Full Text of SB0510 95th General Assembly
SB0510 95TH GENERAL ASSEMBLY
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95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008 SB0510
Introduced 2/8/2007, by Sen. Terry Link SYNOPSIS AS INTRODUCED: |
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205 ILCS 5/48.3 |
from Ch. 17, par. 360.2 |
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Amends the Illinois Banking Act. Provides that whenever the Commissioner of Banks and Real Estate is authorized to disclose confidential supervisory information under certain provisions, the Commissioner is authorized to redact any document prior to disclosure so that confidential supervisory information that is not relevant for purposes of the authorized disclosure need not be disclosed. Effective immediately.
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A BILL FOR
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SB0510 |
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LRB095 10592 MJR 30814 b |
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| AN ACT concerning regulation.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Illinois Banking Act is amended by changing | 5 |
| Section 48.3 as follows:
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| (205 ILCS 5/48.3) (from Ch. 17, par. 360.2)
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| Sec. 48.3. Disclosure of reports of examinations
and | 8 |
| confidential
supervisory information;
limitations.
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| (a) Any report of examination, visitation, or | 10 |
| investigation prepared by
the Commissioner under this Act, the | 11 |
| Electronic Fund Transfer
Act, the Corporate Fiduciary Act, the
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| Illinois Bank Holding Company Act of 1957, and the Foreign
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| Banking Office Act, any report of examination, visitation, or
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| investigation prepared by the state regulatory
authority of | 15 |
| another state that examines a branch of an Illinois State bank | 16 |
| in
that state, any document or record prepared or obtained in
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| connection with or relating to any
examination, visitation, or | 18 |
| investigation, and any record prepared or
obtained by the | 19 |
| Commissioner to the extent that the record summarizes or
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| contains information derived from any report, document, or | 21 |
| record described
in this subsection shall be deemed | 22 |
| "confidential supervisory information".
Confidential
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| supervisory information shall not include any information or |
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| record
routinely prepared by a bank or other financial | 2 |
| institution and maintained in
the ordinary course of business | 3 |
| or any information or record that is required
to be made | 4 |
| publicly available pursuant to State or federal law or rule.
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| Confidential supervisory information
shall be the property of | 6 |
| the Commissioner and shall only be
disclosed under the | 7 |
| circumstances and for the purposes set forth in this
Section.
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| The Commissioner may
disclose
confidential supervisory | 9 |
| information only under the following circumstances:
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| (1) The Commissioner may furnish confidential | 11 |
| supervisory information
to the Board of Governors of the
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| Federal Reserve System, the federal reserve bank of the | 13 |
| federal reserve
district in which the State bank is located | 14 |
| or in which the parent or other
affiliate of the State bank | 15 |
| is located, any official or examiner
thereof duly | 16 |
| accredited for the purpose, or any other state regulator, | 17 |
| federal
regulator, or in the case of a foreign bank | 18 |
| possessing a certificate of
authority pursuant to the | 19 |
| Foreign Banking Office Act or a license pursuant to
the | 20 |
| Foreign Bank Representative Office Act, the bank regulator | 21 |
| in the country
where the foreign bank is chartered,
that | 22 |
| the Commissioner determines to have an appropriate
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| regulatory interest. Nothing contained in this Act shall be | 24 |
| construed to
limit the obligation of any member State bank | 25 |
| to comply with the
requirements relative to examinations | 26 |
| and reports of the Federal Reserve
Act and of the Board of |
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| Governors of the Federal Reserve System or the
federal | 2 |
| reserve bank of the federal reserve district in which the | 3 |
| bank is
located, nor to limit in any way the powers of the | 4 |
| Commissioner with
reference to examinations and reports.
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| (2) The Commissioner may furnish confidential | 6 |
| supervisory information
to the United States, any agency
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| thereof that has insured a bank's deposits in whole or in | 8 |
| part, or any official
or examiner thereof duly accredited | 9 |
| for the purpose. Nothing contained in this Act shall be
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| construed to limit the obligation relative to examinations | 11 |
| and reports of any
State bank, deposits in which are to any | 12 |
| extent insured by the United States,
any agency thereof, | 13 |
| nor to limit in any way the powers of the Commissioner with
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| reference to examination and reports of such bank.
