SB0229 Enrolled LRB095 07909 AJO 28071 b

1     AN ACT concerning civil law.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 2. 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)
7     Sec. 48.1. Customer financial records; confidentiality.
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

 

 

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1     maintenance of any financial records by any officer,
2     employee or agent of a bank having custody of the records,
3     or the examination of the records by a certified public
4     accountant engaged by the bank to perform an independent
5     audit.
6         (2) The examination of any financial records by, or the
7     furnishing of financial records by a bank to, any officer,
8     employee or agent of (i) the Commissioner of Banks and Real
9     Estate, (ii) after May 31, 1997, a state regulatory
10     authority authorized to examine a branch of a State bank
11     located in another state, (iii) the Comptroller of the
12     Currency, (iv) the Federal Reserve Board, or (v) the
13     Federal Deposit Insurance Corporation for use solely in the
14     exercise of his duties as an officer, employee, or agent.
15         (3) The publication of data furnished from financial
16     records relating to customers where the data cannot be
17     identified to any particular customer or account.
18         (4) The making of reports or returns required under
19     Chapter 61 of the Internal Revenue Code of 1986.
20         (5) Furnishing information concerning the dishonor of
21     any negotiable instrument permitted to be disclosed under
22     the Uniform Commercial Code.
23         (6) The exchange in the regular course of business of
24     (i) credit information between a bank and other banks or
25     financial institutions or commercial enterprises, directly
26     or through a consumer reporting agency or (ii) financial

 

 

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1     records or information derived from financial records
2     between a bank and other banks or financial institutions or
3     commercial enterprises for the purpose of conducting due
4     diligence pursuant to a purchase or sale involving the bank
5     or assets or liabilities of the bank.
6         (7) The furnishing of information to the appropriate
7     law enforcement authorities where the bank reasonably
8     believes it has been the victim of a crime.
9         (8) The furnishing of information under the Uniform
10     Disposition of Unclaimed Property Act.
11         (9) The furnishing of information under the Illinois
12     Income Tax Act and the Illinois Estate and
13     Generation-Skipping Transfer Tax Act.
14         (10) The furnishing of information under the federal
15     Currency and Foreign Transactions Reporting Act Title 31,
16     United States Code, Section 1051 et seq.
17         (11) The furnishing of information under any other
18     statute that by its terms or by regulations promulgated
19     thereunder requires the disclosure of financial records
20     other than by subpoena, summons, warrant, or court order.
21         (12) The furnishing of information about the existence
22     of an account of a person to a judgment creditor of that
23     person who has made a written request for that information.
24         (13) The exchange in the regular course of business of
25     information between commonly owned banks in connection
26     with a transaction authorized under paragraph (23) of

 

 

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1     Section 5 and conducted at an affiliate facility.
2         (14) The furnishing of information in accordance with
3     the federal Personal Responsibility and Work Opportunity
4     Reconciliation Act of 1996. Any bank governed by this Act
5     shall enter into an agreement for data exchanges with a
6     State agency provided the State agency pays to the bank a
7     reasonable fee not to exceed its actual cost incurred. A
8     bank providing information in accordance with this item
9     shall not be liable to any account holder or other person
10     for any disclosure of information to a State agency, for
11     encumbering or surrendering any assets held by the bank in
12     response to a lien or order to withhold and deliver issued
13     by a State agency, or for any other action taken pursuant
14     to this item, including individual or mechanical errors,
15     provided the action does not constitute gross negligence or
16     willful misconduct. A bank shall have no obligation to
17     hold, encumber, or surrender assets until it has been
18     served with a subpoena, summons, warrant, court or
19     administrative order, lien, or levy.
20         (15) The exchange in the regular course of business of
21     information between a bank and any commonly owned affiliate
22     of the bank, subject to the provisions of the Financial
23     Institutions Insurance Sales Law.
24         (16) The furnishing of information to law enforcement
25     authorities, the Illinois Department on Aging and its
26     regional administrative and provider agencies, the

 

 

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1     Department of Human Services Office of Inspector General,
2     or public guardians: (i) upon subpoena by the investigatory
3     entity or the guardian, or (ii) if there is suspicion by
4     the bank that a customer who is an elderly or disabled
5     person has been or may become the victim of financial
6     exploitation. For the purposes of this item (16), the term:
7     (i) "elderly person" means a person who is 60 or more years
8     of age, (ii) "disabled person" means a person who has or
9     reasonably appears to the bank to have a physical or mental
10     disability that impairs his or her ability to seek or
11     obtain protection from or prevent financial exploitation,
12     and (iii) "financial exploitation" means tortious or
13     illegal use of the assets or resources of an elderly or
14     disabled person, and includes, without limitation,
15     misappropriation of the elderly or disabled person's
16     assets or resources by undue influence, breach of fiduciary
17     relationship, intimidation, fraud, deception, extortion,
18     or the use of assets or resources in any manner contrary to
19     law. A bank or person furnishing information pursuant to
20     this item (16) shall be entitled to the same rights and
21     protections as a person furnishing information under the
22     Elder Abuse and Neglect Act, the Illinois Domestic Violence
23     Act of 1986, and the Abuse of Adults with Disabilities
24     Intervention Act.
25         (17) The disclosure of financial records or
26     information as necessary to effect, administer, or enforce

 

 

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1     a transaction requested or authorized by the customer, or
2     in connection with:
3             (A) servicing or processing a financial product or
4         service requested or authorized by the customer;
5             (B) maintaining or servicing a customer's account
6         with the bank; or
7             (C) a proposed or actual securitization or
8         secondary market sale (including sales of servicing
9         rights) related to a transaction of a customer.
10         Nothing in this item (17), however, authorizes the sale
11     of the financial records or information of a customer
12     without the consent of the customer.
13         (18) The disclosure of financial records or
14     information as necessary to protect against actual or
15     potential fraud, unauthorized transactions, claims, or
16     other liability.
17         (19)(a) The disclosure of financial records or
18     information related to a private label credit program
19     between a financial institution and a private label party
20     in connection with that private label credit program. Such
21     information is limited to outstanding balance, available
22     credit, payment and performance and account history,
23     product references, purchase information, and information
24     related to the identity of the customer.
25         (b)(l) For purposes of this paragraph (19) of
26     subsection (b) of Section 48.1, a "private label credit

 

 

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1     program" means a credit program involving a financial
2     institution and a private label party that is used by a
3     customer of the financial institution and the private label
4     party primarily for payment for goods or services sold,
5     manufactured, or distributed by a private label party.
6         (2) For purposes of this paragraph (19) of subsection
7     (b) of Section 48.l, a "private label party" means, with
8     respect to a private label credit program, any of the
9     following: a retailer, a merchant, a manufacturer, a trade
10     group, or any such person's affiliate, subsidiary, member,
11     agent, or service provider.
12     (c) Except as otherwise provided by this Act, a bank may
13 not disclose to any person, except to the customer or his duly
14 authorized agent, any financial records or financial
15 information obtained from financial records relating to that
16 customer of that bank unless:
17         (1) the customer has authorized disclosure to the
18     person;
19         (2) the financial records are disclosed in response to
20     a lawful subpoena, summons, warrant, citation to discover
21     assets, or court order which meets the requirements of
22     subsection (d) of this Section; or
23         (3) the bank is attempting to collect an obligation
24     owed to the bank and the bank complies with the provisions
25     of Section 2I of the Consumer Fraud and Deceptive Business
26     Practices Act.

