Financial Institutions Committee
Filed: 3/1/2005
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1 | AMENDMENT TO HOUSE BILL 1301
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2 | AMENDMENT NO. ______. Amend House Bill 1301 on page 6, | ||||||
3 | immediately below line 33, by inserting the following:
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4 | "Section 10. The Illinois Savings and Loan Act of 1985 is | ||||||
5 | amended by changing Section 3-8 as follows:
| ||||||
6 | (205 ILCS 105/3-8) (from Ch. 17, par. 3303-8)
| ||||||
7 | Sec. 3-8. Access to books and records; communication with | ||||||
8 | members.
| ||||||
9 | (a) Every member or holder of capital shall have the right | ||||||
10 | to inspect
the books and records of the association that | ||||||
11 | pertain to his account.
Otherwise, the right of inspection and | ||||||
12 | examination of the books and
records shall be limited as | ||||||
13 | provided in this Act, and no other person
shall have access to | ||||||
14 | the books and records or shall be entitled to a
list of the | ||||||
15 | members.
| ||||||
16 | (b) For the purpose of this Section, the term "financial | ||||||
17 | records"
means any original, any copy, or any summary of (i) a | ||||||
18 | document granting
signature authority over a deposit or | ||||||
19 | account; (ii) a statement, ledger
card, or other record on any | ||||||
20 | deposit or account that
shows each transaction in or with | ||||||
21 | respect to that account; (iii) a check,
draft, or money order | ||||||
22 | drawn on an association or issued and payable by
an | ||||||
23 | association; or (iv) any other item containing information | ||||||
24 | pertaining to
any relationship established in the ordinary |
| |||||||
| |||||||
1 | course of an association's
business between an association and | ||||||
2 | its customer, including financial
statements or other | ||||||
3 | financial information provided by the member or holder of
| ||||||
4 | capital.
| ||||||
5 | (c) This Section does not prohibit:
| ||||||
6 | (1) The preparation, examination, handling, or | ||||||
7 | maintenance of any
financial records by any officer, | ||||||
8 | employee, or agent of an association having
custody of | ||||||
9 | those records or the examination of those records by a | ||||||
10 | certified
public accountant engaged by the association to | ||||||
11 | perform an independent
audit.
| ||||||
12 | (2) The examination of any financial records by, or the | ||||||
13 | furnishing of
financial records by an association to, any | ||||||
14 | officer, employee, or agent of the
Commissioner of Banks | ||||||
15 | and Real Estate or federal depository institution
| ||||||
16 | regulator for use solely in the exercise
of
his duties as | ||||||
17 | an officer, employee, or agent.
| ||||||
18 | (3) The publication of data furnished from financial | ||||||
19 | records
relating to members or holders of capital where the | ||||||
20 | data cannot be
identified to any particular member, holder | ||||||
21 | of capital, or account.
| ||||||
22 | (4) The making of reports or returns required under | ||||||
23 | Chapter 61 of
the Internal Revenue Code of 1986.
| ||||||
24 | (5) Furnishing information concerning the dishonor of | ||||||
25 | any negotiable
instrument permitted to be disclosed under | ||||||
26 | the Uniform Commercial
Code.
| ||||||
27 | (6) The exchange in the regular course of business of | ||||||
28 | (i) credit
information between an association and other | ||||||
29 | associations or financial
institutions or commercial | ||||||
30 | enterprises, directly or through a consumer
reporting | ||||||
31 | agency
or (ii) financial records or information derived | ||||||
32 | from financial records
between an association and other | ||||||
33 | associations or financial institutions or
commercial | ||||||
34 | enterprises for the purpose of conducting due diligence |
| |||||||
| |||||||
1 | pursuant to
a purchase or sale involving the association or | ||||||
2 | assets or liabilities of the
association.
| ||||||
3 | (7) The furnishing of information to the appropriate | ||||||
4 | law enforcement
authorities where the association | ||||||
5 | reasonably believes it has been the
victim of a crime.
| ||||||
6 | (8) The furnishing of information pursuant to the | ||||||
7 | Uniform Disposition
of Unclaimed Property Act.
| ||||||
8 | (9) The furnishing of information pursuant to the | ||||||
9 | Illinois Income Tax
Act and the Illinois Estate and | ||||||
10 | Generation-Skipping Transfer Tax Act.
| ||||||
11 | (10) The furnishing of information pursuant to the | ||||||
12 | federal "Currency
and Foreign Transactions Reporting Act", | ||||||
13 | (Title 31, United States
Code, Section 1051 et seq.).
| ||||||
14 | (11) The furnishing of information pursuant to any | ||||||
15 | other statute that
by its terms or by regulations | ||||||
16 | promulgated thereunder requires the disclosure
of | ||||||
17 | financial records other than by subpoena, summons, | ||||||
18 | warrant, or court
order.
