Full Text of SB0229 95th General Assembly
SB0229enr 95TH GENERAL ASSEMBLY
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SB0229 Enrolled |
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LRB095 07909 AJO 28071 b |
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| AN ACT concerning civil law.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 2. The Illinois Banking Act is amended by changing | 5 |
| Section 48.1 as follows:
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| (205 ILCS 5/48.1) (from Ch. 17, par. 360)
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| Sec. 48.1. Customer financial records; confidentiality.
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| (a) For the purpose of this Section, the term "financial | 9 |
| records" means any
original, any copy, or any summary of:
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| (1) a document granting signature
authority over a | 11 |
| deposit or account;
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| (2) a statement, ledger card or other
record on any | 13 |
| deposit or account, which shows each transaction in or with
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| respect to that account;
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| (3) a check, draft or money order drawn on a bank
or | 16 |
| issued and payable by a bank; or
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| (4) any other item containing
information pertaining | 18 |
| to any relationship established in the ordinary
course of a | 19 |
| bank's business between a bank and its customer, including
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| financial statements or other financial information | 21 |
| provided by the customer.
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| (b) This Section does not prohibit:
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| (1) The preparation, examination, handling or |
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| maintenance of any
financial records by any officer, | 2 |
| employee or agent of a bank
having custody of the records, | 3 |
| or the examination of the records by a
certified public | 4 |
| accountant engaged by the bank to perform an independent
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| audit.
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| (2) The examination of any financial records by, or the | 7 |
| furnishing of
financial records by a bank to, any officer, | 8 |
| employee or agent of (i) the
Commissioner of Banks and Real | 9 |
| Estate, (ii) after May
31, 1997, a state regulatory | 10 |
| authority authorized to examine a branch of a
State bank | 11 |
| located in another state, (iii) the Comptroller of the | 12 |
| Currency,
(iv) the Federal Reserve Board, or (v) the | 13 |
| Federal Deposit Insurance
Corporation for use solely in the | 14 |
| exercise of his duties as an officer,
employee, or agent.
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| (3) The publication of data furnished from financial | 16 |
| records
relating to customers where the data cannot be | 17 |
| identified to any
particular customer or account.
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| (4) The making of reports or returns required under | 19 |
| Chapter 61 of
the Internal Revenue Code of 1986.
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| (5) Furnishing information concerning the dishonor of | 21 |
| any negotiable
instrument permitted to be disclosed under | 22 |
| the Uniform Commercial Code.
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| (6) The exchange in the regular course of business of | 24 |
| (i) credit
information
between a bank and other banks or | 25 |
| financial institutions or commercial
enterprises, directly | 26 |
| or through a consumer reporting agency or (ii)
financial |
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| records or information derived from financial records | 2 |
| between a bank
and other banks or financial institutions or | 3 |
| commercial enterprises for the
purpose of conducting due | 4 |
| diligence pursuant to a purchase or sale involving
the bank | 5 |
| or assets or liabilities of the bank.
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| (7) The furnishing of information to the appropriate | 7 |
| law enforcement
authorities where the bank reasonably | 8 |
| believes it has been the victim of a
crime.
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| (8) The furnishing of information under the Uniform | 10 |
| Disposition of
Unclaimed Property Act.
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| (9) The furnishing of information under the Illinois | 12 |
| Income Tax Act and
the Illinois Estate and | 13 |
| Generation-Skipping Transfer Tax Act.
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| (10) The furnishing of information under the federal | 15 |
| Currency
and Foreign Transactions Reporting Act Title 31, | 16 |
| United States
Code, Section 1051 et seq.
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| (11) The furnishing of information under any other | 18 |
| statute that
by its terms or by regulations promulgated | 19 |
| thereunder requires the disclosure
of financial records | 20 |
| other than by subpoena, summons, warrant, or court order.
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| (12) The furnishing of information about the existence | 22 |
| of an account
of a person to a judgment creditor of that | 23 |
| person who has made a written
request for that information.
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| (13) The exchange in the regular course of business of | 25 |
| information
between commonly owned banks in connection | 26 |
| with a transaction authorized
under paragraph (23) of
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| Section 5 and conducted at an affiliate facility.
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| (14) The furnishing of information in accordance with | 3 |
| the federal
Personal Responsibility and Work Opportunity | 4 |
| Reconciliation Act of 1996.
Any bank governed by this Act | 5 |
| shall enter into an agreement for data
exchanges with a | 6 |
| State agency provided the State agency
pays to the bank a | 7 |
| reasonable fee not to exceed its
actual cost incurred. A | 8 |
| bank providing
information in accordance with this item | 9 |
| shall not be liable to any account
holder or other person | 10 |
| for any disclosure of information to a State agency, for
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| encumbering or surrendering any assets held by the bank in | 12 |
| response to a lien
or order to withhold and deliver issued | 13 |
| by a State agency, or for any other
action taken pursuant | 14 |
| to this item, including individual or mechanical errors,
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| provided the action does not constitute gross negligence or | 16 |
| willful misconduct.
A bank shall have no obligation to | 17 |
| hold, encumber, or surrender assets until
it has been | 18 |
| served with a subpoena, summons, warrant, court or | 19 |
| administrative
order,
lien, or levy.
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| (15) The exchange in the regular course of business of | 21 |
| information
between
a bank and any commonly owned affiliate | 22 |
| of the bank, subject to the provisions
of the Financial | 23 |
| Institutions Insurance Sales Law.
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| (16) The furnishing of information to law enforcement | 25 |
| authorities, the
Illinois Department on
Aging and its | 26 |
| regional administrative and provider agencies, the |
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| Department of
Human Services Office
of Inspector General, | 2 |
| or public guardians: (i) upon subpoena by the investigatory | 3 |
| entity or the guardian, or (ii) if there is suspicion by | 4 |
| the bank that a customer
who is an elderly or
disabled | 5 |
| person has been or may become the victim of financial | 6 |
| exploitation.
For the purposes of this
item (16), the term: | 7 |
| (i) "elderly person" means a person who is 60 or more
years | 8 |
| of age, (ii) "disabled
person" means a person who has or | 9 |
| reasonably appears to the bank to have a
physical or mental
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| disability that impairs his or her ability to seek or | 11 |
| obtain protection from or
prevent financial
exploitation, | 12 |
| and (iii) "financial exploitation" means tortious or | 13 |
| illegal use
of the assets or resources of
an elderly or | 14 |
| disabled person, and includes, without limitation,
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| misappropriation of the elderly or
disabled person's | 16 |
| assets or resources by undue influence, breach of fiduciary
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| relationship, intimidation,
fraud, deception, extortion, | 18 |
| or the use of assets or resources in any manner
contrary to | 19 |
| law. A bank or
person furnishing information pursuant to | 20 |
| this item (16) shall be entitled to
the same rights and
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| protections as a person furnishing information under the | 22 |
| Elder Abuse and
Neglect Act, the Illinois
Domestic Violence | 23 |
| Act of 1986, and the Abuse of Adults with Disabilities | 24 |
| Intervention Act.
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| (17) The disclosure of financial records or | 26 |
| information as necessary to
effect, administer, or enforce |
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| a transaction requested or authorized by the
customer, or | 2 |
| in connection with:
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| (A) servicing or processing a financial product or | 4 |
| service requested or
authorized by the customer;
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| (B) maintaining or servicing a customer's account | 6 |
| with the bank; or
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| (C) a proposed or actual securitization or | 8 |
| secondary market sale
(including sales of servicing | 9 |
| rights) related to a
transaction of a customer.
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| Nothing in this item (17), however, authorizes the sale | 11 |
| of the financial
records or information of a customer | 12 |
| without the consent of the customer.
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| (18) The disclosure of financial records or | 14 |
| information as necessary to
protect against actual or | 15 |
| potential fraud, unauthorized transactions, claims,
or | 16 |
| other liability.
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| (19)(a) The disclosure of financial records or | 18 |
| information
related to a private label credit program | 19 |
| between a financial
institution and a private label party | 20 |
| in connection with that
private label credit program. Such | 21 |
| information is limited to
outstanding balance, available | 22 |
| credit, payment and performance
and account history, | 23 |
| product references, purchase information,
and information
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| related to the identity of the customer.
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| (b)(l) For purposes of this paragraph (19) of | 26 |
| subsection
(b) of Section 48.1, a "private label credit |
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| 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 label | 4 |
| party primarily for payment for goods or services
sold, | 5 |
| manufactured, or distributed by a private label party.
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| (2) For purposes of this paragraph (19) of subsection | 7 |
| (b)
of Section 48.l, a "private label party" means, with | 8 |
| respect to a
private label credit program, any of the | 9 |
| following: a
retailer, a merchant, a manufacturer, a trade | 10 |
| group,
or any such person's affiliate, subsidiary, member,
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| agent, or service provider.
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| (c) Except as otherwise provided by this Act, a bank may | 13 |
| not disclose to
any person, except to the customer or his
duly | 14 |
| authorized agent, any financial records or financial | 15 |
| information
obtained from financial records relating to that | 16 |
| customer of
that bank unless:
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| (1) the customer has authorized disclosure to the | 18 |
| person;
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| (2) the financial records are disclosed in response to | 20 |
| a lawful
subpoena, summons, warrant , citation to discover | 21 |
| assets, or court order which meets the requirements
of | 22 |
| subsection (d) of this Section; or
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| (3) the bank is attempting to collect an obligation | 24 |
| owed to the bank
and the bank complies with the provisions | 25 |
| of Section 2I of the Consumer
Fraud and Deceptive Business | 26 |
| Practices Act.
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| (d) A bank shall disclose financial records under paragraph | 2 |
| (2) of
subsection (c) of this Section under a lawful subpoena, | 3 |
| summons, warrant, citation to discover assets, or
court order | 4 |
| only after the bank mails a copy of the subpoena, summons, | 5 |
| warrant, citation to discover assets,
or court order to the | 6 |
| person establishing the relationship with the bank, if
living, | 7 |
| and, otherwise his personal representative, if known, at his | 8 |
| last known
address by first class mail, postage prepaid, unless | 9 |
| the bank is specifically
prohibited from notifying the person | 10 |
| by order of court or by applicable State
or federal law. A bank | 11 |
| shall not mail a copy of a subpoena to any person
pursuant to | 12 |
| this subsection if the subpoena was issued by a grand jury | 13 |
| under
the Statewide Grand Jury Act.
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| (e) Any officer or employee of a bank who knowingly and
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| willfully furnishes financial records in violation of this | 16 |
| Section is
guilty of a business offense and, upon conviction, | 17 |
| shall be fined not
more than $1,000.
