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1 | AN ACT concerning regulation.
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2 | Be it enacted by the People of the State of Illinois,
| ||||||
3 | represented in the General Assembly:
| ||||||
4 | Section 5. The Illinois Banking Act is amended by changing | ||||||
5 | Section 48.1 as follows:
| ||||||
6 | (205 ILCS 5/48.1) (from Ch. 17, par. 360)
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7 | Sec. 48.1. Customer financial records; confidentiality.
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8 | (a) For the purpose of this Section, the term "financial | ||||||
9 | records" means any
original, any copy, or any summary of:
| ||||||
10 | (1) a document granting signature
authority over a | ||||||
11 | deposit or account;
| ||||||
12 | (2) a statement, ledger card or other
record on any | ||||||
13 | deposit or account, which shows each transaction in or with
| ||||||
14 | respect to that account;
| ||||||
15 | (3) a check, draft or money order drawn on a bank
or | ||||||
16 | issued and payable by a bank; or
| ||||||
17 | (4) any other item containing
information pertaining | ||||||
18 | to any relationship established in the ordinary
course of a | ||||||
19 | bank's business between a bank and its customer, including
| ||||||
20 | financial statements or other financial information | ||||||
21 | provided by the customer.
| ||||||
22 | (b) This Section does not prohibit:
| ||||||
23 | (1) The preparation, examination, handling or | ||||||
24 | maintenance of any
financial records by any officer, | ||||||
25 | employee or agent of a bank
having custody of the records, | ||||||
26 | or the examination of the records by a
certified public | ||||||
27 | accountant engaged by the bank to perform an independent
| ||||||
28 | audit.
| ||||||
29 | (2) The examination of any financial records by, or the | ||||||
30 | furnishing of
financial records by a bank to, any officer, | ||||||
31 | employee or agent of (i) the
Commissioner of Banks and Real | ||||||
32 | Estate, (ii) after May
31, 1997, a state regulatory |
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| |||||||
1 | authority authorized to examine a branch of a
State bank | ||||||
2 | located in another state, (iii) the Comptroller of the | ||||||
3 | Currency,
(iv) the Federal Reserve Board, or (v) the | ||||||
4 | Federal Deposit Insurance
Corporation for use solely in the | ||||||
5 | exercise of his duties as an officer,
employee, or agent.
| ||||||
6 | (3) The publication of data furnished from financial | ||||||
7 | records
relating to customers where the data cannot be | ||||||
8 | identified to any
particular customer or account.
| ||||||
9 | (4) The making of reports or returns required under | ||||||
10 | Chapter 61 of
the Internal Revenue Code of 1986.
| ||||||
11 | (5) Furnishing information concerning the dishonor of | ||||||
12 | any negotiable
instrument permitted to be disclosed under | ||||||
13 | the Uniform Commercial Code.
| ||||||
14 | (6) The exchange in the regular course of business of | ||||||
15 | (i) credit
information
between a bank and other banks or | ||||||
16 | financial institutions or commercial
enterprises, directly | ||||||
17 | or through a consumer reporting agency or (ii)
financial | ||||||
18 | records or information derived from financial records | ||||||
19 | between a bank
and other banks or financial institutions or | ||||||
20 | commercial enterprises for the
purpose of conducting due | ||||||
21 | diligence pursuant to a purchase or sale involving
the bank | ||||||
22 | or assets or liabilities of the bank.
| ||||||
23 | (7) The furnishing of information to the appropriate | ||||||
24 | law enforcement
authorities where the bank reasonably | ||||||
25 | believes it has been the victim of a
crime.
| ||||||
26 | (8) The furnishing of information under the Uniform | ||||||
27 | Disposition of
Unclaimed Property Act.
| ||||||
28 | (9) The furnishing of information under the Illinois | ||||||
29 | Income Tax Act and
the Illinois Estate and | ||||||
30 | Generation-Skipping Transfer Tax Act.
| ||||||
31 | (10) The furnishing of information under the federal | ||||||
32 | Currency
and Foreign Transactions Reporting Act Title 31, | ||||||
33 | United States
Code, Section 1051 et seq.
| ||||||
34 | (11) The furnishing of information under any other | ||||||
35 | statute that
by its terms or by regulations promulgated | ||||||
36 | thereunder requires the disclosure
of financial records |
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| |||||||
1 | other than by subpoena, summons, warrant, or court order.
| ||||||
2 | (12) The furnishing of information about the existence | ||||||
3 | of an account
of a person to a judgment creditor of that | ||||||
4 | person who has made a written
request for that information.
| ||||||
5 | (13) The exchange in the regular course of business of | ||||||
6 | information
between commonly owned banks in connection | ||||||
7 | with a transaction authorized
under paragraph (23) of
| ||||||
8 | Section 5 and conducted at an affiliate facility.
| ||||||
9 | (14) The furnishing of information in accordance with | ||||||
10 | the federal
Personal Responsibility and Work Opportunity | ||||||
11 | Reconciliation Act of 1996.
Any bank governed by this Act | ||||||
12 | shall enter into an agreement for data
exchanges with a | ||||||
13 | State agency provided the State agency
pays to the bank a | ||||||
14 | reasonable fee not to exceed its
actual cost incurred. A | ||||||
15 | bank providing
information in accordance with this item | ||||||
16 | shall not be liable to any account
holder or other person | ||||||
17 | for any disclosure of information to a State agency, for
| ||||||
18 | encumbering or surrendering any assets held by the bank in | ||||||
19 | response to a lien
or order to withhold and deliver issued | ||||||
20 | by a State agency, or for any other
action taken pursuant | ||||||
21 | to this item, including individual or mechanical errors,
| ||||||
22 | provided the action does not constitute gross negligence or | ||||||
23 | willful misconduct.
A bank shall have no obligation to | ||||||
24 | hold, encumber, or surrender assets until
it has been | ||||||
25 | served with a subpoena, summons, warrant, court or | ||||||
26 | administrative
order,
lien, or levy.
| ||||||
27 | (15) The exchange in the regular course of business of | ||||||
28 | information
between
a bank and any commonly owned affiliate | ||||||
29 | of the bank, subject to the provisions
of the Financial | ||||||
30 | Institutions Insurance Sales Law.
| ||||||
31 | (16) The furnishing of information to law enforcement | ||||||
32 | authorities, the
Illinois Department on
Aging and its | ||||||
33 | regional administrative and provider agencies, the | ||||||
34 | Department of
Human Services Office
of Inspector General, | ||||||
35 | or public guardians, if there is suspicion by the | ||||||
36 | investigatory entity, the guardian, or the bank suspects |
| |||||||
| |||||||
1 | that a customer
who is an elderly or
disabled person has | ||||||
2 | been or may become the victim of financial exploitation.