| ||||||
19 | (12) The exchange of information between an | ||||||
20 | association and an affiliate
of the association; as used in | ||||||
21 | this item, "affiliate" includes any
company, partnership, | ||||||
22 | or organization that controls, is controlled by, or is
| ||||||
23 | under common control with an association.
| ||||||
24 | (13) The furnishing of information
in accordance with | ||||||
25 | the federal Personal Responsibility and Work Opportunity
| ||||||
26 | Reconciliation Act of 1996. Any association governed by | ||||||
27 | this Act shall enter
into an agreement for data
exchanges | ||||||
28 | with a State agency provided the State agency
pays to the | ||||||
29 | association a reasonable fee not to exceed its
actual cost | ||||||
30 | incurred. An association
providing
information in | ||||||
31 | accordance with this item shall not be liable to any | ||||||
32 | account
holder or other person for any disclosure of | ||||||
33 | information to a State agency, for
encumbering or | ||||||
34 | surrendering any assets held by the association in response |
| |||||||
| |||||||
1 | to a
lien
or order to withhold and deliver issued by a | ||||||
2 | State agency, or for any other
action taken pursuant to | ||||||
3 | this item, including individual or mechanical errors,
| ||||||
4 | provided the action does not constitute gross negligence or | ||||||
5 | willful misconduct.
An association shall have no | ||||||
6 | obligation to hold, encumber, or surrender assets
until it | ||||||
7 | has been served with a subpoena, summons, warrant, court or
| ||||||
8 | administrative order, lien, or levy.
| ||||||
9 | (14) The furnishing of information to law enforcement | ||||||
10 | authorities, the
Illinois Department on
Aging and its | ||||||
11 | regional administrative and provider agencies, the | ||||||
12 | Department of
Human Services Office
of Inspector General, | ||||||
13 | or public guardians, if there is suspicion by the | ||||||
14 | investigatory entity, the guardian, or the association | ||||||
15 | suspects that a
customer who is an elderly or
disabled | ||||||
16 | person has been or may become the victim of financial | ||||||
17 | exploitation.
For the purposes of this
item (14), the term: | ||||||
18 | (i) "elderly person" means a person who is 60 or more
years | ||||||
19 | of age, (ii) "disabled
person" means a person who has or | ||||||
20 | reasonably appears to the association to have
a physical or | ||||||
21 | mental
disability that impairs his or her ability to seek | ||||||
22 | or obtain protection from or
prevent financial
| ||||||
23 | exploitation, and (iii) "financial exploitation" means | ||||||
24 | tortious or illegal use
of the assets or resources of
an | ||||||
25 | elderly or disabled person, and includes, without | ||||||
26 | limitation,
misappropriation of the elderly or
disabled | ||||||
27 | person's assets or resources by undue influence, breach of | ||||||
28 | fiduciary
relationship, intimidation,
fraud, deception, | ||||||
29 | extortion, or the use of assets or resources in any manner
| ||||||
30 | contrary to law. An
association or person furnishing | ||||||
31 | information pursuant to this item (14) shall
be entitled to | ||||||
32 | the same
rights and protections as a person furnishing | ||||||
33 | information under the Elder Abuse
and Neglect Act ,
and the
| ||||||
34 | Illinois Domestic Violence Act of 1986 , and the Abuse of |
| |||||||
| |||||||
1 | Adults with Disabilities Intervention Act .
| ||||||
2 | (15) The disclosure of financial records or | ||||||
3 | information as necessary to
effect, administer, or enforce | ||||||
4 | a transaction requested or authorized by the
member or | ||||||
5 | holder of capital, or in connection with:
| ||||||
6 | (A) servicing or processing a financial product or | ||||||
7 | service requested or
authorized by the member or holder | ||||||
8 | of capital;
| ||||||
9 | (B) maintaining or servicing an account of a member | ||||||
10 | or holder of capital
with the association; or
| ||||||
11 | (C) a proposed or actual securitization or | ||||||
12 | secondary market sale
(including
sales of servicing | ||||||
13 | rights) related to a transaction of
a member or holder | ||||||
14 | of capital.
| ||||||
15 | Nothing in this item (15), however, authorizes the sale | ||||||
16 | of the financial
records or information of a member or | ||||||
17 | holder of capital without the consent of
the member or | ||||||
18 | holder of capital.
| ||||||
19 | (16) The disclosure of financial records or | ||||||
20 | information as necessary to
protect against or prevent | ||||||
21 | actual or potential fraud, unauthorized
transactions, | ||||||
22 | claims, or other liability.
| ||||||
23 | (17) (a) The disclosure of financial records or | ||||||
24 | information
related to a private label credit program | ||||||
25 | between a financial
institution and a private label party | ||||||
26 | in connection
with that private label credit program. Such | ||||||
27 | information
is limited to outstanding balance, available | ||||||
28 | credit, payment and
performance and account history, | ||||||
29 | product references, purchase
information,
and information | ||||||
30 | related to the identity of the
customer.
