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92_SB0119enr SB119 Enrolled LRB9204827JSpc 1 AN ACT in relation to financial regulation. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Illinois Banking Act is amended by 5 changing Section 48.1 as follows: 6 (205 ILCS 5/48.1) (from Ch. 17, par. 360) 7 Sec. 48.1. Customer financial records; confidentiality. 8 (a) For the purpose of this Section, the term "financial 9 records" means any original, any copy, or any summary of: 10 (1) a document granting signature authority over a 11 deposit or account; 12 (2) a statement, ledger card or other record on any 13 deposit or account, which shows each transaction in or 14 with respect to that account; 15 (3) a check, draft or money order drawn on a bank 16 or issued and payable by a bank; or 17 (4) any other item containing information 18 pertaining to any relationship established in the 19 ordinary course of a bank's business between a bank and 20 its customer, including financial statements or other 21 financial information provided by the customer. 22 (b) This Section does not prohibit: 23 (1) The preparation, examination, handling or 24 maintenance of any financial records by any officer, 25 employee or agent of a bank having custody of the 26 records, or the examination of the records by a certified 27 public accountant engaged by the bank to perform an 28 independent audit. 29 (2) The examination of any financial records by, or 30 the furnishing of financial records by a bank to, any 31 officer, employee or agent of (i) the Commissioner of SB119 Enrolled -2- LRB9204827JSpc 1 Banks and Real Estate, (ii) after May 31, 1997, a state 2 regulatory authority authorized to examine a branch of a 3 State bank located in another state, (iii) the 4 Comptroller of the Currency, (iv) the Federal Reserve 5 Board, or (v) the Federal Deposit Insurance Corporation 6 for use solely in the exercise of his duties as an 7 officer, employee, or agent. 8 (3) The publication of data furnished from 9 financial records relating to customers where the data 10 cannot be identified to any particular customer or 11 account. 12 (4) The making of reports or returns required under 13 Chapter 61 of the Internal Revenue Code of 1986. 14 (5) Furnishing information concerning the dishonor 15 of any negotiable instrument permitted to be disclosed 16 under the Uniform Commercial Code. 17 (6) The exchange in the regular course of business 18 of (i) credit information between a bank and other banks 19 or financial institutions or commercial enterprises, 20 directly or through a consumer reporting agency or (ii) 21 financial records or information derived from financial 22 records between a bank and other banks or financial 23 institutions or commercial enterprises for the purpose of 24 conducting due diligence pursuant to a purchase or sale 25 involving the bank or assets or liabilities of the bank. 26 (7) The furnishing of information to the 27 appropriate law enforcement authorities where the bank 28 reasonably believes it has been the victim of a crime. 29 (8) The furnishing of information under the Uniform 30 Disposition of Unclaimed Property Act. 31 (9) The furnishing of information under the 32 Illinois Income Tax Act and the Illinois Estate and 33 Generation-Skipping Transfer Tax Act. 34 (10) The furnishing of information under the SB119 Enrolled -3- LRB9204827JSpc 1 federal Currency and Foreign Transactions Reporting Act 2 Title 31, United States Code, Section 1051 et seq. 3 (11) The furnishing of information under any other 4 statute that by its terms or by regulations promulgated 5 thereunder requires the disclosure of financial records 6 other than by subpoena, summons, warrant, or court order. 7 (12) The furnishing of information about the 8 existence of an account of a person to a judgment 9 creditor of that person who has made a written request 10 for that information. 11 (13) The exchange in the regular course of business 12 of information between commonly owned banks in connection 13 with a transaction authorized under paragraph (23) of 14 Section 5 and conducted at an affiliate facility. 15 (14) The furnishing of information in accordance 16 with the federal Personal Responsibility and Work 17 Opportunity Reconciliation Act of 1996. Any bank governed 18 by this Act shall enter into an agreement for data 19 exchanges with a State agency provided the State agency 20 pays to the bank a reasonable fee not to exceed its 21 actual cost incurred. A bank providing information in 22 accordance with this item shall not be liable to any 23 account holder or other person for any disclosure of 24 information to a State agency, for encumbering or 25 surrendering any assets held by the bank in response to a 26 lien or order to withhold and deliver issued by a State 27 agency, or for any other action taken pursuant to this 28 item, including individual or mechanical errors, provided 29 the action does not constitute gross negligence or 30 willful misconduct. A bank shall have no obligation to 31 hold, encumber, or surrender assets until it has been 32 served with a subpoena, summons, warrant, court or 33 administrative order, lien, or levy. 34 (15) The exchange in the regular course of business SB119 Enrolled -4- LRB9204827JSpc 1 of information between a bank and any commonly owned 2 affiliate of the bank, subject to the provisions of the 3 Financial Institutions Insurance Sales Law. 4 (16) The furnishing of information to law 5 enforcement authorities, the Illinois Department on Aging 6 and its regional administrative and provider agencies, 7 the Department of Human Services Office of Inspector 8 General, or public guardians, if the bank suspects that a 9 customer who is an elderly or disabled person has been or 10 may become the victim of financial exploitation. For the 11 purposes of this item (16), the term: (i) "elderly 12 person" means a person who is 60 or