Full Text of HB1301 94th General Assembly
HB1301eng 94TH GENERAL ASSEMBLY
|
|
|
HB1301 Engrossed |
|
LRB094 03887 AMC 33898 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 48.1 as follows:
| 6 |
| (205 ILCS 5/48.1) (from Ch. 17, par. 360)
| 7 |
| Sec. 48.1. Customer financial records; confidentiality.
| 8 |
| (a) For the purpose of this Section, the term "financial | 9 |
| records" means any
original, any copy, or any summary of:
| 10 |
| (1) a document granting signature
authority over a | 11 |
| deposit or account;
| 12 |
| (2) a statement, ledger card or other
record on any | 13 |
| deposit or account, which shows each transaction in or with
| 14 |
| respect to that account;
| 15 |
| (3) a check, draft or money order drawn on a bank
or | 16 |
| issued and payable by a bank; or
| 17 |
| (4) any other item containing
information pertaining | 18 |
| to any relationship established in the ordinary
course of a | 19 |
| bank's business between a bank and its customer, including
| 20 |
| financial statements or other financial information | 21 |
| provided by the customer.
| 22 |
| (b) This Section does not prohibit:
| 23 |
| (1) The preparation, examination, handling or | 24 |
| maintenance of any
financial records by any officer, | 25 |
| employee or agent of a bank
having custody of the records, | 26 |
| or the examination of the records by a
certified public | 27 |
| accountant engaged by the bank to perform an independent
| 28 |
| audit.
| 29 |
| (2) The examination of any financial records by, or the | 30 |
| furnishing of
financial records by a bank to, any officer, | 31 |
| employee or agent of (i) the
Commissioner of Banks and Real | 32 |
| Estate, (ii) after May
31, 1997, a state regulatory |
|
|
|
HB1301 Engrossed |
- 2 - |
LRB094 03887 AMC 33898 b |
|
| 1 |
| authority authorized to examine a branch of a
State bank | 2 |
| located in another state, (iii) the Comptroller of the | 3 |
| Currency,
(iv) the Federal Reserve Board, or (v) the | 4 |
| Federal Deposit Insurance
Corporation for use solely in the | 5 |
| exercise of his duties as an officer,
employee, or agent.
| 6 |
| (3) The publication of data furnished from financial | 7 |
| records
relating to customers where the data cannot be | 8 |
| identified to any
particular customer or account.
| 9 |
| (4) The making of reports or returns required under | 10 |
| Chapter 61 of
the Internal Revenue Code of 1986.
| 11 |
| (5) Furnishing information concerning the dishonor of | 12 |
| any negotiable
instrument permitted to be disclosed under | 13 |
| the Uniform Commercial Code.
| 14 |
| (6) The exchange in the regular course of business of | 15 |
| (i) credit
information
between a bank and other banks or | 16 |
| financial institutions or commercial
enterprises, directly | 17 |
| or through a consumer reporting agency or (ii)
financial | 18 |
| records or information derived from financial records | 19 |
| between a bank
and other banks or financial institutions or | 20 |
| commercial enterprises for the
purpose of conducting due | 21 |
| diligence pursuant to a purchase or sale involving
the bank | 22 |
| or assets or liabilities of the bank.
| 23 |
| (7) The furnishing of information to the appropriate | 24 |
| law enforcement
authorities where the bank reasonably | 25 |
| believes it has been the victim of a
crime.
| 26 |
| (8) The furnishing of information under the Uniform | 27 |
| Disposition of
Unclaimed Property Act.
| 28 |
| (9) The furnishing of information under the Illinois | 29 |
| Income Tax Act and
the Illinois Estate and | 30 |
| Generation-Skipping Transfer Tax Act.
| 31 |
| (10) The furnishing of information under the federal | 32 |
| Currency
and Foreign Transactions Reporting Act Title 31, | 33 |
| United States
Code, Section 1051 et seq.
| 34 |
| (11) The furnishing of information under any other | 35 |
| statute that
by its terms or by regulations promulgated | 36 |
| thereunder requires the disclosure
of financial records |
|
|
|
HB1301 Engrossed |
- 3 - |
LRB094 03887 AMC 33898 b |
|
| 1 |
| other than by subpoena, summons, warrant, or court order.
| 2 |
| (12) The furnishing of information about the existence | 3 |
| of an account
of a person to a judgment creditor of that | 4 |
| person who has made a written
request for that information.
| 5 |
| (13) The exchange in the regular course of business of | 6 |
| information
between commonly owned banks in connection | 7 |
| with a transaction authorized
under paragraph (23) of
| 8 |
| Section 5 and conducted at an affiliate facility.
| 9 |
| (14) The furnishing of information in accordance with | 10 |
| the federal
Personal Responsibility and Work Opportunity | 11 |
| Reconciliation Act of 1996.
Any bank governed by this Act | 12 |
| shall enter into an agreement for data
exchanges with a | 13 |
| State agency provided the State agency
pays to the bank a | 14 |
| reasonable fee not to exceed its
actual cost incurred. A | 15 |
| bank providing
information in accordance with this item | 16 |
| shall not be liable to any account
holder or other person | 17 |
| for any disclosure of information to a State agency, for
| 18 |
| encumbering or surrendering any assets held by the bank in | 19 |
| response to a lien
or order to withhold and deliver issued | 20 |
| by a State agency, or for any other
action taken pursuant | 21 |
| to this item, including individual or mechanical errors,
| 22 |
| provided the action does not constitute gross negligence or | 23 |
| willful misconduct.
A bank shall have no obligation to | 24 |
| hold, encumber, or surrender assets until
it has been | 25 |
| served with a subpoena, summons, warrant, court or | 26 |
| administrative
order,
lien, or levy.
| 27 |
| (15) The exchange in the regular course of business of | 28 |
| information
between
a bank and any commonly owned affiliate | 29 |
| of the bank, subject to the provisions
of the Financial | 30 |
| Institutions Insurance Sales Law.
| 31 |
| (16) The furnishing of information to law enforcement | 32 |
| authorities, the
Illinois Department on
Aging and its | 33 |
| regional administrative and provider agencies, the | 34 |
| Department of
Human Services Office
of Inspector General, | 35 |
| or public guardians, if there is suspicion by the | 36 |
| investigatory entity, the guardian, or the bank suspects |
|
|
|
HB1301 Engrossed |
- 4 - |
LRB094 03887 AMC 33898 b |
|
| 1 |
| that a customer
who is an elderly or
disabled person has | 2 |
| been or may become the victim of financial exploitation.
