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91_HB3494
LRB9111985JSpc
1 AN ACT concerning disclosure customer financial
2 information.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Illinois Banking Act is amended by
6 changing Section 48.1 as follows:
7 (205 ILCS 5/48.1) (from Ch. 17, par. 360)
8 Sec. 48.1. Customer financial records; confidentiality.
9 (a) For the purpose of this Section, the term "financial
10 records" means any original, any copy, or any summary of:
11 (1) a document granting signature authority over a
12 deposit or account;
13 (2) a statement, ledger card or other record on any
14 deposit or account, which shows each transaction in or
15 with respect to that account;
16 (3) a check, draft or money order drawn on a bank
17 or issued and payable by a bank; or
18 (4) any other item containing information
19 pertaining to any relationship established in the
20 ordinary course of a bank's business between a bank and
21 its customer, including financial statements or other
22 financial information provided by the customer.
23 (b) This Section does not prohibit:
24 (1) The preparation, examination, handling or
25 maintenance of any financial records by any officer,
26 employee or agent of a bank having custody of the
27 records, or the examination of the records by a certified
28 public accountant engaged by the bank to perform an
29 independent audit.
30 (2) The examination of any financial records by, or
31 the furnishing of financial records by a bank to, any
-2- LRB9111985JSpc
1 officer, employee or agent of (i) the Commissioner of
2 Banks and Real Estate, (ii) after May 31, 1997, a state
3 regulatory authority authorized to examine a branch of a
4 State bank located in another state, (iii) the
5 Comptroller of the Currency, (iv) the Federal Reserve
6 Board, or (v) the Federal Deposit Insurance Corporation
7 for use solely in the exercise of his duties as an
8 officer, employee, or agent.
9 (3) The publication of data furnished from
10 financial records relating to customers where the data
11 cannot be identified to any particular customer or
12 account.
13 (4) The making of reports or returns required under
14 Chapter 61 of the Internal Revenue Code of 1986.
15 (5) Furnishing information concerning the dishonor
16 of any negotiable instrument permitted to be disclosed
17 under the Uniform Commercial Code.
18 (6) The exchange in the regular course of business
19 of (i) credit information between a bank and other banks
20 or financial institutions or commercial enterprises,
21 directly or through a consumer reporting agency or (ii)
22 financial records or information derived from financial
23 records between a bank and other banks or financial
24 institutions or commercial enterprises for the purpose of
25 conducting due diligence pursuant to a purchase or sale
26 involving the bank or assets or liabilities of the bank.
27 (7) The furnishing of information to the
28 appropriate law enforcement authorities where the bank
29 reasonably believes it has been the victim of a crime.
30 (8) The furnishing of information under the Uniform
31 Disposition of Unclaimed Property Act.
32 (9) The furnishing of information under the
33 Illinois Income Tax Act and the Illinois Estate and
34 Generation-Skipping Transfer Tax Act.
-3- LRB9111985JSpc
1 (10) The furnishing of information under the
2 federal Currency and Foreign Transactions Reporting Act
3 Title 31, United States Code, Section 1051 et seq.
4 (11) The furnishing of information under any other
5 statute that by its terms or by regulations promulgated
6 thereunder requires the disclosure of financial records
7 other than by subpoena, summons, warrant, or court order.
8 (12) The furnishing of information about the
9 existence of an account of a person to a judgment
10 creditor of that person who has made a written request
11 for that information.
12 (13) The exchange in the regular course of business
13 of information between commonly owned banks in connection
14 with a transaction authorized under paragraph (23) of
15 Section 5 and conducted at an affiliate facility.
16 (14) The furnishing of information in accordance
17 with the federal Personal Responsibility and Work
18 Opportunity Reconciliation Act of 1996. Any bank governed
19 by this Act shall enter into an agreement for data
20 exchanges with a State agency provided the State agency
21 pays to the bank a reasonable fee not to exceed its
22 actual cost incurred. A bank providing information in
23 accordance with this item shall not be liable to any
24 account holder or other person for any disclosure of
25 information to a State agency, for encumbering or
26 surrendering any assets held by the bank in response to a
27 lien or order to withhold and deliver issued by a State
28 agency, or for any other action taken pursuant to this
29 item, including individual or mechanical errors, provided
30 the action does not constitute gross negligence or
31 willful misconduct. A bank shall have no obligation to
32 hold, encumber, or surrender assets until it has been
33 served with a subpoena, summons, warrant, court or
34 administrative order, lien, or levy.
