91st General Assembly
Summary of SB0890
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Senate Sponsors:
DILLARD-WEAVER,S-SHADID.

House Sponsors:
CAPPARELLI-LANG-HOWARD-BUGIELSKI

Short description: 
Y2K SAFETY AND SOUNDNESS ACT                                               

Synopsis of Bill as introduced:
        Creates the Illinois Financial Institutions Year 2000 Safety  and      
   Soundness  Act.   Provides  that no Illinois financial institution, as      
   defined, shall be liable to any person  for  actual  or  consequential      
   damages  in  an  action  alleging  the  failure  of a computer system.      
   Effective immediately.                                                      
        SENATE AMENDMENT NO. 1.                                                
          Adds reference to:                                                   
          205 ILCS 605/6 new                                                   
          815 ILCS 205/6                  from Ch. 17, par. 6413               
        Provides that an Illinois  financial  institution  shall  not  be      
   liable  for  damages  resulting from the alleged failure of a computer      
   system to a person not  in  privity  of  contract  with  the  Illinois      
   financial   institution.  Deletes  provisions  limiting  liability  to      
   instances  of   fraud  or  intentional  willful  and  wanton  conduct.      
   Requires  an  aggrieved  person  to  give  notice  to  the   financial      
   institution and allow the financial institution 30 days to resolve the      
   claim before bringing suit. Amends the Consumer Deposit Account Act         
   and the Interest Act to provide that certain charges erroneously im-        
   posed upon a customer as a result of a computer failure be rescinded.       
          JUDICIAL NOTE, H-AM 1 (Administrative Office of Ill. Courts)         
          Will neither increase nor decrease the number of judges needed.      
        HOUSE AMENDMENT NO. 1.                                                 
          Deletes reference to:                                                
          205 ILCS 605/6 new                                                   
          815 ILCS 205/6     .                                                 
          Adds reference to:                                                   
          205 ILCS 610/5 new                                                   
        Replaces everything  after  the  enacting  clause.   Creates  the      
   Illinois  Financial  Institutions  Year 2000 Safety and Soundness Act.      
   Provides that  Illinois  financial  institutions  are  not  liable  to      
   persons  for  damages  incurred  by persons not in privity of contract      
   with the financial institution in connection to a claim based  upon  a      
   computer related malfunction or failure.  Removes Consumer Installment      
   Loan   Act   licensees,  Residential  Mortgage  License  Act  of  1987      
   licensees, Sales Finance  Agency  Act  Licensees,  Retail  Installment      
   Sales  Act  licensees,  and Motor Vehicle Retail Installment Sales Act      
   licensees from the scope of the bill.  Requires an aggrieved person to      
   notify the financial institution and allow 60 days for  the  financial      
   institution  to  resolve  the claim before bringing an action.  Amends      
   the  Banking Emergencies Act  to  require  financial  institutions  to      
   waive  late fees and to delay by 30 days actions to collect debts from      
   consumers whose default is caused by a computer failure on the part of      
   a person other than the consumer.  Requires credit reporting  agencies      
   to allow consumers to rebut entries related to adverse information          
   caused by computer failure. Effective immediately.                          
 
Last action on Bill: PUBLIC ACT.............................. 91-0645

   Last action date: 99-08-20

           Location: Senate

 Amendments to Bill: AMENDMENTS ADOPTED: HOUSE -   1     SENATE -   1


   END OF INQUIRY 



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