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91_HB3838ham001
LRB9112086JSpcam
1 AMENDMENT TO HOUSE BILL 3838
2 AMENDMENT NO. . Amend House Bill 3838 by replacing
3 the title with the following:
4 "AN ACT concerning financial institutions."; and
5 by replacing everything after the enacting clause with the
6 following:
7 "Section 5. The Illinois Banking Act is amended by
8 changing Section 48.1 and adding Section 48.6 as follows:
9 (205 ILCS 5/48.1) (from Ch. 17, par. 360)
10 Sec. 48.1. Customer financial records; confidentiality.
11 (a) For the purpose of this Section, the term "financial
12 records" means any original, any copy, or any summary of:
13 (1) a document granting signature authority over a
14 deposit or account;
15 (2) a statement, ledger card or other record on any
16 deposit or account, which shows each transaction in or
17 with respect to that account;
18 (3) a check, draft or money order drawn on a bank
19 or issued and payable by a bank; or
20 (4) any other item containing information
21 pertaining to any relationship established in the
-2- LRB9112086JSpcam
1 ordinary course of a bank's business between a bank and
2 its customer, including financial statements or other
3 financial information provided by the customer.
4 (b) 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 a bank having custody of the
8 records, or the examination of the records by a certified
9 public accountant engaged by the bank to perform an
10 independent audit.
11 (2) The examination of any financial records by, or
12 the furnishing of financial records by a bank to, any
13 officer, employee or agent of (i) the Commissioner of
14 Banks and Real Estate, (ii) after May 31, 1997, a state
15 regulatory authority authorized to examine a branch of a
16 State bank located in another state, (iii) the
17 Comptroller of the Currency, (iv) the Federal Reserve
18 Board, or (v) the Federal Deposit Insurance Corporation
19 for use solely in the exercise of his duties as an
20 officer, employee, or agent.
21 (3) The publication of data furnished from
22 financial records relating to customers where the data
23 cannot be identified to any particular customer or
24 account.
25 (4) The making of reports or returns required under
26 Chapter 61 of the Internal Revenue Code of 1986.
27 (5) Furnishing information concerning the dishonor
28 of any negotiable instrument permitted to be disclosed
29 under the Uniform Commercial Code.
30 (6) The exchange in the regular course of business
31 of (i) credit information between a bank and other banks
32 or financial institutions or commercial enterprises,
33 directly or through a consumer reporting agency or (ii)
34 financial records or information derived from financial
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1 records between a bank and other banks or financial
2 institutions or commercial enterprises for the purpose of
3 conducting due diligence pursuant to a purchase or sale
4 involving the bank or assets or liabilities of the bank.
5 (7) The furnishing of information to the
6 appropriate law enforcement authorities where the bank
7 reasonably believes it has been the victim of a crime.
8 (8) The furnishing of information under the Uniform
9 Disposition of Unclaimed Property Act.
10 (9) The furnishing of information under the
11 Illinois Income Tax Act and the Illinois Estate and
12 Generation-Skipping Transfer Tax Act.
13 (10) The furnishing of information under the
14 federal Currency and Foreign Transactions Reporting Act
15 Title 31, United States Code, Section 1051 et seq.
16 (11) The furnishing of information under any other
17 statute that by its terms or by regulations promulgated
18 thereunder requires the disclosure of financial records
19 other than by subpoena, summons, warrant, or court order.
20 (12) The furnishing of information about the
21 existence of an account of a person to a judgment
22 creditor of that person who has made a written request
23 for that information.
24 (13) The exchange in the regular course of business
25 of information between commonly owned banks in connection
26 with a transaction authorized under paragraph (23) of
27 Section 5 and conducted at an affiliate facility.
28 (14) The furnishing of information in accordance
29 with the federal Personal Responsibility and Work
30 Opportunity Reconciliation Act of 1996. Any bank governed
31 by this Act shall enter into an agreement for data
32 exchanges with a State agency provided the State agency
33 pays to the bank a reasonable fee not to exceed its
34 actual cost incurred. A bank providing information in
-4- LRB9112086JSpcam
1 accordance with this item shall not be liable to any
2 account holder or other person for any disclosure of
3 information to a State agency, for encumbering or
4 surrendering any assets held by the bank in response to a
5 lien or order to withhold and deliver issued by a State
6 agency, or for any other action taken pursuant to this
7 item, including individual or mechanical errors, provided
8 the action does not constitute gross negligence or
9 willful misconduct. A bank shall have no obligation to
10 hold, encumber, or surrender assets until it has been
11 served with a subpoena, summons, warrant, court or
12 administrative order, lien, or levy.
13 (15) The exchange in the regular course of business
14 of information between a bank and any commonly owned
15 affiliate of the bank, subject to the provisions of the
16 Financial Institutions Insurance Sales Law.
17 (16) The furnishing of information to: (a) law
18 enforcement authorities, the Illinois Department on Aging
19 and its regional administrative and provider agencies,
20 the Department of Human Services Office of Inspector
21 General, or public guardians, if the bank suspects that a
22 customer who is an elderly or disabled person has been or
23 may become the victim of financial exploitation or other
24 crime and (b) any other financial institution or other
25 third party, if the bank believes that the furnishing of
26 the information may prevent financial exploitation of the
27 elderly or disabled person. A bank or person furnishing
28 financial information pursuant to this item (16) shall be
29 immune from criminal or civil liability or licensing
30 disciplinary action on account of the furnishing of that
31 information, notwithstanding any requirements concerning
32 the confidentiality of information with respect to such
33 elderly or disabled person that might otherwise be
34 applicable. For purposes of this item (16), the term: (i)
-5- LRB9112086JSpcam
1 "elderly person" means a person who is or reasonably
2 appears to the bank to be 60 or more years of age, (ii)
3 "disabled person" means a person who has or reasonably
4 appears to the 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 or
9 disabled person, and includes, without limitation,
10 misappropriation of the elderly or disabled person's
11 assets or resources by undue influence, breach of
12 fiduciary relationship, intimidation, fraud, deception,
13 extortion, or the use of assets or resources in any
14 manner contrary to law.
