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91_HB3494ham001
LRB9111985JSpcam01
1 AMENDMENT TO HOUSE BILL 3494
2 AMENDMENT NO. . Amend House Bill 3494 by replacing
3 the title with the following:
4 "AN ACT concerning disclosure of customer financial
5 information."; and
6 by replacing everything after the enacting clause with the
7 following:
8 "Section 5. The Illinois Banking Act is amended by
9 changing Section 48.1 as follows:
10 (205 ILCS 5/48.1) (from Ch. 17, par. 360)
11 Sec. 48.1. Customer financial records; confidentiality.
12 (a) For the purpose of this Section, the term "financial
13 records" means any original, any copy, or any summary of:
14 (1) a document granting signature authority over a
15 deposit or account;
16 (2) a statement, ledger card or other record on any
17 deposit or account, which shows each transaction in or
18 with respect to that account;
19 (3) a check, draft or money order drawn on a bank
20 or issued and payable by a bank; or
21 (4) any other item containing information
-2- LRB9111985JSpcam01
1 pertaining to any relationship established in the
2 ordinary course of a bank's business between a bank and
3 its customer, including financial statements or other
4 financial information provided by the customer.
5 (b) This Section does not prohibit:
6 (1) The preparation, examination, handling or
7 maintenance of any financial records by any officer,
8 employee or agent of a bank having custody of the
9 records, or the examination of the records by a certified
10 public accountant engaged by the bank to perform an
11 independent audit.
12 (2) The examination of any financial records by, or
13 the furnishing of financial records by a bank to, any
14 officer, employee or agent of (i) the Commissioner of
15 Banks and Real Estate, (ii) after May 31, 1997, a state
16 regulatory authority authorized to examine a branch of a
17 State bank located in another state, (iii) the
18 Comptroller of the Currency, (iv) the Federal Reserve
19 Board, or (v) the Federal Deposit Insurance Corporation
20 for use solely in the exercise of his duties as an
21 officer, employee, or agent.
22 (3) The publication of data furnished from
23 financial records relating to customers where the data
24 cannot be identified to any particular customer or
25 account.
26 (4) The making of reports or returns required under
27 Chapter 61 of the Internal Revenue Code of 1986.
28 (5) Furnishing information concerning the dishonor
29 of any negotiable instrument permitted to be disclosed
30 under the Uniform Commercial Code.
31 (6) The exchange in the regular course of business
32 of (i) credit information between a bank and other banks
33 or financial institutions or commercial enterprises,
34 directly or through a consumer reporting agency or (ii)
-3- LRB9111985JSpcam01
1 financial records or information derived from financial
2 records between a bank and other banks or financial
3 institutions or commercial enterprises for the purpose of
4 conducting due diligence pursuant to a purchase or sale
5 involving the bank or assets or liabilities of the bank.
6 (7) The furnishing of information to the
7 appropriate law enforcement authorities where the bank
8 reasonably believes it has been the victim of a crime.
9 (8) The furnishing of information under the Uniform
10 Disposition of Unclaimed Property Act.
11 (9) The furnishing of information under the
12 Illinois Income Tax Act and the Illinois Estate and
13 Generation-Skipping Transfer Tax Act.
14 (10) The furnishing of information under the
15 federal Currency and Foreign Transactions Reporting Act
16 Title 31, United States Code, Section 1051 et seq.
17 (11) The furnishing of information under any other
18 statute that by its terms or by regulations promulgated
19 thereunder requires the disclosure of financial records
20 other than by subpoena, summons, warrant, or court order.
21 (12) The furnishing of information about the
22 existence of an account of a person to a judgment
23 creditor of that person who has made a written request
24 for that information.
