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91_SB0890ham001
LRB9105132JSpcam03
1 AMENDMENT TO SENATE BILL 890
2 AMENDMENT NO. . Amend Senate Bill 890 by replacing
3 everything after the enacting clause with the following:
4 "Section 1. Short title. This Act may be cited as the
5 Illinois Financial Institutions Year 2000 Safety and
6 Soundness Act.
7 Section 5. Findings and declarations of policy. The
8 General Assembly hereby finds and declares that:
9 (1) the economic strength and general welfare of
10 Illinois depends on strong, safe and sound financial
11 institutions that command the highest levels of public
12 confidence among the citizens of this State;
13 (2) Illinois financial institutions are highly
14 monitored and closely supervised by federal and state
15 regulatory agencies which impose strict compliance
16 standards and conduct regular and frequent examinations
17 on these institutions;
18 (3) countless computer systems, software programs,
19 microchips, and integrated circuits have been created,
20 distributed, installed, and relied upon throughout this
21 State and the world which are not capable of recognizing
22 certain dates in 1999 and after December 31, 1999, and
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1 which will read dates in the year 2000 and thereafter as
2 if those dates represent the year 1900 or thereafter, or
3 which will fail to process those dates (commonly referred
4 to as the "Year 2000 Problem");
5 (4) the federal and state regulatory agencies which
6 regulate Illinois financial institutions have required
7 these institutions to undergo exhaustive planning,
8 remediation, testing, and contingency preparedness to
9 properly address the Year 2000 Problem with respect to
10 both internal and external mission critical computer
11 systems, internal and external non-mission critical
12 computer systems, third party vendors, customers, and
13 other possible sources of business interruption, and are
14 closely monitoring, examining, and supervising these
15 efforts on an institution by institution basis;
16 (5) Illinois financial institutions have expended
17 hundreds of millions of dollars on reprogramming,
18 replacing, and testing their computer systems to properly
19 address the Year 2000 Problem and continue to be
20 accountable to their federal and state regulatory
21 agencies for meeting the strict safety and soundness
22 standards imposed on them in connection with the Year
23 2000 Problem;
24 (6) Illinois financial institutions are integral to
25 the payments system and credit and savings bases relied
26 on by all other businesses, governmental entities, and
27 citizens of this State irrespective of whether those
28 businesses, governmental entities, and citizens have
29 addressed and implemented solutions in connection with
30 the Year 2000 Problem; and
31 (7) it is in the interests of this State to
32 recognize the unique and rigorous standards required of
33 Illinois financial institutions in connection with the
34 Year 2000 Problem and their integral role in maintaining
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1 the payments system and credit and savings bases in this
2 State and to preserve public confidence in these
3 institutions and ensure their safety and soundness,
4 thereby protecting and enhancing the economy and general
5 welfare of this State, by providing uniform and judicious
6 legal standards for Illinois financial institutions in
7 connection with the Year 2000 Problem.
8 Section 10. Definitions. For the purposes of this Act:
9 (a) The term "Illinois financial institution" means:
10 (1) a State bank, a national bank, or an
11 out-of-state bank, as those terms are defined in the
12 Illinois Banking Act, or any subsidiary of a State bank,
13 a national bank, or an out-of-state bank;
14 (2) a foreign banking corporation, as that term is
15 defined in the Foreign Banking Office Act, or any
16 subsidiary of a foreign banking corporation;
17 (3) a corporate fiduciary, as that term is defined
18 in the Corporate Fiduciary Act, or any subsidiary of a
19 corporate fiduciary;
20 (4) a savings bank organized under the Savings Bank
21 Act, an out-of-state savings bank chartered under the
22 laws of a state other than Illinois, a territory of the
23 United States, or the District of Columbia, or a federal
24 savings bank organized under federal law, or any
25 subsidiary of a savings bank, an out-of-state savings
26 bank, or a federal savings bank;
27 (5) an association or federal association, as those
28 terms are defined in the Illinois Savings and Loan Act of
29 1985, or any subsidiary of an association or federal
30 association;
31 (6) an out-of-state savings and loan association
32 chartered under the laws of a state other than Illinois,
33 a territory of the United States, or the District of
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1 Columbia, or a federal savings and loan association
2 organized under federal law whose principal business
3 office is located outside of Illinois, or any subsidiary
4 of an out-of-state savings and loan association or
5 federal savings and loan association whose principal
6 business office is located outside of Illinois;
7 (7) a credit union, as defined in the Illinois
8 Credit Union Act, or any subsidiary of a credit union; or
9 (8) a network owned by one or more financial
10 institutions, as those terms are defined in the
11 Electronic Fund Transfer Act.
12 The terms in this subsection (a) also shall be deemed to
13 include a direct or indirect holding company of an Illinois
14 financial institution in connection with a Year 2000 claim
15 involving the Illinois financial institution directly or
16 indirectly owned by such holding company.