| 3 |
| For the purposes of this
item (16), the term: (i) "elderly | 4 |
| person" means a person who is 60 or more
years of age, (ii) | 5 |
| "disabled
person" means a person who has or reasonably | 6 |
| appears to the bank to have a
physical or mental
disability | 7 |
| that impairs his or her ability to seek or obtain | 8 |
| protection from or
prevent financial
exploitation, and | 9 |
| (iii) "financial exploitation" means tortious or illegal | 10 |
| use
of the assets or resources of
an elderly or disabled | 11 |
| person, and includes, without limitation,
misappropriation | 12 |
| of the elderly or
disabled person's assets or resources by | 13 |
| undue influence, breach of fiduciary
relationship, | 14 |
| intimidation,
fraud, deception, extortion, or the use of | 15 |
| assets or resources in any manner
contrary to law. A bank | 16 |
| or
person furnishing information pursuant to this item (16) | 17 |
| shall be entitled to
the same rights and
protections as a | 18 |
| person furnishing information under the Elder Abuse and
| 19 |
| Neglect Act ,
and the Illinois
Domestic Violence Act of | 20 |
| 1986 , and the Abuse of Adults with Disabilities | 21 |
| Intervention Act .
| 22 |
| (17) The disclosure of financial records or | 23 |
| information as necessary to
effect, administer, or enforce | 24 |
| a transaction requested or authorized by the
customer, or | 25 |
| in connection with:
| 26 |
| (A) servicing or processing a financial product or | 27 |
| service requested or
authorized by the customer;
| 28 |
| (B) maintaining or servicing a customer's account | 29 |
| with the bank; or
| 30 |
| (C) a proposed or actual securitization or | 31 |
| secondary market sale
(including sales of servicing | 32 |
| rights) related to a
transaction of a customer.
| 33 |
| Nothing in this item (17), however, authorizes the sale | 34 |
| of the financial
records or information of a customer | 35 |
| without the consent of the customer.
| 36 |
| (18) The disclosure of financial records or |
|
|
|
HB1301 Engrossed |
- 5 - |
LRB094 03887 AMC 33898 b |
|
| 1 |
| information as necessary to
protect against actual or | 2 |
| potential fraud, unauthorized transactions, claims,
or | 3 |
| other liability.
| 4 |
| (19) (a) The disclosure of financial records or | 5 |
| information
related to a private label credit program | 6 |
| between a financial
institution and a private label party | 7 |
| in connection with that
private label credit program. Such | 8 |
| information is limited to
outstanding balance, available | 9 |
| credit, payment and performance
and account history, | 10 |
| product references, purchase information,
and information
| 11 |
| related to the identity of the customer.
| 12 |
| (b) (l) For purposes of this paragraph (19) of | 13 |
| subsection
(b) of Section 48.1, a "private label credit | 14 |
| program" means a
credit program involving a financial | 15 |
| institution and a private label
party that is used by a | 16 |
| customer of the financial institution and the
private label | 17 |
| party primarily for payment for goods or services
sold, | 18 |
| manufactured, or distributed by a private label party.
| 19 |
| (2) For purposes of this paragraph (19) of subsection | 20 |
| (b)
of Section 48.l, a "private label party" means, with | 21 |
| respect to a
private label credit program, any of the | 22 |
| following: a
retailer, a merchant, a manufacturer, a trade | 23 |
| group,
or any such person's affiliate, subsidiary, member,
| 24 |
| agent, or service provider.
| 25 |
| (c) Except as otherwise provided by this Act, a bank may | 26 |
| not disclose to
any person, except to the customer or his
duly | 27 |
| authorized agent, any financial records or financial | 28 |
| information
obtained from financial records relating to that | 29 |
| customer of
that bank unless:
| 30 |
| (1) the customer has authorized disclosure to the | 31 |
| person;
| 32 |
| (2) the financial records are disclosed in response to | 33 |
| a lawful
subpoena, summons, warrant or court order which | 34 |
| meets the requirements
of subsection (d) of this Section; | 35 |
| or
| 36 |
| (3) the bank is attempting to collect an obligation |
|
|
|
HB1301 Engrossed |
- 6 - |
LRB094 03887 AMC 33898 b |
|
| 1 |
| owed to the bank
and the bank complies with the provisions | 2 |
| of Section 2I of the Consumer
Fraud and Deceptive Business | 3 |
| Practices Act.
| 4 |
| (d) A bank shall disclose financial records under paragraph | 5 |
| (2) of
subsection (c) of this Section under a lawful subpoena, | 6 |
| summons, warrant, or
court order only after the bank mails a | 7 |
| copy of the subpoena, summons, warrant,
or court order to the | 8 |
| person establishing the relationship with the bank, if
living, | 9 |
| and, otherwise his personal representative, if known, at his | 10 |
| last known
address by first class mail, postage prepaid, unless | 11 |
| the bank is specifically
prohibited from notifying the person | 12 |
| by order of court or by applicable State
or federal law. A bank | 13 |
| shall not mail a copy of a subpoena to any person
pursuant to | 14 |
| this subsection if the subpoena was issued by a grand jury | 15 |
| under
the Statewide Grand Jury Act.
| 16 |
| (e) Any officer or employee of a bank who knowingly and
| 17 |
| willfully furnishes financial records in violation of this | 18 |
| Section is
guilty of a business offense and, upon conviction, | 19 |
| shall be fined not
more than $1,000.
| 20 |
| (f) Any person who knowingly and willfully induces or | 21 |
| attempts to
induce any officer or employee of a bank to | 22 |
| disclose financial
records in violation of this Section is | 23 |
| guilty of a business offense
and, upon conviction, shall be | 24 |
| fined not more than $1,000.
| 25 |
| (g) A bank shall be reimbursed for costs that are | 26 |
| reasonably necessary
and that have been directly incurred in | 27 |
| searching for, reproducing, or
transporting books, papers, | 28 |
| records, or other data of a customer required or
requested to | 29 |
| be produced pursuant to a lawful subpoena, summons, warrant, or
| 30 |
| court order. The Commissioner shall determine the rates and | 31 |
| conditions
under which payment may be made.
| 32 |
| (Source: P.A. 91-330, eff. 7-29-99; 91-929, eff. 12-15-00; | 33 |
| 92-483, eff.
8-23-01; 92-543, eff. 6-12-02.)
| 34 |
| Section 10. The Illinois Savings and Loan Act of 1985 is | 35 |
| amended by changing Section 3-8 as follows:
|
|
|
|
HB1301 Engrossed |
- 7 - |
LRB094 03887 AMC 33898 b |
|
| 1 |
| (205 ILCS 105/3-8) (from Ch. 17, par. 3303-8)
| 2 |
| Sec. 3-8. Access to books and records; communication with | 3 |
| members.
| 4 |
| (a) Every member or holder of capital shall have the right | 5 |
| to inspect
the books and records of the association that | 6 |
| pertain to his account.
