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Public Act 094-0851
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| SB2763 Enrolled |
LRB094 18898 MKM 54586 b |
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AN ACT concerning confidentiality.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Abuse of Adults with Disabilities |
Intervention Act is amended by adding Section 59 as follows:
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(20 ILCS 2435/59 new) |
Sec. 59. Subpoena; document production. The Office of |
Inspector General has the power to subpoena witnesses and |
compel the production of books, papers, and documents, |
including financial records and medical records, pertinent to |
an assessment authorized by this Act. Mental health records of |
victims shall be confidential as provided under the Mental |
Health and Developmental Disabilities Confidentiality Act. |
Financial records obtained during the course of an assessment |
are confidential and may be released only with the consent of |
the victim or the victim's guardian or in response to a court |
order, a grand jury subpoena, or a subpoena from a law |
enforcement authority.
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Section 10. The Illinois Banking Act is amended by changing |
Section 48.1 as follows:
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(205 ILCS 5/48.1) (from Ch. 17, par. 360)
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Sec. 48.1. Customer financial records; confidentiality.
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(a) For the purpose of this Section, the term "financial |
records" means any
original, any copy, or any summary of:
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(1) a document granting signature
authority over a |
deposit or account;
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(2) a statement, ledger card or other
record on any |
deposit or account, which shows each transaction in or with
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respect to that account;
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(3) a check, draft or money order drawn on a bank
or |
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issued and payable by a bank; or
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(4) any other item containing
information pertaining |
to any relationship established in the ordinary
course of a |
bank's business between a bank and its customer, including
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financial statements or other financial information |
provided by the customer.
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(b) This Section does not prohibit:
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(1) The preparation, examination, handling or |
maintenance of any
financial records by any officer, |
employee or agent of a bank
having custody of the records, |
or the examination of the records by a
certified public |
accountant engaged by the bank to perform an independent
|
audit.
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(2) The examination of any financial records by, or the |
furnishing of
financial records by a bank to, any officer, |
employee or agent of (i) the
Commissioner of Banks and Real |
Estate, (ii) after May
31, 1997, a state regulatory |
authority authorized to examine a branch of a
State bank |
located in another state, (iii) the Comptroller of the |
Currency,
(iv) the Federal Reserve Board, or (v) the |
Federal Deposit Insurance
Corporation for use solely in the |
exercise of his duties as an officer,
employee, or agent.
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(3) The publication of data furnished from financial |
records
relating to customers where the data cannot be |
identified to any
particular customer or account.
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(4) The making of reports or returns required under |
Chapter 61 of
the Internal Revenue Code of 1986.
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(5) Furnishing information concerning the dishonor of |
any negotiable
instrument permitted to be disclosed under |
the Uniform Commercial Code.
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(6) The exchange in the regular course of business of |
(i) credit
information
between a bank and other banks or |
financial institutions or commercial
enterprises, directly |
or through a consumer reporting agency or (ii)
financial |
records or information derived from financial records |
between a bank
and other banks or financial institutions or |
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commercial enterprises for the
purpose of conducting due |
diligence pursuant to a purchase or sale involving
the bank |
or assets or liabilities of the bank.
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(7) The furnishing of information to the appropriate |
law enforcement
authorities where the bank reasonably |
believes it has been the victim of a
crime.
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(8) The furnishing of information under the Uniform |
Disposition of
Unclaimed Property Act.
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(9) The furnishing of information under the Illinois |
Income Tax Act and
the Illinois Estate and |
Generation-Skipping Transfer Tax Act.
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(10) The furnishing of information under the federal |
Currency
and Foreign Transactions Reporting Act Title 31, |
United States
Code, Section 1051 et seq.
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(11) The furnishing of information under any other |
statute that
by its terms or by regulations promulgated |
thereunder requires the disclosure
of financial records |
other than by subpoena, summons, warrant, or court order.
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(12) The furnishing of information about the existence |
of an account
of a person to a judgment creditor of that |
person who has made a written
request for that information.
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(13) The exchange in the regular course of business of |
information
between commonly owned banks in connection |
with a transaction authorized
under paragraph (23) of
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Section 5 and conducted at an affiliate facility.
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(14) The furnishing of information in accordance with |
the federal
Personal Responsibility and Work Opportunity |
Reconciliation Act of 1996.
Any bank governed by this Act |
shall enter into an agreement for data
exchanges with a |
State agency provided the State agency
pays to the bank a |
reasonable fee not to exceed its
actual cost incurred. A |
bank providing
information in accordance with this item |
shall not be liable to any account
holder or other person |
for any disclosure of information to a State agency, for
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encumbering or surrendering any assets held by the bank in |
response to a lien
or order to withhold and deliver issued |
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by a State agency, or for any other
action taken pursuant |
to this item, including individual or mechanical errors,
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provided the action does not constitute gross negligence or |
willful misconduct.