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| (f) Any person who knowingly and willfully induces or | 19 |
| attempts to
induce any officer or employee of a bank to | 20 |
| disclose financial
records in violation of this Section is | 21 |
| guilty of a business offense
and, upon conviction, shall be | 22 |
| fined not more than $1,000.
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| (g) A bank shall be reimbursed for costs that are | 24 |
| reasonably necessary
and that have been directly incurred in | 25 |
| searching for, reproducing, or
transporting books, papers, | 26 |
| records, or other data of a customer required or
requested to |
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| be produced pursuant to a lawful subpoena, summons, warrant, | 2 |
| citation to discover assets, or
court order. The Commissioner | 3 |
| shall determine the rates and conditions
under which payment | 4 |
| may be made.
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| (Source: P.A. 94-495, eff. 8-8-05; 94-851, eff. 6-13-06.)
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| Section 2.5. The Illinois Savings and Loan Act of 1985 is | 7 |
| amended by changing Section 3-8 as follows:
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| (205 ILCS 105/3-8) (from Ch. 17, par. 3303-8)
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| Sec. 3-8. Access to books and records; communication with | 10 |
| members.
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| (a) Every member or holder of capital shall have the right | 12 |
| to inspect
the books and records of the association that | 13 |
| pertain to his account.
Otherwise, the right of inspection and | 14 |
| examination of the books and
records shall be limited as | 15 |
| provided in this Act, and no other person
shall have access to | 16 |
| the books and records or shall be entitled to a
list of the | 17 |
| members.
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| (b) For the purpose of this Section, the term "financial | 19 |
| records"
means any original, any copy, or any summary of (i) a | 20 |
| document granting
signature authority over a deposit or | 21 |
| account; (ii) a statement, ledger
card, or other record on any | 22 |
| deposit or account that
shows each transaction in or with | 23 |
| respect to that account; (iii) a check,
draft, or money order | 24 |
| drawn on an association or issued and payable by
an |
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| association; or (iv) any other item containing information | 2 |
| pertaining to
any relationship established in the ordinary | 3 |
| course of an association's
business between an association and | 4 |
| its customer, including financial
statements or other | 5 |
| financial information provided by the member or holder of
| 6 |
| capital.
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| (c) This Section does not prohibit:
| 8 |
| (1) The preparation, examination, handling, or | 9 |
| maintenance of any
financial records by any officer, | 10 |
| employee, or agent of an association having
custody of | 11 |
| those records or the examination of those records by a | 12 |
| certified
public accountant engaged by the association to | 13 |
| perform an independent
audit.
| 14 |
| (2) The examination of any financial records by, or the | 15 |
| furnishing of
financial records by an association to, any | 16 |
| officer, employee, or agent of the
Commissioner of Banks | 17 |
| and Real Estate or federal depository institution
| 18 |
| regulator for use solely in the exercise
of
his duties as | 19 |
| an officer, employee, or agent.
| 20 |
| (3) The publication of data furnished from financial | 21 |
| records
relating to members or holders of capital where the | 22 |
| data cannot be
identified to any particular member, holder | 23 |
| of capital, or account.
| 24 |
| (4) The making of reports or returns required under | 25 |
| Chapter 61 of
the Internal Revenue Code of 1986.
| 26 |
| (5) Furnishing information concerning the dishonor of |
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| any negotiable
instrument permitted to be disclosed under | 2 |
| the Uniform Commercial
Code.
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| (6) The exchange in the regular course of business of | 4 |
| (i) credit
information between an association and other | 5 |
| associations or financial
institutions or commercial | 6 |
| enterprises, directly or through a consumer
reporting | 7 |
| agency
or (ii) financial records or information derived | 8 |
| from financial records
between an association and other | 9 |
| associations or financial institutions or
commercial | 10 |
| enterprises for the purpose of conducting due diligence | 11 |
| pursuant to
a purchase or sale involving the association or | 12 |
| assets or liabilities of the
association.
| 13 |
| (7) The furnishing of information to the appropriate | 14 |
| law enforcement
authorities where the association | 15 |
| reasonably believes it has been the
victim of a crime.
| 16 |
| (8) The furnishing of information pursuant to the | 17 |
| Uniform Disposition
of Unclaimed Property Act.
| 18 |
| (9) The furnishing of information pursuant to the | 19 |
| Illinois Income Tax
Act and the Illinois Estate and | 20 |
| Generation-Skipping Transfer Tax Act.
| 21 |
| (10) The furnishing of information pursuant to the | 22 |
| federal "Currency
and Foreign Transactions Reporting Act", | 23 |
| (Title 31, United States
Code, Section 1051 et seq.).
| 24 |
| (11) The furnishing of information pursuant to any | 25 |
| other statute that
by its terms or by regulations | 26 |
| promulgated thereunder requires the disclosure
of |
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| financial records other than by subpoena, summons, | 2 |
| warrant, or court
order.
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| (12) The exchange of information between an | 4 |
| association and an affiliate
of the association; as used in | 5 |
| this item, "affiliate" includes any
company, partnership, | 6 |
| or organization that controls, is controlled by, or is
| 7 |
| under common control with an association.
| 8 |
| (13) The furnishing of information
in accordance with | 9 |
| the federal Personal Responsibility and Work Opportunity
| 10 |
| Reconciliation Act of 1996. Any association governed by | 11 |
| this Act shall enter
into an agreement for data
exchanges | 12 |
| with a State agency provided the State agency
pays to the | 13 |
| association a reasonable fee not to exceed its
actual cost | 14 |
| incurred. An association
providing
information in | 15 |
| accordance with this item shall not be liable to any | 16 |
| account
holder or other person for any disclosure of | 17 |
| information to a State agency, for
encumbering or | 18 |
| surrendering any assets held by the association in response | 19 |
| to a
lien
or order to withhold and deliver issued by a | 20 |
| State agency, or for any other
action taken pursuant to | 21 |
| this item, including individual or mechanical errors,
| 22 |
| provided the action does not constitute gross negligence or | 23 |
| willful misconduct.
An association shall have no | 24 |
| obligation to hold, encumber, or surrender assets
until it | 25 |
| has been served with a subpoena, summons, warrant, court or
| 26 |
| administrative order, lien, or levy.
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SB0229 Enrolled |
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LRB095 07909 AJO 28071 b |
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| (14) The furnishing of information to law enforcement | 2 |
| authorities, the
Illinois Department on
Aging and its | 3 |
| regional administrative and provider agencies, the | 4 |
| Department of
Human Services Office
of Inspector General, | 5 |
| or public guardians: (i) upon subpoena by the investigatory | 6 |
| entity or the guardian, or (ii) if there is suspicion by | 7 |
| the association that a
customer who is an elderly or
| 8 |
| disabled person has been or may become the victim of | 9 |
| financial exploitation.
For the purposes of this
item (14), | 10 |
| the term: (i) "elderly person" means a person who is 60 or | 11 |
| more
years of age, (ii) "disabled
person" means a person | 12 |
| who has or reasonably appears to the association to have
a | 13 |
| physical or mental
disability that impairs his or her | 14 |
| ability to seek or obtain protection from or
prevent | 15 |
| financial
exploitation, and (iii) "financial exploitation" | 16 |
| means tortious or illegal use
of the assets or resources of
| 17 |
| an elderly or disabled person, and includes, without | 18 |
| limitation,
misappropriation of the elderly or
disabled | 19 |
| person's assets or resources by undue influence, breach of | 20 |
| fiduciary
relationship, intimidation,
fraud, deception, | 21 |
| extortion, or the use of assets or resources in any manner
| 22 |
| contrary to law. An
association or person furnishing | 23 |
| information pursuant to this item (14) shall
be entitled to | 24 |
| the same
rights and protections as a person furnishing | 25 |
| information under the Elder Abuse
and Neglect Act, the
| 26 |
| Illinois Domestic Violence Act of 1986, and the Abuse of |
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LRB095 07909 AJO 28071 b |
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| Adults with Disabilities Intervention Act.
| 2 |
| (15) The disclosure of financial records or | 3 |
| information as necessary to
effect, administer, or enforce | 4 |
| a transaction requested or authorized by the
member or | 5 |
| holder of capital, or in connection with:
| 6 |
| (A) servicing or processing a financial product or | 7 |
| service requested or
authorized by the member or holder | 8 |
| of capital;
| 9 |
| (B) maintaining or servicing an account of a member | 10 |
| or holder of capital
with the association; or
| 11 |
| (C) a proposed or actual securitization or | 12 |
| secondary market sale
(including
sales of servicing | 13 |
| rights) related to a transaction of
a member or holder | 14 |
| of capital.
| 15 |
| Nothing in this item (15), however, authorizes the sale | 16 |
| of the financial
records or information of a member or | 17 |
| holder of capital without the consent of
the member or | 18 |
| holder of capital.
| 19 |
| (16) The disclosure of financial records or | 20 |
| information as necessary to
protect against or prevent | 21 |
| actual or potential fraud, unauthorized
transactions, | 22 |
| claims, or other liability.
| 23 |
| (17)(a) The disclosure of financial records or | 24 |
| information
related to a private label credit program | 25 |
| between a financial
institution and a private label party | 26 |
| in connection
with that private label credit program. Such |
|
|
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SB0229 Enrolled |
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LRB095 07909 AJO 28071 b |
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| 1 |
| information
is limited to outstanding balance, available | 2 |
| credit, payment and
performance and account history, | 3 |
| product references, purchase
information,
and information | 4 |
| related to the identity of the
customer.
| 5 |
| (b)(l) For purposes of this paragraph (17) of | 6 |
| subsection
(c) of Section 3-8, a "private label credit | 7 |
| program" means a
credit program involving a financial | 8 |
| institution and a private label
party that is used by a | 9 |
| customer of the financial institution and the
private label | 10 |
| party primarily for payment for goods or services
sold, | 11 |
| manufactured, or distributed by a private label party.
| 12 |
| (2) For purposes of this paragraph (17) of subsection | 13 |
| (c)
of Section 3-8, a "private label party" means, with | 14 |
| respect to a
private label credit program, any of the | 15 |
| following: a
retailer, a merchant, a manufacturer, a trade | 16 |
| group,
or any such person's affiliate, subsidiary, member,
| 17 |
| agent, or service provider.
| 18 |
| (d) An association may not disclose to any person, except | 19 |
| to the
member or holder of capital or his duly authorized | 20 |
| agent, any financial
records relating to that member or holder | 21 |
| of capital of that association
unless:
| 22 |
| (1) The member or holder of capital has authorized | 23 |
| disclosure to the
person; or
| 24 |
| (2) The financial records are disclosed in response to | 25 |
| a lawful
subpoena, summons, warrant, citation to discover | 26 |
| assets, or court order that meets the
requirements of |
|
|
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LRB095 07909 AJO 28071 b |
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| subsection (e) of this Section.
