Public Act 90-0575 of the 90th General Assembly
Public Act 90-0575
HB0597 Enrolled LRB9002691JScc
AN ACT concerning certain regulatory matters, amending
named Acts.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 1. Short title. This Act may be cited as the
Financial Institutions Digital Signature Act.
Section 5. Definitions. As used in this Act:
"Digital signature" means an encrypted electronic
identifier, created by computer, intended by the party using
it to have the same force and effect as the use of a manual
signature.
"Financial institution" means a bank, a savings and loan
association or savings bank, or a credit union, established
under the laws of this or any other state or established
under the laws of the United States the deposits of which are
insured by the Federal Deposit Insurance Corporation or other
agency of the federal government.
Section 10. Electronic documents; digital signatures.
(a) If in the regular course of business, a financial
institution possesses, records, or generates any document,
representation, image, reproduction, or combination thereof,
of any agreement, transaction, act, occurrence, or event by
any electronic or computer-generated process that accurately
reproduces, comprises, or records the agreement, transaction,
act, occurrence, or event, the recording, comprising, or
reproduction shall have the same force and effect as one
comprised, recorded, or created on paper or other tangible
form by writing, typing, printing, or similar means.
(b) In any communication, acknowledgement, agreement, or
contract between a financial institution and its customer, in
which a signature is required or used, any party to the
communication, acknowledgement, agreement, or contract may
affix a signature by use of a digital signature, and the
digital signature, when lawfully used by the person whose
signature it purports to be, shall have the same force and
effect as the use of a manual signature if it is unique to
the person using it, is capable of verification, is under the
sole control of the person using it, and is linked to data in
such a manner that if the data are changed, the digital
signature is invalidated. Nothing in this Section shall
require any financial institution or customer to use or
permit the use of a digital signature.
Section 15. Civil remedy. A cause of action, including
attorneys fees and costs, shall lie in favor of any person
for the unauthorized use of his or her digital signature.
Section 80. The Property Tax Code is amended by changing
Section 21-15 as follows:
(35 ILCS 200/21-15)
Sec. 21-15. General tax due dates; default by mortgage
lender. Except as otherwise provided in this Section or
Section 21-40, all property upon which the first installment
of taxes remains unpaid on June 1 annually shall be deemed
delinquent and shall bear interest after June 1 at the rate
of 1 1/2% per month or portion thereof. Except as otherwise
provided in this Section or Section 21-40, all property upon
which the second installment of taxes remains due and unpaid
on September 1, annually, shall be deemed delinquent and
shall bear interest after September 1 at the same interest
rate. All interest collected shall be paid into the general
fund of the county.
Property not subject to the interest charge in Section
9-265 shall also not be subject to the interest charge
imposed by this Section until such time as the owner of the
property receives actual notice of and is billed for the
principal amount of back taxes due and owing.
Notwithstanding any other provision of law, when any
unpaid taxes become delinquent under this Section through the
fault of the mortgage lender, (i) the interest assessed under
this Section for delinquent taxes shall be charged against
the mortgage lender and not the mortgagor and (ii) the
mortgage lender shall pay the taxes, redeem the property and
take all necessary steps to remove any liens accruing against
the property because of the delinquency. In the event that
more than one entity meets the definition of mortgage lender
with respect to any mortgage, the interest shall be assessed
against the mortgage lender responsible for servicing the
mortgage. Unpaid taxes shall be deemed delinquent through
the fault of the mortgage lender only if: (a) the mortgage
lender has received all payments due the mortgage lender for
the property being taxed under the written terms of the
mortgage or promissory note secured by the mortgage, (b) the
mortgage lender holds funds in escrow to pay the taxes, and
(c) the funds are sufficient to pay the taxes after deducting
all amounts reasonably anticipated to become due for all
hazard insurance premiums and mortgage insurance premiums and
any other assessments to be paid from the escrow under the
terms of the mortgage. For purposes of this Section, an
amount is reasonably anticipated to become due if it is
payable within 12 months from the time of determining the
sufficiency of funds held in escrow. Unpaid taxes shall not
be deemed delinquent through the fault of the mortgage lender
if the mortgage lender was directed in writing by the
mortgagor not to pay the property taxes, or if the failure to
pay the taxes when due resulted from inadequate or inaccurate
parcel information provided by the mortgagor, a title or
abstract company, or by the agency or unit of government
assessing the tax.
(Source: P.A. 90-336, eff. 1-1-98.)
