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91_HB3838
LRB9112086JSgc
1 AN ACT concerning customer financial accounts.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Illinois Banking Act is amended by
5 changing Section 48.1 as follows:
6 (205 ILCS 5/48.1) (from Ch. 17, par. 360)
7 Sec. 48.1. Customer financial records; confidentiality.
8 (a) For the purpose of this Section, the term "financial
9 records" means any original, any copy, or any summary of:
10 (1) a document granting signature authority over a
11 deposit or account;
12 (2) a statement, ledger card or other record on any
13 deposit or account, which shows each transaction in or
14 with respect to that account;
15 (3) a check, draft or money order drawn on a bank
16 or issued and payable by a bank; or
17 (4) any other item containing information
18 pertaining to any relationship established in the
19 ordinary course of a bank's business between a bank and
20 its customer, including financial statements or other
21 financial information provided by the customer.
22 (b) This Section does not prohibit:
23 (1) The preparation, examination, handling or
24 maintenance of any financial records by any officer,
25 employee or agent of a bank having custody of the
26 records, or the examination of the records by a certified
27 public accountant engaged by the bank to perform an
28 independent audit.
29 (2) The examination of any financial records by, or
30 the furnishing of financial records by a bank to, any
31 officer, employee or agent of (i) the Commissioner of
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1 Banks and Real Estate, (ii) after May 31, 1997, a state
2 regulatory authority authorized to examine a branch of a
3 State bank located in another state, (iii) the
4 Comptroller of the Currency, (iv) the Federal Reserve
5 Board, or (v) the Federal Deposit Insurance Corporation
6 for use solely in the exercise of his duties as an
7 officer, employee, or agent.
8 (3) The publication of data furnished from
9 financial records relating to customers where the data
10 cannot be identified to any particular customer or
11 account.
12 (4) The making of reports or returns required under
13 Chapter 61 of the Internal Revenue Code of 1986.
14 (5) Furnishing information concerning the dishonor
15 of any negotiable instrument permitted to be disclosed
16 under the Uniform Commercial Code.
17 (6) The exchange in the regular course of business
18 of (i) credit information between a bank and other banks
19 or financial institutions or commercial enterprises,
20 directly or through a consumer reporting agency or (ii)
21 financial records or information derived from financial
22 records between a bank and other banks or financial
23 institutions or commercial enterprises for the purpose of
24 conducting due diligence pursuant to a purchase or sale
25 involving the bank or assets or liabilities of the bank.
26 (7) The furnishing of information to the
27 appropriate law enforcement authorities where the bank
28 reasonably believes it has been the victim of a crime.
29 (8) The furnishing of information under the Uniform
30 Disposition of Unclaimed Property Act.
31 (9) The furnishing of information under the
32 Illinois Income Tax Act and the Illinois Estate and
33 Generation-Skipping Transfer Tax Act.
34 (10) The furnishing of information under the
-3- LRB9112086JSgc
1 federal Currency and Foreign Transactions Reporting Act
2 Title 31, United States Code, Section 1051 et seq.
3 (11) The furnishing of information under any other
4 statute that by its terms or by regulations promulgated
5 thereunder requires the disclosure of financial records
6 other than by subpoena, summons, warrant, or court order.
7 (12) The furnishing of information about the
8 existence of an account of a person to a judgment
9 creditor of that person who has made a written request
10 for that information.
11 (13) The exchange in the regular course of business
12 of information between commonly owned banks in connection
13 with a transaction authorized under paragraph (23) of
14 Section 5 and conducted at an affiliate facility.
15 (14) The furnishing of information in accordance
16 with the federal Personal Responsibility and Work
17 Opportunity Reconciliation Act of 1996. Any bank governed
18 by this Act shall enter into an agreement for data
19 exchanges with a State agency provided the State agency
20 pays to the bank a reasonable fee not to exceed its
21 actual cost incurred. A bank providing information in
22 accordance with this item shall not be liable to any
23 account holder or other person for any disclosure of
24 information to a State agency, for encumbering or
25 surrendering any assets held by the bank in response to a
26 lien or order to withhold and deliver issued by a State
27 agency, or for any other action taken pursuant to this
28 item, including individual or mechanical errors, provided
29 the action does not constitute gross negligence or
30 willful misconduct. A bank shall have no obligation to
31 hold, encumber, or surrender assets until it has been
32 served with a subpoena, summons, warrant, court or
33 administrative order, lien, or levy.
