Illinois General Assembly - Full Text of HB1301
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Full Text of HB1301  94th General Assembly

HB1301enr 94TH GENERAL ASSEMBLY



 


 
HB1301 Enrolled LRB094 03887 AMC 33898 b

1     AN ACT concerning regulation.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 5. The Illinois Banking Act is amended by changing
5 Section 48.1 as follows:
 
6     (205 ILCS 5/48.1)  (from Ch. 17, par. 360)
7     Sec. 48.1. Customer financial records; confidentiality.
8     (a) For the purpose of this Section, the term "financial
9 records" means any original, any copy, or any summary of:
10         (1) a document granting signature authority over a
11     deposit or account;
12         (2) a statement, ledger card or other record on any
13     deposit or account, which shows each transaction in or with
14     respect to that account;
15         (3) a check, draft or money order drawn on a bank or
16     issued and payable by a bank; or
17         (4) any other item containing information pertaining
18     to any relationship established in the ordinary course of a
19     bank's business between a bank and its customer, including
20     financial statements or other financial information
21     provided by the customer.
22     (b) This Section does not prohibit:
23         (1) The preparation, examination, handling or
24     maintenance of any financial records by any officer,
25     employee or agent of a bank having custody of the records,
26     or the examination of the records by a certified public
27     accountant engaged by the bank to perform an independent
28     audit.
29         (2) The examination of any financial records by, or the
30     furnishing of financial records by a bank to, any officer,
31     employee or agent of (i) the Commissioner of Banks and Real
32     Estate, (ii) after May 31, 1997, a state regulatory

 

 

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

 

 

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

 

 

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

 

 

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1     information as necessary to protect against actual or
2     potential fraud, unauthorized transactions, claims, or
3     other liability.
4         (19) (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 (19) of
13     subsection (b) of Section 48.1, 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 (19) of subsection
20     (b) of Section 48.l, 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     (c) Except as otherwise provided by this Act, a bank may
26 not disclose to any person, except to the customer or his duly
27 authorized agent, any financial records or financial
28 information obtained from financial records relating to that
29 customer of that bank unless:
30         (1) the customer has authorized disclosure to the
31     person;
32         (2) the financial records are disclosed in response to
33     a lawful subpoena, summons, warrant or court order which
34     meets the requirements of subsection (d) of this Section;
35     or
36         (3) the bank is attempting to collect an obligation

 

 

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1     owed to the bank and the bank complies with the provisions
2     of Section 2I of the Consumer Fraud and Deceptive Business
3     Practices Act.
4     (d) A bank shall disclose financial records under paragraph
5 (2) of subsection (c) of this Section under a lawful subpoena,
6 summons, warrant, or court order only after the bank mails a
7 copy of the subpoena, summons, warrant, or court order to the
8 person establishing the relationship with the bank, if living,
9 and, otherwise his personal representative, if known, at his
10 last known address by first class mail, postage prepaid, unless
11 the bank is specifically prohibited from notifying the person
12 by order of court or by applicable State or federal law. A bank
13 shall not mail a copy of a subpoena to any person pursuant to
14 this subsection if the subpoena was issued by a grand jury
15 under the Statewide Grand Jury Act.
16     (e) Any officer or employee of a bank who knowingly and
17 willfully furnishes financial records in violation of this
18 Section is guilty of a business offense and, upon conviction,
19 shall be fined not more than $1,000.
20     (f) Any person who knowingly and willfully induces or
21 attempts to induce any officer or employee of a bank to
22 disclose financial records in violation of this Section is
23 guilty of a business offense and, upon conviction, shall be
24 fined not more than $1,000.
25     (g) A bank shall be reimbursed for costs that are
26 reasonably necessary and that have been directly incurred in
27 searching for, reproducing, or transporting books, papers,
28 records, or other data of a customer required or requested to
29 be produced pursuant to a lawful subpoena, summons, warrant, or
30 court order. The Commissioner shall determine the rates and
31 conditions under which payment may be made.
32 (Source: P.A. 91-330, eff. 7-29-99; 91-929, eff. 12-15-00;
33 92-483, eff. 8-23-01; 92-543, eff. 6-12-02.)
 
