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Public Act 100-0064


 

Public Act 0064 100TH GENERAL ASSEMBLY

  
  
  

 


 
Public Act 100-0064
 
HB2514 EnrolledLRB100 08509 SMS 18634 b

    AN ACT concerning regulation.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Illinois Banking Act is amended by changing
Section 48.3 as follows:
 
    (205 ILCS 5/48.3)  (from Ch. 17, par. 360.2)
    Sec. 48.3. Disclosure of reports of examinations and
confidential supervisory information; limitations.
    (a) Any report of examination, visitation, or
investigation prepared by the Secretary Commissioner under
this Act, the Electronic Fund Transfer Act, the Corporate
Fiduciary Act, the Illinois Bank Holding Company Act of 1957,
and the Foreign Banking Office Act, any report of examination,
visitation, or investigation prepared by the state regulatory
authority of another state that examines a branch of an
Illinois State bank in that state, any document or record
prepared or obtained in connection with or relating to any
examination, visitation, or investigation, and any record
prepared or obtained by the Secretary Commissioner to the
extent that the record summarizes or contains information
derived from any report, document, or record described in this
subsection shall be deemed "confidential supervisory
information". Confidential supervisory information shall not
include any information or record routinely prepared by a bank
or other financial institution and maintained in the ordinary
course of business or any information or record that is
required to be made publicly available pursuant to State or
federal law or rule. Confidential supervisory information
shall be the property of the Secretary Commissioner and shall
only be disclosed under the circumstances and for the purposes
set forth in this Section.
     The Secretary Commissioner may disclose confidential
supervisory information only under the following
circumstances:
        (1) The Secretary Commissioner may furnish
    confidential supervisory information to the Board of
    Governors of the Federal Reserve System, the federal
    reserve bank of the federal reserve district in which the
    State bank is located or in which the parent or other
    affiliate of the State bank is located, any official or
    examiner thereof duly accredited for the purpose, or any
    other state regulator, federal regulator, or in the case of
    a foreign bank possessing a certificate of authority
    pursuant to the Foreign Banking Office Act or a license
    pursuant to the Foreign Bank Representative Office Act, the
    bank regulator in the country where the foreign bank is
    chartered, that the Secretary Commissioner determines to
    have an appropriate regulatory interest. Nothing contained
    in this Act shall be construed to limit the obligation of
    any member State bank to comply with the requirements
    relative to examinations and reports of the Federal Reserve
    Act and of the Board of Governors of the Federal Reserve
    System or the federal reserve bank of the federal reserve
    district in which the bank is located, nor to limit in any
    way the powers of the Secretary Commissioner with reference
    to examinations and reports.
        (2) The Secretary Commissioner may furnish
    confidential supervisory information to the United States,
    any agency thereof that has insured a bank's deposits in
    whole or in part, or any official or examiner thereof duly
    accredited for the purpose. Nothing contained in this Act
    shall be construed to limit the obligation relative to
    examinations and reports of any State bank, deposits in
    which are to any extent insured by the United States, any
    agency thereof, nor to limit in any way the powers of the
    Secretary Commissioner with reference to examination and
    reports of such bank.
        (2.5) The Secretary may furnish confidential
    supervisory information to a Federal Home Loan Bank in
    connection with any bank that is a member of the Federal
    Home Loan Bank or in connection with any application by the
    bank before the Federal Home Loan Bank. The confidential
    supervisory information shall remain the property of the
    Secretary and may not be further disclosed without the
    Secretary's permission.
        (3) The Secretary Commissioner may furnish
    confidential supervisory information to the appropriate
    law enforcement authorities when the Secretary
    Commissioner reasonably believes a bank, which the
    Secretary Commissioner has caused to be examined, has been
    a victim of a crime.
        (4) The Secretary Commissioner may furnish
    confidential supervisory information relating to a bank or
    other financial institution, which the Secretary
    Commissioner has caused to be examined, to be sent to the
    administrator of the Uniform Disposition of Unclaimed
    Property Act.
        (5) The Secretary Commissioner may furnish
    confidential supervisory information relating to a bank or
    other financial institution, which the Secretary
    Commissioner has caused to be examined, relating to its
    performance of obligations under the Illinois Income Tax
    Act and the Illinois Estate and Generation-Skipping
    Transfer Tax Act to the Illinois Department of Revenue.
        (6) The Secretary Commissioner may furnish
    confidential supervisory information relating to a bank or
    other financial institution, which the Secretary
    Commissioner has caused to be examined, under the federal
    Currency and Foreign Transactions Reporting Act, Title 31,
    United States Code, Section 1051 et seq.
        (6.5) The Secretary Commissioner may furnish
    confidential supervisory information to any other agency
    or entity that the Secretary Commissioner determines to
    have a legitimate regulatory interest.
        (7) The Secretary Commissioner may furnish
    confidential supervisory information under any other
    statute that by its terms or by regulations promulgated
    thereunder requires the disclosure of financial records
    other than by subpoena, summons, warrant, or court order.
        (8) At the request of the affected bank or other
    financial institution, the Secretary Commissioner may