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| (3) The Commissioner may furnish
confidential | 16 |
| supervisory
information
to the appropriate law
enforcement | 17 |
| authorities when the Commissioner reasonably believes a
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| bank, which
the Commissioner has
caused to be examined, has | 19 |
| been a victim of a crime.
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| (4) The Commissioner may furnish confidential | 21 |
| supervisory information
relating to a bank or other
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| financial institution, which the Commissioner has caused | 23 |
| to be
examined, to be sent to the
administrator of the | 24 |
| Uniform Disposition of Unclaimed Property Act.
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| (5) The Commissioner may furnish
confidential | 26 |
| supervisory
information relating to a bank or other
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| financial institution, which
the Commissioner has caused | 2 |
| to be examined, relating to its
performance of obligations | 3 |
| under the Illinois Income Tax Act and the
Illinois Estate | 4 |
| and Generation-Skipping Transfer Tax Act to the Illinois
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| Department of Revenue.
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| (6) The Commissioner may furnish
confidential | 7 |
| supervisory
information relating to a bank or other
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| financial institution, which
the Commissioner has caused | 9 |
| to be examined, under the
federal Currency and Foreign | 10 |
| Transactions Reporting Act,
Title 31, United States Code, | 11 |
| Section 1051 et seq.
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| (6.5) The Commissioner may furnish
confidential | 13 |
| supervisory
information to any other agency or entity that | 14 |
| the Commissioner determines
to
have a legitimate | 15 |
| regulatory interest.
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| (7) The Commissioner may furnish
confidential | 17 |
| supervisory
information under any other
statute that by its | 18 |
| terms or by regulations promulgated thereunder
requires | 19 |
| the disclosure of financial records other than by subpoena,
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| summons, warrant, or court order.
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| (8) At the request of the affected bank or other | 22 |
| financial institution,
the Commissioner may furnish
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| confidential supervisory
information relating to a bank or | 24 |
| other financial
institution, which
the Commissioner has | 25 |
| caused to be examined, in connection with the
obtaining of | 26 |
| insurance coverage or the pursuit of an insurance claim for |
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| or on
behalf of the bank or other financial institution; | 2 |
| provided that, when
possible, the Commissioner shall | 3 |
| disclose only relevant information while
maintaining the | 4 |
| confidentiality of financial records not relevant to such
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| insurance coverage or claim and, when appropriate, may | 6 |
| delete identifying data
relating to any person or | 7 |
| individual.
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| (9) The Commissioner may furnish a copy of a report of | 9 |
| any examination
performed by the Commissioner of the | 10 |
| condition and affairs of any
electronic data processing | 11 |
| entity to the banks serviced by the electronic
data | 12 |
| processing entity.
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| (10) In addition to the foregoing circumstances, the | 14 |
| Commissioner may,
but is not required to, furnish
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| confidential supervisory information under the same | 16 |
| circumstances authorized for
the bank or financial
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| institution pursuant to subsection
(b) of this Section, | 18 |
| except that the Commissioner shall provide
confidential | 19 |
| supervisory information under circumstances described in | 20 |
| paragraph (3) of
subsection (b) of this Section only upon | 21 |
| the request of the bank or other
financial institution. | 22 |
| (11) Whenever the Commissioner is authorized to | 23 |
| disclose confidential supervisory information under this | 24 |
| Section, the Commissioner is authorized to redact any | 25 |
| document prior to disclosure so that confidential | 26 |
| supervisory information that is not relevant for purposes |
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| of the authorized disclosure need not be disclosed.