Otherwise, the right of inspection and | 7 |
| examination of the books and
records shall be limited as | 8 |
| provided in this Act, and no other person
shall have access to | 9 |
| the books and records or shall be entitled to a
list of the | 10 |
| members.
| 11 |
| (b) For the purpose of this Section, the term "financial | 12 |
| records"
means any original, any copy, or any summary of (i) a | 13 |
| document granting
signature authority over a deposit or | 14 |
| account; (ii) a statement, ledger
card, or other record on any | 15 |
| deposit or account that
shows each transaction in or with | 16 |
| respect to that account; (iii) a check,
draft, or money order | 17 |
| drawn on an association or issued and payable by
an | 18 |
| association; or (iv) any other item containing information | 19 |
| pertaining to
any relationship established in the ordinary | 20 |
| course of an association's
business between an association and | 21 |
| its customer, including financial
statements or other | 22 |
| financial information provided by the member or holder of
| 23 |
| capital.
| 24 |
| (c) This Section does not prohibit:
| 25 |
| (1) The preparation, examination, handling, or | 26 |
| maintenance of any
financial records by any officer, | 27 |
| employee, or agent of an association having
custody of | 28 |
| those records or the examination of those records by a | 29 |
| certified
public accountant engaged by the association to | 30 |
| perform an independent
audit.
| 31 |
| (2) The examination of any financial records by, or the | 32 |
| furnishing of
financial records by an association to, any | 33 |
| officer, employee, or agent of the
Commissioner of Banks | 34 |
| and Real Estate or federal depository institution
| 35 |
| regulator for use solely in the exercise
of
his duties as |
|
|
|
HB1301 Engrossed |
- 8 - |
LRB094 03887 AMC 33898 b |
|
| 1 |
| an officer, employee, or agent.
| 2 |
| (3) The publication of data furnished from financial | 3 |
| records
relating to members or holders of capital where the | 4 |
| data cannot be
identified to any particular member, holder | 5 |
| of capital, or account.
| 6 |
| (4) The making of reports or returns required under | 7 |
| Chapter 61 of
the Internal Revenue Code of 1986.
| 8 |
| (5) Furnishing information concerning the dishonor of | 9 |
| any negotiable
instrument permitted to be disclosed under | 10 |
| the Uniform Commercial
Code.
| 11 |
| (6) The exchange in the regular course of business of | 12 |
| (i) credit
information between an association and other | 13 |
| associations or financial
institutions or commercial | 14 |
| enterprises, directly or through a consumer
reporting | 15 |
| agency
or (ii) financial records or information derived | 16 |
| from financial records
between an association and other | 17 |
| associations or financial institutions or
commercial | 18 |
| enterprises for the purpose of conducting due diligence | 19 |
| pursuant to
a purchase or sale involving the association or | 20 |
| assets or liabilities of the
association.
| 21 |
| (7) The furnishing of information to the appropriate | 22 |
| law enforcement
authorities where the association | 23 |
| reasonably believes it has been the
victim of a crime.
| 24 |
| (8) The furnishing of information pursuant to the | 25 |
| Uniform Disposition
of Unclaimed Property Act.
| 26 |
| (9) The furnishing of information pursuant to the | 27 |
| Illinois Income Tax
Act and the Illinois Estate and | 28 |
| Generation-Skipping Transfer Tax Act.
| 29 |
| (10) The furnishing of information pursuant to the | 30 |
| federal "Currency
and Foreign Transactions Reporting Act", | 31 |
| (Title 31, United States
Code, Section 1051 et seq.).
| 32 |
| (11) The furnishing of information pursuant to any | 33 |
| other statute that
by its terms or by regulations | 34 |
| promulgated thereunder requires the disclosure
of | 35 |
| financial records other than by subpoena, summons, | 36 |
| warrant, or court
order.
|
|
|
|
HB1301 Engrossed |
- 9 - |
LRB094 03887 AMC 33898 b |
|
| 1 |
| (12) The exchange of information between an | 2 |
| association and an affiliate
of the association; as used in | 3 |
| this item, "affiliate" includes any
company, partnership, | 4 |
| or organization that controls, is controlled by, or is
| 5 |
| under common control with an association.
| 6 |
| (13) The furnishing of information
in accordance with | 7 |
| the federal Personal Responsibility and Work Opportunity
| 8 |
| Reconciliation Act of 1996. Any association governed by | 9 |
| this Act shall enter
into an agreement for data
exchanges | 10 |
| with a State agency provided the State agency
pays to the | 11 |
| association a reasonable fee not to exceed its
actual cost | 12 |
| incurred. An association
providing
information in | 13 |
| accordance with this item shall not be liable to any | 14 |
| account
holder or other person for any disclosure of | 15 |
| information to a State agency, for
encumbering or | 16 |
| surrendering any assets held by the association in response | 17 |
| to a
lien
or order to withhold and deliver issued by a | 18 |
| State agency, or for any other
action taken pursuant to | 19 |
| this item, including individual or mechanical errors,
| 20 |
| provided the action does not constitute gross negligence or | 21 |
| willful misconduct.
An association shall have no | 22 |
| obligation to hold, encumber, or surrender assets
until it | 23 |
| has been served with a subpoena, summons, warrant, court or
| 24 |
| administrative order, lien, or levy.
| 25 |
| (14) The furnishing of information to law enforcement | 26 |
| authorities, the
Illinois Department on
Aging and its | 27 |
| regional administrative and provider agencies, the | 28 |
| Department of
Human Services Office
of Inspector General, | 29 |
| or public guardians, if there is suspicion by the | 30 |
| investigatory entity, the guardian, or the association | 31 |
| suspects that a
customer who is an elderly or
disabled | 32 |
| person has been or may become the victim of financial | 33 |
| exploitation.