34     Section 10. The Illinois Savings and Loan Act of 1985 is
35 amended by changing Section 3-8 as follows:
 

 

 

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1     (205 ILCS 105/3-8)  (from Ch. 17, par. 3303-8)
2     Sec. 3-8. Access to books and records; communication with
3 members.
4     (a) Every member or holder of capital shall have the right
5 to inspect the books and records of the association that
6 pertain to his account. 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 or shall be entitled to a list of the
10 members.
11     (b) For the purpose of this Section, the term "financial
12 records" means any original, any copy, or any summary of (i) a
13 document granting signature authority over a deposit or
14 account; (ii) 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; (iii) a check, draft, or money order
17 drawn on an association or issued and payable by an
18 association; or (iv) any other item containing information
19 pertaining to any relationship established in the ordinary
20 course of an association's business between an association and
21 its customer, including financial statements or other
22 financial information provided by the member or holder of
23 capital.
24     (c) This Section does not prohibit:
25         (1) The preparation, examination, handling, or
26     maintenance of any financial records by any officer,
27     employee, or agent of an association having custody of
28     those records or the examination of those records by a
29     certified public accountant engaged by the association to
30     perform an independent audit.
31         (2) The examination of any financial records by, or the
32     furnishing of financial records by an association to, any
33     officer, employee, or agent of the Commissioner of Banks
34     and Real Estate or federal depository institution
35     regulator for use solely in the exercise of his duties as

 

 

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1     an officer, employee, or agent.
2         (3) The publication of data furnished from financial
3     records relating to members or holders of capital where the
4     data cannot be identified to any particular member, holder
5     of capital, or account.
6         (4) The making of reports or returns required under
7     Chapter 61 of the Internal Revenue Code of 1986.
8         (5) Furnishing information concerning the dishonor of
9     any negotiable instrument permitted to be disclosed under
10     the Uniform Commercial Code.
11         (6) The exchange in the regular course of business of
12     (i) credit information between an association and other
13     associations or financial institutions or commercial
14     enterprises, directly or through a consumer reporting
15     agency or (ii) financial records or information derived
16     from financial records between an association and other
17     associations or financial institutions or commercial
18     enterprises for the purpose of conducting due diligence
19     pursuant to a purchase or sale involving the association or
20     assets or liabilities of the association.
21         (7) The furnishing of information to the appropriate
22     law enforcement authorities where the association
23     reasonably believes it has been the victim of a crime.
24         (8) The furnishing of information pursuant to the
25     Uniform Disposition of Unclaimed Property Act.
26         (9) The furnishing of information pursuant to the
27     Illinois Income Tax Act and the Illinois Estate and
28     Generation-Skipping Transfer Tax Act.
29         (10) The furnishing of information pursuant to the
30     federal "Currency and Foreign Transactions Reporting Act",
31     (Title 31, United States Code, Section 1051 et seq.).
32         (11) The furnishing of information pursuant to any
33     other statute that by its terms or by regulations
34     promulgated thereunder requires the disclosure of
35     financial records other than by subpoena, summons,
36     warrant, or court order.

 

 

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1         (12) The exchange of information between an
2     association and an affiliate of the association; as used in
3     this item, "affiliate" includes any company, partnership,
4     or organization that controls, is controlled by, or is
5     under common control with an association.
6         (13) The furnishing of information in accordance with
7     the federal Personal Responsibility and Work Opportunity
8     Reconciliation Act of 1996. Any association 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     association a reasonable fee not to exceed its actual cost
12     incurred. An association 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 association in response
17     to a lien or order to withhold and deliver issued by a
18     State agency, or for any other action taken pursuant to
19     this item, including individual or mechanical errors,
20     provided the action does not constitute gross negligence or
21     willful misconduct. An association shall have no
22     obligation to hold, encumber, or surrender assets until it
23     has been served with a subpoena, summons, warrant, court or
24     administrative order, lien, or levy.
25         (14) The furnishing of information to law enforcement
26     authorities, the Illinois Department on Aging and its
27     regional administrative and provider agencies, the
28     Department of Human Services Office of Inspector General,
29     or public guardians, if there is suspicion by the
30     investigatory entity, the guardian, or the association
31     suspects that a customer who is an elderly or disabled
32     person has been or may become the victim of financial
33     exploitation. For the purposes of this item (14), the term:
34     (i) "elderly person" means a person who is 60 or more years
35     of age, (ii) "disabled person" means a person who has or
36     reasonably appears to the association to have a physical or

 

 

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

 

 

