Public Act 90-0184 of the 90th General Assembly
Public Act 90-0184
SB406 Enrolled LRB9003070JSgc
AN ACT to amend the Check Number Act by changing Sections
1 and 5 and adding Sections 15, 20, 21, 25, 30, 35, 36, 37,
38, and 39.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Check Number Act is amended by changing
Sections 1 and 5 and adding Sections 15, 20, 21, 25, 30, 35,
36, 37, 38, and 39 as follows:
(205 ILCS 690/1)
Sec. 1. Short title. This Act may be cited as the Check
Printer and Check Number Act.
(Source: P.A. 87-1143.)
(205 ILCS 690/5)
Sec. 5. Definitions. For the purposes of this Act:
"Commissioner" means the Commissioner of Banks and Real
Estate.
"Consumer-deposit account" means a demand or other
similar deposit account such as a checking, negotiable order
of withdrawal, money market, savings deposit, share, or
member account established and maintained by a natural person
with a financial institution and operated primarily for
personal, family, or household purposes.
"Financial institution" means (i) any bank subject to the
Illinois Banking Act, any savings bank subject to the Savings
Bank Act, any savings and loan association subject to the
Illinois Savings and Loan Act of 1985, or any credit union
subject to the Illinois Credit Union Act; (ii) and any
federally chartered commercial bank, savings bank, or savings
and loan association, or credit union organized and operated
in this State under the laws of the United States; and (iii)
any business corporation, limited liability company, business
trust, partnership, joint venture, or other entity that is
directly or indirectly at least 50% owned by or commonly
owned with a financial institution.
"Check" means a writing that complies with the
requirements of Section 3-104 of the Uniform Commercial Code.
"Person" means any natural person or his legal
representative, partnership, corporation, company, trust,
business entity, or association.
(Source: P.A. 87-1143.)
(205 ILCS 690/15 new)
Sec. 15. Verification of check purchasers. A person,
other than a financial institution, who sells or distributes
checks that may be drawn against funds held by financial
institutions in a consumer-deposit account shall before
delivery of the checks to the person ordering them, verify
the accuracy of that person's name, address, telephone
number, and social security number. If the information is
not first verified, the seller or distributor shall not sell
or distribute the ordered checks. The sale or distribution
of checks to any person as to whom verification, as provided
for herein, has not first been made shall constitute a
business offense for which the fine shall be $1,000 for each
offense.
(205 ILCS 690/20 new)
Sec. 20. Registration. A person, other than a financial
institution, who sells or distributes checks that may be
drawn against funds held by financial institutions in a
consumer-deposit account shall register with the Commissioner
within 30 days after the effective date of this amendatory
Act of 1997 or within 30 days after commencement of doing
business in this State, whichever is later, and annually
thereafter. The person shall register on such forms as may
be prescribed by the Commissioner, which shall include such
information as the Commissioner may deem necessary or
appropriate to carry out the purposes of this Act.
(205 ILCS 690/21 new)
Sec. 21. Fees. All moneys received by the Commissioner
under this Act shall be paid into, and all expenses incurred
by the Commissioner under this Act shall be paid from, the
Bank and Trust Company Fund. The Commissioner may prescribe
and assess reasonable fees to be paid by registrants to
recover the costs of administering this Act.
(205 ILCS 690/25 new)
Sec. 25. Bond; conditions; amount. At the time of each
registration, the registrant shall file with, and have
approved by, the Commissioner a surety bond issued by a
bonding company authorized to do business in this State in
the principal sum of $10,000. The bond shall run to the
Commissioner and shall be for any liability incurred by the
registrant for any violation of this Act, including damages
awarded in actions brought pursuant to Section 35.
From time to time, the Commissioner may determine the
amount of liabilities as described herein and may require the
registrant to file a bond in an additional sum if it is
determined to be necessary in accordance with the
requirements of this Section. In no case shall the bond be
less than the initial $10,000, nor more than the outstanding
liabilities if in excess of $10,000.
(205 ILCS 690/30 new)
Sec. 30. Civil action when the Commissioner believes a
person has violated, is violating, or will violate this Act
or a rule prescribed under this Act, the Commissioner may
request the Attorney General to bring a civil action in
circuit court to enjoin the violation or enforce compliance
with this Act or a rule prescribed under this Act. A person
not complying with an injunction issued under this Section is
liable to the State of Illinois in a civil suit for an amount
of not more than $10,000.
(205 ILCS 690/35 new)
Sec. 35. Recovery of damages. A person who is damaged
by reason of the registrant's failure to verify as required
under this Act may sue such person for damages including, at
a minimum, liquidated damages in the amount of $1,000, plus
all costs and expenses, including reasonable attorneys' fees,
incurred in the prosecution of the action.
(205 ILCS 690/36 new)
Sec. 36. Criminal penalties. A person who willfully and
knowingly subscribes to or makes, or causes to be made, any
false statement on the registration form with intent to
deceive the Commissioner or his administrative officers
shall, upon conviction thereof, be guilty of a Class 3
felony.
(205 ILCS 690/37 new)
Sec. 37. Record retention. Records pertaining to or
constituting the procedures for and results of the
verification required under this Act shall be retained for a
period of 5 years from the date of receipt of the
information.
(205 ILCS 690/38 new)
Sec. 38. Rules. The Commissioner has the power to
promulgate reasonable rules for the purpose of administering
the provisions of this Act.
(205 ILCS 690/39 new)
Sec. 39. Severability. The provisions of this Act are
severable under Section 1.31 of the Statute on Statutes.
Section 99. Effective date. This Act takes effect upon
becoming law.