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| Public Act 094-0495 |
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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 | ||||
Section 48.1 as follows:
| ||||
(205 ILCS 5/48.1) (from Ch. 17, par. 360)
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Sec. 48.1. Customer financial records; confidentiality.
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(a) For the purpose of this Section, the term "financial | ||||
records" means any
original, any copy, or any summary of:
| ||||
(1) a document granting signature
authority over a | ||||
deposit or account;
| ||||
(2) a statement, ledger card or other
record on any | ||||
deposit or account, which shows each transaction in or with
| ||||
respect to that account;
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(3) a check, draft or money order drawn on a bank
or | ||||
issued and payable by a bank; or
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(4) any other item containing
information pertaining | ||||
to any relationship established in the ordinary
course of a | ||||
bank's business between a bank and its customer, including
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financial statements or other financial information | ||||
provided by the customer.
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(b) This Section does not prohibit:
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(1) The preparation, examination, handling or | ||||
maintenance of any
financial records by any officer, | ||||
employee or agent of a bank
having custody of the records, | ||||
or the examination of the records by a
certified public | ||||
accountant engaged by the bank to perform an independent
| ||||
audit.
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(2) The examination of any financial records by, or the | ||||
furnishing of
financial records by a bank to, any officer, | ||||
employee or agent of (i) the
Commissioner of Banks and Real | ||||
Estate, (ii) after May
31, 1997, a state regulatory | ||||
authority authorized to examine a branch of a
State bank | ||
located in another state, (iii) the Comptroller of the | ||
Currency,
(iv) the Federal Reserve Board, or (v) the | ||
Federal Deposit Insurance
Corporation for use solely in the | ||
exercise of his duties as an officer,
employee, or agent.
| ||
(3) The publication of data furnished from financial | ||
records
relating to customers where the data cannot be | ||
identified to any
particular customer or account.
| ||
(4) The making of reports or returns required under | ||
Chapter 61 of
the Internal Revenue Code of 1986.
| ||
(5) Furnishing information concerning the dishonor of | ||
any negotiable
instrument permitted to be disclosed under | ||
the Uniform Commercial Code.
| ||
(6) The exchange in the regular course of business of | ||
(i) credit
information
between a bank and other banks or | ||
financial institutions or commercial
enterprises, directly | ||
or through a consumer reporting agency or (ii)
financial | ||
records or information derived from financial records | ||
between a bank
and other banks or financial institutions or | ||
commercial enterprises for the
purpose of conducting due | ||
diligence pursuant to a purchase or sale involving
the bank | ||
or assets or liabilities of the bank.
| ||
(7) The furnishing of information to the appropriate | ||
law enforcement
authorities where the bank reasonably | ||
believes it has been the victim of a
crime.
| ||
(8) The furnishing of information under the Uniform | ||
Disposition of
Unclaimed Property Act.
| ||
(9) The furnishing of information under the Illinois | ||
Income Tax Act and
the Illinois Estate and | ||
Generation-Skipping Transfer Tax Act.
| ||
(10) The furnishing of information under the federal | ||
Currency
and Foreign Transactions Reporting Act Title 31, | ||
United States
Code, Section 1051 et seq.
| ||
(11) The furnishing of information under any other | ||
statute that
by its terms or by regulations promulgated | ||
thereunder requires the disclosure
of financial records | ||
other than by subpoena, summons, warrant, or court order.
| ||
(12) The furnishing of information about the existence | ||
of an account
of a person to a judgment creditor of that | ||
person who has made a written
request for that information.
| ||
(13) The exchange in the regular course of business of | ||
information
between commonly owned banks in connection | ||
with a transaction authorized
under paragraph (23) of
| ||
Section 5 and conducted at an affiliate facility.
| ||
(14) The furnishing of information in accordance with | ||
the federal
Personal Responsibility and Work Opportunity | ||
Reconciliation Act of 1996.
Any bank governed by this Act | ||
shall enter into an agreement for data
exchanges with a | ||
State agency provided the State agency
pays to the bank a | ||
reasonable fee not to exceed its
actual cost incurred. A | ||
bank providing
information in accordance with this item | ||
shall not be liable to any account
holder or other person | ||
for any disclosure of information to a State agency, for
| ||
encumbering or surrendering any assets held by the bank in | ||
response to a lien
or order to withhold and deliver issued | ||
by a State agency, or for any other
action taken pursuant | ||
to this item, including individual or mechanical errors,
| ||
provided the action does not constitute gross negligence or | ||
willful misconduct.
A bank shall have no obligation to | ||
hold, encumber, or surrender assets until
it has been | ||
served with a subpoena, summons, warrant, court or | ||
administrative
order,
lien, or levy.
| ||
(15) The exchange in the regular course of business of | ||
information
between
a bank and any commonly owned affiliate | ||
of the bank, subject to the provisions
of the Financial | ||
Institutions Insurance Sales Law.
| ||
(16) The furnishing of information to law enforcement | ||
authorities, the
Illinois Department on
Aging and its | ||
regional administrative and provider agencies, the | ||
Department of
Human Services Office
of Inspector General, | ||
or public guardians, if there is suspicion by the | ||
investigatory entity, the guardian, or the bank suspects | ||
that a customer
who is an elderly or
disabled person has | ||
been or may become the victim of financial exploitation.
