94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
SB2763

 

Introduced 1/20/2006, by Sen. James F. Clayborne, Jr.

 

SYNOPSIS AS INTRODUCED:
 
20 ILCS 2435/59 new
205 ILCS 5/48.1   from Ch. 17, par. 360
205 ILCS 105/3-8   from Ch. 17, par. 3303-8
205 ILCS 205/4013   from Ch. 17, par. 7304-13
205 ILCS 305/10   from Ch. 17, par. 4411

    Amends the Abuse of Adults with Disabilities Intervention Act. Provides that the Office of Inspector General designated by the Department of Human Services has the power to subpoena witnesses and compel the production of books, papers, and documents. Sets forth that the mental health records of victims shall be confidential as provided under the Mental Health and Developmental Disabilities Confidentiality Act. Provides that financial records obtained during the course of an assessment are confidential and may be released only with the consent of the victim or the victim's guardian in response to a court order, a grand jury subpoena, or a subpoena from a law enforcement authority. Amends the Illinois Banking Act, the Illinois Savings and Loan Act of 1985, the Savings Bank Act, and the Illinois Credit Union Act. Authorizes a bank, savings and loan association, savings bank, or credit union to furnish information to law enforcement authorities, the Illinois Department on Aging and its regional administrative and provider agencies, the Department of Human Services Office of Inspector General, or public guardians: (i) upon subpoena by the investigatory entity or guardian, or (ii) if there is suspicion by the bank, association, savings bank, or credit union that a member who is an elderly or disabled person has been or may become the victim of financial exploitation (now, the information may be furnished if there is suspicion by the investigatory entity, the guardian, or the financial institution). Effective immediately.


LRB094 18898 MKM 54586 b

 

 

A BILL FOR

 

SB2763 LRB094 18898 MKM 54586 b

1     AN ACT concerning confidentiality.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 5. The Abuse of Adults with Disabilities
5 Intervention Act is amended by adding Section 59 as follows:
 
6     (20 ILCS 2435/59 new)
7     Sec. 59. Subpoena; document production. The Office of
8 Inspector General has the power to subpoena witnesses and
9 compel the production of books, papers, and documents,
10 including financial records and medical records, pertinent to
11 an assessment authorized by this Act. Mental health records of
12 victims shall be confidential as provided under the Mental
13 Health and Developmental Disabilities Confidentiality Act.
14 Financial records obtained during the course of an assessment
15 are confidential and may be released only with the consent of
16 the victim or the victim's guardian or in response to a court
17 order, a grand jury subpoena, or a subpoena from a law
18 enforcement authority.
 
19     Section 10. The Illinois Banking Act is amended by changing
20 Section 48.1 as follows:
 
21     (205 ILCS 5/48.1)  (from Ch. 17, par. 360)
22     Sec. 48.1. Customer financial records; confidentiality.
23     (a) For the purpose of this Section, the term "financial
24 records" means any original, any copy, or any summary of:
25         (1) a document granting signature authority over a
26     deposit or account;
27         (2) a statement, ledger card or other record on any
28     deposit or account, which shows each transaction in or with
29     respect to that account;
30         (3) a check, draft or money order drawn on a bank or

 

 

SB2763 - 2 - LRB094 18898 MKM 54586 b

1     issued and payable by a bank; or
2         (4) any other item containing information pertaining
3     to any relationship established in the ordinary course of a
4     bank's business between a bank and its customer, including
5     financial statements or other financial information
6     provided by the customer.
7     (b) This Section does not prohibit:
8         (1) The preparation, examination, handling or
9     maintenance of any financial records by any officer,
10     employee or agent of a bank having custody of the records,
11     or the examination of the records by a certified public
12     accountant engaged by the bank to perform an independent
13     audit.
14         (2) The examination of any financial records by, or the
15     furnishing of financial records by a bank to, any officer,
16     employee or agent of (i) the Commissioner of Banks and Real
17     Estate, (ii) after May 31, 1997, a state regulatory
18     authority authorized to examine a branch of a State bank
19     located in another state, (iii) the Comptroller of the
20     Currency, (iv) the Federal Reserve Board, or (v) the
21     Federal Deposit Insurance Corporation for use solely in the
22     exercise of his duties as an officer, employee, or agent.
23         (3) The publication of data furnished from financial
24     records relating to customers where the data cannot be
25     identified to any particular customer or account.
26         (4) The making of reports or returns required under
27     Chapter 61 of the Internal Revenue Code of 1986.
28         (5) Furnishing information concerning the dishonor of
29     any negotiable instrument permitted to be disclosed under
30     the Uniform Commercial Code.
31         (6) The exchange in the regular course of business of
32     (i) credit information between a bank and other banks or
33     financial institutions or commercial enterprises, directly
34     or through a consumer reporting agency or (ii) financial
35     records or information derived from financial records
36     between a bank and other banks or financial institutions or

 

 