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1         (17) (a) The disclosure of financial records or
2     information related to a private label credit program
3     between a financial institution and a private label party
4     in connection with that private label credit program. Such
5     information is limited to outstanding balance, available
6     credit, payment and performance and account history,
7     product references, purchase information, and information
8     related to the identity of the customer.
9         (b) (l) For purposes of this paragraph (17) of
10     subsection (c) of Section 3-8, a "private label credit
11     program" means a credit program involving a financial
12     institution and a private label party that is used by a
13     customer of the financial institution and the private label
14     party primarily for payment for goods or services sold,
15     manufactured, or distributed by a private label party.
16         (2) For purposes of this paragraph (17) of subsection
17     (c) of Section 3-8, 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     (d) An association may not disclose to any person, except
23 to the member or holder of capital or his duly authorized
24 agent, any financial records relating to that member or holder
25 of capital of that association unless:
26         (1) The member or holder of capital has authorized
27     disclosure to the person; or
28         (2) The financial records are disclosed in response to
29     a lawful subpoena, summons, warrant, or court order that
30     meets the requirements of subsection (e) of this Section.
31     (e) An association shall disclose financial records under
32 subsection (d) of this Section pursuant to a lawful subpoena,
33 summons, warrant, or court order only after the association
34 mails a copy of the subpoena, summons, warrant, or court order
35 to the person establishing the relationship with the
36 association, if living, and, otherwise, his personal

 

 

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1 representative, if known, at his last known address by first
2 class mail, postage prepaid, unless the association is
3 specifically prohibited from notifying that person by order of
4 court.
5     (f) (1) Any officer or employee of an association who
6 knowingly and willfully furnishes financial records in
7 violation of this Section is guilty of a business offense and,
8 upon conviction, shall be fined not more than $1,000.
9     (2) Any person who knowingly and willfully induces or
10 attempts to induce any officer or employee of an association to
11 disclose financial records in violation of this Section is
12 guilty of a business offense and, upon conviction, shall be
13 fined not more than $1,000.
14     (g) However, if any member desires to communicate with the
15 other members of the association with reference to any question
16 pending or to be presented at a meeting of the members, the
17 association shall give him upon request a statement of the
18 approximate number of members entitled to vote at the meeting
19 and an estimate of the cost of preparing and mailing the
20 communication. The requesting member then shall submit the
21 communication to the Commissioner who, if he finds it to be
22 appropriate and truthful, shall direct that it be prepared and
23 mailed to the members upon the requesting member's payment or
24 adequate provision for payment of the expenses of preparation
25 and mailing.
26     (h) An association shall be reimbursed for costs that are
27 necessary and that have been directly incurred in searching
28 for, reproducing, or transporting books, papers, records, or
29 other data of a customer required to be reproduced pursuant to
30 a lawful subpoena, warrant, or court order.
31 (Source: P.A. 92-483, eff. 8-23-01; 92-543, eff. 6-12-02;
32 93-271, eff. 7-22-03.)
 
33     Section 15. The Savings Bank Act is amended by changing
34 Section 4013 as follows:
 

 

 

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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
27     records or examination of records by a certified public
28     accountant engaged by the savings bank to perform an
29     independent audit.
30         (2) The examination of any financial records by, or the
31     furnishing of financial records by a savings bank to, any
32     officer, employee, or agent of the Commissioner of Banks
33     and Real Estate or the federal depository institution
34     regulator for use solely in the exercise of his duties as
35     an officer, employee, or agent.
36         (3) The publication of data furnished from financial

 

 

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1     records relating to members or holders of capital where the
2     data cannot be identified to any particular member,
3     shareholder, or account.
4         (4) The making of reports or returns required under
5     Chapter 61 of the Internal Revenue Code of 1986.
6         (5) Furnishing information concerning the dishonor of
7     any negotiable instrument permitted to be disclosed under
8     the Uniform Commercial Code.
9         (6) The exchange in the regular course of business of
10     (i) credit information between a savings bank and other
11     savings banks or financial institutions or commercial
12     enterprises, directly or through a consumer reporting
13     agency or (ii) financial records or information derived
14     from financial records between a savings bank and other
15     savings banks or financial institutions or commercial
16     enterprises for the purpose of conducting due diligence
17     pursuant to a purchase or sale involving the savings bank
18     or assets or liabilities of the savings bank.
19         (7) The furnishing of information to the appropriate
20     law enforcement authorities where the savings bank
21     reasonably believes it has been the victim of a crime.
22         (8) The furnishing of information pursuant to the
23     Uniform Disposition of Unclaimed Property Act.
24         (9) The furnishing of information pursuant to the
25     Illinois Income Tax Act and the Illinois Estate and
26     Generation-Skipping Transfer Tax Act.
27         (10) The furnishing of information pursuant to the
28     federal "Currency and Foreign Transactions Reporting Act",
29     (Title 31, United States Code, Section 1051 et seq.).
30         (11) The furnishing of information pursuant to any
31     other statute which by its terms or by regulations
32     promulgated thereunder requires the disclosure of
33     financial records other than by subpoena, summons,
34     warrant, or court order.
35         (12) The furnishing of information in accordance with
36     the federal Personal Responsibility and Work Opportunity

