State of Illinois
91st General Assembly
Public Acts

[ Home ]  [ ILCS ] [ Search ] [ Bottom ]
 [ Other General Assemblies ]

Public Act 91-0929

HB3838 Re-Enrolled                             LRB9112086JSgc

    AN ACT concerning financial institutions.

    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 48.1 and adding Section 48.6 as follows:

    (205 ILCS 5/48.1) (from Ch. 17, par. 360)
    Sec. 48.1.  Customer financial records; confidentiality.
    (a)  For the purpose of this Section, the term "financial
records" means any original, any copy, or any summary of:
         (1)  a  document granting signature authority over a
    deposit or account;
         (2)  a statement, ledger card or other record on any
    deposit or account, which shows each  transaction  in  or
    with respect to that account;
         (3)  a  check,  draft or money order drawn on a bank
    or issued and payable by a bank; or
         (4)  any   other   item    containing    information
    pertaining   to   any  relationship  established  in  the
    ordinary course of a bank's business between a  bank  and
    its  customer,  including  financial  statements or other
    financial information provided by the customer.
    (b)  This Section does not prohibit:
         (1)  The  preparation,  examination,   handling   or
    maintenance  of  any  financial  records  by any officer,
    employee or  agent  of  a  bank  having  custody  of  the
    records, or the examination of the records by a certified
    public  accountant  engaged  by  the  bank  to perform an
    independent audit.
         (2)  The examination of any financial records by, or
    the furnishing of financial records by  a  bank  to,  any
    officer,  employee  or  agent  of (i) the Commissioner of
    Banks and Real Estate, (ii) after May 31, 1997,  a  state
    regulatory  authority authorized to examine a branch of a
    State  bank  located  in   another   state,   (iii)   the
    Comptroller  of  the  Currency,  (iv) the Federal Reserve
    Board, or (v) the Federal Deposit  Insurance  Corporation
    for  use  solely  in  the  exercise  of  his duties as an
    officer, employee, or agent.
         (3)  The  publication   of   data   furnished   from
    financial  records  relating  to customers where the data
    cannot  be  identified  to  any  particular  customer  or
    account.
         (4)  The making of reports or returns required under
    Chapter 61 of the Internal Revenue Code of 1986.
         (5)  Furnishing information concerning the  dishonor
    of  any  negotiable  instrument permitted to be disclosed
    under the Uniform Commercial Code.
         (6)  The exchange in the regular course of  business
    of  (i) credit information between a bank and other banks
    or  financial  institutions  or  commercial  enterprises,
    directly or through a consumer reporting agency  or  (ii)
    financial  records  or information derived from financial
    records between a  bank  and  other  banks  or  financial
    institutions or commercial enterprises for the purpose of
    conducting  due  diligence pursuant to a purchase or sale
    involving the bank or assets or liabilities of the bank.
         (7)  The   furnishing   of   information   to    the
    appropriate  law  enforcement  authorities where the bank
    reasonably believes it has been the victim of a crime.
         (8)  The furnishing of information under the Uniform
    Disposition of Unclaimed Property Act.
         (9)  The  furnishing  of   information   under   the
    Illinois  Income  Tax  Act  and  the  Illinois Estate and
    Generation-Skipping Transfer Tax Act.
         (10)  The  furnishing  of  information   under   the
    federal  Currency  and Foreign Transactions Reporting Act
    Title 31, United States Code, Section 1051 et seq.
         (11)  The furnishing of 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.
         (12)  The   furnishing   of  information  about  the
    existence of  an  account  of  a  person  to  a  judgment
    creditor  of  that  person who has made a written request
    for that information.
         (13)  The exchange in the regular course of business
    of information between commonly owned banks in connection
    with a transaction authorized  under  paragraph  (23)  of
    Section 5 and conducted at an affiliate facility.
         (14)  The  furnishing  of  information in accordance
    with  the  federal  Personal  Responsibility   and   Work
    Opportunity Reconciliation Act of 1996. Any bank governed
    by  this  Act  shall  enter  into  an  agreement for data
    exchanges with a State agency provided the  State  agency
    pays  to  the  bank  a  reasonable  fee not to exceed its
    actual cost incurred.  A bank  providing  information  in
    accordance  with  this  item  shall  not be liable to any
    account holder or other  person  for  any  disclosure  of
    information   to  a  State  agency,  for  encumbering  or
    surrendering any assets held by the bank in response to a
    lien or order to withhold and deliver issued by  a  State
    agency,  or  for  any other action taken pursuant to this
    item, including individual or mechanical errors, provided
    the  action  does  not  constitute  gross  negligence  or
    willful misconduct. A bank shall have  no  obligation  to
    hold,  encumber,  or  surrender  assets until it has been
    served  with  a  subpoena,  summons,  warrant,  court  or
    administrative order, lien, or levy.
         (15)  The exchange in the regular course of business
    of information between a  bank  and  any  commonly  owned
    affiliate  of  the bank, subject to the provisions of the
    Financial Institutions Insurance Sales Law.
         (16)  The   furnishing   of   information   to   law
    enforcement authorities, the Illinois Department on Aging
    and its regional administrative  and  provider  agencies,
    the  Department  of  Human  Services  Office of Inspector
    General, or public guardians, if the bank suspects that a
    customer who is an elderly or disabled person has been or
    may become the victim of financial exploitation. For  the
    purposes  of  this  item  (16),  the  term:  (i) "elderly
    person" means a person who is 60 or more  years  of  age,
    (ii)   "disabled  person"  means  a  person  who  has  or
    reasonably appears to the bank  to  have  a  physical  or
    mental disability that impairs his or her ability to seek
    or   obtain   protection   from   or   prevent  financial
    exploitation, and (iii)  "financial  exploitation"  means
    tortious  or illegal use of the assets or resources of an
    elderly  or  disabled  person,  and   includes,   without
    limitation,  misappropriation  of the elderly or disabled
    person's assets or resources by undue  influence,  breach
    of    fiduciary    relationship,   intimidation,   fraud,
    deception, extortion, or the use of assets  or  resources
    in   any  manner  contrary  to  law.  A  bank  or  person
    furnishing information pursuant to this item  (16)  shall
    be  entitled  to  the  same  rights  and protections as a
    person furnishing information under the Elder  Abuse  and
    Neglect  Act  and  the  Illinois Domestic Violence Act of
    1986.
    (c)  Except as otherwise provided by this Act, a bank may
not disclose to any person, except to  the  customer  or  his
duly  authorized  agent,  any  financial records or financial
information obtained from financial records relating to  that
customer of that bank unless:
         (1)  the  customer  has authorized disclosure to the
    person;
         (2)  the financial records are disclosed in response
    to a lawful subpoena, summons,  warrant  or  court  order
    which  meets  the  requirements of subsection (d) of this
    Section; or
         (3)  the bank is attempting to collect an obligation
    owed  to  the  bank  and  the  bank  complies  with   the
    provisions  of  Section  2I  of  the  Consumer  Fraud and
    Deceptive Business Practices Act.
    (d)  A  bank  shall  disclose  financial  records   under
paragraph  (2)  of  subsection  (c)  of  this Section under a
lawful subpoena, summons, warrant, or court order only  after
the  bank  mails a copy of the subpoena, summons, warrant, or
court order to the person establishing the relationship  with
the   bank,   if   living,   and,   otherwise   his  personal
representative, if known, at his last known address by  first
class  mail, postage prepaid, unless the bank is specifically
prohibited from notifying the person by order of court or  by
applicable  State  or  federal  law.  A bank shall not mail a
copy of a subpoena to any person pursuant to this  subsection
if  the  subpoena  was  issued  by  a  grand  jury  under the
Statewide Grand Jury Act.
    (e)  Any officer or employee of a bank who knowingly  and
willfully  furnishes  financial  records in violation of this
Section is guilty of a business offense and, upon conviction,
shall be fined not more than $1,000.
    (f)  Any person who knowingly and  willfully  induces  or
attempts  to  induce  any  officer  or  employee of a bank to
disclose financial records in violation of  this  Section  is
guilty  of  a business offense and, upon conviction, shall be
fined not more than $1,000.
    (g)  A bank  shall  be  reimbursed  for  costs  that  are
reasonably  necessary and that have been directly incurred in
searching for, reproducing, or  transporting  books,  papers,
records, or other data of a customer required or requested to
be  produced pursuant to a lawful subpoena, summons, warrant,
or court order. The Commissioner shall  determine  the  rates
and conditions under which payment may be made.
(Source:  P.A.  90-18,  eff.  7-1-97;  90-665,  eff. 7-30-98;
91-330, eff. 7-29-99.)

