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91_HB1281eng HB1281 Engrossed LRB9100404SMdvC 1 AN ACT regarding unclaimed property. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The State Treasurer Act is amended by adding 5 Sections 0.02, 0.03, 0.04, 0.05, and 0.06 as follows: 6 (15 ILCS 505/0.02 new) 7 Sec. 0.02. Transfer of powers. The rights, powers, 8 duties, and functions vested in the Department of Financial 9 Institutions to administer the Uniform Disposition of 10 Unclaimed Property Act are transferred to the State Treasurer 11 on July 1, 1999; provided, however, that the rights, powers, 12 duties, and functions involving the examination of the 13 records of any person that the State Treasurer has reason to 14 believe has failed to report properly under this Act shall be 15 transferred to the Office of Banks and Real Estate if the 16 person is regulated by the Office of Banks and Real Estate 17 under the Illinois Banking Act, the Corporate Fiduciary Act, 18 the Foreign Banking Office Act, the Illinois Savings and Loan 19 Act of 1985, or the Savings Bank Act and shall be retained by 20 the Department of Financial Institutions if the person is 21 doing business in the State under the supervision of the 22 Department of Financial Institutions, the National Credit 23 Union Administration, the Office of Thrift Supervision, or 24 the Comptroller of the Currency. 25 (15 ILCS 505/0.03 new) 26 Sec. 0.03. Transfer of personnel. 27 (a) Except as provided in subsection (b), personnel 28 employed by the Department of Financial Institutions on June 29 30, 1999 to perform duties pertaining to the administration 30 of the Uniform Disposition of Unclaimed Property Act are HB1281 Engrossed -2- LRB9100404SMdvC 1 transferred to the State Treasurer on July 1, 1999. 2 (b) In the case of a person employed by the Department 3 of Financial Institutions to perform both duties pertaining 4 to the administration of the Uniform Disposition of Unclaimed 5 Property Act and duties pertaining to a function retained by 6 the Department of Financial Institutions, the State 7 Treasurer, in consultation with the Director of Financial 8 Institutions, shall determine whether to transfer the 9 employee to the Office of the State Treasurer; until this 10 determination has been made, the transfer shall not take 11 effect. 12 (c) The rights of State employees, the State, and its 13 agencies under the Personnel Code and applicable collective 14 bargaining agreements and retirement plans are not affected 15 by this amendatory Act of 1999, except that all positions 16 transferred to the State Treasurer shall be subject to the 17 State Treasurer Employment Code effective July 1, 2000. 18 All transferred employees who are members of collective 19 bargaining units shall retain their seniority, continuous 20 service, salary, and accrued benefits. During the pendency 21 of the existing collective bargaining agreement, the rights 22 provided for under that agreement and memoranda and 23 supplements to that agreement, including but not limited to, 24 the rights of employees performing duties pertaining to the 25 administration of the Uniform Disposition of Unclaimed 26 Property Act to positions in other State agencies and the 27 right of employees in other State agencies covered by the 28 agreement to positions performing duties pertaining to the 29 administration of the Uniform Disposition of Unclaimed 30 Property Act, shall not be abridged. 31 The State Treasurer shall continue to honor during their 32 pendency all bargaining agreements in effect at the time of 33 the transfer and to recognize all collective bargaining 34 representatives for the employees who perform or will perform HB1281 Engrossed -3- LRB9100404SMdvC 1 functions transferred by this amendatory Act of 1999. For 2 all purposes with respect to the management of the existing 3 agreement and the negotiation and management of any successor 4 agreements, the State Treasurer shall be deemed to be the 5 employer of employees who perform or will perform functions 6 transferred to the Office of the State Treasurer by this 7 amendatory Act of 1999; provided that the Illinois Department 8 of Central Management Services shall be a party to any 9 grievance or arbitration proceeding held pursuant to the 10 provisions of the collective bargaining agreement which 11 involves the movement of employees from the Office of the 12 State Treasurer to an agency under the jurisdiction of the 13 Governor covered by the agreement. 14 (15 ILCS 505/0.04 new) 15 Sec. 0.04. Transfer of property. 16 (a) Except as provided in subsection (b), all real and 17 personal property, including but not limited to all books, 18 records, and documents, and all unexpended appropriations and 19 pending business pertaining to the administration of the 20 Uniform Disposition of Unclaimed Property Act shall be 21 transferred and delivered to the State Treasurer effective 22 July 1, 1999. 23 (b) In the case of books, records, or documents that 24 pertain both to the administration of the Uniform Disposition 25 of Unclaimed Property Act and to a function retained by the 26 Department of Financial Institutions, the State Treasurer, in 27 consultation with the Director of Financial Institutions, 28 shall determine whether the books, records, or documents 29 shall be transferred, copied, or left with the Department of 30 Financial Institutions; until this determination has been 31 made, the transfer shall not take effect. 32 In the case of property or an unexpended appropriation 33 that pertains both to the administration of the Uniform HB1281 Engrossed -4- LRB9100404SMdvC 1 Disposition of Unclaimed Property Act and to a function 2 retained by the Department of Financial Institutions, the 3 State Treasurer, in consultation with the Director of 4 Financial Institutions, shall determine whether the property 5 or unexpended appropriation shall be transferred, divided, or 6 left with the Department of Financial Institutions; until 7 this determination has been made (and, in the case of an 8 unexpended appropriation, notice of the determination has 9 been filed with the State Comptroller), the transfer shall 10 not take effect. 11 (15 ILCS 505/0.05 new) 12 Sec. 0.05. Rules and standards. 13 (a) The rules and standards of the Department of 14 Financial Institutions that are in effect on June 30, 1999 15 and pertain to the administration of the Uniform Disposition 16 of Unclaimed Property Act shall become the rules and 17 standards of the State Treasurer on July 1, 1999 and shall 18 continue in effect until amended or repealed by the State 19 Treasurer. 20 (b) Any rules pertaining to the administration of the 21 Uniform Disposition of Unclaimed Property Act that have been 22 proposed by the Department of Financial Institutions but have 23 not taken effect or been finally adopted by June 30, 1999 24 shall become proposed rules of the State Treasurer on July 1, 25 1999, and any rulemaking procedures that have already been 26 completed by the Department of Financial Institutions need 27 not be repeated. 28 (c) As soon as practical after July 1, 1999, the State 29 Treasurer shall revise and clarify the rules transferred to 30 it under this amendatory Act of 1999 to reflect the 31 reorganization of rights, powers, duties, and functions 32 effected by this amendatory Act of 1999 using the procedures 33 for recodification of rules available under the Illinois HB1281 Engrossed -5- LRB9100404SMdvC 1 Administrative Procedure Act, except that existing title, 2 part, and section numbering for the affected rules may be 3 retained. 4 (d) As soon as practical after July 1, 1999, the Office 5 of Banks and Real Estate and the Office of the State 6 Treasurer shall jointly promulgate rules to reflect the 7 transfer of examination functions to the Office of Banks and 8 Real Estate under this amendatory Act of 1999 using the 9 procedures available under the Illinois Administrative 10 Procedure Act. 11 (e) As soon as practical after July 1, 1999, the 12 Department of Financial Institutions and the Office of the 13 State Treasurer shall jointly promulgate rules to reflect the 14 retention of examination functions by the Department of 15 Financial Institutions under this amendatory Act of 1999 16 using the procedures available under the Illinois 17 Administrative Procedure Act. 18 (15 ILCS 505/0.06 new) 19 Sec. 0.06. Savings provisions. 20 (a) The rights, powers, duties, and functions 21 transferred to the State Treasurer or the Commissioner of 22 Banks and Real Estate by this amendatory Act of 1999 shall be 23 vested in and exercised by the State Treasurer or the 24 Commissioner of Banks and Real Estate subject to the 25 provisions of this amendatory Act of 1999. An act done by 26 the State Treasurer or the Commissioner of Banks and Real 27 Estate or an officer, employee, or agent of the State 28 Treasurer or the Commissioner of Banks and Real Estate in the 29 exercise of the transferred rights, powers, duties, or 30 functions shall have the same legal effect as if done by the 31 Department of Financial Institutions or an officer, employee, 32 or agent of the Department of Financial Institutions prior to 33 the effective date of this amendatory Act of 1999. HB1281 Engrossed -6- LRB9100404SMdvC 1 (b) The transfer of rights, powers, duties, and 2 functions to the State Treasurer or the Commissioner of Banks 3 and Real Estate under this amendatory Act of 1999 does not 4 invalidate any previous action taken by or in respect to the 5 Department of Financial Institutions or its officers, 6 employees, or agents. References to the Department of 7 Financial Institutions or its officers, employees or agents 8 in any document, contract, agreement, or law shall, in 9 appropriate contexts, be deemed to refer to the State 10 Treasurer or the Commissioner of Banks and Real Estate or the 11 officers, employees, or agents of the State Treasurer or the 12 Commissioner of Banks and Real Estate. 13 (c) The transfer of rights, powers, duties, and 14 functions from the Department of Financial Institutions to 15 the State Treasurer or the Commissioner of Banks and Real 16 Estate under this amendatory Act of 1999 does not affect the 17 rights, obligations, or duties of any other person or entity, 18 including any civil or criminal penalties applicable thereto, 19 arising out of those transferred rights, powers, duties, and 20 functions. 21 (d) With respect to matters that pertain to a right, 22 power, duty, or function transferred to the State Treasurer 23 under this amendatory Act of 1999: 24 (1) Beginning July 1, 1999, any report or notice 25 that was previously required to be made or given by any 26 person to the Department of Financial Institutions or any 27 of its officers, employees, or agents under the Uniform 28 Disposition of Unclaimed Property Act or rules 29 promulgated pursuant to that Act shall be made or given 30 in the same manner to the State Treasurer or his or her 31 appropriate officer, employee, or agent. 32 (2) Beginning July 1, 1999, any document that was 33 previously required to be furnished or served by any 34 person to or upon the Department of Financial HB1281 Engrossed -7- LRB9100404SMdvC 1 Institutions or any of its officers, employees, or agents 2 under the Uniform Disposition of Unclaimed Property Act 3 or rules promulgated pursuant to that Act shall be 4 furnished or served in the same manner to or upon the 5 State Treasurer or his or her appropriate officer, 6 employee, or agent. 7 (e) This amendatory Act of 1999 does not affect any act 8 done, ratified, or canceled, any right occurring or 9 established, or any action or proceeding had or commenced in 10 an administrative, civil, or criminal cause before July 1, 11 1999. Any such action or proceeding that pertains to the 12 Uniform Disposition of Unclaimed Property Act or rules 13 promulgated pursuant to that Act and that is pending on that 14 date may be prosecuted, defended, or continued by the State 15 Treasurer. 16 Section 10. The Financial Institutions Code is amended 17 by adding Section 18.1 as follows: 18 (20 ILCS 1205/18.1 new) 19 Sec. 18.1. Transfer of administration of Uniform 20 Disposition of Unclaimed Property Act to State Treasurer. 21 The rights, powers, duties, and functions vested in the 22 Department of Financial Institutions to administer the 23 Uniform Disposition of Unclaimed Property Act are transferred 24 to the State Treasurer on July 1, 1999 in accordance with 25 Sections 0.02 through 0.06 of the State Treasurer Act; 26 provided, however, that the rights, powers, duties, and 27 functions involving the examination of the records of any 28 person that the State Treasurer has reason to believe has 29 failed to report properly under this Act shall be transferred 30 to the Office of Banks and Real Estate if the person is 31 regulated by the Office of Banks and Real Estate under the 32 Illinois Banking Act, the Corporate Fiduciary Act, the HB1281 Engrossed -8- LRB9100404SMdvC 1 Foreign Banking Office Act, the Illinois Savings and Loan Act 2 of 1985, or the Savings Bank Act and shall be retained by the 3 Department of Financial Institutions if the person is doing 4 business in the State under the supervision of the Department 5 of Financial Institutions, the National Credit Union 6 Administration, the Office of Thrift Supervision, or the 7 Comptroller of the Currency. 8 Section 12. The State Finance Act is amended by changing 9 Section 8.12 as follows: 10 (30 ILCS 105/8.12) (from Ch. 127, par. 144.12) 11 Sec. 8.12. State Pensions Fund. 12 (a) The moneys in the State Pensions Fund shall be used 13 exclusively for the administration of the Uniform Disposition 14 of Unclaimed Property Act and for the payment of a portion of 15 the required State contributions to the designated retirement 16 systems. 17 "Designated retirement systems" means: 18 (1) the State Employees' Retirement System of 19 Illinois; 20 (2) the Teachers' Retirement System of the State of 21 Illinois; 22 (3) the State Universities Retirement System; 23 (4) the Judges Retirement System of Illinois; and 24 (5) the General Assembly Retirement System. 25 (b) Each year the General Assembly may make 26 appropriations from the State Pensions Fund for the 27 administration of the Uniform Disposition of Unclaimed 28 Property Act. 29 Each month, the Commissioner of the Office of Banks and 30 Real Estate shall certify to the State Treasurer the actual 31 expenditures that the Office of Banks and Real Estate 32 incurred conducting unclaimed property examinations under the HB1281 Engrossed -9- LRB9100404SMdvC 1 Uniform Disposition of Unclaimed Property Act during the 2 immediately preceding month. Within a reasonable time 3 following the acceptance of such certification by the State 4 Treasurer, the State Treasurer shall pay from its 5 appropriation from the State Pensions Fund to the Bank and 6 Trust Company Fund and the Savings and Residential Finance 7 Regulatory Fund an amount equal to the expenditures incurred 8 by each Fund for that month. 