Sen. Ira I. Silverstein

Filed: 2/28/2007

 

 


 

 


 
09500SB0229sam002 LRB095 07909 AJO 32342 a

1
AMENDMENT TO SENATE BILL 229

2     AMENDMENT NO. ______. Amend Senate Bill 229 on page 1,
3 immediately below line 3, by inserting the following:
 
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

 

 

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1         (4) any other item containing information pertaining
2     to any relationship established in the ordinary course of a
3     bank's business between a bank and its customer, including
4     financial statements or other financial information
5     provided by the customer.
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 bank having custody of the records,
10     or the examination of the records by a certified public
11     accountant engaged by the bank to perform an independent
12     audit.
13         (2) The examination of any financial records by, or the
14     furnishing of financial records by a bank to, any officer,
15     employee or agent of (i) the Commissioner of Banks and Real
16     Estate, (ii) after May 31, 1997, a state regulatory
17     authority authorized to examine a branch of a State bank
18     located in another state, (iii) the Comptroller of the
19     Currency, (iv) the Federal Reserve Board, or (v) the
20     Federal Deposit Insurance Corporation for use solely in the
21     exercise of his duties as an officer, employee, or agent.
22         (3) The publication of data furnished from financial
23     records relating to customers where the data cannot be
24     identified to any particular customer or account.
25         (4) The making of reports or returns required under
26     Chapter 61 of the Internal Revenue Code of 1986.

 

 

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

 

 

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

 

 

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1         (15) The exchange in the regular course of business of
2     information between a bank and any commonly owned affiliate
3     of the bank, subject to the provisions of the Financial
4     Institutions Insurance Sales Law.
5         (16) 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 bank that a customer who is an elderly or disabled
12     person has been or may become the victim of financial
13     exploitation. For the purposes of this item (16), the term:
14     (i) "elderly person" means a person who is 60 or more years
15     of age, (ii) "disabled person" means a person who has or
16     reasonably appears to the bank to have a physical or mental
17     disability that impairs his or her ability to seek or
18     obtain protection from or prevent financial exploitation,
19     and (iii) "financial exploitation" means tortious or
20     illegal use of the assets or resources of an elderly or
21     disabled person, and includes, without limitation,
22     misappropriation of the elderly or disabled person's
23     assets or resources by undue influence, breach of fiduciary
24     relationship, intimidation, fraud, deception, extortion,
25     or the use of assets or resources in any manner contrary to
26     law. A bank or person furnishing information pursuant to

 

 

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1     this item (16) shall be entitled to the same rights and
2     protections as a person furnishing information under the
3     Elder Abuse and Neglect Act, the Illinois Domestic Violence
4     Act of 1986, and the Abuse of Adults with Disabilities
5     Intervention Act.
6         (17) The disclosure of financial records or
7     information as necessary to effect, administer, or enforce
8     a transaction requested or authorized by the customer, or
9     in connection with:
10             (A) servicing or processing a financial product or
11         service requested or authorized by the customer;
12             (B) maintaining or servicing a customer's account
13         with the bank; or
14             (C) a proposed or actual securitization or
15         secondary market sale (including sales of servicing
16         rights) related to a transaction of a customer.
17         Nothing in this item (17), however, authorizes the sale
18     of the financial records or information of a customer
19     without the consent of the customer.
20         (18) The disclosure of financial records or
21     information as necessary to protect against actual or
22     potential fraud, unauthorized transactions, claims, or
23     other liability.
24         (19)(a) The disclosure of financial records or
25     information related to a private label credit program
26     between a financial institution and a private label party

 

 

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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 (19) of
7     subsection (b) of Section 48.1, 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 (19) of subsection
14     (b) of Section 48.l, 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     (c) Except as otherwise provided by this Act, a bank may
20 not disclose to any person, except to the customer or his duly
21 authorized agent, any financial records or financial
22 information obtained from financial records relating to that
23 customer of that bank unless:
24         (1) the customer has authorized disclosure to the
25     person;
26         (2) the financial records are disclosed in response to

 

 