| ||||||
31 | (b) (l) For purposes of this paragraph (17) of | ||||||
32 | subsection
(c) of Section 3-8, a "private label credit | ||||||
33 | program" means a
credit program involving a financial | ||||||
34 | institution and a private label
party that is used by a |
| |||||||
| |||||||
1 | customer of the financial institution and the
private label | ||||||
2 | party primarily for payment for goods or services
sold, | ||||||
3 | manufactured, or distributed by a private label party.
| ||||||
4 | (2) For purposes of this paragraph (17) of subsection | ||||||
5 | (c)
of Section 3-8, a "private label party" means, with | ||||||
6 | respect to a
private label credit program, any of the | ||||||
7 | following: a
retailer, a merchant, a manufacturer, a trade | ||||||
8 | group,
or any such person's affiliate, subsidiary, member,
| ||||||
9 | agent, or service provider.
| ||||||
10 | (d) An association may not disclose to any person, except | ||||||
11 | to the
member or holder of capital or his duly authorized | ||||||
12 | agent, any financial
records relating to that member or holder | ||||||
13 | of capital of that association
unless:
| ||||||
14 | (1) The member or holder of capital has authorized | ||||||
15 | disclosure to the
person; or
| ||||||
16 | (2) The financial records are disclosed in response to | ||||||
17 | a lawful
subpoena, summons, warrant, or court order that | ||||||
18 | meets the
requirements of subsection (e) of this Section.
| ||||||
19 | (e) An association shall disclose financial records under | ||||||
20 | subsection
(d) of this Section pursuant to a lawful subpoena, | ||||||
21 | summons,
warrant, or court order only after the association | ||||||
22 | mails a copy of the
subpoena, summons, warrant, or court order | ||||||
23 | to the person establishing
the relationship with the | ||||||
24 | association, if living, and, otherwise, his
personal | ||||||
25 | representative, if known, at his last known address by first | ||||||
26 | class
mail, postage prepaid, unless the association is | ||||||
27 | specifically prohibited
from notifying that person by order of | ||||||
28 | court.
| ||||||
29 | (f) (1) Any officer or employee of an association who | ||||||
30 | knowingly and
willfully furnishes financial records in | ||||||
31 | violation of this Section is
guilty of a business offense and, | ||||||
32 | upon conviction, shall be fined not
more than $1,000.
| ||||||
33 | (2) Any person who knowingly and willfully induces or | ||||||
34 | attempts to
induce any officer or employee of an association to |
| |||||||
| |||||||
1 | disclose financial
records in violation of this Section is | ||||||
2 | guilty of a business offense
and, upon conviction, shall be | ||||||
3 | fined not more than $1,000.
| ||||||
4 | (g) However, if any member desires to communicate with the | ||||||
5 | other
members of the association with reference to any question | ||||||
6 | pending or to
be presented at a meeting of the members, the | ||||||
7 | association shall give him
upon request a statement of the | ||||||
8 | approximate number of members entitled
to vote at the meeting | ||||||
9 | and an estimate of the cost of
preparing and mailing the | ||||||
10 | communication. The requesting
member then shall submit the | ||||||
11 | communication to the Commissioner who, if he
finds it to be | ||||||
12 | appropriate and truthful, shall direct that it be prepared
and | ||||||
13 | mailed to the members upon the requesting member's payment or
| ||||||
14 | adequate provision for payment of the expenses of preparation | ||||||
15 | and mailing.
| ||||||
16 | (h) An association shall be reimbursed for costs that are | ||||||
17 | necessary and
that have been directly incurred in searching | ||||||
18 | for, reproducing, or
transporting books, papers, records, or | ||||||
19 | other data of a customer required
to be reproduced pursuant to | ||||||
20 | a lawful subpoena, warrant, or court order.
| ||||||
21 | (Source: P.A. 92-483, eff. 8-23-01; 92-543, eff.
6-12-02; | ||||||
22 | 93-271, eff. 7-22-03.)
| ||||||
23 | Section 15. The Savings Bank Act is amended by changing | ||||||
24 | Section 4013 as follows:
| ||||||
25 | (205 ILCS 205/4013) (from Ch. 17, par. 7304-13)
| ||||||
26 | Sec. 4013. Access to books and records; communication with | ||||||
27 | members
and shareholders.
| ||||||
28 | (a) Every member or shareholder shall have the right to | ||||||
29 | inspect books
and records of the savings bank that pertain to | ||||||
30 | his accounts. Otherwise,
the right of inspection and | ||||||
31 | examination of the books and records shall be
limited as | ||||||
32 | provided in this Act, and no other person shall have access to
|
| |||||||
| |||||||
1 | the books and records nor shall be entitled to a list of the | ||||||
2 | members or
shareholders.
