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91_SB0890enr
SB890 Enrolled LRB9105132JSpcA
1 AN ACT to create the Illinois Financial Institutions Year
2 2000 Safety and Soundness Act.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 1. Short title. This Act may be cited as the
6 Illinois Financial Institutions Year 2000 Safety and
7 Soundness Act.
8 Section 5. Findings and declarations of policy. The
9 General Assembly hereby finds and declares that:
10 (1) the economic strength and general welfare of
11 Illinois depends on strong, safe and sound financial
12 institutions that command the highest levels of public
13 confidence among the citizens of this State;
14 (2) Illinois financial institutions are highly
15 monitored and closely supervised by federal and state
16 regulatory agencies which impose strict compliance
17 standards and conduct regular and frequent examinations
18 on these institutions;
19 (3) countless computer systems, software programs,
20 microchips, and integrated circuits have been created,
21 distributed, installed, and relied upon throughout this
22 State and the world which are not capable of recognizing
23 certain dates in 1999 and after December 31, 1999, and
24 which will read dates in the year 2000 and thereafter as
25 if those dates represent the year 1900 or thereafter, or
26 which will fail to process those dates (commonly referred
27 to as the "Year 2000 Problem");
28 (4) the federal and state regulatory agencies which
29 regulate Illinois financial institutions have required
30 these institutions to undergo exhaustive planning,
31 remediation, testing, and contingency preparedness to
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1 properly address the Year 2000 Problem with respect to
2 both internal and external mission critical computer
3 systems, internal and external non-mission critical
4 computer systems, third party vendors, customers, and
5 other possible sources of business interruption, and are
6 closely monitoring, examining, and supervising these
7 efforts on an institution by institution basis;
8 (5) Illinois financial institutions have expended
9 hundreds of millions of dollars on reprogramming,
10 replacing, and testing their computer systems to properly
11 address the Year 2000 Problem and continue to be
12 accountable to their federal and state regulatory
13 agencies for meeting the strict safety and soundness
14 standards imposed on them in connection with the Year
15 2000 Problem;
16 (6) Illinois financial institutions are integral to
17 the payments system and credit and savings bases relied
18 on by all other businesses, governmental entities, and
19 citizens of this State irrespective of whether those
20 businesses, governmental entities, and citizens have
21 addressed and implemented solutions in connection with
22 the Year 2000 Problem; and
23 (7) it is in the interests of this State to
24 recognize the unique and rigorous standards required of
25 Illinois financial institutions in connection with the
26 Year 2000 Problem and their integral role in maintaining
27 the payments system and credit and savings bases in this
28 State and to preserve public confidence in these
29 institutions and ensure their safety and soundness,
30 thereby protecting and enhancing the economy and general
31 welfare of this State, by providing uniform and judicious
32 legal standards for Illinois financial institutions in
33 connection with the Year 2000 Problem.
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1 Section 10. Definitions. For the purposes of this Act:
2 (a) The term "Illinois financial institution" means:
3 (1) a State bank, a national bank, or an
4 out-of-state bank, as those terms are defined in the
5 Illinois Banking Act, or any subsidiary of a State bank,
6 a national bank, or an out-of-state bank;
7 (2) a foreign banking corporation, as that term is
8 defined in the Foreign Banking Office Act, or any
9 subsidiary of a foreign banking corporation;
10 (3) a corporate fiduciary, as that term is defined
11 in the Corporate Fiduciary Act, or any subsidiary of a
12 corporate fiduciary;
13 (4) a savings bank organized under the Savings Bank
14 Act, an out-of-state savings bank chartered under the
15 laws of a state other than Illinois, a territory of the
16 United States, or the District of Columbia, or a federal
17 savings bank organized under federal law, or any
18 subsidiary of a savings bank, an out-of-state savings
19 bank, or a federal savings bank;
20 (5) an association or federal association, as those
21 terms are defined in the Illinois Savings and Loan Act of
22 1985, or any subsidiary of an association or federal
23 association;
24 (6) an out-of-state savings and loan association
25 chartered under the laws of a state other than Illinois,
26 a territory of the United States, or the District of
27 Columbia, or a federal savings and loan association
28 organized under federal law whose principal business
29 office is located outside of Illinois, or any subsidiary
30 of an out-of-state savings and loan association or
31 federal savings and loan association whose principal
32 business office is located outside of Illinois;
33 (7) a credit union, as defined in the Illinois
34 Credit Union Act, or any subsidiary of a credit union; or
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1 (8) a network owned by one or more financial
2 institutions, as those terms are defined in the
3 Electronic Fund Transfer Act.
4 The terms in this subsection (a) also shall be deemed to
5 include a direct or indirect holding company of an Illinois
6 financial institution in connection with a Year 2000 claim
7 involving the Illinois financial institution directly or
8 indirectly owned by such holding company.