SB2763 - 3 - LRB094 18898 MKM 54586 b

1     commercial enterprises for the purpose of conducting due
2     diligence pursuant to a purchase or sale involving the bank
3     or assets or liabilities of the bank.
4         (7) The furnishing of information to the appropriate
5     law enforcement authorities where the bank reasonably
6     believes it has been the victim of a crime.
7         (8) The furnishing of information under the Uniform
8     Disposition of Unclaimed Property Act.
9         (9) The furnishing of information under the Illinois
10     Income Tax Act and the Illinois Estate and
11     Generation-Skipping Transfer Tax Act.
12         (10) The furnishing of information under the federal
13     Currency and Foreign Transactions Reporting Act Title 31,
14     United States Code, Section 1051 et seq.
15         (11) The furnishing of information under any other
16     statute that by its terms or by regulations promulgated
17     thereunder requires the disclosure of financial records
18     other than by subpoena, summons, warrant, or court order.
19         (12) The furnishing of information about the existence
20     of an account of a person to a judgment creditor of that
21     person who has made a written request for that information.
22         (13) The exchange in the regular course of business of
23     information between commonly owned banks in connection
24     with a transaction authorized under paragraph (23) of
25     Section 5 and conducted at an affiliate facility.
26         (14) The furnishing of information in accordance with
27     the federal Personal Responsibility and Work Opportunity
28     Reconciliation Act of 1996. Any bank governed by this Act
29     shall enter into an agreement for data exchanges with a
30     State agency provided the State agency pays to the bank a
31     reasonable fee not to exceed its actual cost incurred. A
32     bank providing information in accordance with this item
33     shall not be liable to any account holder or other person
34     for any disclosure of information to a State agency, for
35     encumbering or surrendering any assets held by the bank in
36     response to a lien or order to withhold and deliver issued

 

 

SB2763 - 4 - LRB094 18898 MKM 54586 b

1     by a State agency, or for any other action taken pursuant
2     to this item, including individual or mechanical errors,
3     provided the action does not constitute gross negligence or
4     willful misconduct. A bank shall have no obligation to
5     hold, encumber, or surrender assets until it has been
6     served with a subpoena, summons, warrant, court or
7     administrative order, lien, or levy.
8         (15) The exchange in the regular course of business of
9     information between a bank and any commonly owned affiliate
10     of the bank, subject to the provisions of the Financial
11     Institutions Insurance Sales Law.
12         (16) The furnishing of information to law enforcement
13     authorities, the Illinois Department on Aging and its
14     regional administrative and provider agencies, the
15     Department of Human Services Office of Inspector General,
16     or public guardians: (i) upon subpoena , if there is
17     suspicion by the investigatory entity or , the guardian, or
18     (ii) if there is suspicion by the bank that a customer who
19     is an elderly or disabled person has been or may become the
20     victim of financial exploitation. For the purposes of this
21     item (16), the term: (i) "elderly person" means a person
22     who is 60 or more years of age, (ii) "disabled person"
23     means a person who has or reasonably appears to the bank to
24     have a physical or mental disability that impairs his or
25     her ability to seek or obtain protection from or prevent
26     financial exploitation, and (iii) "financial exploitation"
27     means tortious or illegal use of the assets or resources of
28     an elderly or disabled person, and includes, without
29     limitation, misappropriation of the elderly or disabled
30     person's assets or resources by undue influence, breach of
31     fiduciary relationship, intimidation, fraud, deception,
32     extortion, or the use of assets or resources in any manner
33     contrary to law. A bank or person furnishing information
34     pursuant to this item (16) shall be entitled to the same
35     rights and protections as a person furnishing information
36     under the Elder Abuse and Neglect Act, the Illinois

 

 

SB2763 - 5 - LRB094 18898 MKM 54586 b

1     Domestic Violence Act of 1986, and the Abuse of Adults with
2     Disabilities Intervention Act.
3         (17) The disclosure of financial records or
4     information as necessary to effect, administer, or enforce
5     a transaction requested or authorized by the customer, or
6     in connection with:
7             (A) servicing or processing a financial product or
8         service requested or authorized by the customer;
9             (B) maintaining or servicing a customer's account
10         with the bank; or
11             (C) a proposed or actual securitization or
12         secondary market sale (including sales of servicing
13         rights) related to a transaction of a customer.
14         Nothing in this item (17), however, authorizes the sale
15     of the financial records or information of a customer
16     without the consent of the customer.
17         (18) The disclosure of financial records or
18     information as necessary to protect against actual or
19     potential fraud, unauthorized transactions, claims, or
20     other liability.
21         (19) (a) The disclosure of financial records or
22     information related to a private label credit program
23     between a financial institution and a private label party
24     in connection with that private label credit program. Such
25     information is limited to outstanding balance, available
26     credit, payment and performance and account history,
27     product references, purchase information, and information
28     related to the identity of the customer.
29         (b) (l) For purposes of this paragraph (19) of
30     subsection (b) of Section 48.1, a "private label credit
31     program" means a credit program involving a financial
32     institution and a private label party that is used by a
33     customer of the financial institution and the private label
34     party primarily for payment for goods or services sold,
35     manufactured, or distributed by a private label party.
36         (2) For purposes of this paragraph (19) of subsection

 

 

