Illinois Administrative Code
Title 74 - PUBLIC FINANCE
Part 760 - REVISED UNIFORM UNCLAIMED PROPERTY ACT
Subpart E - CLAIMS
Section 760.690 - Securities Sale and Claims
Universal Citation: 74 IL Admin Code ยง 760.690
Current through Register Vol. 48, No. 38, September 20, 2024
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; and
instances in which fees will significantly deplete the value.
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 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 for those
securities.
A) However, the apparent owner
may direct the administrator to dispose of the securities by sale and remit the
net proceeds to the apparent owner.
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 fails to provide necessary and sufficient
information to allow the administrator to transfer the securities within 30
days after the administrator's request.
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)]
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