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Public Act 096-0123


 

Public Act 0123 96TH GENERAL ASSEMBLY



 


 
Public Act 096-0123
 
SB0229 Enrolled LRB096 05726 MJR 15794 b

    AN ACT concerning financial regulation.
 
    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
Banking Convenience Account for Depositors Act.
 
    Section 5. Definitions. For purposes of this Act:
    "Banking organization" means any person doing a banking
business whether subject to the laws of this or any other
jurisdiction.
    "Convenience account" means an account established
pursuant to this Act.
    "Convenience depositor" means a person that makes deposits
into the depositor's convenience account pursuant to this Act.
    "Depositor" means a person that is the primary account
holder of any account held by a banking organization.
 
    Section 10. Convenience accounts; creation.
    (a) A banking organization may permit a depositor to open a
convenience account for the purposes of permitting a
convenience depositor to make deposits into that account. The
convenience account shall be in the name of a depositor and the
convenience depositor and be permitted to pay or deliver funds
to either for the convenience of the depositor.
    (b) Deposits made into a convenience account shall not
affect the title to any deposit or shares and the depositor
shall not be considered to have made a gift of one-half the
deposit or of any additions or accruals thereon to the
convenience depositor, and, on the death of the depositor, the
convenience depositor shall have no right of survivorship in
the convenience account. If an addition is made to a
convenience account by anyone other than the depositor, any
addition and accruals thereon shall be considered to have been
made by the depositor.
 
    Section 15. Depositors and convenience depositors. Any
deposit, together with all additions and accruals thereon, made
to the convenience account may be paid or delivered to the
depositor or the convenience depositor, and the payment or
delivery and the receipt or acquittance of the one to whom the
payment or delivery is made, shall be a valid and sufficient
release and discharge to the banking organization prior to the
receipt by the banking organization of notice in writing signed
by the depositor not to pay or deliver the deposit or shares
and the additions and accruals thereon in accordance with the
terms thereof, and after receipt of any notice, the banking
organization may require the receipt or acquittance of the
depositor for any further payments or delivery.
 
    Section 20. Banking organizations; liability for
convenience accounts. If the depositor is dead, then payment or
delivery to the convenience depositor shall be a valid and
sufficient release to the banking organization prior to the
receipt by the banking organization of written notice of the
depositor's death. A banking organization which, upon the death
of the depositor and prior to service upon it of a restraining
order, injunction, or other appropriate process from a court of
competent jurisdiction prohibiting payment, makes payment to
the executor, administrator, or other qualified representative
of the deceased depositor's estate, shall, to the extent of
such payment, be released from liability to any person claiming
a right to the funds and the receipt or acquittance of the
executor, administrator, or qualified representative to whom
payment is made shall be a valid and sufficient release and
discharge of the banking organization.
 
    Section 90. Repealer. This Act is repealed 5 years after
the effective date of this Act.

Effective Date: 1/1/2010