25 (13) The exchange in the regular course of business
26 of information between commonly owned banks in connection
27 with a transaction authorized under paragraph (23) of
28 Section 5 and conducted at an affiliate facility.
29 (14) The furnishing of information in accordance
30 with the federal Personal Responsibility and Work
31 Opportunity Reconciliation Act of 1996. Any bank governed
32 by this Act shall enter into an agreement for data
33 exchanges with a State agency provided the State agency
34 pays to the bank a reasonable fee not to exceed its
-4- LRB9111985JSpcam01
1 actual cost incurred. A bank providing information in
2 accordance with this item shall not be liable to any
3 account holder or other person for any disclosure of
4 information to a State agency, for encumbering or
5 surrendering any assets held by the bank in response to a
6 lien or order to withhold and deliver issued by a State
7 agency, or for any other action taken pursuant to this
8 item, including individual or mechanical errors, provided
9 the action does not constitute gross negligence or
10 willful misconduct. A bank shall have no obligation to
11 hold, encumber, or surrender assets until it has been
12 served with a subpoena, summons, warrant, court or
13 administrative order, lien, or levy.
14 (15) The exchange in the regular course of business
15 of information between a bank and any commonly owned
16 affiliate of the bank, subject to the provisions of the
17 Financial Institutions Insurance Sales Law.
18 (16) The furnishing of information to: (a) law
19 enforcement authorities, the Illinois Department on Aging
20 and its regional administrative and provider agencies,
21 the Department of Human Services Office of Inspector
22 General, or public guardians, if the bank suspects that a
23 customer who is an elderly or disabled person has been or
24 may become the victim of financial exploitation or other
25 crime and (b) any other financial institution or other
26 third party, if the bank believes that the furnishing of
27 the information may prevent financial exploitation of the
28 elderly or disabled person. A bank or person furnishing
29 financial information pursuant to this item (16) shall be
30 immune from criminal or civil liability or licensing
31 disciplinary action on account of the furnishing of that
32 information, notwithstanding any requirements concerning
33 the confidentiality of information with respect to such
34 elderly or disabled person that might otherwise be
-5- LRB9111985JSpcam01
1 applicable. For purposes of this item (16), the term: (i)
2 "elderly person" means a person who is or reasonably
3 appears to the bank to be 60 or more years of age, (ii)
4 "disabled person" means a person who has or reasonably
5 appears to the bank to have a physical or mental
6 disability that impairs his or her ability to seek or
7 obtain protection from or prevent financial exploitation,
8 and (iii) "financial exploitation" means tortious or
9 illegal use of the assets or resources of an elderly or
10 disabled person, and includes, without limitation,
11 misappropriation of the elderly or disabled person's
12 assets or resources by undue influence, breach of
13 fiduciary relationship, intimidation, fraud, deception,
14 extortion, or the use of assets or resources in any
15 manner contrary to law.
16 (c) Except as otherwise provided by this Act, a bank may
17 not disclose to any person, except to the customer or his
18 duly authorized agent, any financial records or financial
19 information obtained from financial records relating to that
20 customer of that bank unless:
21 (1) the customer has authorized disclosure to the
22 person;
23 (2) the financial records are disclosed in response
24 to a lawful subpoena, summons, warrant or court order
25 which meets the requirements of subsection (d) of this
26 Section; or
27 (3) the bank is attempting to collect an obligation
28 owed to the bank and the bank complies with the
29 provisions of Section 2I of the Consumer Fraud and
30 Deceptive Business Practices Act.
31 (d) A bank shall disclose financial records under
32 paragraph (2) of subsection (c) of this Section under a
33 lawful subpoena, summons, warrant, or court order only after
34 the bank mails a copy of the subpoena, summons, warrant, or
-6- LRB9111985JSpcam01
1 court order to the person establishing the relationship with
2 the bank, if living, and, otherwise his personal
3 representative, if known, at his last known address by first
4 class mail, postage prepaid, unless the bank is specifically
5 prohibited from notifying the person by order of court or by
6 applicable State or federal law. A bank shall not mail a
7 copy of a subpoena to any person pursuant to this subsection
8 if the subpoena was issued by a grand jury under the
9 Statewide Grand Jury Act.
10 (e) Any officer or employee of a bank who knowingly and
11 willfully furnishes financial records in violation of this
12 Section is guilty of a business offense and, upon conviction,
13 shall be fined not more than $1,000.
14 (f) Any person who knowingly and willfully induces or
15 attempts to induce any officer or employee of a bank to
16 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) A bank shall be reimbursed for costs that are
20 reasonably necessary and that have been directly incurred in
21 searching for, reproducing, or transporting books, papers,
22 records, or other data of a customer required or requested to
23 be produced pursuant to a lawful subpoena, summons, warrant,
24 or court order. The Commissioner shall determine the rates
25 and conditions under which payment may be made.