9 (b) The term "Year 2000 failure" means any failure by any
10 device or system (including, without limitation, any computer
11 system and any microchip or integrated circuit embedded in
12 another device or product), or any software, firmware, or
13 other set or collection of processing instructions, however
14 constructed, in processing, calculating, comparing,
15 sequencing, displaying, storing, transmitting, or receiving
16 date-related data during the years 1999 and 2000 or from,
17 into, or between the twentieth century and the twenty-first
18 century, or the failure to recognize or accurately process
19 any specific date, or the failure to accurately account
20 for the status of the year 2000 as a leap year.
21 (c) The term "Year 2000 action" means a civil action of
22 any kind brought under Illinois law, except for a civil
23 action brought by a federal or state agency that regulates
24 the Illinois financial institution, in which:
25 (1) a Year 2000 claim is asserted; or
26 (2) any claim or defense is related, directly or
27 indirectly, to a Year 2000 claim.
28 (d) The term "Year 2000 claim" means any claim or cause
29 of action of any kind, whether asserted by way of claim,
30 counterclaim, cross-claim, third-party claim, or otherwise,
31 in which a party or other person's loss or harm is alleged to
32 have resulted, directly or indirectly, from any act or
33 omission in connection with an actual or potential Year 2000
34 failure, except for claims involving physical injury to the
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1 extent of the claim of physical injury.
2 (e) The term "physical injury" means any physical injury
3 to a natural person, including the death of the person, but
4 does not include mental suffering, emotional distress, or
5 other similar elements of injury that do not constitute
6 physical harm to a natural person.
7 Section 15. Action for damages. An Illinois financial
8 institution shall not be liable in a Year 2000 action brought
9 by or for damages incurred by persons not in privity of
10 contract with the Illinois financial institution in
11 connection with the transaction that gave rise to the Year
12 2000 claim.
13 Section 20. Notice of claim. No person shall bring a
14 Year 2000 action or make a Year 2000 claim against an
15 Illinois financial institution unless the person has given
16 written notice to the Illinois financial institution of the
17 person's Year 2000 claim and the Illinois financial
18 institution has been afforded at least 60 days after receipt
19 of the notice to resolve the claim.
20 Section 25. Employees, officers, and directors. No
21 employee, officer, or director of an Illinois financial
22 institution shall be liable to any person for damages in a
23 Year 2000 action, except for an act or omission that
24 constitutes fraud; provided that this Section shall not
25 preclude a Year 2000 action against an Illinois financial
26 institution that is otherwise permitted by law based on the
27 actions of an employee, officer, or director of the financial
28 institution.
29 Section 30. Unaffected rights. The provisions of this
30 Act shall not affect the rights of parties under Articles 3,
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1 4, 4A, and 8 of the Uniform Commercial Code and other rules
2 governing the processing of check, credit, debit, ACH, and
3 wire transactions, provided that such rights shall be
4 strictly construed to further the purposes and policies of
5 the provisions therein and the application of such
6 construction is not likely to impair the safety and soundness
7 of the Illinois financial institution.
8 Section 90. Severability. The provisions of this Act
9 are severable under Section 1.31 of the Statute on Statutes.
10 Section 92. The Banking Emergencies Act is amended by
11 adding Section 5 as follows:
12 (205 ILCS 610/5 new)
