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90_HB0597ccr001
LRB9002691JSgcccr12
1 90TH GENERAL ASSEMBLY
2 CONFERENCE COMMITTEE REPORT
3 ON HOUSE BILL 597
4 -------------------------------------------------------------
5 -------------------------------------------------------------
6 To the President of the Senate and the Speaker of the
7 House of Representatives:
8 We, the conference committee appointed to consider the
9 differences between the houses in relation to Senate
10 Amendment No. 1 to House Bill 597, recommend the following:
11 (1) that the Senate recede from Senate Amendment No. 1;
12 and
13 (2) that House Bill 597 be amended by replacing the
14 title with the following:
15 "AN ACT concerning certain regulatory matters, amending
16 named Acts."; and
17 by replacing everything after the enacting clause with the
18 following:
19 "Section 1. Short title. This Act may be cited as the
20 Financial Institutions Digital Signature Act.
21 Section 5. Definitions. As used in this Act:
22 "Digital signature" means an encrypted electronic
23 identifier, created by computer, intended by the party using
24 it to have the same force and effect as the use of a manual
25 signature.
26 "Financial institution" means a bank, a savings and loan
27 association or savings bank, or a credit union, established
28 under the laws of this or any other state or established
29 under the laws of the United States the deposits of which are
30 insured by the Federal Deposit Insurance Corporation or other
31 agency of the federal government.
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1 Section 10. Electronic documents; digital signatures.
2 (a) If in the regular course of business, a financial
3 institution possesses, records, or generates any document,
4 representation, image, reproduction, or combination thereof,
5 of any agreement, transaction, act, occurrence, or event by
6 any electronic or computer-generated process that accurately
7 reproduces, comprises, or records the agreement, transaction,
8 act, occurrence, or event, the recording, comprising, or
9 reproduction shall have the same force and effect as one
10 comprised, recorded, or created on paper or other tangible
11 form by writing, typing, printing, or similar means.
12 (b) In any communication, acknowledgement, agreement, or
13 contract between a financial institution and its customer, in
14 which a signature is required or used, any party to the
15 communication, acknowledgement, agreement, or contract may
16 affix a signature by use of a digital signature, and the
17 digital signature, when lawfully used by the person whose
18 signature it purports to be, shall have the same force and
19 effect as the use of a manual signature if it is unique to
20 the person using it, is capable of verification, is under the
21 sole control of the person using it, and is linked to data in
22 such a manner that if the data are changed, the digital
23 signature is invalidated. Nothing in this Section shall
24 require any financial institution or customer to use or
25 permit the use of a digital signature.
26 Section 15. Civil remedy. A cause of action, including
27 attorneys fees and costs, shall lie in favor of any person
28 for the unauthorized use of his or her digital signature.
29 Section 80. The Property Tax Code is amended by changing
30 Section 21-15 as follows:
31 (35 ILCS 200/21-15)
32 Sec. 21-15. General tax due dates; default by mortgage
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1 lender. Except as otherwise provided in this Section or
2 Section 21-40, all property upon which the first installment
3 of taxes remains unpaid on June 1 annually shall be deemed
4 delinquent and shall bear interest after June 1 at the rate
5 of 1 1/2% per month or portion thereof. Except as otherwise
6 provided in this Section or Section 21-40, all property upon
7 which the second installment of taxes remains due and unpaid
8 on September 1, annually, shall be deemed delinquent and
9 shall bear interest after September 1 at the same interest
10 rate. All interest collected shall be paid into the general
11 fund of the county.
12 Property not subject to the interest charge in Section
13 9-265 shall also not be subject to the interest charge
14 imposed by this Section until such time as the owner of the
15 property receives actual notice of and is billed for the
16 principal amount of back taxes due and owing.
