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Public Act 92-0543
SB119 Enrolled LRB9204827JSpc
AN ACT in relation to financial 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 48.1 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.
(17) The disclosure of financial records or
information as necessary to effect, administer, or
enforce a transaction requested or authorized by the
customer, or in connection with:
(A) servicing or processing a financial
product or service requested or authorized by the
customer;
(B) maintaining or servicing a customer's
account with the bank; or
(C) a proposed or actual securitization or
secondary market sale (including sales of servicing
rights) related to a transaction of a customer.
Nothing in this item (17), however, authorizes the
sale of the financial records or information of a
customer without the consent of the customer.
(18) The disclosure of financial records or
information as necessary to protect against actual or
potential fraud, unauthorized transactions, claims, or
other liability.
(19) (a) The disclosure of financial records or
information related to a private label credit program
between a financial institution and a private label party
in connection with that private label credit program.
Such information is limited to outstanding balance,
available credit, payment and performance and account
history, product references, purchase information, and
information related to the identity of the customer.
(b) (l) For purposes of this paragraph (19) of
subsection (b) of Section 48.1, a "private label credit
program" means a credit program involving a financial
institution and a private label party that is used by a
customer of the financial institution and the private
label party primarily for payment for goods or services
sold, manufactured, or distributed by a private label
party.
(2) For purposes of this paragraph (19) of
subsection (b) of Section 48.l, a "private label party"
means, with respect to a private label credit program,
any of the following: a retailer, a merchant, a
manufacturer, a trade group, or any such person's
affiliate, subsidiary, member, agent, or service
provider.
(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. 91-330, eff. 7-29-99; 91-929, eff. 12-15-00;
92-483, eff. 8-23-01.)
Section 10. The Illinois Savings and Loan Act of 1985 is
amended by changing Section 3-8 as follows:
(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, including financial statements or other
financial information provided by the member or holder of
capital.
(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 (i) credit information between an association and
other associations or financial institutions or
commercial enterprises, directly or through a consumer
reporting agency or (ii) financial records or information
derived from financial records between an association and
other associations or financial institutions or
commercial enterprises for the purpose of conducting due
diligence pursuant to a purchase or sale involving the
association or assets or liabilities of the association.
(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.
(15) The disclosure of financial records or
information as necessary to effect, administer, or
enforce a transaction requested or authorized by the
member or holder of capital, or in connection with:
(A) servicing or processing a financial
product or service requested or authorized by the
member or holder of capital;
(B) maintaining or servicing an account of a
member or holder of capital with the association; or
(C) a proposed or actual securitization or
secondary market sale (including sales of servicing
rights) related to a transaction of a member or
holder of capital.
Nothing in this item (15), however, authorizes the
sale of the financial records or information of a member
or holder of capital without the consent of the member or
holder of capital.
(16) The disclosure of financial records or
information as necessary to protect against or prevent
actual or potential fraud, unauthorized transactions,
claims, or other liability.
(17) (a) The disclosure of financial records or
information related to a private label credit program
between a financial institution and a private label party
in connection with that private label credit program.
Such information is limited to outstanding balance,
available credit, payment and performance and account
history, product references, purchase information, and
information related to the identity of the customer.
(b) (l) For purposes of this paragraph (17) of
subsection (c) of Section 3-8, a "private label credit
program" means a credit program involving a financial
institution and a private label party that is used by a
customer of the financial institution and the private
label party primarily for payment for goods or services
sold, manufactured, or distributed by a private label
party.
(2) For purposes of this paragraph (17) of
subsection (c) of Section 3-8, a "private label party"
means, with respect to a private label credit program,
any of the following: a retailer, a merchant, a
manufacturer, a trade group, or any such person's
affiliate, subsidiary, member, agent, or service
provider.
(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. 91-929, eff. 12-15-00; 92-483, eff. 8-23-01.)
Section 15. The Savings Bank Act is amended by changing
Section 4013 as follows:
(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, including financial statements or other financial
information provided by the member or shareholder.
(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 (i) credit information between a savings bank and
other savings 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 savings bank and
other savings banks or financial institutions or
commercial enterprises for the purpose of conducting due
diligence pursuant to a purchase or sale involving the
savings bank or assets or liabilities of the savings
bank.