more years of age, 13 (ii) "disabled person" means a person who has or 14 reasonably appears to the bank to have a physical or 15 mental disability that impairs his or her ability to seek 16 or obtain protection from or prevent financial 17 exploitation, and (iii) "financial exploitation" means 18 tortious or illegal use of the assets or resources of an 19 elderly or disabled person, and includes, without 20 limitation, misappropriation of the elderly or disabled 21 person's assets or resources by undue influence, breach 22 of fiduciary relationship, intimidation, fraud, 23 deception, extortion, or the use of assets or resources 24 in any manner contrary to law. A bank or person 25 furnishing information pursuant to this item (16) shall 26 be entitled to the same rights and protections as a 27 person furnishing information under the Elder Abuse and 28 Neglect Act and the Illinois Domestic Violence Act of 29 1986. 30 (17) The disclosure of financial records or 31 information as necessary to effect, administer, or 32 enforce a transaction requested or authorized by the 33 customer, or in connection with: 34 (A) servicing or processing a financial SB119 Enrolled -5- LRB9204827JSpc 1 product or service requested or authorized by the 2 customer; 3 (B) maintaining or servicing a customer's 4 account with the bank; or 5 (C) a proposed or actual securitization or 6 secondary market sale (including sales of servicing 7 rights) related to a transaction of a customer. 8 Nothing in this item (17), however, authorizes the 9 sale of the financial records or information of a 10 customer without the consent of the customer. 11 (18) The disclosure of financial records or 12 information as necessary to protect against actual or 13 potential fraud, unauthorized transactions, claims, or 14 other liability. 15 (19) (a) The disclosure of financial records or 16 information related to a private label credit program 17 between a financial institution and a private label party 18 in connection with that private label credit program. 19 Such information is limited to outstanding balance, 20 available credit, payment and performance and account 21 history, product references, purchase information, and 22 information related to the identity of the customer. 23 (b) (l) For purposes of this paragraph (19) of 24 subsection (b) of Section 48.1, a "private label credit 25 program" means a credit program involving a financial 26 institution and a private label party that is used by a 27 customer of the financial institution and the private 28 label party primarily for payment for goods or services 29 sold, manufactured, or distributed by a private label 30 party. 31 (2) For purposes of this paragraph (19) of 32 subsection (b) of Section 48.l, a "private label party" 33 means, with respect to a private label credit program, 34 any of the following: a retailer, a merchant, a SB119 Enrolled -6- LRB9204827JSpc 1 manufacturer, a trade group, or any such person's 2 affiliate, subsidiary, member, agent, or service 3 provider. 4 (c) Except as otherwise provided by this Act, a bank may 5 not disclose to any person, except to the customer or his 6 duly authorized agent, any financial records or financial 7 information obtained from financial records relating to that 8 customer of that bank unless: 9 (1) the customer has authorized disclosure to the 10 person; 11 (2) the financial records are disclosed in response 12 to a lawful subpoena, summons, warrant or court order 13 which meets the requirements of subsection (d) of this 14 Section; or 15 (3) the bank is attempting to collect an obligation 16 owed to the bank and the bank complies with the 17 provisions of Section 2I of the Consumer Fraud and 18 Deceptive Business Practices Act. 19 (d) A bank shall disclose financial records under 20 paragraph (2) of subsection (c) of this Section under a 21 lawful subpoena, summons, warrant, or court order only after 22 the bank mails a copy of the subpoena, summons, warrant, or 23 court order to the person establishing the relationship with 24 the bank, if living, and, otherwise his personal 25 representative, if known, at his last known address by first 26 class mail, postage prepaid, unless the bank is specifically 27 prohibited from notifying the person by order of court or by 28 applicable State or federal law. A bank shall not mail a 29 copy of a subpoena to any person pursuant to this subsection 30 if the subpoena was issued by a grand jury under the 31 Statewide Grand Jury Act. 32 (e) Any officer or employee of a bank who knowingly and 33 willfully furnishes financial records in violation of this 34 Section is guilty of a business offense and, upon conviction, SB119 Enrolled -7- LRB9204827JSpc 1 shall be fined not more than $1,000. 2 (f) Any person who knowingly and willfully induces or 3 attempts to induce any officer or employee of a bank to 4 disclose financial records in violation of this Section is 5 guilty of a business offense and, upon conviction, shall be 6 fined not more than $1,000. 7 (g) A bank shall be reimbursed for costs that are 8 reasonably necessary and that have been directly incurred in 9 searching for, reproducing, or transporting books, papers, 10 records, or other data of a customer required or requested to 11 be produced pursuant to a lawful subpoena, summons, warrant, 12 or court order. The Commissioner shall determine the rates 13 and conditions under which payment may be made. 14 (Source: P.A. 91-330, eff. 7-29-99; 91-929, eff. 12-15-00; 15 92-483, eff. 8-23-01.) 16 Section 10. The Illinois Savings and Loan Act of 1985 is 17 amended by changing Section 3-8 as follows: 18 (205 ILCS 105/3-8) (from Ch. 17, par. 3303-8) 19 Sec. 3-8. Access to books and records; communication 20 with members. 