34 (15) The exchange in the regular course of business
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1 of information between a bank and any commonly owned
2 affiliate of the bank, subject to the provisions of the
3 Financial Institutions Insurance Sales Law.
4 (16) The furnishing of information to: (a) law
5 enforcement authorities, the Illinois Department on Aging
6 and its regional administrative and provider agencies,
7 and public guardians, if the bank suspects that a
8 customer who is an elderly or disabled person has been or
9 may become the victim of financial exploitation or other
10 crime and (b) any other financial institution or other
11 third party, if the bank believes that the furnishing of
12 the information may prevent financial exploitation of the
13 elderly or disabled person. A bank or person furnishing
14 financial information pursuant to this item (16) shall be
15 immune from criminal or civil liability or licensing
16 disciplinary action on account of the furnishing of that
17 information, notwithstanding any requirements concerning
18 the confidentiality of information with respect to such
19 elderly or disabled person that might otherwise be
20 applicable. For purposes of this item (16), the term:
21 (i) "elderly person" means a person who is or reasonably
22 appears to the bank to be 60 or more years of age, (ii)
23 "disabled person" means a person who has or reasonably
24 appears to the bank to have a physical or mental
25 disability that impairs his or her ability to seek or
26 obtain protection from or prevent financial exploitation,
27 and (iii) "financial exploitation" means tortious or
28 illegal use of the assets or resources of an elderly or
29 disabled person, and includes, without limitation,
30 misappropriation of the elderly or disabled person's
31 assets or resources by undue influence, breach of
32 fiduciary relationship, intimidation, fraud, deception,
33 extortion, or the use of assets or resources in any
34 manner contrary to law.
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1 (c) Except as otherwise provided by this Act, a bank may
2 not disclose to any person, except to the customer or his
3 duly authorized agent, any financial records or financial
4 information obtained from financial records relating to that
5 customer of that bank unless:
6 (1) the customer has authorized disclosure to the
7 person;
8 (2) the financial records are disclosed in response
9 to a lawful subpoena, summons, warrant or court order
10 which meets the requirements of subsection (d) of this
11 Section; or
12 (3) the bank is attempting to collect an obligation
13 owed to the bank and the bank complies with the
14 provisions of Section 2I of the Consumer Fraud and
15 Deceptive Business Practices Act.
16 (d) A bank shall disclose financial records under
17 paragraph (2) of subsection (c) of this Section under a
18 lawful subpoena, summons, warrant, or court order only after
19 the bank mails a copy of the subpoena, summons, warrant, or
20 court order to the person establishing the relationship with
21 the bank, if living, and, otherwise his personal
22 representative, if known, at his last known address by first
23 class mail, postage prepaid, unless the bank is specifically
24 prohibited from notifying the person by order of court or by
25 applicable State or federal law. A bank shall not mail a
26 copy of a subpoena to any person pursuant to this subsection
27 if the subpoena was issued by a grand jury under the
28 Statewide Grand Jury Act.
29 (e) Any officer or employee of a bank who knowingly and
30 willfully furnishes financial records in violation of this
31 Section is guilty of a business offense and, upon conviction,
32 shall be fined not more than $1,000.
33 (f) Any person who knowingly and willfully induces or
34 attempts to induce any officer or employee of a bank to
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1 disclose financial records in violation of this Section is
2 guilty of a business offense and, upon conviction, shall be
3 fined not more than $1,000.
4 (g) A bank shall be reimbursed for costs that are
5 reasonably 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 or requested to
8 be produced pursuant to a lawful subpoena, summons, warrant,
9 or court order. The Commissioner shall determine the rates
10 and conditions under which payment may be made.
11 (Source: P.A. 90-18, eff. 7-1-97; 90-665, eff. 7-30-98;
12 91-330, eff. 7-29-99.)
13 Section 10. The Illinois Savings and Loan Act of 1985 is
14 amended by changing Section 3-8 as follows:
15 (205 ILCS 105/3-8) (from Ch. 17, par. 3303-8)
16 Sec. 3-8. Access to books and records; communication
17 with members.
18 (a) Every member or holder of capital shall have the
19 right to inspect the books and records of the association
20 that pertain to his account. Otherwise, the right of
21 inspection and examination of the books and records shall be
22 limited as provided in this Act, and no other person shall
23 have access to the books and records or shall be entitled to
24 a list of the members.
25 (b) For the purpose of this Section, the term "financial
26 records" means any original, any copy, or any summary of (i)
27 a document granting signature authority over a deposit or
28 account; (ii) a statement, ledger card, or other record on
29 any deposit or account that shows each transaction in or with
30 respect to that account; (iii) a check, draft, or money order
31 drawn on an association or issued and payable by an
32 association; or (iv) any other item containing information
-7- LRB9112086JSgc
1 pertaining to any relationship established in the ordinary
2 course of an association's business between an association
3 and its customer.
