Public Act 90-0163 of the 90th General Assembly
Public Act 90-0163
HB1923 Enrolled LRB9004329JSmg
AN ACT to amend the Adverse Claims to Deposit Accounts
Act by changing Section 20.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Adverse Claims to Deposit Accounts Act is
amended by changing Section 20 as follows:
(205 ILCS 700/20)
Sec. 20. Requirement of court order or indemnity bond.
(a) A financial institution shall recognize an adverse
claim to, or an adverse claim of authority to control, a
deposit account if the person making the claim obtains and
serves upon the financial institution a certified copy of an
appropriate order, by a court having jurisdiction,
restraining any action with respect to the deposit account or
instructing the financial institution to pay the balance of
the deposit account or to deliver the property in the deposit
account, in whole or in part, as provided in the order, until
further order of the court.
(b) A financial institution may, in its sole discretion,
recognize an adverse claim to, or adverse claim of authority
to control, a deposit account if the person making the claim
delivers to the financial institution a bond, in a form and
amount and with sureties satisfactory to the financial
institution, indemnifying the financial institution against
any liability, loss, or expense that the financial
institution might incur because of its recognition of the
adverse claim or because of its refusal by reason of the
claim to honor any check or order of, or to deliver any
property to, the depositor. -In order to require a financial
institution to recognize an adverse claim to, or adverse
claim of authority to, control a deposit account, the person
making the claim shall do either of the following:
(1) obtain and serve upon the financial institution
a certified copy of an appropriate order by a court
having jurisdiction restraining any action with respect
to the deposit account until further order of the court
or instructing the financial institution to pay the
balance of the deposit account or deliver the property in
the deposit account, in whole or in part, as provided in
the order;
(2) deliver to the financial institution a bond, in
form and amount and with sureties satisfactory to the
financial institution, indemnifying the financial
institution against any liability, loss, or expense that
the financial institution might incur because of its
recognition of the adverse claim or because of its
refusal by reason of the claim to honor any check or
order of, or to deliver any property to, the depositor.
(Source: P.A. 89-601, eff. 8-2-96.)
Section 99. Effective date. This Act takes effect upon
becoming law.