13 Sec. 5. Year 2000 Consumer Protections.
14 (a) For the purposes of this Section:
15 (1) the term "Illinois financial institution" means:
16 (A) a State bank, a national bank, or an
17 out-of-state bank, as those terms are defined in the
18 Illinois Banking Act, or any subsidiary of a State
19 bank, a national bank, or an out-of-state bank;
20 (B) a foreign banking corporation, as that
21 term is defined in the Foreign Banking Office Act,
22 or any subsidiary of a foreign banking corporation;
23 (C) a corporate fiduciary, as that term is
24 defined in the Corporate Fiduciary Act, or any
25 subsidiary of a corporate fiduciary;
26 (D) a savings bank organized under the Savings
27 Bank Act, an out-of-state savings bank chartered
28 under the laws of a state other than Illinois, a
29 territory of the United States, or the District of
30 Columbia, or a federal savings bank organized under
31 federal law, or any subsidiary of a savings bank, an
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1 out-of-state savings bank, or a federal savings
2 bank;
3 (E) an association or federal association, as
4 those terms are defined in the Illinois Savings and
5 Loan Act of 1985, or any subsidiary of an
6 association or federal association;
7 (F) an out-of-state savings and loan
8 association chartered under the laws of a state
9 other than Illinois, a territory of the United
10 States or the District of Columbia, or a federal
11 savings and loan association organized under federal
12 law whose principal business office is located
13 outside of Illinois, or any subsidiary of an
14 out-of-state savings and loan association or federal
15 savings and loan association whose principal
16 business office is located outside of Illinois;
17 (G) a credit union, as defined in the Illinois
18 Credit Union Act, or any subsidiary of a credit
19 union; or
20 (H) a network owned by one or more financial
21 institutions, as those terms are defined in the
22 Electronic Fund Transfer Act.
23 (2) the term "consumer" means an individual person;
24 and
25 (3) the term "Year 2000 failure" means any failure
26 by any device or system (including, without limitation,
27 any computer system and any microchip or integrated
28 circuit embedded in another device or product), or any
29 software, firmware, or other set or collection of
30 processing instructions, however constructed, in
31 processing, calculating, comparing, sequencing,
32 displaying, storing, transmitting, or receiving
33 date-related data during the years 1999 and 2000 or from,
34 into, or between the twentieth century and the
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1 twenty-first century, or the failure to recognize or
2 accurately process any specific date, or the failure to
3 accurately account for the status of the year 2000 as a
4 leap year.
5 (b) A financial institution shall stay an action for the
6 collection of a debt from a consumer for 30 days if the
7 consumer's default, failure to pay, breach, omission, or
8 other violation of the agreement that is the basis of the
9 collection action was caused by a Year 2000 failure on the
10 part of any person, provided the consumer notifies the
11 financial institution in writing of his or her inability to
12 meet the debt obligation within 30 days of discovering the
13 inability to meet the obligation due to the Year 2000
14 failure, and the notice sets forth:
15 (1) the identity of the person experiencing the
16 Year 2000 failure;
17 (2) the reason such person's Year 2000 failure
18 caused the consumer's inability to meet the obligation;
19 and
20 (3) the name and telephone number of a
21 representative of the person experiencing the Year 2000
22 failure who the financial institution may call for
23 purposes of verification.
24 This subsection shall not be applied more than once in
25 connection with the same debt of a consumer, nor shall it
26 otherwise affect the consumer's underlying debt obligation,
27 the accrual of any interest on the debt obligation, or the
28 calculation of any period of delinquency for the debt
29 obligation.
30 (c) A financial institution shall not charge a late fee
31 on a consumer debt obligation, or if already charged shall
32 waive such late fee, if the consumer's failure to timely pay
33 under the agreement that provides the basis for the late fee
34 was caused by a Year 2000 failure on the part of any person,
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1 provided the consumer notifies the financial institution in
2 writing of his or her inability to make timely payment within
3 30 days of discovering the inability to make timely payment
4 due to the Year 2000 failure, and the notice sets forth:
5 (1) the identity of the person experiencing the
6 Year 2000 failure;
7 (2) the reason such person's Year 2000 failure
8 caused the consumer's inability to make timely payment;
9 and
10 (3) the name and telephone number of a
11 representative of the person experiencing the Year 2000
12 failure who the financial institution may call for
13 purposes of verification.
14 This subsection shall not be applied more than once in
15 connection with the same debt of a consumer, nor shall it
16 otherwise affect the consumer's underlying debt obligation,
17 the accrual of any interest on the debt obligation, or the
18 calculation of any period of delinquency for the debt
19 obligation.
20 (d) A consumer may dispute directly with a credit
21 reporting agency operating in this State any negative credit
22 information reported in connection with the consumer
23 resulting from a Year 2000 failure on the part of any person
24 other than the consumer. If requested by the consumer
25 pursuant to this subsection, the credit reporting agency
26 shall include a statement prepared by the consumer of no more
27 than 100 words in the consumer's file explaining the negative
28 credit information relating to such Year 2000 failure, and
29 the credit reporting agency shall include the individual's
30 statement in any report it provides to any person or entity
31 regarding the consumer. The credit reporting agency shall
32 not charge the consumer a fee for the inclusion of this
33 statement in the consumer's credit file.
SB890 Enrolled -10- LRB9105132JSpcA
1 Section 99. Effective Date. This Act takes effect upon
2 becoming law.
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