    (205 ILCS 5/48.6 new)
    Sec. 48.6.  Retention of records.  Unless a  federal  law
requires  otherwise,  the  Commissioner may by rule prescribe
periods of time for which banks operating under this Act must
retain records and after the expiration of  which,  the  bank
may destroy those records.  No liability shall accrue against
the bank, the Commissioner, or this State for the destruction
of records according to rules of the Commissioner promulgated
under  the  authority  of  this  Section.  In  any  cause  or
proceeding  in which any records may be called in question or
be demanded by any bank, a showing of the expiration  of  the
period  so  prescribed shall be sufficient excuse for failure
to produce them.

    Section 10.  The Illinois Savings and Loan Act of 1985 is
amended by changing Sections 1-10.14,  1-10.21,  and  3-8  as
follows:

    (205 ILCS 105/1-10.14) (from Ch. 17, par. 3301-10.14)
    Sec. 1-10.14.  "Person": an individual, limited liability
company,   partnership,   joint   venture,   trust,   estate,
unincorporated association, or corporation.
(Source: P.A. 84-543.)

    (205 ILCS 105/1-10.21) (from Ch. 17, par. 3301-10.21)
    Sec.  1-10.21.  "Service Corporation": any corporation or
limited liability company which is 90% or more owned  by  one
or   more   associations,   whose  purpose  or  purposes  are
reasonably incident to  the  accomplishment  of  the  express
powers   conferred   upon  associations  by  this  Act  or  a
corporation or limited liability company  chartered  for  any
purpose   whatsoever   by  at  least  one  association  or  a
corporation  or  limited  liability  company  in   which   an
association  has a controlling interest, and the ownership of
all of whose stock or ownership interest is  subject  to  the
regulations of the Commissioner.
(Source: P.A. 84-543.)