 

 

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1     (d) A bank shall disclose financial records under paragraph
2 (2) of subsection (c) of this Section under a lawful subpoena,
3 summons, warrant, citation to discover assets, or court order
4 only after the bank mails a copy of the subpoena, summons,
5 warrant, citation to discover assets, or court order to the
6 person establishing the relationship with the bank, if living,
7 and, otherwise his personal representative, if known, at his
8 last known address by first class mail, postage prepaid, unless
9 the bank is specifically prohibited from notifying the person
10 by order of court or by applicable State or federal law. A bank
11 shall not mail a copy of a subpoena to any person pursuant to
12 this subsection if the subpoena was issued by a grand jury
13 under the Statewide Grand Jury Act.
14     (e) Any officer or employee of a bank who knowingly and
15 willfully furnishes financial records in violation of this
16 Section is guilty of a business offense and, upon conviction,
17 shall be fined not more than $1,000.
18     (f) Any person who knowingly and willfully induces or
19 attempts to induce any officer or employee of a bank to
20 disclose financial records in violation of this Section is
21 guilty of a business offense and, upon conviction, shall be
22 fined not more than $1,000.
23     (g) A bank shall be reimbursed for costs that are
24 reasonably necessary and that have been directly incurred in
25 searching for, reproducing, or transporting books, papers,
26 records, or other data of a customer required or requested to

 

 

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1 be produced pursuant to a lawful subpoena, summons, warrant,
2 citation to discover assets, or court order. The Commissioner
3 shall determine the rates and conditions under which payment
4 may be made.
5 (Source: P.A. 94-495, eff. 8-8-05; 94-851, eff. 6-13-06.)
 
6     Section 2.5. The Illinois Savings and Loan Act of 1985 is
7 amended by changing Section 3-8 as follows:
 
8     (205 ILCS 105/3-8)  (from Ch. 17, par. 3303-8)
9     Sec. 3-8. Access to books and records; communication with
10 members.
11     (a) Every member or holder of capital shall have the right
12 to inspect the books and records of the association that
13 pertain to his account. Otherwise, the right of inspection and
14 examination of the books and records shall be limited as
15 provided in this Act, and no other person shall have access to
16 the books and records or shall be entitled to a list of the
17 members.
18     (b) For the purpose of this Section, the term "financial
19 records" means any original, any copy, or any summary of (i) a
20 document granting signature authority over a deposit or
21 account; (ii) a statement, ledger card, or other record on any
22 deposit or account that shows each transaction in or with
23 respect to that account; (iii) a check, draft, or money order
24 drawn on an association or issued and payable by an

 

 

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1 association; or (iv) any other item containing information
2 pertaining to any relationship established in the ordinary
3 course of an association's business between an association and
4 its customer, including financial statements or other
5 financial information provided by the member or holder of
6 capital.
7     (c) This Section does not prohibit:
8         (1) The preparation, examination, handling, or
9     maintenance of any financial records by any officer,
10     employee, or agent of an association having custody of
11     those records or the examination of those records by a
12     certified public accountant engaged by the association to
13     perform an independent audit.
14         (2) The examination of any financial records by, or the
15     furnishing of financial records by an association to, any
16     officer, employee, or agent of the Commissioner of Banks
17     and Real Estate or federal depository institution
18     regulator for use solely in the exercise of his duties as
19     an officer, employee, or agent.
20         (3) The publication of data furnished from financial
21     records relating to members or holders of capital where the
22     data cannot be identified to any particular member, holder
23     of capital, or account.
24         (4) The making of reports or returns required under
25     Chapter 61 of the Internal Revenue Code of 1986.
26         (5) Furnishing information concerning the dishonor of

 

 

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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 an association and other
5     associations 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 an association and other
9     associations or financial institutions or commercial
10     enterprises for the purpose of conducting due diligence
11     pursuant to a purchase or sale involving the association or
12     assets or liabilities of the association.
13         (7) The furnishing of information to the appropriate
14     law enforcement authorities where the association
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 that by its terms or by regulations
26     promulgated thereunder requires the disclosure of

 

 

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1     financial records other than by subpoena, summons,
2     warrant, or court order.
3         (12) The exchange of information between an
4     association and an affiliate of the association; as used in
5     this item, "affiliate" includes any company, partnership,
6     or organization that controls, is controlled by, or is
7     under common control with an association.
8         (13) The furnishing of information in accordance with
9     the federal Personal Responsibility and Work Opportunity
10     Reconciliation Act of 1996. Any association governed by
11     this Act shall enter into an agreement for data exchanges
12     with a State agency provided the State agency pays to the
13     association a reasonable fee not to exceed its actual cost
14     incurred. An association providing information in
15     accordance with this item shall not be liable to any
16     account holder or other person for any disclosure of
17     information to a State agency, for encumbering or
18     surrendering any assets held by the association in response
19     to a lien or order to withhold and deliver issued by a
20     State agency, or for any other action taken pursuant to
21     this item, including individual or mechanical errors,
22     provided the action does not constitute gross negligence or
23     willful misconduct. An association shall have no
24     obligation to hold, encumber, or surrender assets until it
25     has been served with a subpoena, summons, warrant, court or
26     administrative order, lien, or levy.

 

 

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1         (14) The furnishing of information to law enforcement
2     authorities, the Illinois Department on Aging and its
3     regional administrative and provider agencies, the
4     Department of Human Services Office of Inspector General,
5     or public guardians: (i) upon subpoena by the investigatory
6     entity or the guardian, or (ii) if there is suspicion by
7     the association that a customer who is an elderly or
8     disabled person has been or may become the victim of
9     financial exploitation. For the purposes of this item (14),
10     the term: (i) "elderly person" means a person who is 60 or
11     more years of age, (ii) "disabled person" means a person
12     who has or reasonably appears to the association to have a
13     physical or mental disability that impairs his or her
14     ability to seek or obtain protection from or prevent
15     financial exploitation, and (iii) "financial exploitation"
16     means tortious or illegal use of the assets or resources of
17     an elderly or disabled person, and includes, without
18     limitation, misappropriation of the elderly or disabled
19     person's assets or resources by undue influence, breach of
20     fiduciary relationship, intimidation, fraud, deception,
21     extortion, or the use of assets or resources in any manner
22     contrary to law. An association or person furnishing
23     information pursuant to this item (14) shall be entitled to
24     the same rights and protections as a person furnishing
25     information under the Elder Abuse and Neglect Act, the
26     Illinois Domestic Violence Act of 1986, and the Abuse of

 

 

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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

 

 

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1     information is limited to outstanding balance, available
2     credit, payment and performance and account history,
3     product references, purchase information, and information
4     related to the identity of the customer.
5         (b)(l) For purposes of this paragraph (17) of
6     subsection (c) of Section 3-8, a "private label credit
7     program" means a credit program involving a financial
8     institution and a private label party that is used by a
9     customer of the financial institution and the private label
10     party primarily for payment for goods or services sold,
11     manufactured, or distributed by a private label party.
12         (2) For purposes of this paragraph (17) of subsection
13     (c) of Section 3-8, a "private label party" means, with
14     respect to a private label credit program, any of the
15     following: a retailer, a merchant, a manufacturer, a trade
16     group, or any such person's affiliate, subsidiary, member,
17     agent, or service provider.
18     (d) An association may not disclose to any person, except
19 to the member or holder of capital or his duly authorized
20 agent, any financial records relating to that member or holder
21 of capital of that association unless:
22         (1) The member or holder of capital has authorized
23     disclosure to the person; or
24         (2) The financial records are disclosed in response to
25     a lawful subpoena, summons, warrant, citation to discover
26     assets, or court order that meets the requirements of

 

 

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1     subsection (e) of this Section.
2     (e) An association shall disclose financial records under
3 subsection (d) of this Section pursuant to a lawful subpoena,
4 summons, warrant, citation to discover assets, or court order
5 only after the association mails a copy of the subpoena,
6 summons, warrant, citation to discover assets, or court order
7 to the person establishing the relationship with the
8 association, if living, and, otherwise, his personal
9 representative, if known, at his last known address by first
10 class mail, postage prepaid, unless the association is
11 specifically prohibited from notifying that person by order of
12 court.
13     (f)(1) Any officer or employee of an association who
14 knowingly and willfully furnishes financial records in
15 violation of this Section is guilty of a business offense and,
16 upon conviction, shall be fined not more than $1,000.
17     (2) Any person who knowingly and willfully induces or
18 attempts to induce any officer or employee of an association to
19 disclose financial records in violation of this Section is
20 guilty of a business offense and, upon conviction, shall be
21 fined not more than $1,000.
22     (g) However, if any member desires to communicate with the
23 other members of the association with reference to any question
24 pending or to be presented at a meeting of the members, the
25 association shall give him upon request a statement of the
26 approximate number of members entitled to vote at the meeting

 

 

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1 and an estimate of the cost of preparing and mailing the
2 communication. The requesting member then shall submit the
3 communication to the Commissioner who, if he finds it to be
4 appropriate and truthful, shall direct that it be prepared and
5 mailed to the members upon the requesting member's payment or
6 adequate provision for payment of the expenses of preparation
7 and mailing.
8     (h) An association shall be reimbursed for costs that are
9 necessary and that have been directly incurred in searching
10 for, reproducing, or transporting books, papers, records, or
11 other data of a customer required to be reproduced pursuant to
12 a lawful subpoena, warrant, citation to discover assets, or
13 court order.
14 (Source: P.A. 93-271, eff. 7-22-03; 94-495, eff. 8-8-05;
15 94-851, eff. 6-13-06.)
 
