HB1301 Engrossed

LRB094 03887 AMC 33898 b






1
    AN ACT concerning regulation.

 
2
    Be it enacted by the People of the State of Illinois,
 
3
represented in the General Assembly:


 
4
    Section 5. The Illinois Banking Act is amended  by changing 
5
Section 48.1 as follows:
 



6
    (205 ILCS 5/48.1)  (from Ch. 17, par. 360)



7
    Sec. 48.1. Customer financial records; confidentiality. 

8
    (a) For the purpose of this Section, the term "financial 
9
records" means any
original, any copy, or any summary of:


10
        (1) a document granting signature
authority over a 
11
    deposit or account;


12
        (2) a statement, ledger card or other
record on any 
13
    deposit or account, which shows each transaction in or with

14
    respect to that account;


15
        (3) a check, draft or money order drawn on a bank
or 
16
    issued and payable by a bank; or


17
        (4) any other item containing
information pertaining 
18
    to any relationship established in the ordinary
course of a 
19
    bank's business between a bank and its customer, including

20
    financial statements or other financial information 
21
    provided by the customer.

22
    (b) This Section does not prohibit:


23
        (1) The preparation, examination, handling or 
24
    maintenance of any
financial records by any officer, 
25
    employee or agent of a bank
having custody of the records, 
26
    or the examination of the records by a
certified public 
27
    accountant engaged by the bank to perform an independent

28
    audit.


29
        (2) The examination of any financial records by, or the 
30
    furnishing of
financial records by a bank to, any officer, 
31
    employee or agent of (i) the
Commissioner of Banks and Real 
32
    Estate, (ii) after May
31, 1997, a state regulatory 
 


 






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1
    authority authorized to examine a branch of a
State bank 
2
    located in another state, (iii) the Comptroller of the 
3
    Currency,
(iv) the Federal Reserve Board, or (v) the 
4
    Federal Deposit Insurance
Corporation for use solely in the 
5
    exercise of his duties as an officer,
employee, or agent.


6
        (3) The publication of data furnished from financial 
7
    records
relating to customers where the data cannot be 
8
    identified to any
particular customer or account.


9
        (4) The making of reports or returns required under 
10
    Chapter 61 of
the Internal Revenue Code of 1986.


11
        (5) Furnishing information concerning the dishonor of 
12
    any negotiable
instrument permitted to be disclosed under 
13
    the Uniform Commercial Code.


14
        (6) The exchange in the regular course of business of 
15
    (i) credit
information
between a bank and other banks or 
16
    financial institutions or commercial
enterprises, directly 
17
    or through a consumer reporting agency or (ii)
financial 
18
    records or information derived from financial records 
19
    between a bank
and other banks or financial institutions or 
20
    commercial enterprises for the
purpose of conducting due 
21
    diligence pursuant to a purchase or sale involving
the bank 
22
    or assets or liabilities of the bank.


23
        (7) The furnishing of information to the appropriate 
24
    law enforcement
authorities where the bank reasonably 
25
    believes it has been the victim of a
crime.


26
        (8) The furnishing of information under the Uniform 
27
    Disposition of
Unclaimed Property Act.


28
        (9) The furnishing of information under the Illinois 
29
    Income Tax Act and
the Illinois Estate and 
30
    Generation-Skipping Transfer Tax Act.


31
        (10) The furnishing of information under the federal 
32
    Currency
and Foreign Transactions Reporting Act Title 31, 
33
    United States
Code, Section 1051 et seq.


34
        (11) The furnishing of information under any other 
35
    statute that
by its terms or by regulations promulgated 
36
    thereunder requires the disclosure
of financial records 
 


 






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1
    other than by subpoena, summons, warrant, or court order.


2
        (12) The furnishing of information about the existence 
3
    of an account
of a person to a judgment creditor of that 
4
    person who has made a written
request for that information.


5
        (13) The exchange in the regular course of business of 
6
    information
between commonly owned banks in connection 
7
    with a transaction authorized
under paragraph (23) of

8
    Section 5 and conducted at an affiliate facility.


9
        (14) The furnishing of information in accordance with 
10
    the federal
Personal Responsibility and Work Opportunity 
11
    Reconciliation Act of 1996.
Any bank governed by this Act 
12
    shall enter into an agreement for data
exchanges with a 
13
    State agency provided the State agency
pays to the bank a 
14
    reasonable fee not to exceed its
actual cost incurred.  A 
15
    bank providing
information in accordance with this item 
16
    shall not be liable to any account
holder or other person 
17
    for any disclosure of information to a State agency, for

18
    encumbering or surrendering any assets held by the bank in 
19
    response to a lien
or order to withhold and deliver issued 
20
    by a State agency, or for any other
action taken pursuant 
21
    to this item, including individual or mechanical errors,

22
    provided the action does not constitute gross negligence or 
23
    willful misconduct.
A bank shall have no obligation to 
24
    hold, encumber, or surrender assets until
it has been 
25
    served with a subpoena, summons, warrant, court or 
26
    administrative
order,
lien, or levy.


27
        (15) The exchange in the regular course of business of 
28
    information
between
a bank and any commonly owned affiliate 
29
    of the bank, subject to the provisions
of the Financial 
30
    Institutions Insurance Sales Law.


31
        (16) The furnishing of information to law enforcement 
32
    authorities, the
Illinois Department on
Aging and its 
33
    regional administrative and provider agencies, the 
34
    Department of
Human Services Office
of Inspector General, 
35
    or public guardians, if there is suspicion by the 
36
    investigatory entity, the guardian, or the bank suspects 
 


 






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    that a customer
who is an elderly or
disabled person has 
2
    been or may become the victim of financial exploitation.

