093_HB1521

 
                                     LRB093 10178 JLS 10432 b

 1        AN ACT concerning financial institutions.

 2        Be it enacted by the People of  the  State  of  Illinois,
 3    represented in the General Assembly:

 4        Section  5.   The  Illinois  Banking  Act  is  amended by
 5    changing Section 48.1 as follows:

 6        (205 ILCS 5/48.1) (from Ch. 17, par. 360)
 7        Sec. 48.1.  Customer financial records; confidentiality.
 8        (a)  For the purpose of this Section, the term "financial
 9    records" means any original, any copy, or any summary of:
10             (1)  a document granting signature authority over  a
11        deposit or account;
12             (2)  a statement, ledger card or other record on any
13        deposit  or  account,  which shows each transaction in or
14        with respect to that account;
15             (3)  a check, draft or money order drawn on  a  bank
16        or issued and payable by a bank; or
17             (4)  any    other    item   containing   information
18        pertaining  to  any  relationship  established   in   the
19        ordinary  course  of a bank's business between a bank and
20        its customer, including  financial  statements  or  other
21        financial information provided by the customer.
22        (b)  This Section does not prohibit:
23             (1)  The   preparation,   examination,  handling  or
24        maintenance of any  financial  records  by  any  officer,
25        employee  or  agent  of  a  bank  having  custody  of the
26        records, or the examination of the records by a certified
27        public accountant engaged  by  the  bank  to  perform  an
28        independent audit.
29             (2)  The examination of any financial records by, or
30        the  furnishing  of  financial  records by a bank to, any
31        officer, employee or agent of  (i)  the  Commissioner  of
 
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 1        Banks  and  Real Estate, (ii) after May 31, 1997, a state
 2        regulatory authority authorized to examine a branch of  a
 3        State   bank   located   in   another  state,  (iii)  the
 4        Comptroller of the Currency,  (iv)  the  Federal  Reserve
 5        Board,  or  (v) the Federal Deposit Insurance Corporation
 6        for use solely in  the  exercise  of  his  duties  as  an
 7        officer, employee, or agent.
 8             (3)  The   publication   of   data   furnished  from
 9        financial records relating to customers  where  the  data
10        cannot  be  identified  to  any  particular  customer  or
11        account.
12             (4)  The making of reports or returns required under
13        Chapter 61 of the Internal Revenue Code of 1986.
14             (5)  Furnishing  information concerning the dishonor
15        of any negotiable instrument permitted  to  be  disclosed
16        under the Uniform Commercial Code.
17             (6)  The  exchange in the regular course of business
18        of (i) credit information between a bank and other  banks
19        or  financial  institutions  or  commercial  enterprises,
20        directly  or  through a consumer reporting agency or (ii)
21        financial records or information derived  from  financial
22        records  between  a  bank  and  other  banks or financial
23        institutions or commercial enterprises for the purpose of
24        conducting due diligence pursuant to a purchase  or  sale
25        involving the bank or assets or liabilities of the bank.
26             (7)  The    furnishing   of   information   to   the
27        appropriate law enforcement authorities  where  the  bank
28        reasonably believes it has been the victim of a crime.
29             (8)  The furnishing of information under the Uniform
30        Disposition of Unclaimed Property Act.
31             (9)  The   furnishing   of   information  under  the
32        Illinois Income Tax  Act  and  the  Illinois  Estate  and
33        Generation-Skipping Transfer Tax Act.
34             (10)  The   furnishing   of  information  under  the
 
                            -3-      LRB093 10178 JLS 10432 b
 1        federal Currency and Foreign Transactions  Reporting  Act
 2        Title 31, United States Code, Section 1051 et seq.
 3             (11)  The  furnishing of information under any other
 4        statute that by its terms or by  regulations  promulgated
 5        thereunder  requires  the disclosure of financial records
 6        other than by subpoena, summons, warrant, or court order.
 7             (12)  The  furnishing  of  information   about   the
 8        existence  of  an  account  of  a  person  to  a judgment
 9        creditor of that person who has made  a  written  request
10        for that information.
11             (13)  The exchange in the regular course of business
12        of information between commonly owned banks in connection
13        with  a  transaction  authorized  under paragraph (23) of
14        Section 5 and conducted at an affiliate facility.
15             (14)  The furnishing of  information  in  accordance
16        with   the   federal  Personal  Responsibility  and  Work
17        Opportunity Reconciliation Act of 1996. Any bank governed
18        by this Act  shall  enter  into  an  agreement  for  data
19        exchanges  with  a State agency provided the State agency
20        pays to the bank a  reasonable  fee  not  to  exceed  its
21        actual  cost  incurred.   A bank providing information in
22        accordance with this item shall  not  be  liable  to  any
23        account  holder  or  other  person  for any disclosure of
24        information  to  a  State  agency,  for  encumbering   or
25        surrendering any assets held by the bank in response to a
26        lien  or  order to withhold and deliver issued by a State
27        agency, or for any other action taken  pursuant  to  this
28        item, including individual or mechanical errors, provided
29        the  action  does  not  constitute  gross  negligence  or
30        willful  misconduct.  A  bank shall have no obligation to
31        hold, encumber, or surrender assets  until  it  has  been
32        served  with  a  subpoena,  summons,  warrant,  court  or
33        administrative order, lien, or levy.
34             (15)  The exchange in the regular course of business
 