| ||||||
3 | For the purposes of this
item (16), the term: (i) "elderly | ||||||
4 | person" means a person who is 60 or more
years of age, (ii) | ||||||
5 | "disabled
person" means a person who has or reasonably | ||||||
6 | appears to the bank to have a
physical or mental
disability | ||||||
7 | that impairs his or her ability to seek or obtain | ||||||
8 | protection from or
prevent financial
exploitation, and | ||||||
9 | (iii) "financial exploitation" means tortious or illegal | ||||||
10 | use
of the assets or resources of
an elderly or disabled | ||||||
11 | person, and includes, without limitation,
misappropriation | ||||||
12 | of the elderly or
disabled person's assets or resources by | ||||||
13 | undue influence, breach of fiduciary
relationship, | ||||||
14 | intimidation,
fraud, deception, extortion, or the use of | ||||||
15 | assets or resources in any manner
contrary to law. A bank | ||||||
16 | or
person furnishing information pursuant to this item (16) | ||||||
17 | shall be entitled to
the same rights and
protections as a | ||||||
18 | person furnishing information under the Elder Abuse and
| ||||||
19 | Neglect Act ,
and the Illinois
Domestic Violence Act of | ||||||
20 | 1986 , and the Abuse of Adults with Disabilities | ||||||
21 | Intervention Act .
| ||||||
22 | (17) The disclosure of financial records or | ||||||
23 | information as necessary to
effect, administer, or enforce | ||||||
24 | a transaction requested or authorized by the
customer, or | ||||||
25 | in connection with:
| ||||||
26 | (A) servicing or processing a financial product or | ||||||
27 | service requested or
authorized by the customer;
| ||||||
28 | (B) maintaining or servicing a customer's account | ||||||
29 | with the bank; or
| ||||||
30 | (C) a proposed or actual securitization or | ||||||
31 | secondary market sale
(including sales of servicing | ||||||
32 | rights) related to a
transaction of a customer.
| ||||||
33 | Nothing in this item (17), however, authorizes the sale | ||||||
34 | of the financial
records or information of a customer | ||||||
35 | without the consent of the customer.
| ||||||
36 | (18) The disclosure of financial records or |
| |||||||
| |||||||
1 | information as necessary to
protect against actual or | ||||||
2 | potential fraud, unauthorized transactions, claims,
or | ||||||
3 | other liability.
| ||||||
4 | (19) (a) The disclosure of financial records or | ||||||
5 | information
related to a private label credit program | ||||||
6 | between a financial
institution and a private label party | ||||||
7 | in connection with that
private label credit program. Such | ||||||
8 | information is limited to
outstanding balance, available | ||||||
9 | credit, payment and performance
and account history, | ||||||
10 | product references, purchase information,
and information
| ||||||
11 | related to the identity of the customer.
| ||||||
12 | (b) (l) For purposes of this paragraph (19) of | ||||||
13 | subsection
(b) of Section 48.1, a "private label credit | ||||||
14 | program" means a
credit program involving a financial | ||||||
15 | institution and a private label
party that is used by a | ||||||
16 | customer of the financial institution and the
private label | ||||||
17 | party primarily for payment for goods or services
sold, | ||||||
18 | manufactured, or distributed by a private label party.
| ||||||
19 | (2) For purposes of this paragraph (19) of subsection | ||||||
20 | (b)
of Section 48.l, a "private label party" means, with | ||||||
21 | respect to a
private label credit program, any of the | ||||||
22 | following: a
retailer, a merchant, a manufacturer, a trade | ||||||
23 | group,
or any such person's affiliate, subsidiary, member,
| ||||||
24 | agent, or service provider.
| ||||||
25 | (c) Except as otherwise provided by this Act, a bank may | ||||||
26 | not disclose to
any person, except to the customer or his
duly | ||||||
27 | authorized agent, any financial records or financial | ||||||
28 | information
obtained from financial records relating to that | ||||||
29 | customer of
that bank unless:
| ||||||
30 | (1) the customer has authorized disclosure to the | ||||||
31 | person;
| ||||||
32 | (2) the financial records are disclosed in response to | ||||||
33 | a lawful
subpoena, summons, warrant or court order which | ||||||
34 | meets the requirements
of subsection (d) of this Section; | ||||||
35 | or
| ||||||
36 | (3) the bank is attempting to collect an obligation |
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| |||||||
1 | owed to the bank
and the bank complies with the provisions | ||||||
2 | of Section 2I of the Consumer
Fraud and Deceptive Business | ||||||
3 | Practices Act.
| ||||||
4 | (d) A bank shall disclose financial records under paragraph | ||||||
5 | (2) of
subsection (c) of this Section under a lawful subpoena, | ||||||
6 | summons, warrant, or
court order only after the bank mails a | ||||||
7 | copy of the subpoena, summons, warrant,
or court order to the | ||||||
8 | person establishing the relationship with the bank, if
living, | ||||||
9 | and, otherwise his personal representative, if known, at his | ||||||
10 | last known
address by first class mail, postage prepaid, unless | ||||||
11 | the bank is specifically
prohibited from notifying the person | ||||||
12 | by order of court or by applicable State
or federal law. A bank | ||||||
13 | shall not mail a copy of a subpoena to any person
pursuant to | ||||||
14 | this subsection if the subpoena was issued by a grand jury | ||||||
15 | under
the Statewide Grand Jury Act.
| ||||||
16 | (e) Any officer or employee of a bank who knowingly and
| ||||||
17 | willfully furnishes financial records in violation of this | ||||||
18 | Section is
guilty of a business offense and, upon conviction, | ||||||
19 | shall be fined not
more than $1,000.
| ||||||
20 | (f) Any person who knowingly and willfully induces or | ||||||
21 | attempts to
induce any officer or employee of a bank to | ||||||
22 | disclose financial
records in violation of this Section is | ||||||
23 | guilty of a business offense
and, upon conviction, shall be | ||||||
24 | fined not more than $1,000.
| ||||||
25 | (g) A bank shall be reimbursed for costs that are | ||||||
26 | reasonably necessary
and that have been directly incurred in | ||||||
27 | searching for, reproducing, or
transporting books, papers, | ||||||
28 | records, or other data of a customer required or
requested to | ||||||
29 | be produced pursuant to a lawful subpoena, summons, warrant, or
| ||||||
30 | court order. The Commissioner shall determine the rates and | ||||||
31 | conditions
under which payment may be made.
| ||||||
32 | (Source: P.A. 91-330, eff. 7-29-99; 91-929, eff. 12-15-00; | ||||||
33 | 92-483, eff.
8-23-01; 92-543, eff. 6-12-02.)
| ||||||
34 | Section 10. The Illinois Savings and Loan Act of 1985 is | ||||||
35 | amended by changing Section 3-8 as follows:
|
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| |||||||
1 | (205 ILCS 105/3-8) (from Ch. 17, par. 3303-8)
| ||||||
2 | Sec. 3-8. Access to books and records; communication with | ||||||
3 | members.
| ||||||
4 | (a) Every member or holder of capital shall have the right | ||||||
5 | to inspect
the books and records of the association that | ||||||
6 | pertain to his account.
