State of Illinois
90th General Assembly
Legislation

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90_HB1113

      205 ILCS 690/1
      205 ILCS 690/5
      205 ILCS 690/15 new
      205 ILCS 690/20 new
      205 ILCS 690/25 new
      205 ILCS 690/30 new
      205 ILCS 690/35 new
      205 ILCS 690/36 new
      205 ILCS 690/37 new
      205 ILCS 690/38 new
      205 ILCS 690/39 new
          Amends the Check Number Act.  Changes the short title  to
      the  Check  Printer  and  Check  Number  Act.   Provides that
      persons not  affiliated  with  a  financial  institution  and
      engaged in the business of printing checks must register with
      the  Commissioner  of  Banks and Real Estate.  Requires these
      check printers to verify the name, address, telephone number,
      and social security number of check purchasers and to  refuse
      to  distribute  ordered  checks  if the information cannot be
      verified.  Requires these check  printers  to  post  a  bond.
      Creates  a  civil  cause  of  action for persons damaged by a
      check  printer's  failure  to  verify.    Authorizes  minimum
      damages of $1,000 plus attorneys' fees.  Provides that making
      a false statement on the  registration  form  is  a  Class  3
      felony.  Effective immediately.
                                                     LRB9003071JSgc
                                               LRB9003071JSgc
 1        AN ACT to amend the Check Number Act by changing Sections
 2    1  and  5 and adding Sections 15, 20, 25, 30, 35, 36, 37, 38,
 3    and 39.
 4        Be it enacted by the People of  the  State  of  Illinois,
 5    represented in the General Assembly:
 6        Section  5.  The  Check Number Act is amended by changing
 7    Sections 1 and 5 and adding Sections 15, 20, 25, 30, 35,  36,
 8    37, 38, and 39 as follows:
 9        (205 ILCS 690/1)
10        Sec. 1.  Short title.  This Act may be cited as the Check
11    Printer and Check Number Act.
12    (Source: P.A. 87-1143.)
13        (205 ILCS 690/5)
14        Sec. 5.  Definitions.  For the purposes of this Act:
15        "Commissioner"  means  the Commissioner of Banks and Real
16    Estate.
17        "Consumer-deposit  account"  means  a  demand  or   other
18    similar  deposit account such as a checking, negotiable order
19    of withdrawal,  money  market,  savings  deposit,  share,  or
20    member account established and maintained by a natural person
21    with  a  financial  institution  and  operated  primarily for
22    personal, family, or household purposes.
23        "Financial institution" means any  bank  subject  to  the
24    Illinois Banking Act, any savings bank subject to the Savings
25    Bank  Act,  any  savings  and loan association subject to the
26    Illinois Savings and Loan Act  of  1985,  and  any  federally
27    chartered  commercial bank, savings bank, or savings and loan
28    association organized and operated in this  State  under  the
29    laws of the United States.
30        "Check"   means   a   writing   that  complies  with  the
                            -2-                LRB9003071JSgc
 1    requirements of Section 3-104 of the Uniform Commercial Code.
 2        "Person"  means  any  natural   person   or   his   legal
 3    representative,  partnership,  corporation,  company,  trust,
 4    business entity, or association.
 5    (Source: P.A. 87-1143.)
 6        (205 ILCS 690/15 new)
 7        Sec.  15.  Verification  of  check purchasers.  A person,
 8    other than a financial institution, who sells or  distributes
 9    checks  that  may  be  drawn  against funds held by financial
10    institutions  in  a  consumer-deposit  account  shall  before
11    delivery of the checks to the person  ordering  them,  verify
12    the  accuracy  of  that  person's  name,  address,  telephone
13    number,  and  social  security number.  If the information is
14    not first verified, the seller or distributor shall not  sell
15    or  distribute  the ordered checks.  The sale or distribution
16    of checks to any person as to whom verification, as  provided
17    for  herein,  has  not  first  been  made  shall constitute a