A bank shall have no obligation to |
hold, encumber, or surrender assets until
it has been |
served with a subpoena, summons, warrant, court or |
administrative
order,
lien, or levy.
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(15) The exchange in the regular course of business of |
information
between
a bank and any commonly owned affiliate |
of the bank, subject to the provisions
of the Financial |
Institutions Insurance Sales Law.
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(16) The furnishing of information to law enforcement |
authorities, the
Illinois Department on
Aging and its |
regional administrative and provider agencies, the |
Department of
Human Services Office
of Inspector General, |
or public guardians: (i) upon subpoena , if there is |
suspicion by the investigatory entity or , the guardian, or |
(ii) if there is suspicion by the bank that a customer
who |
is an elderly or
disabled person has been or may become the |
victim of financial exploitation.
For the purposes of this
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item (16), the term: (i) "elderly person" means a person |
who is 60 or more
years of age, (ii) "disabled
person" |
means a person who has or reasonably appears to the bank to |
have a
physical or mental
disability that impairs his or |
her ability to seek or obtain protection from or
prevent |
financial
exploitation, and (iii) "financial exploitation" |
means tortious or illegal use
of the assets or resources of
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an elderly or disabled person, and includes, without |
limitation,
misappropriation of the elderly or
disabled |
person's assets or resources by undue influence, breach of |
fiduciary
relationship, intimidation,
fraud, deception, |
extortion, or the use of assets or resources in any manner
|
contrary to law. A bank or
person furnishing information |
pursuant to this item (16) shall be entitled to
the same |
rights and
protections as a person furnishing information |
under the Elder Abuse and
Neglect Act, the Illinois
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Domestic Violence Act of 1986, and the Abuse of Adults with |
Disabilities Intervention Act.
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(17) The disclosure of financial records or |
information as necessary to
effect, administer, or enforce |
a transaction requested or authorized by the
customer, or |
in connection with:
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(A) servicing or processing a financial product or |
service requested or
authorized by the customer;
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(B) maintaining or servicing a customer's account |
with the bank; or
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(C) a proposed or actual securitization or |
secondary market sale
(including sales of servicing |
rights) related to a
transaction of a customer.
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Nothing in this item (17), however, authorizes the sale |
of the financial
records or information of a customer |
without the consent of the customer.
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(18) The disclosure of financial records or |
information as necessary to
protect against actual or |
potential fraud, unauthorized transactions, claims,
or |
other liability.
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(19) (a) The disclosure of financial records or |
information
related to a private label credit program |
between a financial
institution and a private label party |
in connection with that
private label credit program. Such |
information is limited to
outstanding balance, available |
credit, payment and performance
and account history, |
product references, purchase information,
and information
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related to the identity of the customer.
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(b) (l) For purposes of this paragraph (19) of |
subsection
(b) of Section 48.1, a "private label credit |
program" means a
credit program involving a financial |
institution and a private label
party that is used by a |
customer of the financial institution and the
private label |
party primarily for payment for goods or services
sold, |
manufactured, or distributed by a private label party.
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(2) For purposes of this paragraph (19) of subsection |
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(b)
of Section 48.l, a "private label party" means, with |
respect to a
private label credit program, any of the |
following: a
retailer, a merchant, a manufacturer, a trade |
group,
or any such person's affiliate, subsidiary, member,
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agent, or service provider.
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(c) Except as otherwise provided by this Act, a bank may |
not disclose to
any person, except to the customer or his
duly |
authorized agent, any financial records or financial |
information
obtained from financial records relating to that |
customer of
that bank unless:
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(1) the customer has authorized disclosure to the |
person;
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(2) the financial records are disclosed in response to |
a lawful
subpoena, summons, warrant or court order which |
meets the requirements
of subsection (d) of this Section; |
or
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(3) the bank is attempting to collect an obligation |
owed to the bank
and the bank complies with the provisions |
of Section 2I of the Consumer
Fraud and Deceptive Business |
Practices Act.
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(d) A bank shall disclose financial records under paragraph |
(2) of
subsection (c) of this Section under a lawful subpoena, |
summons, warrant, or
court order only after the bank mails a |
copy of the subpoena, summons, warrant,
or court order to the |
person establishing the relationship with the bank, if
living, |
and, otherwise his personal representative, if known, at his |
last known
address by first class mail, postage prepaid, unless |
the bank is specifically
prohibited from notifying the person |
by order of court or by applicable State
or federal law. A bank |
shall not mail a copy of a subpoena to any person
pursuant to |
this subsection if the subpoena was issued by a grand jury |
under
the Statewide Grand Jury Act.
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(e) Any officer or employee of a bank who knowingly and
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willfully furnishes financial records in violation of this |
Section is
guilty of a business offense and, upon conviction, |
shall be fined not
more than $1,000.
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(f) Any person who knowingly and willfully induces or |
attempts to
induce any officer or employee of a bank to |
disclose financial
records in violation of this Section is |
guilty of a business offense
and, upon conviction, shall be |
fined not more than $1,000.