21 (a) Every member or holder of capital shall have the 22 right to inspect the books and records of the association 23 that pertain to his account. Otherwise, the right of 24 inspection and examination of the books and records shall be 25 limited as provided in this Act, and no other person shall 26 have access to the books and records or shall be entitled to 27 a list of the members. 28 (b) For the purpose of this Section, the term "financial 29 records" means any original, any copy, or any summary of (i) 30 a document granting signature authority over a deposit or 31 account; (ii) a statement, ledger card, or other record on 32 any deposit or account that shows each transaction in or with SB119 Enrolled -8- LRB9204827JSpc 1 respect to that account; (iii) a check, draft, or money order 2 drawn on an association or issued and payable by an 3 association; or (iv) any other item containing information 4 pertaining to any relationship established in the ordinary 5 course of an association's business between an association 6 and its customer, including financial statements or other 7 financial information provided by the member or holder of 8 capital. 9 (c) This Section does not prohibit: 10 (1) The preparation, examination, handling, or 11 maintenance of any financial records by any officer, 12 employee, or agent of an association having custody of 13 those records or the examination of those records by a 14 certified public accountant engaged by the association to 15 perform an independent audit. 16 (2) The examination of any financial records by, or 17 the furnishing of financial records by an association to, 18 any officer, employee, or agent of the Commissioner of 19 Banks and Real Estate, Federal Savings and Loan Insurance 20 Corporation and its successors, Federal Deposit Insurance 21 Corporation, Resolution Trust Corporation and its 22 successors, Federal Home Loan Bank Board and its 23 successors, Office of Thrift Supervision, Federal Housing 24 Finance Board, Board of Governors of the Federal Reserve 25 System, any Federal Reserve Bank, or the Office of the 26 Comptroller of the Currency for use solely in the 27 exercise of his duties as an officer, employee, or agent. 28 (3) The publication of data furnished from 29 financial records relating to members or holders of 30 capital where the data cannot be identified to any 31 particular member, holder of capital, or account. 32 (4) The making of reports or returns required under 33 Chapter 61 of the Internal Revenue Code of 1986. 34 (5) Furnishing information concerning the dishonor SB119 Enrolled -9- LRB9204827JSpc 1 of any negotiable instrument permitted to be disclosed 2 under the Uniform Commercial Code. 3 (6) The exchange in the regular course of business 4 of (i) credit information between an association and 5 other associations or financial institutions or 6 commercial enterprises, directly or through a consumer 7 reporting agency or (ii) financial records or information 8 derived from financial records between an association and 9 other associations or financial institutions or 10 commercial enterprises for the purpose of conducting due 11 diligence pursuant to a purchase or sale involving the 12 association or assets or liabilities of the association. 13 (7) The furnishing of information to the 14 appropriate law enforcement authorities where the 15 association reasonably believes it has been the victim of 16 a crime. 17 (8) The furnishing of information pursuant to the 18 Uniform Disposition of Unclaimed Property Act. 19 (9) The furnishing of information pursuant to the 20 Illinois Income Tax Act and the Illinois Estate and 21 Generation-Skipping Transfer Tax Act. 22 (10) The furnishing of information pursuant to the 23 federal "Currency and Foreign Transactions Reporting 24 Act", (Title 31, United States Code, Section 1051 et 25 seq.). 26 (11) The furnishing of information pursuant to any 27 other statute that by its terms or by regulations 28 promulgated thereunder requires the disclosure of 29 financial records other than by subpoena, summons, 30 warrant, or court order. 31 (12) The exchange of information between an 32 association and an affiliate of the association; as used 33 in this item, "affiliate" includes any company, 34 partnership, or organization that controls, is controlled SB119 Enrolled -10- LRB9204827JSpc 1 by, or is under common control with an association. 2 (13) The furnishing of information in accordance 3 with the federal Personal Responsibility and Work 4 Opportunity Reconciliation Act of 1996. Any association 5 governed by this Act shall enter into an agreement for 6 data exchanges with a State agency provided the State 7 agency pays to the association a reasonable fee not to 8 exceed its actual cost incurred. An association 9 providing information in accordance with this item shall 10 not be liable to any account holder or other person for 11 any disclosure of information to a State agency, for 12 encumbering or surrendering any assets held by the 13 association in response to a lien or order to withhold 14 and deliver issued by a State agency, or for any other 15 action taken pursuant to this item, including individual 16 or mechanical errors, provided the action does not 17 constitute gross negligence or willful misconduct. An 18 association shall have no obligation to hold, encumber, 19 or surrender assets until it has been served with a 20 subpoena, summons, warrant, court or administrative 21 order, lien, or levy. 22 (14) The furnishing of information to law 23 enforcement authorities, the Illinois Department on Aging 24 and its regional administrative and provider agencies, 25 the Department of Human Services Office of Inspector 26 General, or public guardians, if the association suspects 27 that a customer who is an elderly or disabled person has 28 been or may become the victim of financial exploitation. 