| ||
For the purposes of this
item (16), the term: (i) "elderly | ||
person" means a person who is 60 or more
years of age, (ii) | ||
"disabled
person" means a person who has or reasonably | ||
appears to the bank to have a
physical or mental
disability | ||
that impairs his or her ability to seek or obtain | ||
protection from or
prevent financial
exploitation, and | ||
(iii) "financial exploitation" means tortious or illegal | ||
use
of the assets or resources of
an elderly or disabled | ||
person, and includes, without limitation,
misappropriation | ||
of the elderly or
disabled person's assets or resources by | ||
undue influence, breach of fiduciary
relationship, | ||
intimidation,
fraud, deception, extortion, or the use of | ||
assets or resources in any manner
contrary to law. A bank | ||
or
person furnishing information pursuant to this item (16) | ||
shall be entitled to
the same rights and
protections as a | ||
person furnishing information under the Elder Abuse and
| ||
Neglect Act,
and the Illinois
Domestic Violence Act of | ||
1986, and the Abuse of Adults with Disabilities | ||
Intervention Act.
| ||
(17) The disclosure of financial records or | ||
information as necessary to
effect, administer, or enforce | ||
a transaction requested or authorized by the
customer, or | ||
in connection with:
| ||
(A) servicing or processing a financial product or | ||
service requested or
authorized by the customer;
| ||
(B) maintaining or servicing a customer's account | ||
with the bank; or
| ||
(C) a proposed or actual securitization or | ||
secondary market sale
(including sales of servicing | ||
rights) related to a
transaction of a customer.
| ||
Nothing in this item (17), however, authorizes the sale | ||
of the financial
records or information of a customer | ||
without the consent of the customer.
| ||
(18) The disclosure of financial records or | ||
information as necessary to
protect against actual or | ||
potential fraud, unauthorized transactions, claims,
or | ||
other liability.
| ||
(19) (a) The disclosure of financial records or | ||
information
related to a private label credit program | ||
between a financial
institution and a private label party | ||
in connection with that
private label credit program. Such | ||
information is limited to
outstanding balance, available | ||
credit, payment and performance
and account history, | ||
product references, purchase information,
and information
| ||
related to the identity of the customer.
| ||
(b) (l) For purposes of this paragraph (19) of | ||
subsection
(b) of Section 48.1, a "private label credit | ||
program" means a
credit program involving a financial | ||
institution and a private label
party that is used by a | ||
customer of the financial institution and the
private label | ||
party primarily for payment for goods or services
sold, | ||
manufactured, or distributed by a private label party.
| ||
(2) For purposes of this paragraph (19) of subsection | ||
(b)
of Section 48.l, a "private label party" means, with | ||
respect to a
private label credit program, any of the | ||
following: a
retailer, a merchant, a manufacturer, a trade | ||
group,
or any such person's affiliate, subsidiary, member,
| ||
agent, or service provider.
| ||
(c) Except as otherwise provided by this Act, a bank may | ||
not disclose to
any person, except to the customer or his
duly | ||
authorized agent, any financial records or financial | ||
information
obtained from financial records relating to that | ||
customer of
that bank unless:
| ||
(1) the customer has authorized disclosure to the | ||
person;
| ||
(2) the financial records are disclosed in response to | ||
a lawful
subpoena, summons, warrant or court order which | ||
meets the requirements
of subsection (d) of this Section; | ||
or
| ||
(3) the bank is attempting to collect an obligation | ||
owed to the bank
and the bank complies with the provisions | ||
of Section 2I of the Consumer
Fraud and Deceptive Business | ||
Practices Act.
| ||
(d) A bank shall disclose financial records under paragraph | ||
(2) of
subsection (c) of this Section under a lawful subpoena, | ||
summons, warrant, or
court order only after the bank mails a | ||
copy of the subpoena, summons, warrant,
or court order to the | ||
person establishing the relationship with the bank, if
living, | ||
and, otherwise his personal representative, if known, at his | ||
last known
address by first class mail, postage prepaid, unless | ||
the bank is specifically
prohibited from notifying the person | ||
by order of court or by applicable State
or federal law. A bank | ||
shall not mail a copy of a subpoena to any person
pursuant to | ||
this subsection if the subpoena was issued by a grand jury | ||
under
the Statewide Grand Jury Act.
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(e) Any officer or employee of a bank who knowingly and
| ||
willfully furnishes financial records in violation of this | ||
Section is
guilty of a business offense and, upon conviction, | ||
shall be fined not
more than $1,000.
| ||
(f) Any person who knowingly and willfully induces or | ||
attempts to
induce any officer or employee of a bank to | ||
disclose financial
records in violation of this Section is | ||
guilty of a business offense
and, upon conviction, shall be | ||
fined not more than $1,000.
| ||
(g) A bank shall be reimbursed for costs that are | ||
reasonably necessary
and that have been directly incurred in | ||
searching for, reproducing, or
transporting books, papers, | ||
records, or other data of a customer required or
requested to | ||
be produced pursuant to a lawful subpoena, summons, warrant, or
| ||
court order. The Commissioner shall determine the rates and | ||
conditions
under which payment may be made.
| ||
(Source: P.A. 91-330, eff. 7-29-99; 91-929, eff. 12-15-00; | ||
92-483, eff.
8-23-01; 92-543, eff. 6-12-02.)
| ||
Section 10. The Illinois Savings and Loan Act of 1985 is | ||
amended by changing Section 3-8 as follows:
| ||
(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 | ||
members.
| ||
(a) Every member or holder of capital shall have the right | ||
to inspect
the books and records of the association that | ||
pertain to his account.
