Illinois General Assembly - Full Text of HB3663
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Full Text of HB3663  93rd General Assembly

HB3663eng 93rd General Assembly


093_HB3663eng

 
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 1        AN ACT concerning financial institutions.

 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:

 4        Section 5.  The Illinois Savings and Loan Act of 1985  is
 5    amended by changing Sections 1-10.10, 1-10.16, 1-10.19, 1-11,
 6    2-1, 3-8, 4-2, 7-6, 7-7, 7-9, 7-11, and 7-23 as follows:

 7        (205 ILCS 105/1-10.10) (from Ch. 17, par. 3301-10.10)
 8        Sec.   1-10.10.  "Insurance   corporation":  The  Federal
 9    Savings and Loan Insurance Corporation, the  Federal  Deposit
10    Insurance  Corporation  or  such  other instrumentality of or
11    corporation chartered by and backed by  the  full  faith  and
12    credit of the United States.
13    (Source: P.A. 86-137.)

14        (205 ILCS 105/1-10.16) (from Ch. 17, par. 3301-10.16)
15        Sec. 1-10.16.  "Profits": gross income less the aggregate
16    of  operating  and  real  estate  expenses,  losses  actually
17    sustained  and not charged to reserves under the provision of
18    this  Act,  interest  paid  or  accrued  on  borrowings   and
19    non-recurring   charges   as  determined  by  application  of
20    generally  accepted  accounting  principles   or   regulatory
21    accounting  principles permitted, recognized or authorized by
22    the Office of Thrift Supervision Federal Home Loan Bank Board
23    for a federal  association  and  subject  to  the  rules  and
24    regulations of the Commissioner.
25    (Source: P.A. 84-543.)

26        (205 ILCS 105/1-10.19) (from Ch. 17, par. 3301-10.19)
27        Sec.  1-10.19.  "Total  assets":  the  total value of all
28    loan contracts without deduction for the withdrawal value  of
29    any  capital  accounts  of the association held as collateral
 
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 1    for loans, and the total value of all  other  assets  of  the
 2    association,  as  determined  by the application of generally
 3    accepted  accounting  principles  or  regulatory   accounting
 4    principles  permitted, recognized or authorized by the Office
 5    of Thrift Supervision Federal Home  Loan  Bank  Board  for  a
 6    federal  association and subject to the rules and regulations
 7    of the Commissioner.
 8    (Source: P.A. 84-543.)

 9        (205 ILCS 105/1-11) (from Ch. 17, par. 3301-11)
10        Sec.  1-11.  Insurance  of   withdrawable   capital.   An
11    association   operating  under  this  Act  shall  obtain  and
12    maintain insurance of the association's withdrawable  capital
13    by  an  insurance  corporation  as  defined in this Act in an
14    amount at least equal to that provided by the Federal Savings
15    and Loan Insurance Corporation, except that such insurance of
16    accounts is not required in cases where  the  association  is
17    employer-sponsored,  does not occupy a ground floor location,
18    does not seek business from the general public by advertising
19    or otherwise  and  primarily  serves  the  employees  of  the
20    employer which sponsors the association or the employees of a
21    wholly-owned  subsidiary  of  the employer. In the event that
22    the insurance of accounts is not required  by  this  Section,
23    the   Commissioner  may  adjust  the  bond  requirements  for
24    officers, directors and employees of such association, but in
25    no case shall the adjusted bond  be  required  to  be  in  an
26    amount  greater  than  twice  that  which  would otherwise be
27    required.
28    (Source: P.A. 84-543.)

29        (205 ILCS 105/2-1) (from Ch. 17, par. 3302-1)
30        Sec. 2-1.  Applicants and initial capital.  Any 5 or more
31    adult individuals, residents of this State, may apply  for  a
32    permit  to  organize  an  association  under  this  Act.  The
 
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 1    minimum initial capital which an association must have  shall
 2    be  determined  by  the  Commissioner but in no case shall be
 3    less than that which would be required  in  order  to  obtain
 4    insurance  of accounts backed by the full faith and credit of
 5    the United States government by the Federal Savings and  Loan
 6    Insurance Corporation.
 7    (Source: P.A. 84-543.)

 8        (205 ILCS 105/3-8) (from Ch. 17, par. 3303-8)
 9        Sec.  3-8.  Access  to  books  and records; communication
10    with members.
11        (a)  Every member or holder of  capital  shall  have  the
12    right  to  inspect  the  books and records of the association
13    that  pertain  to  his  account.  Otherwise,  the  right   of
14    inspection  and examination of the books and records shall be
15    limited as provided in this Act, and no  other  person  shall
16    have  access to the books and records or shall be entitled to
17    a list of the members.
18        (b)  For the purpose of this Section, the term "financial
19    records" means any original, any copy, or any summary of  (i)
20    a  document  granting  signature  authority over a deposit or
21    account; (ii) a statement, ledger card, or  other  record  on
22    any 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
25    association; or (iv) any other  item  containing  information
26    pertaining  to  any  relationship established in the ordinary
27    course of an association's business  between  an  association
28    and  its  customer,  including  financial statements or other
29    financial information provided by the  member  or  holder  of
30    capital.
31        (c)  This Section does not prohibit:
32             (1)  The   preparation,  examination,  handling,  or
33        maintenance of any  financial  records  by  any  officer,
 
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 1        employee,  or  agent  of an association having custody of
 2        those records or the examination of those  records  by  a
 3        certified public accountant engaged by the association to
 4        perform an independent audit.
 5             (2)  The examination of any financial records by, or
 6        the furnishing of financial records by an association to,
 7        any  officer,  employee,  or agent of the Commissioner of
 8        Banks and Real Estate or federal  depository  institution
 9        regulator, Federal Savings and Loan Insurance Corporation
10        and    its    successors,   Federal   Deposit   Insurance
11        Corporation,  Resolution  Trust   Corporation   and   its
12        successors,   Federal   Home  Loan  Bank  Board  and  its
13        successors, Office of Thrift Supervision, Federal Housing
14        Finance Board, Board of Governors of the Federal  Reserve
15        System,  any  Federal  Reserve Bank, or the Office of the
16        Comptroller  of  the  Currency  for  use  solely  in  the
17        exercise of his duties as an officer, employee, or agent.
18             (3)  The  publication   of   data   furnished   from
19        financial  records  relating  to  members  or  holders of
20        capital where  the  data  cannot  be  identified  to  any
21        particular member, holder of capital, or account.
22             (4)  The making of reports or returns required under
23        Chapter 61 of the Internal Revenue Code of 1986.
24             (5)  Furnishing  information concerning the dishonor
25        of any negotiable instrument permitted  to  be  disclosed
26        under the Uniform Commercial Code.
27             (6)  The  exchange in the regular course of business
28        of (i) credit  information  between  an  association  and
29        other   associations   or   financial   institutions   or
30        commercial  enterprises,  directly  or through a consumer
31        reporting agency or (ii) financial records or information
32        derived from financial records between an association and
33        other   associations   or   financial   institutions   or
34        commercial enterprises for the purpose of conducting  due
 
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 1        diligence  pursuant  to  a purchase or sale involving the
 2        association or assets or liabilities of the association.
 3             (7)  The   furnishing   of   information   to    the
 4        appropriate   law   enforcement   authorities  where  the
 5        association reasonably believes it has been the victim of
 6        a crime.
 7             (8)  The furnishing of information pursuant  to  the
 8        Uniform Disposition of Unclaimed Property Act.
 9             (9)  The  furnishing  of information pursuant to the
10        Illinois Income Tax  Act  and  the  Illinois  Estate  and
11        Generation-Skipping Transfer Tax Act.
12             (10)  The  furnishing of information pursuant to the
13        federal  "Currency  and  Foreign  Transactions  Reporting
14        Act", (Title 31, United  States  Code,  Section  1051  et
15        seq.).
16             (11)  The  furnishing of information pursuant to any
17        other  statute  that  by  its  terms  or  by  regulations
18        promulgated  thereunder  requires   the   disclosure   of
19        financial   records  other  than  by  subpoena,  summons,
20        warrant, or court order.
21             (12)  The  exchange  of   information   between   an
22        association  and an affiliate of the association; as used
23        in  this  item,   "affiliate"   includes   any   company,
24        partnership, or organization that controls, is controlled
25        by, or is under common control with an association.
26             (13)  The  furnishing  of  information in accordance
27        with  the  federal  Personal  Responsibility   and   Work
28        Opportunity  Reconciliation Act of 1996.  Any association
29        governed by this Act shall enter into  an  agreement  for
30        data  exchanges  with  a  State agency provided the State
31        agency pays to the association a reasonable  fee  not  to
32        exceed   its   actual   cost  incurred.   An  association
33        providing information in accordance with this item  shall
34        not  be  liable to any account holder or other person for
 