16     Section 3. The Savings Bank Act is amended by changing
17 Section 4013 as follows:
 
18     (205 ILCS 205/4013)  (from Ch. 17, par. 7304-13)
19     Sec. 4013. Access to books and records; communication with
20 members and shareholders.
21     (a) Every member or shareholder shall have the right to
22 inspect books and records of the savings bank that pertain to
23 his accounts. Otherwise, the right of inspection and
24 examination of the books and records shall be limited as

 

 

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1 provided in this Act, and no other person shall have access to
2 the books and records nor shall be entitled to a list of the
3 members or shareholders.
4     (b) For the purpose of this Section, the term "financial
5 records" means any original, any copy, or any summary of (1) a
6 document granting signature authority over a deposit or
7 account; (2) a statement, ledger card, or other record on any
8 deposit or account that shows each transaction in or with
9 respect to that account; (3) a check, draft, or money order
10 drawn on a savings bank or issued and payable by a savings
11 bank; or (4) any other item containing information pertaining
12 to any relationship established in the ordinary course of a
13 savings bank's business between a savings bank and its
14 customer, including financial statements or other financial
15 information provided by the member or shareholder.
16     (c) This Section does not prohibit:
17         (1) The preparation examination, handling, or
18     maintenance of any financial records by any officer,
19     employee, or agent of a savings bank having custody of
20     records or examination of records by a certified public
21     accountant engaged by the savings bank to perform an
22     independent audit.
23         (2) The examination of any financial records by, or the
24     furnishing of financial records by a savings bank to, any
25     officer, employee, or agent of the Commissioner of Banks
26     and Real Estate or the federal depository institution

 

 

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1     regulator for use solely in the exercise of his duties as
2     an officer, employee, or agent.
3         (3) The publication of data furnished from financial
4     records relating to members or holders of capital where the
5     data cannot be identified to any particular member,
6     shareholder, or account.
7         (4) The making of reports or returns required under
8     Chapter 61 of the Internal Revenue Code of 1986.
9         (5) Furnishing information concerning the dishonor of
10     any negotiable instrument permitted to be disclosed under
11     the Uniform Commercial Code.
12         (6) The exchange in the regular course of business of
13     (i) credit information between a savings bank and other
14     savings banks or financial institutions or commercial
15     enterprises, directly or through a consumer reporting
16     agency or (ii) financial records or information derived
17     from financial records between a savings bank and other
18     savings banks or financial institutions or commercial
19     enterprises for the purpose of conducting due diligence
20     pursuant to a purchase or sale involving the savings bank
21     or assets or liabilities of the savings bank.
22         (7) The furnishing of information to the appropriate
23     law enforcement authorities where the savings bank
24     reasonably believes it has been the victim of a crime.
25         (8) The furnishing of information pursuant to the
26     Uniform Disposition of Unclaimed Property Act.

 

 

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1         (9) The furnishing of information pursuant to the
2     Illinois Income Tax Act and the Illinois Estate and
3     Generation-Skipping Transfer Tax Act.
4         (10) The furnishing of information pursuant to the
5     federal "Currency and Foreign Transactions Reporting Act",
6     (Title 31, United States Code, Section 1051 et seq.).
7         (11) The furnishing of information pursuant to any
8     other statute which by its terms or by regulations
9     promulgated thereunder requires the disclosure of
10     financial records other than by subpoena, summons,
11     warrant, or court order.
12         (12) The furnishing of information in accordance with
13     the federal Personal Responsibility and Work Opportunity
14     Reconciliation Act of 1996. Any savings bank governed by
15     this Act shall enter into an agreement for data exchanges
16     with a State agency provided the State agency pays to the
17     savings bank a reasonable fee not to exceed its actual cost
18     incurred. A savings bank providing information in
19     accordance with this item shall not be liable to any
20     account holder or other person for any disclosure of
21     information to a State agency, for encumbering or
22     surrendering any assets held by the savings bank in
23     response to a lien or order to withhold and deliver issued
24     by a State agency, or for any other action taken pursuant
25     to this item, including individual or mechanical errors,
26     provided the action does not constitute gross negligence or

 

 

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1     willful misconduct. A savings bank shall have no obligation
2     to hold, encumber, or surrender assets until it has been
3     served with a subpoena, summons, warrant, court or
4     administrative order, lien, or levy.
5         (13) The furnishing of information to law enforcement
6     authorities, the Illinois Department on Aging and its
7     regional administrative and provider agencies, the
8     Department of Human Services Office of Inspector General,
9     or public guardians: (i) upon subpoena by the investigatory
10     entity or the guardian, or (ii) if there is suspicion by
11     the savings bank that a customer who is an elderly or
12     disabled person has been or may become the victim of
13     financial exploitation. For the purposes of this item (13),
14     the term: (i) "elderly person" means a person who is 60 or
15     more years of age, (ii) "disabled person" means a person
16     who has or reasonably appears to the savings bank to have a
17     physical or mental disability that impairs his or her
18     ability to seek or obtain protection from or prevent
19     financial exploitation, and (iii) "financial exploitation"
20     means 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 disabled
23     person's assets or resources by undue influence, breach of
24     fiduciary relationship, intimidation, fraud, deception,
25     extortion, or the use of assets or resources in any manner
26     contrary to law. A savings bank or person furnishing

 

 

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1     information pursuant to this item (13) shall be entitled to
2     the same rights and protections as a person furnishing
3     information under the Elder Abuse and Neglect Act, the
4     Illinois Domestic Violence Act of 1986, and the Abuse of
5     Adults with Disabilities Intervention Act.
6         (14) The disclosure of financial records or
7     information as necessary to effect, administer, or enforce
8     a transaction requested or authorized by the member or
9     holder of capital, or in connection with:
10             (A) servicing or processing a financial product or
11         service requested or authorized by the member or holder
12         of capital;
13             (B) maintaining or servicing an account of a member
14         or holder of capital with the savings bank; or
15             (C) a proposed or actual securitization or
16         secondary market sale (including sales of servicing
17         rights) related to a transaction of a member or holder
18         of capital.
19         Nothing in this item (14), however, authorizes the sale
20     of the financial records or information of a member or
21     holder of capital without the consent of the member or
22     holder of capital.
23         (15) The exchange in the regular course of business of
24     information between a savings bank and any commonly owned
25     affiliate of the savings bank, subject to the provisions of
26     the Financial Institutions Insurance Sales Law.