    (205 ILCS 105/3-8) (from Ch. 17, par. 3303-8)
    Sec.  3-8.   Access  to  books and records; communication
with members.
    (a)  Every member or holder of  capital  shall  have  the
right  to  inspect  the  books and records of the association
that  pertain  to  his  account.  Otherwise,  the  right   of
inspection  and examination of the books and records shall be
limited as provided in this Act, and no  other  person  shall
have  access to the books and records or shall be entitled to
a list of the members.
    (b)  For the purpose of this Section, the term "financial
records" means any original, any copy, or any summary of  (i)
a  document  granting  signature  authority over a deposit or
account; (ii) a statement, ledger card, or  other  record  on
any deposit or account that shows each transaction in or with
respect to that account; (iii) a check, draft, or money order
drawn   on  an  association  or  issued  and  payable  by  an
association; or (iv) any other  item  containing  information
pertaining  to  any  relationship established in the ordinary
course of an association's business  between  an  association
and its customer.
    (c)  This Section does not prohibit:
         (1)  The   preparation,  examination,  handling,  or
    maintenance of any  financial  records  by  any  officer,
    employee,  or  agent  of an association having custody of
    those records or the examination of those  records  by  a
    certified public accountant engaged by the association to
    perform an independent audit;
         (2)  The examination of any financial records by, or
    the furnishing of financial records by an association to,
    any  officer,  employee,  or agent of the Commissioner of
    Banks and Real Estate, Federal Savings and Loan Insurance
    Corporation and its successors, Federal Deposit Insurance
    Corporation,  Resolution  Trust   Corporation   and   its
    successors,   Federal   Home  Loan  Bank  Board  and  its
    successors, Office of Thrift Supervision, Federal Housing
    Finance Board, Board of Governors of the Federal  Reserve
    System,  any  Federal  Reserve Bank, or the Office of the
    Comptroller  of  the  Currency  for  use  solely  in  the
    exercise of his duties as an officer, employee, or agent;
         (3)  The  publication   of   data   furnished   from
    financial  records  relating  to  members  or  holders of
    capital where  the  data  cannot  be  identified  to  any
    particular member, holder of capital, or account;
         (4)  The making of reports or returns required under
    Chapter 61 of the Internal Revenue Code of 1986;
         (5)  Furnishing  information concerning the dishonor
    of any negotiable instrument permitted  to  be  disclosed
    under the Uniform Commercial Code;
         (6)  The  exchange in the regular course of business
    of credit information between an  association  and  other
    associations  or  financial  institutions  or  commercial
    enterprises,  directly  or  through  a consumer reporting
    agency;
         (7)  The   furnishing   of   information   to    the
    appropriate   law   enforcement   authorities  where  the
    association reasonably believes it has been the victim of
    a crime;
         (8)  The furnishing of information pursuant  to  the
    Uniform Disposition of Unclaimed Property Act;
         (9)  The  furnishing  of information pursuant to the
    Illinois Income Tax  Act  and  the  Illinois  Estate  and
    Generation-Skipping Transfer Tax Act;
         (10)  The  furnishing of information pursuant to the
    federal  "Currency  and  Foreign  Transactions  Reporting
    Act", (Title 31, United  States  Code,  Section  1051  et
    seq.);
         (11)  The  furnishing of information pursuant to 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;
         (12)  The  exchange  of   information   between   an
    association  and an affiliate of the association; as used
    in  this  item,   "affiliate"   includes   any   company,
    partnership, or organization that controls, is controlled
    by, or is under common control with an association.
         (13)  The  furnishing  of  information in accordance
    with  the  federal  Personal  Responsibility   and   Work
    Opportunity  Reconciliation Act of 1996.  Any association
    governed by this Act shall enter into  an  agreement  for
    data  exchanges  with  a  State agency provided the State
    agency pays to the association a reasonable  fee  not  to
    exceed   its   actual   cost  incurred.   An  association
    providing information in accordance with this item  shall
    not  be  liable to any account holder or other person for
    any disclosure of information  to  a  State  agency,  for
    encumbering  or  surrendering  any  assets  held  by  the
    association  in  response  to a lien or order to withhold
    and deliver issued by a State agency, or  for  any  other
    action  taken pursuant to this item, including individual
    or  mechanical  errors,  provided  the  action  does  not
    constitute gross negligence  or  willful  misconduct.  An
    association  shall  have no obligation to hold, encumber,
    or surrender assets until  it  has  been  served  with  a
    subpoena,   summons,  warrant,  court  or  administrative
    order, lien, or levy.
         (14)  The   furnishing   of   information   to   law
    enforcement authorities, the Illinois Department on Aging
    and its regional administrative  and  provider  agencies,
    the  Department  of  Human  Services  Office of Inspector
    General, or public guardians, if the association suspects
    that a customer who is an elderly or disabled person  has
    been  or may become the victim of financial exploitation.
    For the  purposes  of  this  item  (14),  the  term:  (i)
    "elderly  person"  means a person who is 60 or more years
    of age, (ii) "disabled person" means a person who has  or
    reasonably  appears to the association to have a physical
    or mental disability that impairs his or her  ability  to
    seek  or  obtain  protection  from  or  prevent financial
    exploitation, and (iii)  "financial  exploitation"  means
    tortious  or illegal use of the assets or resources of an
    elderly  or  disabled  person,  and   includes,   without
    limitation,  misappropriation  of the elderly or disabled
    person's assets or resources by undue  influence,  breach
    of    fiduciary    relationship,   intimidation,   fraud,
    deception, extortion, or the use of assets  or  resources
    in  any  manner contrary to law. An association or person
    furnishing information pursuant to this item  (14)  shall
    be  entitled  to  the  same  rights  and protections as a
    person furnishing information under the Elder  Abuse  and
    Neglect  Act  and  the  Illinois Domestic Violence Act of
    1986.
    (d)  An association  may  not  disclose  to  any  person,
except  to  the  member  or  holder  of  capital  or his duly
authorized agent, any  financial  records  relating  to  that
member or holder of capital of that association unless:
         (1)  The  member or holder of capital has authorized
    disclosure to the person; or
         (2)  The financial records are disclosed in response
    to a lawful subpoena, summons, warrant,  or  court  order
    that  meets  the  requirements  of subsection (e) of this
    Section.
    (e)  An  association  shall  disclose  financial  records
under subsection (d) of this Section  pursuant  to  a  lawful
subpoena,  summons,  warrant,  or  court order only after the
association mails a copy of the subpoena,  summons,  warrant,
or  court  order  to the person establishing the relationship
with the association, if living, and, otherwise, his personal
representative, if known, at his last known address by  first
class  mail,  postage  prepaid,  unless  the  association  is
specifically  prohibited  from notifying that person by order
of court.
    (f) (1)  Any officer or employee of  an  association  who
knowingly   and  willfully  furnishes  financial  records  in
violation of this Section is guilty  of  a  business  offense
and, upon conviction, shall be fined not more than $1,000.
    (2)  Any  person  who  knowingly and willfully induces or
attempts to induce any officer or employee of an  association
to disclose financial records in violation of this Section is
guilty  of  a business offense and, upon conviction, shall be
fined not more than $1,000.
    (g)  However, if any member desires to  communicate  with
the  other  members  of the association with reference to any
question pending or to be  presented  at  a  meeting  of  the
members,  the  association  shall  give  him  upon  request a
statement of the approximate number of  members  entitled  to
vote  at the meeting and an estimate of the cost of preparing
and mailing the communication.  The  requesting  member  then
shall submit the communication to the Commissioner who, if he
finds it to be appropriate and truthful, shall direct that it
be  prepared  and  mailed  to the members upon the requesting
member's payment or adequate provision  for  payment  of  the
expenses of preparation and mailing.
    (h)  An  Association  shall  be reimbursed for costs that
are  necessary  and  that  have  been  directly  incurred  in
searching for, reproducing, or  transporting  books,  papers,
records,   or  other  data  of  a  customer  required  to  be
reproduced pursuant to a lawful subpoena, warrant,  or  court
order.
(Source: P.A. 89-508, eff. 7-3-96; 90-18, eff. 7-1-97.)