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 1        any disclosure of information  to  a  State  agency,  for
 2        encumbering  or  surrendering  any  assets  held  by  the
 3        association  in  response  to a lien or order to withhold
 4        and deliver issued by a State agency, or  for  any  other
 5        action  taken pursuant to this item, including individual
 6        or  mechanical  errors,  provided  the  action  does  not
 7        constitute gross negligence  or  willful  misconduct.  An
 8        association  shall  have no obligation to hold, encumber,
 9        or surrender assets until  it  has  been  served  with  a
10        subpoena,   summons,  warrant,  court  or  administrative
11        order, lien, or levy.
12             (14)  The   furnishing   of   information   to   law
13        enforcement authorities, the Illinois Department on Aging
14        and its regional administrative  and  provider  agencies,
15        the  Department  of  Human  Services  Office of Inspector
16        General, or public guardians, if the association suspects
17        that a customer who is an elderly or disabled person  has
18        been  or may become the victim of financial exploitation.
19        For the  purposes  of  this  item  (14),  the  term:  (i)
20        "elderly  person"  means a person who is 60 or more years
21        of age, (ii) "disabled person" means a person who has  or
22        reasonably  appears to the association to have a physical
23        or mental disability that impairs his or her  ability  to
24        seek  or  obtain  protection  from  or  prevent financial
25        exploitation, and (iii)  "financial  exploitation"  means
26        tortious  or illegal use of the assets or resources of an
27        elderly  or  disabled  person,  and   includes,   without
28        limitation,  misappropriation  of the elderly or disabled
29        person's assets or resources by undue  influence,  breach
30        of    fiduciary    relationship,   intimidation,   fraud,
31        deception, extortion, or the use of assets  or  resources
32        in  any  manner contrary to law. An association or person
33        furnishing information pursuant to this item  (14)  shall
34        be  entitled  to  the  same  rights  and protections as a
 
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 1        person furnishing information under the Elder  Abuse  and
 2        Neglect  Act  and  the  Illinois Domestic Violence Act of
 3        1986.
 4             (15)  The  disclosure  of   financial   records   or
 5        information   as  necessary  to  effect,  administer,  or
 6        enforce a transaction  requested  or  authorized  by  the
 7        member or holder of capital, or in connection with:
 8                  (A)  servicing   or   processing   a  financial
 9             product or service requested or  authorized  by  the
10             member or holder of capital;
11                  (B)  maintaining  or  servicing an account of a
12             member or holder of capital with the association; or
13                  (C)  a proposed  or  actual  securitization  or
14             secondary  market sale (including sales of servicing
15             rights) related to a  transaction  of  a  member  or
16             holder of capital.
17             Nothing  in  this item (15), however, authorizes the
18        sale of the financial records or information of a  member
19        or holder of capital without the consent of the member or
20        holder of capital.
21             (16)  The   disclosure   of   financial  records  or
22        information as necessary to protect  against  or  prevent
23        actual  or  potential  fraud,  unauthorized transactions,
24        claims, or other liability.
25             (17) (a)  The disclosure  of  financial  records  or
26        information  related  to  a  private label credit program
27        between a financial institution and a private label party
28        in connection with that  private  label  credit  program.
29        Such  information  is  limited  to  outstanding  balance,
30        available  credit,  payment  and  performance and account
31        history, product references,  purchase  information,  and
32        information related to the identity of the customer.
33             (b) (l)  For  purposes  of  this  paragraph  (17) of
34        subsection (c) of Section 3-8, 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
 4        label party primarily for payment for goods  or  services
 5        sold,  manufactured,  or  distributed  by a private label
 6        party.
 7             (2)  For  purposes  of  this   paragraph   (17)   of
 8        subsection  (c)  of  Section 3-8, a "private label party"
 9        means, with respect to a private  label  credit  program,
10        any   of   the  following:  a  retailer,  a  merchant,  a
11        manufacturer,  a  trade  group,  or  any  such   person's
12        affiliate,   subsidiary,   member,   agent,   or  service
13        provider.
14        (d)  An association  may  not  disclose  to  any  person,
15    except  to  the  member  or  holder  of  capital  or his duly
16    authorized agent, any  financial  records  relating  to  that
17    member or holder of capital of that association unless:
18             (1)  The  member or holder of capital has authorized
19        disclosure to the person; or
20             (2)  The financial records are disclosed in response
21        to a lawful subpoena, summons, warrant,  or  court  order
22        that  meets  the  requirements  of subsection (e) of this
23        Section.
24        (e)  An  association  shall  disclose  financial  records
25    under subsection (d) of this Section  pursuant  to  a  lawful
26    subpoena,  summons,  warrant,  or  court order only after the
27    association mails a copy of the subpoena,  summons,  warrant,
28    or  court  order  to the person establishing the relationship
29    with the association, if living, and, otherwise, his personal
30    representative, if known, at his last known address by  first
31    class  mail,  postage  prepaid,  unless  the  association  is
32    specifically  prohibited  from notifying that person by order
33    of court.
34        (f) (1)  Any officer or employee of  an  association  who
 
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 1    knowingly   and  willfully  furnishes  financial  records  in
 2    violation of this Section is guilty  of  a  business  offense
 3    and, upon conviction, shall be fined not more than $1,000.
 4        (2)  Any  person  who  knowingly and willfully induces or
 5    attempts to induce any officer or employee of an  association
 6    to disclose financial records in violation of this Section is
 7    guilty  of  a business offense and, upon conviction, shall be
 8    fined not more than $1,000.
 9        (g)  However, if any member desires to  communicate  with
10    the  other  members  of the association with reference to any
11    question pending or to be  presented  at  a  meeting  of  the
12    members,  the  association  shall  give  him  upon  request a
13    statement of the approximate number of  members  entitled  to
14    vote  at the meeting and an estimate of the cost of preparing
15    and mailing the communication.  The  requesting  member  then
16    shall submit the communication to the Commissioner who, if he
17    finds it to be appropriate and truthful, shall direct that it
18    be  prepared  and  mailed  to the members upon the requesting
19    member's payment or adequate provision  for  payment  of  the
20    expenses of preparation and mailing.
21        (h)  An  association  shall  be reimbursed for costs that
22    are  necessary  and  that  have  been  directly  incurred  in
23    searching for, reproducing, or  transporting  books,  papers,
24    records,   or  other  data  of  a  customer  required  to  be
25    reproduced pursuant to a lawful subpoena, warrant,  or  court
26    order.
27    (Source:  P.A.  91-929,  eff. 12-15-00; 92-483, eff. 8-23-01;
28    92-543, eff. 6-12-02.)

29        (205 ILCS 105/4-2) (from Ch. 17, par. 3304-2)
30        Sec.  4-2.  Withdrawable  capital.  Withdrawable  capital
31    accounts shall be:
32        (a)  Withdrawable and subject to enforced  retirement  as
33    provided  in  this Article. Nothing in this Act shall prevent
 
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 1    the withdrawal of funds from an association by non-negotiable
 2    order;
 3        (b)  Entitled to dividends as provided in this Article;
 4        (c)  Nonassessable for either  debts  or  losses  of  the
 5    association; and
 6        (d)  Issued  on such plan or plans of payment therefor or
 7    thereon and  such  series  or  classes  as  the  by-laws  and
 8    Commissioner's regulations may provide.
 9        There  shall  be  no  penalty,  such  as loss of interest
10    thereon, on accounts  transferred  at  interest  or  dividend
11    payment  date  from  passbook types to certificate of deposit
12    within the same facility and not otherwise inconsistent  with
13    regulations  of the Federal Deposit Insurance Corporation and
14    the Office of Thrift Supervision Savings and  Loan  Insurance
15    Corporation or the Federal Home Loan Bank Board.
16    (Source: P.A. 84-543.)