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1     a lawful subpoena, summons, warrant, citation to discover
2     assets, or court order which meets the requirements of
3     subsection (d) of this Section; or
4         (3) the bank is attempting to collect an obligation
5     owed to the bank and the bank complies with the provisions
6     of Section 2I of the Consumer Fraud and Deceptive Business
7     Practices Act.
8     (d) A bank shall disclose financial records under paragraph
9 (2) of subsection (c) of this Section under a lawful subpoena,
10 summons, warrant, citation to discover assets, or court order
11 only after the bank mails a copy of the subpoena, summons,
12 warrant, citation to discover assets, or court order to the
13 person establishing the relationship with the bank, if living,
14 and, otherwise his personal representative, if known, at his
15 last known address by first class mail, postage prepaid, unless
16 the bank is specifically prohibited from notifying the person
17 by order of court or by applicable State or federal law. A bank
18 shall not mail a copy of a subpoena to any person pursuant to
19 this subsection if the subpoena was issued by a grand jury
20 under the Statewide Grand Jury Act.
21     (e) Any officer or employee of a bank who knowingly and
22 willfully furnishes financial records in violation of this
23 Section is guilty of a business offense and, upon conviction,
24 shall be fined not more than $1,000.
25     (f) Any person who knowingly and willfully induces or
26 attempts to induce any officer or employee of a bank to

 

 

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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) A bank shall be reimbursed for costs that are
5 reasonably necessary and that have been directly incurred in
6 searching for, reproducing, or transporting books, papers,
7 records, or other data of a customer required or requested to
8 be produced pursuant to a lawful subpoena, summons, warrant,
9 citation to discover assets, or court order. The Commissioner
10 shall determine the rates and conditions under which payment
11 may be made.
12 (Source: P.A. 94-495, eff. 8-8-05; 94-851, eff. 6-13-06.)
 
13     Section 2.5. The Illinois Savings and Loan Act of 1985 is
14 amended by changing Section 3-8 as follows:
 
15     (205 ILCS 105/3-8)  (from Ch. 17, par. 3303-8)
16     Sec. 3-8. Access to books and records; communication with
17 members.
18     (a) Every member or holder of capital shall have the right
19 to inspect the books and records of the association that
20 pertain to his account. Otherwise, the right of inspection and
21 examination of the books and records shall be limited as
22 provided in this Act, and no other person shall have access to
23 the books and records or shall be entitled to a list of the
24 members.

 

 

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1     (b) For the purpose of this Section, the term "financial
2 records" means any original, any copy, or any summary of (i) a
3 document granting signature authority over a deposit or
4 account; (ii) a statement, ledger card, or other record on any
5 deposit or account that shows each transaction in or with
6 respect to that account; (iii) a check, draft, or money order
7 drawn on an association or issued and payable by an
8 association; or (iv) any other item containing information
9 pertaining to any relationship established in the ordinary
10 course of an association's business between an association and
11 its customer, including financial statements or other
12 financial information provided by the member or holder of
13 capital.
14     (c) This Section does not prohibit:
15         (1) The preparation, examination, handling, or
16     maintenance of any financial records by any officer,
17     employee, or agent of an association having custody of
18     those records or the examination of those records by a
19     certified public accountant engaged by the association to
20     perform an independent audit.
21         (2) The examination of any financial records by, or the
22     furnishing of financial records by an association to, any
23     officer, employee, or agent of the Commissioner of Banks
24     and Real Estate or federal depository institution
25     regulator for use solely in the exercise of his duties as
26     an officer, employee, or agent.

 

 

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

 

 

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1     Generation-Skipping Transfer Tax Act.
2         (10) The furnishing of information pursuant to the
3     federal "Currency and Foreign Transactions Reporting Act",
4     (Title 31, United States Code, Section 1051 et seq.).
5         (11) The furnishing of information pursuant to any
6     other statute that by its terms or by regulations
7     promulgated thereunder requires the disclosure of
8     financial records other than by subpoena, summons,
9     warrant, or court order.
10         (12) The exchange of information between an
11     association and an affiliate of the association; as used in
12     this item, "affiliate" includes any company, partnership,
13     or organization that controls, is controlled by, or is
14     under common control with an association.
15         (13) The furnishing of information in accordance with
16     the federal Personal Responsibility and Work Opportunity
17     Reconciliation Act of 1996. Any association governed by
18     this Act shall enter into an agreement for data exchanges
19     with a State agency provided the State agency pays to the
20     association a reasonable fee not to exceed its actual cost
21     incurred. An association providing information in
22     accordance with this item shall not be liable to any
23     account holder or other person for any disclosure of
24     information to a State agency, for encumbering or
25     surrendering any assets held by the association in response
26     to a lien or order to withhold and deliver issued by a