Otherwise, the right of inspection and | ||||||
7 | examination of the books and
records shall be limited as | ||||||
8 | provided in this Act, and no other person
shall have access to | ||||||
9 | the books and records or shall be entitled to a
list of the | ||||||
10 | members.
| ||||||
11 | (b) For the purpose of this Section, the term "financial | ||||||
12 | records"
means any original, any copy, or any summary of (i) a | ||||||
13 | document granting
signature authority over a deposit or | ||||||
14 | account; (ii) a statement, ledger
card, or other record on any | ||||||
15 | deposit or account that
shows each transaction in or with | ||||||
16 | respect to that account; (iii) a check,
draft, or money order | ||||||
17 | drawn on an association or issued and payable by
an | ||||||
18 | association; or (iv) any other item containing information | ||||||
19 | pertaining to
any relationship established in the ordinary | ||||||
20 | course of an association's
business between an association and | ||||||
21 | its customer, including financial
statements or other | ||||||
22 | financial information provided by the member or holder of
| ||||||
23 | capital.
| ||||||
24 | (c) This Section does not prohibit:
| ||||||
25 | (1) The preparation, examination, handling, or | ||||||
26 | maintenance of any
financial records by any officer, | ||||||
27 | employee, or agent of an association having
custody of | ||||||
28 | those records or the examination of those records by a | ||||||
29 | certified
public accountant engaged by the association to | ||||||
30 | perform an independent
audit.
| ||||||
31 | (2) The examination of any financial records by, or the | ||||||
32 | furnishing of
financial records by an association to, any | ||||||
33 | officer, employee, or agent of the
Commissioner of Banks | ||||||
34 | and Real Estate or federal depository institution
| ||||||
35 | regulator for use solely in the exercise
of
his duties as |
| |||||||
| |||||||
1 | an officer, employee, or agent.
| ||||||
2 | (3) The publication of data furnished from financial | ||||||
3 | records
relating to members or holders of capital where the | ||||||
4 | data cannot be
identified to any particular member, holder | ||||||
5 | of capital, or account.
| ||||||
6 | (4) The making of reports or returns required under | ||||||
7 | Chapter 61 of
the Internal Revenue Code of 1986.
| ||||||
8 | (5) Furnishing information concerning the dishonor of | ||||||
9 | any negotiable
instrument permitted to be disclosed under | ||||||
10 | the Uniform Commercial
Code.
| ||||||
11 | (6) The exchange in the regular course of business of | ||||||
12 | (i) credit
information between an association and other | ||||||
13 | associations or financial
institutions or commercial | ||||||
14 | enterprises, directly or through a consumer
reporting | ||||||
15 | agency
or (ii) financial records or information derived | ||||||
16 | from financial records
between an association and other | ||||||
17 | associations or financial institutions or
commercial | ||||||
18 | enterprises for the purpose of conducting due diligence | ||||||
19 | pursuant to
a purchase or sale involving the association or | ||||||
20 | assets or liabilities of the
association.
| ||||||
21 | (7) The furnishing of information to the appropriate | ||||||
22 | law enforcement
authorities where the association | ||||||
23 | reasonably believes it has been the
victim of a crime.
| ||||||
24 | (8) The furnishing of information pursuant to the | ||||||
25 | Uniform Disposition
of Unclaimed Property Act.
| ||||||
26 | (9) The furnishing of information pursuant to the | ||||||
27 | Illinois Income Tax
Act and the Illinois Estate and | ||||||
28 | Generation-Skipping Transfer Tax Act.
| ||||||
29 | (10) The furnishing of information pursuant to the | ||||||
30 | federal "Currency
and Foreign Transactions Reporting Act", | ||||||
31 | (Title 31, United States
Code, Section 1051 et seq.).
| ||||||
32 | (11) The furnishing of information pursuant to any | ||||||
33 | other statute that
by its terms or by regulations | ||||||
34 | promulgated thereunder requires the disclosure
of | ||||||
35 | financial records other than by subpoena, summons, | ||||||
36 | warrant, or court
order.
|
| |||||||
| |||||||
1 | (12) The exchange of information between an | ||||||
2 | association and an affiliate
of the association; as used in | ||||||
3 | this item, "affiliate" includes any
company, partnership, | ||||||
4 | or organization that controls, is controlled by, or is
| ||||||
5 | under common control with an association.
| ||||||
6 | (13) The furnishing of information
in accordance with | ||||||
7 | the federal Personal Responsibility and Work Opportunity
| ||||||
8 | Reconciliation Act of 1996. Any association governed by | ||||||
9 | this Act shall enter
into an agreement for data
exchanges | ||||||
10 | with a State agency provided the State agency
pays to the | ||||||
11 | association a reasonable fee not to exceed its
actual cost | ||||||
12 | incurred. An association
providing
information in | ||||||
13 | accordance with this item shall not be liable to any | ||||||
14 | account
holder or other person for any disclosure of | ||||||
15 | information to a State agency, for
encumbering or | ||||||
16 | surrendering any assets held by the association in response | ||||||
17 | to a
lien
or order to withhold and deliver issued by a | ||||||
18 | State agency, or for any other
action taken pursuant to | ||||||
19 | this item, including individual or mechanical errors,
| ||||||
20 | provided the action does not constitute gross negligence or | ||||||
21 | willful misconduct.
An association shall have no | ||||||
22 | obligation to hold, encumber, or surrender assets
until it | ||||||
23 | has been served with a subpoena, summons, warrant, court or
| ||||||
24 | administrative order, lien, or levy.
| ||||||
25 | (14) The furnishing of information to law enforcement | ||||||
26 | authorities, the
Illinois Department on
Aging and its | ||||||
27 | regional administrative and provider agencies, the | ||||||
28 | Department of
Human Services Office
of Inspector General, | ||||||
29 | or public guardians, if there is suspicion by the | ||||||
30 | investigatory entity, the guardian, or the association | ||||||
31 | suspects that a
customer who is an elderly or
disabled | ||||||
32 | person has been or may become the victim of financial | ||||||
33 | exploitation.