29 For the purposes of this item (14), the term: (i) 30 "elderly person" means a person who is 60 or more years 31 of age, (ii) "disabled person" means a person who has or 32 reasonably appears to the association to have a physical 33 or mental disability that impairs his or her ability to 34 seek or obtain protection from or prevent financial SB119 Enrolled -11- LRB9204827JSpc 1 exploitation, and (iii) "financial exploitation" means 2 tortious or illegal use of the assets or resources of an 3 elderly or disabled person, and includes, without 4 limitation, misappropriation of the elderly or disabled 5 person's assets or resources by undue influence, breach 6 of fiduciary relationship, intimidation, fraud, 7 deception, extortion, or the use of assets or resources 8 in any manner contrary to law. An association or person 9 furnishing information pursuant to this item (14) shall 10 be entitled to the same rights and protections as a 11 person furnishing information under the Elder Abuse and 12 Neglect Act and the Illinois Domestic Violence Act of 13 1986. 14 (15) The disclosure of financial records or 15 information as necessary to effect, administer, or 16 enforce a transaction requested or authorized by the 17 member or holder of capital, or in connection with: 18 (A) servicing or processing a financial 19 product or service requested or authorized by the 20 member or holder of capital; 21 (B) maintaining or servicing an account of a 22 member or holder of capital with the association; or 23 (C) a proposed or actual securitization or 24 secondary market sale (including sales of servicing 25 rights) related to a transaction of a member or 26 holder of capital. 27 Nothing in this item (15), however, authorizes the 28 sale of the financial records or information of a member 29 or holder of capital without the consent of the member or 30 holder of capital. 31 (16) The disclosure of financial records or 32 information as necessary to protect against or prevent 33 actual or potential fraud, unauthorized transactions, 34 claims, or other liability. SB119 Enrolled -12- LRB9204827JSpc 1 (17) (a) The disclosure of financial records or 2 information related to a private label credit program 3 between a financial institution and a private label party 4 in connection with that private label credit program. 5 Such information is limited to outstanding balance, 6 available credit, payment and performance and account 7 history, product references, purchase information, and 8 information related to the identity of the customer. 9 (b) (l) For purposes of this paragraph (17) of 10 subsection (c) of Section 3-8, a "private label credit 11 program" means a credit program involving a financial 12 institution and a private label party that is used by a 13 customer of the financial institution and the private 14 label party primarily for payment for goods or services 15 sold, manufactured, or distributed by a private label 16 party. 17 (2) For purposes of this paragraph (17) of 18 subsection (c) of Section 3-8, a "private label party" 19 means, with respect to a private label credit program, 20 any of the following: a retailer, a merchant, a 21 manufacturer, a trade group, or any such person's 22 affiliate, subsidiary, member, agent, or service 23 provider. 24 (d) An association may not disclose to any person, 25 except to the member or holder of capital or his duly 26 authorized agent, any financial records relating to that 27 member or holder of capital of that association unless: 28 (1) The member or holder of capital has authorized 29 disclosure to the person; or 30 (2) The financial records are disclosed in response 31 to a lawful subpoena, summons, warrant, or court order 32 that meets the requirements of subsection (e) of this 33 Section. 34 (e) An association shall disclose financial records SB119 Enrolled -13- LRB9204827JSpc 1 under subsection (d) of this Section pursuant to a lawful 2 subpoena, summons, warrant, or court order only after the 3 association mails a copy of the subpoena, summons, warrant, 4 or court order to the person establishing the relationship 5 with the association, if living, and, otherwise, his personal 6 representative, if known, at his last known address by first 7 class mail, postage prepaid, unless the association is 8 specifically prohibited from notifying that person by order 9 of court. 10 (f) (1) Any officer or employee of an association who 11 knowingly and willfully furnishes financial records in 12 violation of this Section is guilty of a business offense 13 and, upon conviction, shall be fined not more than $1,000. 14 (2) Any person who knowingly and willfully induces or 15 attempts to induce any officer or employee of an association 16 to disclose financial records in violation of this Section is 17 guilty of a business offense and, upon conviction, shall be 18 fined not more than $1,000. 19 (g) However, if any member desires to communicate with 20 the other members of the association with reference to any 21 question pending or to be presented at a meeting of the 22 members, the association shall give him upon request a 23 statement of the approximate number of members entitled to 24 vote at the meeting and an estimate of the cost of preparing 25 and mailing the communication. The requesting member then 26 shall submit the communication to the Commissioner who, if he 27 finds it to be appropriate and truthful, shall direct that it 28 be prepared and mailed to the members upon the requesting 29 member's payment or adequate provision for payment of the 30 expenses of preparation and mailing. 31 (h) An association shall be reimbursed for costs that 32 are necessary and that have been directly incurred in 33 searching for, reproducing, or transporting books, papers, 34 records, or other data of a customer required to be SB119 Enrolled -14- LRB9204827JSpc 1 reproduced pursuant to a lawful subpoena, warrant, or court 2 order. 3 (Source: P.A. 91-929, eff. 12-15-00; 92-483, eff. 8-23-01.) 4 Section 15. The Savings Bank Act is amended by changing 5 Section 4013 as follows: 6 (205 ILCS 205/4013) (from Ch. 17, par. 7304-13) 7 Sec. 4013. Access to books and records; communication 8 with members and shareholders. 