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(g) A bank shall be reimbursed for costs that are |
reasonably necessary
and that have been directly incurred in |
searching for, reproducing, or
transporting books, papers, |
records, or other data of a customer required or
requested to |
be produced pursuant to a lawful subpoena, summons, warrant, or
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court order. The Commissioner shall determine the rates and |
conditions
under which payment may be made.
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(Source: P.A. 94-495, eff. 8-8-05.)
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Section 15. The Illinois Savings and Loan Act of 1985 is |
amended by changing Section 3-8 as follows:
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(205 ILCS 105/3-8) (from Ch. 17, par. 3303-8)
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Sec. 3-8. Access to books and records; communication with |
members.
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(a) Every member or holder of capital shall have the right |
to inspect
the books and records of the association that |
pertain to his account.
Otherwise, the right of inspection and |
examination of the books and
records shall be limited as |
provided in this Act, and no other person
shall have access to |
the books and records or shall be entitled to a
list of the |
members.
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(b) For the purpose of this Section, the term "financial |
records"
means any original, any copy, or any summary of (i) a |
document granting
signature authority over a deposit or |
account; (ii) a statement, ledger
card, or other record on any |
deposit or account that
shows each transaction in or with |
respect to that account; (iii) a check,
draft, or money order |
drawn on an association or issued and payable by
an |
association; or (iv) any other item containing information |
pertaining to
any relationship established in the ordinary |
|
course of an association's
business between an association and |
its customer, including financial
statements or other |
financial information provided by the member or holder of
|
capital.
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(c) This Section does not prohibit:
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(1) The preparation, examination, handling, or |
maintenance of any
financial records by any officer, |
employee, or agent of an association having
custody of |
those records or the examination of those records by a |
certified
public accountant engaged by the association to |
perform an independent
audit.
|
(2) The examination of any financial records by, or the |
furnishing of
financial records by an association to, any |
officer, employee, or agent of the
Commissioner of Banks |
and Real Estate or federal depository institution
|
regulator for use solely in the exercise
of
his duties as |
an officer, employee, or agent.
|
(3) The publication of data furnished from financial |
records
relating to members or holders of capital where the |
data cannot be
identified to any particular member, holder |
of capital, or account.
|
(4) The making of reports or returns required under |
Chapter 61 of
the Internal Revenue Code of 1986.
|
(5) Furnishing information concerning the dishonor of |
any negotiable
instrument permitted to be disclosed under |
the Uniform Commercial
Code.
|
(6) The exchange in the regular course of business of |
(i) credit
information between an association and other |
associations or financial
institutions or commercial |
enterprises, directly or through a consumer
reporting |
agency
or (ii) financial records or information derived |
from financial records
between an association and other |
associations or financial institutions or
commercial |
enterprises for the purpose of conducting due diligence |
pursuant to
a purchase or sale involving the association or |
assets or liabilities of the
association.
|
|
(7) The furnishing of information to the appropriate |
law enforcement
authorities where the association |
reasonably believes it has been the
victim of a crime.
|
(8) The furnishing of information pursuant to the |
Uniform Disposition
of Unclaimed Property Act.
|
(9) The furnishing of information pursuant to the |
Illinois Income Tax
Act and the Illinois Estate and |
Generation-Skipping Transfer Tax Act.
|
(10) The furnishing of information pursuant to the |
federal "Currency
and Foreign Transactions Reporting Act", |
(Title 31, United States
Code, Section 1051 et seq.).
|
(11) The furnishing of information pursuant to any |
other statute that
by its terms or by regulations |
promulgated thereunder requires the disclosure
of |
financial records other than by subpoena, summons, |
warrant, or court
order.
|
(12) The exchange of information between an |
association and an affiliate
of the association; as used in |
this item, "affiliate" includes any
company, partnership, |
or organization that controls, is controlled by, or is
|
under common control with an association.
|
(13) The furnishing of information
in accordance with |
the federal Personal Responsibility and Work Opportunity
|
Reconciliation Act of 1996. Any association governed by |
this Act shall enter
into an agreement for data
exchanges |
with a State agency provided the State agency
pays to the |
association a reasonable fee not to exceed its
actual cost |
incurred. An association
providing
information in |
accordance with this item shall not be liable to any |
account
holder or other person for any disclosure of |
information to a State agency, for
encumbering or |
surrendering any assets held by the association in response |
to a
lien
or order to withhold and deliver issued by a |
State agency, or for any other
action taken pursuant to |
this item, including individual or mechanical errors,
|
provided the action does not constitute gross negligence or |
|
willful misconduct.
An association shall have no |
obligation to hold, encumber, or surrender assets
until it |
has been served with a subpoena, summons, warrant, court or
|
administrative order, lien, or levy.
|
(14) The furnishing of information to law enforcement |
authorities, the
Illinois Department on
Aging and its |
regional administrative and provider agencies, the |
Department of
Human Services Office
of Inspector General, |
or public guardians: (i) upon subpoena , if there is |
suspicion by the investigatory entity or , the guardian, or |
(ii) if there is suspicion by the association that a
|
customer who is an elderly or
disabled person has been or |
may become the victim of financial exploitation.
