Full Text of SB3971 102nd General Assembly
SB3971eng 102ND GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning regulation.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Banking Act is amended by changing | 5 | | Sections 48.1 and 48.6 as follows:
| 6 | | (205 ILCS 5/48.1) (from Ch. 17, par. 360)
| 7 | | Sec. 48.1. Customer financial records; confidentiality.
| 8 | | (a) For the purpose of this Section, the term "financial | 9 | | records" means any
original, any copy, or any summary of:
| 10 | | (1) a document granting signature
authority over a | 11 | | deposit or account;
| 12 | | (2) a statement, ledger card or other
record on any | 13 | | deposit or account, which shows each transaction in or | 14 | | with
respect to that account;
| 15 | | (3) a check, draft or money order drawn on a bank
or | 16 | | issued and payable by a bank; or
| 17 | | (4) any other item containing
information pertaining | 18 | | to any relationship established in the ordinary
course of | 19 | | a bank's business between a bank and its customer, | 20 | | including
financial statements or other financial | 21 | | information provided by the customer.
| 22 | | (b) This Section does not prohibit:
| 23 | | (1) The preparation, examination, handling or |
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| 1 | | 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
| 5 | | audit.
| 6 | | (2) The examination of any financial records by, or | 7 | | the furnishing of
financial records by a bank to, any | 8 | | officer, employee or agent of (i) the
Commissioner of | 9 | | Banks and Real Estate, (ii) after May
31, 1997, a state | 10 | | regulatory authority authorized to examine a branch of a
| 11 | | State bank located in another state, (iii) the Comptroller | 12 | | of the Currency,
(iv) the Federal Reserve Board, or (v) | 13 | | the Federal Deposit Insurance
Corporation for use solely | 14 | | in the exercise of his duties as an officer,
employee, or | 15 | | agent.
| 16 | | (3) The publication of data furnished from financial | 17 | | records
relating to customers where the data cannot be | 18 | | identified to any
particular customer or account.
| 19 | | (4) The making of reports or returns required under | 20 | | Chapter 61 of
the Internal Revenue Code of 1986.
| 21 | | (5) Furnishing information concerning the dishonor of | 22 | | any negotiable
instrument permitted to be disclosed under | 23 | | the Uniform Commercial Code.
| 24 | | (6) The exchange in the regular course of business of | 25 | | (i) credit
information
between a bank and other banks or | 26 | | financial institutions or commercial
enterprises, directly |
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| 1 | | or through a consumer reporting agency or (ii)
financial | 2 | | records or information derived from financial records | 3 | | between a bank
and other banks or financial institutions | 4 | | or commercial enterprises for the
purpose of conducting | 5 | | due diligence pursuant to a purchase or sale involving
the | 6 | | bank or assets or liabilities of the bank.
| 7 | | (7) The furnishing of information to the appropriate | 8 | | law enforcement
authorities where the bank reasonably | 9 | | believes it has been the victim of a
crime.
| 10 | | (8) The furnishing of information under the Revised | 11 | | Uniform
Unclaimed Property Act.
| 12 | | (9) The furnishing of information under the Illinois | 13 | | Income Tax Act and
the Illinois Estate and | 14 | | Generation-Skipping Transfer Tax Act.
| 15 | | (10) The furnishing of information under the federal | 16 | | Currency
and Foreign Transactions Reporting Act Title 31, | 17 | | United States
Code, Section 1051 et seq.
| 18 | | (11) The furnishing of information under any other | 19 | | statute that
by its terms or by regulations promulgated | 20 | | thereunder requires the disclosure
of financial records | 21 | | other than by subpoena, summons, warrant, or court order.
| 22 | | (12) The furnishing of information about the existence | 23 | | of an account
of a person to a judgment creditor of that | 24 | | person who has made a written
request for that | 25 | | information.
| 26 | | (13) The exchange in the regular course of business of |
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| 1 | | information
between commonly owned banks in connection | 2 | | with a transaction authorized
under paragraph (23) of
| 3 | | Section 5 and conducted at an affiliate facility.
| 4 | | (14) The furnishing of information in accordance with | 5 | | the federal
Personal Responsibility and Work Opportunity | 6 | | Reconciliation Act of 1996.
Any bank governed by this Act | 7 | | shall enter into an agreement for data
exchanges with a | 8 | | State agency provided the State agency
pays to the bank a | 9 | | reasonable fee not to exceed its
actual cost incurred. A | 10 | | bank providing
information in accordance with this item | 11 | | shall not be liable to any account
holder or other person | 12 | | for any disclosure of information to a State agency, for
| 13 | | encumbering or surrendering any assets held by the bank in | 14 | | response to a lien
or order to withhold and deliver issued | 15 | | by a State agency, or for any other
action taken pursuant | 16 | | to this item, including individual or mechanical errors,
| 17 | | provided the action does not constitute gross negligence | 18 | | or willful misconduct.
A bank shall have no obligation to | 19 | | hold, encumber, or surrender assets until
it has been | 20 | | served with a subpoena, summons, warrant, court or | 21 | | administrative
order,
lien, or levy.
| 22 | | (15) The exchange in the regular course of business of | 23 | | information
between
a bank and any commonly owned | 24 | | affiliate of the bank, subject to the provisions
of the | 25 | | Financial Institutions Insurance Sales Law.
| 26 | | (16) The furnishing of information to law enforcement |
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| 1 | | authorities, the
Illinois Department on
Aging and its | 2 | | regional administrative and provider agencies, the | 3 | | Department of
Human Services Office
of Inspector General, | 4 | | or public guardians: (i) upon subpoena by the | 5 | | investigatory entity or the guardian, or (ii) if there is | 6 | | suspicion by the bank that a customer
who is an elderly | 7 | | person or person with a disability has been or may become | 8 | | the victim of financial exploitation.
For the purposes of | 9 | | this
item (16), the term: (i) "elderly person" means a | 10 | | person who is 60 or more
years of age, (ii) "disabled
| 11 | | person" means a person who has or reasonably appears to | 12 | | the bank to have a
physical or mental
disability that | 13 | | impairs his or her ability to seek or obtain protection | 14 | | from or
prevent financial
exploitation, and (iii) | 15 | | "financial exploitation" means tortious or illegal use
of | 16 | | the assets or resources of
an elderly or disabled person, | 17 | | and includes, without limitation,
misappropriation of the | 18 | | elderly or
disabled person's assets or resources by undue | 19 | | influence, breach of fiduciary
relationship, intimidation,
| 20 | | fraud, deception, extortion, or the use of assets or | 21 | | resources in any manner
contrary to law. A bank or
person | 22 | | furnishing information pursuant to this item (16) shall be | 23 | | entitled to
the same rights and
protections as a person | 24 | | furnishing information under the Adult Protective Services | 25 | | Act and the Illinois
Domestic Violence Act of 1986.
| 26 | | (17) The disclosure of financial records or |
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| 1 | | information as necessary to
effect, administer, or enforce | 2 | | a transaction requested or authorized by the
customer, or | 3 | | in connection with:
| 4 | | (A) servicing or processing a financial product or | 5 | | service requested or
authorized by the customer;
| 6 | | (B) maintaining or servicing a customer's account | 7 | | with the bank; or
| 8 | | (C) a proposed or actual securitization or | 9 | | secondary market sale
(including sales of servicing | 10 | | rights) related to a
transaction of a customer.
| 11 | | Nothing in this item (17), however, authorizes the | 12 | | sale of the financial
records or information of a customer | 13 | | without the consent of the customer.
| 14 | | (18) The disclosure of financial records or | 15 | | information as necessary to
protect against actual or | 16 | | potential fraud, unauthorized transactions, claims,
or | 17 | | other liability.
| 18 | | (19)(A) The disclosure of financial records or | 19 | | information
related to a private label credit program | 20 | | between a financial
institution and a private label party | 21 | | in connection with that
private label credit program. Such | 22 | | information is limited to
outstanding balance, available | 23 | | credit, payment and performance
and account history, | 24 | | product references, purchase information,
and information
| 25 | | related to the identity of the customer.
