Recent revisions to Section 15-603(b) of the Illinois RUUPA allow holders to delay the reporting of abandoned automatically renewable time deposits to the State Treasurer when necessary to avoid a penalty or forfeiture in the payment of interest. Previously, property holders could delay the delivery of such property to avoid a penalty or forfeiture, but it was not clear whether holders could also delay the reporting of such property. These changes were made by Public Act 102-288, which was signed into law on August 6, 2021.

As revised, Section 15-603(b) clarifies that abandoned automatically renewable time deposits do not need to be reported and paid to the State Treasurer when doing so would cause the owner to pay a penalty or forfeit interest (such as paying an early-withdrawal penalty on an automatically renewable certificate of deposit). Instead, the property holder may delay until a penalty or forfeiture would no longer result from delivery of the property to the State Treasurer — and this delay would apply both to reporting and delivering the abandoned automatically renewable time deposit. After the delay, the property holder must report and deliver the property on its next reporting date under the Illinois RUUPA (which would be November 1, for a bank). The property holder must also indicate in its report to the State Treasurer that the property is being reported on an extended date pursuant to Section 15-603(b).

The amendments also clarify that the holder of an automatically renewable time deposit is the one who must make the determination of when a penalty or forfeiture in the payment of interest would result from paying the deposit to the administrator at the time of the report.

For resources related to our guidance, please see:

• Public Act 102-288, Illinois RUUPA, 765 ILCS 1026/15-603(b) (“If property in a report under Section 15-401 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 payment of 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 this 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 (b) payment, if the holder informs the administrator of the extended date.”)

• Illinois RUUPA, 765 ILCS 1026/15-603(b) (with changes made by Public Act 102-288) (“If property in a report under Section 15-401 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 this 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 (b).”)