Section 82. The Sales Finance Agency Act is amended by
changing Section 10.2 as follows:
(205 ILCS 660/10.2) (from Ch. 17, par. 5225)
Sec. 10.2. Closing of business; surrender of license. At
least 10 days prior to a licensee ceasing operations, closing
business, or filing for bankruptcy, the licensee shall:
(a) Notify the Department of its action in writing.
(b) With the exception of filing for bankruptcy,
surrender its license to the Director for cancellation. The
surrender of the license shall not affect the licensee's
civil or criminal liability for acts committed prior to
surrender or entitle the licensee to a return of any part of
the annual license fee.
(c) The licensee shall notify the department of the
location where the books, accounts, contracts, and records
will be maintained and the procedure to ensure prompt return
of contracts, titles, and releases to the customers.
(d) The accounts, books, records, and contracts shall be
maintained and serviced by the licensee or another licensee
under this Act, or an entity exempt from licensure under this
Act.
(e) The Department shall have the authority to conduct
examinations of the books, records, and loan documents at any
time after surrender of the license, filing of bankruptcy, or
the cessation of operations.
(Source: P.A. 90-437, eff. 1-1-98.)
Section 84. The Consumer Installment Loan Act is amended
by changing Sections 2, 4, and 9.1 as follows:
(205 ILCS 670/2) (from Ch. 17, par. 5402)
Sec. 2. Application; fees; positive net worth.
Application for such license shall be in writing, and in the
form prescribed by the Director. Such applicant at the time
of making such application shall pay to the Director the sum
of $300 as an application fee a fee for investigating the
applicant and the additional sum of $300 as an annual license
fee, for a period terminating on the last day of the current
calendar year; provided that if the application is filed
after June 30th in any year, such license fee shall be 1/2 of
the annual license fee for such year.
Before the license is granted, every applicant shall
prove in form satisfactory to the Director that the applicant
has a positive net worth of a minimum of $30,000. Every
applicant shall maintain a surety bond in the principal sum
of $1,000 issued by a bonding company authorized to do
business in this State and which shall be approved by the
Director. Such bond shall run to the Director and shall be
for the benefit of any person who incurs damages as a result
of the actions of a licensee and who is lawfully awarded such
damages pursuant to an appropriate court order. If the
Director finds at any time that a bond is of insufficient
size, is insecure, exhausted, or otherwise doubtful, an
additional bond in such amount as determined by the Director
shall be filed by the licensee within 30 days after written
demand therefor by the Director. "Net worth" means total
assets minus total liabilities.
(Source: P.A. 90-437, eff. 1-1-98.)
(205 ILCS 670/4) (from Ch. 17, par. 5404)
Sec. 4. Investigation to determine whether license shall
be issued. Upon the filing of an application and the payment
of the fee, the Director shall investigate to determine (1)
that the reputation of the applicant, including managers of a
limited liability company, partners, owners, officers or
directors thereof is such as to warrant belief that the
business will be operated honestly and fairly within the
purposes of this Act and (2) that the applicant meets the
positive net worth requirement set forth in Section 2 of this
Act. Unless the Director makes findings hereinabove
enumerated, he or she shall not issue a license and shall
notify the applicant of the denial and return to the
applicant the sum paid by the applicant as a license fee, but
shall retain the $300 application investigation fee. The
Director shall approve or deny every application for license
hereunder within 60 days from the filing thereof with the
fee.
(Source: P.A. 90-437, eff. 1-1-98.)
(205 ILCS 670/9.1)
Sec. 9.1. Closing of business; surrender of license. At
least 10 days prior to a licensee ceasing operations, closing
business, or filing for bankruptcy, the licensee shall:
(a) Notify the Department of its action in writing.
(b) With the exception of filing for bankruptcy,
surrender its license to the Director for cancellation. The
surrender of the license shall not affect the licensee's
civil or criminal liability for acts committed prior to
surrender or entitle the licensee to a return of any part of
the annual license fee.
(c) The licensee shall notify the Department of the
location where the books, accounts, contracts, and records
will be maintained and the procedure to ensure prompt return
of contracts, titles, and releases to the customers.
(d) The accounts, books, records, and contracts shall be
maintained and serviced by the licensee or another licensee
under this Act, or an entity exempt from licensure under this
Act.
(e) The Department shall have the authority to conduct
examinations of the books, records, and loan documents at any
time after surrender of the license, filing of bankruptcy, or
the cessation of operations.
(Source: P.A. 90-437, eff. 1-1-98.)