 

 

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1     State agency, or for any other action taken pursuant to
2     this item, including individual or mechanical errors,
3     provided the action does not constitute gross negligence or
4     willful misconduct. An association shall have no
5     obligation to hold, encumber, or surrender assets until it
6     has been served with a subpoena, summons, warrant, court or
7     administrative order, lien, or levy.
8         (14) The furnishing of information to law enforcement
9     authorities, the Illinois Department on Aging and its
10     regional administrative and provider agencies, the
11     Department of Human Services Office of Inspector General,
12     or public guardians: (i) upon subpoena by the investigatory
13     entity or the guardian, or (ii) if there is suspicion by
14     the association that a customer who is an elderly or
15     disabled person has been or may become the victim of
16     financial exploitation. For the purposes of this item (14),
17     the term: (i) "elderly person" means a person who is 60 or
18     more years of age, (ii) "disabled person" means a person
19     who has or reasonably appears to the association to have a
20     physical or mental disability that impairs his or her
21     ability to seek or obtain protection from or prevent
22     financial exploitation, and (iii) "financial exploitation"
23     means tortious or illegal use of the assets or resources of
24     an elderly or disabled person, and includes, without
25     limitation, misappropriation of the elderly or disabled
26     person's assets or resources by undue influence, breach of

 

 

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1     fiduciary relationship, intimidation, fraud, deception,
2     extortion, or the use of assets or resources in any manner
3     contrary to law. An association or person furnishing
4     information pursuant to this item (14) shall be entitled to
5     the same rights and protections as a person furnishing
6     information under the Elder Abuse and Neglect Act, the
7     Illinois Domestic Violence Act of 1986, and the Abuse of
8     Adults with Disabilities Intervention Act.
9         (15) The disclosure of financial records or
10     information as necessary to effect, administer, or enforce
11     a transaction requested or authorized by the member or
12     holder of capital, or in connection with:
13             (A) servicing or processing a financial product or
14         service requested or authorized by the member or holder
15         of capital;
16             (B) maintaining or servicing an account of a member
17         or holder of capital with the association; or
18             (C) a proposed or actual securitization or
19         secondary market sale (including sales of servicing
20         rights) related to a transaction of a member or holder
21         of capital.
22         Nothing in this item (15), however, authorizes the sale
23     of the financial records or information of a member or
24     holder of capital without the consent of the member or
25     holder of capital.
26         (16) The disclosure of financial records or

 

 

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

 

 

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1 agent, any financial records relating to that member or holder
2 of capital of that association unless:
3         (1) The member or holder of capital has authorized
4     disclosure to the person; or
5         (2) The financial records are disclosed in response to
6     a lawful subpoena, summons, warrant, citation to discover
7     assets, or court order that meets the requirements of
8     subsection (e) of this Section.
9     (e) An association shall disclose financial records under
10 subsection (d) of this Section pursuant to a lawful subpoena,
11 summons, warrant, citation to discover assets, or court order
12 only after the association mails a copy of the subpoena,
13 summons, warrant, citation to discover assets, or court order
14 to the person establishing the relationship with the
15 association, if living, and, otherwise, his personal
16 representative, if known, at his last known address by first
17 class mail, postage prepaid, unless the association is
18 specifically prohibited from notifying that person by order of
19 court.
20     (f)(1) Any officer or employee of an association who
21 knowingly and willfully furnishes financial records in
22 violation of this Section is guilty of a business offense and,
23 upon conviction, shall be fined not more than $1,000.
24     (2) Any person who knowingly and willfully induces or
25 attempts to induce any officer or employee of an association 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     (g) However, if any member desires to communicate with the
4 other members of the association with reference to any question
5 pending or to be presented at a meeting of the members, the
6 association shall give him upon request a statement of the
7 approximate number of members entitled to vote at the meeting
8 and an estimate of the cost of preparing and mailing the
9 communication. The requesting member then shall submit the
10 communication to the Commissioner who, if he finds it to be
11 appropriate and truthful, shall direct that it be prepared and
12 mailed to the members upon the requesting member's payment or
13 adequate provision for payment of the expenses of preparation
14 and mailing.
15     (h) An association shall be reimbursed for costs that are
16 necessary and that have been directly incurred in searching
17 for, reproducing, or transporting books, papers, records, or
18 other data of a customer required to be reproduced pursuant to
19 a lawful subpoena, warrant, citation to discover assets, or
20 court order.
21 (Source: P.A. 93-271, eff. 7-22-03; 94-495, eff. 8-8-05;
22 94-851, eff. 6-13-06.)
 
