Full Text of SB0229 95th General Assembly
SB0229sam001 95TH GENERAL ASSEMBLY
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Sen. Ira I. Silverstein
Filed: 2/22/2007
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09500SB0229sam001 |
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LRB095 07909 AJO 31692 a |
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| AMENDMENT TO SENATE BILL 229
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| AMENDMENT NO. ______. Amend Senate Bill 229 on page 1, | 3 |
| immediately below line 3, by inserting the following:
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| "Section 2. The Illinois Banking Act is amended by changing | 5 |
| Section 48.1 as follows:
| 6 |
| (205 ILCS 5/48.1) (from Ch. 17, par. 360)
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| Sec. 48.1. Customer financial records; confidentiality.
| 8 |
| (a) For the purpose of this Section, the term "financial | 9 |
| records" means any
original, any copy, or any summary of:
| 10 |
| (1) a document granting signature
authority over a | 11 |
| deposit or account;
| 12 |
| (2) a statement, ledger card or other
record on any | 13 |
| deposit or account, which shows each transaction in or with
| 14 |
| respect to that account;
| 15 |
| (3) a check, draft or money order drawn on a bank
or | 16 |
| issued and payable by a bank; or
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LRB095 07909 AJO 31692 a |
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| (4) any other item containing
information pertaining | 2 |
| to any relationship established in the ordinary
course of a | 3 |
| bank's business between a bank and its customer, including
| 4 |
| financial statements or other financial information | 5 |
| provided by the customer.
| 6 |
| (b) This Section does not prohibit:
| 7 |
| (1) The preparation, examination, handling or | 8 |
| maintenance of any
financial records by any officer, | 9 |
| employee or agent of a bank
having custody of the records, | 10 |
| or the examination of the records by a
certified public | 11 |
| accountant engaged by the bank to perform an independent
| 12 |
| audit.
| 13 |
| (2) The examination of any financial records by, or the | 14 |
| furnishing of
financial records by a bank to, any officer, | 15 |
| employee or agent of (i) the
Commissioner of Banks and Real | 16 |
| Estate, (ii) after May
31, 1997, a state regulatory | 17 |
| authority authorized to examine a branch of a
State bank | 18 |
| located in another state, (iii) the Comptroller of the | 19 |
| Currency,
(iv) the Federal Reserve Board, or (v) the | 20 |
| Federal Deposit Insurance
Corporation for use solely in the | 21 |
| exercise of his duties as an officer,
employee, or agent.
| 22 |
| (3) The publication of data furnished from financial | 23 |
| records
relating to customers where the data cannot be | 24 |
| identified to any
particular customer or account.
| 25 |
| (4) The making of reports or returns required under | 26 |
| Chapter 61 of
the Internal Revenue Code of 1986.
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LRB095 07909 AJO 31692 a |
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| (5) Furnishing information concerning the dishonor of | 2 |
| any negotiable
instrument permitted to be disclosed under | 3 |
| the Uniform Commercial Code.
| 4 |
| (6) The exchange in the regular course of business of | 5 |
| (i) credit
information
between a bank and other banks or | 6 |
| financial institutions or commercial
enterprises, directly | 7 |
| or through a consumer reporting agency or (ii)
financial | 8 |
| records or information derived from financial records | 9 |
| between a bank
and other banks or financial institutions or | 10 |
| commercial enterprises for the
purpose of conducting due | 11 |
| diligence pursuant to a purchase or sale involving
the bank | 12 |
| or assets or liabilities of the bank.
| 13 |
| (7) The furnishing of information to the appropriate | 14 |
| law enforcement
authorities where the bank reasonably | 15 |
| believes it has been the victim of a
crime.
| 16 |
| (8) The furnishing of information under the Uniform | 17 |
| Disposition of
Unclaimed Property Act.
| 18 |
| (9) The furnishing of information under the Illinois | 19 |
| Income Tax Act and
the Illinois Estate and | 20 |
| Generation-Skipping Transfer Tax Act.
| 21 |
| (10) The furnishing of information under the federal | 22 |
| Currency
and Foreign Transactions Reporting Act Title 31, | 23 |
| United States
Code, Section 1051 et seq.
| 24 |
| (11) The furnishing of information under any other | 25 |
| statute that
by its terms or by regulations promulgated | 26 |
| thereunder requires the disclosure
of financial records |
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| other than by subpoena, summons, warrant, or court order.
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| (12) The furnishing of information about the existence | 3 |
| of an account
of a person to a judgment creditor of that | 4 |
| person who has made a written
request for that information.
| 5 |
| (13) The exchange in the regular course of business of | 6 |
| information
between commonly owned banks in connection | 7 |
| with a transaction authorized
under paragraph (23) of
| 8 |
| Section 5 and conducted at an affiliate facility.
| 9 |
| (14) The furnishing of information in accordance with | 10 |
| the federal
Personal Responsibility and Work Opportunity | 11 |
| Reconciliation Act of 1996.
Any bank governed by this Act | 12 |
| shall enter into an agreement for data
exchanges with a | 13 |
| State agency provided the State agency
pays to the bank a | 14 |
| reasonable fee not to exceed its
actual cost incurred. A | 15 |
| bank providing
information in accordance with this item | 16 |
| shall not be liable to any account
holder or other person | 17 |
| for any disclosure of information to a State agency, for
| 18 |
| encumbering or surrendering any assets held by the bank in | 19 |
| response to a lien
or order to withhold and deliver issued | 20 |
| by a State agency, or for any other
action taken pursuant | 21 |
| to this item, including individual or mechanical errors,
| 22 |
| provided the action does not constitute gross negligence or | 23 |
| willful misconduct.
A bank shall have no obligation to | 24 |
| hold, encumber, or surrender assets until
it has been | 25 |
| served with a subpoena, summons, warrant, court or | 26 |
| administrative
order,
lien, or levy.
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| (15) The exchange in the regular course of business of | 2 |
| information
between
a bank and any commonly owned affiliate | 3 |
| of the bank, subject to the provisions
of the Financial | 4 |
| Institutions Insurance Sales Law.
| 5 |
| (16) The furnishing of information to law enforcement | 6 |
| authorities, the
Illinois Department on
Aging and its | 7 |
| regional administrative and provider agencies, the | 8 |
| Department of
Human Services Office
of Inspector General, | 9 |
| or public guardians: (i) upon subpoena by the investigatory | 10 |
| entity or the guardian, or (ii) if there is suspicion by | 11 |
| the bank that a customer
who is an elderly or
disabled | 12 |
| person has been or may become the victim of financial | 13 |
| exploitation.