17        (205 ILCS 105/7-6) (from Ch. 17, par. 3307-6)
18        Sec.  7-6.  Annual audit. At least once in each year, but
19    in no case more than 12 months after the last audit conducted
20    pursuant to this Section, it  shall  be  mandatory  for  each
21    association  to cause its books and accounts to be audited by
22    a  licensed  public  accountant  not  connected   with   such
23    association. The Commissioner may prescribe the scope of such
24    audit within the generally acceptable auditing principles and
25    standards.  The  report  of  such  audit  shall be given to a
26    committee composed of not less than 3 members of the board of
27    directors, none of  whom  shall  be  officers,  employees  or
28    agents  of such association, and such committee shall, at the
29    meeting of the board of directors following  receipt  of  the
30    report,  present  in  detail the nature, extent and result of
31    the  report.  A   written   summary   of   such   committee's
32    presentation,  including a detailed listing of all criticisms
33    made by the accountant conducting the audit and any responses
 
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 1    thereto made by any member of the board of directors  or  any
 2    officer  of the association, shall be sent by registered mail
 3    to all members of the board of directors not present  at  the
 4    meeting  at which the committee made its presentation. A copy
 5    of the  audit  report,  including  a  balance  sheet  of  the
 6    association  on  the  date of audit and a statement of income
 7    and expenses of the association during the year  ending  with
 8    the  date  of  audit and, if and when such is used, a copy of
 9    any written summary prepared for absent members of the  board
10    of  directors,  shall  be  filed with the Commissioner by the
11    committee receiving the report within 90 days  of  the  audit
12    date; except that the Commissioner may, for good cause shown,
13    extend  the  filing  date  for  up to 60 additional days. The
14    report filed with the Commissioner shall be certified by  the
15    licensed  public  accountant  conducting  the  audit.  If any
16    association required to make an audit shall fail to cause  an
17    audit to be made, the Commissioner shall cause the same to be
18    made  by  a  licensed  public accountant at the association's
19    expense. In lieu of the audit required by this  Section,  the
20    Commissioner  may  accept  any  audit or portion thereof made
21    exclusively for the Federal Deposit Insurance Corporation and
22    the Office of Thrift Supervision Home Loan Bank, the  Federal
23    Home  Loan  Bank  Board  or  the  Federal  Savings  and  Loan
24    Insurance Corporation.
25    (Source: P.A. 84-543.)

26        (205 ILCS 105/7-7) (from Ch. 17, par. 3307-7)
27        Sec. 7-7.  Reports to Commissioner and members; penalty.
28        (a)  Every  association  operating  under  this Act shall
29    file with the Commissioner within 90 days following the close
30    of each fiscal year of such association a  statement  showing
31    its  financial  condition at the close of the fiscal year and
32    its operations for the year then ended. For good cause  shown
33    in  writing  directed  to the Commissioner  within the 90 day
 
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 1    period, the Commissioner may authorize up  to  60  additional
 2    days for filing of the statement of financial condition. Each
 3    such   statement   shall   be  on  forms  prescribed  by  the
 4    Commissioner  and  in  conformity  with  generally   accepted
 5    accounting  principles  or  regulatory  accounting principles
 6    permitted, recognized or authorized by the Office  of  Thrift
 7    Supervision  Federal  Home  Loan  Bank  Board  for  a federal
 8    association and subject to the rules and regulations  of  the
 9    Commissioner  and  in accord with the provisions of this Act.
10    Each such statement shall contain such information and be  in
11    such  form  as  prescribed  by  the Commissioner and shall be
12    verified by the secretary and certified by a licensed  public
13    accountant  appointed  by  the  board  of  directors  or by 2
14    officers of the association, if a licensed public  accountant
15    has  been  appointed  to  audit  the books and records of the
16    association as provided in the preceding Section of this Act.
17    Every  association  including   its   holding   company   and
18    subsidiaries  shall  also  file  such  other  reports  as the
19    Commissioner may require from time to time.
20        Any association which, after notice from the Commissioner
21    sent by certified  or  registered  mail,  wilfully  fails  to
22    submit within the time prescribed the annual financial report
23    required by this Section is subject to a civil penalty of not
24    more  than $500 for each such failure. Any association which,
25    after notice from  the  Commissioner  sent  by  certified  or
26    registered  mail,  wilfully  fails  to submit within the time
27    prescribed any other  report  required  by  this  Section  is
28    subject  to  a  civil  penalty of not more than $100 for each
29    such failure (which penalties  shall  be  cumulative  to  any
30    other  remedies).  For the purposes of this Section, the date
31    on which any report required by this Section is postmarked is
32    the date of filing  of  any  such  report.   The  knowing  or
33    intentional  filing  of any such report which is false in any
34    material  respect  constitutes  a  felony,  and  any   person
 
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 1    convicted  thereof  shall  be  punished by a fine of not more
 2    than $10,000, or imprisonment in the penitentiary for one  to
 3    5 years, or both.
 4        (b)  An  association  shall  file with the Commissioner a
 5    report of change of ownership  of  permanent  reserve  shares
 6    when  such  change  of  ownership  results  in  any person as
 7    defined by this Act holding 10%  or  more,  through  any  one
 8    transaction   or  related  series  of  transactions,  of  the
 9    outstanding permanent reserves  shares  of  the  association.
10    Such report shall include owners who hold as beneficiaries or
11    through  nominees  as well as in their own names.  The report
12    shall be made within 5 business days after knowledge of  such
13    change  has  been  obtained  by  the  officer  authorized  or
14    required   to   make   reports   to  the  Commissioner.   The
15    Commissioner also may require any such person owning  10%  or
16    more of permanent reserve shares to report the beneficiary or
17    beneficiaries for whom he is holding title.
18        Whenever  there is a change in the managing officer of an
19    association or a  change  amounting  to  a  majority  of  the
20    directors  of  an association elected at a regular or special
21    meeting  of  the  members,  such  change  shall  likewise  be
22    reported within 5 business days to the Commissioner.
23        The willful failure by any person required to  report  or
24    disclose  change  of  ownership or control as defined in this
25    Section constitutes a Class 4 felony.
26        (c)  Within  60  days  after  the  date  of  filing   the
27    Statement  of  Financial Condition with the Commissioner, the
28    association shall mail to each member or  make  available  at
29    each  of  its  offices the annual statement of condition or a
30    condensed form thereof approved by the Commissioner, or shall
31    publish the same at least once, and shall also  furnish  upon
32    the  written  or personal request of any member a copy of the
33    complete annual statement of condition. The annual  statement
34    of  condition,  or any condensed form thereof, made available
 
HB3663 Engrossed            -14-     LRB093 09178 JLS 09410 b
 1    to members by publication, mailing, or at  the  association's
 2    offices   shall   include   a  statement  setting  forth  the
 3    association's assets,  liabilities,  regulatory  capital  and
 4    deposits.    In  addition,  the  statement  shall  include  a
 5    statement of the association's goals and intentions in regard
 6    to  investment  of  the  association's  funds  in  order   to
 7    reasonably  inform  the  member  as  to  the  security of his
 8    interest.  Notification of the availability of  the  complete
 9    annual  statement  shall  be  prominently  and  conspicuously
10    posted in areas of public access at each of the association's
11    branches or offices.
12        (d)  Any change of control or ownership of 25% or more of
13    the  permanent reserve shares or stock of (a) any association
14    operating under this Act, or (b) of the shares or stock of  a
15    subsidiary  of  the parent or a subsidiary of any association
16    operating  under  this  Act,  must  be   submitted   to   the
17    Commissioner for review and approval on forms, conditions and
18    terms  to be specified by the Commissioner.  The Commissioner
19    may accept in satisfaction of this  requirement,  submissions
20    required  under  federal statutes and regulations for changes
21    of control.  Any doubt as to whether a change of ownership or
22    other  change  in  the  outstanding  voting  stock   of   any
23    association  is sufficient to result in a change of ownership
24    or control, shall be resolved in favor of reporting the facts
25    to the Commissioner.  Compliance with  this  provision  shall
26    not  relieve  an  association,  its  parent or affiliate from
27    complying with other applicable State or federal statutes  or
28    regulations.   The  Commissioner  may disapprove any proposed
29    acquisition if:
30             (1)  The  proposed  acquisition  of  control   would
31        result  in  a  monopoly or would be in furtherance of any
32        combination or conspiracy to monopolize or to attempt  to
33        monopolize  the  savings and loan business in any part of
34        Illinois;
 