Otherwise, the right of inspection and | ||
examination of the books and
records shall be limited as | ||
provided in this Act, and no other person
shall have access to | ||
the books and records or shall be entitled to a
list of the | ||
members.
| ||
(b) For the purpose of this Section, the term "financial | ||
records"
means any original, any copy, or any summary of (i) a | ||
document granting
signature authority over a deposit or | ||
account; (ii) a statement, ledger
card, or other record on any | ||
deposit or account that
shows each transaction in or with | ||
respect to that account; (iii) a check,
draft, or money order | ||
drawn on an association or issued and payable by
an | ||
association; or (iv) any other item containing information | ||
pertaining to
any relationship established in the ordinary | ||
course of an association's
business between an association and | ||
its customer, including financial
statements or other | ||
financial information provided by the member or holder of
| ||
capital.
| ||
(c) This Section does not prohibit:
| ||
(1) The preparation, examination, handling, or | ||
maintenance of any
financial records by any officer, | ||
employee, or agent of an association having
custody of | ||
those records or the examination of those records by a | ||
certified
public accountant engaged by the association to | ||
perform an independent
audit.
| ||
(2) The examination of any financial records by, or the | ||
furnishing of
financial records by an association to, any | ||
officer, employee, or agent of the
Commissioner of Banks | ||
and Real Estate or federal depository institution
| ||
regulator for use solely in the exercise
of
his duties as | ||
an officer, employee, or agent.
| ||
(3) The publication of data furnished from financial | ||
records
relating to members or holders of capital where the | ||
data cannot be
identified to any particular member, holder | ||
of capital, or account.
| ||
(4) The making of reports or returns required under | ||
Chapter 61 of
the Internal Revenue Code of 1986.
| ||
(5) Furnishing information concerning the dishonor of | ||
any negotiable
instrument permitted to be disclosed under | ||
the Uniform Commercial
Code.
| ||
(6) The exchange in the regular course of business of | ||
(i) credit
information between an association and other | ||
associations or financial
institutions or commercial | ||
enterprises, directly or through a consumer
reporting | ||
agency
or (ii) financial records or information derived | ||
from financial records
between an association and other | ||
associations or financial institutions or
commercial | ||
enterprises for the purpose of conducting due diligence | ||
pursuant to
a purchase or sale involving the association or | ||
assets or liabilities of the
association.
| ||
(7) The furnishing of information to the appropriate | ||
law enforcement
authorities where the association | ||
reasonably believes it has been the
victim of a crime.
| ||
(8) The furnishing of information pursuant to the | ||
Uniform Disposition
of Unclaimed Property Act.
| ||
(9) The furnishing of information pursuant to the | ||
Illinois Income Tax
Act and the Illinois Estate and | ||
Generation-Skipping Transfer Tax Act.
| ||
(10) The furnishing of information pursuant to the | ||
federal "Currency
and Foreign Transactions Reporting Act", | ||
(Title 31, United States
Code, Section 1051 et seq.).
| ||
(11) The furnishing of information pursuant to any | ||
other statute that
by its terms or by regulations | ||
promulgated thereunder requires the disclosure
of | ||
financial records other than by subpoena, summons, | ||
warrant, or court
order.
| ||
(12) The exchange of information between an | ||
association and an affiliate
of the association; as used in | ||
this item, "affiliate" includes any
company, partnership, | ||
or organization that controls, is controlled by, or is
| ||
under common control with an association.
| ||
(13) The furnishing of information
in accordance with | ||
the federal Personal Responsibility and Work Opportunity
| ||
Reconciliation Act of 1996. Any association governed by | ||
this Act shall enter
into an agreement for data
exchanges | ||
with a State agency provided the State agency
pays to the | ||
association a reasonable fee not to exceed its
actual cost | ||
incurred. An association
providing
information in | ||
accordance with this item shall not be liable to any | ||
account
holder or other person for any disclosure of | ||
information to a State agency, for
encumbering or | ||
surrendering any assets held by the association in response | ||
to a
lien
or order to withhold and deliver issued by a | ||
State agency, or for any other
action taken pursuant to | ||
this item, including individual or mechanical errors,
| ||
provided the action does not constitute gross negligence or | ||
willful misconduct.
An association shall have no | ||
obligation to hold, encumber, or surrender assets
until it | ||
has been served with a subpoena, summons, warrant, court or
| ||
administrative order, lien, or levy.
| ||
(14) The furnishing of information to law enforcement | ||
authorities, the
Illinois Department on
Aging and its | ||
regional administrative and provider agencies, the | ||
Department of
Human Services Office
of Inspector General, | ||
or public guardians, if there is suspicion by the | ||
investigatory entity, the guardian, or the association | ||
suspects that a
customer who is an elderly or
disabled | ||
person has been or may become the victim of financial | ||
exploitation.