    Section  15.  The Savings Bank Act is amended by changing
Sections 1007.90, 1007.105, and 4013 as follows:

    (205 ILCS 205/1007.90) (from Ch. 17, par. 7301-7.90)
    Sec. 1007.90.  "Person" means an individual, corporation,
limited liability company, partnership, joint venture, trust,
estate, or unincorporated association.
(Source: P.A. 86-1213.)

    (205 ILCS 205/1007.105) (from Ch. 17, par. 7301-7.105)
    Sec.   1007.105.    "Service   corporation"   means   any
corporation or limited liability company that is 51% or  more
owned  by  one or more savings banks, or by savings banks and
other depository institutions, whose purposes are  reasonably
incident  to  the accomplishment of the powers conferred upon
savings banks by this Act.
(Source: P.A. 91-97, eff. 7-9-99.)

    (205 ILCS 205/4013) (from Ch. 17, par. 7304-13)
    Sec. 4013.  Access to books  and  records;  communication
with members and shareholders.
    (a)  Every  member or shareholder shall have the right to
inspect books and records of the savings bank that pertain to
his  accounts.   Otherwise,  the  right  of  inspection   and
examination  of  the  books  and  records shall be limited as
provided in this Act, and no other person shall  have  access
to  the  books and records nor shall be entitled to a list of
the members or shareholders.
    (b)  For the purpose of this Section, the term "financial
records" means any original, any copy, or any summary of  (1)
a  document  granting  signature  authority over a deposit or
account; (2) a statement, ledger card, or other record on any
deposit or account that shows each  transaction  in  or  with
respect  to  that account; (3) a check, draft, or money order
drawn on a savings bank or issued and payable  by  a  savings
bank; or (4) any other item containing information pertaining
to  any  relationship established in the ordinary course of a
savings bank's  business  between  a  savings  bank  and  its
customer.
    (c)  This Section does not prohibit:
         (1)  The   preparation   examination,  handling,  or
    maintenance of any financial   records  by  any  officer,
    employee,  or  agent  of a savings bank having custody of
    records or examination of records by a  certified  public
    accountant  engaged  by  the  savings  bank to perform an
    independent audit.
         (2)  The examination of any financial records by, or
    the furnishing of financial records by a savings bank to,
    any officer, employee, or agent of  the  Commissioner  of
    Banks  and  Real  Estate or the Federal Deposit Insurance
    Corporation for use solely in the exercise of his  duties
    as an officer, employee, or agent.
         (3)  The   publication   of   data   furnished  from
    financial records  relating  to  members  or  holders  of
    capital  where  the  data  cannot  be  identified  to any
    particular member, shareholder, or account.
         (4)  The making of reports or returns required under
    Chapter 61 of the Internal Revenue Code of 1986.
         (5)  Furnishing information concerning the  dishonor
    of  any  negotiable  instrument permitted to be disclosed
    under the Uniform Commercial Code.
         (6)  The exchange in the regular course of  business
    of  credit  information  between a savings bank and other
    savings banks or  financial  institutions  or  commercial
    enterprises,  directly  or  through  a consumer reporting
    agency.
         (7)  The   furnishing   of   information   to    the
    appropriate law enforcement authorities where the savings
    bank  reasonably  believes  it  has  been the victim of a
    crime.
         (8)  The furnishing of information pursuant  to  the
    Uniform Disposition of Unclaimed Property Act.
         (9)  The  furnishing  of information pursuant to the
    Illinois Income Tax  Act  and  the  Illinois  Estate  and
    Generation-Skipping Transfer Tax Act.
         (10)  The  furnishing of information pursuant to the
    federal  "Currency  and  Foreign  Transactions  Reporting
    Act", (Title 31, United  States  Code,  Section  1051  et
    seq.).
         (11)  The  furnishing of information pursuant to any
    other statute  which  by  its  terms  or  by  regulations
    promulgated   thereunder   requires   the  disclosure  of
    financial  records  other  than  by  subpoena,   summons,
    warrant, or court order.
         (12)  The  furnishing  of  information in accordance
    with  the  federal  Personal  Responsibility   and   Work
    Opportunity  Reconciliation Act of 1996. Any savings bank
    governed by this Act shall enter into  an  agreement  for
    data  exchanges  with  a  State agency provided the State
    agency pays to the savings bank a reasonable fee  not  to
    exceed   its   actual  cost  incurred.   A  savings  bank
    providing information in accordance with this item  shall
    not  be  liable to any account holder or other person for
    any disclosure of information  to  a  State  agency,  for
    encumbering  or  surrendering  any  assets  held  by  the
    savings  bank  in response to a lien or order to withhold
    and deliver issued by a State agency, or  for  any  other
