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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 Savings and Loan Act of 1985 is | |||||||||||||||||||
5 | amended by changing Section 3-8 as follows:
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6 | (205 ILCS 105/3-8) (from Ch. 17, par. 3303-8)
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7 | Sec. 3-8. Access to books and records; communication with | |||||||||||||||||||
8 | members.
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9 | (a) Every member or holder of capital shall have the right | |||||||||||||||||||
10 | to inspect
the books and records of the association that | |||||||||||||||||||
11 | pertain to his account.
Otherwise, the right of inspection and | |||||||||||||||||||
12 | examination of the books and
records shall be limited as | |||||||||||||||||||
13 | provided in this Act, and no other person
shall have access to | |||||||||||||||||||
14 | the books and records or shall be entitled to a
list of the | |||||||||||||||||||
15 | members.
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16 | (b) For the purpose of this Section, the term "financial | |||||||||||||||||||
17 | records"
means any original, any copy, or any summary of (i) a | |||||||||||||||||||
18 | document granting
signature authority over a deposit or | |||||||||||||||||||
19 | account; (ii) a statement, ledger
card, or other record on any | |||||||||||||||||||
20 | deposit or account that
shows each transaction in or with | |||||||||||||||||||
21 | respect to that account; (iii) a check,
draft, or money order | |||||||||||||||||||
22 | drawn on an association or issued and payable by
an | |||||||||||||||||||
23 | association; or (iv) any other item containing information |
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1 | pertaining to
any relationship established in the ordinary | ||||||
2 | course of an association's
business between an association and | ||||||
3 | its customer, including financial
statements or other | ||||||
4 | financial information provided by the member or holder of
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5 | capital.
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6 | (c) This Section does not prohibit:
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7 | (1) The preparation, examination, handling, or | ||||||
8 | maintenance of any
financial records by any officer, | ||||||
9 | employee, or agent of an association having
custody of | ||||||
10 | those records or the examination of those records by a | ||||||
11 | certified
public accountant engaged by the association to | ||||||
12 | perform an independent
audit.
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13 | (2) The examination of any financial records by, or the | ||||||
14 | furnishing of
financial records by an association to, any | ||||||
15 | officer, employee, or agent of the
Commissioner of Banks | ||||||
16 | and Real Estate or federal depository institution
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17 | regulator for use solely in the exercise
of
his duties as | ||||||
18 | an officer, employee, or agent.
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19 | (3) The publication of data furnished from financial | ||||||
20 | records
relating to members or holders of capital where the | ||||||
21 | data cannot be
identified to any particular member, holder | ||||||
22 | of capital, or account.
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23 | (4) The making of reports or returns required under | ||||||
24 | Chapter 61 of
the Internal Revenue Code of 1986.
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25 | (5) Furnishing information concerning the dishonor of | ||||||
26 | any negotiable
instrument permitted to be disclosed under |
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1 | the Uniform Commercial
Code.
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2 | (6) The exchange in the regular course of business of | ||||||
3 | (i) credit
information between an association and other | ||||||
4 | associations or financial
institutions or commercial | ||||||
5 | enterprises, directly or through a consumer
reporting | ||||||
6 | agency
or (ii) financial records or information derived | ||||||
7 | from financial records
between an association and other | ||||||
8 | associations or financial institutions or
commercial | ||||||
9 | enterprises for the purpose of conducting due diligence | ||||||
10 | pursuant to
a purchase or sale involving the association or | ||||||
11 | assets or liabilities of the
association.
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12 | (7) The furnishing of information to the appropriate | ||||||
13 | law enforcement
authorities where the association | ||||||
14 | reasonably believes it has been the
victim of a crime.
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15 | (8) The furnishing of information pursuant to the | ||||||
16 | Uniform Disposition
of Unclaimed Property Act.
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17 | (9) The furnishing of information pursuant to the | ||||||
18 | Illinois Income Tax
Act and the Illinois Estate and | ||||||
19 | Generation-Skipping Transfer Tax Act.
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20 | (10) The furnishing of information pursuant to the | ||||||
21 | federal "Currency
and Foreign Transactions Reporting Act", | ||||||
22 | (Title 31, United States
Code, Section 1051 et seq.).
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23 | (11) The furnishing of information pursuant to any | ||||||
24 | other statute that
by its terms or by regulations | ||||||
25 | promulgated thereunder requires the disclosure
of | ||||||
26 | financial records other than by subpoena, summons, |
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1 | warrant, or court
order.