(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.
(14) The disclosure of financial records or
information as necessary to effect, administer, or
enforce a transaction requested or authorized by the
member or holder of capital, or in connection with:
(A) servicing or processing a financial
product or service requested or authorized by the
member or holder of capital;
(B) maintaining or servicing an account of a
member or holder of capital with the savings bank;
or
(C) a proposed or actual securitization or
secondary market sale (including sales of servicing
rights) related to a transaction of a member or
holder of capital.
Nothing in this item (14), however, authorizes the
sale of the financial records or information of a member
or holder of capital without the consent of the member or
holder of capital.
(15) The exchange in the regular course of business
of information between a savings bank and any commonly
owned affiliate of the savings bank, subject to the
provisions of the Financial Institutions Insurance Sales
Law.
(16) The disclosure of financial records or
information as necessary to protect against or prevent
actual or potential fraud, unauthorized transactions,
claims, or other liability.
(17) (a) The disclosure of financial records or
information related to a private label credit program
between a financial institution and a private label party
in connection with that private label credit program.
Such information is limited to outstanding balance,
available credit, payment and performance and account
history, product references, purchase information, and
information related to the identity of the customer.
(b) (l) For purposes of this paragraph (17) of
subsection (c) of Section 4013, a "private label credit
program" means a credit program involving a financial
institution and a private label party that is used by a
customer of the financial institution and the private
label party primarily for payment for goods or services
sold, manufactured, or distributed by a private label
party.
(2) For purposes of this paragraph (17) of
subsection (c) of Section 4013, a "private label party"
means, with respect to a private label credit program,
any of the following: a retailer, a merchant, a
manufacturer, a trade group, or any such person's
affiliate, subsidiary, member, agent, or service
provider.
(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. 91-929, eff. 12-15-00; 92-483, eff. 8-23-01.)
Section 20. The Illinois Credit Union Act is amended by
changing Section 10 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, including financial statements or other
financial information provided by the 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 (i) credit information between a credit
union and other credit unions 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 credit union and other
credit unions or financial institutions or
commercial enterprises for the purpose of conducting
due diligence pursuant to a merger or a purchase or
sale of assets or liabilities of the credit union.
(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.
(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.
(14) The disclosure of financial records or
information as necessary to effect, administer, or
enforce a transaction requested or authorized by the
member, or in connection with:
(A) servicing or processing a financial
product or service requested or authorized by
the member;
(B) maintaining or servicing a member's
account with the credit union; or
(C) a proposed or actual securitization
or secondary market sale (including sales of
servicing rights) related to a transaction of a
member.
Nothing in this item (14), however, authorizes
the sale of the financial records or information of
a member without the consent of the member.
(15) The disclosure of financial records or
information as necessary to protect against or
prevent actual or potential fraud, unauthorized
transactions, claims, or other liability.
(16) (a) The disclosure of financial records
or information related to a private label credit
program between a financial institution and a
private label party in connection with that private
label credit program. Such information is limited to
outstanding balance, available credit, payment and
performance and account history, product references,
purchase information, and information related to the
identity of the customer.
(b) (l) For purposes of this paragraph (16) of
subsection (b) of Section 10, a "private label
credit program" means a credit program involving a
financial institution and a private label party that
is used by a customer of the financial institution
and the private label party primarily for payment
for goods or services sold, manufactured, or
distributed by a private label party.
(2) For purposes of this paragraph (16) of
subsection (b) of Section 10, a "private label
party" means, with respect to a private label credit
program, any of the following: a retailer, a
merchant, a manufacturer, a trade group, or any such
person's affiliate, subsidiary, member, agent, or
service provider.
(c) Except as otherwise provided by this Act, 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. The
Director may determine, by rule, the rates and conditions
under which payment shall be made. Delivery of requested
documents may be delayed until final reimbursement of all
costs is received.
(Source: P.A. 91-929, eff. 12-15-00; 92-293, eff. 8-9-01;
92-483, eff. 8-23-01.)
Section 99. Effective date. This Act takes effect upon
becoming law.
Passed in the General Assembly April 18, 2002.
Approved June 12, 2002.
Effective June 12, 2002.
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