Full Text of SB0228 95th General Assembly
SB0228 95TH GENERAL ASSEMBLY
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95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008 SB0228
Introduced 2/7/2007, by Sen. Ira I. Silverstein SYNOPSIS AS INTRODUCED: |
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205 ILCS 105/3-8 |
from Ch. 17, par. 3303-8 |
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Amends the Illinois Savings and Loan Act of 1985. Provides that an association may not disclose to any person, except to the
member or holder of capital or his or her duly authorized agent, any financial
records relating to that member or holder of capital of that association
unless the financial records are disclosed in response to a lawful
subpoena, summons, warrant, citation to discover assets, or court order that meets the
requirements of specified criteria (now, a disclosure may only be made in response to a lawful subpoena, summons, warrant, or court order). Makes corresponding changes in provisions concerning disclosure procedures and the reimbursement of costs associated with disclosure compliance.
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A BILL FOR
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SB0228 |
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| AN ACT concerning regulation.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Illinois Savings and Loan Act of 1985 is | 5 |
| amended by changing Section 3-8 as follows:
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| (205 ILCS 105/3-8) (from Ch. 17, par. 3303-8)
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| Sec. 3-8. Access to books and records; communication with | 8 |
| members.
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| (a) Every member or holder of capital shall have the right | 10 |
| to inspect
the books and records of the association that | 11 |
| pertain to his account.
Otherwise, the right of inspection and | 12 |
| examination of the books and
records shall be limited as | 13 |
| provided in this Act, and no other person
shall have access to | 14 |
| the books and records or shall be entitled to a
list of the | 15 |
| members.
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| (b) For the purpose of this Section, the term "financial | 17 |
| records"
means any original, any copy, or any summary of (i) a | 18 |
| document granting
signature authority over a deposit or | 19 |
| account; (ii) a statement, ledger
card, or other record on any | 20 |
| deposit or account that
shows each transaction in or with | 21 |
| respect to that account; (iii) a check,
draft, or money order | 22 |
| drawn on an association or issued and payable by
an | 23 |
| association; or (iv) any other item containing information |
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| pertaining to
any relationship established in the ordinary | 2 |
| course of an association's
business between an association and | 3 |
| its customer, including financial
statements or other | 4 |
| financial information provided by the member or holder of
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| capital.
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| (c) This Section does not prohibit:
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| (1) The preparation, examination, handling, or | 8 |
| maintenance of any
financial records by any officer, | 9 |
| employee, or agent of an association having
custody of | 10 |
| those records or the examination of those records by a | 11 |
| certified
public accountant engaged by the association to | 12 |
| perform an independent
audit.
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| (2) The examination of any financial records by, or the | 14 |
| furnishing of
financial records by an association to, any | 15 |
| officer, employee, or agent of the
Commissioner of Banks | 16 |
| and Real Estate or federal depository institution
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| regulator for use solely in the exercise
of
his duties as | 18 |
| an officer, employee, or agent.
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| (3) The publication of data furnished from financial | 20 |
| records
relating to members or holders of capital where the | 21 |
| data cannot be
identified to any particular member, holder | 22 |
| of capital, or account.
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| (4) The making of reports or returns required under | 24 |
| Chapter 61 of
the Internal Revenue Code of 1986.
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| (5) Furnishing information concerning the dishonor of | 26 |
| any negotiable
instrument permitted to be disclosed under |
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| the Uniform Commercial
Code.
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| (6) The exchange in the regular course of business of | 3 |
| (i) credit
information between an association and other | 4 |
| associations or financial
institutions or commercial | 5 |
| enterprises, directly or through a consumer
reporting | 6 |
| agency
or (ii) financial records or information derived | 7 |
| from financial records
between an association and other | 8 |
| associations or financial institutions or
commercial | 9 |
| enterprises for the purpose of conducting due diligence | 10 |
| pursuant to
a purchase or sale involving the association or | 11 |
| assets or liabilities of the
association.
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| (7) The furnishing of information to the appropriate | 13 |
| law enforcement
authorities where the association | 14 |
| reasonably believes it has been the
victim of a crime.
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| (8) The furnishing of information pursuant to the | 16 |
| Uniform Disposition
of Unclaimed Property Act.
