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1 | AN ACT concerning regulation.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Illinois Banking Act is amended by changing | |||||||||||||||||||
5 | Section 48.1 as follows:
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6 | (205 ILCS 5/48.1) (from Ch. 17, par. 360)
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7 | Sec. 48.1. Customer financial records; confidentiality.
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8 | (a) For the purpose of this Section, the term "financial | |||||||||||||||||||
9 | records" means any
original, any copy, or any summary of:
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10 | (1) a document granting signature
authority over a | |||||||||||||||||||
11 | deposit or account;
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12 | (2) a statement, ledger card or other
record on any | |||||||||||||||||||
13 | deposit or account, which shows each transaction in or with
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14 | respect to that account;
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15 | (3) a check, draft or money order drawn on a bank
or | |||||||||||||||||||
16 | issued and payable by a bank; or
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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
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20 | financial statements or other financial information | |||||||||||||||||||
21 | provided by the customer.
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22 | (b) This Section does not prohibit:
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23 | (1) The preparation, examination, handling or |
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1 | maintenance of any
financial records by any officer, | ||||||
2 | employee or agent of a bank
having custody of the records, | ||||||
3 | or the examination of the records by a
certified public | ||||||
4 | accountant engaged by the bank to perform an independent
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5 | audit.
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6 | (2) The examination of any financial records by, or the | ||||||
7 | furnishing of
financial records by a bank to, any officer, | ||||||
8 | employee or agent of (i) the
Commissioner of Banks and Real | ||||||
9 | Estate, (ii) after May
31, 1997, a state regulatory | ||||||
10 | authority authorized to examine a branch of a
State bank | ||||||
11 | located in another state, (iii) the Comptroller of the | ||||||
12 | Currency,
(iv) the Federal Reserve Board, or (v) the | ||||||
13 | Federal Deposit Insurance
Corporation for use solely in the | ||||||
14 | exercise of his duties as an officer,
employee, or agent.
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15 | (3) The publication of data furnished from financial | ||||||
16 | records
relating to customers where the data cannot be | ||||||
17 | identified to any
particular customer or account.
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18 | (4) The making of reports or returns required under | ||||||
19 | Chapter 61 of
the Internal Revenue Code of 1986.
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20 | (5) Furnishing information concerning the dishonor of | ||||||
21 | any negotiable
instrument permitted to be disclosed under | ||||||
22 | the Uniform Commercial Code.
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23 | (6) The exchange in the regular course of business of | ||||||
24 | (i) credit
information
between a bank and other banks or | ||||||
25 | financial institutions or commercial
enterprises, directly | ||||||
26 | or through a consumer reporting agency or (ii)
financial |
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1 | records or information derived from financial records | ||||||
2 | between a bank
and other banks or financial institutions or | ||||||
3 | commercial enterprises for the
purpose of conducting due | ||||||
4 | diligence pursuant to a purchase or sale involving
the bank | ||||||
5 | or assets or liabilities of the bank.
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6 | (7) The furnishing of information to the appropriate | ||||||
7 | law enforcement
authorities where the bank reasonably | ||||||
8 | believes it has been the victim of a
crime.
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9 | (8) The furnishing of information under the Uniform | ||||||
10 | Disposition of
Unclaimed Property Act.
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11 | (9) The furnishing of information under the Illinois | ||||||
12 | Income Tax Act and
the Illinois Estate and | ||||||
13 | Generation-Skipping Transfer Tax Act.
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14 | (10) The furnishing of information under the federal | ||||||
15 | Currency
and Foreign Transactions Reporting Act Title 31, | ||||||
16 | United States
Code, Section 1051 et seq.
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17 | (11) The furnishing of information under any other | ||||||
18 | statute that
by its terms or by regulations promulgated | ||||||
19 | thereunder requires the disclosure
of financial records | ||||||
20 | other than by subpoena, summons, warrant, or court order.
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21 | (12) The furnishing of information about the existence | ||||||
22 | of an account
of a person to a judgment creditor of that | ||||||
23 | person who has made a written
request for that information.
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24 | (13) The exchange in the regular course of business of | ||||||
25 | information
between commonly owned banks in connection | ||||||
26 | with a transaction authorized
under paragraph (23) of
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1 | Section 5 and conducted at an affiliate facility.