For the purposes of this
item (14), the term: | ||
(i) "elderly person" means a person who is 60 or more
years | ||
of age, (ii) "disabled
person" means a person who has or | ||
reasonably appears to the association to have
a physical or | ||
mental
disability that impairs his or her ability to seek | ||
or obtain protection from or
prevent financial
| ||
exploitation, and (iii) "financial exploitation" means | ||
tortious or illegal use
of the assets or resources of
an | ||
elderly or disabled person, and includes, without | ||
limitation,
misappropriation of the elderly or
disabled | ||
person's assets or resources by undue influence, breach of | ||
fiduciary
relationship, intimidation,
fraud, deception, | ||
extortion, or the use of assets or resources in any manner
| ||
contrary to law. An
association or person furnishing | ||
information pursuant to this item (14) shall
be entitled to | ||
the same
rights and protections as a person furnishing | ||
information under the Elder Abuse
and Neglect Act,
and the
| ||
Illinois Domestic Violence Act of 1986, and the Abuse of | ||
Adults with Disabilities Intervention Act.
| ||
(15) The disclosure of financial records or | ||
information as necessary to
effect, administer, or enforce | ||
a transaction requested or authorized by the
member or | ||
holder of capital, or in connection with:
| ||
(A) servicing or processing a financial product or | ||
service requested or
authorized by the member or holder | ||
of capital;
| ||
(B) maintaining or servicing an account of a member | ||
or holder of capital
with the association; or
| ||
(C) a proposed or actual securitization or | ||
secondary market sale
(including
sales of servicing | ||
rights) related to a transaction of
a member or holder | ||
of capital.
| ||
Nothing in this item (15), however, authorizes the sale | ||
of the financial
records or information of a member or | ||
holder of capital without the consent of
the member or | ||
holder of capital.
| ||
(16) The disclosure of financial records or | ||
information as necessary to
protect against or prevent | ||
actual or potential fraud, unauthorized
transactions, | ||
claims, or other liability.
| ||
(17) (a) The disclosure of financial records or | ||
information
related to a private label credit program | ||
between a financial
institution and a private label party | ||
in connection
with that private label credit program. Such | ||
information
is limited to outstanding balance, available | ||
credit, payment and
performance and account history, | ||
product references, purchase
information,
and information | ||
related to the identity of the
customer.
| ||
(b) (l) For purposes of this paragraph (17) of | ||
subsection
(c) of Section 3-8, a "private label credit | ||
program" means a
credit program involving a financial | ||
institution and a private label
party that is used by a | ||
customer of the financial institution and the
private label | ||
party primarily for payment for goods or services
sold, | ||
manufactured, or distributed by a private label party.
| ||
(2) For purposes of this paragraph (17) of subsection | ||
(c)
of Section 3-8, a "private label party" means, with | ||
respect to a
private label credit program, any of the | ||
following: a
retailer, a merchant, a manufacturer, a trade | ||
group,
or any such person's affiliate, subsidiary, member,
| ||
agent, or service provider.
| ||
(d) An association may not disclose to any person, except | ||
to the
member or holder of capital or his duly authorized | ||
agent, any financial
records relating to that member or holder | ||
of capital of that association
unless:
| ||
(1) The member or holder of capital has authorized | ||
disclosure to the
person; or
| ||
(2) The financial records are disclosed in response to | ||
a lawful
subpoena, summons, warrant, or court order that | ||
meets the
requirements of subsection (e) of this Section.
| ||
(e) An association shall disclose financial records under | ||
subsection
(d) of this Section pursuant to a lawful subpoena, | ||
summons,
warrant, or court order only after the association | ||
mails a copy of the
subpoena, summons, warrant, or court order | ||
to the person establishing
the relationship with the | ||
association, if living, and, otherwise, his
personal | ||
representative, if known, at his last known address by first | ||
class
mail, postage prepaid, unless the association is | ||
specifically prohibited
from notifying that person by order of | ||
court.
| ||
(f) (1) Any officer or employee of an association who | ||
knowingly and
willfully furnishes financial records in | ||
violation of this Section is
guilty of a business offense and, | ||
upon conviction, shall be fined not
more than $1,000.
| ||
(2) Any person who knowingly and willfully induces or | ||
attempts to
induce any officer or employee of an association to | ||
disclose financial
records in violation of this Section is | ||
guilty of a business offense
and, upon conviction, shall be | ||
fined not more than $1,000.
| ||
(g) However, if any member desires to communicate with the | ||
other
members of the association with reference to any question | ||
pending or to
be presented at a meeting of the members, the | ||
association shall give him
upon request a statement of the | ||
approximate number of members entitled
to vote at the meeting | ||
and an estimate of the cost of
preparing and mailing the | ||
communication. The requesting
member then shall submit the | ||
communication to the Commissioner who, if he
finds it to be | ||
appropriate and truthful, shall direct that it be prepared
and | ||
mailed to the members upon the requesting member's payment or
| ||
adequate provision for payment of the expenses of preparation | ||
and mailing.
| ||
(h) An association shall be reimbursed for costs that are | ||
necessary and
that have been directly incurred in searching | ||
for, reproducing, or
transporting books, papers, records, or | ||
other data of a customer required
to be reproduced pursuant to | ||
a lawful subpoena, warrant, or court order.
| ||
(Source: P.A. 92-483, eff. 8-23-01; 92-543, eff.