For the purposes of this
item (16), the term: | 14 |
| (i) "elderly person" means a person who is 60 or more
years | 15 |
| of age, (ii) "disabled
person" means a person who has or | 16 |
| reasonably appears to the bank to have a
physical or mental
| 17 |
| disability that impairs his or her ability to seek or | 18 |
| obtain protection from or
prevent financial
exploitation, | 19 |
| and (iii) "financial exploitation" means tortious or | 20 |
| illegal use
of the assets or resources of
an elderly or | 21 |
| disabled person, and includes, without limitation,
| 22 |
| misappropriation of the elderly or
disabled person's | 23 |
| assets or resources by undue influence, breach of fiduciary
| 24 |
| relationship, intimidation,
fraud, deception, extortion, | 25 |
| or the use of assets or resources in any manner
contrary to | 26 |
| law. A bank or
person furnishing information pursuant to |
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| this item (16) shall be entitled to
the same rights and
| 2 |
| protections as a person furnishing information under the | 3 |
| Elder Abuse and
Neglect Act, the Illinois
Domestic Violence | 4 |
| Act of 1986, and the Abuse of Adults with Disabilities | 5 |
| Intervention Act.
| 6 |
| (17) The disclosure of financial records or | 7 |
| information as necessary to
effect, administer, or enforce | 8 |
| a transaction requested or authorized by the
customer, or | 9 |
| in connection with:
| 10 |
| (A) servicing or processing a financial product or | 11 |
| service requested or
authorized by the customer;
| 12 |
| (B) maintaining or servicing a customer's account | 13 |
| with the bank; or
| 14 |
| (C) a proposed or actual securitization or | 15 |
| secondary market sale
(including sales of servicing | 16 |
| rights) related to a
transaction of a customer.
| 17 |
| Nothing in this item (17), however, authorizes the sale | 18 |
| of the financial
records or information of a customer | 19 |
| without the consent of the customer.
| 20 |
| (18) The disclosure of financial records or | 21 |
| information as necessary to
protect against actual or | 22 |
| potential fraud, unauthorized transactions, claims,
or | 23 |
| other liability.
| 24 |
| (19)(a) The disclosure of financial records or | 25 |
| information
related to a private label credit program | 26 |
| between a financial
institution and a private label party |
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| in connection with that
private label credit program. Such | 2 |
| information is limited to
outstanding balance, available | 3 |
| credit, payment and performance
and account history, | 4 |
| product references, purchase information,
and information
| 5 |
| related to the identity of the customer.
| 6 |
| (b)(l) For purposes of this paragraph (19) of | 7 |
| subsection
(b) of Section 48.1, a "private label credit | 8 |
| program" means a
credit program involving a financial | 9 |
| institution and a private label
party that is used by a | 10 |
| customer of the financial institution and the
private label | 11 |
| party primarily for payment for goods or services
sold, | 12 |
| manufactured, or distributed by a private label party.
| 13 |
| (2) For purposes of this paragraph (19) of subsection | 14 |
| (b)
of Section 48.l, a "private label party" means, with | 15 |
| respect to a
private label credit program, any of the | 16 |
| following: a
retailer, a merchant, a manufacturer, a trade | 17 |
| group,
or any such person's affiliate, subsidiary, member,
| 18 |
| agent, or service provider.
| 19 |
| (c) Except as otherwise provided by this Act, a bank may | 20 |
| not disclose to
any person, except to the customer or his
duly | 21 |
| authorized agent, any financial records or financial | 22 |
| information
obtained from financial records relating to that | 23 |
| customer of
that bank unless:
| 24 |
| (1) the customer has authorized disclosure to the | 25 |
| person;
| 26 |
| (2) the financial records are disclosed in response to |
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| a lawful
subpoena, summons, warrant , citation to discover | 2 |
| assets, or court order which meets the requirements
of | 3 |
| subsection (d) of this Section; or
| 4 |
| (3) the bank is attempting to collect an obligation | 5 |
| owed to the bank
and the bank complies with the provisions | 6 |
| of Section 2I of the Consumer
Fraud and Deceptive Business | 7 |
| Practices Act.
| 8 |
| (d) A bank shall disclose financial records under paragraph | 9 |
| (2) of
subsection (c) of this Section under a lawful subpoena, | 10 |
| summons, warrant, citation to discover assets, or
court order | 11 |
| only after the bank mails a copy of the subpoena, summons, | 12 |
| warrant, citation to discover assets,
or court order to the | 13 |
| person establishing the relationship with the bank, if
living, | 14 |
| and, otherwise his personal representative, if known, at his | 15 |
| last known
address by first class mail, postage prepaid, unless | 16 |
| the bank is specifically
prohibited from notifying the person | 17 |
| by order of court or by applicable State
or federal law. A bank | 18 |
| shall not mail a copy of a subpoena to any person
pursuant to | 19 |
| this subsection if the subpoena was issued by a grand jury | 20 |
| under
the Statewide Grand Jury Act.
| 21 |
| (e) Any officer or employee of a bank who knowingly and
| 22 |
| willfully furnishes financial records in violation of this | 23 |
| Section is
guilty of a business offense and, upon conviction, | 24 |
| shall be fined not
more than $1,000.
| 25 |
| (f) Any person who knowingly and willfully induces or | 26 |
| attempts to
induce any officer or employee of a bank to |
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LRB095 07909 AJO 31692 a |
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| disclose financial
records in violation of this Section is | 2 |
| guilty of a business offense
and, upon conviction, shall be | 3 |
| fined not more than $1,000.
| 4 |
| (g) A bank shall be reimbursed for costs that are | 5 |
| reasonably necessary
and that have been directly incurred in | 6 |
| searching for, reproducing, or
transporting books, papers, | 7 |
| records, or other data of a customer required or
requested to | 8 |
| be produced pursuant to a lawful subpoena, summons, warrant, | 9 |
| citation to discover assets, or
court order. The Commissioner | 10 |
| shall determine the rates and conditions
under which payment | 11 |
| may be made.
| 12 |
| (Source: P.A. 94-495, eff. 8-8-05; 94-851, eff. 6-13-06.)
| 13 |
| Section 2.5. The Illinois Savings and Loan Act of 1985 is | 14 |
| amended by changing Section 3-8 as follows:
| 15 |
| (205 ILCS 105/3-8) (from Ch. 17, par. 3303-8)
| 16 |
| Sec. 3-8. Access to books and records; communication with | 17 |
| members.
| 18 |
| (a) Every member or holder of capital shall have the right | 19 |
| to inspect
the books and records of the association that | 20 |
| pertain to his account.
Otherwise, the right of inspection and | 21 |
| examination of the books and
records shall be limited as | 22 |
| provided in this Act, and no other person
shall have access to | 23 |
| the books and records or shall be entitled to a
list of the | 24 |
| members.
