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90_HB1777
205 ILCS 616/47 new
Amends the Electronic Fund Transfer Act. Provides that
an entity whose principal place of business is not in
Illinois may not process interchange transactions in Illinois
unless entities with their principal place of business in
Illinois may process interchange transactions in that other
state. Provides that the Commissioner of Banks and Trust
Companies has the authority to make determinations regarding
reciprocity. Does not prohibit or affect arrangements in
effect before the effective date of this amendatory Act.
Effective immediately.
LRB9003490JSgcA
LRB9003490JSgcA
1 AN ACT to amend the Electronic Fund Transfer Act by
2 adding Section 47.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Electronic Fund Transfer Act is amended
6 by adding Section 47 as follows:
7 (205 ILCS 616/47 new)
8 Sec. 47. Reciprocity.
9 (a) An entity whose principal place of business is
10 located in a state other than this State may not process or
11 authorize interchange transactions initiated in this State
12 unless the state in which such entity has its principal place
13 of business permits an entity whose principal place of
14 business is located in this State to process and authorize
15 interchange transactions initiated in such other state on a
16 reciprocal basis.
17 (b) An entity that processes or authorizes interchange
18 transactions and is owned or otherwise controlled by or uses
19 a brand that is owned or otherwise controlled by another
20 entity whose principal place of business is not located in
21 this State shall be deemed to be an entity whose principal
22 place of business is located in a state other than this
23 State. The Commissioner shall have the power to determine the
24 principal place of business of a particular entity for
25 purposes of this Section.
26 (c) For purposes of this Section, "reciprocal basis"
27 means that an entity whose principal place of business is
28 located in this State has authority under the laws and
29 business practices of a state other than this State to
30 conduct business necessary to process and authorize
31 interchange transactions under qualifications and conditions
-2- LRB9003490JSgcA
1 that are no more restrictive than those imposed in such state
2 on entities whose principal place of business is located in
3 such state, as determined by the Commissioner.
4 (d) This Section shall not prohibit or otherwise affect
5 any business relationship in existence as of the effective
6 date of this amendatory Act of 1997 between a financial
7 institution and an entity, regardless of the entity's
8 principal place of business.
9 Section 99. Effective date. This Act takes effect upon
10 becoming law.