SB3971sam001 102ND GENERAL ASSEMBLY

Sen. Laura M. Murphy

Filed: 2/18/2022

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 3971

2    AMENDMENT NO. ______. Amend Senate Bill 3971 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Illinois Banking Act is amended by
5changing Sections 48.1 and 48.6 as follows:
 
6    (205 ILCS 5/48.1)  (from Ch. 17, par. 360)
7    Sec. 48.1. Customer financial records; confidentiality.
8    (a) For the purpose of this Section, the term "financial
9records" 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
14    with respect to that account;
15        (3) a check, draft or money order drawn on a bank or
16    issued and payable by a bank; or

 

 

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

 

 

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1    Chapter 61 of the Internal Revenue Code of 1986.
2        (5) Furnishing information concerning the dishonor of
3    any negotiable instrument permitted to be disclosed under
4    the Uniform Commercial Code.
5        (6) The exchange in the regular course of business of
6    (i) credit information between a bank and other banks or
7    financial institutions or commercial enterprises, directly
8    or through a consumer reporting agency or (ii) financial
9    records or information derived from financial records
10    between a bank and other banks or financial institutions
11    or commercial enterprises for the purpose of conducting
12    due diligence pursuant to a purchase or sale involving the
13    bank or assets or liabilities of the bank.
14        (7) The furnishing of information to the appropriate
15    law enforcement authorities where the bank reasonably
16    believes it has been the victim of a crime.
17        (8) The furnishing of information under the Revised
18    Uniform Unclaimed Property Act.
19        (9) The furnishing of information under the Illinois
20    Income Tax Act and the Illinois Estate and
21    Generation-Skipping Transfer Tax Act.
22        (10) The furnishing of information under the federal
23    Currency and Foreign Transactions Reporting Act Title 31,
24    United States Code, Section 1051 et seq.
25        (11) The furnishing of information under any other
26    statute that by its terms or by regulations promulgated

 

 

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

 

 

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1    served with a subpoena, summons, warrant, court or
2    administrative order, lien, or levy.
3        (15) The exchange in the regular course of business of
4    information between a bank and any commonly owned
5    affiliate of the bank, subject to the provisions of the
6    Financial Institutions Insurance Sales Law.
7        (16) The furnishing of information to law enforcement
8    authorities, the Illinois Department on Aging and its
9    regional administrative and provider agencies, the
10    Department of Human Services Office of Inspector General,
11    or public guardians: (i) upon subpoena by the
12    investigatory entity or the guardian, or (ii) if there is
13    suspicion by the bank that a customer who is an elderly
14    person or person with a disability has been or may become
15    the victim of financial exploitation. For the purposes of
16    this item (16), the term: (i) "elderly person" means a
17    person who is 60 or more years of age, (ii) "disabled
18    person" means a person who has or reasonably appears to
19    the bank to have a physical or mental disability that
20    impairs his or her ability to seek or obtain protection
21    from or prevent financial exploitation, and (iii)
22    "financial exploitation" means tortious or illegal use of
23    the assets or resources of an elderly or disabled person,
24    and includes, without limitation, misappropriation of the
25    elderly or disabled person's assets or resources by undue
26    influence, breach of fiduciary relationship, intimidation,

 

 

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

 

 

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1    between a financial institution and a private label party
2    in connection with that private label credit program. Such
3    information is limited to outstanding balance, available
4    credit, payment and performance and account history,
5    product references, purchase information, and information
6    related to the identity of the customer.
7        (B)(1) For purposes of this paragraph (19) of
8    subsection (b) of Section 48.1, a "private label credit
9    program" means a credit program involving a financial
10    institution and a private label party that is used by a
11    customer of the financial institution and the private
12    label party primarily for payment for goods or services
13    sold, manufactured, or distributed by a private label
14    party.
15        (2) For purposes of this paragraph (19) of subsection
16    (b) of Section 48.1, a "private label party" means, with
17    respect to a private label credit program, any of the
18    following: a retailer, a merchant, a manufacturer, a trade
19    group, or any such person's affiliate, subsidiary, member,
20    agent, or service provider.
21        (20)(A) The furnishing of financial records of a
22    customer to the Department to aid the Department's initial
23    determination or subsequent re-determination of the
24    customer's eligibility for Medicaid and Medicaid long-term
25    care benefits for long-term care services, provided that
26    the bank receives the written consent and authorization of

 

 

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1    the customer, which shall:
2            (1) have the customer's signature notarized;
3            (2) be signed by at least one witness who
4        certifies that he or she believes the customer to be of
5        sound mind and memory;
6            (3) be tendered to the bank at the earliest
7        practicable time following its execution,
8        certification, and notarization;
9            (4) specifically limit the disclosure of the
10        customer's financial records to the Department; and
11            (5) be in substantially the following form:
 
12
CUSTOMER CONSENT AND AUTHORIZATION
13
FOR RELEASE OF FINANCIAL RECORDS

 
14I, ......................................., hereby authorize 
15       (Name of Customer) 
 
16............................................................. 
17(Name of Financial Institution)
 
18............................................................. 
19(Address of Financial Institution)
 
20to disclose the following financial records:
 

 

 

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1any and all information concerning my deposit, savings, money
2market, certificate of deposit, individual retirement,
3retirement plan, 401(k) plan, incentive plan, employee benefit
4plan, mutual fund and loan accounts (including, but not
5limited to, any indebtedness or obligation for which I am a
6co-borrower, co-obligor, guarantor, or surety), and any and
7all other accounts in which I have an interest and any other
8information regarding me in the possession of the Financial
9Institution,
 
10to the Illinois Department of Human Services or the Illinois
11Department of Healthcare and Family Services, or both ("the
12Department"), for the following purpose(s):
 
13to aid in the initial determination or re-determination by the
14State of Illinois of my eligibility for Medicaid long-term
15care benefits, pursuant to applicable law.
 