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 1        of  information  between  a  bank  and any commonly owned
 2        affiliate of the bank, subject to the provisions  of  the
 3        Financial Institutions Insurance Sales Law.
 4             (16)  The   furnishing   of   information   to   law
 5        enforcement authorities, the Illinois Department on Aging
 6        and  its  regional  administrative and provider agencies,
 7        the Department of  Human  Services  Office  of  Inspector
 8        General, or public guardians, if the bank suspects that a
 9        customer who is an elderly or disabled person has been or
10        may  become the victim of financial exploitation. For the
11        purposes of  this  item  (16),  the  term:  (i)  "elderly
12        person"  means  a  person who is 60 or more years of age,
13        (ii)  "disabled  person"  means  a  person  who  has   or
14        reasonably  appears  to  the  bank  to have a physical or
15        mental disability that impairs his or her ability to seek
16        or  obtain   protection   from   or   prevent   financial
17        exploitation,  and  (iii)  "financial exploitation" means
18        tortious or illegal use of the assets or resources of  an
19        elderly   or   disabled  person,  and  includes,  without
20        limitation, misappropriation of the elderly  or  disabled
21        person's  assets  or resources by undue influence, breach
22        of   fiduciary   relationship,    intimidation,    fraud,
23        deception,  extortion,  or the use of assets or resources
24        in  any  manner  contrary  to  law.  A  bank  or   person
25        furnishing  information  pursuant to this item (16) shall
26        be entitled to the  same  rights  and  protections  as  a
27        person  furnishing  information under the Elder Abuse and
28        Neglect Act and the Illinois  Domestic  Violence  Act  of
29        1986.
30             (17)  The   disclosure   of   financial  records  or
31        information  as  necessary  to  effect,  administer,   or
32        enforce  a  transaction  requested  or  authorized by the
33        customer, or in connection with:
34                  (A)  servicing  or   processing   a   financial
 
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 1             product  or  service  requested or authorized by the
 2             customer;
 3                  (B)  maintaining  or  servicing  a   customer's
 4             account with the bank; or
 5                  (C)  a  proposed  or  actual  securitization or
 6             secondary market sale (including sales of  servicing
 7             rights) related to a transaction of a customer.
 8             Nothing  in  this item (17), however, authorizes the
 9        sale  of  the  financial  records  or  information  of  a
10        customer without the consent of the customer.
11             (18)  The  disclosure  of   financial   records   or
12        information  as  necessary  to  protect against actual or
13        potential fraud, unauthorized  transactions,  claims,  or
14        other liability.
15             (19) (a) The  disclosure  of  financial  records  or
16        information  related  to  a  private label credit program
17        between a financial institution and a private label party
18        in connection with that  private  label  credit  program.
19        Such  information  is  limited  to  outstanding  balance,
20        available  credit,  payment  and  performance and account
21        history, product references,  purchase  information,  and
22        information related to the identity of the customer.
23             (b) (l)  For  purposes  of  this  paragraph  (19) of
24        subsection (b) of Section 48.1, a "private  label  credit
25        program"  means  a  credit  program involving a financial
26        institution and a private label party that is used  by  a
27        customer  of  the  financial  institution and the private
28        label party primarily for payment for goods  or  services
29        sold,  manufactured,  or  distributed  by a private label
30        party.
31             (2)  For  purposes  of  this   paragraph   (19)   of
32        subsection  (b)  of Section 48.l, a "private label party"
33        means, with respect to a private  label  credit  program,
34        any   of   the  following:  a  retailer,  a  merchant,  a
 
                            -6-      LRB093 10178 JLS 10432 b
 1        manufacturer,  a  trade  group,  or  any  such   person's
 2        affiliate,   subsidiary,   member,   agent,   or  service
 3        provider.
 4             (20)  The  disclosure  of   financial   records   or
 5        information to the extent authorized under Title V of the
 6        Gramm-Leach-Bliley Act, 15 U.S.C. 6801 et seq.
 7        (c)  Except as otherwise provided by this Act, a bank may
 8    not  disclose  to  any  person, except to the customer or his
 9    duly authorized agent, any  financial  records  or  financial
10    information  obtained from financial records relating to that
11    customer of that bank unless:
12             (1)  the customer has authorized disclosure  to  the
13        person;
14             (2)  the financial records are disclosed in response
15        to  a  lawful  subpoena,  summons, warrant or court order
16        which meets the requirements of subsection  (d)  of  this
17        Section; or
18             (3)  the bank is attempting to collect an obligation
19        owed   to  the  bank  and  the  bank  complies  with  the
20        provisions of  Section  2I  of  the  Consumer  Fraud  and
21        Deceptive Business Practices Act.
22        (d)  A   bank  shall  disclose  financial  records  under
23    paragraph (2) of subsection  (c)  of  this  Section  under  a
24    lawful  subpoena, summons, warrant, or court order only after
25    the bank mails a copy of the subpoena, summons,  warrant,  or
26    court  order to the person establishing the relationship with
27    the  bank,   if   living,   and,   otherwise   his   personal
28    representative,  if known, at his last known address by first
29    class mail, postage prepaid, unless the bank is  specifically
30    prohibited  from notifying the person by order of court or by
31    applicable State or federal law.  A bank  shall  not  mail  a
32    copy  of a subpoena to any person pursuant to this subsection
33    if the  subpoena  was  issued  by  a  grand  jury  under  the
34    Statewide Grand Jury Act.
 
                            -7-      LRB093 10178 JLS 10432 b
 1        (e)  Any  officer or employee of a bank who knowingly and
 2    willfully furnishes financial records in  violation  of  this
 3    Section is guilty of a business offense and, upon conviction,
 4    shall be fined not more than $1,000.
 5        (f)  Any  person  who  knowingly and willfully induces or
 6    attempts to induce any officer  or  employee  of  a  bank  to
 7    disclose  financial  records  in violation of this Section is
 8    guilty of a business offense and, upon conviction,  shall  be
 9    fined not more than $1,000.
10        (g)  A  bank  shall  be  reimbursed  for  costs  that are
11    reasonably necessary and that have been directly incurred  in
12    searching  for,  reproducing,  or transporting books, papers,
13    records, or other data of a customer required or requested to
14    be produced pursuant to a lawful subpoena, summons,  warrant,
15    or  court  order.  The Commissioner shall determine the rates
16    and conditions under which payment may be made.
17    (Source: P.A. 91-330, eff. 7-29-99;  91-929,  eff.  12-15-00;
18    92-483, eff. 8-23-01; 92-543, eff. 6-12-02.)

