State of Illinois
91st General Assembly
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Public Act 91-0201

SB447 Enrolled                                 LRB9105227JSpc

    AN ACT to amend the  Illinois  Banking  Act  by  changing
Section 48.3.

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

    Section  5.  The  Illinois  Banking  Act  is  amended  by
changing Section 48.3 as follows:

    (205 ILCS 5/48.3) (from Ch. 17, par. 360.2)
    Sec. 48.3.  Disclosure of  reports  of  examinations  and
confidential supervisory information; limitations.
    (a)  Any    report   of   examination,   visitation,   or
investigation prepared by the Commissioner under  Section  48
of  this Act, Section 25 of the Electronic Fund Transfer Act,
Section 5-2 of the Corporate Fiduciary Act,  Section  3.1  of
the Illinois Bank Holding Company Act of 1957, and Section 18
of  the  Foreign  Banking  Office  Act,  and  any  report  of
examination,  visitation,  or  investigation  prepared by the
state regulatory authority of another state that  examines  a
branch  of  an  Illinois  State  bank  in  that state, or any
document or record prepared or obtained in connection with or
relating to any examination,  visitation,  or  investigation,
and  any  record  prepared or obtained by the Commissioner to
the extent that the record summarizes or contains information
derived from any report, document,  or  record  described  in
this  subsection  shall  be  deemed "confidential supervisory
information".  Confidential supervisory information shall not
include any information or record  routinely  prepared  by  a
bank  or  other  financial  institution and maintained in the
ordinary course of business or any information or record that
is required to be made publicly available pursuant  to  State
or federal law or rule.  Confidential supervisory information
shall  be  the property of the Commissioner and shall only be
disclosed under the circumstances and for  the  purposes  set
forth in this Section.
      The  Commissioner,  his officers, agents, and employees
may disclose confidential supervisory information a report of
examination, or any document or record obtained in connection
with any examination, only under the following circumstances:
         (1)  The  Commissioner  may   furnish   confidential
    supervisory  information to the Board of Governors of the
    Federal Reserve System, the federal reserve bank  of  the
    federal  reserve  district  in  which  the  State bank is
    located or in which the parent or other affiliate of  the
    State  bank  is located, any official or examiner thereof
    duly accredited for  the  purpose,  or  any  other  state
    regulator, federal regulator, or in the case of a foreign
    bank  possessing  a  certificate of authority pursuant to
    the Foreign Banking Office Act or a license  pursuant  to
    the  Foreign  Bank  Representative  Office  Act, the bank
    regulator in  the  country  where  the  foreign  bank  is
    chartered,  that  the  Commissioner determines to have an
    appropriate regulatory interest, a copy or copies of  any
    or all examinations of the bank and of any or all reports
    made  by  the bank. He may give access to and disclose to
    the Board, federal  reserve  bank,  or  any  official  or
    examiner thereof duly accredited for the purpose, any and
    all   information  possessed  by  the  Commissioner  with
    reference to the condition or affairs of the State  bank.
    Nothing contained in this Act shall be construed to limit
    the  obligation  of  any member State bank to comply with
    the requirements relative to examinations and reports  of
    the  Federal Reserve Act and of the Board of Governors of
    the Federal Reserve System or the federal reserve bank of
    the  federal  reserve  district  in  which  the  bank  is
    located, nor to limit  in  any  way  the  powers  of  the
    Commissioner with reference to examinations and reports.
         (2)  The   Commissioner   may  furnish  confidential
    supervisory information to the United States, any  agency
    thereof that has insured a bank's deposits in whole or in
    part, or any official or examiner thereof duly accredited
    for   the  purpose  a  copy  or  copies  of  any  or  all
    examinations of the bank and of any or all  reports  made
    by  the  bank. He may also give access to and disclose to
    the  United  States,  such  an  agency  thereof,  or  any
    official or examiner  thereof  duly  accredited  for  the
    purpose   any   and  all  information  possessed  by  the
    Commissioner with reference to the condition  or  affairs
    of  any such insured bank.  Nothing contained in this Act
    shall be construed to limit the  obligation  relative  to
    examinations  and  reports of any State bank, deposits in
    which are to any extent insured by the United States, any
    agency thereof, nor to limit in any way the powers of the
    Commissioner with reference to examination and reports of
    such bank.