| ||||||
3 | (b) For the purpose of this Section, the term "financial | ||||||
4 | records" means
any original, any copy, or any summary of (1) a | ||||||
5 | document granting signature
authority over a deposit or | ||||||
6 | account; (2) a statement, ledger card, or other
record on any | ||||||
7 | deposit or account that shows each transaction in or with
| ||||||
8 | respect to that account; (3) a check, draft, or money order | ||||||
9 | drawn on a
savings bank or issued and payable by a savings | ||||||
10 | bank; or (4) any other item
containing information pertaining | ||||||
11 | to any relationship established in the
ordinary course of a | ||||||
12 | savings bank's business between a savings bank and
its | ||||||
13 | customer, including financial statements or other financial | ||||||
14 | information
provided by the member or shareholder.
| ||||||
15 | (c) This Section does not prohibit:
| ||||||
16 | (1) The preparation examination, handling, or | ||||||
17 | maintenance of any
financial records by any officer, | ||||||
18 | employee, or agent of a savings bank
having custody of | ||||||
19 | records or examination of records by a certified public
| ||||||
20 | accountant engaged by the savings bank to perform an | ||||||
21 | independent audit.
| ||||||
22 | (2) The examination of any financial records by, or the | ||||||
23 | furnishing of
financial records by a savings bank to, any | ||||||
24 | officer, employee, or agent of
the Commissioner of Banks | ||||||
25 | and Real Estate or the federal depository
institution | ||||||
26 | regulator for use
solely in
the exercise of his duties as | ||||||
27 | an officer, employee, or agent.
| ||||||
28 | (3) The publication of data furnished from financial | ||||||
29 | records relating
to members or holders of capital where the | ||||||
30 | data cannot be identified to any
particular member, | ||||||
31 | shareholder, or account.
| ||||||
32 | (4) The making of reports or returns required under | ||||||
33 | Chapter 61 of the
Internal Revenue Code of 1986.
| ||||||
34 | (5) Furnishing information concerning the dishonor of |
| |||||||
| |||||||
1 | any negotiable
instrument permitted to be disclosed under | ||||||
2 | the Uniform Commercial Code.
| ||||||
3 | (6) The exchange in the regular course of business of | ||||||
4 | (i) credit
information between a savings bank and other | ||||||
5 | savings banks or financial
institutions or commercial | ||||||
6 | enterprises, directly or through a consumer
reporting | ||||||
7 | agency
or (ii) financial records or information derived | ||||||
8 | from financial records
between a savings bank and other | ||||||
9 | savings banks or financial institutions or
commercial | ||||||
10 | enterprises for the purpose of conducting due diligence | ||||||
11 | pursuant to
a purchase or sale involving the savings bank | ||||||
12 | or assets or liabilities of the
savings bank.
| ||||||
13 | (7) The furnishing of information to the appropriate | ||||||
14 | law enforcement
authorities where the savings bank | ||||||
15 | reasonably believes it has been the
victim of a crime.
| ||||||
16 | (8) The furnishing of information pursuant to the | ||||||
17 | Uniform Disposition
of Unclaimed Property Act.
| ||||||
18 | (9) The furnishing of information pursuant to the | ||||||
19 | Illinois Income Tax
Act
and the Illinois Estate and | ||||||
20 | Generation-Skipping Transfer Tax Act.
| ||||||
21 | (10) The furnishing of information pursuant to the | ||||||
22 | federal "Currency
and Foreign Transactions Reporting Act", | ||||||
23 | (Title 31, United States Code,
Section 1051 et seq.).
| ||||||
24 | (11) The furnishing of information pursuant to any | ||||||
25 | other statute which
by its terms or by regulations | ||||||
26 | promulgated thereunder requires the
disclosure of | ||||||
27 | financial records other than by subpoena, summons, | ||||||
28 | warrant, or
court order.
| ||||||
29 | (12) The furnishing of information in accordance with | ||||||
30 | the federal
Personal Responsibility and Work Opportunity | ||||||
31 | Reconciliation Act of 1996.
Any savings bank governed by | ||||||
32 | this Act shall enter into an agreement for data
exchanges | ||||||
33 | with a State agency provided the State agency
pays to the | ||||||
34 | savings bank a reasonable fee not to exceed its
actual cost |
| |||||||
| |||||||
1 | incurred. A savings bank
providing
information in | ||||||
2 | accordance with this item shall not be liable to any | ||||||
3 | account
holder or other person for any disclosure of | ||||||
4 | information to a State agency, for
encumbering or | ||||||
5 | surrendering any assets held by the savings bank in | ||||||
6 | response to
a lien
or order to withhold and deliver issued | ||||||
7 | by a State agency, or for any other
action taken pursuant | ||||||
8 | to this item, including individual or mechanical errors,
| ||||||
9 | provided the action does not constitute gross negligence or | ||||||
10 | willful misconduct.