For the |
purposes of this
item (14), the term: (i) "elderly person" |
means a person who is 60 or more
years of age, (ii) |
"disabled
person" means a person who has or reasonably |
appears to the association to have
a physical or mental
|
disability that impairs his or her ability to seek or |
obtain protection from or
prevent financial
exploitation, |
and (iii) "financial exploitation" means tortious or |
illegal use
of the assets or resources of
an elderly or |
disabled person, and includes, without limitation,
|
misappropriation of the elderly or
disabled person's |
assets or resources by undue influence, breach of fiduciary
|
relationship, intimidation,
fraud, deception, extortion, |
or the use of assets or resources in any manner
contrary to |
law. An
association or person furnishing information |
pursuant to this item (14) shall
be entitled to the same
|
rights and protections as a person furnishing information |
under the Elder Abuse
and Neglect Act, the
Illinois |
Domestic Violence Act of 1986, and the Abuse of Adults with |
Disabilities Intervention Act.
|
(15) The disclosure of financial records or |
information as necessary to
effect, administer, or enforce |
a transaction requested or authorized by the
member or |
holder of capital, or in connection with:
|
|
(A) servicing or processing a financial product or |
service requested or
authorized by the member or holder |
of capital;
|
(B) maintaining or servicing an account of a member |
or holder of capital
with the association; or
|
(C) a proposed or actual securitization or |
secondary market sale
(including
sales of servicing |
rights) related to a transaction of
a member or holder |
of capital.
|
Nothing in this item (15), however, authorizes the sale |
of the financial
records or information of a member or |
holder of capital without the consent of
the member or |
holder of capital.
|
(16) The disclosure of financial records or |
information as necessary to
protect against or prevent |
actual or potential fraud, unauthorized
transactions, |
claims, or other liability.
|
(17) (a) The disclosure of financial records or |
information
related to a private label credit program |
between a financial
institution and a private label party |
in connection
with that private label credit program. Such |
information
is limited to outstanding balance, available |
credit, payment and
performance and account history, |
product references, purchase
information,
and information |
related to the identity of the
customer.
|
(b) (l) For purposes of this paragraph (17) of |
subsection
(c) of Section 3-8, a "private label credit |
program" means a
credit program involving a financial |
institution and a private label
party that is used by a |
customer of the financial institution and the
private label |
party primarily for payment for goods or services
sold, |
manufactured, or distributed by a private label party.
|
(2) For purposes of this paragraph (17) of subsection |
(c)
of Section 3-8, a "private label party" means, with |
respect to a
private label credit program, any of the |
following: a
retailer, a merchant, a manufacturer, a trade |
|
group,
or any such person's affiliate, subsidiary, member,
|
agent, or service provider.
|
(d) An association may not disclose to any person, except |
to the
member or holder of capital or his duly authorized |
agent, any financial
records relating to that member or holder |
of capital of that association
unless:
|
(1) The member or holder of capital has authorized |
disclosure to the
person; or
|
(2) The financial records are disclosed in response to |
a lawful
subpoena, summons, warrant, or court order that |
meets the
requirements of subsection (e) of this Section.
|
(e) An association shall disclose financial records under |
subsection
(d) of this Section pursuant to a lawful subpoena, |
summons,
warrant, or court order only after the association |
mails a copy of the
subpoena, summons, warrant, or court order |
to the person establishing
the relationship with the |
association, if living, and, otherwise, his
personal |
representative, if known, at his last known address by first |
class
mail, postage prepaid, unless the association is |
specifically prohibited
from notifying that person by order of |
court.
|
(f) (1) Any officer or employee of an association who |
knowingly and
willfully furnishes financial records in |
violation of this Section is
guilty of a business offense and, |
upon conviction, shall be fined not
more than $1,000.
|
(2) Any person who knowingly and willfully induces or |
attempts to
induce any officer or employee of an association to |
disclose financial
records in violation of this Section is |
guilty of a business offense
and, upon conviction, shall be |
fined not more than $1,000.
|
(g) However, if any member desires to communicate with the |
other
members of the association with reference to any question |
pending or to
be presented at a meeting of the members, the |
association shall give him
upon request a statement of the |
approximate number of members entitled
to vote at the meeting |
and an estimate of the cost of
preparing and mailing the |
|
communication. The requesting
member then shall submit the |
communication to the Commissioner who, if he
finds it to be |
appropriate and truthful, shall direct that it be prepared
and |
mailed to the members upon the requesting member's payment or
|
adequate provision for payment of the expenses of preparation |
and mailing.
|
(h) An association shall be reimbursed for costs that are |
necessary and
that have been directly incurred in searching |
for, reproducing, or
transporting books, papers, records, or |
other data of a customer required
to be reproduced pursuant to |
a lawful subpoena, warrant, or court order.