HB3663 Engrossed            -15-     LRB093 09178 JLS 09410 b
 1             (2)  The  effect  of  the  proposed  acquisition  of
 2        control in any section of the State may be  substantially
 3        to  lessen competition or to tend to create a monopoly or
 4        the proposed acquisition of control would  in  any  other
 5        manner  be in restraint of trade, and the anticompetitive
 6        effects of the proposed acquisition of  control  are  not
 7        clearly outweighed in the public interest by the probable
 8        effect  of the transaction in meeting the convenience and
 9        needs of the community to be served;
10             (3)  The  financial  condition  or  history  of  any
11        acquiring  person  is  such  as  might   jeopardize   the
12        financial  stability  of the institution or prejudice the
13        interests of the depositors of the institution;
14             (4)  The competence, experience, or integrity of any
15        acquiring  person  or  any  of  the  proposed  management
16        personnel indicates that it would not be in the  interest
17        of  the  depositors of the institution or in the interest
18        of the public  to  permit  such  person  to  control  the
19        institution; or
20             (5)  Any acquiring person neglects, fails or refuses
21        to  furnish the Commissioner all the information required
22        by the Commissioner.
23    (Source: P.A. 89-320, eff. 1-1-96; 89-603, eff. 8-2-96.)

24        (205 ILCS 105/7-9) (from Ch. 17, par. 3307-9)
25        Sec. 7-9.  Disclosure  of  reports  of  examinations  and
26    confidential supervisory information; limitations.
27        (a)  Any    report   of   examination,   visitation,   or
28    investigation prepared by the Commissioner  under  this  Act,
29    any  report  of  examination,  visitation,  or  investigation
30    prepared  by  the state regulatory authority of another state
31    that examines a branch of an Illinois  State  association  in
32    that  state,  any  document or record prepared or obtained in
33    connection with or relating to any  examination,  visitation,
 
HB3663 Engrossed            -16-     LRB093 09178 JLS 09410 b
 1    or  investigation, and any record prepared or obtained by the
 2    Commissioner to the extent  that  the  record  summarizes  or
 3    contains  information  derived  from any report, document, or
 4    record  described  in  this  subsection   shall   be   deemed
 5    confidential     supervisory    information.    "Confidential
 6    supervisory information" shall not include any information or
 7    record routinely prepared by an association and maintained in
 8    the ordinary course of business or any information or  record
 9    that  is  required  to be made publicly available pursuant to
10    State  or  federal  law  or  rule.  Confidential  supervisory
11    information shall be the property  of  the  Commissioner  and
12    shall  only  be disclosed under the circumstances and for the
13    purposes set forth in this Section.
14        The Commissioner may  disclose  confidential  supervisory
15    information only under the following circumstances:
16             (1)  The   Commissioner   may  furnish  confidential
17        supervisory information to federal and  state  depository
18        institution  regulators,  or  any  official  or  examiner
19        thereof   duly   accredited   for  the  purpose.  Nothing
20        contained in this Act shall be  construed  to  limit  the
21        obligation   of   any  association  to  comply  with  the
22        requirements relative to examinations and reports nor  to
23        limit  in any way the powers of the Commissioner relative
24        to examinations and reports.
25             (2)  The  Commissioner  may   furnish   confidential
26        supervisory  information  to  the  United  States  or any
27        agency  thereof  that  to  any  extent  has  insured   an
28        association's  deposits,  or  any  official  or  examiner
29        thereof   duly   accredited   for  the  purpose.  Nothing
30        contained in this Act shall be  construed  to  limit  the
31        obligation  relative  to  examinations and reports of any
32        association in which deposits are to any  extent  insured
33        by  the  United States or any agency thereof nor to limit
34        in any way the powers of the Commissioner with  reference
 
HB3663 Engrossed            -17-     LRB093 09178 JLS 09410 b
 1        to examination and reports of the association.
 2             (3)  The   Commissioner   may  furnish  confidential
 3        supervisory   information   to   the   appropriate    law
 4        enforcement  authorities when the Commissioner reasonably
 5        believes  an  association,  which  the  Commissioner  has
 6        caused to be examined, has been a victim of a crime.
 7             (4)  The  Commissioner  may   furnish   confidential
 8        supervisory  information related to an association, which
 9        the Commissioner  has  caused  to  be  examined,  to  the
10        administrator  of  the  Uniform  Disposition of Unclaimed
11        Property Act.
12             (5)  The  Commissioner  may   furnish   confidential
13        supervisory information relating to an association, which
14        the  Commissioner  has caused to be examined, relating to
15        its performance of obligations under the Illinois  Income
16        Tax  Act  and the Illinois Estate and Generation-Skipping
17        Transfer Tax Act to the Illinois Department of Revenue.
18             (6)  The  Commissioner  may   furnish   confidential
19        supervisory information relating to an association, which
20        the  Commissioner  has  caused  to be examined, under the
21        federal Currency and Foreign Transactions Reporting  Act,
22        31 United States Code, Section 1051 et seq.
23             (7)  The   Commissioner   may  furnish  confidential
24        supervisory information to any  other  agency  or  entity
25        that  the  Commissioner  determines  to have a legitimate
26        regulatory interest.
27             (8)  The  Commissioner  may   furnish   confidential
28        supervisory   information   as   otherwise  permitted  or
29        required  by  this  Act  and  may  furnish   confidential
30        supervisory  information  under any other statute that by
31        its  terms  or  by  regulations  promulgated   thereunder
32        requires  the  disclosure of financial records other than
33        by subpoena, summons, warrant, or court order.
34             (9)  At the request of the affected association, the
 
HB3663 Engrossed            -18-     LRB093 09178 JLS 09410 b
 1        Commissioner   may   furnish   confidential   supervisory
 2        information  relating  to  the  association,  which   the
 3        Commissioner  has  caused  to  be examined, in connection
 4        with the obtaining of insurance coverage or  the  pursuit
 5        of   an   insurance   claim  for  or  on  behalf  of  the
 6        association;   provided   that,   when   possible,    the
 7        Commissioner  shall  disclose  only  relevant information
 8        while  maintaining  the  confidentiality   of   financial
 9        records  not relevant to such insurance coverage or claim
10        and,  when  appropriate,  may  delete  identifying   data
11        relating to any person.
12             (10)  The  Commissioner  may  furnish  a  copy  of a
13        report of any examination performed by  the  Commissioner
14        of  the  condition  and  affairs  of  any electronic data
15        processing entity to the  associations  serviced  by  the
16        electronic data processing entity.
17             (11)  In  addition  to  the foregoing circumstances,
18        the Commissioner may, but is  not  required  to,  furnish
19        confidential   supervisory  information  under  the  same
20        circumstances authorized for the association pursuant  to
21        subsection   (b)   of   this  Section,  except  that  the
22        Commissioner  shall  provide   confidential   supervisory
23        information  under  circumstances  described in paragraph
24        (3) of subsection (b)  of  this  Section  only  upon  the
25        request of the association.
26        (b)  An   association   or   its  officers,  agents,  and
27    employees may disclose confidential  supervisory  information
28    only under the following circumstances:
29             (1)  to  the  board of directors of the association,
30        as well as the president,  vice-president,  cashier,  and
31        other  officers  of  the association to whom the board of
32        directors may delegate duties with respect to  compliance
33        with  recommendations  for  action,  and  to the board of
34        directors of an association holding company that owns  at
 