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| (b) For the purpose of this Section, the term "financial | 2 |
| records"
means any original, any copy, or any summary of (i) a | 3 |
| document granting
signature authority over a deposit or | 4 |
| account; (ii) a statement, ledger
card, or other record on any | 5 |
| deposit or account that
shows each transaction in or with | 6 |
| respect to that account; (iii) a check,
draft, or money order | 7 |
| drawn on an association or issued and payable by
an | 8 |
| association; or (iv) any other item containing information | 9 |
| pertaining to
any relationship established in the ordinary | 10 |
| course of an association's
business between an association and | 11 |
| its customer, including financial
statements or other | 12 |
| financial information provided by the member or holder of
| 13 |
| capital.
| 14 |
| (c) This Section does not prohibit:
| 15 |
| (1) The preparation, examination, handling, or | 16 |
| maintenance of any
financial records by any officer, | 17 |
| employee, or agent of an association having
custody of | 18 |
| those records or the examination of those records by a | 19 |
| certified
public accountant engaged by the association to | 20 |
| perform an independent
audit.
| 21 |
| (2) The examination of any financial records by, or the | 22 |
| furnishing of
financial records by an association to, any | 23 |
| officer, employee, or agent of the
Commissioner of Banks | 24 |
| and Real Estate or federal depository institution
| 25 |
| regulator for use solely in the exercise
of
his duties as | 26 |
| an officer, employee, or agent.
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| (3) The publication of data furnished from financial | 2 |
| records
relating to members or holders of capital where the | 3 |
| data cannot be
identified to any particular member, holder | 4 |
| of capital, or account.
| 5 |
| (4) The making of reports or returns required under | 6 |
| Chapter 61 of
the Internal Revenue Code of 1986.
| 7 |
| (5) Furnishing information concerning the dishonor of | 8 |
| any negotiable
instrument permitted to be disclosed under | 9 |
| the Uniform Commercial
Code.
| 10 |
| (6) The exchange in the regular course of business of | 11 |
| (i) credit
information between an association and other | 12 |
| associations or financial
institutions or commercial | 13 |
| enterprises, directly or through a consumer
reporting | 14 |
| agency
or (ii) financial records or information derived | 15 |
| from financial records
between an association and other | 16 |
| associations or financial institutions or
commercial | 17 |
| enterprises for the purpose of conducting due diligence | 18 |
| pursuant to
a purchase or sale involving the association or | 19 |
| assets or liabilities of the
association.
| 20 |
| (7) The furnishing of information to the appropriate | 21 |
| law enforcement
authorities where the association | 22 |
| reasonably believes it has been the
victim of a crime.
| 23 |
| (8) The furnishing of information pursuant to the | 24 |
| Uniform Disposition
of Unclaimed Property Act.
| 25 |
| (9) The furnishing of information pursuant to the | 26 |
| Illinois Income Tax
Act and the Illinois Estate and |
|
|
|
09500SB0229sam001 |
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LRB095 07909 AJO 31692 a |
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| Generation-Skipping Transfer Tax Act.
| 2 |
| (10) The furnishing of information pursuant to the | 3 |
| federal "Currency
and Foreign Transactions Reporting Act", | 4 |
| (Title 31, United States
Code, Section 1051 et seq.).
| 5 |
| (11) The furnishing of information pursuant to any | 6 |
| other statute that
by its terms or by regulations | 7 |
| promulgated thereunder requires the disclosure
of | 8 |
| financial records other than by subpoena, summons, | 9 |
| warrant, or court
order.
| 10 |
| (12) The exchange of information between an | 11 |
| association and an affiliate
of the association; as used in | 12 |
| this item, "affiliate" includes any
company, partnership, | 13 |
| or organization that controls, is controlled by, or is
| 14 |
| under common control with an association.
| 15 |
| (13) The furnishing of information
in accordance with | 16 |
| the federal Personal Responsibility and Work Opportunity
| 17 |
| Reconciliation Act of 1996. Any association governed by | 18 |
| this Act shall enter
into an agreement for data
exchanges | 19 |
| with a State agency provided the State agency
pays to the | 20 |
| association a reasonable fee not to exceed its
actual cost | 21 |
| incurred. An association
providing
information in | 22 |
| accordance with this item shall not be liable to any | 23 |
| account
holder or other person for any disclosure of | 24 |
| information to a State agency, for
encumbering or | 25 |
| surrendering any assets held by the association in response | 26 |
| to a
lien
or order to withhold and deliver issued by a |
|
|
|
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LRB095 07909 AJO 31692 a |
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| State agency, or for any other
action taken pursuant to | 2 |
| this item, including individual or mechanical errors,
| 3 |
| provided the action does not constitute gross negligence or | 4 |
| willful misconduct.
An association shall have no | 5 |
| obligation to hold, encumber, or surrender assets
until it | 6 |
| has been served with a subpoena, summons, warrant, court or
| 7 |
| administrative order, lien, or levy.
| 8 |
| (14) The furnishing of information to law enforcement | 9 |
| authorities, the
Illinois Department on
Aging and its | 10 |
| regional administrative and provider agencies, the | 11 |
| Department of
Human Services Office
of Inspector General, | 12 |
| or public guardians: (i) upon subpoena by the investigatory | 13 |
| entity or the guardian, or (ii) if there is suspicion by | 14 |
| the association that a
customer who is an elderly or
| 15 |
| disabled person has been or may become the victim of | 16 |
| financial exploitation.
For the purposes of this
item (14), | 17 |
| the term: (i) "elderly person" means a person who is 60 or | 18 |
| more
years of age, (ii) "disabled
person" means a person | 19 |
| who has or reasonably appears to the association to have
a | 20 |
| physical or mental
disability that impairs his or her | 21 |
| ability to seek or obtain protection from or
prevent | 22 |
| financial
exploitation, and (iii) "financial exploitation" | 23 |
| means tortious or illegal use
of the assets or resources of
| 24 |
| an elderly or disabled person, and includes, without | 25 |
| limitation,
misappropriation of the elderly or
disabled | 26 |
| person's assets or resources by undue influence, breach of |
|
|
|
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LRB095 07909 AJO 31692 a |
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| fiduciary
relationship, intimidation,
fraud, deception, | 2 |
| extortion, or the use of assets or resources in any manner
| 3 |
| contrary to law. An
association or person furnishing | 4 |
| information pursuant to this item (14) shall
be entitled to | 5 |
| the same
rights and protections as a person furnishing | 6 |
| information under the Elder Abuse
and Neglect Act, the
| 7 |
| Illinois Domestic Violence Act of 1986, and the Abuse of | 8 |
| Adults with Disabilities Intervention Act.
| 9 |
| (15) The disclosure of financial records or | 10 |
| information as necessary to
effect, administer, or enforce | 11 |
| a transaction requested or authorized by the
member or | 12 |
| holder of capital, or in connection with:
| 13 |
| (A) servicing or processing a financial product or | 14 |
| service requested or
authorized by the member or holder | 15 |
| of capital;
| 16 |
| (B) maintaining or servicing an account of a member | 17 |
| or holder of capital
with the association; or
| 18 |
| (C) a proposed or actual securitization or | 19 |
| secondary market sale
(including
sales of servicing | 20 |
| rights) related to a transaction of
a member or holder | 21 |
| of capital.