For the purposes of this
item (14), the term: | 34 |
| (i) "elderly person" means a person who is 60 or more
years | 35 |
| of age, (ii) "disabled
person" means a person who has or | 36 |
| reasonably appears to the association to have
a physical or |
|
|
|
HB1301 Engrossed |
- 10 - |
LRB094 03887 AMC 33898 b |
|
| 1 |
| mental
disability that impairs his or her ability to seek | 2 |
| or obtain protection from or
prevent financial
| 3 |
| exploitation, and (iii) "financial exploitation" means | 4 |
| tortious or illegal use
of the assets or resources of
an | 5 |
| elderly or disabled person, and includes, without | 6 |
| limitation,
misappropriation of the elderly or
disabled | 7 |
| person's assets or resources by undue influence, breach of | 8 |
| fiduciary
relationship, intimidation,
fraud, deception, | 9 |
| extortion, or the use of assets or resources in any manner
| 10 |
| contrary to law. An
association or person furnishing | 11 |
| information pursuant to this item (14) shall
be entitled to | 12 |
| the same
rights and protections as a person furnishing | 13 |
| information under the Elder Abuse
and Neglect Act ,
and the
| 14 |
| Illinois Domestic Violence Act of 1986 , and the Abuse of | 15 |
| Adults with Disabilities Intervention Act .
| 16 |
| (15) The disclosure of financial records or | 17 |
| information as necessary to
effect, administer, or enforce | 18 |
| a transaction requested or authorized by the
member or | 19 |
| holder of capital, or in connection with:
| 20 |
| (A) servicing or processing a financial product or | 21 |
| service requested or
authorized by the member or holder | 22 |
| of capital;
| 23 |
| (B) maintaining or servicing an account of a member | 24 |
| or holder of capital
with the association; or
| 25 |
| (C) a proposed or actual securitization or | 26 |
| secondary market sale
(including
sales of servicing | 27 |
| rights) related to a transaction of
a member or holder | 28 |
| of capital.
| 29 |
| Nothing in this item (15), however, authorizes the sale | 30 |
| of the financial
records or information of a member or | 31 |
| holder of capital without the consent of
the member or | 32 |
| holder of capital.
| 33 |
| (16) The disclosure of financial records or | 34 |
| information as necessary to
protect against or prevent | 35 |
| actual or potential fraud, unauthorized
transactions, | 36 |
| claims, or other liability.
|
|
|
|
HB1301 Engrossed |
- 11 - |
LRB094 03887 AMC 33898 b |
|
| 1 |
| (17) (a) The disclosure of financial records or | 2 |
| information
related to a private label credit program | 3 |
| between a financial
institution and a private label party | 4 |
| in connection
with that private label credit program. Such | 5 |
| information
is limited to outstanding balance, available | 6 |
| credit, payment and
performance and account history, | 7 |
| product references, purchase
information,
and information | 8 |
| related to the identity of the
customer.
| 9 |
| (b) (l) For purposes of this paragraph (17) of | 10 |
| subsection
(c) of Section 3-8, a "private label credit | 11 |
| program" means a
credit program involving a financial | 12 |
| institution and a private label
party that is used by a | 13 |
| customer of the financial institution and the
private label | 14 |
| party primarily for payment for goods or services
sold, | 15 |
| manufactured, or distributed by a private label party.
| 16 |
| (2) For purposes of this paragraph (17) of subsection | 17 |
| (c)
of Section 3-8, a "private label party" means, with | 18 |
| respect to a
private label credit program, any of the | 19 |
| following: a
retailer, a merchant, a manufacturer, a trade | 20 |
| group,
or any such person's affiliate, subsidiary, member,
| 21 |
| agent, or service provider.
| 22 |
| (d) An association may not disclose to any person, except | 23 |
| to the
member or holder of capital or his duly authorized | 24 |
| agent, any financial
records relating to that member or holder | 25 |
| of capital of that association
unless:
| 26 |
| (1) The member or holder of capital has authorized | 27 |
| disclosure to the
person; or
| 28 |
| (2) The financial records are disclosed in response to | 29 |
| a lawful
subpoena, summons, warrant, or court order that | 30 |
| meets the
requirements of subsection (e) of this Section.
| 31 |
| (e) An association shall disclose financial records under | 32 |
| subsection
(d) of this Section pursuant to a lawful subpoena, | 33 |
| summons,
warrant, or court order only after the association | 34 |
| mails a copy of the
subpoena, summons, warrant, or court order | 35 |
| to the person establishing
the relationship with the | 36 |
| association, if living, and, otherwise, his
personal |
|
|
|
HB1301 Engrossed |
- 12 - |
LRB094 03887 AMC 33898 b |
|
| 1 |
| representative, if known, at his last known address by first | 2 |
| class
mail, postage prepaid, unless the association is | 3 |
| specifically prohibited
from notifying that person by order of | 4 |
| court.
| 5 |
| (f) (1) Any officer or employee of an association who | 6 |
| knowingly and
willfully furnishes financial records in | 7 |
| violation of this Section is
guilty of a business offense and, | 8 |
| upon conviction, shall be fined not
more than $1,000.
| 9 |
| (2) Any person who knowingly and willfully induces or | 10 |
| attempts to
induce any officer or employee of an association to | 11 |
| disclose financial
records in violation of this Section is | 12 |
| guilty of a business offense
and, upon conviction, shall be | 13 |
| fined not more than $1,000.
| 14 |
| (g) However, if any member desires to communicate with the | 15 |
| other
members of the association with reference to any question | 16 |
| pending or to
be presented at a meeting of the members, the | 17 |
| association shall give him
upon request a statement of the | 18 |
| approximate number of members entitled
to vote at the meeting | 19 |
| and an estimate of the cost of
preparing and mailing the | 20 |
| communication. The requesting
member then shall submit the | 21 |
| communication to the Commissioner who, if he
finds it to be | 22 |
| appropriate and truthful, shall direct that it be prepared
and | 23 |
| mailed to the members upon the requesting member's payment or
| 24 |
| adequate provision for payment of the expenses of preparation | 25 |
| and mailing.
| 26 |
| (h) An association shall be reimbursed for costs that are | 27 |
| necessary and
that have been directly incurred in searching | 28 |
| for, reproducing, or
transporting books, papers, records, or | 29 |
| other data of a customer required
to be reproduced pursuant to | 30 |
| a lawful subpoena, warrant, or court order.
| 31 |
| (Source: P.A. 92-483, eff. 8-23-01; 92-543, eff.