26 (Source: P.A. 90-18, eff. 7-1-97; 90-665, eff. 7-30-98;
27 91-330, eff. 7-29-99.)
28 Section 10. The Illinois Savings and Loan Act of 1985 is
29 amended by changing Section 3-8 as follows:
30 (205 ILCS 105/3-8) (from Ch. 17, par. 3303-8)
31 Sec. 3-8. Access to books and records; communication
32 with members.
-7- LRB9111985JSpcam01
1 (a) Every member or holder of capital shall have the
2 right to inspect the books and records of the association
3 that pertain to his account. Otherwise, the right of
4 inspection and examination of the books and records shall be
5 limited as provided in this Act, and no other person shall
6 have access to the books and records or shall be entitled to
7 a list of the members.
8 (b) For the purpose of this Section, the term "financial
9 records" means any original, any copy, or any summary of (i)
10 a document granting signature authority over a deposit or
11 account; (ii) a statement, ledger card, or other record on
12 any deposit or account that shows each transaction in or with
13 respect to that account; (iii) a check, draft, or money order
14 drawn on an association or issued and payable by an
15 association; or (iv) any other item containing information
16 pertaining to any relationship established in the ordinary
17 course of an association's business between an association
18 and its customer.
19 (c) This Section does not prohibit:
20 (1) The preparation, examination, handling, or
21 maintenance of any financial records by any officer,
22 employee, or agent of an association having custody of
23 those records or the examination of those records by a
24 certified public accountant engaged by the association to
25 perform an independent audit;
26 (2) The examination of any financial records by, or
27 the furnishing of financial records by an association to,
28 any officer, employee, or agent of the Commissioner of
29 Banks and Real Estate, Federal Savings and Loan Insurance
30 Corporation and its successors, Federal Deposit Insurance
31 Corporation, Resolution Trust Corporation and its
32 successors, Federal Home Loan Bank Board and its
33 successors, Office of Thrift Supervision, Federal Housing
34 Finance Board, Board of Governors of the Federal Reserve
-8- LRB9111985JSpcam01
1 System, any Federal Reserve Bank, or the Office of the
2 Comptroller of the Currency for use solely in the
3 exercise of his duties as an officer, employee, or agent;
4 (3) The publication of data furnished from
5 financial records relating to members or holders of
6 capital where the data cannot be identified to any
7 particular member, holder of capital, or account;
8 (4) The making of reports or returns required under
9 Chapter 61 of the Internal Revenue Code of 1986;
10 (5) Furnishing information concerning the dishonor
11 of any negotiable instrument permitted to be disclosed
12 under the Uniform Commercial Code;
13 (6) The exchange in the regular course of business
14 of credit information between an association and other
15 associations or financial institutions or commercial
16 enterprises, directly or through a consumer reporting
17 agency;
18 (7) The furnishing of information to the
19 appropriate law enforcement authorities where the
20 association reasonably believes it has been the victim of
21 a crime;
22 (8) The furnishing of information pursuant to the
23 Uniform Disposition of Unclaimed Property Act;
24 (9) The furnishing of information pursuant to the
25 Illinois Income Tax Act and the Illinois Estate and
26 Generation-Skipping Transfer Tax Act;
27 (10) The furnishing of information pursuant to the
28 federal "Currency and Foreign Transactions Reporting
29 Act", (Title 31, United States Code, Section 1051 et
30 seq.);
31 (11) The furnishing of information pursuant to any
32 other statute that by its terms or by regulations
33 promulgated thereunder requires the disclosure of
34 financial records other than by subpoena, summons,
-9- LRB9111985JSpcam01
1 warrant, or court order;
2 (12) The exchange of information between an
3 association and an affiliate of the association; as used
4 in this item, "affiliate" includes any company,
5 partnership, or organization that controls, is controlled
6 by, or is under common control with an association.