| 2 |
| (e) An association shall disclose financial records under | 3 |
| subsection
(d) of this Section pursuant to a lawful subpoena, | 4 |
| summons,
warrant, citation to discover assets, or court order | 5 |
| only after the association mails a copy of the
subpoena, | 6 |
| summons, warrant, citation to discover assets, or court order | 7 |
| to the person establishing
the relationship with the | 8 |
| association, if living, and, otherwise, his
personal | 9 |
| representative, if known, at his last known address by first | 10 |
| class
mail, postage prepaid, unless the association is | 11 |
| specifically prohibited
from notifying that person by order of | 12 |
| court.
| 13 |
| (f)(1) Any officer or employee of an association who | 14 |
| knowingly and
willfully furnishes financial records in | 15 |
| violation of this Section is
guilty of a business offense and, | 16 |
| upon conviction, shall be fined not
more than $1,000.
| 17 |
| (2) Any person who knowingly and willfully induces or | 18 |
| attempts to
induce any officer or employee of an association to | 19 |
| disclose financial
records in violation of this Section is | 20 |
| guilty of a business offense
and, upon conviction, shall be | 21 |
| fined not more than $1,000.
| 22 |
| (g) However, if any member desires to communicate with the | 23 |
| other
members of the association with reference to any question | 24 |
| pending or to
be presented at a meeting of the members, the | 25 |
| association shall give him
upon request a statement of the | 26 |
| approximate number of members entitled
to vote at the meeting |
|
|
|
SB0229 Enrolled |
- 17 - |
LRB095 07909 AJO 28071 b |
|
| 1 |
| and an estimate of the cost of
preparing and mailing the | 2 |
| communication. The requesting
member then shall submit the | 3 |
| communication to the Commissioner who, if he
finds it to be | 4 |
| appropriate and truthful, shall direct that it be prepared
and | 5 |
| mailed to the members upon the requesting member's payment or
| 6 |
| adequate provision for payment of the expenses of preparation | 7 |
| and mailing.
| 8 |
| (h) An association shall be reimbursed for costs that are | 9 |
| necessary and
that have been directly incurred in searching | 10 |
| for, reproducing, or
transporting books, papers, records, or | 11 |
| other data of a customer required
to be reproduced pursuant to | 12 |
| a lawful subpoena, warrant, citation to discover assets, or | 13 |
| court order.
| 14 |
| (Source: P.A. 93-271, eff. 7-22-03; 94-495, eff. 8-8-05; | 15 |
| 94-851, eff. 6-13-06.)
| 16 |
| Section 3. The Savings Bank Act is amended by changing | 17 |
| Section 4013 as follows:
| 18 |
| (205 ILCS 205/4013) (from Ch. 17, par. 7304-13)
| 19 |
| Sec. 4013. Access to books and records; communication with | 20 |
| members
and shareholders. | 21 |
| (a) Every member or shareholder shall have the right to | 22 |
| inspect books
and records of the savings bank that pertain to | 23 |
| his accounts. Otherwise,
the right of inspection and | 24 |
| examination of the books and records shall be
limited as |
|
|
|
SB0229 Enrolled |
- 18 - |
LRB095 07909 AJO 28071 b |
|
| 1 |
| provided in this Act, and no other person shall have access to
| 2 |
| the books and records nor shall be entitled to a list of the | 3 |
| members or
shareholders.
| 4 |
| (b) For the purpose of this Section, the term "financial | 5 |
| records" means
any original, any copy, or any summary of (1) a | 6 |
| document granting signature
authority over a deposit or | 7 |
| account; (2) a statement, ledger card, or other
record on any | 8 |
| deposit or account that shows each transaction in or with
| 9 |
| respect to that account; (3) a check, draft, or money order | 10 |
| drawn on a
savings bank or issued and payable by a savings | 11 |
| bank; or (4) any other item
containing information pertaining | 12 |
| to any relationship established in the
ordinary course of a | 13 |
| savings bank's business between a savings bank and
its | 14 |
| customer, including financial statements or other financial | 15 |
| information
provided by the member or shareholder.
| 16 |
| (c) This Section does not prohibit:
| 17 |
| (1) The preparation examination, handling, or | 18 |
| maintenance of any
financial records by any officer, | 19 |
| employee, or agent of a savings bank
having custody of | 20 |
| records or examination of records by a certified public
| 21 |
| accountant engaged by the savings bank to perform an | 22 |
| independent audit.
| 23 |
| (2) The examination of any financial records by, or the | 24 |
| furnishing of
financial records by a savings bank to, any | 25 |
| officer, employee, or agent of
the Commissioner of Banks | 26 |
| and Real Estate or the federal depository
institution |
|
|
|
SB0229 Enrolled |
- 19 - |
LRB095 07909 AJO 28071 b |
|
| 1 |
| regulator for use
solely in
the exercise of his duties as | 2 |
| an officer, employee, or agent.
| 3 |
| (3) The publication of data furnished from financial | 4 |
| records relating
to members or holders of capital where the | 5 |
| data cannot be identified to any
particular member, | 6 |
| shareholder, or account.
| 7 |
| (4) The making of reports or returns required under | 8 |
| Chapter 61 of the
Internal Revenue Code of 1986.
| 9 |
| (5) Furnishing information concerning the dishonor of | 10 |
| any negotiable
instrument permitted to be disclosed under | 11 |
| the Uniform Commercial Code.
| 12 |
| (6) The exchange in the regular course of business of | 13 |
| (i) credit
information between a savings bank and other | 14 |
| savings banks or financial
institutions or commercial | 15 |
| enterprises, directly or through a consumer
reporting | 16 |
| agency
or (ii) financial records or information derived | 17 |
| from financial records
between a savings bank and other | 18 |
| savings banks or financial institutions or
commercial | 19 |
| enterprises for the purpose of conducting due diligence | 20 |
| pursuant to
a purchase or sale involving the savings bank | 21 |
| or assets or liabilities of the
savings bank.
| 22 |
| (7) The furnishing of information to the appropriate | 23 |
| law enforcement
authorities where the savings bank | 24 |
| reasonably believes it has been the
victim of a crime.
| 25 |
| (8) The furnishing of information pursuant to the | 26 |
| Uniform Disposition
of Unclaimed Property Act.
|
|
|
|
SB0229 Enrolled |
- 20 - |
LRB095 07909 AJO 28071 b |
|
| 1 |
| (9) The furnishing of information pursuant to the | 2 |
| Illinois Income Tax
Act
and the Illinois Estate and | 3 |
| Generation-Skipping Transfer Tax Act.
| 4 |
| (10) The furnishing of information pursuant to the | 5 |
| federal "Currency
and Foreign Transactions Reporting Act", | 6 |
| (Title 31, United States Code,
Section 1051 et seq.).
| 7 |
| (11) The furnishing of information pursuant to any | 8 |
| other statute which
by its terms or by regulations | 9 |
| promulgated thereunder requires the
disclosure of | 10 |
| financial records other than by subpoena, summons, | 11 |
| warrant, or
court order.
| 12 |
| (12) The furnishing of information in accordance with | 13 |
| the federal
Personal Responsibility and Work Opportunity | 14 |
| Reconciliation Act of 1996.
Any savings bank governed by | 15 |
| this Act shall enter into an agreement for data
exchanges | 16 |
| with a State agency provided the State agency
pays to the | 17 |
| savings bank a reasonable fee not to exceed its
actual cost | 18 |
| incurred. A savings bank
providing
information in | 19 |
| accordance with this item shall not be liable to any | 20 |
| account
holder or other person for any disclosure of | 21 |
| information to a State agency, for
encumbering or | 22 |
| surrendering any assets held by the savings bank in | 23 |
| response to
a lien
or order to withhold and deliver issued | 24 |
| by a State agency, or for any other
action taken pursuant | 25 |
| to this item, including individual or mechanical errors,
| 26 |
| provided the action does not constitute gross negligence or |
|
|
|
SB0229 Enrolled |
- 21 - |
LRB095 07909 AJO 28071 b |
|
| 1 |
| willful misconduct.
A savings bank shall have no obligation | 2 |
| to hold, encumber, or surrender
assets until
it has been | 3 |
| served with a subpoena, summons, warrant, court or | 4 |
| administrative
order,
lien, or levy.
| 5 |
| (13) The furnishing of information to law enforcement | 6 |
| authorities, the
Illinois Department on
Aging and its | 7 |
| regional administrative and provider agencies, the | 8 |
| Department of
Human Services Office
of Inspector General, | 9 |
| or public guardians: (i) upon subpoena by the investigatory | 10 |
| entity or the guardian, or (ii) if there is suspicion by | 11 |
| the savings bank that a
customer who is an elderly
or | 12 |
| disabled person has been or may become the victim of | 13 |
| financial exploitation.
For the purposes of this
item (13), | 14 |
| the 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 a | 17 |
| 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 exploitation" | 20 |
| means tortious or illegal use
of the assets or resources of
| 21 |
| an elderly or disabled person, and includes, without | 22 |
| limitation,
misappropriation of the elderly or
disabled | 23 |
| person's assets or resources by undue influence, breach of | 24 |
| fiduciary
relationship, intimidation,
fraud, deception, | 25 |
| extortion, or the use of assets or resources in any manner
| 26 |
| contrary to law. A savings
bank or person furnishing |
|
|
|
SB0229 Enrolled |
- 22 - |
LRB095 07909 AJO 28071 b |
|
| 1 |
| information pursuant to this item (13) shall be
entitled to | 2 |
| the same rights and
protections as a person furnishing | 3 |
| information under the Elder Abuse and
Neglect Act, the | 4 |
| Illinois
Domestic Violence Act of 1986, and the Abuse of | 5 |
| Adults with Disabilities Intervention Act.
| 6 |
| (14) The disclosure of financial records or | 7 |
| information as necessary to
effect, administer, or enforce | 8 |
| a transaction requested or authorized by the
member or | 9 |
| holder of capital, or in connection with:
| 10 |
| (A) servicing or processing a financial product or | 11 |
| service requested or
authorized by the member or holder | 12 |
| of capital;
| 13 |
| (B) maintaining or servicing an account of a member | 14 |
| or holder of capital
with the savings bank; or
| 15 |
| (C) a proposed or actual securitization or | 16 |
| secondary market sale
(including sales of servicing | 17 |
| rights) related to a
transaction of a member or holder | 18 |
| of capital.
| 19 |
| Nothing in this item (14), however, authorizes the sale | 20 |
| of the financial
records or information of a member or | 21 |
| holder of capital without the consent of
the member or | 22 |
| holder of capital.
| 23 |
| (15) The exchange in the regular course of business of | 24 |
| information between
a
savings bank and any commonly owned | 25 |
| affiliate of the savings bank, subject to
the provisions of | 26 |
| the Financial Institutions Insurance Sales Law.