-4- LRB9111985JSpc
1 (15) The exchange in the regular course of business
2 of information between a bank and any commonly owned
3 affiliate of the bank, subject to the provisions of the
4 Financial Institutions Insurance Sales Law.
5 (16) The furnishing of information to: (a) law
6 enforcement authorities, the Illinois Department on Aging
7 and its regional administrative and provider agencies,
8 and public guardians, if the bank suspects that a
9 customer who is an elderly or disabled person has been or
10 may become the victim of financial exploitation or other
11 crime and (b) any other financial institution or other
12 third party, if the bank believes that the furnishing of
13 the information may prevent financial exploitation of the
14 elderly or disabled person. For purposes of this item
15 (16), the term: (i) "elderly person" means a person who
16 is or reasonably appears to the bank to be 60 or more
17 years of age, (ii) "disabled person" means a person who
18 has or reasonably appears to the bank to have a physical
19 or mental disability that impairs his or her ability to
20 seek or obtain protection from or prevent financial
21 exploitation, and (iii) "financial exploitation" means
22 tortious or illegal use of the assets or resources of an
23 elderly or disabled person, and includes, without
24 limitation, misappropriation of the elderly or disabled
25 person's assets or resources by undue influence, breach
26 of fiduciary relationship, intimidation, fraud,
27 deception, extortion, or the use of assets or resources
28 in any manner contrary to law.
29 (c) Except as otherwise provided by this Act, a bank may
30 not disclose to any person, except to the customer or his
31 duly authorized agent, any financial records or financial
32 information obtained from financial records relating to that
33 customer of that bank unless:
34 (1) the customer has authorized disclosure to the
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1 person;
2 (2) the financial records are disclosed in response
3 to a lawful subpoena, summons, warrant or court order
4 which meets the requirements of subsection (d) of this
5 Section; or
6 (3) the bank is attempting to collect an obligation
7 owed to the bank and the bank complies with the
8 provisions of Section 2I of the Consumer Fraud and
9 Deceptive Business Practices Act.
10 (d) A bank shall disclose financial records under
11 paragraph (2) of subsection (c) of this Section under a
12 lawful subpoena, summons, warrant, or court order only after
13 the bank mails a copy of the subpoena, summons, warrant, or
14 court order to the person establishing the relationship with
15 the bank, if living, and, otherwise his personal
16 representative, if known, at his last known address by first
17 class mail, postage prepaid, unless the bank is specifically
18 prohibited from notifying the person by order of court or by
19 applicable State or federal law. A bank shall not mail a
20 copy of a subpoena to any person pursuant to this subsection
21 if the subpoena was issued by a grand jury under the
22 Statewide Grand Jury Act.
23 (e) Any officer or employee of a bank who knowingly and
24 willfully furnishes financial records in violation of this
25 Section is guilty of a business offense and, upon conviction,
26 shall be fined not more than $1,000.
27 (f) Any person who knowingly and willfully induces or
28 attempts to induce any officer or employee of a bank to
29 disclose financial records in violation of this Section is
30 guilty of a business offense and, upon conviction, shall be
31 fined not more than $1,000.
32 (g) A bank shall be reimbursed for costs that are
33 reasonably necessary and that have been directly incurred in
34 searching for, reproducing, or transporting books, papers,
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1 records, or other data of a customer required or requested to
2 be produced pursuant to a lawful subpoena, summons, warrant,
3 or court order. The Commissioner shall determine the rates
4 and conditions under which payment may be made.
5 (Source: P.A. 90-18, eff. 7-1-97; 90-665, eff. 7-30-98;
6 91-330, eff. 7-29-99.)
7 Section 10. The Illinois Savings and Loan Act of 1985 is
8 amended by changing Section 3-8 as follows:
9 (205 ILCS 105/3-8) (from Ch. 17, par. 3303-8)
10 Sec. 3-8. Access to books and records; communication
11 with members.
12 (a) Every member or holder of capital shall have the
13 right to inspect the books and records of the association
14 that pertain to his account. Otherwise, the right of
15 inspection and examination of the books and records shall be
16 limited as provided in this Act, and no other person shall
17 have access to the books and records or shall be entitled to
18 a list of the members.
