Current through Register Vol. 48, No. 38, September 20, 2024
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)]
