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91_HB3838ren
HB3838 Re-Enrolled LRB9112086JSgc
1 AN ACT concerning financial institutions.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Illinois Banking Act is amended by
5 changing Section 48.1 and adding Section 48.6 as follows:
6 (205 ILCS 5/48.1) (from Ch. 17, par. 360)
7 Sec. 48.1. Customer financial records; confidentiality.
8 (a) For the purpose of this Section, the term "financial
9 records" means any original, any copy, or any summary of:
10 (1) a document granting signature authority over a
11 deposit or account;
12 (2) a statement, ledger card or other record on any
13 deposit or account, which shows each transaction in or
14 with respect to that account;
15 (3) a check, draft or money order drawn on a bank
16 or issued and payable by a bank; or
17 (4) any other item containing information
18 pertaining to any relationship established in the
19 ordinary course of a bank's business between a bank and
20 its customer, including financial statements or other
21 financial information provided by the customer.
22 (b) This Section does not prohibit:
23 (1) The preparation, examination, handling or
24 maintenance of any financial records by any officer,
25 employee or agent of a bank having custody of the
26 records, or the examination of the records by a certified
27 public accountant engaged by the bank to perform an
28 independent audit.
29 (2) The examination of any financial records by, or
30 the furnishing of financial records by a bank to, any
31 officer, employee or agent of (i) the Commissioner of
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1 Banks and Real Estate, (ii) after May 31, 1997, a state
2 regulatory authority authorized to examine a branch of a
3 State bank located in another state, (iii) the
4 Comptroller of the Currency, (iv) the Federal Reserve
5 Board, or (v) the Federal Deposit Insurance Corporation
6 for use solely in the exercise of his duties as an
7 officer, employee, or agent.
8 (3) The publication of data furnished from
9 financial records relating to customers where the data
10 cannot be identified to any particular customer or
11 account.
12 (4) The making of reports or returns required under
13 Chapter 61 of the Internal Revenue Code of 1986.
14 (5) Furnishing information concerning the dishonor
15 of any negotiable instrument permitted to be disclosed
16 under the Uniform Commercial Code.
17 (6) The exchange in the regular course of business
18 of (i) credit information between a bank and other banks
19 or financial institutions or commercial enterprises,
20 directly or through a consumer reporting agency or (ii)
21 financial records or information derived from financial
22 records between a bank and other banks or financial
23 institutions or commercial enterprises for the purpose of
24 conducting due diligence pursuant to a purchase or sale
25 involving the bank or assets or liabilities of the bank.
26 (7) The furnishing of information to the
27 appropriate law enforcement authorities where the bank
28 reasonably believes it has been the victim of a crime.
29 (8) The furnishing of information under the Uniform
30 Disposition of Unclaimed Property Act.
31 (9) The furnishing of information under the
32 Illinois Income Tax Act and the Illinois Estate and
33 Generation-Skipping Transfer Tax Act.
34 (10) The furnishing of information under the
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1 federal Currency and Foreign Transactions Reporting Act
2 Title 31, United States Code, Section 1051 et seq.
3 (11) The furnishing of information under any other
4 statute that by its terms or by regulations promulgated
5 thereunder requires the disclosure of financial records
6 other than by subpoena, summons, warrant, or court order.
7 (12) The furnishing of information about the
8 existence of an account of a person to a judgment
9 creditor of that person who has made a written request
10 for that information.
11 (13) The exchange in the regular course of business
12 of information between commonly owned banks in connection
13 with a transaction authorized under paragraph (23) of
14 Section 5 and conducted at an affiliate facility.
15 (14) The furnishing of information in accordance
16 with the federal Personal Responsibility and Work
17 Opportunity Reconciliation Act of 1996. Any bank governed
18 by this Act shall enter into an agreement for data
19 exchanges with a State agency provided the State agency
20 pays to the bank a reasonable fee not to exceed its
21 actual cost incurred. A bank providing information in
22 accordance with this item shall not be liable to any
23 account holder or other person for any disclosure of
24 information to a State agency, for encumbering or
25 surrendering any assets held by the bank in response to a
26 lien or order to withhold and deliver issued by a State
27 agency, or for any other action taken pursuant to this
28 item, including individual or mechanical errors, provided
29 the action does not constitute gross negligence or
30 willful misconduct. A bank shall have no obligation to
31 hold, encumber, or surrender assets until it has been
32 served with a subpoena, summons, warrant, court or
33 administrative order, lien, or levy.
34 (15) The exchange in the regular course of business
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1 of information between a bank and any commonly owned
2 affiliate of the bank, subject to the provisions of the
3 Financial Institutions Insurance Sales Law.
4 (16) The furnishing of information to law
5 enforcement authorities, the Illinois Department on Aging
6 and its regional administrative and provider agencies,
7 the Department of Human Services Office of Inspector
8 General, or public guardians, if the bank suspects that a
9 customer who is an elderly or disabled person has been or
10 may become the victim of financial exploitation. For the
11 purposes of this item (16), the term: (i) "elderly
12 person" means a person who is 60 or more years of age,
13 (ii) "disabled person" means a person who has or
14 reasonably appears to the bank to have a physical or
15 mental disability that impairs his or her ability to seek
16 or obtain protection from or prevent financial
17 exploitation, and (iii) "financial exploitation" means
18 tortious or illegal use of the assets or resources of an
19 elderly or disabled person, and includes, without
20 limitation, misappropriation of the elderly or disabled
21 person's assets or resources by undue influence, breach
22 of fiduciary relationship, intimidation, fraud,
23 deception, extortion, or the use of assets or resources
24 in any manner contrary to law. A bank or person
25 furnishing information pursuant to this item (16) shall
26 be entitled to the same rights and protections as a
27 person furnishing information under the Elder Abuse and
28 Neglect Act and the Illinois Domestic Violence Act of
29 1986.
