Topic: Safety Deposit Boxes
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We do not open safety deposit boxes for trusts, but we do open safety deposit boxes for businesses and nonprofits. Are there any laws in Illinois that govern who may open a safety deposit box?
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We are not aware of any law that prohibits a state bank from leasing a safe deposit box to a trust, and the Illinois Trusts and Trustees Act specifically permits a trustee to enter into a safety deposit box lease. Your bank may wish to request a Certification of Trust form from the trustee to…
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We are planning to increase our fees for safe deposit boxes. Are there any Illinois laws that require us to send notice to our existing safe deposit box customers in advance of changing the fees?
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No, we are not aware of any Illinois laws requiring notice of a fee increase for a safe deposit box. We also are not aware of any federal laws requiring a bank to provide advance notice when increasing safe deposit box fees. However, we recommend reviewing the terms and conditions of your safe deposit box…
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Two of our customers recently separated and do not appear to be in communication. The couple have joint deposit accounts and a joint lock box. The wife requested statements for the joint accounts, which we have provided. The wife does not have a key to the lock box and has asked to see the access log. Since this is a joint lock box account, can we provide the wife with the access log without a subpoena?
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Yes, we believe that your bank may provide an access log to the wife, as she continues to be a joint lessor of the lock box. Both federal and Illinois financial privacy laws permits banks to disclose a customer’s financial records to that customer, and both joint lessors should have equal access to account records…
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We have a customer who we suspect may be hiding funds from his ex-wife to avoid paying child support. He asked a teller whether a levy or garnishment could reach the property stored in his safe deposit box. Is that possible?
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Yes, it is possible for a creditor to levy or garnish the contents of a safe deposit box to satisfy a debt. The Illinois Code of Civil Procedure provides procedures for a judgment creditor to discover and require delivery of a judgment debtor’s assets. The citation to discover assets that is served on a judgment…
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What are the record retention requirements for closed safe deposit box agreements?
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Disclaimer: The Electronic Commerce Security Act (ECSA) was repealed and replaced with the Uniform Electronic Transaction Act (UETA), effective June 25, 2021. Please note that this change may affect the continued accuracy of this guidance as it pertains to the ECSA. We are not aware of any specific legal requirement that applies to the retention of…
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How should we handle unclaimed property reporting for items that are in a safe deposit box that haven’t been claimed but are owned by an active military individual (according to the Department of Defense’s website)?
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Under the Illinois Revised Uniform Unclaimed Property Act (Illinois RUUPA), property held in a safe deposit box is considered unclaimed property five years after the expiration of the lease or rental period for the box. There are no exceptions for active duty military personnel. If a safe deposit box holder has not made any qualifying…
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What are the record retention rules for lock boxes in Illinois, including customer’s statements, logs, and any other type of information related to the lock box? Also, what are the record retention requirements for email, either between bank staff and customers, or internally among bank staff related to a transaction?
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Disclaimer: The Electronic Commerce Security Act (ECSA) was repealed and replaced with the Uniform Electronic Transaction Act (UETA), effective June 25, 2021. Please note that this change may affect the continued accuracy of this guidance as it pertains to the ECSA. We are not aware of any specific legal requirements in Illinois that apply to the…
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We have two customers who jointly own a safe deposit box. One of the joint owners executed a statutory short form power of attorney (POA) in which “safe deposit box transactions” has not been stricken. Can we allow the agent authorized in the POA to access the jointly owned safe deposit box? Our safe deposit box agreement allows either owner to access the box.
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Yes, we believe you may allow an agent with an Illinois power of attorney document that includes “safe deposit transactions” to access the principal’s jointly-owned safe deposit box. The Illinois Statutory Short Form Power of Attorney for Property provides the power to execute “safe deposit box transactions” in line item (e) if it has not…
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Regarding safe deposit box access records, is there any requirement in Illinois to keep the original paper document with the customer’s signature once we confirm that a scanned copy has been saved to our system?
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Disclaimer: The Electronic Commerce Security Act (ECSA) was repealed and replaced with the Uniform Electronic Transaction Act (UETA), effective June 25, 2021. Please note that this change may affect the continued accuracy of this guidance as it pertains to the ECSA. No, there are no mandatory retention periods for original safe deposit box access records when…
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Can we allow a customer to add an out-of-state person as an owner on their safe deposit box by having them sign a contract using electronic signature software?
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Disclaimer: The Electronic Commerce Security Act (ECSA) was repealed and replaced with the Uniform Electronic Transaction Act (UETA), effective June 25, 2021. Please note that this change may affect the continued accuracy of this guidance as it pertains to the ECSA. Yes, both Illinois and federal law provide that a signature may not be denied legal…