| 22 |
| Nothing in this item (15), however, authorizes the sale | 23 |
| of the financial
records or information of a member or | 24 |
| holder of capital without the consent of
the member or | 25 |
| holder of capital.
| 26 |
| (16) The disclosure of financial records or |
|
|
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09500SB0229sam001 |
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LRB095 07909 AJO 31692 a |
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| 1 |
| information as necessary to
protect against or prevent | 2 |
| actual or potential fraud, unauthorized
transactions, | 3 |
| claims, or other liability.
| 4 |
| (17)(a) The disclosure of financial records or | 5 |
| information
related to a private label credit program | 6 |
| between a financial
institution and a private label party | 7 |
| in connection
with that private label credit program. Such | 8 |
| information
is limited to outstanding balance, available | 9 |
| credit, payment and
performance and account history, | 10 |
| product references, purchase
information,
and information | 11 |
| related to the identity of the
customer.
| 12 |
| (b)(l) For purposes of this paragraph (17) of | 13 |
| subsection
(c) of Section 3-8, a "private label credit | 14 |
| program" means a
credit program involving a financial | 15 |
| institution and a private label
party that is used by a | 16 |
| customer of the financial institution and the
private label | 17 |
| party primarily for payment for goods or services
sold, | 18 |
| manufactured, or distributed by a private label party.
| 19 |
| (2) For purposes of this paragraph (17) of subsection | 20 |
| (c)
of Section 3-8, a "private label party" means, with | 21 |
| respect to a
private label credit program, any of the | 22 |
| following: a
retailer, a merchant, a manufacturer, a trade | 23 |
| group,
or any such person's affiliate, subsidiary, member,
| 24 |
| agent, or service provider.
| 25 |
| (d) An association may not disclose to any person, except | 26 |
| to the
member or holder of capital or his duly authorized |
|
|
|
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LRB095 07909 AJO 31692 a |
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| 1 |
| agent, any financial
records relating to that member or holder | 2 |
| of capital of that association
unless:
| 3 |
| (1) The member or holder of capital has authorized | 4 |
| disclosure to the
person; or
| 5 |
| (2) The financial records are disclosed in response to | 6 |
| a lawful
subpoena, summons, warrant, citation to discover | 7 |
| assets, or court order that meets the
requirements of | 8 |
| subsection (e) of this Section.
| 9 |
| (e) An association shall disclose financial records under | 10 |
| subsection
(d) of this Section pursuant to a lawful subpoena, | 11 |
| summons,
warrant, citation to discover assets, or court order | 12 |
| only after the association mails a copy of the
subpoena, | 13 |
| summons, warrant, citation to discover assets, or court order | 14 |
| to the person establishing
the relationship with the | 15 |
| association, if living, and, otherwise, his
personal | 16 |
| representative, if known, at his last known address by first | 17 |
| class
mail, postage prepaid, unless the association is | 18 |
| specifically prohibited
from notifying that person by order of | 19 |
| court.
| 20 |
| (f)(1) Any officer or employee of an association who | 21 |
| knowingly and
willfully furnishes financial records in | 22 |
| violation of this Section is
guilty of a business offense and, | 23 |
| upon conviction, shall be fined not
more than $1,000.
| 24 |
| (2) Any person who knowingly and willfully induces or | 25 |
| attempts to
induce any officer or employee of an association to | 26 |
| disclose financial
records in violation of this Section is |
|
|
|
09500SB0229sam001 |
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LRB095 07909 AJO 31692 a |
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| 1 |
| guilty of a business offense
and, upon conviction, shall be | 2 |
| fined not more than $1,000.
| 3 |
| (g) However, if any member desires to communicate with the | 4 |
| other
members of the association with reference to any question | 5 |
| pending or to
be presented at a meeting of the members, the | 6 |
| association shall give him
upon request a statement of the | 7 |
| approximate number of members entitled
to vote at the meeting | 8 |
| and an estimate of the cost of
preparing and mailing the | 9 |
| communication. The requesting
member then shall submit the | 10 |
| communication to the Commissioner who, if he
finds it to be | 11 |
| appropriate and truthful, shall direct that it be prepared
and | 12 |
| mailed to the members upon the requesting member's payment or
| 13 |
| adequate provision for payment of the expenses of preparation | 14 |
| and mailing.
| 15 |
| (h) An association shall be reimbursed for costs that are | 16 |
| necessary and
that have been directly incurred in searching | 17 |
| for, reproducing, or
transporting books, papers, records, or | 18 |
| other data of a customer required
to be reproduced pursuant to | 19 |
| a lawful subpoena, warrant, citation to discover assets, or | 20 |
| court order.
| 21 |
| (Source: P.A. 93-271, eff. 7-22-03; 94-495, eff. 8-8-05; | 22 |
| 94-851, eff. 6-13-06.)
| 23 |
| Section 3. The Savings Bank Act is amended by changing | 24 |
| Section 4013 as follows:
|
|
|
|
09500SB0229sam001 |
- 18 - |
LRB095 07909 AJO 31692 a |
|
| 1 |
| (205 ILCS 205/4013) (from Ch. 17, par. 7304-13)
| 2 |
| Sec. 4013. Access to books and records; communication with | 3 |
| members
and shareholders. | 4 |
| (a) Every member or shareholder shall have the right to | 5 |
| inspect books
and records of the savings bank that pertain to | 6 |
| his accounts. Otherwise,
the right of inspection and | 7 |
| examination of the books and records shall be
limited as | 8 |
| provided in this Act, and no other person shall have access to
| 9 |
| the books and records nor shall be entitled to a list of the | 10 |
| members or
shareholders.
| 11 |
| (b) For the purpose of this Section, the term "financial | 12 |
| records" means
any original, any copy, or any summary of (1) a | 13 |
| document granting signature
authority over a deposit or | 14 |
| account; (2) a statement, ledger card, or other
record on any | 15 |
| deposit or account that shows each transaction in or with
| 16 |
| respect to that account; (3) a check, draft, or money order | 17 |
| drawn on a
savings bank or issued and payable by a savings | 18 |
| bank; or (4) any other item
containing information pertaining | 19 |
| to any relationship established in the
ordinary course of a | 20 |
| savings bank's business between a savings bank and
its | 21 |
| customer, including financial statements or other financial | 22 |
| information
provided by the member or shareholder.
| 23 |
| (c) This Section does not prohibit:
| 24 |
| (1) The preparation examination, handling, or | 25 |
| maintenance of any
financial records by any officer, | 26 |
| employee, or agent of a savings bank
having custody of |
|
|
|
09500SB0229sam001 |
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LRB095 07909 AJO 31692 a |
|
| 1 |
| records or examination of records by a certified public
| 2 |
| accountant engaged by the savings bank to perform an | 3 |
| independent audit.