30 (c) Except as otherwise provided by this Act, a bank may
31 not disclose to any person, except to the customer or his
32 duly authorized agent, any financial records or financial
33 information obtained from financial records relating to that
34 customer of that bank unless:
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1 (1) the customer has authorized disclosure to the
2 person;
3 (2) the financial records are disclosed in response
4 to a lawful subpoena, summons, warrant or court order
5 which meets the requirements of subsection (d) of this
6 Section; or
7 (3) the bank is attempting to collect an obligation
8 owed to the bank and the bank complies with the
9 provisions of Section 2I of the Consumer Fraud and
10 Deceptive Business Practices Act.
11 (d) A bank shall disclose financial records under
12 paragraph (2) of subsection (c) of this Section under a
13 lawful subpoena, summons, warrant, or court order only after
14 the bank mails a copy of the subpoena, summons, warrant, or
15 court order to the person establishing the relationship with
16 the bank, if living, and, otherwise his personal
17 representative, if known, at his last known address by first
18 class mail, postage prepaid, unless the bank is specifically
19 prohibited from notifying the person by order of court or by
20 applicable State or federal law. A bank shall not mail a
21 copy of a subpoena to any person pursuant to this subsection
22 if the subpoena was issued by a grand jury under the
23 Statewide Grand Jury Act.
24 (e) Any officer or employee of a bank who knowingly and
25 willfully furnishes financial records in violation of this
26 Section is guilty of a business offense and, upon conviction,
27 shall be fined not more than $1,000.
28 (f) Any person who knowingly and willfully induces or
29 attempts to induce any officer or employee of a bank to
30 disclose financial records in violation of this Section is
31 guilty of a business offense and, upon conviction, shall be
32 fined not more than $1,000.
33 (g) A bank shall be reimbursed for costs that are
34 reasonably necessary and that have been directly incurred in
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1 searching for, reproducing, or transporting books, papers,
2 records, or other data of a customer required or requested to
3 be produced pursuant to a lawful subpoena, summons, warrant,
4 or court order. The Commissioner shall determine the rates
5 and conditions under which payment may be made.
6 (Source: P.A. 90-18, eff. 7-1-97; 90-665, eff. 7-30-98;
7 91-330, eff. 7-29-99.)
8 (205 ILCS 5/48.6 new)
9 Sec. 48.6. Retention of records. Unless a federal law
10 requires otherwise, the Commissioner may by rule prescribe
11 periods of time for which banks operating under this Act must
12 retain records and after the expiration of which, the bank
13 may destroy those records. No liability shall accrue against
14 the bank, the Commissioner, or this State for the destruction
15 of records according to rules of the Commissioner promulgated
16 under the authority of this Section. In any cause or
17 proceeding in which any records may be called in question or
18 be demanded by any bank, a showing of the expiration of the
19 period so prescribed shall be sufficient excuse for failure
20 to produce them.
21 Section 10. The Illinois Savings and Loan Act of 1985 is
22 amended by changing Sections 1-10.14, 1-10.21, and 3-8 as
23 follows:
24 (205 ILCS 105/1-10.14) (from Ch. 17, par. 3301-10.14)
25 Sec. 1-10.14. "Person": an individual, limited liability
26 company, partnership, joint venture, trust, estate,
27 unincorporated association, or corporation.
28 (Source: P.A. 84-543.)
29 (205 ILCS 105/1-10.21) (from Ch. 17, par. 3301-10.21)
30 Sec. 1-10.21. "Service Corporation": any corporation or
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1 limited liability company which is 90% or more owned by one
2 or more associations, whose purpose or purposes are
3 reasonably incident to the accomplishment of the express
4 powers conferred upon associations by this Act or a
5 corporation or limited liability company chartered for any
6 purpose whatsoever by at least one association or a
7 corporation or limited liability company in which an
8 association has a controlling interest, and the ownership of
9 all of whose stock or ownership interest is subject to the
10 regulations of the Commissioner.
11 (Source: P.A. 84-543.)
12 (205 ILCS 105/3-8) (from Ch. 17, par. 3303-8)
13 Sec. 3-8. Access to books and records; communication
14 with members.
15 (a) Every member or holder of capital shall have the
16 right to inspect the books and records of the association
17 that pertain to his account. Otherwise, the right of
18 inspection and examination of the books and records shall be
19 limited as provided in this Act, and no other person shall
20 have access to the books and records or shall be entitled to
21 a list of the members.
22 (b) For the purpose of this Section, the term "financial
23 records" means any original, any copy, or any summary of (i)
24 a document granting signature authority over a deposit or
25 account; (ii) a statement, ledger card, or other record on
26 any deposit or account that shows each transaction in or with
27 respect to that account; (iii) a check, draft, or money order
28 drawn on an association or issued and payable by an
29 association; or (iv) any other item containing information
30 pertaining to any relationship established in the ordinary
31 course of an association's business between an association
32 and its customer.
