[ Search ] [ Legislation ]
[ Home ] [ Back ] [ Bottom ]
| [ Introduced ] | [ Engrossed ] | [ Enrolled ] |
| [ Governor's Message ] | [ House Amendment 001 ] | [ House Amendment 002 ] |
91_HB3838ren HB3838 Re-Enrolled LRB9112086JSgc 1 AN ACT concerning financial institutions. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Illinois Banking Act is amended by 5 changing Section 48.1 and adding Section 48.6 as follows: 6 (205 ILCS 5/48.1) (from Ch. 17, par. 360) 7 Sec. 48.1. Customer financial records; confidentiality. 8 (a) For the purpose of this Section, the term "financial 9 records" means any original, any copy, or any summary of: 10 (1) a document granting signature authority over a 11 deposit or account; 12 (2) a statement, ledger card or other record on any 13 deposit or account, which shows each transaction in or 14 with respect to that account; 15 (3) a check, draft or money order drawn on a bank 16 or issued and payable by a bank; or 17 (4) any other item containing information 18 pertaining to any relationship established in the 19 ordinary course of a bank's business between a bank and 20 its customer, including financial statements or other 21 financial information provided by the customer. 22 (b) This Section does not prohibit: 23 (1) The preparation, examination, handling or 24 maintenance of any financial records by any officer, 25 employee or agent of a bank having custody of the 26 records, or the examination of the records by a certified 27 public accountant engaged by the bank to perform an 28 independent audit. 29 (2) The examination of any financial records by, or 30 the furnishing of financial records by a bank to, any 31 officer, employee or agent of (i) the Commissioner of HB3838 Re-Enrolled -2- LRB9112086JSgc 1 Banks and Real Estate, (ii) after May 31, 1997, a state 2 regulatory authority authorized to examine a branch of a 3 State bank located in another state, (iii) the 4 Comptroller of the Currency, (iv) the Federal Reserve 5 Board, or (v) the Federal Deposit Insurance Corporation 6 for use solely in the exercise of his duties as an 7 officer, employee, or agent. 8 (3) The publication of data furnished from 9 financial records relating to customers where the data 10 cannot be identified to any particular customer or 11 account. 12 (4) The making of reports or returns required under 13 Chapter 61 of the Internal Revenue Code of 1986. 14 (5) Furnishing information concerning the dishonor 15 of any negotiable instrument permitted to be disclosed 16 under the Uniform Commercial Code. 17 (6) The exchange in the regular course of business 18 of (i) credit information between a bank and other banks 19 or financial institutions or commercial enterprises, 20 directly or through a consumer reporting agency or (ii) 21 financial records or information derived from financial 22 records between a bank and other banks or financial 23 institutions or commercial enterprises for the purpose of 24 conducting due diligence pursuant to a purchase or sale 25 involving the bank or assets or liabilities of the bank. 26 (7) The furnishing of information to the 27 appropriate law enforcement authorities where the bank 28 reasonably believes it has been the victim of a crime. 29 (8) The furnishing of information under the Uniform 30 Disposition of Unclaimed Property Act. 31 (9) The furnishing of information under the 32 Illinois Income Tax Act and the Illinois Estate and 33 Generation-Skipping Transfer Tax Act. 34 (10) The furnishing of information under the HB3838 Re-Enrolled -3- LRB9112086JSgc 1 federal Currency and Foreign Transactions Reporting Act 2 Title 31, United States Code, Section 1051 et seq. 3 (11) The furnishing of information under any other 4 statute that by its terms or by regulations promulgated 5 thereunder requires the disclosure of financial records 6 other than by subpoena, summons, warrant, or court order. 7 (12) The furnishing of information about the 8 existence of an account of a person to a judgment 9 creditor of that person who has made a written request 10 for that information. 11 (13) The exchange in the regular course of business 12 of information between commonly owned banks in connection 13 with a transaction authorized under paragraph (23) of 14 Section 5 and conducted at an affiliate facility. 15 (14) The furnishing of information in accordance 16 with the federal Personal Responsibility and Work 17 Opportunity Reconciliation Act of 1996. Any bank governed 18 by this Act shall enter into an agreement for data 19 exchanges with a State agency provided the State agency 20 pays to the bank a reasonable fee not to exceed its 21 actual cost incurred. A bank providing information in 22 accordance with this item shall not be liable to any 23 account holder or other person for any disclosure of 24 information to a State agency, for encumbering or 25 surrendering any assets held by the bank in response to a 26 lien or order to withhold and deliver issued by a State 27 agency, or for any other action taken pursuant to this 28 item, including individual or mechanical errors, provided 29 the action does not constitute gross negligence or 30 willful misconduct. A bank shall have no obligation to 31 hold, encumber, or surrender assets until it has been 32 served with a subpoena, summons, warrant, court or 33 administrative order, lien, or levy. 34 (15) The exchange in the regular course of business HB3838 Re-Enrolled -4- LRB9112086JSgc 1 of information between a bank and any commonly owned 2 affiliate of the bank, subject to the provisions of the 3 Financial Institutions Insurance Sales Law. 4 (16) The furnishing of information to law 5 enforcement authorities, the Illinois Department on Aging 6 and its regional administrative and provider agencies, 7 the Department of Human Services Office of Inspector 8 General, or public guardians, if the bank suspects that a 9 customer who is an elderly or disabled person has been or 10 may become the victim of financial exploitation. For the 11 purposes of this item (16), the term: (i) "elderly 12 person" means a person who is 60 