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91_SB0447enr SB447 Enrolled LRB9105227JSpc 1 AN ACT to amend the Illinois Banking Act by changing 2 Section 48.3. 3 Be it enacted by the People of the State of Illinois, 4 represented in the General Assembly: 5 Section 5. The Illinois Banking Act is amended by 6 changing Section 48.3 as follows: 7 (205 ILCS 5/48.3) (from Ch. 17, par. 360.2) 8 Sec. 48.3. Disclosure of reports of examinations and 9 confidential supervisory information; limitations. 10 (a) Any report of examination, visitation, or 11 investigation prepared by the Commissioner underSection 4812ofthis Act,Section 25 ofthe Electronic Fund Transfer Act, 13Section 5-2 ofthe Corporate Fiduciary Act,Section 3.1 of14 the Illinois Bank Holding Company Act of 1957, andSection 1815ofthe Foreign Banking Office Act,andany report of 16 examination, visitation, or investigation prepared by the 17 state regulatory authority of another state that examines a 18 branch of an Illinois State bank in that state,orany 19 document or record prepared or obtained in connection with or 20 relating to any examination, visitation, or investigation, 21 and any record prepared or obtained by the Commissioner to 22 the extent that the record summarizes or contains information 23 derived from any report, document, or record described in 24 this subsection shall be deemed "confidential supervisory 25 information". Confidential supervisory information shall not 26 include any information or record routinely prepared by a 27 bank or other financial institution and maintained in the 28 ordinary course of business or any information or record that 29 is required to be made publicly available pursuant to State 30 or federal law or rule. Confidential supervisory information 31 shall be the property of the Commissioner and shall only be SB447 Enrolled -2- LRB9105227JSpc 1 disclosed under the circumstances and for the purposes set 2 forth in this Section. 3 The Commissioner, his officers, agents, and employees4 may disclose confidential supervisory informationa report of5examination, or any document or record obtained in connection6with any examination,only under the following circumstances: 7 (1) The Commissioner may furnish confidential 8 supervisory information to the Board of Governors of the 9 Federal Reserve System, the federal reserve bank of the 10 federal reserve district in which the State bank is 11 located or in which the parent or other affiliate of the 12 State bank is located, any official or examiner thereof 13 duly accredited for the purpose, or any other state 14 regulator, federal regulator, or in the case of a foreign 15 bank possessing a certificate of authority pursuant to 16 the Foreign Banking Office Act or a license pursuant to 17 the Foreign Bank Representative Office Act, the bank 18 regulator in the country where the foreign bank is 19 chartered, that the Commissioner determines to have an 20 appropriate regulatory interest, a copy or copies of any21or all examinations of the bank and of any or all reports22made by the bank. He may give access to and disclose to23the Board, federal reserve bank, or any official or24examiner thereof duly accredited for the purpose, any and25all information possessed by the Commissioner with26reference to the condition or affairs of the State bank. 27 Nothing contained in this Act shall be construed to limit 28 the obligation of any member State bank to comply with 29 the requirements relative to examinations and reports of 30 the Federal Reserve Act and of the Board of Governors of 31 the Federal Reserve System or the federal reserve bank of 32 the federal reserve district in which the bank is 33 located, nor to limit in any way the powers of the 34 Commissioner with reference to examinations and reports. SB447 Enrolled -3- LRB9105227JSpc 1 (2) The Commissioner may furnish confidential 2 supervisory information to the United States, any agency 3 thereof that has insured a bank's deposits in whole or in 4 part, or any official or examiner thereof duly accredited 5 for the purposea copy or copies of any or all6examinations of the bank and of any or all reports made7by the bank. He may also give access to and disclose to8the United States, such an agency thereof, or any9official or examiner thereof duly accredited for the10purpose any and all information possessed by the11Commissioner with reference to the condition or affairs12of any such insured bank. Nothing contained in this Act 13 shall be construed to limit the obligation relative to 14 examinations and reports of any State bank, deposits in 15 which are to any extent insured by the United States, any 16 agency thereof, nor to limit in any way the powers of the 17 Commissioner with reference to examination and reports of 18 such bank. 19 (3) The Commissioner may furnish confidential 20 supervisory information to the appropriate law 21 enforcement authorities when the Commissionerhe22 reasonably believes a bank, which the Commissionerhehas 23 caused to be examined, has been a victim of a crime. 