|
(Source: P.A. 93-271, eff. 7-22-03; 94-495, eff. 8-8-05.)
|
Section 20. The Savings Bank Act is amended by changing |
Section 4013 as follows:
|
(205 ILCS 205/4013) (from Ch. 17, par. 7304-13)
|
Sec. 4013. Access to books and records; communication with |
members
and shareholders. |
(a) Every member or shareholder shall have the right to |
inspect books
and records of the savings bank that pertain to |
his accounts. Otherwise,
the right of inspection and |
examination of the books and records shall be
limited as |
provided in this Act, and no other person shall have access to
|
the books and records nor shall be entitled to a list of the |
members or
shareholders.
|
(b) For the purpose of this Section, the term "financial |
records" means
any original, any copy, or any summary of (1) a |
document granting signature
authority over a deposit or |
account; (2) a statement, ledger card, or other
record on any |
deposit or account that shows each transaction in or with
|
respect to that account; (3) a check, draft, or money order |
drawn on a
savings bank or issued and payable by a savings |
bank; or (4) any other item
containing information pertaining |
to any relationship established in the
ordinary course of a |
savings bank's business between a savings bank and
its |
|
customer, including financial statements or other financial |
information
provided by the member or shareholder.
|
(c) This Section does not prohibit:
|
(1) The preparation examination, handling, or |
maintenance of any
financial records by any officer, |
employee, or agent of a savings bank
having custody of |
records or examination of records by a certified public
|
accountant engaged by the savings bank to perform an |
independent audit.
|
(2) The examination of any financial records by, or the |
furnishing of
financial records by a savings bank to, any |
officer, employee, or agent of
the Commissioner of Banks |
and Real Estate or the federal depository
institution |
regulator for use
solely in
the exercise of his duties as |
an officer, employee, or agent.
|
(3) The publication of data furnished from financial |
records relating
to members or holders of capital where the |
data cannot be identified to any
particular member, |
shareholder, or account.
|
(4) The making of reports or returns required under |
Chapter 61 of the
Internal Revenue Code of 1986.
|
(5) Furnishing information concerning the dishonor of |
any negotiable
instrument permitted to be disclosed under |
the Uniform Commercial Code.
|
(6) The exchange in the regular course of business of |
(i) credit
information between a savings bank and other |
savings banks or financial
institutions or commercial |
enterprises, directly or through a consumer
reporting |
agency
or (ii) financial records or information derived |
from financial records
between a savings bank and other |
savings banks or financial institutions or
commercial |
enterprises for the purpose of conducting due diligence |
pursuant to
a purchase or sale involving the savings bank |
or assets or liabilities of the
savings bank.
|
(7) The furnishing of information to the appropriate |
law enforcement
authorities where the savings bank |
|
reasonably believes it has been the
victim of a crime.
|
(8) The furnishing of information pursuant to the |
Uniform Disposition
of Unclaimed Property Act.
|
(9) The furnishing of information pursuant to the |
Illinois Income Tax
Act
and the Illinois Estate and |
Generation-Skipping Transfer Tax Act.
|
(10) The furnishing of information pursuant to the |
federal "Currency
and Foreign Transactions Reporting Act", |
(Title 31, United States Code,
Section 1051 et seq.).
|
(11) The furnishing of information pursuant to any |
other statute which
by its terms or by regulations |
promulgated thereunder requires the
disclosure of |
financial records other than by subpoena, summons, |
warrant, or
court order.
|
(12) The furnishing of information in accordance with |
the federal
Personal Responsibility and Work Opportunity |
Reconciliation Act of 1996.
Any savings bank governed by |
this Act shall enter into an agreement for data
exchanges |
with a State agency provided the State agency
pays to the |
savings bank a reasonable fee not to exceed its
actual cost |
incurred. A savings bank
providing
information in |
accordance with this item shall not be liable to any |
account
holder or other person for any disclosure of |
information to a State agency, for
encumbering or |
surrendering any assets held by the savings bank in |
response to
a lien
or order to withhold and deliver issued |
by a State agency, or for any other
action taken pursuant |
to this item, including individual or mechanical errors,
|
provided the action does not constitute gross negligence or |
willful misconduct.
A savings bank shall have no obligation |
to hold, encumber, or surrender
assets until
it has been |
served with a subpoena, summons, warrant, court or |
administrative
order,
lien, or levy.
|
(13) The furnishing of information to law enforcement |
authorities, the
Illinois Department on
Aging and its |
regional administrative and provider agencies, the |
|
Department of
Human Services Office
of Inspector General, |
or public guardians: (i) upon subpoena , if there is |
suspicion by the investigatory entity or , the guardian, or |
(ii) if there is suspicion by the savings bank that a
|
customer who is an elderly
or disabled person has been or |
may become the victim of financial exploitation.