15 (c) Except as otherwise provided by this Act, a bank may
16 not disclose to any person, except to the customer or his
17 duly authorized agent, any financial records or financial
18 information obtained from financial records relating to that
19 customer of that bank unless:
20 (1) the customer has authorized disclosure to the
21 person;
22 (2) the financial records are disclosed in response
23 to a lawful subpoena, summons, warrant or court order
24 which meets the requirements of subsection (d) of this
25 Section; or
26 (3) the bank is attempting to collect an obligation
27 owed to the bank and the bank complies with the
28 provisions of Section 2I of the Consumer Fraud and
29 Deceptive Business Practices Act.
30 (d) A bank shall disclose financial records under
31 paragraph (2) of subsection (c) of this Section under a
32 lawful subpoena, summons, warrant, or court order only after
33 the bank mails a copy of the subpoena, summons, warrant, or
34 court order to the person establishing the relationship with
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1 the bank, if living, and, otherwise his personal
2 representative, if known, at his last known address by first
3 class mail, postage prepaid, unless the bank is specifically
4 prohibited from notifying the person by order of court or by
5 applicable State or federal law. A bank shall not mail a
6 copy of a subpoena to any person pursuant to this subsection
7 if the subpoena was issued by a grand jury under the
8 Statewide Grand Jury Act.
9 (e) Any officer or employee of a bank who knowingly and
10 willfully furnishes financial records in violation of this
11 Section is guilty of a business offense and, upon conviction,
12 shall be fined not more than $1,000.
13 (f) Any person who knowingly and willfully induces or
14 attempts to induce any officer or employee of a bank to
15 disclose financial records in violation of this Section is
16 guilty of a business offense and, upon conviction, shall be
17 fined not more than $1,000.
18 (g) A bank shall be reimbursed for costs that are
19 reasonably 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 or requested to
22 be produced pursuant to a lawful subpoena, summons, warrant,
23 or court order. The Commissioner shall determine the rates
24 and conditions under which payment may be made.
25 (Source: P.A. 90-18, eff. 7-1-97; 90-665, eff. 7-30-98;
26 91-330, eff. 7-29-99.)
27 (205 ILCS 5/48.6 new)
28 Sec. 48.6. Retention of records. Unless a federal law
29 requires otherwise, the Commissioner may by rule prescribe
30 periods of time for which banks operating under this Act must
31 retain records and after the expiration of which, the bank
32 may destroy those records. No liability shall accrue against
33 the bank, the Commissioner, or this State for the destruction
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1 of records according to rules of the Commissioner promulgated
2 under the authority of this Section. In any cause or
3 proceeding in which any records may be called in question or
4 be demanded by any bank, a showing of the expiration of the
5 period so prescribed shall be sufficient excuse for failure
6 to produce them.
7 Section 10. The Illinois Savings and Loan Act of 1985 is
8 amended by changing Sections 1-10.14, 1-10.21, and 3-8 as
9 follows:
10 (205 ILCS 105/1-10.14) (from Ch. 17, par. 3301-10.14)
11 Sec. 1-10.14. "Person": an individual, limited liability
12 company, partnership, joint venture, trust, estate,
13 unincorporated association, or corporation.
14 (Source: P.A. 84-543.)
15 (205 ILCS 105/1-10.21) (from Ch. 17, par. 3301-10.21)
16 Sec. 1-10.21. "Service Corporation": any corporation or
17 limited liability company which is 90% or more owned by one
18 or more associations, whose purpose or purposes are
19 reasonably incident to the accomplishment of the express
20 powers conferred upon associations by this Act or a
21 corporation or limited liability company chartered for any
22 purpose whatsoever by at least one association or a
23 corporation or limited liability company in which an
24 association has a controlling interest, and the ownership of
25 all of whose stock or ownership interest is subject to the
26 regulations of the Commissioner.
27 (Source: P.A. 84-543.)
28 (205 ILCS 105/3-8) (from Ch. 17, par. 3303-8)
29 Sec. 3-8. Access to books and records; communication
30 with members.
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1 (a) Every member or holder of capital shall have the
2 right to inspect the books and records of the association
3 that pertain to his account. Otherwise, the right of
4 inspection and examination of the books and records shall be
5 limited as provided in this Act, and no other person shall
6 have access to the books and records or shall be entitled to
7 a list of the members.
8 (b) For the purpose of this Section, the term "financial
9 records" means any original, any copy, or any summary of (i)
10 a document granting signature authority over a deposit or
11 account; (ii) a statement, ledger card, or other record on
12 any deposit or account that shows each transaction in or with
13 respect to that account; (iii) a check, draft, or money order
14 drawn on an association or issued and payable by an
15 association; or (iv) any other item containing information
16 pertaining to any relationship established in the ordinary
17 course of an association's business between an association
18 and its customer.