23     Section 3. The Savings Bank Act is amended by changing
24 Section 4013 as follows:
 

 

 

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1     (205 ILCS 205/4013)  (from Ch. 17, par. 7304-13)
2     Sec. 4013. Access to books and records; communication with
3 members and shareholders.
4     (a) Every member or shareholder shall have the right to
5 inspect books and records of the savings bank that pertain to
6 his accounts. Otherwise, the right of inspection and
7 examination of the books and records shall be limited as
8 provided in this Act, and no other person shall have access to
9 the books and records nor shall be entitled to a list of the
10 members or shareholders.
11     (b) For the purpose of this Section, the term "financial
12 records" means any original, any copy, or any summary of (1) a
13 document granting signature authority over a deposit or
14 account; (2) a statement, ledger card, or other record on any
15 deposit or account that shows each transaction in or with
16 respect to that account; (3) a check, draft, or money order
17 drawn on a savings bank or issued and payable by a savings
18 bank; or (4) any other item containing information pertaining
19 to any relationship established in the ordinary course of a
20 savings bank's business between a savings bank and its
21 customer, including financial statements or other financial
22 information provided by the member or shareholder.
23     (c) This Section does not prohibit:
24         (1) The preparation examination, handling, or
25     maintenance of any financial records by any officer,
26     employee, or agent of a savings bank having custody of

 

 

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1     records or examination of records by a certified public
2     accountant engaged by the savings bank to perform an
3     independent audit.
4         (2) The examination of any financial records by, or the
5     furnishing of financial records by a savings bank to, any
6     officer, employee, or agent of the Commissioner of Banks
7     and Real Estate or the federal depository institution
8     regulator for use solely in the exercise of his duties as
9     an officer, employee, or agent.
10         (3) The publication of data furnished from financial
11     records relating to members or holders of capital where the
12     data cannot be identified to any particular member,
13     shareholder, or account.
14         (4) The making of reports or returns required under
15     Chapter 61 of the Internal Revenue Code of 1986.
16         (5) Furnishing information concerning the dishonor of
17     any negotiable instrument permitted to be disclosed under
18     the Uniform Commercial Code.
19         (6) The exchange in the regular course of business of
20     (i) credit information between a savings bank and other
21     savings banks or financial institutions or commercial
22     enterprises, directly or through a consumer reporting
23     agency or (ii) financial records or information derived
24     from financial records between a savings bank and other
25     savings banks or financial institutions or commercial
26     enterprises for the purpose of conducting due diligence

 

 

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1     pursuant to a purchase or sale involving the savings bank
2     or assets or liabilities of the savings bank.
3         (7) The furnishing of information to the appropriate
4     law enforcement authorities where the savings bank
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 which 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 furnishing of information in accordance with
20     the federal Personal Responsibility and Work Opportunity
21     Reconciliation Act of 1996. Any savings bank governed by
22     this Act shall enter into an agreement for data exchanges
23     with a State agency provided the State agency pays to the
24     savings bank a reasonable fee not to exceed its actual cost
25     incurred. A savings bank providing information in
26     accordance with this item shall not be liable to any

 

 

09500SB0229sam002 - 21 - LRB095 07909 AJO 32342 a

1     account holder or other person for any disclosure of
2     information to a State agency, for encumbering or
3     surrendering any assets held by the savings bank in
4     response to a lien or order to withhold and deliver issued
5     by a State agency, or for any other action taken pursuant
6     to this item, including individual or mechanical errors,
7     provided the action does not constitute gross negligence or
8     willful misconduct. A savings bank shall have no obligation
9     to hold, encumber, or surrender assets until it has been
10     served with a subpoena, summons, warrant, court or
11     administrative order, lien, or levy.
12         (13) The furnishing of information to law enforcement
13     authorities, the Illinois Department on Aging and its
14     regional administrative and provider agencies, the
15     Department of Human Services Office of Inspector General,
16     or public guardians: (i) upon subpoena by the investigatory
17     entity or the guardian, or (ii) if there is suspicion by
18     the savings bank that a customer who is an elderly or
19     disabled person has been or may become the victim of
20     financial exploitation. For the purposes of this item (13),
21     the term: (i) "elderly person" means a person who is 60 or
22     more years of age, (ii) "disabled person" means a person
23     who has or reasonably appears to the savings bank to have a
24     physical or mental disability that impairs his or her
25     ability to seek or obtain protection from or prevent
26     financial exploitation, and (iii) "financial exploitation"

