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Public Act 91-0929
HB3838 Re-Enrolled LRB9112086JSgc
AN ACT concerning financial institutions.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Banking Act is amended by
changing Section 48.1 and adding Section 48.6 as follows:
(205 ILCS 5/48.1) (from Ch. 17, par. 360)
Sec. 48.1. Customer financial records; confidentiality.
(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 a
deposit or account;
(2) a statement, ledger card or other record on any
deposit or account, which shows each transaction in or
with respect to that account;
(3) a check, draft or money order drawn on a bank
or issued and payable by a bank; or
(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 financial statements or other
financial information provided by the customer.
(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 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.
(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.
(3) The publication of data furnished from
financial records relating to customers where the data
cannot be identified to any particular customer 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 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 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.
(7) The furnishing of information to the
appropriate law enforcement authorities where the bank
reasonably believes it has been the victim of a crime.
(8) The furnishing of information under the Uniform
Disposition of Unclaimed Property Act.
(9) The furnishing of information under the
Illinois Income Tax Act and the Illinois Estate and
Generation-Skipping Transfer Tax Act.
(10) The furnishing of information under the
federal Currency and Foreign Transactions Reporting Act
Title 31, United States Code, Section 1051 et seq.
(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.
(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.
(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
Section 5 and conducted at an affiliate facility.
(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 encumbering or
surrendering any assets held by the 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 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.
(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.
(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, if the bank suspects 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 (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 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 and the Illinois Domestic Violence Act of
1986.
(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:
(1) the customer has authorized disclosure to the
person;
(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
(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.
(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.
(e) Any officer or employee of a 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.
(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.
(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 court order. The Commissioner shall determine the rates
and conditions under which payment may be made.
(Source: P.A. 90-18, eff. 7-1-97; 90-665, eff. 7-30-98;
91-330, eff. 7-29-99.)
(205 ILCS 5/48.6 new)
Sec. 48.6. Retention of records. Unless a federal law
requires otherwise, the Commissioner may by rule prescribe
periods of time for which banks operating under this Act must
retain records and after the expiration of which, the bank
may destroy those records. No liability shall accrue against
the bank, the Commissioner, or this State for the destruction
of records according to rules of the Commissioner promulgated
under the authority of this Section. In any cause or
proceeding in which any records may be called in question or
be demanded by any bank, a showing of the expiration of the
period so prescribed shall be sufficient excuse for failure
to produce them.
Section 10. The Illinois Savings and Loan Act of 1985 is
amended by changing Sections 1-10.14, 1-10.21, and 3-8 as
follows:
(205 ILCS 105/1-10.14) (from Ch. 17, par. 3301-10.14)
Sec. 1-10.14. "Person": an individual, limited liability
company, partnership, joint venture, trust, estate,
unincorporated association, or corporation.
(Source: P.A. 84-543.)
(205 ILCS 105/1-10.21) (from Ch. 17, par. 3301-10.21)
Sec. 1-10.21. "Service Corporation": any corporation or
limited liability company which is 90% or more owned by one
or more associations, whose purpose or purposes are
reasonably incident to the accomplishment of the express
powers conferred upon associations by this Act or a
corporation or limited liability company chartered for any
purpose whatsoever by at least one association or a
corporation or limited liability company in which an
association has a controlling interest, and the ownership of
all of whose stock or ownership interest is subject to the
regulations of the Commissioner.
(Source: P.A. 84-543.)
(205 ILCS 105/3-8) (from Ch. 17, par. 3303-8)
Sec. 3-8. Access to books and records; communication
with members.
(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.
(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.
(c) This Section does not prohibit:
(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, Federal Savings and Loan Insurance
Corporation and its successors, Federal Deposit Insurance
Corporation, Resolution Trust Corporation and its
successors, Federal Home Loan Bank Board and its
successors, Office of Thrift Supervision, Federal Housing
Finance Board, Board of Governors of the Federal Reserve
System, any Federal Reserve Bank, or the Office of the
Comptroller of the Currency 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 credit information between an association and other
associations or financial institutions or commercial
enterprises, directly or through a consumer reporting
agency;
(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, if the association suspects
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 and the Illinois Domestic Violence Act of
1986.
