[ Search ] [ Legislation ]
[ Home ] [ Back ] [ Bottom ]
91_SB1357
LRB9110571JSpc
1 AN ACT to amend the Illinois Banking Act by changing
2 Section 48.1.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Illinois Banking Act is amended by
6 changing Section 48.1 as follows:
7 (205 ILCS 5/48.1) (from Ch. 17, par. 360)
8 Sec. 48.1. Confidentiality of customer financial
9 records; confidentiality.
10 (a) For the purpose of this Section, the term "financial
11 records" means any original, any copy, or any summary of:
12 (1) a document granting signature authority over a
13 deposit or account;
14 (2) a statement, ledger card or other record on any
15 deposit or account, which shows each transaction in or
16 with respect to that account;
17 (3) a check, draft or money order drawn on a bank
18 or issued and payable by a bank; or
19 (4) any other item containing information
20 pertaining to any relationship established in the
21 ordinary course of a bank's business between a bank and
22 its customer, including financial statements or other
23 financial information provided by the customer.
24 (b) This Section does not prohibit:
25 (1) The preparation, examination, handling or
26 maintenance of any financial records by any officer,
27 employee or agent of a bank having custody of the
28 records, or the examination of the records by a certified
29 public accountant engaged by the bank to perform an
30 independent audit.
31 (2) The examination of any financial records by, or
-2- LRB9110571JSpc
1 the furnishing of financial records by a bank to, any
2 officer, employee or agent of (i) the Commissioner of
3 Banks and Real Estate, (ii) after May 31, 1997, a state
4 regulatory authority authorized to examine a branch of a
5 State bank located in another state, (iii) the
6 Comptroller of the Currency, (iv) the Federal Reserve
7 Board, or (v) the Federal Deposit Insurance Corporation
8 for use solely in the exercise of his duties as an
9 officer, employee, or agent.
10 (3) The publication of data furnished from
11 financial records relating to customers where the data
12 cannot be identified to any particular customer or
13 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 (i) credit information between a bank and other banks
21 or financial institutions or commercial enterprises,
22 directly or through a consumer reporting agency or (ii)
23 financial records or information derived from financial
24 records between a bank and other banks or financial
25 institutions or commercial enterprises for the purpose of
26 conducting due diligence pursuant to a purchase or sale
27 involving the bank or assets or liabilities of the bank.
28 (7) The furnishing of information to the
29 appropriate law enforcement authorities where the bank
30 reasonably believes it has been the victim of a crime.
31 (8) The furnishing of information under the Uniform
32 Disposition of Unclaimed Property Act.
33 (9) The furnishing of information under the
34 Illinois Income Tax Act and the Illinois Estate and
-3- LRB9110571JSpc
1 Generation-Skipping Transfer Tax Act.
2 (10) The furnishing of information under the
3 federal Currency and Foreign Transactions Reporting Act
4 Title 31, United States Code, Section 1051 et seq.
5 (11) The furnishing of information under any other
6 statute that by its terms or by regulations promulgated
7 thereunder requires the disclosure of financial records
8 other than by subpoena, summons, warrant, or court order.
9 (12) The furnishing of information about the
10 existence of an account of a person to a judgment
11 creditor of that person who has made a written request
12 for that information.
13 (13) The exchange in the regular course of business
14 of information between commonly owned banks in connection
15 with a transaction authorized under paragraph (23) of
16 Section 5 and conducted at an affiliate facility.
17 (14) The furnishing of information in accordance
18 with the federal Personal Responsibility and Work
19 Opportunity Reconciliation Act of 1996. Any bank governed
20 by this Act shall enter into an agreement for data
21 exchanges with a State agency provided the State agency
22 pays to the bank a reasonable fee not to exceed its
23 actual cost incurred. A bank providing information in
24 accordance with this item shall not be liable to any
25 account holder or other person for any disclosure of
26 information to a State agency, for encumbering or
27 surrendering any assets held by the bank in response to a
28 lien or order to withhold and deliver issued by a State
29 agency, or for any other action taken pursuant to this
30 item, including individual or mechanical errors, provided
31 the action does not constitute gross negligence or
32 willful misconduct. A bank shall have no obligation to
33 hold, encumber, or surrender assets until it has been
34 served with a subpoena, summons, warrant, court or
-4- LRB9110571JSpc
1 administrative order, lien, or levy.
2 (15) The exchange in the regular course of business
3 of information between a bank and any commonly owned
4 affiliate of the bank, subject to the provisions of the
5 Financial Institutions Insurance Sales Law.
6 (c) Except as otherwise provided by this Act, a bank may
7 not disclose to any person, except to the customer or his
8 duly authorized agent, any financial records or financial
9 information obtained from financial records relating to that
10 customer of that bank unless:
11 (1) the customer 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 which meets the requirements of subsection (d) of this
16 Section; or
17 (3) the bank is attempting to collect an obligation
18 owed to the bank and the bank complies with the
19 provisions of Section 2I of the Consumer Fraud and
20 Deceptive Business Practices Act.
21 (d) A bank shall disclose financial records under
22 paragraph (2) of subsection (c) of this Section under a
23 lawful subpoena, summons, warrant, or court order only after
24 the bank mails a copy of the subpoena, summons, warrant, or
25 court order to the person establishing the relationship with
26 the bank, if living, and, otherwise his personal
27 representative, if known, at his last known address by first
28 class mail, postage prepaid, unless the bank is specifically
29 prohibited from notifying the person by order of court or by
30 applicable State or federal law. A bank shall not mail a
31 copy of a subpoena to any person pursuant to this subsection
32 if the subpoena was issued by a grand jury under the
33 Statewide Grand Jury Act.
34 (e) Any officer or employee of a bank who knowingly and
-5- LRB9110571JSpc
1 willfully furnishes financial records in violation of this
2 Section is guilty of a business offense and, upon conviction,
3 shall be fined not more than $1,000.
4 (f) Any person who knowingly and willfully induces or
5 attempts to induce any officer or employee of a bank to
6 disclose financial records in violation of this Section is
7 guilty of a business offense and, upon conviction, shall be
8 fined not more than $1,000.
9 (g) A bank shall be reimbursed for costs that are
10 reasonably necessary and that have been directly incurred in
11 searching for, reproducing, or transporting books, papers,
12 records, or other data of a customer required or requested to
13 be produced pursuant to a lawful subpoena, summons, warrant,
14 or court order. The Commissioner shall determine the rates
15 and conditions under which payment may be made.
16 (Source: P.A. 90-18, eff. 7-1-97; 90-665, eff. 7-30-98;
17 91-330, eff. 7-29-99.)