    furnish confidential supervisory information relating to a
    bank or other financial institution, which the Secretary
    Commissioner has caused to be examined, in connection with
    the obtaining of insurance coverage or the pursuit of an
    insurance claim for or on behalf of the bank or other
    financial institution; provided that, when possible, the
    Secretary Commissioner shall disclose only relevant
    information while maintaining the confidentiality of
    financial records not relevant to such insurance coverage
    or claim and, when appropriate, may delete identifying data
    relating to any person or individual.
        (9) The Secretary Commissioner may furnish a copy of a
    report of any examination performed by the Secretary
    Commissioner of the condition and affairs of any electronic
    data processing entity to the banks serviced by the
    electronic data processing entity.
        (10) In addition to the foregoing circumstances, the
    Secretary Commissioner may, but is not required to, furnish
    confidential supervisory information under the same
    circumstances authorized for the bank or financial
    institution pursuant to subsection (b) of this Section,
    except that the Secretary Commissioner shall provide
    confidential supervisory information under circumstances
    described in paragraph (3) of subsection (b) of this
    Section only upon the request of the bank or other
    financial institution.
    (b) A bank or other financial institution or its officers,
agents, and employees may disclose confidential supervisory
information only under the following circumstances:
        (1) to the board of directors of the bank or other
    financial institution, as well as the president,
    vice-president, cashier, and other officers of the bank or
    other financial institution to whom the board of directors
    may delegate duties with respect to compliance with
    recommendations for action, and to the board of directors
    of a bank holding company that owns at least 80% of the
    outstanding stock of the bank or other financial
    institution;
        (2) to attorneys for the bank or other financial
    institution and to a certified public accountant engaged by
    the State bank or financial institution to perform an
    independent audit provided that the attorney or certified
    public accountant shall not permit the confidential
    supervisory information to be further disseminated;
        (3) to any person who seeks to acquire a controlling
    interest in, or who seeks to merge with, the bank or
    financial institution, provided that all attorneys,
    certified public accountants, officers, agents, or
    employees of that person shall agree to be bound to respect
    the confidentiality of the confidential supervisory
    information and to not further disseminate the information
    therein contained;
        (3.5) to a Federal Home Loan Bank of which it is a
    member;
        (4) (blank); or
        (5) to the bank's insurance company in relation to an
    insurance claim or the effort by the bank to procure
    insurance coverage, provided that, when possible, the bank
    shall disclose only information that is relevant to the
    insurance claim or that is necessary to procure the
    insurance coverage, while maintaining the confidentiality
    of financial information pertaining to customers. When
    appropriate, the bank may delete identifying data relating
    to any person.
    The disclosure of confidential supervisory information by
a bank or other financial institution pursuant to this
subsection (b) and the disclosure of information to the
Secretary Commissioner or other regulatory agency in
connection with any examination, visitation, or investigation
shall not constitute a waiver of any legal privilege otherwise
available to the bank or other financial institution with
respect to the information.
    (c) (1) Notwithstanding any other provision of this Act or
any other law, confidential supervisory information shall be
the property of the Secretary Commissioner and shall be
privileged from disclosure to any person except as provided in
this Section. No person in possession of confidential
supervisory information may disclose that information for any
reason or under any circumstances not specified in this Section
without the prior authorization of the Secretary Commissioner.
Any person upon whom a demand for production of confidential
supervisory information is made, whether by subpoena, order, or
other judicial or administrative process, must withhold
production of the confidential supervisory information and
must notify the Secretary Commissioner of the demand, at which
time the Secretary Commissioner is authorized to intervene for
the purpose of enforcing the limitations of this Section or
seeking the withdrawal or termination of the attempt to compel
production of the confidential supervisory information.
    (2) Any request for discovery or disclosure of confidential
supervisory information, whether by subpoena, order, or other
judicial or administrative process, shall be made to the
Secretary Commissioner, and the Secretary Commissioner shall
determine within 15 days whether to disclose the information
pursuant to procedures and standards that the Secretary
Commissioner shall establish by rule. If the Secretary
Commissioner determines that such information will not be
disclosed, the Secretary's Commissioner's decision shall be
subject to judicial review under the provisions of the
Administrative Review Law, and venue shall be in either
Sangamon County or Cook County.
    (3) Any court order that compels disclosure of confidential
supervisory information may be immediately appealed by the
Secretary Commissioner, and the order shall be automatically
stayed pending the outcome of the appeal.
    (d) If any officer, agent, attorney, or employee of a bank
or financial institution knowingly and willfully furnishes
confidential supervisory information in violation of this
Section, the Secretary Commissioner may impose a civil monetary
penalty up to $1,000 for the violation against the officer,
agent, attorney, or employee.
(Source: P.A. 90-301, eff. 8-1-97; 91-201, eff. 1-1-00.)
 
