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92_SB0119enr
SB119 Enrolled LRB9204827JSpc
1 AN ACT in relation to financial regulation.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Illinois Banking Act is amended by
5 changing Section 48.1 as follows:
6 (205 ILCS 5/48.1) (from Ch. 17, par. 360)
7 Sec. 48.1. Customer financial records; confidentiality.
8 (a) For the purpose of this Section, the term "financial
9 records" means any original, any copy, or any summary of:
10 (1) a document granting signature authority over a
11 deposit or account;
12 (2) a statement, ledger card or other record on any
13 deposit or account, which shows each transaction in or
14 with respect to that account;
15 (3) a check, draft or money order drawn on a bank
16 or issued and payable by a bank; or
17 (4) any other item containing information
18 pertaining to any relationship established in the
19 ordinary course of a bank's business between a bank and
20 its customer, including financial statements or other
21 financial information provided by the customer.
22 (b) This Section does not prohibit:
23 (1) The preparation, examination, handling or
24 maintenance of any financial records by any officer,
25 employee or agent of a bank having custody of the
26 records, or the examination of the records by a certified
27 public accountant engaged by the bank to perform an
28 independent audit.
29 (2) The examination of any financial records by, or
30 the furnishing of financial records by a bank to, any
31 officer, employee or agent of (i) the Commissioner of
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1 Banks and Real Estate, (ii) after May 31, 1997, a state
2 regulatory authority authorized to examine a branch of a
3 State bank located in another state, (iii) the
4 Comptroller of the Currency, (iv) the Federal Reserve
5 Board, or (v) the Federal Deposit Insurance Corporation
6 for use solely in the exercise of his duties as an
7 officer, employee, or agent.
8 (3) The publication of data furnished from
9 financial records relating to customers where the data
10 cannot be identified to any particular customer or
11 account.
12 (4) The making of reports or returns required under
13 Chapter 61 of the Internal Revenue Code of 1986.
14 (5) Furnishing information concerning the dishonor
15 of any negotiable instrument permitted to be disclosed
16 under the Uniform Commercial Code.
17 (6) The exchange in the regular course of business
18 of (i) credit information between a bank and other banks
19 or financial institutions or commercial enterprises,
20 directly or through a consumer reporting agency or (ii)
21 financial records or information derived from financial
22 records between a bank and other banks or financial
23 institutions or commercial enterprises for the purpose of
24 conducting due diligence pursuant to a purchase or sale
25 involving the bank or assets or liabilities of the bank.
26 (7) The furnishing of information to the
27 appropriate law enforcement authorities where the bank
28 reasonably believes it has been the victim of a crime.
29 (8) The furnishing of information under the Uniform
30 Disposition of Unclaimed Property Act.
31 (9) The furnishing of information under the
32 Illinois Income Tax Act and the Illinois Estate and
33 Generation-Skipping Transfer Tax Act.
34 (10) The furnishing of information under the
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1 federal Currency and Foreign Transactions Reporting Act
2 Title 31, United States Code, Section 1051 et seq.
3 (11) The furnishing of information under any other
4 statute that by its terms or by regulations promulgated
5 thereunder requires the disclosure of financial records
6 other than by subpoena, summons, warrant, or court order.
7 (12) The furnishing of information about the
8 existence of an account of a person to a judgment
9 creditor of that person who has made a written request
10 for that information.
11 (13) The exchange in the regular course of business
12 of information between commonly owned banks in connection
13 with a transaction authorized under paragraph (23) of
14 Section 5 and conducted at an affiliate facility.
15 (14) The furnishing of information in accordance
16 with the federal Personal Responsibility and Work
17 Opportunity Reconciliation Act of 1996. Any bank governed
18 by this Act shall enter into an agreement for data
19 exchanges with a State agency provided the State agency
20 pays to the bank a reasonable fee not to exceed its
21 actual cost incurred. A bank providing information in
22 accordance with this item shall not be liable to any
23 account holder or other person for any disclosure of
24 information to a State agency, for encumbering or
25 surrendering any assets held by the bank in response to a
26 lien or order to withhold and deliver issued by a State
27 agency, or for any other action taken pursuant to this
28 item, including individual or mechanical errors, provided
29 the action does not constitute gross negligence or
30 willful misconduct. A bank shall have no obligation to
31 hold, encumber, or surrender assets until it has been
32 served with a subpoena, summons, warrant, court or
33 administrative order, lien, or levy.
