SB0229 Engrossed

LRB096 05726 MJR 15794 b






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    AN ACT concerning financial regulation.

 
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    Be it enacted by the People of the State of Illinois,
 
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represented in the General Assembly:


 
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    Section 1. Short title. This Act may be cited as the 
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Banking Convenience Account for Depositors Act.
 
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    Section 5. Definitions. For purposes of this Act:
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    "Banking organization" means any person doing a banking 
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business whether subject to the laws of this or any other 
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jurisdiction.
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    "Convenience account" means an account established 
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pursuant to this Act.
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    "Convenience depositor" means a person that makes deposits 
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into the depositor's convenience account pursuant to this Act.
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    "Depositor" means a person that is the primary account 
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holder of any account held by a banking organization.
 
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    Section 10. Convenience accounts; creation. 
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    (a) A banking organization may permit a depositor to open a 
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convenience account for the purposes of permitting a 
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convenience depositor to make deposits into that account. The 
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convenience account shall be in the name of a depositor and the 
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convenience depositor and be permitted to pay or deliver funds 
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to either for the convenience of the depositor.
 


 






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    (b) Deposits made into a convenience account shall not 
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affect the title to any deposit or shares and the depositor 
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shall not be considered to have made a gift  of
  one-half  the  
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deposit  or  of  any additions or accruals thereon to the
  
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convenience depositor, and, on the death of the depositor, the 
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convenience depositor shall
  have no right of survivorship in 
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the convenience account.
If an addition is made  to
  a 
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convenience account by anyone other than the depositor, any 
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addition and
  accruals thereon shall be considered to have been 
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made by the depositor.


 
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    Section 15. Depositors and convenience depositors. Any  
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deposit,  together  with  all  additions  and accruals
  thereon, made 
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to the convenience account may be paid or delivered to the 
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depositor or the convenience depositor,
  and  the  payment or 
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delivery and the receipt or acquittance of the one
  to whom the  
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payment  or  delivery  is  made,  shall  be  a  valid  and
  sufficient  
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release and discharge to the banking organization prior to the 
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receipt by the banking organization of notice in writing signed 
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by the depositor
  not  to  pay  or  deliver  the  deposit or shares 
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and the additions and
  accruals thereon in accordance with the 
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terms thereof, and after receipt
  of  any  notice,  the  banking  
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organization may require the receipt or acquittance of the 
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depositor for
  any further payments or delivery.

 
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    Section 20. Banking organizations; liability for 
 


 






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convenience accounts.  If the depositor is dead, then payment
  or 
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delivery to the convenience depositor shall be a valid and 
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sufficient  release
  to  the banking organization prior to the
  
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receipt by the banking organization of
  written  notice  of  the  
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depositor's  death.  A banking organization which, upon the death 
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of the  depositor  and
  prior  to  service  upon  it of a restraining 
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order, injunction, or other
  appropriate process from a court of 
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competent  jurisdiction  prohibiting
  payment, makes payment to 
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the executor, administrator, or other qualified
  representative  
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of the deceased depositor's estate, shall, to the extent
  of 
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such payment, be released from liability to  any  person  claiming  
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a
  right  to  the  funds  and  the  receipt or acquittance of the 
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executor,
  administrator, or qualified representative to whom 
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payment is made  shall
  be  a  valid  and  sufficient  release  and  
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discharge  of the banking organization.

 
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    Section 90. Repealer. This Act is repealed 5 years after 
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the effective date of this Act.