For the purposes of this
item (14), the term: | ||||||
34 | (i) "elderly person" means a person who is 60 or more
years | ||||||
35 | of age, (ii) "disabled
person" means a person who has or | ||||||
36 | reasonably appears to the association to have
a physical or |
| |||||||
| |||||||
1 | mental
disability that impairs his or her ability to seek | ||||||
2 | or obtain protection from or
prevent financial
| ||||||
3 | exploitation, and (iii) "financial exploitation" means | ||||||
4 | tortious or illegal use
of the assets or resources of
an | ||||||
5 | elderly or disabled person, and includes, without | ||||||
6 | limitation,
misappropriation of the elderly or
disabled | ||||||
7 | person's assets or resources by undue influence, breach of | ||||||
8 | fiduciary
relationship, intimidation,
fraud, deception, | ||||||
9 | extortion, or the use of assets or resources in any manner
| ||||||
10 | contrary to law. An
association or person furnishing | ||||||
11 | information pursuant to this item (14) shall
be entitled to | ||||||
12 | the same
rights and protections as a person furnishing | ||||||
13 | information under the Elder Abuse
and Neglect Act ,
and the
| ||||||
14 | Illinois Domestic Violence Act of 1986 , and the Abuse of | ||||||
15 | Adults with Disabilities Intervention Act .
| ||||||
16 | (15) The disclosure of financial records or | ||||||
17 | information as necessary to
effect, administer, or enforce | ||||||
18 | a transaction requested or authorized by the
member or | ||||||
19 | holder of capital, or in connection with:
| ||||||
20 | (A) servicing or processing a financial product or | ||||||
21 | service requested or
authorized by the member or holder | ||||||
22 | of capital;
| ||||||
23 | (B) maintaining or servicing an account of a member | ||||||
24 | or holder of capital
with the association; or
| ||||||
25 | (C) a proposed or actual securitization or | ||||||
26 | secondary market sale
(including
sales of servicing | ||||||
27 | rights) related to a transaction of
a member or holder | ||||||
28 | of capital.
| ||||||
29 | Nothing in this item (15), however, authorizes the sale | ||||||
30 | of the financial
records or information of a member or | ||||||
31 | holder of capital without the consent of
the member or | ||||||
32 | holder of capital.
| ||||||
33 | (16) The disclosure of financial records or | ||||||
34 | information as necessary to
protect against or prevent | ||||||
35 | actual or potential fraud, unauthorized
transactions, | ||||||
36 | claims, or other liability.
|
| |||||||
| |||||||
1 | (17) (a) The disclosure of financial records or | ||||||
2 | information
related to a private label credit program | ||||||
3 | between a financial
institution and a private label party | ||||||
4 | in connection
with that private label credit program. Such | ||||||
5 | information
is limited to outstanding balance, available | ||||||
6 | credit, payment and
performance and account history, | ||||||
7 | product references, purchase
information,
and information | ||||||
8 | related to the identity of the
customer.
| ||||||
9 | (b) (l) For purposes of this paragraph (17) of | ||||||
10 | subsection
(c) of Section 3-8, a "private label credit | ||||||
11 | program" means a
credit program involving a financial | ||||||
12 | institution and a private label
party that is used by a | ||||||
13 | customer of the financial institution and the
private label | ||||||
14 | party primarily for payment for goods or services
sold, | ||||||
15 | manufactured, or distributed by a private label party.
| ||||||
16 | (2) For purposes of this paragraph (17) of subsection | ||||||
17 | (c)
of Section 3-8, a "private label party" means, with | ||||||
18 | respect to a
private label credit program, any of the | ||||||
19 | following: a
retailer, a merchant, a manufacturer, a trade | ||||||
20 | group,
or any such person's affiliate, subsidiary, member,
| ||||||
21 | agent, or service provider.
| ||||||
22 | (d) An association may not disclose to any person, except | ||||||
23 | to the
member or holder of capital or his duly authorized | ||||||
24 | agent, any financial
records relating to that member or holder | ||||||
25 | of capital of that association
unless:
| ||||||
26 | (1) The member or holder of capital has authorized | ||||||
27 | disclosure to the
person; or
| ||||||
28 | (2) The financial records are disclosed in response to | ||||||
29 | a lawful
subpoena, summons, warrant, or court order that | ||||||
30 | meets the
requirements of subsection (e) of this Section.
| ||||||
31 | (e) An association shall disclose financial records under | ||||||
32 | subsection
(d) of this Section pursuant to a lawful subpoena, | ||||||
33 | summons,
warrant, or court order only after the association | ||||||
34 | mails a copy of the
subpoena, summons, warrant, or court order | ||||||
35 | to the person establishing
the relationship with the | ||||||
36 | association, if living, and, otherwise, his
personal |
| |||||||
| |||||||
1 | representative, if known, at his last known address by first | ||||||
2 | class
mail, postage prepaid, unless the association is | ||||||
3 | specifically prohibited
from notifying that person by order of | ||||||
4 | court.
| ||||||
5 | (f) (1) Any officer or employee of an association who | ||||||
6 | knowingly and
willfully furnishes financial records in | ||||||
7 | violation of this Section is
guilty of a business offense and, | ||||||
8 | upon conviction, shall be fined not
more than $1,000.
| ||||||
9 | (2) Any person who knowingly and willfully induces or | ||||||
10 | attempts to
induce any officer or employee of an association to | ||||||
11 | disclose financial
records in violation of this Section is | ||||||
12 | guilty of a business offense
and, upon conviction, shall be | ||||||
13 | fined not more than $1,000.
| ||||||
14 | (g) However, if any member desires to communicate with the | ||||||
15 | other
members of the association with reference to any question | ||||||
16 | pending or to
be presented at a meeting of the members, the | ||||||
17 | association shall give him
upon request a statement of the | ||||||
18 | approximate number of members entitled
to vote at the meeting | ||||||
19 | and an estimate of the cost of
preparing and mailing the | ||||||
20 | communication. The requesting
member then shall submit the | ||||||
21 | communication to the Commissioner who, if he
finds it to be | ||||||
22 | appropriate and truthful, shall direct that it be prepared
and | ||||||
23 | mailed to the members upon the requesting member's payment or
| ||||||
24 | adequate provision for payment of the expenses of preparation | ||||||
25 | and mailing.
| ||||||
26 | (h) An association shall be reimbursed for costs that are | ||||||
27 | necessary and
that have been directly incurred in searching | ||||||
28 | for, reproducing, or
transporting books, papers, records, or | ||||||
29 | other data of a customer required
to be reproduced pursuant to | ||||||
30 | a lawful subpoena, warrant, or court order.
| ||||||
31 | (Source: P.A. 92-483, eff. 8-23-01; 92-543, eff.