16I understand that this Consent and Authorization may be
17revoked by me in writing at any time before my financial
18records, as described above, are disclosed, and that this
19Consent and Authorization is valid until the Financial
20Institution receives my written revocation. This Consent and
21Authorization shall constitute valid authorization for the
22Department identified above to inspect all such financial
23records set forth above, and to request and receive copies of

 

 

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1such financial records from the Financial Institution (subject
2to such records search and reproduction reimbursement policies
3as the Financial Institution may have in place). An executed
4copy of this Consent and Authorization shall be sufficient and
5as good as the original and permission is hereby granted to
6honor a photostatic or electronic copy of this Consent and
7Authorization. Disclosure is strictly limited to the
8Department identified above and no other person or entity
9shall receive my financial records pursuant to this Consent
10and Authorization. By signing this form, I agree to indemnify
11and hold the Financial Institution harmless from any and all
12claims, demands, and losses, including reasonable attorneys
13fees and expenses, arising from or incurred in its reliance on
14this Consent and Authorization. As used herein, "Customer"
15shall mean "Member" if the Financial Institution is a credit
16union.
 
17....................... ...................... 
18(Date)                  (Signature of Customer)             
 
19                         ...................... 
20                         ...................... 
21                         (Address of Customer) 
 
22                         ...................... 
23                         (Customer's birth date) 

 

 

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1                         (month/day/year) 
 
2The undersigned witness certifies that .................,
3known to me to be the same person whose name is subscribed as
4the customer to the foregoing Consent and Authorization,
5appeared before me and the notary public and acknowledged
6signing and delivering the instrument as his or her free and
7voluntary act for the uses and purposes therein set forth. I
8believe him or her to be of sound mind and memory. The
9undersigned witness also certifies that the witness is not an
10owner, operator, or relative of an owner or operator of a
11long-term care facility in which the customer is a patient or
12resident.
 
13Dated: ................. ...................... 
14                         (Signature of Witness) 
 
15                         ...................... 
16                         (Print Name of Witness) 
 
17                         ...................... 
18                         ...................... 
19                         (Address of Witness) 
 
20State of Illinois)
21                 ) ss.

 

 

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1County of .......)
 
2The undersigned, a notary public in and for the above county
3and state, certifies that .........., known to me to be the
4same person whose name is subscribed as the customer to the
5foregoing Consent and Authorization, appeared before me
6together with the witness, .........., in person and
7acknowledged signing and delivering the instrument as the free
8and voluntary act of the customer for the uses and purposes
9therein set forth.
 
10Dated:.......................................................
11Notary Public:...............................................
12My commission expires:.......................................
 
13        (B) In no event shall the bank distribute the
14    customer's financial records to the long-term care
15    facility from which the customer seeks initial or
16    continuing residency or long-term care services.
17        (C) A bank providing financial records of a customer
18    in good faith relying on a consent and authorization
19    executed and tendered in accordance with this paragraph
20    (20) shall not be liable to the customer or any other
21    person in relation to the bank's disclosure of the
22    customer's financial records to the Department. The
23    customer signing the consent and authorization shall

 

 

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1    indemnify and hold the bank harmless that relies in good
2    faith upon the consent and authorization and incurs a loss
3    because of such reliance. The bank recovering under this
4    indemnification provision shall also be entitled to
5    reasonable attorney's fees and the expenses of recovery.
6        (D) A bank shall be reimbursed by the customer for all
7    costs reasonably necessary and directly incurred in
8    searching for, reproducing, and disclosing a customer's
9    financial records required or requested to be produced
10    pursuant to any consent and authorization executed under
11    this paragraph (20). The requested financial records shall
12    be delivered to the Department within 10 days after
13    receiving a properly executed consent and authorization or
14    at the earliest practicable time thereafter if the
15    requested records cannot be delivered within 10 days, but
16    delivery may be delayed until the final reimbursement of
17    all costs is received by the bank. The bank may honor a
18    photostatic or electronic copy of a properly executed
19    consent and authorization.
20        (E) Nothing in this paragraph (20) shall impair,
21    abridge, or abrogate the right of a customer to:
22            (1) directly disclose his or her financial records
23        to the Department or any other person; or
24            (2) authorize his or her attorney or duly
25        appointed agent to request and obtain the customer's
26        financial records and disclose those financial records

 

 

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1        to the Department.
2        (F) For purposes of this paragraph (20), "Department"
3    means the Department of Human Services and the Department
4    of Healthcare and Family Services or any successor
5    administrative agency of either agency.
6    (c) Except as otherwise provided by this Act, a bank may
7not disclose to any person, except to the customer or his duly
8authorized agent, any financial records or financial
9information obtained from financial records relating to that
10customer of that bank unless:
11        (1) the customer has authorized disclosure to the
12    person;
13        (2) the financial records are disclosed in response to
14    a lawful subpoena, summons, warrant, citation to discover
15    assets, or court order which meets the requirements of
16    subsection (d) of this Section; or
17        (3) the bank is attempting to collect an obligation
18    owed to the bank and the bank complies with the provisions
19    of Section 2I of the Consumer Fraud and Deceptive Business
20    Practices Act.
21    (d) A bank shall disclose financial records under
22paragraph (2) of subsection (c) of this Section under a lawful
23subpoena, summons, warrant, citation to discover assets, or
24court order only after the bank sends mails a copy of the
25subpoena, summons, warrant, citation to discover assets, or
26court order to the person establishing the relationship with

 

 