or more years of age, 13 (ii) "disabled person" means a person who has or 14 reasonably appears to the bank to have a physical or 15 mental disability that impairs his or her ability to seek 16 or obtain protection from or prevent financial 17 exploitation, and (iii) "financial exploitation" means 18 tortious or illegal use of the assets or resources of an 19 elderly or disabled person, and includes, without 20 limitation, misappropriation of the elderly or disabled 21 person's assets or resources by undue influence, breach 22 of fiduciary relationship, intimidation, fraud, 23 deception, extortion, or the use of assets or resources 24 in any manner contrary to law. A bank or person 25 furnishing information pursuant to this item (16) shall 26 be entitled to the same rights and protections as a 27 person furnishing information under the Elder Abuse and 28 Neglect Act and the Illinois Domestic Violence Act of 29 1986. 30 (c) Except as otherwise provided by this Act, a bank may 31 not disclose to any person, except to the customer or his 32 duly authorized agent, any financial records or financial 33 information obtained from financial records relating to that 34 customer of that bank unless: HB3838 Re-Enrolled -5- LRB9112086JSgc 1 (1) the customer has authorized disclosure to the 2 person; 3 (2) the financial records are disclosed in response 4 to a lawful subpoena, summons, warrant or court order 5 which meets the requirements of subsection (d) of this 6 Section; or 7 (3) the bank is attempting to collect an obligation 8 owed to the bank and the bank complies with the 9 provisions of Section 2I of the Consumer Fraud and 10 Deceptive Business Practices Act. 11 (d) A bank shall disclose financial records under 12 paragraph (2) of subsection (c) of this Section under a 13 lawful subpoena, summons, warrant, or court order only after 14 the bank mails a copy of the subpoena, summons, warrant, or 15 court order to the person establishing the relationship with 16 the bank, if living, and, otherwise his personal 17 representative, if known, at his last known address by first 18 class mail, postage prepaid, unless the bank is specifically 19 prohibited from notifying the person by order of court or by 20 applicable State or federal law. A bank shall not mail a 21 copy of a subpoena to any person pursuant to this subsection 22 if the subpoena was issued by a grand jury under the 23 Statewide Grand Jury Act. 24 (e) Any officer or employee of a bank who knowingly and 25 willfully furnishes financial records in violation of this 26 Section is guilty of a business offense and, upon conviction, 27 shall be fined not more than $1,000. 28 (f) Any person who knowingly and willfully induces or 29 attempts to induce any officer or employee of a bank to 30 disclose financial records in violation of this Section is 31 guilty of a business offense and, upon conviction, shall be 32 fined not more than $1,000. 33 (g) A bank shall be reimbursed for costs that are 34 reasonably necessary and that have been directly incurred in HB3838 Re-Enrolled -6- LRB9112086JSgc 1 searching for, reproducing, or transporting books, papers, 2 records, or other data of a customer required or requested to 3 be produced pursuant to a lawful subpoena, summons, warrant, 4 or court order. The Commissioner shall determine the rates 5 and conditions under which payment may be made. 6 (Source: P.A. 90-18, eff. 7-1-97; 90-665, eff. 7-30-98; 7 91-330, eff. 7-29-99.) 8 (205 ILCS 5/48.6 new) 9 Sec. 48.6. Retention of records. Unless a federal law 10 requires otherwise, the Commissioner may by rule prescribe 11 periods of time for which banks operating under this Act must 12 retain records and after the expiration of which, the bank 13 may destroy those records. No liability shall accrue against 14 the bank, the Commissioner, or this State for the destruction 15 of records according to rules of the Commissioner promulgated 16 under the authority of this Section. In any cause or 17 proceeding in which any records may be called in question or 18 be demanded by any bank, a showing of the expiration of the 19 period so prescribed shall be sufficient excuse for failure 20 to produce them. 21 Section 10. The Illinois Savings and Loan Act of 1985 is 22 amended by changing Sections 1-10.14, 1-10.21, and 3-8 as 23 follows: 24 (205 ILCS 105/1-10.14) (from Ch. 17, par. 3301-10.14) 25 Sec. 1-10.14. "Person": an individual, limited liability 26 company, partnership, joint venture, trust, estate, 27 unincorporated association, or corporation. 28 (Source: P.A. 84-543.) 29 (205 ILCS 105/1-10.21) (from Ch. 17, par. 3301-10.21) 30 Sec. 1-10.21. "Service Corporation": any corporation or HB3838 Re-Enrolled -7- LRB9112086JSgc 1 limited liability company which is 90% or more owned by one 2 or more associations, whose purpose or purposes are 3 reasonably incident to the accomplishment of the express 4 powers conferred upon associations by this Act or a 5 corporation or limited liability company chartered for any 6 purpose whatsoever by at least one association or a 7 corporation or limited liability company in which an 8 association has a controlling interest, and the ownership of 9 all of whose stock or ownership interest is subject to the 10 regulations of the Commissioner. 11 (Source: P.A. 84-543.) 12 (205 ILCS 105/3-8) (from Ch. 17, par. 3303-8) 13 Sec. 3-8. Access to books and records; communication 14 with members. 15 (a) Every member or holder of capital shall have the 16 right to inspect the books and records of the association 17 that pertain to his account. Otherwise, the right of 18 inspection and examination of the books and records shall be 19 limited as provided in this Act, and no other person shall 20 have access to the books and records or shall be entitled to 21 a list of the members. 