34 (15) The exchange in the regular course of business
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1 of information between a bank and any commonly owned
2 affiliate of the bank, subject to the provisions of the
3 Financial Institutions Insurance Sales Law.
4 (16) The furnishing of information to law
5 enforcement authorities, the Illinois Department on Aging
6 and its regional administrative and provider agencies,
7 the Department of Human Services Office of Inspector
8 General, or public guardians, if the bank suspects that a
9 customer who is an elderly or disabled person has been or
10 may become the victim of financial exploitation. For the
11 purposes of this item (16), the term: (i) "elderly
12 person" means a person who is 60 or more years of age,
13 (ii) "disabled person" means a person who has or
14 reasonably appears to the bank to have a physical or
15 mental disability that impairs his or her ability to seek
16 or obtain protection from or prevent financial
17 exploitation, and (iii) "financial exploitation" means
18 tortious or illegal use of the assets or resources of an
19 elderly or disabled person, and includes, without
20 limitation, misappropriation of the elderly or disabled
21 person's assets or resources by undue influence, breach
22 of fiduciary relationship, intimidation, fraud,
23 deception, extortion, or the use of assets or resources
24 in any manner contrary to law. A bank or person
25 furnishing information pursuant to this item (16) shall
26 be entitled to the same rights and protections as a
27 person furnishing information under the Elder Abuse and
28 Neglect Act and the Illinois Domestic Violence Act of
29 1986.
30 (17) The disclosure of financial records or
31 information as necessary to effect, administer, or
32 enforce a transaction requested or authorized by the
33 customer, or in connection with:
34 (A) servicing or processing a financial
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1 product or service requested or authorized by the
2 customer;
3 (B) maintaining or servicing a customer's
4 account with the bank; or
5 (C) a proposed or actual securitization or
6 secondary market sale (including sales of servicing
7 rights) related to a transaction of a customer.
8 Nothing in this item (17), however, authorizes the
9 sale of the financial records or information of a
10 customer without the consent of the customer.
11 (18) The disclosure of financial records or
12 information as necessary to protect against actual or
13 potential fraud, unauthorized transactions, claims, or
14 other liability.
15 (19) (a) The disclosure of financial records or
16 information related to a private label credit program
17 between a financial institution and a private label party
18 in connection with that private label credit program.
19 Such information is limited to outstanding balance,
20 available credit, payment and performance and account
21 history, product references, purchase information, and
22 information related to the identity of the customer.
23 (b) (l) For purposes of this paragraph (19) of
24 subsection (b) of Section 48.1, a "private label credit
25 program" means a credit program involving a financial
26 institution and a private label party that is used by a
27 customer of the financial institution and the private
28 label party primarily for payment for goods or services
29 sold, manufactured, or distributed by a private label
30 party.
31 (2) For purposes of this paragraph (19) of
32 subsection (b) of Section 48.l, a "private label party"
33 means, with respect to a private label credit program,
34 any of the following: a retailer, a merchant, a
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1 manufacturer, a trade group, or any such person's
2 affiliate, subsidiary, member, agent, or service
3 provider.
4 (c) Except as otherwise provided by this Act, a bank may
5 not disclose to any person, except to the customer or his
6 duly authorized agent, any financial records or financial
7 information obtained from financial records relating to that
8 customer of that bank unless:
9 (1) the customer has authorized disclosure to the
10 person;
11 (2) the financial records are disclosed in response
12 to a lawful subpoena, summons, warrant or court order
13 which meets the requirements of subsection (d) of this
14 Section; or
15 (3) the bank is attempting to collect an obligation
16 owed to the bank and the bank complies with the
17 provisions of Section 2I of the Consumer Fraud and
18 Deceptive Business Practices Act.
19 (d) A bank shall disclose financial records under
20 paragraph (2) of subsection (c) of this Section under a
21 lawful subpoena, summons, warrant, or court order only after
22 the bank mails a copy of the subpoena, summons, warrant, or
23 court order to the person establishing the relationship with
24 the bank, if living, and, otherwise his personal
25 representative, if known, at his last known address by first
26 class mail, postage prepaid, unless the bank is specifically
27 prohibited from notifying the person by order of court or by
28 applicable State or federal law. A bank shall not mail a
29 copy of a subpoena to any person pursuant to this subsection
30 if the subpoena was issued by a grand jury under the
31 Statewide Grand Jury Act.
32 (e) Any officer or employee of a bank who knowingly and
33 willfully furnishes financial records in violation of this
34 Section is guilty of a business offense and, upon conviction,
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1 shall be fined not more than $1,000.
2 (f) Any person who knowingly and willfully induces or
3 attempts to induce any officer or employee of a bank to
4 disclose financial records in violation of this Section is
5 guilty of a business offense and, upon conviction, shall be
6 fined not more than $1,000.
7 (g) A bank shall be reimbursed for costs that are
8 reasonably necessary and that have been directly incurred in
9 searching for, reproducing, or transporting books, papers,
10 records, or other data of a customer required or requested to
11 be produced pursuant to a lawful subpoena, summons, warrant,
12 or court order. The Commissioner shall determine the rates
13 and conditions under which payment may be made.
14 (Source: P.A. 91-330, eff. 7-29-99; 91-929, eff. 12-15-00;
15 92-483, eff. 8-23-01.)
16 Section 10. The Illinois Savings and Loan Act of 1985 is
17 amended by changing Section 3-8 as follows:
18 (205 ILCS 105/3-8) (from Ch. 17, par. 3303-8)
19 Sec. 3-8. Access to books and records; communication
20 with members.
