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| Public Act 096-0123 |
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AN ACT concerning financial regulation.
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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 1. Short title. This Act may be cited as the | ||||
Banking Convenience Account for Depositors Act. | ||||
Section 5. Definitions. For purposes of this Act: | ||||
"Banking organization" means any person doing a banking | ||||
business whether subject to the laws of this or any other | ||||
jurisdiction. | ||||
"Convenience account" means an account established | ||||
pursuant to this Act. | ||||
"Convenience depositor" means a person that makes deposits | ||||
into the depositor's convenience account pursuant to this Act. | ||||
"Depositor" means a person that is the primary account | ||||
holder of any account held by a banking organization. | ||||
Section 10. Convenience accounts; creation. | ||||
(a) A banking organization may permit a depositor to open a | ||||
convenience account for the purposes of permitting a | ||||
convenience depositor to make deposits into that account. The | ||||
convenience account shall be in the name of a depositor and the | ||||
convenience depositor and be permitted to pay or deliver funds | ||||
to either for the convenience of the depositor. | ||||
(b) Deposits made into a convenience account shall not | ||
affect the title to any deposit or shares and the depositor | ||
shall not be considered to have made a gift of
one-half the | ||
deposit or of any additions or accruals thereon to the
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convenience depositor, and, on the death of the depositor, the | ||
convenience depositor shall
have no right of survivorship in | ||
the convenience account.
If an addition is made to
a | ||
convenience account by anyone other than the depositor, any | ||
addition and
accruals thereon shall be considered to have been | ||
made by the depositor.
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Section 15. Depositors and convenience depositors. Any | ||
deposit, together with all additions and accruals
thereon, made | ||
to the convenience account may be paid or delivered to the | ||
depositor or the convenience depositor,
and the payment or | ||
delivery and the receipt or acquittance of the one
to whom the | ||
payment or delivery is made, shall be a valid and
sufficient | ||
release and discharge to the banking organization prior to the | ||
receipt by the banking organization of notice in writing signed | ||
by the depositor
not to pay or deliver the deposit or shares | ||
and the additions and
accruals thereon in accordance with the | ||
terms thereof, and after receipt
of any notice, the banking | ||
organization may require the receipt or acquittance of the | ||
depositor for
any further payments or delivery.
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Section 20. Banking organizations; liability for | ||
convenience accounts. If the depositor is dead, then payment
or | ||
delivery to the convenience depositor shall be a valid and | ||
sufficient release
to the banking organization prior to the
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receipt by the banking organization of
written notice of the | ||
depositor's death. A banking organization which, upon the death | ||
of the depositor and
prior to service upon it of a restraining | ||
order, injunction, or other
appropriate process from a court of | ||
competent jurisdiction prohibiting
payment, makes payment to | ||
the executor, administrator, or other qualified
representative | ||
of the deceased depositor's estate, shall, to the extent
of | ||
such payment, be released from liability to any person claiming | ||
a
right to the funds and the receipt or acquittance of the | ||
executor,
administrator, or qualified representative to whom | ||
payment is made shall
be a valid and sufficient release and | ||
discharge of the banking organization.
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Section 90. Repealer. This Act is repealed 5 years after | ||
the effective date of this Act.
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