6-12-02; | ||||||
32 | 93-271, eff. 7-22-03.)
| ||||||
33 | Section 15. The Savings Bank Act is amended by changing | ||||||
34 | Section 4013 as follows:
|
| |||||||
| |||||||
1 | (205 ILCS 205/4013) (from Ch. 17, par. 7304-13)
| ||||||
2 | Sec. 4013. Access to books and records; communication with | ||||||
3 | members
and shareholders.
| ||||||
4 | (a) Every member or shareholder shall have the right to | ||||||
5 | inspect books
and records of the savings bank that pertain to | ||||||
6 | his accounts. Otherwise,
the right of inspection and | ||||||
7 | examination of the books and records shall be
limited as | ||||||
8 | provided in this Act, and no other person shall have access to
| ||||||
9 | the books and records nor shall be entitled to a list of the | ||||||
10 | members or
shareholders.
| ||||||
11 | (b) For the purpose of this Section, the term "financial | ||||||
12 | records" means
any original, any copy, or any summary of (1) a | ||||||
13 | document granting signature
authority over a deposit or | ||||||
14 | account; (2) a statement, ledger card, or other
record on any | ||||||
15 | deposit or account that shows each transaction in or with
| ||||||
16 | respect to that account; (3) a check, draft, or money order | ||||||
17 | drawn on a
savings bank or issued and payable by a savings | ||||||
18 | bank; or (4) any other item
containing information pertaining | ||||||
19 | to any relationship established in the
ordinary course of a | ||||||
20 | savings bank's business between a savings bank and
its | ||||||
21 | customer, including financial statements or other financial | ||||||
22 | information
provided by the member or shareholder.
| ||||||
23 | (c) This Section does not prohibit:
| ||||||
24 | (1) The preparation examination, handling, or | ||||||
25 | maintenance of any
financial records by any officer, | ||||||
26 | employee, or agent of a savings bank
having custody of | ||||||
27 | records or examination of records by a certified public
| ||||||
28 | accountant engaged by the savings bank to perform an | ||||||
29 | independent audit.
| ||||||
30 | (2) The examination of any financial records by, or the | ||||||
31 | furnishing of
financial records by a savings bank to, any | ||||||
32 | officer, employee, or agent of
the Commissioner of Banks | ||||||
33 | and Real Estate or the federal depository
institution | ||||||
34 | regulator for use
solely in
the exercise of his duties as | ||||||
35 | an officer, employee, or agent.
| ||||||
36 | (3) The publication of data furnished from financial |
| |||||||
| |||||||
1 | records relating
to members or holders of capital where the | ||||||
2 | data cannot be identified to any
particular member, | ||||||
3 | shareholder, or account.
| ||||||
4 | (4) The making of reports or returns required under | ||||||
5 | Chapter 61 of the
Internal Revenue Code of 1986.
| ||||||
6 | (5) Furnishing information concerning the dishonor of | ||||||
7 | any negotiable
instrument permitted to be disclosed under | ||||||
8 | the Uniform Commercial Code.
| ||||||
9 | (6) The exchange in the regular course of business of | ||||||
10 | (i) credit
information between a savings bank and other | ||||||
11 | savings banks or financial
institutions or commercial | ||||||
12 | enterprises, directly or through a consumer
reporting | ||||||
13 | agency
or (ii) financial records or information derived | ||||||
14 | from financial records
between a savings bank and other | ||||||
15 | savings banks or financial institutions or
commercial | ||||||
16 | enterprises for the purpose of conducting due diligence | ||||||
17 | pursuant to
a purchase or sale involving the savings bank | ||||||
18 | or assets or liabilities of the
savings bank.
| ||||||
19 | (7) The furnishing of information to the appropriate | ||||||
20 | law enforcement
authorities where the savings bank | ||||||
21 | reasonably believes it has been the
victim of a crime.
| ||||||
22 | (8) The furnishing of information pursuant to the | ||||||
23 | Uniform Disposition
of Unclaimed Property Act.
| ||||||
24 | (9) The furnishing of information pursuant to the | ||||||
25 | Illinois Income Tax
Act
and the Illinois Estate and | ||||||
26 | Generation-Skipping Transfer Tax Act.
| ||||||
27 | (10) The furnishing of information pursuant to the | ||||||
28 | federal "Currency
and Foreign Transactions Reporting Act", | ||||||
29 | (Title 31, United States Code,
Section 1051 et seq.).
| ||||||
30 | (11) The furnishing of information pursuant to any | ||||||
31 | other statute which
by its terms or by regulations | ||||||
32 | promulgated thereunder requires the
disclosure of | ||||||
33 | financial records other than by subpoena, summons, | ||||||
34 | warrant, or
court order.
| ||||||
35 | (12) The furnishing of information in accordance with | ||||||
36 | the federal
Personal Responsibility and Work Opportunity |
| |||||||
| |||||||
1 | Reconciliation Act of 1996.
Any savings bank governed by | ||||||
2 | this Act shall enter into an agreement for data
exchanges | ||||||
3 | with a State agency provided the State agency
pays to the | ||||||
4 | savings bank a reasonable fee not to exceed its
actual cost | ||||||
5 | incurred. A savings bank
providing
information in | ||||||
6 | accordance with this item shall not be liable to any | ||||||
7 | account
holder or other person for any disclosure of | ||||||
8 | information to a State agency, for
encumbering or | ||||||
9 | surrendering any assets held by the savings bank in | ||||||
10 | response to
a lien
or order to withhold and deliver issued | ||||||
11 | by a State agency, or for any other
action taken pursuant | ||||||
12 | to this item, including individual or mechanical errors,
| ||||||
13 | provided the action does not constitute gross negligence or | ||||||
14 | willful misconduct.
A savings bank shall have no obligation | ||||||
15 | to hold, encumber, or surrender
assets until
it has been | ||||||
16 | served with a subpoena, summons, warrant, court or | ||||||
17 | administrative
order,
lien, or levy.
| ||||||
18 | (13) The furnishing of information to law enforcement | ||||||
19 | authorities, the
Illinois Department on
Aging and its | ||||||
20 | regional administrative and provider agencies, the | ||||||
21 | Department of
Human Services Office
of Inspector General, | ||||||
22 | or public guardians, if there is suspicion by the | ||||||
23 | investigatory entity, the guardian, or the savings bank | ||||||
24 | suspects that a
customer who is an elderly
or disabled | ||||||
25 | person has been or may become the victim of financial | ||||||
26 | exploitation.