22 (b) For the purpose of this Section, the term "financial 23 records" means any original, any copy, or any summary of (i) 24 a document granting signature authority over a deposit or 25 account; (ii) a statement, ledger card, or other record on 26 any deposit or account that shows each transaction in or with 27 respect to that account; (iii) a check, draft, or money order 28 drawn on an association or issued and payable by an 29 association; or (iv) any other item containing information 30 pertaining to any relationship established in the ordinary 31 course of an association's business between an association 32 and its customer. 33 (c) This Section does not prohibit: HB3838 Re-Enrolled -8- LRB9112086JSgc 1 (1) The preparation, examination, handling, or 2 maintenance of any financial records by any officer, 3 employee, or agent of an association having custody of 4 those records or the examination of those records by a 5 certified public accountant engaged by the association to 6 perform an independent audit; 7 (2) The examination of any financial records by, or 8 the furnishing of financial records by an association to, 9 any officer, employee, or agent of the Commissioner of 10 Banks and Real Estate, Federal Savings and Loan Insurance 11 Corporation and its successors, Federal Deposit Insurance 12 Corporation, Resolution Trust Corporation and its 13 successors, Federal Home Loan Bank Board and its 14 successors, Office of Thrift Supervision, Federal Housing 15 Finance Board, Board of Governors of the Federal Reserve 16 System, any Federal Reserve Bank, or the Office of the 17 Comptroller of the Currency for use solely in the 18 exercise of his duties as an officer, employee, or agent; 19 (3) The publication of data furnished from 20 financial records relating to members or holders of 21 capital where the data cannot be identified to any 22 particular member, holder of capital, or account; 23 (4) The making of reports or returns required under 24 Chapter 61 of the Internal Revenue Code of 1986; 25 (5) Furnishing information concerning the dishonor 26 of any negotiable instrument permitted to be disclosed 27 under the Uniform Commercial Code; 28 (6) The exchange in the regular course of business 29 of credit information between an association and other 30 associations or financial institutions or commercial 31 enterprises, directly or through a consumer reporting 32 agency; 33 (7) The furnishing of information to the 34 appropriate law enforcement authorities where the HB3838 Re-Enrolled -9- LRB9112086JSgc 1 association reasonably believes it has been the victim of 2 a crime; 3 (8) The furnishing of information pursuant to the 4 Uniform Disposition of Unclaimed Property Act; 5 (9) The furnishing of information pursuant to the 6 Illinois Income Tax Act and the Illinois Estate and 7 Generation-Skipping Transfer Tax Act; 8 (10) The furnishing of information pursuant to the 9 federal "Currency and Foreign Transactions Reporting 10 Act", (Title 31, United States Code, Section 1051 et 11 seq.); 12 (11) The furnishing of information pursuant to any 13 other statute that by its terms or by regulations 14 promulgated thereunder requires the disclosure of 15 financial records other than by subpoena, summons, 16 warrant, or court order; 17 (12) The exchange of information between an 18 association and an affiliate of the association; as used 19 in this item, "affiliate" includes any company, 20 partnership, or organization that controls, is controlled 21 by, or is under common control with an association. 22 (13) The furnishing of information in accordance 23 with the federal Personal Responsibility and Work 24 Opportunity Reconciliation Act of 1996. Any association 25 governed by this Act shall enter into an agreement for 26 data exchanges with a State agency provided the State 27 agency pays to the association a reasonable fee not to 28 exceed its actual cost incurred. An association 29 providing information in accordance with this item shall 30 not be liable to any account holder or other person for 31 any disclosure of information to a State agency, for 32 encumbering or surrendering any assets held by the 33 association in response to a lien or order to withhold 34 and deliver issued by a State agency, or for any other HB3838 Re-Enrolled -10- LRB9112086JSgc 1 action taken pursuant to this item, including individual 2 or mechanical errors, provided the action does not 3 constitute gross negligence or willful misconduct. An 4 association shall have no obligation to hold, encumber, 5 or surrender assets until it has been served with a 6 subpoena, summons, warrant, court or administrative 7 order, lien, or levy. 8 (14) The furnishing of information to law 9 enforcement authorities, the Illinois Department on Aging 10 and its regional administrative and provider agencies, 11 the Department of Human Services Office of Inspector 12 General, or public guardians, if the association suspects 13 that a customer who is an elderly or disabled person has 14 been or may become the victim of financial exploitation. 15 For the purposes of this item (14), the term: (i) 16 "elderly person" means a person who is 60 or more years 17 of age, (ii) "disabled person" means a person who has or 18 reasonably appears to the association to have a physical 19 or mental disability that impairs his or her ability to 20 seek or obtain protection from or prevent financial 21 exploitation, and (iii) "financial exploitation" means 22 tortious or illegal use of the assets or resources of an 23 elderly or disabled person, and includes, without 24 limitation, misappropriation of the elderly or disabled 25 person's assets or resources by undue influence, breach 26 of fiduciary relationship, intimidation, fraud, 27 deception, extortion, or the use of assets or resources 28 in any manner contrary to law. An association or person 29 furnishing information pursuant to this item (14) shall 30 be entitled to the same rights and protections as a 31 person furnishing information under the Elder Abuse and 32 Neglect Act and the Illinois Domestic Violence Act of 33 1986. 