9 (a) Every member or shareholder shall have the right to 10 inspect books and records of the savings bank that pertain to 11 his accounts. Otherwise, the right of inspection and 12 examination of the books and records shall be limited as 13 provided in this Act, and no other person shall have access 14 to the books and records nor shall be entitled to a list of 15 the members or shareholders. 16 (b) For the purpose of this Section, the term "financial 17 records" means any original, any copy, or any summary of (1) 18 a document granting signature authority over a deposit or 19 account; (2) a statement, ledger card, or other record on any 20 deposit or account that shows each transaction in or with 21 respect to that account; (3) a check, draft, or money order 22 drawn on a savings bank or issued and payable by a savings 23 bank; or (4) any other item containing information pertaining 24 to any relationship established in the ordinary course of a 25 savings bank's business between a savings bank and its 26 customer, including financial statements or other financial 27 information provided by the member or shareholder. 28 (c) This Section does not prohibit: 29 (1) The preparation examination, handling, or 30 maintenance of any financial records by any officer, 31 employee, or agent of a savings bank having custody of 32 records or examination of records by a certified public SB119 Enrolled -15- LRB9204827JSpc 1 accountant engaged by the savings bank to perform an 2 independent audit. 3 (2) The examination of any financial records by, or 4 the furnishing of financial records by a savings bank to, 5 any officer, employee, or agent of the Commissioner of 6 Banks and Real Estate or the Federal Deposit Insurance 7 Corporation for use solely in the exercise of his duties 8 as an officer, employee, or agent. 9 (3) The publication of data furnished from 10 financial records relating to members or holders of 11 capital where the data cannot be identified to any 12 particular member, shareholder, or account. 13 (4) The making of reports or returns required under 14 Chapter 61 of the Internal Revenue Code of 1986. 15 (5) Furnishing information concerning the dishonor 16 of any negotiable instrument permitted to be disclosed 17 under the Uniform Commercial Code. 18 (6) The exchange in the regular course of business 19 of (i) credit information between a savings bank and 20 other savings banks or financial institutions or 21 commercial enterprises, directly or through a consumer 22 reporting agency or (ii) financial records or information 23 derived from financial records between a savings bank and 24 other savings banks or financial institutions or 25 commercial enterprises for the purpose of conducting due 26 diligence pursuant to a purchase or sale involving the 27 savings bank or assets or liabilities of the savings 28 bank. 29 (7) The furnishing of information to the 30 appropriate law enforcement authorities where the savings 31 bank reasonably believes it has been the victim of a 32 crime. 33 (8) The furnishing of information pursuant to the 34 Uniform Disposition of Unclaimed Property Act. SB119 Enrolled -16- LRB9204827JSpc 1 (9) The furnishing of information pursuant to the 2 Illinois Income Tax Act and the Illinois Estate and 3 Generation-Skipping Transfer Tax Act. 4 (10) The furnishing of information pursuant to the 5 federal "Currency and Foreign Transactions Reporting 6 Act", (Title 31, United States Code, Section 1051 et 7 seq.). 8 (11) The furnishing of information pursuant to any 9 other statute which by its terms or by regulations 10 promulgated thereunder requires the disclosure of 11 financial records other than by subpoena, summons, 12 warrant, or court order. 13 (12) The furnishing of information in accordance 14 with the federal Personal Responsibility and Work 15 Opportunity Reconciliation Act of 1996. Any savings bank 16 governed by this Act shall enter into an agreement for 17 data exchanges with a State agency provided the State 18 agency pays to the savings bank a reasonable fee not to 19 exceed its actual cost incurred. A savings bank 20 providing information in accordance with this item shall 21 not be liable to any account holder or other person for 22 any disclosure of information to a State agency, for 23 encumbering or surrendering any assets held by the 24 savings bank in response to a lien or order to withhold 25 and deliver issued by a State agency, or for any other 26 action taken pursuant to this item, including individual 27 or mechanical errors, provided the action does not 28 constitute gross negligence or willful misconduct. A 29 savings bank shall have no obligation to hold, encumber, 30 or surrender assets until it has been served with a 31 subpoena, summons, warrant, court or administrative 32 order, lien, or levy. 33 (13) The furnishing of information to law 34 enforcement authorities, the Illinois Department on Aging SB119 Enrolled -17- LRB9204827JSpc 1 and its regional administrative and provider agencies, 2 the Department of Human Services Office of Inspector 3 General, or public guardians, if the savings bank 4 suspects that a customer who is an elderly or disabled 5 person has been or may become the victim of financial 6 exploitation. For the purposes of this item (13), the 7 term: (i) "elderly person" means a person who is 60 or 8 more years of age, (ii) "disabled person" means a person 9 who has or reasonably appears to the savings bank to have 10 a physical or mental disability that impairs his or her 11 ability to seek or obtain protection from or prevent 12 financial exploitation, and (iii) "financial 13 exploitation" means tortious or illegal use of the assets 14 or resources of an elderly or disabled person, and 15 includes, without limitation, misappropriation of the 16 elderly or disabled person's assets or resources by undue 17 influence, breach of fiduciary relationship, 18 intimidation, fraud, deception, extortion, or the use of 19 assets or resources in any manner contrary to law. A 20 savings bank or person furnishing information pursuant to 21 this item (13) shall be entitled to the same rights and 22 protections as a person furnishing information under the 23 Elder Abuse and Neglect Act and the Illinois Domestic 24 Violence Act of 1986. 