We do not believe there is a record retention requirement that applies to all “legal documents.” Below is a list of recommended retention periods for the specific items mentioned in your question. However, if these documents are relevant to litigation, we recommend applying a longer retention period, regardless of the document type.

Documents Related to Litigation

We recommend retaining any documents that you reasonably anticipate could be related to litigation at least until the litigation (and any related issues) conclude. The Illinois Supreme Court has held that “a potential litigant owes a duty to take reasonable measures to preserve the integrity of relevant and material evidence.” Additionally, federal courts have indicated that litigants may release holds on documents related to litigation when the underlying litigation has been dismissed with prejudice or settled and it is reasonable to believe that no future litigation is forthcoming. Consequently, we recommend following a rule of thumb outlined in a HUD rule: “If any litigation, claim, negotiation, audit, monitoring, inspection or other action has been started before the expiration of the required record retention period records must be retained until completion of the action and resolution of all issues which arise from it, or until the end of the required period, whichever is later.”

Tax Levies

We are not aware of any Illinois or federal law requiring banks to retain tax levies. The IBA’s Guide to Bank Record Retention recommends retaining records concerning the status and current payment of taxes until termination of the associated account.

Garnishments

Federal law prohibits the garnishing of federal benefit payments and requires banks to maintain records demonstrating compliance with this prohibition for at least two years from the date on which the bank receives a garnishment order. The IBA’s Guide to Bank Record Retention recommends retaining records related to an account garnishment until three years after the associated account is terminated.

Circuit Court Notices of Hearings

We are not aware of any Illinois or federal law requiring banks to retain circuit court notices of hearings.

Citations to Discover Assets

We are not aware of any Illinois or federal law requiring banks to retain citations to discover assets. However, the Federal Reserve’s Consumer Compliance Handbook section on the Right to Financial Privacy Act states that “[a]lthough there are no specific record-retention requirements in the act, financial institutions should retain copies of all administrative and judicial subpoenas, search warrants, and formal written requests given to them by federal government agencies or departments along with the written certification required.” As a result, we recommend retaining citations to discover assets issued by federal government agencies or departments indefinitely. Also, the IBA’s Guide to Bank Record Retention recommends retaining court orders related to safe deposit boxes until five years after the associated account is terminated.

Savings Bond Forms

We are not aware of any Illinois or federal law requiring banks to retain U.S. Savings Bond forms. While federal law requires banks to retain records related to securities transactions (including bonds) for at least three years, this requirement specifically excludes U.S. Savings Bonds. However, we recommend retaining evidence of U.S. Savings Bonds you issue in order to facilitate your compliance with the Illinois Revised Uniform Unclaimed Property Act (Illinois RUUPA). The Illinois RUUPA requires a U.S. Savings Bond to be reported as abandoned property if it remains unredeemed five years after its date of final extended maturity.

For resources related to our guidance, please see:

• Shimanovsky v. GMC, 181 Ill.2d 112, 121–122 (Ill. 1998) (“Thus, the appellate court has determined that a potential litigant owes a duty to take reasonable measures to preserve the integrity of relevant and material evidence. This duty is based on the court's concern that, were it unable to sanction a party for the presuit destruction of evidence, a potential litigant could circumvent discovery rules or escape liability simply by destroying the proof prior to the filing of a complaint. We agree with the appellate court that a potential litigant does indeed owe such a duty.”)

• Edwards v. Hearst Communs., Inc., 2017 U.S. Dist. LEXIS 207540, at *12–13 (S.D.N.Y. 2017) (“In sum, given that Grenke was dismissed with prejudice on a joint motion, the lack of other suits brought against Hearst under the VRPA, the absence of threats or other specific information indicating that suit might follow, and the nature of injury caused by the alleged action, it was reasonable for Hearst to believe that no future litigation was forthcoming. The Court cannot find, on the record before it, that Hearst should have known when Grenke was dismissed that evidence from that case might be relevant to future litigation. Thus, the Court concludes that Hearst had no duty to preserve evidence relevant to a VRPA claim until Boelter was filed on May 21, 2015.”)

• In re Pradaxa Prods. Liab. Litig., 2013 U.S. Dist. LEXIS 137235, at *34 (S.D. Ill 2013) (“Before November 2011, BIPI was a defendant in two cases associated with Pradaxa's clinical trials: (1) the Hone litigation (filed October 2008 and settled January 2009) and (2) the Academic Health litigation (filed January 2010 and settled September 2011). . . . The PSC contends that the allegations in the Hone litigation are identical to the allegations at issue in this MDL and as such triggered a duty to preserve evidence relevant to potential Pradaxa product liability litigation. . . . The Hone litigation did not give BIPI reason to anticipate that post-launch Pradaxa product liability was imminent or reasonably foreseeable. In fact, as BIPI points out, the first post-launch Pradaxa product liability case was not filed until March 2012 — more than three years after the Hone litigation settled.”)

• Home Investment Partnerships Program Regulations, 24 CFR 92.508(c)(6) (“If any litigation, claim, negotiation, audit, monitoring, inspection or other action has been started before the expiration of the required record retention period records must be retained until completion of the action and resolution of all issues which arise from it, or until the end of the required period, whichever is later.”)

• IBA Guide to Bank Record Retention 2013–2014 (“Status and Current Payment of Taxes, Assessments, Insurance Premiums” Recommendation: Termination)

• IBA Guide to Bank Record Retention 2013–2014 (“Attachment, Lien, Writ, Garnishment of Debtor/Disclosure (documents and releases)” Recommendation: Termination+3y)

• 31 CFR 212.2(b) (“This part applies to . . . Federal benefit payments protected from garnishment pursuant to the following authorities:

(1) SSA benefit payments protected under 42 U.S.C. 407 and 42 U.S.C. 1383(d)(1);

(2) VA benefit payments protected under 38 U.S.C. 5301(a);

(3) RRB benefit payments protected under 45 U.S.C. 231m(a) and 45 U.S.C. 352(e); and

(4) OPM benefit payments protected under 5 U.S.C. 8346 and 5 U.S.C. 8470.”)

• 31 CFR 212.11 (“A financial institution shall maintain records of account activity and actions taken in response to a garnishment order, sufficient to demonstrate compliance with this part, for a period of not less than two years from the date on which the financial institution receives the garnishment order.”)

• Federal Reserve, Consumer Compliance Handbook — Right to Financial Privacy Act, page 1 (“Although there are no specific record-retention requirements in the act, financial institutions should retain copies of all administrative and judicial subpoenas, search warrants, and formal written requests given to them by federal government agencies or departments along with the written certification required.”)

• IBA Guide to Bank Record Retention 2013–2014 (“Court Orders” Recommendation: Termination+5y)

• 12 CFR 208.34(c) (“Except as provided in paragraph (a) of this section, every State member bank effecting securities transactions for customers, including transactions in government securities, and municipal securities transactions by banks not subject to registration as municipal securities dealers, shall maintain the following records with respect to such transactions for at least three years.”)

• 12 CFR 208.34(b)(11) (“Security shall mean: (i) Any . . . bond . . . (ii) But does not include . . .  U.S. Savings Bonds.”)

• Illinois RUUPA, 765 ILCS 1026/15-213 (“Notwithstanding any provision of this Act to the contrary, a United States savings bond subject to this Section or held or owing in this State by any person is presumed abandoned when such bond has remained unclaimed and unredeemed for 5 years after its date of final extended maturity.”)