7 (13) The furnishing of information in accordance
8 with the federal Personal Responsibility and Work
9 Opportunity Reconciliation Act of 1996. Any association
10 governed by this Act shall enter into an agreement for
11 data exchanges with a State agency provided the State
12 agency pays to the association a reasonable fee not to
13 exceed its actual cost incurred. An association
14 providing information in accordance with this item shall
15 not be liable to any account holder or other person for
16 any disclosure of information to a State agency, for
17 encumbering or surrendering any assets held by the
18 association in response to a lien or order to withhold
19 and deliver issued by a State agency, or for any other
20 action taken pursuant to this item, including individual
21 or mechanical errors, provided the action does not
22 constitute gross negligence or willful misconduct. An
23 association shall have no obligation to hold, encumber,
24 or surrender assets until it has been served with a
25 subpoena, summons, warrant, court or administrative
26 order, lien, or levy.
27 (14) The furnishing of information to: (a) law
28 enforcement authorities, the Illinois Department on Aging
29 and its regional administrative and provider agencies,
30 the Department of Human Services Office of Inspector
31 General, or public guardians, if the association suspects
32 that a customer who is an elderly or disabled person has
33 been or may become the victim of financial exploitation
34 or other crime and (b) any other financial institution or
-10- LRB9111985JSpcam01
1 other third party, if the association believes that the
2 furnishing of the information may prevent financial
3 exploitation of the elderly or disabled person. An
4 association or person furnishing financial information
5 pursuant to this item (14) shall be immune from criminal
6 or civil liability or licensing disciplinary action on
7 account of the furnishing of that information,
8 notwithstanding any requirements concerning the
9 confidentiality of information with respect to such
10 elderly or disabled person that might otherwise be
11 applicable. For purposes of this item (14), the term: (i)
12 "elderly person" means a person who is or reasonably
13 appears to the association to be 60 or more years of age,
14 (ii) "disabled person" means a person who has or
15 reasonably appears to the association to have a physical
16 or mental disability that impairs his or her ability to
17 seek or obtain protection from or prevent financial
18 exploitation, and (iii) "financial exploitation" means
19 tortious or illegal use of the assets or resources of an
20 elderly or disabled person, and includes, without
21 limitation, misappropriation of the elderly or disabled
22 person's assets or resources by undue influence, breach
23 of fiduciary relationship, intimidation, fraud,
24 deception, extortion, or the use of assets or resources
25 in any manner contrary to law.
26 (d) An association may not disclose to any person,
27 except to the member or holder of capital or his duly
28 authorized agent, any financial records relating to that
29 member or holder of capital of that association unless:
30 (1) The member or holder of capital has authorized
31 disclosure to the person; or
32 (2) The financial records are disclosed in response
33 to a lawful subpoena, summons, warrant, or court order
34 that meets the requirements of subsection (e) of this
-11- LRB9111985JSpcam01
1 Section.
2 (e) An association shall disclose financial records
3 under subsection (d) of this Section pursuant to a lawful
4 subpoena, summons, warrant, or court order only after the
5 association mails a copy of the subpoena, summons, warrant,
6 or court order to the person establishing the relationship
7 with the association, if living, and, otherwise, his personal
8 representative, if known, at his last known address by first
9 class mail, postage prepaid, unless the association is
10 specifically prohibited from notifying that person by order
11 of court.
12 (f) (1) Any officer or employee of an association who
13 knowingly and willfully furnishes financial records in
14 violation of this Section is guilty of a business offense
15 and, upon conviction, shall be fined not more than $1,000.
16 (2) Any person who knowingly and willfully induces or
17 attempts to induce any officer or employee of an association
18 to disclose financial records in violation of this Section is
19 guilty of a business offense and, upon conviction, shall be
20 fined not more than $1,000.
21 (g) However, if any member desires to communicate with
22 the other members of the association with reference to any
23 question pending or to be presented at a meeting of the
24 members, the association shall give him upon request a
25 statement of the approximate number of members entitled to
26 vote at the meeting and an estimate of the cost of preparing
27 and mailing the communication. The requesting member then
28 shall submit the communication to the Commissioner who, if he
29 finds it to be appropriate and truthful, shall direct that it
30 be prepared and mailed to the members upon the requesting
31 member's payment or adequate provision for payment of the
32 expenses of preparation and mailing.