21 (a) Every member or holder of capital shall have the
22 right to inspect the books and records of the association
23 that pertain to his account. Otherwise, the right of
24 inspection and examination of the books and records shall be
25 limited as provided in this Act, and no other person shall
26 have access to the books and records or shall be entitled to
27 a list of the members.
28 (b) For the purpose of this Section, the term "financial
29 records" means any original, any copy, or any summary of (i)
30 a document granting signature authority over a deposit or
31 account; (ii) a statement, ledger card, or other record on
32 any deposit or account that shows each transaction in or with
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1 respect to that account; (iii) a check, draft, or money order
2 drawn on an association or issued and payable by an
3 association; or (iv) any other item containing information
4 pertaining to any relationship established in the ordinary
5 course of an association's business between an association
6 and its customer, including financial statements or other
7 financial information provided by the member or holder of
8 capital.
9 (c) This Section does not prohibit:
10 (1) The preparation, examination, handling, or
11 maintenance of any financial records by any officer,
12 employee, or agent of an association having custody of
13 those records or the examination of those records by a
14 certified public accountant engaged by the association to
15 perform an independent audit.
16 (2) The examination of any financial records by, or
17 the furnishing of financial records by an association to,
18 any officer, employee, or agent of the Commissioner of
19 Banks and Real Estate, Federal Savings and Loan Insurance
20 Corporation and its successors, Federal Deposit Insurance
21 Corporation, Resolution Trust Corporation and its
22 successors, Federal Home Loan Bank Board and its
23 successors, Office of Thrift Supervision, Federal Housing
24 Finance Board, Board of Governors of the Federal Reserve
25 System, any Federal Reserve Bank, or the Office of the
26 Comptroller of the Currency for use solely in the
27 exercise of his duties as an officer, employee, or agent.
28 (3) The publication of data furnished from
29 financial records relating to members or holders of
30 capital where the data cannot be identified to any
31 particular member, holder of capital, or account.
32 (4) The making of reports or returns required under
33 Chapter 61 of the Internal Revenue Code of 1986.
34 (5) Furnishing information concerning the dishonor
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1 of any negotiable instrument permitted to be disclosed
2 under the Uniform Commercial Code.
3 (6) The exchange in the regular course of business
4 of (i) credit information between an association and
5 other associations or financial institutions or
6 commercial enterprises, directly or through a consumer
7 reporting agency or (ii) financial records or information
8 derived from financial records between an association and
9 other associations or financial institutions or
10 commercial enterprises for the purpose of conducting due
11 diligence pursuant to a purchase or sale involving the
12 association or assets or liabilities of the association.
13 (7) The furnishing of information to the
14 appropriate law enforcement authorities where the
15 association reasonably believes it has been the victim of
16 a crime.
17 (8) The furnishing of information pursuant to the
18 Uniform Disposition of Unclaimed Property Act.
19 (9) The furnishing of information pursuant to the
20 Illinois Income Tax Act and the Illinois Estate and
21 Generation-Skipping Transfer Tax Act.
22 (10) The furnishing of information pursuant to the
23 federal "Currency and Foreign Transactions Reporting
24 Act", (Title 31, United States Code, Section 1051 et
25 seq.).
26 (11) The furnishing of information pursuant to any
27 other statute that by its terms or by regulations
28 promulgated thereunder requires the disclosure of
29 financial records other than by subpoena, summons,
30 warrant, or court order.
31 (12) The exchange of information between an
32 association and an affiliate of the association; as used
33 in this item, "affiliate" includes any company,
34 partnership, or organization that controls, is controlled
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1 by, or is under common control with an association.
2 (13) The furnishing of information in accordance
3 with the federal Personal Responsibility and Work
4 Opportunity Reconciliation Act of 1996. Any association
5 governed by this Act shall enter into an agreement for
6 data exchanges with a State agency provided the State
7 agency pays to the association a reasonable fee not to
8 exceed its actual cost incurred. An association
9 providing information in accordance with this item shall
10 not be liable to any account holder or other person for
11 any disclosure of information to a State agency, for
12 encumbering or surrendering any assets held by the
13 association in response to a lien or order to withhold
14 and deliver issued by a State agency, or for any other
15 action taken pursuant to this item, including individual
16 or mechanical errors, provided the action does not
17 constitute gross negligence or willful misconduct. An
18 association shall have no obligation to hold, encumber,
19 or surrender assets until it has been served with a
20 subpoena, summons, warrant, court or administrative
21 order, lien, or levy.
22 (14) The furnishing of information to law
23 enforcement authorities, the Illinois Department on Aging
24 and its regional administrative and provider agencies,
25 the Department of Human Services Office of Inspector
26 General, or public guardians, if the association suspects
27 that a customer who is an elderly or disabled person has
28 been or may become the victim of financial exploitation.