6-12-02; | ||
93-271, eff. 7-22-03.)
| ||
Section 15. The Savings Bank Act is amended by changing | ||
Section 4013 as follows:
| ||
(205 ILCS 205/4013) (from Ch. 17, par. 7304-13)
| ||
Sec. 4013. Access to books and records; communication with | ||
members
and shareholders.
| ||
(a) Every member or shareholder shall have the right to | ||
inspect books
and records of the savings bank that pertain to | ||
his accounts. Otherwise,
the right of inspection and | ||
examination of the books and records shall be
limited as | ||
provided in this Act, and no other person shall have access to
| ||
the books and records nor shall be entitled to a list of the | ||
members or
shareholders.
| ||
(b) For the purpose of this Section, the term "financial | ||
records" means
any original, any copy, or any summary of (1) a | ||
document granting signature
authority over a deposit or | ||
account; (2) a statement, ledger card, or other
record on any | ||
deposit or account that shows each transaction in or with
| ||
respect to that account; (3) a check, draft, or money order | ||
drawn on a
savings bank or issued and payable by a savings | ||
bank; or (4) any other item
containing information pertaining | ||
to any relationship established in the
ordinary course of a | ||
savings bank's business between a savings bank and
its | ||
customer, including financial statements or other financial | ||
information
provided by the member or shareholder.
| ||
(c) This Section does not prohibit:
| ||
(1) The preparation examination, handling, or | ||
maintenance of any
financial records by any officer, | ||
employee, or agent of a savings bank
having custody of | ||
records or examination of records by a certified public
| ||
accountant engaged by the savings bank to perform an | ||
independent audit.
| ||
(2) The examination of any financial records by, or the | ||
furnishing of
financial records by a savings bank to, any | ||
officer, employee, or agent of
the Commissioner of Banks | ||
and Real Estate or the federal depository
institution | ||
regulator for use
solely in
the exercise of his duties as | ||
an officer, employee, or agent.
| ||
(3) The publication of data furnished from financial | ||
records relating
to members or holders of capital where the | ||
data cannot be identified to any
particular member, | ||
shareholder, or account.
| ||
(4) The making of reports or returns required under | ||
Chapter 61 of the
Internal Revenue Code of 1986.
| ||
(5) Furnishing information concerning the dishonor of | ||
any negotiable
instrument permitted to be disclosed under | ||
the Uniform Commercial Code.
| ||
(6) The exchange in the regular course of business of | ||
(i) credit
information between a savings bank and other | ||
savings banks or financial
institutions or commercial | ||
enterprises, directly or through a consumer
reporting | ||
agency
or (ii) financial records or information derived | ||
from financial records
between a savings bank and other | ||
savings banks or financial institutions or
commercial | ||
enterprises for the purpose of conducting due diligence | ||
pursuant to
a purchase or sale involving the savings bank | ||
or assets or liabilities of the
savings bank.
| ||
(7) The furnishing of information to the appropriate | ||
law enforcement
authorities where the savings bank | ||
reasonably believes it has been the
victim of a crime.
| ||
(8) The furnishing of information pursuant to the | ||
Uniform Disposition
of Unclaimed Property Act.
| ||
(9) The furnishing of information pursuant to the | ||
Illinois Income Tax
Act
and the Illinois Estate and | ||
Generation-Skipping Transfer Tax Act.
| ||
(10) The furnishing of information pursuant to the | ||
federal "Currency
and Foreign Transactions Reporting Act", | ||
(Title 31, United States Code,
Section 1051 et seq.).
| ||
(11) The furnishing of information pursuant to any | ||
other statute which
by its terms or by regulations | ||
promulgated thereunder requires the
disclosure of | ||
financial records other than by subpoena, summons, | ||
warrant, or
court order.
| ||
(12) The furnishing of information in accordance with | ||
the federal
Personal Responsibility and Work Opportunity | ||
Reconciliation Act of 1996.
Any savings bank governed by | ||
this Act shall enter into an agreement for data
exchanges | ||
with a State agency provided the State agency
pays to the | ||
savings bank a reasonable fee not to exceed its
actual cost | ||
incurred. A savings bank
providing
information in | ||
accordance with this item shall not be liable to any | ||
account
holder or other person for any disclosure of | ||
information to a State agency, for
encumbering or | ||
surrendering any assets held by the savings bank in | ||
response to
a lien
or order to withhold and deliver issued | ||
by a State agency, or for any other
action taken pursuant | ||
to this item, including individual or mechanical errors,
| ||
provided the action does not constitute gross negligence or | ||
willful misconduct.
A savings bank shall have no obligation | ||
to hold, encumber, or surrender
assets until
it has been | ||
served with a subpoena, summons, warrant, court or | ||
administrative
order,
lien, or levy.
| ||
(13) The furnishing of information to law enforcement | ||
authorities, the
Illinois Department on
Aging and its | ||
regional administrative and provider agencies, the | ||
Department of
Human Services Office
of Inspector General, | ||
or public guardians, if there is suspicion by the | ||
investigatory entity, the guardian, or the savings bank | ||
suspects that a
customer who is an elderly
or disabled | ||
person has been or may become the victim of financial | ||
exploitation.
For the purposes of this
item (13), the term: | ||
(i) "elderly person" means a person who is 60 or more
years | ||
of age, (ii) "disabled
person" means a person who has or | ||
reasonably appears to the savings bank to
have a physical | ||
or mental
disability that impairs his or her ability to | ||
seek or obtain protection from or
prevent financial
| ||
exploitation, and (iii) "financial exploitation" means | ||
tortious or illegal use
of the assets or resources of
an | ||
elderly or disabled person, and includes, without | ||
limitation,
misappropriation of the elderly or
disabled | ||
person's assets or resources by undue influence, breach of | ||
fiduciary
relationship, intimidation,
fraud, deception, | ||
extortion, or the use of assets or resources in any manner
| ||
contrary to law. A savings
bank or person furnishing | ||
information pursuant to this item (13) shall be
entitled to | ||
the same rights and
protections as a person furnishing | ||
information under the Elder Abuse and
Neglect Act,
and the | ||
Illinois
Domestic Violence Act of 1986, and the Abuse of | ||
Adults with Disabilities Intervention Act.