SB2763 - 6 - LRB094 18898 MKM 54586 b

1     (b) of Section 48.l, a "private label party" means, with
2     respect to a private label credit program, any of the
3     following: a retailer, a merchant, a manufacturer, a trade
4     group, or any such person's affiliate, subsidiary, member,
5     agent, or service provider.
6     (c) Except as otherwise provided by this Act, a bank may
7 not disclose to any person, except to the customer or his duly
8 authorized agent, any financial records or financial
9 information obtained from financial records relating to that
10 customer of that bank unless:
11         (1) the customer has authorized disclosure to the
12     person;
13         (2) the financial records are disclosed in response to
14     a lawful subpoena, summons, warrant or court order which
15     meets the requirements of subsection (d) of this Section;
16     or
17         (3) the bank is attempting to collect an obligation
18     owed to the bank and the bank complies with the provisions
19     of Section 2I of the Consumer Fraud and Deceptive Business
20     Practices Act.
21     (d) A bank shall disclose financial records under paragraph
22 (2) of subsection (c) of this Section under a lawful subpoena,
23 summons, warrant, or court order only after the bank mails a
24 copy of the subpoena, summons, warrant, or court order to the
25 person establishing the relationship with the bank, if living,
26 and, otherwise his personal representative, if known, at his
27 last known address by first class mail, postage prepaid, unless
28 the bank is specifically prohibited from notifying the person
29 by order of court or by applicable State or federal law. A bank
30 shall not mail a copy of a subpoena to any person pursuant to
31 this subsection if the subpoena was issued by a grand jury
32 under the Statewide Grand Jury Act.
33     (e) Any officer or employee of a bank who knowingly and
34 willfully furnishes financial records in violation of this
35 Section is guilty of a business offense and, upon conviction,
36 shall be fined not more than $1,000.

 

 

SB2763 - 7 - LRB094 18898 MKM 54586 b

1     (f) Any person who knowingly and willfully induces or
2 attempts to induce any officer or employee of a bank to
3 disclose financial records in violation of this Section is
4 guilty of a business offense and, upon conviction, shall be
5 fined not more than $1,000.
6     (g) A bank shall be reimbursed for costs that are
7 reasonably necessary and that have been directly incurred in
8 searching for, reproducing, or transporting books, papers,
9 records, or other data of a customer required or requested to
10 be produced pursuant to a lawful subpoena, summons, warrant, or
11 court order. The Commissioner shall determine the rates and
12 conditions under which payment may be made.
13 (Source: P.A. 94-495, eff. 8-8-05.)
 
14     Section 15. The Illinois Savings and Loan Act of 1985 is
15 amended by changing Section 3-8 as follows:
 
16     (205 ILCS 105/3-8)  (from Ch. 17, par. 3303-8)
17     Sec. 3-8. Access to books and records; communication with
18 members.
19     (a) Every member or holder of capital shall have the right
20 to inspect the books and records of the association that
21 pertain to his account. Otherwise, the right of inspection and
22 examination of the books and records shall be limited as
23 provided in this Act, and no other person shall have access to
24 the books and records or shall be entitled to a list of the
25 members.
26     (b) For the purpose of this Section, the term "financial
27 records" means any original, any copy, or any summary of (i) a
28 document granting signature authority over a deposit or
29 account; (ii) a statement, ledger card, or other record on any
30 deposit or account that shows each transaction in or with
31 respect to that account; (iii) a check, draft, or money order
32 drawn on an association or issued and payable by an
33 association; or (iv) any other item containing information
34 pertaining to any relationship established in the ordinary

 

 

SB2763 - 8 - LRB094 18898 MKM 54586 b

1 course of an association's business between an association and
2 its customer, including financial statements or other
3 financial information provided by the member or holder of
4 capital.
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 an association having custody of
9     those records or the examination of those records by a
10     certified public accountant engaged by the association to
11     perform an independent audit.
12         (2) The examination of any financial records by, or the
13     furnishing of financial records by an association to, any
14     officer, employee, or agent of the Commissioner of Banks
15     and Real Estate or 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, holder
21     of capital, 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.
27         (6) The exchange in the regular course of business of
28     (i) credit information between an association and other
29     associations or financial institutions or commercial
30     enterprises, directly or through a consumer reporting
31     agency or (ii) financial records or information derived
32     from financial records between an association and other
33     associations or financial institutions or commercial
34     enterprises for the purpose of conducting due diligence
35     pursuant to a purchase or sale involving the association or
36     assets or liabilities of the association.

 

 

SB2763 - 9 - LRB094 18898 MKM 54586 b

1         (7) The furnishing of information to the appropriate
2     law enforcement authorities where the association
3     reasonably believes it has been the victim of a crime.
4         (8) The furnishing of information pursuant to the
5     Uniform Disposition of Unclaimed Property Act.
6         (9) The furnishing of information pursuant to the
7     Illinois Income Tax Act and the Illinois Estate and
8     Generation-Skipping Transfer Tax Act.
9         (10) The furnishing of information pursuant to the
10     federal "Currency and Foreign Transactions Reporting Act",
11     (Title 31, United States Code, Section 1051 et seq.).
12         (11) The furnishing of information pursuant to any
13     other statute that by its terms or by regulations
14     promulgated thereunder requires the disclosure of
15     financial records other than by subpoena, summons,
16     warrant, or court order.
17         (12) The exchange of information between an
18     association and an affiliate of the association; as used in
19     this item, "affiliate" includes any company, partnership,
20     or organization that controls, is controlled by, or is
21     under common control with an association.
22         (13) The furnishing of information in accordance with
23     the federal Personal Responsibility and Work Opportunity
24     Reconciliation Act of 1996. Any association governed by
25     this Act shall enter into an agreement for data exchanges
26     with a State agency provided the State agency pays to the
27     association a reasonable fee not to exceed its actual cost
28     incurred. An association providing information in
29     accordance with this item shall not be liable to any
30     account holder or other person for any disclosure of
31     information to a State agency, for encumbering or
32     surrendering any assets held by the association in response
33     to a lien or order to withhold and deliver issued by a
34     State agency, or for any other action taken pursuant to
35     this item, including individual or mechanical errors,
36     provided the action does not constitute gross negligence or

