95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
SB0237

 

Introduced 2/7/2007, by Sen. Ira I. Silverstein

 

SYNOPSIS AS INTRODUCED:
 
205 ILCS 205/4013   from Ch. 17, par. 7304-13

    Amends the Savings Bank Act. Provides that a savings bank may not disclose to any person, except to the member or holder of capital or his or her duly authorized agent, any financial records relating to that member or shareholder of the savings bank unless the financial records are disclosed in response to a lawful subpoena, summons, warrant, citation to discover assets, or court order that meets certain requirements (now, a savings bank may only disclose financial records in response to a lawful subpoena, summons, warrant, or court order). Makes corresponding changes in provisions related to disclosure procedure and the reimbursement of costs associated with compliance.


LRB095 07907 MJR 28069 b

 

 

A BILL FOR

 

SB0237 LRB095 07907 MJR 28069 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 Savings Bank Act is amended by changing
5 Section 4013 as follows:
 
6     (205 ILCS 205/4013)  (from Ch. 17, par. 7304-13)
7     Sec. 4013. Access to books and records; communication with
8 members and shareholders.
9     (a) Every member or shareholder shall have the right to
10 inspect books and records of the savings bank that pertain to
11 his accounts. 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 nor shall be entitled to a list of the
15 members or shareholders.
16     (b) For the purpose of this Section, the term "financial
17 records" means any original, any copy, or any summary of (1) a
18 document granting signature authority over a deposit or
19 account; (2) 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; (3) a check, draft, or money order
22 drawn on a savings bank or issued and payable by a savings
23 bank; or (4) any other item containing information pertaining

 

 

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1 to any relationship established in the ordinary course of a
2 savings bank's business between a savings bank and its
3 customer, including financial statements or other financial
4 information provided by the member or shareholder.
5     (c) This Section does not prohibit:
6         (1) The preparation examination, handling, or
7     maintenance of any financial records by any officer,
8     employee, or agent of a savings bank having custody of
9     records or examination of records by a certified public
10     accountant engaged by the savings bank to perform an
11     independent audit.
12         (2) The examination of any financial records by, or the
13     furnishing of financial records by a savings bank to, any
14     officer, employee, or agent of the Commissioner of Banks
15     and Real Estate or the federal depository institution
16     regulator for use solely in the exercise of his duties as
17     an officer, employee, or agent.
18         (3) The publication of data furnished from financial
19     records relating to members or holders of capital where the
20     data cannot be identified to any particular member,
21     shareholder, or account.
22         (4) The making of reports or returns required under
23     Chapter 61 of the Internal Revenue Code of 1986.
24         (5) Furnishing information concerning the dishonor of
25     any negotiable instrument permitted to be disclosed under
26     the Uniform Commercial Code.

 

 

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1         (6) The exchange in the regular course of business of
2     (i) credit information between a savings bank and other
3     savings banks or financial institutions or commercial
4     enterprises, directly or through a consumer reporting
5     agency or (ii) financial records or information derived
6     from financial records between a savings bank and other
7     savings banks or financial institutions or commercial
8     enterprises for the purpose of conducting due diligence
9     pursuant to a purchase or sale involving the savings bank
10     or assets or liabilities of the savings bank.
11         (7) The furnishing of information to the appropriate
12     law enforcement authorities where the savings bank
13     reasonably believes it has been the victim of a crime.
14         (8) The furnishing of information pursuant to the
15     Uniform Disposition of Unclaimed Property Act.
16         (9) The furnishing of information pursuant to the
17     Illinois Income Tax Act and the Illinois Estate and
18     Generation-Skipping Transfer Tax Act.
19         (10) The furnishing of information pursuant to the
20     federal "Currency and Foreign Transactions Reporting Act",
21     (Title 31, United States Code, Section 1051 et seq.).
22         (11) The furnishing of information pursuant to any
23     other statute which by its terms or by regulations
24     promulgated thereunder requires the disclosure of
25     financial records other than by subpoena, summons,
26     warrant, or court order.

 

 

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1         (12) The furnishing of information in accordance with
2     the federal Personal Responsibility and Work Opportunity
3     Reconciliation Act of 1996. Any savings bank governed by
4     this Act shall enter into an agreement for data exchanges
5     with a State agency provided the State agency pays to the
6     savings bank a reasonable fee not to exceed its actual cost
7     incurred. A savings bank providing information in
8     accordance with this item shall not be liable to any
9     account holder or other person for any disclosure of
10     information to a State agency, for encumbering or
11     surrendering any assets held by the savings 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,
15     provided the action does not constitute gross negligence or
16     willful misconduct. A savings bank shall have no obligation
17     to hold, encumber, or surrender assets until it has been
18     served with a subpoena, summons, warrant, court or
19     administrative order, lien, or levy.
20         (13) The furnishing of information to law enforcement
21     authorities, the Illinois Department on Aging and its
22     regional administrative and provider agencies, the
23     Department of Human Services Office of Inspector General,
24     or public guardians: (i) upon subpoena by the investigatory
25     entity or the guardian, or (ii) if there is suspicion by
26     the savings bank that a customer who is an elderly or

 

 