19 (c) This Section does not prohibit:
20 (1) The preparation, examination, handling, or
21 maintenance of any financial records by any officer,
22 employee, or agent of an association having custody of
23 those records or the examination of those records by a
24 certified public accountant engaged by the association to
25 perform an independent audit;
26 (2) The examination of any financial records by, or
27 the furnishing of financial records by an association to,
28 any officer, employee, or agent of the Commissioner of
29 Banks and Real Estate, Federal Savings and Loan Insurance
30 Corporation and its successors, Federal Deposit Insurance
31 Corporation, Resolution Trust Corporation and its
32 successors, Federal Home Loan Bank Board and its
33 successors, Office of Thrift Supervision, Federal Housing
34 Finance Board, Board of Governors of the Federal Reserve
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1 System, any Federal Reserve Bank, or the Office of the
2 Comptroller of the Currency for use solely in the
3 exercise of his duties as an officer, employee, or agent;
4 (3) The publication of data furnished from
5 financial records relating to members or holders of
6 capital where the data cannot be identified to any
7 particular member, holder of capital, or account;
8 (4) The making of reports or returns required under
9 Chapter 61 of the Internal Revenue Code of 1986;
10 (5) Furnishing information concerning the dishonor
11 of any negotiable instrument permitted to be disclosed
12 under the Uniform Commercial Code;
13 (6) The exchange in the regular course of business
14 of credit information between an association and other
15 associations or financial institutions or commercial
16 enterprises, directly or through a consumer reporting
17 agency;
18 (7) The furnishing of information to the
19 appropriate law enforcement authorities where the
20 association reasonably believes it has been the victim of
21 a crime;
22 (8) The furnishing of information pursuant to the
23 Uniform Disposition of Unclaimed Property Act;
24 (9) The furnishing of information pursuant to the
25 Illinois Income Tax Act and the Illinois Estate and
26 Generation-Skipping Transfer Tax Act;
27 (10) The furnishing of information pursuant to the
28 federal "Currency and Foreign Transactions Reporting
29 Act", (Title 31, United States Code, Section 1051 et
30 seq.);
31 (11) The furnishing of information pursuant to any
32 other statute that by its terms or by regulations
33 promulgated thereunder requires the disclosure of
34 financial records other than by subpoena, summons,
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1 warrant, or court order;
2 (12) The exchange of information between an
3 association and an affiliate of the association; as used
4 in this item, "affiliate" includes any company,
5 partnership, or organization that controls, is controlled
6 by, or is under common control with an association.
7 (13) The furnishing of information in accordance
8 with the federal Personal Responsibility and Work
9 Opportunity Reconciliation Act of 1996. Any association
10 governed by this Act shall enter into an agreement for
11 data exchanges with a State agency provided the State
12 agency pays to the association a reasonable fee not to
13 exceed its actual cost incurred. An association
14 providing information in accordance with this item shall
15 not be liable to any account holder or other person for
16 any disclosure of information to a State agency, for
17 encumbering or surrendering any assets held by the
18 association in response to a lien or order to withhold
19 and deliver issued by a State agency, or for any other
20 action taken pursuant to this item, including individual
21 or mechanical errors, provided the action does not
22 constitute gross negligence or willful misconduct. An
23 association shall have no obligation to hold, encumber,
24 or surrender assets until it has been served with a
25 subpoena, summons, warrant, court or administrative
26 order, lien, or levy.
27 (14) The furnishing of information to: (a) law
28 enforcement authorities, the Illinois Department on Aging
29 and its regional administrative and provider agencies,
30 the Department of Human Services Office of Inspector
31 General, or public guardians, if the association suspects
32 that a customer who is an elderly or disabled person has
33 been or may become the victim of financial exploitation
34 or other crime and (b) any other financial institution or
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1 other third party, if the association believes that the
2 furnishing of the information may prevent financial
3 exploitation of the elderly or disabled person. An
4 association or person furnishing financial information
5 pursuant to this item (14) shall be immune from criminal
6 or civil liability or licensing disciplinary action on
7 account of the furnishing of that information,
8 notwithstanding any requirements concerning the
9 confidentiality of information with respect to such
10 elderly or disabled person that might otherwise be
11 applicable. For purposes of this item (14), the term: (i)
12 "elderly person" means a person who is or reasonably
13 appears to the association to be 60 or more years of age,
14 (ii) "disabled person" means a person who has or
15 reasonably appears to the association to have a physical
16 or mental disability that impairs his or her ability to
17 seek or obtain protection from or prevent financial
18 exploitation, and (iii) "financial exploitation" means
19 tortious or illegal use of the assets or resources of an
20 elderly or disabled person, and includes, without
21 limitation, misappropriation of the elderly or disabled
22 person's assets or resources by undue influence, breach
23 of fiduciary relationship, intimidation, fraud,
24 deception, extortion, or the use of assets or resources
25 in any manner contrary to law.
26 (d) An association may not disclose to any person,
27 except to the member or holder of capital or his duly
28 authorized agent, any financial records relating to that
29 member or holder of capital of that association unless:
30 (1) The member or holder of capital has authorized
31 disclosure to the person; or
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 subsection (e) of this
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1 Section.
2 (e) An association shall disclose financial records
3 under subsection (d) of this Section pursuant to a lawful
4 subpoena, summons, warrant, or court order only after the
5 association mails a copy of the subpoena, summons, warrant,
6 or court order to the person establishing the relationship
7 with the association, if living, and, otherwise, his personal
8 representative, if known, at his last known address by first
9 class mail, postage prepaid, unless the association is
10 specifically prohibited from notifying that person by order
11 of court.
12 (f) (1) Any officer or employee of an association who
13 knowingly and willfully furnishes financial records in
14 violation of this Section is guilty of a business offense
15 and, upon conviction, shall be fined not more than $1,000.
16 (2) Any person who knowingly and willfully induces or
17 attempts to induce any officer or employee of an association
18 to disclose financial records in violation of this Section is
19 guilty of a business offense and, upon conviction, shall be
20 fined not more than $1,000.
