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90_SB0406enr
205 ILCS 690/1
205 ILCS 690/5
205 ILCS 690/15 new
205 ILCS 690/20 new
205 ILCS 690/25 new
205 ILCS 690/30 new
205 ILCS 690/35 new
205 ILCS 690/36 new
205 ILCS 690/37 new
205 ILCS 690/38 new
205 ILCS 690/39 new
Amends the Check Number Act. Changes the short title to
the Check Printer and Check Number Act. Provides that
persons not affiliated with a financial institution and
engaged in the business of printing checks must register with
the Commissioner of Banks and Real Estate. Requires these
check printers to verify the name, address, telephone number,
and social security number of check purchasers and to refuse
to distribute ordered checks if the information cannot be
verified. Requires these check printers to post a bond.
Creates a civil cause of action for persons damaged by a
check printer's failure to verify. Authorizes minimum
damages of $1,000 plus attorneys' fees. Provides that making
a false statement on the registration form is a Class 3
felony. Effective immediately.
LRB9003070JSgc
SB406 Enrolled LRB9003070JSgc
1 AN ACT to amend the Check Number Act by changing Sections
2 1 and 5 and adding Sections 15, 20, 21, 25, 30, 35, 36, 37,
3 38, and 39.
4 Be it enacted by the People of the State of Illinois,
5 represented in the General Assembly:
6 Section 5. The Check Number Act is amended by changing
7 Sections 1 and 5 and adding Sections 15, 20, 21, 25, 30, 35,
8 36, 37, 38, and 39 as follows:
9 (205 ILCS 690/1)
10 Sec. 1. Short title. This Act may be cited as the Check
11 Printer and Check Number Act.
12 (Source: P.A. 87-1143.)
13 (205 ILCS 690/5)
14 Sec. 5. Definitions. For the purposes of this Act:
15 "Commissioner" means the Commissioner of Banks and Real
16 Estate.
17 "Consumer-deposit account" means a demand or other
18 similar deposit account such as a checking, negotiable order
19 of withdrawal, money market, savings deposit, share, or
20 member account established and maintained by a natural person
21 with a financial institution and operated primarily for
22 personal, family, or household purposes.
23 "Financial institution" means (i) any bank subject to the
24 Illinois Banking Act, any savings bank subject to the Savings
25 Bank Act, any savings and loan association subject to the
26 Illinois Savings and Loan Act of 1985, or any credit union
27 subject to the Illinois Credit Union Act; (ii) and any
28 federally chartered commercial bank, savings bank, or savings
29 and loan association, or credit union organized and operated
30 in this State under the laws of the United States; and (iii)
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1 any business corporation, limited liability company, business
2 trust, partnership, joint venture, or other entity that is
3 directly or indirectly at least 50% owned by or commonly
4 owned with a financial institution.
5 "Check" means a writing that complies with the
6 requirements of Section 3-104 of the Uniform Commercial Code.
7 "Person" means any natural person or his legal
8 representative, partnership, corporation, company, trust,
9 business entity, or association.
10 (Source: P.A. 87-1143.)
11 (205 ILCS 690/15 new)
12 Sec. 15. Verification of check purchasers. A person,
13 other than a financial institution, who sells or distributes
14 checks that may be drawn against funds held by financial
15 institutions in a consumer-deposit account shall before
16 delivery of the checks to the person ordering them, verify
17 the accuracy of that person's name, address, telephone
18 number, and social security number. If the information is
19 not first verified, the seller or distributor shall not sell
20 or distribute the ordered checks. The sale or distribution
21 of checks to any person as to whom verification, as provided
22 for herein, has not first been made shall constitute a
23 business offense for which the fine shall be $1,000 for each
24 offense.
25 (205 ILCS 690/20 new)
26 Sec. 20. Registration. A person, other than a financial
27 institution, who sells or distributes checks that may be
28 drawn against funds held by financial institutions in a
29 consumer-deposit account shall register with the Commissioner
30 within 30 days after the effective date of this amendatory
31 Act of 1997 or within 30 days after commencement of doing
32 business in this State, whichever is later, and annually
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1 thereafter. The person shall register on such forms as may
2 be prescribed by the Commissioner, which shall include such
3 information as the Commissioner may deem necessary or
4 appropriate to carry out the purposes of this Act.
5 (205 ILCS 690/21 new)
6 Sec. 21. Fees. All moneys received by the Commissioner
7 under this Act shall be paid into, and all expenses incurred
8 by the Commissioner under this Act shall be paid from, the
9 Bank and Trust Company Fund. The Commissioner may prescribe
10 and assess reasonable fees to be paid by registrants to
11 recover the costs of administering this Act.
12 (205 ILCS 690/25 new)
13 Sec. 25. Bond; conditions; amount. At the time of each
14 registration, the registrant shall file with, and have
15 approved by, the Commissioner a surety bond issued by a
16 bonding company authorized to do business in this State in
17 the principal sum of $10,000. The bond shall run to the
18 Commissioner and shall be for any liability incurred by the
19 registrant for any violation of this Act, including damages
20 awarded in actions brought pursuant to Section 35.
21 From time to time, the Commissioner may determine the
22 amount of liabilities as described herein and may require the
23 registrant to file a bond in an additional sum if it is
24 determined to be necessary in accordance with the
25 requirements of this Section. In no case shall the bond be
26 less than the initial $10,000, nor more than the outstanding
27 liabilities if in excess of $10,000.
28 (205 ILCS 690/30 new)
29 Sec. 30. Civil action when the Commissioner believes a
30 person has violated, is violating, or will violate this Act
31 or a rule prescribed under this Act, the Commissioner may
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1 request the Attorney General to bring a civil action in
2 circuit court to enjoin the violation or enforce compliance
3 with this Act or a rule prescribed under this Act. A person
4 not complying with an injunction issued under this Section is
5 liable to the State of Illinois in a civil suit for an amount
6 of not more than $10,000.
7 (205 ILCS 690/35 new)
8 Sec. 35. Recovery of damages. A person who is damaged
9 by reason of the registrant's failure to verify as required
10 under this Act may sue such person for damages including, at
11 a minimum, liquidated damages in the amount of $1,000, plus
12 all costs and expenses, including reasonable attorneys' fees,
13 incurred in the prosecution of the action.
14 (205 ILCS 690/36 new)
15 Sec. 36. Criminal penalties. A person who willfully and
16 knowingly subscribes to or makes, or causes to be made, any
17 false statement on the registration form with intent to
18 deceive the Commissioner or his administrative officers
19 shall, upon conviction thereof, be guilty of a Class 3
20 felony.
21 (205 ILCS 690/37 new)
22 Sec. 37. Record retention. Records pertaining to or
23 constituting the procedures for and results of the
24 verification required under this Act shall be retained for a
25 period of 5 years from the date of receipt of the
26 information.
27 (205 ILCS 690/38 new)
28 Sec. 38. Rules. The Commissioner has the power to
29 promulgate reasonable rules for the purpose of administering
30 the provisions of this Act.
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1 (205 ILCS 690/39 new)
2 Sec. 39. Severability. The provisions of this Act are
3 severable under Section 1.31 of the Statute on Statutes.
4 Section 99. Effective date. This Act takes effect upon
5 becoming law.