(a)Not less than one hundred eighty days before a presumption of abandonment is to take effect in respect to property subject to section 3-60b or 3-60c and within one year before a presumption of abandonment is to take effect in respect to all other property subject to this part, and if the owner's claim is not barred by law, the holder shall notify the owner thereof and take reasonable steps to prevent abandonment from being presumed, at a minimum, by sending such notice by first class mail directed to the owner's last-known address, and, if a holder has received an owner's consent for the electronic delivery of any notices that are required by law, by electronic mail directed to the owner's last-known electronic mail address, that evidence of interest must be indicated as required by th
Free access — add to your briefcase to read the full text and ask questions with AI
(a) Not less than one hundred eighty days before a presumption of abandonment is to take effect in respect to property subject to section 3-60b or 3-60c and within one year before a presumption of abandonment is to take effect in respect to all other property subject to this part, and if the owner's claim is not barred by law, the holder shall notify the owner thereof and take reasonable steps to prevent abandonment from being presumed, at a minimum, by sending such notice by first class mail directed to the owner's last-known address, and, if a holder has received an owner's consent for the electronic delivery of any notices that are required by law, by electronic mail directed to the owner's last-known electronic mail address, that evidence of interest must be indicated as required by this part or such property will be transferred to the Treasurer and will be subject to escheat to the state. If the property presumed abandoned is a security, virtual currency or tangible property from a safe deposit box, the holder's notice shall indicate that such property may be liquidated either prior to or following its reporting to the Treasurer and that after such liquidation will be limited to the proceeds of such liquidation. Nothing in this subsection shall be construed to require an owner to consent to the electronic delivery of notices for communications regarding unclaimed property. (b) Not later than ninety days after the close of the calendar year in which property is presumed abandoned, the holder shall pay or deliver such property to the Treasurer and file, on forms that the Treasurer shall provide, a report of unclaimed property. Each report shall be verified and shall include: (1) The name, if known, last-known physical and electronic mail address, if any, and last-known telephone number, if any, of each person appearing to be the owner of such property; (2) in case of unclaimed funds of an insurance company, the full name of the insured or annuitant and beneficiary and his or her last-known address appearing on the insurance company's records; (3) the nature and identifying number, if any, or description of the property and the amount appearing from the records to be due; (4) the date when the property became payable, demandable or returnable and the date of the last transaction with the owner with respect to the property; (5) if the holder is a successor to other holders, or if the holder has changed the holder's name, all prior known names and addresses of each holder of the property; and (6) such other information as the Treasurer may require. (c) Verification, if made by a partnership, shall be executed by a partner; if made by an unincorporated association or private corporation, by an officer; and if made by a public corporation, by its chief fiscal officer. (d) The Treasurer shall keep a permanent record of all reports submitted to the Treasurer pursuant to this section. (e) Except for claims paid under section 3-67a and except as provided in subsection (e) of section 3-70a , no owner shall be entitled to any interest, income or other increment which may accrue to property presumed abandoned from and after the date of payment or delivery to the Treasurer. (f) The Treasurer may decline to receive any property the value of which is less than the cost of giving notice or holding sale, or may postpone taking possession until a sufficient sum accumulates. (g) The Treasurer, or any officer or agency designated by the Treasurer, may examine any person on oath or affirmation, or the records of any person or any agent of the person including, but not limited to, a dividend disbursement agent or transfer agent of a business association, banking organization or insurance company that is the holder of property presumed abandoned to determine whether the person or agent has complied with this part. The Treasurer may conduct the examination even if the person or agent believes the person or agent is not in possession of any property that must be paid, delivered or reported under this part. The Treasurer may bring an action in a court of appropriate jurisdiction to enforce the provisions of this part. (h) A record of the issuance of a check, draft or similar instrument is prima facie evidence of the obligation represented by the check, draft or similar instrument. In claiming property from a holder who is also the issuer, the Treasurer's burden of proof as to the existence and amount of the property and its abandonment is satisfied by showing issuance of the instrument and passage of the requisite period of abandonment. Defenses of payment, satisfaction, discharge and want of consideration are affirmative defenses that shall be established by the holder. (i) Notwithstanding the provisions of subsection (b) of this section, the holder of personal property presumed abandoned pursuant to subdivision (5) of subsection (a) of section 3-57a or section 3-57b shall (1) sell such property and pay the proceeds arising from such sale, excluding any charges that may lawfully be withheld, to the Treasurer, unless such property consists of military medals, in which case such property shall not be sold, and (2) provide the Treasurer with records deemed appropriate by the Treasurer of property so presumed abandoned. The holder shall complete the sale of such property and deliver the net proceeds to the Treasurer not later than thirty days after filing the report required under subsection (b) of this section. A holder of tangible, personal property may contract with a third party to store and sell such property and to pay the proceeds arising from such sale, excluding any charges that may be lawfully withheld, to the Treasurer, provided the third party holds a surety bond or other form of insurance coverage with respect to such activities. Any holder who sells property pursuant to subsection (a) of section 3-57a or section 3-57b and remits the excess proceeds to the Treasurer or who transmits tangible, personal property to a bonded or insured third party for such purposes, shall not be responsible for any claims related to the sale or transmission of the property or proceeds to the Treasurer. If the Treasurer exempts any such property from being remitted or sold pursuant to this subsection, whether by regulations or guidelines, the holder of such property may dispose of such property in any manner such holder deems appropriate and such holder shall not be responsible for any claims related to the disposition of such property or any claims to the property itself. For purposes of the sale of personal property presumed abandoned under subdivision (5) of subsection (a) of section 3-57a or section 3-57b , charges that may lawfully be withheld include costs of storage, appraisal, advertising and sales commissions as well as lawful charges owing under the contract governing the safe deposit box rental. (j) In the event military medals are presumed abandoned pursuant to subdivision (5) of subsection (a) of section 3-57a , a banking or financial organization shall transmit such medals to the Department of Veterans Affairs in accordance with procedures established by the Treasurer. The Treasurer and Commissioner of Veterans Affairs shall enter into a memorandum of understanding concerning the handling of such medals and the Department of Veterans Affairs shall hold such medals in custody pursuant to such memorandum. The Treasurer may make any information obtained pursuant to this section, including any photograph or other visual depiction of a military medal but excluding Social Security numbers, available to the public to facilitate the identification of the original owner of such medal or such owner's heirs or beneficiaries.