21 (g) However, if any member desires to communicate with
22 the other members of the association with reference to any
23 question pending or to be presented at a meeting of the
24 members, the association shall give him upon request a
25 statement of the approximate number of members entitled to
26 vote at the meeting and an estimate of the cost of preparing
27 and mailing the communication. The requesting member then
28 shall submit the communication to the Commissioner who, if he
29 finds it to be appropriate and truthful, shall direct that it
30 be prepared and mailed to the members upon the requesting
31 member's payment or adequate provision for payment of the
32 expenses of preparation and mailing.
33 (h) An Association shall be reimbursed for costs that
34 are necessary and that have been directly incurred in
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1 searching for, reproducing, or transporting books, papers,
2 records, or other data of a customer required to be
3 reproduced pursuant to a lawful subpoena, warrant, or court
4 order.
5 (Source: P.A. 89-508, eff. 7-3-96; 90-18, eff. 7-1-97.)
6 Section 15. The Savings Bank Act is amended by changing
7 Sections 1007.90, 1007.105, and 4013 as follows:
8 (205 ILCS 205/1007.90) (from Ch. 17, par. 7301-7.90)
9 Sec. 1007.90. "Person" means an individual, corporation,
10 limited liability company, partnership, joint venture, trust,
11 estate, or unincorporated association.
12 (Source: P.A. 86-1213.)
13 (205 ILCS 205/1007.105) (from Ch. 17, par. 7301-7.105)
14 Sec. 1007.105. "Service corporation" means any
15 corporation or limited liability company that is 51% or more
16 owned by one or more savings banks, or by savings banks and
17 other depository institutions, whose purposes are reasonably
18 incident to the accomplishment of the powers conferred upon
19 savings banks by this Act.
20 (Source: P.A. 91-97, eff. 7-9-99.)
21 (205 ILCS 205/4013) (from Ch. 17, par. 7304-13)
22 Sec. 4013. Access to books and records; communication
23 with members and shareholders.
24 (a) Every member or shareholder shall have the right to
25 inspect books and records of the savings bank that pertain to
26 his accounts. Otherwise, the right of inspection and
27 examination of the books and records shall be limited as
28 provided in this Act, and no other person shall have access
29 to the books and records nor shall be entitled to a list of
30 the members or shareholders.
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1 (b) For the purpose of this Section, the term "financial
2 records" means any original, any copy, or any summary of (1)
3 a document granting signature authority over a deposit or
4 account; (2) a statement, ledger card, or other record on any
5 deposit or account that shows each transaction in or with
6 respect to that account; (3) a check, draft, or money order
7 drawn on a savings bank or issued and payable by a savings
8 bank; or (4) any other item containing information pertaining
9 to any relationship established in the ordinary course of a
10 savings bank's business between a savings bank and its
11 customer.
12 (c) This Section does not prohibit:
13 (1) The preparation examination, handling, or
14 maintenance of any financial records by any officer,
15 employee, or agent of a savings bank having custody of
16 records or examination of records by a certified public
17 accountant engaged by the savings bank to perform an
18 independent audit.
19 (2) The examination of any financial records by, or
20 the furnishing of financial records by a savings bank to,
21 any officer, employee, or agent of the Commissioner of
22 Banks and Real Estate or the Federal Deposit Insurance
23 Corporation for use solely in the exercise of his duties
24 as an officer, employee, or agent.
25 (3) The publication of data furnished from
26 financial records relating to members or holders of
27 capital where the data cannot be identified to any
28 particular member, shareholder, or account.
29 (4) The making of reports or returns required under
30 Chapter 61 of the Internal Revenue Code of 1986.
31 (5) Furnishing information concerning the dishonor
32 of any negotiable instrument permitted to be disclosed
33 under the Uniform Commercial Code.
34 (6) The exchange in the regular course of business
-15- LRB9112086JSpcam
1 of credit information between a savings bank and other
2 savings banks or financial institutions or commercial
3 enterprises, directly or through a consumer reporting
4 agency.
5 (7) The furnishing of information to the
6 appropriate law enforcement authorities where the savings
7 bank reasonably believes it has been the victim of a
8 crime.
9 (8) The furnishing of information pursuant to the
10 Uniform Disposition of Unclaimed Property Act.
11 (9) The furnishing of information pursuant to the
12 Illinois Income Tax Act and the Illinois Estate and
13 Generation-Skipping Transfer Tax Act.
14 (10) The furnishing of information pursuant to the
15 federal "Currency and Foreign Transactions Reporting
16 Act", (Title 31, United States Code, Section 1051 et
17 seq.).
18 (11) The furnishing of information pursuant to any
19 other statute which by its terms or by regulations
20 promulgated thereunder requires the disclosure of
21 financial records other than by subpoena, summons,
22 warrant, or court order.
23 (12) The furnishing of information in accordance
24 with the federal Personal Responsibility and Work
25 Opportunity Reconciliation Act of 1996. Any savings bank
26 governed by this Act shall enter into an agreement for
27 data exchanges with a State agency provided the State
28 agency pays to the savings bank a reasonable fee not to
29 exceed its actual cost incurred. A savings bank
30 providing information in accordance with this item shall
31 not be liable to any account holder or other person for
32 any disclosure of information to a State agency, for
33 encumbering or surrendering any assets held by the
34 savings bank in response to a lien or order to withhold
-16- LRB9112086JSpcam
1 and deliver issued by a State agency, or for any other
2 action taken pursuant to this item, including individual
3 or mechanical errors, provided the action does not
4 constitute gross negligence or willful misconduct. A
5 savings bank shall have no obligation to hold, encumber,
6 or surrender assets until it has been served with a
7 subpoena, summons, warrant, court or administrative
8 order, lien, or levy.
