95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
SB0510

 

Introduced 2/8/2007, by Sen. Terry Link

 

SYNOPSIS AS INTRODUCED:
 
205 ILCS 5/48.3   from Ch. 17, par. 360.2

    Amends the Illinois Banking Act. Provides that whenever the Commissioner of Banks and Real Estate is authorized to disclose confidential supervisory information under certain provisions, the Commissioner is authorized to redact any document prior to disclosure so that confidential supervisory information that is not relevant for purposes of the authorized disclosure need not be disclosed. Effective immediately.


LRB095 10592 MJR 30814 b

 

 

A BILL FOR

 

SB0510 LRB095 10592 MJR 30814 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 48.3 as follows:
 
6     (205 ILCS 5/48.3)  (from Ch. 17, par. 360.2)
7     Sec. 48.3. Disclosure of reports of examinations and
8 confidential supervisory information; limitations.
9     (a) Any report of examination, visitation, or
10 investigation prepared by the Commissioner under this Act, the
11 Electronic Fund Transfer Act, the Corporate Fiduciary Act, the
12 Illinois Bank Holding Company Act of 1957, and the Foreign
13 Banking Office Act, any report of examination, visitation, or
14 investigation prepared by the state regulatory authority of
15 another state that examines a branch of an Illinois State bank
16 in that state, any document or record prepared or obtained in
17 connection with or relating to any examination, visitation, or
18 investigation, and any record prepared or obtained by the
19 Commissioner to the extent that the record summarizes or
20 contains information derived from any report, document, or
21 record described in this subsection shall be deemed
22 "confidential supervisory information". Confidential
23 supervisory information shall not include any information or

 

 

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1 record routinely prepared by a bank or other financial
2 institution and maintained in the ordinary course of business
3 or any information or record that is required to be made
4 publicly available pursuant to State or federal law or rule.
5 Confidential supervisory information shall be the property of
6 the Commissioner and shall only be disclosed under the
7 circumstances and for the purposes set forth in this Section.
8      The Commissioner may disclose confidential supervisory
9 information only under the following circumstances:
10         (1) The Commissioner may furnish confidential
11     supervisory information to the Board of Governors of the
12     Federal Reserve System, the federal reserve bank of the
13     federal reserve district in which the State bank is located
14     or in which the parent or other affiliate of the State bank
15     is located, any official or examiner thereof duly
16     accredited for the purpose, or any other state regulator,
17     federal regulator, or in the case of a foreign bank
18     possessing a certificate of authority pursuant to the
19     Foreign Banking Office Act or a license pursuant to the
20     Foreign Bank Representative Office Act, the bank regulator
21     in the country where the foreign bank is chartered, that
22     the Commissioner determines to have an appropriate
23     regulatory interest. Nothing contained in this Act shall be
24     construed to limit the obligation of any member State bank
25     to comply with the requirements relative to examinations
26     and reports of the Federal Reserve Act and of the Board of

 

 

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1     Governors of the Federal Reserve System or the federal
2     reserve bank of the federal reserve district in which the
3     bank is located, nor to limit in any way the powers of the
4     Commissioner with reference to examinations and reports.
5         (2) The Commissioner may furnish confidential
6     supervisory information to the United States, any agency
7     thereof that has insured a bank's deposits in whole or in
8     part, or any official or examiner thereof duly accredited
9     for the purpose. Nothing contained in this Act shall be
10     construed to limit the obligation relative to examinations
11     and reports of any State bank, deposits in which are to any
12     extent insured by the United States, any agency thereof,
13     nor to limit in any way the powers of the Commissioner with
14     reference to examination and reports of such bank.
15         (3) The Commissioner may furnish confidential
16     supervisory information to the appropriate law enforcement
17     authorities when the Commissioner reasonably believes a
18     bank, which the Commissioner has caused to be examined, has
19     been a victim of a crime.
20         (4) The Commissioner may furnish confidential
21     supervisory information relating to a bank or other
22     financial institution, which the Commissioner has caused
23     to be examined, to be sent to the administrator of the
24     Uniform Disposition of Unclaimed Property Act.
25         (5) The Commissioner may furnish confidential
26     supervisory information relating to a bank or other

 

 

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1     financial institution, which the Commissioner has caused
2     to be examined, relating to its performance of obligations
3     under the Illinois Income Tax Act and the Illinois Estate
4     and Generation-Skipping Transfer Tax Act to the Illinois
5     Department of Revenue.
6         (6) The Commissioner may furnish confidential
7     supervisory information relating to a bank or other
8     financial institution, which the Commissioner has caused
9     to be examined, under the federal Currency and Foreign
10     Transactions Reporting Act, Title 31, United States Code,
11     Section 1051 et seq.
12         (6.5) The Commissioner may furnish confidential
13     supervisory information to any other agency or entity that
14     the Commissioner determines to have a legitimate
15     regulatory interest.
16         (7) The Commissioner may furnish confidential
17     supervisory information under any other statute that by its
18     terms or by regulations promulgated thereunder requires
19     the disclosure of financial records other than by subpoena,
20     summons, warrant, or court order.
21         (8) At the request of the affected bank or other
22     financial institution, the Commissioner may furnish
23     confidential supervisory information relating to a bank or
24     other financial institution, which the Commissioner has
25     caused to be examined, in connection with the obtaining of
26     insurance coverage or the pursuit of an insurance claim for