For the purposes of this
item (13), the term: | ||||||
27 | (i) "elderly person" means a person who is 60 or more
years | ||||||
28 | of age, (ii) "disabled
person" means a person who has or | ||||||
29 | reasonably appears to the savings bank to
have a physical | ||||||
30 | or mental
disability that impairs his or her ability to | ||||||
31 | seek or obtain protection from or
prevent financial
| ||||||
32 | exploitation, and (iii) "financial exploitation" means | ||||||
33 | tortious or illegal use
of the assets or resources of
an | ||||||
34 | elderly or disabled person, and includes, without | ||||||
35 | limitation,
misappropriation of the elderly or
disabled | ||||||
36 | person's assets or resources by undue influence, breach of |
| |||||||
| |||||||
1 | fiduciary
relationship, intimidation,
fraud, deception, | ||||||
2 | extortion, or the use of assets or resources in any manner
| ||||||
3 | contrary to law. A savings
bank or person furnishing | ||||||
4 | information pursuant to this item (13) shall be
entitled to | ||||||
5 | the same rights and
protections as a person furnishing | ||||||
6 | information under the Elder Abuse and
Neglect Act ,
and the | ||||||
7 | Illinois
Domestic Violence Act of 1986 , and the Abuse of | ||||||
8 | Adults with Disabilities Intervention Act .
| ||||||
9 | (14) The disclosure of financial records or | ||||||
10 | information as necessary to
effect, administer, or enforce | ||||||
11 | a transaction requested or authorized by the
member or | ||||||
12 | holder of capital, or in connection with:
| ||||||
13 | (A) servicing or processing a financial product or | ||||||
14 | service requested or
authorized by the member or holder | ||||||
15 | of capital;
| ||||||
16 | (B) maintaining or servicing an account of a member | ||||||
17 | or holder of capital
with the savings bank; or
| ||||||
18 | (C) a proposed or actual securitization or | ||||||
19 | secondary market sale
(including sales of servicing | ||||||
20 | rights) related to a
transaction of a member or holder | ||||||
21 | of capital.
| ||||||
22 | Nothing in this item (14), however, authorizes the sale | ||||||
23 | of the financial
records or information of a member or | ||||||
24 | holder of capital without the consent of
the member or | ||||||
25 | holder of capital.
| ||||||
26 | (15) The exchange in the regular course of business of | ||||||
27 | information between
a
savings bank and any commonly owned | ||||||
28 | affiliate of the savings bank, subject to
the provisions of | ||||||
29 | the Financial Institutions Insurance Sales Law.
| ||||||
30 | (16) The disclosure of financial records or | ||||||
31 | information as necessary to
protect against or prevent | ||||||
32 | actual or potential fraud, unauthorized
transactions, | ||||||
33 | claims, or other liability.
| ||||||
34 | (17) (a) The disclosure of financial records or | ||||||
35 | information
related to a private label credit program | ||||||
36 | between a financial
institution and a private label party |
| |||||||
| |||||||
1 | in connection
with that private label credit program. Such | ||||||
2 | information
is limited to outstanding balance, available | ||||||
3 | credit, payment and
performance and account history, | ||||||
4 | product references, purchase
information,
and information | ||||||
5 | related to the identity of the
customer.
| ||||||
6 | (b) (l) For purposes of this paragraph (17) of | ||||||
7 | subsection
(c) of Section 4013, a "private label credit | ||||||
8 | program" means a
credit program involving a financial | ||||||
9 | institution and a private label
party that is used by a | ||||||
10 | customer of the financial institution and the
private label | ||||||
11 | party primarily for payment for goods or services
sold, | ||||||
12 | manufactured, or distributed by a private label party.
| ||||||
13 | (2) For purposes of this paragraph (17) of subsection | ||||||
14 | (c)
of Section 4013, a "private label party" means, with | ||||||
15 | respect to a
private label credit program, any of the | ||||||
16 | following: a
retailer, a merchant, a manufacturer, a trade | ||||||
17 | group,
or any such person's affiliate, subsidiary, member,
| ||||||
18 | agent, or service provider.
| ||||||
19 | (d) A savings bank may not disclose to any person, except | ||||||
20 | to the member
or holder of capital or his duly authorized | ||||||
21 | agent, any financial records
relating to that member or | ||||||
22 | shareholder of the savings bank unless:
| ||||||
23 | (1) the member or shareholder has authorized | ||||||
24 | disclosure to the person; or
| ||||||
25 | (2) the financial records are disclosed in response to | ||||||
26 | a lawful
subpoena, summons, warrant, or court order that | ||||||
27 | meets the requirements of
subsection (e) of this Section.
| ||||||
28 | (e) A savings bank shall disclose financial records under | ||||||
29 | subsection (d)
of this Section pursuant to a lawful subpoena, | ||||||
30 | summons, warrant, or court
order only after the savings bank | ||||||
31 | mails a copy of the subpoena, summons,
warrant, or court order | ||||||
32 | to the person establishing the relationship with
the savings | ||||||
33 | bank, if living, and otherwise, his personal representative, if
| ||||||
34 | known, at his last known address by first class mail, postage | ||||||
35 | prepaid,
unless the savings bank is specifically prohibited | ||||||
36 | from notifying the
person by order of court.
|
| |||||||
| |||||||
1 | (f) Any officer or employee of a savings bank who knowingly | ||||||
2 | and
willfully furnishes financial records in violation of this | ||||||
3 | Section is
guilty of a business offense and, upon conviction, | ||||||
4 | shall be fined not
more than $1,000.
| ||||||
5 | (g) Any person who knowingly and willfully induces or | ||||||
6 | attempts to
induce any officer or employee of a savings bank to | ||||||
7 | disclose financial
records in violation of this Section is | ||||||
8 | guilty of a business offense and,
upon conviction, shall be | ||||||
9 | fined not more than $1,000.
| ||||||
10 | (h) If any member or shareholder desires to communicate | ||||||
11 | with the other
members or shareholders of the savings bank with | ||||||
12 | reference to any question
pending or to be presented at an | ||||||
13 | annual or special meeting, the savings
bank shall give that | ||||||
14 | person, upon request, a statement of the approximate
number of | ||||||
15 | members or shareholders entitled to vote at the meeting and an
| ||||||
16 | estimate of the cost of preparing and mailing the | ||||||
17 | communication. The
requesting member shall submit the | ||||||
18 | communication to the Commissioner
who, upon finding it to be | ||||||
19 | appropriate and truthful, shall direct that it
be prepared and | ||||||
20 | mailed to the members upon the requesting member's or
| ||||||
21 | shareholder's payment or adequate provision for payment of the | ||||||
22 | expenses of
preparation and mailing.
| ||||||
23 | (i) A savings bank shall be reimbursed for costs that are | ||||||
24 | necessary and
that have been directly incurred in searching | ||||||
25 | for, reproducing, or
transporting books, papers, records, or | ||||||
26 | other data of a customer required
to be reproduced pursuant to | ||||||
27 | a lawful subpoena, warrant, or court order.
| ||||||
28 | (j) Notwithstanding the provisions of this Section, a | ||||||
29 | savings bank may
sell or otherwise make use of lists of | ||||||
30 | customers' names and addresses. All
other information | ||||||
31 | regarding a customer's account are subject to the
disclosure | ||||||
32 | provisions of this Section. At the request of any customer,
| ||||||
33 | that customer's name and address shall be deleted from any list | ||||||
34 | that is to
be sold or used in any other manner beyond | ||||||
35 | identification of the customer's
accounts.
| ||||||
36 | (Source: P.A. 92-483, eff. 8-23-01; 92-543, eff.