9 Each month, the Director of Financial Institutions shall 10 certify to the State Treasurer the actual expenditures that 11 the Department of Financial Institutions incurred conducting 12 unclaimed property examinations under the Uniform Disposition 13 of Unclaimed Property Act during the immediately preceding 14 month. Within a reasonable time following the acceptance of 15 such certification by the State Treasurer, the State 16 Treasurer shall pay from its appropriation from the State 17 Pensions Fund to the Financial Institutions Fund and the 18 Credit Union Fund an amount equal to the expenditures 19 incurred by each Fund for that month. 20 (c) Each year the General Assembly shall appropriate a 21 total amount equal to the balance in the State Pensions Fund 22 at the close of business on June 30 of the preceding fiscal 23 year, less $5,000,000, as part of the required State 24 contributions to the designated retirement systems. The 25 amount of the appropriation to each designated retirement 26 system shall constitute a portion of the total appropriation 27 under this subsection for that fiscal year which is the same 28 as that retirement system's portion of the total actuarial 29 reserve deficiency of the systems, as most recently 30 determined by the Bureau of the Budget. 31 (d) The Bureau of the Budget shall determine the 32 individual and total reserve deficiencies of the designated 33 retirement systems. For this purpose, the Bureau of the 34 Budget shall utilize the latest available audit and actuarial HB1281 Engrossed -10- LRB9100404SMdvC 1 reports of each of the retirement systems and the relevant 2 reports and statistics of the Public Employee Pension Fund 3 Division of the Department of Insurance. 4 (e) The changes to this Section made by this amendatory 5 Act of 1994 shall first apply to distributions from the Fund 6 for State fiscal year 1996. 7 (Source: P.A. 87-838; 88-593, eff. 8-22-94.) 8 Section 15. The Illinois Banking Act is amended by 9 changing Sections 48 and 65 as follows: 10 (205 ILCS 5/48) (from Ch. 17, par. 359) 11 Sec. 48. Commissioner's powers; duties. The Commissioner 12 shall have the powers and authority, and is charged with the 13 duties and responsibilities designated in this Act, and a 14 State bank shall not be subject to any other visitorial power 15 other than as authorized by this Act, except those vested in 16 the courts, or upon prior consultation with the Commissioner, 17 a foreign bank regulator with an appropriate supervisory 18 interest in the parent or affiliate of a state bank. In the 19 performance of the Commissioner's duties: 20 (1) The Commissioner shall call for statements from all 21 State banks as provided in Section 47 at least one time 22 during each calendar quarter. 23 (2) (a) The Commissioner, as often as the Commissioner 24 shall deem necessary or proper, and no less frequently than 25 18 months following the preceding examination, shall appoint 26 a suitable person or persons to make an examination of the 27 affairs of every State bank, except that for every eligible 28 State bank, as defined by regulation, the Commissioner in 29 lieu of the examination may accept on an alternating basis 30 the examination made by the eligible State bank's appropriate 31 federal banking agency pursuant to Section 111 of the Federal 32 Deposit Insurance Corporation Improvement Act of 1991, HB1281 Engrossed -11- LRB9100404SMdvC 1 provided the appropriate federal banking agency has made such 2 an examination. A person so appointed shall not be a 3 stockholder or officer or employee of any bank which that 4 person may be directed to examine, and shall have powers to 5 make a thorough examination into all the affairs of the bank 6 and in so doing to examine any of the officers or agents or 7 employees thereof on oath and shall make a full and detailed 8 report of the condition of the bank to the Commissioner. In 9 making the examination the examiners shall include an 10 examination of the affairs of all the affiliates of the bank, 11 as defined in subsection (b) of Section 35.2 of this Act, as 12 shall be necessary to disclose fully the conditions of the 13 affiliates, the relations between the bank and the affiliates 14 and the effect of those relations upon the affairs of the 15 bank, and in connection therewith shall have power to examine 16 any of the officers, directors, agents, or employees of the 17 affiliates on oath. After May 31, 1997, the Commissioner may 18 enter into cooperative agreements with state regulatory 19 authorities of other states to provide for examination of 20 State bank branches in those states, and the Commissioner may 21 accept reports of examinations of State bank branches from 22 those state regulatory authorities. These cooperative 23 agreements may set forth the manner in which the other state 24 regulatory authorities may be compensated for examinations 25 prepared for and submitted to the Commissioner. 26 (b) After May 31, 1997, the Commissioner is authorized 27 to examine, as often as the Commissioner shall deem necessary 28 or proper, branches of out-of-state banks. The Commissioner 29 may establish and may assess fees to be paid to the 30 Commissioner for examinations under this subsection (b). The 31 fees shall be borne by the out-of-state bank, unless the fees 32 are borne by the state regulatory authority that chartered 33 the out-of-state bank, as determined by a cooperative 34 agreement between the Commissioner and the state regulatory HB1281 Engrossed -12- LRB9100404SMdvC 1 authority that chartered the out-of-state bank. 2 (2.5) Whenever any State bank, any subsidiary or 3 affiliate of a State bank, or after May 31, 1997, any branch 4 of an out-of-state bank causes to be performed, by contract 5 or otherwise, any bank services for itself, whether on or off 6 its premises: 7 (a) that performance shall be subject to 8 examination by the Commissioner to the same extent as if 9 services were being performed by the bank or, after May 10 31, 1997, branch of the out-of-state bank itself on its 11 own premises; and 12 (b) the bank or, after May 31, 1997, branch of the 13 out-of-state bank shall notify the Commissioner of the 14 existence of a service relationship. The notification 15 shall be submitted with the first statement of condition 16 (as required by Section 47 of this Act) due after the 17 making of the service contract or the performance of the 18 service, whichever occurs first. The Commissioner shall 19 be notified of each subsequent contract in the same 20 manner. 21 For purposes of this subsection (2.5), the term "bank 22 services" means services such as sorting and posting of 23 checks and deposits, computation and posting of interest and 24 other credits and charges, preparation and mailing of checks, 25 statements, notices, and similar items, or any other 26 clerical, bookkeeping, accounting, statistical, or similar 27 functions performed for a State bank, including but not 28 limited to electronic data processing related to those bank 29 services. 30 (3) The expense of administering this Act, including the 31 expense of the examinations of State banks as provided in 32 this Act, shall to the extent of the amounts resulting from 33 the fees provided for in paragraphs (a), (a-2), and (b) of 34 this subsection (3) be assessed against and borne by the HB1281 Engrossed -13- LRB9100404SMdvC 1 State banks: 2 (a) Each bank shall pay to the Commissioner a Call 3 Report Fee which shall be paid in quarterly installments 4 equal to one-fourth of the sum of the annual fixed fee of 5 $800, plus a variable fee based on the assets shown on 6 the quarterly statement of condition delivered to the 7 Commissioner in accordance with Section 47 for the 8 preceding quarter according to the following schedule: 9 16¢ per $1,000 of the first $5,000,000 of total assets, 10 15¢ per $1,000 of the next $20,000,000 of total assets, 11 13¢ per $1,000 of the next $75,000,000 of total assets, 12 9¢ per $1,000 of the next $400,000,000 of total assets, 13 7¢ per $1,000 of the next $500,000,000 of total assets, 14 and 5¢ per $1,000 of all assets in excess of 15 $1,000,000,000, of the State bank. The Call Report Fee 16 shall be calculated by the Commissioner and billed to the 17 banks for remittance at the time of the quarterly 18 statements of condition provided for in Section 47. The 19 Commissioner may require payment of the fees provided in 20 this Section by an electronic transfer of funds or an 21 automatic debit of an account of each of the State banks. 22 In case more than one examination of any bank is deemed 23 by the Commissioner to be necessary in any examination 24 frequency cycle specified in subsection 2(a) of this 25 Section, and is performed at his direction, the 26 Commissioner may assess a reasonable additional fee to 27 recover the cost of the additional examination; provided, 28 however, that an examination conducted at the request of 29 the State Treasurer pursuant to the Uniform Disposition 30 of Unclaimed Property Act shall not be deemed to be an 31 additional examination under this Section. In lieu of the 32 method and amounts set forth in this paragraph (a) for 33 the calculation of the Call Report Fee, the Commissioner 34 may specify by rule that the Call Report Fees provided by HB1281 Engrossed -14- LRB9100404SMdvC 1 this Section may be assessed semiannually or some other 2 period and may provide in the rule the formula to be used 3 for calculating and assessing the periodic Call Report 4 Fees to be paid by State banks. 5 (a-1) If in the opinion of the Commissioner an 6 emergency exists or appears likely, the Commissioner may 7 assign an examiner or examiners to monitor the affairs of 8 a State bank with whatever frequency he deems 9 appropriate, including but not limited to a daily basis. 10 The reasonable and necessary expenses of the Commissioner 11 during the period of the monitoring shall be borne by the 12 subject bank. The Commissioner shall furnish the State 13 bank a statement of time and expenses if requested to do 14 so within 30 days of the conclusion of the monitoring 15 period. 16 (a-2) On and after January 1, 1990, the reasonable 17 and necessary expenses of the Commissioner during 18 examination of the performance of electronic data 19 processing services under subsection (2.5) shall be borne 20 by the banks for which the services are provided. An 21 amount, based upon a fee structure prescribed by the 22 Commissioner, shall be paid by the banks or, after May 23 31, 1997, branches of out-of-state banks receiving the 24 electronic data processing services along with the Call 25 Report Fee assessed under paragraph (a) of this 26 subsection (3). 27 (a-3) After May 31, 1997, the reasonable and 28 necessary expenses of the Commissioner during examination 29 of the performance of electronic data processing services 30 under subsection (2.5) at or on behalf of branches of 31 out-of-state banks shall be borne by the out-of-state 32 banks, unless those expenses are borne by the state 33 regulatory authorities that chartered the out-of-state 34 banks, as determined by cooperative agreements between HB1281 Engrossed -15- LRB9100404SMdvC 1 the Commissioner and the state regulatory authorities 2 that chartered the out-of-state banks. 3 (b) "Fiscal year" for purposes of this Section 48 4 is defined as a period beginning July 1 of any year and 5 ending June 30 of the next year. The Commissioner shall 6 receive for each fiscal year, commencing with the fiscal 7 year ending June 30, 1987, a contingent fee equal to the 8 lesser of the aggregate of the fees paid by all State 9 banks under paragraph (a) of subsection (3) for that 10 year, or the amount, if any, whereby the aggregate of the 11 administration expenses, as defined in paragraph (c), for 12 that fiscal year exceeds the sum of the aggregate of the 13 fees payable by all State banks for that year under 14 paragraph (a) of subsection (3), plus any amounts 15 transferred into the Bank and Trust Company Fund from the 16 State Pensions Fund for that year, plus all other amounts 17 collected by the Commissioner for that year under any 18 other provision of this Act, plus the aggregate of all 19 fees collected for that year by the Commissioner under 20 the Corporate Fiduciary Act, excluding the receivership 21 fees provided for in Section 5-10 of the Corporate 22 Fiduciary Act, and the Foreign Banking Office Act. The 23 aggregate amount of the contingent fee thus arrived at 24 for any fiscal year shall be apportioned amongst, 25 assessed upon, and paid by the State banks and foreign 26 banking corporations, respectively, in the same 27 proportion that the fee of each under paragraph (a) of 28 subsection (3), respectively, for that year bears to the 29 aggregate for that year of the fees collected under 30 paragraph (a) of subsection (3). The aggregate amount of 31 the contingent fee, and the portion thereof to be 32 assessed upon each State bank and foreign banking 33 corporation, respectively, shall be determined by the 34 Commissioner and shall be paid by each, respectively, HB1281 Engrossed -16- LRB9100404SMdvC 1 within 120 days of the close of the period for which the 2 contingent fee is computed and is payable, and the 3 Commissioner shall give 20 days advance notice of the 4 amount of the contingent fee payable by the State bank 5 and of the date fixed by the Commissioner for payment of 6 the fee. 7 (c) The "administration expenses" for any fiscal 8 year shall mean the ordinary and contingent expenses for 9 that year incident to making the examinations provided 10 for by, and for otherwise administering, this Act, the 11 Corporate Fiduciary Act, excluding the expenses paid from 12 the Corporate Fiduciary Receivership account in the Bank 13 and Trust Company Fund, the Foreign Banking Office Act, 14 the Electronic Fund Transfer Act, and the Illinois Bank 15 Examiners' Education Foundation Act, including all 16 salaries and other compensation paid for personal 17 services rendered for the State by officers or employees 18 of the State, including the Commissioner and the Deputy 19 Commissioners, all expenditures for telephone and 20 telegraph charges, postage and postal charges, office 21 stationery, supplies and services, and office furniture 22 and equipment, including typewriters and copying and 23 duplicating machines and filing equipment, surety bond 24 premiums, and travel expenses of those officers and 25 employees, employees, expenditures or charges for the 26 acquisition, enlargement or improvement of, or for the 27 use of, any office space, building, or structure, or 28 expenditures for the maintenance thereof or for 29 furnishing heat, light, or power with respect thereto, 30 all to the extent that those expenditures are directly 31 incidental to such examinations or administration. The 32 Commissioner shall not be required by paragraphs (c) or 33 (d-1) of this subsection (3) to maintain in any fiscal 34 year's budget appropriated reserves for accrued vacation HB1281 Engrossed -17- LRB9100404SMdvC 1 and accrued sick leave that is required to be paid to 2 employees of the Commissioner upon termination of their 3 service with the Commissioner in an amount that is more 4 than is reasonably anticipated to be necessary for any 5 anticipated turnover in employees, whether due to normal 6 attrition or due to layoffs, terminations, or 7 resignations. 