 

 

SB2763 - 10 - LRB094 18898 MKM 54586 b

1     willful misconduct. An association shall have no
2     obligation to hold, encumber, or surrender assets until it
3     has been served with a subpoena, summons, warrant, court or
4     administrative order, lien, or levy.
5         (14) The furnishing of information to law enforcement
6     authorities, the Illinois Department on Aging and its
7     regional administrative and provider agencies, the
8     Department of Human Services Office of Inspector General,
9     or public guardians: (i) upon subpoena , if there is
10     suspicion by the investigatory entity or , the guardian, or
11     (ii) if there is suspicion by the association that a
12     customer who is an elderly or disabled person has been or
13     may become the victim of financial exploitation. For the
14     purposes of this item (14), the term: (i) "elderly person"
15     means a person who is 60 or more years of age, (ii)
16     "disabled person" means a person who has or reasonably
17     appears to the association to have a physical or mental
18     disability that impairs his or her ability to seek or
19     obtain protection from or prevent financial exploitation,
20     and (iii) "financial exploitation" means tortious or
21     illegal use of the assets or resources of an elderly or
22     disabled person, and includes, without limitation,
23     misappropriation of the elderly or disabled person's
24     assets or resources by undue influence, breach of fiduciary
25     relationship, intimidation, fraud, deception, extortion,
26     or the use of assets or resources in any manner contrary to
27     law. An association or person furnishing information
28     pursuant to this item (14) shall be entitled to the same
29     rights and protections as a person furnishing information
30     under the Elder Abuse and Neglect Act, the Illinois
31     Domestic Violence Act of 1986, and the Abuse of Adults with
32     Disabilities Intervention Act.
33         (15) The disclosure of financial records or
34     information as necessary to effect, administer, or enforce
35     a transaction requested or authorized by the member or
36     holder of capital, or in connection with:

 

 

SB2763 - 11 - LRB094 18898 MKM 54586 b

1             (A) servicing or processing a financial product or
2         service requested or authorized by the member or holder
3         of capital;
4             (B) maintaining or servicing an account of a member
5         or holder of capital with the association; or
6             (C) a proposed or actual securitization or
7         secondary market sale (including sales of servicing
8         rights) related to a transaction of a member or holder
9         of capital.
10         Nothing in this item (15), however, authorizes the sale
11     of the financial records or information of a member or
12     holder of capital without the consent of the member or
13     holder of capital.
14         (16) The disclosure of financial records or
15     information as necessary to protect against or prevent
16     actual or potential fraud, unauthorized transactions,
17     claims, or other liability.
18         (17) (a) The disclosure of financial records or
19     information related to a private label credit program
20     between a financial institution and a private label party
21     in connection with that private label credit program. Such
22     information is limited to outstanding balance, available
23     credit, payment and performance and account history,
24     product references, purchase information, and information
25     related to the identity of the customer.
26         (b) (l) For purposes of this paragraph (17) of
27     subsection (c) of Section 3-8, a "private label credit
28     program" means a credit program involving a financial
29     institution and a private label party that is used by a
30     customer of the financial institution and the private label
31     party primarily for payment for goods or services sold,
32     manufactured, or distributed by a private label party.
33         (2) For purposes of this paragraph (17) of subsection
34     (c) of Section 3-8, a "private label party" means, with
35     respect to a private label credit program, any of the
36     following: a retailer, a merchant, a manufacturer, a trade

 

 

SB2763 - 12 - LRB094 18898 MKM 54586 b

1     group, or any such person's affiliate, subsidiary, member,
2     agent, or service provider.
3     (d) An association may not disclose to any person, except
4 to the member or holder of capital or his duly authorized
5 agent, any financial records relating to that member or holder
6 of capital of that association unless:
7         (1) The member or holder of capital has authorized
8     disclosure to the person; or
9         (2) The financial records are disclosed in response to
10     a lawful subpoena, summons, warrant, or court order that
11     meets the requirements of subsection (e) of this Section.
12     (e) An association shall disclose financial records under
13 subsection (d) of this Section pursuant to a lawful subpoena,
14 summons, warrant, or court order only after the association
15 mails a copy of the subpoena, summons, warrant, or court order
16 to the person establishing the relationship with the
17 association, if living, and, otherwise, his personal
18 representative, if known, at his last known address by first
19 class mail, postage prepaid, unless the association is
20 specifically prohibited from notifying that person by order of
21 court.
22     (f) (1) Any officer or employee of an association who
23 knowingly and willfully furnishes financial records in
24 violation of this Section is guilty of a business offense and,
25 upon conviction, shall be fined not more than $1,000.
26     (2) Any person who knowingly and willfully induces or
27 attempts to induce any officer or employee of an association to
28 disclose financial records in violation of this Section is
29 guilty of a business offense and, upon conviction, shall be
30 fined not more than $1,000.
31     (g) However, if any member desires to communicate with the
32 other members of the association with reference to any question
33 pending or to be presented at a meeting of the members, the
34 association shall give him upon request a statement of the
35 approximate number of members entitled to vote at the meeting
36 and an estimate of the cost of preparing and mailing the

 

 

SB2763 - 13 - LRB094 18898 MKM 54586 b

1 communication. The requesting member then shall submit the
2 communication to the Commissioner who, if he finds it to be
3 appropriate and truthful, shall direct that it be prepared and
4 mailed to the members upon the requesting member's payment or
5 adequate provision for payment of the expenses of preparation
6 and mailing.
7     (h) An association shall be reimbursed for costs that are
8 necessary and that have been directly incurred in searching
9 for, reproducing, or transporting books, papers, records, or
10 other data of a customer required to be reproduced pursuant to
11 a lawful subpoena, warrant, or court order.
12 (Source: P.A. 93-271, eff. 7-22-03; 94-495, eff. 8-8-05.)
 
