State of Illinois
91st General Assembly

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 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.)

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