SB0155eng 99TH GENERAL ASSEMBLY

SB0155 Engrossed LRB099 03384 HEP 23392 b

AN ACT concerning civil law.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Uniform Disposition of Unclaimed Property Act is amended by changing Section 8.1 as follows:

(765 ILCS 1025/8.1) (from Ch. 141, par. 108.1)

Sec. 8.1. Property held by governments.

(a) All tangible personal property or intangible personal property and all debts owed or entrusted funds or other property held by any federal, state or local government or governmental subdivision, agency, entity, officer or appointee thereof, shall be presumed abandoned if the property has remained unclaimed for 7 years.

(b) This Section applies to all abandoned property held by any federal, state or local government or governmental subdivision, agency, entity, officer or appointee thereof, on the effective date of this amendatory Act of 1991 or at any time thereafter, regardless of when the property became or becomes presumptively abandoned.

(c) United States savings bonds.

(1) As used in this subsection, "United States savings bond" means property, tangible or intangible, in the form of a savings bond issued by the United States Treasury, whether in paper, electronic, or paperless form, along with all proceeds thereof.

(2) Notwithstanding any provision of this Act to the contrary, a United States savings bond subject to this Section or held or owing in this State by any person, shall be presumed abandoned when such bond has remained unclaimed and unredeemed for 5 years after its date of maturity.

(3) United States savings bonds that are presumed abandoned and unclaimed under paragraph (2), including bonds in the possession of the State Treasurer, and those lost, stolen, or destroyed bonds registered to persons with last known addresses in this State, shall escheat to this State and all property rights and legal title to and ownership of the United States savings bonds, or proceeds from the bonds, including all rights, powers, and privileges of survivorship of any owner, co-owner, or beneficiary, shall vest solely in this State according to the procedure set forth in paragraphs (4) through (6).

(4) Within 180 days after a United States savings bond has been presumed abandoned, in the absence of a claim having been filed with the State Treasurer for the savings bond, the State Treasurer shall commence a civil action in the Circuit Court of Sangamon County for a determination that the United States savings bond has escheated to this State. The State Treasurer may postpone the bringing of the action until sufficient United States savings bonds have accumulated in the State Treasurer's custody to justify the expense of the proceedings.

(5) The State Treasurer shall make service by publication in the civil action in accordance with Sections 2-206 and 2-207 of the Code of Civil Procedure.

(6) If no person files a claim or appears at the hearing to substantiate a claim or if the court determines that a claimant is not entitled to the property claimed by the claimant, then the court, if satisfied by evidence that the State Treasurer has substantially complied with the laws of this State, shall enter a judgment that the United States savings bonds have escheated to this State, and all property rights and legal title to and ownership of such United States savings bonds or proceeds from such bonds, including all rights, powers, and privileges of survivorship of any owner, co-owner, or beneficiary, shall vest in this State.

(7) The State Treasurer shall redeem from the Bureau of the Fiscal Service of the United States Treasury the United States savings bonds escheated to this State and deposit the proceeds from the redemption of United States savings bonds into the Unclaimed Property Trust Fund.

(8) Any person making a claim for the United States savings bonds escheated to this State under this Section, or for the proceeds from such bonds, may file a claim with the State Treasurer. Upon providing sufficient proof of the validity of such person's claim, the State Treasurer may, in his or her sole discretion, pay such claim less any expenses and costs incurred by this State in securing full title and ownership of such property by escheat. If payment has been made to any claimant, no action thereafter shall be maintained by any other claimant against this State or any officer thereof for or on account of such funds.

(Source: P.A. 90-167, eff. 7-23-97; 91-357, eff. 7-29-99.)

Section 99. Effective date. This Act takes effect upon becoming law.