| 26 | | (B)(1) For purposes of this paragraph (19) of |
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| 1 | | subsection
(b) of Section 48.1, a "private label credit | 2 | | program" means a
credit program involving a financial | 3 | | institution and a private label
party that is used by a | 4 | | customer of the financial institution and the
private | 5 | | label party primarily for payment for goods or services
| 6 | | sold, manufactured, or distributed by a private label | 7 | | party. | 8 | | (2) For purposes of this paragraph (19) of subsection | 9 | | (b)
of Section 48.1, a "private label party" means, with | 10 | | respect to a
private label credit program, any of the | 11 | | following: a
retailer, a merchant, a manufacturer, a trade | 12 | | group,
or any such person's affiliate, subsidiary, member,
| 13 | | agent, or service provider. | 14 | | (20)(A) The furnishing of financial records of a | 15 | | customer to the Department to aid the Department's initial | 16 | | determination or subsequent re-determination of the | 17 | | customer's eligibility for Medicaid and Medicaid long-term | 18 | | care benefits for long-term care services, provided that | 19 | | the bank receives the written consent and authorization of | 20 | | the customer, which shall: | 21 | | (1) have the customer's signature notarized; | 22 | | (2) be signed by at least one witness who | 23 | | certifies that he or she believes the customer to be of | 24 | | sound mind and memory; | 25 | | (3) be tendered to the bank at the earliest | 26 | | practicable time following its execution, |
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| 1 | | certification, and notarization; | 2 | | (4) specifically limit the disclosure of the | 3 | | customer's financial records to the Department; and | 4 | | (5) be in substantially the following form: | 5 | | CUSTOMER CONSENT AND AUTHORIZATION | 6 | | FOR RELEASE OF FINANCIAL RECORDS | 7 | | I, ......................................., hereby authorize | 8 | | (Name of Customer) | 9 | | ............................................................. | 10 | | (Name of Financial Institution) | 11 | | ............................................................. | 12 | | (Address of Financial Institution) | 13 | | to disclose the following financial records: | 14 | | any and all information concerning my deposit, savings, money | 15 | | market, certificate of deposit, individual retirement, | 16 | | retirement plan, 401(k) plan, incentive plan, employee benefit | 17 | | plan, mutual fund and loan accounts (including, but not | 18 | | limited to, any indebtedness or obligation for which I am a | 19 | | co-borrower, co-obligor, guarantor, or surety), and any and | 20 | | all other accounts in which I have an interest and any other |
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| 1 | | information regarding me in the possession of the Financial | 2 | | Institution, | 3 | | to the Illinois Department of Human Services or the Illinois | 4 | | Department of Healthcare and Family Services, or both ("the | 5 | | Department"), for the following purpose(s): | 6 | | to aid in the initial determination or re-determination by the | 7 | | State of Illinois of my eligibility for Medicaid long-term | 8 | | care benefits, pursuant to applicable law. | 9 | | I understand that this Consent and Authorization may be | 10 | | revoked by me in writing at any time before my financial | 11 | | records, as described above, are disclosed, and that this | 12 | | Consent and Authorization is valid until the Financial | 13 | | Institution receives my written revocation. This Consent and | 14 | | Authorization shall constitute valid authorization for the | 15 | | Department identified above to inspect all such financial | 16 | | records set forth above, and to request and receive copies of | 17 | | such financial records from the Financial Institution (subject | 18 | | to such records search and reproduction reimbursement policies | 19 | | as the Financial Institution may have in place). An executed | 20 | | copy of this Consent and Authorization shall be sufficient and | 21 | | as good as the original and permission is hereby granted to | 22 | | honor a photostatic or electronic copy of this Consent and | 23 | | Authorization. Disclosure is strictly limited to the |
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| 1 | | Department identified above and no other person or entity | 2 | | shall receive my financial records pursuant to this Consent | 3 | | and Authorization. By signing this form, I agree to indemnify | 4 | | and hold the Financial Institution harmless from any and all | 5 | | claims, demands, and losses, including reasonable attorneys | 6 | | fees and expenses, arising from or incurred in its reliance on | 7 | | this Consent and Authorization. As used herein, "Customer" | 8 | | shall mean "Member" if the Financial Institution is a credit | 9 | | union. | 10 | | ....................... ...................... | 11 | | (Date) (Signature of Customer) | 12 | | ...................... | 13 | | ...................... | 14 | | (Address of Customer) | 15 | | ...................... | 16 | | (Customer's birth date) | 17 | | (month/day/year) | 18 | | The undersigned witness certifies that ................., | 19 | | known to me to be the same person whose name is subscribed as | 20 | | the customer to the foregoing Consent and Authorization, | 21 | | appeared before me and the notary public and acknowledged | 22 | | signing and delivering the instrument as his or her free and |
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| 1 | | voluntary act for the uses and purposes therein set forth. I | 2 | | believe him or her to be of sound mind and memory. The | 3 | | undersigned witness also certifies that the witness is not an | 4 | | owner, operator, or relative of an owner or operator of a | 5 | | long-term care facility in which the customer is a patient or | 6 | | resident. | 7 | | Dated: ................. ...................... | 8 | | (Signature of Witness) | 9 | | ...................... | 10 | | (Print Name of Witness) | 11 | | ...................... | 12 | | ...................... | 13 | | (Address of Witness) | 14 | | State of Illinois) | 15 | | ) ss. | 16 | | County of .......) | 17 | | The undersigned, a notary public in and for the above county | 18 | | and state, certifies that .........., known to me to be the | 19 | | same person whose name is subscribed as the customer to the | 20 | | foregoing Consent and Authorization, appeared before me | 21 | | together with the witness, .........., in person and |
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| 1 | | acknowledged signing and delivering the instrument as the free | 2 | | and voluntary act of the customer for the uses and purposes | 3 | | therein set forth. | 4 | | Dated: ....................................................... | 5 | | Notary Public: ............................................... | 6 | | My commission expires: ....................................... | 7 | | (B) In no event shall the bank distribute the | 8 | | customer's financial records to the long-term care | 9 | | facility from which the customer seeks initial or | 10 | | continuing residency or long-term care services. | 11 | | (C) A bank providing financial records of a customer | 12 | | in good faith relying on a consent and authorization | 13 | | executed and tendered in accordance with this paragraph | 14 | | (20) shall not be liable to the customer or any other | 15 | | person in relation to the bank's disclosure of the | 16 | | customer's financial records to the Department. The | 17 | | customer signing the consent and authorization shall | 18 | | indemnify and hold the bank harmless that relies in good | 19 | | faith upon the consent and authorization and incurs a loss | 20 | | because of such reliance. The bank recovering under this | 21 | | indemnification provision shall also be entitled to | 22 | | reasonable attorney's fees and the expenses of recovery. | 23 | | (D) A bank shall be reimbursed by the customer for all | 24 | | costs reasonably necessary and directly incurred in |
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| 1 | | searching for, reproducing, and disclosing a customer's | 2 | | financial records required or requested to be produced | 3 | | pursuant to any consent and authorization executed under | 4 | | this paragraph (20). The requested financial records shall | 5 | | be delivered to the Department within 10 days after | 6 | | receiving a properly executed consent and authorization or | 7 | | at the earliest practicable time thereafter if the | 8 | | requested records cannot be delivered within 10 days, but | 9 | | delivery may be delayed until the final reimbursement of | 10 | | all costs is received by the bank. The bank may honor a | 11 | | photostatic or electronic copy of a properly executed | 12 | | consent and authorization. | 13 | | (E) Nothing in this paragraph (20) shall impair, | 14 | | abridge, or abrogate the right of a customer to: | 15 | | (1) directly disclose his or her financial records | 16 | | to the Department or any other person; or | 17 | | (2) authorize his or her attorney or duly | 18 | | appointed agent to request and obtain the customer's | 19 | | financial records and disclose those financial records | 20 | | to the Department. | 21 | | (F) For purposes of this paragraph (20), "Department" | 22 | | means the Department of Human Services and the Department | 23 | | of Healthcare and Family Services or any successor | 24 | | administrative agency of either agency.