 

 

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1     or on behalf of the bank or other financial institution;
2     provided that, when possible, the Commissioner shall
3     disclose only relevant information while maintaining the
4     confidentiality of financial records not relevant to such
5     insurance coverage or claim and, when appropriate, may
6     delete identifying data relating to any person or
7     individual.
8         (9) The Commissioner may furnish a copy of a report of
9     any examination performed by the Commissioner of the
10     condition and affairs of any electronic data processing
11     entity to the banks serviced by the electronic data
12     processing entity.
13         (10) In addition to the foregoing circumstances, the
14     Commissioner may, but is not required to, furnish
15     confidential supervisory information under the same
16     circumstances authorized for the bank or financial
17     institution pursuant to subsection (b) of this Section,
18     except that the Commissioner shall provide confidential
19     supervisory information under circumstances described in
20     paragraph (3) of subsection (b) of this Section only upon
21     the request of the bank or other financial institution.
22         (11) Whenever the Commissioner is authorized to
23     disclose confidential supervisory information under this
24     Section, the Commissioner is authorized to redact any
25     document prior to disclosure so that confidential
26     supervisory information that is not relevant for purposes

 

 

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1     of the authorized disclosure need not be disclosed.
2     (b) A bank or other financial institution or its officers,
3 agents, and employees may disclose confidential supervisory
4 information only under the following circumstances:
5         (1) to the board of directors of the bank or other
6     financial institution, as well as the president,
7     vice-president, cashier, and other officers of the bank or
8     other financial institution to whom the board of directors
9     may delegate duties with respect to compliance with
10     recommendations for action, and to the board of directors
11     of a bank holding company that owns at least 80% of the
12     outstanding stock of the bank or other financial
13     institution;
14         (2) to attorneys for the bank or other financial
15     institution and to a certified public accountant engaged by
16     the State bank or financial institution to perform an
17     independent audit provided that the attorney or certified
18     public accountant shall not permit the confidential
19     supervisory information to be further disseminated;
20         (3) to any person who seeks to acquire a controlling
21     interest in, or who seeks to merge with, the bank or
22     financial institution, provided that all attorneys,
23     certified public accountants, officers, agents, or
24     employees of that person shall agree to be bound to respect
25     the confidentiality of the confidential supervisory
26     information and to not further disseminate the information

 

 

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1     therein contained;
2         (4) (blank); or
3         (5) to the bank's insurance company in relation to an
4     insurance claim or the effort by the bank to procure
5     insurance coverage, provided that, when possible, the bank
6     shall disclose only information that is relevant to the
7     insurance claim or that is necessary to procure the
8     insurance coverage, while maintaining the confidentiality
9     of financial information pertaining to customers. When
10     appropriate, the bank may delete identifying data relating
11     to any person.
12     The disclosure of confidential supervisory information by
13 a bank or other financial institution pursuant to this
14 subsection (b) and the disclosure of information to the
15 Commissioner or other regulatory agency in connection with any
16 examination, visitation, or investigation shall not constitute
17 a waiver of any legal privilege otherwise available to the bank
18 or other financial institution with respect to the information.
19     (c) (1) Notwithstanding any other provision of this Act or
20 any other law, confidential supervisory information shall be
21 the property of the Commissioner and shall be privileged from
22 disclosure to any person except as provided in this Section. No
23 person in possession of confidential supervisory information
24 may disclose that information for any reason or under any
25 circumstances not specified in this Section without the prior
26 authorization of the Commissioner. Any person upon whom a

 

 

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1 demand for production of confidential supervisory information
2 is made, whether by subpoena, order, or other judicial or
3 administrative process, must withhold production of the
4 confidential supervisory information and must notify the
5 Commissioner of the demand, at which time the Commissioner is
6 authorized to intervene for the purpose of enforcing the
7 limitations of this Section or seeking the withdrawal or
8 termination of the attempt to compel production of the
9 confidential supervisory information.
10     (2) Any request for discovery or disclosure of confidential
11 supervisory information, whether by subpoena, order, or other
12 judicial or administrative process, shall be made to the
13 Commissioner, and the Commissioner shall determine within 15
14 days whether to disclose the information pursuant to procedures
15 and standards that the Commissioner shall establish by rule. If
16 the Commissioner determines that such information will not be
17 disclosed, the Commissioner's decision shall be subject to
18 judicial review under the provisions of the Administrative
19 Review Law, and venue shall be in either Sangamon County or
20 Cook County.
21     (3) Any court order that compels disclosure of confidential
22 supervisory information may be immediately appealed by the
23 Commissioner, and the order shall be automatically stayed
24 pending the outcome of the appeal.
25     (d) If any officer, agent, attorney, or employee of a bank
26 or financial institution knowingly and willfully furnishes

 

 

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1 confidential supervisory information in violation of this
2 Section, the Commissioner may impose a civil monetary penalty
3 up to $1,000 for the violation against the officer, agent,
4 attorney, or employee.
5 (Source: P.A. 90-301, eff. 8-1-97; 91-201, eff. 1-1-00.)
 
6     Section 99. Effective date. This Act takes effect upon
7 becoming law.