19        Section 10.  The Illinois Savings and Loan Act of 1985 is
20    amended by changing Section 3-8 as follows:

21        (205 ILCS 105/3-8) (from Ch. 17, par. 3303-8)
22        Sec.  3-8.   Access  to  books and records; communication
23    with members.
24        (a)  Every member or holder of  capital  shall  have  the
25    right  to  inspect  the  books and records of the association
26    that  pertain  to  his  account.  Otherwise,  the  right   of
27    inspection  and examination of the books and records shall be
28    limited as provided in this Act, and no  other  person  shall
29    have  access to the books and records or shall be entitled to
30    a list of the members.
31        (b)  For the purpose of this Section, the term "financial
32    records" means any original, any copy, or any summary of  (i)
 
                            -8-      LRB093 10178 JLS 10432 b
 1    a  document  granting  signature  authority over a deposit or
 2    account; (ii) a statement, ledger card, or  other  record  on
 3    any deposit or account that shows each transaction in or with
 4    respect to that account; (iii) a check, draft, or money order
 5    drawn   on  an  association  or  issued  and  payable  by  an
 6    association; or (iv) any other  item  containing  information
 7    pertaining  to  any  relationship established in the ordinary
 8    course of an association's business  between  an  association
 9    and  its  customer,  including  financial statements or other
10    financial information provided by the  member  or  holder  of
11    capital.
12        (c)  This Section does not prohibit:
13             (1)  The   preparation,  examination,  handling,  or
14        maintenance of any  financial  records  by  any  officer,
15        employee,  or  agent  of an association having custody of
16        those records or the examination of those  records  by  a
17        certified public accountant engaged by the association to
18        perform an independent audit.
19             (2)  The examination of any financial records by, or
20        the furnishing of financial records by an association to,
21        any  officer,  employee,  or agent of the Commissioner of
22        Banks and Real Estate, Federal Savings and Loan Insurance
23        Corporation and its successors, Federal Deposit Insurance
24        Corporation,  Resolution  Trust   Corporation   and   its
25        successors,   Federal   Home  Loan  Bank  Board  and  its
26        successors, Office of Thrift Supervision, Federal Housing
27        Finance Board, Board of Governors of the Federal  Reserve
28        System,  any  Federal  Reserve Bank, or the Office of the
29        Comptroller  of  the  Currency  for  use  solely  in  the
30        exercise of his duties as an officer, employee, or agent.
31             (3)  The  publication   of   data   furnished   from
32        financial  records  relating  to  members  or  holders of
33        capital where  the  data  cannot  be  identified  to  any
34        particular member, holder of capital, or account.
 
                            -9-      LRB093 10178 JLS 10432 b
 1             (4)  The making of reports or returns required under
 2        Chapter 61 of the Internal Revenue Code of 1986.
 3             (5)  Furnishing  information concerning the dishonor
 4        of any negotiable instrument permitted  to  be  disclosed
 5        under the Uniform Commercial Code.
 6             (6)  The  exchange in the regular course of business
 7        of (i) credit  information  between  an  association  and
 8        other   associations   or   financial   institutions   or
 9        commercial  enterprises,  directly  or through a consumer
10        reporting agency or (ii) financial records or information
11        derived from financial records between an association and
12        other   associations   or   financial   institutions   or
13        commercial enterprises for the purpose of conducting  due
14        diligence  pursuant  to  a purchase or sale involving the
15        association or assets or liabilities of the association.
16             (7)  The   furnishing   of   information   to    the
17        appropriate   law   enforcement   authorities  where  the
18        association reasonably believes it has been the victim of
19        a crime.
20             (8)  The furnishing of information pursuant  to  the
21        Uniform Disposition of Unclaimed Property Act.
22             (9)  The  furnishing  of information pursuant to the
23        Illinois Income Tax  Act  and  the  Illinois  Estate  and
24        Generation-Skipping Transfer Tax Act.
25             (10)  The  furnishing of information pursuant to the
26        federal  "Currency  and  Foreign  Transactions  Reporting
27        Act", (Title 31, United  States  Code,  Section  1051  et
28        seq.).
29             (11)  The  furnishing of information pursuant to any
30        other  statute  that  by  its  terms  or  by  regulations
31        promulgated  thereunder  requires   the   disclosure   of
32        financial   records  other  than  by  subpoena,  summons,
33        warrant, or court order.
34             (12)  The  exchange  of   information   between   an
 
                            -10-     LRB093 10178 JLS 10432 b
 1        association  and an affiliate of the association; as used
 2        in  this  item,   "affiliate"   includes   any   company,
 3        partnership, or organization that controls, is controlled
 4        by, or is under common control with an association.
 5             (13)  The  furnishing  of  information in accordance
 6        with  the  federal  Personal  Responsibility   and   Work
 7        Opportunity  Reconciliation Act of 1996.  Any association
 8        governed by this Act shall enter into  an  agreement  for
 9        data  exchanges  with  a  State agency provided the State
10        agency pays to the association a reasonable  fee  not  to
11        exceed   its   actual   cost  incurred.   An  association
12        providing information in accordance with this item  shall
13        not  be  liable to any account holder or other person for
14        any disclosure of information  to  a  State  agency,  for
15        encumbering  or  surrendering  any  assets  held  by  the
16        association  in  response  to a lien or order to withhold
17        and deliver issued by a State agency, or  for  any  other
18        action  taken pursuant to this item, including individual
19        or  mechanical  errors,  provided  the  action  does  not
20        constitute gross negligence  or  willful  misconduct.  An
21        association  shall  have no obligation to hold, encumber,
22        or surrender assets until  it  has  been  served  with  a
23        subpoena,   summons,  warrant,  court  or  administrative
24        order, lien, or levy.
25             (14)  The   furnishing   of   information   to   law
26        enforcement authorities, the Illinois Department on Aging
27        and its regional administrative  and  provider  agencies,
28        the  Department  of  Human  Services  Office of Inspector
29        General, or public guardians, if the association suspects
30        that a customer who is an elderly or disabled person  has
31        been  or may become the victim of financial exploitation.
32        For the  purposes  of  this  item  (14),  the  term:  (i)
33        "elderly  person"  means a person who is 60 or more years
34        of age, (ii) "disabled person" means a person who has  or
 