Section 86. The Check Printer and Check Number Act is
amended by changing Sections 15, 25, 30, and 37 and adding
Section 17 as follows:
(205 ILCS 690/15)
Sec. 15. Verification of check purchasers.
(a) 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, street
address, city, state, and account 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. Acceptable forms of
documentation under this subsection may include a copy of the
account agreement with the financial institution, a recent
account statement issued by the financial institution, a
letter or verbal response from the financial institution
verifying the account information, or a copy of the Magnetic
Ink Character Recognition specification sheet from the
financial institution. The Commissioner may, by rule, allow
for additional or other forms of verification. 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.
(b) This Section shall not apply to any check orders:
(1) drawn on an existing consumer-deposit account
for which a check order has been previously fulfilled by
the person selling or distributing checks and for which
there are no changes to the original account holder's
name, street address, city, state, or account number;
(2) originating from a financial institution and
made on behalf of a new or existing consumer-deposit
account held at the financial institution; or
(3) any order for checks to be drawn on an existing
consumer-deposit account for which the only changes
involve (i) a change of zip code with no change to the
street address, city, or state or (ii) street address or
state convenience changes to or from an abbreviated word
(e.g. St. to Street, Apt. to Apartment, IL. to Illinois).
(Source: P.A. 90-184, eff. 7-23-97.)
(205 ILCS 690/17 new)
Sec. 17. Exemptions. Nothing in this Act shall be
construed to apply to a personal computer user who generates
checks for personal use or who distributes checks to
immediate family members at no charge.
(205 ILCS 690/25)
Sec. 25. Bond; conditions; amount. A registrant shall
maintain at all times a surety bond procured by the
registrant and issued by a bonding company authorized to do
business in this State in a principal sum of no less than
$10,000. The bond shall be for any liability incurred by the
registrant resulting from a judgment entered for any
violation of this Act, including damages awarded in actions
brought pursuant to Section 35. At the time of each
registration, the registrant shall file with the Commissioner
proof of such surety bond. 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.
(Source: P.A. 90-184, eff. 7-23-97.)
(205 ILCS 690/30)
Sec. 30. Civil action.
(a) 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.
(b) If the Commissioner finds that any person has
violated Sections 10, 20, 21, or 25 of this Act, or any rules
adopted by the Commissioner under this Act, the Commissioner
may, in addition to seeking an injunction as provided in
subsection (a) of this Section, impose a civil monetary
penalty in an amount of not more than $10,000 for each
violation.
(Source: P.A. 90-184, eff. 7-23-97.)
(205 ILCS 690/37)
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 18 months 5 years from the date of receipt of the
information.
(Source: P.A. 90-184, eff. 7-23-97.)
Section 88. The State Housing Act is amended by changing
Section 8 as follows:
(310 ILCS 5/8) (from Ch. 67 1/2, par. 158)
Sec. 8. The name of every housing corporation organized
pursuant to the provisions of this Act shall include the word
words "housing", and no business corporation organized under
the "Business Corporation Act of 1983", as amended, shall,
after the date of enactment of this Act, include the word
"Housing" as part of its corporate name.
(Source: P.A. 83-1362.)
Section 90. The Criminal Code of 1961 is amended by
changing Section 17-3 as follows:
(720 ILCS 5/17-3) (from Ch. 38, par. 17-3)
Sec. 17-3. Forgery.
(a) A person commits forgery when, with intent to
defraud, he knowingly:
(1) Makes or alters any document apparently capable
of defrauding another in such manner that it purports to
have been made by another or at another time, or with
different provisions, or by authority of one who did not
give such authority; or
(2) Issues or delivers such document knowing it to
have been thus made or altered; or
(3) Possesses, with intent to issue or deliver, any
such document knowing it to have been thus made or
altered; or.
(4) Unlawfully uses the digital signature, as
defined in the Financial Institutions Digital Signature
Act, of another.
(b) An intent to defraud means an intention to cause
another to assume, create, transfer, alter or terminate any
right, obligation or power with reference to any person or
property. As used in this Section, "document" includes, but
is not limited to, any document, representation, or image
produced manually, electronically, or by computer.
(c) A document apparently capable of defrauding another
includes, but is not limited to, one by which any right,
obligation or power with reference to any person or property
may be created, transferred, altered or terminated.
(d) Sentence.
Forgery is a Class 3 felony.
(Source: P.A. 77-2638.)