6-12-02; | 32 |
| 93-271, eff. 7-22-03.)
| 33 |
| Section 15. The Savings Bank Act is amended by changing | 34 |
| Section 4013 as follows:
|
|
|
|
HB1301 Engrossed |
- 13 - |
LRB094 03887 AMC 33898 b |
|
| 1 |
| (205 ILCS 205/4013) (from Ch. 17, par. 7304-13)
| 2 |
| Sec. 4013. Access to books and records; communication with | 3 |
| members
and shareholders.
| 4 |
| (a) Every member or shareholder shall have the right to | 5 |
| inspect books
and records of the savings bank that pertain to | 6 |
| his accounts. Otherwise,
the right of inspection and | 7 |
| examination of the books and records shall be
limited as | 8 |
| provided in this Act, and no other person shall have access to
| 9 |
| the books and records nor shall be entitled to a list of the | 10 |
| members or
shareholders.
| 11 |
| (b) For the purpose of this Section, the term "financial | 12 |
| records" means
any original, any copy, or any summary of (1) a | 13 |
| document granting signature
authority over a deposit or | 14 |
| account; (2) a statement, ledger card, or other
record on any | 15 |
| deposit or account that shows each transaction in or with
| 16 |
| respect to that account; (3) a check, draft, or money order | 17 |
| drawn on a
savings bank or issued and payable by a savings | 18 |
| bank; or (4) any other item
containing information pertaining | 19 |
| to any relationship established in the
ordinary course of a | 20 |
| savings bank's business between a savings bank and
its | 21 |
| customer, including financial statements or other financial | 22 |
| information
provided by the member or shareholder.
| 23 |
| (c) This Section does not prohibit:
| 24 |
| (1) The preparation examination, handling, or | 25 |
| maintenance of any
financial records by any officer, | 26 |
| employee, or agent of a savings bank
having custody of | 27 |
| records or examination of records by a certified public
| 28 |
| accountant engaged by the savings bank to perform an | 29 |
| independent audit.
| 30 |
| (2) The examination of any financial records by, or the | 31 |
| furnishing of
financial records by a savings bank to, any | 32 |
| officer, employee, or agent of
the Commissioner of Banks | 33 |
| and Real Estate or the federal depository
institution | 34 |
| regulator for use
solely in
the exercise of his duties as | 35 |
| an officer, employee, or agent.
| 36 |
| (3) The publication of data furnished from financial |
|
|
|
HB1301 Engrossed |
- 14 - |
LRB094 03887 AMC 33898 b |
|
| 1 |
| records relating
to members or holders of capital where the | 2 |
| data cannot be identified to any
particular member, | 3 |
| shareholder, or account.
| 4 |
| (4) The making of reports or returns required under | 5 |
| Chapter 61 of the
Internal Revenue Code of 1986.
| 6 |
| (5) Furnishing information concerning the dishonor of | 7 |
| any negotiable
instrument permitted to be disclosed under | 8 |
| the Uniform Commercial Code.
| 9 |
| (6) The exchange in the regular course of business of | 10 |
| (i) credit
information between a savings bank and other | 11 |
| savings banks or financial
institutions or commercial | 12 |
| enterprises, directly or through a consumer
reporting | 13 |
| agency
or (ii) financial records or information derived | 14 |
| from financial records
between a savings bank and other | 15 |
| savings banks or financial institutions or
commercial | 16 |
| enterprises for the purpose of conducting due diligence | 17 |
| pursuant to
a purchase or sale involving the savings bank | 18 |
| or assets or liabilities of the
savings bank.
| 19 |
| (7) The furnishing of information to the appropriate | 20 |
| law enforcement
authorities where the savings bank | 21 |
| reasonably believes it has been the
victim of a crime.
| 22 |
| (8) The furnishing of information pursuant to the | 23 |
| Uniform Disposition
of Unclaimed Property Act.
| 24 |
| (9) The furnishing of information pursuant to the | 25 |
| Illinois Income Tax
Act
and the Illinois Estate and | 26 |
| Generation-Skipping Transfer Tax Act.
| 27 |
| (10) The furnishing of information pursuant to the | 28 |
| federal "Currency
and Foreign Transactions Reporting Act", | 29 |
| (Title 31, United States Code,
Section 1051 et seq.).
| 30 |
| (11) The furnishing of information pursuant to any | 31 |
| other statute which
by its terms or by regulations | 32 |
| promulgated thereunder requires the
disclosure of | 33 |
| financial records other than by subpoena, summons, | 34 |
| warrant, or
court order.
| 35 |
| (12) The furnishing of information in accordance with | 36 |
| the federal
Personal Responsibility and Work Opportunity |
|
|
|
HB1301 Engrossed |
- 15 - |
LRB094 03887 AMC 33898 b |
|
| 1 |
| Reconciliation Act of 1996.
Any savings bank governed by | 2 |
| this Act shall enter into an agreement for data
exchanges | 3 |
| with a State agency provided the State agency
pays to the | 4 |
| savings bank a reasonable fee not to exceed its
actual cost | 5 |
| incurred. A savings bank
providing
information in | 6 |
| accordance with this item shall not be liable to any | 7 |
| account
holder or other person for any disclosure of | 8 |
| information to a State agency, for
encumbering or | 9 |
| surrendering any assets held by the savings bank in | 10 |
| response to
a lien
or order to withhold and deliver issued | 11 |
| by a State agency, or for any other
action taken pursuant | 12 |
| to this item, including individual or mechanical errors,
| 13 |
| provided the action does not constitute gross negligence or | 14 |
| willful misconduct.
A savings bank shall have no obligation | 15 |
| to hold, encumber, or surrender
assets until
it has been | 16 |
| served with a subpoena, summons, warrant, court or | 17 |
| administrative
order,
lien, or levy.
| 18 |
| (13) The furnishing of information to law enforcement | 19 |
| authorities, the
Illinois Department on
Aging and its | 20 |
| regional administrative and provider agencies, the | 21 |
| Department of
Human Services Office
of Inspector General, | 22 |
| or public guardians, if there is suspicion by the | 23 |
| investigatory entity, the guardian, or the savings bank | 24 |
| suspects that a
customer who is an elderly
or disabled | 25 |
| person has been or may become the victim of financial | 26 |
| exploitation.