    Section 10. The Savings Bank Act is amended by changing
Section 9012 as follows:
 
    (205 ILCS 205/9012)  (from Ch. 17, par. 7309-12)
    Sec. 9012. Disclosure of reports of examinations and
confidential supervisory information; limitations.
    (a) Any report of examination, visitation, or
investigation prepared by the Secretary Commissioner under
this Act, any report of examination, visitation, or
investigation prepared by the state regulatory authority of
another state that examines a branch of an Illinois State
savings bank in that state, any document or record prepared or
obtained in connection with or relating to any examination,
visitation, or investigation, and any record prepared or
obtained by the Secretary Commissioner to the extent that the
record summarizes or contains information derived from any
report, document, or record described in this subsection shall
be deemed confidential supervisory information. "Confidential
supervisory information" shall not include any information or
record routinely prepared by a savings bank and maintained in
the ordinary course of business or any information or record
that is required to be made publicly available pursuant to
State or federal law or rule. Confidential supervisory
information shall be the property of the Secretary Commissioner
and shall only be disclosed under the circumstances and for the
purposes set forth in this Section.
    The Secretary Commissioner may disclose confidential
supervisory information only under the following
circumstances:
        (1) The Secretary Commissioner may furnish
    confidential supervisory information to federal and state
    depository institution regulators, or any official or
    examiner thereof duly accredited for the purpose. Nothing
    contained in this Act shall be construed to limit the
    obligation of any savings bank to comply with the
    requirements relative to examinations and reports nor to
    limit in any way the powers of the Secretary Commissioner
    relative to examinations and reports.
        (2) The Secretary Commissioner may furnish
    confidential supervisory information to the United States
    or any agency thereof that to any extent has insured a
    savings bank's deposits, or any official or examiner
    thereof duly accredited for the purpose. Nothing contained
    in this Act shall be construed to limit the obligation
    relative to examinations and reports of any savings bank in
    which deposits are to any extent insured by the United
    States or any agency thereof nor to limit in any way the
    powers of the Secretary Commissioner with reference to
    examination and reports of the savings bank.
        (2.5) The Secretary may furnish confidential
    supervisory information to a Federal Home Loan Bank in
    connection with any savings bank that is a member of the
    Federal Home Loan Bank or in connection with any
    application by the savings bank before the Federal Home
    Loan Bank. The confidential supervisory information shall
    remain the property of the Secretary and may not be further
    disclosed without the Secretary's permission.
        (3) The Secretary Commissioner may furnish
    confidential supervisory information to the appropriate
    law enforcement authorities when the Secretary
    Commissioner reasonably believes a savings bank, which the
    Secretary Commissioner has caused to be examined, has been
    a victim of a crime.
        (4) The Secretary Commissioner may furnish
    confidential supervisory information related to a savings
    bank, which the Secretary Commissioner has caused to be
    examined, to the administrator of the Uniform Disposition
    of Unclaimed Property Act.
        (5) The Secretary Commissioner may furnish
    confidential supervisory information relating to a savings
    bank, which the Secretary Commissioner has caused to be
    examined, relating to its performance of obligations under
    the Illinois Income Tax Act and the Illinois Estate and
    Generation-Skipping Transfer Tax Act to the Illinois
    Department of Revenue.
        (6) The Secretary Commissioner may furnish
    confidential supervisory information relating to a savings
    bank, which the Secretary Commissioner has caused to be
    examined, under the federal Currency and Foreign
    Transactions Reporting Act, 31 United States Code, Section
    1051 et seq.
        (7) The Secretary Commissioner may furnish
    confidential supervisory information to any other agency
    or entity that the Secretary Commissioner determines to
    have a legitimate regulatory interest.
        (8) The Secretary Commissioner may furnish
    confidential supervisory information as otherwise
    permitted or required by this Act and may furnish
    confidential supervisory information under any other
    statute that by its terms or by regulations promulgated
    thereunder requires the disclosure of financial records
    other than by subpoena, summons, warrant, or court order.
        (9) At the request of the affected savings bank, the
    Secretary Commissioner may furnish confidential
    supervisory information relating to the savings bank,
    which the Secretary Commissioner has caused to be examined,
    in connection with the obtaining of insurance coverage or
    the pursuit of an insurance claim for or on behalf of the
    savings bank; provided that, when possible, the Secretary
    Commissioner shall disclose only relevant information
    while maintaining the confidentiality of financial records
    not relevant to such insurance coverage or claim and, when
    appropriate, may delete identifying data relating to any
    person.
        (10) The Secretary Commissioner may furnish a copy of a
    report of any examination performed by the Secretary
    Commissioner of the condition and affairs of any electronic
    data processing entity to the savings banks serviced by the
    electronic data processing entity.
        (11) In addition to the foregoing circumstances, the