HB3663 Engrossed            -19-     LRB093 09178 JLS 09410 b
 1        least  80% of the outstanding stock of the association or
 2        other financial institution.
 3             (2)  to attorneys  for  the  association  and  to  a
 4        certified public accountant engaged by the association to
 5        perform  an independent audit; provided that the attorney
 6        or certified  public  accountant  shall  not  permit  the
 7        confidential   supervisory   information  to  be  further
 8        disseminated.
 9             (3) to any person who seeks to acquire a controlling
10        interest in, or who seeks to merge with, the association;
11        provided that the person  shall  agree  to  be  bound  to
12        respect   the   confidentiality   of   the   confidential
13        supervisory  information  and  to not further disseminate
14        the information other than to attorneys, certified public
15        accountants,  officers,  agents,  or  employees  of  that
16        person who likewise shall agree to be  bound  to  respect
17        the   confidentiality  of  the  confidential  supervisory
18        information  and   to   not   further   disseminate   the
19        information.
20             (4)  to  the association's insurance company, if the
21        supervisory  information  contains  information  that  is
22        otherwise  unavailable  and  is  strictly  necessary   to
23        obtaining  insurance  coverage  or  pursuing an insurance
24        claim for or on behalf of the association; provided that,
25        when  possible,  the  association  shall  disclose   only
26        information  that  is  relevant  to  obtaining  insurance
27        coverage   or   pursuing   an   insurance   claim,  while
28        maintaining the confidentiality of financial  information
29        pertaining  to customers; and provided further that, when
30        appropriate, the association may delete identifying  data
31        relating to any person.
32        The disclosure of confidential supervisory information by
33    an  association  pursuant  to  this  subsection  (b)  and the
34    disclosure  of  information  to  the  Commissioner  or  other
 
HB3663 Engrossed            -20-     LRB093 09178 JLS 09410 b
 1    regulatory  agency  in  connection  with   any   examination,
 2    visitation, or investigation shall not constitute a waiver of
 3    any  legal  privilege  otherwise available to the association
 4    with respect to the information.
 5        (c)  (1) Notwithstanding any other provision of this  Act
 6    or  any other law, confidential supervisory information shall
 7    be the property of the Commissioner and shall  be  privileged
 8    from  disclosure  to  any  person  except as provided in this
 9    Section. No person in possession of confidential  supervisory
10    information  may  disclose that information for any reason or
11    under any circumstances not specified in this Section without
12    the prior authorization of the Commissioner. Any person  upon
13    whom  a  demand  for  production  of confidential supervisory
14    information is made, whether by  subpoena,  order,  or  other
15    judicial  or administrative process, must withhold production
16    of the confidential supervisory information and  must  notify
17    the   Commissioner   of   the   demand,  at  which  time  the
18    Commissioner is authorized to intervene for  the  purpose  of
19    enforcing  the  limitations  of  this  Section or seeking the
20    withdrawal or termination of the attempt to compel production
21    of the confidential supervisory information.
22             (2) Any  request  for  discovery  or  disclosure  of
23        confidential    supervisory   information,   whether   by
24        subpoena, order,  or  other  judicial  or  administrative
25        process,  shall  be  made  to  the  Commissioner, and the
26        Commissioner shall determine within 15  days  whether  to
27        disclose  the  information  pursuant  to  procedures  and
28        standards  that the Commissioner shall establish by rule.
29        If the Commissioner determines that such information will
30        not be disclosed, the Commissioner's  decision  shall  be
31        subject  to  judicial  review under the provisions of the
32        Administrative Review Law, and venue shall be  in  either
33        Sangamon County or Cook County.
34             (3)  Any  court  order  that  compels  disclosure of
 
HB3663 Engrossed            -21-     LRB093 09178 JLS 09410 b
 1        confidential supervisory information may  be  immediately
 2        appealed  by  the  Commissioner,  and  the order shall be
 3        automatically stayed pending the outcome of the appeal.
 4        (d)  If any officer, agent, attorney, or employee  of  an
 5    association  knowingly  and  willfully furnishes confidential
 6    supervisory information in violation  of  this  Section,  the
 7    Commissioner may impose a civil monetary penalty up to $1,000
 8    for  the  violation  against the officer, agent, attorney, or
 9    employee.  Information  to  Federal   Authorities.   (a)  The
10    Commissioner  may  give copies of reports of his examinations
11    of an association and copies of the association's reports  to
12    him  and  any  other  information which he has concerning the
13    association to: the Federal Home Loan Bank (or its  successor
14    instrumentality)  of  which  the association is a member; the
15    insurance corporation which  has  insured  the  association's
16    deposits; other regulatory agencies of this State; regulatory
17    agencies  of  financial institutions in other states; and law
18    enforcement agencies of this State, other states  or  of  the
19    United States.
20        (b)  No such action by the Commissioner shall relieve the
21    association  from  compliance  with  any requirements of such
22    Federal institution concerning  examinations  or  reports  or
23    limit  the  Commissioner's  powers  to  examine or to require
24    reports from the association.
25        (c)  No other party shall be entitled to any  reports  of
26    examination,   reports  to  the  Commissioner  or  any  other
27    information concerning  the  association  derived  from  such
28    reports.
29    (Source: P.A. 86-137.)

30        (205 ILCS 105/7-11) (from Ch. 17, par. 3307-11)
31        Sec.  7-11.  Commissioner's authority to take custody and
32    appoint a conservator. The Commissioner in his discretion may
33    take custody of, and appoint a conservator for, the property,
 
HB3663 Engrossed            -22-     LRB093 09178 JLS 09410 b
 1    liabilities, books, records, business  and  assets  of  every
 2    kind  and  character of any association, trust or association
 3    in  liquidation,  for  any  of   the   purposes   hereinafter
 4    enumerated,   if   it   appears  from  reports  made  to  the
 5    Commissioner, or from examination made by or on behalf of the
 6    Commissioner:
 7             (a)  That  the  directors,  officers,  trustees   or
 8        liquidators have neglected, failed or refused to take any
 9        action  which the Commissioner may deem necessary for the
10        protection of the association or trust or have impeded or
11        obstructed an examination; or
12             (b)  That   the   withdrawable   capital   of    the
13        association is impaired to the extent that the realizable
14        value  of  its  assets is insufficient to pay in full its
15        creditors and holders of  its  withdrawable  capital;  or
16        that its permanent reserve capital is impaired; or
17             (c)  That  the  association  is  unable  to continue
18        operation; or
19             (d)  That the business of the association, trust  or
20        association  in  liquidation  is  being  conducted  in  a
21        fraudulent, illegal or unsafe manner; or
22             (e)  That   the  officers,  employees,  trustees  or
23        liquidators have continued to assume  duties  or  perform
24        acts without giving bond as required by the provisions of
25        this Act.
26        Unless  the  Commissioner  finds that an emergency exists
27    which may result in loss to members or creditors and requires
28    that he take custody immediately, he first shall give written
29    notice to the directors, trustees or  liquidators  specifying
30    the  conditions criticized and state a reasonable time within
31    which correction may be made.   If  however,  an  association
32    whose  accounts  are  insured by the Federal Savings and Loan
33    insurance corporation  is  impaired  within  the  meaning  of
34    paragraph  (b)  above,  or  any  other condition exists which
 
HB3663 Engrossed            -23-     LRB093 09178 JLS 09410 b
 1    would give the Commissioner authority to take custody  of  an
 2    insured  institution,  the  action of the Commissioner can be
 3    withheld  provided  that  the  Commissioner  determines  from
 4    reports made to  him  by  the  association,  and  such  other
 5    examinations as may be deemed necessary, that the association
 6    has  sufficient liquid assets and has adopted and implemented
 7    an operating plan satisfactory to the Commissioner.  In  such
 8    case  the  Commissioner  may defer a custody action pending a
 9    satisfactory resolution of the  impairment  as  suggested  by
10    either  the  association  or  the  Federal  Savings  and Loan
11    insurance corporation.
12        If any condition exists that would give the  Commissioner
13    authority  to  take  custody of an association, the action of
14    the Commissioner  may  be  withheld  pending  a  satisfactory
15    resolution  of  the  condition  as suggested by the insurance
16    corporation provided the association has sufficient liquidity
17    and  has  adopted  and  implemented  an  operating  plan  the
18    Commissioner considers prudent.
19        No action or inaction of the Commissioner taken  pursuant
20    to this Article shall cause the Commissioner to be personally
21    liable  for such action or inaction unless the Commissioner's
22    action or inaction is found to be in violation of a  criminal
23    statute.    The   Commissioner  shall  promulgate  rules  and
24    regulations to govern the  determination  of  a  need  for  a
25    conservator  and  the selection, appointment and conduct of a
26    conservatorship, including allocation of payment and costs.
27    (Source: P.A. 91-97, eff. 7-9-99.)