33 (h) An Association shall be reimbursed for costs that
34 are necessary and that have been directly incurred in
-12- LRB9111985JSpcam01
1 searching for, reproducing, or transporting books, papers,
2 records, or other data of a customer required to be
3 reproduced pursuant to a lawful subpoena, warrant, or court
4 order.
5 (Source: P.A. 89-508, eff. 7-3-96; 90-18, eff. 7-1-97.)
6 Section 15. The Savings Bank Act is amended by changing
7 Section 4013 as follows:
8 (205 ILCS 205/4013) (from Ch. 17, par. 7304-13)
9 Sec. 4013. Access to books and records; communication
10 with members and shareholders.
11 (a) Every member or shareholder shall have the right to
12 inspect books and records of the savings bank that pertain to
13 his accounts. Otherwise, the right of inspection and
14 examination of the books and records shall be limited as
15 provided in this Act, and no other person shall have access
16 to the books and records nor shall be entitled to a list of
17 the members or shareholders.
18 (b) For the purpose of this Section, the term "financial
19 records" means any original, any copy, or any summary of (1)
20 a document granting signature authority over a deposit or
21 account; (2) a statement, ledger card, or other record on any
22 deposit or account that shows each transaction in or with
23 respect to that account; (3) a check, draft, or money order
24 drawn on a savings bank or issued and payable by a savings
25 bank; or (4) any other item containing information pertaining
26 to any relationship established in the ordinary course of a
27 savings bank's business between a savings bank and its
28 customer.
29 (c) This Section does not prohibit:
30 (1) The preparation examination, handling, or
31 maintenance of any financial records by any officer,
32 employee, or agent of a savings bank having custody of
-13- LRB9111985JSpcam01
1 records or examination of records by a certified public
2 accountant engaged by the savings bank to perform an
3 independent audit.
4 (2) The examination of any financial records by, or
5 the furnishing of financial records by a savings bank to,
6 any officer, employee, or agent of the Commissioner of
7 Banks and Real Estate or the Federal Deposit Insurance
8 Corporation for use solely in the exercise of his duties
9 as an officer, employee, or agent.
10 (3) The publication of data furnished from
11 financial records relating to members or holders of
12 capital where the data cannot be identified to any
13 particular member, shareholder, or account.
14 (4) The making of reports or returns required under
15 Chapter 61 of the Internal Revenue Code of 1986.
16 (5) Furnishing information concerning the dishonor
17 of any negotiable instrument permitted to be disclosed
18 under the Uniform Commercial Code.
19 (6) The exchange in the regular course of business
20 of credit information between a savings bank and other
21 savings banks or financial institutions or commercial
22 enterprises, directly or through a consumer reporting
23 agency.
24 (7) The furnishing of information to the
25 appropriate law enforcement authorities where the savings
26 bank reasonably believes it has been the victim of a
27 crime.
28 (8) The furnishing of information pursuant to the
29 Uniform Disposition of Unclaimed Property Act.
30 (9) The furnishing of information pursuant to the
31 Illinois Income Tax Act and the Illinois Estate and
32 Generation-Skipping Transfer Tax Act.
33 (10) The furnishing of information pursuant to the
34 federal "Currency and Foreign Transactions Reporting
-14- LRB9111985JSpcam01
1 Act", (Title 31, United States Code, Section 1051 et
2 seq.).
3 (11) The furnishing of information pursuant to any
4 other statute which by its terms or by regulations
5 promulgated thereunder requires the disclosure of
6 financial records other than by subpoena, summons,
7 warrant, or court order.
8 (12) The furnishing of information in accordance
9 with the federal Personal Responsibility and Work
10 Opportunity Reconciliation Act of 1996. Any savings bank
11 governed by this Act shall enter into an agreement for
12 data exchanges with a State agency provided the State
13 agency pays to the savings bank a reasonable fee not to
14 exceed its actual cost incurred. A savings bank
15 providing information in accordance with this item shall
16 not be liable to any account holder or other person for
17 any disclosure of information to a State agency, for
18 encumbering or surrendering any assets held by the
19 savings bank in response to a lien or order to withhold
20 and deliver issued by a State agency, or for any other
21 action taken pursuant to this item, including individual
22 or mechanical errors, provided the action does not
23 constitute gross negligence or willful misconduct. A
24 savings bank shall have no obligation to hold, encumber,
25 or surrender assets until it has been served with a
26 subpoena, summons, warrant, court or administrative
27 order, lien, or levy.