    Secretary Commissioner may, but is not required to, furnish
    confidential supervisory information under the same
    circumstances authorized for the savings bank pursuant to
    subsection (b) of this Section, except that the Secretary
    Commissioner shall provide confidential supervisory
    information under circumstances described in paragraph (3)
    of subsection (b) of this Section only upon the request of
    the savings bank.
    (b) A savings bank or its officers, agents, and employees
may disclose confidential supervisory information only under
the following circumstances:
        (1) to the board of directors of the savings bank, as
    well as the president, vice-president, cashier, and other
    officers of the savings bank to whom the board of directors
    may delegate duties with respect to compliance with
    recommendations for action, and to the board of directors
    of a savings bank holding company that owns at least 80% of
    the outstanding stock of the savings bank or other
    financial institution.
        (2) to attorneys for the savings bank and to a
    certified public accountant engaged by the savings bank to
    perform an independent audit; provided that the attorney or
    certified public accountant shall not permit the
    confidential supervisory information to be further
    disseminated.
        (3) to any person who seeks to acquire a controlling
    interest in, or who seeks to merge with, the savings bank;
    provided that the person shall agree to be bound to respect
    the confidentiality of the confidential supervisory
    information and to not further disseminate the information
    other than to attorneys, certified public accountants,
    officers, agents, or employees of that person who likewise
    shall agree to be bound to respect the confidentiality of
    the confidential supervisory information and to not
    further disseminate the information.
        (4) to the savings bank's insurance company, if the
    supervisory information contains information that is
    otherwise unavailable and is strictly necessary to
    obtaining insurance coverage or pursuing an insurance
    claim for or on behalf of the savings bank; provided that,
    when possible, the savings bank shall disclose only
    information that is relevant to obtaining insurance
    coverage or pursuing an insurance claim, while maintaining
    the confidentiality of financial information pertaining to
    customers; and provided further that, when appropriate,
    the savings bank may delete identifying data relating to
    any person.
        (5) to a Federal Home Loan Bank of which it is a
    member.
    The disclosure of confidential supervisory information by
a savings bank pursuant to this subsection (b) and the
disclosure of information to the Secretary Commissioner or
other regulatory agency in connection with any examination,
visitation, or investigation shall not constitute a waiver of
any legal privilege otherwise available to the savings bank
with respect to the information.
    (c) (1) Notwithstanding any other provision of this Act or
any other law, confidential supervisory information shall be
the property of the Secretary Commissioner and shall be
privileged from disclosure to any person except as provided in
this Section. No person in possession of confidential
supervisory information may disclose that information for any
reason or under any circumstances not specified in this Section
without the prior authorization of the Secretary Commissioner.
Any person upon whom a demand for production of confidential
supervisory information is made, whether by subpoena, order, or
other judicial or administrative process, must withhold
production of the confidential supervisory information and
must notify the Secretary Commissioner of the demand, at which
time the Secretary Commissioner is authorized to intervene for
the purpose of enforcing the limitations of this Section or
seeking the withdrawal or termination of the attempt to compel
production of the confidential supervisory information.
    (2) Any request for discovery or disclosure of confidential
supervisory information, whether by subpoena, order, or other
judicial or administrative process, shall be made to the
Secretary Commissioner, and the Secretary Commissioner shall
determine within 15 days whether to disclose the information
pursuant to procedures and standards that the Secretary
Commissioner shall establish by rule. If the Secretary
Commissioner determines that such information will not be
disclosed, the Secretary's Commissioner's decision shall be
subject to judicial review under the provisions of the
Administrative Review Law, and venue shall be in either
Sangamon County or Cook County.
    (3) Any court order that compels disclosure of confidential
supervisory information may be immediately appealed by the
Secretary Commissioner, and the order shall be automatically
stayed pending the outcome of the appeal.
    (d) If any officer, agent, attorney, or employee of a
savings bank knowingly and willfully furnishes confidential
supervisory information in violation of this Section, the
Secretary Commissioner may impose a civil monetary penalty up
to $1,000 for the violation against the officer, agent,
attorney, or employee.
    (e)   Subject to the limits of this Section, the Secretary
Commissioner also may promulgate regulations to set procedures
and standards for disclosure of the following items:
        (1) All fixed orders and opinions made in cases of
    appeals of the Secretary's Commissioner's actions.
        (2) Statements of policy and interpretations adopted
    by the Secretary's Commissioner's office, but not
    otherwise made public.
        (3) Nonconfidential portions of application files,
    including applications for new charters. The Secretary
    Commissioner shall specify by rule as to what part of the
    files are confidential.
        (4) Quarterly reports of income, deposits, and
    financial condition.
(Source: P.A. 93-271, eff. 7-22-03.)
 
