised Act,
must include all items of property that would have been presumed abandoned
during the 5-year period preceding the effective date of the Revised Act as if
the Revised Act had been in effect during that period. [765 ILCS
1026/15-1503(a)]
AGENCY NOTE:
A version of the transitional provision described in Section 15-1500(a) of the
Act has been included in every uniform unclaimed property Act promulgated by
the ULC [765 ILCS 15-1500(a)]. While the Act has a 5-year look back period, the
Uniform Law Commission (ULC, also known as the National Conference of Commissioners
on Uniform State Laws) version of RUUPA has a 10-year look back period. This 5-year
period is identical to the requirement in the Former Act that the State
Treasurer "issue a Notice of Deficiency to a holder or direct the
commencement of an examination of a holder with respect to a report required
under the Former Act within 5 years after the report is filed." (See the
repealed 765 ILCS 1025/23.5(a).) The Former Act, when it was adopted in 1961,
had a transitional provision that applied its provisions to any property for
which the presumption of abandonment prescribed by the Former Act occurred on
or after August 17, 1946. Thus, the look back period in the Former Act was 15
years. (See the repealed 765 ILCS 1025/17.)
1) Property Covered by the Transition Provision
A) As part of its report filed in calendar year
2018, a holder must report all property that would have been reported in 2013
through 2017 as if the Revised Act had been in effect on January 1, 2013.
B) Property that was excluded in 2013 through 2017
under the Former Act (Uniform Disposition of Unclaimed Property Act [765 ILCS
1025]), but that is not excluded under the Revised Act, must be reported in
2018.
EXAMPLE:
Property that was excluded from being reported and remitted pursuant to provisions
of Section 2a(b) of the Former Act during 2013 through 2017 should be reported
in 2018.
C) Which property should be reported under this
transitional provision is determined by looking at the applicable period of
abandonment in the Revised Act.
EXAMPLE:
Section 15-201(5) provides that the debt of a business association is reportable
3 years after the obligation to pay arises. So, a debt owed to another business
association that arose in 2010 would have been reportable in 2013 and,
therefore, would be reportable in the initial report filed in 2018.
2) Owner Interest
A) The requirement to report property that was
previously excluded from being reported under the Former Act is still subject
to the indication of apparent owner interest in property provisions of Section
15-210 of the Revised Act.
B) The period of abandonment for property covered by
subsection (a) is measured from the later of:
i) the date the property would have been presumed
abandoned if the Revised Act had been in effect; or
ii) the date of the latest indication of interest
by the apparent owner in the property.
3) Due Diligence Notice Required. A holder
reporting property pursuant to subsection (a) is still required to provide
notice to an apparent owner of that property pursuant to the applicable
provisions of Section 15-501 of the Revised Act.
4) Interest and Penalties
A) If a holder reports property pursuant to subsection
(a) in 2018, that property is considered to have been reported at the time
prescribed by the Revised Act. As such, the administrator may not impose any
interest or penalties under Section 15-1204 of the Revised Act on property
reported in 2018 in compliance with subsection (a).
B) If a holder fails to report property in 2018 that
should have been reported under subsection (a), but reports that property in
2019, the administrator shall waive any interest or penalties under Section
15-1204 of the Revised Act if the administrator determines that the holder
acted in good faith and without negligence.
5) Insufficient Holder Records. The following
provisions apply to a holder that has insufficient records to accurately report
property that should be reported in 2018 pursuant to subsection (a).
A) The holder:
i) shall report all property for which it has
adequate records to file a report under Section 15-401 of the Revised Act; and
ii) may enter into a written agreement with the
administrator to report and remit an estimate of any property that would have
been reportable to Illinois for which the holder does not have adequate records
to file a report under Section 15-401 of the Revised Act.
B) If the holder is domiciled outside of Illinois,
any estimate of property that would have been reportable to Illinois will be an
estimate of property for which the last-known address of the apparent owner
would have been in Illinois.
C) If the holder is domiciled in Illinois, any
estimate of property that would have been reportable to Illinois will be an
estimate both of property for which the last-known address of the apparent
owner would have been in Illinois and of property that would have been
reportable to Illinois under Section 15-304 of the Revised Act.