A savings bank shall have no obligation | ||||||
11 | to hold, encumber, or surrender
assets until
it has been | ||||||
12 | served with a subpoena, summons, warrant, court or | ||||||
13 | administrative
order,
lien, or levy.
| ||||||
14 | (13) The furnishing of information to law enforcement | ||||||
15 | authorities, the
Illinois Department on
Aging and its | ||||||
16 | regional administrative and provider agencies, the | ||||||
17 | Department of
Human Services Office
of Inspector General, | ||||||
18 | or public guardians, if there is suspicion by the | ||||||
19 | investigatory entity, the guardian, or the savings bank | ||||||
20 | suspects that a
customer who is an elderly
or disabled | ||||||
21 | person has been or may become the victim of financial | ||||||
22 | exploitation.
For the purposes of this
item (13), the term: | ||||||
23 | (i) "elderly person" means a person who is 60 or more
years | ||||||
24 | of age, (ii) "disabled
person" means a person who has or | ||||||
25 | reasonably appears to the savings bank to
have a physical | ||||||
26 | or mental
disability that impairs his or her ability to | ||||||
27 | seek or obtain protection from or
prevent financial
| ||||||
28 | exploitation, and (iii) "financial exploitation" means | ||||||
29 | tortious or illegal use
of the assets or resources of
an | ||||||
30 | elderly or disabled person, and includes, without | ||||||
31 | limitation,
misappropriation of the elderly or
disabled | ||||||
32 | person's assets or resources by undue influence, breach of | ||||||
33 | fiduciary
relationship, intimidation,
fraud, deception, | ||||||
34 | extortion, or the use of assets or resources in any manner
|
| |||||||
| |||||||
1 | contrary to law. A savings
bank or person furnishing | ||||||
2 | information pursuant to this item (13) shall be
entitled to | ||||||
3 | the same rights and
protections as a person furnishing | ||||||
4 | information under the Elder Abuse and
Neglect Act ,
and the | ||||||
5 | Illinois
Domestic Violence Act of 1986 , and the Abuse of | ||||||
6 | Adults with Disabilities Intervention Act .
| ||||||
7 | (14) The disclosure of financial records or | ||||||
8 | information as necessary to
effect, administer, or enforce | ||||||
9 | a transaction requested or authorized by the
member or | ||||||
10 | holder of capital, or in connection with:
| ||||||
11 | (A) servicing or processing a financial product or | ||||||
12 | service requested or
authorized by the member or holder | ||||||
13 | of capital;
| ||||||
14 | (B) maintaining or servicing an account of a member | ||||||
15 | or holder of capital
with the savings bank; or
| ||||||
16 | (C) a proposed or actual securitization or | ||||||
17 | secondary market sale
(including sales of servicing | ||||||
18 | rights) related to a
transaction of a member or holder | ||||||
19 | of capital.
| ||||||
20 | Nothing in this item (14), however, authorizes the sale | ||||||
21 | of the financial
records or information of a member or | ||||||
22 | holder of capital without the consent of
the member or | ||||||
23 | holder of capital.
| ||||||
24 | (15) The exchange in the regular course of business of | ||||||
25 | information between
a
savings bank and any commonly owned | ||||||
26 | affiliate of the savings bank, subject to
the provisions of | ||||||
27 | the Financial Institutions Insurance Sales Law.
| ||||||
28 | (16) The disclosure of financial records or | ||||||
29 | information as necessary to
protect against or prevent | ||||||
30 | actual or potential fraud, unauthorized
transactions, | ||||||
31 | claims, or other liability.
| ||||||
32 | (17) (a) The disclosure of financial records or | ||||||
33 | information
related to a private label credit program | ||||||
34 | 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 |
| |||||||
| |||||||
1 | prepaid,
unless the savings bank is specifically prohibited | ||||||
2 | from notifying the
person by order of court.
| ||||||
3 | (f) Any officer or employee of a savings bank who knowingly | ||||||
4 | and
willfully furnishes financial records in violation of this | ||||||
5 | Section is
guilty of a business offense and, upon conviction, | ||||||
6 | shall be fined not
more than $1,000.
| ||||||
7 | (g) Any person who knowingly and willfully induces or | ||||||
8 | attempts to
induce any officer or employee of a savings bank to | ||||||
9 | disclose financial
records in violation of this Section is | ||||||
10 | guilty of a business offense and,
upon conviction, shall be | ||||||
11 | fined not more than $1,000.
| ||||||
12 | (h) If any member or shareholder desires to communicate | ||||||
13 | with the other
members or shareholders of the savings bank with | ||||||
14 | reference to any question
pending or to be presented at an | ||||||
15 | annual or special meeting, the savings
bank shall give that | ||||||
16 | person, upon request, a statement of the approximate
number of | ||||||
17 | members or shareholders entitled to vote at the meeting and an
| ||||||
18 | estimate of the cost of preparing and mailing the | ||||||
19 | communication. The
requesting member shall submit the | ||||||
20 | communication to the Commissioner
who, upon finding it to be | ||||||
21 | appropriate and truthful, shall direct that it
be prepared and | ||||||
22 | mailed to the members upon the requesting member's or
| ||||||
23 | shareholder's payment or adequate provision for payment of the | ||||||
24 | expenses of
preparation and mailing.