25 (14) The disclosure of financial records or 26 information as necessary to effect, administer, or 27 enforce a transaction requested or authorized by the 28 member or holder of capital, or in connection with: 29 (A) servicing or processing a financial 30 product or service requested or authorized by the 31 member or holder of capital; 32 (B) maintaining or servicing an account of a 33 member or holder of capital with the savings bank; 34 or SB119 Enrolled -18- LRB9204827JSpc 1 (C) a proposed or actual securitization or 2 secondary market sale (including sales of servicing 3 rights) related to a transaction of a member or 4 holder of capital. 5 Nothing in this item (14), however, authorizes the 6 sale of the financial records or information of a member 7 or holder of capital without the consent of the member or 8 holder of capital. 9 (15) The exchange in the regular course of business 10 of information between a savings bank and any commonly 11 owned affiliate of the savings bank, subject to the 12 provisions of the Financial Institutions Insurance Sales 13 Law. 14 (16) The disclosure of financial records or 15 information as necessary to protect against or prevent 16 actual or potential fraud, unauthorized transactions, 17 claims, or other liability. 18 (17) (a) The disclosure of financial records or 19 information related to a private label credit program 20 between a financial institution and a private label party 21 in connection with that private label credit program. 22 Such information is limited to outstanding balance, 23 available credit, payment and performance and account 24 history, product references, purchase information, and 25 information related to the identity of the customer. 26 (b) (l) For purposes of this paragraph (17) of 27 subsection (c) of Section 4013, a "private label credit 28 program" means a credit program involving a financial 29 institution and a private label party that is used by a 30 customer of the financial institution and the private 31 label party primarily for payment for goods or services 32 sold, manufactured, or distributed by a private label 33 party. 34 (2) For purposes of this paragraph (17) of SB119 Enrolled -19- LRB9204827JSpc 1 subsection (c) of Section 4013, a "private label party" 2 means, with respect to a private label credit program, 3 any of the following: a retailer, a merchant, a 4 manufacturer, a trade group, or any such person's 5 affiliate, subsidiary, member, agent, or service 6 provider. 7 (d) A savings bank may not disclose to any person, 8 except to the member or holder of capital or his duly 9 authorized agent, any financial records relating to that 10 member or shareholder of the savings bank unless: 11 (1) the member or shareholder has authorized 12 disclosure to the person; or 13 (2) the financial records are disclosed in response 14 to a lawful subpoena, summons, warrant, or court order 15 that meets the requirements of subsection (e) of this 16 Section. 17 (e) A savings bank shall disclose financial records 18 under subsection (d) of this Section pursuant to a lawful 19 subpoena, summons, warrant, or court order only after the 20 savings bank mails a copy of the subpoena, summons, warrant, 21 or court order to the person establishing the relationship 22 with the savings bank, if living, and otherwise, his personal 23 representative, if known, at his last known address by first 24 class mail, postage prepaid, unless the savings bank is 25 specifically prohibited from notifying the person by order of 26 court. 27 (f) Any officer or employee of a savings bank who 28 knowingly and willfully furnishes financial records in 29 violation of this Section is guilty of a business offense 30 and, upon conviction, shall be fined not more than $1,000. 31 (g) Any person who knowingly and willfully induces or 32 attempts to induce any officer or employee of a savings bank 33 to disclose financial records in violation of this Section is 34 guilty of a business offense and, upon conviction, shall be SB119 Enrolled -20- LRB9204827JSpc 1 fined not more than $1,000. 2 (h) If any member or shareholder desires to communicate 3 with the other members or shareholders of the savings bank 4 with reference to any question pending or to be presented at 5 an annual or special meeting, the savings bank shall give 6 that person, upon request, a statement of the approximate 7 number of members or shareholders entitled to vote at the 8 meeting and an estimate of the cost of preparing and mailing 9 the communication. The requesting member shall submit the 10 communication to the Commissioner who, upon finding it to be 11 appropriate and truthful, shall direct that it be prepared 12 and mailed to the members upon the requesting member's or 13 shareholder's payment or adequate provision for payment of 14 the expenses of preparation and mailing. 15 (i) A savings bank shall be reimbursed for costs that 16 are necessary and that have been directly incurred in 17 searching for, reproducing, or transporting books, papers, 18 records, or other data of a customer required to be 19 reproduced pursuant to a lawful subpoena, warrant, or court 20 order. 21 (j) Notwithstanding the provisions of this Section, a 22 savings bank may sell or otherwise make use of lists of 23 customers' names and addresses. All other information 24 regarding a customer's account are subject to the disclosure 25 provisions of this Section. At the request of any customer, 26 that customer's name and address shall be deleted from any 27 list that is to be sold or used in any other manner beyond 28 identification of the customer's accounts. 