 

 

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1         (16) The disclosure of financial records or
2     information as necessary to protect against or prevent
3     actual or potential fraud, unauthorized transactions,
4     claims, or other liability.
5         (17)(a) The disclosure of financial records or
6     information related to a private label credit program
7     between a financial institution and a private label party
8     in connection with that private label credit program. Such
9     information is limited to outstanding balance, available
10     credit, payment and performance and account history,
11     product references, purchase information, and information
12     related to the identity of the customer.
13         (b)(l) For purposes of this paragraph (17) of
14     subsection (c) of Section 4013, a "private label credit
15     program" means a credit program involving a financial
16     institution and a private label party that is used by a
17     customer of the financial institution and the private label
18     party primarily for payment for goods or services sold,
19     manufactured, or distributed by a private label party.
20         (2) For purposes of this paragraph (17) of subsection
21     (c) of Section 4013, a "private label party" means, with
22     respect to a private label credit program, any of the
23     following: a retailer, a merchant, a manufacturer, a trade
24     group, or any such person's affiliate, subsidiary, member,
25     agent, or service provider.
26     (d) A savings bank may not disclose to any person, except

 

 

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1 to the member or holder of capital or his duly authorized
2 agent, any financial records relating to that member or
3 shareholder of the savings bank unless:
4         (1) the member or shareholder has authorized
5     disclosure to the person; or
6         (2) the financial records are disclosed in response to
7     a lawful subpoena, summons, warrant, citation to discover
8     assets, or court order that meets the requirements of
9     subsection (e) of this Section.
10     (e) A savings bank shall disclose financial records under
11 subsection (d) of this Section pursuant to a lawful subpoena,
12 summons, warrant, citation to discover assets, or court order
13 only after the savings bank mails a copy of the subpoena,
14 summons, warrant, citation to discover assets, or court order
15 to the person establishing the relationship with the savings
16 bank, if living, and otherwise, his personal representative, if
17 known, at his last known address by first class mail, postage
18 prepaid, unless the savings bank is specifically prohibited
19 from notifying the person by order of court.
20     (f) Any officer or employee of a savings bank who knowingly
21 and willfully furnishes financial records in violation of this
22 Section is guilty of a business offense and, upon conviction,
23 shall be fined not more than $1,000.
24     (g) Any person who knowingly and willfully induces or
25 attempts to induce any officer or employee of a savings bank to
26 disclose financial records in violation of this Section is

 

 

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1 guilty of a business offense and, upon conviction, shall be
2 fined not more than $1,000.
3     (h) If any member or shareholder desires to communicate
4 with the other members or shareholders of the savings bank with
5 reference to any question pending or to be presented at an
6 annual or special meeting, the savings bank shall give that
7 person, upon request, a statement of the approximate number of
8 members or shareholders entitled to vote at the meeting and an
9 estimate of the cost of preparing and mailing the
10 communication. The requesting member shall submit the
11 communication to the Commissioner who, upon finding it to be
12 appropriate and truthful, shall direct that it be prepared and
13 mailed to the members upon the requesting member's or
14 shareholder's payment or adequate provision for payment of the
15 expenses of preparation and mailing.
16     (i) A savings bank 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, citation to discover assets, or
21 court order.
22     (j) Notwithstanding the provisions of this Section, a
23 savings bank may sell or otherwise make use of lists of
24 customers' names and addresses. All other information
25 regarding a customer's account are subject to the disclosure
26 provisions of this Section. At the request of any customer,

 

 

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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. 93-271, eff. 7-22-03; 94-495, eff. 8-8-05;
5 94-851, eff. 6-13-06.)
 
6     Section 3.5. 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 "financial
19 records" means any original, any copy, or any summary of (1) a
20 document granting signature authority over an account, (2) a
21 statement, ledger card or other record on any account which
22 shows each transaction in or with respect to that account, (3)
23 a check, draft or money order drawn on a financial institution
24 or other entity or issued and payable by or through a financial

 

 

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1 institution or other entity, or (4) any other item containing
2 information pertaining to any relationship established in the
3 ordinary course of business between a credit union and its
4 member, including financial statements or other financial
5 information provided by the member.
6     (b) This Section does not prohibit:
7         (1) The preparation, examination, handling or
8     maintenance of any financial records by any officer,
9     employee or agent of a credit union having custody of such
10     records, or the examination of such records by a certified
11     public accountant engaged by the credit union to perform an
12     independent audit.
13         (2) The examination of any financial records by or the
14     furnishing of financial records by a credit union to any
15     officer, employee or agent of the Department, the National
16     Credit Union Administration, Federal Reserve board or any
17     insurer of share accounts for use solely in the exercise of
18     his duties as an officer, employee or agent.
19         (3) The publication of data furnished from financial
20     records relating to members where the data cannot be
21     identified to any particular customer of account.
22         (4) The making of reports or returns required under
23     Chapter 61 of the Internal Revenue Code of 1954.
24         (5) Furnishing information concerning the dishonor of
25     any negotiable instrument permitted to be disclosed under
26     the Uniform Commercial Code.

 

 

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1         (6) The exchange in the regular course of business of
2     (i) credit information between a credit union and other
3     credit unions or financial institutions or commercial
4     enterprises, directly or through a consumer reporting
5     agency or (ii) financial records or information derived
6     from financial records between a credit union and other
7     credit unions or financial institutions or commercial
8     enterprises for the purpose of conducting due diligence
9     pursuant to a merger or a purchase or sale of assets or
10     liabilities of the credit union.
11         (7) The furnishing of information to the appropriate
12     law enforcement authorities where the credit union
13     reasonably believes it has been the victim of a crime.
14         (8) The furnishing of information pursuant to the
15     Uniform Disposition of Unclaimed Property Act.
16         (9) The furnishing of information pursuant to the
17     Illinois Income Tax Act and the Illinois Estate and
18     Generation-Skipping Transfer Tax Act.
19         (10) The furnishing of information pursuant to the
20     federal "Currency and Foreign Transactions Reporting Act",
21     Title 31, United States Code, Section 1051 et sequentia.
22         (11) The furnishing of information pursuant to any
23     other statute which by its terms or by regulations
24     promulgated thereunder requires the disclosure of
25     financial records other than by subpoena, summons, warrant
26     or court order.

 

 

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1         (12) The furnishing of information in accordance with
2     the federal Personal Responsibility and Work Opportunity
3     Reconciliation Act of 1996. Any credit union governed by
4     this Act shall enter into an agreement for data exchanges
5     with a State agency provided the State agency pays to the
6     credit union a reasonable fee not to exceed its actual cost
7     incurred. A credit union providing information in
8     accordance with this item shall not be liable to any
9     account holder or other person for any disclosure of
10     information to a State agency, for encumbering or
11     surrendering any assets held by the credit union in
12     response to a lien or order to withhold and deliver issued
13     by a State agency, or for any other action taken pursuant
14     to this item, including individual or mechanical errors,
15     provided the action does not constitute gross negligence or
16     willful misconduct. A credit union shall have no obligation
17     to hold, encumber, or surrender assets until it has been
18     served with a subpoena, summons, warrant, court or
19     administrative order, lien, or levy.
20         (13) The furnishing of information to law enforcement
21     authorities, the Illinois Department on Aging and its
22     regional administrative and provider agencies, the
23     Department of Human Services Office of Inspector General,
24     or public guardians: (i) upon subpoena by the investigatory
25     entity or the guardian, or (ii) if there is suspicion by
26     the credit union that a member who is an elderly or

 

 

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1     disabled person has been or may become the victim of
2     financial exploitation. For the purposes of this item (13),
3     the term: (i) "elderly person" means a person who is 60 or
4     more years of age, (ii) "disabled person" means a person
5     who has or reasonably appears to the credit union to have a
6     physical or mental disability that impairs his or her
7     ability to seek or obtain protection from or prevent
8     financial exploitation, and (iii) "financial exploitation"
9     means tortious or illegal use of the assets or resources of
10     an elderly or disabled person, and includes, without
11     limitation, misappropriation of the elderly or disabled
12     person's assets or resources by undue influence, breach of
13     fiduciary relationship, intimidation, fraud, deception,
14     extortion, or the use of assets or resources in any manner
15     contrary to law. A credit union or person furnishing
16     information pursuant to this item (13) shall be entitled to
17     the same rights and protections as a person furnishing
18     information under the Elder Abuse and Neglect Act, the
19     Illinois Domestic Violence Act of 1986, and the Abuse of
20     Adults with Disabilities Intervention Act.
21         (14) The disclosure of financial records or
22     information as necessary to effect, administer, or enforce
23     a transaction requested or authorized by the member, or in
24     connection with:
25             (A) servicing or processing a financial product or
26         service requested or authorized by the member;