34 (d) An association may not disclose to any person, HB3838 Re-Enrolled -11- LRB9112086JSgc 1 except to the member or holder of capital or his duly 2 authorized agent, any financial records relating to that 3 member or holder of capital of that association unless: 4 (1) The member or holder of capital has authorized 5 disclosure to the person; or 6 (2) The financial records are disclosed in response 7 to a lawful subpoena, summons, warrant, or court order 8 that meets the requirements of subsection (e) of this 9 Section. 10 (e) An association shall disclose financial records 11 under subsection (d) of this Section pursuant to a lawful 12 subpoena, summons, warrant, or court order only after the 13 association mails a copy of the subpoena, summons, warrant, 14 or court order to the person establishing the relationship 15 with the association, if living, and, otherwise, his personal 16 representative, if known, at his last known address by first 17 class mail, postage prepaid, unless the association is 18 specifically prohibited from notifying that person by order 19 of court. 20 (f) (1) Any officer or employee of an association who 21 knowingly and willfully furnishes financial records in 22 violation of this Section is guilty of a business offense 23 and, upon conviction, shall be fined not more than $1,000. 24 (2) Any person who knowingly and willfully induces or 25 attempts to induce any officer or employee of an association 26 to disclose financial records in violation of this Section is 27 guilty of a business offense and, upon conviction, shall be 28 fined not more than $1,000. 29 (g) However, if any member desires to communicate with 30 the other members of the association with reference to any 31 question pending or to be presented at a meeting of the 32 members, the association shall give him upon request a 33 statement of the approximate number of members entitled to 34 vote at the meeting and an estimate of the cost of preparing HB3838 Re-Enrolled -12- LRB9112086JSgc 1 and mailing the communication. The requesting member then 2 shall submit the communication to the Commissioner who, if he 3 finds it to be appropriate and truthful, shall direct that it 4 be prepared and mailed to the members upon the requesting 5 member's payment or adequate provision for payment of the 6 expenses of preparation and mailing. 7 (h) An Association shall be reimbursed for costs that 8 are necessary and that have been directly incurred in 9 searching for, reproducing, or transporting books, papers, 10 records, or other data of a customer required to be 11 reproduced pursuant to a lawful subpoena, warrant, or court 12 order. 13 (Source: P.A. 89-508, eff. 7-3-96; 90-18, eff. 7-1-97.) 14 Section 15. The Savings Bank Act is amended by changing 15 Sections 1007.90, 1007.105, and 4013 as follows: 16 (205 ILCS 205/1007.90) (from Ch. 17, par. 7301-7.90) 17 Sec. 1007.90. "Person" means an individual, corporation, 18 limited liability company, partnership, joint venture, trust, 19 estate, or unincorporated association. 20 (Source: P.A. 86-1213.) 21 (205 ILCS 205/1007.105) (from Ch. 17, par. 7301-7.105) 22 Sec. 1007.105. "Service corporation" means any 23 corporation or limited liability company that is 51% or more 24 owned by one or more savings banks, or by savings banks and 25 other depository institutions, whose purposes are reasonably 26 incident to the accomplishment of the powers conferred upon 27 savings banks by this Act. 28 (Source: P.A. 91-97, eff. 7-9-99.) 29 (205 ILCS 205/4013) (from Ch. 17, par. 7304-13) 30 Sec. 4013. Access to books and records; communication HB3838 Re-Enrolled -13- LRB9112086JSgc 1 with members and shareholders. 2 (a) Every member or shareholder shall have the right to 3 inspect books and records of the savings bank that pertain to 4 his accounts. Otherwise, the right of inspection and 5 examination of the books and records shall be limited as 6 provided in this Act, and no other person shall have access 7 to the books and records nor shall be entitled to a list of 8 the members or shareholders. 9 (b) For the purpose of this Section, the term "financial 10 records" means any original, any copy, or any summary of (1) 11 a document granting signature authority over a deposit or 12 account; (2) a statement, ledger card, or other record on any 13 deposit or account that shows each transaction in or with 14 respect to that account; (3) a check, draft, or money order 15 drawn on a savings bank or issued and payable by a savings 16 bank; or (4) any other item containing information pertaining 17 to any relationship established in the ordinary course of a 18 savings bank's business between a savings bank and its 19 customer. 20 (c) This Section does not prohibit: 21 (1) The preparation examination, handling, or 22 maintenance of any financial records by any officer, 23 employee, or agent of a savings bank having custody of 24 records or examination of records by a certified public 25 accountant engaged by the savings bank to perform an 26 independent audit. 27 (2) The examination of any financial records by, or 28 the furnishing of financial records by a savings bank to, 29 any officer, employee, or agent of the Commissioner of 30 Banks and Real Estate or the Federal Deposit Insurance 31 Corporation for use solely in the exercise of his duties 32 as an officer, employee, or agent. 33 (3) The publication of data furnished from 34 financial records relating to members or holders of HB3838 Re-Enrolled -14- LRB9112086JSgc 1 capital where the data cannot be identified to any 2 particular member, shareholder, or account. 3 (4) The making of reports or returns required under 4 Chapter 61 of the Internal Revenue Code of 1986. 5 (5) Furnishing information concerning the dishonor 6 of any negotiable instrument permitted to be disclosed 7 under the Uniform Commercial Code. 8 (6) The exchange in the regular course of business 9 of credit information between a savings bank and other 10 savings banks or financial institutions or commercial 11 enterprises, directly or through a consumer reporting 12 agency. 13 (7) The furnishing of information to the 14 appropriate law enforcement authorities where the savings 15 bank reasonably believes it has been the victim of a 16 crime. 