19 (b) For the purpose of this Section, the term "financial
20 records" means any original, any copy, or any summary of (i)
21 a document granting signature authority over a deposit or
22 account; (ii) a statement, ledger card, or other record on
23 any deposit or account that shows each transaction in or with
24 respect to that account; (iii) a check, draft, or money order
25 drawn on an association or issued and payable by an
26 association; or (iv) any other item containing information
27 pertaining to any relationship established in the ordinary
28 course of an association's business between an association
29 and its customer.
30 (c) This Section does not prohibit:
31 (1) The preparation, examination, handling, or
32 maintenance of any financial records by any officer,
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1 employee, or agent of an association having custody of
2 those records or the examination of those records by a
3 certified public accountant engaged by the association to
4 perform an independent audit;
5 (2) The examination of any financial records by, or
6 the furnishing of financial records by an association to,
7 any officer, employee, or agent of the Commissioner of
8 Banks and Real Estate, Federal Savings and Loan Insurance
9 Corporation and its successors, Federal Deposit Insurance
10 Corporation, Resolution Trust Corporation and its
11 successors, Federal Home Loan Bank Board and its
12 successors, Office of Thrift Supervision, Federal Housing
13 Finance Board, Board of Governors of the Federal Reserve
14 System, any Federal Reserve Bank, or the Office of the
15 Comptroller of the Currency for use solely in the
16 exercise of his duties as an officer, employee, or agent;
17 (3) The publication of data furnished from
18 financial records relating to members or holders of
19 capital where the data cannot be identified to any
20 particular member, holder of capital, or account;
21 (4) The making of reports or returns required under
22 Chapter 61 of the Internal Revenue Code of 1986;
23 (5) Furnishing information concerning the dishonor
24 of any negotiable instrument permitted to be disclosed
25 under the Uniform Commercial Code;
26 (6) The exchange in the regular course of business
27 of credit information between an association and other
28 associations or financial institutions or commercial
29 enterprises, directly or through a consumer reporting
30 agency;
31 (7) The furnishing of information to the
32 appropriate law enforcement authorities where the
33 association reasonably believes it has been the victim of
34 a crime;
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1 (8) The furnishing of information pursuant to the
2 Uniform Disposition of Unclaimed Property Act;
3 (9) The furnishing of information pursuant to the
4 Illinois Income Tax Act and the Illinois Estate and
5 Generation-Skipping Transfer Tax Act;
6 (10) The furnishing of information pursuant to the
7 federal "Currency and Foreign Transactions Reporting
8 Act", (Title 31, United States Code, Section 1051 et
9 seq.);
10 (11) The furnishing of information pursuant to any
11 other statute that by its terms or by regulations
12 promulgated thereunder requires the disclosure of
13 financial records other than by subpoena, summons,
14 warrant, or court order;
15 (12) The exchange of information between an
16 association and an affiliate of the association; as used
17 in this item, "affiliate" includes any company,
18 partnership, or organization that controls, is controlled
19 by, or is under common control with an association.
20 (13) The furnishing of information in accordance
21 with the federal Personal Responsibility and Work
22 Opportunity Reconciliation Act of 1996. Any association
23 governed by this Act shall enter into an agreement for
24 data exchanges with a State agency provided the State
25 agency pays to the association a reasonable fee not to
26 exceed its actual cost incurred. An association
27 providing information in accordance with this item shall
28 not be liable to any account holder or other person for
29 any disclosure of information to a State agency, for
30 encumbering or surrendering any assets held by the
31 association in response to a lien or order to withhold
32 and deliver issued by a State agency, or for any other
33 action taken pursuant to this item, including individual
34 or mechanical errors, provided the action does not
-9- LRB9111985JSpc
1 constitute gross negligence or willful misconduct. An
2 association shall have no obligation to hold, encumber,
3 or surrender assets until it has been served with a
4 subpoena, summons, warrant, court or administrative
5 order, lien, or levy.