 

 

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1             (B) maintaining or servicing a member's account
2         with the credit union; or
3             (C) a proposed or actual securitization or
4         secondary market sale (including sales of servicing
5         rights) related to a transaction of a member.
6         Nothing in this item (14), however, authorizes the sale
7     of the financial records or information of a member without
8     the consent of the member.
9         (15) The disclosure of financial records or
10     information as necessary to protect against or prevent
11     actual or potential fraud, unauthorized transactions,
12     claims, or other liability.
13         (16)(a) The disclosure of financial records or
14     information related to a private label credit program
15     between a financial institution and a private label party
16     in connection with that private label credit program. Such
17     information is limited to outstanding balance, available
18     credit, payment and performance and account history,
19     product references, purchase information, and information
20     related to the identity of the customer.
21         (b)(l) For purposes of this paragraph (16) of
22     subsection (b) of Section 10, a "private label credit
23     program" means a credit program involving a financial
24     institution and a private label party that is used by a
25     customer of the financial institution and the private label
26     party primarily for payment for goods or services sold,

 

 

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1     manufactured, or distributed by a private label party.
2         (2) For purposes of this paragraph (16) of subsection
3     (b) of Section 10, a "private label party" means, with
4     respect to a private label credit program, any of the
5     following: a retailer, a merchant, a manufacturer, a trade
6     group, or any such person's affiliate, subsidiary, member,
7     agent, or service provider.
8     (c) Except as otherwise provided by this Act, a credit
9 union may not disclose to any person, except to the member or
10 his duly authorized agent, any financial records relating to
11 that member of the credit union unless:
12         (1) the member has authorized disclosure to the person;
13         (2) the financial records are disclosed in response to
14     a lawful subpoena, summons, warrant, citation to discover
15     assets, or court order that meets the requirements of
16     subparagraph (d) of this Section; or
17         (3) the credit union is attempting to collect an
18     obligation owed to the credit union and the credit union
19     complies with the provisions of Section 2I of the Consumer
20     Fraud and Deceptive Business Practices Act.
21     (d) A credit union shall disclose financial records under
22 subparagraph (c)(2) of this Section pursuant to a lawful
23 subpoena, summons, warrant, citation to discover assets, or
24 court order only after the credit union mails a copy of the
25 subpoena, summons, warrant, citation to discover assets, or
26 court order to the person establishing the relationship with

 

 

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1 the credit union, if living, and otherwise his personal
2 representative, if known, at his last known address by first
3 class mail, postage prepaid unless the credit union is
4 specifically prohibited from notifying the person by order of
5 court or by applicable State or federal law. In the case of a
6 grand jury subpoena, a credit union shall not mail a copy of a
7 subpoena to any person pursuant to this subsection if the
8 subpoena was issued by a grand jury under the Statewide Grand
9 Jury Act or notifying the person would constitute a violation
10 of the federal Right to Financial Privacy Act of 1978.
11     (e)(1) Any officer or employee of a credit union who
12 knowingly and wilfully furnishes financial records in
13 violation of this Section is guilty of a business offense and
14 upon conviction thereof shall be fined not more than $1,000.
15     (2) Any person who knowingly and wilfully induces or
16 attempts to induce any officer or employee of a credit union to
17 disclose financial records in violation of this Section is
18 guilty of a business offense and upon conviction thereof shall
19 be fined not more than $1,000.
20     (f) A credit union shall be reimbursed for costs which are
21 reasonably necessary and which have been directly incurred in
22 searching for, reproducing or transporting books, papers,
23 records or other data of a member required or requested to be
24 produced pursuant to a lawful subpoena, summons, warrant,
25 citation to discover assets, or court order. The Director may
26 determine, by rule, the rates and conditions under which

 

 

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1 payment shall be made. Delivery of requested documents may be
2 delayed until final reimbursement of all costs is received.
3 (Source: P.A. 94-495, eff. 8-8-05; 94-851, eff. 6-13-06.)
 
4     Section 5. The Code of Civil Procedure is amended by
5 changing Sections 2-1402, 12-501, 12-803, 12-808, 12-808.5,
6 12-814, 19-117, and 19-123 and by adding Sections 5-126.5 and
7 19-129 as follows:
 
8     (735 ILCS 5/2-1402)  (from Ch. 110, par. 2-1402)
9     Sec. 2-1402. Supplementary proceedings.
10     (a) A judgment creditor, or his or her successor in
11 interest when that interest is made to appear of record, is
12 entitled to prosecute supplementary proceedings for the
13 purposes of examining the judgment debtor or any other person
14 to discover assets or income of the debtor not exempt from the
15 enforcement of the judgment, a deduction order or garnishment,
16 and of compelling the application of non-exempt assets or
17 income discovered toward the payment of the amount due under
18 the judgment. A supplementary proceeding shall be commenced by
19 the service of a citation issued by the clerk. The procedure
20 for conducting supplementary proceedings shall be prescribed
21 by rules. It is not a prerequisite to the commencement of a
22 supplementary proceeding that a certified copy of the judgment
23 has been returned wholly or partly unsatisfied. All citations
24 issued by the clerk shall have the following language, or

 

 

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1 language substantially similar thereto, stated prominently on
2 the front, in capital letters: "YOUR FAILURE TO APPEAR IN COURT
3 AS HEREIN DIRECTED MAY CAUSE YOU TO BE ARRESTED AND BROUGHT
4 BEFORE THE COURT TO ANSWER TO A CHARGE OF CONTEMPT OF COURT,
5 WHICH MAY BE PUNISHABLE BY IMPRISONMENT IN THE COUNTY JAIL."
6 The court shall not grant a continuance of the supplementary
7 proceeding except upon good cause shown.
8     (b) Any citation served upon a judgment debtor or any other
9 person shall include a certification by the attorney for the
10 judgment creditor or the judgment creditor setting forth the
11 amount of the judgment, the date of the judgment, or its
12 revival date, the balance due thereon, the name of the court,
13 and the number of the case, and a copy of the citation notice
14 required by this subsection. Whenever a citation is served upon
15 a person or party other than the judgment debtor, the officer
16 or person serving the citation shall send to the judgment
17 debtor, within three business days of the service upon the
18 cited party, a copy of the citation and the citation notice,
19 which may be sent by regular first-class mail to the judgment
20 debtor's last known address. In no event shall a citation
21 hearing be held sooner than five business days after the
22 mailing of the citation and citation notice to the judgment
23 debtor, except by agreement of the parties. The citation notice
24 need not be mailed to a corporation, partnership, or
25 association. The citation notice shall be in substantially the
26 following form:

 

 

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1
"CITATION NOTICE
2         (Name and address of Court)
3         Name of Case: (Name of Judgment Creditor),
4             Judgment Creditor v.
5             (Name of Judgment Debtor),
6             Judgment Debtor.
7         Address of Judgment Debtor: (Insert last known
8             address)
9         Name and address of Attorney for Judgment
10             Creditor or of Judgment Creditor (If no
11             attorney is listed): (Insert name and address)
12         Amount of Judgment: $ (Insert amount)
13         Name of Person Receiving Citation: (Insert name)
14         Court Date and Time: (Insert return date and time
15             specified in citation)
16     NOTICE: The court has issued a citation against the person
17 named above. The citation directs that person to appear in
18 court to be examined for the purpose of allowing the judgment
19 creditor to discover income and assets belonging to the
20 judgment debtor or in which the judgment debtor has an
21 interest. The citation was issued on the basis of a judgment
22 against the judgment debtor in favor of the judgment creditor
23 in the amount stated above. On or after the court date stated
24 above, the court may compel the application of any discovered
25 income or assets toward payment on the judgment.
26     The amount of income or assets that may be applied toward

 

 