         (3)  The  Commissioner  may   furnish   confidential
    supervisory    information   to   the   appropriate   law
    enforcement  authorities   when   the   Commissioner   he
    reasonably believes a bank, which the Commissioner he has
    caused to be examined, has been a victim of a crime.
         (4)  The   Commissioner   may  furnish  confidential
    supervisory information  relating  to  a  bank  or  other
    financial  institution,  which  the  Commissioner  he has
    caused to be examined, to be sent to the administrator of
    the Uniform Disposition of Unclaimed Property Act.
         (5)  The  Commissioner  may   furnish   confidential
    supervisory  information  relating  to  a  bank  or other
    financial institution,  which  the  Commissioner  he  has
    caused  to  be  examined,  relating to its performance of
    obligations under the Illinois Income  Tax  Act  and  the
    Illinois  Estate and Generation-Skipping Transfer Tax Act
    to the Illinois Department of Revenue.
         (6)  The  Commissioner  may   furnish   confidential
    supervisory  information  relating  to  a  bank  or other
    financial institution,  which  the  Commissioner  he  has
    caused  to  be  examined,  under the federal Currency and
    Foreign Transactions  Reporting  Act,  Title  31,  United
    States Code, Section 1051 et seq.
         (6.5)  The  Commissioner  may  furnish  confidential
    supervisory  information, including excerpts or summaries
    of information  contained  in  a  report  of  examination
    prepared  by  the  Commissioner,  to  any other agency or
    entity  that  the  Commissioner  determines  to  have   a
    legitimate regulatory interest.
         (7)  The   Commissioner   may  furnish  confidential
    supervisory 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.
         (8)  At  the  request  of the affected bank or other
    financial  institution,  the  Commissioner  may   furnish
    confidential  supervisory  information relating to a bank
    or other financial institution, which the Commissioner he
    has  caused  to  be  examined,  in  connection  with  the
    obtaining of insurance coverage  or  the  pursuit  of  an
    insurance  claim  for  or  on behalf of the bank or other
    financial institution; provided that, when possible,  the
    Commissioner  shall  disclose  only  relevant information
    while  maintaining  the  confidentiality   of   financial
    records  not relevant to such insurance coverage or claim
    and,  when  appropriate,  may  delete  identifying   data
    relating to any person or individual.
         (9)  The Commissioner may furnish a copy of a report
    of  any  examination performed by the Commissioner of the
    condition and affairs of any electronic  data  processing
    entity  to  the  banks  serviced  by  the electronic data
    processing entity.
         (10)  In addition to  the  foregoing  circumstances,
    the  Commissioner  may,  but  is not required to, furnish
    confidential supervisory information a copy of  a  report
    of  any  examination performed by the Commissioner of the
    condition and affairs of  any  bank  or  other  financial
    institution  under  the same circumstances authorized for
    under  which  the  bank  or  financial  institution   may
    disclose the report of examination pursuant to subsection
    (b)  of  this Section, except that the Commissioner shall
    provide confidential supervisory information a copy of  a
    report  of  examination  under circumstances described in
    paragraph (3) of subsection (b) of this Section only upon
    the request of the bank or other financial institution.
    (b)  A  bank  or  other  financial  institution  or   its
officers,  agents,  and  employees  may disclose confidential
supervisory information a report of examination of  the  bank
or  other  financial institution prepared by the Commissioner
only under the following circumstances:
         (1)  to the board of directors of the bank or  other
    financial   institution,   as   well  as  the  president,
    vice-president, cashier, and other officers of  the  bank
    or  other  financial  institution  to  whom  the board of
    directors may delegate duties with respect to  compliance
    with recommendations for action within the report, and to
    the  board  of  directors  of a bank holding company that
    owns at least 80% of the outstanding stock of the bank or
    other financial institution;
         (2)  to attorneys for the bank  or  other  financial
    institution  and to a certified public accountant engaged
    by the State bank or financial institution to perform  an
    independent audit provided that the attorney or certified
    public  accountant  shall  not  permit  the  confidential
    supervisory  report of examination or information therein
    to be further disseminated;
         (3)  to  any  person  who   seeks   to   acquire   a
    controlling  interest in, or who seeks to merge with, the
