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90_SB1393
205 ILCS 5/48.1 from Ch. 17, par. 360
Amends the Illinois Banking Act. Provides that the
exchange of information between banks and affiliates does not
violate customer confidentiality requirements, but is subject
to the provisions of the Financial Institutions Insurance
Sales Law. Effective immediately.
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1 AN ACT to amend the Illinois Banking Act by changing
2 Section 48.1.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Illinois Banking Act is amended by
6 changing Section 48.1 as follows:
7 (205 ILCS 5/48.1) (from Ch. 17, par. 360)
8 Sec. 48.1. Customer financial records; confidentiality.
9 (a) For the purpose of this Section, the term "financial
10 records" means any original, any copy, or any summary of (1)
11 a document granting signature authority over a deposit or
12 account, (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, (3) a check, draft or money order
15 drawn on a bank or issued and payable by a bank, or (4) any
16 other item containing information pertaining to any
17 relationship established in the ordinary course of a bank's
18 business between a bank and its customer.
19 (b) This Section does not prohibit:
20 (1) The preparation, examination, handling or
21 maintenance of any financial records by any officer,
22 employee or agent of a bank having custody of the
23 records, or the examination of the records by a certified
24 public accountant engaged by the bank to perform an
25 independent audit.
26 (2) The examination of any financial records by, or
27 the furnishing of financial records by a bank to, any
28 officer, employee or agent of (i) the Commissioner of
29 Banks and Real Estate, (ii) after May 31, 1997, a state
30 regulatory authority authorized to examine a branch of a
31 State bank located in another state, (iii) the
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1 Comptroller of the Currency, (iv) the Federal Reserve
2 Board, or (v) the Federal Deposit Insurance Corporation
3 for use solely in the exercise of his duties as an
4 officer, employee, or agent.
5 (3) The publication of data furnished from
6 financial records relating to customers where the data
7 cannot be identified to any particular customer or
8 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
12 of any negotiable instrument permitted to be disclosed
13 under the Uniform Commercial Code.
14 (6) The exchange in the regular course of business
15 of credit information between a bank and other banks or
16 financial institutions or commercial enterprises,
17 directly or through a consumer reporting agency.
18 (7) The furnishing of information to the
19 appropriate law enforcement authorities where the bank
20 reasonably believes it has been the victim of a crime.
21 (8) The furnishing of information under the Uniform
22 Disposition of Unclaimed Property Act.
23 (9) The furnishing of information under the
24 Illinois Income Tax Act and the Illinois Estate and
25 Generation-Skipping Transfer Tax Act.
26 (10) The furnishing of information under the
27 federal Currency and Foreign Transactions Reporting Act
28 Title 31, United States Code, Section 1051 et seq.
29 (11) The furnishing of information under any other
30 statute that by its terms or by regulations promulgated
31 thereunder requires the disclosure of financial records
32 other than by subpoena, summons, warrant, or court order.
33 (12) The furnishing of information about the
34 existence of an account of a person to a judgment
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1 creditor of that person who has made a written request
2 for that information.
3 (13) The exchange in the regular course of business
4 of information between commonly owned banks in connection
5 with a transaction authorized under paragraph (23) of
6 Section 5 and conducted at an affiliate facility.
7 (14) The furnishing of information in accordance
8 with the federal Personal Responsibility and Work
9 Opportunity Reconciliation Act of 1996. Any bank governed
10 by this Act shall enter into an agreement for data
11 exchanges with a State agency provided the State agency
12 pays to the bank a reasonable fee not to exceed its
13 actual cost incurred. A bank 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 bank in response to a
18 lien or order to withhold and deliver issued by a State
19 agency, or for any other action taken pursuant to this
20 item, including individual or mechanical errors, provided
21 the action does not constitute gross negligence or
22 willful misconduct. A bank shall have no obligation to
23 hold, encumber, or surrender assets until it has been
24 served with a subpoena, summons, warrant, court or
25 administrative order, lien, or levy.
26 (15) The exchange in the regular course of business
27 of information between a bank and any commonly owned
28 affiliate of the bank, subject to the provisions of the
29 Financial Institutions Insurance Sales Law.
30 (c) A bank may not disclose to any person, except to the
31 customer or his duly authorized agent, any financial records
32 relating to that customer of that bank unless:
33 (1) the customer has authorized disclosure to the
34 person;
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1 (2) the financial records are disclosed in response
2 to a lawful subpoena, summons, warrant or court order
3 which meets the requirements of subsection (d) of this
4 Section; or
5 (3) the bank is attempting to collect an obligation
6 owed to the bank and the bank complies with the
7 provisions of Section 2I of the Consumer Fraud and
8 Deceptive Business Practices Act.
9 (d) A bank shall disclose financial records under
10 paragraph (2) of subsection (c) of this Section under a
11 lawful subpoena, summons, warrant, or court order only after
12 the bank mails a copy of the subpoena, summons, warrant, or
13 court order to the person establishing the relationship with
14 the bank, if living, and, otherwise his personal
15 representative, if known, at his last known address by first
16 class mail, postage prepaid, unless the bank is specifically
17 prohibited from notifying the person by order of court or by
18 applicable State or federal law. A bank shall not mail a
19 copy of a subpoena to any person pursuant to this subsection
20 if the subpoena was issued by a grand jury under the
21 Statewide Grand Jury Act.
22 (e) Any officer or employee of a bank who knowingly and
23 willfully furnishes financial records in violation of this
24 Section is guilty of a business offense and, upon conviction,
25 shall be fined not more than $1,000.
26 (f) Any person who knowingly and willfully induces or
27 attempts to induce any officer or employee of a bank to
28 disclose financial records in violation of this Section is
29 guilty of a business offense and, upon conviction, shall be
30 fined not more than $1,000.
31 (g) A bank shall be reimbursed for costs that are
32 reasonably necessary and that have been directly incurred in
33 searching for, reproducing, or transporting books, papers,
34 records, or other data of a customer required or requested to
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1 be produced pursuant to a lawful subpoena, summons, warrant,
2 or court order. The Commissioner shall determine the rates
3 and conditions under which payment may be made.
4 (Source: P.A. 89-208, eff. 9-29-95; 89-364, eff. 8-18-95;
5 89-508, eff. 7-3-96; 89-626, eff. 8-9-96; 90-18, eff.
6 7-1-97.)
7 Section 99. Effective date. This Act takes effect upon
8 becoming law.