6-12-02; |
| |||||||
| |||||||
1 | 93-271, eff. 7-22-03.)
| ||||||
2 | Section 20. The Illinois Credit Union Act is amended by | ||||||
3 | changing Section 10 as follows:
| ||||||
4 | (205 ILCS 305/10) (from Ch. 17, par. 4411)
| ||||||
5 | Sec. 10. Credit union records; member financial records.
| ||||||
6 | (1) A credit union shall establish and maintain books, | ||||||
7 | records, accounting
systems and procedures which accurately | ||||||
8 | reflect its operations and which
enable the Department to | ||||||
9 | readily ascertain the true financial condition
of the credit | ||||||
10 | union and whether it is complying with this Act.
| ||||||
11 | (2) A photostatic or photographic reproduction of any | ||||||
12 | credit union records
shall be admissible as evidence of | ||||||
13 | transactions with the credit union.
| ||||||
14 | (3) (a) For the purpose of this Section, the term | ||||||
15 | "financial records"
means any original, any copy, or any | ||||||
16 | summary of (1) a document granting
signature authority over | ||||||
17 | an account, (2) a statement, ledger card or other
record on | ||||||
18 | any account which shows each transaction in or with respect | ||||||
19 | to
that account, (3) a check, draft or money order drawn on | ||||||
20 | a financial
institution or other entity or issued and | ||||||
21 | payable by or through a financial
institution or other | ||||||
22 | entity, or (4) any other item containing information
| ||||||
23 | pertaining to any relationship established in the ordinary | ||||||
24 | course of
business between a credit union and its member, | ||||||
25 | including financial
statements or other financial | ||||||
26 | information provided by the member.
| ||||||
27 | (b) This Section does not prohibit:
| ||||||
28 | (1) The preparation, examination, handling or | ||||||
29 | maintenance of any
financial records by any officer, | ||||||
30 | employee or agent of a credit union
having custody of | ||||||
31 | such records, or the examination of such records by a
| ||||||
32 | certified public accountant engaged by the credit | ||||||
33 | union to perform an
independent audit.
| ||||||
34 | (2) The examination of any financial records by or |
| |||||||
| |||||||
1 | the furnishing of
financial records by a credit union | ||||||
2 | to any officer, employee or agent of
the Department, | ||||||
3 | the National Credit Union Administration, Federal | ||||||
4 | Reserve
board or any insurer of share accounts for use | ||||||
5 | solely in the exercise of
his duties as an officer, | ||||||
6 | employee or agent.
| ||||||
7 | (3) The publication of data furnished from | ||||||
8 | financial records relating
to members where the data | ||||||
9 | cannot be identified to any particular customer
of | ||||||
10 | account.
| ||||||
11 | (4) The making of reports or returns required under | ||||||
12 | Chapter 61 of the
Internal Revenue Code of 1954.
| ||||||
13 | (5) Furnishing information concerning the dishonor | ||||||
14 | of any negotiable
instrument permitted to be disclosed | ||||||
15 | under the Uniform Commercial
Code.
| ||||||
16 | (6) The exchange in the regular course of business
| ||||||
17 | of (i) credit information
between a credit union and | ||||||
18 | other credit unions or financial institutions
or | ||||||
19 | commercial enterprises, directly or through a consumer | ||||||
20 | reporting agency
or (ii) financial records or | ||||||
21 | information derived from financial records
between a | ||||||
22 | credit union and other credit unions or financial | ||||||
23 | institutions or
commercial enterprises for
the purpose | ||||||
24 | of conducting due diligence pursuant to a merger or a | ||||||
25 | purchase or
sale of assets or liabilities of the credit | ||||||
26 | union.
| ||||||
27 | (7) The furnishing of information to the | ||||||
28 | appropriate law enforcement
authorities where the | ||||||
29 | credit union reasonably believes it has been the victim
| ||||||
30 | of a crime.
| ||||||
31 | (8) The furnishing of information pursuant to the | ||||||
32 | Uniform Disposition
of Unclaimed Property Act.
| ||||||
33 | (9) The furnishing of information pursuant to the | ||||||
34 | Illinois Income Tax
Act and the Illinois Estate and | ||||||
35 | Generation-Skipping Transfer Tax Act.
| ||||||
36 | (10) The furnishing of information pursuant to the |
| |||||||
| |||||||
1 | federal "Currency
and Foreign Transactions Reporting | ||||||
2 | Act", Title 31, United States Code,
Section 1051 et | ||||||
3 | sequentia.
| ||||||
4 | (11) The furnishing of information pursuant to any | ||||||
5 | other statute which
by its terms or by regulations | ||||||
6 | promulgated thereunder requires the disclosure
of | ||||||
7 | financial records other than by subpoena, summons, | ||||||
8 | warrant or court order.
| ||||||
9 | (12) The furnishing of information in accordance | ||||||
10 | with the federal
Personal Responsibility and Work | ||||||
11 | Opportunity Reconciliation Act of 1996.
Any credit | ||||||
12 | union governed by this Act shall enter into an | ||||||
13 | agreement for data
exchanges with a State agency | ||||||
14 | provided the State agency
pays to the credit union a | ||||||
15 | reasonable fee not to exceed its
actual cost incurred. | ||||||
16 | A credit union
providing
information in accordance | ||||||
17 | with this item shall not be liable to any account
| ||||||
18 | holder or other person for any disclosure of | ||||||
19 | information to a State agency, for
encumbering or | ||||||
20 | surrendering any assets held by the credit union in | ||||||
21 | response to
a lien
or order to withhold and deliver | ||||||
22 | issued by a State agency, or for any other
action taken | ||||||
23 | pursuant to this item, including individual or | ||||||
24 | mechanical errors,
provided the action does not | ||||||
25 | constitute gross negligence or willful misconduct.
A | ||||||
26 | credit union shall have no obligation to hold, | ||||||
27 | encumber, or surrender
assets until
it has been served | ||||||
28 | with a subpoena, summons, warrant, court or | ||||||
29 | administrative
order, lien, or levy.
| ||||||
30 | (13) The furnishing of information to law | ||||||
31 | enforcement authorities, the
Illinois Department on
| ||||||
32 | Aging and its regional administrative and provider | ||||||
33 | agencies, the Department of
Human Services Office
of | ||||||
34 | Inspector General, or public guardians, if there is | ||||||
35 | suspicion by the investigatory entity, the guardian, | ||||||
36 | or the credit union suspects that a
member who is an |
| |||||||
| |||||||
1 | elderly or
disabled person has been or may become the | ||||||
2 | victim of financial exploitation.