8 (d) The aggregate of all fees collected by the 9 Commissioner under this Act, the Corporate Fiduciary Act, 10 or the Foreign Banking Office Act on and after July 1, 11 1979, shall be paid promptly after receipt of the same, 12 accompanied by a detailed statement thereof, into the 13 State treasury and shall be set apart in a special fund 14 to be known as the "Bank and Trust Company Fund", except 15 as provided in paragraph (c) of subsection (11) of this 16 Section. The amount from time to time deposited into the 17 Bank and Trust Company Fund shall be used to offset the 18 ordinary administrative expenses of the Commissioner of 19 Banks and Real Estate as defined in this Section. Nothing 20 in this amendatory Act of 1979 shall prevent continuing 21 the practice of paying expenses involving salaries, 22 retirement, social security, and State-paid insurance 23 premiums of State officers by appropriations from the 24 General Revenue Fund. However, the General Revenue Fund 25 shall be reimbursed for those payments made on and after 26 July 1, 1979, by an annual transfer of funds from the 27 Bank and Trust Company Fund. 28 (d-1) Adequate funds shall be available in the Bank 29 and Trust Company Fund to permit the timely payment of 30 administration expenses. In each fiscal year the total 31 administration expenses shall be deducted from the total 32 fees collected by the Commissioner and the remainder 33 transferred into the Cash Flow Reserve Account, unless 34 the balance of the Cash Flow Reserve Account prior to the HB1281 Engrossed -18- LRB9100404SMdvC 1 transfer equals or exceeds one-fourth of the total 2 initial appropriations from the Bank and Trust Company 3 Fund for the subsequent year, in which case the remainder 4 shall be credited to State banks and foreign banking 5 corporations and applied against their fees for the 6 subsequent year. The amount credited to each State bank 7 and foreign banking corporation shall be in the same 8 proportion as the Call Report Fees paid by each for the 9 year bear to the total Call Report Fees collected for the 10 year. If, after a transfer to the Cash Flow Reserve 11 Account is made or if no remainder is available for 12 transfer, the balance of the Cash Flow Reserve Account is 13 less than one-fourth of the total initial appropriations 14 for the subsequent year and the amount transferred is 15 less than 5% of the total Call Report Fees for the year, 16 additional amounts needed to make the transfer equal to 17 5% of the total Call Report Fees for the year shall be 18 apportioned amongst, assessed upon, and paid by the State 19 banks and foreign banking corporations in the same 20 proportion that the Call Report Fees of each, 21 respectively, for the year bear to the total Call Report 22 Fees collected for the year. The additional amounts 23 assessed shall be transferred into the Cash Flow Reserve 24 Account. For purposes of this paragraph (d-1), the 25 calculation of the fees collected by the Commissioner 26 shall exclude the receivership fees provided for in 27 Section 5-10 of the Corporate Fiduciary Act. 28 (e) The Commissioner may upon request certify to 29 any public record in his keeping and shall have authority 30 to levy a reasonable charge for issuing certifications of 31 any public record in his keeping. 32 (f) In addition to fees authorized elsewhere in 33 this Act, the Commissioner may, in connection with a 34 review, approval, or provision of a service, levy a HB1281 Engrossed -19- LRB9100404SMdvC 1 reasonable charge to recover the cost of the review, 2 approval, or service. 3 (4) Nothing contained in this Act shall be construed to 4 limit the obligation relative to examinations and reports of 5 any State bank, deposits in which are to any extent insured 6 by the United States or any agency thereof, nor to limit in 7 any way the powers of the Commissioner with reference to 8 examinations and reports of that bank. 9 (5) The nature and condition of the assets in or 10 investment of any bonus, pension, or profit sharing plan for 11 officers or employees of every State bank or, after May 31, 12 1997, branch of an out-of-state bank shall be deemed to be 13 included in the affairs of that State bank or branch of an 14 out-of-state bank subject to examination by the Commissioner 15 under the provisions of subsection (2) of this Section, and 16 if the Commissioner shall find from an examination that the 17 condition of or operation of the investments or assets of the 18 plan is unlawful, fraudulent, or unsafe, or that any trustee 19 has abused his trust, the Commissioner shall, if the 20 situation so found by the Commissioner shall not be corrected 21 to his satisfaction within 60 days after the Commissioner has 22 given notice to the board of directors of the State bank or 23 out-of-state bank of his findings, report the facts to the 24 Attorney General who shall thereupon institute proceedings 25 against the State bank or out-of-state bank, the board of 26 directors thereof, or the trustees under such plan as the 27 nature of the case may require. 28 (6) The Commissioner shall have the power: 29 (a) To promulgate reasonable rules for the purpose 30 of administering the provisions of this Act. 31 (b) To issue orders for the purpose of 32 administering the provisions of this Act and any rule 33 promulgated in accordance with this Act. 34 (c) To appoint hearing officers to execute any of HB1281 Engrossed -20- LRB9100404SMdvC 1 the powers granted to the Commissioner under this Section 2 for the purpose of administering this Act and any rule 3 promulgated in accordance with this Act. 4 (d) To subpoena witnesses, to compel their 5 attendance, to administer an oath, to examine any person 6 under oath, and to require the production of any relevant 7 books, papers, accounts, and documents in the course of 8 and pursuant to any investigation being conducted, or any 9 action being taken, by the Commissioner in respect of any 10 matter relating to the duties imposed upon, or the powers 11 vested in, the Commissioner under the provisions of this 12 Act or any rule promulgated in accordance with this Act. 13 (e) To conduct hearings. 14 (7) Whenever, in the opinion of the Commissioner, any 15 director, officer, employee, or agent of a State bank or, 16 after May 31, 1997, of any branch of an out-of-state bank 17 shall have violated any law, rule, or order relating to that 18 bank or shall have engaged in an unsafe or unsound practice 19 in conducting the business of that bank or shall have 20 violated any law or engaged or participated in any unsafe or 21 unsound practice in connection with any financial institution 22 or other business entity such that the character and fitness 23 of the director, officer, employee, or agent does not assure 24 reasonable promise of safe and sound operation of the State 25 bank, the Commissioner may issue an order of removal. If, in 26 the opinion of the Commissioner, any former director, 27 officer, employee, or agent of a State bank, prior to the 28 termination of his or her service with that bank, violated 29 any law, rule, or order relating to that State bank or 30 engaged in an unsafe or unsound practice in conducting the 31 business of that bank or violated any law or engaged or 32 participated in any unsafe or unsound practice in connection 33 with any financial institution or other business entity such 34 that the character and fitness of the director, officer, HB1281 Engrossed -21- LRB9100404SMdvC 1 employee, or agent would not have assured reasonable promise 2 of safe and sound operation of the State bank, the 3 Commissioner may issue an order prohibiting that person from 4 further service with a bank as a director, officer, employee, 5 or agent. An order issued pursuant to this subsection shall 6 be served upon the director, officer, employee, or agent. A 7 copy of the order shall be sent to each director of the bank 8 affected by registered mail. The person affected by the 9 action may request a hearing before the State Banking Board 10 within 10 days after receipt of the order of removal. The 11 hearing shall be held by the Board within 30 days after the 12 request has been received by the Board. The Board shall make 13 a determination approving, modifying, or disapproving the 14 order of the Commissioner as its final administrative 15 decision. If a hearing is held by the Board, the Board shall 16 make its determination within 60 days from the conclusion of 17 the hearing. Any person affected by a decision of the Board 18 under this subsection (7) of Section 48 of this Act may have 19 the decision reviewed only under and in accordance with the 20 Administrative Review Law and the rules adopted pursuant 21 thereto. A copy of the order shall also be served upon the 22 bank of which he is a director, officer, employee, or agent, 23 whereupon he shall cease to be a director, officer, employee, 24 or agent of that bank. The Commissioner may institute a 25 civil action against the director, officer, or agent of the 26 State bank or, after May 31, 1997, of the branch of the 27 out-of-state bank against whom any order provided for by this 28 subsection (7) of this Section 48 has been issued, and 29 against the State bank or, after May 31, 1997, out-of-state 30 bank, to enforce compliance with or to enjoin any violation 31 of the terms of the order. Any person who has been the 32 subject of an order of removal or an order of prohibition 33 issued by the Commissioner under this subsection or Section 34 5-6 of the Corporate Fiduciary Act may not thereafter serve HB1281 Engrossed -22- LRB9100404SMdvC 1 as director, officer, employee, or agent of any State bank or 2 of any branch of any out-of-state bank, or of any corporate 3 fiduciary, as defined in Section 1-5.05 of the Corporate 4 Fiduciary Act, or of any other entity that is subject to 5 licensure or regulation by the Commissioner or the Office of 6 Banks and Real Estate unless the Commissioner has granted 7 prior approval in writing. 8 (8) The Commissioner may impose civil penalties of up to 9 $10,000 against any person for each violation of any 10 provision of this Act, any rule promulgated in accordance 11 with this Act, any order of the Commissioner, or any other 12 action which in the Commissioner's discretion is an unsafe or 13 unsound banking practice. 14 (9) The Commissioner may impose civil penalties of up to 15 $100 against any person for the first failure to comply with 16 reporting requirements set forth in the report of examination 17 of the bank and up to $200 for the second and subsequent 18 failures to comply with those reporting requirements. 19 (10) All final administrative decisions of the 20 Commissioner hereunder shall be subject to judicial review 21 pursuant to the provisions of the Administrative Review Law. 22 For matters involving administrative review, venue shall be 23 in either Sangamon County or Cook County. 24 (11) The endowment fund for the Illinois Bank Examiners' 25 Education Foundation shall be administered as follows: 26 (a) (Blank). 27 (b) The Foundation is empowered to receive 28 voluntary contributions, gifts, grants, bequests, and 29 donations on behalf of the Illinois Bank Examiners' 30 Education Foundation from national banks and other 31 persons for the purpose of funding the endowment of the 32 Illinois Bank Examiners' Education Foundation. 33 (c) The aggregate of all special educational fees 34 collected by the Commissioner and property received by HB1281 Engrossed -23- LRB9100404SMdvC 1 the Commissioner on behalf of the Illinois Bank 2 Examiners' Education Foundation under this subsection 3 (11) on or after June 30, 1986, shall be either (i) 4 promptly paid after receipt of the same, accompanied by a 5 detailed statement thereof, into the State Treasury and 6 shall be set apart in a special fund to be known as "The 7 Illinois Bank Examiners' Education Fund" to be invested 8 by either the Treasurer of the State of Illinois in the 9 Public Treasurers' Investment Pool or in any other 10 investment he is authorized to make or by the Illinois 11 State Board of Investment as the board of trustees of the 12 Illinois Bank Examiners' Education Foundation may direct 13 or (ii) deposited into an account maintained in a 14 commercial bank or corporate fiduciary in the name of the 15 Illinois Bank Examiners' Education Foundation pursuant to 16 the order and direction of the Board of Trustees of the 17 Illinois Bank Examiners' Education Foundation. 18 (12) (Blank). 19 (Source: P.A. 89-208, eff. 9-29-95; 89-317, eff. 8-11-95; 20 89-508, eff. 7-3-96; 89-567, eff. 7-26-96; 89-626, eff. 21 8-9-96; 90-14, eff. 7-1-97; 90-301, eff. 8-1-97; 90-665, eff. 22 7-30-98.) 23 (205 ILCS 5/65) (from Ch. 17, par. 377) 24 Sec. 65. Dividends; dissolution. From time to time 25 during a receivership other than a receivership conducted by 26 the Federal Deposit Insurance Corporation, the Commissioner 27 shall make and pay from monies of the bank a ratable dividend 28 on all claims as may be proved to his or her satisfaction or 29 adjudicated by the court. Claims so proven or adjudicated 30 shall bear interest at the rate of 3% per annum from the date 31 of the appointment of the receiver to the date of payment, 32 but all dividends on a claim shall be applied first to 33 principal. In computing the amount of any dividend to be HB1281 Engrossed -24- LRB9100404SMdvC 1 paid, if the Commissioner deems it desirable in the interests 2 of economy of administration and to the interest of the bank 3 and its creditors, he or she may pay up to the amount of $10 4 of each claim or unpaid portion thereof in full. As the 5 proceeds of the assets of the bank are collected in the 6 course of liquidation, the Commissioner shall make and pay 7 further dividends on all claims previously proven or 8 adjudicated. After one year from the entry of a judgment of 9 dissolution, all unclaimed dividends shall be remitted to the 10 State TreasurerDirector of Financial Institutionsin 11 accordance with the "Uniform Disposition of Unclaimed 12 Property Act", as now or hereafter amended, together with a 13 list of all unpaid claimants, their last known addresses and 14 the amounts unpaid. 15 (Source: P.A. 89-364, eff. 8-18-95.) 16 Section 17. The Illinois Credit Union Act is amended by 17 changing Section 62 as follows: 18 (205 ILCS 305/62) (from Ch. 17, par. 4463) 19 Sec. 62. Liquidation. (1) A credit union may elect to 20 dissolve voluntarily and liquidate its affairs in the manner 21 prescribed in this Section. 22 (2) The Board of Directors shall adopt a resolution 23 recommending the credit union be dissolved voluntarily, and 24 directing that the question of liquidating be submitted to 25 the members. 26 (3) Within 10 days after the Board of Directors decides 27 to submit the question of liquidation to the members, the 28 Chairman or President shall notify the Director thereof, in 29 writing, setting forth the reasons for the proposed action. 