13     Section 20. The Savings Bank Act is amended by changing
14 Section 4013 as follows:
 
15     (205 ILCS 205/4013)  (from Ch. 17, par. 7304-13)
16     Sec. 4013. Access to books and records; communication with
17 members and shareholders.
18     (a) Every member or shareholder shall have the right to
19 inspect books and records of the savings bank that pertain to
20 his accounts. Otherwise, the right of inspection and
21 examination of the books and records shall be limited as
22 provided in this Act, and no other person shall have access to
23 the books and records nor shall be entitled to a list of the
24 members or shareholders.
25     (b) For the purpose of this Section, the term "financial
26 records" means any original, any copy, or any summary of (1) a
27 document granting signature authority over a deposit or
28 account; (2) a statement, ledger card, or other record on any
29 deposit or account that shows each transaction in or with
30 respect to that account; (3) a check, draft, or money order
31 drawn on a savings bank or issued and payable by a savings
32 bank; or (4) any other item containing information pertaining
33 to any relationship established in the ordinary course of a
34 savings bank's business between a savings bank and its

 

 

SB2763 - 14 - LRB094 18898 MKM 54586 b

1 customer, including financial statements or other financial
2 information provided by the member or shareholder.
3     (c) This Section does not prohibit:
4         (1) The preparation examination, handling, or
5     maintenance of any financial records by any officer,
6     employee, or agent of a savings bank having custody of
7     records or examination of records by a certified public
8     accountant engaged by the savings bank to perform an
9     independent audit.
10         (2) The examination of any financial records by, or the
11     furnishing of financial records by a savings bank to, any
12     officer, employee, or agent of the Commissioner of Banks
13     and Real Estate or the federal depository institution
14     regulator for use solely in the exercise of his duties as
15     an officer, employee, or agent.
16         (3) The publication of data furnished from financial
17     records relating to members or holders of capital where the
18     data cannot be identified to any particular member,
19     shareholder, or account.
20         (4) The making of reports or returns required under
21     Chapter 61 of the Internal Revenue Code of 1986.
22         (5) Furnishing information concerning the dishonor of
23     any negotiable instrument permitted to be disclosed under
24     the Uniform Commercial Code.
25         (6) The exchange in the regular course of business of
26     (i) credit information between a savings bank and other
27     savings banks or financial institutions or commercial
28     enterprises, directly or through a consumer reporting
29     agency or (ii) financial records or information derived
30     from financial records between a savings bank and other
31     savings banks or financial institutions or commercial
32     enterprises for the purpose of conducting due diligence
33     pursuant to a purchase or sale involving the savings bank
34     or assets or liabilities of the savings bank.
35         (7) The furnishing of information to the appropriate
36     law enforcement authorities where the savings bank

 

 

SB2763 - 15 - LRB094 18898 MKM 54586 b

1     reasonably believes it has been the victim of a crime.
2         (8) The furnishing of information pursuant to the
3     Uniform Disposition of Unclaimed Property Act.
4         (9) The furnishing of information pursuant to the
5     Illinois Income Tax Act and the Illinois Estate and
6     Generation-Skipping Transfer Tax Act.
7         (10) The furnishing of information pursuant to the
8     federal "Currency and Foreign Transactions Reporting Act",
9     (Title 31, United States Code, Section 1051 et seq.).
10         (11) The furnishing of information pursuant to any
11     other statute which by its terms or by regulations
12     promulgated thereunder requires the disclosure of
13     financial records other than by subpoena, summons,
14     warrant, or court order.
15         (12) The furnishing of information in accordance with
16     the federal Personal Responsibility and Work Opportunity
17     Reconciliation Act of 1996. Any savings bank governed by
18     this Act shall enter into an agreement for data exchanges
19     with a State agency provided the State agency pays to the
20     savings bank a reasonable fee not to exceed its actual cost
21     incurred. A savings bank providing information in
22     accordance with this item shall not be liable to any
23     account holder or other person for any disclosure of
24     information to a State agency, for encumbering or
25     surrendering any assets held by the savings bank in
26     response to a lien or order to withhold and deliver issued
27     by a State agency, or for any other action taken pursuant
28     to this item, including individual or mechanical errors,
29     provided the action does not constitute gross negligence or
30     willful misconduct. A savings bank shall have no obligation
31     to hold, encumber, or surrender assets until it has been
32     served with a subpoena, summons, warrant, court or
33     administrative order, lien, or levy.
34         (13) The furnishing of information to law enforcement
35     authorities, the Illinois Department on Aging and its
36     regional administrative and provider agencies, the

 

 