17 (8) The furnishing of information pursuant to the 18 Uniform Disposition of Unclaimed Property Act. 19 (9) The furnishing of information pursuant to the 20 Illinois Income Tax Act and the Illinois Estate and 21 Generation-Skipping Transfer Tax Act. 22 (10) The furnishing of information pursuant to the 23 federal "Currency and Foreign Transactions Reporting 24 Act", (Title 31, United States Code, Section 1051 et 25 seq.). 26 (11) The furnishing of information pursuant to any 27 other statute which by its terms or by regulations 28 promulgated thereunder requires the disclosure of 29 financial records other than by subpoena, summons, 30 warrant, or court order. 31 (12) The furnishing of information in accordance 32 with the federal Personal Responsibility and Work 33 Opportunity Reconciliation Act of 1996. Any savings bank 34 governed by this Act shall enter into an agreement for HB3838 Re-Enrolled -15- LRB9112086JSgc 1 data exchanges with a State agency provided the State 2 agency pays to the savings bank a reasonable fee not to 3 exceed its actual cost incurred. A savings bank 4 providing information in accordance with this item shall 5 not be liable to any account holder or other person for 6 any disclosure of information to a State agency, for 7 encumbering or surrendering any assets held by the 8 savings bank in response to a lien or order to withhold 9 and deliver issued by a State agency, or for any other 10 action taken pursuant to this item, including individual 11 or mechanical errors, provided the action does not 12 constitute gross negligence or willful misconduct. A 13 savings bank shall have no obligation to hold, encumber, 14 or surrender assets until it has been served with a 15 subpoena, summons, warrant, court or administrative 16 order, lien, or levy. 17 (13) The furnishing of information to 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 savings bank 22 suspects that a customer who is an elderly or disabled 23 person has been or may become the victim of financial 24 exploitation. For the purposes of this item (13), the 25 term: (i) "elderly person" means a person who is 60 or 26 more years of age, (ii) "disabled person" means a person 27 who has or reasonably appears to the savings bank to have 28 a physical or mental disability that impairs his or her 29 ability to seek or obtain protection from or prevent 30 financial exploitation, and (iii) "financial 31 exploitation" means tortious or illegal use of the assets 32 or resources of an elderly or disabled person, and 33 includes, without limitation, misappropriation of the 34 elderly or disabled person's assets or resources by undue HB3838 Re-Enrolled -16- LRB9112086JSgc 1 influence, breach of fiduciary relationship, 2 intimidation, fraud, deception, extortion, or the use of 3 assets or resources in any manner contrary to law. A 4 savings bank or person furnishing information pursuant to 5 this item (13) shall be entitled to the same rights and 6 protections as a person furnishing information under the 7 Elder Abuse and Neglect Act and the Illinois Domestic 8 Violence Act of 1986. 9 (d) A savings bank may not disclose to any person, 10 except to the member or holder of capital or his duly 11 authorized agent, any financial records relating to that 12 member or shareholder of the savings bank unless: 13 (1) the member or shareholder has authorized 14 disclosure to the person; or 15 (2) the financial records are disclosed in response 16 to a lawful subpoena, summons, warrant, or court order 17 that meets the requirements of subsection (e) of this 18 Section. 19 (e) A savings bank shall disclose financial records 20 under subsection (d) of this Section pursuant to a lawful 21 subpoena, summons, warrant, or court order only after the 22 savings bank mails a copy of the subpoena, summons, warrant, 23 or court order to the person establishing the relationship 24 with the savings bank, if living, and otherwise, his personal 25 representative, if known, at his last known address by first 26 class mail, postage prepaid, unless the savings bank is 27 specifically prohibited from notifying the person by order of 28 court. 29 (f) Any officer or employee of a savings bank who 30 knowingly and willfully furnishes financial records in 31 violation of this Section is guilty of a business offense 32 and, upon conviction, shall be fined not more than $1,000. 33 (g) Any person who knowingly and willfully induces or 34 attempts to induce any officer or employee of a savings bank HB3838 Re-Enrolled -17- LRB9112086JSgc 1 to disclose financial records in violation of this Section is 2 guilty of a business offense and, upon conviction, shall be 3 fined not more than $1,000. 4 (h) If any member or shareholder desires to communicate 5 with the other members or shareholders of the savings bank 6 with reference to any question pending or to be presented at 7 an annual or special meeting, the savings bank shall give 8 that person, upon request, a statement of the approximate 9 number of members or shareholders entitled to vote at the 10 meeting and an estimate of the cost of preparing and mailing 11 the communication. The requesting member shall submit the 12 communication to the Commissioner who, upon finding it to be 13 appropriate and truthful, shall direct that it be prepared 14 and mailed to the members upon the requesting member's or 15 shareholder's payment or adequate provision for payment of 16 the expenses of preparation and mailing. 17 (i) A savings bank shall be reimbursed for costs that 18 are necessary and that have been directly incurred in 19 searching for, reproducing, or transporting books, papers, 20 records, or other data of a customer required to be 21 reproduced pursuant to a lawful subpoena, warrant, or court 22 order. 23 (j) Notwithstanding the provisions of this Section, a 24 savings bank may sell or otherwise make use of lists of 25 customers' names and addresses. All other information 26 regarding a customer's account are subject to the disclosure 27 provisions of this Section. At the request of any customer, 28 that customer's name and address shall be deleted from any 29 list that is to be sold or used in any other manner beyond 30 identification of the customer's accounts. 