30 Within 10 days after the members act on the question of 31 liquidation, the Chairman or President shall notify the 32 Director, in writing, as to whether or not the members HB1281 Engrossed -25- LRB9100404SMdvC 1 approved the proposed liquidation. The Director then must 2 determine whether this Section has been complied with and if 3 his decision is favorable, he shall prepare a certificate to 4 the effect that this Section has been complied with, a copy 5 of which will be retained by the Department and the other 6 copy forwarded to the credit union. The certificate must be 7 filed with the recorder or if there is no recorder, in the 8 office of the County Clerk of the County or Counties in which 9 the credit union is operating, whereupon the credit union 10 must cease operations except for the purpose of its 11 liquidation. 12 (4) As soon as the Board of Directors passes a 13 resolution to submit the question of liquidation to the 14 members, payment on shares, withdrawal of shares, making any 15 transfer of shares to loans and interest, making investments 16 of any kind and granting loans shall be suspended pending 17 action by members. On approval by the members of such 18 proposal, all such operations shall be permanently 19 discontinued. The necessary expenses of operating shall, 20 however, continue to be paid on authorization of the Board of 21 Directors or the Liquidating Agent during the period of 22 liquidation. 23 (5) For a credit union to enter voluntary liquidation, 24 it must be approved by affirmative vote of the members owning 25 a majority of the shares entitled to vote, in person or by 26 proxy, at a regular or special meeting of the members. 27 Notice, in writing, shall be given to each member, by first 28 class mail, at least 10 days prior to such meeting. If 29 liquidation is approved, the Board of Directors shall appoint 30 a Liquidating Agent for the purpose of conserving and 31 collecting the assets, closing the affairs of the credit 32 union and distributing the assets as required by this Act. 33 (6) A liquidating credit union shall continue in 34 existence for the purpose of discharging its debts, HB1281 Engrossed -26- LRB9100404SMdvC 1 collecting and distributing its assets, and doing all acts 2 required in order to terminate its operations and may sue and 3 be sued for the purpose of enforcing such debts and 4 obligations until its affairs are fully adjusted. 5 (7) Subject to such rules and regulations as the 6 Director may promulgate, the Liquidating Agent shall use the 7 assets of the credit union to pay; first, expenses incidental 8 to liquidating including any surety bond that may be 9 required; then, liabilities of the credit union; then special 10 classes of shares. The remaining assets shall then be 11 distributed to the members proportionately to the dollar 12 value of the shares held by each member in relation to the 13 total dollar value of all shares outstanding as of the date 14 the dissolution was voted. 15 (8) As soon as the Liquidating Agent determines that all 16 assets as to which there is a reasonable expectancy of sale 17 or transfer have been liquidated and distributed as set forth 18 in this Section, he shall execute a Certificate of 19 Dissolution on a form prescribed by the Department and file 20 the same, together with all pertinent books and records of 21 the liquidating credit union with the Department, whereupon 22 such credit union shall be dissolved. The Liquidating Agent 23 must, within 3 years after issuance of a certificate by the 24 Director referred to in Subsection (3) of this Section, 25 discharge the debts of the credit union, collect and 26 distribute its assets and do all other acts required to wind 27 up its business. 28 (9) If the Director determines that the Liquidating 29 Agent has failed to make reasonable progress in the 30 liquidating of the credit union's affairs and distribution of 31 its assets or has violated this Act, the Director may take 32 possession and control of the credit union and remove the 33 Liquidating Agent and appoint a Liquidating Agent to complete 34 the liquidation under his direction and control. The HB1281 Engrossed -27- LRB9100404SMdvC 1 Director shall fill any vacancy caused by the resignation, 2 death, illness, removal, desertion or incapacity to function 3 of the Liquidating Agent. 4 (10) Any funds representing unclaimed dividends and 5 shares in liquidation and remaining in the hands of the Board 6 of Directors or the Liquidating Agent at the end of the 7 liquidation must be deposited by them, together with all 8 books and papers of the credit union, with theDepartment.9Such funds must be deposited by the Department with theState 10 Treasurer in compliance with the Uniform Disposition of 11 Unclaimed Property Act, approved August 17, 1961, as amended. 12 (Source: P.A. 83-358.) 13 Section 18. The Currency Exchange Act is amended by 14 changing Section 19.3 as follows: 15 (205 ILCS 405/19.3) (from Ch. 17, par. 4838) 16 Sec. 19.3. (A) The General Assembly hereby finds and 17 declares: community currency exchanges and ambulatory 18 currency exchanges provide important and vital services to 19 Illinois citizens. In so doing, they transact extensive 20 business involving check cashing and the writing of money 21 orders in communities in which banking services are generally 22 unavailable. Customers of currency exchanges who receive 23 these services must be protected from being charged 24 unreasonable and unconscionable rates for cashing checks and 25 purchasing money orders. The Illinois Department of 26 Financial Institutions has the responsibility for regulating 27 the operations of currency exchanges and has the expertise to 28 determine reasonable maximum rates to be charged for check 29 cashing and money order purchases. Therefore, it is in the 30 public interest, convenience, welfare and good to have the 31 Department establish reasonable maximum rate schedules for 32 check cashing and the issuance of money orders and to require HB1281 Engrossed -28- LRB9100404SMdvC 1 community and ambulatory currency exchanges to prominently 2 display to the public the fees charged for all services. The 3 Director shall review, each year, the cost of operation of 4 the Currency Exchange Division and the revenue generated from 5 currency exchange examinations and report to the General 6 Assembly if the need exists for an increase in the fees 7 mandated by this Act to maintain the Currency Exchange 8 Division at a fiscally self-sufficient level. The Director 9 shall include in such report the total amount of funds 10 remitted to the State and delivered to the State Treasurer by 11 currency exchanges pursuant to the Uniform Disposition of 12 Unclaimed Property Act. 13 (B) The Director shall, by rules adopted in accordance 14 with the Illinois Administrative Procedure Act, expeditiously 15 formulate and issue schedules of reasonable maximum rates 16 which can be charged for check cashing and writing of money 17 orders by community currency exchanges and ambulatory 18 currency exchanges. 19 (1) In determining the maximum rate schedules for 20 the purposes of this Section the Director shall take into 21 account: 22 (a) Rates charged in the past for the cashing 23 of checks and the issuance of money orders by 24 community and ambulatory currency exchanges. 25 (b) Rates charged by banks or other business 26 entities for rendering the same or similar services 27 and the factors upon which those rates are based. 28 (c) The income, cost and expense of the 29 operation of currency exchanges. 30 (d) Rates charged by currency exchanges or 31 other similar entities located in other states for 32 the same or similar services and the factors upon 33 which those rates are based. 34 (e) Rates charged by the United States Postal HB1281 Engrossed -29- LRB9100404SMdvC 1 Service for the issuing of money orders and the 2 factors upon which those rates are based. 3 (f) A reasonable profit for a currency 4 exchange operation. 5 (2) (a) The schedule of reasonable maximum rates 6 established pursuant to this Section may be modified by 7 the Director from time to time pursuant to rules adopted 8 in accordance with the Illinois Administrative Procedure 9 Act. 10 (b) Upon the filing of a verified petition setting 11 forth allegations demonstrating reasonable cause to 12 believe that the schedule of maximum rates previously 13 issued and promulgated should be adjusted, the Director 14 shall expeditiously: 15 (i) reject the petition if it fails to 16 demonstrate reasonable cause to believe that an 17 adjustment is necessary; or 18 (ii) conduct such hearings, in accordance with 19 this Section, as may be necessary to determine 20 whether the petition should be granted in whole or 21 in part. 22 (c) No petition may be filed pursuant to 23 subparagraph (a) of paragraph (2) of subsection (B) 24 unless: 25 (i) at least nine months have expired since 26 the last promulgation of schedules of maximum rates; 27 and 28 (ii) at least one-fourth of all community 29 currency exchange licensees join in a petition or, 30 in the case of ambulatory currency exchanges, a 31 licensee or licensees authorized to serve at least 32 100 locations join in a petition. 33 (3) Any currency exchange may charge lower fees than 34 those of the applicable maximum fee schedule after filing HB1281 Engrossed -30- LRB9100404SMdvC 1 with the Director a schedule of fees it proposes to use. 2 (Source: P.A. 88-45.) 3 Section 20. The Corporate Fiduciary Act is amended by 4 changing Section 6-14 as follows: 5 (205 ILCS 620/6-14) (from Ch. 17, par. 1556-14) 6 Sec. 6-14. From time to time during receivership the 7 Commissioner shall make and pay from monies of the corporate 8 fiduciary a ratable dividend on all claims as may be proved 9 to his or her satisfaction or adjudicated by the court. 10 After one year from the entry of a judgment of dissolution, 11 all unclaimed dividends shall be remitted to the State 12 TreasurerDirector of Financial Institutionsin accordance 13 with the Uniform Disposition of Unclaimed Property Act, as 14 now or hereafter amended, together with a list of all unpaid 15 claimants, their last known addresses and the amounts unpaid. 16 (Source: P.A. 85-858.) 17 Section 25. The Illinois Insurance Code is amended by 18 changing Section 210 as follows: 19 (215 ILCS 5/210) (from Ch. 73, par. 822) 20 Sec. 210. Distribution of assets; priorities; unpaid 21 dividends. 22 (1) Any time after the last day fixed for the filing of 23 proofs of claims in the liquidation of a company, the court 24 may, upon the application of the Director authorize him to 25 declare out of the funds remaining in his hands, one or more 26 dividends upon all claims allowed in accordance with the 27 priorities established in Section 205. 28 (2) Where there has been no adjudication of insolvency, 29 the Director shall pay all allowed claims in full in 30 accordance with the priorities set forth in Section 205. HB1281 Engrossed -31- LRB9100404SMdvC 1 The director shall not be chargeable for any assets so 2 distributed to any claimant who has failed to file a proper 3 proof of claim before such distribution has been made. 4 (3) When subsequent to an adjudication of insolvency, 5 pursuant to Section 208, a surplus is found to exist after 6 the payment in full of all allowed claims falling within the 7 priorities set forth in paragraphs (a),(b),(c), (d), (e), (f) 8 and (g) of subsection (1) of Section 205 and which have been 9 duly filed prior to the last date fixed for the filing 10 thereof, and after the setting aside of a reserve for all 11 additional costs and expenses of the proceeding, the court 12 shall set a new date for the filing of claims. After the 13 expiration of the new date, all allowed claims filed on or 14 before said new date together with all previously allowed 15 claims falling within the priorities set forth in paragraphs 16 (h) and (i) of subsection (1) of Section 205 shall be paid in 17 accordance with the priorities set forth in Section 205. 18 (4) Dividends remaining unclaimed or unpaid in the hands 19 of the Director for 6 months after the final order of 20 distribution may be by him deposited in one or more savings 21 and loan associations, State or national banks, trust 22 companies or savings banks to the credit of the Director, 23 whomsoever he may be, in trust for the person entitled 24 thereto, but no such person shall be entitled to any interest 25 upon such deposit. All such deposits shall be entitled to 26 priority of payment in case of the insolvency or voluntary or 27 involuntary liquidation of the depositary on an equality with 28 any other priority given by the banking law. Any such funds 29 together with interest, if any, paid or credited thereon, 30 remaining and unclaimed in the hands of the Director in Trust 31 after 2 years shall be presumed abandoned and reported and 32 delivered to the State TreasurerDirector of Financial33Institutionsand become subject to the provisions of the 34 Uniform Disposition of Unclaimed Property Act. HB1281 Engrossed -32- LRB9100404SMdvC 1 (Source: P.A. 88-297; 89-206, eff. 7-21-95.) 2 Section 30. The Probate Act of 1975 is amended by 3 changing Sections 2-1 and 2-2 as follows: 4 (755 ILCS 5/2-1) (from Ch. 110 1/2, par. 2-1) 5 Sec. 2-1. Rules of descent and distribution. The 6 intestate real and personal estate of a resident decedent and 7 the intestate real estate in this State of a nonresident 8 decedent, after all just claims against his estate are fully 9 paid, descends and shall be distributed as follows: 10 (a) If there is a surviving spouse and also a descendant 11 of the decedent: 1/2 of the entire estate to the surviving 12 spouse and 1/2 to the decedent's descendants per stirpes. 13 (b) If there is no surviving spouse but a descendant of 14 the decedent: the entire estate to the decedent's 15 descendants per stirpes. 16 (c) If there is a surviving spouse but no descendant of 17 the decedent: the entire estate to the surviving spouse. 18 (d) If there is no surviving spouse or descendant but a 19 parent, brother, sister or descendant of a brother or sister 20 of the decedent: the entire estate to the parents, brothers 21 and sisters of the decedent in equal parts, allowing to the 22 surviving parent if one is dead a double portion and to the 23 descendants of a deceased brother or sister per stirpes the 24 portion which the deceased brother or sister would have taken 25 if living. 26 (e) If there is no surviving spouse, descendant, parent, 27 brother, sister or descendant of a brother or sister of the 28 decedent but a grandparent or descendant of a grandparent of 29 the decedent: (1) 1/2 of the entire estate to the decedent's 30 maternal grandparents in equal parts or to the survivor of 31 them, or if there is none surviving, to their descendants per 32 stirpes, and (2) 1/2 of the entire estate to the decedent's HB1281 Engrossed -33- LRB9100404SMdvC 1 paternal grandparents in equal parts or to the survivor of 2 them, or if there is none surviving, to their descendants per 3 stirpes. If there is no surviving paternal grandparent or 4 descendant of a paternal grandparent, but a maternal 5 grandparent or descendant of a maternal grandparent of the 6 decedent: the entire estate to the decedent's maternal 7 grandparents in equal parts or to the survivor of them, or if 8 there is none surviving, to their descendants per stirpes. If 9 there is no surviving maternal grandparent or descendant of a 10 maternal grandparent, but a paternal grandparent or 11 descendant of a paternal grandparent of the decedent: the 12 entire estate to the decedent's paternal grandparents in 13 equal parts or to the survivor of them, or if there is none 14 surviving, to their descendants per stirpes. 