3
    For the purposes of this
item (16), the term: (i) "elderly 
4
    person" means a person who is 60 or more
years of age, (ii) 
5
    "disabled
person" means a person who has or reasonably 
6
    appears to the bank to have a
physical or mental
disability 
7
    that impairs his or her ability to seek or obtain 
8
    protection from or
prevent financial
exploitation, and 
9
    (iii) "financial exploitation" means tortious or illegal 
10
    use
of the assets or resources of
an elderly or disabled 
11
    person, and includes, without limitation,
misappropriation 
12
    of the elderly or
disabled person's assets or resources by 
13
    undue influence, breach of fiduciary
relationship, 
14
    intimidation,
fraud, deception, extortion, or the use of 
15
    assets or resources in any manner
contrary to law. A bank 
16
    or
person furnishing information pursuant to this item (16) 
17
    shall be entitled to
the same rights and
protections as a 
18
    person furnishing information under the Elder Abuse and

19
    Neglect Act,
and the Illinois
Domestic Violence Act of 
20
    1986, and the Abuse of Adults with Disabilities 
21
    Intervention Act.


22
        (17) The disclosure of financial records or 
23
    information as necessary to
effect, administer, or enforce 
24
    a transaction requested or authorized by the
customer, or 
25
    in connection with:


26
            (A) servicing or processing a financial product or 
27
        service requested or
authorized by the customer;


28
            (B) maintaining or servicing a customer's account 
29
        with the bank; or


30
            (C) a proposed or actual securitization or 
31
        secondary market sale
(including sales of servicing 
32
        rights) related to a
transaction of a customer.


33
        Nothing in this item (17), however, authorizes the sale 
34
    of the financial
records or information of a customer 
35
    without the consent of the customer.


36
        (18) The disclosure of financial records or 
 


 






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    information as necessary to
protect against actual or 
2
    potential fraud, unauthorized transactions, claims,
or 
3
    other liability.


4
        (19) (a) The disclosure of financial records or 
5
    information
related to a private label credit program 
6
    between a financial
institution and a private label party 
7
    in connection with that
private label credit program. Such 
8
    information is limited to
outstanding balance, available 
9
    credit, payment and performance
and account history, 
10
    product references, purchase information,
and information

11
    related to the identity of the customer.


12
        (b) (l) For purposes of this paragraph (19) of 
13
    subsection
(b) of Section 48.1, a "private label credit 
14
    program" means a
credit program involving a financial 
15
    institution and a private label
party that is used by a 
16
    customer of the financial institution and the
private label 
17
    party primarily for payment for goods or services
sold, 
18
    manufactured, or distributed by a private label party.


19
        (2) For purposes of this paragraph (19) of subsection 
20
    (b)
of Section 48.l, a "private label party" means, with 
21
    respect to a
private label credit program, any of the 
22
    following: a
retailer, a merchant, a manufacturer, a trade 
23
    group,
or any such person's affiliate, subsidiary, member,

24
    agent, or service provider.

25
    (c) Except as otherwise provided by this Act, a bank may 
26
not disclose to
any person, except to the customer or his
duly 
27
authorized agent, any financial records or financial 
28
information
obtained from financial records relating to that 
29
customer of
that bank unless:


30
        (1) the customer has authorized disclosure to the 
31
    person;


32
        (2) the financial records are disclosed in response to 
33
    a lawful
subpoena, summons, warrant or court order which 
34
    meets the requirements
of subsection (d) of this Section; 
35
    or


36
        (3) the bank is attempting to collect an obligation 
 


 






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    owed to the bank
and the bank complies with the provisions 
2
    of Section 2I of the Consumer
Fraud and Deceptive Business 
3
    Practices Act.

4
    (d) A bank shall disclose financial records under paragraph 
5
(2) of
subsection (c) of this Section under a lawful subpoena, 
6
summons, warrant, or
court order only after the bank mails a 
7
copy of the subpoena, summons, warrant,
or court order to the 
8
person establishing the relationship with the bank, if
living, 
9
and, otherwise his personal representative, if known, at his 
10
last known
address by first class mail, postage prepaid, unless 
11
the bank is specifically
prohibited from notifying the person 
12
by order of court or by applicable State
or federal law.  A bank 
13
shall not mail a copy of a subpoena to any person
pursuant to 
14
this subsection if the subpoena was issued by a grand jury 
15
under
the Statewide Grand Jury Act.

16
    (e) Any officer or employee of a bank who knowingly and

17
willfully furnishes financial records in violation of this 
18
Section is
guilty of a business offense and, upon conviction, 
19
shall be fined not
more than $1,000.

20
    (f) Any person who knowingly and willfully induces or 
21
attempts to
induce any officer or employee of a bank to 
22
disclose financial
records in violation of this Section is 
23
guilty of a business offense
and, upon conviction, shall be 
24
fined not more than $1,000.

25
    (g) A bank shall be reimbursed for costs that are 
26
reasonably necessary
and that have been directly incurred in 
27
searching for, reproducing, or
transporting books, papers, 
28
records, or other data of a customer required or
requested to 
29
be produced pursuant to a lawful subpoena, summons, warrant, or

30
court order. The Commissioner shall determine the rates and 
31
conditions
under which payment may be made.

32
(Source: P.A. 91-330, eff. 7-29-99; 91-929, eff. 12-15-00; 
33
92-483, eff.
8-23-01; 92-543, eff. 6-12-02.)