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2 | (14) The furnishing of information in accordance with | ||||||
3 | the federal
Personal Responsibility and Work Opportunity | ||||||
4 | Reconciliation Act of 1996.
Any bank governed by this Act | ||||||
5 | shall enter into an agreement for data
exchanges with a | ||||||
6 | State agency provided the State agency
pays to the bank a | ||||||
7 | reasonable fee not to exceed its
actual cost incurred. A | ||||||
8 | bank providing
information in accordance with this item | ||||||
9 | shall not be liable to any account
holder or other person | ||||||
10 | for any disclosure of information to a State agency, for
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11 | encumbering or surrendering any assets held by the bank in | ||||||
12 | response to a lien
or order to withhold and deliver issued | ||||||
13 | by a State agency, or for any other
action taken pursuant | ||||||
14 | to this item, including individual or mechanical errors,
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15 | provided the action does not constitute gross negligence or | ||||||
16 | willful misconduct.
A bank shall have no obligation to | ||||||
17 | hold, encumber, or surrender assets until
it has been | ||||||
18 | served with a subpoena, summons, warrant, court or | ||||||
19 | administrative
order,
lien, or levy.
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20 | (15) The exchange in the regular course of business of | ||||||
21 | information
between
a bank and any commonly owned affiliate | ||||||
22 | of the bank, subject to the provisions
of the Financial | ||||||
23 | Institutions Insurance Sales Law.
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24 | (16) The furnishing of information to law enforcement | ||||||
25 | authorities, the
Illinois Department on
Aging and its | ||||||
26 | regional administrative and provider agencies, the |
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1 | Department of
Human Services Office
of Inspector General, | ||||||
2 | or public guardians: (i) upon subpoena by the investigatory | ||||||
3 | entity or the guardian, or (ii) if there is suspicion by | ||||||
4 | the bank that a customer
who is an elderly or
disabled | ||||||
5 | person has been or may become the victim of financial | ||||||
6 | exploitation.
For the purposes of this
item (16), the term: | ||||||
7 | (i) "elderly person" means a person who is 60 or more
years | ||||||
8 | of age, (ii) "disabled
person" means a person who has or | ||||||
9 | reasonably appears to the bank to have a
physical or mental
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10 | disability that impairs his or her ability to seek or | ||||||
11 | obtain protection from or
prevent financial
exploitation, | ||||||
12 | and (iii) "financial exploitation" means tortious or | ||||||
13 | illegal use
of the assets or resources of
an elderly or | ||||||
14 | disabled person, and includes, without limitation,
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15 | misappropriation of the elderly or
disabled person's | ||||||
16 | assets or resources by undue influence, breach of fiduciary
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17 | relationship, intimidation,
fraud, deception, extortion, | ||||||
18 | or the use of assets or resources in any manner
contrary to | ||||||
19 | law. A bank or
person furnishing information pursuant to | ||||||
20 | this item (16) shall be entitled to
the same rights and
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21 | protections as a person furnishing information under the | ||||||
22 | Elder Abuse and
Neglect Act, the Illinois
Domestic Violence | ||||||
23 | Act of 1986, and the Abuse of Adults with Disabilities | ||||||
24 | Intervention Act.
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25 | (17) The disclosure of financial records or | ||||||
26 | information as necessary to
effect, administer, or enforce |
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1 | a transaction requested or authorized by the
customer, or | ||||||
2 | in connection with:
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3 | (A) servicing or processing a financial product or | ||||||
4 | service requested or
authorized by the customer;
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5 | (B) maintaining or servicing a customer's account | ||||||
6 | with the bank; or
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7 | (C) a proposed or actual securitization or | ||||||
8 | secondary market sale
(including sales of servicing | ||||||
9 | rights) related to a
transaction of a customer.
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10 | Nothing in this item (17), however, authorizes the sale | ||||||
11 | of the financial
records or information of a customer | ||||||
12 | without the consent of the customer.
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13 | (18) The disclosure of financial records or | ||||||
14 | information as necessary to
protect against actual or | ||||||
15 | potential fraud, unauthorized transactions, claims,
or | ||||||
16 | other liability.
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17 | (19)(a) The disclosure of financial records or | ||||||
18 | information
related to a private label credit program | ||||||
19 | between a financial
institution and a private label party | ||||||
20 | in connection with that
private label credit program. Such | ||||||
21 | information is limited to
outstanding balance, available | ||||||
22 | credit, payment and performance
and account history, | ||||||
23 | product references, purchase information,
and information
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24 | related to the identity of the customer.