 

 

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1     Reconciliation Act of 1996. Any savings bank governed by
2     this Act shall enter into an agreement for data exchanges
3     with a State agency provided the State agency pays to the
4     savings bank a reasonable fee not to exceed its actual cost
5     incurred. A savings bank providing information in
6     accordance with this item shall not be liable to any
7     account holder or other person for any disclosure of
8     information to a State agency, for encumbering or
9     surrendering any assets held by the savings bank in
10     response to a lien or order to withhold and deliver issued
11     by a State agency, or for any other action taken pursuant
12     to this item, including individual or mechanical errors,
13     provided the action does not constitute gross negligence or
14     willful misconduct. A savings bank shall have no obligation
15     to hold, encumber, or surrender assets until it has been
16     served with a subpoena, summons, warrant, court or
17     administrative order, lien, or levy.
18         (13) The furnishing of information to law enforcement
19     authorities, the Illinois Department on Aging and its
20     regional administrative and provider agencies, the
21     Department of Human Services Office of Inspector General,
22     or public guardians, if there is suspicion by the
23     investigatory entity, the guardian, or the savings bank
24     suspects that a customer who is an elderly or disabled
25     person has been or may become the victim of financial
26     exploitation. For the purposes of this item (13), the term:
27     (i) "elderly person" means a person who is 60 or more years
28     of age, (ii) "disabled person" means a person who has or
29     reasonably appears to the savings bank to have a physical
30     or mental disability that impairs his or her ability to
31     seek or obtain protection from or prevent financial
32     exploitation, and (iii) "financial exploitation" means
33     tortious or illegal use of the assets or resources of an
34     elderly or disabled person, and includes, without
35     limitation, misappropriation of the elderly or disabled
36     person's assets or resources by undue influence, breach of

 

 

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1     fiduciary relationship, intimidation, fraud, deception,
2     extortion, or the use of assets or resources in any manner
3     contrary to law. A savings bank or person furnishing
4     information pursuant to this item (13) shall be entitled to
5     the same rights and protections as a person furnishing
6     information under the Elder Abuse and Neglect Act, and the
7     Illinois Domestic Violence Act of 1986, and the Abuse of
8     Adults with Disabilities Intervention Act.
9         (14) 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 savings bank; 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 (14), 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         (15) The exchange in the regular course of business of
27     information between a savings bank and any commonly owned
28     affiliate of the savings bank, subject to the provisions of
29     the Financial Institutions Insurance Sales Law.
30         (16) The disclosure of financial records or
31     information as necessary to protect against or prevent
32     actual or potential fraud, unauthorized transactions,
33     claims, or other liability.
34         (17) (a) The disclosure of financial records or
35     information related to a private label credit program
36     between a financial institution and a private label party

 

 

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1     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 (17) of
7     subsection (c) of Section 4013, 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 (17) of subsection
14     (c) of Section 4013, 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     (d) A savings bank may not disclose to any person, except
20 to the member or holder of capital or his duly authorized
21 agent, any financial records relating to that member or
22 shareholder of the savings bank unless:
23         (1) the member or shareholder has authorized
24     disclosure to the person; or
25         (2) the financial records are disclosed in response to
26     a lawful subpoena, summons, warrant, or court order that
27     meets the requirements of subsection (e) of this Section.
28     (e) A savings bank shall disclose financial records under
29 subsection (d) of this Section pursuant to a lawful subpoena,
30 summons, warrant, or court order only after the savings bank
31 mails a copy of the subpoena, summons, warrant, or court order
32 to the person establishing the relationship with the savings
33 bank, if living, and otherwise, his personal representative, if
34 known, at his last known address by first class mail, postage
35 prepaid, unless the savings bank is specifically prohibited
36 from notifying the person by order of court.

