Sen. Michael W. Halpin

Filed: 4/5/2024

 

 


 

 


 
10300SB3696sam003LRB103 37687 SPS 71972 a

1
AMENDMENT TO SENATE BILL 3696

2    AMENDMENT NO. ______. Amend Senate Bill 3696 by deleting
3line 4 on page 1 through line 15 on page 4; and
 
4on page 4, line 21, after "3-105,", by inserting "3-312,"; and
 
5on page 4, line 23, after "9-105,", by inserting "9-201,"; and
 
6on page 17, line 18, by replacing "that" with "which"; and
 
7on page 23, line 19, by replacing "that" with "which"; and
 
8on page 24, line 7, by replacing "that" with "which"; and
 
9on page 39, immediately below line 23, by inserting the
10following:
 
11    "(810 ILCS 5/3-312)  (from Ch. 26, par. 3-312)

 

 

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1    Sec. 3-312. Lost, destroyed, or stolen cashier's check,
2teller's check, or certified check.
3    (a) In this Section:
4        (1) "Check" means a cashier's check, teller's check,
5    or certified check.
6        (2) "Claimant" means a person who claims the right to
7    receive the amount of a cashier's check, teller's check,
8    or certified check that was lost, destroyed, or stolen.
9        (3) "Declaration of loss" means a written statement,
10    made under penalty of perjury, to the effect that (i) the
11    declarer lost possession of a check, (ii) the declarer is
12    the drawer or payee of the check, in the case of a
13    certified check, or the remitter or payee of the check, in
14    the case of a cashier's check or teller's check, (iii) the
15    loss of possession was not the result of a transfer by the
16    declarer or of a lawful seizure, and (iv) the declarer
17    cannot reasonably obtain possession of the check because
18    the check was destroyed, its whereabouts cannot be
19    determined, or it is in the wrongful possession of an
20    unknown person or a person that cannot be found or is not
21    amenable to service of process.
22        (4) "Obligated bank" means the issuer of a cashier's
23    check or teller's check or the acceptor of a certified
24    check.
25    (b) A claimant may assert a claim to the amount of a check
26by a communication to the obligated bank describing the check

 

 

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1with reasonable certainty and requesting payment of the amount
2of the check, if (i) the claimant is the drawer or payee of a
3certified check or the remitter or payee of a cashier's check
4or teller's check, (ii) the communication contains or is
5accompanied by a declaration of loss of the claimant with
6respect to the check, (iii) the communication is received at a
7time and in a manner affording the bank a reasonable time to
8act on it before the check is paid, and (iv) the claimant
9provides reasonable identification if requested by the
10obligated bank. Delivery of a declaration of loss is a
11warranty of the truth of the statements made in the
12declaration. If a claim is asserted in compliance with this
13subsection, the following rules apply:
14        (1) The claim becomes enforceable at the later of (i)
15    the time the claim is asserted, or (ii) the 90th day
16    following the date of the check, in the case of a cashier's
17    check or teller's check, or the 90th day following the
18    date of the acceptance, in the case of a certified check.
19        (2) Until the claim becomes enforceable, it has no
20    legal effect and the obligated bank may pay the check or,
21    in the case of a teller's check, may permit the drawee to
22    pay the check. Payment to a person entitled to enforce the
23    check discharges all liability of the obligated bank with
24    respect to the check.
25        (3) If the claim becomes enforceable before the check
26    is presented for payment, the obligated bank is not

 

 

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1    obliged to pay the check.
2        (4) When the claim becomes enforceable, the obligated
3    bank becomes obliged to pay the amount of the check to the
4    claimant if payment of the check has not been made to a
5    person entitled to enforce the check. Subject to Section
6    4-302(a)(1), payment to the claimant discharges all
7    liability of the obligated bank with respect to the check.
8    (c) If the obligated bank pays the amount of a check to a
9claimant under subsection (b)(4) and the check is presented
10for payment by a person having rights of a holder in due
11course, the claimant is obliged to (i) refund the payment to
12the obligated bank if the check is paid, or (ii) pay the amount
13of the check to the person having rights of a holder in due
14course if the check is dishonored.
15    (d) If a claimant has the right to assert a claim under
16subsection (b) and is also a person entitled to enforce a
17cashier's check, teller's check, or certified check that is
18lost, destroyed, or stolen, the claimant may assert rights
19with respect to the check either under this Section or Section
203-309.
21(Source: P.A. 87-582; 87-895; 87-1135.)"; and
 