| ||
(14) The disclosure of financial records or | ||
information as necessary to
effect, administer, or enforce | ||
a transaction requested or authorized by the
member or | ||
holder of capital, or in connection with:
| ||
(A) servicing or processing a financial product or | ||
service requested or
authorized by the member or holder | ||
of capital;
| ||
(B) maintaining or servicing an account of a member | ||
or holder of capital
with the savings bank; or
| ||
(C) a proposed or actual securitization or | ||
secondary market sale
(including sales of servicing | ||
rights) related to a
transaction of a member or holder | ||
of capital.
| ||
Nothing in this item (14), however, authorizes the sale | ||
of the financial
records or information of a member or | ||
holder of capital without the consent of
the member or | ||
holder of capital.
| ||
(15) The exchange in the regular course of business of | ||
information between
a
savings bank and any commonly owned | ||
affiliate of the savings bank, subject to
the provisions of | ||
the Financial Institutions Insurance Sales Law.
| ||
(16) The disclosure of financial records or | ||
information as necessary to
protect against or prevent | ||
actual or potential fraud, unauthorized
transactions, | ||
claims, or other liability.
| ||
(17) (a) The disclosure of financial records or | ||
information
related to a private label credit program | ||
between a financial
institution and a private label party | ||
in connection
with that private label credit program. Such | ||
information
is limited to outstanding balance, available | ||
credit, payment and
performance and account history, | ||
product references, purchase
information,
and information | ||
related to the identity of the
customer.
| ||
(b) (l) For purposes of this paragraph (17) of | ||
subsection
(c) of Section 4013, a "private label credit | ||
program" means a
credit program involving a financial | ||
institution and a private label
party that is used by a | ||
customer of the financial institution and the
private label | ||
party primarily for payment for goods or services
sold, | ||
manufactured, or distributed by a private label party.
| ||
(2) For purposes of this paragraph (17) of subsection | ||
(c)
of Section 4013, a "private label party" means, with | ||
respect to a
private label credit program, any of the | ||
following: a
retailer, a merchant, a manufacturer, a trade | ||
group,
or any such person's affiliate, subsidiary, member,
| ||
agent, or service provider.
| ||
(d) A savings bank may not disclose to any person, except | ||
to the member
or holder of capital or his duly authorized | ||
agent, any financial records
relating to that member or | ||
shareholder of the savings bank unless:
| ||
(1) the member or shareholder has authorized | ||
disclosure to the person; or
| ||
(2) the financial records are disclosed in response to | ||
a lawful
subpoena, summons, warrant, or court order that | ||
meets the requirements of
subsection (e) of this Section.
| ||
(e) A savings bank shall disclose financial records under | ||
subsection (d)
of this Section pursuant to a lawful subpoena, | ||
summons, warrant, or court
order only after the savings bank | ||
mails a copy of the subpoena, summons,
warrant, or court order | ||
to the person establishing the relationship with
the savings | ||
bank, if living, and otherwise, his personal representative, if
| ||
known, at his last known address by first class mail, postage | ||
prepaid,
unless the savings bank is specifically prohibited | ||
from notifying the
person by order of court.
| ||
(f) Any officer or employee of a savings bank who knowingly | ||
and
willfully furnishes financial records in violation of this | ||
Section is
guilty of a business offense and, upon conviction, | ||
shall be fined not
more than $1,000.
| ||
(g) Any person who knowingly and willfully induces or | ||
attempts to
induce any officer or employee of a savings bank to | ||
disclose financial
records in violation of this Section is | ||
guilty of a business offense and,
upon conviction, shall be | ||
fined not more than $1,000.
| ||
(h) If any member or shareholder desires to communicate | ||
with the other
members or shareholders of the savings bank with | ||
reference to any question
pending or to be presented at an | ||
annual or special meeting, the savings
bank shall give that | ||
person, upon request, a statement of the approximate
number of | ||
members or shareholders entitled to vote at the meeting and an
| ||
estimate of the cost of preparing and mailing the | ||
communication. The
requesting member shall submit the | ||
communication to the Commissioner
who, upon finding it to be | ||
appropriate and truthful, shall direct that it
be prepared and | ||
mailed to the members upon the requesting member's or
| ||
shareholder's payment or adequate provision for payment of the | ||
expenses of
preparation and mailing.
| ||
(i) A savings bank shall be reimbursed for costs that are | ||
necessary and
that have been directly incurred in searching | ||
for, reproducing, or
transporting books, papers, records, or | ||
other data of a customer required
to be reproduced pursuant to | ||
a lawful subpoena, warrant, or court order.
| ||
(j) Notwithstanding the provisions of this Section, a | ||
savings bank may
sell or otherwise make use of lists of | ||
customers' names and addresses. All
other information | ||
regarding a customer's account are subject to the
disclosure | ||
provisions of this Section. At the request of any customer,
| ||
that customer's name and address shall be deleted from any list | ||
that is to
be sold or used in any other manner beyond | ||
identification of the customer's
accounts.
| ||
(Source: P.A. 92-483, eff. 8-23-01; 92-543, eff.