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1     disabled person has been or may become the victim of
2     financial exploitation. For the purposes of this item (13),
3     the term: (i) "elderly person" means a person who is 60 or
4     more years of age, (ii) "disabled person" means a person
5     who has or reasonably appears to the savings bank to have a
6     physical or mental disability that impairs his or her
7     ability to seek or obtain protection from or prevent
8     financial exploitation, and (iii) "financial exploitation"
9     means tortious or illegal use of the assets or resources of
10     an elderly or disabled person, and includes, without
11     limitation, misappropriation of the elderly or disabled
12     person's assets or resources by undue influence, breach of
13     fiduciary relationship, intimidation, fraud, deception,
14     extortion, or the use of assets or resources in any manner
15     contrary to law. A savings bank or person furnishing
16     information pursuant to this item (13) shall be entitled to
17     the same rights and protections as a person furnishing
18     information under the Elder Abuse and Neglect Act, the
19     Illinois Domestic Violence Act of 1986, and the Abuse of
20     Adults with Disabilities Intervention Act.
21         (14) The disclosure of financial records or
22     information as necessary to effect, administer, or enforce
23     a transaction requested or authorized by the member or
24     holder of capital, or in connection with:
25             (A) servicing or processing a financial product or
26         service requested or authorized by the member or holder

 

 

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1         of capital;
2             (B) maintaining or servicing an account of a member
3         or holder of capital with the savings bank; or
4             (C) a proposed or actual securitization or
5         secondary market sale (including sales of servicing
6         rights) related to a transaction of a member or holder
7         of capital.
8         Nothing in this item (14), however, authorizes the sale
9     of the financial records or information of a member or
10     holder of capital without the consent of the member or
11     holder of capital.
12         (15) The exchange in the regular course of business of
13     information between a savings bank and any commonly owned
14     affiliate of the savings bank, subject to the provisions of
15     the Financial Institutions Insurance Sales Law.
16         (16) The disclosure of financial records or
17     information as necessary to protect against or prevent
18     actual or potential fraud, unauthorized transactions,
19     claims, or other liability.
20         (17)(a) The disclosure of financial records or
21     information related to a private label credit program
22     between a financial institution and a private label party
23     in connection with that private label credit program. Such
24     information is limited to outstanding balance, available
25     credit, payment and performance and account history,
26     product references, purchase information, and information

 

 

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1     related to the identity of the customer.
2         (b)(l) For purposes of this paragraph (17) of
3     subsection (c) of Section 4013, a "private label credit
4     program" means a credit program involving a financial
5     institution and a private label party that is used by a
6     customer of the financial institution and the private label
7     party primarily for payment for goods or services sold,
8     manufactured, or distributed by a private label party.
9         (2) For purposes of this paragraph (17) of subsection
10     (c) of Section 4013, a "private label party" means, with
11     respect to a private label credit program, any of the
12     following: a retailer, a merchant, a manufacturer, a trade
13     group, or any such person's affiliate, subsidiary, member,
14     agent, or service provider.
15     (d) A savings bank may not disclose to any person, except
16 to the member or holder of capital or his duly authorized
17 agent, any financial records relating to that member or
18 shareholder of the savings bank unless:
19         (1) the member or shareholder has authorized
20     disclosure to the person; or
21         (2) the financial records are disclosed in response to
22     a lawful subpoena, summons, warrant, citation to discover
23     assets, or court order that meets the requirements of
24     subsection (e) of this Section.
25     (e) A savings bank shall disclose financial records under
26 subsection (d) of this Section pursuant to a lawful subpoena,

 

 

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1 summons, warrant, citation to discover assets, or court order
2 only after the savings bank mails a copy of the subpoena,
3 summons, warrant, or court order to the person establishing the
4 relationship with the savings bank, if living, and otherwise,
5 his personal representative, if known, at his last known
6 address by first class mail, postage prepaid, unless the
7 savings bank is specifically prohibited from notifying the
8 person by order of court.
9     (f) Any officer or employee of a savings bank who knowingly
10 and willfully furnishes financial records in violation of this
11 Section is guilty of a business offense and, upon conviction,
12 shall be fined not more than $1,000.
13     (g) Any person who knowingly and willfully induces or
14 attempts to induce any officer or employee of a savings bank to
15 disclose financial records in violation of this Section is
16 guilty of a business offense and, upon conviction, shall be
17 fined not more than $1,000.
18     (h) If any member or shareholder desires to communicate
19 with the other members or shareholders of the savings bank with
20 reference to any question pending or to be presented at an
21 annual or special meeting, the savings bank shall give that
22 person, upon request, a statement of the approximate number of
23 members or shareholders entitled to vote at the meeting and an
24 estimate of the cost of preparing and mailing the
25 communication. The requesting member shall submit the
26 communication to the Commissioner who, upon finding it to be

 

 

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1 appropriate and truthful, shall direct that it be prepared and
2 mailed to the members upon the requesting member's or
3 shareholder's payment or adequate provision for payment of the
4 expenses of preparation and mailing.
5     (i) A savings bank shall be reimbursed for costs that are
6 necessary and that have been directly incurred in searching
7 for, reproducing, or transporting books, papers, records, or
8 other data of a customer required to be reproduced pursuant to
9 a lawful subpoena, warrant, citation to discover assets, or
10 court order.
11     (j) Notwithstanding the provisions of this Section, a
12 savings bank may sell or otherwise make use of lists of
13 customers' names and addresses. All other information
14 regarding a customer's account are subject to the disclosure
15 provisions of this Section. At the request of any customer,
16 that customer's name and address shall be deleted from any list
17 that is to be sold or used in any other manner beyond
18 identification of the customer's accounts.
19 (Source: P.A. 93-271, eff. 7-22-03; 94-495, eff. 8-8-05;
20 94-851, eff. 6-13-06.)