Topic: Unclaimed Property
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Do we need to retain our dormancy letters and safe deposit box contracts? Can we store these records electronically?
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Disclaimer: The Electronic Commerce Security Act (ECSA) was repealed and replaced with the Uniform Electronic Transaction Act (UETA), effective June 25, 2021.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. Safe deposit box contracts. We are not aware of any specific legal requirements that apply…
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Are there any problems with charging an “escheat fee” against unclaimed deposit accounts before remitting them to the State Treasurer?
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Generally, Illinois law permits a bank to determine an appropriate dormancy fee in accordance with the bank’s prudent business judgment and safe and sound operating standards, provided that your customer has agreed to the charge in a deposit account agreement or signature card. 205 ILCS 5/5e(b). If an account has been inactive long enough to…
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Can we drill a safe deposit box if rent goes unpaid for twelve months? Our current practice is to wait until the box must be reported to the state as abandoned – after five years – but our safe deposit box agreement authorizes us to forcibly open the box after a six month default and sixty days written notice. We would like to shorten our practice and drill earlier, if possible.
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While the Illinois Uniform Disposition of Unclaimed Property Act requires your bank to report and remit safe deposit box property five years after the lease expires, it does not prevent you from drilling the box before that date. The Act expressly recognizes the practice of drilling safe deposit boxes and selling the property before remitting…