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.