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1the bank, if living, and, otherwise the person's his personal
2representative, if known, at the person's his last known
3address by first class mail, postage prepaid, through a
4third-party commercial carrier or courier with delivery charge
5fully prepaid, by hand delivery, or by electronic delivery at
6an email address on file with the bank (if the person
7establishing the relationship with the bank has consented to
8receive electronic delivery and, if the person establishing
9the relationship with the bank is a consumer, the person has
10consented under the consumer consent provisions set forth in
11Section 7001 of Title 15 of the United States Code), unless the
12bank is specifically prohibited from notifying the person by
13order of court or by applicable State or federal law. A bank
14shall not mail a copy of a subpoena to any person pursuant to
15this subsection if the subpoena was issued by a grand jury
16under the Statewide Grand Jury Act.
17    (e) Any officer or employee of a bank who knowingly and
18willfully furnishes financial records in violation of this
19Section is guilty of a business offense and, upon conviction,
20shall be fined not more than $1,000.
21    (f) Any person who knowingly and willfully induces or
22attempts to induce any officer or employee of a bank to
23disclose financial records in violation of this Section is
24guilty of a business offense and, upon conviction, shall be
25fined not more than $1,000.
26    (g) A bank shall be reimbursed for costs that are

 

 

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1reasonably necessary and that have been directly incurred in
2searching for, reproducing, or transporting books, papers,
3records, or other data required or requested to be produced
4pursuant to a lawful subpoena, summons, warrant, citation to
5discover assets, or court order. The Commissioner shall
6determine the rates and conditions under which payment may be
7made.
8(Source: P.A. 100-22, eff. 1-1-18; 100-664, eff. 1-1-19;
9100-888, eff. 8-14-18; 101-81, eff. 7-12-19.)
 
10    (205 ILCS 5/48.6)
11    Sec. 48.6. Retention of records.
12    (a) Each bank shall retain its records in a manner
13consistent with prudent business practices and in accordance
14with this Act and applicable State or federal laws, rules, and
15regulations. The record retention system utilized must be able
16to accurately produce such records.
17    (b) Except where a retention period is required by State
18or federal laws, rules, or regulations, a bank may destroy its
19records subject to the considerations set forth in subsection
20(a). In the destruction of records, the bank shall take
21reasonable precautions to ensure the confidentiality of
22information in the records.
23Unless a federal law requires otherwise, the Commissioner may
24by rule prescribe periods of time for which banks operating
25under this Act must retain records and after the expiration of

 

 

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1which, the bank may destroy those records. No liability shall
2accrue against the bank, the Commissioner, or this State for
3the destruction of records according to rules of the
4Commissioner promulgated under the authority of this Section.
5In any cause or proceeding in which any records may be called
6in question or be demanded by any bank, a showing of the
7expiration of the period so prescribed shall be sufficient
8excuse for failure to produce them.
9(Source: P.A. 91-929, eff. 12-15-00.)
 
10    Section 10. The Savings Bank Act is amended by changing
11Sections 4013 and 9011 as follows:
 
12    (205 ILCS 205/4013)  (from Ch. 17, par. 7304-13)
13    Sec. 4013. Access to books and records; communication with
14members and shareholders.
15    (a) Every member or shareholder shall have the right to
16inspect books and records of the savings bank that pertain to
17his accounts. Otherwise, the right of inspection and
18examination of the books and records shall be limited as
19provided in this Act, and no other person shall have access to
20the books and records nor shall be entitled to a list of the
21members or shareholders.
22    (b) For the purpose of this Section, the term "financial
23records" means any original, any copy, or any summary of (1) a
24document granting signature authority over a deposit or

 

 

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1account; (2) a statement, ledger card, or other record on any
2deposit or account that shows each transaction in or with
3respect to that account; (3) a check, draft, or money order
4drawn on a savings bank or issued and payable by a savings
5bank; or (4) any other item containing information pertaining
6to any relationship established in the ordinary course of a
7savings bank's business between a savings bank and its
8customer, including financial statements or other financial
9information provided by the member or shareholder.
10    (c) This Section does not prohibit:
11        (1) The preparation, examination, handling, or
12    maintenance of any financial records by any officer,
13    employee, or agent of a savings bank having custody of
14    records or examination of records by a certified public
15    accountant engaged by the savings bank to perform an
16    independent audit.
17        (2) The examination of any financial records by, or
18    the furnishing of financial records by a savings bank to,
19    any officer, employee, or agent of the Commissioner of
20    Banks and Real Estate or the federal depository
21    institution regulator for use solely in the exercise of
22    his duties as an officer, employee, or agent.
23        (3) The publication of data furnished from financial
24    records relating to members or holders of capital where
25    the data cannot be identified to any particular member,
26    shareholder, or account.

 

 

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1        (4) The making of reports or returns required under
2    Chapter 61 of the Internal Revenue Code of 1986.
3        (5) Furnishing information concerning the dishonor of
4    any negotiable instrument permitted to be disclosed under
5    the Uniform Commercial Code.
6        (6) The exchange in the regular course of business of
7    (i) credit information between a savings bank and other
8    savings banks or financial institutions or commercial
9    enterprises, directly or through a consumer reporting
10    agency or (ii) financial records or information derived
11    from financial records between a savings bank and other
12    savings banks or financial institutions or commercial
13    enterprises for the purpose of conducting due diligence
14    pursuant to a purchase or sale involving the savings bank
15    or assets or liabilities of the savings bank.
16        (7) The furnishing of information to the appropriate
17    law enforcement authorities where the savings bank
18    reasonably believes it has been the victim of a crime.
19        (8) The furnishing of information pursuant to the
20    Revised Uniform Unclaimed Property Act.
21        (9) The furnishing of information pursuant to the
22    Illinois Income Tax Act and the Illinois Estate and
23    Generation-Skipping Transfer Tax Act.
24        (10) The furnishing of information pursuant to the
25    federal Currency and Foreign Transactions Reporting Act,
26    (Title 31, United States Code, Section 1051 et seq.).