28        (205 ILCS 105/7-23) (from Ch. 17, par. 3307-23)
29        Sec. 7-23.  Proceedings on objections  to  Commissioner's
30    action.   Any  person  aggrieved  by  any decision, order, or
31    action of the Commissioner, except one under paragraph (b) of
32    Section 1-9, Section 2-3, or paragraph (j) of Section 3-4, or
33    Section 7-9 of this Act, or under Section 1006(b), or Section
 
HB3663 Engrossed            -24-     LRB093 09178 JLS 09410 b
 1    3005, or Section 9012 of the Savings Bank Act, or involving a
 2    change of location of an office or the  establishment  of  an
 3    additional  office  under the Savings Bank Act, may receive a
 4    hearing as provided in Sections 7-24  through  7-27  of  this
 5    Act.
 6    (Source: P.A. 89-508, eff. 7-3-96.)

 7        Section  10.  The Savings Bank Act is amended by changing
 8    Sections 4013 and 9012 as follows:

 9        (205 ILCS 205/4013) (from Ch. 17, par. 7304-13)
10        Sec. 4013.  Access to books  and  records;  communication
11    with members and shareholders.
12        (a)  Every  member or shareholder shall have the right to
13    inspect books and records of the savings bank that pertain to
14    his  accounts.   Otherwise,  the  right  of  inspection   and
15    examination  of  the  books  and  records shall be limited as
16    provided in this Act, and no other person shall  have  access
17    to  the  books and records nor shall be entitled to a list of
18    the members or shareholders.
19        (b)  For the purpose of this Section, the term "financial
20    records" means any original, any copy, or any summary of  (1)
21    a  document  granting  signature  authority over a deposit or
22    account; (2) a statement, ledger card, or other record on any
23    deposit or account that shows each  transaction  in  or  with
24    respect  to  that account; (3) a check, draft, or money order
25    drawn on a savings bank or issued and payable  by  a  savings
26    bank; or (4) any other item containing information pertaining
27    to  any  relationship established in the ordinary course of a
28    savings bank's  business  between  a  savings  bank  and  its
29    customer,  including  financial statements or other financial
30    information provided by the member or shareholder.
31        (c)  This Section does not prohibit:
32             (1)  The  preparation  examination,   handling,   or
 
HB3663 Engrossed            -25-     LRB093 09178 JLS 09410 b
 1        maintenance  of  any  financial   records by any officer,
 2        employee, or agent of a savings bank  having  custody  of
 3        records  or  examination of records by a certified public
 4        accountant engaged by the  savings  bank  to  perform  an
 5        independent audit.
 6             (2)  The examination of any financial records by, or
 7        the furnishing of financial records by a savings bank to,
 8        any  officer,  employee,  or agent of the Commissioner of
 9        Banks  and  Real  Estate  or   the   federal   depository
10        institution    regulator    Federal   Deposit   Insurance
11        Corporation for use solely in the exercise of his  duties
12        as an officer, employee, or agent.
13             (3)  The   publication   of   data   furnished  from
14        financial records  relating  to  members  or  holders  of
15        capital  where  the  data  cannot  be  identified  to any
16        particular member, shareholder, or account.
17             (4)  The making of reports or returns required under
18        Chapter 61 of the Internal Revenue Code of 1986.
19             (5)  Furnishing information concerning the  dishonor
20        of  any  negotiable  instrument permitted to be disclosed
21        under the Uniform Commercial Code.
22             (6)  The exchange in the regular course of  business
23        of  (i)  credit  information  between  a savings bank and
24        other  savings  banks  or   financial   institutions   or
25        commercial  enterprises,  directly  or through a consumer
26        reporting agency or (ii) financial records or information
27        derived from financial records between a savings bank and
28        other  savings  banks  or   financial   institutions   or
29        commercial  enterprises for the purpose of conducting due
30        diligence pursuant to a purchase or  sale  involving  the
31        savings  bank  or  assets  or  liabilities of the savings
32        bank.
33             (7)  The   furnishing   of   information   to    the
34        appropriate law enforcement authorities where the savings
 
HB3663 Engrossed            -26-     LRB093 09178 JLS 09410 b
 1        bank  reasonably  believes  it  has  been the victim of a
 2        crime.
 3             (8)  The furnishing of information pursuant  to  the
 4        Uniform Disposition of Unclaimed Property Act.
 5             (9)  The  furnishing  of information pursuant to the
 6        Illinois Income Tax  Act  and  the  Illinois  Estate  and
 7        Generation-Skipping Transfer Tax Act.
 8             (10)  The  furnishing of information pursuant to the
 9        federal  "Currency  and  Foreign  Transactions  Reporting
10        Act", (Title 31, United  States  Code,  Section  1051  et
11        seq.).
12             (11)  The  furnishing of information pursuant to any
13        other statute  which  by  its  terms  or  by  regulations
14        promulgated   thereunder   requires   the  disclosure  of
15        financial  records  other  than  by  subpoena,   summons,
16        warrant, or court order.
17             (12)  The  furnishing  of  information in accordance
18        with  the  federal  Personal  Responsibility   and   Work
19        Opportunity  Reconciliation Act of 1996. Any savings bank
20        governed by this Act shall enter into  an  agreement  for
21        data  exchanges  with  a  State agency provided the State
22        agency pays to the savings bank a reasonable fee  not  to
23        exceed   its   actual  cost  incurred.   A  savings  bank
24        providing information in accordance with this item  shall
25        not  be  liable to any account holder or other person for
26        any disclosure of information  to  a  State  agency,  for
27        encumbering  or  surrendering  any  assets  held  by  the
28        savings  bank  in response to a lien or order to withhold
29        and deliver issued by a State agency, or  for  any  other
30        action  taken pursuant to this item, including individual
31        or  mechanical  errors,  provided  the  action  does  not
32        constitute gross negligence or  willful  misconduct.    A
33        savings  bank shall have no obligation to hold, encumber,
34        or surrender assets until  it  has  been  served  with  a
 
HB3663 Engrossed            -27-     LRB093 09178 JLS 09410 b
 1        subpoena,   summons,  warrant,  court  or  administrative
 2        order, lien, or levy.
 3             (13)  The   furnishing   of   information   to   law
 4        enforcement authorities, the Illinois Department on Aging
 5        and its regional administrative  and  provider  agencies,
 6        the  Department  of  Human  Services  Office of Inspector
 7        General,  or  public  guardians,  if  the  savings   bank
 8        suspects  that  a  customer who is an elderly or disabled
 9        person has been or may become  the  victim  of  financial
10        exploitation.  For  the  purposes  of this item (13), the
11        term: (i) "elderly person" means a person who  is  60  or
12        more  years of age, (ii) "disabled person" means a person
13        who has or reasonably appears to the savings bank to have
14        a physical or mental disability that impairs his  or  her
15        ability  to  seek  or  obtain  protection from or prevent
16        financial    exploitation,    and    (iii)     "financial
17        exploitation" means tortious or illegal use of the assets
18        or  resources  of  an  elderly  or  disabled  person, and
19        includes, without  limitation,  misappropriation  of  the
20        elderly or disabled person's assets or resources by undue
21        influence,     breach    of    fiduciary    relationship,
22        intimidation, fraud, deception, extortion, or the use  of
23        assets  or  resources  in  any  manner contrary to law. A
24        savings bank or person furnishing information pursuant to
25        this item (13) shall be entitled to the same  rights  and
26        protections  as a person furnishing information under the
27        Elder Abuse and Neglect Act  and  the  Illinois  Domestic
28        Violence Act of 1986.
29             (14)  The   disclosure   of   financial  records  or
30        information  as  necessary  to  effect,  administer,   or
31        enforce  a  transaction  requested  or  authorized by the
32        member or holder of capital, or in connection with:
33                  (A)  servicing  or   processing   a   financial
34             product  or  service  requested or authorized by the
 