29 For the purposes of this item (14), the term: (i)
30 "elderly person" means a person who is 60 or more years
31 of age, (ii) "disabled person" means a person who has or
32 reasonably appears to the association to have a physical
33 or mental disability that impairs his or her ability to
34 seek or obtain protection from or prevent financial
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1 exploitation, and (iii) "financial exploitation" means
2 tortious or illegal use of the assets or resources of an
3 elderly or disabled person, and includes, without
4 limitation, misappropriation of the elderly or disabled
5 person's assets or resources by undue influence, breach
6 of fiduciary relationship, intimidation, fraud,
7 deception, extortion, or the use of assets or resources
8 in any manner contrary to law. An association or person
9 furnishing information pursuant to this item (14) shall
10 be entitled to the same rights and protections as a
11 person furnishing information under the Elder Abuse and
12 Neglect Act and the Illinois Domestic Violence Act of
13 1986.
14 (15) The disclosure of financial records or
15 information as necessary to effect, administer, or
16 enforce a transaction requested or authorized by the
17 member or holder of capital, or in connection with:
18 (A) servicing or processing a financial
19 product or service requested or authorized by the
20 member or holder of capital;
21 (B) maintaining or servicing an account of a
22 member or holder of capital with the association; or
23 (C) a proposed or actual securitization or
24 secondary market sale (including sales of servicing
25 rights) related to a transaction of a member or
26 holder of capital.
27 Nothing in this item (15), however, authorizes the
28 sale of the financial records or information of a member
29 or holder of capital without the consent of the member or
30 holder of capital.
31 (16) The disclosure of financial records or
32 information as necessary to protect against or prevent
33 actual or potential fraud, unauthorized transactions,
34 claims, or other liability.
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1 (17) (a) The disclosure of financial records or
2 information related to a private label credit program
3 between a financial institution and a private label party
4 in connection with that private label credit program.
5 Such information is limited to outstanding balance,
6 available credit, payment and performance and account
7 history, product references, purchase information, and
8 information related to the identity of the customer.
9 (b) (l) For purposes of this paragraph (17) of
10 subsection (c) of Section 3-8, a "private label credit
11 program" means a credit program involving a financial
12 institution and a private label party that is used by a
13 customer of the financial institution and the private
14 label party primarily for payment for goods or services
15 sold, manufactured, or distributed by a private label
16 party.
17 (2) For purposes of this paragraph (17) of
18 subsection (c) of Section 3-8, a "private label party"
19 means, with respect to a private label credit program,
20 any of the following: a retailer, a merchant, a
21 manufacturer, a trade group, or any such person's
22 affiliate, subsidiary, member, agent, or service
23 provider.
24 (d) An association may not disclose to any person,
25 except to the member or holder of capital or his duly
26 authorized agent, any financial records relating to that
27 member or holder of capital of that association unless:
28 (1) The member or holder of capital has authorized
29 disclosure to the person; or
30 (2) The financial records are disclosed in response
31 to a lawful subpoena, summons, warrant, or court order
32 that meets the requirements of subsection (e) of this
33 Section.
34 (e) An association shall disclose financial records
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1 under subsection (d) of this Section pursuant to a lawful
2 subpoena, summons, warrant, or court order only after the
3 association mails a copy of the subpoena, summons, warrant,
4 or court order to the person establishing the relationship
5 with the association, if living, and, otherwise, his personal
6 representative, if known, at his last known address by first
7 class mail, postage prepaid, unless the association is
8 specifically prohibited from notifying that person by order
9 of court.
10 (f) (1) Any officer or employee of an association who
11 knowingly and willfully furnishes financial records in
12 violation of this Section is guilty of a business offense
13 and, upon conviction, shall be fined not more than $1,000.
14 (2) Any person who knowingly and willfully induces or
15 attempts to induce any officer or employee of an association
16 to disclose financial records in violation of this Section is
17 guilty of a business offense and, upon conviction, shall be
18 fined not more than $1,000.
19 (g) However, if any member desires to communicate with
20 the other members of the association with reference to any
21 question pending or to be presented at a meeting of the
22 members, the association shall give him upon request a
23 statement of the approximate number of members entitled to
24 vote at the meeting and an estimate of the cost of preparing
25 and mailing the communication. The requesting member then
26 shall submit the communication to the Commissioner who, if he
27 finds it to be appropriate and truthful, shall direct that it
28 be prepared and mailed to the members upon the requesting
29 member's payment or adequate provision for payment of the
30 expenses of preparation and mailing.
31 (h) An association shall be reimbursed for costs that
32 are necessary and that have been directly incurred in
33 searching for, reproducing, or transporting books, papers,
34 records, or other data of a customer required to be
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1 reproduced pursuant to a lawful subpoena, warrant, or court
2 order.
3 (Source: P.A. 91-929, eff. 12-15-00; 92-483, eff. 8-23-01.)
4 Section 15. The Savings Bank Act is amended by changing
5 Section 4013 as follows:
6 (205 ILCS 205/4013) (from Ch. 17, par. 7304-13)
7 Sec. 4013. Access to books and records; communication
8 with members and shareholders.
