Public Act 90-0163 of the 90th General Assembly

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Public Act 90-0163

HB1923 Enrolled                                LRB9004329JSmg

    AN ACT to amend the Adverse Claims  to  Deposit  Accounts
Act by changing Section 20.

    Be  it  enacted  by  the People of the State of Illinois,
represented in the General Assembly:

    Section 5.  The Adverse Claims to Deposit Accounts Act is
amended by changing Section 20 as follows:

    (205 ILCS 700/20)
    Sec. 20.  Requirement of court order or  indemnity  bond.
    (a)  A  financial  institution shall recognize an adverse
claim to, or an adverse claim  of  authority  to  control,  a
deposit  account  if  the person making the claim obtains and
serves upon the financial institution a certified copy of  an
appropriate   order,   by   a   court   having  jurisdiction,
restraining any action with respect to the deposit account or
instructing the financial institution to pay the  balance  of
the deposit account or to deliver the property in the deposit
account, in whole or in part, as provided in the order, until
further order of the court.
    (b)  A financial institution may, in its sole discretion,
recognize  an adverse claim to, or adverse claim of authority
to control, a deposit account if the person making the  claim
delivers  to  the financial institution a bond, in a form and
amount  and  with  sureties  satisfactory  to  the  financial
institution, indemnifying the financial  institution  against
any   liability,   loss,   or   expense  that  the  financial
institution might incur because of  its  recognition  of  the
adverse  claim  or  because  of  its refusal by reason of the
claim to honor any check or  order  of,  or  to  deliver  any
property  to, the depositor. -In order to require a financial
institution to recognize an  adverse  claim  to,  or  adverse
claim  of authority to, control a deposit account, the person
making the claim shall do either of the following:
         (1)  obtain and serve upon the financial institution
    a certified copy of  an  appropriate  order  by  a  court
    having  jurisdiction  restraining any action with respect
    to the deposit account until further order of  the  court
    or  instructing  the  financial  institution  to  pay the
    balance of the deposit account or deliver the property in
    the deposit account, in whole or in part, as provided  in
    the order;
         (2)  deliver to the financial institution a bond, in
    form  and  amount  and  with sureties satisfactory to the
    financial   institution,   indemnifying   the   financial
    institution against any liability, loss, or expense  that
    the  financial  institution  might  incur  because of its
    recognition of  the  adverse  claim  or  because  of  its
    refusal  by  reason  of  the  claim to honor any check or
    order of, or to deliver any property to, the depositor.
(Source: P.A. 89-601, eff. 8-2-96.)

    Section 99.  Effective date.  This Act takes effect  upon
becoming law.

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