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1 the judgment is limited by federal and Illinois law. The
2 JUDGMENT DEBTOR HAS THE RIGHT TO ASSERT STATUTORY EXEMPTIONS
3 AGAINST CERTAIN INCOME OR ASSETS OF THE JUDGMENT DEBTOR WHICH
4 MAY NOT BE USED TO SATISFY THE JUDGMENT IN THE AMOUNT STATED
5 ABOVE:
6         (1) Under Illinois or federal law, the exemptions of
7     personal property owned by the debtor include the debtor's
8     equity interest, not to exceed $4,000 in value, in any
9     personal property as chosen by the debtor; Social Security
10     and SSI benefits; public assistance benefits; unemployment
11     compensation benefits; worker's compensation benefits;
12     veteran's benefits; circuit breaker property tax relief
13     benefits; the debtor's equity interest, not to exceed
14     $2,400 in value, in any one motor vehicle, and the debtor's
15     equity interest, not to exceed $1,500 in value, in any
16     implements, professional books, or tools of the trade of
17     the debtor.
18         (2) Under Illinois law, every person is entitled to an
19     estate in homestead, when it is owned and occupied as a
20     residence, to the extent in value of $15,000, which
21     homestead is exempt from judgment.
22         (3) Under Illinois law, the amount of wages that may be
23     applied toward a judgment is limited to the lesser of (i)
24     15% of gross weekly wages or (ii) the amount by which
25     disposable earnings for a week exceed the total of 45 times
26     the federal minimum hourly wage or, under a wage deduction

 

 

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1     summons served on or after January 1, 2006, the Illinois
2     minimum hourly wage, whichever is greater.
3         (4) Under federal law, the amount of wages that may be
4     applied toward a judgment is limited to the lesser of (i)
5     25% of disposable earnings for a week or (ii) the amount by
6     which disposable earnings for a week exceed 30 times the
7     federal minimum hourly wage.
8         (5) Pension and retirement benefits and refunds may be
9     claimed as exempt under Illinois law.
10     The judgment debtor may have other possible exemptions
11 under the law.
12     THE JUDGMENT DEBTOR HAS THE RIGHT AT THE CITATION HEARING
13 TO DECLARE EXEMPT CERTAIN INCOME OR ASSETS OR BOTH. The
14 judgment debtor also has the right to seek a declaration at an
15 earlier date, by notifying the clerk in writing at (insert
16 address of clerk). When so notified, the Clerk of the Court
17 will obtain a prompt hearing date from the court and will
18 provide the necessary forms that must be prepared by the
19 judgment debtor or the attorney for the judgment debtor and
20 sent to the judgment creditor and the judgment creditor's
21 attorney regarding the time and location of the hearing. This
22 notice may be sent by regular first class mail."
23     (c) When assets or income of the judgment debtor not exempt
24 from the satisfaction of a judgment, a deduction order or
25 garnishment are discovered, the court may, by appropriate order
26 or judgment:

 

 

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1         (1) Compel the judgment debtor to deliver up, to be
2     applied in satisfaction of the judgment, in whole or in
3     part, money, choses in action, property or effects in his
4     or her possession or control, so discovered, capable of
5     delivery and to which his or her title or right of
6     possession is not substantially disputed.
7         (2) Compel the judgment debtor to pay to the judgment
8     creditor or apply on the judgment, in installments, a
9     portion of his or her income, however or whenever earned or
10     acquired, as the court may deem proper, having due regard
11     for the reasonable requirements of the judgment debtor and
12     his or her family, if dependent upon him or her, as well as
13     any payments required to be made by prior order of court or
14     under wage assignments outstanding; provided that the
15     judgment debtor shall not be compelled to pay income which
16     would be considered exempt as wages under the Wage
17     Deduction Statute. The court may modify an order for
18     installment payments, from time to time, upon application
19     of either party upon notice to the other.
20         (3) Compel any person cited, other than the judgment
21     debtor, to deliver up any assets so discovered, to be
22     applied in satisfaction of the judgment, in whole or in
23     part, when those assets are held under such circumstances
24     that in an action by the judgment debtor he or she could
25     recover them in specie or obtain a judgment for the
26     proceeds or value thereof as for conversion or

 

 

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1     embezzlement. A judgment creditor may recover a corporate
2     judgment debtor's property on behalf of the judgment debtor
3     for use of the judgment creditor by filing an appropriate
4     petition within the citation proceedings.
5         (4) Enter any order upon or judgment against the person
6     cited that could be entered in any garnishment proceeding.
7         (5) Compel any person cited to execute an assignment of
8     any chose in action or a conveyance of title to real or
9     personal property or resign memberships in exchanges,
10     clubs, or other entities , in the same manner and to the
11     same extent as a court could do in any proceeding by a
12     judgment creditor to enforce payment of a judgment or in
13     aid of the enforcement of a judgment.
14         (6) Authorize the judgment creditor to maintain an
15     action against any person or corporation that, it appears
16     upon proof satisfactory to the court, is indebted to the
17     judgment debtor, for the recovery of the debt, forbid the
18     transfer or other disposition of the debt until an action
19     can be commenced and prosecuted to judgment, direct that
20     the papers or proof in the possession or control of the
21     debtor and necessary in the prosecution of the action be
22     delivered to the creditor or impounded in court, and
23     provide for the disposition of any moneys in excess of the
24     sum required to pay the judgment creditor's judgment and
25     costs allowed by the court.
26     (d) No order or judgment shall be entered under subsection

 

 

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1 (c) in favor of the judgment creditor unless there appears of
2 record a certification of mailing showing that a copy of the
3 citation and a copy of the citation notice was mailed to the
4 judgment debtor as required by subsection (b).
5     (e) All property ordered to be delivered up shall, except
6 as otherwise provided in this Section, be delivered to the
7 sheriff to be collected by the sheriff or sold at public sale
8 and the proceeds thereof applied towards the payment of costs
9 and the satisfaction of the judgment. If the judgment debtor's
10 property is of such a nature that it is not readily delivered
11 up to the sheriff for public sale or if another method of sale
12 is more appropriate to liquidate the property or enhance its
13 value at sale, the court may order the sale of such property by
14 the debtor, third party respondent, or by a selling agent other
15 than the sheriff upon such terms as are just and equitable. The
16 proceeds of sale, after deducting reasonable and necessary
17 expenses, are to be turned over to the creditor and applied to
18 the balance due on the judgment.
19     (f) (1) The citation may prohibit the party to whom it is
20     directed from making or allowing any transfer or other
21     disposition of, or interfering with, any property not
22     exempt from the enforcement of a judgment therefrom, a
23     deduction order or garnishment, belonging to the judgment
24     debtor or to which he or she may be entitled or which may
25     thereafter be acquired by or become due to him or her, and
26     from paying over or otherwise disposing of any moneys not

 

 

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1     so exempt which are due or to become due to the judgment
2     debtor, until the further order of the court or the
3     termination of the proceeding, whichever occurs first. The
4     third party may not be obliged to withhold the payment of
5     any moneys beyond double the amount of the balance due
6     sought to be enforced by the judgment creditor. The court
7     may punish any party who violates the restraining provision
8     of a citation as and for a contempt, or if the party is a
9     third party may enter judgment against him or her in the
10     amount of the unpaid portion of the judgment and costs
11     allowable under this Section, or in the amount of the value
12     of the property transferred, whichever is lesser.
13         (2) The court may enjoin any person, whether or not a
14     party to the supplementary proceeding, from making or
15     allowing any transfer or other disposition of, or
16     interference with, the property of the judgment debtor not
17     exempt from the enforcement of a judgment, a deduction
18     order or garnishment, or the property or debt not so exempt
19     concerning which any person is required to attend and be
20     examined until further direction in the premises. The
21     injunction order shall remain in effect until vacated by
22     the court or until the proceeding is terminated, whichever
23     first occurs.
24     (g) If it appears that any property, chose in action,
25 credit or effect discovered, or any interest therein, is
26 claimed by any person, the court shall, as in garnishment

 

 