4 (c) This Section does not prohibit:
5 (1) The preparation, examination, handling, or
6 maintenance of any financial records by any officer,
7 employee, or agent of an association having custody of
8 those records or the examination of those records by a
9 certified public accountant engaged by the association to
10 perform an independent audit;
11 (2) The examination of any financial records by, or
12 the furnishing of financial records by an association to,
13 any officer, employee, or agent of the Commissioner of
14 Banks and Real Estate, Federal Savings and Loan Insurance
15 Corporation and its successors, Federal Deposit Insurance
16 Corporation, Resolution Trust Corporation and its
17 successors, Federal Home Loan Bank Board and its
18 successors, Office of Thrift Supervision, Federal Housing
19 Finance Board, Board of Governors of the Federal Reserve
20 System, any Federal Reserve Bank, or the Office of the
21 Comptroller of the Currency for use solely in the
22 exercise of his duties as an officer, employee, or agent;
23 (3) The publication of data furnished from
24 financial records relating to members or holders of
25 capital where the data cannot be identified to any
26 particular member, holder of capital, or account;
27 (4) The making of reports or returns required under
28 Chapter 61 of the Internal Revenue Code of 1986;
29 (5) Furnishing information concerning the dishonor
30 of any negotiable instrument permitted to be disclosed
31 under the Uniform Commercial Code;
32 (6) The exchange in the regular course of business
33 of credit information between an association and other
34 associations or financial institutions or commercial
-8- LRB9112086JSgc
1 enterprises, directly or through a consumer reporting
2 agency;
3 (7) The furnishing of information to the
4 appropriate law enforcement authorities where the
5 association reasonably believes it has been the victim of
6 a crime;
7 (8) The furnishing of information pursuant to the
8 Uniform Disposition of Unclaimed Property Act;
9 (9) The furnishing of information pursuant to the
10 Illinois Income Tax Act and the Illinois Estate and
11 Generation-Skipping Transfer Tax Act;
12 (10) The furnishing of information pursuant to the
13 federal "Currency and Foreign Transactions Reporting
14 Act", (Title 31, United States Code, Section 1051 et
15 seq.);
16 (11) The furnishing of information pursuant to any
17 other statute that by its terms or by regulations
18 promulgated thereunder requires the disclosure of
19 financial records other than by subpoena, summons,
20 warrant, or court order;
21 (12) The exchange of information between an
22 association and an affiliate of the association; as used
23 in this item, "affiliate" includes any company,
24 partnership, or organization that controls, is controlled
25 by, or is under common control with an association.
26 (13) The furnishing of information in accordance
27 with the federal Personal Responsibility and Work
28 Opportunity Reconciliation Act of 1996. Any association
29 governed by this Act shall enter into an agreement for
30 data exchanges with a State agency provided the State
31 agency pays to the association a reasonable fee not to
32 exceed its actual cost incurred. An association
33 providing information in accordance with this item shall
34 not be liable to any account holder or other person for
-9- LRB9112086JSgc
1 any disclosure of information to a State agency, for
2 encumbering or surrendering any assets held by the
3 association in response to a lien or order to withhold
4 and deliver issued by a State agency, or for any other
5 action taken pursuant to this item, including individual
6 or mechanical errors, provided the action does not
7 constitute gross negligence or willful misconduct. An
8 association shall have no obligation to hold, encumber,
9 or surrender assets until it has been served with a
10 subpoena, summons, warrant, court or administrative
11 order, lien, or levy.
12 (14) The furnishing of information to: (a) law
13 enforcement authorities, the Illinois Department on Aging
14 and its regional administrative and provider agencies,
15 and public guardians, if the association suspects that a
16 customer who is an elderly or disabled person has been or
17 may become the victim of financial exploitation or other
18 crime and (b) any other financial institution or other
19 third party, if the association believes that the
20 furnishing of the information may prevent financial
21 exploitation of the elderly or disabled person. An
22 association or person furnishing financial information
23 pursuant to this item (14) shall be immune from criminal
24 or civil liability or licensing disciplinary action on
25 account of the furnishing of such information,
26 notwithstanding any requirements concerning the
27 confidentiality of information with respect to such
28 elderly or disabled person that might otherwise be
29 applicable. For purposes of this item (14), the term:
30 (i) "elderly person" means a person who is or reasonably
31 appears to the association to be 60 or more years of age,
32 (ii) "disabled person" means a person who has or
33 reasonably appears to the association to have a physical
34 or mental disability that impairs his or her ability to
-10- LRB9112086JSgc
1 seek or obtain protection from or prevent financial
2 exploitation, and (iii) "financial exploitation" means
3 tortious or illegal use of the assets or resources of an
4 elderly or disabled person, and includes, without
5 limitation, misappropriation of the elderly or disabled
6 person's assets or resources by undue influence, breach
7 of fiduciary relationship, intimidation, fraud,
8 deception, extortion, or the use of assets or resources
9 in any manner contrary to law.