| 4 |
| (2) The examination of any financial records by, or the | 5 |
| furnishing of
financial records by a savings bank to, any | 6 |
| officer, employee, or agent of
the Commissioner of Banks | 7 |
| and Real Estate or the federal depository
institution | 8 |
| regulator for use
solely in
the exercise of his duties as | 9 |
| an officer, employee, or agent.
| 10 |
| (3) The publication of data furnished from financial | 11 |
| records relating
to members or holders of capital where the | 12 |
| data cannot be identified to any
particular member, | 13 |
| shareholder, or account.
| 14 |
| (4) The making of reports or returns required under | 15 |
| Chapter 61 of the
Internal Revenue Code of 1986.
| 16 |
| (5) Furnishing information concerning the dishonor of | 17 |
| any negotiable
instrument permitted to be disclosed under | 18 |
| the Uniform Commercial Code.
| 19 |
| (6) The exchange in the regular course of business of | 20 |
| (i) credit
information between a savings bank and other | 21 |
| savings banks or financial
institutions or commercial | 22 |
| enterprises, directly or through a consumer
reporting | 23 |
| agency
or (ii) financial records or information derived | 24 |
| from financial records
between a savings bank and other | 25 |
| savings banks or financial institutions or
commercial | 26 |
| enterprises for the purpose of conducting due diligence |
|
|
|
09500SB0229sam001 |
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LRB095 07909 AJO 31692 a |
|
| 1 |
| pursuant to
a purchase or sale involving the savings bank | 2 |
| or assets or liabilities of the
savings bank.
| 3 |
| (7) The furnishing of information to the appropriate | 4 |
| law enforcement
authorities where the savings bank | 5 |
| reasonably believes it has been the
victim of a crime.
| 6 |
| (8) The furnishing of information pursuant to the | 7 |
| Uniform Disposition
of Unclaimed Property Act.
| 8 |
| (9) The furnishing of information pursuant to the | 9 |
| Illinois Income Tax
Act
and the Illinois Estate and | 10 |
| Generation-Skipping Transfer Tax Act.
| 11 |
| (10) The furnishing of information pursuant to the | 12 |
| federal "Currency
and Foreign Transactions Reporting Act", | 13 |
| (Title 31, United States Code,
Section 1051 et seq.).
| 14 |
| (11) The furnishing of information pursuant to any | 15 |
| other statute which
by its terms or by regulations | 16 |
| promulgated thereunder requires the
disclosure of | 17 |
| financial records other than by subpoena, summons, | 18 |
| warrant, or
court order.
| 19 |
| (12) The furnishing of information in accordance with | 20 |
| the federal
Personal Responsibility and Work Opportunity | 21 |
| Reconciliation Act of 1996.
Any savings bank governed by | 22 |
| this Act shall enter into an agreement for data
exchanges | 23 |
| with a State agency provided the State agency
pays to the | 24 |
| savings bank a reasonable fee not to exceed its
actual cost | 25 |
| incurred. A savings bank
providing
information in | 26 |
| accordance with this item shall not be liable to any |
|
|
|
09500SB0229sam001 |
- 21 - |
LRB095 07909 AJO 31692 a |
|
| 1 |
| account
holder or other person for any disclosure of | 2 |
| information to a State agency, for
encumbering or | 3 |
| surrendering any assets held by the savings bank in | 4 |
| response to
a lien
or order to withhold and deliver issued | 5 |
| by a State agency, or for any other
action taken pursuant | 6 |
| to this item, including individual or mechanical errors,
| 7 |
| provided the action does not constitute gross negligence or | 8 |
| willful misconduct.
A savings bank shall have no obligation | 9 |
| to hold, encumber, or surrender
assets until
it has been | 10 |
| served with a subpoena, summons, warrant, court or | 11 |
| administrative
order,
lien, or levy.
| 12 |
| (13) The furnishing of information to law enforcement | 13 |
| authorities, the
Illinois Department on
Aging and its | 14 |
| regional administrative and provider agencies, the | 15 |
| Department of
Human Services Office
of Inspector General, | 16 |
| or public guardians: (i) upon subpoena by the investigatory | 17 |
| entity or the guardian, or (ii) if there is suspicion by | 18 |
| the savings bank that a
customer who is an elderly
or | 19 |
| disabled person has been or may become the victim of | 20 |
| financial exploitation.
For the purposes of this
item (13), | 21 |
| the term: (i) "elderly person" means a person who is 60 or | 22 |
| more
years of age, (ii) "disabled
person" means a person | 23 |
| who has or reasonably appears to the savings bank to
have a | 24 |
| physical or mental
disability that impairs his or her | 25 |
| ability to seek or obtain protection from or
prevent | 26 |
| financial
exploitation, and (iii) "financial exploitation" |
|
|
|
09500SB0229sam001 |
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LRB095 07909 AJO 31692 a |
|
| 1 |
| means tortious or illegal use
of the assets or resources of
| 2 |
| an elderly or disabled person, and includes, without | 3 |
| limitation,
misappropriation of the elderly or
disabled | 4 |
| person's assets or resources by undue influence, breach of | 5 |
| fiduciary
relationship, intimidation,
fraud, deception, | 6 |
| extortion, or the use of assets or resources in any manner
| 7 |
| contrary to law. A savings
bank or person furnishing | 8 |
| information pursuant to this item (13) shall be
entitled to | 9 |
| the same rights and
protections as a person furnishing | 10 |
| information under the Elder Abuse and
Neglect Act, the | 11 |
| Illinois
Domestic Violence Act of 1986, and the Abuse of | 12 |
| Adults with Disabilities Intervention Act.
| 13 |
| (14) The disclosure of financial records or | 14 |
| information as necessary to
effect, administer, or enforce | 15 |
| a transaction requested or authorized by the
member or | 16 |
| holder of capital, or in connection with:
| 17 |
| (A) servicing or processing a financial product or | 18 |
| service requested or
authorized by the member or holder | 19 |
| of capital;
| 20 |
| (B) maintaining or servicing an account of a member | 21 |
| or holder of capital
with the savings bank; or
| 22 |
| (C) a proposed or actual securitization or | 23 |
| secondary market sale
(including sales of servicing | 24 |
| rights) related to a
transaction of a member or holder | 25 |
| of capital.
| 26 |
| Nothing in this item (14), however, authorizes the sale |
|
|
|
09500SB0229sam001 |
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LRB095 07909 AJO 31692 a |
|
| 1 |
| of the financial
records or information of a member or | 2 |
| holder of capital without the consent of
the member or | 3 |
| holder of capital.