 
34
    Section 10. The Illinois Savings and Loan Act of 1985 is 
35
amended  by changing Section 3-8 as follows:
 



 


 






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1
    (205 ILCS 105/3-8)  (from Ch. 17, par. 3303-8)



2
    Sec. 3-8. Access to books and records; communication with 
3
members. 

4
    (a) Every member or holder of capital shall have the right 
5
to inspect
the books and records of the association that 
6
pertain to his account.
Otherwise, the right of inspection and 
7
examination of the books and
records shall be limited as 
8
provided in this Act, and no other person
shall have access to 
9
the books and records or shall be entitled to a
list of the 
10
members.

11
    (b) For the purpose of this Section, the term "financial 
12
records"
means any original, any copy, or any summary of (i) a 
13
document granting
signature authority over a deposit or 
14
account; (ii) a statement, ledger
card, or other record on any 
15
deposit or account that
shows each transaction in or with 
16
respect to that account; (iii) a check,
draft, or money order 
17
drawn on an association or issued and payable by
an 
18
association; or (iv) any other item containing information 
19
pertaining to
any relationship established in the ordinary 
20
course of an association's
business between an association and 
21
its customer, including financial
statements or other 
22
financial information provided by the member or holder of

23
capital.

24
    (c) This Section does not prohibit:


25
        (1) The preparation, examination, handling, or 
26
    maintenance of any
financial records by any officer, 
27
    employee, or agent of an association having
custody of 
28
    those records or the examination of those records by a 
29
    certified
public accountant engaged by the association to 
30
    perform an independent
audit.


31
        (2) The examination of any financial records by, or the 
32
    furnishing of
financial records by an association to, any 
33
    officer, employee, or agent of the
Commissioner of Banks 
34
    and Real Estate or federal depository institution

35
    regulator for use solely in the exercise
of
his duties as 
 


 






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1
    an officer, employee, or agent.


2
        (3) The publication of data furnished from financial 
3
    records
relating to members or holders of capital where the 
4
    data cannot be
identified to any particular member, holder 
5
    of capital, or account.


6
        (4) The making of reports or returns required under 
7
    Chapter 61 of
the Internal Revenue Code of 1986.


8
        (5) Furnishing information concerning the dishonor of 
9
    any negotiable
instrument permitted to be disclosed under 
10
    the Uniform Commercial
Code.


11
        (6) The exchange in the regular course of business of 
12
    (i) credit
information between an association and other 
13
    associations or financial
institutions or commercial 
14
    enterprises, directly or through a consumer
reporting 
15
    agency
or (ii) financial records or information derived 
16
    from financial records
between an association and other 
17
    associations or financial institutions or
commercial 
18
    enterprises for the purpose of conducting due diligence 
19
    pursuant to
a purchase or sale involving the association or 
20
    assets or liabilities of the
association.


21
        (7) The furnishing of information to the appropriate 
22
    law enforcement
authorities where the association 
23
    reasonably believes it has been the
victim of a crime.


24
        (8) The furnishing of information pursuant to the 
25
    Uniform Disposition
of Unclaimed Property Act.


26
        (9) The furnishing of information pursuant to the 
27
    Illinois Income Tax
Act and the Illinois Estate and 
28
    Generation-Skipping Transfer Tax Act.


29
        (10) The furnishing of information pursuant to the 
30
    federal "Currency
and Foreign Transactions Reporting Act", 
31
    (Title 31, United States
Code, Section 1051 et seq.).


32
        (11) The furnishing of information pursuant to any 
33
    other statute that
by its terms or by regulations 
34
    promulgated thereunder requires the disclosure
of 
35
    financial records other than by subpoena, summons, 
36
    warrant, or court
order.


 


 






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        (12) The exchange of information between an 
2
    association and an affiliate
of the association; as used in 
3
    this item, "affiliate" includes any
company, partnership, 
4
    or organization that controls, is controlled by, or is

5
    under common control with an association.


6
        (13) The furnishing of information
in accordance with 
7
    the federal Personal Responsibility and Work Opportunity

8
    Reconciliation Act of 1996.  Any association governed by 
9
    this Act shall enter
into an agreement for data
exchanges 
10
    with a State agency provided the State agency
pays to the 
11
    association a reasonable fee not to exceed its
actual cost 
12
    incurred.  An association
providing
information in 
13
    accordance with this item shall not be liable to any 
14
    account
holder or other person for any disclosure of 
15
    information to a State agency, for
encumbering or 
16
    surrendering any assets held by the association in response 
17
    to a
lien
or order to withhold and deliver issued by a 
18
    State agency, or for any other
action taken pursuant to 
19
    this item, including individual or mechanical errors,

20
    provided the action does not constitute gross negligence or 
21
    willful misconduct.
An association shall have no 
22
    obligation to hold, encumber, or surrender assets
until it 
23
    has been served with a subpoena, summons, warrant, court or

24
    administrative order, lien, or levy.


25
        (14) The furnishing of information to law enforcement 
26
    authorities, the
Illinois Department on
Aging and its 
27
    regional administrative and provider agencies, the 
28
    Department of
Human Services Office
of Inspector General, 
29
    or public guardians, if there is suspicion by the 
30
    investigatory entity, the guardian, or the association 
31
    suspects that a
customer who is an elderly or
disabled 
32
    person has been or may become the victim of financial 
33
    exploitation.
For the purposes of this
item (14), the term: 
34
    (i) "elderly person" means a person who is 60 or more
years 
35
    of age, (ii) "disabled
person" means a person who has or 
36
    reasonably appears to the association to have
a physical or 
 


 






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1
    mental
disability that impairs his or her ability to seek 
2
    or obtain protection from or
prevent financial