28 (13) The furnishing of information to: (a) law
29 enforcement authorities, the Illinois Department on Aging
30 and its regional administrative and provider agencies,
31 the Department of Human Services Office of Inspector
32 General, or public guardians, if the savings bank
33 suspects that a customer who is an elderly or disabled
34 person has been or may become the victim of financial
-15- LRB9111985JSpcam01
1 exploitation or other crime and (b) any other financial
2 institution or other third party, if the savings bank
3 believes that the furnishing of the information may
4 prevent financial exploitation of the elderly or disabled
5 person. A savings bank or person furnishing financial
6 information pursuant to this item (13) shall be immune
7 from criminal or civil liability or licensing
8 disciplinary action on account of the furnishing of that
9 information, notwithstanding any requirements concerning
10 the confidentiality of information with respect to such
11 elderly or disabled person that might otherwise be
12 applicable. For purposes of this item (13), the term: (i)
13 "elderly person" means a person who is or reasonably
14 appears to the savings bank to be 60 or more years of
15 age, (ii) "disabled person" means a person who has or
16 reasonably appears to the savings bank to have a physical
17 or mental disability that impairs his or her ability to
18 seek or obtain protection from or prevent financial
19 exploitation, and (iii) "financial exploitation" means
20 tortious or illegal use of the assets or resources of an
21 elderly or disabled person, and includes, without
22 limitation, misappropriation of the elderly or disabled
23 person's assets or resources by undue influence, breach
24 of fiduciary relationship, intimidation, fraud,
25 deception, extortion, or the use of assets or resources
26 in any manner contrary to law.
27 (d) A savings bank may not disclose to any person,
28 except to the member or holder of capital or his duly
29 authorized agent, any financial records relating to that
30 member or shareholder of the savings bank unless:
31 (1) the member or shareholder has authorized
32 disclosure to the person; or
33 (2) the financial records are disclosed in response
34 to a lawful subpoena, summons, warrant, or court order
-16- LRB9111985JSpcam01
1 that meets the requirements of subsection (e) of this
2 Section.
3 (e) A savings bank shall disclose financial records
4 under subsection (d) of this Section pursuant to a lawful
5 subpoena, summons, warrant, or court order only after the
6 savings bank mails a copy of the subpoena, summons, warrant,
7 or court order to the person establishing the relationship
8 with the savings bank, if living, and otherwise, his personal
9 representative, if known, at his last known address by first
10 class mail, postage prepaid, unless the savings bank is
11 specifically prohibited from notifying the person by order of
12 court.
13 (f) Any officer or employee of a savings bank who
14 knowingly and willfully furnishes financial records in
15 violation of this Section is guilty of a business offense
16 and, upon conviction, shall be fined not more than $1,000.
17 (g) Any person who knowingly and willfully induces or
18 attempts to induce any officer or employee of a savings bank
19 to disclose financial records in violation of this Section is
20 guilty of a business offense and, upon conviction, shall be
21 fined not more than $1,000.
22 (h) If any member or shareholder desires to communicate
23 with the other members or shareholders of the savings bank
24 with reference to any question pending or to be presented at
25 an annual or special meeting, the savings bank shall give
26 that person, upon request, a statement of the approximate
27 number of members or shareholders entitled to vote at the
28 meeting and an estimate of the cost of preparing and mailing
29 the communication. The requesting member shall submit the
30 communication to the Commissioner who, upon finding it to be
31 appropriate and truthful, shall direct that it be prepared
32 and mailed to the members upon the requesting member's or
33 shareholder's payment or adequate provision for payment of
34 the expenses of preparation and mailing.
-17- LRB9111985JSpcam01
1 (i) A savings bank shall be reimbursed for costs that
2 are necessary and that have been directly incurred in
3 searching for, reproducing, or transporting books, papers,
4 records, or other data of a customer required to be
5 reproduced pursuant to a lawful subpoena, warrant, or court
6 order.
