95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
SB1671


 
Introduced 2/9/2007, by Sen. Jacqueline Y. Collins
 
SYNOPSIS AS INTRODUCED:
 		













205 ILCS 605/4.1 new









    Amends the Consumer Deposit Account Act.  Requires financial institutions
with assets of more than $100,000,000 to extend basic checking services to
under-served and low-income residents for direct deposit with the institution
by
third parties with no service charges, minimum balance, or minimum deposit
requirements.  Allows institutions to charge for stop payment orders and to
deny no cost services to persons who have had a checking account closed, within
3 years, by an institution for insufficient funds.
Effective immediately.















LRB095 07311 MJR 27450 b

















 


 


A BILL FOR









 











SB1671

LRB095 07311 MJR 27450 b






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    AN ACT concerning regulation. 

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


 
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    Section 1. The Consumer Deposit Account Act is amended by 
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adding Section
4.1 as follows:


 
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    (205 ILCS 605/4.1 new)

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    Sec. 4.1. Basic checking account.

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    (a) For the purpose of extending consumer banking services 
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to previously
under-served and low-income Illinois residents, 
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except as provided in
subsection (e), every financial 
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institution shall offer a Basic Checking
Account
to any
person 
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who requests the account, unless within the previous 3 years 
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the person
has had a checking account that was closed by a 
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financial institution because
of checks returned due to 
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insufficient funds.

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    (b) A Basic Checking Account shall be established by a 
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written agreement
with the account holder requiring direct 
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deposits with the financial
institution by a third party of the 
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recurring payments due to the account
holder on at least a 
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monthly basis.  Except as provided in subsection (c) of this 
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Section, no
other service charge, minimum balance, or minimum 
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deposit requirement may be
imposed on a Basic Checking Account.

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    (c) No activity charge may be imposed for the first 10 
 


 






SB1671
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LRB095 07311 MJR 27450 b




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checks drawn on a
Basic Checking Account in any calendar month; 
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however, a financial institution
may charge its customary fee 
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for a stop payment order or any transaction
resulting in a 
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check returned due to insufficient funds.  A financial

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institution may close a Basic Checking Account if the stop 
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payment fees charged
to the account exceed its balance and the 
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account holder fails to deposit
funds to cover the amount by 
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which those charges exceed the balance within 30
days of the 
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institution having sent the holder written notice of the

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requirement
and the consequences of failing to meet it.

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    (d) A financial institution may offer any person a consumer 
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deposit account
with terms that are more favorable to the 
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person than the terms required under
this Section and may 
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designate the account as a Basic Checking Account.

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    (e) As a matter of public policy, all financial 
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institutions are encouraged
to offer a Basic Checking Account; 
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however, financial institutions with total
assets of less than 
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$100,000,000 are not subject to the mandatory provisions of

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this Section.



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