17 (b) The term "Year 2000 failure" means any failure by any
18 device or system (including, without limitation, any computer
19 system and any microchip or integrated circuit embedded in
20 another device or product), or any software, firmware, or
21 other set or collection of processing instructions, however
22 constructed, in processing, calculating, comparing,
23 sequencing, displaying, storing, transmitting, or receiving
24 date-related data during the years 1999 and 2000 or from,
25 into, or between the twentieth century and the twenty-first
26 century, or the failure to recognize or accurately process
27 any specific date, or the failure to accurately account
28 for the status of the year 2000 as a leap year.
29 (c) The term "Year 2000 action" means a civil action of
30 any kind brought under Illinois law, except for a civil
31 action brought by a federal or state agency that regulates
32 the Illinois financial institution, in which:
33 (1) a Year 2000 claim is asserted; or
34 (2) any claim or defense is related, directly or
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1 indirectly, to a Year 2000 claim.
2 (d) The term "Year 2000 claim" means any claim or cause
3 of action of any kind, whether asserted by way of claim,
4 counterclaim, cross-claim, third-party claim, or otherwise,
5 in which a party or other person's loss or harm is alleged to
6 have resulted, directly or indirectly, from any act or
7 omission in connection with an actual or potential Year 2000
8 failure, except for claims involving physical injury to the
9 extent of the claim of physical injury.
10 (e) The term "physical injury" means any physical injury
11 to a natural person, including the death of the person, but
12 does not include mental suffering, emotional distress, or
13 other similar elements of injury that do not constitute
14 physical harm to a natural person.
15 Section 15. Action for damages. An Illinois financial
16 institution shall not be liable in a Year 2000 action brought
17 by or for damages incurred by persons not in privity of
18 contract with the Illinois financial institution in
19 connection with the transaction that gave rise to the Year
20 2000 claim.
21 Section 20. Notice of claim. No person shall bring a
22 Year 2000 action or make a Year 2000 claim against an
23 Illinois financial institution unless the person has given
24 written notice to the Illinois financial institution of the
25 person's Year 2000 claim and the Illinois financial
26 institution has been afforded at least 60 days after receipt
27 of the notice to resolve the claim.
28 Section 25. Employees, officers, and directors. No
29 employee, officer, or director of an Illinois financial
30 institution shall be liable to any person for damages in a
31 Year 2000 action, except for an act or omission that
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1 constitutes fraud; provided that this Section shall not
2 preclude a Year 2000 action against an Illinois financial
3 institution that is otherwise permitted by law based on the
4 actions of an employee, officer, or director of the financial
5 institution.
6 Section 30. Unaffected rights. The provisions of this
7 Act shall not affect the rights of parties under Articles 3,
8 4, 4A, and 8 of the Uniform Commercial Code and other rules
9 governing the processing of check, credit, debit, ACH, and
10 wire transactions, provided that such rights shall be
11 strictly construed to further the purposes and policies of
12 the provisions therein and the application of such
13 construction is not likely to impair the safety and soundness
14 of the Illinois financial institution.
15 Section 90. Severability. The provisions of this Act
16 are severable under Section 1.31 of the Statute on Statutes.
17 Section 92. The Banking Emergencies Act is amended by
18 adding Section 5 as follows:
19 (205 ILCS 610/5 new)