6 (14) The furnishing of information to: (a) law
7 enforcement authorities, the Illinois Department on Aging
8 and its regional administrative and provider agencies,
9 and public guardians, if the association suspects that a
10 customer who is an elderly or disabled person has been or
11 may become the victim of financial exploitation or other
12 crime and (b) any other financial institution or other
13 third party, if the association believes that the
14 furnishing of the information may prevent financial
15 exploitation of the elderly or disabled person. For
16 purposes of this item (14), the term: (i) "elderly
17 person" means a person who is or reasonably appears to
18 the association to be 60 or more years of age, (ii)
19 "disabled person" means a person who has or reasonably
20 appears to the association to have a physical or mental
21 disability that impairs his or her ability to seek or
22 obtain protection from or prevent financial exploitation,
23 and (iii) "financial exploitation" means tortious or
24 illegal use of the assets or resources of an elderly or
25 disabled person, and includes, without limitation,
26 misappropriation of the elderly or disabled person's
27 assets or resources by undue influence, breach of
28 fiduciary relationship, intimidation, fraud, deception,
29 extortion, or the use of assets or resources in any
30 manner contrary to law.
31 (d) An association may not disclose to any person,
32 except to the member or holder of capital or his duly
33 authorized agent, any financial records relating to that
34 member or holder of capital of that association unless:
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1 (1) The member or holder of capital has authorized
2 disclosure to the person; or
3 (2) The financial records are disclosed in response
4 to a lawful subpoena, summons, warrant, or court order
5 that meets the requirements of subsection (e) of this
6 Section.
7 (e) An association shall disclose financial records
8 under subsection (d) of this Section pursuant to a lawful
9 subpoena, summons, warrant, or court order only after the
10 association mails a copy of the subpoena, summons, warrant,
11 or court order to the person establishing the relationship
12 with the association, if living, and, otherwise, his personal
13 representative, if known, at his last known address by first
14 class mail, postage prepaid, unless the association is
15 specifically prohibited from notifying that person by order
16 of court.
17 (f) (1) Any officer or employee of an association who
18 knowingly and willfully furnishes financial records in
19 violation of this Section is guilty of a business offense
20 and, upon conviction, shall be fined not more than $1,000.
21 (2) Any person who knowingly and willfully induces or
22 attempts to induce any officer or employee of an association
23 to disclose financial records in violation of this Section is
24 guilty of a business offense and, upon conviction, shall be
25 fined not more than $1,000.
26 (g) However, if any member desires to communicate with
27 the other members of the association with reference to any
28 question pending or to be presented at a meeting of the
29 members, the association shall give him upon request a
30 statement of the approximate number of members entitled to
31 vote at the meeting and an estimate of the cost of preparing
32 and mailing the communication. The requesting member then
33 shall submit the communication to the Commissioner who, if he
34 finds it to be appropriate and truthful, shall direct that it
-11- LRB9111985JSpc
1 be prepared and mailed to the members upon the requesting
2 member's payment or adequate provision for payment of the
3 expenses of preparation and mailing.
4 (h) An Association shall be reimbursed for costs that
5 are necessary and that have been directly incurred in
6 searching for, reproducing, or transporting books, papers,
7 records, or other data of a customer required to be
8 reproduced pursuant to a lawful subpoena, warrant, or court
9 order.
10 (Source: P.A. 89-508, eff. 7-3-96; 90-18, eff. 7-1-97.)
11 Section 15. The Savings Bank Act is amended by changing
12 Section 4013 as follows:
13 (205 ILCS 205/4013) (from Ch. 17, par. 7304-13)
14 Sec. 4013. Access to books and records; communication
15 with members and shareholders.
16 (a) Every member or shareholder shall have the right to
17 inspect books and records of the savings bank that pertain to
18 his accounts. Otherwise, the right of inspection and
19 examination of the books and records shall be limited as
20 provided in this Act, and no other person shall have access
21 to the books and records nor shall be entitled to a list of
22 the members or shareholders.
23 (b) For the purpose of this Section, the term "financial
24 records" means any original, any copy, or any summary of (1)
25 a document granting signature authority over a deposit or
26 account; (2) a statement, ledger card, or other record on any
27 deposit or account that shows each transaction in or with
28 respect to that account; (3) a check, draft, or money order
29 drawn on a savings bank or issued and payable by a savings
30 bank; or (4) any other item containing information pertaining
31 to any relationship established in the ordinary course of a
32 savings bank's business between a savings bank and its
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1 customer.
2 (c) This Section does not prohibit:
3 (1) The preparation examination, handling, or
4 maintenance of any financial records by any officer,
5 employee, or agent of a savings bank having custody of
6 records or examination of records by a certified public
7 accountant engaged by the savings bank to perform an
8 independent audit.
9 (2) The examination of any financial records by, or
10 the furnishing of financial records by a savings bank to,
11 any officer, employee, or agent of the Commissioner of
12 Banks and Real Estate or the Federal Deposit Insurance
13 Corporation for use solely in the exercise of his duties
14 as an officer, employee, or agent.