17 Notwithstanding any other provision of law, when any
18 unpaid taxes become delinquent under this Section through the
19 fault of the mortgage lender, (i) the interest assessed under
20 this Section for delinquent taxes shall be charged against
21 the mortgage lender and not the mortgagor and (ii) the
22 mortgage lender shall pay the taxes, redeem the property and
23 take all necessary steps to remove any liens accruing against
24 the property because of the delinquency. In the event that
25 more than one entity meets the definition of mortgage lender
26 with respect to any mortgage, the interest shall be assessed
27 against the mortgage lender responsible for servicing the
28 mortgage. Unpaid taxes shall be deemed delinquent through
29 the fault of the mortgage lender only if: (a) the mortgage
30 lender has received all payments due the mortgage lender for
31 the property being taxed under the written terms of the
32 mortgage or promissory note secured by the mortgage, (b) the
33 mortgage lender holds funds in escrow to pay the taxes, and
34 (c) the funds are sufficient to pay the taxes after deducting
35 all amounts reasonably anticipated to become due for all
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1 hazard insurance premiums and mortgage insurance premiums and
2 any other assessments to be paid from the escrow under the
3 terms of the mortgage. For purposes of this Section, an
4 amount is reasonably anticipated to become due if it is
5 payable within 12 months from the time of determining the
6 sufficiency of funds held in escrow. Unpaid taxes shall not
7 be deemed delinquent through the fault of the mortgage lender
8 if the mortgage lender was directed in writing by the
9 mortgagor not to pay the property taxes, or if the failure to
10 pay the taxes when due resulted from inadequate or inaccurate
11 parcel information provided by the mortgagor, a title or
12 abstract company, or by the agency or unit of government
13 assessing the tax.
14 (Source: P.A. 90-336, eff. 1-1-98.)
15 Section 82. The Sales Finance Agency Act is amended by
16 changing Section 10.2 as follows:
17 (205 ILCS 660/10.2) (from Ch. 17, par. 5225)
18 Sec. 10.2. Closing of business; surrender of license. At
19 least 10 days prior to a licensee ceasing operations, closing
20 business, or filing for bankruptcy, the licensee shall:
21 (a) Notify the Department of its action in writing.
22 (b) With the exception of filing for bankruptcy,
23 surrender its license to the Director for cancellation. The
24 surrender of the license shall not affect the licensee's
25 civil or criminal liability for acts committed prior to
26 surrender or entitle the licensee to a return of any part of
27 the annual license fee.
28 (c) The licensee shall notify the department of the
29 location where the books, accounts, contracts, and records
30 will be maintained and the procedure to ensure prompt return
31 of contracts, titles, and releases to the customers.
32 (d) The accounts, books, records, and contracts shall be
33 maintained and serviced by the licensee or another licensee
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1 under this Act, or an entity exempt from licensure under this
2 Act.
3 (e) The Department shall have the authority to conduct
4 examinations of the books, records, and loan documents at any
5 time after surrender of the license, filing of bankruptcy, or
6 the cessation of operations.
7 (Source: P.A. 90-437, eff. 1-1-98.)
8 Section 84. The Consumer Installment Loan Act is amended
9 by changing Sections 2, 4, and 9.1 as follows:
10 (205 ILCS 670/2) (from Ch. 17, par. 5402)
11 Sec. 2. Application; fees; positive net worth.
12 Application for such license shall be in writing, and in the
13 form prescribed by the Director. Such applicant at the time
14 of making such application shall pay to the Director the sum
15 of $300 as an application fee a fee for investigating the
16 applicant and the additional sum of $300 as an annual license
17 fee, for a period terminating on the last day of the current
18 calendar year; provided that if the application is filed
19 after June 30th in any year, such license fee shall be 1/2 of
20 the annual license fee for such year.
21 Before the license is granted, every applicant shall
22 prove in form satisfactory to the Director that the applicant
23 has a positive net worth of a minimum of $30,000. Every
24 applicant shall maintain a surety bond in the principal sum
25 of $1,000 issued by a bonding company authorized to do
26 business in this State and which shall be approved by the
27 Director. Such bond shall run to the Director and shall be
28 for the benefit of any person who incurs damages as a result
29 of the actions of a licensee and who is lawfully awarded such
30 damages pursuant to an appropriate court order. If the
31 Director finds at any time that a bond is of insufficient
32 size, is insecure, exhausted, or otherwise doubtful, an
33 additional bond in such amount as determined by the Director
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1 shall be filed by the licensee within 30 days after written
2 demand therefor by the Director. "Net worth" means total
3 assets minus total liabilities.
4 (Source: P.A. 90-437, eff. 1-1-98.)
5 (205 ILCS 670/4) (from Ch. 17, par. 5404)
6 Sec. 4. Investigation to determine whether license shall
7 be issued. Upon the filing of an application and the payment
8 of the fee, the Director shall investigate to determine (1)
9 that the reputation of the applicant, including managers of a
10 limited liability company, partners, owners, officers or
11 directors thereof is such as to warrant belief that the
12 business will be operated honestly and fairly within the
13 purposes of this Act and (2) that the applicant meets the
14 positive net worth requirement set forth in Section 2 of this
15 Act. Unless the Director makes findings hereinabove
16 enumerated, he or she shall not issue a license and shall
17 notify the applicant of the denial and return to the
18 applicant the sum paid by the applicant as a license fee, but
19 shall retain the $300 application investigation fee. The
20 Director shall approve or deny every application for license
21 hereunder within 60 days from the filing thereof with the
22 fee.