 

 

09500SB0229sam002 - 22 - LRB095 07909 AJO 32342 a

1     means tortious or illegal use of the assets or resources of
2     an elderly or disabled person, and includes, without
3     limitation, misappropriation of the elderly or disabled
4     person's assets or resources by undue influence, breach of
5     fiduciary relationship, intimidation, fraud, deception,
6     extortion, or the use of assets or resources in any manner
7     contrary to law. A savings bank or person furnishing
8     information pursuant to this item (13) shall be entitled to
9     the same rights and protections as a person furnishing
10     information under the Elder Abuse and Neglect Act, the
11     Illinois Domestic Violence Act of 1986, and the Abuse of
12     Adults with Disabilities Intervention Act.
13         (14) The disclosure of financial records or
14     information as necessary to effect, administer, or enforce
15     a transaction requested or authorized by the member or
16     holder of capital, or in connection with:
17             (A) servicing or processing a financial product or
18         service requested or authorized by the member or holder
19         of capital;
20             (B) maintaining or servicing an account of a member
21         or holder of capital with the savings bank; or
22             (C) a proposed or actual securitization or
23         secondary market sale (including sales of servicing
24         rights) related to a transaction of a member or holder
25         of capital.
26         Nothing in this item (14), however, authorizes the sale

 

 

09500SB0229sam002 - 23 - LRB095 07909 AJO 32342 a

1     of the financial records or information of a member or
2     holder of capital without the consent of the member or
3     holder of capital.
4         (15) The exchange in the regular course of business of
5     information between a savings bank and any commonly owned
6     affiliate of the savings bank, subject to the provisions of
7     the Financial Institutions Insurance Sales Law.
8         (16) The disclosure of financial records or
9     information as necessary to protect against or prevent
10     actual or potential fraud, unauthorized transactions,
11     claims, or other liability.
12         (17)(a) The disclosure of financial records or
13     information related to a private label credit program
14     between a financial institution and a private label party
15     in connection with that private label credit program. Such
16     information is limited to outstanding balance, available
17     credit, payment and performance and account history,
18     product references, purchase information, and information
19     related to the identity of the customer.
20         (b)(l) For purposes of this paragraph (17) of
21     subsection (c) of Section 4013, a "private label credit
22     program" means a credit program involving a financial
23     institution and a private label party that is used by a
24     customer of the financial institution and the private label
25     party primarily for payment for goods or services sold,
26     manufactured, or distributed by a private label party.

 

 

09500SB0229sam002 - 24 - LRB095 07909 AJO 32342 a

1         (2) For purposes of this paragraph (17) of subsection
2     (c) of Section 4013, a "private label party" means, with
3     respect to a private label credit program, any of the
4     following: a retailer, a merchant, a manufacturer, a trade
5     group, or any such person's affiliate, subsidiary, member,
6     agent, or service provider.
7     (d) A savings bank may not disclose to any person, except
8 to the member or holder of capital or his duly authorized
9 agent, any financial records relating to that member or
10 shareholder of the savings bank unless:
11         (1) the member or shareholder has authorized
12     disclosure to the person; or
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     subsection (e) of this Section.
17     (e) A savings bank shall disclose financial records under
18 subsection (d) of this Section pursuant to a lawful subpoena,
19 summons, warrant, citation to discover assets, or court order
20 only after the savings bank mails a copy of the subpoena,
21 summons, warrant, citation to discover assets, or court order
22 to the person establishing the relationship with the savings
23 bank, if living, and otherwise, his personal representative, if
24 known, at his last known address by first class mail, postage
25 prepaid, unless the savings bank is specifically prohibited
26 from notifying the person by order of court.