15 (3) The publication of data furnished from
16 financial records relating to members or holders of
17 capital where the data cannot be identified to any
18 particular member, shareholder, 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
22 of any negotiable instrument permitted to be disclosed
23 under the Uniform Commercial Code.
24 (6) The exchange in the regular course of business
25 of credit information between a savings bank and other
26 savings banks or financial institutions or commercial
27 enterprises, directly or through a consumer reporting
28 agency.
29 (7) The furnishing of information to the
30 appropriate law enforcement authorities where the savings
31 bank reasonably believes it has been the victim of a
32 crime.
33 (8) The furnishing of information pursuant to the
34 Uniform Disposition of Unclaimed Property Act.
-13- LRB9111985JSpc
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
6 Act", (Title 31, United States Code, Section 1051 et
7 seq.).
8 (11) The furnishing of information pursuant to any
9 other statute which by its terms or by regulations
10 promulgated thereunder requires the disclosure of
11 financial records other than by subpoena, summons,
12 warrant, or court order.
13 (12) The furnishing of information in accordance
14 with the federal Personal Responsibility and Work
15 Opportunity Reconciliation Act of 1996. Any savings bank
16 governed by this Act shall enter into an agreement for
17 data exchanges with a State agency provided the State
18 agency pays to the savings bank a reasonable fee not to
19 exceed its actual cost incurred. A savings bank
20 providing information in accordance with this item shall
21 not be liable to any account holder or other person for
22 any disclosure of information to a State agency, for
23 encumbering or surrendering any assets held by the
24 savings bank in response to a lien or order to withhold
25 and deliver issued by a State agency, or for any other
26 action taken pursuant to this item, including individual
27 or mechanical errors, provided the action does not
28 constitute gross negligence or willful misconduct. A
29 savings bank shall have no obligation to hold, encumber,
30 or surrender assets until it has been served with a
31 subpoena, summons, warrant, court or administrative
32 order, lien, or levy.
33 (13) The furnishing of information to: (a) law
34 enforcement authorities, the Illinois Department on Aging
-14- LRB9111985JSpc
1 and its regional administrative and provider agencies,
2 and public guardians, if the savings bank suspects that a
3 customer who is an elderly or disabled person has been or
4 may become the victim of financial exploitation or other
5 crime and (b) any other financial institution or other
6 third party, if the savings bank believes that the
7 furnishing of the information may prevent financial
8 exploitation of the elderly or disabled person. For
9 purposes of this item (13), the term: (i) "elderly
10 person" means a person who is or reasonably appears to
11 the savings bank to be 60 or more years of age, (ii)
12 "disabled person" means a person who has or reasonably
13 appears to the savings bank to have a physical or mental
14 disability that impairs his or her ability to seek or
15 obtain protection from or prevent financial exploitation,
16 and (iii) "financial exploitation" means tortious or
17 illegal use of the assets or resources of an elderly or
18 disabled person, and includes, without limitation,
19 misappropriation of the elderly or disabled person's
20 assets or resources by undue influence, breach of
21 fiduciary relationship, intimidation, fraud, deception,
22 extortion, or the use of assets or resources in any
23 manner contrary to law.
24 (d) A savings bank may not disclose to any person,
25 except to the member or holder of capital or his duly
26 authorized agent, any financial records relating to that
27 member or shareholder of the savings bank unless:
28 (1) the member or shareholder has authorized
29 disclosure to the person; or
30 (2) the financial records are disclosed in response
31 to a lawful subpoena, summons, warrant, or court order
32 that meets the requirements of subsection (e) of this
33 Section.
34 (e) A savings bank shall disclose financial records
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1 under subsection (d) of this Section pursuant to a lawful
2 subpoena, summons, warrant, or court order only after the
3 savings bank mails a copy of the subpoena, summons, warrant,
4 or court order to the person establishing the relationship
5 with the savings bank, if living, and otherwise, his personal
6 representative, if known, at his last known address by first
7 class mail, postage prepaid, unless the savings bank is
8 specifically prohibited from notifying the person by order of
9 court.
10 (f) Any officer or employee of a savings bank who
11 knowingly and willfully furnishes financial records in
12 violation of this Section is guilty of a business offense
13 and, upon conviction, shall be fined not more than $1,000.