29 (Source: P.A. 91-929, eff. 12-15-00; 92-483, eff. 8-23-01.) 30 Section 20. The Illinois Credit Union Act is amended by 31 changing Section 10 as follows: 32 (205 ILCS 305/10) (from Ch. 17, par. 4411) SB119 Enrolled -21- LRB9204827JSpc 1 Sec. 10. Credit union records; member financial records. 2 (1) A credit union shall establish and maintain books, 3 records, accounting systems and procedures which accurately 4 reflect its operations and which enable the Department to 5 readily ascertain the true financial condition of the credit 6 union and whether it is complying with this Act. 7 (2) A photostatic or photographic reproduction of any 8 credit union records shall be admissible as evidence of 9 transactions with the credit union. 10 (3) (a) For the purpose of this Section, the term 11 "financial records" means any original, any copy, or any 12 summary of (1) a document granting signature authority 13 over an account, (2) a statement, ledger card or other 14 record on any account which shows each transaction in or 15 with respect to that account, (3) a check, draft or money 16 order drawn on a financial institution or other entity or 17 issued and payable by or through a financial institution 18 or other entity, or (4) any other item containing 19 information pertaining to any relationship established in 20 the ordinary course of business between a credit union 21 and its member, including financial statements or other 22 financial information provided by the member. 23 (b) This Section does not prohibit: 24 (1) The preparation, examination, handling or 25 maintenance of any financial records by any officer, 26 employee or agent of a credit union having custody 27 of such records, or the examination of such records 28 by a certified public accountant engaged by the 29 credit union to perform an independent audit. 30 (2) The examination of any financial records 31 by or the furnishing of financial records by a 32 credit union to any officer, employee or agent of 33 the Department, the National Credit Union 34 Administration, Federal Reserve board or any insurer SB119 Enrolled -22- LRB9204827JSpc 1 of share accounts for use solely in the exercise of 2 his duties as an officer, employee or agent. 3 (3) The publication of data furnished from 4 financial records relating to members where the data 5 cannot be identified to any particular customer of 6 account. 7 (4) The making of reports or returns required 8 under Chapter 61 of the Internal Revenue Code of 9 1954. 10 (5) Furnishing information concerning the 11 dishonor of any negotiable instrument permitted to 12 be disclosed under the Uniform Commercial Code. 13 (6) The exchange in the regular course of 14 business of (i) credit information between a credit 15 union and other credit unions or financial 16 institutions or commercial enterprises, directly or 17 through a consumer reporting agency or (ii) 18 financial records or information derived from 19 financial records between a credit union and other 20 credit unions or financial institutions or 21 commercial enterprises for the purpose of conducting 22 due diligence pursuant to a merger or a purchase or 23 sale of assets or liabilities of the credit union. 24 (7) The furnishing of information to the 25 appropriate law enforcement authorities where the 26 credit union reasonably believes it has been the 27 victim of a crime. 28 (8) The furnishing of information pursuant to 29 the Uniform Disposition of Unclaimed Property Act. 30 (9) The furnishing of information pursuant to 31 the Illinois Income Tax Act and the Illinois Estate 32 and Generation-Skipping Transfer Tax Act. 33 (10) The furnishing of information pursuant to 34 the federal "Currency and Foreign Transactions SB119 Enrolled -23- LRB9204827JSpc 1 Reporting Act", Title 31, United States Code, 2 Section 1051 et sequentia. 3 (11) The furnishing of information pursuant to 4 any other statute which by its terms or by 5 regulations promulgated thereunder requires the 6 disclosure of financial records other than by 7 subpoena, summons, warrant or court order. 8 (12) The furnishing of information in 9 accordance with the federal Personal Responsibility 10 and Work Opportunity Reconciliation Act of 1996. Any 11 credit union governed by this Act shall enter into 12 an agreement for data exchanges with a State agency 13 provided the State agency pays to the credit union a 14 reasonable fee not to exceed its actual cost 15 incurred. A credit union providing information in 16 accordance with this item shall not be liable to any 17 account holder or other person for any disclosure of 18 information to a State agency, for encumbering or 19 surrendering any assets held by the credit union in 20 response to a lien or order to withhold and deliver 21 issued by a State agency, or for any other action 22 taken pursuant to this item, including individual or 23 mechanical errors, provided the action does not 24 constitute gross negligence or willful misconduct. A 25 credit union shall have no obligation to hold, 26 encumber, or surrender assets until it has been 27 served with a subpoena, summons, warrant, court or 28 administrative order, lien, or levy. 29 (13) The furnishing of information to law 30 enforcement authorities, the Illinois Department on 31 Aging and its regional administrative and provider 32 agencies, the Department of Human Services Office of 33 Inspector General, or public guardians, if the 34 credit union suspects that a member who is an SB119 Enrolled -24- LRB9204827JSpc 1 elderly or disabled person has been or may become 2 the victim of financial exploitation. For the 3 purposes of this item (13), the term: (i) "elderly 4 person" means a person who is 60 or more years of 5 age, (ii) "disabled