| 4 |
| (15) The exchange in the regular course of business of | 5 |
| information between
a
savings bank and any commonly owned | 6 |
| affiliate of the savings bank, subject to
the provisions of | 7 |
| the Financial Institutions Insurance Sales Law.
| 8 |
| (16) The disclosure of financial records or | 9 |
| information as necessary to
protect against or prevent | 10 |
| actual or potential fraud, unauthorized
transactions, | 11 |
| claims, or other liability.
| 12 |
| (17)(a) The disclosure of financial records or | 13 |
| information
related to a private label credit program | 14 |
| between a financial
institution and a private label party | 15 |
| in connection
with that private label credit program. Such | 16 |
| information
is limited to outstanding balance, available | 17 |
| credit, payment and
performance and account history, | 18 |
| product references, purchase
information,
and information | 19 |
| related to the identity of the
customer.
| 20 |
| (b)(l) For purposes of this paragraph (17) of | 21 |
| subsection
(c) of Section 4013, a "private label credit | 22 |
| program" means a
credit program involving a financial | 23 |
| institution and a private label
party that is used by a | 24 |
| customer of the financial institution and the
private label | 25 |
| party primarily for payment for goods or services
sold, | 26 |
| manufactured, or distributed by a private label party.
|
|
|
|
09500SB0229sam001 |
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LRB095 07909 AJO 31692 a |
|
| 1 |
| (2) For purposes of this paragraph (17) of subsection | 2 |
| (c)
of Section 4013, a "private label party" means, with | 3 |
| respect to a
private label credit program, any of the | 4 |
| following: a
retailer, a merchant, a manufacturer, a trade | 5 |
| group,
or any such person's affiliate, subsidiary, member,
| 6 |
| agent, or service provider.
| 7 |
| (d) A savings bank may not disclose to any person, except | 8 |
| to the member
or holder of capital or his duly authorized | 9 |
| agent, any financial records
relating to that member or | 10 |
| shareholder of the savings bank unless:
| 11 |
| (1) the member or shareholder has authorized | 12 |
| disclosure to the person; or
| 13 |
| (2) the financial records are disclosed in response to | 14 |
| a lawful
subpoena, summons, warrant, citation to discover | 15 |
| assets, or court order that meets the requirements of
| 16 |
| subsection (e) of this Section.
| 17 |
| (e) A savings bank shall disclose financial records under | 18 |
| subsection (d)
of this Section pursuant to a lawful subpoena, | 19 |
| summons, warrant, citation to discover assets, or court
order | 20 |
| only after the savings bank mails a copy of the subpoena, | 21 |
| summons,
warrant, citation to discover assets, or court order | 22 |
| to the person establishing the relationship with
the savings | 23 |
| bank, if living, and otherwise, his personal representative, if
| 24 |
| known, at his last known address by first class mail, postage | 25 |
| prepaid,
unless the savings bank is specifically prohibited | 26 |
| from notifying the
person by order of court.
|
|
|
|
09500SB0229sam001 |
- 25 - |
LRB095 07909 AJO 31692 a |
|
| 1 |
| (f) Any officer or employee of a savings bank who knowingly | 2 |
| and
willfully furnishes financial records in violation of this | 3 |
| Section is
guilty of a business offense and, upon conviction, | 4 |
| shall be fined not
more than $1,000.
| 5 |
| (g) Any person who knowingly and willfully induces or | 6 |
| attempts to
induce any officer or employee of a savings bank to | 7 |
| disclose financial
records in violation of this Section is | 8 |
| guilty of a business offense and,
upon conviction, shall be | 9 |
| fined not more than $1,000.
| 10 |
| (h) If any member or shareholder desires to communicate | 11 |
| with the other
members or shareholders of the savings bank with | 12 |
| reference to any question
pending or to be presented at an | 13 |
| annual or special meeting, the savings
bank shall give that | 14 |
| person, upon request, a statement of the approximate
number of | 15 |
| members or shareholders entitled to vote at the meeting and an
| 16 |
| estimate of the cost of preparing and mailing the | 17 |
| communication. The
requesting member shall submit the | 18 |
| communication to the Commissioner
who, upon finding it to be | 19 |
| appropriate and truthful, shall direct that it
be prepared and | 20 |
| mailed to the members upon the requesting member's or
| 21 |
| shareholder's payment or adequate provision for payment of the | 22 |
| expenses of
preparation and mailing.
| 23 |
| (i) A savings bank shall be reimbursed for costs that are | 24 |
| necessary and
that have been directly incurred in searching | 25 |
| for, reproducing, or
transporting books, papers, records, or | 26 |
| other data of a customer required
to be reproduced pursuant to |
|
|
|
09500SB0229sam001 |
- 26 - |
LRB095 07909 AJO 31692 a |
|
| 1 |
| a lawful subpoena, warrant, citation to discover assets, or | 2 |
| court order.
| 3 |
| (j) Notwithstanding the provisions of this Section, a | 4 |
| savings bank may
sell or otherwise make use of lists of | 5 |
| customers' names and addresses. All
other information | 6 |
| regarding a customer's account are subject to the
disclosure | 7 |
| provisions of this Section. At the request of any customer,
| 8 |
| that customer's name and address shall be deleted from any list | 9 |
| that is to
be sold or used in any other manner beyond | 10 |
| identification of the customer's
accounts.
| 11 |
| (Source: P.A. 93-271, eff. 7-22-03; 94-495, eff. 8-8-05; | 12 |
| 94-851, eff. 6-13-06.)
| 13 |
| Section 3.5. The Illinois Credit Union Act is amended by | 14 |
| changing Section 10 as follows:
| 15 |
| (205 ILCS 305/10) (from Ch. 17, par. 4411)
| 16 |
| Sec. 10. Credit union records; member financial records.
| 17 |
| (1) A credit union shall establish and maintain books, | 18 |
| records, accounting
systems and procedures which accurately | 19 |
| reflect its operations and which
enable the Department to | 20 |
| readily ascertain the true financial condition
of the credit | 21 |
| union and whether it is complying with this Act.
| 22 |
| (2) A photostatic or photographic reproduction of any | 23 |
| credit union records
shall be admissible as evidence of | 24 |
| transactions with the credit union.
|
|
|
|
09500SB0229sam001 |
- 27 - |
LRB095 07909 AJO 31692 a |
|
| 1 |
| (3)(a) For the purpose of this Section, the term "financial | 2 |
| records"
means any original, any copy, or any summary of (1) a | 3 |
| document granting
signature authority over an account, (2) a | 4 |
| statement, ledger card or other
record on any account which | 5 |
| shows each transaction in or with respect to
that account, (3) | 6 |
| a check, draft or money order drawn on a financial
institution | 7 |
| or other entity or issued and payable by or through a financial
| 8 |
| institution or other entity, or (4) any other item containing | 9 |
| information
pertaining to any relationship established in the | 10 |
| ordinary course of
business between a credit union and its | 11 |
| member, including financial
statements or other financial | 12 |
| information provided by the member.
