The Illinois Revised Uniform Unclaimed Property Act (Illinois RUUPA) provides that an automatically renewable deposit is not considered abandoned if the “apparent owner consented in a record on file with the holder to renewal at or about the time of the renewal.” What is an acceptable way for an apparent owner to consent to the renewal? Can the consent be written or verbal, in person or by phone call?

The general rule in the Illinois RUUPA requires an apparent owner’s written “consent” for the automatic renewal of a time deposit, such as a certificate of deposit (CD). However, the Illinois RUUPA also provides several other methods for an apparent owner to “indicate an interest” in an account, including CDs, which include written and verbal communications, as well as other activities conducted by the customer at the bank.

A customer’s “consent” for the renewal of a CD must be documented in a tangible or electronic form. Because a “record” of the consent is required, a verbal consent alone would not suffice for this purpose, although we believe a verbal consent that it is contemporaneously recorded and then maintained by the bank should meet this requirement.

However, the Illinois RUUPA also provides several alternative methods for confirming a customer’s “interest” in an account, which is another means for automatically renewing a CD while avoiding the presumption of abandonment. An account owner may orally communicate an “indication of interest” in the CD, provided that your bank “contemporaneously makes and preserves a record” of the oral communication. Other indications of interest would include logging onto an online banking portal to check the CD balance, as well as activities on other accounts held at your bank (subject to certain conditions).

In other words, your bank is not limited to obtaining the owner’s “consent” — “in a record on file with the holder to renewal at or about the time of the renewal” — as there are several other ways for an owner to “indicate an interest” in an automatically renewable CD under the Illinois RUUPA, thereby avoiding a presumption of abandonment.

For resources related to our guidance, please see:

Illinois RUUPA, 765 ILCS 1026/15-201(6) (“When property presumed abandoned. Subject to Section 15-210, the following property is presumed abandoned if it is unclaimed by the apparent owner during the period specified below: . . . (6) a demand, savings, or 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, except for a deposit that is automatically renewable, 3 years after its initial date of maturity unless the apparent owner consented in a record on file with the holder to renewal at or about the time of the renewal; . . .”)

Illinois RUUPA, 765 ILCS 1026/15-201(26) (“‘Record’ means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form. . . .”)

Illinois RUUPA, 765 ILCS 1026/15-210(f) (“If the apparent owner has another property with the holder to which Section 201(6) applies, then activity directed by an apparent owner in any other accounts, including loan accounts, at a financial organization holding an inactive account of the apparent owner shall be an indication of interest in all such accounts if:

(A) the apparent owner engages in one or more of the following activities:

(i) the apparent owner undertakes one or more of the actions described in subsection (b) of this Section regarding any account that appears on a consolidated statement with the inactive account;

(ii) the apparent owner increases or decreases the amount of funds in any other account the apparent owner has with the financial organization; or

(iii) the apparent owner engages in any other relationship with the financial organization, including payment of any amounts due on a loan; and

(B) the foregoing apply so long as the mailing address for the apparent owner in the financial organization’s books and records is the same for both the inactive account and the active account.”)

Illinois RUUPA, 765 ILCS 1026/15-210(a) (“The period after which property is presumed abandoned is measured from the later of: (1) the date the property is presumed abandoned under this Article; or (2) the latest indication of interest by the apparent owner in the property.”)

Illinois RUUPA, 765 ILCS 1026/15-210(b) (“Under this Act, an indication of an apparent owner’s interest in property includes: . . . (2) an oral communication by the apparent owner to the holder or agent of the holder concerning the property or the account in which the property is held, if the holder or its agent contemporaneously makes and preserves a record of the fact of the apparent owner’s communication; . . .”)

Illinois RUUPA, 765 ILCS 1026/15-210(b) (“Under this Act, an indication of an apparent owner’s interest in property includes: . . . (4) activity directed by an apparent owner in the account in which the property is held, including accessing the account or information concerning the account, or a direction by the apparent owner to increase, decrease, or otherwise change the amount or type of property held in the account; . . .”)