31 (Source: P.A. 89-508, eff. 7-3-96; 90-18, eff. 7-1-97.) 32 Section 20. The Illinois Credit Union Act is amended by 33 changing Sections 10, 15, 20, 22, 31, 32, 33, 35, and 52 as HB3838 Re-Enrolled -18- LRB9112086JSgc 1 follows: 2 (205 ILCS 305/10) (from Ch. 17, par. 4411) 3 Sec. 10. Credit union records; member financial records. 4 (1) A credit union shall establish and maintain books, 5 records, accounting systems and procedures which accurately 6 reflect its operations and which enable the Department to 7 readily ascertain the true financial condition of the credit 8 union and whether it is complying with this Act. 9 (2) A photostatic or photographic reproduction of any 10 credit union records shall be admissible as evidence of 11 transactions with the credit union. 12 (3) (a) For the purpose of this Section, the term 13 "financial records" means any original, any copy, or any 14 summary of (1) a document granting signature authority 15 over an account, (2) a statement, ledger card or other 16 record on any account which shows each transaction in or 17 with respect to that account, (3) a check, draft or money 18 order drawn on a financial institution or other entity or 19 issued and payable by or through a financial institution 20 or other entity, or (4) any other item containing 21 information pertaining to any relationship established in 22 the ordinary course of business between a credit union 23 and its member. 24 (b) This Section does not prohibit: 25 (1) The preparation, examination, handling or 26 maintenance of any financial records by any officer, 27 employee or agent of a credit union having custody 28 of such records, or the examination of such records 29 by a certified public accountant engaged by the 30 credit union to perform an independent audit; 31 (2) The examination of any financial records 32 by or the furnishing of financial records by a 33 credit union to any officer, employee or agent of HB3838 Re-Enrolled -19- LRB9112086JSgc 1 the Department, the National Credit Union 2 Administration, Federal Reserve board or any insurer 3 of share accounts for use solely in the exercise of 4 his duties as an officer, employee or agent; 5 (3) The publication of data furnished from 6 financial records relating to members where the data 7 cannot be identified to any particular customer of 8 account; 9 (4) The making of reports or returns required 10 under Chapter 61 of the Internal Revenue Code of 11 1954; 12 (5) Furnishing information concerning the 13 dishonor of any negotiable instrument permitted to 14 be disclosed under the Uniform Commercial Code; 15 (6) The exchange in the regular course of 16 business of credit information between a credit 17 union and other credit unions or financial 18 institutions or commercial enterprises, directly or 19 through a consumer reporting agency; 20 (7) The furnishing of information to the 21 appropriate law enforcement authorities where the 22 credit union reasonably believes it has been the 23 victim of a crime; 24 (8) The furnishing of information pursuant to 25 the Uniform Disposition of Unclaimed Property Act; 26 (9) The furnishing of information pursuant to 27 the Illinois Income Tax Act and the Illinois Estate 28 and Generation-Skipping Transfer Tax Act; 29 (10) The furnishing of information pursuant to 30 the federal "Currency and Foreign Transactions 31 Reporting Act", Title 31, United States Code, 32 Section 1051 et sequentia; or 33 (11) The furnishing of information pursuant to 34 any other statute which by its terms or by HB3838 Re-Enrolled -20- LRB9112086JSgc 1 regulations promulgated thereunder requires the 2 disclosure of financial records other than by 3 subpoena, summons, warrant or court order. 4 (12) The furnishing of information in 5 accordance with the federal Personal Responsibility 6 and Work Opportunity Reconciliation Act of 1996. Any 7 credit union governed by this Act shall enter into 8 an agreement for data exchanges with a State agency 9 provided the State agency pays to the credit union a 10 reasonable fee not to exceed its actual cost 11 incurred. A credit union providing information in 12 accordance with this item shall not be liable to any 13 account holder or other person for any disclosure of 14 information to a State agency, for encumbering or 15 surrendering any assets held by the credit union in 16 response to a lien or order to withhold and deliver 17 issued by a State agency, or for any other action 18 taken pursuant to this item, including individual or 19 mechanical errors, provided the action does not 20 constitute gross negligence or willful misconduct. A 21 credit union shall have no obligation to hold, 22 encumber, or surrender assets until it has been 23 served with a subpoena, summons, warrant, court or 24 administrative order, lien, or levy. 25 (13) The furnishing of information to law 26 enforcement authorities, the Illinois Department on 27 Aging and its regional administrative and provider 28 agencies, the Department of Human Services Office of 29 Inspector General, or public guardians, if the 30 credit union suspects that a member who is an 31 elderly or disabled person has been or may become 32 the victim of financial exploitation. For the 33 purposes of this item (13), the term: (i) "elderly 34 person" means a person who is 60 or more years of HB3838 Re-Enrolled -21- LRB9112086JSgc 1 age, (ii) "disabled person" means a person who has 2 or reasonably appears to the credit union to have a 3 physical or mental disability that impairs his or 4 her ability to seek or obtain protection from or 5 prevent financial exploitation, and (iii) "financial 6 exploitation" means tortious or illegal use of the 7 assets or resources of an elderly or disabled 8 person, and includes, without limitation, 9 misappropriation of the elderly or disabled person's 10 assets or resources by undue influence, breach of 11 fiduciary relationship, intimidation, fraud, 12 deception, extortion, or the use of assets or 13 resources in any manner contrary to law. A credit 14 union or person furnishing information pursuant to 15 this item (13) shall be entitled to the same rights 16 and protections as a person furnishing information 17 under the Elder Abuse and Neglect Act and the 18 Illinois Domestic Violence Act of 1986. 