15 (f) If there is no surviving spouse, descendant, parent, 16 brother, sister, descendant of a brother or sister or 17 grandparent or descendant of a grandparent of the decedent: 18 (1) 1/2 of the entire estate to the decedent's maternal 19 great-grandparents in equal parts or to the survivor of them, 20 or if there is none surviving, to their descendants per 21 stirpes, and (2) 1/2 of the entire estate to the decedent's 22 paternal great-grandparents in equal parts or to the survivor 23 of them, or if there is none surviving, to their descendants 24 per stirpes. If there is no surviving paternal 25 great-grandparent or descendant of a paternal 26 great-grandparent, but a maternal great-grandparent or 27 descendant of a maternal great-grandparent of the decedent: 28 the entire estate to the decedent's maternal 29 great-grandparents in equal parts or to the survivor of them, 30 or if there is none surviving, to their descendants per 31 stirpes. If there is no surviving maternal great-grandparent 32 or descendant of a maternal great-grandparent, but a paternal 33 great-grandparent or descendant of a paternal 34 great-grandparent of the decedent: the entire estate to the HB1281 Engrossed -34- LRB9100404SMdvC 1 decedent's paternal great-grandparents in equal parts or to 2 the survivor of them, or if there is none surviving, to their 3 descendants per stirpes. 4 (g) If there is no surviving spouse, descendant, parent, 5 brother, sister, descendant of a brother or sister, 6 grandparent, descendant of a grandparent, great-grandparent 7 or descendant of a great-grandparent of the decedent: the 8 entire estate in equal parts to the nearest kindred of the 9 decedent in equal degree (computing by the rules of the civil 10 law) and without representation. 11 (h) If there is no surviving spouse and no known kindred 12 of the decedent: the real estate escheats to the county in 13 which it is located; the personal estate physically located 14 within this State and the personal estate physically located 15 or held outside this State which is the subject of ancillary 16 administration of an estate being administered within this 17 State escheats to the county of which the decedent was a 18 resident, or, if the decedent was not a resident of this 19 State, to the county in which it is located; all other 20 personal property of the decedent of every class and 21 character, wherever situate, or the proceeds thereof, shall 22 escheat to this State and be delivered to the State Treasurer 23Director of Financial Institutions of the Statepursuant to 24 the Uniform Disposition of Unclaimed Property Act. 25 In no case is there any distinction between the kindred 26 of the whole and the half blood. 27 (Source: P.A. 81-400.) 28 (755 ILCS 5/2-2) (from Ch. 110 1/2, par. 2-2) 29 Sec. 2-2. Illegitimates. The intestate real and 30 personal estate of a resident decedent who was illegitimate 31 at the time of death and the intestate real estate in this 32 State of a nonresident decedent who was illegitimate at the 33 time of death, after all just claims against his estate are HB1281 Engrossed -35- LRB9100404SMdvC 1 fully paid, descends and shall be distributed as provided in 2 Section 2-1, subject to Section 2-6.5 of this Act, if both 3 parents are eligible parents. As used in this Section, 4 "eligible parent" means a parent of the decedent who, during 5 the decedent's lifetime, acknowledged the decedent as the 6 parent's child, established a parental relationship with the 7 decedent, and supported the decedent as the parent's child. 8 "Eligible parents" who are in arrears of in excess of one 9 year's child support obligations shall not receive any 10 property benefit or other interest of the decedent unless and 11 until a court of competent jurisdiction makes a determination 12 as to the effect on the deceased of the arrearage and allows 13 a reduced benefit. In no event shall the reduction of the 14 benefit or other interest be less than the amount of child 15 support owed for the support of the decedent at the time of 16 death. The court's considerations shall include but are not 17 limited to the considerations in subsections (1) through (3) 18 of Section 2-6.5 of this Act. 19 If neither parent is an eligible parent, the intestate 20 real and personal estate of a resident decedent who was 21 illegitimate at the time of death and the intestate real 22 estate in this State of a nonresident decedent who was 23 illegitimate at the time of death, after all just claims 24 against his or her estate are fully paid, descends and shall 25 be distributed as provided in Section 2-1, but the parents of 26 the decedent shall be treated as having predeceased the 27 decedent. 28 If only one parent is an eligible parent, the intestate 29 real and personal estate of a resident decedent who was 30 illegitimate at the time of death and the intestate real 31 estate in this State of a nonresident decedent who was 32 illegitimate at the time of death, after all just claims 33 against his or her estate are fully paid, subject to Section 34 2-6.5 of this Act, descends and shall be distributed as HB1281 Engrossed -36- LRB9100404SMdvC 1 follows: 2 (a) If there is a surviving spouse and also a descendant 3 of the decedent: 1/2 of the entire estate to the surviving 4 spouse and 1/2 to the decedent's descendants per stirpes. 5 (b) If there is no surviving spouse but a descendant of 6 the decedent: the entire estate to the decedent's 7 descendants per stirpes. 8 (c) If there is a surviving spouse but no descendant of 9 the decedent: the entire estate to the surviving spouse. 10 (d) If there is no surviving spouse or descendant but 11 the eligible parent or a descendant of the eligible parent of 12 the decedent: the entire estate to the eligible parent and 13 the eligible parent's descendants, allowing 1/2 to the 14 eligible parent and 1/2 to the eligible parent's descendants 15 per stirpes. 16 (e) If there is no surviving spouse, descendant, 17 eligible parent, or descendant of the eligible parent of the 18 decedent, but a grandparent on the eligible parent's side of 19 the family or descendant of such grandparent of the decedent: 20 the entire estate to the decedent's grandparents on the 21 eligible parent's side of the family in equal parts, or to 22 the survivor of them, or if there is none surviving, to their 23 descendants per stirpes. 24 (f) If there is no surviving spouse, descendant, 25 eligible parent, descendant of the eligible parent, 26 grandparent on the eligible parent's side of the family, or 27 descendant of such grandparent of the decedent: the entire 28 estate to the decedent's great-grandparents on the eligible 29 parent's side of the family in equal parts or to the survivor 30 of them, or if there is none surviving, to their descendants 31 per stirpes. 32 (g) If there is no surviving spouse, descendant, 33 eligible parent, descendant of the eligible parent, 34 grandparent on the eligible parent's side of the family, HB1281 Engrossed -37- LRB9100404SMdvC 1 descendant of such grandparent, great-grandparent on the 2 eligible parent's side of the family, or descendant of such 3 great-grandparent of the decedent: the entire estate in 4 equal parts to the nearest kindred of the eligible parent of 5 the decedent in equal degree (computing by the rules of the 6 civil law) and without representation. 7 (h) If there is no surviving spouse, descendant, or 8 eligible parent of the decedent and no known kindred of the 9 eligible parent of the decedent: the real estate escheats to 10 the county in which it is located; the personal estate 11 physically located within this State and the personal estate 12 physically located or held outside this State which is the 13 subject of ancillary administration within this State 14 escheats to the county of which the decedent was a resident 15 or, if the decedent was not a resident of this State, to the 16 county in which it is located; all other personal property 17 of the decedent of every class and character, wherever 18 situate, or the proceeds thereof, shall escheat to this State 19 and be delivered to the State TreasurerDirector of Financial20Institutionsof this State pursuant to the Uniform 21 Disposition of Unclaimed Property Act. 22 For purposes of inheritance, the changes made by this 23 amendatory Act of 1998 apply to all decedents who die on or 24 after the effective date of this amendatory Act of 1998. For 25 the purpose of determining the property rights of any person 26 under any instrument, the changes made by this amendatory Act 27 of 1998 apply to all instruments executed on or after the 28 effective date of this amendatory Act of 1998. 29 An illegitimate person is heir of his mother and of any 30 maternal ancestor and of any person from whom his mother 31 might have inherited, if living; and the descendants of an 32 illegitimate person shall represent such person and take by 33 descent any estate which the parent would have taken, if 34 living. If a decedent has acknowledged paternity of an HB1281 Engrossed -38- LRB9100404SMdvC 1 illegitimate person or if during his lifetime or after his 2 death a decedent has been adjudged to be the father of an 3 illegitimate person, that person is heir of his father and of 4 any paternal ancestor and of any person from whom his father 5 might have inherited, if living; and the descendants of an 6 illegitimate person shall represent that person and take by 7 descent any estate which the parent would have taken, if 8 living. If during his lifetime the decedent was adjudged to 9 be the father of an illegitimate person by a court of 10 competent jurisdiction, an authenticated copy of the judgment 11 is sufficient proof of the paternity; but in all other cases 12 paternity must be proved by clear and convincing evidence. A 13 person who was illegitimate whose parents intermarry and who 14 is acknowledged by the father as the father's child is 15 legitimate. After an illegitimate person is adopted, that 16 person's relationship to his or her adopting and natural 17 parents shall be governed by Section 2-4 of this Act. For 18 purposes of inheritance, the changes made by this amendatory 19 Act of 1997 apply to all decedents who die on or after 20 January 1, 1998. For the purpose of determining the property 21 rights of any person under any instrument, the changes made 22 by this amendatory Act of 1997 apply to all instruments 23 executed on or after January 1, 1998. 24 (Source: P.A. 90-237, eff. 1-1-98; 90-803, eff. 12-15-98.) 25 Section 35. The Uniform Disposition of Unclaimed 26 Property Act is amended by changing Sections 1, 2, 10.5, 11, 27 11.5, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 23.5, 28 24, 24.5, 25, 25.5 and 26 and adding Section 0.05 as follows: 29 (765 ILCS 1025/0.05 new) 30 Sec. 0.05. Transfer of powers. The rights, powers, 31 duties, and functions vested in the Department of Financial 32 Institutions to administer this Act are transferred to the HB1281 Engrossed -39- LRB9100404SMdvC 1 State Treasurer on July 1, 1999 in accordance with Sections 2 0.02 through 0.06 of the State Treasurer Act; provided, 3 however, that the rights, powers, duties, and functions 4 involving the examination of the records of any person that 5 the State Treasurer has reason to believe has failed to 6 report properly under this Act shall be transferred to the 7 Office of Banks and Real Estate if the person is regulated by 8 the Office of Banks and Real Estate under the Illinois 9 Banking Act, the Corporate Fiduciary Act, the Foreign Banking 10 Office Act, the Illinois Savings and Loan Act of 1985, or the 11 Savings Bank Act and shall be retained by the Department of 12 Financial Institutions if the person is doing business in the 13 State under the supervision of the Department of Financial 14 Institutions, the National Credit Union Administration, the 15 Office of Thrift Supervision, or the Comptroller of the 16 Currency. 17 (765 ILCS 1025/1) (from Ch. 141, par. 101) 18 Sec. 1. As used in this Act, unless the context 19 otherwise requires: 20 (a) "Banking organization" means any bank, trust 21 company, savings bank, industrial bank, land bank, safe 22 deposit company, or a private banker. 23 (b) "Business association" means any corporation, joint 24 stock company, business trust, partnership, or any 25 association, limited liability company, or other business 26 entity consisting of one or more persons, whether or not for 27 profit. 28 (c) "Financial organization" means any savings and loan 29 association, building and loan association, credit union, 30 currency exchange, co-operative bank, mutual funds, or 31 investment company. 32 (d) "Holder" means any person in possession of property 33 subject to this Act belonging to another, or who is trustee HB1281 Engrossed -40- LRB9100404SMdvC 1 in case of a trust, or is indebted to another on an 2 obligation subject to this Act. 3 (e) "Life insurance corporation" means any association 4 or corporation transacting the business of insurance on the 5 lives of persons or insurance appertaining thereto, 6 including, but not by way of limitation, endowments and 7 annuities. 8 (f) "Owner" means a depositor in case of a deposit, a 9 beneficiary in case of a trust, a creditor, claimant, or 10 payee in case of other property, or any person having a legal 11 or equitable interest in property subject to this Act, or his 12 legal representative. 13 (g) "Person" means any individual, business association, 14 financial organization, government or political subdivision 15 or agency, public authority, estate, trust, or any other 16 legal or commercial entity. 17 (h) "Utility" means any person who owns or operates, for 18 public use, any plant, equipment, property, franchise, or 19 license for the transmission of communications or the 20 production, storage, transmission, sale, delivery, or 21 furnishing of electricity, water, steam, oil or gas. 22 (i) (Blank)."Director" means the Director of the23Illinois Department of Financial Institutions.24 (j) "Insurance company" means any person transacting the 25 kinds of business enumerated in Section 4 of the Illinois 26 Insurance Code other than life insurance. 27 (k) "Economic loss", as used in Sections 2a and 9 of 28 this Act includes, but is not limited to, delivery charges, 29 mark-downs and write-offs, carrying costs, restocking 30 charges, lay-aways, special orders, issuance of credit memos, 31 and the costs of special services or goods provided that 32 reduce the property value or that result in lost sales 33 opportunity. 