 

 

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

 

 

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

 

 

10200SB3971sam001- 22 -LRB102 24625 BMS 36628 a

1        (14) The disclosure of financial records or
2    information as necessary to effect, administer, or enforce
3    a transaction requested or authorized by the member or
4    holder of capital, or in connection with:
5            (A) servicing or processing a financial product or
6        service requested or authorized by the member or
7        holder of capital;
8            (B) maintaining or servicing an account of a
9        member or holder of capital with the savings bank; 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 or holder
13        of capital.
14        Nothing in this item (14), however, authorizes the
15    sale of the financial records or information of a member
16    or holder of capital without the consent of the member or
17    holder of capital.
18        (15) The exchange in the regular course of business of
19    information between a savings bank and any commonly owned
20    affiliate of the savings bank, subject to the provisions
21    of the Financial Institutions Insurance Sales Law.
22        (16) The disclosure of financial records or
23    information as necessary to protect against or prevent
24    actual or potential fraud, unauthorized transactions,
25    claims, or other liability.
26        (17)(a) The disclosure of financial records or

 

 

10200SB3971sam001- 23 -LRB102 24625 BMS 36628 a

1    information related to a private label credit program
2    between a financial institution and a private label party
3    in connection with that private label credit program. Such
4    information is limited to outstanding balance, available
5    credit, payment and performance and account history,
6    product references, purchase information, and information
7    related to the identity of the customer.
8        (b)(1) For purposes of this paragraph (17) of
9    subsection (c) of Section 4013, a "private label credit
10    program" means a credit program involving a financial
11    institution and a private label party that is used by a
12    customer of the financial institution and the private
13    label party primarily for payment for goods or services
14    sold, manufactured, or distributed by a private label
15    party.
16        (2) For purposes of this paragraph (17) of subsection
17    (c) of Section 4013, a "private label party" means, with
18    respect to a private label credit program, any of the
19    following: a retailer, a merchant, a manufacturer, a trade
20    group, or any such person's affiliate, subsidiary, member,
21    agent, or service provider.
22        (18)(a) The furnishing of financial records of a
23    customer to the Department to aid the Department's initial
24    determination or subsequent re-determination of the
25    customer's eligibility for Medicaid and Medicaid long-term
26    care benefits for long-term care services, provided that

 

 

10200SB3971sam001- 24 -LRB102 24625 BMS 36628 a

1    the savings bank receives the written consent and
2    authorization of the customer, which shall:
3            (1) have the customer's signature notarized;
4            (2) be signed by at least one witness who
5        certifies that he or she believes the customer to be of
6        sound mind and memory;
7            (3) be tendered to the savings bank at the
8        earliest practicable time following its execution,
9        certification, and notarization;
10            (4) specifically limit the disclosure of the
11        customer's financial records to the Department; and
12            (5) be in substantially the following form:
 
13
CUSTOMER CONSENT AND AUTHORIZATION
14
FOR RELEASE OF FINANCIAL RECORDS

 
15I, ......................................., hereby authorize 
16       (Name of Customer) 
 
17............................................................. 
18(Name of Financial Institution)
 
19............................................................. 
20(Address of Financial Institution)
 
21to disclose the following financial records:
 

 

 

10200SB3971sam001- 25 -LRB102 24625 BMS 36628 a

1any and all information concerning my deposit, savings, money
2market, certificate of deposit, individual retirement,
3retirement plan, 401(k) plan, incentive plan, employee benefit
4plan, mutual fund and loan accounts (including, but not
5limited to, any indebtedness or obligation for which I am a
6co-borrower, co-obligor, guarantor, or surety), and any and
7all other accounts in which I have an interest and any other
8information regarding me in the possession of the Financial
9Institution,
 
10to the Illinois Department of Human Services or the Illinois
11Department of Healthcare and Family Services, or both ("the
12Department"), for the following purpose(s):
 
13to aid in the initial determination or re-determination by the
14State of Illinois of my eligibility for Medicaid long-term
15care benefits, pursuant to applicable law.
 
16I understand that this Consent and Authorization may be
17revoked by me in writing at any time before my financial
18records, as described above, are disclosed, and that this
19Consent and Authorization is valid until the Financial
20Institution receives my written revocation. This Consent and
21Authorization shall constitute valid authorization for the
22Department identified above to inspect all such financial

 

 

10200SB3971sam001- 26 -LRB102 24625 BMS 36628 a

1records set forth above, and to request and receive copies of
2such financial records from the Financial Institution (subject
3to such records search and reproduction reimbursement policies
4as the Financial Institution may have in place). An executed
5copy of this Consent and Authorization shall be sufficient and
6as good as the original and permission is hereby granted to
7honor a photostatic or electronic copy of this Consent and
8Authorization. Disclosure is strictly limited to the
9Department identified above and no other person or entity
10shall receive my financial records pursuant to this Consent
11and Authorization. By signing this form, I agree to indemnify
12and hold the Financial Institution harmless from any and all
13claims, demands, and losses, including reasonable attorneys
14fees and expenses, arising from or incurred in its reliance on
15this Consent and Authorization. As used herein, "Customer"
16shall mean "Member" if the Financial Institution is a credit
17union.
 
18....................... ...................... 
19(Date)                  (Signature of Customer)             
 
20                         ...................... 
21                         ...................... 
22                         (Address of Customer) 
 
23                         ...................... 

 

 

10200SB3971sam001- 27 -LRB102 24625 BMS 36628 a

1                         (Customer's birth date) 
2                         (month/day/year) 
 
3The undersigned witness certifies that .................,
4known to me to be the same person whose name is subscribed as
5the customer to the foregoing Consent and Authorization,
6appeared before me and the notary public and acknowledged
7signing and delivering the instrument as his or her free and
8voluntary act for the uses and purposes therein set forth. I
9believe him or her to be of sound mind and memory. The
10undersigned witness also certifies that the witness is not an
11owner, operator, or relative of an owner or operator of a
12long-term care facility in which the customer is a patient or
13resident.
 