9 (13) The furnishing of information to: (a) law
10 enforcement authorities, the Illinois Department on Aging
11 and its regional administrative and provider agencies,
12 the Department of Human Services Office of Inspector
13 General, or public guardians, if the savings bank
14 suspects that a customer who is an elderly or disabled
15 person has been or may become the victim of financial
16 exploitation or other crime and (b) any other financial
17 institution or other third party, if the savings bank
18 believes that the furnishing of the information may
19 prevent financial exploitation of the elderly or disabled
20 person. A savings bank or person furnishing financial
21 information pursuant to this item (13) shall be immune
22 from criminal or civil liability or licensing
23 disciplinary action on account of the furnishing of that
24 information, notwithstanding any requirements concerning
25 the confidentiality of information with respect to such
26 elderly or disabled person that might otherwise be
27 applicable. For purposes of this item (13), the term: (i)
28 "elderly person" means a person who is or reasonably
29 appears to the savings bank to be 60 or more years of
30 age, (ii) "disabled person" means a person who has or
31 reasonably appears to the savings bank to have a physical
32 or mental disability that impairs his or her ability to
33 seek or obtain protection from or prevent financial
34 exploitation, and (iii) "financial exploitation" means
-17- LRB9112086JSpcam
1 tortious or illegal use of the assets or resources of an
2 elderly or disabled person, and includes, without
3 limitation, misappropriation of the elderly or disabled
4 person's assets or resources by undue influence, breach
5 of fiduciary relationship, intimidation, fraud,
6 deception, extortion, or the use of assets or resources
7 in any manner contrary to law.
8 (d) A savings bank may not disclose to any person,
9 except to the member or holder of capital or his duly
10 authorized agent, any financial records relating to that
11 member or shareholder of the savings bank unless:
12 (1) the member or shareholder has authorized
13 disclosure to the person; or
14 (2) the financial records are disclosed in response
15 to a lawful subpoena, summons, warrant, or court order
16 that meets the requirements of subsection (e) of this
17 Section.
18 (e) A savings bank shall disclose financial records
19 under subsection (d) of this Section pursuant to a lawful
20 subpoena, summons, warrant, or court order only after the
21 savings bank mails a copy of the subpoena, summons, warrant,
22 or court order to the person establishing the relationship
23 with the savings bank, if living, and otherwise, his personal
24 representative, if known, at his last known address by first
25 class mail, postage prepaid, unless the savings bank is
26 specifically prohibited from notifying the person by order of
27 court.
28 (f) Any officer or employee of a savings bank who
29 knowingly and willfully furnishes financial records in
30 violation of this Section is guilty of a business offense
31 and, upon conviction, shall be fined not more than $1,000.
32 (g) Any person who knowingly and willfully induces or
33 attempts to induce any officer or employee of a savings bank
34 to disclose financial records in violation of this Section is
-18- LRB9112086JSpcam
1 guilty of a business offense and, upon conviction, shall be
2 fined not more than $1,000.
3 (h) If any member or shareholder desires to communicate
4 with the other members or shareholders of the savings bank
5 with reference to any question pending or to be presented at
6 an annual or special meeting, the savings bank shall give
7 that person, upon request, a statement of the approximate
8 number of members or shareholders entitled to vote at the
9 meeting and an estimate of the cost of preparing and mailing
10 the communication. The requesting member shall submit the
11 communication to the Commissioner who, upon finding it to be
12 appropriate and truthful, shall direct that it be prepared
13 and mailed to the members upon the requesting member's or
14 shareholder's payment or adequate provision for payment of
15 the expenses of preparation and mailing.
16 (i) A savings bank shall be reimbursed for costs that
17 are necessary and that have been directly incurred in
18 searching for, reproducing, or transporting books, papers,
19 records, or other data of a customer required to be
20 reproduced pursuant to a lawful subpoena, warrant, or court
21 order.
22 (j) Notwithstanding the provisions of this Section, a
23 savings bank may sell or otherwise make use of lists of
24 customers' names and addresses. All other information
25 regarding a customer's account are subject to the disclosure
26 provisions of this Section. At the request of any customer,
27 that customer's name and address shall be deleted from any
28 list that is to be sold or used in any other manner beyond
29 identification of the customer's accounts.
30 (Source: P.A. 89-508, eff. 7-3-96; 90-18, eff. 7-1-97.)
31 Section 20. The Illinois Credit Union Act is amended by
32 changing Sections 10, 15, 20, 22, 31, 32, 33, 35, and 52 as
33 follows:
-19- LRB9112086JSpcam
1 (205 ILCS 305/10) (from Ch. 17, par. 4411)
2 Sec. 10. Credit union records; member financial records.
3 (1) A credit union shall establish and maintain books,
4 records, accounting systems and procedures which accurately
5 reflect its operations and which enable the Department to
6 readily ascertain the true financial condition of the credit
7 union and whether it is complying with this Act.
8 (2) A photostatic or photographic reproduction of any
9 credit union records shall be admissible as evidence of
10 transactions with the credit union.
11 (3) (a) For the purpose of this Section, the term
12 "financial records" means any original, any copy, or any
13 summary of (1) a document granting signature authority
14 over an account, (2) a statement, ledger card or other
15 record on any account which shows each transaction in or
16 with respect to that account, (3) a check, draft or money
17 order drawn on a financial institution or other entity or
18 issued and payable by or through a financial institution
19 or other entity, or (4) any other item containing
20 information pertaining to any relationship established in
21 the ordinary course of business between a credit union
22 and its member.