10 (d) An association may not disclose to any person,
11 except to the member or holder of capital or his duly
12 authorized agent, any financial records relating to that
13 member or holder of capital of that association unless:
14 (1) The member or holder of capital has authorized
15 disclosure to the person; or
16 (2) The financial records are disclosed in response
17 to a lawful subpoena, summons, warrant, or court order
18 that meets the requirements of subsection (e) of this
19 Section.
20 (e) An association shall disclose financial records
21 under subsection (d) of this Section pursuant to a lawful
22 subpoena, summons, warrant, or court order only after the
23 association mails a copy of the subpoena, summons, warrant,
24 or court order to the person establishing the relationship
25 with the association, if living, and, otherwise, his personal
26 representative, if known, at his last known address by first
27 class mail, postage prepaid, unless the association is
28 specifically prohibited from notifying that person by order
29 of court.
30 (f) (1) Any officer or employee of an association who
31 knowingly and willfully furnishes financial records in
32 violation of this Section is guilty of a business offense
33 and, upon conviction, shall be fined not more than $1,000.
34 (2) Any person who knowingly and willfully induces or
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1 attempts to induce any officer or employee of an association
2 to disclose financial records in violation of this Section is
3 guilty of a business offense and, upon conviction, shall be
4 fined not more than $1,000.
5 (g) However, if any member desires to communicate with
6 the other members of the association with reference to any
7 question pending or to be presented at a meeting of the
8 members, the association shall give him upon request a
9 statement of the approximate number of members entitled to
10 vote at the meeting and an estimate of the cost of preparing
11 and mailing the communication. The requesting member then
12 shall submit the communication to the Commissioner who, if he
13 finds it to be appropriate and truthful, shall direct that it
14 be prepared and mailed to the members upon the requesting
15 member's payment or adequate provision for payment of the
16 expenses of preparation and mailing.
17 (h) An Association shall be reimbursed for costs that
18 are necessary and that have been directly incurred in
19 searching for, reproducing, or transporting books, papers,
20 records, or other data of a customer required to be
21 reproduced pursuant to a lawful subpoena, warrant, or court
22 order.
23 (Source: P.A. 89-508, eff. 7-3-96; 90-18, eff. 7-1-97.)
24 Section 15. The Savings Bank Act is amended by changing
25 Section 4013 as follows:
26 (205 ILCS 205/4013) (from Ch. 17, par. 7304-13)
27 Sec. 4013. Access to books and records; communication
28 with members and shareholders.
29 (a) Every member or shareholder shall have the right to
30 inspect books and records of the savings bank that pertain to
31 his accounts. Otherwise, the right of inspection and
32 examination of the books and records shall be limited as
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1 provided in this Act, and no other person shall have access
2 to the books and records nor shall be entitled to a list of
3 the members or shareholders.
4 (b) For the purpose of this Section, the term "financial
5 records" means any original, any copy, or any summary of (1)
6 a document granting signature authority over a deposit or
7 account; (2) a statement, ledger card, or other record on any
8 deposit or account that shows each transaction in or with
9 respect to that account; (3) a check, draft, or money order
10 drawn on a savings bank or issued and payable by a savings
11 bank; or (4) any other item containing information pertaining
12 to any relationship established in the ordinary course of a
13 savings bank's business between a savings bank and its
14 customer.
15 (c) This Section does not prohibit:
16 (1) The preparation examination, handling, or
17 maintenance of any financial records by any officer,
18 employee, or agent of a savings bank having custody of
19 records or examination of records by a certified public
20 accountant engaged by the savings bank to perform an
21 independent audit.
22 (2) The examination of any financial records by, or
23 the furnishing of financial records by a savings bank to,
24 any officer, employee, or agent of the Commissioner of
25 Banks and Real Estate or the Federal Deposit Insurance
26 Corporation for use solely in the exercise of his duties
27 as an officer, employee, or agent.
28 (3) The publication of data furnished from
29 financial records relating to members or holders of
30 capital where the data cannot be identified to any
31 particular member, shareholder, or account.
32 (4) The making of reports or returns required under
33 Chapter 61 of the Internal Revenue Code of 1986.
34 (5) Furnishing information concerning the dishonor
-13- LRB9112086JSgc
1 of any negotiable instrument permitted to be disclosed
2 under the Uniform Commercial Code.
3 (6) The exchange in the regular course of business
4 of credit information between a savings bank and other
5 savings banks or financial institutions or commercial
6 enterprises, directly or through a consumer reporting
7 agency.
8 (7) The furnishing of information to the
9 appropriate law enforcement authorities where the savings
10 bank reasonably believes it has been the victim of a
11 crime.
12 (8) The furnishing of information pursuant to the
13 Uniform Disposition of 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
19 Act", (Title 31, United States Code, Section 1051 et
20 seq.).
21 (11) The furnishing of information pursuant to any
22 other statute which by its terms or by regulations
23 promulgated thereunder requires the disclosure of
24 financial records other than by subpoena, summons,
25 warrant, or court order.
