For certificate of deposit (CD) accounts that automatically renew, if we have other active accounts with the same ownership and address, do we still need to obtain the customer’s acknowledgment of each renewal?

No, the new Illinois Revised Uniform Unclaimed Property Act (Illinois RUUPA) does not require a bank to obtain written acknowledgments from CD owners for each CD renewal.

Even in the absence of such written acknowledgements, CDs will not become unclaimed if there are other qualifying indications of interest in the CDs. The Illinois RUUPA would treat a CD as an active account if there are other active accounts at your institution sharing the same mailing address. For example, if the accountholder increases or decreases amounts in a deposit account or makes a loan payment, that accountholder’s CD also would be treated as an active account. Additionally, the Illinois RUUPA provides several alternative indications of interest, such as oral communications (provided that your bank “contemporaneously makes and preserves a record” of the oral communication) and logging in to an online banking portal to check the CD balance.

The Illinois RUUPA does provide that automatically renewable accounts will not be considered unclaimed if “the apparent owner consented in a record on file with the holder to renewal at or about the time of the renewal.” In effect, this adds a new method by which the owner can make an indication of interest to prevent the automatically renewing CD from becoming unclaimed property. But your bank is not required to obtain the owner’s consent to renewals, since there are several different ways for an owner to indicate interest in property under the Illinois RUUPA.

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 1026/15-210(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; . . .”)