9 (a) Every member or shareholder shall have the right to
10 inspect books and records of the savings bank that pertain to
11 his accounts. Otherwise, the right of inspection and
12 examination of the books and records shall be limited as
13 provided in this Act, and no other person shall have access
14 to the books and records nor shall be entitled to a list of
15 the members or shareholders.
16 (b) For the purpose of this Section, the term "financial
17 records" means any original, any copy, or any summary of (1)
18 a document granting signature authority over a deposit or
19 account; (2) a statement, ledger card, or other record on any
20 deposit or account that shows each transaction in or with
21 respect to that account; (3) a check, draft, or money order
22 drawn on a savings bank or issued and payable by a savings
23 bank; or (4) any other item containing information pertaining
24 to any relationship established in the ordinary course of a
25 savings bank's business between a savings bank and its
26 customer, including financial statements or other financial
27 information provided by the member or shareholder.
28 (c) This Section does not prohibit:
29 (1) The preparation examination, handling, or
30 maintenance of any financial records by any officer,
31 employee, or agent of a savings bank having custody of
32 records or examination of records by a certified public
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1 accountant engaged by the savings bank to perform an
2 independent audit.
3 (2) The examination of any financial records by, or
4 the furnishing of financial records by a savings bank to,
5 any officer, employee, or agent of the Commissioner of
6 Banks and Real Estate or the Federal Deposit Insurance
7 Corporation for use solely in the exercise of his duties
8 as an officer, employee, or agent.
9 (3) The publication of data furnished from
10 financial records relating to members or holders of
11 capital where the data cannot be identified to any
12 particular member, shareholder, or account.
13 (4) The making of reports or returns required under
14 Chapter 61 of the Internal Revenue Code of 1986.
15 (5) Furnishing information concerning the dishonor
16 of any negotiable instrument permitted to be disclosed
17 under the Uniform Commercial Code.
18 (6) The exchange in the regular course of business
19 of (i) credit information between a savings bank and
20 other savings banks or financial institutions or
21 commercial enterprises, directly or through a consumer
22 reporting agency or (ii) financial records or information
23 derived from financial records between a savings bank and
24 other savings banks or financial institutions or
25 commercial enterprises for the purpose of conducting due
26 diligence pursuant to a purchase or sale involving the
27 savings bank or assets or liabilities of the savings
28 bank.
29 (7) The furnishing of information to the
30 appropriate law enforcement authorities where the savings
31 bank reasonably believes it has been the victim of a
32 crime.
33 (8) The furnishing of information pursuant to the
34 Uniform Disposition of Unclaimed Property Act.
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1 (9) The furnishing of information pursuant to the
2 Illinois Income Tax Act and the Illinois Estate and
3 Generation-Skipping Transfer Tax Act.
4 (10) The furnishing of information pursuant to the
5 federal "Currency and Foreign Transactions Reporting
6 Act", (Title 31, United States Code, Section 1051 et
7 seq.).
8 (11) The furnishing of information pursuant to any
9 other statute which by its terms or by regulations
10 promulgated thereunder requires the disclosure of
11 financial records other than by subpoena, summons,
12 warrant, or court order.
13 (12) The furnishing of information in accordance
14 with the federal Personal Responsibility and Work
15 Opportunity Reconciliation Act of 1996. Any savings bank
16 governed by this Act shall enter into an agreement for
17 data exchanges with a State agency provided the State
18 agency pays to the savings bank a reasonable fee not to
19 exceed its actual cost incurred. A savings bank
20 providing information in accordance with this item shall
21 not be liable to any account holder or other person for
22 any disclosure of information to a State agency, for
23 encumbering or surrendering any assets held by the
24 savings bank in response to a lien or order to withhold
25 and deliver issued by a State agency, or for any other
26 action taken pursuant to this item, including individual
27 or mechanical errors, provided the action does not
28 constitute gross negligence or willful misconduct. A
29 savings bank shall have no obligation to hold, encumber,
30 or surrender assets until it has been served with a
31 subpoena, summons, warrant, court or administrative
32 order, lien, or levy.
33 (13) The furnishing of information to law
34 enforcement authorities, the Illinois Department on Aging
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1 and its regional administrative and provider agencies,