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 credit union having custody
27 of such records, or the examination of such records
28 by a certified public accountant engaged by the
29 credit union to perform an independent audit;
30 (2) The examination of any financial records
31 by or the furnishing of financial records by a
32 credit union to any officer, employee or agent of
33 the Department, the National Credit Union
34 Administration, Federal Reserve board or any insurer
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1 of share accounts for use solely in the exercise of
2 his duties as an officer, employee or agent;
3 (3) The publication of data furnished from
4 financial records relating to members where the data
5 cannot be identified to any particular customer of
6 account;
7 (4) The making of reports or returns required
8 under Chapter 61 of the Internal Revenue Code of
9 1954;
10 (5) Furnishing information concerning the
11 dishonor of any negotiable instrument permitted to
12 be disclosed under the Uniform Commercial Code;
13 (6) The exchange in the regular course of
14 business of credit information between a credit
15 union and other credit unions or financial
16 institutions or commercial enterprises, directly or
17 through a consumer reporting agency;
18 (7) The furnishing of information to the
19 appropriate law enforcement authorities where the
20 credit union reasonably believes it has been the
21 victim of a crime;
22 (8) The furnishing of information pursuant to
23 the Uniform Disposition of Unclaimed Property Act;
24 (9) The furnishing of information pursuant to
25 the Illinois Income Tax Act and the Illinois Estate
26 and Generation-Skipping Transfer Tax Act;
27 (10) The furnishing of information pursuant to
28 the federal "Currency and Foreign Transactions
29 Reporting Act", Title 31, United States Code,
30 Section 1051 et sequentia; or
31 (11) The furnishing of information pursuant to
32 any other statute which by its terms or by
33 regulations promulgated thereunder requires the
34 disclosure of financial records other than by
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1 subpoena, summons, warrant or court order.
2 (12) The furnishing of information in
3 accordance with the federal Personal Responsibility
4 and Work Opportunity Reconciliation Act of 1996. Any
5 credit union governed by this Act shall enter into
6 an agreement for data exchanges with a State agency
7 provided the State agency pays to the credit union a
8 reasonable fee not to exceed its actual cost
9 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
15 issued by a State agency, or for any other action
16 taken pursuant to this item, including individual or
17 mechanical errors, provided the action does not
18 constitute gross negligence or willful misconduct. A
19 credit union shall have no obligation to hold,
20 encumber, or surrender assets until it has been
21 served with a subpoena, summons, warrant, court or
22 administrative order, lien, or levy.
23 (13) The furnishing of information to: (a) law
24 enforcement authorities, the Illinois Department on
25 Aging and its regional administrative and provider
26 agencies, the Department of Human Services Office of
27 Inspector General, or public guardians, if the
28 credit union suspects that a member who is an
29 elderly or disabled person has been or may become
30 the victim of financial exploitation or other crime
31 and (b) any other financial institution or other
32 third party, if the credit union believes that the
33 furnishing of the information may prevent financial
34 exploitation of the elderly or disabled member. A
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1 credit union or person furnishing financial
2 information pursuant to this item (13) shall be
3 immune from criminal or civil liability or licensing
4 disciplinary action on account of the furnishing of
5 that information, notwithstanding any requirements
6 concerning the confidentiality of information with
7 respect to such elderly or disabled person that
8 might otherwise be applicable. For purposes of this
9 item (13), the term: (i) "elderly person" means a
10 person who is or reasonably appears to the credit
11 union to be 60 or more years of age, (ii) "disabled
12 person" means a person who has or reasonably appears
13 to the credit union to have a physical or mental
14 disability that impairs his or her ability to seek
15 or obtain protection from or prevent financial
16 exploitation, and (iii) "financial exploitation"
17 means tortious or illegal use of the assets or
18 resources of an elderly or disabled person, and
19 includes, without limitation, misappropriation of
20 the elderly or disabled person's assets or resources
21 by undue influence, breach of fiduciary
22 relationship, intimidation, fraud, deception,
23 extortion, or the use of assets or resources in any
24 manner contrary to law.
25 (c) A credit union may not disclose to any person,
26 except to the member or his duly authorized agent, any
27 financial records relating to that member of the credit union
28 unless:
29 (1) the member has authorized disclosure to the
30 person;
31 (2) the financial records are disclosed in response
32 to a lawful subpoena, summons, warrant or court order
33 that meets the requirements of subparagraph (d) of this
34 Section; or
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1 (3) the credit union is attempting to collect an
2 obligation owed to the credit union and the credit union
3 complies with the provisions of Section 2I of the
4 Consumer Fraud and Deceptive Business Practices Act.
5 (d) A credit union shall disclose financial records
6 under subparagraph (c)(2) of this Section pursuant to a
7 lawful subpoena, summons, warrant or court order only after
8 the credit union mails a copy of the subpoena, summons,
9 warrant or court order to the person establishing the
10 relationship with the credit union, if living, and otherwise
11 his personal representative, if known, at his last known
12 address by first class mail, postage prepaid unless the
13 credit union is specifically prohibited from notifying the
14 person by order of court or by applicable State or federal
15 law. In the case of a grand jury subpoena, a credit union
16 shall not mail a copy of a subpoena to any person pursuant to
17 this subsection if the subpoena was issued by a grand jury
18 under the Statewide Grand Jury Act or notifying the person
19 would constitute a violation of the federal Right to
20 Financial Privacy Act of 1978.
21 (e) (1) Any officer or employee of a credit union who
22 knowingly and wilfully furnishes financial records in
23 violation of this Section is guilty of a business offense
24 and upon conviction thereof shall be fined not more than
25 $1,000.
26 (2) Any person who knowingly and wilfully induces
27 or attempts to induce any officer or employee of a credit
28 union to disclose financial records in violation of this
29 Section is guilty of a business offense and upon
30 conviction thereof shall be fined not more than $1,000.
31 (f) A credit union shall be reimbursed for costs which
32 are reasonably necessary and which have been directly
33 incurred in searching for, reproducing or transporting books,
34 papers, records or other data of a member required or
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1 requested to be produced pursuant to a lawful subpoena,
2 summons, warrant or court order.
3 (Source: P.A. 89-603, eff. 8-2-96; 90-18, eff. 7-1-97.)