3
    exploitation, and (iii) "financial exploitation" means 
4
    tortious or illegal use
of the assets or resources of
an 
5
    elderly or disabled person, and includes, without 
6
    limitation,
misappropriation of the elderly or
disabled 
7
    person's assets or resources by undue influence, breach of 
8
    fiduciary
relationship, intimidation,
fraud, deception, 
9
    extortion, or the use of assets or resources in any manner

10
    contrary to law. An
association or person furnishing 
11
    information pursuant to this item (14) shall
be entitled to 
12
    the same
rights and protections as a person furnishing 
13
    information under the Elder Abuse
and Neglect Act,
and the

14
    Illinois Domestic Violence Act of 1986, and the Abuse of 
15
    Adults with Disabilities Intervention Act.


16
        (15) The disclosure of financial records or 
17
    information as necessary to
effect, administer, or enforce 
18
    a transaction requested or authorized by the
member or 
19
    holder of capital, or in connection with:


20
            (A) servicing or processing a financial product or 
21
        service requested or
authorized by the member or holder 
22
        of capital;


23
            (B) maintaining or servicing an account of a member 
24
        or holder of capital
with the association; or


25
            (C) a proposed or actual securitization or 
26
        secondary market sale
(including
sales of servicing 
27
        rights) related to a transaction of
a member or holder 
28
        of capital.


29
        Nothing in this item (15), however, authorizes the sale 
30
    of the financial
records or information of a member or 
31
    holder of capital without the consent of
the member or 
32
    holder of capital.


33
        (16) The disclosure of financial records or 
34
    information as necessary to
protect against or prevent 
35
    actual or potential fraud, unauthorized
transactions, 
36
    claims, or other liability.


 


 






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1
        (17) (a) The disclosure of financial records or 
2
    information
related to a private label credit program 
3
    between a financial
institution and a private label party 
4
    in connection
with that private label credit program. Such 
5
    information
is limited to outstanding balance, available 
6
    credit, payment and
performance and account history, 
7
    product references, purchase
information,
and information 
8
    related to the identity of the
customer.


9
        (b) (l) For purposes of this paragraph (17) of 
10
    subsection
(c) of Section 3-8, a "private label credit 
11
    program" means a
credit program involving a financial 
12
    institution and a private label
party that is used by a 
13
    customer of the financial institution and the
private label 
14
    party primarily for payment for goods or services
sold, 
15
    manufactured, or distributed by a private label party.


16
        (2) For purposes of this paragraph (17) of subsection 
17
    (c)
of Section 3-8, a "private label party" means, with 
18
    respect to a
private label credit program, any of the 
19
    following: a
retailer, a merchant, a manufacturer, a trade 
20
    group,
or any such person's affiliate, subsidiary, member,

21
    agent, or service provider.

22
    (d) An association may not disclose to any person, except 
23
to the
member or holder of capital or his duly authorized 
24
agent, any financial
records relating to that member or holder 
25
of capital of that association
unless:


26
        (1) The member or holder of capital has authorized 
27
    disclosure to the
person; or


28
        (2) The financial records are disclosed in response to 
29
    a lawful
subpoena, summons, warrant, or court order that 
30
    meets the
requirements of subsection (e) of this Section.

31
    (e) An association shall disclose financial records under 
32
subsection
(d) of this Section pursuant to a lawful subpoena, 
33
summons,
warrant, or court order only after the association 
34
mails a copy of the
subpoena, summons, warrant, or court order 
35
to the person establishing
the relationship with the 
36
association, if living, and, otherwise, his
personal 
 


 






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1
representative, if known, at his last known address by first 
2
class
mail, postage prepaid, unless the association is 
3
specifically prohibited
from notifying that person by order of 
4
court.

5
    (f) (1) Any officer or employee of an association who 
6
knowingly and
willfully furnishes financial records in 
7
violation of this Section is
guilty of a business offense and, 
8
upon conviction, shall be fined not
more than $1,000.

9
    (2) Any person who knowingly and willfully induces or 
10
attempts to
induce any officer or employee of an association to 
11
disclose financial
records in violation of this Section is 
12
guilty of a business offense
and, upon conviction, shall be 
13
fined not more than $1,000.

14
    (g) However, if any member desires to communicate with the 
15
other
members of the association with reference to any question 
16
pending or to
be presented at a meeting of the members, the 
17
association shall give him
upon request a statement of the 
18
approximate number of members entitled
to vote at the meeting 
19
and an estimate of the cost of
preparing and mailing the 
20
communication.  The requesting
member then shall submit the 
21
communication to the Commissioner who, if he
finds it to be 
22
appropriate and truthful, shall direct that it be prepared
and 
23
mailed to the members upon the requesting member's payment or

24
adequate provision for payment of the expenses of preparation 
25
and mailing.

26
    (h) An association shall be reimbursed for costs that are 
27
necessary and
that have been directly incurred in searching 
28
for, reproducing, or
transporting books, papers, records, or 
29
other data of a customer required
to be reproduced pursuant to 
30
a lawful subpoena, warrant, or court order.

31
(Source: P.A. 92-483, eff. 8-23-01; 92-543, eff.
6-12-02; 
32
93-271, eff. 7-22-03.)

 
33
    Section 15. The Savings Bank Act is amended  by changing 
34
Section 4013 as follows:
 



 


 






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1
    (205 ILCS 205/4013)  (from Ch. 17, par. 7304-13)



2
    Sec. 4013. Access to books and records; communication with 
3
members
and shareholders.

4
    (a) Every member or shareholder shall have the right to 
5
inspect books
and records of the savings bank that pertain to 
6
his accounts.  Otherwise,
the right of inspection and 
7
examination of the books and records shall be
limited as 
8
provided in this Act, and no other person shall have access to

9
the books and records nor shall be entitled to a list of the 
10
members or
shareholders.