| ||||||
25 | (i) A savings bank shall be reimbursed for costs that are | ||||||
26 | necessary and
that have been directly incurred in searching | ||||||
27 | for, reproducing, or
transporting books, papers, records, or | ||||||
28 | other data of a customer required
to be reproduced pursuant to | ||||||
29 | a lawful subpoena, warrant, or court order.
| ||||||
30 | (j) Notwithstanding the provisions of this Section, a | ||||||
31 | savings bank may
sell or otherwise make use of lists of | ||||||
32 | customers' names and addresses. All
other information | ||||||
33 | regarding a customer's account are subject to the
disclosure | ||||||
34 | provisions of this Section. At the request of any customer,
|
| |||||||
| |||||||
1 | that customer's name and address shall be deleted from any list | ||||||
2 | that is to
be sold or used in any other manner beyond | ||||||
3 | identification of the customer's
accounts.
| ||||||
4 | (Source: P.A. 92-483, eff. 8-23-01; 92-543, eff.
6-12-02; | ||||||
5 | 93-271, eff. 7-22-03.)
| ||||||
6 | Section 20. The Illinois Credit Union Act is amended by | ||||||
7 | changing Section 10 as follows:
| ||||||
8 | (205 ILCS 305/10) (from Ch. 17, par. 4411)
| ||||||
9 | Sec. 10. Credit union records; member financial records.
| ||||||
10 | (1) A credit union shall establish and maintain books, | ||||||
11 | records, accounting
systems and procedures which accurately | ||||||
12 | reflect its operations and which
enable the Department to | ||||||
13 | readily ascertain the true financial condition
of the credit | ||||||
14 | union and whether it is complying with this Act.
| ||||||
15 | (2) A photostatic or photographic reproduction of any | ||||||
16 | credit union records
shall be admissible as evidence of | ||||||
17 | transactions with the credit union.
| ||||||
18 | (3) (a) For the purpose of this Section, the term | ||||||
19 | "financial records"
means any original, any copy, or any | ||||||
20 | summary of (1) a document granting
signature authority over | ||||||
21 | an account, (2) a statement, ledger card or other
record on | ||||||
22 | any account which shows each transaction in or with respect | ||||||
23 | to
that account, (3) a check, draft or money order drawn on | ||||||
24 | a financial
institution or other entity or issued and | ||||||
25 | payable by or through a financial
institution or other | ||||||
26 | entity, or (4) any other item containing information
| ||||||
27 | pertaining to any relationship established in the ordinary | ||||||
28 | course of
business between a credit union and its member, | ||||||
29 | including financial
statements or other financial | ||||||
30 | information provided by the member.
| ||||||
31 | (b) This Section does not prohibit:
| ||||||
32 | (1) The preparation, examination, handling or |
| |||||||
| |||||||
1 | maintenance of any
financial records by any officer, | ||||||
2 | employee or agent of a credit union
having custody of | ||||||
3 | such records, or the examination of such records by a
| ||||||
4 | certified public accountant engaged by the credit | ||||||
5 | union to perform an
independent audit.
| ||||||
6 | (2) The examination of any financial records by or | ||||||
7 | the furnishing of
financial records by a credit union | ||||||
8 | to any officer, employee or agent of
the Department, | ||||||
9 | the National Credit Union Administration, Federal | ||||||
10 | Reserve
board or any insurer of share accounts for use | ||||||
11 | solely in the exercise of
his duties as an officer, | ||||||
12 | employee or agent.
| ||||||
13 | (3) The publication of data furnished from | ||||||
14 | financial records relating
to members where the data | ||||||
15 | cannot be identified to any particular customer
of | ||||||
16 | account.
| ||||||
17 | (4) The making of reports or returns required under | ||||||
18 | Chapter 61 of the
Internal Revenue Code of 1954.
| ||||||
19 | (5) Furnishing information concerning the dishonor | ||||||
20 | of any negotiable
instrument permitted to be disclosed | ||||||
21 | under the Uniform Commercial
Code.
| ||||||
22 | (6) The exchange in the regular course of business
| ||||||
23 | of (i) credit information
between a credit union and | ||||||
24 | other credit unions or financial institutions
or | ||||||
25 | commercial enterprises, directly or through a consumer | ||||||
26 | reporting agency
or (ii) financial records or | ||||||
27 | information derived from financial records
between a | ||||||
28 | credit union and other credit unions or financial | ||||||
29 | institutions or
commercial enterprises for
the purpose | ||||||
30 | of conducting due diligence pursuant to a merger or a | ||||||
31 | purchase or
sale of assets or liabilities of the credit | ||||||
32 | union.
| ||||||
33 | (7) The furnishing of information to the | ||||||
34 | appropriate law enforcement
authorities where the |
| |||||||
| |||||||
1 | credit union reasonably believes it has been the victim
| ||||||
2 | of a crime.
| ||||||
3 | (8) The furnishing of information pursuant to the | ||||||
4 | Uniform Disposition
of Unclaimed Property Act.
