Full Text of HB1560 97th General Assembly
HB1560enr 97TH GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning civil law.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Uniform Disposition of Unclaimed Property | 5 | | Act is amended by changing Sections 2 and 2a as follows:
| 6 | | (765 ILCS 1025/2) (from Ch. 141, par. 102)
| 7 | | Sec. 2. Property held by financial organizations; | 8 | | presumption of
abandonment. The following property held or | 9 | | owing by a banking or financial
organization is presumed | 10 | | abandoned:
| 11 | | (a) Any demand, savings, or matured time deposit with
a | 12 | | banking organization, together with any interest or dividend | 13 | | thereon,
excluding any charges that may lawfully be withheld, | 14 | | unless the owner has,
within 5 years:
| 15 | | (1) Increased or decreased the amount of the deposit, | 16 | | or presented the
passbook or other similar evidence of the | 17 | | deposit for the crediting of
interest; or
| 18 | | (2) Corresponded in writing with the banking | 19 | | organization concerning the
deposit;
| 20 | | (3) Otherwise indicated an interest in the deposit as | 21 | | evidenced by a
memorandum on file with the banking | 22 | | organization; or
| 23 | | (4) Engaged in the following activity regarding other |
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| 1 | | funds or loan accounts with the banking organization: | 2 | | (i) undertook one or more the above actions | 3 | | described in subsection (a) of this Section regarding | 4 | | any account that appears on a consolidated statement | 5 | | with the inactive account; | 6 | | (ii) increased or decreased the amount of funds in | 7 | | any other account the owner has with the banking | 8 | | organization; or | 9 | | (iii) engaged in any other relationship with the | 10 | | banking organization, including payment of any amounts | 11 | | due on a loan. | 12 | | The foregoing apply so long as the mailing address for the | 13 | | owner in the banking organization's books and records is the | 14 | | same for both the inactive account and for the active account.
| 15 | | (b) Any funds paid toward the purchase of withdrawable
| 16 | | shares
or other interest in a financial organization, or any | 17 | | deposit made, and any interest or dividends thereon, excluding | 18 | | any charges
that may be lawfully withheld, unless the owner has | 19 | | within 5 years:
| 20 | | (1) Increased or decreased the amount of the funds, or | 21 | | deposit, or
presented an appropriate record for the | 22 | | crediting of interest or dividends; or
| 23 | | (2) Corresponded in writing with the financial | 24 | | organization concerning
the funds or deposit;
| 25 | | (3) Otherwise indicated an interest in the funds or | 26 | | deposit as evidenced
by a memorandum on file with the |
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| 1 | | financial organization; or
| 2 | | (4) Engaged in the following activity regarding other | 3 | | funds or loan accounts with the financial organization: | 4 | | (i) undertook one or more the above actions | 5 | | described in subsection (b) of this Section regarding | 6 | | any account that appears on a consolidated statement | 7 | | with the inactive account; | 8 | | (ii) increased or decreased the amount of funds in | 9 | | any other account the owner has with the financial | 10 | | organization; or | 11 | | (iii) engaged in any other relationship with the | 12 | | financial organization, including payment of any | 13 | | amounts due on a loan. | 14 | | The foregoing apply so long as the mailing address for the | 15 | | owner in the financial organization's books and records is the | 16 | | same for both the inactive account and for the active account.
| 17 | | (c) Any sum payable on checks or on written
instruments on | 18 | | which a banking or financial
organization
or business | 19 | | association is directly liable including, by way of | 20 | | illustration
but not of limitation, certificates of deposit, | 21 | | drafts, money orders and
travelers checks, that with the | 22 | | exception of travelers checks and unclaimed wages, payroll, and | 23 | | salary has been
outstanding for more than 5 years from the date | 24 | | it was payable, or from the
date of its issuance if payable on | 25 | | demand, or, in the case of travelers checks,
that has been | 26 | | outstanding for more than 15 years from the date of its |
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| 1 | | issuance,
or, in the case of unclaimed wages, payroll, or | 2 | | salary, that has been outstanding for more than one year from | 3 | | the date of its issuance, excluding any charges that may be | 4 | | lawfully withheld
relating to money orders issued by currency | 5 | | exchanges,
unless the owner has within 5 years ( or within 15 | 6 | | years in the case of travelers
checks or one year in the case | 7 | | of unclaimed wages, payroll, or salary) corresponded in writing | 8 | | with the banking or financial organization or
business | 9 | | association concerning it, or otherwise indicated an interest | 10 | | as
evidenced by a memorandum on file with the banking or | 11 | | financial organization or
business association.