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2 | (12) The exchange of information between an | ||||||
3 | association and an affiliate
of the association; as used in | ||||||
4 | this item, "affiliate" includes any
company, partnership, | ||||||
5 | or organization that controls, is controlled by, or is
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6 | under common control with an association.
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7 | (13) The furnishing of information
in accordance with | ||||||
8 | the federal Personal Responsibility and Work Opportunity
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9 | Reconciliation Act of 1996. Any association governed by | ||||||
10 | this Act shall enter
into an agreement for data
exchanges | ||||||
11 | with a State agency provided the State agency
pays to the | ||||||
12 | association a reasonable fee not to exceed its
actual cost | ||||||
13 | incurred. An association
providing
information in | ||||||
14 | accordance with this item shall not be liable to any | ||||||
15 | account
holder or other person for any disclosure of | ||||||
16 | information to a State agency, for
encumbering or | ||||||
17 | surrendering any assets held by the association in response | ||||||
18 | to a
lien
or order to withhold and deliver issued by a | ||||||
19 | State agency, or for any other
action taken pursuant to | ||||||
20 | this item, including individual or mechanical errors,
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21 | provided the action does not constitute gross negligence or | ||||||
22 | willful misconduct.
An association shall have no | ||||||
23 | obligation to hold, encumber, or surrender assets
until it | ||||||
24 | has been served with a subpoena, summons, warrant, court or
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25 | administrative order, lien, or levy.
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26 | (14) The furnishing of information to law enforcement |
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1 | authorities, the
Illinois Department on
Aging and its | ||||||
2 | regional administrative and provider agencies, the | ||||||
3 | Department of
Human Services Office
of Inspector General, | ||||||
4 | or public guardians: (i) upon subpoena by the investigatory | ||||||
5 | entity or the guardian, or (ii) if there is suspicion by | ||||||
6 | the association that a
customer who is an elderly or
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7 | disabled person has been or may become the victim of | ||||||
8 | financial exploitation.
For the purposes of this
item (14), | ||||||
9 | the term: (i) "elderly person" means a person who is 60 or | ||||||
10 | more
years of age, (ii) "disabled
person" means a person | ||||||
11 | who has or reasonably appears to the association to have
a | ||||||
12 | physical or mental
disability that impairs his or her | ||||||
13 | ability to seek or obtain protection from or
prevent | ||||||
14 | financial
exploitation, and (iii) "financial exploitation" | ||||||
15 | means tortious or illegal use
of the assets or resources of
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16 | an elderly or disabled person, and includes, without | ||||||
17 | limitation,
misappropriation of the elderly or
disabled | ||||||
18 | person's assets or resources by undue influence, breach of | ||||||
19 | fiduciary
relationship, intimidation,
fraud, deception, | ||||||
20 | extortion, or the use of assets or resources in any manner
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21 | contrary to law. An
association or person furnishing | ||||||
22 | information pursuant to this item (14) shall
be entitled to | ||||||
23 | the same
rights and protections as a person furnishing | ||||||
24 | information under the Elder Abuse
and Neglect Act, the
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25 | Illinois Domestic Violence Act of 1986, and the Abuse of | ||||||
26 | Adults with Disabilities Intervention Act.
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1 | (15) The disclosure of financial records or | ||||||
2 | information as necessary to
effect, administer, or enforce | ||||||
3 | a transaction requested or authorized by the
member or | ||||||
4 | holder of capital, or in connection with:
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5 | (A) servicing or processing a financial product or | ||||||
6 | service requested or
authorized by the member or holder | ||||||
7 | of capital;
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8 | (B) maintaining or servicing an account of a member | ||||||
9 | or holder of capital
with the association; or
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10 | (C) a proposed or actual securitization or | ||||||
11 | secondary market sale
(including
sales of servicing | ||||||
12 | rights) related to a transaction of
a member or holder | ||||||
13 | of capital.
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14 | Nothing in this item (15), however, authorizes the sale | ||||||
15 | of the financial
records or information of a member or | ||||||
16 | holder of capital without the consent of
the member or | ||||||
17 | holder of capital.
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18 | (16) The disclosure of financial records or | ||||||
19 | information as necessary to
protect against or prevent | ||||||
20 | actual or potential fraud, unauthorized
transactions, | ||||||
21 | claims, or other liability.