7 (j) Notwithstanding the provisions of this Section, a
8 savings bank may sell or otherwise make use of lists of
9 customers' names and addresses. All other information
10 regarding a customer's account are subject to the disclosure
11 provisions of this Section. At the request of any customer,
12 that customer's name and address shall be deleted from any
13 list that is to be sold or used in any other manner beyond
14 identification of the customer's accounts.
15 (Source: P.A. 89-508, eff. 7-3-96; 90-18, eff. 7-1-97.)
16 Section 20. The Illinois Credit Union Act is amended by
17 changing Section 10 as follows:
18 (205 ILCS 305/10) (from Ch. 17, par. 4411)
19 Sec. 10. Credit union records; member financial records.
20 (1) A credit union shall establish and maintain books,
21 records, accounting systems and procedures which accurately
22 reflect its operations and which enable the Department to
23 readily ascertain the true financial condition of the credit
24 union and whether it is complying with this Act.
25 (2) A photostatic or photographic reproduction of any
26 credit union records shall be admissible as evidence of
27 transactions with the credit union.
28 (3) (a) For the purpose of this Section, the term
29 "financial records" means any original, any copy, or any
30 summary of (1) a document granting signature authority
31 over an account, (2) a statement, ledger card or other
32 record on any account which shows each transaction in or
-18- LRB9111985JSpcam01
1 with respect to that account, (3) a check, draft or money
2 order drawn on a financial institution or other entity or
3 issued and payable by or through a financial institution
4 or other entity, or (4) any other item containing
5 information pertaining to any relationship established in
6 the ordinary course of business between a credit union
7 and its member.
8 (b) This Section does not prohibit:
9 (1) The preparation, examination, handling or
10 maintenance of any financial records by any officer,
11 employee or agent of a credit union having custody
12 of such records, or the examination of such records
13 by a certified public accountant engaged by the
14 credit union to perform an independent audit;
15 (2) The examination of any financial records
16 by or the furnishing of financial records by a
17 credit union to any officer, employee or agent of
18 the Department, the National Credit Union
19 Administration, Federal Reserve board or any insurer
20 of share accounts for use solely in the exercise of
21 his duties as an officer, employee or agent;
22 (3) The publication of data furnished from
23 financial records relating to members where the data
24 cannot be identified to any particular customer of
25 account;
26 (4) The making of reports or returns required
27 under Chapter 61 of the Internal Revenue Code of
28 1954;
29 (5) Furnishing information concerning the
30 dishonor of any negotiable instrument permitted to
31 be disclosed under the Uniform Commercial Code;
32 (6) The exchange in the regular course of
33 business of credit information between a credit
34 union and other credit unions or financial
-19- LRB9111985JSpcam01
1 institutions or commercial enterprises, directly or
2 through a consumer reporting agency;
3 (7) The furnishing of information to the
4 appropriate law enforcement authorities where the
5 credit union reasonably believes it has been the
6 victim of a crime;
7 (8) The furnishing of information pursuant to
8 the Uniform Disposition of Unclaimed Property Act;
9 (9) The furnishing of information pursuant to
10 the Illinois Income Tax Act and the Illinois Estate
11 and Generation-Skipping Transfer Tax Act;
12 (10) The furnishing of information pursuant to
13 the federal "Currency and Foreign Transactions
14 Reporting Act", Title 31, United States Code,
15 Section 1051 et sequentia; or
16 (11) The furnishing of information pursuant to
17 any other statute which by its terms or by
18 regulations promulgated thereunder requires the
19 disclosure of financial records other than by
20 subpoena, summons, warrant or court order.
21 (12) The furnishing of information in
22 accordance with the federal Personal Responsibility
23 and Work Opportunity Reconciliation Act of 1996. Any
24 credit union governed by this Act shall enter into
25 an agreement for data exchanges with a State agency
26 provided the State agency pays to the credit union a
27 reasonable fee not to exceed its actual cost
28 incurred. A credit union providing information in
29 accordance with this item shall not be liable to any
30 account holder or other person for any disclosure of
31 information to a State agency, for encumbering or
32 surrendering any assets held by the credit union in
33 response to a lien or order to withhold and deliver
34 issued by a State agency, or for any other action
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1 taken pursuant to this item, including individual or
2 mechanical errors, provided the action does not
3 constitute gross negligence or willful misconduct. A
4 credit union shall have no obligation to hold,
5 encumber, or surrender assets until it has been
6 served with a subpoena, summons, warrant, court or
7 administrative order, lien, or levy.