|
|
|
|
SB0229 Enrolled |
- 23 - |
LRB095 07909 AJO 28071 b |
|
| 1 |
| (16) The disclosure of financial records or | 2 |
| information as necessary to
protect against or prevent | 3 |
| actual or potential fraud, unauthorized
transactions, | 4 |
| claims, or other liability.
| 5 |
| (17)(a) The disclosure of financial records or | 6 |
| information
related to a private label credit program | 7 |
| between a financial
institution and a private label party | 8 |
| in connection
with that private label credit program. Such | 9 |
| information
is limited to outstanding balance, available | 10 |
| credit, payment and
performance and account history, | 11 |
| product references, purchase
information,
and information | 12 |
| related to the identity of the
customer.
| 13 |
| (b)(l) For purposes of this paragraph (17) of | 14 |
| subsection
(c) of Section 4013, a "private label credit | 15 |
| program" means a
credit program involving a financial | 16 |
| institution and a private label
party that is used by a | 17 |
| customer of the financial institution and the
private label | 18 |
| party primarily for payment for goods or services
sold, | 19 |
| manufactured, or distributed by a private label party.
| 20 |
| (2) For purposes of this paragraph (17) of subsection | 21 |
| (c)
of Section 4013, a "private label party" means, with | 22 |
| respect to a
private label credit program, any of the | 23 |
| following: a
retailer, a merchant, a manufacturer, a trade | 24 |
| group,
or any such person's affiliate, subsidiary, member,
| 25 |
| agent, or service provider.
| 26 |
| (d) A savings bank may not disclose to any person, except |
|
|
|
SB0229 Enrolled |
- 24 - |
LRB095 07909 AJO 28071 b |
|
| 1 |
| to the member
or holder of capital or his duly authorized | 2 |
| agent, any financial records
relating to that member or | 3 |
| shareholder of the savings bank unless:
| 4 |
| (1) the member or shareholder has authorized | 5 |
| disclosure to the person; or
| 6 |
| (2) the financial records are disclosed in response to | 7 |
| a lawful
subpoena, summons, warrant, citation to discover | 8 |
| assets, or court order that meets the requirements of
| 9 |
| subsection (e) of this Section.
| 10 |
| (e) A savings bank shall disclose financial records under | 11 |
| subsection (d)
of this Section pursuant to a lawful subpoena, | 12 |
| summons, warrant, citation to discover assets, or court
order | 13 |
| only after the savings bank mails a copy of the subpoena, | 14 |
| summons,
warrant, citation to discover assets, or court order | 15 |
| to the person establishing the relationship with
the savings | 16 |
| bank, if living, and otherwise, his personal representative, if
| 17 |
| known, at his last known address by first class mail, postage | 18 |
| prepaid,
unless the savings bank is specifically prohibited | 19 |
| from notifying the
person by order of court.
| 20 |
| (f) Any officer or employee of a savings bank who knowingly | 21 |
| and
willfully furnishes financial records in violation of this | 22 |
| Section is
guilty of a business offense and, upon conviction, | 23 |
| shall be fined not
more than $1,000.
| 24 |
| (g) Any person who knowingly and willfully induces or | 25 |
| attempts to
induce any officer or employee of a savings bank to | 26 |
| disclose financial
records in violation of this Section is |
|
|
|
SB0229 Enrolled |
- 25 - |
LRB095 07909 AJO 28071 b |
|
| 1 |
| guilty of a business offense and,
upon conviction, shall be | 2 |
| fined not more than $1,000.
| 3 |
| (h) If any member or shareholder desires to communicate | 4 |
| with the other
members or shareholders of the savings bank with | 5 |
| reference to any question
pending or to be presented at an | 6 |
| annual or special meeting, the savings
bank shall give that | 7 |
| person, upon request, a statement of the approximate
number of | 8 |
| members or shareholders entitled to vote at the meeting and an
| 9 |
| estimate of the cost of preparing and mailing the | 10 |
| communication. The
requesting member shall submit the | 11 |
| communication to the Commissioner
who, upon finding it to be | 12 |
| appropriate and truthful, shall direct that it
be prepared and | 13 |
| mailed to the members upon the requesting member's or
| 14 |
| shareholder's payment or adequate provision for payment of the | 15 |
| expenses of
preparation and mailing.
| 16 |
| (i) A savings bank shall be reimbursed for costs that are | 17 |
| necessary and
that have been directly incurred in searching | 18 |
| for, reproducing, or
transporting books, papers, records, or | 19 |
| other data of a customer required
to be reproduced pursuant to | 20 |
| a lawful subpoena, warrant, citation to discover assets, or | 21 |
| court order.
| 22 |
| (j) Notwithstanding the provisions of this Section, a | 23 |
| savings bank may
sell or otherwise make use of lists of | 24 |
| customers' names and addresses. All
other information | 25 |
| regarding a customer's account are subject to the
disclosure | 26 |
| provisions of this Section. At the request of any customer,
|
|
|
|
SB0229 Enrolled |
- 26 - |
LRB095 07909 AJO 28071 b |
|
| 1 |
| that customer's name and address shall be deleted from any list | 2 |
| that is to
be sold or used in any other manner beyond | 3 |
| identification of the customer's
accounts.
| 4 |
| (Source: P.A. 93-271, eff. 7-22-03; 94-495, eff. 8-8-05; | 5 |
| 94-851, eff. 6-13-06.)
| 6 |
| Section 3.5. The Illinois Credit Union Act is amended by | 7 |
| changing Section 10 as follows:
| 8 |
| (205 ILCS 305/10) (from Ch. 17, par. 4411)
| 9 |
| Sec. 10. Credit union records; member financial records.
| 10 |
| (1) A credit union shall establish and maintain books, | 11 |
| records, accounting
systems and procedures which accurately | 12 |
| reflect its operations and which
enable the Department to | 13 |
| readily ascertain the true financial condition
of the credit | 14 |
| union and whether it is complying with this Act.
| 15 |
| (2) A photostatic or photographic reproduction of any | 16 |
| credit union records
shall be admissible as evidence of | 17 |
| transactions with the credit union.
| 18 |
| (3)(a) For the purpose of this Section, the term "financial | 19 |
| records"
means any original, any copy, or any summary of (1) a | 20 |
| document granting
signature authority over an account, (2) a | 21 |
| statement, ledger card or other
record on any account which | 22 |
| shows each transaction in or with respect to
that account, (3) | 23 |
| a check, draft or money order drawn on a financial
institution | 24 |
| or other entity or issued and payable by or through a financial
|
|
|
|
SB0229 Enrolled |
- 27 - |
LRB095 07909 AJO 28071 b |
|
| 1 |
| institution or other entity, or (4) any other item containing | 2 |
| information
pertaining to any relationship established in the | 3 |
| ordinary course of
business between a credit union and its | 4 |
| member, including financial
statements or other financial | 5 |
| information provided by the member.
| 6 |
| (b) This Section does not prohibit:
| 7 |
| (1) The preparation, examination, handling or | 8 |
| maintenance of any
financial records by any officer, | 9 |
| employee or agent of a credit union
having custody of such | 10 |
| records, or the examination of such records by a
certified | 11 |
| public accountant engaged by the credit union to perform an
| 12 |
| independent audit.
| 13 |
| (2) The examination of any financial records by or the | 14 |
| furnishing of
financial records by a credit union to any | 15 |
| officer, employee or agent of
the Department, the National | 16 |
| Credit Union Administration, Federal Reserve
board or any | 17 |
| insurer of share accounts for use solely in the exercise of
| 18 |
| his duties as an officer, employee or agent.
| 19 |
| (3) The publication of data furnished from financial | 20 |
| records relating
to members where the data cannot be | 21 |
| identified to any particular customer
of account.
| 22 |
| (4) The making of reports or returns required under | 23 |
| Chapter 61 of the
Internal Revenue Code of 1954.
| 24 |
| (5) Furnishing information concerning the dishonor of | 25 |
| any negotiable
instrument permitted to be disclosed under | 26 |
| the Uniform Commercial
Code.
|
|
|
|
SB0229 Enrolled |
- 28 - |
LRB095 07909 AJO 28071 b |
|
| 1 |
| (6) The exchange in the regular course of business
of | 2 |
| (i) credit information
between a credit union and other | 3 |
| credit unions or financial institutions
or commercial | 4 |
| enterprises, directly or through a consumer reporting | 5 |
| agency
or (ii) financial records or information derived | 6 |
| from financial records
between a credit union and other | 7 |
| credit unions or financial institutions or
commercial | 8 |
| enterprises for
the purpose of conducting due diligence | 9 |
| pursuant to a merger or a purchase or
sale of assets or | 10 |
| liabilities of the credit union.
| 11 |
| (7) The furnishing of information to the appropriate | 12 |
| law enforcement
authorities where the credit union | 13 |
| reasonably believes it has been the victim
of a crime.
| 14 |
| (8) The furnishing of information pursuant to the | 15 |
| Uniform Disposition
of Unclaimed Property Act.
| 16 |
| (9) The furnishing of information pursuant to the | 17 |
| Illinois Income Tax
Act and the Illinois Estate and | 18 |
| Generation-Skipping Transfer Tax Act.
| 19 |
| (10) The furnishing of information pursuant to the | 20 |
| federal "Currency
and Foreign Transactions Reporting Act", | 21 |
| Title 31, United States Code,
Section 1051 et sequentia.
| 22 |
| (11) The furnishing of information pursuant to any | 23 |
| other statute which
by its terms or by regulations | 24 |
| promulgated thereunder requires the disclosure
of | 25 |
| financial records other than by subpoena, summons, warrant | 26 |
| or court order.
|
|
|
|
SB0229 Enrolled |
- 29 - |
LRB095 07909 AJO 28071 b |
|
| 1 |
| (12) The furnishing of information in accordance with | 2 |
| the federal
Personal Responsibility and Work Opportunity | 3 |
| Reconciliation Act of 1996.
Any credit union governed by | 4 |
| this Act shall enter into an agreement for data
exchanges | 5 |
| with a State agency provided the State agency
pays to the | 6 |
| credit union a reasonable fee not to exceed its
actual cost | 7 |
| incurred. A credit union
providing
information in | 8 |
| accordance with this item shall not be liable to any | 9 |
| account
holder or other person for any disclosure of | 10 |
| information to a State agency, for
encumbering or | 11 |
| surrendering any assets held by the credit union in | 12 |
| response to
a lien
or order to withhold and deliver issued | 13 |
| by a State agency, or for any other
action taken pursuant | 14 |
| to this item, including individual or mechanical errors,
| 15 |
| provided the action does not constitute gross negligence or | 16 |
| willful misconduct.