6) If property exempted under the Former Act but
not excluded under the Revised Act has been paid to another state, the holder
is not required to pay again. In this case, the holder should provide notice to
the administrator, so that the administrator can make a determination whether
to attempt to reclaim that property from the state first taking possession. To
provide the notice, the holder may, but is not required to, provide the
administrator with a copy of the report or relevant portions of the report
filed with the other state to which the property was reported and remitted.
Providing notice to the administrator under this provision is a form of "express
notice" as provided in Section 15-610(b) of the Act.
b) The Act does not relieve a holder of a duty
that arose before the effective date of the Revised Act to report, pay or
deliver property. Subject to Section 15-610(b) of the Act, a holder that did
not comply with the law governing unclaimed property before the effective date
of the Act is subject to applicable provisions for enforcement and penalties in
effect before the effective date of the Revised Act. [765 ILCS
1026/15-1503(b)]
1) Holders are still required to report and remit
any property that was reportable under the Former Act prior to January 1, 2018,
the effective date of the Revised Act.
A) Property that would not be reportable under the
Revised Act, that should have been reported under the Former Act prior to
January 1, 2018 will generally still be reportable to the administrator.
B) EXAMPLE: Property that should have been reported
under the Former Act on November 1, 2017 because it had been presumed abandoned
in the 12 months preceding July 1, 2017, but for whatever reason was not
reported and remitted to the administrator by January 1, 2018, would still need
to be reported and remitted to the administrator.
C) The statute of limitations in Section 15-610 of the
Revised Act, including the tolling provisions in Section 610(b), still applies
to the ability of the administrator to bring an enforcement action against a
holder.
2) Unclaimed property examinations that were
initiated before January 1, 2018, but are still ongoing on or after January 1,
2018, will be based on the presumptions of abandonment from the appropriate Act
given the circumstances surrounding the property.
A) Property that would be reportable under the
Revised Act will generally be reportable under that Act.
B) Property that would not be reportable under the
Revised Act, but should have been reported under the Former Act prior to
January 1, 2018 will generally still be reportable to the administrator.
C) When the standard for determining a presumption
of abandonment under the Revised Act is materially different from under the Former
Act, and it is in the best interests of the owner for the new standard to
apply, the Revised Act shall apply.
EXAMPLE:
A tax-advantaged nonretirement account that would have been presumed abandoned
after 5 years of inactivity under the Former Act, but would not be presumed
abandoned until 3 years after the date by which distribution of the property
must begin to avoid a tax penalty under the Revised Act, would be a case in
which the new standard would be applied.
D) The administrator and the holder may agree in
writing how to resolve issues in which both unclaimed property Acts may
reasonably be interpreted as applying to property that is the subject of the
unclaimed property examination. Under Section 15-608(b) of the Revised Act, the
administrator has the authority to accept property early and to waive or reduce
interest and penalties.
E) Generally, an examination will toll the statute
of limitations in Section 15-610 of the Revised Act unless the holder
specifically identified the property in a report filed with the administrator
or gave other express notice to the administrator prior to the initiation of
the examination, because a person subject to an unclaimed property examination
generally does not file reports directly with the administrator during that
examination.
Section 760.APPENDIX A Background Information
| TITLE 74: PUBLIC FINANCE
CHAPTER V: TREASURER
PART 760
REVISED UNIFORM UNCLAIMED PROPERTY ACT
SECTION 760.APPENDIX A BACKGROUND INFORMATION
Section 760.APPENDIX A Background Information
a)
Section 15-1501 of the Act provides that, when
applying and construing the Act, consideration must be given to
the need to promote uniformity of the law with respect to its subject matter among states that enact it. [765 ILCS 15-1501]. Given the provisions of Section
15-1501, this Appendix is intended to provide background that will be useful to
persons attempting to interpret the Act.