24 (4) The Commissioner may furnish confidential 25 supervisory information relating to a bank or other 26 financial institution, which the Commissionerhehas 27 caused to be examined, to be sent to the administrator of 28 the Uniform Disposition of Unclaimed Property Act. 29 (5) The Commissioner may furnish confidential 30 supervisory information relating to a bank or other 31 financial institution, which the Commissionerhehas 32 caused to be examined, relating to its performance of 33 obligations under the Illinois Income Tax Act and the 34 Illinois Estate and Generation-Skipping Transfer Tax Act SB447 Enrolled -4- LRB9105227JSpc 1 to the Illinois Department of Revenue. 2 (6) The Commissioner may furnish confidential 3 supervisory information relating to a bank or other 4 financial institution, which the Commissionerhehas 5 caused to be examined, under the federal Currency and 6 Foreign Transactions Reporting Act, Title 31, United 7 States Code, Section 1051 et seq. 8 (6.5) The Commissioner may furnish confidential 9 supervisory information, including excerpts or summaries10of information contained in a report of examination11prepared by the Commissioner,to any other agency or 12 entity that the Commissioner determines to have a 13 legitimate regulatory interest. 14 (7) The Commissioner may furnish confidential 15 supervisory information under any other statute that by 16 its terms or by regulations promulgated thereunder 17 requires the disclosure of financial records other than 18 by subpoena, summons, warrant, or court order. 19 (8) At the request of the affected bank or other 20 financial institution, the Commissioner may furnish 21 confidential supervisory information relating to a bank 22 or other financial institution, which the Commissionerhe23has caused to be examined, in connection with the 24 obtaining of insurance coverage or the pursuit of an 25 insurance claim for or on behalf of the bank or other 26 financial institution; provided that, when possible, the 27 Commissioner shall disclose only relevant information 28 while maintaining the confidentiality of financial 29 records not relevant to such insurance coverage or claim 30 and, when appropriate, may delete identifying data 31 relating to any person or individual. 32 (9) The Commissioner may furnish a copy of a report 33 of any examination performed by the Commissioner of the 34 condition and affairs of any electronic data processing SB447 Enrolled -5- LRB9105227JSpc 1 entity to the banks serviced by the electronic data 2 processing entity. 3 (10) In addition to the foregoing circumstances, 4 the Commissioner may, but is not required to, furnish 5 confidential supervisory informationa copy of a report6of any examination performed by the Commissioner of the7condition and affairs of any bank or other financial8institutionunder the same circumstances authorized for 9under whichthe bank or financial institutionmay10disclose the report of examinationpursuant to subsection 11 (b) of this Section, except that the Commissioner shall 12 provide confidential supervisory informationa copy of a13report of examinationunder circumstances described in 14 paragraph (3) of subsection (b) of this Section only upon 15 the request of the bank or other financial institution. 16 (b) A bank or other financial institution or its 17 officers, agents, and employees may disclose confidential 18 supervisory informationa report of examination of the bank19or other financial institution prepared by the Commissioner20 only under the following circumstances: 21 (1) to the board of directors of the bank or other 22 financial institution, as well as the president, 23 vice-president, cashier, and other officers of the bank 24 or other financial institution to whom the board of 25 directors may delegate duties with respect to compliance 26 with recommendations for actionwithin the report, and to 27 the board of directors of a bank holding company that 28 owns at least 80% of the outstanding stock of the bank or 29 other financial institution; 30 (2) to attorneys for the bank or other financial 31 institution and to a certified public accountant engaged 32 by the State bank or financial institution to perform an 33 independent audit provided that the attorney or certified 34 public accountant shall not permit the confidential SB447 Enrolled -6- LRB9105227JSpc 1 supervisoryreport of examination orinformationtherein2 to be further disseminated; 3 (3) to any person who seeks to acquire a 4 controlling interest in, or who seeks to merge with, the 5 bank or financial