22on page 113, immediately below line 16, by inserting the
23following:
 
24    "(810 ILCS 5/9-201)  (from Ch. 26, par. 9-201)

 

 

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1    Sec. 9-201. General effectiveness of security agreement.
2    (a) General effectiveness. Except as otherwise provided in
3the Uniform Commercial Code, a security agreement is effective
4according to its terms between the parties, against purchasers
5of the collateral, and against creditors.
6    (b) Applicable consumer laws and other law. A transaction
7subject to this Article is subject to any applicable rule of
8law, statute, or regulation which establishes a different rule
9for consumers, including, without limitation:
10        (1) the Retail Installment Sales Act;
11        (2) the Motor Vehicle Retail Installment Sales Act;
12        (3) Article II of Chapter 3 of the Illinois Vehicle
13    Code;
14        (4) Article IIIB of the Boat Registration and Safety
15    Act;
16        (5) the Pawnbroker Regulation Act of 2023;
17        (6) the Motor Vehicle Leasing Act;
18        (7) the Consumer Installment Loan Act; and
19        (8) the Consumer Deposit Security Act of 1987; .
20        (9) the Predatory Loan Prevention Act;
21        (10) the Consumer Fraud and Deceptive Business
22    Practices Act;
23        (11) any other statute or regulation that regulates
24    the rates, charges, agreements, and practices for loans,
25    credit sales, or other extensions of credit; and
26        (12) any consumer protection statute or regulation.

 

 

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1    (c) Other applicable law controls. In case of conflict
2between this Article and a rule of law, statute, or regulation
3described in subsection (b), the rule of law, statute, or
4regulation controls. Failure to comply with a rule of law,
5statute, or regulation described in subsection (b) has only
6the effect such rule of law, statute, or regulation specifies.
7    (d) Further deference to other applicable law. This
8Article does not:
9        (1) validate any rate, charge, agreement, or practice
10    that violates a rule of law, statute, or regulation
11    described in subsection (b); or
12        (2) extend the application of the rule of law,
13    statute, or regulation to a transaction not otherwise
14    subject to it.
15(Source: P.A. 103-585, eff. 3-22-24.)"; and
 
16on page 122, line 21, by replacing "document of title" with
17"document"; and
 
18on page 137, line 13, by replacing "that" with "which"; and
 
19on page 143, by replacing lines 22 through 25 as follows:
20"documents, electronic money, investment property,
21letter-of-credit rights investment property, deposit accounts,
22electronic chattel paper, letter-of-credit rights, electronic
23documents, or beneficial interests in Illinois land trusts

 

 

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1may"; and
 
2on page 144, by replacing lines 7 through 10 as follows:
3"documents, electronic money, letter-of-credit rights deposit
4accounts, electronic chattel paper, letter-of-credit rights,
5electronic documents, or beneficial interests in Illinois land
6trusts is perfected by control under Section"; and
 
7on page 164, line 2, by deleting "tangible"; and
 
8on page 187, by replacing line 12 with the following:
9    "(a) "Notification date." In this Section, "notification";
10and
 
11on page 194, immediately below line 25, by inserting the
12following:
13"(Name and address of secured party)
14(Date)"; and
 
15on page 196, line 21, by replacing "(a)(3)" with "(a)(4)"; and
 
16on page 196, line 24, by replacing "(a)(3)" with "(a)(4)"; and
 
17on page 208, by replacing line 2 with the following:
18    "(a) "Transfer statement." In this Section, "transfer";
19and
 

 

 

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1on page 222, by replacing lines 10 through 15 with the
2following:
3    "(b) Applicable consumer law and other laws. A transaction
4subject to this Article is subject to any applicable rule of
5law, statute, or regulation which establishes a different rule
6for consumers including, without limitation, the Consumer
7Installment Loan Act, the Predatory Loan Prevention Act, the
8Consumer Fraud and Deceptive Business Practices Act, any other
9statute or regulation that regulates the rates, charges,
10agreements, and practices for loans, credit sales, or other
11extensions of credit, and any consumer protection statute or
12regulation."; and
 
13on page 230, line 18, by replacing "that" with "which".