 

 

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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
27 a lawful subpoena, warrant, or court order.
28     (j) Notwithstanding the provisions of this Section, a
29 savings bank may sell or otherwise make use of lists of
30 customers' names and addresses. All other information
31 regarding a customer's account are subject to the disclosure
32 provisions of this Section. At the request of any customer,
33 that customer's name and address shall be deleted from any list
34 that is to be sold or used in any other manner beyond
35 identification of the customer's accounts.
36 (Source: P.A. 92-483, eff. 8-23-01; 92-543, eff. 6-12-02;

 

 

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1 93-271, eff. 7-22-03.)
 
2     Section 20. The Illinois Credit Union Act is amended by
3 changing Section 10 as follows:
 
4     (205 ILCS 305/10)  (from Ch. 17, par. 4411)
5     Sec. 10. Credit union records; member financial records.
6     (1) A credit union shall establish and maintain books,
7 records, accounting systems and procedures which accurately
8 reflect its operations and which enable the Department to
9 readily ascertain the true financial condition of the credit
10 union and whether it is complying with this Act.
11     (2) A photostatic or photographic reproduction of any
12 credit union records shall be admissible as evidence of
13 transactions with the credit union.
14     (3) (a) For the purpose of this Section, the term
15     "financial records" means any original, any copy, or any
16     summary of (1) a document granting signature authority over
17     an account, (2) a statement, ledger card or other record on
18     any account which shows each transaction in or with respect
19     to that account, (3) a check, draft or money order drawn on
20     a financial institution or other entity or issued and
21     payable by or through a financial institution or other
22     entity, or (4) any other item containing information
23     pertaining to any relationship established in the ordinary
24     course of business between a credit union and its member,
25     including financial statements or other financial
26     information provided by the member.
27         (b) This Section does not prohibit:
28             (1) The preparation, examination, handling or
29         maintenance of any financial records by any officer,
30         employee or agent of a credit union having custody of
31         such records, or the examination of such records by a
32         certified public accountant engaged by the credit
33         union to perform an independent audit.
34             (2) The examination of any financial records by or

 

 

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1         the furnishing of financial records by a credit union
2         to any officer, employee or agent of the Department,
3         the National Credit Union Administration, Federal
4         Reserve board or any insurer of share accounts for use
5         solely in the exercise of his duties as an officer,
6         employee or agent.
7             (3) The publication of data furnished from
8         financial records relating to members where the data
9         cannot be identified to any particular customer of
10         account.
11             (4) The making of reports or returns required under
12         Chapter 61 of the Internal Revenue Code of 1954.
13             (5) Furnishing information concerning the dishonor
14         of any negotiable instrument permitted to be disclosed
15         under the Uniform Commercial Code.
16             (6) The exchange in the regular course of business
17         of (i) credit information between a credit union and
18         other credit unions or financial institutions or
19         commercial enterprises, directly or through a consumer
20         reporting agency or (ii) financial records or
21         information derived from financial records between a
22         credit union and other credit unions or financial
23         institutions or commercial enterprises for the purpose
24         of conducting due diligence pursuant to a merger or a
25         purchase or sale of assets or liabilities of the credit
26         union.
27             (7) The furnishing of information to the
28         appropriate law enforcement authorities where the
29         credit union reasonably believes it has been the victim
30         of a crime.
31             (8) The furnishing of information pursuant to the
32         Uniform Disposition of Unclaimed Property Act.
33             (9) The furnishing of information pursuant to the
34         Illinois Income Tax Act and the Illinois Estate and
35         Generation-Skipping Transfer Tax Act.
36             (10) The furnishing of information pursuant to the

 

 

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1         federal "Currency and Foreign Transactions Reporting
2         Act", Title 31, United States Code, Section 1051 et
3         sequentia.
4             (11) The furnishing of information pursuant to any
5         other statute which by its terms or by regulations
6         promulgated thereunder requires the disclosure of
7         financial records other than by subpoena, summons,
8         warrant or court order.
9             (12) The furnishing of information in accordance
10         with the federal Personal Responsibility and Work
11         Opportunity Reconciliation Act of 1996. Any credit
12         union governed by this Act shall enter into an
13         agreement for data exchanges with a State agency
14         provided the State agency pays to the credit union a
15         reasonable fee not to exceed its actual cost incurred.
16         A credit union providing information in accordance
17         with this item shall not be liable to any account
18         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
22         issued by a State agency, or for any other action taken
23         pursuant to this item, including individual or
24         mechanical errors, provided the action does not
25         constitute gross negligence or willful misconduct. A
26         credit union shall have no obligation to hold,
27         encumber, or surrender assets until it has been served
28         with a subpoena, summons, warrant, court or
29         administrative order, lien, or levy.
30             (13) The furnishing of information to law
31         enforcement authorities, the Illinois Department on
32         Aging and its regional administrative and provider
33         agencies, the Department of Human Services Office of
34         Inspector General, or public guardians, if there is
35         suspicion by the investigatory entity, the guardian,
36         or the credit union suspects that a member who is an

