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91_SB1421enr
SB1421 Enrolled LRB9112239JSpc
1 AN ACT to create the Data Processing Services for
2 Financial Institutions 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 Data Processing Services for Financial Institutions Act.
7 Section 5. Definitions. As used in this Act, the
8 following terms shall have the following meanings:
9 "Corporate fiduciary" has the meaning ascribed to that
10 term in the Corporate Fiduciary Act.
11 "Depository institution" means a bank, savings and loan
12 association, savings bank, or credit union chartered under
13 the laws of Illinois or of the United States.
14 "Financial institution" means any depository institution
15 or corporate fiduciary that has its main office in Illinois
16 and includes foreign banking corporations that receive
17 certificates of authority from the Office of Banks and Real
18 Estate under the Foreign Banking Office Act.
19 "Independent data processing servicer" means an entity
20 that provides electronic data processing services to a
21 financial institution, but does not include an entity to the
22 extent the entity processes interchange transactions, as
23 defined in the Electronic Fund Transfer Act.
24 "Interface agreement" means a written agreement
25 specifying the terms and conditions under which an interface
26 of communications, data, or systems between independent data
27 processing servicers shall be accomplished.
28 "Main office" means the location designated as the main
29 office or principal place of business in the charter,
30 articles of incorporation, or certificate of authority of the
31 depository institution or corporate fiduciary.
SB1421 Enrolled -2- LRB9112239JSpc
1 Section 10. Interface between independent data
2 processing servicers.
3 (a) Whenever a financial institution contracts with an
4 independent data processing servicer for any product or
5 service that requires an interface of communications, data,
6 or systems with a second independent data processing servicer
7 with which the financial institution has a contractual
8 relationship, the second independent data processing servicer
9 shall permit the necessary interface to occur pursuant to an
10 interface agreement. The interface agreement shall contain
11 commercially reasonable fees and charges and shall provide
12 for commercially reasonable access to necessary technical
13 data.
14 (b) An independent data processing servicer shall
15 exercise reasonable promptness in negotiating an interface
16 agreement under the provisions of this Act and shall not
17 exercise undue delay or otherwise act in bad faith as a means
18 of avoiding the negotiation or implementation of an interface
19 agreement.
20 Section 15. Arbitration of disputes. In the case of a
21 dispute between the independent data processing servicers
22 regarding any terms or conditions of an interface agreement,
23 or in the event that a dispute regarding proposed terms and
24 conditions results in the failure of the independent data
25 processing servicers to enter into an interface agreement as
26 required by this Act, the parties shall be deemed to have
27 agreed to the appointment of an arbitrator for a binding
28 resolution of the dispute consistent with the provisions of
29 the Uniform Arbitration Act unless the parties agree to some
30 other process for binding arbitration or unless the aggrieved
31 party seeks court action. Any decision by the arbitrator in
32 connection with any arbitration shall be determined only
33 after an opportunity for a hearing. Anything to the contrary
SB1421 Enrolled -3- LRB9112239JSpc
1 in this Act notwithstanding, any right of arbitration granted
2 under this Act is subject to the right of either party to
3 seek court action.
4 Section 99. Effective date. This Act takes effect upon
5 becoming law.
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