14Dated: ................. ...................... 
15                         (Signature of Witness) 
 
16                         ...................... 
17                         (Print Name of Witness) 
 
18                         ...................... 
19                         ...................... 
20                         (Address of Witness) 
 
21State of Illinois)

 

 

10200SB3971sam001- 28 -LRB102 24625 BMS 36628 a

1                 ) ss.
2County of .......)
 
3The undersigned, a notary public in and for the above county
4and state, certifies that .........., known to me to be the
5same person whose name is subscribed as the customer to the
6foregoing Consent and Authorization, appeared before me
7together with the witness, .........., in person and
8acknowledged signing and delivering the instrument as the free
9and voluntary act of the customer for the uses and purposes
10therein set forth.
 
11Dated:.......................................................
12Notary Public:...............................................
13My commission expires:.......................................
 
14        (b) In no event shall the savings bank distribute the
15    customer's financial records to the long-term care
16    facility from which the customer seeks initial or
17    continuing residency or long-term care services.
18        (c) A savings bank providing financial records of a
19    customer in good faith relying on a consent and
20    authorization executed and tendered in accordance with
21    this paragraph (18) shall not be liable to the customer or
22    any other person in relation to the savings bank's
23    disclosure of the customer's financial records to the

 

 

10200SB3971sam001- 29 -LRB102 24625 BMS 36628 a

1    Department. The customer signing the consent and
2    authorization shall indemnify and hold the savings bank
3    harmless that relies in good faith upon the consent and
4    authorization and incurs a loss because of such reliance.
5    The savings bank recovering under this indemnification
6    provision shall also be entitled to reasonable attorney's
7    fees and the expenses of recovery.
8        (d) A savings bank shall be reimbursed by the customer
9    for all costs reasonably necessary and directly incurred
10    in searching for, reproducing, and disclosing a customer's
11    financial records required or requested to be produced
12    pursuant to any consent and authorization executed under
13    this paragraph (18). The requested financial records shall
14    be delivered to the Department within 10 days after
15    receiving a properly executed consent and authorization or
16    at the earliest practicable time thereafter if the
17    requested records cannot be delivered within 10 days, but
18    delivery may be delayed until the final reimbursement of
19    all costs is received by the savings bank. The savings
20    bank may honor a photostatic or electronic copy of a
21    properly executed consent and authorization.
22        (e) Nothing in this paragraph (18) shall impair,
23    abridge, or abrogate the right of a customer to:
24            (1) directly disclose his or her financial records
25        to the Department or any other person; or
26            (2) authorize his or her attorney or duly

 

 

10200SB3971sam001- 30 -LRB102 24625 BMS 36628 a

1        appointed agent to request and obtain the customer's
2        financial records and disclose those financial records
3        to the Department.
4        (f) For purposes of this paragraph (18), "Department"
5    means the Department of Human Services and the Department
6    of Healthcare and Family Services or any successor
7    administrative agency of either agency.
8    (d) A savings bank may not disclose to any person, except
9to the member or holder of capital or his duly authorized
10agent, any financial records relating to that member or
11shareholder of the savings bank unless:
12        (1) the member or shareholder has authorized
13    disclosure to the person; or
14        (2) the financial records are disclosed in response to
15    a lawful subpoena, summons, warrant, citation to discover
16    assets, or court order that meets the requirements of
17    subsection (e) of this Section.
18    (e) A savings bank shall disclose financial records under
19subsection (d) of this Section pursuant to a lawful subpoena,
20summons, warrant, citation to discover assets, or court order
21only after the savings bank sends mails a copy of the subpoena,
22summons, warrant, citation to discover assets, or court order
23to the person establishing the relationship with the savings
24bank, if living, and otherwise, the person's his personal
25representative, if known, at the person's his last known
26address by first class mail, postage prepaid, through a

 

 

10200SB3971sam001- 31 -LRB102 24625 BMS 36628 a

1third-party commercial carrier or courier with delivery charge
2fully prepaid, by hand delivery, or by electronic delivery at
3an email address on file with the savings bank (if the person
4establishing the relationship with the savings bank has
5consented to receive electronic delivery and, if the person
6establishing the relationship with the savings bank is a
7consumer, the person has consented under the consumer consent
8provisions set forth in Section 7001 of Title 15 of the United
9States Code), unless the savings bank is specifically
10prohibited from notifying the person by order of court.
11    (f) Any officer or employee of a savings bank who
12knowingly and willfully furnishes financial records in
13violation of this Section is guilty of a business offense and,
14upon conviction, shall be fined not more than $1,000.
15    (g) Any person who knowingly and willfully induces or
16attempts to induce any officer or employee of a savings bank to
17disclose financial records in violation of this Section is
18guilty of a business offense and, upon conviction, shall be
19fined not more than $1,000.
20    (h) If any member or shareholder desires to communicate
21with the other members or shareholders of the savings bank
22with reference to any question pending or to be presented at an
23annual or special meeting, the savings bank shall give that
24person, upon request, a statement of the approximate number of
25members or shareholders entitled to vote at the meeting and an
26estimate of the cost of preparing and mailing the

 

 

10200SB3971sam001- 32 -LRB102 24625 BMS 36628 a

1communication. The requesting member shall submit the
2communication to the Commissioner who, upon finding it to be
3appropriate and truthful, shall direct that it be prepared and
4mailed to the members upon the requesting member's or
5shareholder's payment or adequate provision for payment of the
6expenses of preparation and mailing.
7    (i) A savings bank shall be reimbursed for costs that are
8necessary and that have been directly incurred in searching
9for, reproducing, or transporting books, papers, records, or
10other data of a customer required to be reproduced pursuant to
11a lawful subpoena, warrant, citation to discover assets, or
12court order.
13    (j) Notwithstanding the provisions of this Section, a
14savings bank may sell or otherwise make use of lists of
15customers' names and addresses. All other information
16regarding a customer's account is subject to the disclosure
17provisions of this Section. At the request of any customer,
18that customer's name and address shall be deleted from any
19list that is to be sold or used in any other manner beyond
20identification of the customer's accounts.
21(Source: P.A. 99-143, eff. 7-27-15; 100-22, eff. 1-1-18;
22100-201, eff. 8-18-17; 100-664, eff. 1-1-19.)
 
