Topic: Safety Deposit Boxes
-
We have a safe deposit box of a deceased customer. Can the attorney representing the estate appoint someone to access the lock box that is not on the account, or should we require a court order?
—
by
The answer may depend on whether the estate representative is “independent” or “supervised.” Illinois recognizes two types of administrators and executors of estates — independent and supervised. Most estate representatives are independent, which means they can administer the estate without court approval of their specific actions. Illinois law expressly permits independent administrators and executors to…
-
If we drill a safe deposit box and sell the contents, can we use the proceeds to pay unpaid rents and late charges, or only the expenses incurred in opening the box and changing the lock?
—
by
As discussed below, the answer depends on the terms of your safe deposit box account agreements. Under the Uniform Disposition of Unclaimed Property Act, a bank may be reimbursed for drilling and other costs associated with opening an unclaimed safe deposit box. However, no other charges may be deducted unless “authorized by law or expressly provided…
-
What types of fees can we charge for safe deposit boxes? What notification is required?
—
by
We are not aware of any limitations on fees or charges for safety deposit boxes, but your safety deposit box lease agreement should disclose your fees and charges. Notably, if you need to report and remit a box’s contents to the State Treasurer as unclaimed property, you may not withhold fees unless they are reflected…
-
When does the five year abandonment period start to run for a safe deposit box? Does it begin when the customer last accessed the box or when the rent payment became past due?
—
by
The five years begins to run when the lease expires. A safety deposit box will be presumed abandoned after five years have passed from the “date on which the lease or rental period expired.” Your safety deposit box lease will determine whether the lease expires when the rent payment becomes past due or on another…
-
We plan to drill a safety deposit box that has been past due and unclaimed for more than five years. However, the last living joint leaseholder recently came forward to claim the contents. Can we give him the contents of the box, or do we have to remit the contents to the State Treasurer?
—
by
You may give the contents of the safety deposit box to the joint leaseholder. The Uniform Disposition of Unclaimed Property Act requires financial institutions to report and remit abandoned property to the State Treasurer. If contents of a safety deposit box are unclaimed for five years after the leased expired due to nonpayment — which…
-
When a customer stops making payments on a safe deposit box, we send a total of four notices (a past-due notice, a letter at 90 days, a letter at 120 days, and a final letter at 190 days). Are we required to send all four letters, and is this a common practice? We’d like to streamline this process.
—
by
No, you are not required to send those four notices at the intervals you described. Though the OCC has published guidance establishing procedures for drilling safety deposit boxes, neither that agency nor state or federal law prescribes how many delinquency notices to send — or the appropriate intervals at which to send them. In general,…
-
A husband and wife jointly lease a safe deposit box at our bank. They are getting a divorce. Can the husband designate his attorney to open the box with the wife so that the spouses do not have to both be present when the box is opened? The wife has not objected to this arrangement.
—
by
Although both co-lessors appear to have consented to this arrangement, you still should review the underlying safe deposit box agreement to determine whether there are any provisions that might be relevant in this situation (for example, whether the agreement requires that all lessees be present when opening the safe deposit box). We also should note…
-
Can a safe deposit box be leased by a trust? Can a safe deposit box be leased by a business?
—
by
We are not aware of any law that prohibits trusts or business entities from leasing a safe deposit box. However, we note that safe deposit boxes are subject to Customer Identification Program (CIP) regulations, which require you to collect (at a minimum) the name, address and social security or other tax identification number of every…