33 (c) This Section does not prohibit:
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1 (1) The preparation, examination, handling, or
2 maintenance of any financial records by any officer,
3 employee, or agent of an association having custody of
4 those records or the examination of those records by a
5 certified public accountant engaged by the association to
6 perform an independent audit;
7 (2) The examination of any financial records by, or
8 the furnishing of financial records by an association to,
9 any officer, employee, or agent of the Commissioner of
10 Banks and Real Estate, Federal Savings and Loan Insurance
11 Corporation and its successors, Federal Deposit Insurance
12 Corporation, Resolution Trust Corporation and its
13 successors, Federal Home Loan Bank Board and its
14 successors, Office of Thrift Supervision, Federal Housing
15 Finance Board, Board of Governors of the Federal Reserve
16 System, any Federal Reserve Bank, or the Office of the
17 Comptroller of the Currency for use solely in the
18 exercise of his duties as an officer, employee, or agent;
19 (3) The publication of data furnished from
20 financial records relating to members or holders of
21 capital where the data cannot be identified to any
22 particular member, holder of capital, or account;
23 (4) The making of reports or returns required under
24 Chapter 61 of the Internal Revenue Code of 1986;
25 (5) Furnishing information concerning the dishonor
26 of any negotiable instrument permitted to be disclosed
27 under the Uniform Commercial Code;
28 (6) The exchange in the regular course of business
29 of credit information between an association and other
30 associations or financial institutions or commercial
31 enterprises, directly or through a consumer reporting
32 agency;
33 (7) The furnishing of information to the
34 appropriate law enforcement authorities where the
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1 association reasonably believes it has been the victim of
2 a crime;
3 (8) The furnishing of information pursuant to the
4 Uniform Disposition of Unclaimed Property Act;
5 (9) The furnishing of information pursuant to the
6 Illinois Income Tax Act and the Illinois Estate and
7 Generation-Skipping Transfer Tax Act;
8 (10) The furnishing of information pursuant to the
9 federal "Currency and Foreign Transactions Reporting
10 Act", (Title 31, United States Code, Section 1051 et
11 seq.);
12 (11) The furnishing of information pursuant to any
13 other statute that by its terms or by regulations
14 promulgated thereunder requires the disclosure of
15 financial records other than by subpoena, summons,
16 warrant, or court order;
17 (12) The exchange of information between an
18 association and an affiliate of the association; as used
19 in this item, "affiliate" includes any company,
20 partnership, or organization that controls, is controlled
21 by, or is under common control with an association.
22 (13) The furnishing of information in accordance
23 with the federal Personal Responsibility and Work
24 Opportunity Reconciliation Act of 1996. Any association
25 governed by this Act shall enter into an agreement for
26 data exchanges with a State agency provided the State
27 agency pays to the association a reasonable fee not to
28 exceed its actual cost incurred. An association
29 providing information in accordance with this item shall
30 not be liable to any account holder or other person for
31 any disclosure of information to a State agency, for
32 encumbering or surrendering any assets held by the
33 association in response to a lien or order to withhold
34 and deliver issued by a State agency, or for any other
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1 action taken pursuant to this item, including individual
2 or mechanical errors, provided the action does not
3 constitute gross negligence or willful misconduct. An
4 association shall have no obligation to hold, encumber,
5 or surrender assets until it has been served with a
6 subpoena, summons, warrant, court or administrative
7 order, lien, or levy.
8 (14) The furnishing of information to law
9 enforcement authorities, the Illinois Department on Aging
10 and its regional administrative and provider agencies,
11 the Department of Human Services Office of Inspector
12 General, or public guardians, if the association suspects
13 that a customer who is an elderly or disabled person has
14 been or may become the victim of financial exploitation.
15 For the purposes of this item (14), the term: (i)
16 "elderly person" means a person who is 60 or more years
17 of age, (ii) "disabled person" means a person who has or
18 reasonably appears to the association to have a physical
19 or mental disability that impairs his or her ability to
20 seek or obtain protection from or prevent financial
21 exploitation, and (iii) "financial exploitation" means
22 tortious or illegal use of the assets or resources of an
23 elderly or disabled person, and includes, without
24 limitation, misappropriation of the elderly or disabled
25 person's assets or resources by undue influence, breach
26 of fiduciary relationship, intimidation, fraud,
27 deception, extortion, or the use of assets or resources
28 in any manner contrary to law. An association or person
29 furnishing information pursuant to this item (14) shall
30 be entitled to the same rights and protections as a
31 person furnishing information under the Elder Abuse and
32 Neglect Act and the Illinois Domestic Violence Act of
33 1986.
34 (d) An association may not disclose to any person,
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1 except to the member or holder of capital or his duly
2 authorized agent, any financial records relating to that
3 member or holder of capital of that association unless:
4 (1) The member or holder of capital has authorized
5 disclosure to the person; or
6 (2) The financial records are disclosed in response
7 to a lawful subpoena, summons, warrant, or court order
8 that meets the requirements of subsection (e) of this
9 Section.
10 (e) An association shall disclose financial records
11 under subsection (d) of this Section pursuant to a lawful
12 subpoena, summons, warrant, or court order only after the
13 association mails a copy of the subpoena, summons, warrant,
14 or court order to the person establishing the relationship
15 with the association, if living, and, otherwise, his personal
16 representative, if known, at his last known address by first
17 class mail, postage prepaid, unless the association is
18 specifically prohibited from notifying that person by order
19 of court.
20 (f) (1) Any officer or employee of an association who
21 knowingly and willfully furnishes financial records in
22 violation of this Section is guilty of a business offense
23 and, upon conviction, shall be fined not more than $1,000.
24 (2) Any person who knowingly and willfully induces or
25 attempts to induce any officer or employee of an association
26 to disclose financial records in violation of this Section is
27 guilty of a business offense and, upon conviction, shall be
28 fined not more than $1,000.
