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