11
    (b) For the purpose of this Section, the term "financial 
12
records" means
any original, any copy, or any summary of (1) a 
13
document granting signature
authority over a deposit or 
14
account; (2) a statement, ledger card, or other
record on any 
15
deposit or account that shows each transaction in or with

16
respect to that account; (3) a check, draft, or money order 
17
drawn on a
savings bank or issued and payable by a savings 
18
bank; or (4) any other item
containing information pertaining 
19
to any relationship established in the
ordinary course of a 
20
savings bank's business between a savings bank and
its 
21
customer, including financial statements or other financial 
22
information
provided by the member or shareholder.

23
    (c) This Section does not prohibit:


24
        (1) The preparation examination, handling, or 
25
    maintenance of any
financial  records by any officer, 
26
    employee, or agent of a savings bank
having custody of 
27
    records or examination of records by a certified public

28
    accountant engaged by the savings bank to perform an 
29
    independent audit.


30
        (2) The examination of any financial records by, or the 
31
    furnishing of
financial records by a savings bank to, any 
32
    officer, employee, or agent of
the Commissioner of Banks 
33
    and Real Estate or the federal depository
institution 
34
    regulator for use
solely in
the exercise of his duties as 
35
    an officer, employee, or agent.


36
        (3) The publication of data furnished from financial 
 


 






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1
    records relating
to members or holders of capital where the 
2
    data cannot be identified to any
particular member, 
3
    shareholder, or account.


4
        (4) The making of reports or returns required under 
5
    Chapter 61 of the
Internal Revenue Code of 1986.


6
        (5) Furnishing information concerning the dishonor of 
7
    any negotiable
instrument permitted to be disclosed under 
8
    the Uniform Commercial Code.


9
        (6) The exchange in the regular course of business of 
10
    (i) credit
information between a savings bank and other 
11
    savings banks or financial
institutions or commercial 
12
    enterprises, directly or through a consumer
reporting 
13
    agency
or (ii) financial records or information derived 
14
    from financial records
between a savings bank and other 
15
    savings banks or financial institutions or
commercial 
16
    enterprises for the purpose of conducting due diligence 
17
    pursuant to
a purchase or sale involving the savings bank 
18
    or assets or liabilities of the
savings bank.


19
        (7) The furnishing of information to the appropriate 
20
    law enforcement
authorities where the savings bank 
21
    reasonably believes it has been the
victim of a crime.


22
        (8) The furnishing of information pursuant to the 
23
    Uniform Disposition
of Unclaimed Property Act.


24
        (9) The furnishing of information pursuant to the 
25
    Illinois Income Tax
Act
and the Illinois Estate and 
26
    Generation-Skipping Transfer Tax Act.


27
        (10) The furnishing of information pursuant to the 
28
    federal "Currency
and Foreign Transactions Reporting Act", 
29
    (Title 31, United States Code,
Section 1051 et seq.).


30
        (11) The furnishing of information pursuant to any 
31
    other statute which
by its terms or by regulations 
32
    promulgated thereunder requires the
disclosure of 
33
    financial records other than by subpoena, summons, 
34
    warrant, or
court order.


35
        (12) The furnishing of information in accordance with 
36
    the federal
Personal Responsibility and Work Opportunity 
 


 






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1
    Reconciliation Act of 1996.
Any savings bank governed by 
2
    this Act shall enter into an agreement for data
exchanges 
3
    with a State agency provided the State agency
pays to the 
4
    savings bank a reasonable fee not to exceed its
actual cost 
5
    incurred.  A savings bank
providing
information in 
6
    accordance with this item shall not be liable to any 
7
    account
holder or other person for any disclosure of 
8
    information to a State agency, for
encumbering or 
9
    surrendering any assets held by the savings bank in 
10
    response to
a lien
or order to withhold and deliver issued 
11
    by a State agency, or for any other
action taken pursuant 
12
    to this item, including individual or mechanical errors,

13
    provided the action does not constitute gross negligence or 
14
    willful misconduct.
 A savings bank shall have no obligation 
15
    to hold, encumber, or surrender
assets until
it has been 
16
    served with a subpoena, summons, warrant, court or 
17
    administrative
order,
lien, or levy.


18
        (13) The furnishing of information to law enforcement 
19
    authorities, the
Illinois Department on
Aging and its 
20
    regional administrative and provider agencies, the 
21
    Department of
Human Services Office
of Inspector General, 
22
    or public guardians, if there is suspicion by the 
23
    investigatory entity, the guardian, or the savings bank 
24
    suspects that a
customer who is an elderly
or disabled 
25
    person has been or may become the victim of financial 
26
    exploitation.
For the purposes of this
item (13), the term: 
27
    (i) "elderly person" means a person who is 60 or more
years 
28
    of age, (ii) "disabled
person" means a person who has or 
29
    reasonably appears to the savings bank to
have a physical 
30
    or mental
disability that impairs his or her ability to 
31
    seek or obtain protection from or
prevent financial

32
    exploitation, and (iii) "financial exploitation" means 
33
    tortious or illegal use
of the assets or resources of
an 
34
    elderly or disabled person, and includes, without 
35
    limitation,
misappropriation of the elderly or
disabled 
36
    person's assets or resources by undue influence, breach of 
 


 






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1
    fiduciary
relationship, intimidation,
fraud, deception, 
2
    extortion, or the use of assets or resources in any manner

3
    contrary to law. A savings
bank or person furnishing 
4
    information pursuant to this item (13) shall be
entitled to 
5
    the same rights and
protections as a person furnishing 
6
    information under the Elder Abuse and
Neglect Act,
and the 
7
    Illinois
Domestic Violence Act of 1986, and the Abuse of 
8
    Adults with Disabilities Intervention Act.