26 (12) The furnishing of information in accordance
27 with the federal Personal Responsibility and Work
28 Opportunity Reconciliation Act of 1996. Any savings bank
29 governed by this Act shall enter into an agreement for
30 data exchanges with a State agency provided the State
31 agency pays to the savings bank a reasonable fee not to
32 exceed its actual cost incurred. A savings bank
33 providing information in accordance with this item shall
34 not be liable to any account holder or other person for
-14- LRB9112086JSgc
1 any disclosure of information to a State agency, for
2 encumbering or surrendering any assets held by the
3 savings bank in response to a lien or order to withhold
4 and deliver issued by a State agency, or for any other
5 action taken pursuant to this item, including individual
6 or mechanical errors, provided the action does not
7 constitute gross negligence or willful misconduct. A
8 savings bank shall have no obligation to hold, encumber,
9 or surrender assets until it has been served with a
10 subpoena, summons, warrant, court or administrative
11 order, lien, or levy.
12 (13) The furnishing of information to: (a) law
13 enforcement authorities, the Illinois Department on Aging
14 and its regional administrative and provider agencies,
15 and public guardians, if the savings bank suspects that a
16 customer who is an elderly or disabled person has been or
17 may become the victim of financial exploitation or other
18 crime and (b) any other financial institution or other
19 third party, if the savings bank believes that the
20 furnishing of the information may prevent financial
21 exploitation of the elderly or disabled person. A
22 savings bank or person furnishing financial information
23 pursuant to this item (13) shall be immune from criminal
24 or civil liability or licensing disciplinary action on
25 account of the furnishing of that information,
26 notwithstanding any requirements concerning the
27 confidentiality of information with respect to such
28 elderly or disabled person that might otherwise be
29 applicable. For purposes of this item (13), the term:
30 (i) "elderly person" means a person who is or reasonably
31 appears to the savings bank to be 60 or more years of
32 age, (ii) "disabled person" means a person who has or
33 reasonably appears to the savings bank to have a physical
34 or mental disability that impairs his or her ability to
-15- LRB9112086JSgc
1 seek or obtain protection from or prevent financial
2 exploitation, and (iii) "financial exploitation" means
3 tortious or illegal use of the assets or resources of an
4 elderly or disabled person, and includes, without
5 limitation, misappropriation of the elderly or disabled
6 person's assets or resources by undue influence, breach
7 of fiduciary relationship, intimidation, fraud,
8 deception, extortion, or the use of assets or resources
9 in any manner contrary to law.
10 (d) A savings bank may not disclose to any person,
11 except to the member or holder of capital or his duly
12 authorized agent, any financial records relating to that
13 member or shareholder of the savings bank unless:
14 (1) the member or shareholder has authorized
15 disclosure to the person; or
16 (2) the financial records are disclosed in response
17 to a lawful subpoena, summons, warrant, or court order
18 that meets the requirements of subsection (e) of this
19 Section.
20 (e) A savings bank shall disclose financial records
21 under subsection (d) of this Section pursuant to a lawful
22 subpoena, summons, warrant, or court order only after the
23 savings bank mails a copy of the subpoena, summons, warrant,
24 or court order to the person establishing the relationship
25 with the savings bank, if living, and otherwise, his personal
26 representative, if known, at his last known address by first
27 class mail, postage prepaid, unless the savings bank is
28 specifically prohibited from notifying the person by order of
29 court.
30 (f) Any officer or employee of a savings bank who
31 knowingly and willfully furnishes financial records in
32 violation of this Section is guilty of a business offense
33 and, upon conviction, shall be fined not more than $1,000.
34 (g) Any person who knowingly and willfully induces or
-16- LRB9112086JSgc
1 attempts to induce any officer or employee of a savings bank
2 to disclose financial records in violation of this Section is
3 guilty of a business offense and, upon conviction, shall be
4 fined not more than $1,000.
5 (h) If any member or shareholder desires to communicate
6 with the other members or shareholders of the savings bank
7 with reference to any question pending or to be presented at
8 an annual or special meeting, the savings bank shall give
9 that person, upon request, a statement of the approximate
10 number of members or shareholders entitled to vote at the
11 meeting and an estimate of the cost of preparing and mailing
12 the communication. The requesting member shall submit the
13 communication to the Commissioner who, upon finding it to be
14 appropriate and truthful, shall direct that it be prepared
15 and mailed to the members upon the requesting member's or
16 shareholder's payment or adequate provision for payment of
17 the expenses of preparation and mailing.
18 (i) A savings bank shall be reimbursed for costs that
19 are necessary and that have been directly incurred in
20 searching for, reproducing, or transporting books, papers,
21 records, or other data of a customer required to be
22 reproduced pursuant to a lawful subpoena, warrant, or court
23 order.