person" means a person who has 6 or reasonably appears to the credit union to have a 7 physical or mental disability that impairs his or 8 her ability to seek or obtain protection from or 9 prevent financial exploitation, and (iii) "financial 10 exploitation" means tortious or illegal use of the 11 assets or resources of an elderly or disabled 12 person, and includes, without limitation, 13 misappropriation of the elderly or disabled person's 14 assets or resources by undue influence, breach of 15 fiduciary relationship, intimidation, fraud, 16 deception, extortion, or the use of assets or 17 resources in any manner contrary to law. A credit 18 union or person furnishing information pursuant to 19 this item (13) shall be entitled to the same rights 20 and protections as a person furnishing information 21 under the Elder Abuse and Neglect Act and the 22 Illinois Domestic Violence Act of 1986. 23 (14) The disclosure of financial records or 24 information as necessary to effect, administer, or 25 enforce a transaction requested or authorized by the 26 member, or in connection with: 27 (A) servicing or processing a financial 28 product or service requested or authorized by 29 the member; 30 (B) maintaining or servicing a member's 31 account with the credit union; or 32 (C) a proposed or actual securitization 33 or secondary market sale (including sales of 34 servicing rights) related to a transaction of a SB119 Enrolled -25- LRB9204827JSpc 1 member. 2 Nothing in this item (14), however, authorizes 3 the sale of the financial records or information of 4 a member without the consent of the member. 5 (15) The disclosure of financial records or 6 information as necessary to protect against or 7 prevent actual or potential fraud, unauthorized 8 transactions, claims, or other liability. 9 (16) (a) The disclosure of financial records 10 or information related to a private label credit 11 program between a financial institution and a 12 private label party in connection with that private 13 label credit program. Such information is limited to 14 outstanding balance, available credit, payment and 15 performance and account history, product references, 16 purchase information, and information related to the 17 identity of the customer. 18 (b) (l) For purposes of this paragraph (16) of 19 subsection (b) of Section 10, a "private label 20 credit program" means a credit program involving a 21 financial institution and a private label party that 22 is used by a customer of the financial institution 23 and the private label party primarily for payment 24 for goods or services sold, manufactured, or 25 distributed by a private label party. 26 (2) For purposes of this paragraph (16) of 27 subsection (b) of Section 10, a "private label 28 party" means, with respect to a private label credit 29 program, any of the following: a retailer, a 30 merchant, a manufacturer, a trade group, or any such 31 person's affiliate, subsidiary, member, agent, or 32 service provider. 33 (c) Except as otherwise provided by this Act, a 34 credit union may not disclose to any person, except to SB119 Enrolled -26- LRB9204827JSpc 1 the member or his duly authorized agent, any financial 2 records relating to that member of the credit union 3 unless: 4 (1) the member has authorized disclosure to 5 the person; 6 (2) the financial records are disclosed in 7 response to a lawful subpoena, summons, warrant or 8 court order that meets the requirements of 9 subparagraph (d) of this Section; or 10 (3) the credit union is attempting to collect 11 an obligation owed to the credit union and the 12 credit union complies with the provisions of Section 13 2I of the Consumer Fraud and Deceptive Business 14 Practices Act. 15 (d) A credit union shall disclose financial records 16 under subparagraph (c)(2) of this Section pursuant to a 17 lawful subpoena, summons, warrant or court order only 18 after the credit union mails a copy of the subpoena, 19 summons, warrant or court order to the person 20 establishing the relationship with the credit union, if 21 living, and otherwise his personal representative, if 22 known, at his last known address by first class mail, 23 postage prepaid unless the credit union is specifically 24 prohibited from notifying the person by order of court or 25 by applicable State or federal law. In the case of a 26 grand jury subpoena, a credit union shall not mail a copy 27 of a subpoena to any person pursuant to this subsection 28 if the subpoena was issued by a grand jury under the 29 Statewide Grand Jury Act or notifying the person would 30 constitute a violation of the federal Right to Financial 31 Privacy Act of 1978. 32 (e) (1) Any officer or employee of a credit union 33 who knowingly and wilfully furnishes financial 34 records in violation of this Section is guilty of a SB119 Enrolled -27- LRB9204827JSpc 1 business offense and upon conviction thereof shall 2 be fined not more than $1,000. 3 (2) Any person who knowingly and wilfully 4 induces or attempts to induce any officer or 5 employee of a credit union to disclose financial 6 records in violation of this Section is guilty of a 7 business offense and upon conviction thereof shall 8 be fined not more than $1,000. 9 (f) A credit union shall be reimbursed for costs 10 which are reasonably necessary and which have been 11 directly incurred in searching for, reproducing or 12 transporting books, papers, records or other data of a 13 member required or requested to be produced pursuant to a 14 lawful subpoena, summons, warrant or court order. The 15 Director may determine, by rule, the rates and conditions 16 under which payment shall be made. Delivery of requested 17 documents may be delayed until final reimbursement of all 18 costs is received. 19 (Source: P.A. 91-929, eff. 12-15-00; 92-293, eff. 8-9-01; 20 92-483, eff. 8-23-01.) 21 Section 99. Effective date. This Act takes effect upon 22 becoming law.