Sen. Julie A. Morrison
Filed: 4/3/2019
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1 | AMENDMENT TO SENATE BILL 661
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2 | AMENDMENT NO. ______. Amend Senate Bill 661 by replacing | ||||||
3 | everything after the enacting clause with the following:
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4 | "Section 5. The Consumer Fraud and Deceptive Business | ||||||
5 | Practices Act is amended by adding Section 2WWW as follows: | ||||||
6 | (815 ILCS 505/2WWW new) | ||||||
7 | Sec. 2WWW. Certificates of deposit; disclosure of early | ||||||
8 | withdrawal penalty. | ||||||
9 | (a) As used in this Section: | ||||||
10 | "Certificate of deposit" means an instrument containing an | ||||||
11 | acknowledgment by a financial institution that a sum of money | ||||||
12 | has been received by the financial institution and a promise by | ||||||
13 | the financial institution to repay the sum of money. | ||||||
14 | "Financial institution" means a trust company, a bank, a | ||||||
15 | savings bank, a credit union, an investment bank, a broker, a | ||||||
16 | savings and loan association, or an insurance company. |
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1 | (b) A financial institution that issues a certificate of | ||||||
2 | deposit must: | ||||||
3 | (1) disclose in the account documents that any penalty | ||||||
4 | that may be incurred for early withdrawal may result in the | ||||||
5 | loss of principal in addition to the loss of interest; and | ||||||
6 | (2) require the depositor to sign or initial the | ||||||
7 | section of the account document that discloses the early | ||||||
8 | withdrawal penalty. | ||||||
9 | (c) A violation of this Section constitutes an unlawful | ||||||
10 | practice within the meaning of this Act. ".
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