(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. 89-508, eff. 7-3-96; 90-18, eff. 7-1-97.)
Section 15. The Savings Bank Act is amended by changing
Sections 1007.90, 1007.105, and 4013 as follows:
(205 ILCS 205/1007.90) (from Ch. 17, par. 7301-7.90)
Sec. 1007.90. "Person" means an individual, corporation,
limited liability company, partnership, joint venture, trust,
estate, or unincorporated association.
(Source: P.A. 86-1213.)
(205 ILCS 205/1007.105) (from Ch. 17, par. 7301-7.105)
Sec. 1007.105. "Service corporation" means any
corporation or limited liability company that is 51% or more
owned by one or more savings banks, or by savings banks and
other depository institutions, whose purposes are reasonably
incident to the accomplishment of the powers conferred upon
savings banks by this Act.
(Source: P.A. 91-97, eff. 7-9-99.)
(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.
(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 Deposit Insurance
Corporation 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 credit information between a savings bank and other
savings banks or financial institutions or commercial
enterprises, directly or through a consumer reporting
agency.
(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, if the savings bank
suspects 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 and the Illinois Domestic
Violence Act of 1986.
(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. 89-508, eff. 7-3-96; 90-18, eff. 7-1-97.)
Section 20. The Illinois Credit Union Act is amended by
changing Sections 10, 15, 20, 22, 31, 32, 33, 35, and 52 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.
(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 credit information between a credit
union and other credit unions or financial
institutions or commercial enterprises, directly or
through a consumer reporting agency;
(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; or
(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, if the
credit union suspects 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 and the
Illinois Domestic Violence Act of 1986.
(c) 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, records or other data of a member required or
requested to be produced pursuant to a lawful subpoena,
summons, warrant or court order.
(Source: P.A. 89-603, eff. 8-2-96; 90-18, eff. 7-1-97.)
(205 ILCS 305/15) (from Ch. 17, par. 4416)
Sec. 15. Membership defined.
(1) The membership of a credit union shall be limited to
and consist of the subscribers to the articles of
incorporation and such other persons within the common bond,
as defined in this Act and as set forth in the credit union's
articles of incorporation, as have been duly admitted
members, have paid the required entrance fee or membership
fee, or both, if any, have subscribed for one or more shares,
and have paid the initial installment thereon, and have
complied with such other requirements as the articles of
incorporation or bylaws specify. Two or more persons within
the common bond who have jointly subscribed for one or more
shares under a joint account and have complied with all
membership requirements may each be admitted to membership.
The surviving spouse of a credit union member may, within 6
months of the member's death, become a member of the credit
union by paying the required entrance fee or membership fee
or both, if any, by subscribing for one or more shares and
paying the initial installment thereon, and by complying with
such other requirements as the articles of incorporation or
bylaws specify.
(2) Any member may withdraw from a credit union at any
time upon giving notice of withdrawal as required by the
bylaws.
(3) Any member may be expelled by a 2/3 vote of the
members present at any regular or special meeting called to
consider the matter, but only after an opportunity has been
given to the member to be heard.
(4) A member who has caused a loss to the credit union
or who has failed to maintain one or more shares at the
credit union may be expelled by a majority vote of a quorum
of directors if the board has adopted a policy providing for
expulsion under those circumstances. In maintaining and
enforcing a this policy based on loss, the board may
consider, without limitation, a member's failure to pay
amounts due under a loan, failure to provide collected funds
to cover withdrawals or personal share drafts or credit union
drafts where the member is a remitter, or failure to pay fees
or charges due the credit union. If a the policy is adopted
by the board pursuant to this subsection (4), written notice
of the policy and the effective date of the policy shall be
mailed to each member of the credit union at the member's
current address appearing on the records of the credit union.
The policy shall be mailed to members not fewer than 30 days
prior to the effective date of the policy. In addition, new
members shall be provided written notice of the policy prior
to or upon applying for membership.