20 Sec. 5. Year 2000 Consumer Protections.
21 (a) For the purposes of this Section:
22 (1) the term "Illinois financial institution" means:
23 (A) a State bank, a national bank, or an
24 out-of-state bank, as those terms are defined in the
25 Illinois Banking Act, or any subsidiary of a State
26 bank, a national bank, or an out-of-state bank;
27 (B) a foreign banking corporation, as that
28 term is defined in the Foreign Banking Office Act,
29 or any subsidiary of a foreign banking corporation;
30 (C) a corporate fiduciary, as that term is
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1 defined in the Corporate Fiduciary Act, or any
2 subsidiary of a corporate fiduciary;
3 (D) a savings bank organized under the Savings
4 Bank Act, an out-of-state savings bank chartered
5 under the laws of a state other than Illinois, a
6 territory of the United States, or the District of
7 Columbia, or a federal savings bank organized under
8 federal law, or any subsidiary of a savings bank, an
9 out-of-state savings bank, or a federal savings
10 bank;
11 (E) an association or federal association, as
12 those terms are defined in the Illinois Savings and
13 Loan Act of 1985, or any subsidiary of an
14 association or federal association;
15 (F) an out-of-state savings and loan
16 association chartered under the laws of a state
17 other than Illinois, a territory of the United
18 States or the District of Columbia, or a federal
19 savings and loan association organized under federal
20 law whose principal business office is located
21 outside of Illinois, or any subsidiary of an
22 out-of-state savings and loan association or federal
23 savings and loan association whose principal
24 business office is located outside of Illinois;
25 (G) a credit union, as defined in the Illinois
26 Credit Union Act, or any subsidiary of a credit
27 union; or
28 (H) a network owned by one or more financial
29 institutions, as those terms are defined in the
30 Electronic Fund Transfer Act.
31 (2) the term "consumer" means an individual person;
32 and
33 (3) the term "Year 2000 failure" means any failure
34 by any device or system (including, without limitation,
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1 any computer system and any microchip or integrated
2 circuit embedded in another device or product), or any
3 software, firmware, or other set or collection of
4 processing instructions, however constructed, in
5 processing, calculating, comparing, sequencing,
6 displaying, storing, transmitting, or receiving
7 date-related data during the years 1999 and 2000 or from,
8 into, or between the twentieth century and the
9 twenty-first century, or the failure to recognize or
10 accurately process any specific date, or the failure to
11 accurately account for the status of the year 2000 as a
12 leap year.
13 (b) A financial institution shall stay an action for the
14 collection of a debt from a consumer for 30 days if the
15 consumer's default, failure to pay, breach, omission, or
16 other violation of the agreement that is the basis of the
17 collection action was caused by a Year 2000 failure on the
18 part of any person, provided the consumer notifies the
19 financial institution in writing of his or her inability to
20 meet the debt obligation within 30 days of discovering the
21 inability to meet the obligation due to the Year 2000
22 failure, and the notice sets forth:
23 (1) the identity of the person experiencing the
24 Year 2000 failure;
25 (2) the reason such person's Year 2000 failure
26 caused the consumer's inability to meet the obligation;
27 and
28 (3) the name and telephone number of a
29 representative of the person experiencing the Year 2000
30 failure who the financial institution may call for
31 purposes of verification.
32 This subsection shall not be applied more than once in
33 connection with the same debt of a consumer, nor shall it
34 otherwise affect the consumer's underlying debt obligation,
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1 the accrual of any interest on the debt obligation, or the
2 calculation of any period of delinquency for the debt
3 obligation.
4 (c) A financial institution shall not charge a late fee
5 on a consumer debt obligation, or if already charged shall
6 waive such late fee, if the consumer's failure to timely pay
7 under the agreement that provides the basis for the late fee
8 was caused by a Year 2000 failure on the part of any person,
9 provided the consumer notifies the financial institution in
10 writing of his or her inability to make timely payment within
11 30 days of discovering the inability to make timely payment
12 due to the Year 2000 failure, and the notice sets forth:
13 (1) the identity of the person experiencing the
14 Year 2000 failure;
15 (2) the reason such person's Year 2000 failure
16 caused the consumer's inability to make timely payment;
17 and
18 (3) the name and telephone number of a
19 representative of the person experiencing the Year 2000
20 failure who the financial institution may call for
21 purposes of verification.
22 This subsection shall not be applied more than once in
23 connection with the same debt of a consumer, nor shall it
24 otherwise affect the consumer's underlying debt obligation,
25 the accrual of any interest on the debt obligation, or the
26 calculation of any period of delinquency for the debt
27 obligation.
28 (d) A consumer may dispute directly with a credit
29 reporting agency operating in this State any negative credit
30 information reported in connection with the consumer
31 resulting from a Year 2000 failure on the part of any person
32 other than the consumer. If requested by the consumer
33 pursuant to this subsection, the credit reporting agency
34 shall include a statement prepared by the consumer of no more
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1 than 100 words in the consumer's file explaining the negative
2 credit information relating to such Year 2000 failure, and
3 the credit reporting agency shall include the individual's
4 statement in any report it provides to any person or entity
5 regarding the consumer. The credit reporting agency shall
6 not charge the consumer a fee for the inclusion of this
7 statement in the consumer's credit file.
8 Section 99. Effective Date. This Act takes effect upon
9 becoming law."