14 (g) Any person who knowingly and willfully induces or
15 attempts to induce any officer or employee of a savings bank
16 to 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 (h) If any member or shareholder desires to communicate
20 with the other members or shareholders of the savings bank
21 with reference to any question pending or to be presented at
22 an annual or special meeting, the savings bank shall give
23 that person, upon request, a statement of the approximate
24 number of members or shareholders entitled to vote at the
25 meeting and an estimate of the cost of preparing and mailing
26 the communication. The requesting member shall submit the
27 communication to the Commissioner who, upon finding it to be
28 appropriate and truthful, shall direct that it be prepared
29 and mailed to the members upon the requesting member's or
30 shareholder's payment or adequate provision for payment of
31 the expenses of preparation and mailing.
32 (i) A savings bank shall be reimbursed for costs that
33 are necessary and that have been directly incurred in
34 searching for, reproducing, or transporting books, papers,
-16- LRB9111985JSpc
1 records, or other data of a customer required to be
2 reproduced pursuant to a lawful subpoena, warrant, or court
3 order.
4 (j) Notwithstanding the provisions of this Section, a
5 savings bank may sell or otherwise make use of lists of
6 customers' names and addresses. All other information
7 regarding a customer's account are subject to the disclosure
8 provisions of this Section. At the request of any customer,
9 that customer's name and address shall be deleted from any
10 list that is to be sold or used in any other manner beyond
11 identification of the customer's accounts.
12 (Source: P.A. 89-508, eff. 7-3-96; 90-18, eff. 7-1-97.)
13 Section 20. The Illinois Credit Union Act is amended by
14 changing Section 10 as follows:
15 (205 ILCS 305/10) (from Ch. 17, par. 4411)
16 Sec. 10. Credit union records; member financial records.
17 (1) A credit union shall establish and maintain books,
18 records, accounting systems and procedures which accurately
19 reflect its operations and which enable the Department to
20 readily ascertain the true financial condition of the credit
21 union and whether it is complying with this Act.
22 (2) A photostatic or photographic reproduction of any
23 credit union records shall be admissible as evidence of
24 transactions with the credit union.
25 (3) (a) For the purpose of this Section, the term
26 "financial records" means any original, any copy, or any
27 summary of (1) a document granting signature authority
28 over an account, (2) a statement, ledger card or other
29 record on any account which shows each transaction in or
30 with respect to that account, (3) a check, draft or money
31 order drawn on a financial institution or other entity or
32 issued and payable by or through a financial institution
-17- LRB9111985JSpc
1 or other entity, or (4) any other item containing
2 information pertaining to any relationship established in
3 the ordinary course of business between a credit union
4 and its member.
5 (b) This Section does not prohibit:
6 (1) The preparation, examination, handling or
7 maintenance of any financial records by any officer,
8 employee or agent of a credit union having custody
9 of such records, or the examination of such records
10 by a certified public accountant engaged by the
11 credit union to perform an independent audit;
12 (2) The examination of any financial records
13 by or the furnishing of financial records by a
14 credit union to any officer, employee or agent of
15 the Department, the National Credit Union
16 Administration, Federal Reserve board or any insurer
17 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
20 financial records relating to members where the data
21 cannot be identified to any particular customer of
22 account;
23 (4) The making of reports or returns required
24 under Chapter 61 of the Internal Revenue Code of
25 1954;
26 (5) Furnishing information concerning the
27 dishonor of any negotiable instrument permitted to
28 be disclosed under the Uniform Commercial Code;
29 (6) The exchange in the regular course of
30 business of credit information between a credit
31 union and other credit unions or financial
32 institutions or commercial enterprises, directly or
33 through a consumer reporting agency;
34 (7) The furnishing of information to the
-18- LRB9111985JSpc
1 appropriate law enforcement authorities where the
2 credit union reasonably believes it has been the
3 victim of a crime;
4 (8) The furnishing of information pursuant to
5 the Uniform Disposition of Unclaimed Property Act;
6 (9) The furnishing of information pursuant to
7 the Illinois Income Tax Act and the Illinois Estate
8 and Generation-Skipping Transfer Tax Act;
9 (10) The furnishing of information pursuant to
10 the federal "Currency and Foreign Transactions
11 Reporting Act", Title 31, United States Code,
12 Section 1051 et sequentia; or
13 (11) The furnishing of information pursuant to
14 any other statute which by its terms or by
15 regulations promulgated thereunder requires the
16 disclosure of financial records other than by
17 subpoena, summons, warrant or court order.