8 (13) The furnishing of information to: (a) law
9 enforcement authorities, the Illinois Department on Aging
10 and its regional administrative and provider agencies,
11 the Department of Human Services Office of Inspector
12 General, or public guardians, if the credit union
13 suspects that a member who is an elderly or disabled
14 person has been or may become the victim of financial
15 exploitation or other crime and (b) any other financial
16 institution or other third party, if the credit union
17 believes that the furnishing of the information may
18 prevent financial exploitation of the elderly or disabled
19 member. A credit union or person furnishing financial
20 information pursuant to this item (13) shall be immune
21 from criminal or civil liability or licensing
22 disciplinary action on account of the furnishing of that
23 information, notwithstanding any requirements concerning
24 the confidentiality of information with respect to such
25 elderly or disabled person that might otherwise be
26 applicable. For purposes of this item (13), the term: (i)
27 "elderly person" means a person who is or reasonably
28 appears to the credit union to be 60 or more years of
29 age, (ii) "disabled person" means a person who has or
30 reasonably appears to the credit union to have a physical
31 or mental disability that impairs his or her ability to
32 seek or obtain protection from or prevent financial
33 exploitation, and (iii) "financial exploitation" means
34 tortious or illegal use of the assets or resources of an
-21- LRB9111985JSpcam01
1 elderly or disabled person, and includes, without
2 limitation, misappropriation of the elderly or disabled
3 person's assets or resources by undue influence, breach
4 of fiduciary relationship, intimidation, fraud,
5 deception, extortion, or the use of assets or resources
6 in any manner contrary to law.
7 (c) A credit union may not disclose to any person,
8 except to the member or his duly authorized agent, any
9 financial records relating to that member of the credit union
10 unless:
11 (1) the member has authorized disclosure to the
12 person;
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 subparagraph (d) of this
16 Section; or
17 (3) the credit union is attempting to collect an
18 obligation owed to the credit union and the credit union
19 complies with the provisions of Section 2I of the
20 Consumer Fraud and Deceptive Business Practices Act.
21 (d) A credit union shall disclose financial records
22 under subparagraph (c)(2) of this Section pursuant to a
23 lawful subpoena, summons, warrant or court order only after
24 the credit union mails a copy of the subpoena, summons,
25 warrant or court order to the person establishing the
26 relationship with the credit union, if living, and otherwise
27 his personal representative, if known, at his last known
28 address by first class mail, postage prepaid unless the
29 credit union is specifically prohibited from notifying the
30 person by order of court or by applicable State or federal
31 law. In the case of a grand jury subpoena, a credit union
32 shall not mail a copy of a subpoena to any person pursuant to
33 this subsection if the subpoena was issued by a grand jury
34 under the Statewide Grand Jury Act or notifying the person
-22- LRB9111985JSpcam01
1 would constitute a violation of the federal Right to
2 Financial Privacy Act of 1978.
3 (e) (1) Any officer or employee of a credit union who
4 knowingly and wilfully furnishes financial records in
5 violation of this Section is guilty of a business offense
6 and upon conviction thereof shall be fined not more than
7 $1,000.
8 (2) Any person who knowingly and wilfully induces
9 or attempts to induce any officer or employee of a credit
10 union to disclose financial records in violation of this
11 Section is guilty of a business offense and upon
12 conviction thereof shall be fined not more than $1,000.
13 (f) A credit union shall be reimbursed for costs which
14 are reasonably necessary and which have been directly
15 incurred in searching for, reproducing or transporting books,
16 papers, records or other data of a member required or
17 requested to be produced pursuant to a lawful subpoena,
18 summons, warrant or court order.
19 (Source: P.A. 89-603, eff. 8-2-96; 90-18, eff. 7-1-97.)
20 Section 99. Effective date. This Act takes effect upon
21 becoming law.".