For the purposes of this
item (13), the term: | 27 |
| (i) "elderly person" means a person who is 60 or more
years | 28 |
| of age, (ii) "disabled
person" means a person who has or | 29 |
| reasonably appears to the savings bank to
have a physical | 30 |
| or mental
disability that impairs his or her ability to | 31 |
| seek or obtain protection from or
prevent financial
| 32 |
| exploitation, and (iii) "financial exploitation" means | 33 |
| tortious or illegal use
of the assets or resources of
an | 34 |
| elderly or disabled person, and includes, without | 35 |
| limitation,
misappropriation of the elderly or
disabled | 36 |
| person's assets or resources by undue influence, breach of |
|
|
|
HB1301 Engrossed |
- 16 - |
LRB094 03887 AMC 33898 b |
|
| 1 |
| fiduciary
relationship, intimidation,
fraud, deception, | 2 |
| extortion, or the use of assets or resources in any manner
| 3 |
| contrary to law. A savings
bank or person furnishing | 4 |
| information pursuant to this item (13) shall be
entitled to | 5 |
| the same rights and
protections as a person furnishing | 6 |
| information under the Elder Abuse and
Neglect Act ,
and the | 7 |
| Illinois
Domestic Violence Act of 1986 , and the Abuse of | 8 |
| Adults with Disabilities Intervention Act .
| 9 |
| (14) The disclosure of financial records or | 10 |
| information as necessary to
effect, administer, or enforce | 11 |
| a transaction requested or authorized by the
member or | 12 |
| holder of capital, or in connection with:
| 13 |
| (A) servicing or processing a financial product or | 14 |
| service requested or
authorized by the member or holder | 15 |
| of capital;
| 16 |
| (B) maintaining or servicing an account of a member | 17 |
| or holder of capital
with the savings bank; or
| 18 |
| (C) a proposed or actual securitization or | 19 |
| secondary market sale
(including sales of servicing | 20 |
| rights) related to a
transaction of a member or holder | 21 |
| of capital.
| 22 |
| Nothing in this item (14), however, authorizes the sale | 23 |
| of the financial
records or information of a member or | 24 |
| holder of capital without the consent of
the member or | 25 |
| holder of capital.
| 26 |
| (15) The exchange in the regular course of business of | 27 |
| information between
a
savings bank and any commonly owned | 28 |
| affiliate of the savings bank, subject to
the provisions of | 29 |
| the Financial Institutions Insurance Sales Law.
| 30 |
| (16) The disclosure of financial records or | 31 |
| information as necessary to
protect against or prevent | 32 |
| actual or potential fraud, unauthorized
transactions, | 33 |
| claims, or other liability.
| 34 |
| (17) (a) The disclosure of financial records or | 35 |
| information
related to a private label credit program | 36 |
| between a financial
institution and a private label party |
|
|
|
HB1301 Engrossed |
- 17 - |
LRB094 03887 AMC 33898 b |
|
| 1 |
| in connection
with that private label credit program. Such | 2 |
| information
is limited to outstanding balance, available | 3 |
| credit, payment and
performance and account history, | 4 |
| product references, purchase
information,
and information | 5 |
| related to the identity of the
customer.
| 6 |
| (b) (l) For purposes of this paragraph (17) of | 7 |
| subsection
(c) of Section 4013, a "private label credit | 8 |
| program" means a
credit program involving a financial | 9 |
| institution and a private label
party that is used by a | 10 |
| customer of the financial institution and the
private label | 11 |
| party primarily for payment for goods or services
sold, | 12 |
| manufactured, or distributed by a private label party.
| 13 |
| (2) For purposes of this paragraph (17) of subsection | 14 |
| (c)
of Section 4013, a "private label party" means, with | 15 |
| respect to a
private label credit program, any of the | 16 |
| following: a
retailer, a merchant, a manufacturer, a trade | 17 |
| group,
or any such person's affiliate, subsidiary, member,
| 18 |
| agent, or service provider.
| 19 |
| (d) A savings bank may not disclose to any person, except | 20 |
| to the member
or holder of capital or his duly authorized | 21 |
| agent, any financial records
relating to that member or | 22 |
| shareholder of the savings bank unless:
| 23 |
| (1) the member or shareholder has authorized | 24 |
| disclosure to the person; or
| 25 |
| (2) the financial records are disclosed in response to | 26 |
| a lawful
subpoena, summons, warrant, or court order that | 27 |
| meets the requirements of
subsection (e) of this Section.
| 28 |
| (e) A savings bank shall disclose financial records under | 29 |
| subsection (d)
of this Section pursuant to a lawful subpoena, | 30 |
| summons, warrant, or court
order only after the savings bank | 31 |
| mails a copy of the subpoena, summons,
warrant, or court order | 32 |
| to the person establishing the relationship with
the savings | 33 |
| bank, if living, and otherwise, his personal representative, if
| 34 |
| known, at his last known address by first class mail, postage | 35 |
| prepaid,
unless the savings bank is specifically prohibited | 36 |
| from notifying the
person by order of court.
|
|
|
|
HB1301 Engrossed |
- 18 - |
LRB094 03887 AMC 33898 b |
|
| 1 |
| (f) Any officer or employee of a savings bank who knowingly | 2 |
| and
willfully furnishes financial records in violation of this | 3 |
| Section is
guilty of a business offense and, upon conviction, | 4 |
| shall be fined not
more than $1,000.
| 5 |
| (g) Any person who knowingly and willfully induces or | 6 |
| attempts to
induce any officer or employee of a savings bank to | 7 |
| disclose financial
records in violation of this Section is | 8 |
| guilty of a business offense and,
upon conviction, shall be | 9 |
| fined not more than $1,000.
| 10 |
| (h) If any member or shareholder desires to communicate | 11 |
| with the other
members or shareholders of the savings bank with | 12 |
| reference to any question
pending or to be presented at an | 13 |
| annual or special meeting, the savings
bank shall give that | 14 |
| person, upon request, a statement of the approximate
number of | 15 |
| members or shareholders entitled to vote at the meeting and an
| 16 |
| estimate of the cost of preparing and mailing the | 17 |
| communication. The
requesting member shall submit the | 18 |
| communication to the Commissioner
who, upon finding it to be | 19 |
| appropriate and truthful, shall direct that it
be prepared and | 20 |
| mailed to the members upon the requesting member's or
| 21 |
| shareholder's payment or adequate provision for payment of the | 22 |
| expenses of
preparation and mailing.
| 23 |
| (i) A savings bank shall be reimbursed for costs that are | 24 |
| necessary and
that have been directly incurred in searching | 25 |
| for, reproducing, or
transporting books, papers, records, or | 26 |
| other data of a customer required
to be reproduced pursuant to | 27 |
| a lawful subpoena, warrant, or court order.
| 28 |
| (j) Notwithstanding the provisions of this Section, a | 29 |
| savings bank may
sell or otherwise make use of lists of | 30 |
| customers' names and addresses. All
other information | 31 |
| regarding a customer's account are subject to the
disclosure | 32 |
| provisions of this Section. At the request of any customer,
| 33 |
| that customer's name and address shall be deleted from any list | 34 |
| that is to
be sold or used in any other manner beyond | 35 |
| identification of the customer's
accounts.
| 36 |
| (Source: P.A. 92-483, eff. 8-23-01; 92-543, eff.