A credit union shall have no obligation | 17 |
| to hold, encumber, or surrender
assets until
it has been | 18 |
| served with a subpoena, summons, warrant, court or | 19 |
| administrative
order, lien, or levy.
| 20 |
| (13) The furnishing of information to law enforcement | 21 |
| authorities, the
Illinois Department on
Aging and its | 22 |
| regional administrative and provider agencies, the | 23 |
| Department of
Human Services Office
of Inspector General, | 24 |
| or public guardians: (i) upon subpoena by the investigatory | 25 |
| entity or the guardian, or (ii) if there is suspicion by | 26 |
| the credit union that a
member who is an elderly or
|
|
|
|
SB0229 Enrolled |
- 30 - |
LRB095 07909 AJO 28071 b |
|
| 1 |
| disabled person has been or may become the victim of | 2 |
| financial exploitation.
For the purposes of this
item (13), | 3 |
| the term: (i) "elderly person" means a person who is 60 or | 4 |
| more
years of age, (ii) "disabled
person" means a person | 5 |
| who has or reasonably appears to the credit union to
have a | 6 |
| physical or mental
disability that impairs his or her | 7 |
| ability to seek or obtain protection from or
prevent | 8 |
| financial
exploitation, and (iii) "financial exploitation" | 9 |
| means tortious or illegal use
of the assets or resources of
| 10 |
| an elderly or disabled person, and includes, without | 11 |
| limitation,
misappropriation of the elderly or
disabled | 12 |
| person's assets or resources by undue influence, breach of | 13 |
| fiduciary
relationship, intimidation,
fraud, deception, | 14 |
| extortion, or the use of assets or resources in any manner
| 15 |
| contrary to law. A credit
union or person furnishing | 16 |
| information pursuant to this item (13) shall be
entitled to | 17 |
| the same rights and
protections as a person furnishing | 18 |
| information under the Elder Abuse and
Neglect Act, the | 19 |
| Illinois
Domestic Violence Act of 1986, and the Abuse of | 20 |
| Adults with Disabilities Intervention Act.
| 21 |
| (14) The disclosure of financial records or | 22 |
| information as necessary
to
effect, administer, or enforce | 23 |
| a transaction requested or authorized by the
member, or in | 24 |
| connection with:
| 25 |
| (A) servicing or processing a financial product or | 26 |
| service requested
or
authorized by the member;
|
|
|
|
SB0229 Enrolled |
- 31 - |
LRB095 07909 AJO 28071 b |
|
| 1 |
| (B) maintaining or servicing a member's account | 2 |
| with the credit union;
or
| 3 |
| (C) a proposed or actual securitization or | 4 |
| secondary market sale
(including sales of servicing | 5 |
| rights) related to a
transaction of a member.
| 6 |
| Nothing in this item (14), however, authorizes the sale | 7 |
| of the financial
records or information of a member without | 8 |
| the consent of the member.
| 9 |
| (15) The disclosure of financial records or | 10 |
| information as necessary to
protect against or prevent | 11 |
| actual or potential fraud, unauthorized
transactions, | 12 |
| claims, or other liability.
| 13 |
| (16)(a) The disclosure of financial records or | 14 |
| information
related to a private label credit program | 15 |
| between a financial
institution and a private label party | 16 |
| in connection
with that private label credit program. Such | 17 |
| information
is limited to outstanding balance, available | 18 |
| credit, payment and
performance and account history, | 19 |
| product references, purchase
information,
and information | 20 |
| related to the identity of the
customer.
| 21 |
| (b)(l) For purposes of this paragraph (16) of | 22 |
| subsection
(b) of Section 10, a "private label credit | 23 |
| program" means a credit
program involving a financial | 24 |
| institution and a private label party
that is used by a | 25 |
| customer of the financial institution and the
private label | 26 |
| party primarily for payment for goods or services
sold, |
|
|
|
SB0229 Enrolled |
- 32 - |
LRB095 07909 AJO 28071 b |
|
| 1 |
| manufactured, or distributed by a private label party.
| 2 |
| (2) For purposes of this paragraph (16) of subsection | 3 |
| (b)
of Section 10, a "private label party" means, with | 4 |
| respect to a
private label credit program, any of the | 5 |
| following: a
retailer, a merchant, a manufacturer, a trade | 6 |
| group,
or any such person's affiliate, subsidiary, member,
| 7 |
| agent, or service provider.
| 8 |
| (c) Except as otherwise provided by this Act, a credit | 9 |
| union may not
disclose to any person, except to the member
or | 10 |
| his duly authorized agent, any financial records relating to | 11 |
| that member
of the credit union unless:
| 12 |
| (1) the member has authorized disclosure to the person;
| 13 |
| (2) the financial records are disclosed in response to | 14 |
| a lawful
subpoena,
summons, warrant , citation to discover | 15 |
| assets, or court order that meets the requirements of | 16 |
| subparagraph
(d) of this Section; or
| 17 |
| (3) the credit union is attempting to collect an | 18 |
| obligation owed to
the credit union and the credit union | 19 |
| complies with the provisions of
Section 2I of the Consumer | 20 |
| Fraud and Deceptive Business Practices Act.
| 21 |
| (d) A credit union shall disclose financial records under | 22 |
| subparagraph
(c)(2) of this Section pursuant to a lawful | 23 |
| subpoena, summons, warrant , citation to discover assets, or
| 24 |
| court order only after the credit union mails a copy of the | 25 |
| subpoena, summons,
warrant , citation to discover assets, or | 26 |
| court order to the person establishing the relationship with
|
|
|
|
SB0229 Enrolled |
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LRB095 07909 AJO 28071 b |
|
| 1 |
| the credit union, if living, and otherwise his personal | 2 |
| representative,
if known, at his last known address by first | 3 |
| class mail, postage prepaid
unless the credit union is | 4 |
| specifically prohibited from notifying the person
by order of | 5 |
| court or by applicable State or federal law. In the case
of a | 6 |
| grand jury subpoena, a credit union shall not mail a copy of a | 7 |
| subpoena
to any person pursuant to this subsection if the | 8 |
| subpoena was issued by a grand
jury under the Statewide Grand | 9 |
| Jury Act or notifying the
person would constitute a violation | 10 |
| of the federal Right to Financial
Privacy Act of 1978.
| 11 |
| (e)(1) Any officer or employee of a credit union who | 12 |
| knowingly and
wilfully furnishes financial records in | 13 |
| violation of this Section is guilty of
a business offense and | 14 |
| upon conviction thereof shall be fined not more than
$1,000.
| 15 |
| (2) Any person who knowingly and wilfully induces or | 16 |
| attempts to induce
any officer or employee of a credit union to | 17 |
| disclose financial records
in violation of this Section is | 18 |
| guilty of a business offense and upon
conviction thereof shall | 19 |
| be fined not more than $1,000.
| 20 |
| (f) A credit union shall be reimbursed for costs which are | 21 |
| reasonably
necessary and which have been directly incurred in | 22 |
| searching for,
reproducing or transporting books, papers, | 23 |
| records or other data of a
member required or requested to be | 24 |
| produced pursuant to a lawful subpoena,
summons, warrant , | 25 |
| citation to discover assets, or court order. The Director may | 26 |
| determine, by rule, the
rates and
conditions under which |
|
|
|
SB0229 Enrolled |
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LRB095 07909 AJO 28071 b |
|
| 1 |
| payment shall be made. Delivery of requested documents
may be | 2 |
| delayed until final reimbursement of all costs is received.
| 3 |
| (Source: P.A. 94-495, eff. 8-8-05; 94-851, eff. 6-13-06.)
| 4 |
| Section 5. The Code of Civil Procedure is amended by | 5 |
| changing Sections 2-1402, 12-501, 12-803, 12-808, 12-808.5, | 6 |
| 12-814, 19-117, and 19-123 and by adding Sections 5-126.5 and | 7 |
| 19-129 as follows:
| 8 |
| (735 ILCS 5/2-1402) (from Ch. 110, par. 2-1402)
| 9 |
| Sec. 2-1402. Supplementary proceedings.
| 10 |
| (a) A judgment creditor, or his or her successor in | 11 |
| interest when that
interest is made to appear of record, is | 12 |
| entitled to prosecute supplementary
proceedings for the | 13 |
| purposes of examining the judgment debtor or any other
person | 14 |
| to discover assets or income of the debtor not exempt from the
| 15 |
| enforcement of the judgment, a deduction order or garnishment, | 16 |
| and of
compelling the application of non-exempt assets or | 17 |
| income discovered toward the
payment of the amount due under | 18 |
| the judgment. A supplementary proceeding shall
be commenced by | 19 |
| the service of a citation issued by the clerk. The procedure
| 20 |
| for conducting supplementary proceedings shall be prescribed | 21 |
| by rules. It is
not a prerequisite to the commencement of a | 22 |
| supplementary proceeding that a
certified copy of the judgment | 23 |
| has been returned wholly or partly unsatisfied.
All citations | 24 |
| issued by the clerk shall have the following language, or
|
|
|
|
SB0229 Enrolled |
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LRB095 07909 AJO 28071 b |
|
| 1 |
| language substantially similar thereto, stated prominently on | 2 |
| the front, in
capital letters: "YOUR FAILURE TO APPEAR IN COURT | 3 |
| AS HEREIN DIRECTED MAY CAUSE
YOU TO BE ARRESTED AND BROUGHT | 4 |
| BEFORE THE COURT TO ANSWER TO A CHARGE OF
CONTEMPT OF COURT, | 5 |
| WHICH MAY BE PUNISHABLE BY IMPRISONMENT IN THE COUNTY JAIL."
| 6 |
| The court shall not grant a continuance of the supplementary | 7 |
| proceeding except
upon good cause shown.
| 8 |
| (b) Any citation served upon a judgment debtor or any other | 9 |
| person shall
include a certification by the attorney for the | 10 |
| judgment creditor or the
judgment creditor setting forth the | 11 |
| amount of the judgment, the date of the
judgment, or its | 12 |
| revival date, the balance due thereon, the name of the court,
| 13 |
| and the number of the case, and a copy of the citation notice | 14 |
| required by this
subsection. Whenever a citation is served upon | 15 |
| a person or party other than
the judgment debtor, the officer | 16 |
| or person serving the citation shall send to
the judgment | 17 |
| debtor, within three business days of the service upon the | 18 |
| cited
party, a copy of the citation and the citation notice, | 19 |
| which may be sent
by regular first-class mail to the judgment | 20 |
| debtor's last known address. In no
event shall a citation | 21 |
| hearing be held sooner than five business days after the
| 22 |
| mailing of the citation and citation notice to the judgment | 23 |
| debtor, except by
agreement of the parties. The citation notice | 24 |
| need not be mailed to a
corporation, partnership, or | 25 |
| association. The citation notice shall be in
substantially the | 26 |
| following form:
|
|
|
|
SB0229 Enrolled |
- 36 - |
LRB095 07909 AJO 28071 b |
|
| 1 |
| "CITATION NOTICE
| 2 |
| (Name and address of Court)
| 3 |
| Name of Case: (Name of Judgment Creditor),
| 4 |
| Judgment Creditor v.