24 (j) Notwithstanding the provisions of this Section, a
25 savings bank may sell or otherwise make use of lists of
26 customers' names and addresses. All other information
27 regarding a customer's account are subject to the disclosure
28 provisions of this Section. At the request of any customer,
29 that customer's name and address shall be deleted from any
30 list that is to be sold or used in any other manner beyond
31 identification of the customer's accounts.
32 (Source: P.A. 89-508, eff. 7-3-96; 90-18, eff. 7-1-97.)
33 Section 20. The Illinois Credit Union Act is amended by
-17- LRB9112086JSgc
1 changing Section 10 as follows:
2 (205 ILCS 305/10) (from Ch. 17, par. 4411)
3 Sec. 10. Credit union records; member financial records.
4 (1) A credit union shall establish and maintain books,
5 records, accounting systems and procedures which accurately
6 reflect its operations and which enable the Department to
7 readily ascertain the true financial condition of the credit
8 union and whether it is complying with this Act.
9 (2) A photostatic or photographic reproduction of any
10 credit union records shall be admissible as evidence of
11 transactions with the credit union.
12 (3) (a) For the purpose of this Section, the term
13 "financial records" means any original, any copy, or any
14 summary of (1) a document granting signature authority
15 over an account, (2) a statement, ledger card or other
16 record on any account which shows each transaction in or
17 with respect to that account, (3) a check, draft or money
18 order drawn on a financial institution or other entity or
19 issued and payable by or through a financial institution
20 or other entity, or (4) any other item containing
21 information pertaining to any relationship established in
22 the ordinary course of business between a credit union
23 and its member.
24 (b) This Section does not prohibit:
25 (1) The preparation, examination, handling or
26 maintenance of any financial records by any officer,
27 employee or agent of a credit union having custody
28 of such records, or the examination of such records
29 by a certified public accountant engaged by the
30 credit union to perform an independent audit;
31 (2) The examination of any financial records
32 by or the furnishing of financial records by a
33 credit union to any officer, employee or agent of
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1 the Department, the National Credit Union
2 Administration, Federal Reserve board or any insurer
3 of share accounts for use solely in the exercise of
4 his duties as an officer, employee or agent;
5 (3) The publication of data furnished from
6 financial records relating to members where the data
7 cannot be identified to any particular customer of
8 account;
9 (4) The making of reports or returns required
10 under Chapter 61 of the Internal Revenue Code of
11 1954;
12 (5) Furnishing information concerning the
13 dishonor of any negotiable instrument permitted to
14 be disclosed under the Uniform Commercial Code;
15 (6) The exchange in the regular course of
16 business of credit information between a credit
17 union and other credit unions or financial
18 institutions or commercial enterprises, directly or
19 through a consumer reporting agency;
20 (7) The furnishing of information to the
21 appropriate law enforcement authorities where the
22 credit union reasonably believes it has been the
23 victim of a crime;
24 (8) The furnishing of information pursuant to
25 the Uniform Disposition of Unclaimed Property Act;
26 (9) The furnishing of information pursuant to
27 the Illinois Income Tax Act and the Illinois Estate
28 and Generation-Skipping Transfer Tax Act;
29 (10) The furnishing of information pursuant to
30 the federal "Currency and Foreign Transactions
31 Reporting Act", Title 31, United States Code,
32 Section 1051 et sequentia; or
33 (11) The furnishing of information pursuant to
34 any other statute which by its terms or by
-19- LRB9112086JSgc
1 regulations promulgated thereunder requires the
2 disclosure of financial records other than by
3 subpoena, summons, warrant or court order.
4 (12) The furnishing of information in
5 accordance with the federal Personal Responsibility
6 and Work Opportunity Reconciliation Act of 1996. Any
7 credit union governed by this Act shall enter into
8 an agreement for data exchanges with a State agency
9 provided the State agency pays to the credit union a
10 reasonable fee not to exceed its actual cost
11 incurred. A credit union providing information in
12 accordance with this item shall not be liable to any
13 account holder or other person for any disclosure of
14 information to a State agency, for encumbering or
15 surrendering any assets held by the credit union in
16 response to a lien or order to withhold and deliver
17 issued by a State agency, or for any other action
18 taken pursuant to this item, including individual or
19 mechanical errors, provided the action does not
20 constitute gross negligence or willful misconduct. A
21 credit union shall have no obligation to hold,
22 encumber, or surrender assets until it has been
23 served with a subpoena, summons, warrant, court or
24 administrative order, lien, or levy.