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1 proceedings, permit or require the claimant to appear and
2 maintain his or her right. The rights of the person cited and
3 the rights of any adverse claimant shall be asserted and
4 determined pursuant to the law relating to garnishment
5 proceedings.
6     (h) Costs in proceedings authorized by this Section shall
7 be allowed, assessed and paid in accordance with rules,
8 provided that if the court determines, in its discretion, that
9 costs incurred by the judgment creditor were improperly
10 incurred, those costs shall be paid by the judgment creditor.
11     (i) This Section is in addition to and does not affect
12 enforcement of judgments or proceedings supplementary thereto,
13 by any other methods now or hereafter provided by law.
14     (j) This Section does not grant the power to any court to
15 order installment or other payments from, or compel the sale,
16 delivery, surrender, assignment or conveyance of any property
17 exempt by statute from the enforcement of a judgment thereon, a
18 deduction order, garnishment, attachment, sequestration,
19 process or other levy or seizure.
20     (k) (Blank).
21     (k-5) If the court determines that any property held by a
22 third party respondent is wages pursuant to Section 12-801, the
23 court shall proceed as if a wage deduction proceeding had been
24 filed and proceed to enter such necessary and proper orders as
25 would have been entered in a wage deduction proceeding
26 including but not limited to the granting of the statutory

 

 

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1 exemptions allowed by Section 12-803 and all other remedies
2 allowed plaintiff and defendant pursuant to Part 8 of Article
3 12 of this Act.
4     (l) At any citation hearing at which the judgment debtor
5 appears and seeks a declaration that certain of his or her
6 income or assets are exempt, the court shall proceed to
7 determine whether the property which the judgment debtor
8 declares to be exempt is exempt from judgment. At any time
9 before the return date specified on the citation, the judgment
10 debtor may request, in writing, a hearing to declare exempt
11 certain income and assets by notifying the clerk of the court
12 before that time, using forms as may be provided by the clerk
13 of the court. The clerk of the court will obtain a prompt
14 hearing date from the court and will provide the necessary
15 forms that must be prepared by the judgment debtor or the
16 attorney for the judgment debtor and sent to the judgment
17 creditor, or the judgment creditor's attorney, regarding the
18 time and location of the hearing. This notice may be sent by
19 regular first class mail. At the hearing, the court shall
20 immediately, unless for good cause shown that the hearing is to
21 be continued, shall proceed to determine whether the property
22 which the judgment debtor declares to be exempt is exempt from
23 judgment. The restraining provisions of subsection (f) shall
24 not apply to any property determined by the court to be exempt.
25     (m) The judgment or balance due on the judgment becomes a
26 lien when a citation is served in accordance with subsection

 

 

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1 (a) of this Section. The lien binds nonexempt personal
2 property, including money, choses in action, and effects of the
3 judgment debtor as follows:
4         (1) When the citation is directed against the judgment
5     debtor, upon all personal property belonging to the
6     judgment debtor in the possession or control of the
7     judgment debtor or which may thereafter be acquired or come
8     due to the judgment debtor to the time of the disposition
9     of the citation.
10         (2) When the citation is directed against a third
11     party, upon all personal property belonging to the judgment
12     debtor in the possession or control of the third party or
13     which thereafter may be acquired or come due the judgment
14     debtor and comes into the possession or control of the
15     third party to the time of the disposition of the citation.
16     The lien established under this Section does not affect the
17 rights of citation respondents in property prior to the service
18 of the citation upon them and does not affect the rights of
19 bona fide purchasers or lenders without notice of the citation.
20 The lien is effective for the period specified by Supreme Court
21 Rule.
22     This subsection (m), as added by Public Act 88-48, is a
23 declaration of existing law.
24     (n) If any provision of this Act or its application to any
25 person or circumstance is held invalid, the invalidity of that
26 provision or application does not affect the provisions or

 

 

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1 applications of the Act that can be given effect without the
2 invalid provision or application.
3 (Source: P.A. 94-293, eff. 1-1-06; 94-306, eff. 1-1-06; revised
4 8-19-05.)
 
5     (735 ILCS 5/5-126.5 new)
6     Sec. 5-126.5. Expenses. The plaintiff shall be allowed to
7 recover as costs those expenses required by law or a law
8 enforcement or court officer for the purposes of enforcing a
9 judgment including levy bonds, replevin bonds, certification
10 of court orders, recording certified orders or memoranda of
11 judgment, and expenses for those assisting a sheriff or other
12 court officer in enforcing court orders including, but not
13 limited to, orders for possession, replevin orders, and
14 personal property levies.
 
15     (735 ILCS 5/12-501)  (from Ch. 110, par. 12-501)
16     Sec. 12-501. Registration of Federal judgments. Judgments
17 of courts of the United States held, within this State, and all
18 process, returns, certificates of the levy of a process, and
19 records of such courts may be registered, recorded, docketed,
20 indexed or otherwise dealt with in, the public offices of this
21 State, so as to make them conform to the rules and requirements
22 relating to judgments of courts of this State. A certified copy
23 of a federal judgment order entered in this State may be filed
24 in any circuit court and shall be afforded recognition as if it

 

 

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1 were a judgment entered in any other circuit court of this
2 State.
3 (Source: P.A. 83-707.)
 
4     (735 ILCS 5/12-803)  (from Ch. 110, par. 12-803)
5     Sec. 12-803. Wages Maximum wages subject to collection. The
6 maximum wages, salary, commissions and bonuses subject to
7 collection under a deduction order, for any work week shall be
8 not exceed the lesser of (1) 15% of such gross amount paid for
9 that week or (2) the amount by which disposable earnings for a
10 week exceed 45 times the Federal Minimum Hourly Wage prescribed
11 by Section 206(a)(1) of Title 29 of the United States Code, as
12 amended, or, under a wage deduction summons served on or after
13 January 1, 2006, the minimum hourly wage prescribed by Section
14 4 of the Minimum Wage Law, whichever is greater, in effect at
15 the time the amounts are payable. This provision (and no other)
16 applies irrespective of the place where the compensation was
17 earned or payable and the State where the employee resides. No
18 amounts required by law to be withheld may be taken from the
19 amount collected by the creditor. The term "disposable
20 earnings" means that part of the earnings of any individual
21 remaining after the deduction from those earnings of any
22 amounts required by law to be withheld.
23 (Source: P.A. 94-306, eff. 1-1-06.)
 
24     (735 ILCS 5/12-808)  (from Ch. 110, par. 12-808)

 

 

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1     Sec. 12-808. Duty of employer.
2     (a) An employer served as herein provided shall pay the
3 employee the amount of his or her exempt wages.
4     (b) To the extent of the amount due upon the judgment and
5 costs, the employer shall hold, subject to order of court, any
6 non-exempt wages due or which subsequently come due. The
7 judgment or balance due thereon is a lien on wages due at the
8 time of the service of summons, and such lien shall continue as
9 to subsequent earnings until the total amount due upon the
10 judgment and costs is paid, except that such lien on subsequent
11 earnings shall terminate sooner if the employment relationship
12 is terminated or if the underlying judgment is vacated or
13 modified.
14     (b-5) If the employer is a federal agency employer and the
15 creditor is represented by an attorney, then the employer, upon
16 service of summons and to the extent of the amount due upon the
17 judgment and costs, shall commence to pay over to the attorney
18 for the judgment creditor any non-exempt wages due or that
19 subsequently come due. The attorney for the judgment creditor
20 shall thereafter hold the deducted wages subject to further
21 order of the court and shall make answer to the court regarding
22 amounts received from the federal agency employer. The federal
23 agency employer's periodic payments shall be considered a
24 sufficient answer to the interrogatories.
25     (c) Except as provided in subsection (b-5), the employer
26 shall file, on or before the return date or within the further

 

 