HB3663 Engrossed            -28-     LRB093 09178 JLS 09410 b
 1             member or holder of capital;
 2                  (B)  maintaining or servicing an account  of  a
 3             member  or  holder of capital with the savings bank;
 4             or
 5                  (C)  a proposed  or  actual  securitization  or
 6             secondary  market sale (including sales of servicing
 7             rights) related to a  transaction  of  a  member  or
 8             holder of capital.
 9             Nothing  in  this item (14), however, authorizes the
10        sale of the financial records or information of a  member
11        or holder of capital without the consent of the member or
12        holder of capital.
13             (15)  The exchange in the regular course of business
14        of  information  between  a savings bank and any commonly
15        owned affiliate of  the  savings  bank,  subject  to  the
16        provisions  of the Financial Institutions Insurance Sales
17        Law.
18             (16)  The  disclosure  of   financial   records   or
19        information  as  necessary  to protect against or prevent
20        actual or  potential  fraud,  unauthorized  transactions,
21        claims, or other liability.
22             (17) (a)  The  disclosure  of  financial  records or
23        information related to a  private  label  credit  program
24        between a financial institution and a private label party
25        in  connection  with  that  private label credit program.
26        Such  information  is  limited  to  outstanding  balance,
27        available credit, payment  and  performance  and  account
28        history,  product  references,  purchase information, and
29        information related to the identity of the customer.
30             (b) (l)  For purposes  of  this  paragraph  (17)  of
31        subsection  (c)  of Section 4013, a "private label credit
32        program" means a credit  program  involving  a  financial
33        institution  and  a private label party that is used by a
34        customer of the financial  institution  and  the  private
 
HB3663 Engrossed            -29-     LRB093 09178 JLS 09410 b
 1        label  party  primarily for payment for goods or services
 2        sold, manufactured, or distributed  by  a  private  label
 3        party.
 4             (2)  For   purposes   of   this  paragraph  (17)  of
 5        subsection (c) of Section 4013, a "private  label  party"
 6        means,  with  respect  to a private label credit program,
 7        any  of  the  following:  a  retailer,  a   merchant,   a
 8        manufacturer,   a  trade  group,  or  any  such  person's
 9        affiliate,  subsidiary,   member,   agent,   or   service
10        provider.
11        (d)  A  savings  bank  may  not  disclose  to any person,
12    except to the  member  or  holder  of  capital  or  his  duly
13    authorized  agent,  any  financial  records  relating to that
14    member or shareholder of the savings bank unless:
15             (1)  the  member  or  shareholder   has   authorized
16        disclosure to the person; or
17             (2)  the financial records are disclosed in response
18        to  a  lawful  subpoena, summons, warrant, or court order
19        that meets the requirements of  subsection  (e)  of  this
20        Section.
21        (e)  A  savings  bank  shall  disclose  financial records
22    under subsection (d) of this Section  pursuant  to  a  lawful
23    subpoena,  summons,  warrant,  or  court order only after the
24    savings bank mails a copy of the subpoena, summons,  warrant,
25    or  court  order  to the person establishing the relationship
26    with the savings bank, if living, and otherwise, his personal
27    representative, if known, at his last known address by  first
28    class  mail,  postage  prepaid,  unless  the  savings bank is
29    specifically prohibited from notifying the person by order of
30    court.
31        (f)  Any officer  or  employee  of  a  savings  bank  who
32    knowingly   and  willfully  furnishes  financial  records  in
33    violation of this Section is guilty  of  a  business  offense
34    and, upon conviction, shall be fined not more than $1,000.
 
HB3663 Engrossed            -30-     LRB093 09178 JLS 09410 b
 1        (g)  Any  person  who  knowingly and willfully induces or
 2    attempts to induce any officer or employee of a savings  bank
 3    to disclose financial records in violation of this Section is
 4    guilty  of  a business offense and, upon conviction, shall be
 5    fined not more than $1,000.
 6        (h)  If any member or shareholder desires to  communicate
 7    with  the  other  members or shareholders of the savings bank
 8    with reference to any question pending or to be presented  at
 9    an  annual  or  special  meeting, the savings bank shall give
10    that person, upon request, a  statement  of  the  approximate
11    number  of  members  or  shareholders entitled to vote at the
12    meeting and an estimate of the cost of preparing and  mailing
13    the  communication.   The  requesting member shall submit the
14    communication to the Commissioner who, upon finding it to  be
15    appropriate  and  truthful,  shall direct that it be prepared
16    and mailed to the members upon  the  requesting  member's  or
17    shareholder's  payment  or  adequate provision for payment of
18    the expenses of preparation and mailing.
19        (i)  A savings bank shall be reimbursed  for  costs  that
20    are  necessary  and  that  have  been  directly  incurred  in
21    searching  for,  reproducing,  or transporting books, papers,
22    records,  or  other  data  of  a  customer  required  to   be
23    reproduced  pursuant  to a lawful subpoena, warrant, or court
24    order.
25        (j)  Notwithstanding the provisions of  this  Section,  a
26    savings  bank  may  sell  or  otherwise  make use of lists of
27    customers'  names  and  addresses.   All  other   information
28    regarding  a customer's account are subject to the disclosure
29    provisions of this Section.  At the request of any  customer,
30    that  customer's  name  and address shall be deleted from any
31    list that is to be sold or used in any  other  manner  beyond
32    identification of the customer's accounts.
33    (Source:  P.A.  91-929,  eff. 12-15-00; 92-483, eff. 8-23-01;
34    92-543, eff. 6-12-02.)
 
HB3663 Engrossed            -31-     LRB093 09178 JLS 09410 b
 1        (205 ILCS 205/9012) (from Ch. 17, par. 7309-12)
 2        Sec. 9012.  Disclosure of  reports  of  examinations  and
 3    confidential supervisory information; limitations.
 4        (a)  Any    report   of   examination,   visitation,   or
 5    investigation prepared by the Commissioner  under  this  Act,
 6    any  report  of  examination,  visitation,  or  investigation
 7    prepared  by  the state regulatory authority of another state
 8    that examines a branch of an Illinois State savings  bank  in
 9    that  state,  any  document or record prepared or obtained in
10    connection with or relating to any  examination,  visitation,
11    or  investigation, and any record prepared or obtained by the
12    Commissioner to the extent  that  the  record  summarizes  or
13    contains  information  derived  from any report, document, or
14    record  described  in  this  subsection   shall   be   deemed
15    confidential     supervisory    information.    "Confidential
16    supervisory information" shall not include any information or
17    record routinely prepared by a savings bank and maintained in
18    the ordinary course of business or any information or  record
19    that  is  required  to be made publicly available pursuant to
20    State  or  federal  law  or  rule.  Confidential  supervisory
21    information shall be the property  of  the  Commissioner  and
22    shall  only  be disclosed under the circumstances and for the
23    purposes set forth in this Section.
24        The Commissioner may  disclose  confidential  supervisory
25    information only under the following circumstances:
26             (1)  The   Commissioner   may  furnish  confidential
27        supervisory information to federal and  state  depository
28        institution  regulators,  or  any  official  or  examiner
29        thereof   duly   accredited   for  the  purpose.  Nothing
30        contained in this Act shall be  construed  to  limit  the
31        obligation  of  any  savings  bank  to  comply  with  the
32        requirements  relative to examinations and reports nor to
33        limit in any way the powers of the Commissioner  relative
34        to examinations and reports.
 
HB3663 Engrossed            -32-     LRB093 09178 JLS 09410 b
 1             (2)  The   Commissioner   may  furnish  confidential
 2        supervisory information  to  the  United  States  or  any
 3        agency  thereof  that to any extent has insured a savings
 4        bank's deposits, or any official or examiner thereof duly
 5        accredited for the purpose. Nothing contained in this Act
 6        shall be construed to limit the  obligation  relative  to
 7        examinations  and  reports  of  any savings bank in which
 8        deposits are to any extent insured by the  United  States
 9        or  any agency thereof nor to limit in any way the powers
10        of the Commissioner with  reference  to  examination  and
11        reports of the savings bank.
12             (3)  The   Commissioner   may  furnish  confidential
13        supervisory   information   to   the   appropriate    law
14        enforcement  authorities when the Commissioner reasonably
15        believes a  savings  bank,  which  the  Commissioner  has
16        caused to be examined, has been a victim of a crime.
17             (4)  The   Commissioner   may  furnish  confidential
18        supervisory information related to a savings bank,  which
19        the  Commissioner  has  caused  to  be  examined,  to the
20        administrator of the  Uniform  Disposition  of  Unclaimed
21        Property Act.
22             (5)  The   Commissioner   may  furnish  confidential
23        supervisory information relating to a savings bank, which
24        the Commissioner has caused to be examined,  relating  to
25        its  performance of obligations under the Illinois Income
26        Tax Act and the Illinois Estate  and  Generation-Skipping
27        Transfer Tax Act to the Illinois Department of Revenue.
28             (6)  The   Commissioner   may  furnish  confidential
29        supervisory information relating to a savings bank, which
30        the Commissioner has caused to  be  examined,  under  the
31        federal  Currency and Foreign Transactions Reporting Act,
32        31 United States Code, Section 1051 et seq.
33             (7)  The  Commissioner  may   furnish   confidential
34        supervisory  information  to  any  other agency or entity
 
