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90_HB1113
205 ILCS 690/1
205 ILCS 690/5
205 ILCS 690/15 new
205 ILCS 690/20 new
205 ILCS 690/25 new
205 ILCS 690/30 new
205 ILCS 690/35 new
205 ILCS 690/36 new
205 ILCS 690/37 new
205 ILCS 690/38 new
205 ILCS 690/39 new
Amends the Check Number Act. Changes the short title to
the Check Printer and Check Number Act. Provides that
persons not affiliated with a financial institution and
engaged in the business of printing checks must register with
the Commissioner of Banks and Real Estate. Requires these
check printers to verify the name, address, telephone number,
and social security number of check purchasers and to refuse
to distribute ordered checks if the information cannot be
verified. Requires these check printers to post a bond.
Creates a civil cause of action for persons damaged by a
check printer's failure to verify. Authorizes minimum
damages of $1,000 plus attorneys' fees. Provides that making
a false statement on the registration form is a Class 3
felony. Effective immediately.
LRB9003071JSgc
LRB9003071JSgc
1 AN ACT to amend the Check Number Act by changing Sections
2 1 and 5 and adding Sections 15, 20, 25, 30, 35, 36, 37, 38,
3 and 39.
4 Be it enacted by the People of the State of Illinois,
5 represented in the General Assembly:
6 Section 5. The Check Number Act is amended by changing
7 Sections 1 and 5 and adding Sections 15, 20, 25, 30, 35, 36,
8 37, 38, and 39 as follows:
9 (205 ILCS 690/1)
10 Sec. 1. Short title. This Act may be cited as the Check
11 Printer and Check Number Act.
12 (Source: P.A. 87-1143.)
13 (205 ILCS 690/5)
14 Sec. 5. Definitions. For the purposes of this Act:
15 "Commissioner" means the Commissioner of Banks and Real
16 Estate.
17 "Consumer-deposit account" means a demand or other
18 similar deposit account such as a checking, negotiable order
19 of withdrawal, money market, savings deposit, share, or
20 member account established and maintained by a natural person
21 with a financial institution and operated primarily for
22 personal, family, or household purposes.
23 "Financial institution" means any bank subject to the
24 Illinois Banking Act, any savings bank subject to the Savings
25 Bank Act, any savings and loan association subject to the
26 Illinois Savings and Loan Act of 1985, and any federally
27 chartered commercial bank, savings bank, or savings and loan
28 association organized and operated in this State under the
29 laws of the United States.
30 "Check" means a writing that complies with the
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1 requirements of Section 3-104 of the Uniform Commercial Code.
2 "Person" means any natural person or his legal
3 representative, partnership, corporation, company, trust,
4 business entity, or association.
5 (Source: P.A. 87-1143.)
6 (205 ILCS 690/15 new)
7 Sec. 15. Verification of check purchasers. A person,
8 other than a financial institution, who sells or distributes
9 checks that may be drawn against funds held by financial
10 institutions in a consumer-deposit account shall before
11 delivery of the checks to the person ordering them, verify
12 the accuracy of that person's name, address, telephone
13 number, and social security number. If the information is
14 not first verified, the seller or distributor shall not sell
15 or distribute the ordered checks. The sale or distribution
16 of checks to any person as to whom verification, as provided
17 for herein, has not first been made shall constitute a
18 business offense for which the fine shall be $1,000 for each
19 offense.
20 (205 ILCS 690/20 new)
21 Sec. 20. Registration. A person, other than a financial
22 institution, who sells or distributes checks that may be
23 drawn against funds held by financial institutions in a
24 consumer deposit account shall register with the Commissioner
25 within 30 days after the effective date of this amendatory
26 Act of 1997 or within 30 days after commencement of doing
27 business in this State, whichever is later, and annually
28 thereafter. The person shall register on such forms as may
29 be prescribed by the Commissioner, which shall include such
30 information as the Commissioner may deem necessary or
31 appropriate to carry out the purposes of this Act.
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1 (205 ILCS 690/25 new)
2 Sec. 25. Bond; conditions; amount. At the time of each
3 registration, the registrant shall file with, and have
4 approved by, the Commissioner a surety bond issued by a
5 bonding company authorized to do business in this State in
6 the principal sum of $10,000. The bond shall run to the
7 Commissioner and shall be for any liability incurred by the
8 registrant for any violation of this Act, including damages
9 awarded in actions brought pursuant to Section 35.
10 From time to time, the Commissioner may determine the
11 amount of liabilities as described herein and may require the
12 registrant to file a bond in an additional sum if it is
13 determined to be necessary in accordance with the
14 requirements of this Section. In no case shall the bond be
15 less than the initial $10,000, nor more than the outstanding
16 liabilities if in excess of $10,000.
17 (205 ILCS 690/30 new)
18 Sec. 30. Civil action when the Commissioner believes a
19 person has violated, is violating, or will violate this Act
20 or a rule prescribed under this Act, the Commissioner may
21 request the Attorney General to bring a civil action in
22 circuit court to enjoin the violation or enforce compliance
23 with this Act or a rule prescribed under this Act. A person
24 not complying with an injunction issued under this Section is
25 liable to the State of Illinois is a civil suit for an amount
26 of not more than $10,000.
27 (205 ILCS 690/35 new)
28 Sec. 35. Recovery of damages. A person who is damaged
29 by reason of the registrant's failure to verify as required
30 under this Act may sue such person for damages including, at
31 a minimum, liquidated damages in the amount of $1,000, plus
32 all costs and expenses, including reasonable attorneys' fees,
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1 incurred in the prosecution of the action.
2 (205 ILCS 690/36 new)
3 Sec. 36. Criminal penalties. A person who willfully and
4 knowingly subscribes to or makes, or causes to be made, any
5 false statement on the registration form with intent to
6 deceive the Commissioner or his administrative officers
7 shall, upon conviction thereof, be guilty of a Class 3
8 felony.
9 (205 ILCS 690/37 new)
10 Sec. 37. Record retention. Records pertaining to or
11 constituting the procedures for and results of the
12 verification required under this Act shall be retained for a
13 period of 5 years from the date of receipt of the
14 information.
15 (205 ILCS 690/38 new)
16 Sec. 38. Rules. The Commissioner has the power to
17 promulgate reasonable rules for the purpose of administering
18 the provisions of this Act.
19 (205 ILCS 690/39 new)
20 Sec. 39. Severability. The provisions of this Act are
21 severable under Section 1.31 of the Statute on Statutes.
22 Section 99. Effective date. This Act takes effect upon
23 becoming law.