| 5 |
| (Name of Judgment Debtor),
| 6 |
| Judgment Debtor.
| 7 |
| Address of Judgment Debtor: (Insert last known
| 8 |
| address)
| 9 |
| Name and address of Attorney for Judgment
| 10 |
| Creditor or of Judgment Creditor (If no
| 11 |
| attorney is listed): (Insert name and address)
| 12 |
| Amount of Judgment: $ (Insert amount)
| 13 |
| Name of Person Receiving Citation: (Insert name)
| 14 |
| Court Date and Time: (Insert return date and time
| 15 |
| specified in citation)
| 16 |
| NOTICE: The court has issued a citation against the person | 17 |
| named above. The
citation directs that person to appear in | 18 |
| court to be examined for the purpose
of allowing the judgment | 19 |
| creditor to discover income and assets belonging to
the | 20 |
| judgment debtor or in which the judgment debtor has an | 21 |
| interest. The
citation was issued on the basis of a judgment | 22 |
| against the judgment debtor in
favor of the judgment creditor | 23 |
| in the amount stated above. On or after the
court date stated | 24 |
| above, the court may compel the application of any
discovered | 25 |
| income or assets toward payment on the judgment.
| 26 |
| The amount of income or assets that may be applied toward |
|
|
|
SB0229 Enrolled |
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LRB095 07909 AJO 28071 b |
|
| 1 |
| the judgment is
limited by federal and Illinois law. The | 2 |
| JUDGMENT DEBTOR HAS THE RIGHT TO
ASSERT STATUTORY EXEMPTIONS | 3 |
| AGAINST CERTAIN INCOME OR ASSETS OF THE JUDGMENT
DEBTOR WHICH | 4 |
| MAY NOT BE USED TO SATISFY THE JUDGMENT IN THE AMOUNT STATED
| 5 |
| ABOVE:
| 6 |
| (1) Under Illinois or federal law, the exemptions of | 7 |
| personal property
owned by the debtor include the debtor's | 8 |
| equity interest, not to exceed $4,000
in value, in any | 9 |
| personal property as chosen by the debtor; Social Security | 10 |
| and
SSI benefits; public assistance benefits; unemployment | 11 |
| compensation benefits;
worker's compensation benefits; | 12 |
| veteran's benefits; circuit breaker property
tax relief | 13 |
| benefits; the debtor's equity interest, not to exceed | 14 |
| $2,400 in
value, in any one motor vehicle, and the debtor's | 15 |
| equity interest, not to
exceed $1,500 in value, in any | 16 |
| implements, professional books, or tools of the
trade of | 17 |
| the debtor.
| 18 |
| (2) Under Illinois law, every person is entitled to an | 19 |
| estate in
homestead, when it is owned and occupied as a | 20 |
| residence, to the extent in value
of $15,000, which | 21 |
| homestead is exempt from judgment.
| 22 |
| (3) Under Illinois law, the amount of wages that may be | 23 |
| applied toward a
judgment is limited to the lesser of (i) | 24 |
| 15% of gross weekly wages or (ii) the
amount by which | 25 |
| disposable earnings for a week exceed the total of 45 times | 26 |
| the
federal minimum hourly wage or, under a wage deduction |
|
|
|
SB0229 Enrolled |
- 38 - |
LRB095 07909 AJO 28071 b |
|
| 1 |
| summons served on or after January 1, 2006, the Illinois | 2 |
| minimum hourly wage, whichever is greater.
| 3 |
| (4) Under federal law, the amount of wages that may be | 4 |
| applied toward a
judgment is limited to the lesser of (i) | 5 |
| 25% of disposable earnings for a week
or (ii) the amount by | 6 |
| which disposable earnings for a week exceed 30 times the
| 7 |
| federal minimum hourly wage.
| 8 |
| (5) Pension and retirement benefits and refunds may be | 9 |
| claimed as exempt
under Illinois law.
| 10 |
| The judgment debtor may have other possible exemptions | 11 |
| under the law.
| 12 |
| THE JUDGMENT DEBTOR HAS THE RIGHT AT THE CITATION HEARING | 13 |
| TO DECLARE EXEMPT
CERTAIN INCOME OR ASSETS OR BOTH. The | 14 |
| judgment debtor also has the right to
seek a declaration at an | 15 |
| earlier date, by notifying the clerk in writing at
(insert | 16 |
| address of clerk). When so notified, the Clerk of the Court | 17 |
| will
obtain a prompt hearing date from the court and will
| 18 |
| provide the necessary forms that must be prepared by the | 19 |
| judgment debtor or the
attorney for the judgment debtor and | 20 |
| sent to the judgment creditor and the
judgment creditor's | 21 |
| attorney regarding the time and location of the hearing.
This | 22 |
| notice may be sent by regular first class mail."
| 23 |
| (c) When assets or income of the judgment debtor not exempt | 24 |
| from
the satisfaction of a judgment, a deduction order or | 25 |
| garnishment are
discovered, the court may, by appropriate order | 26 |
| or judgment:
|
|
|
|
SB0229 Enrolled |
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LRB095 07909 AJO 28071 b |
|
| 1 |
| (1) Compel the judgment debtor to deliver up, to be | 2 |
| applied in
satisfaction of the judgment, in whole or in | 3 |
| part, money, choses in
action, property or effects in his | 4 |
| or her possession or control, so discovered,
capable of | 5 |
| delivery and to which his or her title or right of | 6 |
| possession is not
substantially disputed.
| 7 |
| (2) Compel the judgment debtor to pay to the judgment | 8 |
| creditor or
apply on the judgment, in installments, a | 9 |
| portion of his or her income, however
or whenever earned or | 10 |
| acquired, as the court may deem proper, having due
regard | 11 |
| for the reasonable requirements of the judgment debtor and | 12 |
| his or her
family, if dependent upon him or her, as well as | 13 |
| any payments required to be
made by prior order of court or | 14 |
| under wage assignments outstanding; provided
that the | 15 |
| judgment debtor shall not be compelled to pay income which | 16 |
| would be
considered exempt as wages under the Wage | 17 |
| Deduction Statute. The court may
modify an order for | 18 |
| installment payments, from time to time, upon application
| 19 |
| of either party upon notice to the other.
| 20 |
| (3) Compel any person cited, other than the judgment | 21 |
| debtor, to
deliver up any assets so discovered, to be | 22 |
| applied in satisfaction of
the judgment, in whole or in | 23 |
| part, when those assets are held under such
circumstances | 24 |
| that in an action by the judgment debtor he or she could | 25 |
| recover
them in specie or obtain a judgment for the | 26 |
| proceeds or value thereof as
for conversion or |
|
|
|
SB0229 Enrolled |
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LRB095 07909 AJO 28071 b |
|
| 1 |
| embezzlement. A judgment creditor may recover a corporate | 2 |
| judgment debtor's property on behalf of the judgment debtor | 3 |
| for use of the judgment creditor by filing an appropriate | 4 |
| petition within the citation proceedings.
| 5 |
| (4) Enter any order upon or judgment against the person | 6 |
| cited that
could be entered in any garnishment proceeding.
| 7 |
| (5) Compel any person cited to execute an assignment of | 8 |
| any chose in
action or a conveyance of title to real or | 9 |
| personal property or resign memberships in exchanges, | 10 |
| clubs, or other entities , in the
same manner and to the | 11 |
| same extent as a court could do in any proceeding
by a | 12 |
| judgment creditor to enforce payment of a judgment or in | 13 |
| aid of
the enforcement of a judgment.
| 14 |
| (6) Authorize the judgment creditor to maintain an | 15 |
| action against
any person or corporation that, it appears | 16 |
| upon proof satisfactory to
the court, is indebted to the | 17 |
| judgment debtor, for the recovery of the
debt, forbid the | 18 |
| transfer or other disposition of the debt until an
action | 19 |
| can be commenced and prosecuted to judgment, direct that | 20 |
| the
papers or proof in the possession or control of the | 21 |
| debtor and necessary
in the prosecution of the action be | 22 |
| delivered to the creditor or
impounded in court, and | 23 |
| provide for the disposition of any moneys in
excess of the | 24 |
| sum required to pay the judgment creditor's judgment and
| 25 |
| costs allowed by the court.
| 26 |
| (d) No order or judgment shall be entered under subsection |
|
|
|
SB0229 Enrolled |
- 41 - |
LRB095 07909 AJO 28071 b |
|
| 1 |
| (c) in favor of
the judgment creditor unless there appears of | 2 |
| record a certification of
mailing showing that a copy of the | 3 |
| citation and a copy of the citation notice
was mailed to the | 4 |
| judgment debtor as required by subsection (b).
| 5 |
| (e) All property ordered to be delivered up shall, except | 6 |
| as
otherwise provided in this Section, be delivered to the | 7 |
| sheriff to be
collected by the sheriff or sold at public sale | 8 |
| and the proceeds thereof
applied towards the payment of costs | 9 |
| and the satisfaction of the judgment. If the judgment debtor's | 10 |
| property is of such a nature that it is not readily delivered | 11 |
| up to the sheriff for public sale or if another method of sale | 12 |
| is more appropriate to liquidate the property or enhance its | 13 |
| value at sale, the court may order the sale of such property by | 14 |
| the debtor, third party respondent, or by a selling agent other | 15 |
| than the sheriff upon such terms as are just and equitable. The | 16 |
| proceeds of sale, after deducting reasonable and necessary | 17 |
| expenses, are to be turned over to the creditor and applied to | 18 |
| the balance due on the judgment.
| 19 |
| (f) (1) The citation may prohibit the party to whom it is | 20 |
| directed from
making or allowing any transfer or other | 21 |
| disposition of, or interfering with,
any property not | 22 |
| exempt from the enforcement of a judgment therefrom, a
| 23 |
| deduction order or garnishment, belonging to the judgment | 24 |
| debtor or to which he
or she may be entitled or which may | 25 |
| thereafter be acquired by or become due to
him or her, and | 26 |
| from paying over or otherwise disposing of any moneys not |
|
|
|
SB0229 Enrolled |
- 42 - |
LRB095 07909 AJO 28071 b |
|
| 1 |
| so
exempt which are due or to become due to the judgment | 2 |
| debtor, until the further
order of the court or the | 3 |
| termination of the proceeding, whichever occurs
first. The | 4 |
| third party may not be obliged to withhold the payment of | 5 |
| any
moneys beyond double the amount of the balance due | 6 |
| sought to be enforced by the
judgment creditor. The court | 7 |
| may punish any party who violates the restraining
provision | 8 |
| of a citation as and for a contempt, or if the party is a | 9 |
| third party
may enter judgment against him or her in the | 10 |
| amount of the unpaid portion of
the judgment and costs | 11 |
| allowable under this Section, or in the amount of the
value | 12 |
| of the property transferred, whichever is lesser.