9
        (14) The disclosure of financial records or 
10
    information as necessary to
effect, administer, or enforce 
11
    a transaction requested or authorized by the
member or 
12
    holder of capital, or in connection with:


13
            (A) servicing or processing a financial product or 
14
        service requested or
authorized by the member or holder 
15
        of capital;


16
            (B) maintaining or servicing an account of a member 
17
        or holder of capital
with the savings bank; or


18
            (C) a proposed or actual securitization or 
19
        secondary market sale
(including sales of servicing 
20
        rights) related to a
transaction of a member or holder 
21
        of capital.


22
        Nothing in this item (14), however, authorizes the sale 
23
    of the financial
records or information of a member or 
24
    holder of capital without the consent of
the member or 
25
    holder of capital.


26
        (15) The exchange in the regular course of business of 
27
    information between
a
savings bank and any commonly owned 
28
    affiliate of the savings bank, subject to
the provisions of 
29
    the Financial Institutions Insurance Sales Law.


30
        (16) The disclosure of financial records or 
31
    information as necessary to
protect against or prevent 
32
    actual or potential fraud, unauthorized
transactions, 
33
    claims, or other liability.


34
        (17) (a) The disclosure of financial records or 
35
    information
related to a private label credit program 
36
    between a financial
institution and a private label party 
 


 






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1
    in connection
with that private label credit program.  Such 
2
    information
is limited to outstanding balance, available 
3
    credit, payment and
performance and account history, 
4
    product references, purchase
information,
and information 
5
    related to the identity of the
customer.


6
        (b) (l) For purposes of this paragraph (17) of 
7
    subsection
(c) of Section 4013, a "private label credit 
8
    program" means a
credit program involving a financial 
9
    institution and a private label
party that is used by a 
10
    customer of the financial institution and the
private label 
11
    party primarily for payment for goods or services
sold, 
12
    manufactured, or distributed by a private label party.


13
        (2) For purposes of this paragraph (17) of subsection 
14
    (c)
of Section 4013, a "private label party" means, with 
15
    respect to a
private label credit program, any of the 
16
    following: a
retailer, a merchant, a manufacturer, a trade 
17
    group,
or any such person's affiliate, subsidiary, member,

18
    agent, or service provider.

19
    (d) A savings bank may not disclose to any person, except 
20
to the member
or holder of capital or his duly authorized 
21
agent, any financial records
relating to that member or 
22
shareholder of the savings bank unless:


23
        (1) the member or shareholder has authorized 
24
    disclosure to the person; or


25
        (2) the financial records are disclosed in response to 
26
    a lawful
subpoena, summons, warrant, or court order that 
27
    meets the requirements of
subsection (e) of this Section.

28
    (e) A savings bank shall disclose financial records under 
29
subsection (d)
of this Section pursuant to a lawful subpoena, 
30
summons, warrant, or court
order only after the savings bank 
31
mails a copy of the subpoena, summons,
warrant, or court order 
32
to the person establishing the relationship with
the savings 
33
bank, if living, and otherwise, his personal representative, if

34
known, at his last known address by first class mail, postage 
35
prepaid,
unless the savings bank is specifically prohibited 
36
from notifying the
person by order of court.

 


 






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1
    (f) Any officer or employee of a savings bank who knowingly 
2
and
willfully furnishes financial records in violation of this 
3
Section is
guilty of a business offense and, upon conviction, 
4
shall be fined not
more than $1,000.

5
    (g) Any person who knowingly and willfully induces or 
6
attempts to
induce any officer or employee of a savings bank to 
7
disclose financial
records in violation of this Section is 
8
guilty of a business offense and,
upon conviction, shall be 
9
fined not more than $1,000.

10
    (h) If any member or shareholder desires to communicate 
11
with the other
members or shareholders of the savings bank with 
12
reference to any question
pending or to be presented at an 
13
annual or special meeting, the savings
bank shall give that 
14
person, upon request, a statement of the approximate
number of 
15
members or shareholders entitled to vote at the meeting and an

16
estimate of the cost of preparing and mailing the 
17
communication.  The
requesting member shall submit the 
18
communication to the Commissioner
who, upon finding it to be 
19
appropriate and truthful, shall direct that it
be prepared and 
20
mailed to the members upon the requesting member's or

21
shareholder's payment or adequate provision for payment of the 
22
expenses of
preparation and mailing.

23
    (i) A savings bank shall be reimbursed for costs that are 
24
necessary and
that have been directly incurred in searching 
25
for, reproducing, or
transporting books, papers, records, or 
26
other data of a customer required
to be reproduced pursuant to 
27
a lawful subpoena, warrant, or court order.

28
    (j) Notwithstanding the provisions of this Section, a 
29
savings bank may
sell or otherwise make use of lists of 
30
customers' names and addresses.  All
other information 
31
regarding a customer's account are subject to the
disclosure 
32
provisions of this Section.  At the request of any customer,

33
that customer's name and address shall be deleted from any list 
34
that is to
be sold or used in any other manner beyond 
35
identification of the customer's
accounts.

36
(Source: P.A. 92-483, eff. 8-23-01; 92-543, eff.
6-12-02; 
 


 






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1
93-271, eff. 7-22-03.)