6-12-02; | ||
93-271, eff. 7-22-03.)
| ||
Section 20. The Illinois Credit Union Act is amended by | ||
changing Section 10 as follows:
| ||
(205 ILCS 305/10) (from Ch. 17, par. 4411)
| ||
Sec. 10. Credit union records; member financial records.
| ||
(1) A credit union shall establish and maintain books, | ||
records, accounting
systems and procedures which accurately | ||
reflect its operations and which
enable the Department to | ||
readily ascertain the true financial condition
of the credit | ||
union and whether it is complying with this Act.
| ||
(2) A photostatic or photographic reproduction of any | ||
credit union records
shall be admissible as evidence of | ||
transactions with the credit union.
| ||
(3) (a) For the purpose of this Section, the term | ||
"financial records"
means any original, any copy, or any | ||
summary of (1) a document granting
signature authority over | ||
an account, (2) a statement, ledger card or other
record on | ||
any account which shows each transaction in or with respect | ||
to
that account, (3) a check, draft or money order drawn on | ||
a financial
institution or other entity or issued and | ||
payable by or through a financial
institution or other | ||
entity, or (4) any other item containing information
| ||
pertaining to any relationship established in the ordinary | ||
course of
business between a credit union and its member, | ||
including financial
statements or other financial | ||
information provided by the member.
| ||
(b) This Section does not prohibit:
| ||
(1) The preparation, examination, handling or | ||
maintenance of any
financial records by any officer, | ||
employee or agent of a credit union
having custody of | ||
such records, or the examination of such records by a
| ||
certified public accountant engaged by the credit | ||
union to perform an
independent audit.
| ||
(2) The examination of any financial records by or | ||
the furnishing of
financial records by a credit union | ||
to any officer, employee or agent of
the Department, | ||
the National Credit Union Administration, Federal | ||
Reserve
board or any insurer of share accounts for use | ||
solely in the exercise of
his duties as an officer, | ||
employee or agent.
| ||
(3) The publication of data furnished from | ||
financial records relating
to members where the data | ||
cannot be identified to any particular customer
of | ||
account.
| ||
(4) The making of reports or returns required under | ||
Chapter 61 of the
Internal Revenue Code of 1954.
| ||
(5) Furnishing information concerning the dishonor | ||
of any negotiable
instrument permitted to be disclosed | ||
under the Uniform Commercial
Code.
| ||
(6) The exchange in the regular course of business
| ||
of (i) credit information
between a credit union and | ||
other credit unions or financial institutions
or | ||
commercial enterprises, directly or through a consumer | ||
reporting agency
or (ii) financial records or | ||
information derived from financial records
between a | ||
credit union and other credit unions or financial | ||
institutions or
commercial enterprises for
the purpose | ||
of conducting due diligence pursuant to a merger or a | ||
purchase or
sale of assets or liabilities of the credit | ||
union.
| ||
(7) The furnishing of information to the | ||
appropriate law enforcement
authorities where the | ||
credit union reasonably believes it has been the victim
| ||
of a crime.
| ||
(8) The furnishing of information pursuant to the | ||
Uniform Disposition
of Unclaimed Property Act.
| ||
(9) The furnishing of information pursuant to the | ||
Illinois Income Tax
Act and the Illinois Estate and | ||
Generation-Skipping Transfer Tax Act.
| ||
(10) The furnishing of information pursuant to the | ||
federal "Currency
and Foreign Transactions Reporting | ||
Act", Title 31, United States Code,
Section 1051 et | ||
sequentia.
| ||
(11) The furnishing of information pursuant to any | ||
other statute which
by its terms or by regulations | ||
promulgated thereunder requires the disclosure
of | ||
financial records other than by subpoena, summons, | ||
warrant or court order.
| ||
(12) The furnishing of information in accordance | ||
with the federal
Personal Responsibility and Work | ||
Opportunity Reconciliation Act of 1996.
Any credit | ||
union governed by this Act shall enter into an | ||
agreement for data
exchanges with a State agency | ||
provided the State agency
pays to the credit union a | ||
reasonable fee not to exceed its
actual cost incurred. | ||
A credit union
providing
information in accordance | ||
with this item shall not be liable to any account
| ||
holder or other person for any disclosure of | ||
information to a State agency, for
encumbering or | ||
surrendering any assets held by the credit union in | ||
response to
a lien
or order to withhold and deliver | ||
issued by a State agency, or for any other
action taken | ||
pursuant to this item, including individual or | ||
mechanical errors,
provided the action does not | ||
constitute gross negligence or willful misconduct.
A | ||
credit union shall have no obligation to hold, | ||
encumber, or surrender
assets until
it has been served | ||
with a subpoena, summons, warrant, court or | ||
administrative
order, lien, or levy.
| ||
(13) The furnishing of information to law | ||
enforcement authorities, the
Illinois Department on
| ||
Aging and its regional administrative and provider | ||
agencies, the Department of
Human Services Office
of | ||
Inspector General, or public guardians, if there is | ||
suspicion by the investigatory entity, the guardian, | ||
or the credit union suspects that a
member who is an | ||
elderly or
disabled person has been or may become the | ||
victim of financial exploitation.
