SB0229 Enrolled

LRB096 05726 MJR 15794 b






1
    AN ACT concerning financial regulation.

 
2
    Be it enacted by the People of the State of Illinois,
 
3
represented in the General Assembly:


 
4
    Section 1. Short title. This Act may be cited as the 
5
Banking Convenience Account for Depositors Act.
 
6
    Section 5. Definitions. For purposes of this Act:
7
    "Banking organization" means any person doing a banking 
8
business whether subject to the laws of this or any other 
9
jurisdiction.
10
    "Convenience account" means an account established 
11
pursuant to this Act.
12
    "Convenience depositor" means a person that makes deposits 
13
into the depositor's convenience account pursuant to this Act.
14
    "Depositor" means a person that is the primary account 
15
holder of any account held by a banking organization.
 
16
    Section 10. Convenience accounts; creation. 
17
    (a) A banking organization may permit a depositor to open a 
18
convenience account for the purposes of permitting a 
19
convenience depositor to make deposits into that account. The 
20
convenience account shall be in the name of a depositor and the 
21
convenience depositor and be permitted to pay or deliver funds 
22
to either for the convenience of the depositor.
 


 






SB0229 Enrolled
- 2 -
LRB096 05726 MJR 15794 b




1
    (b) Deposits made into a convenience account shall not 
2
affect the title to any deposit or shares and the depositor 
3
shall not be considered to have made a gift  of
  one-half  the  
4
deposit  or  of  any additions or accruals thereon to the
  
5
convenience depositor, and, on the death of the depositor, the 
6
convenience depositor shall
  have no right of survivorship in 
7
the convenience account.
If an addition is made  to
  a 
8
convenience account by anyone other than the depositor, any 
9
addition and
  accruals thereon shall be considered to have been 
10
made by the depositor.


 
11
    Section 15. Depositors and convenience depositors. Any  
12
deposit,  together  with  all  additions  and accruals
  thereon, made 
13
to the convenience account may be paid or delivered to the 
14
depositor or the convenience depositor,
  and  the  payment or 
15
delivery and the receipt or acquittance of the one
  to whom the  
16
payment  or  delivery  is  made,  shall  be  a  valid  and
  sufficient  
17
release and discharge to the banking organization prior to the 
18
receipt by the banking organization of notice in writing signed 
19
by the depositor
  not  to  pay  or  deliver  the  deposit or shares 
20
and the additions and
  accruals thereon in accordance with the 
21
terms thereof, and after receipt
  of  any  notice,  the  banking  
22
organization may require the receipt or acquittance of the 
23
depositor for
  any further payments or delivery.

 
24
    Section 20. Banking organizations; liability for 
 


 






SB0229 Enrolled
- 3 -
LRB096 05726 MJR 15794 b




1
convenience accounts.  If the depositor is dead, then payment
  or 
2
delivery to the convenience depositor shall be a valid and 
3
sufficient  release
  to  the banking organization prior to the
  
4
receipt by the banking organization of
  written  notice  of  the  
5
depositor's  death.  A banking organization which, upon the death 
6
of the  depositor  and
  prior  to  service  upon  it of a restraining 
7
order, injunction, or other
  appropriate process from a court of 
8
competent  jurisdiction  prohibiting
  payment, makes payment to 
9
the executor, administrator, or other qualified
  representative  
10
of the deceased depositor's estate, shall, to the extent
  of 
11
such payment, be released from liability to  any  person  claiming  
12
a
  right  to  the  funds  and  the  receipt or acquittance of the 
13
executor,
  administrator, or qualified representative to whom 
14
payment is made  shall
  be  a  valid  and  sufficient  release  and  
15
discharge  of the banking organization.

 
16
    Section 90. Repealer. This Act is repealed 5 years after 
17
the effective date of this Act.