 
2
    Section 20. The Illinois Credit Union Act is amended  by 
3
changing Section 10 as follows:
 



4
    (205 ILCS 305/10)  (from Ch. 17, par. 4411)



5
    Sec. 10. Credit union records; member financial records. 

6
    (1) A credit union shall establish and maintain books, 
7
records, accounting
systems and procedures which accurately 
8
reflect its operations and which
enable the Department to 
9
readily ascertain the true financial condition
of the credit 
10
union and whether it is complying with this Act.

11
    (2) A photostatic or photographic reproduction of any 
12
credit union records
shall be admissible as evidence of 
13
transactions with the credit union.


14
    (3) (a) For the purpose of this Section, the term 
15
    "financial records"
means any original, any copy, or any 
16
    summary of (1) a document granting
signature authority over 
17
    an account, (2) a statement, ledger card or other
record on 
18
    any account which shows each transaction in or with respect 
19
    to
that account, (3) a check, draft or money order drawn on 
20
    a financial
institution or other entity or issued and 
21
    payable by or through a financial
institution or other 
22
    entity, or (4) any other item containing information

23
    pertaining to any relationship established in the ordinary 
24
    course of
business between a credit union and its member, 
25
    including financial
statements or other financial 
26
    information provided by the member.


27
        (b) This Section does not prohibit:


28
            (1) The preparation, examination, handling or 
29
        maintenance of any
financial records by any officer, 
30
        employee or agent of a credit union
having custody of 
31
        such records, or the examination of such records by a

32
        certified public accountant  engaged by the credit 
33
        union to perform an
independent audit.


34
            (2) The examination of any financial records by or 
 


 






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1
        the furnishing of
financial records by a credit union 
2
        to any officer, employee or agent of
the Department, 
3
        the National Credit Union Administration, Federal 
4
        Reserve
board or any insurer of share accounts for use 
5
        solely in the exercise of
his duties as an officer, 
6
        employee or agent.


7
            (3) The publication of data furnished from 
8
        financial records relating
to members where the data 
9
        cannot be identified to any particular customer
of 
10
        account.


11
            (4) The making of reports or returns required under 
12
        Chapter 61 of the
Internal Revenue Code of 1954.


13
            (5) Furnishing information concerning the dishonor 
14
        of any negotiable
instrument permitted to be disclosed 
15
        under the Uniform Commercial
Code.


16
            (6) The exchange in the regular course of business

17
        of (i) credit information
between a credit union and 
18
        other credit unions or financial institutions
or 
19
        commercial enterprises, directly or through a consumer 
20
        reporting agency
or (ii) financial records or 
21
        information derived from financial records
between a 
22
        credit union and other credit unions or financial 
23
        institutions or
commercial enterprises for
the purpose 
24
        of conducting due diligence pursuant to a merger or a 
25
        purchase or
sale of assets or liabilities of the credit 
26
        union.


27
            (7) The furnishing of information to the 
28
        appropriate law enforcement
authorities where the 
29
        credit union reasonably believes it has been the victim

30
        of a crime.


31
            (8) The furnishing of information pursuant to the 
32
        Uniform Disposition
of Unclaimed Property Act.


33
            (9) The furnishing of information pursuant to the 
34
        Illinois Income Tax
Act and the Illinois Estate and 
35
        Generation-Skipping Transfer Tax Act.


36
            (10) The furnishing of information pursuant to the 
 


 






HB1301 Engrossed
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LRB094 03887 AMC 33898 b




1
        federal "Currency
and Foreign Transactions Reporting 
2
        Act", Title 31, United States Code,
Section 1051 et 
3
        sequentia.


4
            (11) The furnishing of information pursuant to any 
5
        other statute which
by its terms or by regulations 
6
        promulgated thereunder requires the disclosure
of 
7
        financial records other than by subpoena, summons, 
8
        warrant or court order.


9
            (12) The furnishing of information in accordance 
10
        with the federal
Personal Responsibility and Work 
11
        Opportunity Reconciliation Act of 1996.
Any credit 
12
        union governed by this Act shall enter into an 
13
        agreement for data
exchanges with a State agency 
14
        provided the State agency
pays to the credit union a 
15
        reasonable fee not to exceed its
actual cost incurred.  
16
        A credit union
providing
information in accordance 
17
        with this item shall not be liable to any account

18
        holder or other person for any disclosure of 
19
        information to a State agency, for
encumbering or 
20
        surrendering any assets held by the credit union in 
21
        response to
a lien
or order to withhold and deliver 
22
        issued by a State agency, or for any other
action taken 
23
        pursuant to this item, including individual or 
24
        mechanical errors,
provided the action does not 
25
        constitute gross negligence or willful misconduct.
A 
26
        credit union shall have no obligation to hold, 
27
        encumber, or surrender
assets until
it has been served 
28
        with a subpoena, summons, warrant, court or 
29
        administrative
order, lien, or levy.


30
            (13) The furnishing of information to law 
31
        enforcement authorities, the
Illinois Department on

32
        Aging and its regional administrative and provider 
33
        agencies, the Department of
Human Services Office
of 
34
        Inspector General, or public guardians, if there is 
35
        suspicion by the investigatory entity, the guardian, 
36
        or the credit union suspects that a
member who is an 
 


 






HB1301 Engrossed
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1
        elderly or
disabled person has been or may become the 
2
        victim of financial exploitation.
For the purposes of 
3
        this
item (13), the term: (i) "elderly person" means a 
4
        person who is 60 or more
years of age, (ii) "disabled

5
        person" means a person who has or reasonably appears to 
6
        the credit union to
have a physical or mental

7
        disability that impairs his or her ability to seek or 
8
        obtain protection from or
prevent financial

9
        exploitation, and (iii) "financial exploitation" means 
10
        tortious or illegal use
of the assets or resources of