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1 time that the court for cause may allow, a written answer under
2 oath to the interrogatories, setting forth the amount due as
3 wages to the judgment debtor for the payroll periods ending
4 immediately prior to the service of the summons and a summary
5 of the computation used to determine the amount of non-exempt
6 wages. Except as provided in subsection (b-5), the employer
7 shall mail by first class mail or hand deliver a copy of the
8 answer to the judgment debtor at the address specified in the
9 affidavit filed under Section 12-805 of this Act, or at any
10 other address or location of the judgment debtor known to the
11 employer.
12     A lien obtained hereunder shall have priority over any
13 subsequent lien obtained hereunder, except that liens for the
14 support of a spouse or dependent children shall have priority
15 over all other liens obtained hereunder. Subsequent summonses
16 shall be effective in the order in which they are served.
17     (d) The Illinois Supreme Court may by rule allow an
18 employer to file answers to interrogatories by facsimile
19 transmission.
20     (e) Pursuant to answer under oath to the interrogatories by
21 the employer, an order shall be entered compelling the employer
22 to deduct from wages of the judgment debtor subject to
23 collection under a deduction order an amount which is not to
24 exceed the lesser of (i) 15% of the gross amount of the wages
25 or (ii) the amount by which disposable earnings for a week
26 exceed 45 times the Federal Minimum Hourly Wage prescribed by

 

 

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1 Section 206(a)(1) of Title 29 of the United States Code, as
2 amended, in effect at the time the amounts are payable, for
3 each pay period in which statutory exemptions under Section
4 12-804 and child support garnishments, if any, leave funds to
5 be remitted or, under a wage deduction summons served on or
6 after January 1, 2006, the minimum hourly wage prescribed by
7 Section 4 of the Minimum Wage Law, whichever is greater. The
8 order shall further provide that deducted wages shall be
9 remitted to the creditor or creditor's attorney on a monthly
10 basis.
11     (f) If after the entry of a deduction order, the employer
12 ceases to remit funds to the plaintiff pursuant to the order
13 without a lawful excuse (which would terminate the employer's
14 obligation under the deduction order such as the debtor having
15 filed a bankruptcy, the debtor having left employment or the
16 employer having received service of a support order against the
17 judgment debtor having priority over the wage deduction
18 proceedings), the court shall, upon plaintiff's motion, enter a
19 conditional judgment against the employer for the balance due
20 on the judgment. The plaintiff may then issue a Summons After
21 Conditional Judgment. After service of the Summons After
22 Conditional Judgment, the employer may show cause why the
23 conditional judgment, or some portion thereof should not be
24 made a final judgment. If the employer shall fail to respond or
25 show cause why the conditional judgment or some portion thereof
26 should not be made final, the court shall confirm the

 

 

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1 conditional judgment and make it final as to the employer plus
2 additional court costs.
3 (Source: P.A. 94-306, eff. 1-1-06.)
 
4     (735 ILCS 5/12-808.5)
5     Sec. 12-808.5. Certification of judgment balance. Whenever
6 a wage deduction order has not been fully satisfied by the end
7 of the first full calendar quarter following the date of
8 service of the wage deduction summons:
9         (1) The judgment creditor or his attorney shall prepare
10     a certification that states the amount of the judgment
11     remaining unsatisfied as of the last calendar day of each
12     full calendar quarter for which the wage deduction order
13     continues in effect.
14         (2) The certification shall be mailed or delivered to
15     the employer by the judgment creditor or his or her
16     attorney within 15 days after the end of each calendar
17     quarter for which the wage deduction order continues in
18     effect. The employer shall hand deliver or mail by first
19     class mail a copy of the certification to the judgment
20     debtor at the judgment debtor's last known address.
21         (3) In the event that the plaintiff fails to provide
22     the certification required by this Section, the employer
23     must continue to withhold funds from the defendant's wages
24     but may hold the funds without remitting to the plaintiff
25     until such time as it receives a certification required by

 

 

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1     this Section. A certification of judgment balance need not
2     be filed with the court.
3         (4) Any party to the wage deduction proceeding may,
4     upon motion with notice to all other parties, ask the court
5     to review the balance due claimed by the judgment creditor.
6 (Source: P.A. 90-677, eff. 1-1-99.)
 
7     (735 ILCS 5/12-814)  (from Ch. 110, par. 12-814)
8     Sec. 12-814. Costs and fees.
9     (a) The costs of obtaining a deduction order shall be
10 charged to the judgment debtor, unless the court determines, in
11 its discretion, that costs incurred by the judgment creditor
12 were improperly incurred, in which case those costs shall be
13 paid by the judgment creditor.
14     (b) No fee shall be paid by an employer for filing his or
15 her appearance, answer or satisfaction of judgment against him
16 or her.
17     (c) A fee consisting of the greater of $12 or 2% of the
18 amount required to be deducted by any deduction order or series
19 of deduction orders arising out of the same judgment debt shall
20 be allowed and paid to the employer, and the amount so paid
21 shall be charged to the judgment debtor.
22     (d) No other fee shall be paid to an employer at the time
23 of service of the summons or at any other time thereafter
24 unless he or she is subpoenaed to appear as a witness, in which
25 case he or she is entitled to witness fees as in other civil

 

 

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1 cases.
2 (Source: P.A. 87-569.)
 
3     (735 ILCS 5/19-117)  (from Ch. 110, par. 19-117)
4     Sec. 19-117. Service upon defendant. It shall be the duty
5 of the officer having an order for replevin, to serve the same
6 upon the defendant, whether the property is found or delivered
7 to him or her, or not, unless, when none of the property is
8 found, the officer is otherwise directed by the plaintiff or
9 his or her attorney or agent.
10     If the defendant fails to deliver up to the sheriff the
11 chattel which is the subject of the order for replevin and the
12 plaintiff has a reasonable belief as to where the chattel is
13 sequestered, the court may authorize the sheriff to use
14 reasonable force to enter into the property to recover same
15 upon such terms and conditions as the court may direct.
16 (Source: P.A. 82-280.)
 
17     (735 ILCS 5/19-123)  (from Ch. 110, par. 19-123)
18     Sec. 19-123. Judgment against plaintiff. If the plaintiff
19 in an action of replevin obtains an order for replevin and
20 fails to prosecute the action with effect, or allows a
21 voluntary or involuntary dismissal, or if the right of property
22 is adjudged against the plaintiff, judgment shall be entered
23 for a return of the property if such property has been
24 delivered to the plaintiff, and damages for the use thereof

 

 

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1 from the time it was taken until a return thereof is made,
2 unless the plaintiff shall, in the meantime, have become
3 entitled to the possession of the property, in which event
4 judgment may be entered against the plaintiff for costs and
5 such damage as the defendant has sustained; or if the property
6 was held for the payment of any money, the judgment may be in
7 the alternative that the plaintiff pay the amount for which the
8 same was rightfully held, with proper damages, within a given
9 time, or make return of the property in case such property was
10 delivered to the plaintiff.
11 (Source: P.A. 82-280.)
 
12     (735 ILCS 5/19-129 new)
13     Sec. 19-129. Mobile homes. If the chattel which is the
14 subject of the replevin action is a mobile home and is occupied
15 by the defendant or other persons, the court may issue a
16 forcible order directing the sheriff to remove the personal
17 property of the defendant or occupants from the mobile home
18 provided that the defendants and unknown occupants are given
19 notice of plaintiff's intent to seek a forcible order and that
20 upon entry of said order for possession, the execution is
21 stayed for a reasonable time as determined by the court so as
22 to allow the defendants and unknown occupants to remove their
23 property from the mobile home.

 

 

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1 INDEX
2 Statutes amended in order of appearance
3     735 ILCS 5/2-1402 from Ch. 110, par. 2-1402
4     735 ILCS 5/5-126.5 new
5     735 ILCS 5/12-501 from Ch. 110, par. 12-501
6     735 ILCS 5/12-803 from Ch. 110, par. 12-803
7     735 ILCS 5/12-808 from Ch. 110, par. 12-808
8     735 ILCS 5/12-808.5
9     735 ILCS 5/12-814 from Ch. 110, par. 12-814
10     735 ILCS 5/19-117 from Ch. 110, par. 19-117
11     735 ILCS 5/19-123 from Ch. 110, par. 19-123
12     735 ILCS 5/19-129 new