96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
SB0229


 
Introduced 2/4/2009, by Sen. Carole Pankau
 
SYNOPSIS AS INTRODUCED:
 		













New Act










    Creates the Banking Convenience Account for Depositors Act. Provides that a banking organization shall permit a depositor to open a convenience account for the purposes of permitting a convenience depositor to make deposits into that account. Provides that the convenience account shall be in the name of a depositor and the convenience depositor and in form to be paid or delivered to either for the convenience of the depositor. Contains provisions concerning the right of survivorship and gift status in relation to deposits made to a convenience account. Specifies the rights of depositors and convenience depositors. Contains provisions concerning the duties, obligations, and liabilities of banking organizations with respect to convenience accounts.
















LRB096 05726 MJR 15794 b

















 


 


A BILL FOR









 











SB0229

LRB096 05726 MJR 15794 b






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    AN ACT concerning financial regulation.

 
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    Be it enacted by the People of the State of Illinois,
 
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represented in the General Assembly:


 
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    Section 1. Short title. This Act may be cited as the 
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Banking Convenience Account for Depositors Act.
 
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    Section 5. Definitions. For purposes of this Act:
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    "Banking organization" means any person doing a banking 
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business whether subject to the laws of this or any other 
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jurisdiction.
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    "Convenience account" means an account established 
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pursuant to this Act.
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    "Convenience depositor" means a person that makes deposits 
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into the depositor's convenience account pursuant to this Act.
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    "Depositor" means a person that is the primary account 
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holder of any account held by a banking organization.
 
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    Section 10. Convenience accounts; creation. 
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    (a) A banking organization shall permit a depositor to open 
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a convenience account for the purposes of permitting a 
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convenience depositor to make deposits into that account. The 
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convenience account shall be in the name of a depositor and the 
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convenience depositor and be permitted to pay or deliver funds 
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to either for the convenience of the depositor.
 


 






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    (b) Deposits made into a convenience account shall not 
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affect the title to any deposit or shares and the depositor 
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shall not be considered to have made a gift  of
  one-half  the  
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deposit  or  of  any additions or accruals thereon to the
  
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convenience depositor, and, on the death of the depositor, the 
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convenience depositor shall
  have no right of survivorship in 
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the convenience account account.
If an addition is made  to
  a 
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convenience account by anyone other than the depositor, any 
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addition and
  accruals thereon shall be considered to have been 
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made by the depositor.


 
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    Section 15. Depositors and convenience depositors. Any  
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deposit,  together  with  all  additions  and accruals
  thereon, made 
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to the convenience account may be paid or delivered to the 
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depositor or the convenience depositor,
  and  the  payment or 
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delivery and the receipt or acquittance of the one
  to whom the  
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payment  or  delivery  is  made,  shall  be  a  valid  and
  sufficient  
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release and discharge to the banking organization prior to the 
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receipt by the banking organization of notice in writing signed 
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by the depositor
  not  to  pay  or  deliver  the  deposit or shares 
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and the additions and
  accruals thereon in accordance with the 
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terms thereof, and after receipt
  of  any  notice,  the  banking  
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organization may require the receipt or acquittance of the 
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depositor for
  any further payments or delivery.

 
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    Section 20. Banking organizations; liability for 
 


 






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convenience accounts.  If the depositor is dead, then payment
  or 
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delivery to the convenience depositor shall be a valid and 
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sufficient  release
  to  the banking organization prior to the
  
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receipt by the banking organization of
  written  notice  of  the  
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depositor's  death.  A banking organization which, upon the death 
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of the  depositor  and
  prior  to  service  upon  it of a restraining 
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order, injunction, or other
  appropriate process from a court of 
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competent  jurisdiction  prohibiting
  payment, makes payment to 
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the executor, administrator, or other qualified
  representative  
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of the deceased depositor's estate, shall, to the extent
  of 
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such payment, be released from liability to  any  person  claiming  
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a
  right  to  the  funds  and  the  receipt or acquittance of the 
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executor,
  administrator, or qualified representative to whom 
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payment is made  shall
  be  a  valid  and  sufficient  release  and  
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discharge  of the banking organization.