State of Illinois
91st General Assembly
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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
processing servicers.
    (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
becoming law.

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