34 (l) "Reportable property" means property, tangible or HB1281 Engrossed -41- LRB9100404SMdvC 1 intangible, presumed abandoned under this Act that must be 2 appropriately and timely reported and remitted to the Office 3 of the State TreasurerDepartmentunder this Act. Interest, 4 dividends, stock splits, warrants, or other rights that 5 become reportable property under this Act include the 6 underlying security or commodity giving rise to the interest, 7 dividend, split, warrant, or other right to which the owner 8 would be entitled. 9 (Source: P.A. 89-604, eff. 8-2-96; 90-167, eff. 7-23-97.) 10 (765 ILCS 1025/2) (from Ch. 141, par. 102) 11 Sec. 2. The following property held or owing by a 12 banking or financial organization is presumed abandoned: 13 (a) Any demand, savings, or matured time deposit with a 14 banking organization, together with any interest or dividend 15 thereon, excluding any charges that may lawfully be withheld, 16 unless the owner has, within 5 years: 17 (1) Increased or decreased the amount of the 18 deposit, or presented the passbook or other similar 19 evidence of the deposit for the crediting of interest; or 20 (2) Corresponded in writing with the banking 21 organization concerning the deposit; or 22 (3) Otherwise indicated an interest in the deposit 23 as evidenced by a memorandum on file with the banking 24 organization. 25 (b) Any funds paid toward the purchase of withdrawable 26 shares or other interest in a financial organization, or any 27 deposit made, and any interest or dividends thereon, 28 excluding any charges that may be lawfully withheld, unless 29 the owner has within 5 years: 30 (1) Increased or decreased the amount of the funds, 31 or deposit, or presented an appropriate record for the 32 crediting of interest or dividends; or 33 (2) Corresponded in writing with the financial HB1281 Engrossed -42- LRB9100404SMdvC 1 organization concerning the funds or deposit; or 2 (3) Otherwise indicated an interest in the funds or 3 deposit as evidenced by a memorandum on file with the 4 financial organization. 5 (c) Any sum payable on checks or on written instruments 6 on which a banking or financial organization or business 7 association is directly liable including, by way of 8 illustration but not of limitation, certificates of deposit, 9 drafts, money orders and travelers checks, that with the 10 exception of travelers checks has been outstanding for more 11 than 5 years from the date it was payable, or from the date 12 of its issuance if payable on demand, or, in the case of 13 travelers checks, that has been outstanding for more than 15 14 years from the date of its issuance, unless the owner has 15 within 5 years or within 15 years in the case of travelers 16 checks corresponded in writing with the banking or financial 17 organization or business association concerning it, or 18 otherwise indicated an interest as evidenced by a memorandum 19 on file with the banking or financial organization or 20 business association. 21 (d) Any funds or other personal property, tangible or 22 intangible, removed from a safe deposit box or any other 23 safekeeping repository or agency or collateral deposit box on 24 which the lease or rental period has expired due to 25 nonpayment of rental charges or other reason, or any surplus 26 amounts arising from the sale thereof pursuant to law, that 27 have been unclaimed by the owner for more than 5 years from 28 the date on which the lease or rental period expired, 29 subject to lien of the holder for reimbursement of costs 30 incurred in the opening of a safe deposit box as determined 31 by the holder's regular schedule of charges. 32 (e) Notwithstanding any other provision of this Section, 33 no deposit except passbook, checking, NOW accounts, super NOW 34 accounts, money market accounts, or such similar accounts as HB1281 Engrossed -43- LRB9100404SMdvC 1 established by Rule of the State TreasurerDirector, held by 2 a banking or financial organization shall be presumed 3 abandoned if with respect to such a deposit which specifies a 4 definite maturity date, such organization was authorized in 5 writing to extend or rollover the account for an additional 6 like period and such organization does so extend. Such 7 deposits are not presumed abandoned less than 5 years from 8 that final maturity date. Property of any kind held in an 9 individual retirement account (IRA) is not presumed abandoned 10 earlier than 5 years after the owner attains the age at which 11 distributions from the account become mandatory under law. 12 (f) Notwithstanding any other provision of this Section, 13 money of a minor deposited pursuant to Section 24-21 of the 14 Probate Act of 1975 shall not be presumed abandoned earlier 15 than 5 years after the minor attains legal age. Such money 16 shall be deposited in an account which shall indicate the 17 birth date of the minor. 18 (Source: P.A. 89-604, eff. 8-2-96; 90-167, eff. 7-23-97; 19 90-796, eff. 12-15-98.) 20 (765 ILCS 1025/10.5) 21 Sec. 10.5. Nonapplicability of Act. 22 (a) Unless the personal property was identified in a 23 final examination report by the Director of Financial 24 Institutions issued pursuant to a duly authorized examination 25 and the final examination report was received by the holder 26 on or before May 1, 1993, this Act does not apply to (i) 27 travelers checks reportable as unclaimed property before July 28 1, 1973, (ii) funds held by any federal, state, or local 29 government or governmental subdivision, agency, entity, 30 officer, or appointee thereof reportable as unclaimed 31 property before July 1, 1981, or (iii) any other personal 32 property reportable as unclaimed property before July 1, 33 1985, based upon the presumptive abandonment period in effect HB1281 Engrossed -44- LRB9100404SMdvC 1 on that date. 2 (b) For reports required to be filed after December 31, 3 1993, this Act does not apply to any reportable personal 4 property held prior to the period required for presumptive 5 abandonment of the property plus the 9 years immediately 6 preceding the beginning of that period. 7 (c) Subsections (a) and (b) do not apply to property 8 held by a trust division or trust department or by a trust 9 company, or affiliate of any of the foregoing that provides 10 nondealer corporate custodial services for securities or 11 securities transactions, organized under the laws of this or 12 another state or the United States. 13 As of January 1, 1998, this subsection shall not be 14 applicable unless the Department of Financial Institutions 15 has commenced, but not finalized, an examination of the 16 holder as of that date and the property is included in a 17 final examination report for the period covered by the 18 examination. 19 (d) Subsections (a) and (b) do not apply to property 20 held by a holder who files a fraudulent report or fails to 21 file a report. 22 (e) Subsections (a) and (b) do not apply if, as a result 23 of their application, another state would have a legal right 24 to delivery of the property and such other state has 25 commenced proceedings with respect to the property. 26 (Source: P.A. 90-167, eff. 7-23-97.) 27 (765 ILCS 1025/11) (from Ch. 141, par. 111) 28 Sec. 11. (a) Except as otherwise provided in subsection 29 (c) of Section 4, every person holding funds or other 30 property, tangible or intangible, presumed abandoned under 31 this Act shall report and remit all abandoned property 32 specified in the report to the State TreasurerDirectorwith 33 respect to the property as hereinafter provided. The State HB1281 Engrossed -45- LRB9100404SMdvC 1 TreasurerDirectormay exempt any businesses from the 2 reporting requirement if he deems such businesses unlikely to 3 be holding unclaimed property. 4 (b) The information shall be obtained in one or more 5 reports as required by the State TreasurerDirector. The 6 information shall be verified and shall include: 7 (1) The name, social security or federal tax 8 identification number, if known, and last known address, 9 including zip code, of each person appearing from the 10 records of the holder to be the owner of any property of 11 the value of $25 or more presumed abandoned under this 12 Act; 13 (2) In case of unclaimed funds of life insurance 14 corporations the full name of the insured and any 15 beneficiary or annuitant and the last known address 16 according to the life insurance corporation's records; 17 (3) The date when the property became payable, 18 demandable, or returnable, and the date of the last 19 transaction with the owner with respect to the property; 20 and 21 (4) Other information which the State Treasurer 22Directorprescribes by rule as necessary for the 23 administration of this Act. 24 (c) If the person holding property presumed abandoned is 25 a successor to other persons who previously held the property 26 for the owner, or if the holder has changed his name while 27 holding the property, he shall file with his report all prior 28 known names and addresses of each holder of the property. 29 (d) The report and remittance of the property specified 30 in the report shall be filed by banking organizations, 31 financial organizations, insurance companies other than life 32 insurance corporations, and governmental entities before 33 November 1 of each year as of June 30 next preceding. The 34 report and remittance of the property specified in the report HB1281 Engrossed -46- LRB9100404SMdvC 1 shall be filed by business associations, utilities, and life 2 insurance corporations before May 1 of each year as of 3 December 31 next preceding. The Director may postpone the 4 reporting date upon written request by any person required to 5 file a report. 6 (e) Before filing the annual report, the holder of 7 property presumed abandoned under this Act shall communicate 8 with the owner at his last known address if any address is 9 known to the holder, setting forth the provisions hereof 10 necessary to occur in order to prevent abandonment from being 11 presumed. If the holder has not communicated with the owner 12 at his last known address at least 120 days before the 13 deadline for filing the annual report, the holder shall mail, 14 at least 60 days before that deadline, a letter by first 15 class mail to the owner at his last known address unless any 16 address is shown to be inaccurate, setting forth the 17 provisions hereof necessary to prevent abandonment from being 18 presumed. 19 (f) Verification, if made by a partnership, shall be 20 executed by a partner; if made by an unincorporated 21 association or private corporation, by an officer; and if 22 made by a public corporation, by its chief fiscal officer. 23 (g) Any person who has possession of property which he 24 has reason to believe will be reportable in the future as 25 unclaimed property, may report and deliver it prior to the 26 date required for such reporting in accordance with this 27 Section and is then relieved of responsibility as provided in 28 Section 14. 29 (h) (1) Records pertaining to presumptively abandoned 30 property held by a trust division or trust department or by a 31 trust company, or affiliate of any of the foregoing that 32 provides nondealer corporate custodial services for 33 securities or securities transactions, organized under the 34 laws of this or another state or the United States shall be HB1281 Engrossed -47- LRB9100404SMdvC 1 retained until the property is delivered to the State 2 TreasurerDirector. 3 As of January 1, 1998, this subdivision (h)(1) shall not 4 be applicable unless the Department of Financial Institutions 5 has commenced, but not finalized, an examination of the 6 holder as of that date and the property is included in a 7 final examination report for the period covered by the 8 examination. 9 (2) In the case of all other holders commencing on the 10 effective date of this amendatory Act of 1993, property 11 records for the period required for presumptive abandonment 12 plus the 9 years immediately preceding the beginning of that 13 period shall be retained for 5 years after the property was 14 reportable. 15 (i) The State TreasurerDirectormay promulgate rules 16 establishing the format and media to be used by a holder in 17 submitting reports required under this Act. 18 (Source: P.A. 90-167, eff. 7-23-97.) 19 (765 ILCS 1025/11.5) 20 Sec. 11.5. Estimation techniques and record retention. 21 (a) If a holder has failed to retain records as required 22 by this Act or if the records retained are shown to be 23 insufficient to conduct and conclude an examination, the 24 Office of the State TreasurerDepartmentmay use estimation 25 techniques that conform to either Generally Accepted Auditing 26 Standards or Generally Accepted Accounting Principles to 27 determine the amount of unclaimed property. In the conduct 28 of an examination, the StateDepartmentshall not request of 29 a holder any records that relate only to property that under 30 subsection (a) or (b) of Section 10.5 is not subject to this 31 Act. 32 (b) Within 15 business days of the receipt of a final 33 examination report, a holder may request a hearing to contest HB1281 Engrossed -48- LRB9100404SMdvC 1 the use or validity of estimation techniques. The 2 examination shall become final upon the failure of the holder 3 to request a hearing as provided in this Section. If a 4 hearing is held, the State TreasurerDirectorshall issue an 5 order approving or disapproving the use or validity of the 6 estimation techniques. The order shall be a final order 7 under the Administrative Review Law. 8 (Source: P.A. 88-435.) 9 (765 ILCS 1025/12) (from Ch. 141, par. 112) 10 Sec. 12. (a) Within 120 days from the filing of the 11 annual report and delivery of the abandoned property 12 specified in the report as required by Section 11, the State 13 TreasurerDirectorshall cause notice to be published once in 14 an English language newspaper of general circulation in the 15 county in this State in which is located the last known 16 address of any person to be named in the notice. If no 17 address is listed or if the address is outside this State, 18 the notice shall be published in the county in which the 19 holder of the abandoned property has his principal place of 20 business within this State. However, if an out-of-state 21 address is in a state that is not a party to a reciprocal 22 agreement with this State concerning abandoned property, the 23 notice may be published in the Illinois Register. 24 (b) The published notice shall be entitled "Notice of 25 Names of Persons Appearing to be Owners of Abandoned 26 Property", and shall contain: 27 (1) The names in alphabetical order and last known 28 addresses, if any, of persons listed in the report and 29 entitled to notice within the county as hereinbefore 30 specified. 31 (2) A statement that information concerning the 32 amount or description of the property and the name and 33 address of the holder may be obtained by any persons HB1281 Engrossed -49- LRB9100404SMdvC 1 possessing an interest in the property by addressing an 2 inquiry to the State TreasurerDirector. 