29 (g) However, if any member desires to communicate with
30 the other members of the association with reference to any
31 question pending or to be presented at a meeting of the
32 members, the association shall give him upon request a
33 statement of the approximate number of members entitled to
34 vote at the meeting and an estimate of the cost of preparing
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1 and mailing the communication. The requesting member then
2 shall submit the communication to the Commissioner who, if he
3 finds it to be appropriate and truthful, shall direct that it
4 be prepared and mailed to the members upon the requesting
5 member's payment or adequate provision for payment of the
6 expenses of preparation and mailing.
7 (h) An Association shall be reimbursed for costs that
8 are necessary and that have been directly incurred in
9 searching for, reproducing, or transporting books, papers,
10 records, or other data of a customer required to be
11 reproduced pursuant to a lawful subpoena, warrant, or court
12 order.
13 (Source: P.A. 89-508, eff. 7-3-96; 90-18, eff. 7-1-97.)
14 Section 15. The Savings Bank Act is amended by changing
15 Sections 1007.90, 1007.105, and 4013 as follows:
16 (205 ILCS 205/1007.90) (from Ch. 17, par. 7301-7.90)
17 Sec. 1007.90. "Person" means an individual, corporation,
18 limited liability company, partnership, joint venture, trust,
19 estate, or unincorporated association.
20 (Source: P.A. 86-1213.)
21 (205 ILCS 205/1007.105) (from Ch. 17, par. 7301-7.105)
22 Sec. 1007.105. "Service corporation" means any
23 corporation or limited liability company that is 51% or more
24 owned by one or more savings banks, or by savings banks and
25 other depository institutions, whose purposes are reasonably
26 incident to the accomplishment of the powers conferred upon
27 savings banks by this Act.
28 (Source: P.A. 91-97, eff. 7-9-99.)
29 (205 ILCS 205/4013) (from Ch. 17, par. 7304-13)
30 Sec. 4013. Access to books and records; communication
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1 with members and shareholders.
2 (a) Every member or shareholder shall have the right to
3 inspect books and records of the savings bank that pertain to
4 his accounts. Otherwise, the right of inspection and
5 examination of the books and records shall be limited as
6 provided in this Act, and no other person shall have access
7 to the books and records nor shall be entitled to a list of
8 the members or shareholders.
9 (b) For the purpose of this Section, the term "financial
10 records" means any original, any copy, or any summary of (1)
11 a document granting signature authority over a deposit or
12 account; (2) a statement, ledger card, or other record on any
13 deposit or account that shows each transaction in or with
14 respect to that account; (3) a check, draft, or money order
15 drawn on a savings bank or issued and payable by a savings
16 bank; or (4) any other item containing information pertaining
17 to any relationship established in the ordinary course of a
18 savings bank's business between a savings bank and its
19 customer.
20 (c) This Section does not prohibit:
21 (1) The preparation examination, handling, or
22 maintenance of any financial records by any officer,
23 employee, or agent of a savings bank having custody of
24 records or examination of records by a certified public
25 accountant engaged by the savings bank to perform an
26 independent audit.
27 (2) The examination of any financial records by, or
28 the furnishing of financial records by a savings bank to,
29 any officer, employee, or agent of the Commissioner of
30 Banks and Real Estate or the Federal Deposit Insurance
31 Corporation for use solely in the exercise of his duties
32 as an officer, employee, or agent.
33 (3) The publication of data furnished from
34 financial records relating to members or holders of
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1 capital where the data cannot be identified to any
2 particular member, shareholder, or account.
3 (4) The making of reports or returns required under
4 Chapter 61 of the Internal Revenue Code of 1986.
5 (5) Furnishing information concerning the dishonor
6 of any negotiable instrument permitted to be disclosed
7 under the Uniform Commercial Code.
8 (6) The exchange in the regular course of business
9 of credit information between a savings bank and other
10 savings banks or financial institutions or commercial
11 enterprises, directly or through a consumer reporting
12 agency.
13 (7) The furnishing of information to the
14 appropriate law enforcement authorities where the savings
15 bank reasonably believes it has been the victim of a
16 crime.
17 (8) The furnishing of information pursuant to the
18 Uniform Disposition of Unclaimed Property Act.
19 (9) The furnishing of information pursuant to the
20 Illinois Income Tax Act and the Illinois Estate and
21 Generation-Skipping Transfer Tax Act.
22 (10) The furnishing of information pursuant to the
23 federal "Currency and Foreign Transactions Reporting
24 Act", (Title 31, United States Code, Section 1051 et
25 seq.).
26 (11) The furnishing of information pursuant to any
27 other statute which by its terms or by regulations
28 promulgated thereunder requires the disclosure of
29 financial records other than by subpoena, summons,
30 warrant, or court order.
31 (12) The furnishing of information in accordance
32 with the federal Personal Responsibility and Work
33 Opportunity Reconciliation Act of 1996. Any savings bank
34 governed by this Act shall enter into an agreement for
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1 data exchanges with a State agency provided the State
2 agency pays to the savings bank a reasonable fee not to
3 exceed its actual cost incurred. A savings bank
4 providing information in accordance with this item shall
5 not be liable to any account holder or other person for
6 any disclosure of information to a State agency, for
7 encumbering or surrendering any assets held by the
8 savings bank in response to a lien or order to withhold
9 and deliver issued by a State agency, or for any other
10 action taken pursuant to this item, including individual
11 or mechanical errors, provided the action does not
12 constitute gross negligence or willful misconduct. A
13 savings bank shall have no obligation to hold, encumber,
14 or surrender assets until it has been served with a
15 subpoena, summons, warrant, court or administrative
16 order, lien, or levy.