    action  taken pursuant to this item, including individual
    or  mechanical  errors,  provided  the  action  does  not
    constitute gross negligence or  willful  misconduct.    A
    savings  bank shall have no obligation to hold, encumber,
    or surrender assets until  it  has  been  served  with  a
    subpoena,   summons,  warrant,  court  or  administrative
    order, lien, or levy.
         (13)  The   furnishing   of   information   to   law
    enforcement authorities, the Illinois Department on Aging
    and its regional administrative  and  provider  agencies,
    the  Department  of  Human  Services  Office of Inspector
    General,  or  public  guardians,  if  the  savings   bank
    suspects  that  a  customer who is an elderly or disabled
    person has been or may become  the  victim  of  financial
    exploitation.  For  the  purposes  of this item (13), the
    term: (i) "elderly person" means a person who  is  60  or
    more  years of age, (ii) "disabled person" means a person
    who has or reasonably appears to the savings bank to have
    a physical or mental disability that impairs his  or  her
    ability  to  seek  or  obtain  protection from or prevent
    financial    exploitation,    and    (iii)     "financial
    exploitation" means tortious or illegal use of the assets
    or  resources  of  an  elderly  or  disabled  person, and
    includes, without  limitation,  misappropriation  of  the
    elderly or disabled person's assets or resources by undue
    influence,     breach    of    fiduciary    relationship,
    intimidation, fraud, deception, extortion, or the use  of
    assets  or  resources  in  any  manner contrary to law. A
    savings bank or person furnishing information pursuant to
    this item (13) shall be entitled to the same  rights  and
    protections  as a person furnishing information under the
    Elder Abuse and Neglect Act  and  the  Illinois  Domestic
    Violence Act of 1986.
    (d)  A  savings  bank  may  not  disclose  to any person,
except to the  member  or  holder  of  capital  or  his  duly
authorized  agent,  any  financial  records  relating to that
member or shareholder of the savings bank unless:
         (1)  the  member  or  shareholder   has   authorized
    disclosure to the person; or
         (2)  the financial records are disclosed in response
    to  a  lawful  subpoena, summons, warrant, or court order
    that meets the requirements of  subsection  (e)  of  this
    Section.
    (e)  A  savings  bank  shall  disclose  financial records
under subsection (d) of this Section  pursuant  to  a  lawful
subpoena,  summons,  warrant,  or  court order only after the
savings bank mails a copy of the subpoena, summons,  warrant,
or  court  order  to the person establishing the relationship
with the savings bank, if living, and otherwise, his personal
representative, if known, at his last known address by  first
class  mail,  postage  prepaid,  unless  the  savings bank is
specifically prohibited from notifying the person by order of
court.
    (f)  Any officer  or  employee  of  a  savings  bank  who
knowingly   and  willfully  furnishes  financial  records  in
violation of this Section is guilty  of  a  business  offense
and, upon conviction, shall be fined not more than $1,000.
    (g)  Any  person  who  knowingly and willfully induces or
attempts to induce any officer or employee of a savings  bank
to disclose financial records in violation of this Section is
guilty  of  a business offense and, upon conviction, shall be
fined not more than $1,000.
    (h)  If any member or shareholder desires to  communicate
with  the  other  members or shareholders of the savings bank
with reference to any question pending or to be presented  at
an  annual  or  special  meeting, the savings bank shall give
that person, upon request, a  statement  of  the  approximate
number  of  members  or  shareholders entitled to vote at the
meeting and an estimate of the cost of preparing and  mailing
the  communication.   The  requesting member shall submit the
communication to the Commissioner who, upon finding it to  be
appropriate  and  truthful,  shall direct that it be prepared
and mailed to the members upon  the  requesting  member's  or
shareholder's  payment  or  adequate provision for payment of
the expenses of preparation and mailing.
    (i)  A savings bank shall be reimbursed  for  costs  that
are  necessary  and  that  have  been  directly  incurred  in
searching  for,  reproducing,  or transporting books, papers,
records,  or  other  data  of  a  customer  required  to   be
reproduced  pursuant  to a lawful subpoena, warrant, or court
order.
    (j)  Notwithstanding the provisions of  this  Section,  a
savings  bank  may  sell  or  otherwise  make use of lists of
customers'  names  and  addresses.   All  other   information
regarding  a customer's account are subject to the disclosure
provisions of this Section.  At the request of any  customer,
that  customer's  name  and address shall be deleted from any
list that is to be sold or used in any  other  manner  beyond
identification of the customer's accounts.
(Source: P.A. 89-508, eff. 7-3-96; 90-18, eff. 7-1-97.)