4 (205 ILCS 305/15) (from Ch. 17, par. 4416)
5 Sec. 15. Membership defined.
6 (1) The membership of a credit union shall be limited to
7 and consist of the subscribers to the articles of
8 incorporation and such other persons within the common bond,
9 as defined in this Act and as set forth in the credit union's
10 articles of incorporation, as have been duly admitted
11 members, have paid the required entrance fee or membership
12 fee, or both, if any, have subscribed for one or more shares,
13 and have paid the initial installment thereon, and have
14 complied with such other requirements as the articles of
15 incorporation or bylaws specify. Two or more persons within
16 the common bond who have jointly subscribed for one or more
17 shares under a joint account and have complied with all
18 membership requirements may each be admitted to membership.
19 The surviving spouse of a credit union member may, within 6
20 months of the member's death, become a member of the credit
21 union by paying the required entrance fee or membership fee
22 or both, if any, by subscribing for one or more shares and
23 paying the initial installment thereon, and by complying with
24 such other requirements as the articles of incorporation or
25 bylaws specify.
26 (2) Any member may withdraw from a credit union at any
27 time upon giving notice of withdrawal as required by the
28 bylaws.
29 (3) Any member may be expelled by a 2/3 vote of the
30 members present at any regular or special meeting called to
31 consider the matter, but only after an opportunity has been
32 given to the member to be heard.
33 (4) A member who has caused a loss to the credit union
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1 or who has engaged in repeated verbally or physically abusive
2 behavior toward credit union officials, staff, agents, or
3 volunteers or who has failed to maintain one or more shares
4 at the credit union may be expelled by a majority vote of a
5 quorum of directors if the board has adopted a policy
6 providing for expulsion under those circumstances. In
7 maintaining and enforcing a this policy based on loss, the
8 board may consider, without limitation, a member's failure to
9 pay amounts due under a loan, failure to provide collected
10 funds to cover withdrawals or personal share drafts or credit
11 union drafts where the member is a remitter, or failure to
12 pay fees or charges due the credit union. If a the policy is
13 adopted by the board pursuant to this subsection (4), written
14 notice of the policy and the effective date of the policy
15 shall be mailed to each member of the credit union at the
16 member's current address appearing on the records of the
17 credit union. The policy shall be mailed to members not
18 fewer than 30 days prior to the effective date of the policy.
19 In addition, new members shall be provided written notice of
20 the policy prior to or upon applying for membership.
21 (5) All or any part of the amount paid on shares of a
22 withdrawing member or expelled member with any declared
23 dividends or interest on the date of withdrawal or expulsion
24 must, after deducting all amounts due from the member to the
25 credit union, be paid to him. The credit union may require
26 not more than 60 days' written notice of intention to
27 withdraw shares, but a notice of withdrawal does not entitle
28 the member to any preferred or prior claim in the event of
29 liquidation. Withdrawing or expelled members have no further
30 rights in the credit union, but are not, by withdrawal or
31 expulsion, released from any obligation they owe to the
32 credit union.
33 (6) A member who has caused a loss to the credit union
34 or who has engaged in repeated verbally or physically abusive
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1 behavior toward credit union officials, staff, agents, or
2 volunteers may be denied any or all credit union services in
3 accordance with board policy, however, members who are denied
4 services shall be allowed to maintain a share account and to
5 vote on all issues put to a vote of the membership.
6 (Source: P.A. 88-235; 89-603, eff. 8-2-96.)
7 (205 ILCS 305/20) (from Ch. 17, par. 4421)
8 Sec. 20. Election or appointment of officials.
9 (1) The credit union shall be directed by a Board of
10 Directors consisting of no less than 7 in number, to be
11 elected at the annual meeting by and from the members.
12 Directors shall hold office until the next annual meeting,
13 unless their terms are staggered. Upon amendment of its
14 bylaws, a credit union may divide the Directors into 2 or 3
15 classes with each class as nearly equal in number as
16 possible. The term of office of the directors of the first
17 class shall expire at the first annual meeting after their
18 election, that of the second class shall expire at the second
19 annual meeting after their election, and that of the third
20 class, if any, shall expire at the third annual meeting after
21 their election. At each annual meeting after the
22 classification, the number of directors equal to the number
23 of directors whose terms expire at the time of the meeting
24 shall be elected to hold office until the second succeeding
25 annual meeting if there are 2 classes or until the third
26 succeeding annual meeting if there are 3 classes. A Director
27 shall hold office for the term for which he or she is elected
28 and until his or her successor is elected and qualified. In
29 all elections for Directors, every member has the right to
30 vote, in person or by proxy, the number of shares owned by
31 him, or in the case of a member other than a natural person,
32 the member's one vote, for as many persons as there are
33 Directors to be elected, or to cumulate such shares, and give
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1 one candidate as many votes as the number of Directors
2 multiplied by the number of his shares equals, or to
3 distribute them on the same principle among as many
4 candidates as he may desire and the Directors shall not be
5 elected in any other manner. Shares held in a joint account
6 owned by more than one member may be voted by any one of the
7 members, however, the number of cumulative votes cast may not
8 exceed a total equal to the number of shares multiplied by
9 the number of directors to be elected. A majority of the
10 shares entitled to vote shall be represented either in person
11 or by proxy for the election of Directors. Each Director
12 shall wholly take and subscribe to an oath that he will
13 diligently and honestly perform his duties in administering
14 the affairs of the credit union, that while he may delegate
15 to another the performance of those administrative duties he
16 is not thereby relieved from his responsibility for their
17 performance, that he will not knowingly violate or willingly
18 permit to be violated any law applicable to the credit union,
19 and that he is the owner of at least one share of the credit
20 union.