| 13 |
| (2) The court may enjoin any person, whether or not a | 14 |
| party to the
supplementary proceeding, from making or | 15 |
| allowing any transfer or other
disposition of, or | 16 |
| interference with, the property of the judgment
debtor not | 17 |
| exempt from the enforcement of a judgment, a deduction | 18 |
| order or
garnishment, or the property or debt not so exempt | 19 |
| concerning which any
person is required to attend and be | 20 |
| examined until further direction in the
premises. The | 21 |
| injunction order shall remain in effect until vacated by | 22 |
| the
court or until the proceeding is terminated, whichever | 23 |
| first occurs.
| 24 |
| (g) If it appears that any property, chose in action, | 25 |
| credit or
effect discovered, or any interest therein, is | 26 |
| claimed by any person, the court
shall, as in garnishment |
|
|
|
SB0229 Enrolled |
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LRB095 07909 AJO 28071 b |
|
| 1 |
| proceedings, permit or require the claimant to appear
and | 2 |
| maintain his or her right. The rights of the person cited
and | 3 |
| the rights of any adverse claimant shall be asserted and | 4 |
| determined
pursuant to the law relating to garnishment | 5 |
| proceedings.
| 6 |
| (h) Costs in proceedings authorized by this Section shall | 7 |
| be
allowed, assessed and paid in accordance with rules, | 8 |
| provided that if the
court determines, in its discretion, that | 9 |
| costs incurred by the judgment
creditor were improperly | 10 |
| incurred, those costs shall be paid by the judgment
creditor.
| 11 |
| (i) This Section is in addition to and does not affect
| 12 |
| enforcement of judgments or proceedings supplementary thereto, | 13 |
| by any other
methods now or hereafter provided by law.
| 14 |
| (j) This Section does not grant the power to any court to | 15 |
| order
installment or other payments from, or compel the sale, | 16 |
| delivery,
surrender, assignment or conveyance of any property | 17 |
| exempt by statute
from the enforcement of a judgment thereon, a | 18 |
| deduction order, garnishment,
attachment, sequestration, | 19 |
| process or other levy or seizure.
| 20 |
| (k) (Blank).
| 21 |
| (k-5) If the court determines that any property held by a | 22 |
| third party respondent is wages pursuant to Section 12-801, the | 23 |
| court shall proceed as if a wage deduction proceeding had been | 24 |
| filed and proceed to enter such necessary and proper orders as | 25 |
| would have been entered in a wage deduction proceeding | 26 |
| including but not limited to the granting of the statutory |
|
|
|
SB0229 Enrolled |
- 44 - |
LRB095 07909 AJO 28071 b |
|
| 1 |
| exemptions allowed by Section 12-803 and all other remedies | 2 |
| allowed plaintiff and defendant pursuant to Part 8 of Article | 3 |
| 12 of this Act.
| 4 |
| (l) At any citation hearing at which the judgment debtor | 5 |
| appears and seeks
a declaration that certain of his or her | 6 |
| income or assets are exempt, the court
shall proceed to | 7 |
| determine whether the property which the judgment debtor
| 8 |
| declares to be exempt is exempt from judgment. At any time | 9 |
| before the return
date specified on the citation, the judgment | 10 |
| debtor may request, in writing, a
hearing to declare exempt | 11 |
| certain income and assets by notifying the clerk of
the court | 12 |
| before that time, using forms as may be provided by the clerk | 13 |
| of the
court. The clerk of the court will obtain a prompt | 14 |
| hearing date from the
court and will provide the necessary | 15 |
| forms that must be prepared by the
judgment debtor or the | 16 |
| attorney for the judgment debtor and sent to the
judgment | 17 |
| creditor, or the judgment creditor's attorney, regarding the | 18 |
| time and
location of the hearing. This notice may be sent by | 19 |
| regular first class mail.
At the hearing, the court shall | 20 |
| immediately, unless for good cause shown that
the hearing is to | 21 |
| be continued, shall proceed to determine whether the property
| 22 |
| which the judgment debtor declares to be exempt is exempt from | 23 |
| judgment. The
restraining provisions of subsection (f) shall | 24 |
| not apply to any property
determined by the court to be exempt.
| 25 |
| (m) The judgment or balance due on the judgment becomes a | 26 |
| lien when a
citation is served in accordance with subsection |
|
|
|
SB0229 Enrolled |
- 45 - |
LRB095 07909 AJO 28071 b |
|
| 1 |
| (a) of this Section. The lien
binds nonexempt personal | 2 |
| property, including money, choses in action, and
effects of the | 3 |
| judgment debtor as follows:
| 4 |
| (1) When the citation is directed against the judgment | 5 |
| debtor, upon all
personal property belonging to the | 6 |
| judgment debtor in the possession or control
of the | 7 |
| judgment debtor or which may thereafter be acquired or come | 8 |
| due to the
judgment debtor to the time of the disposition | 9 |
| of the citation.
| 10 |
| (2) When the citation is directed against a third | 11 |
| party, upon all personal
property belonging to the judgment | 12 |
| debtor in the possession or control of the
third party or | 13 |
| which thereafter may be acquired or come due the judgment | 14 |
| debtor
and comes into the possession or control of the | 15 |
| third party to the time of the
disposition of the citation.
| 16 |
| The lien established under this Section does not affect the | 17 |
| rights of
citation respondents in property prior to the service | 18 |
| of the citation upon them
and does not affect the rights of | 19 |
| bona fide purchasers or lenders without
notice of the citation. | 20 |
| The lien is effective for the period specified by
Supreme Court | 21 |
| Rule.
| 22 |
| This subsection (m), as added by Public Act 88-48, is a | 23 |
| declaration of
existing law.
| 24 |
| (n) If any provision of this Act or its application to any | 25 |
| person or
circumstance is held invalid, the invalidity of that | 26 |
| provision or application
does not affect the provisions or |
|
|
|
SB0229 Enrolled |
- 46 - |
LRB095 07909 AJO 28071 b |
|
| 1 |
| applications of the Act that can be given
effect without the | 2 |
| invalid provision or application.
| 3 |
| (Source: P.A. 94-293, eff. 1-1-06; 94-306, eff. 1-1-06; revised | 4 |
| 8-19-05.)
| 5 |
| (735 ILCS 5/5-126.5 new)
| 6 |
| Sec. 5-126.5. Expenses. The plaintiff shall be allowed to | 7 |
| recover as costs those expenses required by law or a law | 8 |
| enforcement or court officer for the purposes of enforcing a | 9 |
| judgment including levy bonds, replevin bonds, certification | 10 |
| of court orders, recording certified orders or memoranda of | 11 |
| judgment, and expenses for those assisting a sheriff or other | 12 |
| court officer in enforcing court orders including, but not | 13 |
| limited to, orders for possession, replevin orders, and | 14 |
| personal property levies.
| 15 |
| (735 ILCS 5/12-501) (from Ch. 110, par. 12-501)
| 16 |
| Sec. 12-501. Registration of Federal judgments. Judgments | 17 |
| of courts of
the United States held,
within this State, and all | 18 |
| process, returns, certificates of the levy of a
process, and | 19 |
| records of such courts may be registered, recorded, docketed,
| 20 |
| indexed or otherwise dealt with in, the public offices of this | 21 |
| State, so
as to make them conform to the rules and requirements | 22 |
| relating to
judgments of courts of this State. A certified copy | 23 |
| of a federal judgment order entered in this State may be filed | 24 |
| in any circuit court and shall be afforded recognition as if it |
|
|
|
SB0229 Enrolled |
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LRB095 07909 AJO 28071 b |
|
| 1 |
| were a judgment entered in any other circuit court of this | 2 |
| State.
| 3 |
| (Source: P.A. 83-707.)
| 4 |
| (735 ILCS 5/12-803) (from Ch. 110, par. 12-803)
| 5 |
| Sec. 12-803. Wages
Maximum wages subject to collection. The | 6 |
| maximum wages,
salary, commissions and bonuses subject to | 7 |
| collection under a deduction
order, for any work week shall be
| 8 |
| not exceed the lesser of (1) 15% of such
gross amount paid for | 9 |
| that week or (2) the amount by which disposable
earnings for a | 10 |
| week exceed 45 times the Federal Minimum Hourly Wage
prescribed | 11 |
| by Section 206(a)(1) of Title 29 of the United States Code, as
| 12 |
| amended, or, under a wage deduction summons served on or after | 13 |
| January 1, 2006, the minimum hourly wage prescribed by Section | 14 |
| 4 of the Minimum Wage Law, whichever is greater, in effect at | 15 |
| the time the amounts are payable. This provision
(and no other) | 16 |
| applies irrespective of the place where the compensation was
| 17 |
| earned or payable and the State where the employee resides. No | 18 |
| amounts
required by law to be withheld may be taken from the | 19 |
| amount collected by
the creditor. The term "disposable | 20 |
| earnings" means that part of the
earnings of any individual | 21 |
| remaining after the deduction from those
earnings of any | 22 |
| amounts required by law to be withheld.
| 23 |
| (Source: P.A. 94-306, eff. 1-1-06.)
| 24 |
| (735 ILCS 5/12-808) (from Ch. 110, par. 12-808)
|
|
|
|
SB0229 Enrolled |
- 48 - |
LRB095 07909 AJO 28071 b |
|
| 1 |
| Sec. 12-808. Duty of employer.
| 2 |
| (a) An employer served as herein provided shall pay the
| 3 |
| employee the amount of his or her exempt wages.
| 4 |
| (b) To the extent of the amount due upon the judgment and | 5 |
| costs, the
employer shall hold, subject to order of court, any | 6 |
| non-exempt wages due or
which subsequently come due. The | 7 |
| judgment or balance due thereon is
a lien on wages due at the | 8 |
| time of the service of summons, and such lien
shall continue as | 9 |
| to subsequent earnings until the total amount due upon
the | 10 |
| judgment and costs is paid, except that such lien on subsequent
| 11 |
| earnings shall terminate sooner if the employment relationship | 12 |
| is
terminated or if the underlying judgment is vacated or | 13 |
| modified.