For the |
purposes of this
item (13), the term: (i) "elderly person" |
means a person who is 60 or more
years of age, (ii) |
"disabled
person" means a person who has or reasonably |
appears to the savings bank to
have a physical or mental
|
disability that impairs his or her ability to seek or |
obtain protection from or
prevent financial
exploitation, |
and (iii) "financial exploitation" means tortious or |
illegal use
of the assets or resources of
an elderly or |
disabled person, and includes, without limitation,
|
misappropriation of the elderly or
disabled person's |
assets or resources by undue influence, breach of fiduciary
|
relationship, intimidation,
fraud, deception, extortion, |
or the use of assets or resources in any manner
contrary to |
law. A savings
bank or person furnishing information |
pursuant to this item (13) shall be
entitled to the same |
rights and
protections as a person furnishing information |
under the Elder Abuse and
Neglect Act, the Illinois
|
Domestic Violence Act of 1986, and the Abuse of Adults with |
Disabilities Intervention Act.
|
(14) The disclosure of financial records or |
information as necessary to
effect, administer, or enforce |
a transaction requested or authorized by the
member or |
holder of capital, or in connection with:
|
(A) servicing or processing a financial product or |
service requested or
authorized by the member or holder |
of capital;
|
(B) maintaining or servicing an account of a member |
or holder of capital
with the savings bank; or
|
(C) a proposed or actual securitization or |
secondary market sale
(including sales of servicing |
|
rights) related to a
transaction of a member or holder |
of capital.
|
Nothing in this item (14), however, authorizes the sale |
of the financial
records or information of a member or |
holder of capital without the consent of
the member or |
holder of capital.
|
(15) The exchange in the regular course of business of |
information between
a
savings bank and any commonly owned |
affiliate of the savings bank, subject to
the provisions of |
the Financial Institutions Insurance Sales Law.
|
(16) The disclosure of financial records or |
information as necessary to
protect against or prevent |
actual or potential fraud, unauthorized
transactions, |
claims, or other liability.
|
(17) (a) The disclosure of financial records or |
information
related to a private label credit program |
between a financial
institution and a private label party |
in connection
with that private label credit program. Such |
information
is limited to outstanding balance, available |
credit, payment and
performance and account history, |
product references, purchase
information,
and information |
related to the identity of the
customer.
|
(b) (l) For purposes of this paragraph (17) of |
subsection
(c) of Section 4013, a "private label credit |
program" means a
credit program involving a financial |
institution and a private label
party that is used by a |
customer of the financial institution and the
private label |
party primarily for payment for goods or services
sold, |
manufactured, or distributed by a private label party.
|
(2) For purposes of this paragraph (17) of subsection |
(c)
of Section 4013, a "private label party" means, with |
respect to a
private label credit program, any of the |
following: a
retailer, a merchant, a manufacturer, a trade |
group,
or any such person's affiliate, subsidiary, member,
|
agent, or service provider.
|
(d) A savings bank may not disclose to any person, except |
|
to the member
or holder of capital or his duly authorized |
agent, any financial records
relating to that member or |
shareholder of the savings bank unless:
|
(1) the member or shareholder has authorized |
disclosure to the person; or
|
(2) the financial records are disclosed in response to |
a lawful
subpoena, summons, warrant, or court order that |
meets the requirements of
subsection (e) of this Section.
|
(e) A savings bank shall disclose financial records under |
subsection (d)
of this Section pursuant to a lawful subpoena, |
summons, warrant, or court
order only after the savings bank |
mails a copy of the subpoena, summons,
warrant, or court order |
to the person establishing the relationship with
the savings |
bank, if living, and otherwise, his personal representative, if
|
known, at his last known address by first class mail, postage |
prepaid,
unless the savings bank is specifically prohibited |
from notifying the
person by order of court.
|
(f) Any officer or employee of a savings bank who knowingly |
and
willfully furnishes financial records in violation of this |
Section is
guilty of a business offense and, upon conviction, |
shall be fined not
more than $1,000.
|
(g) Any person who knowingly and willfully induces or |
attempts to
induce any officer or employee of a savings bank to |
disclose financial
records in violation of this Section is |
guilty of a business offense and,
upon conviction, shall be |
fined not more than $1,000.
|
(h) If any member or shareholder desires to communicate |
with the other
members or shareholders of the savings bank with |
reference to any question
pending or to be presented at an |
annual or special meeting, the savings
bank shall give that |
person, upon request, a statement of the approximate
number of |
members or shareholders entitled to vote at the meeting and an
|
estimate of the cost of preparing and mailing the |
communication. The
requesting member shall submit the |
communication to the Commissioner
who, upon finding it to be |
appropriate and truthful, shall direct that it
be prepared and |
|
mailed to the members upon the requesting member's or
|
shareholder's payment or adequate provision for payment of the |
expenses of
preparation and mailing.