23 (Source: P.A. 90-437, eff. 1-1-98.)
24 (205 ILCS 670/9.1)
25 Sec. 9.1. Closing of business; surrender of license. At
26 least 10 days prior to a licensee ceasing operations, closing
27 business, or filing for bankruptcy, the licensee shall:
28 (a) Notify the Department of its action in writing.
29 (b) With the exception of filing for bankruptcy,
30 surrender its license to the Director for cancellation. The
31 surrender of the license shall not affect the licensee's
32 civil or criminal liability for acts committed prior to
33 surrender or entitle the licensee to a return of any part of
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1 the annual license fee.
2 (c) The licensee shall notify the Department of the
3 location where the books, accounts, contracts, and records
4 will be maintained and the procedure to ensure prompt return
5 of contracts, titles, and releases to the customers.
6 (d) The accounts, books, records, and contracts shall be
7 maintained and serviced by the licensee or another licensee
8 under this Act, or an entity exempt from licensure under this
9 Act.
10 (e) The Department shall have the authority to conduct
11 examinations of the books, records, and loan documents at any
12 time after surrender of the license, filing of bankruptcy, or
13 the cessation of operations.
14 (Source: P.A. 90-437, eff. 1-1-98.)
15 Section 86. The Check Printer and Check Number Act is
16 amended by changing Sections 15, 25, 30, and 37 and adding
17 Section 17 as follows:
18 (205 ILCS 690/15)
19 Sec. 15. Verification of check purchasers.
20 (a) A person, other than a financial institution, who
21 sells or distributes checks that may be drawn against funds
22 held by financial institutions in a consumer-deposit account
23 shall before delivery of the checks to the person ordering
24 them, verify the accuracy of that person's name, street
25 address, city, state, and account telephone number, and
26 social security number. If the information is not first
27 verified, the seller or distributor shall not sell or
28 distribute the ordered checks. Acceptable forms of
29 documentation under this subsection may include a copy of the
30 account agreement with the financial institution, a recent
31 account statement issued by the financial institution, a
32 letter or verbal response from the financial institution
33 verifying the account information, or a copy of the Magnetic
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1 Ink Character Recognition specification sheet from the
2 financial institution. The Commissioner may, by rule, allow
3 for additional or other forms of verification. The sale or
4 distribution of checks to any person as to whom verification,
5 as provided for herein, has not first been made shall
6 constitute a business offense for which the fine shall be
7 $1,000 for each offense.
8 (b) This Section shall not apply to any check orders:
9 (1) drawn on an existing consumer-deposit account
10 for which a check order has been previously fulfilled by
11 the person selling or distributing checks and for which
12 there are no changes to the original account holder's
13 name, street address, city, state, or account number;
14 (2) originating from a financial institution and
15 made on behalf of a new or existing consumer-deposit
16 account held at the financial institution; or
17 (3) any order for checks to be drawn on an existing
18 consumer-deposit account for which the only changes
19 involve (i) a change of zip code with no change to the
20 street address, city, or state or (ii) street address or
21 state convenience changes to or from an abbreviated word
22 (e.g. St. to Street, Apt. to Apartment, IL. to Illinois).
23 (Source: P.A. 90-184, eff. 7-23-97.)
24 (205 ILCS 690/17 new)
25 Sec. 17. Exemptions. Nothing in this Act shall be
26 construed to apply to a personal computer user who generates
27 checks for personal use or who distributes checks to
28 immediate family members at no charge.
29 (205 ILCS 690/25)
30 Sec. 25. Bond; conditions; amount. A registrant shall
31 maintain at all times a surety bond procured by the
32 registrant and issued by a bonding company authorized to do
33 business in this State in a principal sum of no less than
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1 $10,000. The bond shall be for any liability incurred by the
2 registrant resulting from a judgment entered for any
3 violation of this Act, including damages awarded in actions
4 brought pursuant to Section 35. At the time of each
5 registration, the registrant shall file with the Commissioner
6 proof of such surety bond. At the time of each registration,
7 the registrant shall file with, and have approved by, the
8 Commissioner a surety bond issued by a bonding company
9 authorized to do business in this State in the principal sum
10 of $10,000. The bond shall run to the Commissioner and shall
11 be for any liability incurred by the registrant for any
12 violation of this Act, including damages awarded in actions
13 brought pursuant to Section 35.