| 25 | | (c) Except as otherwise provided by this Act, a bank may | 26 | | not disclose to
any person, except to the customer or his
duly |
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| 1 | | authorized agent, any financial records or financial | 2 | | information
obtained from financial records relating to that | 3 | | customer of
that bank unless:
| 4 | | (1) the customer has authorized disclosure to the | 5 | | person;
| 6 | | (2) the financial records are disclosed in response to | 7 | | a lawful
subpoena, summons, warrant, citation to discover | 8 | | assets, or court order which meets the requirements
of | 9 | | subsection (d) of this Section; or
| 10 | | (3) the bank is attempting to collect an obligation | 11 | | owed to the bank
and the bank complies with the provisions | 12 | | of Section 2I of the Consumer
Fraud and Deceptive Business | 13 | | Practices Act.
| 14 | | (d) A bank shall disclose financial records under | 15 | | paragraph (2) of
subsection (c) of this Section under a lawful | 16 | | subpoena, summons, warrant, citation to discover assets, or
| 17 | | court order only after the bank sends mails a copy of the | 18 | | subpoena, summons, warrant, citation to discover assets,
or | 19 | | court order to the person establishing the relationship with | 20 | | the bank, if
living, and, otherwise the person's his personal | 21 | | representative, if known, at the person's his last known
| 22 | | address by first class mail, postage prepaid, through a | 23 | | third-party commercial carrier or courier with delivery charge | 24 | | fully prepaid, by hand delivery, or by electronic delivery at | 25 | | an email address on file with the bank (if the person | 26 | | establishing the relationship with the bank has consented to |
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| 1 | | receive electronic delivery and, if the person establishing | 2 | | the relationship with the bank is a consumer, the person has | 3 | | consented under the consumer consent provisions set forth in | 4 | | Section 7001 of Title 15 of the United States Code), unless the | 5 | | bank is specifically
prohibited from notifying the person by | 6 | | order of court or by applicable State
or federal law. A bank | 7 | | shall not mail a copy of a subpoena to any person
pursuant to | 8 | | this subsection if the subpoena was issued by a grand jury | 9 | | under
the Statewide Grand Jury Act.
| 10 | | (e) Any officer or employee of a bank who knowingly and
| 11 | | willfully furnishes financial records in violation of this | 12 | | Section is
guilty of a business offense and, upon conviction, | 13 | | shall be fined not
more than $1,000.
| 14 | | (f) Any person who knowingly and willfully induces or | 15 | | attempts to
induce any officer or employee of a bank to | 16 | | disclose financial
records in violation of this Section is | 17 | | guilty of a business offense
and, upon conviction, shall be | 18 | | fined not more than $1,000.
| 19 | | (g) A bank shall be reimbursed for costs that are | 20 | | reasonably necessary
and that have been directly incurred in | 21 | | searching for, reproducing, or
transporting books, papers, | 22 | | records, or other data required or
requested to be produced | 23 | | pursuant to a lawful subpoena, summons, warrant, citation to | 24 | | discover assets, or
court order. The Commissioner shall | 25 | | determine the rates and conditions
under which payment may be | 26 | | made.
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| 1 | | (Source: P.A. 100-22, eff. 1-1-18; 100-664, eff. 1-1-19; | 2 | | 100-888, eff. 8-14-18; 101-81, eff. 7-12-19.)
| 3 | | (205 ILCS 5/48.6)
| 4 | | Sec. 48.6. Retention of records. | 5 | | (a) Each bank shall retain its records in a manner | 6 | | consistent with prudent business practices and in accordance | 7 | | with this Act and applicable State or federal laws, rules, and | 8 | | regulations. The record retention system utilized must be able | 9 | | to accurately produce such records. | 10 | | (b) Except where a retention period is required by State | 11 | | or federal laws, rules, or regulations, a bank may destroy its | 12 | | records subject to the considerations set forth in subsection | 13 | | (a). In the destruction of records, the bank shall take | 14 | | reasonable precautions to ensure the confidentiality of | 15 | | information in the records. | 16 | | Unless a federal law requires otherwise,
the Commissioner may | 17 | | by rule prescribe periods of time for which banks
operating | 18 | | under this Act must retain records and after the expiration of | 19 | | which,
the bank may destroy those records. No liability shall | 20 | | accrue against the
bank, the Commissioner, or this State for | 21 | | the destruction of records according
to rules of the | 22 | | Commissioner promulgated under the authority of this Section.
| 23 | | In any cause or proceeding in which any records may be called | 24 | | in question or be
demanded by any bank, a showing of the | 25 | | expiration of the period so prescribed
shall be sufficient |
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| 1 | | excuse for failure to produce them.
| 2 | | (Source: P.A. 91-929, eff. 12-15-00.)
| 3 | | Section 10. The Savings Bank Act is amended by changing | 4 | | Sections 4013 and 9011 as follows:
| 5 | | (205 ILCS 205/4013) (from Ch. 17, par. 7304-13)
| 6 | | Sec. 4013. Access to books and records; communication with | 7 | | members
and shareholders. | 8 | | (a) Every member or shareholder shall have the right to | 9 | | inspect books
and records of the savings bank that pertain to | 10 | | his accounts. Otherwise,
the right of inspection and | 11 | | examination of the books and records shall be
limited as | 12 | | provided in this Act, and no other person shall have access to
| 13 | | the books and records nor shall be entitled to a list of the | 14 | | members or
shareholders.
| 15 | | (b) For the purpose of this Section, the term "financial | 16 | | records" means
any original, any copy, or any summary of (1) a | 17 | | document granting signature
authority over a deposit or | 18 | | account; (2) a statement, ledger card, or other
record on any | 19 | | deposit or account that shows each transaction in or with
| 20 | | respect to that account; (3) a check, draft, or money order | 21 | | drawn on a
savings bank or issued and payable by a savings | 22 | | bank; or (4) any other item
containing information pertaining | 23 | | to any relationship established in the
ordinary course of a | 24 | | savings bank's business between a savings bank and
its |
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| 1 | | customer, including financial statements or other financial | 2 | | information
provided by the member or shareholder.
| 3 | | (c) This Section does not prohibit:
| 4 | | (1) The preparation, examination, handling, or | 5 | | maintenance of any
financial records by any officer, | 6 | | employee, or agent of a savings bank
having custody of | 7 | | records or examination of records by a certified public
| 8 | | accountant engaged by the savings bank to perform an | 9 | | independent audit.
| 10 | | (2) The examination of any financial records by, or | 11 | | the furnishing of
financial records by a savings bank to, | 12 | | any officer, employee, or agent of
the Commissioner of | 13 | | Banks and Real Estate or the federal depository
| 14 | | institution regulator for use
solely in
the exercise of | 15 | | his duties as an officer, employee, or agent.
| 16 | | (3) The publication of data furnished from financial | 17 | | records relating
to members or holders of capital where | 18 | | the data cannot be identified to any
particular member, | 19 | | shareholder, or account.
| 20 | | (4) The making of reports or returns required under | 21 | | Chapter 61 of the
Internal Revenue Code of 1986.
| 22 | | (5) Furnishing information concerning the dishonor of | 23 | | any negotiable
instrument permitted to be disclosed under | 24 | | the Uniform Commercial Code.
| 25 | | (6) The exchange in the regular course of business of | 26 | | (i) credit
information between a savings bank and other |
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| 1 | | savings banks or financial
institutions or commercial | 2 | | enterprises, directly or through a consumer
reporting | 3 | | agency
or (ii) financial records or information derived | 4 | | from financial records
between a savings bank and other | 5 | | savings banks or financial institutions or
commercial | 6 | | enterprises for the purpose of conducting due diligence | 7 | | pursuant to
a purchase or sale involving the savings bank | 8 | | or assets or liabilities of the
savings bank.
| 9 | | (7) The furnishing of information to the appropriate | 10 | | law enforcement
authorities where the savings bank | 11 | | reasonably believes it has been the
victim of a crime.
| 12 | | (8) The furnishing of information pursuant to the | 13 | | Revised Uniform Unclaimed Property Act.
| 14 | | (9) The furnishing of information pursuant to the | 15 | | Illinois Income Tax
Act
and the Illinois Estate and | 16 | | Generation-Skipping Transfer Tax Act.
| 17 | | (10) The furnishing of information pursuant to the | 18 | | federal Currency
and Foreign Transactions Reporting Act, | 19 | | (Title 31, United States Code,
Section 1051 et seq.).
| 20 | | (11) The furnishing of information pursuant to any | 21 | | other statute which
by its terms or by regulations | 22 | | promulgated thereunder requires the
disclosure of | 23 | | financial records other than by subpoena, summons, | 24 | | warrant, or
court order.
| 25 | | (12) The furnishing of information in accordance with | 26 | | the federal
Personal Responsibility and Work Opportunity |
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| 1 | | Reconciliation Act of 1996.