23    (205 ILCS 205/9011)  (from Ch. 17, par. 7309-11)
24    Sec. 9011. Record keeping and retention of records by a
25savings bank.

 

 

10200SB3971sam001- 33 -LRB102 24625 BMS 36628 a

1    (a) Each savings bank shall retain its records in a manner
2consistent with prudent business practices and in accordance
3with this Act and applicable State or federal laws, rules, and
4regulations. The record retention system utilized must be able
5to accurately produce such records is required to maintain
6appropriate books and records, as required by the Secretary,
7that are in accordance with generally accepted accounting
8principles and the requirements of its insurer of accounts.
9All books and records shall be current, complete, organized,
10and accessible to the Secretary, the Secretary's agents and
11examiners, and to the savings bank's auditors and accountants.
12    (a-5) Except where a retention period is required by State
13or federal laws, rules, or regulations, a savings bank may
14destroy its records subject to the considerations set forth in
15subsection (a). In the destruction of records, the savings
16bank shall take reasonable precautions to ensure the
17confidentiality of information in the records.
18    (b) Each savings bank shall implement internal control and
19security measures for its data processing activities. A
20contract with a data processing service or for data processing
21services must provide that records maintained shall at all
22times be available for examination and audit by the Secretary.
23    (c) The Secretary may further regulate these matters by
24the promulgation of rules concerning data processing. As used
25herein, "data processing" means all electronic or automated
26systems of communication and data processing by computer.

 

 

10200SB3971sam001- 34 -LRB102 24625 BMS 36628 a

1    (d) Unless a federal law requires otherwise, the Secretary
2may by regulation prescribe periods of time for which savings
3banks operating under this Act must retain records and after
4the expiration of which, the savings bank may destroy those
5records. No liability shall accrue against the savings bank,
6the Secretary, or this State for destruction of records
7according to regulations of the Secretary promulgated under
8the authority of this Section. In any cause or proceeding in
9which any records may be called in question or be demanded by
10any savings bank, a showing of the expiration of the period so
11prescribed shall be sufficient excuse for failure to produce
12them.
13(Source: P.A. 97-492, eff. 1-1-12.)
 
14    Section 15. The Illinois Credit Union Act is amended by
15changing Sections 10 and 10.1 as follows:
 
16    (205 ILCS 305/10)  (from Ch. 17, par. 4411)
17    Sec. 10. Credit union records; member financial records.
18    (1) A credit union shall establish and maintain books,
19records, accounting systems and procedures which accurately
20reflect its operations and which enable the Department to
21readily ascertain the true financial condition of the credit
22union and whether it is complying with this Act.
23    (2) A photostatic or photographic reproduction of any
24credit union records shall be admissible as evidence of

 

 

10200SB3971sam001- 35 -LRB102 24625 BMS 36628 a

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

 

 

10200SB3971sam001- 36 -LRB102 24625 BMS 36628 a

1    of his duties as an officer, employee or agent.
2        (3) The publication of data furnished from financial
3    records relating to members where the data cannot be
4    identified to any particular customer of account.
5        (4) The making of reports or returns required under
6    Chapter 61 of the Internal Revenue Code of 1954.
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 a credit union and other
12    credit unions 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 a credit union and other
16    credit unions or financial institutions or commercial
17    enterprises for the purpose of conducting due diligence
18    pursuant to a merger or a purchase or sale of assets or
19    liabilities of the credit union.
20        (7) The furnishing of information to the appropriate
21    law enforcement authorities where the credit union
22    reasonably believes it has been the victim of a crime.
23        (8) The furnishing of information pursuant to the
24    Revised Uniform Unclaimed Property Act.
25        (9) The furnishing of information pursuant to the
26    Illinois Income Tax Act and the Illinois Estate and

 

 

10200SB3971sam001- 37 -LRB102 24625 BMS 36628 a

1    Generation-Skipping Transfer Tax Act.
2        (10) The furnishing of information pursuant to the
3    federal Currency and Foreign Transactions Reporting Act,
4    Title 31, United States Code, Section 1051 et sequentia.
5        (11) The furnishing of information pursuant to any
6    other statute which by its terms or by regulations
7    promulgated thereunder requires the disclosure of
8    financial records other than by subpoena, summons, warrant
9    or court order.
10        (12) The furnishing of information in accordance with
11    the federal Personal Responsibility and Work Opportunity
12    Reconciliation Act of 1996. Any credit union governed by
13    this Act shall enter into an agreement for data exchanges
14    with a State agency provided the State agency pays to the
15    credit union a reasonable fee not to exceed its actual
16    cost incurred. A credit union providing information in
17    accordance with this item shall not be liable to any
18    account holder or other person for any disclosure of
19    information to a State agency, for encumbering or
20    surrendering any assets held by the credit union in
21    response to a lien or order to withhold and deliver issued
22    by a State agency, or for any other action taken pursuant
23    to this item, including individual or mechanical errors,
24    provided the action does not constitute gross negligence
25    or willful misconduct. A credit union shall have no
26    obligation to hold, encumber, or surrender assets until it

 

 

10200SB3971sam001- 38 -LRB102 24625 BMS 36628 a

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

 

 

10200SB3971sam001- 39 -LRB102 24625 BMS 36628 a

1    to the same rights and protections as a person furnishing
2    information under the Adult Protective Services Act and
3    the Illinois Domestic Violence Act of 1986.
4        (14) The disclosure of financial records or
5    information as necessary to effect, administer, or enforce
6    a transaction requested or authorized by the member, or in
7    connection with:
8            (A) servicing or processing a financial product or
9        service requested or authorized by the member;
10            (B) maintaining or servicing a member's account
11        with the credit union; or
12            (C) a proposed or actual securitization or
13        secondary market sale (including sales of servicing
14        rights) related to a transaction of a member.
15        Nothing in this item (14), however, authorizes the
16    sale of the financial records or information of a member
17    without the consent of the member.
18        (15) 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        (16)(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. Such
26    information is limited to outstanding balance, available