19 (c) A credit union may not disclose to any person, 20 except to the member or his duly authorized agent, any 21 financial records relating to that member of the credit union 22 unless: 23 (1) the member has authorized disclosure to the 24 person; 25 (2) the financial records are disclosed in response 26 to a lawful subpoena, summons, warrant or court order 27 that meets the requirements of subparagraph (d) of this 28 Section; or 29 (3) the credit union is attempting to collect an 30 obligation owed to the credit union and the credit union 31 complies with the provisions of Section 2I of the 32 Consumer Fraud and Deceptive Business Practices Act. 33 (d) A credit union shall disclose financial records 34 under subparagraph (c)(2) of this Section pursuant to a HB3838 Re-Enrolled -22- LRB9112086JSgc 1 lawful subpoena, summons, warrant or court order only after 2 the credit union mails a copy of the subpoena, summons, 3 warrant or court order to the person establishing the 4 relationship with the credit union, if living, and otherwise 5 his personal representative, if known, at his last known 6 address by first class mail, postage prepaid unless the 7 credit union is specifically prohibited from notifying the 8 person by order of court or by applicable State or federal 9 law. In the case of a grand jury subpoena, a credit union 10 shall not mail a copy of a subpoena to any person pursuant to 11 this subsection if the subpoena was issued by a grand jury 12 under the Statewide Grand Jury Act or notifying the person 13 would constitute a violation of the federal Right to 14 Financial Privacy Act of 1978. 15 (e) (1) Any officer or employee of a credit union who 16 knowingly and wilfully furnishes financial records in 17 violation of this Section is guilty of a business offense 18 and upon conviction thereof shall be fined not more than 19 $1,000. 20 (2) Any person who knowingly and wilfully induces 21 or attempts to induce any officer or employee of a credit 22 union to disclose financial records in violation of this 23 Section is guilty of a business offense and upon 24 conviction thereof shall be fined not more than $1,000. 25 (f) A credit union shall be reimbursed for costs which 26 are reasonably necessary and which have been directly 27 incurred in searching for, reproducing or transporting books, 28 papers, records or other data of a member required or 29 requested to be produced pursuant to a lawful subpoena, 30 summons, warrant or court order. 31 (Source: P.A. 89-603, eff. 8-2-96; 90-18, eff. 7-1-97.) 32 (205 ILCS 305/15) (from Ch. 17, par. 4416) 33 Sec. 15. Membership defined. HB3838 Re-Enrolled -23- LRB9112086JSgc 1 (1) The membership of a credit union shall be limited to 2 and consist of the subscribers to the articles of 3 incorporation and such other persons within the common bond, 4 as defined in this Act and as set forth in the credit union's 5 articles of incorporation, as have been duly admitted 6 members, have paid the required entrance fee or membership 7 fee, or both, if any, have subscribed for one or more shares, 8 and have paid the initial installment thereon, and have 9 complied with such other requirements as the articles of 10 incorporation or bylaws specify. Two or more persons within 11 the common bond who have jointly subscribed for one or more 12 shares under a joint account and have complied with all 13 membership requirements may each be admitted to membership. 14 The surviving spouse of a credit union member may, within 6 15 months of the member's death, become a member of the credit 16 union by paying the required entrance fee or membership fee 17 or both, if any, by subscribing for one or more shares and 18 paying the initial installment thereon, and by complying with 19 such other requirements as the articles of incorporation or 20 bylaws specify. 21 (2) Any member may withdraw from a credit union at any 22 time upon giving notice of withdrawal as required by the 23 bylaws. 24 (3) Any member may be expelled by a 2/3 vote of the 25 members present at any regular or special meeting called to 26 consider the matter, but only after an opportunity has been 27 given to the member to be heard. 28 (4) A member who has caused a loss to the credit union 29 or who has failed to maintain one or more shares at the 30 credit union may be expelled by a majority vote of a quorum 31 of directors if the board has adopted a policy providing for 32 expulsion under those circumstances. In maintaining and 33 enforcing athispolicy based on loss, the board may 34 consider, without limitation, a member's failure to pay HB3838 Re-Enrolled -24- LRB9112086JSgc 1 amounts due under a loan, failure to provide collected funds 2 to cover withdrawals or personal share drafts or credit union 3 drafts where the member is a remitter, or failure to pay fees 4 or charges due the credit union. If athepolicy is adopted 5 by the board pursuant to this subsection (4), written notice 6 of the policy and the effective date of the policy shall be 7 mailed to each member of the credit union at the member's 8 current address appearing on the records of the credit union. 9 The policy shall be mailed to members not fewer than 30 days 10 prior to the effective date of the policy. In addition, new 11 members shall be provided written notice of the policy prior 12 to or upon applying for membership. 13 (5) All or any part of the amount paid on shares of a 14 withdrawing member or expelled member with any declared 15 dividends or interest on the date of withdrawal or expulsion 16 must, after deducting all amounts due from the member to the 17 credit union, be paid to him. The credit union may require 18 not more than 60 days' written notice of intention to 19 withdraw shares, but a notice of withdrawal does not entitle 20 the member to any preferred or prior claim in the event of 21 liquidation. Withdrawing or expelled members have no further 22 rights in the credit union, but are not, by withdrawal or 23 expulsion, released from any obligation they owe to the 24 credit union. 