SB2763 - 16 - LRB094 18898 MKM 54586 b

1     Department of Human Services Office of Inspector General,
2     or public guardians: (i) upon subpoena , if there is
3     suspicion by the investigatory entity or , the guardian, or
4     (ii) if there is suspicion by the savings bank that a
5     customer who is an elderly or disabled person has been or
6     may become the victim of financial exploitation. For the
7     purposes of this item (13), the term: (i) "elderly person"
8     means a person who is 60 or more years of age, (ii)
9     "disabled person" means a person who has or reasonably
10     appears to the savings bank to have a physical or mental
11     disability that impairs his or her ability to seek or
12     obtain protection from or prevent financial exploitation,
13     and (iii) "financial exploitation" means tortious or
14     illegal use of the assets or resources of an elderly or
15     disabled person, and includes, without limitation,
16     misappropriation of the elderly or disabled person's
17     assets or resources by undue influence, breach of fiduciary
18     relationship, intimidation, fraud, deception, extortion,
19     or the use of assets or resources in any manner contrary to
20     law. A savings bank or person furnishing information
21     pursuant to this item (13) shall be entitled to the same
22     rights and protections as a person furnishing information
23     under the Elder Abuse and Neglect Act, the Illinois
24     Domestic Violence Act of 1986, and the Abuse of Adults with
25     Disabilities Intervention Act.
26         (14) The disclosure of financial records or
27     information as necessary to effect, administer, or enforce
28     a transaction requested or authorized by the member or
29     holder of capital, or in connection with:
30             (A) servicing or processing a financial product or
31         service requested or authorized by the member or holder
32         of capital;
33             (B) maintaining or servicing an account of a member
34         or holder of capital with the savings bank; or
35             (C) a proposed or actual securitization or
36         secondary market sale (including sales of servicing

 

 

SB2763 - 17 - LRB094 18898 MKM 54586 b

1         rights) related to a transaction of a member or holder
2         of capital.
3         Nothing in this item (14), however, authorizes the sale
4     of the financial records or information of a member or
5     holder of capital without the consent of the member or
6     holder of capital.
7         (15) The exchange in the regular course of business of
8     information between a savings bank and any commonly owned
9     affiliate of the savings bank, subject to the provisions of
10     the Financial Institutions Insurance Sales Law.
11         (16) The disclosure of financial records or
12     information as necessary to protect against or prevent
13     actual or potential fraud, unauthorized transactions,
14     claims, or other liability.
15         (17) (a) The disclosure of financial records or
16     information related to a private label credit program
17     between a financial institution and a private label party
18     in connection with that private label credit program. Such
19     information is limited to outstanding balance, available
20     credit, payment and performance and account history,
21     product references, purchase information, and information
22     related to the identity of the customer.
23         (b) (l) For purposes of this paragraph (17) of
24     subsection (c) of Section 4013, a "private label credit
25     program" means a credit program involving a financial
26     institution and a private label party that is used by a
27     customer of the financial institution and the private label
28     party primarily for payment for goods or services sold,
29     manufactured, or distributed by a private label party.
30         (2) For purposes of this paragraph (17) of subsection
31     (c) of Section 4013, a "private label party" means, with
32     respect to a private label credit program, any of the
33     following: a retailer, a merchant, a manufacturer, a trade
34     group, or any such person's affiliate, subsidiary, member,
35     agent, or service provider.
36     (d) A savings bank may not disclose to any person, except

 

 

SB2763 - 18 - LRB094 18898 MKM 54586 b

1 to the member or holder of capital or his duly authorized
2 agent, any financial records relating to that member or
3 shareholder of the savings bank unless:
4         (1) the member or shareholder has authorized
5     disclosure to the person; or
6         (2) the financial records are disclosed in response to
7     a lawful subpoena, summons, warrant, or court order that
8     meets the requirements of subsection (e) of this Section.
9     (e) A savings bank shall disclose financial records under
10 subsection (d) of this Section pursuant to a lawful subpoena,
11 summons, warrant, or court order only after the savings bank
12 mails a copy of the subpoena, summons, warrant, or court order
13 to the person establishing the relationship with the savings
14 bank, if living, and otherwise, his personal representative, if
15 known, at his last known address by first class mail, postage
16 prepaid, unless the savings bank is specifically prohibited
17 from notifying the person by order of court.
18     (f) Any officer or employee of a savings bank who knowingly
19 and willfully furnishes financial records in violation of this
20 Section is guilty of a business offense and, upon conviction,
21 shall be fined not more than $1,000.
22     (g) Any person who knowingly and willfully induces or
23 attempts to induce any officer or employee of a savings bank to
24 disclose financial records in violation of this Section is
25 guilty of a business offense and, upon conviction, shall be
26 fined not more than $1,000.
27     (h) If any member or shareholder desires to communicate
28 with the other members or shareholders of the savings bank with
29 reference to any question pending or to be presented at an
30 annual or special meeting, the savings bank shall give that
31 person, upon request, a statement of the approximate number of
32 members or shareholders entitled to vote at the meeting and an
33 estimate of the cost of preparing and mailing the
34 communication. The requesting member shall submit the
35 communication to the Commissioner who, upon finding it to be
36 appropriate and truthful, shall direct that it be prepared and

 

 

SB2763 - 19 - LRB094 18898 MKM 54586 b

1 mailed to the members upon the requesting member's or
2 shareholder's payment or adequate provision for payment of the
3 expenses of preparation and mailing.
4     (i) A savings bank shall be reimbursed for costs that are
5 necessary and that have been directly incurred in searching
6 for, reproducing, or transporting books, papers, records, or
7 other data of a customer required to be reproduced pursuant to
8 a lawful subpoena, warrant, or court order.
9     (j) Notwithstanding the provisions of this Section, a
10 savings bank may sell or otherwise make use of lists of
11 customers' names and addresses. All other information
12 regarding a customer's account are subject to the disclosure
13 provisions of this Section. At the request of any customer,
14 that customer's name and address shall be deleted from any list
15 that is to be sold or used in any other manner beyond
16 identification of the customer's accounts.
17 (Source: P.A. 93-271, eff. 7-22-03; 94-495, eff. 8-8-05.)
 