6-12-02; |
|
|
|
HB1301 Engrossed |
- 19 - |
LRB094 03887 AMC 33898 b |
|
| 1 |
| 93-271, eff. 7-22-03.)
| 2 |
| Section 20. The Illinois Credit Union Act is amended by | 3 |
| changing Section 10 as follows:
| 4 |
| (205 ILCS 305/10) (from Ch. 17, par. 4411)
| 5 |
| Sec. 10. Credit union records; member financial records.
| 6 |
| (1) A credit union shall establish and maintain books, | 7 |
| records, accounting
systems and procedures which accurately | 8 |
| reflect its operations and which
enable the Department to | 9 |
| readily ascertain the true financial condition
of the credit | 10 |
| union and whether it is complying with this Act.
| 11 |
| (2) A photostatic or photographic reproduction of any | 12 |
| credit union records
shall be admissible as evidence of | 13 |
| transactions with the credit union.
| 14 |
| (3) (a) For the purpose of this Section, the term | 15 |
| "financial records"
means any original, any copy, or any | 16 |
| summary of (1) a document granting
signature authority over | 17 |
| an account, (2) a statement, ledger card or other
record on | 18 |
| any account which shows each transaction in or with respect | 19 |
| to
that account, (3) a check, draft or money order drawn on | 20 |
| a financial
institution or other entity or issued and | 21 |
| payable by or through a financial
institution or other | 22 |
| entity, or (4) any other item containing information
| 23 |
| pertaining to any relationship established in the ordinary | 24 |
| course of
business between a credit union and its member, | 25 |
| including financial
statements or other financial | 26 |
| information provided by the member.
| 27 |
| (b) This Section does not prohibit:
| 28 |
| (1) The preparation, examination, handling or | 29 |
| maintenance of any
financial records by any officer, | 30 |
| employee or agent of a credit union
having custody of | 31 |
| such records, or the examination of such records by a
| 32 |
| certified public accountant engaged by the credit | 33 |
| union to perform an
independent audit.
| 34 |
| (2) The examination of any financial records by or |
|
|
|
HB1301 Engrossed |
- 20 - |
LRB094 03887 AMC 33898 b |
|
| 1 |
| the furnishing of
financial records by a credit union | 2 |
| to any officer, employee or agent of
the Department, | 3 |
| the National Credit Union Administration, Federal | 4 |
| Reserve
board or any insurer of share accounts for use | 5 |
| solely in the exercise of
his duties as an officer, | 6 |
| employee or agent.
| 7 |
| (3) The publication of data furnished from | 8 |
| financial records relating
to members where the data | 9 |
| cannot be identified to any particular customer
of | 10 |
| account.
| 11 |
| (4) The making of reports or returns required under | 12 |
| Chapter 61 of the
Internal Revenue Code of 1954.
| 13 |
| (5) Furnishing information concerning the dishonor | 14 |
| of any negotiable
instrument permitted to be disclosed | 15 |
| under the Uniform Commercial
Code.
| 16 |
| (6) The exchange in the regular course of business
| 17 |
| of (i) credit information
between a credit union and | 18 |
| other credit unions or financial institutions
or | 19 |
| commercial enterprises, directly or through a consumer | 20 |
| reporting agency
or (ii) financial records or | 21 |
| information derived from financial records
between a | 22 |
| credit union and other credit unions or financial | 23 |
| institutions or
commercial enterprises for
the purpose | 24 |
| of conducting due diligence pursuant to a merger or a | 25 |
| purchase or
sale of assets or liabilities of the credit | 26 |
| union.
| 27 |
| (7) The furnishing of information to the | 28 |
| appropriate law enforcement
authorities where the | 29 |
| credit union reasonably believes it has been the victim
| 30 |
| of a crime.
| 31 |
| (8) The furnishing of information pursuant to the | 32 |
| Uniform Disposition
of Unclaimed Property Act.
| 33 |
| (9) The furnishing of information pursuant to the | 34 |
| Illinois Income Tax
Act and the Illinois Estate and | 35 |
| Generation-Skipping Transfer Tax Act.
| 36 |
| (10) The furnishing of information pursuant to the |
|
|
|
HB1301 Engrossed |
- 21 - |
LRB094 03887 AMC 33898 b |
|
| 1 |
| federal "Currency
and Foreign Transactions Reporting | 2 |
| Act", Title 31, United States Code,
Section 1051 et | 3 |
| sequentia.
| 4 |
| (11) The furnishing of information pursuant to any | 5 |
| other statute which
by its terms or by regulations | 6 |
| promulgated thereunder requires the disclosure
of | 7 |
| financial records other than by subpoena, summons, | 8 |
| warrant or court order.
| 9 |
| (12) The furnishing of information in accordance | 10 |
| with the federal
Personal Responsibility and Work | 11 |
| Opportunity Reconciliation Act of 1996.
Any credit | 12 |
| union governed by this Act shall enter into an | 13 |
| agreement for data
exchanges with a State agency | 14 |
| provided the State agency
pays to the credit union a | 15 |
| reasonable fee not to exceed its
actual cost incurred. | 16 |
| A credit union
providing
information in accordance | 17 |
| with this item shall not be liable to any account
| 18 |
| holder or other person for any disclosure of | 19 |
| information to a State agency, for
encumbering or | 20 |
| surrendering any assets held by the credit union in | 21 |
| response to
a lien
or order to withhold and deliver | 22 |
| issued by a State agency, or for any other
action taken | 23 |
| pursuant to this item, including individual or | 24 |
| mechanical errors,
provided the action does not | 25 |
| constitute gross negligence or willful misconduct.
A | 26 |
| credit union shall have no obligation to hold, | 27 |
| encumber, or surrender
assets until
it has been served | 28 |
| with a subpoena, summons, warrant, court or | 29 |
| administrative
order, lien, or levy.
| 30 |
| (13) The furnishing of information to law | 31 |
| enforcement authorities, the
Illinois Department on
| 32 |
| Aging and its regional administrative and provider | 33 |
| agencies, the Department of
Human Services Office
of | 34 |
| Inspector General, or public guardians, if there is | 35 |
| suspicion by the investigatory entity, the guardian, | 36 |
| or the credit union suspects that a
member who is an |
|
|
|
HB1301 Engrossed |
- 22 - |
LRB094 03887 AMC 33898 b |
|
| 1 |
| elderly or
disabled person has been or may become the | 2 |
| victim of financial exploitation.