 

 

10200SB3971sam001- 40 -LRB102 24625 BMS 36628 a

1    credit, payment and performance and account history,
2    product references, purchase information, and information
3    related to the identity of the customer.
4        (b)(1) For purposes of this item (16), "private label
5    credit program" means a credit program involving a
6    financial institution and a private label party that is
7    used by a customer of the financial institution and the
8    private label party primarily for payment for goods or
9    services sold, manufactured, or distributed by a private
10    label party.
11        (2) For purposes of this item (16), "private label
12    party" means, with respect to a private label credit
13    program, any of the following: a retailer, a merchant, a
14    manufacturer, a trade group, or any such person's
15    affiliate, subsidiary, member, agent, or service provider.
16        (17)(a) The furnishing of financial records of a
17    member to the Department to aid the Department's initial
18    determination or subsequent re-determination of the
19    member's eligibility for Medicaid and Medicaid long-term
20    care benefits for long-term care services, provided that
21    the credit union receives the written consent and
22    authorization of the member, which shall:
23            (1) have the member's signature notarized;
24            (2) be signed by at least one witness who
25        certifies that he or she believes the member to be of
26        sound mind and memory;

 

 

10200SB3971sam001- 41 -LRB102 24625 BMS 36628 a

1            (3) be tendered to the credit union at the
2        earliest practicable time following its execution,
3        certification, and notarization;
4            (4) specifically limit the disclosure of the
5        member's financial records to the Department; and
6            (5) be in substantially the following form:
 
7
CUSTOMER CONSENT AND AUTHORIZATION
8
FOR RELEASE OF FINANCIAL RECORDS

 
9I, ......................................., hereby authorize 
10       (Name of Customer) 
 
11............................................................. 
12(Name of Financial Institution)
 
13............................................................. 
14(Address of Financial Institution)
 
15to disclose the following financial records:
 
16any and all information concerning my deposit, savings, money
17market, certificate of deposit, individual retirement,
18retirement plan, 401(k) plan, incentive plan, employee benefit
19plan, mutual fund and loan accounts (including, but not
20limited to, any indebtedness or obligation for which I am a

 

 

10200SB3971sam001- 42 -LRB102 24625 BMS 36628 a

1co-borrower, co-obligor, guarantor, or surety), and any and
2all other accounts in which I have an interest and any other
3information regarding me in the possession of the Financial
4Institution,
 
5to the Illinois Department of Human Services or the Illinois
6Department of Healthcare and Family Services, or both ("the
7Department"), for the following purpose(s):
 
8to aid in the initial determination or re-determination by the
9State of Illinois of my eligibility for Medicaid long-term
10care benefits, pursuant to applicable law.
 
11I understand that this Consent and Authorization may be
12revoked by me in writing at any time before my financial
13records, as described above, are disclosed, and that this
14Consent and Authorization is valid until the Financial
15Institution receives my written revocation. This Consent and
16Authorization shall constitute valid authorization for the
17Department identified above to inspect all such financial
18records set forth above, and to request and receive copies of
19such financial records from the Financial Institution (subject
20to such records search and reproduction reimbursement policies
21as the Financial Institution may have in place). An executed
22copy of this Consent and Authorization shall be sufficient and
23as good as the original and permission is hereby granted to

 

 

10200SB3971sam001- 43 -LRB102 24625 BMS 36628 a

1honor a photostatic or electronic copy of this Consent and
2Authorization. Disclosure is strictly limited to the
3Department identified above and no other person or entity
4shall receive my financial records pursuant to this Consent
5and Authorization. By signing this form, I agree to indemnify
6and hold the Financial Institution harmless from any and all
7claims, demands, and losses, including reasonable attorneys
8fees and expenses, arising from or incurred in its reliance on
9this Consent and Authorization. As used herein, "Customer"
10shall mean "Member" if the Financial Institution is a credit
11union.
 
12....................... ...................... 
13(Date)                  (Signature of Customer)             
 
14                         ...................... 
15                         ...................... 
16                         (Address of Customer) 
 
17                         ...................... 
18                         (Customer's birth date) 
19                         (month/day/year) 
 
20The undersigned witness certifies that .................,
21known to me to be the same person whose name is subscribed as
22the customer to the foregoing Consent and Authorization,

 

 

10200SB3971sam001- 44 -LRB102 24625 BMS 36628 a

1appeared before me and the notary public and acknowledged
2signing and delivering the instrument as his or her free and
3voluntary act for the uses and purposes therein set forth. I
4believe him or her to be of sound mind and memory. The
5undersigned witness also certifies that the witness is not an
6owner, operator, or relative of an owner or operator of a
7long-term care facility in which the customer is a patient or
8resident.
 
9Dated: ................. ...................... 
10                         (Signature of Witness) 
 
11                         ...................... 
12                         (Print Name of Witness) 
 
13                         ...................... 
14                         ...................... 
15                         (Address of Witness) 
 
16State of Illinois)
17                 ) ss.
18County of .......)
 
19The undersigned, a notary public in and for the above county
20and state, certifies that .........., known to me to be the
21same person whose name is subscribed as the customer to the

 

 

10200SB3971sam001- 45 -LRB102 24625 BMS 36628 a

1foregoing Consent and Authorization, appeared before me
2together with the witness, .........., in person and
3acknowledged signing and delivering the instrument as the free
4and voluntary act of the customer for the uses and purposes
5therein set forth.
 
6Dated:.......................................................
7Notary Public:...............................................
8My commission expires:.......................................
 