3 (3) A statement that the abandoned property has 4 been placed in the custody of the State Treasurer 5Directorto whom all further claims must thereafter be 6 directed. 7 (c) The State TreasurerDirectoris not required to 8 publish in such notice any item of less than $100 or any item 9 for which the address of the last known owner is in a state 10 that has a reciprocal agreement with this State concerning 11 abandoned property unless he deems such publication to be in 12 the public interest. 13 (Source: P.A. 90-167, eff. 7-23-97.) 14 (765 ILCS 1025/13) (from Ch. 141, par. 113) 15 Sec. 13. Every person who has filed a report as provided 16 by Section 11 shall deliver to the State TreasurerDirector17 all abandoned property specified in the annual report on the 18 same date that the annual report is filed. Costs for 19 communicating with owners by mail as required by subsection 20 (e) of Section 11 may be deducted from the property specified 21 in the report. Any such person, who pursuant to a statutory 22 requirement, filed a bond or bonds pertaining to such 23 abandoned property with the State TreasurerDirectoror his 24 predecessor, may also deduct an amount equivalent to that 25 part of the bond premium attributable to such abandoned 26 property. 27 (Source: P.A. 90-167, eff. 7-23-97.) 28 (765 ILCS 1025/14) (from Ch. 141, par. 114) 29 Sec. 14. Upon the payment or delivery of abandoned 30 property to the State TreasurerDirector, the state shall 31 assume custody and shall be responsible for the safekeeping 32 thereof. Any person who pays or delivers abandoned property HB1281 Engrossed -50- LRB9100404SMdvC 1 to the State TreasurerDirectorunder this Act is relieved of 2 all liability to the extent of the value of the property so 3 paid or delivered for any claim which then exists or which 4 thereafter may arise or be made in respect to the property. 5 In the event legal proceedings are instituted by any 6 other state or states in any state or federal court with 7 respect to unclaimed funds or abandoned property previously 8 paid or delivered to the State TreasurerDirector, the holder 9 shall give written notification to the State Treasurer 10Directorand the Attorney General of this state of such 11 proceedings within 10 days after service of process, or in 12 the alternative at least 10 days before the return date or 13 date on which an answer or similar pleading is due (or any 14 extension thereof secured by the holder). The Attorney 15 General may take such action as he deems necessary or 16 expedient to protect the interests of the State of Illinois. 17 The Attorney General by written notice prior to the return 18 date or date on which an answer or similar pleading is due 19 (or any extension thereof secured by the holder), but in any 20 event in reasonably sufficient time for the holder to comply 21 with the directions received, shall either direct the holder 22 actively to defend in such proceedings or that no defense 23 need be entered in such proceedings. If a direction is 24 received from the Attorney General that the holder need not 25 make a defense, such shall not preclude the holder from 26 entering a defense in its own name if it should so choose. 27 However, any defense made by the holder on its own initiative 28 shall not entitle the holder to reimbursement for legal fees, 29 costs and other expenses as is hereinafter provided in 30 respect to defenses made pursuant to the directions of the 31 Attorney General. If, after the holder has actively defended 32 in such proceedings pursuant to a direction of the Attorney 33 General, or has been notified in writing by the Attorney 34 General that no defense need be made with respect to such HB1281 Engrossed -51- LRB9100404SMdvC 1 funds, a judgment is entered against the holder for any 2 amount paid to the State TreasurerDirectorunder this Act, 3 the State TreasurerDirectorshall, upon being furnished with 4 proof of payment in satisfaction of such judgment, reimburse 5 the holder the amount so paid. The State Treasurerdirector6 shall also reimburse the holder for any legal fees, costs and 7 other directly related expenses incurred in legal proceedings 8 undertaken pursuant to the direction of the Attorney General. 9 (Source: Laws 1963, p. 1805.) 10 (765 ILCS 1025/15) (from Ch. 141, par. 115) 11 Sec. 15. When property is paid or delivered to the State 12 TreasurerDirectorunder this Act, the owner is not entitled 13 to receive income or other increments accruing thereafter, 14 except that income accruing on unliquidated stock and mutual 15 funds after July 1, 1993, may be paid to the owner. 16 (Source: P.A. 87-925.) 17 (765 ILCS 1025/16) (from Ch. 141, par. 116) 18 Sec. 16. The expiration of any period of time specified 19 by statute or court order, during which an action or 20 proceeding may be commenced or enforced to obtain payment of 21 a claim for money or recovery of property, shall not prevent 22 the money or property from being presumed abandoned property, 23 nor affect any duty to file a report required by this Act or 24 to pay or deliver abandoned property to the State Treasurer 25Director. 26 (Source: Laws 1961, p. 3426.) 27 (765 ILCS 1025/17) (from Ch. 141, par. 117) 28 Sec. 17. (a) All abandoned property, other than money and 29 that property exempted by paragraphs (1) and (2) of this 30 subsection, delivered to the State TreasurerDirectorunder 31 this Act shall be sold within a reasonable time to the HB1281 Engrossed -52- LRB9100404SMdvC 1 highest bidder at public sale in whatever city in the State 2 affords in his or her judgment the most favorable market for 3 the property involved. The State TreasurerDirectormay 4 decline the highest bid and reoffer the property for sale if 5 he or she considers the price bid insufficient. He or she 6 need not offer any property for sale, and may destroy or 7 otherwise dispose of the property, if, in his or her opinion, 8 the probable cost of sale exceeds the value of the property. 9 Securities or commodities received by the Office of the State 10 TreasurerDepartmentmay be sold by the State Treasurer 11Directorthrough a broker or sales agent suitable for the 12 sale of the type of securities or commodities being sold. 13 (1) Property which the State TreasurerDirector14 determines may have historical value may be, at his or 15 her discretion, loaned to a recognized exhibitor in the 16 United States where it will be kept until such time as 17 the State TreasurerDirectororders it to be returned to 18 his or her possession. 19 (2) Property returned to the State Treasurer 20Directorshall be released to the rightful owner or 21 otherwise disposed of in accordance with this Act. The 22 State TreasurerDirectorshall keep identifying records 23 of the property so loaned, the name of rightful owner and 24 the owner's last known address, if available. 25 (b) Any sale held under this Section, except a sale of 26 securities or commodities, shall be preceded by a single 27 publication of notice thereof, at least 3 weeks in advance of 28 sale in an English language newspaper of general circulation 29 in the county where the property is to be sold. When property 30 fails to sell and is offered again at a subsequent sale, no 31 additional notice is required for the subsequent sale. 32 (c) The purchaser at any sale conducted by the State 33 TreasurerDirectorpursuant to this Act shall receive title 34 to the property purchased, free from all claims of the owner HB1281 Engrossed -53- LRB9100404SMdvC 1 or prior holder thereof and of all persons claiming through 2 or under them. The State TreasurerDirectorshall execute all 3 documents necessary to complete the transfer of title. 4 (d) The Office of the State TreasurerDepartmentis not 5 liable for any reduction in the value of property caused by 6 changing market conditions. 7 (Source: P.A. 89-604, eff. 8-2-96.) 8 (765 ILCS 1025/18) (from Ch. 141, par. 118) 9 Sec. 18. (a) All funds received under this Act, 10 including the proceeds from the sale of abandoned property 11 under Section 17, shall forthwith be depositedtransferred by12the Director to the State Treasurer for depositin the State 13 Pensions Fund in the state treasury, except that theDirector14shall direct theState Treasurer shalltoretain in a 15 separate trust fund an amount not exceeding $2,500,000 from 16 which he or she shall make prompt payment of claims he or she 17 duly allowsallowed by the Directoras hereinafter provided. 18 However, should any claim be allowed or any refund ordered 19 under the provisions of this Act, in excess of $2,500,000, 20 theDirector shall direct theState Treasurer shallto21 increase the amount of such separate trust fund to an amount 22 necessary for prompt payment of such claim in excess of 23 $2,500,000 andthe State Treasurer shallmake prompt payment 24 thereof. Before making the deposit the State Treasurer 25Directorshall record the name and last known address of each 26 person appearing from the holders' reports to be entitled to 27 the abandoned property. The record shall be available for 28 public inspection at all reasonable business hours. 29 (b) Before making any deposit to the credit of the State 30 Pensions Fund, the State TreasurerDirectormay deduct: (1) 31 any costs in connection with sale of abandoned property, (2) 32 any costs of mailing and publication in connection with any 33 abandoned property, and (3) any costs in connection with the HB1281 Engrossed -54- LRB9100404SMdvC 1 maintenance of records or disposition of claims made pursuant 2 to this Act. The State TreasurerDirectorshall semiannually 3 file an itemized report of all such expenses with the 4 Legislative Audit Commission. 5 (Source: P.A. 87-925.) 6 (765 ILCS 1025/19) (from Ch. 141, par. 119) 7 Sec. 19. Any person claiming an interest in any property 8 delivered to the State under this Act may file a claim 9 thereto or to the proceeds from the sale thereof on the form 10 prescribed by the State TreasurerDirector. 11 (Source: Laws 1961, p. 3426.) 12 (765 ILCS 1025/20) (from Ch. 141, par. 120) 13 Sec. 20. (a) The State TreasurerDirectorshall consider 14 any claim filed under this Act and may, in his discretion, 15 hold a hearing and receive evidence concerning it. Such 16 hearing shall be conducted by the State TreasurerDirectoror 17 by a hearing officer designated by him. No hearings shall be 18 held if the payment of the claim is ordered by a court, if 19 the claimant is under court jurisdiction, or if the claim is 20 paid under Article XXV of the Probate Act of 1975. The State 21 TreasurerDirectoror hearing officer shall prepare a finding 22 and a decision in writing on each hearing, stating the 23 substance of any evidence heard by him, his findings of fact 24 in respect thereto, and the reasons for his decision. The 25 State TreasurerDirectorshall review the findings and 26 decision of each hearing conducted by a hearing officer and 27 issue a final written decision. The final decision shall be 28 a public record. Any claim of an interest in property that is 29 filed pursuant to this Act shall be considered and a finding 30 and decision shall be issued by the Office of the State 31 TreasurerDepartmentin a timely and expeditious manner. 32 (b) If the claim is allowed, and after deducting an HB1281 Engrossed -55- LRB9100404SMdvC 1 amount not to exceed $20 to cover the cost of notice 2 publication and related clerical expenses, the State 3 Treasurer shall make payment forthwith, upon notification by4the Director. 5 (c) In order to carry out the purpose of this Act, no 6 person or company shall be entitled to a fee for discovering 7 presumptively abandoned property until it has been in the 8 custody of the Unclaimed Property Division of the Office of 9 the State TreasurerDepartment of Financial Institutionsfor 10 at least 24 months. Fees for discovering property that has 11 been in the custody of that division for more than 24 months 12 shall be limited to not more than 10% of the amount 13 collected. 14 This Section shall not apply to the fees of an attorney 15 at law duly appointed to practice in a state of the United 16 States who is employed by a claimant with regard to probate 17 matters on a contractual basis. 18 (Source: P.A. 86-1162; 87-925.) 19 (765 ILCS 1025/21) (from Ch. 141, par. 121) 20 Sec. 21. A final administrative decision of the State 21 TreasurerDirectorin respect to a claim filed hereunder 22 shall be subject to judicial review pursuant to the 23 provisions of the Administrative Review Law and the rules 24 adopted pursuant thereto. The review action may be 25 instituted by any person adversely affected or aggrieved by 26 the decision. 27 The Office of the State TreasurerDepartmentshall 28 furnish a certified transcript of the record to any party of 29 record upon the payment of the actual page charge of the 30 record to a commercial reporting service for the preparation 31 of the transcript. If no hearing was held, the State 32 TreasurerDirectorshall deliver a copy of his decision 33 stating the reasons upon which the claim was denied and HB1281 Engrossed -56- LRB9100404SMdvC 1 deliver it to any party of record within 20 days of demand. 2 (Source: P.A. 90-167, eff. 7-23-97.) 3 (765 ILCS 1025/22) (from Ch. 141, par. 122) 4 Sec. 22. The State TreasurerDirector, after receiving 5 reports of property deemed abandoned pursuant to this Act, 6 may decline to receive any property reported which he deems 7 to have a value less than the cost of giving notice and 8 holding sale, or he may, if he deems it desirable because of 9 the small sum involved, postpone taking possession until a 10 sufficient sum has accumulated. Unless the holder of the 11 property is notified to the contrary within 120 days after 12 filing the report required under Section 11, the State 13 TreasurerDirectorshall be deemed to have elected to receive 14 the custody of the property. 15 (Source: Laws 1961, p. 3426.) 16 (765 ILCS 1025/23) (from Ch. 141, par. 123) 17 Sec. 23. (a) If the State TreasurerDirectorhas reason 18 to believe that any person has failed to report property in 19 accordance with this Act, he may make a demand by certified 20 mail, return receipt requested, that such report be made and 21 filed with the State TreasurerDirector. The report of 22 abandoned property or any other report required shall be made 23 and filed with the State TreasurerDirectorwithin 30 days 24 after receipt of the demand. 