| 12 | | (d) Any funds or other personal property, tangible or | 13 | | intangible, removed
from a safe deposit box or any other | 14 | | safekeeping repository or agency or
collateral deposit box on | 15 | | which the lease or rental period
has expired due to nonpayment | 16 | | of rental charges or other reason, or any
surplus amounts | 17 | | arising from the sale thereof pursuant to law, that have
been | 18 | | unclaimed by the owner for more than 5 years from the date on | 19 | | which
the lease or rental period expired, subject to lien of | 20 | | the holder for
reimbursement of costs incurred in the opening | 21 | | of a safe deposit box as
determined by the holder's regular | 22 | | schedule of charges.
| 23 | | (e) Notwithstanding any other provision of this Section, no | 24 | | deposit
except passbook, checking, NOW accounts, super NOW | 25 | | accounts, money market
accounts, or such similar accounts as | 26 | | established by Rule of the
State Treasurer,
held by a banking |
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| 1 | | or financial organization shall be presumed abandoned if
with | 2 | | respect to such a deposit which specifies a definite maturity | 3 | | date,
such organization was authorized in writing to extend or | 4 | | rollover the
account for an additional like period and such | 5 | | organization does so extend.
Such deposits are not presumed | 6 | | abandoned less than 5 years from that final
maturity date.
| 7 | | Property of any kind held in an individual retirement account | 8 | | (IRA) is
not presumed abandoned earlier than 5 years after the | 9 | | owner attains the age at
which distributions from the account | 10 | | become mandatory under law.
| 11 | | (f) Notwithstanding any other provision of this Section, | 12 | | money of a minor
deposited pursuant to Section 24-21 of the | 13 | | Probate Act of 1975 shall not be
presumed abandoned earlier | 14 | | than 5 years after the minor attains legal age.
Such money | 15 | | shall be deposited in an account which shall indicate the birth | 16 | | date
of the minor.
| 17 | | (Source: P.A. 94-255, eff. 1-1-06.)
| 18 | | (765 ILCS 1025/2a) (from Ch. 141, par. 102a)
| 19 | | Sec. 2a.
(a) Business associations shall report, pursuant | 20 | | to Section 11 of
this Act, all property and any earnings | 21 | | thereon to which the owner would be
entitled that have remained | 22 | | unclaimed for 5 years and are therefore presumed
abandoned. | 23 | | Before reporting and delivering property as required under this
| 24 | | Act, a business association may deduct from the amount of | 25 | | otherwise reportable
intangible personal property the economic |
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| 1 | | loss suffered by it in connection
with that intangible personal | 2 | | property arising from transactions involving the
sale of | 3 | | tangible personal property at retail. This property shall | 4 | | consist of,
but is not limited to:
| 5 | | (1) (blank); unclaimed wages;
| 6 | | (2) deposits or payment for repair or purchase of goods | 7 | | or services;
| 8 | | (3) credit checks or memos, or customer overpayments;
| 9 | | (4) stocks, bonds, or any other type of securities or | 10 | | debt
instruments, and interest and dividends therefrom;
| 11 | | (5) unidentified remittances, unrefunded overcharges;
| 12 | | (6) unpaid claims, unpaid accounts payable or unpaid | 13 | | commissions; and
| 14 | | (7) credit balances - accounts receivable, checks | 15 | | written off, employee
bond buying and profit-sharing.
| 16 | | (b) Notwithstanding the provisions of subsection (a), any | 17 | | property due or
owed by a business association to or for the | 18 | | benefit of another business
association resulting from a | 19 | | transaction occurring in the normal and ordinary
course of | 20 | | business shall be exempt from the provisions of this Act.
| 21 | | (c) Notwithstanding the provisions of subsection (a), | 22 | | unclaimed wages, payroll, and salary, in any form, shall be | 23 | | reported after remaining unclaimed for one year, pursuant to | 24 | | Section 2. | 25 | | (Source: P.A. 90-167, eff. 7-23-97; 91-688, eff. 3-23-00.)
| 26 | | Section 99. Effective date. This Act takes effect upon |
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| 1 | | becoming law.
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