Any savings bank governed by | 2 | | this Act shall enter into an agreement for data
exchanges | 3 | | with a State agency provided the State agency
pays to the | 4 | | savings bank a reasonable fee not to exceed its
actual | 5 | | cost incurred. A savings bank
providing
information in | 6 | | accordance with this item shall not be liable to any | 7 | | account
holder or other person for any disclosure of | 8 | | information to a State agency, for
encumbering or | 9 | | surrendering any assets held by the savings bank in | 10 | | response to
a lien
or order to withhold and deliver issued | 11 | | by a State agency, or for any other
action taken pursuant | 12 | | to this item, including individual or mechanical errors,
| 13 | | provided the action does not constitute gross negligence | 14 | | or willful misconduct.
A savings bank shall have no | 15 | | obligation to hold, encumber, or surrender
assets until
it | 16 | | has been served with a subpoena, summons, warrant, court | 17 | | or administrative
order,
lien, or levy.
| 18 | | (13) The furnishing of information to law enforcement | 19 | | authorities, the
Illinois Department on
Aging and its | 20 | | regional administrative and provider agencies, the | 21 | | Department of
Human Services Office
of Inspector General, | 22 | | or public guardians: (i) upon subpoena by the | 23 | | investigatory entity or the guardian, or (ii) if there is | 24 | | suspicion by the savings bank that a
customer who is an | 25 | | elderly
person or person with a disability has been or may | 26 | | become the victim of financial exploitation.
For the |
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| 1 | | purposes of this
item (13), the term: (i) "elderly person" | 2 | | means a person who is 60 or more
years of age, (ii) "person | 3 | | with a disability" means a person who has or reasonably | 4 | | appears to the savings bank to
have a physical or mental
| 5 | | disability that impairs his or her ability to seek or | 6 | | obtain protection from or
prevent financial
exploitation, | 7 | | and (iii) "financial exploitation" means tortious or | 8 | | illegal use
of the assets or resources of
an elderly | 9 | | person or person with a disability, and includes, without | 10 | | limitation,
misappropriation of the assets or resources of | 11 | | the elderly person or person with a disability by undue | 12 | | influence, breach of fiduciary
relationship, intimidation,
| 13 | | fraud, deception, extortion, or the use of assets or | 14 | | resources in any manner
contrary to law. A savings
bank or | 15 | | person furnishing information pursuant to this item (13) | 16 | | shall be
entitled to the same rights and
protections as a | 17 | | person furnishing information under the Adult Protective | 18 | | Services Act and the Illinois
Domestic Violence Act of | 19 | | 1986.
| 20 | | (14) The disclosure of financial records or | 21 | | information as necessary to
effect, administer, or enforce | 22 | | a transaction requested or authorized by the
member or | 23 | | holder of capital, or in connection with:
| 24 | | (A) servicing or processing a financial product or | 25 | | service requested or
authorized by the member or | 26 | | holder of capital;
|
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| 1 | | (B) maintaining or servicing an account of a | 2 | | member or holder of capital
with the savings bank; 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 or holder | 6 | | of capital.
| 7 | | Nothing in this item (14), however, authorizes the | 8 | | sale of the financial
records or information of a member | 9 | | or holder of capital without the consent of
the member or | 10 | | holder of capital.
| 11 | | (15) The exchange in the regular course of business of | 12 | | information between
a
savings bank and any commonly owned | 13 | | affiliate of the savings bank, subject to
the provisions | 14 | | of the Financial Institutions Insurance Sales Law.
| 15 | | (16) The disclosure of financial records or | 16 | | information as necessary to
protect against or prevent | 17 | | actual or potential fraud, unauthorized
transactions, | 18 | | claims, or other liability.
| 19 | | (17)(a) The disclosure of financial records or | 20 | | information
related to a private label credit program | 21 | | between a financial
institution and a private label party | 22 | | in connection
with that private label credit program. Such | 23 | | information
is limited to outstanding balance, available | 24 | | credit, payment and
performance and account history, | 25 | | product references, purchase
information,
and information | 26 | | related to the identity of the
customer.
|
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| 1 | | (b)(1) For purposes of this paragraph (17) of | 2 | | subsection
(c) of Section 4013, a "private label credit | 3 | | program" means a
credit program involving a financial | 4 | | institution and a private label
party that is used by a | 5 | | customer of the financial institution and the
private | 6 | | label party primarily for payment for goods or services
| 7 | | sold, manufactured, or distributed by a private label | 8 | | party.
| 9 | | (2) For purposes of this paragraph (17) of subsection | 10 | | (c)
of Section 4013, a "private label party" means, with | 11 | | respect to a
private label credit program, any of the | 12 | | following: a
retailer, a merchant, a manufacturer, a trade | 13 | | group,
or any such person's affiliate, subsidiary, member,
| 14 | | agent, or service provider.
| 15 | | (18)(a) The furnishing of financial records of a | 16 | | customer to the Department to aid the Department's initial | 17 | | determination or subsequent re-determination of the | 18 | | customer's eligibility for Medicaid and Medicaid long-term | 19 | | care benefits for long-term care services, provided that | 20 | | the savings bank receives the written consent and | 21 | | authorization of the customer, which shall: | 22 | | (1) have the customer's signature notarized; | 23 | | (2) be signed by at least one witness who | 24 | | certifies that he or she believes the customer to be of | 25 | | sound mind and memory; | 26 | | (3) be tendered to the savings bank at the |
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| 1 | | earliest practicable time following its execution, | 2 | | certification, and notarization; | 3 | | (4) specifically limit the disclosure of the | 4 | | customer's financial records to the Department; and | 5 | | (5) be in substantially the following form: | 6 | | CUSTOMER CONSENT AND AUTHORIZATION | 7 | | FOR RELEASE OF FINANCIAL RECORDS | 8 | | I, ......................................., hereby authorize | 9 | | (Name of Customer) | 10 | | ............................................................. | 11 | | (Name of Financial Institution) | 12 | | ............................................................. | 13 | | (Address of Financial Institution) | 14 | | to disclose the following financial records: | 15 | | any and all information concerning my deposit, savings, money | 16 | | market, certificate of deposit, individual retirement, | 17 | | retirement plan, 401(k) plan, incentive plan, employee benefit | 18 | | plan, mutual fund and loan accounts (including, but not | 19 | | limited to, any indebtedness or obligation for which I am a | 20 | | co-borrower, co-obligor, guarantor, or surety), and any and |
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| 1 | | all other accounts in which I have an interest and any other | 2 | | information regarding me in the possession of the Financial | 3 | | Institution, | 4 | | to the Illinois Department of Human Services or the Illinois | 5 | | Department of Healthcare and Family Services, or both ("the | 6 | | Department"), for the following purpose(s): | 7 | | to aid in the initial determination or re-determination by the | 8 | | State of Illinois of my eligibility for Medicaid long-term | 9 | | care benefits, pursuant to applicable law. | 10 | | I understand that this Consent and Authorization may be | 11 | | revoked by me in writing at any time before my financial | 12 | | records, as described above, are disclosed, and that this | 13 | | Consent and Authorization is valid until the Financial | 14 | | Institution receives my written revocation. This Consent and | 15 | | Authorization shall constitute valid authorization for the | 16 | | Department identified above to inspect all such financial | 17 | | records set forth above, and to request and receive copies of | 18 | | such financial records from the Financial Institution (subject | 19 | | to such records search and reproduction reimbursement policies | 20 | | as the Financial Institution may have in place). An executed | 21 | | copy of this Consent and Authorization shall be sufficient and | 22 | | as good as the original and permission is hereby granted to | 23 | | honor a photostatic or electronic copy of this Consent and |