                            -11-     LRB093 10178 JLS 10432 b
 1        reasonably  appears to the association to have a physical
 2        or mental disability that impairs his or her  ability  to
 3        seek  or  obtain  protection  from  or  prevent financial
 4        exploitation, and (iii)  "financial  exploitation"  means
 5        tortious  or illegal use of the assets or resources of an
 6        elderly  or  disabled  person,  and   includes,   without
 7        limitation,  misappropriation  of the elderly or disabled
 8        person's assets or resources by undue  influence,  breach
 9        of    fiduciary    relationship,   intimidation,   fraud,
10        deception, extortion, or the use of assets  or  resources
11        in  any  manner contrary to law. An association or person
12        furnishing information pursuant to this item  (14)  shall
13        be  entitled  to  the  same  rights  and protections as a
14        person furnishing information under the Elder  Abuse  and
15        Neglect  Act  and  the  Illinois Domestic Violence Act of
16        1986.
17             (15)  The  disclosure  of   financial   records   or
18        information   as  necessary  to  effect,  administer,  or
19        enforce a transaction  requested  or  authorized  by  the
20        member or holder of capital, or in connection with:
21                  (A)  servicing   or   processing   a  financial
22             product or service requested or  authorized  by  the
23             member or holder of capital;
24                  (B)  maintaining  or  servicing an account of a
25             member or holder of capital with the association; or
26                  (C)  a proposed  or  actual  securitization  or
27             secondary  market sale (including sales of servicing
28             rights) related to a  transaction  of  a  member  or
29             holder of capital.
30             Nothing  in  this item (15), however, authorizes the
31        sale of the financial records or information of a  member
32        or holder of capital without the consent of the member or
33        holder of capital.
34             (16)  The   disclosure   of   financial  records  or
 
                            -12-     LRB093 10178 JLS 10432 b
 1        information as necessary to protect  against  or  prevent
 2        actual  or  potential  fraud,  unauthorized transactions,
 3        claims, or other liability.
 4             (17) (a)  The disclosure  of  financial  records  or
 5        information  related  to  a  private label credit program
 6        between a financial institution and a private label party
 7        in connection with that  private  label  credit  program.
 8        Such  information  is  limited  to  outstanding  balance,
 9        available  credit,  payment  and  performance and account
10        history, product references,  purchase  information,  and
11        information related to the identity of the customer.
12             (b) (l)  For  purposes  of  this  paragraph  (17) of
13        subsection (c) of Section 3-8, a  "private  label  credit
14        program"  means  a  credit  program involving a financial
15        institution and a private label party that is used  by  a
16        customer  of  the  financial  institution and the private
17        label party primarily for payment for goods  or  services
18        sold,  manufactured,  or  distributed  by a private label
19        party.
20             (2)  For  purposes  of  this   paragraph   (17)   of
21        subsection  (c)  of  Section 3-8, a "private label party"
22        means, with respect to a private  label  credit  program,
23        any   of   the  following:  a  retailer,  a  merchant,  a
24        manufacturer,  a  trade  group,  or  any  such   person's
25        affiliate,   subsidiary,   member,   agent,   or  service
26        provider.
27             (18)  The  disclosure  of   financial   records   or
28        information to the extent authorized under Title V of the
29        Gramm-Leach-Bliley Act, 15 U.S.C. 6801 et seq.
30        (d)  An  association  may  not  disclose  to  any person,
31    except to the  member  or  holder  of  capital  or  his  duly
32    authorized  agent,  any  financial  records  relating to that
33    member or holder of capital of that association unless:
34             (1)  The member or holder of capital has  authorized
 
                            -13-     LRB093 10178 JLS 10432 b
 1        disclosure to the person; or
 2             (2)  The financial records are disclosed in response
 3        to  a  lawful  subpoena, summons, warrant, or court order
 4        that meets the requirements of  subsection  (e)  of  this
 5        Section.
 6        (e)  An  association  shall  disclose  financial  records
 7    under  subsection  (d)  of  this Section pursuant to a lawful
 8    subpoena, summons, warrant, or court  order  only  after  the
 9    association  mails  a copy of the subpoena, summons, warrant,
10    or court order to the person  establishing  the  relationship
11    with the association, if living, and, otherwise, his personal
12    representative,  if known, at his last known address by first
13    class  mail,  postage  prepaid,  unless  the  association  is
14    specifically prohibited from notifying that person  by  order
15    of court.
16        (f) (1)  Any  officer  or  employee of an association who
17    knowingly  and  willfully  furnishes  financial  records   in
18    violation  of  this  Section  is guilty of a business offense
19    and, upon conviction, shall be fined not more than $1,000.
20        (2)  Any person who knowingly and  willfully  induces  or
21    attempts  to induce any officer or employee of an association
22    to disclose financial records in violation of this Section is
23    guilty of a business offense and, upon conviction,  shall  be
24    fined not more than $1,000.
25        (g)  However,  if  any member desires to communicate with
26    the other members of the association with  reference  to  any
27    question  pending  or  to  be  presented  at a meeting of the
28    members, the  association  shall  give  him  upon  request  a
29    statement  of  the  approximate number of members entitled to
30    vote at the meeting and an estimate of the cost of  preparing
31    and  mailing  the  communication.  The requesting member then
32    shall submit the communication to the Commissioner who, if he
33    finds it to be appropriate and truthful, shall direct that it
34    be prepared and mailed to the  members  upon  the  requesting
 
                            -14-     LRB093 10178 JLS 10432 b
 1    member's  payment  or  adequate  provision for payment of the
 2    expenses of preparation and mailing.
 3        (h)  An association shall be reimbursed  for  costs  that
 4    are  necessary  and  that  have  been  directly  incurred  in
 5    searching  for,  reproducing,  or transporting books, papers,
 6    records,  or  other  data  of  a  customer  required  to   be
 7    reproduced  pursuant  to a lawful subpoena, warrant, or court
 8    order.
 9    (Source: P.A. 91-929, eff. 12-15-00;  92-483,  eff.  8-23-01;
10    92-543, eff. 6-12-02.)