25 (13) The furnishing of information to: (a) law
26 enforcement authorities, the Illinois Department on
27 Aging and its regional administrative and provider
28 agencies, and public guardians, if the credit union
29 suspects that a member who is an elderly or disabled
30 person has been or may become the victim of
31 financial exploitation or other crime and (b) any
32 other financial institution or other third party, if
33 the credit union believes that the furnishing of the
34 information may prevent financial exploitation of
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1 the elderly or disabled member. A credit union or
2 person furnishing financial information pursuant to
3 this item (13) shall be immune from criminal or
4 civil liability or licensing disciplinary action on
5 account of the furnishing of that information,
6 notwithstanding any requirements concerning the
7 confidentiality of information with respect to such
8 elderly or disabled member that might otherwise be
9 applicable. For purposes of this item (13), the
10 term: (i) "elderly person" means a person who is or
11 reasonably appears to the credit union to be 60 or
12 more years of age, (ii) "disabled person" means a
13 person who has or reasonably appears to the credit
14 union to have a physical or mental disability that
15 impairs his or her ability to seek or obtain
16 protection from or prevent financial exploitation,
17 and (iii) "financial exploitation" means tortious or
18 illegal use of the assets or resources of an elderly
19 or disabled person, and includes, without
20 limitation, misappropriation of the elderly or
21 disabled person's assets or resources by undue
22 influence, breach of fiduciary relationship,
23 intimidation, fraud, deception, extortion, or the
24 use of assets or resources in any manner contrary to
25 law.
26 (c) A credit union may not disclose to any person,
27 except to the member or his duly authorized agent, any
28 financial records relating to that member of the credit union
29 unless:
30 (1) the member has authorized disclosure to the
31 person;
32 (2) the financial records are disclosed in response
33 to a lawful subpoena, summons, warrant or court order
34 that meets the requirements of subparagraph (d) of this
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1 Section; or
2 (3) the credit union is attempting to collect an
3 obligation owed to the credit union and the credit union
4 complies with the provisions of Section 2I of the
5 Consumer Fraud and Deceptive Business Practices Act.
6 (d) A credit union shall disclose financial records
7 under subparagraph (c)(2) of this Section pursuant to a
8 lawful subpoena, summons, warrant or court order only after
9 the credit union mails a copy of the subpoena, summons,
10 warrant or court order to the person establishing the
11 relationship with the credit union, if living, and otherwise
12 his personal representative, if known, at his last known
13 address by first class mail, postage prepaid unless the
14 credit union is specifically prohibited from notifying the
15 person by order of court or by applicable State or federal
16 law. In the case of a grand jury subpoena, a credit union
17 shall not mail a copy of a subpoena to any person pursuant to
18 this subsection if the subpoena was issued by a grand jury
19 under the Statewide Grand Jury Act or notifying the person
20 would constitute a violation of the federal Right to
21 Financial Privacy Act of 1978.
22 (e) (1) Any officer or employee of a credit union who
23 knowingly and wilfully furnishes financial records in
24 violation of this Section is guilty of a business offense
25 and upon conviction thereof shall be fined not more than
26 $1,000.
27 (2) Any person who knowingly and wilfully induces
28 or attempts to induce any officer or employee of a credit
29 union to disclose financial records in violation of this
30 Section is guilty of a business offense and upon
31 conviction thereof shall be fined not more than $1,000.
32 (f) A credit union shall be reimbursed for costs which
33 are reasonably necessary and which have been directly
34 incurred in searching for, reproducing or transporting books,
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1 papers, records or other data of a member required or
2 requested to be produced pursuant to a lawful subpoena,
3 summons, warrant or court order.
4 (Source: P.A. 89-603, eff. 8-2-96; 90-18, eff. 7-1-97.)
5 Section 25. The Joint Tenancy Act is amended by adding
6 Section 5 as follows:
7 (765 ILCS 1005/5 new)
8 Sec. 5. Accounts for convenience only.
9 (a) For the purposes of this Section:
10 "Convenience account" means any deposit of cash
11 (including purchases of shares in the case of mutual savings
12 and loan associations and credit unions), securities, or
13 other property made in or with any federally insured
14 depository institution transacting business in this State in
15 the name of the depositor and another person or persons and
16 in a form to be paid or delivered to any of them "for the
17 convenience" of the depositor without any right of
18 survivorship in the account existing in favor of the other
19 person or persons so named solely by virtue of such account
20 designation.
21 "Owner of a convenience account" means the depositor.
22 (a-5) The depositor shall be clearly designated as such
23 on the records of the depository institution. In the
24 convenience account title, "FCO" may be used to represent the
25 term "for the convenience of" or "for convenience only",
26 whichever is appropriate in the context of the account title.
27 The word "owner" need not appear in the account title.
28 (b) When a deposit of cash, securities, or other
29 property has been made, or shares have been issued, in or
30 with any federally insured depository institution transacting
31 business in this State in an account established after the
32 effective date of this amendatory Act of the 91st General
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1 Assembly in the name of a depositor and another person and in
2 a form to be paid or delivered to either "for the
3 convenience" of the depositor, the making of the deposit or
4 the issuance of the shares shall not affect the title to the
5 deposit or shares, and the depositor shall not be considered
6 to have made a gift of any or all of the deposit or of any
7 additions or accruals thereon to the other person, and, on
8 the death of the depositor, the other person shall have no
9 right of survivorship in the account. If an addition is made
10 to such an account by anyone other than the depositor, the
11 addition and accruals thereon shall be considered to have
12 been made by the depositor.