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| (9) The furnishing of information pursuant to the | 18 |
| Illinois Income Tax
Act and the Illinois Estate and | 19 |
| Generation-Skipping Transfer Tax Act.
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| (10) The furnishing of information pursuant to the | 21 |
| federal "Currency
and Foreign Transactions Reporting Act", | 22 |
| (Title 31, United States
Code, Section 1051 et seq.).
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| (11) The furnishing of information pursuant to any | 24 |
| other statute that
by its terms or by regulations | 25 |
| promulgated thereunder requires the disclosure
of | 26 |
| financial records other than by subpoena, summons, |
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| warrant, or court
order.
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| (12) The exchange of information between an | 3 |
| association and an affiliate
of the association; as used in | 4 |
| this item, "affiliate" includes any
company, partnership, | 5 |
| or organization that controls, is controlled by, or is
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| under common control with an association.
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| (13) The furnishing of information
in accordance with | 8 |
| the federal Personal Responsibility and Work Opportunity
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| Reconciliation Act of 1996. Any association governed by | 10 |
| this Act shall enter
into an agreement for data
exchanges | 11 |
| with a State agency provided the State agency
pays to the | 12 |
| association a reasonable fee not to exceed its
actual cost | 13 |
| incurred. An association
providing
information in | 14 |
| accordance with this item shall not be liable to any | 15 |
| account
holder or other person for any disclosure of | 16 |
| information to a State agency, for
encumbering or | 17 |
| surrendering any assets held by the association in response | 18 |
| to a
lien
or order to withhold and deliver issued by a | 19 |
| State agency, or for any other
action taken pursuant to | 20 |
| this item, including individual or mechanical errors,
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| provided the action does not constitute gross negligence or | 22 |
| willful misconduct.
An association shall have no | 23 |
| obligation to hold, encumber, or surrender assets
until it | 24 |
| has been served with a subpoena, summons, warrant, court or
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| administrative order, lien, or levy.
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| (14) The furnishing of information to law enforcement |
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| authorities, the
Illinois Department on
Aging and its | 2 |
| regional administrative and provider agencies, the | 3 |
| Department of
Human Services Office
of Inspector General, | 4 |
| or public guardians: (i) upon subpoena by the investigatory | 5 |
| entity or the guardian, or (ii) if there is suspicion by | 6 |
| the association that a
customer who is an elderly or
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| disabled person has been or may become the victim of | 8 |
| financial exploitation.
For the purposes of this
item (14), | 9 |
| the term: (i) "elderly person" means a person who is 60 or | 10 |
| more
years of age, (ii) "disabled
person" means a person | 11 |
| who has or reasonably appears to the association to have
a | 12 |
| physical or mental
disability that impairs his or her | 13 |
| ability to seek or obtain protection from or
prevent | 14 |
| financial
exploitation, and (iii) "financial exploitation" | 15 |
| means tortious or illegal use
of the assets or resources of
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| an elderly or disabled person, and includes, without | 17 |
| limitation,
misappropriation of the elderly or
disabled | 18 |
| person's assets or resources by undue influence, breach of | 19 |
| fiduciary
relationship, intimidation,
fraud, deception, | 20 |
| extortion, or the use of assets or resources in any manner
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| contrary to law. An
association or person furnishing | 22 |
| information pursuant to this item (14) shall
be entitled to | 23 |
| the same
rights and protections as a person furnishing | 24 |
| information under the Elder Abuse
and Neglect Act, the
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| Illinois Domestic Violence Act of 1986, and the Abuse of | 26 |
| Adults with Disabilities Intervention Act.
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| (15) The disclosure of financial records or | 2 |
| information as necessary to
effect, administer, or enforce | 3 |
| a transaction requested or authorized by the
member or | 4 |
| holder of capital, or in connection with:
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| (A) servicing or processing a financial product or | 6 |
| service requested or
authorized by the member or holder | 7 |
| of capital;
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| (B) maintaining or servicing an account of a member | 9 |
| or holder of capital
with the association; or
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| (C) a proposed or actual securitization or | 11 |
| secondary market sale
(including
sales of servicing | 12 |
| rights) related to a transaction of
a member or holder | 13 |
| of capital.