    bank  or  financial  institution,   provided   that   all
    attorneys,   certified   public   accountants,  officers,
    agents, or employees of that person  shall  agree  to  be
    bound  to respect the confidentiality of the confidential
    supervisory information in the report of examination  and
    to   not  further  disseminate  the  information  therein
    contained;
         (4)  (blank)  in  response  to  a  lawful  subpoena,
    summons,   warrant,   or   court  order  that  meets  the
    requirements of subsection (c) of this Section; or
         (5)  to the bank's insurance company in relation  to
    an  insurance  claim or the effort by the bank to procure
    insurance coverage, provided  that,  when  possible,  the
    bank  shall disclose only information that is relevant to
    the insurance claim or that is necessary to  procure  the
    insurance coverage, while maintaining the confidentiality
    of  financial  information pertaining to customers.  When
    appropriate,  the  bank  may  delete   identifying   data
    relating to any person.
    The disclosure of confidential supervisory information by
a  bank  or  other  financial  institution  pursuant  to this
subsection (b) and  the  disclosure  of  information  to  the
Commissioner  or  other  regulatory agency in connection with
any  examination,  visitation,  or  investigation  shall  not
constitute  a  waiver  of  any  legal   privilege   otherwise
available  to  the  bank  or other financial institution with
respect to the information.
    (c) (1)  Notwithstanding any other provision of this  Act
or  any other law, confidential supervisory information shall
be the property of the Commissioner and shall  be  privileged
from  disclosure  to  any  person  except as provided in this
Section.  No person in possession of confidential supervisory
information may disclose that information for any  reason  or
under any circumstances not specified in this Section without
the prior authorization of the Commissioner.  Any person upon
whom  a  demand  for  production  of confidential supervisory
information is made, whether by  subpoena,  order,  or  other
judicial  or administrative process, must withhold production
of the confidential supervisory information and  must  notify
the   Commissioner   of   the   demand,  at  which  time  the
Commissioner is authorized to intervene for  the  purpose  of
enforcing  the  limitations  of  this  Section or seeking the
withdrawal or termination of the attempt to compel production
of the confidential supervisory information.
    (2)  Any  request  for   discovery   or   disclosure   of
confidential  supervisory  information,  whether by subpoena,
order, or other judicial or administrative process, shall  be
made   to   the  Commissioner,  and  the  Commissioner  shall
determine within 15 days whether to disclose the  information
pursuant  to  procedures  and standards that the Commissioner
shall establish by rule.  If the Commissioner determines that
such information will not be  disclosed,  the  Commissioner's
decision  shall  be  subject  to  judicial  review  under the
provisions of the Administrative Review Law, and venue  shall
be in either Sangamon County or Cook County.
    (3)  Any   court   order   that   compels  disclosure  of
confidential  supervisory  information  may  be   immediately
appealed   by  the  Commissioner,  and  the  order  shall  be
automatically stayed pending the outcome  of  the  appeal.  A
bank  or  financial  institution  shall  disclose a report of
examination under paragraph (4) of  subsection  (b)  of  this
Section  pursuant  to a lawful subpoena, summons, warrant, or
court order only after  the  bank  or  financial  institution
mails  a  copy  of  the  subpoena, summons, warrant, or court
order to the Commissioner by certified mail, postage prepaid,
at  least  15  days  prior  to  providing  the  report.   The
Commissioner  shall have the right to intervene in a court or
administrative proceeding at any time to obtain a  protective
order in the proceeding to protect the confidentiality of the
report.   If  the  date  by  which   the  bank  or  financial
institution is directed to provide the report is sooner  than
15  days,  then  the bank or financial institution shall give
notice telephonically, which notice  shall  be  confirmed  in
writing  in  the  manner provided in this subsection (c), and
the Commissioner shall have the right to intervene to  obtain
a protective order.
    (d)  If  any  officer,  agent, attorney, or employee of a
bank  or  financial  institution  knowingly   and   willfully
furnishes  confidential  supervisory  information a report of
examination in violation of this  Section,  the  Commissioner
may  impose  a  civil  monetary  penalty up to $1,000 for the
violation against the officer, agent, attorney, or employee.
(Source: P.A. 89-208,  eff.  9-29-95;  89-310,  eff.  1-1-96;
89-567,  eff.  7-26-96;  89-626,  eff.  8-9-96;  90-301, eff.
8-1-97.)

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