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90_HB1923
205 ILCS 700/20
Amends the Adverse Claims to Deposit Accounts Act.
Requires a financial institution to recognize an adverse
claim to a deposit account if ordered to do so by a court.
Provides that a financial institution may, in its discretion,
recognize an adverse claim if the person making the claim
posts a bond. Current law requires recognition of the claim
if a bond is posted. Effective immediately.
LRB9004329JSmg
LRB9004329JSmg
1 AN ACT to amend the Adverse Claims to Deposit Accounts
2 Act by changing Section 20.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Adverse Claims to Deposit Accounts Act is
6 amended by changing Section 20 as follows:
7 (205 ILCS 700/20)
8 Sec. 20. Requirement of court order or indemnity bond.
9 (a) A financial institution shall recognize an adverse
10 claim to, or an adverse claim of authority to control, a
11 deposit account if the person making the claim obtains and
12 serves upon the financial institution a certified copy of an
13 appropriate order, by a court having jurisdiction,
14 restraining any action with respect to the deposit account or
15 instructing the financial institution to pay the balance of
16 the deposit account or to deliver the property in the deposit
17 account, in whole or in part, as provided in the order, until
18 further order of the court.
19 (b) A financial institution may, in its sole discretion,
20 recognize an adverse claim to, or adverse claim of authority
21 to control, a deposit account if the person making the claim
22 delivers to the financial institution a bond, in a form and
23 amount and with sureties satisfactory to the financial
24 institution, indemnifying the financial institution against
25 any liability, loss, or expense that the financial
26 institution might incur because of its recognition of the
27 adverse claim or because of its refusal by reason of the
28 claim to honor any check or order of, or to deliver any
29 property to, the depositor. -In order to require a financial
30 institution to recognize an adverse claim to, or adverse
31 claim of authority to, control a deposit account, the person
-2- LRB9004329JSmg
1 making the claim shall do either of the following:
2 (1) obtain and serve upon the financial institution
3 a certified copy of an appropriate order by a court
4 having jurisdiction restraining any action with respect
5 to the deposit account until further order of the court
6 or instructing the financial institution to pay the
7 balance of the deposit account or deliver the property in
8 the deposit account, in whole or in part, as provided in
9 the order;
10 (2) deliver to the financial institution a bond, in
11 form and amount and with sureties satisfactory to the
12 financial institution, indemnifying the financial
13 institution against any liability, loss, or expense that
14 the financial institution might incur because of its
15 recognition of the adverse claim or because of its
16 refusal by reason of the claim to honor any check or
17 order of, or to deliver any property to, the depositor.
18 (Source: P.A. 89-601, eff. 8-2-96.)
19 Section 99. Effective date. This Act takes effect upon
20 becoming law.