For the purposes of | ||
this
item (13), the term: (i) "elderly person" means a | ||
person who is 60 or more
years of age, (ii) "disabled
| ||
person" means a person who has or reasonably appears to | ||
the credit union to
have a physical or mental
| ||
disability that impairs his or her ability to seek or | ||
obtain protection from or
prevent financial
| ||
exploitation, and (iii) "financial exploitation" means | ||
tortious or illegal use
of the assets or resources of
| ||
an elderly or disabled person, and includes, without | ||
limitation,
misappropriation of the elderly or
| ||
disabled person's assets or resources by undue | ||
influence, breach of fiduciary
relationship, | ||
intimidation,
fraud, deception, extortion, or the use | ||
of assets or resources in any manner
contrary to law. A | ||
credit
union or person furnishing information pursuant | ||
to this item (13) shall be
entitled to the same rights | ||
and
protections as a person furnishing information | ||
under the Elder Abuse and
Neglect Act,
and the Illinois
| ||
Domestic Violence Act of 1986, and the Abuse of Adults | ||
with Disabilities Intervention Act.
| ||
(14) The disclosure of financial records or | ||
information as necessary
to
effect, administer, or | ||
enforce a transaction requested or authorized by the
| ||
member, or in connection with:
| ||
(A) servicing or processing a financial | ||
product or service requested
or
authorized by the | ||
member;
| ||
(B) maintaining or servicing a member's | ||
account with the credit union;
or
| ||
(C) a proposed or actual securitization or | ||
secondary market sale
(including sales of | ||
servicing rights) related to a
transaction of a | ||
member.
| ||
Nothing in this item (14), however, authorizes the | ||
sale of the financial
records or information of a | ||
member without the consent of the member.
| ||
(15) The disclosure of financial records or | ||
information as necessary to
protect against or prevent | ||
actual or potential fraud, unauthorized
transactions, | ||
claims, or other liability.
| ||
(16) (a) The disclosure of financial records or | ||
information
related to a private label credit program | ||
between a financial
institution and a private label | ||
party in connection
with that private label credit | ||
program. Such information
is limited to outstanding | ||
balance, available credit, payment and
performance and | ||
account history, product references, purchase
| ||
information,
and information related to the identity | ||
of the
customer.
| ||
(b) (l) For purposes of this paragraph (16) of | ||
subsection
(b) of Section 10, a "private label credit | ||
program" means a credit
program involving a financial | ||
institution and a private label party
that is used by a | ||
customer of the financial institution and the
private | ||
label party primarily for payment for goods or services
| ||
sold, manufactured, or distributed by a private label | ||
party.
| ||
(2) For purposes of this paragraph (16) of | ||
subsection (b)
of Section 10, a "private label party" | ||
means, with respect to a
private label credit program, | ||
any of the following: a
retailer, a merchant, a | ||
manufacturer, a trade group,
or any such person's | ||
affiliate, subsidiary, member,
agent, or service | ||
provider.
| ||
(c) Except as otherwise provided by this Act, a credit | ||
union may not
disclose to any person, except to the member
| ||
or his duly authorized agent, any financial records | ||
relating to that member
of the credit union unless:
| ||
(1) the member has authorized disclosure to the | ||
person;
| ||
(2) the financial records are disclosed in | ||
response to a lawful
subpoena,
summons, warrant or | ||
court order that meets the requirements of | ||
subparagraph
(d) of this Section; or
| ||
(3) the credit union is attempting to collect an | ||
obligation owed to
the credit union and the credit | ||
union complies with the provisions of
Section 2I of the | ||
Consumer Fraud and Deceptive Business Practices Act.
| ||
(d) A credit union shall disclose financial records | ||
under subparagraph
(c)(2) of this Section pursuant to a | ||
lawful subpoena, summons, warrant or
court order only after | ||
the credit union mails a copy of the subpoena, summons,
| ||
warrant or court order to the person establishing the | ||
relationship with
the credit union, if living, and | ||
otherwise his personal representative,
if known, at his | ||
last known address by first class mail, postage prepaid
| ||
unless the credit union is specifically prohibited from | ||
notifying the person
by order of court or by applicable | ||
State or federal law. In the case
of a grand jury subpoena, | ||
a credit union shall not mail a copy of a subpoena
to any | ||
person pursuant to this subsection if the subpoena was | ||
issued by a grand
jury under the Statewide Grand Jury Act | ||
or notifying the
person would constitute a violation of the | ||
federal Right to Financial
Privacy Act of 1978.
| ||
(e) (1) Any officer or employee of a credit union who | ||
knowingly and
wilfully furnishes financial records in | ||
violation of this Section is guilty of
a business | ||
offense and upon conviction thereof shall be fined not | ||
more than
$1,000.
| ||
(2) Any person who knowingly and wilfully induces | ||
or attempts to induce
any officer or employee of a | ||
credit union to disclose financial records
in | ||
violation of this Section is guilty of a business | ||
offense and upon
conviction thereof shall be fined not | ||
more than $1,000.
| ||
(f) A credit union shall be reimbursed for costs which | ||
are reasonably
necessary and which have been directly | ||
incurred in searching for,
reproducing or transporting | ||
books, papers, records or other data of a
member required | ||
or requested to be produced pursuant to a lawful subpoena,
| ||
summons, warrant or court order. The Director may | ||
determine, by rule, the
rates and
conditions under which | ||
payment shall be made. Delivery of requested documents
may | ||
be delayed until final reimbursement of all costs is | ||
received.
| ||
(Source: P.A. 91-929, eff. 12-15-00; 92-293, eff. 8-9-01; | ||
92-483, eff.
8-23-01; 92-543, eff. 6-12-02.)
| ||
Section 99. Effective date. This Act takes effect upon | ||
becoming law.
| ||