 

 

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

 

 

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1         sale of the financial records or information of a
2         member without the consent of the member.
3             (15) The disclosure of financial records or
4         information as necessary to protect against or prevent
5         actual or potential fraud, unauthorized transactions,
6         claims, or other liability.
7             (16) (a) The disclosure of financial records or
8         information related to a private label credit program
9         between a financial institution and a private label
10         party in connection with that private label credit
11         program. Such information is limited to outstanding
12         balance, available credit, payment and performance and
13         account history, product references, purchase
14         information, and information related to the identity
15         of the customer.
16             (b) (l) For purposes of this paragraph (16) of
17         subsection (b) of Section 10, a "private label credit
18         program" means a credit program involving a financial
19         institution and a private label party that is used by a
20         customer of the financial institution and the private
21         label party primarily for payment for goods or services
22         sold, manufactured, or distributed by a private label
23         party.
24             (2) For purposes of this paragraph (16) of
25         subsection (b) of Section 10, a "private label party"
26         means, with respect to a private label credit program,
27         any of the following: a retailer, a merchant, a
28         manufacturer, a trade group, or any such person's
29         affiliate, subsidiary, member, agent, or service
30         provider.
31         (c) Except as otherwise provided by this Act, a credit
32     union may not disclose to any person, except to the member
33     or his duly authorized agent, any financial records
34     relating to that member of the credit union unless:
35             (1) the member has authorized disclosure to the
36         person;

 

 

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1             (2) the financial records are disclosed in
2         response to a lawful subpoena, summons, warrant or
3         court order that meets the requirements of
4         subparagraph (d) of this Section; or
5             (3) the credit union is attempting to collect an
6         obligation owed to the credit union and the credit
7         union complies with the provisions of Section 2I of the
8         Consumer Fraud and Deceptive Business Practices Act.
9         (d) A credit union shall disclose financial records
10     under subparagraph (c)(2) of this Section pursuant to a
11     lawful subpoena, summons, warrant or court order only after
12     the credit union mails a copy of the subpoena, summons,
13     warrant or court order to the person establishing the
14     relationship with the credit union, if living, and
15     otherwise his personal representative, if known, at his
16     last known address by first class mail, postage prepaid
17     unless the credit union is specifically prohibited from
18     notifying the person by order of court or by applicable
19     State or federal law. In the case of a grand jury subpoena,
20     a credit union shall not mail a copy of a subpoena to any
21     person pursuant to this subsection if the subpoena was
22     issued by a grand jury under the Statewide Grand Jury Act
23     or notifying the person would constitute a violation of the
24     federal Right to Financial Privacy Act of 1978.
25         (e) (1) Any officer or employee of a credit union who
26         knowingly and wilfully furnishes financial records in
27         violation of this Section is guilty of a business
28         offense and upon conviction thereof shall be fined not
29         more than $1,000.
30             (2) Any person who knowingly and wilfully induces
31         or attempts to induce any officer or employee of a
32         credit union to disclose financial records in
33         violation of this Section is guilty of a business
34         offense and upon conviction thereof shall be fined not
35         more than $1,000.
36         (f) A credit union shall be reimbursed for costs which

 

 

HB1301 Enrolled - 25 - LRB094 03887 AMC 33898 b

1     are reasonably necessary and which have been directly
2     incurred in searching for, reproducing or transporting
3     books, papers, records or other data of a member required
4     or requested to be produced pursuant to a lawful subpoena,
5     summons, warrant or court order. The Director may
6     determine, by rule, the rates and conditions under which
7     payment shall be made. Delivery of requested documents may
8     be delayed until final reimbursement of all costs is
9     received.
10 (Source: P.A. 91-929, eff. 12-15-00; 92-293, eff. 8-9-01;
11 92-483, eff. 8-23-01; 92-543, eff. 6-12-02.)
 
12     Section 99. Effective date. This Act takes effect upon
13 becoming law.