11        Section  15.  The Savings Bank Act is amended by changing
12    Section 4013 as follows:

13        (205 ILCS 205/4013) (from Ch. 17, par. 7304-13)
14        Sec. 4013.  Access to books  and  records;  communication
15    with members and shareholders.
16        (a)  Every  member or shareholder shall have the right to
17    inspect books and records of the savings bank that pertain to
18    his  accounts.   Otherwise,  the  right  of  inspection   and
19    examination  of  the  books  and  records shall be limited as
20    provided in this Act, and no other person shall  have  access
21    to  the  books and records nor shall be entitled to a list of
22    the members or shareholders.
23        (b)  For the purpose of this Section, the term "financial
24    records" means any original, any copy, or any summary of  (1)
25    a  document  granting  signature  authority over a deposit or
26    account; (2) a statement, ledger card, or other record on any
27    deposit or account that shows each  transaction  in  or  with
28    respect  to  that account; (3) a check, draft, or money order
29    drawn on a savings bank or issued and payable  by  a  savings
30    bank; or (4) any other item containing information pertaining
31    to  any  relationship established in the ordinary course of a
32    savings bank's  business  between  a  savings  bank  and  its
 
                            -15-     LRB093 10178 JLS 10432 b
 1    customer,  including  financial statements or other financial
 2    information provided by the member or shareholder.
 3        (c)  This Section does not prohibit:
 4             (1)  The  preparation  examination,   handling,   or
 5        maintenance  of  any  financial   records by any officer,
 6        employee, or agent of a savings bank  having  custody  of
 7        records  or  examination of records by a certified public
 8        accountant engaged by the  savings  bank  to  perform  an
 9        independent audit.
10             (2)  The examination of any financial records by, or
11        the furnishing of financial records by a savings bank to,
12        any  officer,  employee,  or agent of the Commissioner of
13        Banks and Real Estate or the  Federal  Deposit  Insurance
14        Corporation  for use solely in the exercise of his duties
15        as an officer, employee, or agent.
16             (3)  The  publication   of   data   furnished   from
17        financial  records  relating  to  members  or  holders of
18        capital where  the  data  cannot  be  identified  to  any
19        particular member, shareholder, or account.
20             (4)  The making of reports or returns required under
21        Chapter 61 of the Internal Revenue Code of 1986.
22             (5)  Furnishing  information concerning the dishonor
23        of any negotiable instrument permitted  to  be  disclosed
24        under the Uniform Commercial Code.
25             (6)  The  exchange in the regular course of business
26        of (i) credit information  between  a  savings  bank  and
27        other   savings   banks   or  financial  institutions  or
28        commercial enterprises, directly or  through  a  consumer
29        reporting agency or (ii) financial records or information
30        derived from financial records between a savings bank and
31        other   savings   banks   or  financial  institutions  or
32        commercial enterprises for the purpose of conducting  due
33        diligence  pursuant  to  a purchase or sale involving the
34        savings bank or assets  or  liabilities  of  the  savings
 
                            -16-     LRB093 10178 JLS 10432 b
 1        bank.
 2             (7)  The    furnishing   of   information   to   the
 3        appropriate law enforcement authorities where the savings
 4        bank reasonably believes it has  been  the  victim  of  a
 5        crime.
 6             (8)  The  furnishing  of information pursuant to the
 7        Uniform Disposition of Unclaimed Property Act.
 8             (9)  The furnishing of information pursuant  to  the
 9        Illinois  Income  Tax  Act  and  the  Illinois Estate and
10        Generation-Skipping Transfer Tax Act.
11             (10)  The furnishing of information pursuant to  the
12        federal  "Currency  and  Foreign  Transactions  Reporting
13        Act",  (Title  31,  United  States  Code, Section 1051 et
14        seq.).
15             (11)  The furnishing of information pursuant to  any
16        other  statute  which  by  its  terms  or  by regulations
17        promulgated  thereunder  requires   the   disclosure   of
18        financial   records  other  than  by  subpoena,  summons,
19        warrant, or court order.
20             (12)  The furnishing of  information  in  accordance
21        with   the   federal  Personal  Responsibility  and  Work
22        Opportunity Reconciliation Act of 1996. Any savings  bank
23        governed  by  this  Act shall enter into an agreement for
24        data exchanges with a State  agency  provided  the  State
25        agency  pays  to the savings bank a reasonable fee not to
26        exceed  its  actual  cost  incurred.   A   savings   bank
27        providing  information in accordance with this item shall
28        not be liable to any account holder or other  person  for
29        any  disclosure  of  information  to  a State agency, for
30        encumbering  or  surrendering  any  assets  held  by  the
31        savings bank in response to a lien or order  to  withhold
32        and  deliver  issued  by a State agency, or for any other
33        action taken pursuant to this item, including  individual
34        or  mechanical  errors,  provided  the  action  does  not
 
                            -17-     LRB093 10178 JLS 10432 b
 1        constitute  gross  negligence  or  willful misconduct.  A
 2        savings bank shall have no obligation to hold,  encumber,
 3        or  surrender  assets  until  it  has  been served with a
 4        subpoena,  summons,  warrant,  court  or   administrative
 5        order, lien, or levy.
 6             (13)  The   furnishing   of   information   to   law
 7        enforcement authorities, the Illinois Department on Aging
 8        and  its  regional  administrative and provider agencies,
 9        the Department of  Human  Services  Office  of  Inspector
10        General,   or  public  guardians,  if  the  savings  bank
11        suspects that a customer who is an  elderly  or  disabled
12        person  has  been  or  may become the victim of financial
13        exploitation. For the purposes of  this  item  (13),  the
14        term:  (i)  "elderly  person" means a person who is 60 or
15        more years of age, (ii) "disabled person" means a  person
16        who has or reasonably appears to the savings bank to have
17        a  physical  or mental disability that impairs his or her
18        ability to seek or  obtain  protection  from  or  prevent
19        financial     exploitation,    and    (iii)    "financial
20        exploitation" means tortious or illegal use of the assets
21        or resources  of  an  elderly  or  disabled  person,  and
22        includes,  without  limitation,  misappropriation  of the
23        elderly or disabled person's assets or resources by undue
24        influence,    breach    of    fiduciary     relationship,
25        intimidation,  fraud, deception, extortion, or the use of
26        assets or resources in any  manner  contrary  to  law.  A
27        savings bank or person furnishing information pursuant to
28        this  item  (13) shall be entitled to the same rights and
29        protections as a person furnishing information under  the
30        Elder  Abuse  and  Neglect  Act and the Illinois Domestic
31        Violence Act of 1986.
32             (14)  The  disclosure  of   financial   records   or
33        information   as  necessary  to  effect,  administer,  or
34        enforce a transaction  requested  or  authorized  by  the
 
