Full Text of HB4266 94th General Assembly
HB4266 94TH GENERAL ASSEMBLY
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94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006 HB4266
Introduced 12/16/2005, by Rep. Sidney H. Mathias SYNOPSIS AS INTRODUCED: |
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205 ILCS 5/48.1 |
from Ch. 17, par. 360 |
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Amends the Illinois Banking Act. Requires a bank to disclose certain financial records under a lawful citation to discover assets.
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A BILL FOR
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HB4266 |
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LRB094 15571 MKM 50770 b |
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| AN ACT concerning regulation.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Illinois Banking Act is amended by changing | 5 |
| Section 48.1 as follows:
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| (205 ILCS 5/48.1) (from Ch. 17, par. 360)
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| Sec. 48.1. Customer financial records; confidentiality.
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| (a) For the purpose of this Section, the term "financial | 9 |
| records" means any
original, any copy, or any summary of:
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| (1) a document granting signature
authority over a | 11 |
| deposit or account;
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| (2) a statement, ledger card or other
record on any | 13 |
| deposit or account, which shows each transaction in or with
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| respect to that account;
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| (3) a check, draft or money order drawn on a bank
or | 16 |
| issued and payable by a bank; or
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| (4) any other item containing
information pertaining | 18 |
| to any relationship established in the ordinary
course of a | 19 |
| bank's business between a bank and its customer, including
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| financial statements or other financial information | 21 |
| provided by the customer.
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| (b) This Section does not prohibit:
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| (1) The preparation, examination, handling or | 24 |
| maintenance of any
financial records by any officer, | 25 |
| employee or agent of a bank
having custody of the records, | 26 |
| or the examination of the records by a
certified public | 27 |
| accountant engaged by the bank to perform an independent
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| audit.
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| (2) The examination of any financial records by, or the | 30 |
| furnishing of
financial records by a bank to, any officer, | 31 |
| employee or agent of (i) the
Commissioner of Banks and Real | 32 |
| Estate, (ii) after May
31, 1997, a state regulatory |
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| authority authorized to examine a branch of a
State bank | 2 |
| located in another state, (iii) the Comptroller of the | 3 |
| Currency,
(iv) the Federal Reserve Board, or (v) the | 4 |
| Federal Deposit Insurance
Corporation for use solely in the | 5 |
| exercise of his duties as an officer,
employee, or agent.
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| (3) The publication of data furnished from financial | 7 |
| records
relating to customers where the data cannot be | 8 |
| identified to any
particular customer or account.
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| (4) The making of reports or returns required under | 10 |
| Chapter 61 of
the Internal Revenue Code of 1986.
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| (5) Furnishing information concerning the dishonor of | 12 |
| any negotiable
instrument permitted to be disclosed under | 13 |
| the Uniform Commercial Code.
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| (6) The exchange in the regular course of business of | 15 |
| (i) credit
information
between a bank and other banks or | 16 |
| financial institutions or commercial
enterprises, directly | 17 |
| or through a consumer reporting agency or (ii)
financial | 18 |
| records or information derived from financial records | 19 |
| between a bank
and other banks or financial institutions or | 20 |
| commercial enterprises for the
purpose of conducting due | 21 |
| diligence pursuant to a purchase or sale involving
the bank | 22 |
| or assets or liabilities of the bank.
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| (7) The furnishing of information to the appropriate | 24 |
| law enforcement
authorities where the bank reasonably | 25 |
| believes it has been the victim of a
crime.
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| (8) The furnishing of information under the Uniform | 27 |
| Disposition of
Unclaimed Property Act.
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| (9) The furnishing of information under the Illinois | 29 |
| Income Tax Act and
the Illinois Estate and | 30 |
| Generation-Skipping Transfer Tax Act.
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| (10) The furnishing of information under the federal | 32 |
| Currency
and Foreign Transactions Reporting Act Title 31, | 33 |
| United States
Code, Section 1051 et seq.
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| (11) The furnishing of information under any other | 35 |
| statute that
by its terms or by regulations promulgated | 36 |
| thereunder requires the disclosure
of financial records |
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| 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.
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| (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
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| Section 5 and conducted at an affiliate facility.
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| (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
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| 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,
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| 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 | 28 |
| information
between
a bank and any commonly owned affiliate | 29 |
| of the bank, subject to the provisions
of the Financial | 30 |
| Institutions Insurance Sales Law.
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| (16) The furnishing of information to law enforcement | 32 |
| authorities, the
Illinois Department on
Aging and its | 33 |
| regional administrative and provider agencies, the | 34 |
| Department of
Human Services Office
of Inspector General, | 35 |
| or public guardians, if there is suspicion by the | 36 |
| investigatory entity, the guardian, or the bank that a |
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| customer
who is an elderly or
disabled person has been or | 2 |
| may become the victim of financial exploitation.