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| 1 | | Authorization. Disclosure is strictly limited to the | 2 | | Department identified above and no other person or entity | 3 | | shall receive my financial records pursuant to this Consent | 4 | | and Authorization. By signing this form, I agree to indemnify | 5 | | and hold the Financial Institution harmless from any and all | 6 | | claims, demands, and losses, including reasonable attorneys | 7 | | fees and expenses, arising from or incurred in its reliance on | 8 | | this Consent and Authorization. As used herein, "Customer" | 9 | | shall mean "Member" if the Financial Institution is a credit | 10 | | union. | 11 | | ....................... ...................... | 12 | | (Date) (Signature of Customer) | 13 | | ...................... | 14 | | ...................... | 15 | | (Address of Customer) | 16 | | ...................... | 17 | | (Customer's birth date) | 18 | | (month/day/year) | 19 | | The undersigned witness certifies that ................., | 20 | | known to me to be the same person whose name is subscribed as | 21 | | the customer to the foregoing Consent and Authorization, | 22 | | appeared before me and the notary public and acknowledged |
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| 1 | | signing and delivering the instrument as his or her free and | 2 | | voluntary act for the uses and purposes therein set forth. I | 3 | | believe him or her to be of sound mind and memory. The | 4 | | undersigned witness also certifies that the witness is not an | 5 | | owner, operator, or relative of an owner or operator of a | 6 | | long-term care facility in which the customer is a patient or | 7 | | resident. | 8 | | Dated: ................. ...................... | 9 | | (Signature of Witness) | 10 | | ...................... | 11 | | (Print Name of Witness) | 12 | | ...................... | 13 | | ...................... | 14 | | (Address of Witness) | 15 | | State of Illinois) | 16 | | ) ss. | 17 | | County of .......) | 18 | | The undersigned, a notary public in and for the above county | 19 | | and state, certifies that .........., known to me to be the | 20 | | same person whose name is subscribed as the customer to the | 21 | | foregoing Consent and Authorization, appeared before me |
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| 1 | | together with the witness, .........., in person and | 2 | | acknowledged signing and delivering the instrument as the free | 3 | | and voluntary act of the customer for the uses and purposes | 4 | | therein set forth. | 5 | | Dated: ....................................................... | 6 | | Notary Public: ............................................... | 7 | | My commission expires: ....................................... | 8 | | (b) In no event shall the savings bank distribute the | 9 | | customer's financial records to the long-term care | 10 | | facility from which the customer seeks initial or | 11 | | continuing residency or long-term care services. | 12 | | (c) A savings bank providing financial records of a | 13 | | customer in good faith relying on a consent and | 14 | | authorization executed and tendered in accordance with | 15 | | this paragraph (18) shall not be liable to the customer or | 16 | | any other person in relation to the savings bank's | 17 | | disclosure of the customer's financial records to the | 18 | | Department. The customer signing the consent and | 19 | | authorization shall indemnify and hold the savings bank | 20 | | harmless that relies in good faith upon the consent and | 21 | | authorization and incurs a loss because of such reliance. | 22 | | The savings bank recovering under this indemnification | 23 | | provision shall also be entitled to reasonable attorney's | 24 | | fees and the expenses of recovery. |
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| 1 | | (d) A savings bank shall be reimbursed by the customer | 2 | | for all costs reasonably necessary and directly incurred | 3 | | in searching for, reproducing, and disclosing a customer's | 4 | | financial records required or requested to be produced | 5 | | pursuant to any consent and authorization executed under | 6 | | this paragraph (18). The requested financial records shall | 7 | | be delivered to the Department within 10 days after | 8 | | receiving a properly executed consent and authorization or | 9 | | at the earliest practicable time thereafter if the | 10 | | requested records cannot be delivered within 10 days, but | 11 | | delivery may be delayed until the final reimbursement of | 12 | | all costs is received by the savings bank. The savings | 13 | | bank may honor a photostatic or electronic copy of a | 14 | | properly executed consent and authorization. | 15 | | (e) Nothing in this paragraph (18) shall impair, | 16 | | abridge, or abrogate the right of a customer to: | 17 | | (1) directly disclose his or her financial records | 18 | | to the Department or any other person; or | 19 | | (2) authorize his or her attorney or duly | 20 | | appointed agent to request and obtain the customer's | 21 | | financial records and disclose those financial records | 22 | | to the Department. | 23 | | (f) For purposes of this paragraph (18), "Department" | 24 | | means the Department of Human Services and the Department | 25 | | of Healthcare and Family Services or any successor | 26 | | administrative agency of either agency. |
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| 1 | | (d) A savings bank may not disclose to any person, except | 2 | | to the member
or holder of capital or his duly authorized | 3 | | agent, any financial records
relating to that member or | 4 | | shareholder of the savings bank unless:
| 5 | | (1) the member or shareholder has authorized | 6 | | disclosure to the person; or
| 7 | | (2) the financial records are disclosed in response to | 8 | | a lawful
subpoena, summons, warrant, citation to discover | 9 | | assets, or court order that meets the requirements of
| 10 | | subsection (e) of this Section.
| 11 | | (e) A savings bank shall disclose financial records under | 12 | | subsection (d)
of this Section pursuant to a lawful subpoena, | 13 | | summons, warrant, citation to discover assets, or court
order | 14 | | only after the savings bank sends mails a copy of the subpoena, | 15 | | summons,
warrant, citation to discover assets, or court order | 16 | | to the person establishing the relationship with
the savings | 17 | | bank, if living, and otherwise, the person's his personal | 18 | | representative, if
known, at the person's his last known | 19 | | address by first class mail, postage prepaid, through a | 20 | | third-party commercial carrier or courier with delivery charge | 21 | | fully prepaid, by hand delivery, or by electronic delivery at | 22 | | an email address on file with the savings bank (if the person | 23 | | establishing the relationship with the savings bank has | 24 | | consented to receive electronic delivery and, if the person | 25 | | establishing the relationship with the savings bank is a | 26 | | consumer, the person has consented under the consumer consent |
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| 1 | | provisions set forth in Section 7001 of Title 15 of the United | 2 | | States Code),
unless the savings bank is specifically | 3 | | prohibited from notifying the
person by order of court.
| 4 | | (f) Any officer or employee of a savings bank who | 5 | | knowingly and
willfully furnishes financial records in | 6 | | violation of this Section is
guilty of a business offense and, | 7 | | upon conviction, shall be fined not
more than $1,000.
| 8 | | (g) Any person who knowingly and willfully induces or | 9 | | attempts to
induce any officer or employee of a savings bank to | 10 | | disclose financial
records in violation of this Section is | 11 | | guilty of a business offense and,
upon conviction, shall be | 12 | | fined not more than $1,000.
| 13 | | (h) If any member or shareholder desires to communicate | 14 | | with the other
members or shareholders of the savings bank | 15 | | with reference to any question
pending or to be presented at an | 16 | | annual or special meeting, the savings
bank shall give that | 17 | | person, upon request, a statement of the approximate
number of | 18 | | members or shareholders entitled to vote at the meeting and an
| 19 | | estimate of the cost of preparing and mailing the | 20 | | communication. The
requesting member shall submit the | 21 | | communication to the Commissioner
who, upon finding it to be | 22 | | appropriate and truthful, shall direct that it
be prepared and | 23 | | mailed to the members upon the requesting member's or
| 24 | | shareholder's payment or adequate provision for payment of the | 25 | | expenses of
preparation and mailing.
| 26 | | (i) A savings bank shall be reimbursed for costs that are |
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| 1 | | necessary and
that have been directly incurred in searching | 2 | | for, reproducing, or
transporting books, papers, records, or | 3 | | other data of a customer required
to be reproduced pursuant to | 4 | | a lawful subpoena, warrant, citation to discover assets, or | 5 | | court order.