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22 | (17)(a) The disclosure of financial records or | ||||||
23 | information
related to a private label credit program | ||||||
24 | between a financial
institution and a private label party | ||||||
25 | in connection
with that private label credit program. Such | ||||||
26 | information
is limited to outstanding balance, available |
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1 | credit, payment and
performance and account history, | ||||||
2 | product references, purchase
information,
and information | ||||||
3 | related to the identity of the
customer.
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4 | (b)(l) For purposes of this paragraph (17) of | ||||||
5 | subsection
(c) of Section 3-8, a "private label credit | ||||||
6 | program" means a
credit program involving a financial | ||||||
7 | institution and a private label
party that is used by a | ||||||
8 | customer of the financial institution and the
private label | ||||||
9 | party primarily for payment for goods or services
sold, | ||||||
10 | manufactured, or distributed by a private label party.
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11 | (2) For purposes of this paragraph (17) of subsection | ||||||
12 | (c)
of Section 3-8, a "private label party" means, with | ||||||
13 | respect to a
private label credit program, any of the | ||||||
14 | following: a
retailer, a merchant, a manufacturer, a trade | ||||||
15 | group,
or any such person's affiliate, subsidiary, member,
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16 | agent, or service provider.
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17 | (d) An association may not disclose to any person, except | ||||||
18 | to the
member or holder of capital or his duly authorized | ||||||
19 | agent, any financial
records relating to that member or holder | ||||||
20 | of capital of that association
unless:
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21 | (1) The member or holder of capital has authorized | ||||||
22 | disclosure to the
person; or
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23 | (2) The financial records are disclosed in response to | ||||||
24 | a lawful
subpoena, summons, warrant, citation to discover | ||||||
25 | assets, or court order that meets the
requirements of | ||||||
26 | subsection (e) of this Section.
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1 | (e) An association shall disclose financial records under | ||||||
2 | subsection
(d) of this Section pursuant to a lawful subpoena, | ||||||
3 | summons,
warrant, citation to discover assets, or court order | ||||||
4 | only after the association mails a copy of the
subpoena, | ||||||
5 | summons, warrant, or court order to the person establishing
the | ||||||
6 | relationship with the association, if living, and, otherwise, | ||||||
7 | his
personal representative, if known, at his last known | ||||||
8 | address by first class
mail, postage prepaid, unless the | ||||||
9 | association is specifically prohibited
from notifying that | ||||||
10 | person by order of court.
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11 | (f)(1) Any officer or employee of an association who | ||||||
12 | knowingly and
willfully furnishes financial records in | ||||||
13 | violation of this Section is
guilty of a business offense and, | ||||||
14 | upon conviction, shall be fined not
more than $1,000.
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15 | (2) Any person who knowingly and willfully induces or | ||||||
16 | attempts to
induce any officer or employee of an association to | ||||||
17 | disclose financial
records in violation of this Section is | ||||||
18 | guilty of a business offense
and, upon conviction, shall be | ||||||
19 | fined not more than $1,000.
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20 | (g) However, if any member desires to communicate with the | ||||||
21 | other
members of the association with reference to any question | ||||||
22 | pending or to
be presented at a meeting of the members, the | ||||||
23 | association shall give him
upon request a statement of the | ||||||
24 | approximate number of members entitled
to vote at the meeting | ||||||
25 | and an estimate of the cost of
preparing and mailing the | ||||||
26 | communication. The requesting
member then shall submit the |
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1 | communication to the Commissioner who, if he
finds it to be | ||||||
2 | appropriate and truthful, shall direct that it be prepared
and | ||||||
3 | mailed to the members upon the requesting member's payment or
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4 | adequate provision for payment of the expenses of preparation | ||||||
5 | and mailing.
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6 | (h) An association shall be reimbursed for costs that are | ||||||
7 | necessary and
that have been directly incurred in searching | ||||||
8 | for, reproducing, or
transporting books, papers, records, or | ||||||
9 | other data of a customer required
to be reproduced pursuant to | ||||||
10 | a lawful subpoena, warrant, citation to discover assets, or | ||||||
11 | court order.
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12 | (Source: P.A. 93-271, eff. 7-22-03; 94-495, eff. 8-8-05; | ||||||
13 | 94-851, eff. 6-13-06.)
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