Illinois General Assembly - Full Text of HB4266
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Full Text of HB4266  94th General Assembly

HB4266 94TH GENERAL ASSEMBLY


 


 
94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
HB4266

 

Introduced 12/16/2005, by Rep. Sidney H. Mathias

 

SYNOPSIS AS INTRODUCED:
 
205 ILCS 5/48.1   from Ch. 17, par. 360

    Amends the Illinois Banking Act. Requires a bank to disclose certain financial records under a lawful citation to discover assets.


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A BILL FOR

 

HB4266 LRB094 15571 MKM 50770 b

1     AN ACT concerning regulation.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 5. The Illinois Banking Act is amended by changing
5 Section 48.1 as follows:
 
6     (205 ILCS 5/48.1)  (from Ch. 17, par. 360)
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
24     maintenance of any financial records by any officer,
25     employee or agent of a bank having custody of the records,
26     or the examination of the records by a certified public
27     accountant engaged by the bank to perform an independent
28     audit.
29         (2) The examination of any financial records by, or the
30     furnishing of financial records by a bank to, any officer,
31     employee or agent of (i) the Commissioner of Banks and Real
32     Estate, (ii) after May 31, 1997, a state regulatory

 

 

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1     authority authorized to examine a branch of a State bank
2     located in another state, (iii) the Comptroller of the
3     Currency, (iv) the Federal Reserve Board, or (v) the
4     Federal Deposit Insurance Corporation for use solely in the
5     exercise of his duties as an officer, employee, or agent.
6         (3) The publication of data furnished from financial
7     records relating to customers where the data cannot be
8     identified to any particular customer or account.
9         (4) The making of reports or returns required under
10     Chapter 61 of the Internal Revenue Code of 1986.
11         (5) Furnishing information concerning the dishonor of
12     any negotiable instrument permitted to be disclosed under
13     the Uniform Commercial Code.
14         (6) The exchange in the regular course of business of
15     (i) credit information between a bank and other banks or
16     financial institutions or commercial enterprises, directly
17     or through a consumer reporting agency or (ii) financial
18     records or information derived from financial records
19     between a bank and other banks or financial institutions or
20     commercial enterprises for the purpose of conducting due
21     diligence pursuant to a purchase or sale involving the bank
22     or assets or liabilities of the bank.
23         (7) The furnishing of information to the appropriate
24     law enforcement authorities where the bank reasonably
25     believes it has been the victim of a crime.
26         (8) The furnishing of information under the Uniform
27     Disposition of Unclaimed Property Act.
28         (9) The furnishing of information under the Illinois
29     Income Tax Act and the Illinois Estate and
30     Generation-Skipping Transfer Tax Act.
31         (10) The furnishing of information under the federal
32     Currency and Foreign Transactions Reporting Act Title 31,
33     United States Code, Section 1051 et seq.
34         (11) The furnishing of information under any other
35     statute that by its terms or by regulations promulgated
36     thereunder requires the disclosure of financial records

 

 

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1     other than by subpoena, summons, warrant, or court order.
2         (12) The furnishing of information about the existence
3     of an account of a person to a judgment creditor of that
4     person who has made a written request for that information.
5         (13) The exchange in the regular course of business of
6     information between commonly owned banks in connection
7     with a transaction authorized under paragraph (23) of
8     Section 5 and conducted at an affiliate facility.
9         (14) The furnishing of information in accordance with
10     the federal Personal Responsibility and Work Opportunity
11     Reconciliation Act of 1996. Any bank governed by this Act
12     shall enter into an agreement for data exchanges with a
13     State agency provided the State agency pays to the bank a
14     reasonable fee not to exceed its actual cost incurred. A
15     bank providing information in accordance with this item
16     shall not be liable to any account holder or other person
17     for any disclosure of information to a State agency, for
18     encumbering or surrendering any assets held by the bank in
19     response to a lien or order to withhold and deliver issued
20     by a State agency, or for any other action taken pursuant
21     to this item, including individual or mechanical errors,
22     provided the action does not constitute gross negligence or
23     willful misconduct. A bank shall have no obligation to
24     hold, encumber, or surrender assets until it has been
25     served with a subpoena, summons, warrant, court or
26     administrative order, lien, or levy.
27         (15) The exchange in the regular course of business of
28     information between a bank and any commonly owned affiliate
29     of the bank, subject to the provisions of the Financial
30     Institutions Insurance Sales Law.
31         (16) The furnishing of information to law enforcement
32     authorities, the Illinois Department on Aging and its
33     regional administrative and provider agencies, the
34     Department of Human Services Office of Inspector General,
35     or public guardians, if there is suspicion by the
36     investigatory entity, the guardian, or the bank that a

 

 

