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Public Act 91-0742
SB1421 Enrolled LRB9112239JSpc
AN ACT to create the Data Processing Services for
Financial Institutions Act.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 1. Short title. This Act may be cited as the
Data Processing Services for Financial Institutions Act.
Section 5. Definitions. As used in this Act, the
following terms shall have the following meanings:
"Corporate fiduciary" has the meaning ascribed to that
term in the Corporate Fiduciary Act.
"Depository institution" means a bank, savings and loan
association, savings bank, or credit union chartered under
the laws of Illinois or of the United States.
"Financial institution" means any depository institution
or corporate fiduciary that has its main office in Illinois
and includes foreign banking corporations that receive
certificates of authority from the Office of Banks and Real
Estate under the Foreign Banking Office Act.
"Independent data processing servicer" means an entity
that provides electronic data processing services to a
financial institution, but does not include an entity to the
extent the entity processes interchange transactions, as
defined in the Electronic Fund Transfer Act.
"Interface agreement" means a written agreement
specifying the terms and conditions under which an interface
of communications, data, or systems between independent data
processing servicers shall be accomplished.
"Main office" means the location designated as the main
office or principal place of business in the charter,
articles of incorporation, or certificate of authority of the
depository institution or corporate fiduciary.
Section 10. Interface between independent data
(a) Whenever a financial institution contracts with an
independent data processing servicer for any product or
service that requires an interface of communications, data,
or systems with a second independent data processing servicer
with which the financial institution has a contractual
relationship, the second independent data processing servicer
shall permit the necessary interface to occur pursuant to an
interface agreement. The interface agreement shall contain
commercially reasonable fees and charges and shall provide
for commercially reasonable access to necessary technical
(b) An independent data processing servicer shall
exercise reasonable promptness in negotiating an interface
agreement under the provisions of this Act and shall not
exercise undue delay or otherwise act in bad faith as a means
of avoiding the negotiation or implementation of an interface
Section 15. Arbitration of disputes. In the case of a
dispute between the independent data processing servicers
regarding any terms or conditions of an interface agreement,
or in the event that a dispute regarding proposed terms and
conditions results in the failure of the independent data
processing servicers to enter into an interface agreement as
required by this Act, the parties shall be deemed to have
agreed to the appointment of an arbitrator for a binding
resolution of the dispute consistent with the provisions of
the Uniform Arbitration Act unless the parties agree to some
other process for binding arbitration or unless the aggrieved
party seeks court action. Any decision by the arbitrator in
connection with any arbitration shall be determined only
after an opportunity for a hearing. Anything to the contrary
in this Act notwithstanding, any right of arbitration granted
under this Act is subject to the right of either party to
seek court action.
Section 99. Effective date. This Act takes effect upon
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