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| Nothing in this item (15), however, authorizes the sale | 15 |
| of the financial
records or information of a member or | 16 |
| holder of capital without the consent of
the member or | 17 |
| holder of capital.
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| (16) The disclosure of financial records or | 19 |
| information as necessary to
protect against or prevent | 20 |
| actual or potential fraud, unauthorized
transactions, | 21 |
| claims, or other liability.
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| (17)(a) The disclosure of financial records or | 23 |
| information
related to a private label credit program | 24 |
| between a financial
institution and a private label party | 25 |
| in connection
with that private label credit program. Such | 26 |
| information
is limited to outstanding balance, available |
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| credit, payment and
performance and account history, | 2 |
| product references, purchase
information,
and information | 3 |
| related to the identity of the
customer.
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| (b)(l) For purposes of this paragraph (17) of | 5 |
| subsection
(c) of Section 3-8, a "private label credit | 6 |
| program" means a
credit program involving a financial | 7 |
| institution and a private label
party that is used by a | 8 |
| customer of the financial institution and the
private label | 9 |
| party primarily for payment for goods or services
sold, | 10 |
| manufactured, or distributed by a private label party.
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| (2) For purposes of this paragraph (17) of subsection | 12 |
| (c)
of Section 3-8, a "private label party" means, with | 13 |
| respect to a
private label credit program, any of the | 14 |
| following: a
retailer, a merchant, a manufacturer, a trade | 15 |
| group,
or any such person's affiliate, subsidiary, member,
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| agent, or service provider.
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| (d) An association may not disclose to any person, except | 18 |
| to the
member or holder of capital or his duly authorized | 19 |
| agent, any financial
records relating to that member or holder | 20 |
| of capital of that association
unless:
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| (1) The member or holder of capital has authorized | 22 |
| disclosure to the
person; or
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| (2) The financial records are disclosed in response to | 24 |
| a lawful
subpoena, summons, warrant, citation to discover | 25 |
| assets, or court order that meets the
requirements of | 26 |
| subsection (e) of this Section.
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| (e) An association shall disclose financial records under | 2 |
| subsection
(d) of this Section pursuant to a lawful subpoena, | 3 |
| summons,
warrant, citation to discover assets, or court order | 4 |
| only after the association mails a copy of the
subpoena, | 5 |
| summons, warrant, or court order to the person establishing
the | 6 |
| relationship with the association, if living, and, otherwise, | 7 |
| his
personal representative, if known, at his last known | 8 |
| address by first class
mail, postage prepaid, unless the | 9 |
| association is specifically prohibited
from notifying that | 10 |
| person by order of court.
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| (f)(1) Any officer or employee of an association who | 12 |
| knowingly and
willfully furnishes financial records in | 13 |
| violation of this Section is
guilty of a business offense and, | 14 |
| upon conviction, shall be fined not
more than $1,000.
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| (2) Any person who knowingly and willfully induces or | 16 |
| attempts to
induce any officer or employee of an association to | 17 |
| disclose financial
records in violation of this Section is | 18 |
| guilty of a business offense
and, upon conviction, shall be | 19 |
| fined not more than $1,000.
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| (g) However, if any member desires to communicate with the | 21 |
| other
members of the association with reference to any question | 22 |
| pending or to
be presented at a meeting of the members, the | 23 |
| association shall give him
upon request a statement of the | 24 |
| approximate number of members entitled
to vote at the meeting | 25 |
| and an estimate of the cost of
preparing and mailing the | 26 |
| communication. The requesting
member then shall submit the |
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| communication to the Commissioner who, if he
finds it to be | 2 |
| appropriate and truthful, shall direct that it be prepared
and | 3 |
| mailed to the members upon the requesting member's payment or
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| adequate provision for payment of the expenses of preparation | 5 |
| and mailing.
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| (h) An association shall be reimbursed for costs that are | 7 |
| necessary and
that have been directly incurred in searching | 8 |
| for, reproducing, or
transporting books, papers, records, or | 9 |
| other data of a customer required
to be reproduced pursuant to | 10 |
| a lawful subpoena, warrant, citation to discover assets, or | 11 |
| court order.
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| (Source: P.A. 93-271, eff. 7-22-03; 94-495, eff. 8-8-05; | 13 |
| 94-851, eff. 6-13-06.)
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