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| (b) A bank or other financial institution or its officers, | 3 |
| agents, and
employees may disclose
confidential supervisory | 4 |
| information only under the
following circumstances:
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| (1) to the board of directors of the bank or other | 6 |
| financial institution,
as well as the president, | 7 |
| vice-president, cashier, and other officers of the
bank or | 8 |
| other financial institution to whom the board of directors | 9 |
| may delegate
duties with respect to compliance with | 10 |
| recommendations for action, and to the board of directors | 11 |
| of a bank holding company that owns at
least 80% of the | 12 |
| outstanding stock of the bank or other financial | 13 |
| institution;
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| (2) to attorneys for the bank or other financial | 15 |
| institution and to a
certified public accountant engaged by | 16 |
| the State bank or financial
institution to perform an | 17 |
| independent audit provided that the attorney or
certified | 18 |
| public accountant shall not permit the
confidential | 19 |
| supervisory
information to be further disseminated;
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| (3) to any person who seeks to acquire a controlling | 21 |
| interest in, or who
seeks to merge with, the
bank or | 22 |
| financial institution, provided that all attorneys, | 23 |
| certified public
accountants, officers, agents, or | 24 |
| employees of that person shall agree to be
bound to respect | 25 |
| the confidentiality of the
confidential supervisory
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| information and to not further disseminate the information |
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| therein contained;
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| (4) (blank); or
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| (5) to the bank's insurance company in relation to an | 4 |
| insurance
claim or
the effort by the bank to procure | 5 |
| insurance coverage, provided that, when
possible, the bank | 6 |
| shall disclose only information that is relevant to the
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| insurance claim or that is necessary to procure the | 8 |
| insurance coverage, while
maintaining the confidentiality | 9 |
| of financial information pertaining to
customers. When | 10 |
| appropriate, the bank may delete identifying data relating | 11 |
| to
any person.
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| The disclosure of confidential supervisory information by | 13 |
| a bank or other
financial institution pursuant to this | 14 |
| subsection (b) and the disclosure of
information to the | 15 |
| Commissioner or other regulatory agency in connection with
any | 16 |
| examination, visitation, or investigation shall not constitute | 17 |
| a waiver of
any legal privilege otherwise available to the bank | 18 |
| or other financial
institution with respect to the information.
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| (c) (1) Notwithstanding any other provision of this Act
or | 20 |
| any other law, confidential supervisory information shall be | 21 |
| the property of
the Commissioner and shall be privileged from | 22 |
| disclosure to any person except
as provided in this Section. No | 23 |
| person in possession of confidential
supervisory information | 24 |
| may disclose that information for any reason or under
any | 25 |
| circumstances not specified in this Section without the prior | 26 |
| authorization
of the
Commissioner. Any person upon whom a |
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| demand for production of confidential
supervisory information | 2 |
| is made, whether by subpoena, order, or other judicial
or | 3 |
| administrative process, must withhold production of the | 4 |
| confidential
supervisory information and must notify the | 5 |
| Commissioner of the demand, at
which time the Commissioner is | 6 |
| authorized to intervene for the purpose of
enforcing the | 7 |
| limitations of this Section or seeking the withdrawal or
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| termination of the attempt to compel production of the | 9 |
| confidential
supervisory information.
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| (2) Any request for discovery or disclosure of confidential | 11 |
| supervisory
information, whether by subpoena, order, or other | 12 |
| judicial or administrative
process, shall be made to the | 13 |
| Commissioner, and the Commissioner shall
determine within 15 | 14 |
| days whether to disclose the information pursuant to
procedures | 15 |
| and standards that the Commissioner shall establish by rule. If | 16 |
| the
Commissioner determines that such information will not be | 17 |
| disclosed, the
Commissioner's decision shall be subject to | 18 |
| judicial review under the
provisions of the Administrative | 19 |
| Review Law, and venue shall be in either
Sangamon County or | 20 |
| Cook County.
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| (3) Any court order that compels disclosure of confidential | 22 |
| supervisory
information may be immediately appealed by the | 23 |
| Commissioner, and the order
shall
be automatically stayed | 24 |
| pending the outcome of the appeal.
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| (d) If any officer, agent, attorney, or employee of a bank | 26 |
| or
financial institution knowingly and willfully furnishes
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| confidential supervisory information in violation of this | 2 |
| Section, the
Commissioner may impose a
civil monetary penalty | 3 |
| up to $1,000 for the violation against
the officer, agent, | 4 |
| attorney, or employee.
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| (Source: P.A. 90-301, eff. 8-1-97; 91-201, eff. 1-1-00.)
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| Section 99. Effective date. This Act takes effect upon | 7 |
| becoming law.
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