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91_SB1421sam001
LRB9112239JSgcam01
1 AMENDMENT TO SENATE BILL 1421
2 AMENDMENT NO. . Amend Senate Bill 1421 by replacing
3 the title with the following:
4 "AN ACT to create the Data Processing Services for
5 Financial Institutions Act."; and
6 by replacing everything after the enacting clause with the
7 following:
8 "Section 1. Short title. This Act may be cited as the
9 Data Processing Services for Financial Institutions Act.
10 Section 5. Definitions. As used in this Act, the
11 following terms shall have the following meanings:
12 "Corporate fiduciary" has the meaning ascribed to that
13 term in the Corporate Fiduciary Act.
14 "Depository institution" means a bank, savings and loan
15 association, savings bank, or credit union chartered under
16 the laws of Illinois or of the United States.
17 "Financial institution" means any depository institution
18 or corporate fiduciary that has its main office in Illinois
19 and includes foreign banking corporations that receive
20 certificates of authority from the Office of Banks and Real
21 Estate under the Foreign Banking Office Act.
-2- LRB9112239JSgcam01
1 "Independent data processing servicer" means an entity
2 that provides electronic data processing services to a
3 financial institution, but does not include an entity to the
4 extent the entity processes interchange transactions, as
5 defined in the Electronic Fund Transfer Act.
6 "Interface agreement" means a written agreement
7 specifying the terms and conditions under which an interface
8 of communications, data, or systems between independent data
9 processing servicers shall be accomplished.
10 "Main office" means the location designated as the main
11 office or principal place of business in the charter,
12 articles of incorporation, or certificate of authority of the
13 depository institution or corporate fiduciary.
14 Section 10. Interface between independent data
15 processing servicers.
16 (a) Whenever a financial institution contracts with an
17 independent data processing servicer for any product or
18 service that requires an interface of communications, data,
19 or systems with a second independent data processing servicer
20 with which the financial institution has a contractual
21 relationship, the second independent data processing servicer
22 shall permit the necessary interface to occur pursuant to an
23 interface agreement. The interface agreement shall contain
24 commercially reasonable fees and charges and shall provide
25 for commercially reasonable access to necessary technical
26 data.
27 (b) An independent data processing servicer shall
28 exercise reasonable promptness in negotiating an interface
29 agreement under the provisions of this Act and shall not
30 exercise undue delay or otherwise act in bad faith as a means
31 of avoiding the negotiation or implementation of an interface
32 agreement.
-3- LRB9112239JSgcam01
1 Section 15. Arbitration of disputes. In the case of a
2 dispute between the independent data processing servicers
3 regarding any terms or conditions of an interface agreement,
4 or in the event that a dispute regarding proposed terms and
5 conditions results in the failure of the independent data
6 processing servicers to enter into an interface agreement as
7 required by this Act, the parties shall be deemed to have
8 agreed to the appointment of an arbitrator for a binding
9 resolution of the dispute consistent with the provisions of
10 the Uniform Arbitration Act unless the parties agree to some
11 other process for binding arbitration or unless the aggrieved
12 party seeks court action. Any decision by the arbitrator in
13 connection with any arbitration shall be determined only
14 after an opportunity for a hearing. Anything to the contrary
15 in this Act notwithstanding, any right of arbitration granted
16 under this Act is subject to the right of either party to
17 seek court action.
18 Section 99. Effective date. This Act takes effect upon
19 becoming law.".