    Section  20.  The Illinois Credit Union Act is amended by
changing Sections 10, 15, 20, 22, 31, 32, 33, 35, and  52  as
follows:

    (205 ILCS 305/10) (from Ch. 17, par. 4411)
    Sec. 10.  Credit union records; member financial records.
    (1)  A  credit  union shall establish and maintain books,
records, accounting systems and procedures  which  accurately
reflect  its  operations  and  which enable the Department to
readily ascertain the true financial condition of the  credit
union and whether it is complying with this Act.
    (2)  A  photostatic  or  photographic reproduction of any
credit union records  shall  be  admissible  as  evidence  of
transactions with the credit union.
    (3) (a)  For  the  purpose  of  this  Section,  the  term
    "financial  records" means any original, any copy, or any
    summary of (1) a document  granting  signature  authority
    over  an  account,  (2) a statement, ledger card or other
    record on any account which shows each transaction in  or
    with respect to that account, (3) a check, draft or money
    order drawn on a financial institution or other entity or
    issued  and payable by or through a financial institution
    or  other  entity,  or  (4)  any  other  item  containing
    information pertaining to any relationship established in
    the ordinary course of business between  a  credit  union
    and its member.
         (b)  This Section does not prohibit:
              (1)  The  preparation, examination, handling or
         maintenance of any financial records by any officer,
         employee or agent of a credit union  having  custody
         of  such records, or the examination of such records
         by a certified public  accountant   engaged  by  the
         credit union to perform an independent audit;
              (2)  The  examination  of any financial records
         by or the  furnishing  of  financial  records  by  a
         credit  union  to  any officer, employee or agent of
         the   Department,   the   National   Credit    Union
         Administration, Federal Reserve board or any insurer
         of  share accounts for use solely in the exercise of
         his duties as an officer, employee or agent;
              (3)  The publication  of  data  furnished  from
         financial records relating to members where the data
         cannot  be  identified to any particular customer of
         account;
              (4)  The making of reports or returns  required
         under  Chapter  61  of  the Internal Revenue Code of
         1954;
              (5)  Furnishing  information   concerning   the
         dishonor  of  any negotiable instrument permitted to
         be disclosed under the Uniform Commercial Code;
              (6)  The exchange  in  the  regular  course  of
         business  of  credit  information  between  a credit
         union  and  other   credit   unions   or   financial
         institutions  or commercial enterprises, directly or
         through a consumer reporting agency;
              (7)  The  furnishing  of  information  to   the
         appropriate  law  enforcement  authorities where the
         credit union reasonably believes  it  has  been  the
         victim of a crime;
              (8)  The  furnishing of information pursuant to
         the Uniform Disposition of Unclaimed Property Act;
              (9)  The furnishing of information pursuant  to
         the  Illinois Income Tax Act and the Illinois Estate
         and Generation-Skipping Transfer Tax Act;
              (10)  The furnishing of information pursuant to
         the  federal  "Currency  and  Foreign   Transactions
         Reporting   Act",  Title  31,  United  States  Code,
         Section 1051 et sequentia; or
              (11)  The furnishing of information pursuant to
         any  other  statute  which  by  its  terms   or   by
         regulations   promulgated  thereunder  requires  the
         disclosure  of  financial  records  other  than   by
         subpoena, summons, warrant or court order.
              (12)  The    furnishing   of   information   in
         accordance with the federal Personal  Responsibility
         and Work Opportunity Reconciliation Act of 1996. Any
         credit  union  governed by this Act shall enter into
         an agreement for data exchanges with a State  agency
         provided the State agency pays to the credit union a
         reasonable   fee  not  to  exceed  its  actual  cost
         incurred.  A credit union providing  information  in
         accordance with this item shall not be liable to any
         account holder or other person for any disclosure of
         information  to  a  State agency, for encumbering or
         surrendering any assets held by the credit union  in
         response  to a lien or order to withhold and deliver
         issued by a State agency, or for  any  other  action
         taken pursuant to this item, including individual or
         mechanical  errors,  provided  the  action  does not
         constitute gross negligence or willful misconduct. A
         credit union  shall  have  no  obligation  to  hold,
         encumber,  or  surrender  assets  until  it has been
         served with a subpoena, summons, warrant,  court  or
         administrative order, lien, or levy.
              (13)  The  furnishing  of  information  to  law
         enforcement  authorities, the Illinois Department on
         Aging and its regional administrative  and  provider
         agencies, the Department of Human Services Office of
         Inspector  General,  or  public  guardians,  if  the
         credit  union  suspects  that  a  member  who  is an
         elderly or disabled person has been  or  may  become
         the   victim  of  financial  exploitation.  For  the
         purposes of this item (13), the term:  (i)  "elderly
         person"  means  a  person who is 60 or more years of
         age, (ii) "disabled person" means a person  who  has
         or  reasonably appears to the credit union to have a
         physical or mental disability that  impairs  his  or
         her  ability  to  seek  or obtain protection from or
         prevent financial exploitation, and (iii) "financial
         exploitation" means tortious or illegal use  of  the
         assets  or  resources  of  an  elderly  or  disabled
         person,    and    includes,    without   limitation,
         misappropriation of the elderly or disabled person's
         assets or resources by undue  influence,  breach  of
         fiduciary    relationship,    intimidation,   fraud,
         deception,  extortion,  or  the  use  of  assets  or
         resources in any manner contrary to  law.  A  credit
         union  or  person furnishing information pursuant to
         this item (13) shall be entitled to the same  rights
         and  protections  as a person furnishing information
         under the  Elder  Abuse  and  Neglect  Act  and  the
         Illinois Domestic Violence Act of 1986.
    (c)  A  credit  union  may  not  disclose  to any person,
except to the  member  or  his  duly  authorized  agent,  any
financial records relating to that member of the credit union
unless:
         (1)  the  member  has  authorized  disclosure to the
    person;
         (2)  the financial records are disclosed in response
    to a lawful subpoena, summons,  warrant  or  court  order
    that  meets  the requirements of subparagraph (d) of this
    Section; or
         (3)  the credit union is attempting  to  collect  an
    obligation  owed to the credit union and the credit union
    complies  with  the  provisions  of  Section  2I  of  the
    Consumer Fraud and Deceptive Business Practices Act.
    (d)  A credit  union  shall  disclose  financial  records
under  subparagraph  (c)(2)  of  this  Section  pursuant to a
lawful subpoena, summons, warrant or court order  only  after
the  credit  union  mails  a  copy  of the subpoena, summons,
warrant  or  court  order  to  the  person  establishing  the
relationship with the credit union, if living, and  otherwise
his  personal  representative,  if  known,  at his last known
address by first  class  mail,  postage  prepaid  unless  the
credit  union  is  specifically prohibited from notifying the
person by order of court or by applicable  State  or  federal
law.  In  the  case  of a grand jury subpoena, a credit union
shall not mail a copy of a subpoena to any person pursuant to
this subsection if the subpoena was issued by  a  grand  jury
under  the  Statewide  Grand Jury Act or notifying the person
would  constitute  a  violation  of  the  federal  Right   to
Financial Privacy Act of 1978.
    (e) (1)  Any  officer  or  employee of a credit union who
    knowingly and wilfully  furnishes  financial  records  in
    violation of this Section is guilty of a business offense
    and  upon conviction thereof shall be fined not more than
    $1,000.
         (2)  Any person who knowingly and  wilfully  induces
    or attempts to induce any officer or employee of a credit
    union  to disclose financial records in violation of this
    Section  is  guilty  of  a  business  offense  and   upon
    conviction thereof shall be fined not more than $1,000.
    (f)  A  credit  union shall be reimbursed for costs which
are  reasonably  necessary  and  which  have  been   directly
incurred in searching for, reproducing or transporting books,
papers,  records  or  other  data  of  a  member  required or
requested to be  produced  pursuant  to  a  lawful  subpoena,
summons, warrant or court order.
(Source: P.A. 89-603, eff. 8-2-96; 90-18, eff. 7-1-97.)