| 13 |
| (b) This Section does not prohibit:
| 14 |
| (1) The preparation, examination, handling or | 15 |
| maintenance of any
financial records by any officer, | 16 |
| employee or agent of a credit union
having custody of such | 17 |
| records, or the examination of such records by a
certified | 18 |
| public accountant engaged by the credit union to perform an
| 19 |
| independent audit.
| 20 |
| (2) The examination of any financial records by or the | 21 |
| furnishing of
financial records by a credit union to any | 22 |
| officer, employee or agent of
the Department, the National | 23 |
| Credit Union Administration, Federal Reserve
board or any | 24 |
| insurer of share accounts for use solely in the exercise of
| 25 |
| his duties as an officer, employee or agent.
| 26 |
| (3) The publication of data furnished from financial |
|
|
|
09500SB0229sam001 |
- 28 - |
LRB095 07909 AJO 31692 a |
|
| 1 |
| records relating
to members where the data cannot be | 2 |
| identified to any particular customer
of account.
| 3 |
| (4) The making of reports or returns required under | 4 |
| Chapter 61 of the
Internal Revenue Code of 1954.
| 5 |
| (5) Furnishing information concerning the dishonor of | 6 |
| any negotiable
instrument permitted to be disclosed under | 7 |
| the Uniform Commercial
Code.
| 8 |
| (6) The exchange in the regular course of business
of | 9 |
| (i) credit information
between a credit union and other | 10 |
| credit unions or financial institutions
or commercial | 11 |
| enterprises, directly or through a consumer reporting | 12 |
| agency
or (ii) financial records or information derived | 13 |
| from financial records
between a credit union and other | 14 |
| credit unions or financial institutions or
commercial | 15 |
| enterprises for
the purpose of conducting due diligence | 16 |
| pursuant to a merger or a purchase or
sale of assets or | 17 |
| liabilities of the credit union.
| 18 |
| (7) The furnishing of information to the appropriate | 19 |
| law enforcement
authorities where the credit union | 20 |
| reasonably believes it has been the victim
of a crime.
| 21 |
| (8) The furnishing of information pursuant to the | 22 |
| Uniform Disposition
of Unclaimed Property Act.
| 23 |
| (9) The furnishing of information pursuant to the | 24 |
| Illinois Income Tax
Act and the Illinois Estate and | 25 |
| Generation-Skipping Transfer Tax Act.
| 26 |
| (10) The furnishing of information pursuant to the |
|
|
|
09500SB0229sam001 |
- 29 - |
LRB095 07909 AJO 31692 a |
|
| 1 |
| federal "Currency
and Foreign Transactions Reporting Act", | 2 |
| Title 31, United States Code,
Section 1051 et sequentia.
| 3 |
| (11) The furnishing of information pursuant to any | 4 |
| other statute which
by its terms or by regulations | 5 |
| promulgated thereunder requires the disclosure
of | 6 |
| financial records other than by subpoena, summons, warrant | 7 |
| or court order.
| 8 |
| (12) The furnishing of information in accordance with | 9 |
| the federal
Personal Responsibility and Work Opportunity | 10 |
| Reconciliation Act of 1996.
Any credit union governed by | 11 |
| this Act shall enter into an agreement for data
exchanges | 12 |
| with a State agency provided the State agency
pays to the | 13 |
| credit union a reasonable fee not to exceed its
actual cost | 14 |
| incurred. A credit union
providing
information in | 15 |
| accordance with this item shall not be liable to any | 16 |
| account
holder or other person for any disclosure of | 17 |
| information to a State agency, for
encumbering or | 18 |
| surrendering any assets held by the credit union in | 19 |
| response to
a lien
or order to withhold and deliver issued | 20 |
| by a State agency, or for any other
action taken pursuant | 21 |
| to this item, including individual or mechanical errors,
| 22 |
| provided the action does not constitute gross negligence or | 23 |
| willful misconduct.
A credit union shall have no obligation | 24 |
| to hold, encumber, or surrender
assets until
it has been | 25 |
| served with a subpoena, summons, warrant, court or | 26 |
| administrative
order, lien, or levy.
|
|
|
|
09500SB0229sam001 |
- 30 - |
LRB095 07909 AJO 31692 a |
|
| 1 |
| (13) The furnishing of information to law enforcement | 2 |
| authorities, the
Illinois Department on
Aging and its | 3 |
| regional administrative and provider agencies, the | 4 |
| Department of
Human Services Office
of Inspector General, | 5 |
| or public guardians: (i) upon subpoena by the investigatory | 6 |
| entity or the guardian, or (ii) if there is suspicion by | 7 |
| the credit union that a
member who is an elderly or
| 8 |
| disabled person has been or may become the victim of | 9 |
| financial exploitation.
For the purposes of this
item (13), | 10 |
| the term: (i) "elderly person" means a person who is 60 or | 11 |
| more
years of age, (ii) "disabled
person" means a person | 12 |
| who has or reasonably appears to the credit union to
have a | 13 |
| physical or mental
disability that impairs his or her | 14 |
| ability to seek or obtain protection from or
prevent | 15 |
| financial
exploitation, and (iii) "financial exploitation" | 16 |
| means tortious or illegal use
of the assets or resources of
| 17 |
| an elderly or disabled person, and includes, without | 18 |
| limitation,
misappropriation of the elderly or
disabled | 19 |
| person's assets or resources by undue influence, breach of | 20 |
| fiduciary
relationship, intimidation,
fraud, deception, | 21 |
| extortion, or the use of assets or resources in any manner
| 22 |
| contrary to law. A credit
union or person furnishing | 23 |
| information pursuant to this item (13) shall be
entitled to | 24 |
| the same rights and
protections as a person furnishing | 25 |
| information under the Elder Abuse and
Neglect Act, the | 26 |
| Illinois
Domestic Violence Act of 1986, and the Abuse of |
|
|
|
09500SB0229sam001 |
- 31 - |
LRB095 07909 AJO 31692 a |
|
| 1 |
| Adults with Disabilities Intervention Act.
| 2 |
| (14) The disclosure of financial records or | 3 |
| information as necessary
to
effect, administer, or enforce | 4 |
| a transaction requested or authorized by the
member, or in | 5 |
| connection with:
| 6 |
| (A) servicing or processing a financial product or | 7 |
| service requested
or
authorized by the member;
| 8 |
| (B) maintaining or servicing a member's account | 9 |
| with the credit union;
or
| 10 |
| (C) a proposed or actual securitization or | 11 |
| secondary market sale
(including sales of servicing | 12 |
| rights) related to a
transaction of a member.
| 13 |
| Nothing in this item (14), however, authorizes the sale | 14 |
| of the financial
records or information of a member without | 15 |
| the consent of the member.