 

 

09500SB0229sam002 - 25 - LRB095 07909 AJO 32342 a

1     (f) Any officer or employee of a savings bank who knowingly
2 and willfully furnishes financial records in violation of this
3 Section is guilty of a business offense and, upon conviction,
4 shall be fined not more than $1,000.
5     (g) Any person who knowingly and willfully induces or
6 attempts to induce any officer or employee of a savings bank to
7 disclose financial records in violation of this Section is
8 guilty of a business offense and, upon conviction, shall be
9 fined not more than $1,000.
10     (h) If any member or shareholder desires to communicate
11 with the other members or shareholders of the savings bank with
12 reference to any question pending or to be presented at an
13 annual or special meeting, the savings bank shall give that
14 person, upon request, a statement of the approximate number of
15 members or shareholders entitled to vote at the meeting and an
16 estimate of the cost of preparing and mailing the
17 communication. The requesting member shall submit the
18 communication to the Commissioner who, upon finding it to be
19 appropriate and truthful, shall direct that it be prepared and
20 mailed to the members upon the requesting member's or
21 shareholder's payment or adequate provision for payment of the
22 expenses of preparation and mailing.
23     (i) A savings bank shall be reimbursed for costs that are
24 necessary and that have been directly incurred in searching
25 for, reproducing, or transporting books, papers, records, or
26 other data of a customer required to be reproduced pursuant to

 

 

09500SB0229sam002 - 26 - LRB095 07909 AJO 32342 a

1 a lawful subpoena, warrant, citation to discover assets, or
2 court order.
3     (j) Notwithstanding the provisions of this Section, a
4 savings bank may sell or otherwise make use of lists of
5 customers' names and addresses. All other information
6 regarding a customer's account are subject to the disclosure
7 provisions of this Section. At the request of any customer,
8 that customer's name and address shall be deleted from any list
9 that is to be sold or used in any other manner beyond
10 identification of the customer's accounts.
11 (Source: P.A. 93-271, eff. 7-22-03; 94-495, eff. 8-8-05;
12 94-851, eff. 6-13-06.)
 
13     Section 3.5. The Illinois Credit Union Act is amended by
14 changing Section 10 as follows:
 
15     (205 ILCS 305/10)  (from Ch. 17, par. 4411)
16     Sec. 10. Credit union records; member financial records.
17     (1) A credit union shall establish and maintain books,
18 records, accounting systems and procedures which accurately
19 reflect its operations and which enable the Department to
20 readily ascertain the true financial condition of the credit
21 union and whether it is complying with this Act.
22     (2) A photostatic or photographic reproduction of any
23 credit union records shall be admissible as evidence of
24 transactions with the credit union.

 

 

09500SB0229sam002 - 27 - LRB095 07909 AJO 32342 a

1     (3)(a) For the purpose of this Section, the term "financial
2 records" means any original, any copy, or any summary of (1) a
3 document granting signature authority over an account, (2) a
4 statement, ledger card or other record on any account which
5 shows each transaction in or with respect to that account, (3)
6 a check, draft or money order drawn on a financial institution
7 or other entity or issued and payable by or through a financial
8 institution or other entity, or (4) any other item containing
9 information pertaining to any relationship established in the
10 ordinary course of business between a credit union and its
11 member, including financial statements or other financial
12 information provided by the member.
13     (b) This Section does not prohibit:
14         (1) The preparation, examination, handling or
15     maintenance of any financial records by any officer,
16     employee or agent of a credit union having custody of such
17     records, or the examination of such records by a certified
18     public accountant engaged by the credit union to perform an
19     independent audit.
20         (2) The examination of any financial records by or the
21     furnishing of financial records by a credit union to any
22     officer, employee or agent of the Department, the National
23     Credit Union Administration, Federal Reserve board or any
24     insurer of share accounts for use solely in the exercise of
25     his duties as an officer, employee or agent.
26         (3) The publication of data furnished from financial

 

 