institution, provided that all 6 attorneys, certified public accountants, officers, 7 agents, or employees of that person shall agree to be 8 bound to respect the confidentiality of the confidential 9 supervisory informationin the report of examinationand 10 to not further disseminate the information therein 11 contained; 12 (4) (blank)in response to a lawful subpoena,13summons, warrant, or court order that meets the14requirements of subsection (c) of this Section; or 15 (5) to the bank's insurance company in relation to 16 an insurance claim or the effort by the bank to procure 17 insurance coverage, provided that, when possible, the 18 bank shall disclose only information that is relevant to 19 the insurance claim or that is necessary to procure the 20 insurance coverage, while maintaining the confidentiality 21 of financial information pertaining to customers. When 22 appropriate, the bank may delete identifying data 23 relating to any person. 24 The disclosure of confidential supervisory information by 25 a bank or other financial institution pursuant to this 26 subsection (b) and the disclosure of information to the 27 Commissioner or other regulatory agency in connection with 28 any examination, visitation, or investigation shall not 29 constitute a waiver of any legal privilege otherwise 30 available to the bank or other financial institution with 31 respect to the information. 32 (c) (1) Notwithstanding any other provision of this Act 33 or any other law, confidential supervisory information shall 34 be the property of the Commissioner and shall be privileged SB447 Enrolled -7- LRB9105227JSpc 1 from disclosure to any person except as provided in this 2 Section. No person in possession of confidential supervisory 3 information may disclose that information for any reason or 4 under any circumstances not specified in this Section without 5 the prior authorization of the Commissioner. Any person upon 6 whom a demand for production of confidential supervisory 7 information is made, whether by subpoena, order, or other 8 judicial or administrative process, must withhold production 9 of the confidential supervisory information and must notify 10 the Commissioner of the demand, at which time the 11 Commissioner is authorized to intervene for the purpose of 12 enforcing the limitations of this Section or seeking the 13 withdrawal or termination of the attempt to compel production 14 of the confidential supervisory information. 15 (2) Any request for discovery or disclosure of 16 confidential supervisory information, whether by subpoena, 17 order, or other judicial or administrative process, shall be 18 made to the Commissioner, and the Commissioner shall 19 determine within 15 days whether to disclose the information 20 pursuant to procedures and standards that the Commissioner 21 shall establish by rule. If the Commissioner determines that 22 such information will not be disclosed, the Commissioner's 23 decision shall be subject to judicial review under the 24 provisions of the Administrative Review Law, and venue shall 25 be in either Sangamon County or Cook County. 26 (3) Any court order that compels disclosure of 27 confidential supervisory information may be immediately 28 appealed by the Commissioner, and the order shall be 29 automatically stayed pending the outcome of the appeal.A30bank or financial institution shall disclose a report of31examination under paragraph (4) of subsection (b) of this32Section pursuant to a lawful subpoena, summons, warrant, or33court order only after the bank or financial institution34mails a copy of the subpoena, summons, warrant, or courtSB447 Enrolled -8- LRB9105227JSpc 1order to the Commissioner by certified mail, postage prepaid,2at least 15 days prior to providing the report. The3Commissioner shall have the right to intervene in a court or4administrative proceeding at any time to obtain a protective5order in the proceeding to protect the confidentiality of the6report. If the date by which the bank or financial7institution is directed to provide the report is sooner than815 days, then the bank or financial institution shall give9notice telephonically, which notice shall be confirmed in10writing in the manner provided in this subsection (c), and11the Commissioner shall have the right to intervene to obtain12a protective order.13 (d) If any officer, agent, attorney, or employee of a 14 bank or financial institution knowingly and willfully 15 furnishes confidential supervisory informationa report of16examinationin violation of this Section, the Commissioner 17 may impose a civil monetary penalty up to $1,000 for the 18 violation against the officer, agent, attorney, or employee. 19 (Source: P.A. 89-208, eff. 9-29-95; 89-310, eff. 1-1-96; 20 89-567, eff. 7-26-96; 89-626, eff. 8-9-96; 90-301, eff. 21 8-1-97.)