For the | 3 |
| purposes of this
item (16), the term: (i) "elderly person" | 4 |
| means a person who is 60 or more
years of age, (ii) | 5 |
| "disabled
person" means a person who has or reasonably | 6 |
| appears to the bank to have a
physical or mental
disability | 7 |
| that impairs his or her ability to seek or obtain | 8 |
| protection from or
prevent financial
exploitation, and | 9 |
| (iii) "financial exploitation" means tortious or illegal | 10 |
| use
of the assets or resources of
an elderly or disabled | 11 |
| person, and includes, without limitation,
misappropriation | 12 |
| of the elderly or
disabled person's assets or resources by | 13 |
| undue influence, breach of fiduciary
relationship, | 14 |
| intimidation,
fraud, deception, extortion, or the use of | 15 |
| assets or resources in any manner
contrary to law. A bank | 16 |
| or
person furnishing information pursuant to this item (16) | 17 |
| shall be entitled to
the same rights and
protections as a | 18 |
| person furnishing information under the Elder Abuse and
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| Neglect Act, the Illinois
Domestic Violence Act of 1986, | 20 |
| and the Abuse of Adults with Disabilities Intervention Act.
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| (17) The disclosure of financial records or | 22 |
| information as necessary to
effect, administer, or enforce | 23 |
| a transaction requested or authorized by the
customer, or | 24 |
| in connection with:
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| (A) servicing or processing a financial product or | 26 |
| service requested or
authorized by the customer;
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| (B) maintaining or servicing a customer's account | 28 |
| with the bank; or
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| (C) a proposed or actual securitization or | 30 |
| secondary market sale
(including sales of servicing | 31 |
| rights) related to a
transaction of a customer.
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| Nothing in this item (17), however, authorizes the sale | 33 |
| of the financial
records or information of a customer | 34 |
| without the consent of the customer.
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| (18) The disclosure of financial records or | 36 |
| information as necessary to
protect against actual or |
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| potential fraud, unauthorized transactions, claims,
or | 2 |
| other liability.
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| (19) (a) The disclosure of financial records or | 4 |
| information
related to a private label credit program | 5 |
| between a financial
institution and a private label party | 6 |
| in connection with that
private label credit program. Such | 7 |
| information is limited to
outstanding balance, available | 8 |
| credit, payment and performance
and account history, | 9 |
| product references, purchase information,
and information
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| related to the identity of the customer.
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| (b) (l) For purposes of this paragraph (19) of | 12 |
| subsection
(b) of Section 48.1, a "private label credit | 13 |
| program" means a
credit program involving a financial | 14 |
| institution and a private label
party that is used by a | 15 |
| customer of the financial institution and the
private label | 16 |
| party primarily for payment for goods or services
sold, | 17 |
| manufactured, or distributed by a private label party.
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| (2) For purposes of this paragraph (19) of subsection | 19 |
| (b)
of Section 48.l, a "private label party" means, with | 20 |
| respect to a
private label credit program, any of the | 21 |
| following: a
retailer, a merchant, a manufacturer, a trade | 22 |
| group,
or any such person's affiliate, subsidiary, member,
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| agent, or service provider.
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| (c) Except as otherwise provided by this Act, a bank may | 25 |
| not disclose to
any person, except to the customer or his
duly | 26 |
| authorized agent, any financial records or financial | 27 |
| information
obtained from financial records relating to that | 28 |
| customer of
that bank unless:
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| (1) the customer has authorized disclosure to the | 30 |
| person;
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| (2) the financial records are disclosed in response to | 32 |
| a lawful
subpoena, summons, warrant , citation to discover | 33 |
| assets, or court order which meets the requirements
of | 34 |
| subsection (d) of this Section; or
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| (3) the bank is attempting to collect an obligation | 36 |
| owed to the bank
and the bank complies with the provisions |
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| of Section 2I of the Consumer
Fraud and Deceptive Business | 2 |
| Practices Act.
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| (d) A bank shall disclose financial records under paragraph | 4 |
| (2) of
subsection (c) of this Section under a lawful subpoena, | 5 |
| summons, warrant, citation to discover assets, or
court order | 6 |
| only after the bank mails a copy of the subpoena, summons, | 7 |
| warrant,
citation to discover assets, or court order to the | 8 |
| person establishing the relationship with the bank, if
living, | 9 |
| and, otherwise his personal representative, if known, at his | 10 |
| last known
address by first class mail, postage prepaid, unless | 11 |
| the bank is specifically
prohibited from notifying the person | 12 |
| by order of court or by applicable State
or federal law. A bank | 13 |
| shall not mail a copy of a subpoena to any person
pursuant to | 14 |
| this subsection if the subpoena was issued by a grand jury | 15 |
| under
the Statewide Grand Jury Act.
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| (e) Any officer or employee of a bank who knowingly and
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| willfully furnishes financial records in violation of this | 18 |
| Section is
guilty of a business offense and, upon conviction, | 19 |
| shall be fined not
more than $1,000.
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| (f) Any person who knowingly and willfully induces or | 21 |
| attempts to
induce any officer or employee of a bank to | 22 |
| disclose financial
records in violation of this Section is | 23 |
| guilty of a business offense
and, upon conviction, shall be | 24 |
| fined not more than $1,000.
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| (g) A bank shall be reimbursed for costs that are | 26 |
| reasonably necessary
and that have been directly incurred in | 27 |
| searching for, reproducing, or
transporting books, papers, | 28 |
| records, or other data of a customer required or
requested to | 29 |
| be produced pursuant to a lawful subpoena, summons, warrant, or
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| court order. The Commissioner shall determine the rates and | 31 |
| conditions
under which payment may be made.
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| (Source: P.A. 94-495, eff. 8-8-05.)
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