(1961, P.A. 540, S. 10; 1963, P.A. 114, S. 1; 1972, P.A. 209, S. 1, 2; Nov. Sp. Sess. P.A. 81-1, S. 8, 10; P.A. 89-358, S. 2; P.A. 90-212, S. 2, 4; P.A. 91-114, S. 1; June 30 Sp. Sess. P.A. 03-1, S. 76; May Sp. Sess. P.A. 04-2, S. 47; P.A. 14-217, S. 55; P.A. 16-167, S. 11; P.A. 22-118, S. 417; P.A. 24-114, S. 3.) History: 1963 act added Subsec. (h); 1972 act allowed aggregate reporting of items valued at $10 or less in Subsec. (b) and allowed aggregate reporting of items valued at more than $10 but less than $25 with approval of treasurer; Nov. Sp. Sess. P.A. 81-1 amended Subsec. (b)(3) to require report for items having value of $25 or less rather than $10 or less as was previously the case; P.A. 89-358 added the exception to Subsec. (e) for claims paid under Sec. 3-67a; P.A. 90-212 amended Subsec. (e) by adding exception for the provisions of Sec. 3-70a(d); P.A. 91-114 amended Subsecs. (b) and (h) to increase the level for aggregate reporting from a value of $25 to a value of $50; June 30 Sp. Sess. P.A. 03-1 amended Subsec. (a) by adding provisions re 180-day notice period in respect to property subject to Sec. 3-60b or 3-60c and making conforming changes re notice period in respect to all other property subject to part, amended Subsec. (b) by replacing references to life insurance corporation with references to insurance company and making technical changes, amended Subsecs. (d), (e), (f) and (h) by making technical changes, amended Subsec. (g) by replacing provision re examination of person who Treasurer has reason to believe has knowledge of or has failed to report or transmit property presumed abandoned with provision re examination of person or agent that is the holder of property presumed abandoned to determine whether person or agent complied with part, adding provision re examination when person or agent believes the person or agent is not in possession of property that must be paid, delivered or reported under part and making a technical change, added Subsec. (i) re holder who is issuer of instrument, and added Subsec. (j) re holder of personal property presumed abandoned pursuant to Sec. 3-57a(a)(5), effective August 16, 2003; May Sp. Sess. P.A. 04-2 amended Subsec. (j) to add provisions re contracts with third parties to store and sell abandoned property, the responsibility of holders in connection with sale or transmission of proceeds to the Treasurer, disposal of property by holders in certain circumstances and charges that may be lawfully withheld from proceeds, effective May 12, 2004; P.A. 14-217 amended Subsec. (j) by designating existing provision re sale of abandoned property and payment to Treasurer as Subdiv. (1) and amending same to exclude military medals and by adding Subdiv. (2) re duty to provide records of abandoned property to Treasurer and added Subsec. (k) re military medals presumed abandoned, effective July 1, 2014; P.A. 16-167 amended Subsec. (k) to replace “Department of Veterans' Affairs” with “Department of Veterans Affairs” and to replace “Commissioner of Veterans' Affairs” with “Commissioner of Veterans Affairs”, effective July 1, 2016; P.A. 22-118 amended Subsec. (b) by deleting reference to aggregate items having value of less than $50 in Subdiv. (3) and making technical changes, amended Subsec. (d) by adding “pursuant to this section”, deleted former Subsec. (h) re aggregate reporting of items with value of more than $10 but less than $50, and redesignated existing Subsecs. (i) to (k) as Subsecs. (h) to (j), effective January 1, 2023; P.A. 24-114 amended Subsec. (a) by making technical changes, adding reference to holder's duty to take steps to prevent abandonment, adding provisions re electronic mail notification, notification re potential liquidation of security, virtual currency or safe deposit box tangible property and re consent for electronic communications, amended Subsec. (b) by adding reference to physical and electronic mail address and telephone number and amended Subsec. (i) by adding 30-day deadline for property sale completion and report filing, making technical changes and adding references to Secs. 3-57a and 3-57b, effective July 1, 2024. Cited. 43 CS 278.