09500SB0229sam002 - 28 - LRB095 07909 AJO 32342 a

1     records relating to members where the data cannot be
2     identified to any particular customer of account.
3         (4) The making of reports or returns required under
4     Chapter 61 of the Internal Revenue Code of 1954.
5         (5) Furnishing information concerning the dishonor of
6     any negotiable instrument permitted to be disclosed under
7     the Uniform Commercial Code.
8         (6) The exchange in the regular course of business of
9     (i) credit information between a credit union and other
10     credit unions or financial institutions or commercial
11     enterprises, directly or through a consumer reporting
12     agency or (ii) financial records or information derived
13     from financial records between a credit union and other
14     credit unions or financial institutions or commercial
15     enterprises for the purpose of conducting due diligence
16     pursuant to a merger or a purchase or sale of assets or
17     liabilities of the credit union.
18         (7) The furnishing of information to the appropriate
19     law enforcement authorities where the credit union
20     reasonably believes it has been the victim of a crime.
21         (8) The furnishing of information pursuant to the
22     Uniform Disposition of Unclaimed Property Act.
23         (9) The furnishing of information pursuant to the
24     Illinois Income Tax Act and the Illinois Estate and
25     Generation-Skipping Transfer Tax Act.
26         (10) The furnishing of information pursuant to the

 

 

09500SB0229sam002 - 29 - LRB095 07909 AJO 32342 a

1     federal "Currency and Foreign Transactions Reporting Act",
2     Title 31, United States Code, Section 1051 et sequentia.
3         (11) The furnishing of information pursuant to any
4     other statute which by its terms or by regulations
5     promulgated thereunder requires the disclosure of
6     financial records other than by subpoena, summons, warrant
7     or court order.
8         (12) The furnishing of information in accordance with
9     the federal Personal Responsibility and Work Opportunity
10     Reconciliation Act of 1996. Any credit union 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     credit union a reasonable fee not to exceed its actual cost
14     incurred. A credit union 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 credit union in
19     response to a lien or order to withhold and deliver issued
20     by a State agency, or for any other action taken pursuant
21     to this item, including individual or mechanical errors,
22     provided the action does not constitute gross negligence or
23     willful misconduct. A credit union shall have no obligation
24     to hold, encumber, or surrender assets until it has been
25     served with a subpoena, summons, warrant, court or
26     administrative order, lien, or levy.

 

 

09500SB0229sam002 - 30 - LRB095 07909 AJO 32342 a

1         (13) 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 credit union that a member 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 (13),
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 credit union 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. A credit union or person furnishing
23     information pursuant to this item (13) 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

 

 

09500SB0229sam002 - 31 - LRB095 07909 AJO 32342 a

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

 

 

09500SB0229sam002 - 32 - LRB095 07909 AJO 32342 a

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

 

 

09500SB0229sam002 - 33 - LRB095 07909 AJO 32342 a

1     Fraud and Deceptive Business Practices Act.
2     (d) A credit union shall disclose financial records under
3 subparagraph (c)(2) of this Section pursuant to a lawful
4 subpoena, summons, warrant, citation to discover assets, or
5 court order only after the credit union mails a copy of the
6 subpoena, summons, warrant, citation to discover assets, or
7 court order to the person establishing the relationship with
8 the credit union, if living, and otherwise his personal
9 representative, if known, at his last known address by first
10 class mail, postage prepaid unless the credit union is
11 specifically prohibited from notifying the person by order of
12 court or by applicable State or federal law. In the case of a
13 grand jury subpoena, a credit union shall not mail a copy of a
14 subpoena to any person pursuant to this subsection if the
15 subpoena was issued by a grand jury under the Statewide Grand
16 Jury Act or notifying the person would constitute a violation
17 of the federal Right to Financial Privacy Act of 1978.
18     (e)(1) Any officer or employee of a credit union who
19 knowingly and wilfully furnishes financial records in
20 violation of this Section is guilty of a business offense and
21 upon conviction thereof shall be fined not more than $1,000.
22     (2) Any person who knowingly and wilfully induces or
23 attempts to induce any officer or employee of a credit union to
24 disclose financial records in violation of this Section is
25 guilty of a business offense and upon conviction thereof shall
26 be fined not more than $1,000.

 

 

09500SB0229sam002 - 34 - LRB095 07909 AJO 32342 a

1     (f) A credit union shall be reimbursed for costs which are
2 reasonably necessary and which have been directly incurred in
3 searching for, reproducing or transporting books, papers,
4 records or other data of a member required or requested to be
5 produced pursuant to a lawful subpoena, summons, warrant,
6 citation to discover assets, or court order. The Director may
7 determine, by rule, the rates and conditions under which
8 payment shall be made. Delivery of requested documents may be
9 delayed until final reimbursement of all costs is received.
10 (Source: P.A. 94-495, eff. 8-8-05; 94-851, eff. 6-13-06.)".