Topic: Unclaimed Property
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It was recently brought to my attention that our bank has several items that were found in different areas of the bank. They were found on the floor, apparently dropped by the owner, and they include a watch, military medal, etc. They were not associated with a safe deposit box or any particular customer. How can we handle these items?
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In light of the very limited information available, we recommend reporting these items as unclaimed property to the State Treasurer. You also may wish to contact the State Treasurer for some further direction before submitting a report on these items, as your bank will be unable to provide most of the required information (such as…
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Could you direct me to the Illinois Revised Uniform Unclaimed Property Act language that shortens the presumed abandonment period to three years for demand, savings, or time deposit accounts? Also, are there changes regarding gift cards or reloadable cards?
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Demand, Savings and Time Deposit Accounts The Illinois Revised Uniform Unclaimed Property Act (RUUPA), which becomes effective on January 1, 2018, changes the presumed abandonment period for many types of property, including demand, savings and time deposit accounts. The relevant section is copied and linked to in our resources below. Gift Cards The Illinois RUUPA…
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We have a payable on death (POD) account for which the owner died almost five years ago. The owner’s daughter was named as the POD beneficiary. The daughter lives in a nursing home and has not been able to sign a new signature card confirming that she is the account owner. She has not made any transactions on the account and does not hold any other accounts at our bank. Do we need to report the account as abandoned property, since there has not been any activity on the account since the date of the original owner’s death?
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It depends. You are not required to report the POD account as unclaimed property to the Illinois Treasurer provided that your bank creates and maintains documentation confirming the account owner’s indication of interest in the account. The current Illinois unclaimed property law does not treat an account as abandoned if the owner has “indicated an…
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A local law firm sent us a law update describing a recent change to an Illinois unclaimed property law. They say that electronic and paper savings bonds “will be considered abandoned and convert to property of the State of Illinois if the bonds are five years after their extended maturity date.” Will our customers retain ownership of their savings bonds if five years have passed since a bond’s maturity date? Or are they required to turn over matured savings bonds to the state?
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No, your customers are not required to turn over matured savings bonds in their possession to the state. Illinois’ current unclaimed property law — the Uniform Disposition of Unclaimed Property Act — is scheduled to be repealed and replaced by the Illinois Revised Uniform Unclaimed Property Act on January 1, 2018. While the new law…
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We have a safe deposit box that is dormant, but is not yet presumed abandoned. We drilled the box due to the unpaid rental fees and found that it contains a gun. Could we immediately send in the gun for the State Treasurer to handle?
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Yes, you may immediately report the gun and remit it to the State Treasurer, even though the presumed abandonment period for the safe deposit box has not yet passed. The current Illinois unclaimed property law permits a property holder to submit early reports for “property which he has reason to believe will be reportable in…
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We recently inspected the safe deposit boxes of an institution that our bank recently purchased. One box was listed under the bank’s records under the bank’s name, and it contains what apparently are “found” items, including an item of jewelry and bullion. None of the former institution’s employees can tell us where these items came from, or even where or when they were “found.” If we cannot determine the source or ownership of these items, what should we do with them?
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In light of the very limited information available, we recommend reporting these items as unclaimed property to the State Treasurer. You also may wish to contact the State Treasurer for some further direction before submitting a report on these items, as your bank will be unable to provide most of the required information (such as…
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We understand that under the Revised Uniform Unclaimed Property Act effective January 1, 2018, a demand, savings, or time deposit account is presumed abandoned three years after maturity or no contact with us, instead of the current five years. Our current fee schedule states that an account becomes dormant after five years of inactivity, at which point it starts incurring a monthly fee. We do not charge any escheat fees. We will need to change our fee schedule to reflect the new three-year abandonment period. Are we required to notify our customers by sending out a revised fee schedule or disclosures?
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Yes, your bank should notify customers about this change at least thirty calendar days before it takes effect (i.e., by December 2, 2017, which is thirty days before the new law’s effective date of January 1, 2018). Under Regulation DD, a bank must provide at least thirty days advance notice when a change in account…
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Before reporting the contents of a safe deposit box to the State Treasurer as abandoned, we send the accountholder a notice. Does that notice have to be sent by certified mail?
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No, certified mail is not required, unless your account agreement includes such a requirement. However, depending on the timing of your notice, you may be required to use first class mail. The Uniform Disposition of Unclaimed Property Act (Act) requires banks to attempt to notify customers before reporting property as abandoned, but it does not…
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Two years ago, we reported an abandoned safe deposit box to the State Treasurer. Recently, the Treasurer requested that we send the contents ($26,000 in currency) in a cashier’s check. If we comply, do we need to file a currency transaction report (CTR)? FinCEN informed us that we should file a CTR, listing the customer as the “Person on whose behalf transaction was conducted.”
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We agree that your bank should file a CTR, since issuing a cashier’s check constitutes a currency transaction between the bank and your customer, and it involves more than $10,000. There are several exemptions to the CTR filing requirements, including an exemption for currency transactions between banks and state agencies. However, there is no currency…
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Is there a way to get a dormant savings account active again?
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Yes, there are several ways in which a customer can “reactivate” a dormant account. The Illinois Uniform Disposition of Unclaimed Property Act lists several ways in which a customer can prevent their account from being considered inactive. A customer can maintain the active status on one account by increasing or decreasing the funds in any…