| 14 |
| (b-5) If the employer is a federal agency employer and the | 15 |
| creditor is
represented by an attorney, then the employer, upon | 16 |
| service of summons and to
the extent of the amount due upon the | 17 |
| judgment and costs, shall commence to pay
over to the attorney | 18 |
| for the judgment creditor any non-exempt wages due or that
| 19 |
| subsequently come due. The attorney for the judgment creditor | 20 |
| shall thereafter
hold the deducted wages subject to further | 21 |
| order of the court and shall make
answer to the court regarding | 22 |
| amounts received from the federal agency
employer. The federal | 23 |
| agency employer's periodic payments shall be considered
a | 24 |
| sufficient answer to the interrogatories.
| 25 |
| (c) Except as provided in subsection (b-5),
the employer | 26 |
| shall file, on or before the return date or within the
further |
|
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| time that the court for cause may allow, a written answer under
| 2 |
| oath to the interrogatories, setting forth the amount due as | 3 |
| wages to
the judgment debtor for the payroll periods ending | 4 |
| immediately prior to the service of the summons and a summary | 5 |
| of the
computation used to determine the amount of non-exempt | 6 |
| wages. Except as
provided in subsection (b-5), the
employer | 7 |
| shall mail by first class mail or hand deliver a copy of the
| 8 |
| answer to the judgment debtor at the address specified in the | 9 |
| affidavit
filed under Section 12-805 of this Act, or at any | 10 |
| other address or location
of the judgment debtor known to the | 11 |
| employer.
| 12 |
| A lien obtained hereunder shall have priority over any | 13 |
| subsequent
lien obtained hereunder, except that liens for the | 14 |
| support of a spouse
or dependent children shall have priority | 15 |
| over all other liens obtained
hereunder. Subsequent summonses | 16 |
| shall be effective in the order in which they are served.
| 17 |
| (d) The Illinois Supreme Court may by rule allow an | 18 |
| employer to file
answers to interrogatories by facsimile | 19 |
| transmission.
| 20 |
| (e) Pursuant to answer under oath to the interrogatories by | 21 |
| the employer,
an order shall be entered compelling the employer | 22 |
| to deduct from wages of the
judgment debtor subject to | 23 |
| collection under a deduction order an amount which is
not to
| 24 |
| exceed the lesser of (i) 15% of the gross amount of the wages | 25 |
| or (ii) the
amount by which disposable earnings for a week | 26 |
| exceed 45 times the Federal
Minimum Hourly Wage prescribed by |
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| Section 206(a)(1) of Title 29 of the United
States Code, as | 2 |
| amended, in effect at the time the amounts are payable, for
| 3 |
| each pay period in which statutory exemptions under Section | 4 |
| 12-804 and child
support garnishments, if any, leave funds to | 5 |
| be remitted or, under a wage deduction summons served on or | 6 |
| after January 1, 2006, the minimum hourly wage prescribed by | 7 |
| Section 4 of the Minimum Wage Law, whichever is greater. The | 8 |
| order shall
further provide that deducted wages shall be | 9 |
| remitted to the creditor or
creditor's attorney on a monthly | 10 |
| basis.
| 11 |
| (f) If after the entry of a deduction order, the employer | 12 |
| ceases to remit funds to the plaintiff pursuant to the order | 13 |
| without a lawful excuse (which would terminate the employer's | 14 |
| obligation under the deduction order such as the debtor having | 15 |
| filed a bankruptcy, the debtor having left employment or the | 16 |
| employer having received service of a support order against the | 17 |
| judgment debtor having priority over the wage deduction | 18 |
| proceedings), the court shall, upon plaintiff's motion, enter a | 19 |
| conditional judgment against the employer for the balance due | 20 |
| on the judgment. The plaintiff may then issue a Summons After | 21 |
| Conditional Judgment. After service of the Summons After | 22 |
| Conditional Judgment, the employer may show cause why the | 23 |
| conditional judgment, or some portion thereof should not be | 24 |
| made a final judgment. If the employer shall fail to respond or | 25 |
| show cause why the conditional judgment or some portion thereof | 26 |
| should not be
made final, the court shall confirm the |
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| conditional judgment and make it final as to the employer plus | 2 |
| additional court costs.
| 3 |
| (Source: P.A. 94-306, eff. 1-1-06.)
| 4 |
| (735 ILCS 5/12-808.5)
| 5 |
| Sec. 12-808.5. Certification of judgment balance. Whenever | 6 |
| a wage
deduction order has not been fully satisfied by the end | 7 |
| of the first full
calendar quarter following the date of | 8 |
| service of the wage deduction
summons:
| 9 |
| (1) The judgment creditor or his attorney shall prepare | 10 |
| a certification
that states the amount of the judgment | 11 |
| remaining unsatisfied as of the last
calendar day of each | 12 |
| full calendar quarter for which the wage deduction order
| 13 |
| continues in effect.
| 14 |
| (2) The certification shall be mailed or delivered to | 15 |
| the employer by the
judgment creditor or his or her | 16 |
| attorney within 15 days after the end of each
calendar | 17 |
| quarter for which the wage deduction order continues in | 18 |
| effect. The
employer shall hand deliver or mail by first | 19 |
| class mail a copy of the
certification to the judgment | 20 |
| debtor at the judgment debtor's last known
address. | 21 |
| (3) In the event that the plaintiff fails to provide | 22 |
| the certification required by this Section, the employer | 23 |
| must continue to withhold funds from the defendant's wages | 24 |
| but may hold the funds without remitting to the plaintiff | 25 |
| until such time as it receives a certification required by |
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| this Section. A certification of judgment balance need not | 2 |
| be filed with the court. | 3 |
| (4) Any party to the wage deduction proceeding may, | 4 |
| upon motion with notice to all other parties, ask the court | 5 |
| to review the balance due claimed by the judgment creditor.
| 6 |
| (Source: P.A. 90-677, eff. 1-1-99.)
| 7 |
| (735 ILCS 5/12-814) (from Ch. 110, par. 12-814)
| 8 |
| Sec. 12-814. Costs and fees.
| 9 |
| (a) The costs of obtaining a deduction order shall be | 10 |
| charged to the
judgment debtor, unless the court determines, in | 11 |
| its discretion, that costs
incurred by the judgment creditor | 12 |
| were improperly incurred, in which case
those costs shall be | 13 |
| paid by the judgment creditor.
| 14 |
| (b) No fee shall be paid by an employer for filing his or | 15 |
| her appearance,
answer or satisfaction of judgment against him | 16 |
| or her.
| 17 |
| (c) A fee consisting of the greater of $12 or 2% of the | 18 |
| amount
required to be deducted by any deduction order or series | 19 |
| of deduction
orders arising out of the same judgment debt shall | 20 |
| be allowed and paid
to the employer, and the amount so paid | 21 |
| shall be charged to the judgment
debtor.
| 22 |
| (d) No other fee shall be paid to an employer at the time | 23 |
| of service
of the summons or at any other time thereafter | 24 |
| unless he or she is subpoenaed
to appear as a witness, in which | 25 |
| case he or she is entitled to witness fees as
in other civil |
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| cases.
| 2 |
| (Source: P.A. 87-569.)
| 3 |
| (735 ILCS 5/19-117) (from Ch. 110, par. 19-117)
| 4 |
| Sec. 19-117. Service upon defendant. It shall be the duty | 5 |
| of the officer
having an order for
replevin, to serve the same | 6 |
| upon the defendant, whether the property is
found or delivered | 7 |
| to him or her, or not, unless, when none of the property is
| 8 |
| found, the officer is otherwise directed by the plaintiff or | 9 |
| his or her
attorney or agent.
| 10 |
| If the defendant fails to deliver up to the sheriff the | 11 |
| chattel which is the subject of the order for replevin and the | 12 |
| plaintiff has a reasonable belief as to where the chattel is | 13 |
| sequestered, the court may authorize the sheriff to use | 14 |
| reasonable force to enter into the property to recover same | 15 |
| upon such terms and conditions as the court may direct.
| 16 |
| (Source: P.A. 82-280.)
| 17 |
| (735 ILCS 5/19-123) (from Ch. 110, par. 19-123)
| 18 |
| Sec. 19-123. Judgment against plaintiff. If the plaintiff | 19 |
| in an action
of replevin obtains an order for replevin and
| 20 |
| fails to prosecute
the action with effect, or allows a | 21 |
| voluntary or involuntary dismissal,
or if the right of property | 22 |
| is adjudged against the plaintiff, judgment shall be entered
| 23 |
| for a return of the property if such property has been | 24 |
| delivered
to the plaintiff, and damages for the use thereof |
|
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| from the time it was
taken until a return thereof is made, | 2 |
| unless the plaintiff shall,
in the meantime, have become | 3 |
| entitled to the possession of the property,
in which event | 4 |
| judgment may be entered against the plaintiff for costs and
| 5 |
| such damage as the
defendant has sustained; or if the property | 6 |
| was held for the
payment of any money, the judgment may be in | 7 |
| the alternative that the
plaintiff pay the amount for which the | 8 |
| same was rightfully held, with
proper damages, within a given | 9 |
| time, or make return of the property in
case such property was | 10 |
| delivered to the plaintiff.
| 11 |
| (Source: P.A. 82-280.)
| 12 |
| (735 ILCS 5/19-129 new) | 13 |
| Sec. 19-129. Mobile homes. If the chattel which is the | 14 |
| subject of the replevin action is a mobile home and is occupied | 15 |
| by the defendant or other persons, the court may issue a | 16 |
| forcible order directing the sheriff to remove the personal | 17 |
| property of the defendant or occupants from the mobile home | 18 |
| provided that the defendants and unknown occupants are given | 19 |
| notice of plaintiff's intent to seek a forcible order and that | 20 |
| upon entry of said order for possession, the execution is | 21 |
| stayed for a reasonable time as determined by the court so as | 22 |
| to allow the defendants and unknown occupants to remove their | 23 |
| property from the mobile home.
|
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|
INDEX
| 2 |
|
Statutes amended in order of appearance
|
| 3 |
| 735 ILCS 5/2-1402 |
from Ch. 110, par. 2-1402 |
| 4 |
| 735 ILCS 5/5-126.5 new |
|
| 5 |
| 735 ILCS 5/12-501 |
from Ch. 110, par. 12-501 |
| 6 |
| 735 ILCS 5/12-803 |
from Ch. 110, par. 12-803 |
| 7 |
| 735 ILCS 5/12-808 |
from Ch. 110, par. 12-808 |
| 8 |
| 735 ILCS 5/12-808.5 |
|
| 9 |
| 735 ILCS 5/12-814 |
from Ch. 110, par. 12-814 |
| 10 |
| 735 ILCS 5/19-117 |
from Ch. 110, par. 19-117 |
| 11 |
| 735 ILCS 5/19-123 |
from Ch. 110, par. 19-123 |
| 12 |
| 735 ILCS 5/19-129 new |
|
| |
|