14 From time to time, the Commissioner may determine the
15 amount of liabilities as described herein and may require the
16 registrant to file a bond in an additional sum if it is
17 determined to be necessary in accordance with the
18 requirements of this Section. In no case shall the bond be
19 less than the initial $10,000, nor more than the outstanding
20 liabilities if in excess of $10,000.
21 (Source: P.A. 90-184, eff. 7-23-97.)
22 (205 ILCS 690/30)
23 Sec. 30. Civil action.
24 (a) When the Commissioner believes a person has
25 violated, is violating, or will violate this Act or a rule
26 prescribed under this Act, the Commissioner may request the
27 Attorney General to bring a civil action in circuit court to
28 enjoin the violation or enforce compliance with this Act or a
29 rule prescribed under this Act. A person not complying with
30 an injunction issued under this Section is liable to the
31 State of Illinois in a civil suit for an amount of not more
32 than $10,000.
33 (b) If the Commissioner finds that any person has
34 violated Sections 10, 20, 21, or 25 of this Act, or any rules
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1 adopted by the Commissioner under this Act, the Commissioner
2 may, in addition to seeking an injunction as provided in
3 subsection (a) of this Section, impose a civil monetary
4 penalty in an amount of not more than $10,000 for each
5 violation.
6 (Source: P.A. 90-184, eff. 7-23-97.)
7 (205 ILCS 690/37)
8 Sec. 37. Record retention. Records pertaining to or
9 constituting the procedures for and results of the
10 verification required under this Act shall be retained for a
11 period of 18 months 5 years from the date of receipt of the
12 information.
13 (Source: P.A. 90-184, eff. 7-23-97.)
14 Section 88. The State Housing Act is amended by changing
15 Section 8 as follows:
16 (310 ILCS 5/8) (from Ch. 67 1/2, par. 158)
17 Sec. 8. The name of every housing corporation organized
18 pursuant to the provisions of this Act shall include the word
19 words "housing", and no business corporation organized under
20 the "Business Corporation Act of 1983", as amended, shall,
21 after the date of enactment of this Act, include the word
22 "Housing" as part of its corporate name.
23 (Source: P.A. 83-1362.)
24 Section 90. The Criminal Code of 1961 is amended by
25 changing Section 5-17-3 as follows:
26 (720 ILCS 5/17-3) (from Ch. 38, par. 17-3)
27 Sec. 17-3. Forgery.
28 (a) A person commits forgery when, with intent to
29 defraud, he knowingly:
30 (1) Makes or alters any document apparently capable
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1 of defrauding another in such manner that it purports to
2 have been made by another or at another time, or with
3 different provisions, or by authority of one who did not
4 give such authority; or
5 (2) Issues or delivers such document knowing it to
6 have been thus made or altered; or
7 (3) Possesses, with intent to issue or deliver, any
8 such document knowing it to have been thus made or
9 altered; or.
10 (4) Unlawfully uses the digital signature, as
11 defined in the Financial Institutions Digital Signature
12 Act, of another.
13 (b) An intent to defraud means an intention to cause
14 another to assume, create, transfer, alter or terminate any
15 right, obligation or power with reference to any person or
16 property. As used in this Section, "document" includes, but
17 is not limited to, any document, representation, or image
18 produced manually, electronically, or by computer.
19 (c) A document apparently capable of defrauding another
20 includes, but is not limited to, one by which any right,
21 obligation or power with reference to any person or property
22 may be created, transferred, altered or terminated.
23 (d) Sentence.
24 Forgery is a Class 3 felony.
25 (Source: P.A. 77-2638.)
26 Section 92. The Business Corporation Act of 1983 is
27 amended by changing Section 4.05 as follows:
28 (805 ILCS 5/4.05) (from Ch. 32, par. 4.05)
29 Sec. 4.05. Corporate name of domestic or foreign
30 corporation.
31 (a) The corporate name of a domestic corporation or of a
32 foreign corporation organized, existing or subject to the
33 provisions of this Act:
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1 (1) Shall contain, separate and apart from any
2 other word or abbreviation in such name, the word
3 "corporation", "company", "incorporated", or "limited",
4 or an abbreviation of one of such words, and if the name
5 of a foreign corporation does not contain, separate and
6 apart from any other word or abbreviation, one of such
7 words or abbreviations, the corporation shall add at the
8 end of its name, as a separate word or abbreviation, one
9 of such words or an abbreviation of one of such words.
