IBA Compliance Connection

Your go to source for compliance!

Under Illinois law, are we required to have a notary who is not a bank employee present when drilling a safe deposit box? We currently have a box in one of our Illinois branches for which no owner can be identified.

Jan 27, 2016

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We are not aware of a requirement to have a notary present when opening a safety deposit box. The Illinois Safety Deposit Box Opening Act does not impose such requirements. Your primary federal regulator, the OCC, has published helpful guidance on establishing reasonable procedures for drilling safety deposit boxes.

It is important to note that Illinois law may require you to report and remit unclaimed property in the box to the Illinois State Treasurer. Illinois law requires you to report and remit funds and personal property from safety deposit boxes that have been dormant for five years.

For more information, see our Safety Deposit Box and our Unclaimed Property Topic Pages at GoToIBA.com.

For resources related to our guidance, please see:

OCC Comptroller’s Handbook, Consigned Items and Other Customer Services, Procedures, Quantity of Risk (“Determine the reasonableness of documentation associated with any drilled. Boxes may be drilled for nonpayment of rent; upon written request of lessee; and for a special administrator, with proper legal authority, in search of a will.”)

Illinois Uniform Disposition of Unclaimed Property Act, 765 ILCS 1025/2(d) [Repealed effective 1/1/18] (“The following property held or owing by a banking or financial organization is presumed abandoned: . . . . (d) Any funds or other personal property, tangible or intangible, removed from a safe deposit box . . . on which the lease or rental period has expired due to nonpayment of rental charges or other reason, or any surplus amounts arising from the sale thereof pursuant to law, that have been unclaimed by the owner for more than 5 years from the date on which the lease or rental period expired, subject to lien of the holder for reimbursement of costs incurred in the opening of a safe deposit box as determined by the holder’s regular schedule of charges.”)

Illinois Uniform Disposition of Unclaimed Property Act, 765 ILCS 1025/11 [Repealed effective 1/1/18] (“. . . every person holding funds or other property, tangible or intangible, presumed abandoned under this Act shall report and remit all abandoned property specified in the report to the State Treasurer . . . .”)