(5) All or any part of the amount paid on shares of a
withdrawing member or expelled member with any declared
dividends or interest on the date of withdrawal or expulsion
must, after deducting all amounts due from the member to the
credit union, be paid to him. The credit union may require
not more than 60 days' written notice of intention to
withdraw shares, but a notice of withdrawal does not entitle
the member to any preferred or prior claim in the event of
liquidation. Withdrawing or expelled members have no further
rights in the credit union, but are not, by withdrawal or
expulsion, released from any obligation they owe to the
credit union.
(6) A member who has caused a loss to the credit union
may be denied any or all credit union services in accordance
with board policy, however, members who are denied services
shall be allowed to maintain a share account and to vote on
all issues put to a vote of the membership.
(Source: P.A. 88-235; 89-603, eff. 8-2-96.)
(205 ILCS 305/20) (from Ch. 17, par. 4421)
Sec. 20. Election or appointment of officials.
(1) The credit union shall be directed by a Board of
Directors consisting of no less than 7 in number, to be
elected at the annual meeting by and from the members.
Directors shall hold office until the next annual meeting,
unless their terms are staggered. Upon amendment of its
bylaws, a credit union may divide the Directors into 2 or 3
classes with each class as nearly equal in number as
possible. The term of office of the directors of the first
class shall expire at the first annual meeting after their
election, that of the second class shall expire at the second
annual meeting after their election, and that of the third
class, if any, shall expire at the third annual meeting after
their election. At each annual meeting after the
classification, the number of directors equal to the number
of directors whose terms expire at the time of the meeting
shall be elected to hold office until the second succeeding
annual meeting if there are 2 classes or until the third
succeeding annual meeting if there are 3 classes. A Director
shall hold office for the term for which he or she is elected
and until his or her successor is elected and qualified. In
all elections for Directors, every member has the right to
vote, in person or by proxy, the number of shares owned by
him, or in the case of a member other than a natural person,
the member's one vote, for as many persons as there are
Directors to be elected, or to cumulate such shares, and give
one candidate as many votes as the number of Directors
multiplied by the number of his shares equals, or to
distribute them on the same principle among as many
candidates as he may desire and the Directors shall not be
elected in any other manner. Shares held in a joint account
owned by more than one member may be voted by any one of the
members, however, the number of cumulative votes cast may not
exceed a total equal to the number of shares multiplied by
the number of directors to be elected. A majority of the
shares entitled to vote shall be represented either in person
or by proxy for the election of Directors. Each Director
shall wholly take and subscribe to an oath that he will
diligently and honestly perform his duties in administering
the affairs of the credit union, that while he may delegate
to another the performance of those administrative duties he
is not thereby relieved from his responsibility for their
performance, that he will not knowingly violate or willingly
permit to be violated any law applicable to the credit union,
and that he is the owner of at least one share of the credit
union.
(2) The Board of Directors shall appoint from among the
members of the credit union, a Supervisory Committee of not
less than 3 members at the organization meeting and within 30
days following each annual meeting of the members for such
terms as the bylaws provide. Members of the Supervisory
Committee may, but need not be, on the Board of Directors,
but shall not be officers of the credit union, or members of
the Credit Committee, or the credit manager if no Credit
Committee has been appointed.
(3) The Board of Directors may shall appoint, from among
the members of the credit union, a Credit Committee
consisting of an odd number, not less than 3 for such terms
as the bylaws provide. Members of the Credit Committee may,
but need not be, Directors or officers of the credit union,
but shall not be members of the Supervisory Committee.
(4) The Board of Directors shall appoint from among the
members of the credit union a Membership Committee of one or
more persons. It shall act upon all applications for
membership and submit a report of its actions to the Board of
Directors at the next monthly meeting for review.
(Source: P.A. 88-235; 89-74, eff. 6-30-95.)
(205 ILCS 305/22) (from Ch. 17, par. 4423)
Sec. 22. Vacancies. The Board of Directors shall, by
appointment from among the credit union members, fill any
vacancies occurring on the Board for the remainder of the
Director's unexpired term or until a successor is elected and
qualified. The Board shall, by appointment from among the
credit union members, fill vacancies in the Membership
Committee, Credit Committee, or credit manager if no Credit
Committee has been appointed, and Supervisory Committees.