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25 | (b)(l) For purposes of this paragraph (19) of | ||||||
26 | subsection
(b) of Section 48.1, a "private label credit |
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1 | program" means a
credit program involving a financial | ||||||
2 | institution and a private label
party that is used by a | ||||||
3 | customer of the financial institution and the
private label | ||||||
4 | party primarily for payment for goods or services
sold, | ||||||
5 | manufactured, or distributed by a private label party.
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6 | (2) For purposes of this paragraph (19) of subsection | ||||||
7 | (b)
of Section 48.l, a "private label party" means, with | ||||||
8 | respect to a
private label credit program, any of the | ||||||
9 | following: a
retailer, a merchant, a manufacturer, a trade | ||||||
10 | group,
or any such person's affiliate, subsidiary, member,
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11 | agent, or service provider.
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12 | (c) Except as otherwise provided by this Act, a bank may | ||||||
13 | not disclose to
any person, except to the customer or his
duly | ||||||
14 | authorized agent, any financial records or financial | ||||||
15 | information
obtained from financial records relating to that | ||||||
16 | customer of
that bank unless:
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17 | (1) the customer has authorized disclosure to the | ||||||
18 | person;
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19 | (2) the financial records are disclosed in response to | ||||||
20 | a lawful
subpoena, summons, warrant or court order which | ||||||
21 | meets the requirements
of subsection (d) of this Section; | ||||||
22 | or
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23 | (3) the bank is attempting to collect an obligation | ||||||
24 | owed to the bank
and the bank complies with the provisions | ||||||
25 | of Section 2I of the Consumer
Fraud and Deceptive Business | ||||||
26 | Practices Act.
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1 | (d) A bank shall disclose financial records under paragraph | ||||||
2 | (2) of
subsection (c) of this Section under a lawful subpoena, | ||||||
3 | summons, warrant, or
court order only after the bank mails a | ||||||
4 | copy of the subpoena, summons, warrant,
or court order to the | ||||||
5 | person establishing the relationship with the bank, if
living, | ||||||
6 | and, otherwise his personal representative, if known, at his | ||||||
7 | last known
address by first class mail, postage prepaid, unless | ||||||
8 | the bank is specifically
prohibited from notifying the person | ||||||
9 | by order of court or by applicable State
or federal law. A bank | ||||||
10 | that is required to mail a copy of a subpoena, summons, | ||||||
11 | warrant, or court order in accordance with this subsection (d) | ||||||
12 | need not produce the requested financial records until the | ||||||
13 | later of (i) the expiration of 5 business days following the | ||||||
14 | receipt of the subpoena, summons, warrant, or court order or | ||||||
15 | (ii) the date stated in the subpoena, summons, warrant, or | ||||||
16 | court order by which the financial records must be produced. A | ||||||
17 | bank shall not mail a copy of a subpoena to any person
pursuant | ||||||
18 | to this subsection if the subpoena was issued by a grand jury | ||||||
19 | under
the Statewide Grand Jury Act.
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20 | (e) Any officer or employee of a bank who knowingly and
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21 | willfully furnishes financial records in violation of this | ||||||
22 | Section is
guilty of a business offense and, upon conviction, | ||||||
23 | shall be fined not
more than $1,000.
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24 | (f) Any person who knowingly and willfully induces or | ||||||
25 | attempts to
induce any officer or employee of a bank to | ||||||
26 | disclose financial
records in violation of this Section is |
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1 | guilty of a business offense
and, upon conviction, shall be | ||||||
2 | fined not more than $1,000.
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3 | (g) A bank shall be reimbursed for costs that are | ||||||
4 | reasonably necessary
and that have been directly incurred in | ||||||
5 | searching for, reproducing, or
transporting books, papers, | ||||||
6 | records, or other data of a customer required or
requested to | ||||||
7 | be produced pursuant to a lawful subpoena, summons, warrant, or
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8 | court order. The Commissioner shall determine the rates and | ||||||
9 | conditions
under which payment may be made.
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10 | (Source: P.A. 94-495, eff. 8-8-05; 94-851, eff. 6-13-06.)
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11 | Section 99. Effective date. This Act takes effect upon | ||||||
12 | becoming law.
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