For the purposes of | 3 |
| this
item (13), the term: (i) "elderly person" means a | 4 |
| person who is 60 or more
years of age, (ii) "disabled
| 5 |
| person" means a person who has or reasonably appears to | 6 |
| the credit union to
have a physical or mental
| 7 |
| disability that impairs his or her ability to seek or | 8 |
| obtain protection from or
prevent financial
| 9 |
| exploitation, and (iii) "financial exploitation" means | 10 |
| tortious or illegal use
of the assets or resources of
| 11 |
| an elderly or disabled person, and includes, without | 12 |
| limitation,
misappropriation of the elderly or
| 13 |
| disabled person's assets or resources by undue | 14 |
| influence, breach of fiduciary
relationship, | 15 |
| intimidation,
fraud, deception, extortion, or the use | 16 |
| of assets or resources in any manner
contrary to law. A | 17 |
| credit
union or person furnishing information pursuant | 18 |
| to this item (13) shall be
entitled to the same rights | 19 |
| and
protections as a person furnishing information | 20 |
| under the Elder Abuse and
Neglect Act ,
and the Illinois
| 21 |
| Domestic Violence Act of 1986 , and the Abuse of Adults | 22 |
| with Disabilities Intervention Act .
| 23 |
| (14) The disclosure of financial records or | 24 |
| information as necessary
to
effect, administer, or | 25 |
| enforce a transaction requested or authorized by the
| 26 |
| member, or in connection with:
| 27 |
| (A) servicing or processing a financial | 28 |
| product or service requested
or
authorized by the | 29 |
| member;
| 30 |
| (B) maintaining or servicing a member's | 31 |
| account with the credit union;
or
| 32 |
| (C) a proposed or actual securitization or | 33 |
| secondary market sale
(including sales of | 34 |
| servicing rights) related to a
transaction of a | 35 |
| member.
| 36 |
| Nothing in this item (14), however, authorizes the |
|
|
|
HB1301 Engrossed |
- 23 - |
LRB094 03887 AMC 33898 b |
|
| 1 |
| sale of the financial
records or information of a | 2 |
| member without the consent of the member.
| 3 |
| (15) The disclosure of financial records or | 4 |
| information as necessary to
protect against or prevent | 5 |
| actual or potential fraud, unauthorized
transactions, | 6 |
| claims, or other liability.
| 7 |
| (16) (a) The disclosure of financial records or | 8 |
| information
related to a private label credit program | 9 |
| between a financial
institution and a private label | 10 |
| party in connection
with that private label credit | 11 |
| program. Such information
is limited to outstanding | 12 |
| balance, available credit, payment and
performance and | 13 |
| account history, product references, purchase
| 14 |
| information,
and information related to the identity | 15 |
| of the
customer.
| 16 |
| (b) (l) For purposes of this paragraph (16) of | 17 |
| subsection
(b) of Section 10, a "private label credit | 18 |
| program" means a credit
program involving a financial | 19 |
| institution and a private label party
that is used by a | 20 |
| customer of the financial institution and the
private | 21 |
| label party primarily for payment for goods or services
| 22 |
| sold, manufactured, or distributed by a private label | 23 |
| party.
| 24 |
| (2) For purposes of this paragraph (16) of | 25 |
| subsection (b)
of Section 10, a "private label party" | 26 |
| means, with respect to a
private label credit program, | 27 |
| any of the following: a
retailer, a merchant, a | 28 |
| manufacturer, a trade group,
or any such person's | 29 |
| affiliate, subsidiary, member,
agent, or service | 30 |
| provider.
| 31 |
| (c) Except as otherwise provided by this Act, a credit | 32 |
| union may not
disclose to any person, except to the member
| 33 |
| or his duly authorized agent, any financial records | 34 |
| relating to that member
of the credit union unless:
| 35 |
| (1) the member has authorized disclosure to the | 36 |
| person;
|
|
|
|
HB1301 Engrossed |
- 24 - |
LRB094 03887 AMC 33898 b |
|
| 1 |
| (2) the financial records are disclosed in | 2 |
| response to a lawful
subpoena,
summons, warrant or | 3 |
| court order that meets the requirements of | 4 |
| subparagraph
(d) of this Section; or
| 5 |
| (3) the credit union is attempting to collect an | 6 |
| obligation owed to
the credit union and the credit | 7 |
| union complies with the provisions of
Section 2I of the | 8 |
| Consumer Fraud and Deceptive Business Practices Act.
| 9 |
| (d) A credit union shall disclose financial records | 10 |
| under subparagraph
(c)(2) of this Section pursuant to a | 11 |
| lawful subpoena, summons, warrant or
court order only after | 12 |
| the credit union mails a copy of the subpoena, summons,
| 13 |
| warrant or court order to the person establishing the | 14 |
| relationship with
the credit union, if living, and | 15 |
| otherwise his personal representative,
if known, at his | 16 |
| last known address by first class mail, postage prepaid
| 17 |
| unless the credit union is specifically prohibited from | 18 |
| notifying the person
by order of court or by applicable | 19 |
| State or federal law. In the case
of a grand jury subpoena, | 20 |
| a credit union shall not mail a copy of a subpoena
to any | 21 |
| person pursuant to this subsection if the subpoena was | 22 |
| issued by a grand
jury under the Statewide Grand Jury Act | 23 |
| or notifying the
person would constitute a violation of the | 24 |
| 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 | 28 |
| offense and upon conviction thereof shall be fined not | 29 |
| more than
$1,000.
| 30 |
| (2) Any person who knowingly and wilfully induces | 31 |
| or attempts to induce
any officer or employee of a | 32 |
| credit union to disclose financial records
in | 33 |
| violation of this Section is guilty of a business | 34 |
| offense and upon
conviction thereof shall be fined not | 35 |
| more than $1,000.
| 36 |
| (f) A credit union shall be reimbursed for costs which |
|
|
|
HB1301 Engrossed |
- 25 - |
LRB094 03887 AMC 33898 b |
|
| 1 |
| are reasonably
necessary and which have been directly | 2 |
| incurred in searching for,
reproducing or transporting | 3 |
| books, papers, records or other data of a
member required | 4 |
| or requested to be produced pursuant to a lawful subpoena,
| 5 |
| summons, warrant or court order. The Director may | 6 |
| determine, by rule, the
rates and
conditions under which | 7 |
| payment shall be made. Delivery of requested documents
may | 8 |
| be delayed until final reimbursement of all costs is | 9 |
| received.
| 10 |
| (Source: P.A. 91-929, eff. 12-15-00; 92-293, eff. 8-9-01; | 11 |
| 92-483, eff.
8-23-01; 92-543, eff. 6-12-02.)
| 12 |
| Section 99. Effective date. This Act takes effect upon | 13 |
| becoming law.
|
|