17 (13) The furnishing of information to law
18 enforcement authorities, the Illinois Department on Aging
19 and its regional administrative and provider agencies,
20 the Department of Human Services Office of Inspector
21 General, or public guardians, if the savings bank
22 suspects that a customer who is an elderly or disabled
23 person has been or may become the victim of financial
24 exploitation. For the purposes of this item (13), the
25 term: (i) "elderly person" means a person who is 60 or
26 more years of age, (ii) "disabled person" means a person
27 who has or reasonably appears to the savings bank to have
28 a physical or mental disability that impairs his or her
29 ability to seek or obtain protection from or prevent
30 financial exploitation, and (iii) "financial
31 exploitation" means tortious or illegal use of the assets
32 or resources of an elderly or disabled person, and
33 includes, without limitation, misappropriation of the
34 elderly or disabled person's assets or resources by undue
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1 influence, breach of fiduciary relationship,
2 intimidation, fraud, deception, extortion, or the use of
3 assets or resources in any manner contrary to law. A
4 savings bank or person furnishing information pursuant to
5 this item (13) shall be entitled to the same rights and
6 protections as a person furnishing information under the
7 Elder Abuse and Neglect Act and the Illinois Domestic
8 Violence Act of 1986.
9 (d) A savings bank may not disclose to any person,
10 except to the member or holder of capital or his duly
11 authorized agent, any financial records relating to that
12 member or shareholder of the savings bank unless:
13 (1) the member or shareholder has authorized
14 disclosure to the person; or
15 (2) the financial records are disclosed in response
16 to a lawful subpoena, summons, warrant, or court order
17 that meets the requirements of subsection (e) of this
18 Section.
19 (e) A savings bank shall disclose financial records
20 under subsection (d) of this Section pursuant to a lawful
21 subpoena, summons, warrant, or court order only after the
22 savings bank mails a copy of the subpoena, summons, warrant,
23 or court order to the person establishing the relationship
24 with the savings bank, if living, and otherwise, his personal
25 representative, if known, at his last known address by first
26 class mail, postage prepaid, unless the savings bank is
27 specifically prohibited from notifying the person by order of
28 court.
29 (f) Any officer or employee of a savings bank who
30 knowingly and willfully furnishes financial records in
31 violation of this Section is guilty of a business offense
32 and, upon conviction, shall be fined not more than $1,000.
33 (g) Any person who knowingly and willfully induces or
34 attempts to induce any officer or employee of a savings bank
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1 to disclose financial records in violation of this Section is
2 guilty of a business offense and, upon conviction, shall be
3 fined not more than $1,000.
4 (h) If any member or shareholder desires to communicate
5 with the other members or shareholders of the savings bank
6 with reference to any question pending or to be presented at
7 an annual or special meeting, the savings bank shall give
8 that person, upon request, a statement of the approximate
9 number of members or shareholders entitled to vote at the
10 meeting and an estimate of the cost of preparing and mailing
11 the communication. The requesting member shall submit the
12 communication to the Commissioner who, upon finding it to be
13 appropriate and truthful, shall direct that it be prepared
14 and mailed to the members upon the requesting member's or
15 shareholder's payment or adequate provision for payment of
16 the expenses of preparation and mailing.
17 (i) A savings bank shall be reimbursed for costs that
18 are necessary and that have been directly incurred in
19 searching for, reproducing, or transporting books, papers,
20 records, or other data of a customer required to be
21 reproduced pursuant to a lawful subpoena, warrant, or court
22 order.
23 (j) Notwithstanding the provisions of this Section, a
24 savings bank may sell or otherwise make use of lists of
25 customers' names and addresses. All other information
26 regarding a customer's account are subject to the disclosure
27 provisions of this Section. At the request of any customer,
28 that customer's name and address shall be deleted from any
29 list that is to be sold or used in any other manner beyond
30 identification of the customer's accounts.
31 (Source: P.A. 89-508, eff. 7-3-96; 90-18, eff. 7-1-97.)
32 Section 20. The Illinois Credit Union Act is amended by
33 changing Sections 10, 15, 20, 22, 31, 32, 33, 35, and 52 as
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1 follows:
2 (205 ILCS 305/10) (from Ch. 17, par. 4411)
3 Sec. 10. Credit union records; member financial records.
4 (1) A credit union shall establish and maintain books,
5 records, accounting systems and procedures which accurately
6 reflect its operations and which enable the Department to
7 readily ascertain the true financial condition of the credit
8 union and whether it is complying with this Act.
9 (2) A photostatic or photographic reproduction of any
10 credit union records shall be admissible as evidence of
11 transactions with the credit union.
12 (3) (a) For the purpose of this Section, the term
13 "financial records" means any original, any copy, or any
14 summary of (1) a document granting signature authority
15 over an account, (2) a statement, ledger card or other
16 record on any account which shows each transaction in or
17 with respect to that account, (3) a check, draft or money
18 order drawn on a financial institution or other entity or
19 issued and payable by or through a financial institution
20 or other entity, or (4) any other item containing
21 information pertaining to any relationship established in
22 the ordinary course of business between a credit union
23 and its member.
