Public Act 90-0184 of the 90th General Assembly

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Public Act 90-0184

SB406 Enrolled                                 LRB9003070JSgc

    AN ACT to amend the Check Number Act by changing Sections
1 and 5 and adding Sections 15, 20, 21, 25, 30, 35,  36,  37,
38, and 39.

    Be  it  enacted  by  the People of the State of Illinois,
represented in the General Assembly:

    Section 5.  The Check Number Act is amended  by  changing
Sections  1 and 5 and adding Sections 15, 20, 21, 25, 30, 35,
36, 37, 38, and 39 as follows:

    (205 ILCS 690/1)
    Sec. 1.  Short title.  This Act may be cited as the Check
Printer and Check Number Act.
(Source: P.A. 87-1143.)

    (205 ILCS 690/5)
    Sec. 5.  Definitions.  For the purposes of this Act:
    "Commissioner" means the Commissioner of Banks  and  Real
    "Consumer-deposit   account"  means  a  demand  or  other
similar deposit account such as a checking, negotiable  order
of  withdrawal,  money  market,  savings  deposit,  share, or
member account established and maintained by a natural person
with a  financial  institution  and  operated  primarily  for
personal, family, or household purposes.
    "Financial institution" means (i) any bank subject to the
Illinois Banking Act, any savings bank subject to the Savings
Bank  Act,  any  savings  and loan association subject to the
Illinois Savings and Loan Act of 1985, or  any  credit  union
subject  to  the  Illinois  Credit  Union  Act;  (ii) and any
federally chartered commercial bank, savings bank, or savings
and loan association, or credit union organized and  operated
in  this State under the laws of the United States; and (iii)
any business corporation, limited liability company, business
trust, partnership, joint venture, or other  entity  that  is
directly  or  indirectly  at  least  50% owned by or commonly
owned with a financial institution.
    "Check"  means  a  writing   that   complies   with   the
requirements of Section 3-104 of the Uniform Commercial Code.
    "Person"   means   any   natural   person  or  his  legal
representative,  partnership,  corporation,  company,  trust,
business entity, or association.
(Source: P.A. 87-1143.)

    (205 ILCS 690/15 new)
    Sec. 15.  Verification of check  purchasers.   A  person,
other  than a financial institution, who sells or distributes
checks that may be drawn  against  funds  held  by  financial
institutions  in  a  consumer-deposit  account  shall  before
delivery  of  the  checks to the person ordering them, verify
the  accuracy  of  that  person's  name,  address,  telephone
number, and social security number.  If  the  information  is
not  first verified, the seller or distributor shall not sell
or distribute the ordered checks.  The sale  or  distribution
of  checks to any person as to whom verification, as provided
for herein, has  not  first  been  made  shall  constitute  a
business  offense for which the fine shall be $1,000 for each

    (205 ILCS 690/20 new)
    Sec. 20.  Registration.  A person, other than a financial
institution, who sells or  distributes  checks  that  may  be
drawn  against  funds  held  by  financial  institutions in a
consumer-deposit account shall register with the Commissioner
within 30 days after the effective date  of  this  amendatory
Act  of  1997  or  within 30 days after commencement of doing
business in this State,  whichever  is  later,  and  annually
thereafter.   The  person shall register on such forms as may
be prescribed by the Commissioner, which shall  include  such
information   as  the  Commissioner  may  deem  necessary  or
appropriate to carry out the purposes of this Act.

    (205 ILCS 690/21 new)
    Sec. 21. Fees. All moneys received  by  the  Commissioner
under  this Act shall be paid into, and all expenses incurred
by the Commissioner under this Act shall be  paid  from,  the
Bank  and  Trust Company Fund. The Commissioner may prescribe
and assess reasonable fees  to  be  paid  by  registrants  to
recover the costs of administering this Act.

    (205 ILCS 690/25 new)
    Sec.  25.  Bond; conditions; amount.  At the time of each
registration,  the  registrant  shall  file  with,  and  have
approved by, the Commissioner  a  surety  bond  issued  by  a
bonding  company  authorized  to do business in this State in
the principal sum of $10,000.  The  bond  shall  run  to  the
Commissioner  and  shall be for any liability incurred by the
registrant for any violation of this Act,  including  damages
awarded in actions brought pursuant to Section 35.
    From  time  to  time,  the Commissioner may determine the
amount of liabilities as described herein and may require the
registrant to file a bond in  an  additional  sum  if  it  is
determined   to   be   necessary   in   accordance  with  the
requirements of this Section. In no case shall  the  bond  be
less  than the initial $10,000, nor more than the outstanding
liabilities if in excess of $10,000.

    (205 ILCS 690/30 new)
    Sec. 30.  Civil action when the Commissioner  believes  a
person  has  violated, is violating, or will violate this Act
or a rule prescribed under this  Act,  the  Commissioner  may
request  the  Attorney  General  to  bring  a civil action in
circuit court to enjoin the violation or  enforce  compliance
with  this Act or a rule prescribed under this Act.  A person
not complying with an injunction issued under this Section is
liable to the State of Illinois in a civil suit for an amount
of not more than $10,000.

    (205 ILCS 690/35 new)
    Sec. 35.  Recovery of damages.  A person who  is  damaged
by  reason  of the registrant's failure to verify as required
under this Act may sue such person for damages including,  at
a  minimum,  liquidated damages in the amount of $1,000, plus
all costs and expenses, including reasonable attorneys' fees,
incurred in the prosecution of the action.

    (205 ILCS 690/36 new)
    Sec. 36.  Criminal penalties.  A person who willfully and
knowingly subscribes to or makes, or causes to be  made,  any
false  statement  on  the  registration  form  with intent to
deceive  the  Commissioner  or  his  administrative  officers
shall, upon conviction  thereof,  be  guilty  of  a  Class  3

    (205 ILCS 690/37 new)
    Sec.  37.  Record  retention.   Records  pertaining to or
constituting  the  procedures  for   and   results   of   the
verification  required under this Act shall be retained for a
period  of  5  years  from  the  date  of  receipt   of   the

    (205 ILCS 690/38 new)
    Sec.  38.  Rules.   The  Commissioner  has  the  power to
promulgate reasonable rules for the purpose of  administering
the provisions of this Act.
    (205 ILCS 690/39 new)
    Sec.  39.  Severability.   The provisions of this Act are
severable under Section 1.31 of the Statute on Statutes.

    Section 99.  Effective date.  This Act takes effect  upon
becoming law.

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