Originally introduced in February 2017 as a drug and alcohol dependency bill, Illinois H 3806 was amended on May 31, 2018, and would revise the banking provisions in the Illinois Revised Uniform Unclaimed Property Act. If passed, the provisions of the bill would become effective immediately.
Revisions to Unclaimed Property Banking Provisions
Under the proposed Illinois unclaimed property law, dormancy periods for certain types of banking property would change.
Changes to dormancy periods include:
- A reduction from seven years to three years for money orders.
- An increase from three years to five years from the last indication of interest for time deposits.
- An increase from three years to five years for auto-renew time deposits for which an owner has consented to renewal in a record on file with the holder. The dormancy period is triggered only after the date of the last indication of interest following the completion of the initial term of the time deposit and one automatic renewal.
Unclaimed Property Audits of Financial Organizations
Revisions to IL H 3806 also permit the administrator to conduct audits of federally chartered banks, savings banks, or credit unions, at reasonable times and with reasonable notice.
The administrator may adopt administrative rules specifying conditions that constitute “reason to believe” that a financial organization has failed to comply with the Act.
Once the administrator has reason to believe that the financial organization has failed to comply with the Act, they may issue an administrative subpoena requiring the financial organization to make records available for examination and may bring an action seeking judicial enforcement of the subpoena.
IL H 3806 Impact on the Banking Industry
If IL H 3806 passes as amended, financial institutions should take measures to update their unclaimed property reporting policies and procedures to reflect changes in dormancy periods for money orders and time deposits. Failure to do so may result in the generation of past-due property, or the premature escheatment of time deposit property.
Keane will continue to track and monitor activity on IL H 3806 and its impact on the unclaimed property community. We invite you to sign up for our free legislative alerts to receive real-time updates on the latest happenings within the unclaimed property industry.