| 16 |
| (15) The disclosure of financial records or | 17 |
| information as necessary to
protect against or prevent | 18 |
| actual or potential fraud, unauthorized
transactions, | 19 |
| claims, or other liability.
| 20 |
| (16)(a) The disclosure of financial records or | 21 |
| information
related to a private label credit program | 22 |
| between a financial
institution and a private label party | 23 |
| in connection
with that private label credit program. Such | 24 |
| information
is limited to outstanding balance, available | 25 |
| credit, payment and
performance and account history, | 26 |
| product references, purchase
information,
and information |
|
|
|
09500SB0229sam001 |
- 32 - |
LRB095 07909 AJO 31692 a |
|
| 1 |
| related to the identity of the
customer.
| 2 |
| (b)(l) For purposes of this paragraph (16) of | 3 |
| subsection
(b) of Section 10, a "private label credit | 4 |
| program" means a credit
program involving a financial | 5 |
| institution and a private label party
that is used by a | 6 |
| customer of the financial institution and the
private label | 7 |
| party primarily for payment for goods or services
sold, | 8 |
| manufactured, or distributed by a private label party.
| 9 |
| (2) For purposes of this paragraph (16) of subsection | 10 |
| (b)
of Section 10, a "private label party" means, with | 11 |
| respect to a
private label credit program, any of the | 12 |
| following: a
retailer, a merchant, a manufacturer, a trade | 13 |
| group,
or any such person's affiliate, subsidiary, member,
| 14 |
| agent, or service provider.
| 15 |
| (c) Except as otherwise provided by this Act, a credit | 16 |
| union may not
disclose to any person, except to the member
or | 17 |
| his duly authorized agent, any financial records relating to | 18 |
| that member
of the credit union unless:
| 19 |
| (1) the member has authorized disclosure to the person;
| 20 |
| (2) the financial records are disclosed in response to | 21 |
| a lawful
subpoena,
summons, warrant , citation to discover | 22 |
| assets, or court order that meets the requirements of | 23 |
| subparagraph
(d) of this Section; or
| 24 |
| (3) the credit union is attempting to collect an | 25 |
| obligation owed to
the credit union and the credit union | 26 |
| complies with the provisions of
Section 2I of the Consumer |
|
|
|
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| 1 |
| Fraud and Deceptive Business Practices Act.
| 2 |
| (d) A credit union shall disclose financial records under | 3 |
| subparagraph
(c)(2) of this Section pursuant to a lawful | 4 |
| subpoena, summons, warrant , citation to discover assets, or
| 5 |
| court order only after the credit union mails a copy of the | 6 |
| subpoena, summons,
warrant , citation to discover assets, or | 7 |
| court order to the person establishing the relationship with
| 8 |
| the credit union, if living, and otherwise his personal | 9 |
| representative,
if known, at his last known address by first | 10 |
| class mail, postage prepaid
unless the credit union is | 11 |
| specifically prohibited from notifying the person
by order of | 12 |
| court or by applicable State or federal law. In the case
of a | 13 |
| grand jury subpoena, a credit union shall not mail a copy of a | 14 |
| subpoena
to any person pursuant to this subsection if the | 15 |
| subpoena was issued by a grand
jury under the Statewide Grand | 16 |
| Jury Act or notifying the
person would constitute a violation | 17 |
| of the federal Right to Financial
Privacy Act of 1978.
| 18 |
| (e)(1) Any officer or employee of a credit union who | 19 |
| knowingly and
wilfully furnishes financial records in | 20 |
| violation of this Section is guilty of
a business offense and | 21 |
| upon conviction thereof shall be fined not more than
$1,000.
| 22 |
| (2) Any person who knowingly and wilfully induces or | 23 |
| attempts to induce
any officer or employee of a credit union to | 24 |
| disclose financial records
in violation of this Section is | 25 |
| guilty of a business offense and upon
conviction thereof shall | 26 |
| be fined not more than $1,000.
|
|
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LRB095 07909 AJO 31692 a |
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| 1 |
| (f) A credit union shall be reimbursed for costs which are | 2 |
| reasonably
necessary and which have been directly incurred in | 3 |
| searching for,
reproducing or transporting books, papers, | 4 |
| records or other data of a
member required or requested to be | 5 |
| produced pursuant to a lawful subpoena,
summons, warrant , | 6 |
| citation to discover assets, or court order. The Director may | 7 |
| determine, by rule, the
rates and
conditions under which | 8 |
| payment shall be made. Delivery of requested documents
may be | 9 |
| delayed until final reimbursement of all costs is received.
| 10 |
| (Source: P.A. 94-495, eff. 8-8-05; 94-851, eff. 6-13-06.)"; and
| 11 |
| on page 21, immediately below line 24, by inserting the | 12 |
| following: | 13 |
| "Section 10. The Limited Liability Company Act is amended | 14 |
| by changing Section 30-20 as follows:
| 15 |
| (805 ILCS 180/30-20)
| 16 |
| Sec. 30-20. Rights of creditor.
| 17 |
| (a) On application by a judgment creditor of a member of a | 18 |
| limited
liability
company or of a member's transferee, a court | 19 |
| having
jurisdiction may charge the distributional interest of | 20 |
| the judgment debtor to
satisfy the judgment. The court may | 21 |
| appoint a receiver of the share of
the distributions due or to | 22 |
| become due to the judgment debtor and make all
other orders, | 23 |
| directions, accounts, and inquiries the judgment debtor
might |
|
|
|
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|
| 1 |
| have made or which the circumstances may require to give effect | 2 |
| to the
charging order.
| 3 |
| (b) A charging order constitutes a lien on the judgment | 4 |
| debtor's
distributional interest. The court may order a | 5 |
| foreclosure of a lien on a
distributional interest subject to | 6 |
| the charging order at any time. A purchaser
at the foreclosure | 7 |
| sale has the rights of a transferee.
| 8 |
| (c) at any time before foreclosure, a distributional | 9 |
| interest in a limited
liability company that is charged may be | 10 |
| redeemed:
| 11 |
| (1) by the judgment debtor;
| 12 |
| (2) with property other than the company's property, by | 13 |
| one or more of the
other members; or
| 14 |
| (3) with the company's property, but only if permitted | 15 |
| by the operating
agreement.
| 16 |
| (d) This Act does not affect a member's right under | 17 |
| exemption laws with
respect to the member's distributional | 18 |
| interest in a limited
liability company.
| 19 |
| (e) (Blank.)
This Section provides the exclusive remedy by | 20 |
| which a judgment creditor
of a member or a transferee may | 21 |
| satisfy a judgment out of the judgment
debtor's distributional | 22 |
| interest in a limited liability company.
| 23 |
| (Source: P.A. 90-424, eff. 1-1-98.)".
|
|