| 6 | | (j) Notwithstanding the provisions of this Section, a | 7 | | savings bank may
sell or otherwise make use of lists of | 8 | | customers' names and addresses. All
other information | 9 | | regarding a customer's account is subject to the
disclosure | 10 | | provisions of this Section. At the request of any customer,
| 11 | | that customer's name and address shall be deleted from any | 12 | | list that is to
be sold or used in any other manner beyond | 13 | | identification of the customer's
accounts.
| 14 | | (Source: P.A. 99-143, eff. 7-27-15; 100-22, eff. 1-1-18; | 15 | | 100-201, eff. 8-18-17; 100-664, eff. 1-1-19 .)
| 16 | | (205 ILCS 205/9011) (from Ch. 17, par. 7309-11)
| 17 | | Sec. 9011. Record keeping and retention of records by a | 18 | | savings
bank. | 19 | | (a) Each savings bank shall retain its records in a manner | 20 | | consistent with prudent business practices and in accordance | 21 | | with this Act and applicable State or federal laws, rules, and | 22 | | regulations. The record retention system utilized must be able | 23 | | to accurately produce such records is required to maintain | 24 | | appropriate
books and records, as required by the Secretary, | 25 | | that are in accordance
with generally accepted accounting |
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| 1 | | principles and the requirements of
its insurer of accounts. | 2 | | All books and records shall be current,
complete, organized, | 3 | | and accessible to the Secretary, the
Secretary's agents and | 4 | | examiners, and to the savings bank's
auditors and accountants .
| 5 | | (a-5) Except where a retention period is required by State | 6 | | or federal laws, rules, or regulations, a savings bank may | 7 | | destroy its records subject to the considerations set forth in | 8 | | subsection (a). In the destruction of records, the savings | 9 | | bank shall take reasonable precautions to ensure the | 10 | | confidentiality of information in the records. | 11 | | (b) Each savings bank shall implement internal control
and | 12 | | security measures for its data processing activities.
A | 13 | | contract with a data processing service or for data processing | 14 | | services
must provide that records maintained shall at all | 15 | | times be available for
examination and audit by the Secretary.
| 16 | | (c) The Secretary may further regulate these matters by
| 17 | | the promulgation of rules concerning data processing. As used
| 18 | | herein, "data processing" means all electronic or automated
| 19 | | systems of communication and data processing by computer.
| 20 | | (d) Unless a federal law requires otherwise, the Secretary | 21 | | may
by regulation prescribe periods of time for
which savings | 22 | | banks operating under this Act must retain records
and after | 23 | | the expiration of which, the savings bank may destroy
those | 24 | | records. No liability shall accrue against the savings bank,
| 25 | | the Secretary, or this State for destruction of records
| 26 | | according to regulations of the Secretary promulgated under |
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| 1 | | the
authority of this Section. In any cause or proceeding in | 2 | | which
any records may be called in question or be demanded by | 3 | | any
savings bank, a showing of the expiration of the period so
| 4 | | prescribed shall be sufficient excuse for failure to produce | 5 | | them.
| 6 | | (Source: P.A. 97-492, eff. 1-1-12.)
| 7 | | Section 15. The Illinois Credit Union Act is amended by | 8 | | changing Sections 10 and 10.1 as follows:
| 9 | | (205 ILCS 305/10) (from Ch. 17, par. 4411)
| 10 | | Sec. 10. Credit union records; member financial records.
| 11 | | (1) A credit union shall establish and maintain books, | 12 | | records, accounting
systems and procedures which accurately | 13 | | reflect its operations and which
enable the Department to | 14 | | readily ascertain the true financial condition
of the credit | 15 | | union and whether it is complying with this Act.
| 16 | | (2) A photostatic or photographic reproduction of any | 17 | | credit union records
shall be admissible as evidence of | 18 | | transactions with the credit union.
| 19 | | (3)(a) For the purpose of this Section, the term | 20 | | "financial records"
means any original, any copy, or any | 21 | | summary of (1) a document granting
signature authority over an | 22 | | account, (2) a statement, ledger card or other
record on any | 23 | | account which shows each transaction in or with respect to
| 24 | | that account, (3) a check, draft or money order drawn on a |
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| 1 | | financial
institution or other entity or issued and payable by | 2 | | or through a financial
institution or other entity, or (4) any | 3 | | other item containing information
pertaining to any | 4 | | relationship established in the ordinary course of
business | 5 | | between a credit union and its member, including financial
| 6 | | statements or other financial information provided by the | 7 | | member.
| 8 | | (b) This Section does not prohibit:
| 9 | | (1) The preparation, examination, handling or | 10 | | maintenance of any
financial records by any officer, | 11 | | employee or agent of a credit union
having custody of such | 12 | | records, or the examination of such records by a
certified | 13 | | public accountant engaged by the credit union to perform | 14 | | an
independent audit.
| 15 | | (2) The examination of any financial records by or the | 16 | | furnishing of
financial records by a credit union to any | 17 | | officer, employee or agent of
the Department, the National | 18 | | Credit Union Administration, Federal Reserve
board or any | 19 | | insurer of share accounts for use solely in the exercise | 20 | | of
his duties as an officer, employee or agent.
| 21 | | (3) The publication of data furnished from financial | 22 | | records relating
to members where the data cannot be | 23 | | identified to any particular customer
of account.
| 24 | | (4) The making of reports or returns required under | 25 | | Chapter 61 of the
Internal Revenue Code of 1954.
| 26 | | (5) Furnishing information concerning the dishonor of |
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| 1 | | any negotiable
instrument permitted to be disclosed under | 2 | | the Uniform Commercial
Code.
| 3 | | (6) The exchange in the regular course of business
of | 4 | | (i) credit information
between a credit union and other | 5 | | credit unions 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 a credit union and other | 9 | | credit unions or financial institutions or
commercial | 10 | | enterprises for
the purpose of conducting due diligence | 11 | | pursuant to a merger or a purchase or
sale of assets or | 12 | | liabilities of the credit union.
| 13 | | (7) The furnishing of information to the appropriate | 14 | | law enforcement
authorities where the credit union | 15 | | reasonably believes it has been the victim
of a crime.
| 16 | | (8) The furnishing of information pursuant to the | 17 | | Revised Uniform 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 sequentia.
| 24 | | (11) The furnishing of information pursuant to any | 25 | | other statute which
by its terms or by regulations | 26 | | promulgated thereunder requires the disclosure
of |
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| 1 | | financial records other than by subpoena, summons, warrant | 2 | | or court order.
| 3 | | (12) The furnishing of information in accordance with | 4 | | the federal
Personal Responsibility and Work Opportunity | 5 | | Reconciliation Act of 1996.
Any credit union governed by | 6 | | this Act shall enter into an agreement for data
exchanges | 7 | | with a State agency provided the State agency
pays to the | 8 | | credit union a reasonable fee not to exceed its
actual | 9 | | cost incurred. A credit union
providing
information in | 10 | | accordance with this item shall not be liable to any | 11 | | account
holder or other person for any disclosure of | 12 | | information to a State agency, for
encumbering or | 13 | | surrendering any assets held by the credit union in | 14 | | response to
a lien
or order to withhold and deliver issued | 15 | | by a State agency, or for any other
action taken pursuant | 16 | | to this item, including individual or mechanical errors,
| 17 | | provided the action does not constitute gross negligence | 18 | | or willful misconduct.
A credit union shall have no | 19 | | obligation to hold, encumber, or surrender
assets until
it | 20 | | has been served with a subpoena, summons, warrant, court | 21 | | or administrative
order, lien, or levy.
| 22 | | (13) The furnishing of information to law enforcement | 23 | | authorities, the
Illinois Department on
Aging and its | 24 | | regional administrative and provider agencies, the | 25 | | Department of
Human Services Office
of Inspector General, | 26 | | or public guardians: (i) upon subpoena by the |
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| 1 | | investigatory entity or the guardian, or (ii) if there is | 2 | | suspicion by the credit union that a
member who is an | 3 | | elderly person or person with a disability has been or may | 4 | | become the victim of financial exploitation.