b)
Every state has enacted legislation requiring that holders of
presumptively abandoned or unclaimed property report and deliver that property
to the state. A majority of states have adopted some form of one of the uniform
acts promulgated by the Uniform Law Commission (ULC). The problem of "lucrative
silence" by holders motivated the ULC to draft and promulgate the original
Uniform Disposition of Unclaimed Property Act (UDUPA) in 1954. Illinois passed
its version of UDUPA in 1961. Illinois' current law is based on the ULC's
Revised Uniform Unclaimed Property Act (RUUPA) that was approved and
recommended for enactment in all states in 2016.
c)
Various courts have attempted to lay
out the purposes of state unclaimed property laws. The Minnesota Supreme Court
summarized the four main purposes as:
1) to protect the interests of the owners of
unclaimed property;
2) to relieve holders of the annoyance, expense and
liability of keeping unclaimed property;
3) to preclude multiple liability; and
4) to give the adopting state use of considerable
sums of money that otherwise is a windfall to holders. (State by Lord v. First
National Bank, 313 N.W.2d 390, 393 (Minn. 1981))
d) Illinois' Appellate Court noted that Illinois'
unclaimed property Act "protects the rights of unknown owners and gives
the benefit of the use of the unclaimed property, most of which experience
shows will never be claimed, to the State rather than the holders." (People
ex rel. Fahner v. Chicago Transit Authority, 127 Ill. App. 3d 405, 408, 468
N.E.2d 1316, 1318 (1st Dist. 1984) citing People ex rel. Callahan v.
Marshall Field & Co. (1980), 83 Ill. App. 3d 811, 404 N.E.2d 368; and Douglas
Aircraft Co. v. Cranston (1962), 58 Cal. 2d 462, 374 P.2d 819)
e) State unclaimed property Acts prevent the unjust
enrichment by holders of property to which they are not legally entitled and
establish a process through which unclaimed property may be reunited with its
rightful owner. These statutes essentially abolish the common law on abandoned
property and remove the escheatment by the state of intangible personal
property. The state no longer becomes the legal owner of unclaimed intangible
personal property. Instead, it is transferred to a state unclaimed property
administrator, typically the State Treasurer, who serves as a perpetual
custodian of the unclaimed property.
f) The Uniform Unclaimed Property System
1) The uniform unclaimed property Acts, including
Illinois' Act, set up a system for dealing with unclaimed intangible property
as well as tangible unclaimed property recovered from safe deposit boxes. Each
state's Act establishes rules to determine when different types of property are
presumed abandoned. After property is presumptively abandoned, the holder of
the property is almost always required to attempt to contact the owner of
unclaimed property in writing. This is called a due diligence notice. If the
owner does not claim the property from the holder, then the holder is required
to report and remit that property to the state unclaimed property administrator
as part of an annual unclaimed property report.
2) The administrator once again attempts to contact
owners. Historically, this was done through newspaper advertisements; now,
however, in addition to print advertising, states maintain searchable online
databases, work with other government agencies to update contact information
for owners, send direct mail to apparent owners, and perform other types of
in-person outreach and media advertising to attempt to reunite owners, or their
heirs, with their unclaimed property.
3) Cash remitted to the administrator is deposited
into a state fund. Non-cash property is held for a period of time and then sold
if the owner has not been located, with the proceeds being deposited into the
same state fund. Owners can claim their property from the administrator using
online or paper claim forms and, when necessary, by supplying supporting
documentation to prove that they are the rightful owner. There is no deadline
for an owner to reclaim his or her property from the administrator.
g) The U.S. Supreme Court has established federal
common law rules to determine which state is entitled to unclaimed property.
The cases of Texas v. New Jersey, 379 U.S. 674 (1965), Pennsylvania v. New York,
407 U.S. 206 (1972), and Delaware v. New York, 507 U.S. 490 (1993) have
established the framework to determine which state has priority in claiming
unclaimed property.
h) The Act is not identical to the version of RUUPA
promulgated by the ULC. The ULC version, including the official comments, is
available at www.uniformlaws.org. While the
General Assembly chose to adopt great portions of the version of RUUPA
promulgated by the ULC, certain provisions from the Former Act were retained,
language from prior versions of the uniform Act were used in places, and
sometimes provisions were modified or entirely rewritten. However, the Act,
Illinois' version of RUUPA, contains all of the elements of modern unclaimed
property law discussed in this Appendix.
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