2 the Department of Human Services Office of Inspector
3 General, or public guardians, if the savings bank
4 suspects that a customer who is an elderly or disabled
5 person has been or may become the victim of financial
6 exploitation. For the purposes of this item (13), the
7 term: (i) "elderly person" means a person who is 60 or
8 more years of age, (ii) "disabled person" means a person
9 who has or reasonably appears to the savings bank to have
10 a physical or mental disability that impairs his or her
11 ability to seek or obtain protection from or prevent
12 financial exploitation, and (iii) "financial
13 exploitation" means tortious or illegal use of the assets
14 or resources of an elderly or disabled person, and
15 includes, without limitation, misappropriation of the
16 elderly or disabled person's assets or resources by undue
17 influence, breach of fiduciary relationship,
18 intimidation, fraud, deception, extortion, or the use of
19 assets or resources in any manner contrary to law. A
20 savings bank or person furnishing information pursuant to
21 this item (13) shall be entitled to the same rights and
22 protections as a person furnishing information under the
23 Elder Abuse and Neglect Act and the Illinois Domestic
24 Violence Act of 1986.
25 (14) The disclosure of financial records or
26 information as necessary to effect, administer, or
27 enforce a transaction requested or authorized by the
28 member or holder of capital, or in connection with:
29 (A) servicing or processing a financial
30 product or service requested or authorized by the
31 member or holder of capital;
32 (B) maintaining or servicing an account of a
33 member or holder of capital with the savings bank;
34 or
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1 (C) a proposed or actual securitization or
2 secondary market sale (including sales of servicing
3 rights) related to a transaction of a member or
4 holder of capital.
5 Nothing in this item (14), however, authorizes the
6 sale of the financial records or information of a member
7 or holder of capital without the consent of the member or
8 holder of capital.
9 (15) The exchange in the regular course of business
10 of information between a savings bank and any commonly
11 owned affiliate of the savings bank, subject to the
12 provisions of the Financial Institutions Insurance Sales
13 Law.
14 (16) The disclosure of financial records or
15 information as necessary to protect against or prevent
16 actual or potential fraud, unauthorized transactions,
17 claims, or other liability.
18 (17) (a) The disclosure of financial records or
19 information related to a private label credit program
20 between a financial institution and a private label party
21 in connection with that private label credit program.
22 Such information is limited to outstanding balance,
23 available credit, payment and performance and account
24 history, product references, purchase information, and
25 information related to the identity of the customer.
26 (b) (l) For purposes of this paragraph (17) of
27 subsection (c) of Section 4013, a "private label credit
28 program" means a credit program involving a financial
29 institution and a private label party that is used by a
30 customer of the financial institution and the private
31 label party primarily for payment for goods or services
32 sold, manufactured, or distributed by a private label
33 party.
34 (2) For purposes of this paragraph (17) of
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1 subsection (c) of Section 4013, a "private label party"
2 means, with respect to a private label credit program,
3 any of the following: a retailer, a merchant, a
4 manufacturer, a trade group, or any such person's
5 affiliate, subsidiary, member, agent, or service
6 provider.
7 (d) A savings bank may not disclose to any person,
8 except to the member or holder of capital or his duly
9 authorized agent, any financial records relating to that
10 member or shareholder of the savings bank unless:
11 (1) the member or shareholder has authorized
12 disclosure to the person; or
13 (2) the financial records are disclosed in response
14 to a lawful subpoena, summons, warrant, or court order
15 that meets the requirements of subsection (e) of this
16 Section.
17 (e) A savings bank shall disclose financial records
18 under subsection (d) of this Section pursuant to a lawful
19 subpoena, summons, warrant, or court order only after the
20 savings bank mails a copy of the subpoena, summons, warrant,
21 or court order to the person establishing the relationship
22 with the savings bank, if living, and otherwise, his personal
23 representative, if known, at his last known address by first
24 class mail, postage prepaid, unless the savings bank is
25 specifically prohibited from notifying the person by order of
26 court.
27 (f) Any officer or employee of a savings bank who
28 knowingly and willfully furnishes financial records in
29 violation of this Section is guilty of a business offense
30 and, upon conviction, shall be fined not more than $1,000.
31 (g) Any person who knowingly and willfully induces or
32 attempts to induce any officer or employee of a savings bank
33 to disclose financial records in violation of this Section is
34 guilty of a business offense and, upon conviction, shall be
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1 fined not more than $1,000.
2 (h) If any member or shareholder desires to communicate
3 with the other members or shareholders of the savings bank
4 with reference to any question pending or to be presented at
5 an annual or special meeting, the savings bank shall give
6 that person, upon request, a statement of the approximate
7 number of members or shareholders entitled to vote at the
8 meeting and an estimate of the cost of preparing and mailing
9 the communication. The requesting member shall submit the
10 communication to the Commissioner who, upon finding it to be
11 appropriate and truthful, shall direct that it be prepared
12 and mailed to the members upon the requesting member's or
13 shareholder's payment or adequate provision for payment of
14 the expenses of preparation and mailing.
15 (i) A savings bank shall be reimbursed for costs that
16 are necessary and that have been directly incurred in
17 searching for, reproducing, or transporting books, papers,
18 records, or other data of a customer required to be
19 reproduced pursuant to a lawful subpoena, warrant, or court
20 order.
21 (j) Notwithstanding the provisions of this Section, a
22 savings bank may sell or otherwise make use of lists of
23 customers' names and addresses. All other information
24 regarding a customer's account are subject to the disclosure
25 provisions of this Section. At the request of any customer,
26 that customer's name and address shall be deleted from any
27 list that is to be sold or used in any other manner beyond
28 identification of the customer's accounts.