| ||||||
5 | (9) The furnishing of information pursuant to the | ||||||
6 | Illinois Income Tax
Act and the Illinois Estate and | ||||||
7 | Generation-Skipping Transfer Tax Act.
| ||||||
8 | (10) The furnishing of information pursuant to the | ||||||
9 | federal "Currency
and Foreign Transactions Reporting | ||||||
10 | Act", Title 31, United States Code,
Section 1051 et | ||||||
11 | sequentia.
| ||||||
12 | (11) The furnishing of information pursuant to any | ||||||
13 | other statute which
by its terms or by regulations | ||||||
14 | promulgated thereunder requires the disclosure
of | ||||||
15 | financial records other than by subpoena, summons, | ||||||
16 | warrant or court order.
| ||||||
17 | (12) The furnishing of information in accordance | ||||||
18 | with the federal
Personal Responsibility and Work | ||||||
19 | Opportunity Reconciliation Act of 1996.
Any credit | ||||||
20 | union governed by this Act shall enter into an | ||||||
21 | agreement for data
exchanges with a State agency | ||||||
22 | provided the State agency
pays to the credit union a | ||||||
23 | reasonable fee not to exceed its
actual cost incurred. | ||||||
24 | A credit union
providing
information in accordance | ||||||
25 | with this item shall not be liable to any account
| ||||||
26 | holder or other person for any disclosure of | ||||||
27 | information to a State agency, for
encumbering or | ||||||
28 | surrendering any assets held by the credit union in | ||||||
29 | response to
a lien
or order to withhold and deliver | ||||||
30 | issued by a State agency, or for any other
action taken | ||||||
31 | pursuant to this item, including individual or | ||||||
32 | mechanical errors,
provided the action does not | ||||||
33 | constitute gross negligence or willful misconduct.
A | ||||||
34 | credit union shall have no obligation to hold, |
| |||||||
| |||||||
1 | encumber, or surrender
assets until
it has been served | ||||||
2 | with a subpoena, summons, warrant, court or | ||||||
3 | administrative
order, lien, or levy.
| ||||||
4 | (13) The furnishing of information to law | ||||||
5 | enforcement authorities, the
Illinois Department on
| ||||||
6 | Aging and its regional administrative and provider | ||||||
7 | agencies, the Department of
Human Services Office
of | ||||||
8 | Inspector General, or public guardians, if there is | ||||||
9 | suspicion by the investigatory entity, the guardian, | ||||||
10 | or the credit union suspects that a
member who is an | ||||||
11 | elderly or
disabled person has been or may become the | ||||||
12 | victim of financial exploitation.
For the purposes of | ||||||
13 | this
item (13), the term: (i) "elderly person" means a | ||||||
14 | person who is 60 or more
years of age, (ii) "disabled
| ||||||
15 | person" means a person who has or reasonably appears to | ||||||
16 | the credit union to
have a physical or mental
| ||||||
17 | disability that impairs his or her ability to seek or | ||||||
18 | obtain protection from or
prevent financial
| ||||||
19 | exploitation, and (iii) "financial exploitation" means | ||||||
20 | tortious or illegal use
of the assets or resources of
| ||||||
21 | an elderly or disabled person, and includes, without | ||||||
22 | limitation,
misappropriation of the elderly or
| ||||||
23 | disabled person's assets or resources by undue | ||||||
24 | influence, breach of fiduciary
relationship, | ||||||
25 | intimidation,
fraud, deception, extortion, or the use | ||||||
26 | of assets or resources in any manner
contrary to law. A | ||||||
27 | credit
union or person furnishing information pursuant | ||||||
28 | to this item (13) shall be
entitled to the same rights | ||||||
29 | and
protections as a person furnishing information | ||||||
30 | under the Elder Abuse and
Neglect Act ,
and the Illinois
| ||||||
31 | Domestic Violence Act of 1986 , and the Abuse of Adults | ||||||
32 | with Disabilities Intervention Act .
| ||||||
33 | (14) The disclosure of financial records or | ||||||
34 | information as necessary
to
effect, administer, or |
| |||||||
| |||||||
1 | enforce a transaction requested or authorized by the
| ||||||
2 | member, or in connection with:
| ||||||
3 | (A) servicing or processing a financial | ||||||
4 | product or service requested
or
authorized by the | ||||||
5 | member;
| ||||||
6 | (B) maintaining or servicing a member's | ||||||
7 | account with the credit union;
or
| ||||||
8 | (C) a proposed or actual securitization or | ||||||
9 | secondary market sale
(including sales of | ||||||
10 | servicing rights) related to a
transaction of a | ||||||
11 | member.
| ||||||
12 | Nothing in this item (14), however, authorizes the | ||||||
13 | sale of the financial
records or information of a | ||||||
14 | member without the consent of the member.
