The new Illinois Revised Uniform Unclaimed Property Act (Illinois RUUPA) adds reporting obligations regarding safe-deposit box property and modifies the process of obtaining reimbursements of safe-deposit box opening expenses and unpaid rent. 

The Illinois RUUPA’s reporting obligations include new details on the “location of the property” held in a safe-deposit box, as well as “where it may be inspected by the administrator [the Illinois Treasurer].” Additionally, when reporting safe-deposit box property, you must indicate the amounts owed to your bank for “the cost of opening the box” and “unpaid rent charges on the box.”

Additionally, the Illinois RUUPA modifies the procedure by which your bank will be reimbursed for these costs. Property holders must apply to the Treasurer for reimbursement of their safe-deposit box opening costs and unpaid rent charges, which will be reimbursed after the Treasurer sells the property and deducts its own costs. In other words, holders now will have to wait for the Treasurer to reimburse these costs after remitting property — unlike the previous unclaimed property law, which permitted holders to deduct these costs before remitting property.

However, our understanding is that in reality, this may be a distinction without a difference. The Illinois Treasurer’s office has told us that banks have not been taking advantage of their ability to deduct their costs from safe-deposit box property. This likely is because safe-deposit box property almost always is remitted to the state as tangible property, not as currency, making it impossible to deduct costs before remitting the property.   

We are not aware of other changes concerning unclaimed property in safe-deposit boxes. The presumed abandonment period safe-deposit box property is consistent with current law; it remains at five years from “the expiration of the lease or rental period for the box.”

We do recommend staying informed regarding the Illinois Treasurer’s efforts to draft administrative rules under the new Illinois RUUPA. These administrative rules are likely to address the reimbursement process for safe-deposit box costs and other topics.

For resources related to our guidance, please see:

• Illinois RUUPA (effective January 1, 2018), 765 ILCS 1026/15-402(a)(6) (A property holder’s report to the Illinois Treasurer must “for property held in or removed from a safe-deposit box, indicate the location of the property, where it may be inspected by the administrator, and any amounts owed to the holder under Section 15-606; . . .”)

• Illinois RUUPA (effective January 1, 2018), 765 ILCS 1026/15-606 (“Property removed from a safe-deposit box and delivered under this Act to the administrator under this Act is subject to the holder’s right to reimbursement for the cost of opening the box and a lien or contract providing reimbursement to the holder for unpaid rent charges for the box. Upon application by the holder, after the sale of the property, and after deducting the expense incurred by the administrator in selling the property, the administrator shall reimburse the holder from the proceeds remaining. The administrator shall promulgate administrative rules concerning the reimbursement process under this Section.”)

• Illinois RUUPA (effective January 1, 2018), 765 ILCS 1026/15-205 (“Tangible property held in a safe-deposit box are presumed abandoned if the property remains unclaimed by the apparent owner 5 years after the expiration of the lease or rental period for the box.”)

• Illinois RUUPA (effective January 1, 2018), 765 ILCS 1026/15-603(c) (“Tangible property in a safe-deposit box may not be delivered to the administrator until a mutually agreed upon date that is no sooner than 60 days after filing the report under Section 15-401.”)