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1     customer who is an elderly or disabled person has been or
2     may become the victim of financial exploitation. For the
3     purposes of this item (16), the term: (i) "elderly person"
4     means a person who is 60 or more years of age, (ii)
5     "disabled person" means a person who has or reasonably
6     appears to the bank to have a physical or mental disability
7     that impairs his or her ability to seek or obtain
8     protection from or prevent financial exploitation, and
9     (iii) "financial exploitation" means tortious or illegal
10     use of the assets or resources of an elderly or disabled
11     person, and includes, without limitation, misappropriation
12     of the elderly or disabled person's assets or resources by
13     undue influence, breach of fiduciary relationship,
14     intimidation, fraud, deception, extortion, or the use of
15     assets or resources in any manner contrary to law. A bank
16     or person furnishing information pursuant to this item (16)
17     shall be entitled to the same rights and protections as a
18     person furnishing information under the Elder Abuse and
19     Neglect Act, the Illinois Domestic Violence Act of 1986,
20     and the Abuse of Adults with Disabilities Intervention Act.
21         (17) The disclosure of financial records or
22     information as necessary to effect, administer, or enforce
23     a transaction requested or authorized by the customer, or
24     in connection with:
25             (A) servicing or processing a financial product or
26         service requested or authorized by the customer;
27             (B) maintaining or servicing a customer's account
28         with the bank; or
29             (C) a proposed or actual securitization or
30         secondary market sale (including sales of servicing
31         rights) related to a transaction of a customer.
32         Nothing in this item (17), however, authorizes the sale
33     of the financial records or information of a customer
34     without the consent of the customer.
35         (18) The disclosure of financial records or
36     information as necessary to protect against actual or

 

 

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1     potential fraud, unauthorized transactions, claims, or
2     other liability.
3         (19) (a) The disclosure of financial records or
4     information related to a private label credit program
5     between a financial institution and a private label party
6     in connection with that private label credit program. Such
7     information is limited to outstanding balance, available
8     credit, payment and performance and account history,
9     product references, purchase information, and information
10     related to the identity of the customer.
11         (b) (l) For purposes of this paragraph (19) of
12     subsection (b) of Section 48.1, a "private label credit
13     program" means a credit program involving a financial
14     institution and a private label party that is used by a
15     customer of the financial institution and the private label
16     party primarily for payment for goods or services sold,
17     manufactured, or distributed by a private label party.
18         (2) For purposes of this paragraph (19) of subsection
19     (b) of Section 48.l, a "private label party" means, with
20     respect to a private label credit program, any of the
21     following: a retailer, a merchant, a manufacturer, a trade
22     group, or any such person's affiliate, subsidiary, member,
23     agent, or service provider.
24     (c) Except as otherwise provided by this Act, a bank may
25 not disclose to any person, except to the customer or his duly
26 authorized agent, any financial records or financial
27 information obtained from financial records relating to that
28 customer of that bank unless:
29         (1) the customer has authorized disclosure to the
30     person;
31         (2) the financial records are disclosed in response to
32     a lawful subpoena, summons, warrant, citation to discover
33     assets, or court order which meets the requirements of
34     subsection (d) of this Section; or
35         (3) the bank is attempting to collect an obligation
36     owed to the bank and the bank complies with the provisions

 

 

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1     of Section 2I of the Consumer Fraud and Deceptive Business
2     Practices Act.
3     (d) A bank shall disclose financial records under paragraph
4 (2) of subsection (c) of this Section under a lawful subpoena,
5 summons, warrant, citation to discover assets, or court order
6 only after the bank mails a copy of the subpoena, summons,
7 warrant, citation to discover assets, or court order to the
8 person establishing the relationship with the bank, if living,
9 and, otherwise his personal representative, if known, at his
10 last known address by first class mail, postage prepaid, unless
11 the bank is specifically prohibited from notifying the person
12 by order of court or by applicable State or federal law. A bank
13 shall not mail a copy of a subpoena to any person pursuant to
14 this subsection if the subpoena was issued by a grand jury
15 under the Statewide Grand Jury Act.
16     (e) Any officer or employee of a bank who knowingly and
17 willfully furnishes financial records in violation of this
18 Section is guilty of a business offense and, upon conviction,
19 shall be fined not more than $1,000.
20     (f) Any person who knowingly and willfully induces or
21 attempts to induce any officer or employee of a bank to
22 disclose financial records in violation of this Section is
23 guilty of a business offense and, upon conviction, shall be
24 fined not more than $1,000.
25     (g) A bank shall be reimbursed for costs that are
26 reasonably necessary and that have been directly incurred in
27 searching for, reproducing, or transporting books, papers,
28 records, or other data of a customer required or requested to
29 be produced pursuant to a lawful subpoena, summons, warrant, or
30 court order. The Commissioner shall determine the rates and
31 conditions under which payment may be made.
32 (Source: P.A. 94-495, eff. 8-8-05.)