| ||||||
15 | (15) The disclosure of financial records or | ||||||
16 | information as necessary to
protect against or prevent | ||||||
17 | actual or potential fraud, unauthorized
transactions, | ||||||
18 | claims, or other liability.
| ||||||
19 | (16) (a) The disclosure of financial records or | ||||||
20 | information
related to a private label credit program | ||||||
21 | between a financial
institution and a private label | ||||||
22 | party in connection
with that private label credit | ||||||
23 | program. Such information
is limited to outstanding | ||||||
24 | balance, available credit, payment and
performance and | ||||||
25 | account history, product references, purchase
| ||||||
26 | information,
and information related to the identity | ||||||
27 | of the
customer.
| ||||||
28 | (b) (l) For purposes of this paragraph (16) of | ||||||
29 | subsection
(b) of Section 10, a "private label credit | ||||||
30 | program" means a credit
program involving a financial | ||||||
31 | institution and a private label party
that is used by a | ||||||
32 | customer of the financial institution and the
private | ||||||
33 | label party primarily for payment for goods or services
| ||||||
34 | sold, manufactured, or distributed by a private label |
| |||||||
| |||||||
1 | party.
| ||||||
2 | (2) For purposes of this paragraph (16) of | ||||||
3 | subsection (b)
of Section 10, a "private label party" | ||||||
4 | means, with respect to a
private label credit program, | ||||||
5 | any of the following: a
retailer, a merchant, a | ||||||
6 | manufacturer, a trade group,
or any such person's | ||||||
7 | affiliate, subsidiary, member,
agent, or service | ||||||
8 | provider.
| ||||||
9 | (c) Except as otherwise provided by this Act, a credit | ||||||
10 | union may not
disclose to any person, except to the member
| ||||||
11 | or his duly authorized agent, any financial records | ||||||
12 | relating to that member
of the credit union unless:
| ||||||
13 | (1) the member has authorized disclosure to the | ||||||
14 | person;
| ||||||
15 | (2) the financial records are disclosed in | ||||||
16 | response to a lawful
subpoena,
summons, warrant or | ||||||
17 | court order that meets the requirements of | ||||||
18 | subparagraph
(d) of this Section; or
| ||||||
19 | (3) the credit union is attempting to collect an | ||||||
20 | obligation owed to
the credit union and the credit | ||||||
21 | union complies with the provisions of
Section 2I of the | ||||||
22 | Consumer Fraud and Deceptive Business Practices Act.
| ||||||
23 | (d) A credit union shall disclose financial records | ||||||
24 | under subparagraph
(c)(2) of this Section pursuant to a | ||||||
25 | lawful subpoena, summons, warrant or
court order only after | ||||||
26 | the credit union mails a copy of the subpoena, summons,
| ||||||
27 | warrant or court order to the person establishing the | ||||||
28 | relationship with
the credit union, if living, and | ||||||
29 | otherwise his personal representative,
if known, at his | ||||||
30 | last known address by first class mail, postage prepaid
| ||||||
31 | unless the credit union is specifically prohibited from | ||||||
32 | notifying the person
by order of court or by applicable | ||||||
33 | State or federal law. In the case
of a grand jury subpoena, | ||||||
34 | a credit union shall not mail a copy of a subpoena
to any |
| |||||||
| |||||||
1 | person pursuant to this subsection if the subpoena was | ||||||
2 | issued by a grand
jury under the Statewide Grand Jury Act | ||||||
3 | or notifying the
person would constitute a violation of the | ||||||
4 | federal Right to Financial
Privacy Act of 1978.
| ||||||
5 | (e) (1) Any officer or employee of a credit union who | ||||||
6 | knowingly and
wilfully furnishes financial records in | ||||||
7 | violation of this Section is guilty of
a business | ||||||
8 | offense and upon conviction thereof shall be fined not | ||||||
9 | more than
$1,000.
| ||||||
10 | (2) Any person who knowingly and wilfully induces | ||||||
11 | or attempts to induce
any officer or employee of a | ||||||
12 | credit union to disclose financial records
in | ||||||
13 | violation of this Section is guilty of a business | ||||||
14 | offense and upon
conviction thereof shall be fined not | ||||||
15 | more than $1,000.
| ||||||
16 | (f) A credit union shall be reimbursed for costs which | ||||||
17 | are reasonably
necessary and which have been directly | ||||||
18 | incurred in searching for,
reproducing or transporting | ||||||
19 | books, papers, records or other data of a
member required | ||||||
20 | or requested to be produced pursuant to a lawful subpoena,
| ||||||
21 | summons, warrant or court order. The Director may | ||||||
22 | determine, by rule, the
rates and
conditions under which | ||||||
23 | payment shall be made. Delivery of requested documents
may | ||||||
24 | be delayed until final reimbursement of all costs is | ||||||
25 | received.
| ||||||
26 | (Source: P.A. 91-929, eff. 12-15-00; 92-293, eff. 8-9-01; | ||||||
27 | 92-483, eff.
8-23-01; 92-543, eff. 6-12-02.)".
|