State of Illinois
90th General Assembly
Legislation

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[ Introduced ][ Enrolled ][ Senate Amendment 001 ]

90_SB0406eng

      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 Engrossed                                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
SB406 Engrossed             -3-                LRB9003070JSgc
 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
SB406 Engrossed             -4-                LRB9003070JSgc
 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.
SB406 Engrossed             -5-                LRB9003070JSgc
 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.

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