|
(i) A savings bank shall be reimbursed for costs that are |
necessary and
that have been directly incurred in searching |
for, reproducing, or
transporting books, papers, records, or |
other data of a customer required
to be reproduced pursuant to |
a lawful subpoena, warrant, or court order.
|
(j) Notwithstanding the provisions of this Section, a |
savings bank may
sell or otherwise make use of lists of |
customers' names and addresses. All
other information |
regarding a customer's account are subject to the
disclosure |
provisions of this Section. At the request of any customer,
|
that customer's name and address shall be deleted from any list |
that is to
be sold or used in any other manner beyond |
identification of the customer's
accounts.
|
(Source: P.A. 93-271, eff. 7-22-03; 94-495, eff. 8-8-05.)
|
Section 25. The Illinois Credit Union Act is amended by |
changing Section 10 as follows:
|
(205 ILCS 305/10) (from Ch. 17, par. 4411)
|
Sec. 10. Credit union records; member financial records.
|
(1) A credit union shall establish and maintain books, |
records, accounting
systems and procedures which accurately |
reflect its operations and which
enable the Department to |
readily ascertain the true financial condition
of the credit |
union and whether it is complying with this Act.
|
(2) A photostatic or photographic reproduction of any |
credit union records
shall be admissible as evidence of |
transactions with the credit union.
|
(3)(a) For the purpose of this Section, the term "financial |
records"
means any original, any copy, or any summary of (1) a |
document granting
signature authority over an account, (2) a |
statement, ledger card or other
record on any account which |
shows each transaction in or with respect to
that account, (3) |
|
a check, draft or money order drawn on a financial
institution |
or other entity or issued and payable by or through a financial
|
institution or other entity, or (4) any other item containing |
information
pertaining to any relationship established in the |
ordinary course of
business between a credit union and its |
member, including financial
statements or other financial |
information provided by the member.
|
(b) This Section does not prohibit:
|
(1) The preparation, examination, handling or |
maintenance of any
financial records by any officer, |
employee or agent of a credit union
having custody of such |
records, or the examination of such records by a
certified |
public accountant engaged by the credit union to perform an
|
independent audit.
|
(2) The examination of any financial records by or the |
furnishing of
financial records by a credit union to any |
officer, employee or agent of
the Department, the National |
Credit Union Administration, Federal Reserve
board or any |
insurer of share accounts for use solely in the exercise of
|
his duties as an officer, employee or agent.
|
(3) The publication of data furnished from financial |
records relating
to members where the data cannot be |
identified to any particular customer
of account.
|
(4) The making of reports or returns required under |
Chapter 61 of the
Internal Revenue Code of 1954.
|
(5) Furnishing information concerning the dishonor of |
any negotiable
instrument permitted to be disclosed under |
the Uniform Commercial
Code.
|
(6) The exchange in the regular course of business
of |
(i) credit information
between a credit union and other |
credit unions or financial institutions
or commercial |
enterprises, directly or through a consumer reporting |
agency
or (ii) financial records or information derived |
from financial records
between a credit union and other |
credit unions or financial institutions or
commercial |
enterprises for
the purpose of conducting due diligence |
|
pursuant to a merger or a purchase or
sale of assets or |
liabilities of the credit union.
|
(7) The furnishing of information to the appropriate |
law enforcement
authorities where the credit union |
reasonably believes it has been the victim
of a crime.
|
(8) The furnishing of information pursuant to the |
Uniform Disposition
of Unclaimed Property Act.
|
(9) The furnishing of information pursuant to the |
Illinois Income Tax
Act and the Illinois Estate and |
Generation-Skipping Transfer Tax Act.
|
(10) The furnishing of information pursuant to the |
federal "Currency
and Foreign Transactions Reporting Act", |
Title 31, United States Code,
Section 1051 et sequentia.
|
(11) The furnishing of information pursuant to any |
other statute which
by its terms or by regulations |
promulgated thereunder requires the disclosure
of |
financial records other than by subpoena, summons, warrant |
or court order.
|
(12) The furnishing of information in accordance with |
the federal
Personal Responsibility and Work Opportunity |
Reconciliation Act of 1996.
Any credit union governed by |
this Act shall enter into an agreement for data
exchanges |
with a State agency provided the State agency
pays to the |
credit union a reasonable fee not to exceed its
actual cost |
incurred. A credit union
providing
information in |
accordance with this item shall not be liable to any |
account
holder or other person for any disclosure of |
information to a State agency, for
encumbering or |
surrendering any assets held by the credit union in |
response to
a lien
or order to withhold and deliver issued |
by a State agency, or for any other
action taken pursuant |
to this item, including individual or mechanical errors,
|
provided the action does not constitute gross negligence or |
willful misconduct.