For the purposes of | ||||||
3 | this
item (13), the term: (i) "elderly person" means a | ||||||
4 | person who is 60 or more
years of age, (ii) "disabled
| ||||||
5 | person" means a person who has or reasonably appears to | ||||||
6 | the credit union to
have a physical or mental
| ||||||
7 | disability that impairs his or her ability to seek or | ||||||
8 | obtain protection from or
prevent financial
| ||||||
9 | exploitation, and (iii) "financial exploitation" means | ||||||
10 | tortious or illegal use
of the assets or resources of
| ||||||
11 | an elderly or disabled person, and includes, without | ||||||
12 | limitation,
misappropriation of the elderly or
| ||||||
13 | disabled person's assets or resources by undue | ||||||
14 | influence, breach of fiduciary
relationship, | ||||||
15 | intimidation,
fraud, deception, extortion, or the use | ||||||
16 | of assets or resources in any manner
contrary to law. A | ||||||
17 | credit
union or person furnishing information pursuant | ||||||
18 | to this item (13) shall be
entitled to the same rights | ||||||
19 | and
protections as a person furnishing information | ||||||
20 | under the Elder Abuse and
Neglect Act ,
and the Illinois
| ||||||
21 | Domestic Violence Act of 1986 , and the Abuse of Adults | ||||||
22 | with Disabilities Intervention Act .
| ||||||
23 | (14) The disclosure of financial records or | ||||||
24 | information as necessary
to
effect, administer, or | ||||||
25 | enforce a transaction requested or authorized by the
| ||||||
26 | member, or in connection with:
| ||||||
27 | (A) servicing or processing a financial | ||||||
28 | product or service requested
or
authorized by the | ||||||
29 | member;
| ||||||
30 | (B) maintaining or servicing a member's | ||||||
31 | account with the credit union;
or
| ||||||
32 | (C) a proposed or actual securitization or | ||||||
33 | secondary market sale
(including sales of | ||||||
34 | servicing rights) related to a
transaction of a | ||||||
35 | member.
| ||||||
36 | Nothing in this item (14), however, authorizes the |
| |||||||
| |||||||
1 | sale of the financial
records or information of a | ||||||
2 | member without the consent of the member.
| ||||||
3 | (15) The disclosure of financial records or | ||||||
4 | information as necessary to
protect against or prevent | ||||||
5 | actual or potential fraud, unauthorized
transactions, | ||||||
6 | claims, or other liability.
| ||||||
7 | (16) (a) The disclosure of financial records or | ||||||
8 | information
related to a private label credit program | ||||||
9 | between a financial
institution and a private label | ||||||
10 | party in connection
with that private label credit | ||||||
11 | program. Such information
is limited to outstanding | ||||||
12 | balance, available credit, payment and
performance and | ||||||
13 | account history, product references, purchase
| ||||||
14 | information,
and information related to the identity | ||||||
15 | of the
customer.
| ||||||
16 | (b) (l) For purposes of this paragraph (16) of | ||||||
17 | subsection
(b) of Section 10, a "private label credit | ||||||
18 | program" means a credit
program involving a financial | ||||||
19 | institution and a private label party
that is used by a | ||||||
20 | customer of the financial institution and the
private | ||||||
21 | label party primarily for payment for goods or services
| ||||||
22 | sold, manufactured, or distributed by a private label | ||||||
23 | party.
| ||||||
24 | (2) For purposes of this paragraph (16) of | ||||||
25 | subsection (b)
of Section 10, a "private label party" | ||||||
26 | means, with respect to a
private label credit program, | ||||||
27 | any of the following: a
retailer, a merchant, a | ||||||
28 | manufacturer, a trade group,
or any such person's | ||||||
29 | affiliate, subsidiary, member,
agent, or service | ||||||
30 | provider.
| ||||||
31 | (c) Except as otherwise provided by this Act, a credit | ||||||
32 | union may not
disclose to any person, except to the member
| ||||||
33 | or his duly authorized agent, any financial records | ||||||
34 | relating to that member
of the credit union unless:
| ||||||
35 | (1) the member has authorized disclosure to the | ||||||
36 | person;
|
| |||||||
| |||||||
1 | (2) the financial records are disclosed in | ||||||
2 | response to a lawful
subpoena,
summons, warrant or | ||||||
3 | court order that meets the requirements of | ||||||
4 | subparagraph
(d) of this Section; or
| ||||||
5 | (3) the credit union is attempting to collect an | ||||||
6 | obligation owed to
the credit union and the credit | ||||||
7 | union complies with the provisions of
Section 2I of the | ||||||
8 | Consumer Fraud and Deceptive Business Practices Act.
| ||||||
9 | (d) A credit union shall disclose financial records | ||||||
10 | under subparagraph
(c)(2) of this Section pursuant to a | ||||||
11 | lawful subpoena, summons, warrant or
court order only after | ||||||
12 | the credit union mails a copy of the subpoena, summons,
| ||||||
13 | warrant or court order to the person establishing the | ||||||
14 | relationship with
the credit union, if living, and | ||||||
15 | otherwise his personal representative,
if known, at his | ||||||
16 | last known address by first class mail, postage prepaid
| ||||||
17 | unless the credit union is specifically prohibited from | ||||||
18 | notifying the person
by order of court or by applicable | ||||||
19 | State or federal law. In the case
of a grand jury subpoena, | ||||||
20 | a credit union shall not mail a copy of a subpoena
to any | ||||||
21 | person pursuant to this subsection if the subpoena was | ||||||
22 | issued by a grand
jury under the Statewide Grand Jury Act | ||||||
23 | or notifying the
person would constitute a violation of the | ||||||
24 | federal Right to Financial
Privacy Act of 1978.
| ||||||
25 | (e) (1) Any officer or employee of a credit union who | ||||||
26 | knowingly and
wilfully furnishes financial records in | ||||||
27 | violation of this Section is guilty of
a business | ||||||
28 | offense and upon conviction thereof shall be fined not | ||||||
29 | more than
$1,000.
| ||||||
30 | (2) Any person who knowingly and wilfully induces | ||||||
31 | or attempts to induce
any officer or employee of a | ||||||
32 | credit union to disclose financial records
in | ||||||
33 | violation of this Section is guilty of a business | ||||||
34 | offense and upon
conviction thereof shall be fined not | ||||||
35 | more than $1,000.
| ||||||
36 | (f) A credit union shall be reimbursed for costs which |
| |||||||
| |||||||
1 | are reasonably
necessary and which have been directly | ||||||
2 | incurred in searching for,
reproducing or transporting | ||||||
3 | books, papers, records or other data of a
member required | ||||||
4 | or requested to be produced pursuant to a lawful subpoena,
| ||||||
5 | summons, warrant or court order. The Director may | ||||||
6 | determine, by rule, the
rates and
conditions under which | ||||||
7 | payment shall be made. Delivery of requested documents
may | ||||||
8 | be delayed until final reimbursement of all costs is | ||||||
9 | received.
| ||||||
10 | (Source: P.A. 91-929, eff. 12-15-00; 92-293, eff. 8-9-01; | ||||||
11 | 92-483, eff.
8-23-01; 92-543, eff. 6-12-02.)
| ||||||
12 | Section 99. Effective date. This Act takes effect upon | ||||||
13 | becoming law.
|