For the | 5 | | purposes of this
item (13), the term: (i) "elderly person" | 6 | | means a person who is 60 or more
years of age, (ii) "person | 7 | | with a disability" means a person who has or reasonably | 8 | | appears to the credit union to
have a physical or mental
| 9 | | disability that impairs his or her ability to seek or | 10 | | obtain protection from or
prevent financial
exploitation, | 11 | | and (iii) "financial exploitation" means tortious or | 12 | | illegal use
of the assets or resources of
an elderly | 13 | | person or person with a disability, and includes, without | 14 | | limitation,
misappropriation of the elderly or
disabled | 15 | | person's assets or resources by undue influence, breach of | 16 | | fiduciary
relationship, intimidation,
fraud, deception, | 17 | | extortion, or the use of assets or resources in any manner
| 18 | | contrary to law. A credit
union or person furnishing | 19 | | information pursuant to this item (13) shall be
entitled | 20 | | to the same rights and
protections as a person furnishing | 21 | | information under the Adult Protective Services Act and | 22 | | the Illinois
Domestic Violence Act of 1986.
| 23 | | (14) The disclosure of financial records or | 24 | | information as necessary
to
effect, administer, or enforce | 25 | | a transaction requested or authorized by the
member, or in | 26 | | connection with:
|
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| 1 | | (A) servicing or processing a financial product or | 2 | | service requested
or
authorized by the member;
| 3 | | (B) maintaining or servicing a member's account | 4 | | with the credit union;
or
| 5 | | (C) a proposed or actual securitization or | 6 | | secondary market sale
(including sales of servicing | 7 | | rights) related to a
transaction of a member.
| 8 | | Nothing in this item (14), however, authorizes the | 9 | | sale of the financial
records or information of a member | 10 | | without the consent of the member.
| 11 | | (15) The disclosure of financial records or | 12 | | information as necessary to
protect against or prevent | 13 | | actual or potential fraud, unauthorized
transactions, | 14 | | claims, or other liability.
| 15 | | (16)(a) The disclosure of financial records or | 16 | | information
related to a private label credit program | 17 | | between a financial
institution and a private label party | 18 | | in connection
with that private label credit program. Such | 19 | | information
is limited to outstanding balance, available | 20 | | credit, payment and
performance and account history, | 21 | | product references, purchase
information,
and information | 22 | | related to the identity of the
customer.
| 23 | | (b)(1) For purposes of this item (16), "private label | 24 | | credit program" means a credit
program involving a | 25 | | financial institution and a private label party
that is | 26 | | used by a customer of the financial institution and the
|
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| 1 | | private label party primarily for payment for goods or | 2 | | services
sold, manufactured, or distributed by a private | 3 | | label party.
| 4 | | (2) For purposes of this item (16), "private label | 5 | | party" means, with respect to a
private label credit | 6 | | program, any of the following: a
retailer, a merchant, a | 7 | | manufacturer, a trade group,
or any such person's | 8 | | affiliate, subsidiary, member,
agent, or service provider.
| 9 | | (17)(a) The furnishing of financial records of a | 10 | | member to the Department to aid the Department's initial | 11 | | determination or subsequent re-determination of the | 12 | | member's eligibility for Medicaid and Medicaid long-term | 13 | | care benefits for long-term care services, provided that | 14 | | the credit union receives the written consent and | 15 | | authorization of the member, which shall: | 16 | | (1) have the member's signature notarized; | 17 | | (2) be signed by at least one witness who | 18 | | certifies that he or she believes the member to be of | 19 | | sound mind and memory; | 20 | | (3) be tendered to the credit union at the | 21 | | earliest practicable time following its execution, | 22 | | certification, and notarization; | 23 | | (4) specifically limit the disclosure of the | 24 | | member's financial records to the Department; and | 25 | | (5) be in substantially the following form: |
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| 1 | | CUSTOMER CONSENT AND AUTHORIZATION | 2 | | FOR RELEASE OF FINANCIAL RECORDS | 3 | | I, ......................................., hereby authorize | 4 | | (Name of Customer) | 5 | | ............................................................. | 6 | | (Name of Financial Institution) | 7 | | ............................................................. | 8 | | (Address of Financial Institution) | 9 | | to disclose the following financial records: | 10 | | any and all information concerning my deposit, savings, money | 11 | | market, certificate of deposit, individual retirement, | 12 | | retirement plan, 401(k) plan, incentive plan, employee benefit | 13 | | plan, mutual fund and loan accounts (including, but not | 14 | | limited to, any indebtedness or obligation for which I am a | 15 | | co-borrower, co-obligor, guarantor, or surety), and any and | 16 | | all other accounts in which I have an interest and any other | 17 | | information regarding me in the possession of the Financial | 18 | | Institution, | 19 | | to the Illinois Department of Human Services or the Illinois | 20 | | Department of Healthcare and Family Services, or both ("the |
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| 1 | | Department"), for the following purpose(s): | 2 | | to aid in the initial determination or re-determination by the | 3 | | State of Illinois of my eligibility for Medicaid long-term | 4 | | care benefits, pursuant to applicable law. | 5 | | I understand that this Consent and Authorization may be | 6 | | revoked by me in writing at any time before my financial | 7 | | records, as described above, are disclosed, and that this | 8 | | Consent and Authorization is valid until the Financial | 9 | | Institution receives my written revocation. This Consent and | 10 | | Authorization shall constitute valid authorization for the | 11 | | Department identified above to inspect all such financial | 12 | | records set forth above, and to request and receive copies of | 13 | | such financial records from the Financial Institution (subject | 14 | | to such records search and reproduction reimbursement policies | 15 | | as the Financial Institution may have in place). An executed | 16 | | copy of this Consent and Authorization shall be sufficient and | 17 | | as good as the original and permission is hereby granted to | 18 | | honor a photostatic or electronic copy of this Consent and | 19 | | Authorization. Disclosure is strictly limited to the | 20 | | Department identified above and no other person or entity | 21 | | shall receive my financial records pursuant to this Consent | 22 | | and Authorization. By signing this form, I agree to indemnify | 23 | | and hold the Financial Institution harmless from any and all | 24 | | claims, demands, and losses, including reasonable attorneys |
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| 1 | | fees and expenses, arising from or incurred in its reliance on | 2 | | this Consent and Authorization. As used herein, "Customer" | 3 | | shall mean "Member" if the Financial Institution is a credit | 4 | | union. | 5 | | ....................... ...................... | 6 | | (Date) (Signature of Customer) | 7 | | ...................... | 8 | | ...................... | 9 | | (Address of Customer) | 10 | | ...................... | 11 | | (Customer's birth date) | 12 | | (month/day/year) | 13 | | The undersigned witness certifies that ................., | 14 | | known to me to be the same person whose name is subscribed as | 15 | | the customer to the foregoing Consent and Authorization, | 16 | | appeared before me and the notary public and acknowledged | 17 | | signing and delivering the instrument as his or her free and | 18 | | voluntary act for the uses and purposes therein set forth. I | 19 | | believe him or her to be of sound mind and memory. The | 20 | | undersigned witness also certifies that the witness is not an | 21 | | owner, operator, or relative of an owner or operator of a | 22 | | long-term care facility in which the customer is a patient or |
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| 1 | | resident. | 2 | | Dated: ................. ...................... | 3 | | (Signature of Witness) | 4 | | ...................... | 5 | | (Print Name of Witness) | 6 | | ...................... | 7 | | ...................... | 8 | | (Address of Witness) | 9 | | State of Illinois) | 10 | | ) ss. | 11 | | County of .......) | 12 | | The undersigned, a notary public in and for the above county | 13 | | and state, certifies that .........., known to me to be the | 14 | | same person whose name is subscribed as the customer to the | 15 | | foregoing Consent and Authorization, appeared before me | 16 | | together with the witness, .........., in person and | 17 | | acknowledged signing and delivering the instrument as the free | 18 | | and voluntary act of the customer for the uses and purposes | 19 | | therein set forth. | 20 | | Dated: ....................................................... |