29 (Source: P.A. 91-929, eff. 12-15-00; 92-483, eff. 8-23-01.)
30 Section 20. The Illinois Credit Union Act is amended by
31 changing Section 10 as follows:
32 (205 ILCS 305/10) (from Ch. 17, par. 4411)
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1 Sec. 10. Credit union records; member financial records.
2 (1) A credit union shall establish and maintain books,
3 records, accounting systems and procedures which accurately
4 reflect its operations and which enable the Department to
5 readily ascertain the true financial condition of the credit
6 union and whether it is complying with this Act.
7 (2) A photostatic or photographic reproduction of any
8 credit union records shall be admissible as evidence of
9 transactions with the credit union.
10 (3) (a) For the purpose of this Section, the term
11 "financial records" means any original, any copy, or any
12 summary of (1) a document granting signature authority
13 over an account, (2) a statement, ledger card or other
14 record on any account which shows each transaction in or
15 with respect to that account, (3) a check, draft or money
16 order drawn on a financial institution or other entity or
17 issued and payable by or through a financial institution
18 or other entity, or (4) any other item containing
19 information pertaining to any relationship established in
20 the ordinary course of business between a credit union
21 and its member, including financial statements or other
22 financial information provided by the member.
23 (b) This Section does not prohibit:
24 (1) The preparation, examination, handling or
25 maintenance of any financial records by any officer,
26 employee or agent of a credit union having custody
27 of such records, or the examination of such records
28 by a certified public accountant engaged by the
29 credit union to perform an independent audit.
30 (2) The examination of any financial records
31 by or the furnishing of financial records by a
32 credit union to any officer, employee or agent of
33 the Department, the National Credit Union
34 Administration, Federal Reserve board or any insurer
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1 of share accounts for use solely in the exercise of
2 his duties as an officer, employee or agent.
3 (3) The publication of data furnished from
4 financial records relating to members where the data
5 cannot be identified to any particular customer of
6 account.
7 (4) The making of reports or returns required
8 under Chapter 61 of the Internal Revenue Code of
9 1954.
10 (5) Furnishing information concerning the
11 dishonor of any negotiable instrument permitted to
12 be disclosed under the Uniform Commercial Code.
13 (6) The exchange in the regular course of
14 business of (i) credit information between a credit
15 union and other credit unions or financial
16 institutions or commercial enterprises, directly or
17 through a consumer reporting agency or (ii)
18 financial records or information derived from
19 financial records between a credit union and other
20 credit unions or financial institutions or
21 commercial enterprises for the purpose of conducting
22 due diligence pursuant to a merger or a purchase or
23 sale of assets or liabilities of the credit union.
24 (7) The furnishing of information to the
25 appropriate law enforcement authorities where the
26 credit union reasonably believes it has been the
27 victim of a crime.
28 (8) The furnishing of information pursuant to
29 the Uniform Disposition of Unclaimed Property Act.
30 (9) The furnishing of information pursuant to
31 the Illinois Income Tax Act and the Illinois Estate
32 and Generation-Skipping Transfer Tax Act.
33 (10) The furnishing of information pursuant to
34 the federal "Currency and Foreign Transactions
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1 Reporting Act", Title 31, United States Code,
2 Section 1051 et sequentia.
3 (11) The furnishing of information pursuant to
4 any other statute which by its terms or by
5 regulations promulgated thereunder requires the
6 disclosure of financial records other than by
7 subpoena, summons, warrant or court order.
8 (12) The furnishing of information in
9 accordance with the federal Personal Responsibility
10 and Work Opportunity Reconciliation Act of 1996. Any
11 credit union governed by this Act shall enter into
12 an agreement for data exchanges with a State agency
13 provided the State agency pays to the credit union a
14 reasonable fee not to exceed its actual cost
15 incurred. A credit union providing information in
16 accordance with this item shall not be liable to any
17 account holder or other person for any disclosure of
18 information to a State agency, for encumbering or
19 surrendering any assets held by the credit union in
20 response to a lien or order to withhold and deliver
21 issued by a State agency, or for any other action
22 taken pursuant to this item, including individual or
23 mechanical errors, provided the action does not
24 constitute gross negligence or willful misconduct. A
25 credit union shall have no obligation to hold,
26 encumber, or surrender assets until it has been
27 served with a subpoena, summons, warrant, court or
28 administrative order, lien, or levy.