Section 92. The Business Corporation Act of 1983 is
amended by changing Section 4.05 as follows:
(805 ILCS 5/4.05) (from Ch. 32, par. 4.05)
Sec. 4.05. Corporate name of domestic or foreign
corporation.
(a) The corporate name of a domestic corporation or of a
foreign corporation organized, existing or subject to the
provisions of this Act:
(1) Shall contain, separate and apart from any
other word or abbreviation in such name, the word
"corporation", "company", "incorporated", or "limited",
or an abbreviation of one of such words, and if the name
of a foreign corporation does not contain, separate and
apart from any other word or abbreviation, one of such
words or abbreviations, the corporation shall add at the
end of its name, as a separate word or abbreviation, one
of such words or an abbreviation of one of such words.
(2) Shall not contain any word or phrase which
indicates or implies that the corporation (i) is
authorized or empowered to conduct the business of
insurance, assurance, indemnity, or the acceptance of
savings deposits; (ii) is authorized or empowered to
conduct the business of banking unless otherwise
permitted by the Commissioner of Banks and Real Estate
pursuant to Section 46 of the Illinois Banking Act; or
(iii) is authorized or empowered to be in the business of
a corporate fiduciary unless otherwise permitted by the
Commissioner of Banks and Real Estate under Section 1-9
of the Corporate Fiduciary Act. The word "trust",
"trustee", or "fiduciary" may be used by a corporation
only if it has first complied with Section 1-9 of the
Corporate Fiduciary Act. The word "bank", "banker" or
"banking" may only be used by a corporation if it has
first complied with Section 46 of the Illinois Banking
Act.
(3) Shall be distinguishable upon the records in
the office of the Secretary of State from the corporate
name or assumed corporate name of any domestic
corporation, whether profit or not for profit, existing
under any Act of this State or of any foreign
corporation, whether profit or not for profit, authorized
to transact business in this State, or a name the
exclusive right to which is, at the time, reserved or
registered in the manner provided in this Act, except
that, subject to the discretion of the Secretary of
State, a foreign corporation that has a name prohibited
by this paragraph may be issued a certificate of
authority to transact business in this State, if the
foreign corporation:
(i) Elects to adopt an assumed corporate name
or names in accordance with Section 4.15 of this
Act; and
(ii) Agrees in its application for a
certificate of authority to transact business in
this State only under such assumed corporate name or
names.
(4) Shall contain the word "trust", if it be a
domestic corporation organized for the purpose of
accepting and executing trusts, shall contain the word
"pawners", if it be a domestic corporation organized as a
pawners' society, and shall contain the word
"cooperative", if it be a domestic corporation organized
as a cooperative association for pecuniary profit.
(5) Shall not contain a word or phrase, or an
abbreviation or derivation thereof, the use of which is
prohibited or restricted by any other statute of this
State unless such restriction has been complied with.
(6) Shall consist of letters of the English
alphabet, Arabic or Roman numerals, or symbols capable of
being readily reproduced by the office of the Secretary
of State.
(7) Shall be the name under which the corporation
shall transact business in this State unless the
corporation shall also elect to adopt an assumed
corporate name or names as provided in this Act;
provided, however, that the corporation may use any
divisional designation or trade name without complying
with the requirements of this Act, provided the
corporation also clearly discloses its corporate name.
(8) (Blank) Shall not contain the word "housing" as
part of its corporate name.
(b) The Secretary of State shall determine whether a
name is "distinguishable" from another name for purposes of
this Act. Without excluding other names which may not
constitute distinguishable names in this State, a name is not
considered distinguishable, for purposes of this Act, solely
because it contains one or more of the following:
(1) the word "corporation", "company",
"incorporated", or "limited" or an abbreviation of one of
such words;
(2) articles, conjunctions, contractions,
abbreviations, different tenses or number of the same
word;
(c) Nothing in this Section or Sections 4.15 or 4.20
shall:
(1) Require any domestic corporation existing or
any foreign corporation having a certificate of authority
on the effective date of this Act, to modify or otherwise
change its corporate name or assumed corporate name, if
any.
(2) Abrogate or limit the common law or statutory
law of unfair competition or unfair trade practices, nor
derogate from the common law or principles of equity or
the statutes of this State or of the United States with
respect to the right to acquire and protect copyrights,
trade names, trade marks, service names, service marks,
or any other right to the exclusive use of names or
symbols.
(Source: P.A. 88-151; 88-408; 88-670, eff. 12-2-94; 89-508,
eff. 7-3-96.)
Section 99. Effective date. This Act takes effect upon
becoming law.