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| 1 | | Notary Public: ............................................... | 2 | | My commission expires: ....................................... | 3 | | (b) In no event shall the credit union distribute the | 4 | | member's financial records to the long-term care facility | 5 | | from which the member seeks initial or continuing | 6 | | residency or long-term care services. | 7 | | (c) A credit union providing financial records of a | 8 | | member in good faith relying on a consent and | 9 | | authorization executed and tendered in accordance with | 10 | | this item (17) shall not be liable to the member or any | 11 | | other person in relation to the credit union's disclosure | 12 | | of the member's financial records to the Department. The | 13 | | member signing the consent and authorization shall | 14 | | indemnify and hold the credit union harmless that relies | 15 | | in good faith upon the consent and authorization and | 16 | | incurs a loss because of such reliance. The credit union | 17 | | recovering under this indemnification provision shall also | 18 | | be entitled to reasonable attorney's fees and the expenses | 19 | | of recovery. | 20 | | (d) A credit union shall be reimbursed by the member | 21 | | for all costs reasonably necessary and directly incurred | 22 | | in searching for, reproducing, and disclosing a member's | 23 | | financial records required or requested to be produced | 24 | | pursuant to any consent and authorization executed under | 25 | | this item (17). The requested financial records shall be |
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| 1 | | delivered to the Department within 10 days after receiving | 2 | | a properly executed consent and authorization or at the | 3 | | earliest practicable time thereafter if the requested | 4 | | records cannot be delivered within 10 days, but delivery | 5 | | may be delayed until the final reimbursement of all costs | 6 | | is received by the credit union. The credit union may | 7 | | honor a photostatic or electronic copy of a properly | 8 | | executed consent and authorization. | 9 | | (e) Nothing in this item (17) shall impair, abridge, | 10 | | or abrogate the right of a member to: | 11 | | (1) directly disclose his or her financial records | 12 | | to the Department or any other person; or | 13 | | (2) authorize his or her attorney or duly | 14 | | appointed agent to request and obtain the member's | 15 | | financial records and disclose those financial records | 16 | | to the Department. | 17 | | (f) For purposes of this item (17), "Department" means | 18 | | the Department of Human Services and the Department of | 19 | | Healthcare and Family Services or any successor | 20 | | administrative agency of either agency. | 21 | | (18) The furnishing of the financial records of a | 22 | | member to an appropriate law enforcement authority, | 23 | | without prior notice to or consent of the member, upon | 24 | | written request of the law enforcement authority, when | 25 | | reasonable suspicion of an imminent threat to the personal | 26 | | security and safety of the member exists that necessitates |
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| 1 | | an expedited release of the member's financial records, as | 2 | | determined by the law enforcement authority. The law | 3 | | enforcement authority shall include a brief explanation of | 4 | | the imminent threat to the member in its written request | 5 | | to the credit union. The written request shall reflect | 6 | | that it has been authorized by a supervisory or managerial | 7 | | official of the law enforcement authority. The decision to | 8 | | furnish the financial records of a member to a law | 9 | | enforcement authority shall be made by a supervisory or | 10 | | managerial official of the credit union. A credit union | 11 | | providing information in accordance with this item (18) | 12 | | shall not be liable to the member or any other person for | 13 | | the disclosure of the information to the law enforcement | 14 | | authority.
| 15 | | (c) Except as otherwise provided by this Act, a credit | 16 | | union may not
disclose to any person, except to the member
or | 17 | | his duly authorized agent, any financial records relating to | 18 | | that member
of the credit union unless:
| 19 | | (1) the member has authorized disclosure to the | 20 | | person;
| 21 | | (2) the financial records are disclosed in response to | 22 | | a lawful
subpoena,
summons, warrant, citation to discover | 23 | | assets, or court order that meets the requirements of | 24 | | subparagraph (3)(d)
of this Section; or
| 25 | | (3) the credit union is attempting to collect an | 26 | | obligation owed to
the credit union and the credit union |
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| 1 | | complies with the provisions of
Section 2I of the Consumer | 2 | | Fraud and Deceptive Business Practices Act.
| 3 | | (d) A credit union shall disclose financial records under | 4 | | item (3)(c)(2) of this Section pursuant to a lawful subpoena, | 5 | | summons, warrant, citation to discover assets, or
court order | 6 | | only after the credit union sends mails a copy of the subpoena, | 7 | | summons,
warrant, citation to discover assets, or court order | 8 | | to the person establishing the relationship with
the credit | 9 | | union, if living, and otherwise the person's his personal | 10 | | representative,
if known, at the person's his last known | 11 | | address by first class mail, postage prepaid , through a | 12 | | third-party commercial carrier or courier with delivery charge | 13 | | fully prepaid, by hand delivery, or by electronic delivery at | 14 | | an email address on file with the credit union (if the person | 15 | | establishing the relationship with the credit union has | 16 | | consented to receive electronic delivery and, if the person | 17 | | establishing the relationship with the credit union is a | 18 | | consumer, the person has consented under the consumer consent | 19 | | provisions set forth in Section 7001 of Title 15 of the United | 20 | | States Code),
unless the credit union is specifically | 21 | | prohibited from notifying the person
by order of court or by | 22 | | applicable State or federal law. In the case
of a grand jury | 23 | | subpoena, a credit union shall not mail a copy of a subpoena
to | 24 | | any person pursuant to this subsection if the subpoena was | 25 | | issued by a grand
jury under the Statewide Grand Jury Act or | 26 | | notifying the
person would constitute a violation of the |
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| 1 | | federal Right to Financial
Privacy Act of 1978.
| 2 | | (e)(1) Any officer or employee of a credit union who | 3 | | knowingly and willfully
furnishes financial records in | 4 | | violation of this Section is guilty of
a business offense and | 5 | | upon conviction thereof shall be fined not more than
$1,000.
| 6 | | (2) Any person who knowingly and willfully induces or | 7 | | attempts to induce
any officer or employee of a credit union to | 8 | | disclose financial records
in violation of this Section is | 9 | | guilty of a business offense and upon
conviction thereof shall | 10 | | be fined not more than $1,000.
| 11 | | (f) A credit union shall be reimbursed for costs which are | 12 | | reasonably
necessary and which have been directly incurred in | 13 | | searching for,
reproducing or transporting books, papers, | 14 | | records or other data of a
member required or requested to be | 15 | | produced pursuant to a lawful subpoena,
summons, warrant, | 16 | | citation to discover assets, or court order. The Secretary and | 17 | | the Director may determine, by rule, the
rates and
conditions | 18 | | under which payment shall be made. Delivery of requested | 19 | | documents
may be delayed until final reimbursement of all | 20 | | costs is received.
| 21 | | (Source: P.A. 100-22, eff. 1-1-18; 100-664, eff. 1-1-19; | 22 | | 100-778, eff. 8-10-18; 101-81, eff. 7-12-19.)
| 23 | | (205 ILCS 305/10.1)
| 24 | | Sec. 10.1. Retention of records. | 25 | | (a) Each credit union shall retain its records in a manner |
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| 1 | | consistent with prudent business practices and in accordance | 2 | | with this Act and applicable State or federal laws, rules, and | 3 | | regulations. The record retention system utilized must be able | 4 | | to accurately produce such records. | 5 | | (b) Except where a retention period is required by State | 6 | | or federal laws, rules, or regulations, a credit union may | 7 | | destroy its records subject to the considerations set forth in | 8 | | subsection (a). In the destruction of records, the credit | 9 | | union shall take reasonable precautions to ensure the | 10 | | confidentiality of information in the records. | 11 | | (c) Unless a federal law requires otherwise, the Secretary | 12 | | and the Director may by rule
prescribe periods of time for | 13 | | which credit unions operating under
this Act must retain | 14 | | records and after the expiration of which
the credit union may | 15 | | destroy those records. No liability shall
accrue against the | 16 | | credit union, the Secretary, or this State for
the destruction | 17 | | of records according to rules of the Secretary
promulgated | 18 | | under the authority of this Section. In any cause or
| 19 | | proceeding in which any records may be called in question or be
| 20 | | demanded from any credit union, a showing of the expiration of | 21 | | the
period so prescribed shall be sufficient excuse for | 22 | | failure to
produce them.
| 23 | | (Source: P.A. 97-133, eff. 1-1-12.)
| 24 | | Section 99. Effective date. This Act takes effect upon | 25 | | becoming law.
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