State of Illinois
91st General Assembly
Legislation

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[ Introduced ][ Enrolled ][ Senate Amendment 001 ]

91_SB1421eng

 
SB1421 Engrossed                               LRB9112239JSpc

 1        AN  ACT  to  create  the  Data  Processing  Services  for
 2    Financial Institutions Act.

 3        Be  it  enacted  by  the People of the State of Illinois,
 4    represented in the General Assembly:

 5        Section 1.  Short title. This Act may  be  cited  as  the
 6    Data Processing Services for Financial Institutions Act.

 7        Section   5.  Definitions.  As  used  in  this  Act,  the
 8    following terms shall have the following meanings:
 9        "Corporate fiduciary" has the meaning  ascribed  to  that
10    term in the Corporate Fiduciary Act.
11        "Depository  institution"  means a bank, savings and loan
12    association, savings bank, or credit  union  chartered  under
13    the laws of Illinois or of the United States.
14        "Financial  institution" means any depository institution
15    or corporate fiduciary that has its main office  in  Illinois
16    and   includes  foreign  banking  corporations  that  receive
17    certificates of authority from the Office of Banks  and  Real
18    Estate under the Foreign Banking Office Act.
19        "Independent  data  processing  servicer" means an entity
20    that  provides  electronic  data  processing  services  to  a
21    financial institution, but does not include an entity to  the
22    extent  the  entity  processes  interchange  transactions, as
23    defined in the Electronic Fund Transfer Act.
24        "Interface   agreement"   means   a   written   agreement
25    specifying the terms and conditions under which an  interface
26    of  communications, data, or systems between independent data
27    processing servicers shall be accomplished.
28        "Main office" means the location designated as  the  main
29    office  or  principal  place  of  business  in  the  charter,
30    articles of incorporation, or certificate of authority of the
31    depository institution or corporate fiduciary.
 
SB1421 Engrossed            -2-                LRB9112239JSpc
 1        Section    10.  Interface    between   independent   data
 2    processing servicers.
 3        (a)  Whenever a financial institution contracts  with  an
 4    independent  data  processing  servicer  for  any  product or
 5    service that requires an interface of  communications,  data,
 6    or systems with a second independent data processing servicer
 7    with  which  the  financial  institution  has  a  contractual
 8    relationship, the second independent data processing servicer
 9    shall  permit the necessary interface to occur pursuant to an
10    interface agreement. The interface  agreement  shall  contain
11    commercially  reasonable  fees  and charges and shall provide
12    for commercially reasonable  access  to  necessary  technical
13    data.
14        (b)  An   independent   data  processing  servicer  shall
15    exercise reasonable promptness in  negotiating  an  interface
16    agreement  under  the  provisions  of  this Act and shall not
17    exercise undue delay or otherwise act in bad faith as a means
18    of avoiding the negotiation or implementation of an interface
19    agreement.

20        Section 15.  Arbitration of disputes.  In the case  of  a
21    dispute  between  the  independent  data processing servicers
22    regarding any terms or conditions of an interface  agreement,
23    or  in  the event that a dispute regarding proposed terms and
24    conditions results in the failure  of  the  independent  data
25    processing  servicers to enter into an interface agreement as
26    required by this Act, the parties shall  be  deemed  to  have
27    agreed  to  the  appointment  of  an arbitrator for a binding
28    resolution of the dispute consistent with the  provisions  of
29    the  Uniform Arbitration Act unless the parties agree to some
30    other process for binding arbitration or unless the aggrieved
31    party seeks court action. Any decision by the  arbitrator  in
32    connection  with  any  arbitration  shall  be determined only
33    after an opportunity for a hearing. Anything to the  contrary
 
SB1421 Engrossed            -3-                LRB9112239JSpc
 1    in this Act notwithstanding, any right of arbitration granted
 2    under  this  Act  is  subject to the right of either party to
 3    seek court action.

 4        Section 99.  Effective date. This Act takes  effect  upon
 5    becoming law.

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