Illinois’ New Unclaimed Property Act – Impact on Business to Business Transactions

illinois.jpgEffective January 1, 2018, Illinois’ new Unclaimed Property Act, entitled Revised Uniform Unclaimed Property Act (IL RUUPA), became law.  The IL RUUPA is an implementation of the Uniform Law Commission’s 2016 Revised Uniform Unclaimed Property Act (ULC RUUPA).   

The IL RUUPA includes almost all aspects of the ULC RUUPA, including the following:

  • record retention requirements (10 years after the later of the date the report was filed or the last date a timely report was due to be filed)
  • electronic due diligence
  • a reduction in general dormancy periods from 5 to 3 years
  • the exclusion from reporting of loyalty cards and game-related digital content 

However, the most significant aspect of the IL RUUPA affects business to business (B2B) transactions in two important ways.

Firstly, the IL RUUPA no longer exempts B2B transactions.

Secondly, the IL RUUPA also includes a transitional requirement that holders retroactively report property types that were previously exempt.  This specific provision [section 15-1503(a)] states that holders are to: “include all items of property that would have been presumed abandoned during the 5-year period preceding the effective date of this Act as if this Act had been in effect during that period” on their initial report.    Due to IL’s new general dormancy period of 3 years, this means that IL B2B transactions with last contact dates of 1/1/10 and forward that were not previously reported but are now considered dormant, must be reported on a holder’s 2018 report.

Illinois 2018 report is due by 5/1/18, it is vitally important that holders immediately analyze their books and records to identify remaining unresolved transactions that may be covered by the transitional requirement.  Once this analysis has been performed, and transactions identified, holders must perform the normal statutory procedures, including due diligence mailings.

If your company has transactions that may be impacted by the IL RUUPA, and you are uncertain regarding what actions you should take, contact MarketSphere Unclamed Property Specialists at 844.357.1099 or immediately to talk about your options.   

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