                            -18-     LRB093 10178 JLS 10432 b
 1        member or holder of capital, or in connection with:
 2                  (A)  servicing   or   processing   a  financial
 3             product or service requested or  authorized  by  the
 4             member or holder of capital;
 5                  (B)  maintaining  or  servicing an account of a
 6             member or holder of capital with the  savings  bank;
 7             or
 8                  (C)  a  proposed  or  actual  securitization or
 9             secondary market sale (including sales of  servicing
10             rights)  related  to  a  transaction  of a member or
11             holder of capital.
12             Nothing in this item (14), however,  authorizes  the
13        sale  of the financial records or information of a member
14        or holder of capital without the consent of the member or
15        holder of capital.
16             (15)  The exchange in the regular course of business
17        of information between a savings bank  and  any  commonly
18        owned  affiliate  of  the  savings  bank,  subject to the
19        provisions of the Financial Institutions Insurance  Sales
20        Law.
21             (16)  The   disclosure   of   financial  records  or
22        information as necessary to protect  against  or  prevent
23        actual  or  potential  fraud,  unauthorized transactions,
24        claims, or other liability.
25             (17) (a)  The disclosure  of  financial  records  or
26        information  related  to  a  private label credit program
27        between a financial institution and a private label party
28        in connection with that  private  label  credit  program.
29        Such  information  is  limited  to  outstanding  balance,
30        available  credit,  payment  and  performance and account
31        history, product references,  purchase  information,  and
32        information related to the identity of the customer.
33             (b) (l)  For  purposes  of  this  paragraph  (17) of
34        subsection (c) of Section 4013, a "private  label  credit
 
                            -19-     LRB093 10178 JLS 10432 b
 1        program"  means  a  credit  program involving a financial
 2        institution and a private label party that is used  by  a
 3        customer  of  the  financial  institution and the private
 4        label party primarily for payment for goods  or  services
 5        sold,  manufactured,  or  distributed  by a private label
 6        party.
 7             (2)  For  purposes  of  this   paragraph   (17)   of
 8        subsection  (c)  of Section 4013, a "private label party"
 9        means, with respect to a private  label  credit  program,
10        any   of   the  following:  a  retailer,  a  merchant,  a
11        manufacturer,  a  trade  group,  or  any  such   person's
12        affiliate,   subsidiary,   member,   agent,   or  service
13        provider.
14             (18)  The  disclosure  of   financial   records   or
15        information to the extent authorized under Title V of the
16        Gramm-Leach-Bliley Act, 15 U.S.C. 6801 et seq.
17        (d)  A  savings  bank  may  not  disclose  to any person,
18    except to the  member  or  holder  of  capital  or  his  duly
19    authorized  agent,  any  financial  records  relating to that
20    member or shareholder of the savings bank unless:
21             (1)  the  member  or  shareholder   has   authorized
22        disclosure to the person; or
23             (2)  the financial records are disclosed in response
24        to  a  lawful  subpoena, summons, warrant, or court order
25        that meets the requirements of  subsection  (e)  of  this
26        Section.
27        (e)  A  savings  bank  shall  disclose  financial records
28    under subsection (d) of this Section  pursuant  to  a  lawful
29    subpoena,  summons,  warrant,  or  court order only after the
30    savings bank mails a copy of the subpoena, summons,  warrant,
31    or  court  order  to the person establishing the relationship
32    with the savings bank, if living, and otherwise, his personal
33    representative, if known, at his last known address by  first
34    class  mail,  postage  prepaid,  unless  the  savings bank is
 
                            -20-     LRB093 10178 JLS 10432 b
 1    specifically prohibited from notifying the person by order of
 2    court.
 3        (f)  Any officer  or  employee  of  a  savings  bank  who
 4    knowingly   and  willfully  furnishes  financial  records  in
 5    violation of this Section is guilty  of  a  business  offense
 6    and, upon conviction, shall be fined not more than $1,000.
 7        (g)  Any  person  who  knowingly and willfully induces or
 8    attempts to induce any officer or employee of a savings  bank
 9    to disclose financial records in violation of this Section is
10    guilty  of  a business offense and, upon conviction, shall be
11    fined not more than $1,000.
12        (h)  If any member or shareholder desires to  communicate
13    with  the  other  members or shareholders of the savings bank
14    with reference to any question pending or to be presented  at
15    an  annual  or  special  meeting, the savings bank shall give
16    that person, upon request, a  statement  of  the  approximate
17    number  of  members  or  shareholders entitled to vote at the
18    meeting and an estimate of the cost of preparing and  mailing
19    the  communication.   The  requesting member shall submit the
20    communication to the Commissioner who, upon finding it to  be
21    appropriate  and  truthful,  shall direct that it be prepared
22    and mailed to the members upon  the  requesting  member's  or
23    shareholder's  payment  or  adequate provision for payment of
24    the expenses of preparation and mailing.
25        (i)  A savings bank shall be reimbursed  for  costs  that
26    are  necessary  and  that  have  been  directly  incurred  in
27    searching  for,  reproducing,  or transporting books, papers,
28    records,  or  other  data  of  a  customer  required  to   be
29    reproduced  pursuant  to a lawful subpoena, warrant, or court
30    order.
31        (j)  Notwithstanding the provisions of  this  Section,  a
32    savings  bank  may  sell  or  otherwise  make use of lists of
33    customers'  names  and  addresses.   All  other   information
34    regarding  a customer's account are subject to the disclosure
 
                            -21-     LRB093 10178 JLS 10432 b
 1    provisions of this Section.  At the request of any  customer,
 2    that  customer's  name  and address shall be deleted from any
 3    list that is to be sold or used in any  other  manner  beyond
 4    identification of the customer's accounts.
 5    (Source:  P.A.  91-929,  eff. 12-15-00; 92-483, eff. 8-23-01;
 6    92-543, eff. 6-12-02.)