18     Section 25. The Illinois Credit Union Act is amended by
19 changing Section 10 as follows:
 
20     (205 ILCS 305/10)  (from Ch. 17, par. 4411)
21     Sec. 10. Credit union records; member financial records.
22     (1) A credit union shall establish and maintain books,
23 records, accounting systems and procedures which accurately
24 reflect its operations and which enable the Department to
25 readily ascertain the true financial condition of the credit
26 union and whether it is complying with this Act.
27     (2) A photostatic or photographic reproduction of any
28 credit union records shall be admissible as evidence of
29 transactions with the credit union.
30     (3)(a) For the purpose of this Section, the term "financial
31 records" means any original, any copy, or any summary of (1) a
32 document granting signature authority over an account, (2) a
33 statement, ledger card or other record on any account which
34 shows each transaction in or with respect to that account, (3)

 

 

SB2763 - 20 - LRB094 18898 MKM 54586 b

1 a check, draft or money order drawn on a financial institution
2 or other entity or issued and payable by or through a financial
3 institution or other entity, or (4) any other item containing
4 information pertaining to any relationship established in the
5 ordinary course of business between a credit union and its
6 member, including financial statements or other financial
7 information provided by the member.
8     (b) This Section does not prohibit:
9         (1) The preparation, examination, handling or
10     maintenance of any financial records by any officer,
11     employee or agent of a credit union having custody of such
12     records, or the examination of such records by a certified
13     public accountant engaged by the credit union to perform an
14     independent audit.
15         (2) The examination of any financial records by or the
16     furnishing of financial records by a credit union to any
17     officer, employee or agent of the Department, the National
18     Credit Union Administration, Federal Reserve board or any
19     insurer of share accounts for use solely in the exercise of
20     his duties as an officer, employee or agent.
21         (3) The publication of data furnished from financial
22     records relating to members where the data cannot be
23     identified to any particular customer of account.
24         (4) The making of reports or returns required under
25     Chapter 61 of the Internal Revenue Code of 1954.
26         (5) Furnishing information concerning the dishonor of
27     any negotiable instrument permitted to be disclosed under
28     the Uniform Commercial Code.
29         (6) The exchange in the regular course of business of
30     (i) credit information between a credit union and other
31     credit unions or financial institutions or commercial
32     enterprises, directly or through a consumer reporting
33     agency or (ii) financial records or information derived
34     from financial records between a credit union and other
35     credit unions or financial institutions or commercial
36     enterprises for the purpose of conducting due diligence

 

 

SB2763 - 21 - LRB094 18898 MKM 54586 b

1     pursuant to a merger or a purchase or sale of assets or
2     liabilities of the credit union.
3         (7) The furnishing of information to the appropriate
4     law enforcement authorities where the credit union
5     reasonably believes it has been the victim of a crime.
6         (8) The furnishing of information pursuant to the
7     Uniform Disposition of Unclaimed Property Act.
8         (9) The furnishing of information pursuant to the
9     Illinois Income Tax Act and the Illinois Estate and
10     Generation-Skipping Transfer Tax Act.
11         (10) The furnishing of information pursuant to the
12     federal "Currency and Foreign Transactions Reporting Act",
13     Title 31, United States Code, Section 1051 et sequentia.
14         (11) The furnishing of information pursuant to any
15     other statute which by its terms or by regulations
16     promulgated thereunder requires the disclosure of
17     financial records other than by subpoena, summons, warrant
18     or court order.
19         (12) The furnishing of information in accordance with
20     the federal Personal Responsibility and Work Opportunity
21     Reconciliation Act of 1996. Any credit union governed by
22     this Act shall enter into an agreement for data exchanges
23     with a State agency provided the State agency pays to the
24     credit union a reasonable fee not to exceed its actual cost
25     incurred. A credit union providing information in
26     accordance with this item shall not be liable to any
27     account holder or other person for any disclosure of
28     information to a State agency, for encumbering or
29     surrendering any assets held by the credit union in
30     response to a lien or order to withhold and deliver issued
31     by a State agency, or for any other action taken pursuant
32     to this item, including individual or mechanical errors,
33     provided the action does not constitute gross negligence or
34     willful misconduct. A credit union shall have no obligation
35     to hold, encumber, or surrender assets until it has been
36     served with a subpoena, summons, warrant, court or

 

 