21 (2) The Board of Directors shall appoint from among the
22 members of the credit union, a Supervisory Committee of not
23 less than 3 members at the organization meeting and within 30
24 days following each annual meeting of the members for such
25 terms as the bylaws provide. Members of the Supervisory
26 Committee may, but need not be, on the Board of Directors,
27 but shall not be officers of the credit union, or members of
28 the Credit Committee, or the credit manager if no Credit
29 Committee has been appointed.
30 (3) The Board of Directors may shall appoint, from among
31 the members of the credit union, a Credit Committee
32 consisting of an odd number, not less than 3 for such terms
33 as the bylaws provide. Members of the Credit Committee may,
34 but need not be, Directors or officers of the credit union,
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1 but shall not be members of the Supervisory Committee.
2 (4) The Board of Directors shall appoint from among the
3 members of the credit union a Membership Committee of one or
4 more persons. It shall act upon all applications for
5 membership and submit a report of its actions to the Board of
6 Directors at the next monthly meeting for review.
7 (Source: P.A. 88-235; 89-74, eff. 6-30-95.)
8 (205 ILCS 305/22) (from Ch. 17, par. 4423)
9 Sec. 22. Vacancies. The Board of Directors shall, by
10 appointment from among the credit union members, fill any
11 vacancies occurring on the Board for the remainder of the
12 Director's unexpired term or until a successor is elected and
13 qualified. The Board shall, by appointment from among the
14 credit union members, fill vacancies in the Membership
15 Committee, Credit Committee, or credit manager if no Credit
16 Committee has been appointed, and Supervisory Committees.
17 (Source: P.A. 81-329.)
18 (205 ILCS 305/31) (from Ch. 17, par. 4432)
19 Sec. 31. Supervision of loans Authority of Credit
20 Committee. The Credit Committee shall have the general
21 supervision of all loans and lines of credit to members. If
22 no Credit Committee has been appointed, the credit manager
23 shall have the general supervision of all loans and lines of
24 credit to members.
25 (Source: P.A. 81-329.)
26 (205 ILCS 305/32) (from Ch. 17, par. 4433)
27 Sec. 32. Meetings of Credit Committee. If a Credit
28 Committee has been appointed by the board, the provisions of
29 this Section shall apply. The Credit Committee shall meet as
30 often as the operations of the credit union require and not
31 less frequently than once a month to consider applications
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1 for loans and lines of credit. Unless a greater percentage
2 is required in the credit union's bylaws, a majority of the
3 Credit Committee shall constitute a quorum. No loan shall be
4 made unless it is approved, in writing, by a majority of the
5 Committee who are present at a meeting at which a quorum is
6 present and at which the application is considered. The
7 Credit Committee shall report to the Directors at each Board
8 meeting on all meetings held and actions taken since the last
9 Board meeting.
10 (Source: P.A. 81-329.)
11 (205 ILCS 305/33) (from Ch. 17, par. 4434)
12 Sec. 33. Credit manager.
13 (1) The Credit Committee may or, if no Credit Committee
14 has been appointed, the Board of Directors shall appoint a
15 credit manager who shall be empowered to approve or
16 disapprove loans and lines of credit under conditions
17 prescribed by the Board of Directors. The Credit Committee
18 or credit manager may appoint one or more loan officers with
19 the power to approve loans and lines of credit, subject to
20 such limitations or conditions as may be prescribed by the
21 Board of Directors. The credit manager and any loan officers
22 appointed by the Credit Committee or the credit manager shall
23 keep written records of all transactions and shall report, in
24 writing, to the Credit Committee if a Credit Committee has
25 been appointed, otherwise which shall in turn report, in
26 writing, to the Directors at each Board meeting.
27 (2) Applications for loans or lines of credit not
28 approved by a loan officer shall be reviewed and acted upon
29 by the Credit Committee or credit manager.
30 (3) The loan officers must keep written records of all
31 loans or lines of credit granted or refused and any other
32 transactions and submit a report to the Credit Committee or
33 credit manager at least once each month.
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1 (Source: P.A. 81-329.)
2 (205 ILCS 305/35) (from Ch. 17, par. 4436)
3 Sec. 35. Suspension and removal of officials.
4 (1) The Supervisory Committee, by a unanimous vote of
5 the whole committee, may suspend any member of the Credit
6 Committee or the credit manager if no Credit Committee has
7 been appointed and. The Supervisory Committee shall report
8 such action to the Board of Directors for appropriate action.
9 (2) The Supervisory Committee, by a unanimous vote of
10 the whole committee, may suspend any officer or member of the
11 Board of Directors until the next members' meeting, which
12 shall be held not less than 7 nor more than 21 days after
13 such suspension. At such meeting, the suspension shall be
14 acted upon by the members, who shall either confirm or reject
15 it by majority vote.
16 (Source: P.A. 81-329.)
17 (205 ILCS 305/52) (from Ch. 17, par. 4453)
18 Sec. 52. Loans to directors, officers, Credit Committee,
19 credit manager, and Supervisory Committee members. A credit
20 union may make loans to its directors, officers, Credit
21 Committee members, credit manager, and Supervisory Committee
22 members, provided that the loan complies with all lawful
23 requirements under this Act with respect to loans to other
24 borrowers. No loan may be made to or cosigned by any
25 director, officer, Credit Committee member, credit manager if
26 no Credit Committee has been appointed, or Supervisory
27 Committee member which would cause the aggregate amount of
28 all loans then outstanding to or cosigned by all directors,
29 officers, Credit Committee members, credit manager if no
30 Credit Committee has been appointed, or Supervisory Committee
31 members to exceed 20% of the unimpaired capital and surplus
32 of the credit union.
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1 (Source: P.A. 85-1273.)
2 Section 99. Effective date. This Act takes effect upon
3 becoming law.".