    (205 ILCS 305/15) (from Ch. 17, par. 4416)
    Sec. 15.  Membership defined.
    (1)  The membership of a credit union shall be limited to
and   consist   of   the   subscribers  to  the  articles  of
incorporation and such other persons within the common  bond,
as defined in this Act and as set forth in the credit union's
articles   of  incorporation,  as  have  been  duly  admitted
members, have paid the required entrance  fee  or  membership
fee, or both, if any, have subscribed for one or more shares,
and  have  paid  the  initial  installment  thereon, and have
complied with such other  requirements  as  the  articles  of
incorporation  or bylaws specify.  Two or more persons within
the common bond who have jointly subscribed for one  or  more
shares  under  a  joint  account  and  have complied with all
membership requirements may each be admitted  to  membership.
The  surviving  spouse of a credit union member may, within 6
months of the member's death, become a member of  the  credit
union  by  paying the required entrance fee or membership fee
or both, if any, by subscribing for one or  more  shares  and
paying the initial installment thereon, and by complying with
such  other  requirements as the articles of incorporation or
bylaws specify.
    (2)  Any member may withdraw from a credit union  at  any
time  upon  giving  notice  of  withdrawal as required by the
bylaws.
    (3)  Any member may be expelled by  a  2/3  vote  of  the
members  present  at any regular or special meeting called to
consider the matter, but only after an opportunity  has  been
given to the member to be heard.
    (4)  A  member  who has caused a loss to the credit union
or who has failed to maintain  one  or  more  shares  at  the
credit  union  may be expelled by a majority vote of a quorum
of directors if the board has adopted a policy providing  for
expulsion  under  those  circumstances.   In  maintaining and
enforcing  a  this  policy  based  on  loss,  the  board  may
consider, without  limitation,  a  member's  failure  to  pay
amounts  due under a loan, failure to provide collected funds
to cover withdrawals or personal share drafts or credit union
drafts where the member is a remitter, or failure to pay fees
or charges due the credit union.  If a the policy is  adopted
by  the board pursuant to this subsection (4), written notice
of the policy and the effective date of the policy  shall  be
mailed  to  each  member  of the credit union at the member's
current address appearing on the records of the credit union.
The policy shall be mailed to members not fewer than 30  days
prior  to the effective date of the policy.  In addition, new
members shall be provided written notice of the policy  prior
to or upon applying for membership.
    (5)  All  or  any  part of the amount paid on shares of a
withdrawing member  or  expelled  member  with  any  declared
dividends  or interest on the date of withdrawal or expulsion
must, after deducting all amounts due from the member to  the
credit  union,  be paid to him.  The credit union may require
not more  than  60  days'  written  notice  of  intention  to
withdraw  shares, but a notice of withdrawal does not entitle
the member to any preferred or prior claim in  the  event  of
liquidation.  Withdrawing or expelled members have no further
rights  in  the  credit  union, but are not, by withdrawal or
expulsion, released from  any  obligation  they  owe  to  the
credit union.
    (6)  A  member  who has caused a loss to the credit union
may be denied any or all credit union services in  accordance
with  board  policy, however, members who are denied services
shall be allowed to maintain a share account and to  vote  on
all issues put to a vote of the membership.
(Source: P.A. 88-235; 89-603, eff. 8-2-96.)

    (205 ILCS 305/20) (from Ch. 17, par. 4421)
    Sec. 20.  Election or appointment of officials.
    (1)  The  credit  union  shall  be directed by a Board of
Directors consisting of no less  than  7  in  number,  to  be
elected  at  the  annual  meeting  by  and  from the members.
Directors shall hold office until the  next  annual  meeting,
unless  their  terms  are  staggered.   Upon amendment of its
bylaws, a credit union may divide the Directors into 2  or  3
classes  with  each  class  as  nearly  equal  in  number  as
possible.   The  term of office of the directors of the first
class shall expire at the first annual  meeting  after  their
election, that of the second class shall expire at the second
annual  meeting  after  their election, and that of the third
class, if any, shall expire at the third annual meeting after
their  election.    At  each   annual   meeting   after   the
classification,  the  number of directors equal to the number
of directors whose terms expire at the time  of  the  meeting
shall  be  elected to hold office until the second succeeding
annual meeting if there are 2  classes  or  until  the  third
succeeding annual meeting if there are 3 classes.  A Director
shall hold office for the term for which he or she is elected
and  until his or her successor is elected and qualified.  In
all elections for Directors, every member has  the  right  to
vote,  in  person  or by proxy, the number of shares owned by
him, or in the case of a member other than a natural  person,
the  member's  one  vote,  for  as  many persons as there are
Directors to be elected, or to cumulate such shares, and give
one candidate as  many  votes  as  the  number  of  Directors
multiplied  by  the  number  of  his  shares  equals,  or  to
distribute   them   on  the  same  principle  among  as  many
candidates as he may desire and the Directors  shall  not  be
elected  in any other manner.  Shares held in a joint account
owned by more than one member may be voted by any one of  the
members, however, the number of cumulative votes cast may not
exceed  a  total  equal to the number of shares multiplied by
the number of directors to be elected.   A  majority  of  the
shares entitled to vote shall be represented either in person
or  by  proxy  for  the election of Directors.  Each Director
shall wholly take and subscribe  to  an  oath  that  he  will
diligently  and  honestly perform his duties in administering
the affairs of the credit union, that while he  may  delegate
to  another the performance of those administrative duties he
is not thereby relieved from  his  responsibility  for  their
performance,  that he will not knowingly violate or willingly
permit to be violated any law applicable to the credit union,
and that he is the owner of at least one share of the  credit
union.
    (2)  The  Board of Directors shall appoint from among the
members of the credit union, a Supervisory Committee  of  not
less than 3 members at the organization meeting and within 30
days  following  each  annual meeting of the members for such
terms as the bylaws  provide.   Members  of  the  Supervisory
Committee  may,  but  need not be, on the Board of Directors,
but shall not be officers of the credit union, or members  of
the  Credit  Committee,  or  the  credit manager if no Credit
Committee has been appointed.
    (3)  The Board of Directors may shall appoint, from among
the  members  of  the  credit  union,  a   Credit   Committee
consisting  of  an odd number, not less than 3 for such terms
as the bylaws provide. Members of the Credit  Committee  may,
but  need  not be, Directors or officers of the credit union,
but shall not be members of the Supervisory Committee.
    (4)  The Board of Directors shall appoint from among  the
members  of the credit union a Membership Committee of one or
more  persons.   It  shall  act  upon  all  applications  for
membership and submit a report of its actions to the Board of
Directors at the next monthly meeting for review.
(Source: P.A. 88-235; 89-74, eff. 6-30-95.)