24 (b) This Section does not prohibit:
25 (1) The preparation, examination, handling or
26 maintenance of any financial records by any officer,
27 employee or agent of a credit union having custody
28 of such records, or the examination of such records
29 by a certified public accountant engaged by the
30 credit union to perform an independent audit;
31 (2) The examination of any financial records
32 by or the furnishing of financial records by a
33 credit union to any officer, employee or agent of
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1 the Department, the National Credit Union
2 Administration, Federal Reserve board or any insurer
3 of share accounts for use solely in the exercise of
4 his duties as an officer, employee or agent;
5 (3) The publication of data furnished from
6 financial records relating to members where the data
7 cannot be identified to any particular customer of
8 account;
9 (4) The making of reports or returns required
10 under Chapter 61 of the Internal Revenue Code of
11 1954;
12 (5) Furnishing information concerning the
13 dishonor of any negotiable instrument permitted to
14 be disclosed under the Uniform Commercial Code;
15 (6) The exchange in the regular course of
16 business of credit information between a credit
17 union and other credit unions or financial
18 institutions or commercial enterprises, directly or
19 through a consumer reporting agency;
20 (7) The furnishing of information to the
21 appropriate law enforcement authorities where the
22 credit union reasonably believes it has been the
23 victim of a crime;
24 (8) The furnishing of information pursuant to
25 the Uniform Disposition of Unclaimed Property Act;
26 (9) The furnishing of information pursuant to
27 the Illinois Income Tax Act and the Illinois Estate
28 and Generation-Skipping Transfer Tax Act;
29 (10) The furnishing of information pursuant to
30 the federal "Currency and Foreign Transactions
31 Reporting Act", Title 31, United States Code,
32 Section 1051 et sequentia; or
33 (11) The furnishing of information pursuant to
34 any other statute which by its terms or by
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1 regulations promulgated thereunder requires the
2 disclosure of financial records other than by
3 subpoena, summons, warrant or court order.
4 (12) The furnishing of information in
5 accordance with the federal Personal Responsibility
6 and Work Opportunity Reconciliation Act of 1996. Any
7 credit union governed by this Act shall enter into
8 an agreement for data exchanges with a State agency
9 provided the State agency pays to the credit union a
10 reasonable fee not to exceed its actual cost
11 incurred. A credit union providing information in
12 accordance with this item shall not be liable to any
13 account holder or other person for any disclosure of
14 information to a State agency, for encumbering or
15 surrendering any assets held by the credit union in
16 response to a lien or order to withhold and deliver
17 issued by a State agency, or for any other action
18 taken pursuant to this item, including individual or
19 mechanical errors, provided the action does not
20 constitute gross negligence or willful misconduct. A
21 credit union shall have no obligation to hold,
22 encumber, or surrender assets until it has been
23 served with a subpoena, summons, warrant, court or
24 administrative order, lien, or levy.
25 (13) The furnishing of information to law
26 enforcement authorities, the Illinois Department on
27 Aging and its regional administrative and provider
28 agencies, the Department of Human Services Office of
29 Inspector General, or public guardians, if the
30 credit union suspects that a member who is an
31 elderly or disabled person has been or may become
32 the victim of financial exploitation. For the
33 purposes of this item (13), the term: (i) "elderly
34 person" means a person who is 60 or more years of
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1 age, (ii) "disabled person" means a person who has
2 or reasonably appears to the credit union to have a
3 physical or mental disability that impairs his or
4 her ability to seek or obtain protection from or
5 prevent financial exploitation, and (iii) "financial
6 exploitation" means tortious or illegal use of the
7 assets or resources of an elderly or disabled
8 person, and includes, without limitation,
9 misappropriation of the elderly or disabled person's
10 assets or resources by undue influence, breach of
11 fiduciary relationship, intimidation, fraud,
12 deception, extortion, or the use of assets or
13 resources in any manner contrary to law. A credit
14 union or person furnishing information pursuant to
15 this item (13) shall be entitled to the same rights
16 and protections as a person furnishing information
17 under the Elder Abuse and Neglect Act and the
18 Illinois Domestic Violence Act of 1986.
19 (c) A credit union may not disclose to any person,
20 except to the member or his duly authorized agent, any
21 financial records relating to that member of the credit union
22 unless:
23 (1) the member has authorized disclosure to the
24 person;
25 (2) the financial records are disclosed in response
26 to a lawful subpoena, summons, warrant or court order
27 that meets the requirements of subparagraph (d) of this
28 Section; or
29 (3) the credit union is attempting to collect an
30 obligation owed to the credit union and the credit union
31 complies with the provisions of Section 2I of the
32 Consumer Fraud and Deceptive Business Practices Act.
33 (d) A credit union shall disclose financial records
34 under subparagraph (c)(2) of this Section pursuant to a
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1 lawful subpoena, summons, warrant or court order only after
2 the credit union mails a copy of the subpoena, summons,
3 warrant or court order to the person establishing the
4 relationship with the credit union, if living, and otherwise
5 his personal representative, if known, at his last known
6 address by first class mail, postage prepaid unless the
7 credit union is specifically prohibited from notifying the
8 person by order of court or by applicable State or federal
9 law. In the case of a grand jury subpoena, a credit union
10 shall not mail a copy of a subpoena to any person pursuant to
11 this subsection if the subpoena was issued by a grand jury
12 under the Statewide Grand Jury Act or notifying the person
13 would constitute a violation of the federal Right to
14 Financial Privacy Act of 1978.
15 (e) (1) Any officer or employee of a credit union who
16 knowingly and wilfully furnishes financial records in
17 violation of this Section is guilty of a business offense
18 and upon conviction thereof shall be fined not more than
19 $1,000.
20 (2) Any person who knowingly and wilfully induces
21 or attempts to induce any officer or employee of a credit
22 union to disclose financial records in violation of this
23 Section is guilty of a business offense and upon
24 conviction thereof shall be fined not more than $1,000.
25 (f) A credit union shall be reimbursed for costs which
26 are reasonably necessary and which have been directly
27 incurred in searching for, reproducing or transporting books,
28 papers, records or other data of a member required or
29 requested to be produced pursuant to a lawful subpoena,
30 summons, warrant or court order.
31 (Source: P.A. 89-603, eff. 8-2-96; 90-18, eff. 7-1-97.)