29 (13) The furnishing of information to law
30 enforcement authorities, the Illinois Department on
31 Aging and its regional administrative and provider
32 agencies, the Department of Human Services Office of
33 Inspector General, or public guardians, if the
34 credit union suspects that a member who is an
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1 elderly or disabled person has been or may become
2 the victim of financial exploitation. For the
3 purposes of this item (13), the term: (i) "elderly
4 person" means a person who is 60 or more years of
5 age, (ii) "disabled person" means a person who has
6 or reasonably appears to the credit union to have a
7 physical or mental disability that impairs his or
8 her ability to seek or obtain protection from or
9 prevent financial exploitation, and (iii) "financial
10 exploitation" means tortious or illegal use of the
11 assets or resources of an elderly or disabled
12 person, and includes, without limitation,
13 misappropriation of the elderly or disabled person's
14 assets or resources by undue influence, breach of
15 fiduciary relationship, intimidation, fraud,
16 deception, extortion, or the use of assets or
17 resources in any manner contrary to law. A credit
18 union or person furnishing information pursuant to
19 this item (13) shall be entitled to the same rights
20 and protections as a person furnishing information
21 under the Elder Abuse and Neglect Act and the
22 Illinois Domestic Violence Act of 1986.
23 (14) The disclosure of financial records or
24 information as necessary to effect, administer, or
25 enforce a transaction requested or authorized by the
26 member, or in connection with:
27 (A) servicing or processing a financial
28 product or service requested or authorized by
29 the member;
30 (B) maintaining or servicing a member's
31 account with the credit union; or
32 (C) a proposed or actual securitization
33 or secondary market sale (including sales of
34 servicing rights) related to a transaction of a
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1 member.
2 Nothing in this item (14), however, authorizes
3 the sale of the financial records or information of
4 a member without the consent of the member.
5 (15) The disclosure of financial records or
6 information as necessary to protect against or
7 prevent actual or potential fraud, unauthorized
8 transactions, claims, or other liability.
9 (16) (a) The disclosure of financial records
10 or information related to a private label credit
11 program between a financial institution and a
12 private label party in connection with that private
13 label credit program. Such information is limited to
14 outstanding balance, available credit, payment and
15 performance and account history, product references,
16 purchase information, and information related to the
17 identity of the customer.
18 (b) (l) For purposes of this paragraph (16) of
19 subsection (b) of Section 10, a "private label
20 credit program" means a credit program involving a
21 financial institution and a private label party that
22 is used by a customer of the financial institution
23 and the private label party primarily for payment
24 for goods or services sold, manufactured, or
25 distributed by a private label party.
26 (2) For purposes of this paragraph (16) of
27 subsection (b) of Section 10, a "private label
28 party" means, with respect to a private label credit
29 program, any of the following: a retailer, a
30 merchant, a manufacturer, a trade group, or any such
31 person's affiliate, subsidiary, member, agent, or
32 service provider.
33 (c) Except as otherwise provided by this Act, a
34 credit union may not disclose to any person, except to
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1 the member or his duly authorized agent, any financial
2 records relating to that member of the credit union
3 unless:
4 (1) the member has authorized disclosure to
5 the person;
6 (2) the financial records are disclosed in
7 response to a lawful subpoena, summons, warrant or
8 court order that meets the requirements of
9 subparagraph (d) of this Section; or
10 (3) the credit union is attempting to collect
11 an obligation owed to the credit union and the
12 credit union complies with the provisions of Section
13 2I of the Consumer Fraud and Deceptive Business
14 Practices Act.
15 (d) A credit union shall disclose financial records
16 under subparagraph (c)(2) of this Section pursuant to a
17 lawful subpoena, summons, warrant or court order only
18 after the credit union mails a copy of the subpoena,
19 summons, warrant or court order to the person
20 establishing the relationship with the credit union, if
21 living, and otherwise his personal representative, if
22 known, at his last known address by first class mail,
23 postage prepaid unless the credit union is specifically
24 prohibited from notifying the person by order of court or
25 by applicable State or federal law. In the case of a
26 grand jury subpoena, a credit union shall not mail a copy
27 of a subpoena to any person pursuant to this subsection
28 if the subpoena was issued by a grand jury under the
29 Statewide Grand Jury Act or notifying the person would
30 constitute a violation of the federal Right to Financial
31 Privacy Act of 1978.
32 (e) (1) Any officer or employee of a credit union
33 who knowingly and wilfully furnishes financial
34 records in violation of this Section is guilty of a
SB119 Enrolled -27- LRB9204827JSpc
1 business offense and upon conviction thereof shall
2 be fined not more than $1,000.
3 (2) Any person who knowingly and wilfully
4 induces or attempts to induce any officer or
5 employee of a credit union to disclose financial
6 records in violation of this Section is guilty of a
7 business offense and upon conviction thereof shall
8 be fined not more than $1,000.
9 (f) A credit union shall be reimbursed for costs
10 which are reasonably necessary and which have been
11 directly incurred in searching for, reproducing or
12 transporting books, papers, records or other data of a
13 member required or requested to be produced pursuant to a
14 lawful subpoena, summons, warrant or court order. The
15 Director may determine, by rule, the rates and conditions
16 under which payment shall be made. Delivery of requested
17 documents may be delayed until final reimbursement of all
18 costs is received.
19 (Source: P.A. 91-929, eff. 12-15-00; 92-293, eff. 8-9-01;
20 92-483, eff. 8-23-01.)
21 Section 99. Effective date. This Act takes effect upon
22 becoming law.
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