(Source: P.A. 81-329.)
(205 ILCS 305/31) (from Ch. 17, par. 4432)
Sec. 31. Supervision of loans Authority of Credit
Committee. The Credit Committee shall have the general
supervision of all loans and lines of credit to members. If
no Credit Committee has been appointed, the credit manager
shall have the general supervision of all loans and lines of
credit to members.
(Source: P.A. 81-329.)
(205 ILCS 305/32) (from Ch. 17, par. 4433)
Sec. 32. Meetings of Credit Committee. If a Credit
Committee has been appointed by the board, the provisions of
this Section shall apply. The Credit Committee shall meet as
often as the operations of the credit union require and not
less frequently than once a month to consider applications
for loans and lines of credit. Unless a greater percentage
is required in the credit union's bylaws, a majority of the
Credit Committee shall constitute a quorum. No loan shall be
made unless it is approved, in writing, by a majority of the
Committee who are present at a meeting at which a quorum is
present and at which the application is considered. The
Credit Committee shall report to the Directors at each Board
meeting on all meetings held and actions taken since the last
Board meeting.
(Source: P.A. 81-329.)
(205 ILCS 305/33) (from Ch. 17, par. 4434)
Sec. 33. Credit manager.
(1) The Credit Committee may or, if no Credit Committee
has been appointed, the Board of Directors shall appoint a
credit manager who shall be empowered to approve or
disapprove loans and lines of credit under conditions
prescribed by the Board of Directors. The Credit Committee
or credit manager may appoint one or more loan officers with
the power to approve loans and lines of credit, subject to
such limitations or conditions as may be prescribed by the
Board of Directors. The credit manager and any loan officers
appointed by the Credit Committee or the credit manager shall
keep written records of all transactions and shall report, in
writing, to the Credit Committee if a Credit Committee has
been appointed, otherwise which shall in turn report, in
writing, to the Directors at each Board meeting.
(2) Applications for loans or lines of credit not
approved by a loan officer shall be reviewed and acted upon
by the Credit Committee or credit manager.
(3) The loan officers must keep written records of all
loans or lines of credit granted or refused and any other
transactions and submit a report to the Credit Committee or
credit manager at least once each month.
(Source: P.A. 81-329.)
(205 ILCS 305/35) (from Ch. 17, par. 4436)
Sec. 35. Suspension and removal of officials.
(1) The Supervisory Committee, by a unanimous vote of
the whole committee, may suspend any member of the Credit
Committee or the credit manager if no Credit Committee has
been appointed and. The Supervisory Committee shall report
such action to the Board of Directors for appropriate action.
(2) The Supervisory Committee, by a unanimous vote of
the whole committee, may suspend any officer or member of the
Board of Directors until the next members' meeting, which
shall be held not less than 7 nor more than 21 days after
such suspension. At such meeting, the suspension shall be
acted upon by the members, who shall either confirm or reject
it by majority vote.
(Source: P.A. 81-329.)
(205 ILCS 305/52) (from Ch. 17, par. 4453)
Sec. 52. Loans to directors, officers, Credit Committee,
credit manager, and Supervisory Committee members. A credit
union may make loans to its directors, officers, Credit
Committee members, credit manager, and Supervisory Committee
members, provided that the loan complies with all lawful
requirements under this Act with respect to loans to other
borrowers. No loan may be made to or cosigned by any
director, officer, Credit Committee member, credit manager if
no Credit Committee has been appointed, or Supervisory
Committee member which would cause the aggregate amount of
all loans then outstanding to or cosigned by all directors,
officers, Credit Committee members, credit manager if no
Credit Committee has been appointed, or Supervisory Committee
members to exceed 20% of the unimpaired capital and surplus
of the credit union.
(Source: P.A. 85-1273.)
Section 99. Effective date. This Act takes effect upon
becoming law.
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