11
        an elderly or disabled person, and includes, without 
12
        limitation,
misappropriation of the elderly or

13
        disabled person's assets or resources by undue 
14
        influence, breach of fiduciary
relationship, 
15
        intimidation,
fraud, deception, extortion, or the use 
16
        of assets or resources in any manner
contrary to law. A 
17
        credit
union or person furnishing information pursuant 
18
        to this item (13) shall be
entitled to the same rights 
19
        and
protections as a person furnishing information 
20
        under the Elder Abuse and
Neglect Act,
and the Illinois

21
        Domestic Violence Act of 1986, and the Abuse of Adults 
22
        with Disabilities Intervention Act.


23
            (14) The disclosure of financial records or 
24
        information as necessary
to
effect, administer, or 
25
        enforce a transaction requested or authorized by the

26
        member, or in connection with:


27
                (A) servicing or processing a financial 
28
            product or service requested
or
authorized by the 
29
            member;


30
                (B) maintaining or servicing a member's 
31
            account with the credit union;
or


32
                (C) a proposed or actual securitization or 
33
            secondary market sale
(including sales of 
34
            servicing rights) related to a
transaction of a 
35
            member.


36
            Nothing in this item (14), however, authorizes the 
 


 






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1
        sale of the financial
records or information of a 
2
        member without the consent of the member.


3
            (15) The disclosure of financial records or 
4
        information as necessary to
protect against or prevent 
5
        actual or potential fraud, unauthorized
transactions, 
6
        claims, or other liability.


7
            (16) (a) The disclosure of financial records or 
8
        information
related to a private label credit program 
9
        between a financial
institution and a private label 
10
        party in connection
with that private label credit 
11
        program. Such information
is limited to outstanding 
12
        balance, available credit, payment and
performance and 
13
        account history, product references, purchase

14
        information,
and information related to the identity 
15
        of the
customer.


16
            (b) (l) For purposes of this paragraph (16) of 
17
        subsection
(b) of Section 10, a "private label credit 
18
        program" means a credit
program involving a financial 
19
        institution and a private label party
that is used by a 
20
        customer of the financial institution and the
private 
21
        label party primarily for payment for goods or services

22
        sold, manufactured, or distributed by a private label 
23
        party.


24
            (2) For purposes of this paragraph (16) of 
25
        subsection (b)
of Section 10, a "private label party" 
26
        means, with respect to a
private label credit program, 
27
        any of the following: a
retailer, a merchant, a 
28
        manufacturer, a trade group,
or any such person's 
29
        affiliate, subsidiary, member,
agent, or service 
30
        provider.


31
        (c) Except as otherwise provided by this Act, a credit 
32
    union may not
disclose to any person, except to the member

33
    or his duly authorized agent, any financial records 
34
    relating to that member
of the credit union unless:


35
            (1) the member has authorized disclosure to the 
36
        person;


 


 






HB1301 Engrossed
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1
            (2) the financial records are disclosed in 
2
        response to a lawful
subpoena,
summons, warrant or 
3
        court order that meets the requirements of 
4
        subparagraph
(d) of this Section; or


5
            (3) the credit union is attempting to collect an 
6
        obligation owed to
the credit union and the credit 
7
        union complies with the provisions of
Section 2I of the 
8
        Consumer Fraud and Deceptive Business Practices Act.


9
        (d) A credit union shall disclose financial records 
10
    under subparagraph
(c)(2) of this Section pursuant to a 
11
    lawful subpoena, summons, warrant or
court order only after 
12
    the credit union mails a copy of the subpoena, summons,

13
    warrant or court order to the person establishing the 
14
    relationship with
the credit union, if living, and 
15
    otherwise his personal representative,
if known, at his 
16
    last known address by first class mail, postage prepaid

17
    unless the credit union is specifically prohibited from 
18
    notifying the person
by order of court or by applicable 
19
    State or federal law. In the case
of a grand jury subpoena, 
20
    a credit union shall not mail a copy of a subpoena
to any 
21
    person pursuant to this subsection if the subpoena was 
22
    issued by a grand
jury under the Statewide Grand Jury Act 
23
    or notifying the
person would constitute a violation of the 
24
    federal Right to Financial
Privacy Act of 1978.


25
        (e) (1) Any officer or employee of a credit union who 
26
        knowingly and
wilfully furnishes financial records in 
27
        violation of this Section is guilty of
a business 
28
        offense and upon conviction thereof shall be fined not 
29
        more than
$1,000.


30
            (2) Any person who knowingly and wilfully induces 
31
        or attempts to induce
any officer or employee of a 
32
        credit union to disclose financial records
in 
33
        violation of this Section is guilty of a business 
34
        offense and upon
conviction thereof shall be fined not 
35
        more than $1,000.


36
        (f) A credit union shall be reimbursed for costs which 
 


 






HB1301 Engrossed
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LRB094 03887 AMC 33898 b




1
    are reasonably
necessary and which have been directly 
2
    incurred in searching for,
reproducing or transporting 
3
    books, papers, records or other data of a
member required 
4
    or requested to be produced pursuant to a lawful subpoena,

5
    summons, warrant or court order.  The Director may 
6
    determine, by rule, the
rates and
conditions under which 
7
    payment shall be made.  Delivery of requested documents
may 
8
    be delayed until final reimbursement of all costs is 
9
    received.

10
(Source: P.A. 91-929, eff. 12-15-00; 92-293, eff. 8-9-01; 
11
92-483, eff.
8-23-01; 92-543, eff. 6-12-02.)

 

12
    Section 99. Effective date. This Act takes effect upon 
13
becoming law.