Are we required to retain a copy of the signed “indication of interest in property” letter we receive from a customer whose account was previously or about to be presumed abandoned? Once we receive a signed copy of such a letter, we return the customer’s account to an active status. Since the Illinois Revised Uniform Unclaimed Property Act (Illinois RUUPA) allows customers to verbally communicate interest in an account that is presumed abandoned, we are unsure as to the record retention requirement for such letters.

We recommend retaining copies of any letters signed by your customers indicating their interest in any account, including an account that was dormant but not yet reported as unclaimed property, for at least ten years. These records may be retained in either physical or electronic form.

Under the Illinois RUUPA, property holders must retain certain records for at least ten years after filing each annual report of unclaimed property. With respect to property that was not reported as unclaimed, these records must include “sufficient records of items which were not reported as unclaimed, to allow examination to determine whether the holder has complied with the Act.” Consequently, we recommend retaining records showing a customer’s indication of interest in an account — such as a signed letter — for ten years, or until the owner makes another indication of interest in the property (which could include a withdrawal or deposit from an account, oral communications for which a written record is created and maintained, and much more).

For resources related to our guidance, please see:

Illinois RUUPA, 765 ILCS 1026/15-404 (“Retention of records by holder. A holder required to file a report under Section 15-401 shall retain records for 10 years after the later of the date the report was filed or the last date a timely report was due to be filed, unless a shorter period is provided by rule of the administrator. . . . The records must contain . . . . (5) sufficient records of items which were not reported as unclaimed, to allow examination to determine whether the holder has complied with the Act.”)

Illinois RUUPA, 765 ILCS 1026/15-102(a) (“(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. The phrase ‘records of the holder’ includes records maintained by a third party that has contracted with the holder.”)

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:

(1) a record communicated by the apparent owner to the holder or agent of the holder concerning the property or the account in which the property is held;

(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;

(3) presentment of a check or other instrument of payment of a dividend, interest payment, or other distribution, or evidence of receipt of a distribution made by electronic or similar means, with respect to an account, underlying security, or interest in a business association;

(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;

(5) a deposit into or withdrawal from an account at a financial organization, except for a recurring Automated Clearing House (ACH) debit or credit previously authorized by the apparent owner or an automatic reinvestment of dividends or interest . . . .”)

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.”)