SB2763 - 22 - LRB094 18898 MKM 54586 b

1     administrative order, lien, or levy.
2         (13) The furnishing of information to law enforcement
3     authorities, the Illinois Department on Aging and its
4     regional administrative and provider agencies, the
5     Department of Human Services Office of Inspector General,
6     or public guardians: (i) upon subpoena , if there is
7     suspicion by the investigatory entity or , the guardian, or
8     (ii) if there is suspicion by the credit union that a
9     member who is an elderly or disabled person has been or may
10     become the victim of financial exploitation. For the
11     purposes of this item (13), the term: (i) "elderly person"
12     means a person who is 60 or more years of age, (ii)
13     "disabled person" means a person who has or reasonably
14     appears to the credit union to have a physical or mental
15     disability that impairs his or her ability to seek or
16     obtain protection from or prevent financial exploitation,
17     and (iii) "financial exploitation" means tortious or
18     illegal use of the assets or resources of an elderly or
19     disabled person, and includes, without limitation,
20     misappropriation of the elderly or disabled person's
21     assets or resources by undue influence, breach of fiduciary
22     relationship, intimidation, fraud, deception, extortion,
23     or the use of assets or resources in any manner contrary to
24     law. A credit union or person furnishing information
25     pursuant to this item (13) shall be entitled to the same
26     rights and protections as a person furnishing information
27     under the Elder Abuse and Neglect Act, the Illinois
28     Domestic Violence Act of 1986, and the Abuse of Adults with
29     Disabilities Intervention Act.
30         (14) The disclosure of financial records or
31     information as necessary to effect, administer, or enforce
32     a transaction requested or authorized by the member, or in
33     connection with:
34             (A) servicing or processing a financial product or
35         service requested or authorized by the member;
36             (B) maintaining or servicing a member's account

 

 

SB2763 - 23 - LRB094 18898 MKM 54586 b

1         with the credit union; or
2             (C) a proposed or actual securitization or
3         secondary market sale (including sales of servicing
4         rights) related to a transaction of a member.
5         Nothing in this item (14), however, authorizes the sale
6     of the financial records or information of a member without
7     the consent of the member.
8         (15) The disclosure of financial records or
9     information as necessary to protect against or prevent
10     actual or potential fraud, unauthorized transactions,
11     claims, or other liability.
12         (16)(a) The disclosure of financial records or
13     information related to a private label credit program
14     between a financial institution and a private label party
15     in connection with that private label credit program. Such
16     information is limited to outstanding balance, available
17     credit, payment and performance and account history,
18     product references, purchase information, and information
19     related to the identity of the customer.
20         (b)(l) For purposes of this paragraph (16) of
21     subsection (b) of Section 10, a "private label credit
22     program" means a credit program involving a financial
23     institution and a private label party that is used by a
24     customer of the financial institution and the private label
25     party primarily for payment for goods or services sold,
26     manufactured, or distributed by a private label party.
27         (2) For purposes of this paragraph (16) of subsection
28     (b) of Section 10, a "private label party" means, with
29     respect to a private label credit program, any of the
30     following: a retailer, a merchant, a manufacturer, a trade
31     group, or any such person's affiliate, subsidiary, member,
32     agent, or service provider.
33     (c) Except as otherwise provided by this Act, a credit
34 union may not disclose to any person, except to the member or
35 his duly authorized agent, any financial records relating to
36 that member of the credit union unless:

 

 

SB2763 - 24 - LRB094 18898 MKM 54586 b

1         (1) the member has authorized disclosure to the person;
2         (2) the financial records are disclosed in response to
3     a lawful subpoena, summons, warrant or court order that
4     meets the requirements of subparagraph (d) of this Section;
5     or
6         (3) the credit union is attempting to collect an
7     obligation owed to the credit union and the credit union
8     complies with the provisions of Section 2I of the Consumer
9     Fraud and Deceptive Business Practices Act.
10     (d) A credit union shall disclose financial records under
11 subparagraph (c)(2) of this Section pursuant to a lawful
12 subpoena, summons, warrant or court order only after the credit
13 union mails a copy of the subpoena, summons, warrant or court
14 order to the person establishing the relationship with the
15 credit union, if living, and otherwise his personal
16 representative, if known, at his last known address by first
17 class mail, postage prepaid unless the credit union is
18 specifically prohibited from notifying the person by order of
19 court or by applicable State or federal law. In the case of a
20 grand jury subpoena, a credit union shall not mail a copy of a
21 subpoena to any person pursuant to this subsection if the
22 subpoena was issued by a grand jury under the Statewide Grand
23 Jury Act or notifying the person would constitute a violation
24 of the federal Right to Financial Privacy Act of 1978.
25     (e)(1) Any officer or employee of a credit union who
26 knowingly and wilfully furnishes financial records in
27 violation of this Section is guilty of a business offense and
28 upon conviction thereof shall be fined not more than $1,000.
29     (2) Any person who knowingly and wilfully induces or
30 attempts to induce any officer or employee of a credit union to
31 disclose financial records in violation of this Section is
32 guilty of a business offense and upon conviction thereof shall
33 be fined not more than $1,000.
34     (f) A credit union shall be reimbursed for costs which are
35 reasonably necessary and which have been directly incurred in
36 searching for, reproducing or transporting books, papers,

 

 

SB2763 - 25 - LRB094 18898 MKM 54586 b

1 records or other data of a member required or requested to be
2 produced pursuant to a lawful subpoena, summons, warrant or
3 court order. The Director may determine, by rule, the rates and
4 conditions under which payment shall be made. Delivery of
5 requested documents may be delayed until final reimbursement of
6 all costs is received.
7 (Source: P.A. 94-495, eff. 8-8-05.)
 
8     Section 99. Effective date. This Act takes effect upon
9 becoming law.