9        (b) In no event shall the credit union distribute the
10    member's financial records to the long-term care facility
11    from which the member seeks initial or continuing
12    residency or long-term care services.
13        (c) A credit union providing financial records of a
14    member in good faith relying on a consent and
15    authorization executed and tendered in accordance with
16    this item (17) shall not be liable to the member or any
17    other person in relation to the credit union's disclosure
18    of the member's financial records to the Department. The
19    member signing the consent and authorization shall
20    indemnify and hold the credit union harmless that relies
21    in good faith upon the consent and authorization and
22    incurs a loss because of such reliance. The credit union
23    recovering under this indemnification provision shall also
24    be entitled to reasonable attorney's fees and the expenses

 

 

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1    of recovery.
2        (d) A credit union shall be reimbursed by the member
3    for all costs reasonably necessary and directly incurred
4    in searching for, reproducing, and disclosing a member's
5    financial records required or requested to be produced
6    pursuant to any consent and authorization executed under
7    this item (17). The requested financial records shall be
8    delivered to the Department within 10 days after receiving
9    a properly executed consent and authorization or at the
10    earliest practicable time thereafter if the requested
11    records cannot be delivered within 10 days, but delivery
12    may be delayed until the final reimbursement of all costs
13    is received by the credit union. The credit union may
14    honor a photostatic or electronic copy of a properly
15    executed consent and authorization.
16        (e) Nothing in this item (17) shall impair, abridge,
17    or abrogate the right of a member to:
18            (1) directly disclose his or her financial records
19        to the Department or any other person; or
20            (2) authorize his or her attorney or duly
21        appointed agent to request and obtain the member's
22        financial records and disclose those financial records
23        to the Department.
24        (f) For purposes of this item (17), "Department" means
25    the Department of Human Services and the Department of
26    Healthcare and Family Services or any successor

 

 

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1    administrative agency of either agency.
2        (18) The furnishing of the financial records of a
3    member to an appropriate law enforcement authority,
4    without prior notice to or consent of the member, upon
5    written request of the law enforcement authority, when
6    reasonable suspicion of an imminent threat to the personal
7    security and safety of the member exists that necessitates
8    an expedited release of the member's financial records, as
9    determined by the law enforcement authority. The law
10    enforcement authority shall include a brief explanation of
11    the imminent threat to the member in its written request
12    to the credit union. The written request shall reflect
13    that it has been authorized by a supervisory or managerial
14    official of the law enforcement authority. The decision to
15    furnish the financial records of a member to a law
16    enforcement authority shall be made by a supervisory or
17    managerial official of the credit union. A credit union
18    providing information in accordance with this item (18)
19    shall not be liable to the member or any other person for
20    the disclosure of the information to the law enforcement
21    authority.
22    (c) Except as otherwise provided by this Act, a credit
23union may not disclose to any person, except to the member or
24his duly authorized agent, any financial records relating to
25that member of the credit union unless:
26        (1) the member has authorized disclosure to the

 

 

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1    person;
2        (2) the financial records are disclosed in response to
3    a lawful subpoena, summons, warrant, citation to discover
4    assets, or court order that meets the requirements of
5    subparagraph (3)(d) of this Section; or
6        (3) the credit union is attempting to collect an
7    obligation owed to the credit union and the credit union
8    complies with the provisions of Section 2I of the Consumer
9    Fraud and Deceptive Business Practices Act.
10    (d) A credit union shall disclose financial records under
11item (3)(c)(2) of this Section pursuant to a lawful subpoena,
12summons, warrant, citation to discover assets, or court order
13only after the credit union sends mails a copy of the subpoena,
14summons, warrant, citation to discover assets, or court order
15to the person establishing the relationship with the credit
16union, if living, and otherwise the person's his personal
17representative, if known, at the person's his last known
18address by first class mail, postage prepaid, through a
19third-party commercial carrier or courier with delivery charge
20fully prepaid, by hand delivery, or by electronic delivery at
21an email address on file with the credit union (if the person
22establishing the relationship with the credit union has
23consented to receive electronic delivery and, if the person
24establishing the relationship with the credit union is a
25consumer, the person has consented under the consumer consent
26provisions set forth in Section 7001 of Title 15 of the United

 

 

10200SB3971sam001- 49 -LRB102 24625 BMS 36628 a

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

 

 

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1costs is received.
2(Source: P.A. 100-22, eff. 1-1-18; 100-664, eff. 1-1-19;
3100-778, eff. 8-10-18; 101-81, eff. 7-12-19.)
 
4    (205 ILCS 305/10.1)
5    Sec. 10.1. Retention of records.
6    (a) Each credit union shall retain its records in a manner
7consistent with prudent business practices and in accordance
8with this Act and applicable State or federal laws, rules, and
9regulations. The record retention system utilized must be able
10to accurately produce such records.
11    (b) Except where a retention period is required by State
12or federal laws, rules, or regulations, a credit union may
13destroy its records subject to the considerations set forth in
14subsection (a). In the destruction of records, the credit
15union shall take reasonable precautions to ensure the
16confidentiality of information in the records.
17    (c) Unless a federal law requires otherwise, the Secretary
18and the Director may by rule prescribe periods of time for
19which credit unions operating under this Act must retain
20records and after the expiration of which the credit union may
21destroy those records. No liability shall accrue against the
22credit union, the Secretary, or this State for the destruction
23of records according to rules of the Secretary promulgated
24under the authority of this Section. In any cause or
25proceeding in which any records may be called in question or be

 

 

10200SB3971sam001- 51 -LRB102 24625 BMS 36628 a

1demanded from any credit union, a showing of the expiration of
2the period so prescribed shall be sufficient excuse for
3failure to produce them.
4(Source: P.A. 97-133, eff. 1-1-12.)
 
5    Section 99. Effective date. This Act takes effect upon
6becoming law.".