18    business offense for which the fine shall be $1,000 for  each
19    offense.
20        (205 ILCS 690/20 new)
21        Sec. 20.  Registration.  A person, other than a financial
22    institution,  who  sells  or  distributes  checks that may be
23    drawn against funds  held  by  financial  institutions  in  a
24    consumer deposit account shall register with the Commissioner
25    within  30  days  after the effective date of this amendatory
26    Act of 1997 or within 30 days  after  commencement  of  doing
27    business  in  this  State,  whichever  is later, and annually
28    thereafter.  The person shall register on such forms  as  may
29    be  prescribed  by the Commissioner, which shall include such
30    information  as  the  Commissioner  may  deem  necessary   or
31    appropriate to carry out the purposes of this Act.
                            -3-                LRB9003071JSgc
 1        (205 ILCS 690/25 new)
 2        Sec.  25.  Bond; conditions; amount.  At the time of each
 3    registration,  the  registrant  shall  file  with,  and  have
 4    approved by, the Commissioner  a  surety  bond  issued  by  a
 5    bonding  company  authorized  to do business in this State in
 6    the principal sum of $10,000.  The  bond  shall  run  to  the
 7    Commissioner  and  shall be for any liability incurred by the
 8    registrant for any violation of this Act,  including  damages
 9    awarded in actions brought pursuant to Section 35.
10        From  time  to  time,  the Commissioner may determine the
11    amount of liabilities as described herein and may require the
12    registrant to file a bond in  an  additional  sum  if  it  is
13    determined   to   be   necessary   in   accordance  with  the
14    requirements of this Section. In no case shall  the  bond  be
15    less  than the initial $10,000, nor more than the outstanding
16    liabilities if in excess of $10,000.
17        (205 ILCS 690/30 new)
18        Sec. 30.  Civil action when the Commissioner  believes  a
19    person  has  violated, is violating, or will violate this Act
20    or a rule prescribed under this  Act,  the  Commissioner  may
21    request  the  Attorney  General  to  bring  a civil action in
22    circuit court to enjoin the violation or  enforce  compliance
23    with  this Act or a rule prescribed under this Act.  A person
24    not complying with an injunction issued under this Section is
25    liable to the State of Illinois is a civil suit for an amount
26    of not more than $10,000.
27        (205 ILCS 690/35 new)
28        Sec. 35.  Recovery of damages.  A person who  is  damaged
29    by  reason  of the registrant's failure to verify as required
30    under this Act may sue such person for damages including,  at
31    a  minimum,  liquidated damages in the amount of $1,000, plus
32    all costs and expenses, including reasonable attorneys' fees,
                            -4-                LRB9003071JSgc
 1    incurred in the prosecution of the action.
 2        (205 ILCS 690/36 new)
 3        Sec. 36.  Criminal penalties.  A person who willfully and
 4    knowingly subscribes to or makes, or causes to be  made,  any
 5    false  statement  on  the  registration  form  with intent to
 6    deceive  the  Commissioner  or  his  administrative  officers
 7    shall, upon conviction  thereof,  be  guilty  of  a  Class  3
 8    felony.
 9        (205 ILCS 690/37 new)
10        Sec.  37.  Record  retention.   Records  pertaining to or
11    constituting  the  procedures  for   and   results   of   the
12    verification  required under this Act shall be retained for a
13    period  of  5  years  from  the  date  of  receipt   of   the
14    information.
15        (205 ILCS 690/38 new)
16        Sec.  38.  Rules.   The  Commissioner  has  the  power to
17    promulgate reasonable rules for the purpose of  administering
18    the provisions of this Act.
19        (205 ILCS 690/39 new)
20        Sec.  39.  Severability.   The provisions of this Act are
21    severable under Section 1.31 of the Statute on Statutes.
22        Section 99.  Effective date.  This Act takes effect  upon
23    becoming law.

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