18 (12) The furnishing of information in
19 accordance with the federal Personal Responsibility
20 and Work Opportunity Reconciliation Act of 1996. Any
21 credit union governed by this Act shall enter into
22 an agreement for data exchanges with a State agency
23 provided the State agency pays to the credit union a
24 reasonable fee not to exceed its actual cost
25 incurred. A credit union providing information in
26 accordance with this item shall not be liable to any
27 account holder or other person for any disclosure of
28 information to a State agency, for encumbering or
29 surrendering any assets held by the credit union in
30 response to a lien or order to withhold and deliver
31 issued by a State agency, or for any other action
32 taken pursuant to this item, including individual or
33 mechanical errors, provided the action does not
34 constitute gross negligence or willful misconduct. A
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1 credit union shall have no obligation to hold,
2 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: (a) law
6 enforcement authorities, the Illinois Department on Aging
7 and its regional administrative and provider agencies,
8 and public guardians, if the credit union suspects that a
9 member who is an elderly or disabled person has been or
10 may become the victim of financial exploitation or other
11 crime and (b) any other financial institution or other
12 third party, if the credit union believes that the
13 furnishing of the information may prevent financial
14 exploitation of the elderly or disabled member. For
15 purposes of this item (13), the term: (i) "elderly
16 person" means a person who is or reasonably appears to
17 the credit union to be 60 or more years of age, (ii)
18 "disabled person" means a person who has or reasonably
19 appears to the credit union to have a physical or mental
20 disability that impairs his or her ability to seek or
21 obtain protection from or prevent financial exploitation,
22 and (iii) "financial exploitation" means tortious or
23 illegal use of the assets or resources of an elderly or
24 disabled person, and includes, without limitation,
25 misappropriation of the elderly or disabled person's
26 assets or resources by undue influence, breach of
27 fiduciary relationship, intimidation, fraud, deception,
28 extortion, or the use of assets or resources in any
29 manner contrary to law.
30 (c) A credit union may not disclose to any person,
31 except to the member or his duly authorized agent, any
32 financial records relating to that member of the credit union
33 unless:
34 (1) the member has authorized disclosure to the
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1 person;
2 (2) the financial records are disclosed in response
3 to a lawful subpoena, summons, warrant or court order
4 that meets the requirements of subparagraph (d) of this
5 Section; or
6 (3) the credit union is attempting to collect an
7 obligation owed to the credit union and the credit union
8 complies with the provisions of Section 2I of the
9 Consumer Fraud and Deceptive Business Practices Act.
10 (d) A credit union shall disclose financial records
11 under subparagraph (c)(2) of this Section pursuant to a
12 lawful subpoena, summons, warrant or court order only after
13 the credit union mails a copy of the subpoena, summons,
14 warrant or court order to the person establishing the
15 relationship with the credit union, if living, and otherwise
16 his personal representative, if known, at his last known
17 address by first class mail, postage prepaid unless the
18 credit union is specifically prohibited from notifying the
19 person by order of court or by applicable State or federal
20 law. In the case of a grand jury subpoena, a credit union
21 shall not mail a copy of a subpoena to any person pursuant to
22 this subsection if the subpoena was issued by a grand jury
23 under the Statewide Grand Jury Act or notifying the person
24 would constitute a violation of the federal Right to
25 Financial Privacy Act of 1978.
26 (e) (1) Any officer or employee of a credit union who
27 knowingly and wilfully furnishes financial records in
28 violation of this Section is guilty of a business offense
29 and upon conviction thereof shall be fined not more than
30 $1,000.
31 (2) Any person who knowingly and wilfully induces
32 or attempts to induce any officer or employee of a credit
33 union to disclose financial records in violation of this
34 Section is guilty of a business offense and upon
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1 conviction thereof shall be fined not more than $1,000.
2 (f) A credit union shall be reimbursed for costs which
3 are reasonably necessary and which have been directly
4 incurred in searching for, reproducing or transporting books,
5 papers, records or other data of a member required or
6 requested to be produced pursuant to a lawful subpoena,
7 summons, warrant or court order.
8 (Source: P.A. 89-603, eff. 8-2-96; 90-18, eff. 7-1-97.)
9 Section 99. Effective date. This Act takes effect upon
10 becoming law.