    Section 15. The Illinois Credit Union Act is amended by
changing Section 9.1 as follows:
 
    (205 ILCS 305/9.1)
    Sec. 9.1. Disclosures of reports of examinations and
confidential supervisory information; limitations.
    (1) Any report of examination, visitation, or
investigation prepared by the Secretary under this Act or by
the state regulatory authority charged with enforcing the
Electronic Fund Transfer Act or the Corporate Fiduciary Act or
by the state regulatory authority of another state that
examines an office of an Illinois credit union in that state,
any document or record prepared or obtained in connection with
or relating to any examination, visitation, or investigation,
and any record prepared or obtained by the Secretary to the
extent that the record summarizes or contains information
derived from any report, document, or record described in this
subsection shall be deemed "confidential supervisory
information". Confidential supervisory information shall not
include any information or record routinely prepared by a
credit union and maintained in the ordinary course of business
or any information or record that is required to be made
publicly available pursuant to State or federal law or rule.
    (2) Confidential supervisory information is privileged
from discovery and shall only be disclosed under the
circumstances and for the purposes set forth in this Section.
    (3) Relevant confidential supervisory information may be
disclosed under a statute that by its terms or by rules
promulgated thereunder requires the disclosure of confidential
supervisory information other than by subpoena, summons,
warrant, or court order; to the appropriate law enforcement
authorities when the Secretary or the credit union reasonably
believes the credit union, which the Secretary has caused to be
examined, has been a victim of a crime; to other agencies or
entities having a legitimate regulatory interest, including,
but not limited to, a Federal Home Loan Bank; to the credit
union's board, officers, retained professionals, and insurers;
to persons seeking to merge with or purchase all or part of the
assets of the credit union; and where disclosure is otherwise
required for the benefit of the credit union. Disclosure of
confidential supervisory information to these persons does not
constitute a waiver of the legal privilege otherwise available
with respect to the information.
    (4) A person to whom confidential supervisory information
is disclosed shall not further disseminate confidential
supervisory information.
    (5) (a) Any person upon whom a demand for production of
confidential supervisory information is made, whether by
subpoena, order, or other judicial or administrative process,
must withhold production of the confidential supervisory
information and must notify the Secretary of the demand, at
which time the Secretary is authorized to intervene for the
purpose of enforcing the limitations of this Section or seeking
the withdrawal or termination of the attempt to compel
production of the confidential supervisory information.
    (b) Any request for discovery or disclosure of confidential
supervisory information, whether by subpoena, order, or other
judicial or administrative process, shall be made to the
Secretary, and the Secretary shall determine within 15 days
whether to disclose the information pursuant to procedures and
standards that the Secretary shall establish by rule. If the
Secretary determines that such information will not be
disclosed, the Secretary's decision shall be subject to
judicial review under the provisions of the Administrative
Review Law, and venue shall be in either Sangamon County or
Cook County.
    (c) Any court order that compels disclosure of confidential
supervisory information may be immediately appealed by the
Secretary and the order shall be automatically stayed pending
the outcome of the appeal.
(Source: P.A. 97-133, eff. 1-1-12.)
 
    Section 99. Effective date. This Act takes effect upon
becoming law.

Effective Date: 8/11/2017