 7        Section 20.  The Illinois Credit Union Act is amended  by
 8    changing Section 10 as follows:

 9        (205 ILCS 305/10) (from Ch. 17, par. 4411)
10        Sec. 10.  Credit union records; member financial records.
11        (1)  A  credit  union shall establish and maintain books,
12    records, accounting systems and procedures  which  accurately
13    reflect  its  operations  and  which enable the Department to
14    readily ascertain the true financial condition of the  credit
15    union and whether it is complying with this Act.
16        (2)  A  photostatic  or  photographic reproduction of any
17    credit union records  shall  be  admissible  as  evidence  of
18    transactions with the credit union.
19        (3) (a)  For  the  purpose  of  this  Section,  the  term
20        "financial  records" means any original, any copy, or any
21        summary of (1) a document  granting  signature  authority
22        over  an  account,  (2) a statement, ledger card or other
23        record on any account which shows each transaction in  or
24        with respect to that account, (3) a check, draft or money
25        order drawn on a financial institution or other entity or
26        issued  and payable by or through a financial institution
27        or  other  entity,  or  (4)  any  other  item  containing
28        information pertaining to any relationship established in
29        the ordinary course of business between  a  credit  union
30        and  its  member, including financial statements or other
31        financial information provided by the member.
32             (b)  This Section does not prohibit:
 
                            -22-     LRB093 10178 JLS 10432 b
 1                  (1)  The preparation, examination, handling  or
 2             maintenance of any financial records by any officer,
 3             employee  or  agent of a credit union having custody
 4             of such records, or the examination of such  records
 5             by  a  certified  public  accountant  engaged by the
 6             credit union to perform an independent audit.
 7                  (2)  The examination of any  financial  records
 8             by  or  the  furnishing  of  financial  records by a
 9             credit union to any officer, employee  or  agent  of
10             the    Department,   the   National   Credit   Union
11             Administration, Federal Reserve board or any insurer
12             of share accounts for use solely in the exercise  of
13             his duties as an officer, employee or agent.
14                  (3)  The  publication  of  data  furnished from
15             financial records relating to members where the data
16             cannot be identified to any particular  customer  of
17             account.
18                  (4)  The  making of reports or returns required
19             under Chapter 61 of the  Internal  Revenue  Code  of
20             1954.
21                  (5)  Furnishing   information   concerning  the
22             dishonor of any negotiable instrument  permitted  to
23             be disclosed under the Uniform Commercial Code.
24                  (6)  The  exchange  in  the  regular  course of
25             business of (i) credit information between a  credit
26             union   and   other   credit   unions  or  financial
27             institutions or commercial enterprises, directly  or
28             through   a   consumer   reporting  agency  or  (ii)
29             financial  records  or  information   derived   from
30             financial  records  between a credit union and other
31             credit   unions   or   financial   institutions   or
32             commercial enterprises for the purpose of conducting
33             due diligence pursuant to a merger or a purchase  or
34             sale of assets or liabilities of the credit union.
 
                            -23-     LRB093 10178 JLS 10432 b
 1                  (7)  The   furnishing  of  information  to  the
 2             appropriate law enforcement  authorities  where  the
 3             credit  union  reasonably  believes  it has been the
 4             victim of a crime.
 5                  (8)  The furnishing of information pursuant  to
 6             the Uniform Disposition of Unclaimed Property Act.
 7                  (9)  The  furnishing of information pursuant to
 8             the Illinois Income Tax Act and the Illinois  Estate
 9             and Generation-Skipping Transfer Tax Act.
10                  (10)  The furnishing of information pursuant to
11             the   federal  "Currency  and  Foreign  Transactions
12             Reporting  Act",  Title  31,  United  States   Code,
13             Section 1051 et sequentia.
14                  (11)  The furnishing of information pursuant to
15             any   other   statute  which  by  its  terms  or  by
16             regulations  promulgated  thereunder  requires   the
17             disclosure   of  financial  records  other  than  by
18             subpoena, summons, warrant or court order.
19                  (12)  The   furnishing   of   information    in
20             accordance  with the federal Personal Responsibility
21             and Work Opportunity Reconciliation Act of 1996. Any
22             credit union governed by this Act shall  enter  into
23             an  agreement for data exchanges with a State agency
24             provided the State agency pays to the credit union a
25             reasonable  fee  not  to  exceed  its  actual   cost
26             incurred.   A  credit union providing information in
27             accordance with this item shall not be liable to any
28             account holder or other person for any disclosure of
29             information to a State agency,  for  encumbering  or
30             surrendering  any assets held by the credit union in
31             response to a lien or order to withhold and  deliver
32             issued  by  a  State agency, or for any other action
33             taken pursuant to this item, including individual or
34             mechanical errors,  provided  the  action  does  not
 
                            -24-     LRB093 10178 JLS 10432 b
 1             constitute gross negligence or willful misconduct. A
 2             credit  union  shall  have  no  obligation  to hold,
 3             encumber, or surrender  assets  until  it  has  been
 4             served  with  a subpoena, summons, warrant, court or
 5             administrative order, lien, or levy.
 6                  (13)  The  furnishing  of  information  to  law
 7             enforcement authorities, the Illinois Department  on
 8             Aging  and  its regional administrative and provider
 9             agencies, the Department of Human Services Office of
10             Inspector  General,  or  public  guardians,  if  the
11             credit union  suspects  that  a  member  who  is  an
12             elderly  or  disabled  person has been or may become
13             the  victim  of  financial  exploitation.  For   the
14             purposes  of  this item (13), the term: (i) "elderly
15             person" means a person who is 60 or  more  years  of
16             age,  (ii)  "disabled person" means a person who has
17             or reasonably appears to the credit union to have  a
18             physical  or  mental  disability that impairs his or
19             her ability to seek or  obtain  protection  from  or
20             prevent financial exploitation, and (iii) "financial
21             exploitation"  means  tortious or illegal use of the
22             assets  or  resources  of  an  elderly  or  disabled
23             person,   and    includes,    without    limitation,
24             misappropriation of the elderly or disabled person's
25             assets  or  resources  by undue influence, breach of
26             fiduciary   relationship,    intimidation,    fraud,
27             deception,  extortion,  or  the  use  of  assets  or
28             resources  in  any  manner contrary to law. A credit
29             union or person furnishing information  pursuant  to
30             this  item (13) shall be entitled to the same rights
31             and protections as a person  furnishing  information
32             under  the  Elder  Abuse  and  Neglect  Act  and the
33             Illinois Domestic Violence Act of 1986.
34                  (14)  The disclosure of  financial  records  or
 