25 (b) The StateDirectormay at reasonable times and upon 26 reasonable notice examine the records of any person if the 27 State TreasurerDirectorhas reason to believe that such 28 person has failed to report property that should have been 29 reported pursuant to this Act. Upon the direction of the 30 State Treasurer to do so, the Office of Banks and Real Estate 31 shall, on behalf of the State, conduct the examination of the 32 records of any person who is regulated by the Office of Banks HB1281 Engrossed -57- LRB9100404SMdvC 1 and Real Estate under the Illinois Banking Act, the Corporate 2 Fiduciary Act, the Foreign Banking Office Act, the Illinois 3 Savings and Loan Act of 1985, or the Savings Bank Act. Upon 4 direction of the State Treasurer to do so, the Department of 5 Financial Institutions shall, on behalf of the State, conduct 6 the examination of the records of any person doing business 7 in the State under the supervision of the Department of 8 Financial Institutions, the National Credit Union 9 Administration, the Office of Thrift Supervision, or the 10 Comptroller of the Currency. The Office of Banks and Real 11 Estate and the Department of Financial Institutions shall 12 conduct all examinations during the next regular examination 13 of the person, unless the State Treasurer has reason to 14 believe that an accelerated examination schedule is required 15 to protect the State's interest, in which case the 16 examination must be conducted within 90 days of the State 17 Treasurer's direction to do so. The Office of Banks and Real 18 Estate and the Department of Financial Institutions may 19 contract with third parties to ensure that the examinations 20 are commenced in a timely manner. The Department of 21 Financial Institutions and the Office of Banks and Real 22 Estate shall report the results of all examinations that are 23 undertaken at the direction of the State Treasurer under this 24 Act, which may include confidential information, to the State 25 Treasurer in a timely manner and, upon the request of the 26 Treasurer, shall assist in the evaluation of the 27 examinations. All examinations that are not performed by the 28 Office of Banks and Real Estate or the Department of 29 Financial Institutions shall be performed by the State 30 Treasurer. 31 (c) The actual cost of any examination or investigation 32 incurred by the StateDepartmentin administering any 33 provision of this Act shall be borne by the holder examined 34 or investigated if: HB1281 Engrossed -58- LRB9100404SMdvC 1 (1) a written demand for a report has been made and 2 the report has not been properly filed within the time 3 period specified in this Section, or 4 (2) a report has been received and additional 5 property reportable under the Act is discovered by such 6 examination or investigation. 7 No holder shall be liable to pay more than an amount 8 equal to the amount of reportable property discovered by such 9 investigation as a cost of examination or investigation. 10 (d) For all holders other than a trust division, a trust 11 department, a trust company, or an affiliate of any of them, 12 subsection (c) does not apply to any examination commenced 13 after the effective date of this amendatory Act of 1993. As 14 of January 1, 1998, subsection (c) does not apply to an 15 examination of a trust division or trust department or a 16 trust company, or affiliate of any of the foregoing that 17 provides nondealer corporate custodial services for 18 securities or securities transactions, organized under the 19 laws of this or another state or the United States unless the 20 Department of Financial Institutions has commenced, but not 21 finalized, an examination of the holder as of that date and 22 the property is included in a final examination report for 23 the period covered by the examination. 24 (Source: P.A. 90-167, eff. 7-23-97.) 25 (765 ILCS 1025/23.5) 26 Sec. 23.5. Notice of deficiency; time; effect. 27 (a) The State TreasurerDirectorshall issue a Notice of 28 Deficiency to a holder or direct the commencement ofcommence29an examination of a holder with respect to a report required 30 under this Act within 5 years after the report is filed. A 31 Notice of Deficiency shall specify the additional amounts, if 32 known, purportedly reportable under this Act or state that 33 those amounts are unknown. If the State TreasurerDirectorHB1281 Engrossed -59- LRB9100404SMdvC 1 fails to issue a Notice of Deficiency or direct the 2 commencement ofcommencean examination within the time 3 required by this Section, the Office of the State Treasurer 4Departmentmay not thereafter issue a Notice of Deficiency, 5 otherwise assert a deficiency, or seek any other charge or 6 remedy under this Act with respect to that report. 7 (b) This Section does not apply to a holder that is a 8 trust division or trust department or a trust company, or 9 affiliate of any of the foregoing that provides nondealer 10 corporate custodial services for securities or securities 11 transactions, organized under the laws of this or another 12 state or the United States. 13 As of January 1, 1998, this subsection shall not be 14 applicable unless the Department of Financial Institutions 15 has commenced, but not finalized, an examination of the 16 holder as of that date and the property is included in a 17 final examination report for the period covered by the 18 examination. 19 (Source: P.A. 90-167, eff. 7-23-97.) 20 (765 ILCS 1025/24) (from Ch. 141, par. 124) 21 Sec. 24. Enforcement of delivery. If any person refuses 22 to deliver property to the State TreasurerDirectoras 23 required under this Act, the State TreasurerDirectormay 24 bring an action in the name of the State in the circuit court 25 or any federal court to enforce delivery. 26 (Source: P.A. 90-167, eff. 7-23-97.) 27 (765 ILCS 1025/24.5) 28 Sec. 24.5. Contingency fees. The StateDepartmentmay 29 not enter into a contract with a person to conduct an 30 examination of a holder located within the State of Illinois 31 under which the StateDepartmentagrees to pay such person a 32 fee based upon a percentage of the property recovered for the HB1281 Engrossed -60- LRB9100404SMdvC 1 State of Illinois. Nothing in this Section prohibits the 2 Office of the State TreasurerDepartmentfrom entering into 3 contracts with persons to examine holders located outside the 4 State of Illinois under which the Office of the State 5 TreasurerDepartmentagrees to pay such persons based upon a 6 percentage of the property recovered for the State of 7 Illinois. 8 (Source: P.A. 88-435.) 9 (765 ILCS 1025/25) (from Ch. 141, par. 125) 10 Sec. 25. (a) Any person who fails to render any report 11 or perform other duties required under this Act, is guilty of 12 a business offense and fined not more than $500. Each day 13 such report is withheld or the duties are not performed 14 constitutes a separate offense. 15 (b) Any person who wilfully refuses to pay or deliver 16 abandoned property to the State TreasurerDirectoras 17 required under this Act shall be guilty of a Class B 18 misdemeanor. Each day the violation continues is a separate 19 offense. 20 (Source: P.A. 79-1103.) 21 (765 ILCS 1025/25.5) 22 Sec. 25.5. Administrative charges, fees, and interest 23 charges. 24 (a) The State TreasurerDirectormay charge a holder 25 that files an unclaimed property report after the due date, 26 as determined by the State TreasurerDirector, the lesser of 27 $100 or $1 for each day the report remains overdue. 28 (b) The State TreasurerDirectormay charge a holder 29 that fails to timely perform due diligence, as required by 30 this Act, $5 for each name and address account reported if 31 35% or more of the accounts are claimed within the 24 months 32 immediately following the filing of the holder's annual HB1281 Engrossed -61- LRB9100404SMdvC 1 report. 2 (c) A holder who remits unclaimed property that is past 3 due or fails to remit unclaimed property pursuant to an 4 examination by the StateDepartment, may be charged based on 5 the value of the property the greater of 1% per month or an 6 annualized rate that is 3 percentage points above the prime 7 rate as published in the Wall Street Journal on the first 8 business day of the month in which the property was remitted. 9 If the property remains past due for more than 12 months, the 10 interest rate for each succeeding year shall be calculated at 11 the greater of an annual rate of 12% or 3 percentage points 12 above the prime rate. The prime rate applied shall be as 13 published on the first business day of January of that 14 successive year. 15 (d) The State TreasurerDirectormay grant an extension 16 of time to any holder to report or remit when the holder 17 submits a written request for an extension before the date a 18 report or remittance is due. 19 (e) Whenever the State TreasurerDirectorcharges a 20 holder or assesses a fee provided for in this Section, he 21 shall serve notice upon the holder by personal service or by 22 delivering the notice by certified mail, return receipt 23 required, through the United States Postal Service to the 24 holder. 25 (f) A holder may contest a charge or other fee issued by 26 the State TreasurerDirectorby requesting in writing an 27 administrative hearing within 15 business days of the receipt 28 of the State Treasurer'sDirector'snotice of the charge or 29 fee. The hearing shall be held at a time and place 30 designated by the State TreasurerDirector. 31 (g) The State Treasurer'sDirector'sfinding subjecting 32 a holder to a charge or other fee shall become a final order 33 under the Administrative Review Law upon the failure of the 34 holder to demand a hearing within 15 business days. HB1281 Engrossed -62- LRB9100404SMdvC 1 (h) If a hearing is held, the State TreasurerDirector2 shall issue an order affirming, modifying, or overruling the 3 charge or other fee. The order shall be a final order under 4 the Administrative Review Law. 5 (i) A holder shall not be charged for failing to remit 6 past due unclaimed property pursuant to the State's 7Department'sexamination and demand for remittance when the 8 holder, in good faith, contests all or part of the finding, 9 until a final order reviewing the remittance is entered by a 10 hearing officer or the circuit court. With regard to 11 contested examinations, the charges, fees, or interest shall 12 not accrue during the period from the holder's filing of the 13 request for a hearing until the date of the final order. 14 However, a holder may be charged for failing to remit any 15 undisputed amounts of unclaimed property that are not being 16 contested in an administrative hearing or court action. 17 (j) The administrative charges, fees, and interest 18 charges provided for in this Section shall not apply to 19 property held by a trust division or trust department or by a 20 trust company, or affiliate of any of the foregoing that 21 provides nondealer corporate custodial services for 22 securities or securities transactions, organized under the 23 laws of this or another state or the United States. 24 As of January 1, 1998, this subsection shall not be 25 applicable unless the Department of Financial Institutions 26 has commenced, but not finalized, an examination of the 27 holder as of that date and the property is included in a 28 final examination report for the period covered by the 29 examination. 30 (k) In the conduct of a hearing initiated by a holder 31 under this Act, the State TreasurerDirectorhas the power to 32 administer oaths, subpoena witnesses, and compel the 33 production of books, papers, documents, or records relevant 34 to the hearing under this Act. HB1281 Engrossed -63- LRB9100404SMdvC 1 (l) The provisions of this Section apply only to reports 2 due and examinations commenced after the effective date of 3 this amendatory Act of 1993. 4 (Source: P.A. 90-167, eff. 7-23-97.) 5 (765 ILCS 1025/26) (from Ch. 141, par. 126) 6 Sec. 26. The State Treasurer, Director of Financial 7 Institutions, and the Commissioner of Banks and Real Estate 8 areDirector ishereby authorized to make necessary rules and 9 regulations to carry out the provisions of this Act. 10 (Source: Laws 1961, p. 3426.) 11 Section 40. The Business Corporation Act of 1983 is 12 amended by changing Section 12.70 as follows: 13 (805 ILCS 5/12.70) (from Ch. 32, par. 12.70) 14 Sec. 12.70. Deposit of amount due certain shareholders. 15 Upon the distribution of the assets of a corporation among 16 its shareholders, the distributive portion to which a 17 shareholder would be entitled who is unknown or can not be 18 found, or who is under disability and there is no person 19 legally competent to receive such distributive portion, shall 20 be presumed abandoned and reported and delivered to the State 21 TreasurerDirector of Financial Institutionsand become 22 subject to the provision of the Uniform Disposition of 23 Unclaimed Property Act. In the event such distribution be 24 made other than in cash, such distributive portion of the 25 assets shall be reduced to cash before being so reported and 26 delivered. 27 (Source: P.A. 83-1025.) 28 Section 45. The General Not For Profit Corporation Act 29 of 1986 is amended by changing Section 112.70 as follows: HB1281 Engrossed -64- LRB9100404SMdvC 1 (805 ILCS 105/112.70) (from Ch. 32, par. 112.70) 2 Sec. 112.70. Deposit of amount due. Upon the 3 distribution of the assets of a corporation, the distributive 4 portion to which a person would be entitled who is unknown or 5 cannot be found, or who is under disability and there is no 6 person legally competent to receive such distributive 7 portion, shall be presumed abandoned and reported and 8 delivered to the State TreasurerDirector of Financial9Institutionsand become subject to the provision of the 10 Uniform Disposition of Unclaimed Property Act. In the event 11 such distribution be made other than in cash, such 12 distributive portion of the assets shall be reduced to cash 13 before being so reported and delivered. 14 (Source: P.A. 84-1423.) 15 Section 99. Effective date. This Act takes effect July 16 1, 1999, except that this Section and the provisions adding 17 Sections 0.02, 0.03, 0.04, 0.05, and 0.06 to the State 18 Treasurer Act, Section 18.1 to the Financial Institutions 19 Code, and Section 0.05 to the Uniform Disposition of 20 Unclaimed Property Act take effect upon becoming law. HB1281 Engrossed -65- LRB9100404SMdvC 1 INDEX 2 Statutes amended in order of appearance 3 15 ILCS 505/0.02 new 4 15 ILCS 505/0.03 new 5 15 ILCS 505/0.04 new 6 15 ILCS 505/0.05 new 7 15 ILCS 505/0.06 new 8 20 ILCS 1205/7 from Ch. 17, par. 108 9 20 ILCS 1205/18.1 new 10 205 ILCS 5/65 from Ch. 17, par. 377 11 205 ILCS 305/62 from Ch. 17, par. 4463 12 205 ILCS 405/19.3 from Ch. 17, par. 4838 13 205 ILCS 620/6-14 from Ch. 17, par. 1556-14 14 215 ILCS 5/210 from Ch. 73, par. 822 15 755 ILCS 5/2-1 from Ch. 110 1/2, par. 2-1 16 755 ILCS 5/2-2 from Ch. 110 1/2, par. 2-2 17 765 ILCS 1025/0.05 new 18 765 ILCS 1025/1 from Ch. 141, par. 101 19 765 ILCS 1025/2 from Ch. 141, par. 102 20 765 ILCS 1025/10.5 21 765 ILCS 1025/11 from Ch. 141, par. 111 22 765 ILCS 1025/11.5 23 765 ILCS 1025/12 from Ch. 141, par. 112 24 765 ILCS 1025/13 from Ch. 141, par. 113 25 765 ILCS 1025/14 from Ch. 141, par. 114 26 765 ILCS 1025/15 from Ch. 141, par. 115 27 765 ILCS 1025/16 from Ch. 141, par. 116 28 765 ILCS 1025/17 from Ch. 141, par. 117 29 765 ILCS 1025/18 from Ch. 141, par. 118 30 765 ILCS 1025/19 from Ch. 141, par. 119 31 765 ILCS 1025/20 from Ch. 141, par. 120 32 765 ILCS 1025/21 from Ch. 141, par. 121 33 765 ILCS 1025/22 from Ch. 141, par. 122 34 765 ILCS 1025/23 from Ch. 141, par. 123 HB1281 Engrossed -66- LRB9100404SMdvC 1 765 ILCS 1025/23.5 2 765 ILCS 1025/24 from Ch. 141, par. 124 3 765 ILCS 1025/24.5 4 765 ILCS 1025/25 from Ch. 141, par. 125 5 765 ILCS 1025/25.5 6 765 ILCS 1025/26 from Ch. 141, par. 126 7 805 ILCS 5/12.70 from Ch. 32, par. 12.70 8 805 ILCS 105/112.70 from Ch. 32, par. 112.70