    (205 ILCS 305/22) (from Ch. 17, par. 4423)
    Sec. 22.  Vacancies.  The Board of  Directors  shall,  by
appointment  from  among  the  credit union members, fill any
vacancies occurring on the Board for  the  remainder  of  the
Director's unexpired term or until a successor is elected and
qualified.   The  Board  shall, by appointment from among the
credit  union  members,  fill  vacancies  in  the  Membership
Committee, Credit Committee, or credit manager if  no  Credit
Committee has been appointed, and Supervisory Committees.
(Source: P.A. 81-329.)

    (205 ILCS 305/31) (from Ch. 17, par. 4432)
    Sec.   31.  Supervision  of  loans  Authority  of  Credit
Committee.  The  Credit  Committee  shall  have  the  general
supervision of all loans and lines of credit to  members.  If
no  Credit  Committee  has been appointed, the credit manager
shall have the general supervision of all loans and lines  of
credit to members.
(Source: P.A. 81-329.)

    (205 ILCS 305/32) (from Ch. 17, par. 4433)
    Sec.  32.  Meetings  of  Credit  Committee.  If  a Credit
Committee has been appointed by the board, the provisions  of
this Section shall apply.  The Credit Committee shall meet as
often  as  the operations of the credit union require and not
less frequently than once a month  to  consider  applications
for  loans  and lines of credit.  Unless a greater percentage
is required in the credit union's bylaws, a majority  of  the
Credit Committee shall constitute a quorum.  No loan shall be
made  unless it is approved, in writing, by a majority of the
Committee who are present at a meeting at which a  quorum  is
present  and  at  which  the  application is considered.  The
Credit Committee shall report to the Directors at each  Board
meeting on all meetings held and actions taken since the last
Board meeting.
(Source: P.A. 81-329.)
    (205 ILCS 305/33) (from Ch. 17, par. 4434)
    Sec. 33.  Credit manager.
    (1)  The  Credit Committee may or, if no Credit Committee
has been appointed, the Board of Directors  shall  appoint  a
credit   manager   who  shall  be  empowered  to  approve  or
disapprove  loans  and  lines  of  credit  under   conditions
prescribed  by  the Board of Directors.  The Credit Committee
or credit manager may appoint one or more loan officers  with
the  power  to  approve loans and lines of credit, subject to
such limitations or conditions as may be  prescribed  by  the
Board of Directors.  The credit manager and any loan officers
appointed by the Credit Committee or the credit manager shall
keep written records of all transactions and shall report, in
writing,  to  the  Credit Committee if a Credit Committee has
been appointed, otherwise which  shall  in  turn  report,  in
writing, to the Directors at each Board meeting.
    (2)  Applications  for  loans  or  lines  of  credit  not
approved  by  a loan officer shall be reviewed and acted upon
by the Credit Committee or credit manager.
    (3)  The loan officers must keep written records  of  all
loans  or  lines  of  credit granted or refused and any other
transactions and submit a report to the Credit  Committee  or
credit manager at least once each month.
(Source: P.A. 81-329.)

    (205 ILCS 305/35) (from Ch. 17, par. 4436)
    Sec. 35.  Suspension and removal of officials.
    (1)  The  Supervisory  Committee,  by a unanimous vote of
the whole committee, may suspend any  member  of  the  Credit
Committee  or  the  credit manager if no Credit Committee has
been appointed and.  The Supervisory Committee  shall  report
such action to the Board of Directors for appropriate action.
    (2)  The  Supervisory  Committee,  by a unanimous vote of
the whole committee, may suspend any officer or member of the
Board of Directors until the  next  members'  meeting,  which
shall  be  held  not  less than 7 nor more than 21 days after
such suspension.  At such meeting, the  suspension  shall  be
acted upon by the members, who shall either confirm or reject
it by majority vote.
(Source: P.A. 81-329.)

    (205 ILCS 305/52) (from Ch. 17, par. 4453)
    Sec. 52.  Loans to directors, officers, Credit Committee,
credit manager, and Supervisory Committee members.   A credit
union  may  make  loans  to  its  directors, officers, Credit
Committee members, credit manager, and Supervisory  Committee
members,  provided  that  the  loan  complies with all lawful
requirements under this Act with respect to  loans  to  other
borrowers.   No  loan  may  be  made  to  or  cosigned by any
director, officer, Credit Committee member, credit manager if
no  Credit  Committee  has  been  appointed,  or  Supervisory
Committee member which would cause the  aggregate  amount  of
all  loans  then outstanding to or cosigned by all directors,
officers, Credit Committee  members,  credit  manager  if  no
Credit Committee has been appointed, or Supervisory Committee
members  to  exceed 20% of the unimpaired capital and surplus
of the credit union.
(Source: P.A. 85-1273.)

    Section 99. Effective date. This Act  takes  effect  upon
becoming law.

[ Top ]