32 (205 ILCS 305/15) (from Ch. 17, par. 4416)
33 Sec. 15. Membership defined.
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1 (1) The membership of a credit union shall be limited to
2 and consist of the subscribers to the articles of
3 incorporation and such other persons within the common bond,
4 as defined in this Act and as set forth in the credit union's
5 articles of incorporation, as have been duly admitted
6 members, have paid the required entrance fee or membership
7 fee, or both, if any, have subscribed for one or more shares,
8 and have paid the initial installment thereon, and have
9 complied with such other requirements as the articles of
10 incorporation or bylaws specify. Two or more persons within
11 the common bond who have jointly subscribed for one or more
12 shares under a joint account and have complied with all
13 membership requirements may each be admitted to membership.
14 The surviving spouse of a credit union member may, within 6
15 months of the member's death, become a member of the credit
16 union by paying the required entrance fee or membership fee
17 or both, if any, by subscribing for one or more shares and
18 paying the initial installment thereon, and by complying with
19 such other requirements as the articles of incorporation or
20 bylaws specify.
21 (2) Any member may withdraw from a credit union at any
22 time upon giving notice of withdrawal as required by the
23 bylaws.
24 (3) Any member may be expelled by a 2/3 vote of the
25 members present at any regular or special meeting called to
26 consider the matter, but only after an opportunity has been
27 given to the member to be heard.
28 (4) A member who has caused a loss to the credit union
29 or who has failed to maintain one or more shares at the
30 credit union may be expelled by a majority vote of a quorum
31 of directors if the board has adopted a policy providing for
32 expulsion under those circumstances. In maintaining and
33 enforcing a this policy based on loss, the board may
34 consider, without limitation, a member's failure to pay
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1 amounts due under a loan, failure to provide collected funds
2 to cover withdrawals or personal share drafts or credit union
3 drafts where the member is a remitter, or failure to pay fees
4 or charges due the credit union. If a the policy is adopted
5 by the board pursuant to this subsection (4), written notice
6 of the policy and the effective date of the policy shall be
7 mailed to each member of the credit union at the member's
8 current address appearing on the records of the credit union.
9 The policy shall be mailed to members not fewer than 30 days
10 prior to the effective date of the policy. In addition, new
11 members shall be provided written notice of the policy prior
12 to or upon applying for membership.
13 (5) All or any part of the amount paid on shares of a
14 withdrawing member or expelled member with any declared
15 dividends or interest on the date of withdrawal or expulsion
16 must, after deducting all amounts due from the member to the
17 credit union, be paid to him. The credit union may require
18 not more than 60 days' written notice of intention to
19 withdraw shares, but a notice of withdrawal does not entitle
20 the member to any preferred or prior claim in the event of
21 liquidation. Withdrawing or expelled members have no further
22 rights in the credit union, but are not, by withdrawal or
23 expulsion, released from any obligation they owe to the
24 credit union.
25 (6) A member who has caused a loss to the credit union
26 may be denied any or all credit union services in accordance
27 with board policy, however, members who are denied services
28 shall be allowed to maintain a share account and to vote on
29 all issues put to a vote of the membership.
30 (Source: P.A. 88-235; 89-603, eff. 8-2-96.)
31 (205 ILCS 305/20) (from Ch. 17, par. 4421)
32 Sec. 20. Election or appointment of officials.
33 (1) The credit union shall be directed by a Board of
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1 Directors consisting of no less than 7 in number, to be
2 elected at the annual meeting by and from the members.
3 Directors shall hold office until the next annual meeting,
4 unless their terms are staggered. Upon amendment of its
5 bylaws, a credit union may divide the Directors into 2 or 3
6 classes with each class as nearly equal in number as
7 possible. The term of office of the directors of the first
8 class shall expire at the first annual meeting after their
9 election, that of the second class shall expire at the second
10 annual meeting after their election, and that of the third
11 class, if any, shall expire at the third annual meeting after
12 their election. At each annual meeting after the
13 classification, the number of directors equal to the number
14 of directors whose terms expire at the time of the meeting
15 shall be elected to hold office until the second succeeding
16 annual meeting if there are 2 classes or until the third
17 succeeding annual meeting if there are 3 classes. A Director
18 shall hold office for the term for which he or she is elected
19 and until his or her successor is elected and qualified. In
20 all elections for Directors, every member has the right to
21 vote, in person or by proxy, the number of shares owned by
22 him, or in the case of a member other than a natural person,
23 the member's one vote, for as many persons as there are
24 Directors to be elected, or to cumulate such shares, and give
25 one candidate as many votes as the number of Directors
26 multiplied by the number of his shares equals, or to
27 distribute them on the same principle among as many
28 candidates as he may desire and the Directors shall not be
29 elected in any other manner. Shares held in a joint account
30 owned by more than one member may be voted by any one of the
31 members, however, the number of cumulative votes cast may not
32 exceed a total equal to the number of shares multiplied by
33 the number of directors to be elected. A majority of the
34 shares entitled to vote shall be represented either in person
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1 or by proxy for the election of Directors. Each Director
2 shall wholly take and subscribe to an oath that he will
3 diligently and honestly perform his duties in administering
4 the affairs of the credit union, that while he may delegate
5 to another the performance of those administrative duties he
6 is not thereby relieved from his responsibility for their
7 performance, that he will not knowingly violate or willingly
8 permit to be violated any law applicable to the credit union,
9 and that he is the owner of at least one share of the credit
10 union.