10 (2) Shall not contain any word or phrase which
11 indicates or implies that the corporation (i) is
12 authorized or empowered to conduct the business of
13 insurance, assurance, indemnity, or the acceptance of
14 savings deposits; (ii) is authorized or empowered to
15 conduct the business of banking unless otherwise
16 permitted by the Commissioner of Banks and Real Estate
17 pursuant to Section 46 of the Illinois Banking Act; or
18 (iii) is authorized or empowered to be in the business of
19 a corporate fiduciary unless otherwise permitted by the
20 Commissioner of Banks and Real Estate under Section 1-9
21 of the Corporate Fiduciary Act. The word "trust",
22 "trustee", or "fiduciary" may be used by a corporation
23 only if it has first complied with Section 1-9 of the
24 Corporate Fiduciary Act. The word "bank", "banker" or
25 "banking" may only be used by a corporation if it has
26 first complied with Section 46 of the Illinois Banking
27 Act.
28 (3) Shall be distinguishable upon the records in
29 the office of the Secretary of State from the corporate
30 name or assumed corporate name of any domestic
31 corporation, whether profit or not for profit, existing
32 under any Act of this State or of any foreign
33 corporation, whether profit or not for profit, authorized
34 to transact business in this State, or a name the
35 exclusive right to which is, at the time, reserved or
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1 registered in the manner provided in this Act, except
2 that, subject to the discretion of the Secretary of
3 State, a foreign corporation that has a name prohibited
4 by this paragraph may be issued a certificate of
5 authority to transact business in this State, if the
6 foreign corporation:
7 (i) Elects to adopt an assumed corporate name
8 or names in accordance with Section 4.15 of this
9 Act; and
10 (ii) Agrees in its application for a
11 certificate of authority to transact business in
12 this State only under such assumed corporate name or
13 names.
14 (4) Shall contain the word "trust", if it be a
15 domestic corporation organized for the purpose of
16 accepting and executing trusts, shall contain the word
17 "pawners", if it be a domestic corporation organized as a
18 pawners' society, and shall contain the word
19 "cooperative", if it be a domestic corporation organized
20 as a cooperative association for pecuniary profit.
21 (5) Shall not contain a word or phrase, or an
22 abbreviation or derivation thereof, the use of which is
23 prohibited or restricted by any other statute of this
24 State unless such restriction has been complied with.
25 (6) Shall consist of letters of the English
26 alphabet, Arabic or Roman numerals, or symbols capable of
27 being readily reproduced by the office of the Secretary
28 of State.
29 (7) Shall be the name under which the corporation
30 shall transact business in this State unless the
31 corporation shall also elect to adopt an assumed
32 corporate name or names as provided in this Act;
33 provided, however, that the corporation may use any
34 divisional designation or trade name without complying
35 with the requirements of this Act, provided the
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1 corporation also clearly discloses its corporate name.
2 (8) (Blank) Shall not contain the word "housing" as
3 part of its corporate name.
4 (b) The Secretary of State shall determine whether a
5 name is "distinguishable" from another name for purposes of
6 this Act. Without excluding other names which may not
7 constitute distinguishable names in this State, a name is not
8 considered distinguishable, for purposes of this Act, solely
9 because it contains one or more of the following:
10 (1) the word "corporation", "company",
11 "incorporated", or "limited" or an abbreviation of one of
12 such words;
13 (2) articles, conjunctions, contractions,
14 abbreviations, different tenses or number of the same
15 word;
16 (c) Nothing in this Section or Sections 4.15 or 4.20
17 shall:
18 (1) Require any domestic corporation existing or
19 any foreign corporation having a certificate of authority
20 on the effective date of this Act, to modify or otherwise
21 change its corporate name or assumed corporate name, if
22 any.
23 (2) Abrogate or limit the common law or statutory
24 law of unfair competition or unfair trade practices, nor
25 derogate from the common law or principles of equity or
26 the statutes of this State or of the United States with
27 respect to the right to acquire and protect copyrights,
28 trade names, trade marks, service names, service marks,
29 or any other right to the exclusive use of names or
30 symbols.
31 (Source: P.A. 88-151; 88-408; 88-670, eff. 12-2-94; 89-508,
32 eff. 7-3-96.)
33 Section 99. Effective date. This Act takes effect upon
34 becoming law.".
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1 Submitted on , 1998.
2 ______________________________ _____________________________
3 Senator Representative
4 ______________________________ _____________________________
5 Senator Representative
6 ______________________________ _____________________________
7 Senator Representative
8 ______________________________ _____________________________
9 Senator Representative
10 ______________________________ _____________________________
11 Senator Representative
12 Committee for the Senate Committee for the House