13 The deposit or shares, together with all additions and
14 accruals thereon, may be paid or delivered to the depositor
15 or the other person, and the payment or delivery and the
16 receipt or acquittance of the one to whom the payment or
17 delivery is made shall be a valid and sufficient release and
18 discharge to the depository institution prior to the receipt
19 by the depository institution of notice in writing signed by
20 the depositor not to pay or deliver the deposit or shares and
21 the additions and accruals thereon in accordance with the
22 terms thereof, and after receipt of any such notice, the
23 depository institution may require the receipt or acquittance
24 of the depositor for any further payments or delivery.
25 If the depositor is dead, payment or delivery to the
26 other person shall be a valid and sufficient release to the
27 depository institution prior to the receipt by the depository
28 institution of written notice of the depositor's death. A
29 depository institution that, upon the death of the depositor
30 and prior to service upon it of a restraining order,
31 injunction, or other appropriate process from a court of
32 competent jurisdiction prohibiting payment, makes payment to
33 the executor, administrator, or other qualified
34 representative of the deceased depositor's estate, shall, to
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1 the extent of the payment, be released from liability to any
2 person claiming a right to the funds, and the receipt or
3 acquittance of the executor, administrator, or qualified
4 representative to whom payment is made shall be a valid and
5 sufficient release and discharge of the depository
6 institution.
7 This Section shall not be deemed or construed as
8 increasing or diminishing the rights or liability of any
9 person or other entity.
10 (c) In addition to any other disclosures required by
11 law, a depository institution offering a convenience account
12 authorized by this Section shall furnish a written notice to
13 the owner and other person or persons named on the
14 convenience account of the disclosures set forth in this
15 subsection (c) within 30 days after the convenience account
16 is established. The notice shall inform the owner and other
17 person or persons named on the convenience account of the
18 terms and conditions of the account, including the
19 relationship between the parties to the convenience account
20 and the responsibilities of the depository institution with
21 which the convenience account is established. The disclosures
22 also shall indicate:
23 (1) that the initial deposit to the convenience
24 account, and any additions or accruals thereto, is the
25 property of the owner individually and, as such, only the
26 owner may request that the account be closed during the
27 lifetime of the owner;
28 (2) that the depository institution may honor
29 checks or orders drawn by, or withdrawal requests from,
30 the owner or the other named person or persons during the
31 lifetime of the owner even if the checks or orders or
32 withdrawal requests reduce the account balance to zero;
33 (3) that the depository institution may be required
34 by service of legal process to remit funds held in the
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1 convenience account to satisfy a judgment entered
2 against, or other valid debt incurred by, the owner of
3 the convenience account but not the other named person or
4 persons except as otherwise ordered by a court of
5 competent jurisdiction;
6 (4) that prior to receipt by the depository
7 institution of written notice of the death of the owner,
8 and for such reasonable period thereafter as shall enable
9 the depository institution to act, the depository
10 institution may honor checks or orders drawn by, or
11 withdrawal requests from, the other named person or
12 persons after the death of the owner;
13 (5) that upon the death of the owner and prior to
14 service upon the depository institution of a restraining
15 order, injunction, or other appropriate process from a
16 court of competent jurisdiction prohibiting payment and
17 for such reasonable period thereafter as shall enable the
18 depository institution to comply, the depository
19 institution may make payment to an executor,
20 administrator, or similar qualified representative under
21 the Probate Act of 1975;
22 (6) that the depository institution will not treat
23 the account as the property of the other named person or
24 persons during the lifetime of the owner nor after the
25 death of the owner;
26 (7) that prior to the receipt by the depository
27 institution of written notice signed by the owner not to
28 pay or deliver any moneys in the account, and for such
29 reasonable period thereafter as shall enable the
30 depository institution to act, the depository institution
31 shall not be liable to the owner for continuing to honor
32 checks or other orders drawn by, or withdrawal requests
33 from, the other named person or persons; and
34 (8) after the receipt of the notice referred to in
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1 item (7) of this subsection (c), the depository
2 institution may require the written authorization of the
3 owner for any further payments or deliveries.
4 (d) The other person or persons named in a convenience
5 account shall sign a statement agreeing to immediately notify
6 the depository institution in writing of the owner's death
7 and acknowledging that the account shall not be used after
8 the owner's death except as otherwise provided in this
9 Section.
10 Section 99. Effective date. This Act takes effect upon
11 becoming law.