A credit union shall have no obligation |
to hold, encumber, or surrender
assets until
it has been |
served with a subpoena, summons, warrant, court or |
|
administrative
order, lien, or levy.
|
(13) The furnishing of information to law enforcement |
authorities, the
Illinois Department on
Aging and its |
regional administrative and provider agencies, the |
Department of
Human Services Office
of Inspector General, |
or public guardians: (i) upon subpoena , if there is |
suspicion by the investigatory entity or , the guardian, or |
(ii) if there is suspicion by the credit union that a
|
member who is an elderly or
disabled person has been or may |
become the victim of financial exploitation.
For the |
purposes of this
item (13), the term: (i) "elderly person" |
means a person who is 60 or more
years of age, (ii) |
"disabled
person" means a person who has or reasonably |
appears to the credit union to
have a physical or mental
|
disability that impairs his or her ability to seek or |
obtain protection from or
prevent financial
exploitation, |
and (iii) "financial exploitation" means tortious or |
illegal use
of the assets or resources of
an elderly or |
disabled person, and includes, without limitation,
|
misappropriation of the elderly or
disabled person's |
assets or resources by undue influence, breach of fiduciary
|
relationship, intimidation,
fraud, deception, extortion, |
or the use of assets or resources in any manner
contrary to |
law. A credit
union or person furnishing information |
pursuant to this item (13) shall be
entitled to the same |
rights and
protections as a person furnishing information |
under the Elder Abuse and
Neglect Act, the Illinois
|
Domestic Violence Act of 1986, and the Abuse of Adults with |
Disabilities Intervention Act.
|
(14) The disclosure of financial records or |
information as necessary
to
effect, administer, or enforce |
a transaction requested or authorized by the
member, or in |
connection with:
|
(A) servicing or processing a financial product or |
service requested
or
authorized by the member;
|
(B) maintaining or servicing a member's account |
|
with the credit union;
or
|
(C) a proposed or actual securitization or |
secondary market sale
(including sales of servicing |
rights) related to a
transaction of a member.
|
Nothing in this item (14), however, authorizes the sale |
of the financial
records or information of a member without |
the consent of the member.
|
(15) The disclosure of financial records or |
information as necessary to
protect against or prevent |
actual or potential fraud, unauthorized
transactions, |
claims, or other liability.
|
(16)(a) The disclosure of financial records or |
information
related to a private label credit program |
between a financial
institution and a private label party |
in connection
with that private label credit program. Such |
information
is limited to outstanding balance, available |
credit, payment and
performance and account history, |
product references, purchase
information,
and information |
related to the identity of the
customer.
|
(b)(l) For purposes of this paragraph (16) of |
subsection
(b) of Section 10, a "private label credit |
program" means a credit
program involving a financial |
institution and a private label party
that is used by a |
customer of the financial institution and the
private label |
party primarily for payment for goods or services
sold, |
manufactured, or distributed by a private label party.
|
(2) For purposes of this paragraph (16) of subsection |
(b)
of Section 10, a "private label party" means, with |
respect to a
private label credit program, any of the |
following: a
retailer, a merchant, a manufacturer, a trade |
group,
or any such person's affiliate, subsidiary, member,
|
agent, or service provider.
|
(c) Except as otherwise provided by this Act, a credit |
union may not
disclose to any person, except to the member
or |
his duly authorized agent, any financial records relating to |
that member
of the credit union unless:
|
|
(1) the member has authorized disclosure to the person;
|
(2) the financial records are disclosed in response to |
a lawful
subpoena,
summons, warrant or court order that |
meets the requirements of subparagraph
(d) of this Section; |
or
|
(3) the credit union is attempting to collect an |
obligation owed to
the credit union and the credit union |
complies with the provisions of
Section 2I of the Consumer |
Fraud and Deceptive Business Practices Act.
|
(d) A credit union shall disclose financial records under |
subparagraph
(c)(2) of this Section pursuant to a lawful |
subpoena, summons, warrant or
court order only after the credit |
union mails a copy of the subpoena, summons,
warrant or court |
order to the person establishing the relationship with
the |
credit union, if living, and otherwise his personal |
representative,
if known, at his last known address by first |
class mail, postage prepaid
unless the credit union is |
specifically prohibited from notifying the person
by order of |
court or by applicable State or federal law. In the case
of a |
grand jury subpoena, a credit union shall not mail a copy of a |
subpoena
to any person pursuant to this subsection if the |
subpoena was issued by a grand
jury under the Statewide Grand |
Jury Act or notifying the
person would constitute a violation |
of the federal Right to Financial
Privacy Act of 1978.
|
(e)(1) Any officer or employee of a credit union who |
knowingly and
wilfully furnishes financial records in |
violation of this Section is guilty of
a business offense and |
upon conviction thereof shall be fined not more than
$1,000.
|
(2) Any person who knowingly and wilfully induces or |
attempts to induce
any officer or employee of a credit union to |
disclose financial records
in violation of this Section is |
guilty of a business offense and upon
conviction thereof shall |
be fined not more than $1,000.
|
(f) A credit union shall be reimbursed for costs which are |
reasonably
necessary and which have been directly incurred in |
searching for,
reproducing or transporting books, papers, |