HB3663 Engrossed            -33-     LRB093 09178 JLS 09410 b
 1        that the Commissioner determines  to  have  a  legitimate
 2        regulatory interest.
 3             (8)  The   Commissioner   may  furnish  confidential
 4        supervisory  information  as   otherwise   permitted   or
 5        required   by  this  Act  and  may  furnish  confidential
 6        supervisory information under any other statute  that  by
 7        its   terms  or  by  regulations  promulgated  thereunder
 8        requires the disclosure of financial records  other  than
 9        by subpoena, summons, warrant, or court order.
10             (9)  At  the  request  of the affected savings bank,
11        the Commissioner  may  furnish  confidential  supervisory
12        information  relating  to  the  savings  bank,  which the
13        Commissioner has caused to  be  examined,  in  connection
14        with  the  obtaining of insurance coverage or the pursuit
15        of an insurance claim for or on  behalf  of  the  savings
16        bank;  provided  that,  when  possible,  the Commissioner
17        shall   disclose   only   relevant   information    while
18        maintaining  the confidentiality of financial records not
19        relevant to such insurance coverage or  claim  and,  when
20        appropriate,  may delete identifying data relating to any
21        person.
22             (10)  The Commissioner  may  furnish  a  copy  of  a
23        report  of  any examination performed by the Commissioner
24        of the condition  and  affairs  of  any  electronic  data
25        processing  entity  to  the savings banks serviced by the
26        electronic data processing entity.
27             (11)  In addition to  the  foregoing  circumstances,
28        the  Commissioner  may,  but  is not required to, furnish
29        confidential  supervisory  information  under  the   same
30        circumstances authorized for the savings bank pursuant to
31        subsection   (b)   of   this  Section,  except  that  the
32        Commissioner  shall  provide   confidential   supervisory
33        information  under  circumstances  described in paragraph
34        (3) of subsection (b)  of  this  Section  only  upon  the
 
HB3663 Engrossed            -34-     LRB093 09178 JLS 09410 b
 1        request of the savings bank.
 2        (b)  A   savings   bank  or  its  officers,  agents,  and
 3    employees may disclose confidential  supervisory  information
 4    only under the following circumstances:
 5             (1)  to  the board of directors of the savings bank,
 6        as well as the president,  vice-president,  cashier,  and
 7        other  officers  of the savings bank to whom the board of
 8        directors may delegate duties with respect to  compliance
 9        with  recommendations  for  action,  and  to the board of
10        directors of a savings bank holding company that owns  at
11        least 80% of the outstanding stock of the savings bank or
12        other financial institution.
13             (2)  to  attorneys  for  the  savings  bank and to a
14        certified public accountant engaged by the  savings  bank
15        to  perform  an  independent  audit;  provided  that  the
16        attorney  or certified public accountant shall not permit
17        the confidential supervisory information  to  be  further
18        disseminated.
19             (3)  to   any   person   who   seeks  to  acquire  a
20        controlling interest in, or who seeks to merge with,  the
21        savings  bank; provided that the person shall agree to be
22        bound to respect the confidentiality of the  confidential
23        supervisory  information  and  to not further disseminate
24        the information other than to attorneys, certified public
25        accountants,  officers,  agents,  or  employees  of  that
26        person who likewise shall agree to be  bound  to  respect
27        the   confidentiality  of  the  confidential  supervisory
28        information  and   to   not   further   disseminate   the
29        information.
30             (4)  to the savings bank's insurance company, if the
31        supervisory  information  contains  information  that  is
32        otherwise   unavailable  and  is  strictly  necessary  to
33        obtaining insurance coverage  or  pursuing  an  insurance
34        claim  for  or  on  behalf  of the savings bank; provided
 
HB3663 Engrossed            -35-     LRB093 09178 JLS 09410 b
 1        that, when possible, the savings bank shall disclose only
 2        information  that  is  relevant  to  obtaining  insurance
 3        coverage  or   pursuing   an   insurance   claim,   while
 4        maintaining  the confidentiality of financial information
 5        pertaining to customers; and provided further that,  when
 6        appropriate, the savings bank may delete identifying data
 7        relating to any person.
 8        The disclosure of confidential supervisory information by
 9    a  savings  bank  pursuant  to  this  subsection  (b) and the
10    disclosure  of  information  to  the  Commissioner  or  other
11    regulatory  agency  in  connection  with   any   examination,
12    visitation, or investigation shall not constitute a waiver of
13    any  legal  privilege otherwise available to the savings bank
14    with respect to the information.
15        (c)  (1) Notwithstanding any other provision of this  Act
16    or  any other law, confidential supervisory information shall
17    be the property of the Commissioner and shall  be  privileged
18    from  disclosure  to  any  person  except as provided in this
19    Section. No person in possession of confidential  supervisory
20    information  may  disclose that information for any reason or
21    under any circumstances not specified in this Section without
22    the prior authorization of the Commissioner. Any person  upon
23    whom  a  demand  for  production  of confidential supervisory
24    information is made, whether by  subpoena,  order,  or  other
25    judicial  or administrative process, must withhold production
26    of the confidential supervisory information and  must  notify
27    the   Commissioner   of   the   demand,  at  which  time  the
28    Commissioner is authorized to intervene for  the  purpose  of
29    enforcing  the  limitations  of  this  Section or seeking the
30    withdrawal or termination of the attempt to compel production
31    of the confidential supervisory information.
32             (2)  Any request  for  discovery  or  disclosure  of
33        confidential    supervisory   information,   whether   by
34        subpoena, order,  or  other  judicial  or  administrative
 
HB3663 Engrossed            -36-     LRB093 09178 JLS 09410 b
 1        process,  shall  be  made  to  the  Commissioner, and the
 2        Commissioner shall determine within 15  days  whether  to
 3        disclose  the  information  pursuant  to  procedures  and
 4        standards  that the Commissioner shall establish by rule.
 5        If the Commissioner determines that such information will
 6        not be disclosed, the Commissioner's  decision  shall  be
 7        subject  to  judicial  review under the provisions of the
 8        Administrative Review Law, and venue shall be  in  either
 9        Sangamon County or Cook County.
10             (3)  Any  court  order  that  compels  disclosure of
11        confidential supervisory information may  be  immediately
12        appealed  by  the  Commissioner,  and  the order shall be
13        automatically stayed pending the outcome of the appeal.
14        (d)  If any officer, agent, attorney, or  employee  of  a
15    savings  bank  knowingly and willfully furnishes confidential
16    supervisory information in violation  of  this  Section,  the
17    Commissioner may impose a civil monetary penalty up to $1,000
18    for  the  violation  against the officer, agent, attorney, or
19    employee.  Disclosure  of  examination  reports   and   other
20    records.
21        (a)  Except   as   provided   in   subsection   (b)   the
22    Commissioner may disclose information gathered by examination
23    of  and through reports from a savings bank only to the board
24    of directors of the savings bank,  other  federal  and  state
25    financial    services    regulators,   law   enforcement   or
26    prosecutorial agencies, and the  savings  bank's  independent
27    licensed public accountants.
28        (e) (b)  Subject  to  the  limits  of  this  Section, the
29    Commissioner  also  may   promulgate   regulations   to   set
30    procedures  and  standards for allow disclosure of other than
31    as provided in subsection (a), but  only  for  the  following
32    items:
33             (1)  All  fixed orders and opinions made in cases of
34        appeals of the Commissioner's actions.
 
HB3663 Engrossed            -37-     LRB093 09178 JLS 09410 b
 1             (2)  Statements  of   policy   and   interpretations
 2        adopted  by  the Commissioner's office, but not otherwise
 3        made public.
 4             (3)  Nonconfidential portions of application  files,
 5        including    applications    for   new   charters.    The
 6        Commissioner shall specify by rule as to what part of the
 7        files are confidential.
 8             (4)  Quarterly  reports  of  income,  deposits,  and
 9        financial condition.
10    (Source: P.A. 86-1213.)

11        Section 99.  Effective date.  This Act takes effect  upon
12    becoming law.