                            -25-     LRB093 10178 JLS 10432 b
 1             information  as  necessary to effect, administer, or
 2             enforce a transaction requested or authorized by the
 3             member, or in connection with:
 4                       (A)  servicing or processing  a  financial
 5                  product  or  service requested or authorized by
 6                  the member;
 7                       (B)  maintaining or servicing  a  member's
 8                  account with the credit union; or
 9                       (C)  a  proposed  or actual securitization
10                  or secondary market sale  (including  sales  of
11                  servicing rights) related to a transaction of a
12                  member.
13                  Nothing  in this item (14), however, authorizes
14             the sale of the financial records or information  of
15             a member without the consent of the member.
16                  (15)  The  disclosure  of  financial records or
17             information  as  necessary  to  protect  against  or
18             prevent  actual  or  potential  fraud,  unauthorized
19             transactions, claims, or other liability.
20                  (16) (a)  The disclosure of  financial  records
21             or  information  related  to  a private label credit
22             program  between  a  financial  institution  and   a
23             private  label party in connection with that private
24             label credit program. Such information is limited to
25             outstanding balance, available credit,  payment  and
26             performance and account history, product references,
27             purchase information, and information related to the
28             identity of the customer.
29                  (b) (l)  For purposes of this paragraph (16) of
30             subsection  (b)  of  Section  10,  a  "private label
31             credit program" means a credit program  involving  a
32             financial institution and a private label party that
33             is  used  by a customer of the financial institution
34             and the private label party  primarily  for  payment
 
                            -26-     LRB093 10178 JLS 10432 b
 1             for   goods   or  services  sold,  manufactured,  or
 2             distributed by a private label party.
 3                  (2)  For purposes of  this  paragraph  (16)  of
 4             subsection  (b)  of  Section  10,  a  "private label
 5             party" means, with respect to a private label credit
 6             program,  any  of  the  following:  a  retailer,   a
 7             merchant, a manufacturer, a trade group, or any such
 8             person's  affiliate,  subsidiary,  member, agent, or
 9             service provider.
10             (17)  The  disclosure  of   financial   records   or
11        information to the extent authorized under Title V of the
12        Gramm-Leach-Bliley Act, 15 U.S.C. 6801 et seq.
13             (c)  Except  as  otherwise  provided  by this Act, a
14        credit union may not disclose to any  person,  except  to
15        the  member  or  his duly authorized agent, any financial
16        records relating to  that  member  of  the  credit  union
17        unless:
18                  (1)  the  member  has  authorized disclosure to
19             the person;
20                  (2)  the financial  records  are  disclosed  in
21             response  to  a lawful subpoena, summons, warrant or
22             court  order  that   meets   the   requirements   of
23             subparagraph (d) of this Section; or
24                  (3)  the  credit union is attempting to collect
25             an obligation owed  to  the  credit  union  and  the
26             credit union complies with the provisions of Section
27             2I  of  the  Consumer  Fraud  and Deceptive Business
28             Practices Act.
29             (d)  A credit union shall disclose financial records
30        under subparagraph (c)(2) of this Section pursuant  to  a
31        lawful  subpoena,  summons,  warrant  or court order only
32        after the credit union mails  a  copy  of  the  subpoena,
33        summons,   warrant   or   court   order   to  the  person
34        establishing the relationship with the credit  union,  if
 
                            -27-     LRB093 10178 JLS 10432 b
 1        living,  and  otherwise  his  personal representative, if
 2        known, at his last known address  by  first  class  mail,
 3        postage  prepaid  unless the credit union is specifically
 4        prohibited from notifying the person by order of court or
 5        by applicable State or federal law.  In  the  case  of  a
 6        grand jury subpoena, a credit union shall not mail a copy
 7        of  a  subpoena to any person pursuant to this subsection
 8        if the subpoena was issued by  a  grand  jury  under  the
 9        Statewide  Grand  Jury  Act or notifying the person would
10        constitute a violation of the federal Right to  Financial
11        Privacy Act of 1978.
12             (e) (1)  Any  officer  or employee of a credit union
13             who  knowingly  and  wilfully  furnishes   financial
14             records  in violation of this Section is guilty of a
15             business offense and upon conviction  thereof  shall
16             be fined not more than $1,000.
17                  (2)  Any  person  who  knowingly  and  wilfully
18             induces   or  attempts  to  induce  any  officer  or
19             employee of a credit  union  to  disclose  financial
20             records  in violation of this Section is guilty of a
21             business offense and upon conviction  thereof  shall
22             be fined not more than $1,000.
23             (f)  A  credit  union  shall be reimbursed for costs
24        which  are  reasonably  necessary  and  which  have  been
25        directly  incurred  in  searching  for,  reproducing   or
26        transporting  books,  papers,  records or other data of a
27        member required or requested to be produced pursuant to a
28        lawful subpoena, summons, warrant or  court  order.   The
29        Director may determine, by rule, the rates and conditions
30        under which payment shall be made.  Delivery of requested
31        documents may be delayed until final reimbursement of all
32        costs is received.
33    (Source:  P.A.  91-929,  eff.  12-15-00; 92-293, eff. 8-9-01;
34    92-483, eff. 8-23-01; 92-543, eff. 6-12-02.)
 
                            -28-     LRB093 10178 JLS 10432 b
 1        Section 99.  Effective date.  This Act takes effect  upon
 2    becoming law.