11 (2) The Board of Directors shall appoint from among the
12 members of the credit union, a Supervisory Committee of not
13 less than 3 members at the organization meeting and within 30
14 days following each annual meeting of the members for such
15 terms as the bylaws provide. Members of the Supervisory
16 Committee may, but need not be, on the Board of Directors,
17 but shall not be officers of the credit union, or members of
18 the Credit Committee, or the credit manager if no Credit
19 Committee has been appointed.
20 (3) The Board of Directors may shall appoint, from among
21 the members of the credit union, a Credit Committee
22 consisting of an odd number, not less than 3 for such terms
23 as the bylaws provide. Members of the Credit Committee may,
24 but need not be, Directors or officers of the credit union,
25 but shall not be members of the Supervisory Committee.
26 (4) The Board of Directors shall appoint from among the
27 members of the credit union a Membership Committee of one or
28 more persons. It shall act upon all applications for
29 membership and submit a report of its actions to the Board of
30 Directors at the next monthly meeting for review.
31 (Source: P.A. 88-235; 89-74, eff. 6-30-95.)
32 (205 ILCS 305/22) (from Ch. 17, par. 4423)
33 Sec. 22. Vacancies. The Board of Directors shall, by
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1 appointment from among the credit union members, fill any
2 vacancies occurring on the Board for the remainder of the
3 Director's unexpired term or until a successor is elected and
4 qualified. The Board shall, by appointment from among the
5 credit union members, fill vacancies in the Membership
6 Committee, Credit Committee, or credit manager if no Credit
7 Committee has been appointed, and Supervisory Committees.
8 (Source: P.A. 81-329.)
9 (205 ILCS 305/31) (from Ch. 17, par. 4432)
10 Sec. 31. Supervision of loans Authority of Credit
11 Committee. The Credit Committee shall have the general
12 supervision of all loans and lines of credit to members. If
13 no Credit Committee has been appointed, the credit manager
14 shall have the general supervision of all loans and lines of
15 credit to members.
16 (Source: P.A. 81-329.)
17 (205 ILCS 305/32) (from Ch. 17, par. 4433)
18 Sec. 32. Meetings of Credit Committee. If a Credit
19 Committee has been appointed by the board, the provisions of
20 this Section shall apply. The Credit Committee shall meet as
21 often as the operations of the credit union require and not
22 less frequently than once a month to consider applications
23 for loans and lines of credit. Unless a greater percentage
24 is required in the credit union's bylaws, a majority of the
25 Credit Committee shall constitute a quorum. No loan shall be
26 made unless it is approved, in writing, by a majority of the
27 Committee who are present at a meeting at which a quorum is
28 present and at which the application is considered. The
29 Credit Committee shall report to the Directors at each Board
30 meeting on all meetings held and actions taken since the last
31 Board meeting.
32 (Source: P.A. 81-329.)
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1 (205 ILCS 305/33) (from Ch. 17, par. 4434)
2 Sec. 33. Credit manager.
3 (1) The Credit Committee may or, if no Credit Committee
4 has been appointed, the Board of Directors shall appoint a
5 credit manager who shall be empowered to approve or
6 disapprove loans and lines of credit under conditions
7 prescribed by the Board of Directors. The Credit Committee
8 or credit manager may appoint one or more loan officers with
9 the power to approve loans and lines of credit, subject to
10 such limitations or conditions as may be prescribed by the
11 Board of Directors. The credit manager and any loan officers
12 appointed by the Credit Committee or the credit manager shall
13 keep written records of all transactions and shall report, in
14 writing, to the Credit Committee if a Credit Committee has
15 been appointed, otherwise which shall in turn report, in
16 writing, to the Directors at each Board meeting.
17 (2) Applications for loans or lines of credit not
18 approved by a loan officer shall be reviewed and acted upon
19 by the Credit Committee or credit manager.
20 (3) The loan officers must keep written records of all
21 loans or lines of credit granted or refused and any other
22 transactions and submit a report to the Credit Committee or
23 credit manager at least once each month.
24 (Source: P.A. 81-329.)
25 (205 ILCS 305/35) (from Ch. 17, par. 4436)
26 Sec. 35. Suspension and removal of officials.
27 (1) The Supervisory Committee, by a unanimous vote of
28 the whole committee, may suspend any member of the Credit
29 Committee or the credit manager if no Credit Committee has
30 been appointed and. The Supervisory Committee shall report
31 such action to the Board of Directors for appropriate action.
32 (2) The Supervisory Committee, by a unanimous vote of
33 the whole committee, may suspend any officer or member of the
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1 Board of Directors until the next members' meeting, which
2 shall be held not less than 7 nor more than 21 days after
3 such suspension. At such meeting, the suspension shall be
4 acted upon by the members, who shall either confirm or reject
5 it by majority vote.
6 (Source: P.A. 81-329.)
7 (205 ILCS 305/52) (from Ch. 17, par. 4453)
8 Sec. 52. Loans to directors, officers, Credit Committee,
9 credit manager, and Supervisory Committee members. A credit
10 union may make loans to its directors, officers, Credit
11 Committee members, credit manager, and Supervisory Committee
12 members, provided that the loan complies with all lawful
13 requirements under this Act with respect to loans to other
14 borrowers. No loan may be made to or cosigned by any
15 director, officer, Credit Committee member, credit manager if
16 no Credit Committee has been appointed, or Supervisory
17 Committee member which would cause the aggregate amount of
18 all loans then outstanding to or cosigned by all directors,
19 officers, Credit Committee members, credit manager if no
20 Credit Committee has been appointed, or Supervisory Committee
21 members to exceed 20% of the unimpaired capital and surplus
22 of the credit union.
23 (Source: P.A. 85-1273.)
24 Section 99. Effective date. This Act takes effect upon
25 becoming law.
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