25 (6) A member who has caused a loss to the credit union 26 may be denied any or all credit union services in accordance 27 with board policy, however, members who are denied services 28 shall be allowed to maintain a share account and to vote on 29 all issues put to a vote of the membership. 30 (Source: P.A. 88-235; 89-603, eff. 8-2-96.) 31 (205 ILCS 305/20) (from Ch. 17, par. 4421) 32 Sec. 20. Election or appointment of officials. 33 (1) The credit union shall be directed by a Board of HB3838 Re-Enrolled -25- LRB9112086JSgc 1 Directors consisting of no less than 7 in number, to be 2 elected at the annual meeting by and from the members. 3 Directors shall hold office until the next annual meeting, 4 unless their terms are staggered. Upon amendment of its 5 bylaws, a credit union may divide the Directors into 2 or 3 6 classes with each class as nearly equal in number as 7 possible. The term of office of the directors of the first 8 class shall expire at the first annual meeting after their 9 election, that of the second class shall expire at the second 10 annual meeting after their election, and that of the third 11 class, if any, shall expire at the third annual meeting after 12 their election. At each annual meeting after the 13 classification, the number of directors equal to the number 14 of directors whose terms expire at the time of the meeting 15 shall be elected to hold office until the second succeeding 16 annual meeting if there are 2 classes or until the third 17 succeeding annual meeting if there are 3 classes. A Director 18 shall hold office for the term for which he or she is elected 19 and until his or her successor is elected and qualified. In 20 all elections for Directors, every member has the right to 21 vote, in person or by proxy, the number of shares owned by 22 him, or in the case of a member other than a natural person, 23 the member's one vote, for as many persons as there are 24 Directors to be elected, or to cumulate such shares, and give 25 one candidate as many votes as the number of Directors 26 multiplied by the number of his shares equals, or to 27 distribute them on the same principle among as many 28 candidates as he may desire and the Directors shall not be 29 elected in any other manner. Shares held in a joint account 30 owned by more than one member may be voted by any one of the 31 members, however, the number of cumulative votes cast may not 32 exceed a total equal to the number of shares multiplied by 33 the number of directors to be elected. A majority of the 34 shares entitled to vote shall be represented either in person HB3838 Re-Enrolled -26- LRB9112086JSgc 1 or by proxy for the election of Directors. Each Director 2 shall wholly take and subscribe to an oath that he will 3 diligently and honestly perform his duties in administering 4 the affairs of the credit union, that while he may delegate 5 to another the performance of those administrative duties he 6 is not thereby relieved from his responsibility for their 7 performance, that he will not knowingly violate or willingly 8 permit to be violated any law applicable to the credit union, 9 and that he is the owner of at least one share of the credit 10 union. 11 (2) The Board of Directors shall appoint from among the 12 members of the credit union, a Supervisory Committee of not 13 less than 3 members at the organization meeting and within 30 14 days following each annual meeting of the members for such 15 terms as the bylaws provide. Members of the Supervisory 16 Committee may, but need not be, on the Board of Directors, 17 but shall not be officers of the credit union,ormembers of 18 the Credit Committee, or the credit manager if no Credit 19 Committee has been appointed. 20 (3) The Board of Directors mayshallappoint, from among 21 the members of the credit union, a Credit Committee 22 consisting of an odd number, not less than 3 for such terms 23 as the bylaws provide. Members of the Credit Committee may, 24 but need not be, Directors or officers of the credit union, 25 but shall not be members of the Supervisory Committee. 26 (4) The Board of Directors shall appoint from among the 27 members of the credit union a Membership Committee of one or 28 more persons. It shall act upon all applications for 29 membership and submit a report of its actions to the Board of 30 Directors at the next monthly meeting for review. 31 (Source: P.A. 88-235; 89-74, eff. 6-30-95.) 32 (205 ILCS 305/22) (from Ch. 17, par. 4423) 33 Sec. 22. Vacancies. The Board of Directors shall, by HB3838 Re-Enrolled -27- LRB9112086JSgc 1 appointment from among the credit union members, fill any 2 vacancies occurring on the Board for the remainder of the 3 Director's unexpired term or until a successor is elected and 4 qualified. The Board shall, by appointment from among the 5 credit union members, fill vacancies in the Membership 6 Committee, Credit Committee, or credit manager if no Credit 7 Committee has been appointed, and Supervisory Committees. 8 (Source: P.A. 81-329.) 9 (205 ILCS 305/31) (from Ch. 17, par. 4432) 10 Sec. 31. Supervision of loansAuthority of Credit11Committee. The Credit Committee shall have the general 12 supervision of all loans and lines of credit to members. If 13 no Credit Committee has been appointed, the credit manager 14 shall have the general supervision of all loans and lines of 15 credit to members. 16 (Source: P.A. 81-329.) 17 (205 ILCS 305/32) (from Ch. 17, par. 4433) 18 Sec. 32. Meetings of Credit Committee. If a Credit 19 Committee has been appointed by the board, the provisions of 20 this Section shall apply. The Credit Committee shall meet as 21 often as the operations of the credit union require and not 22 less frequently than once a month to consider applications 23 for loans and lines of credit. Unless a greater percentage 24 is required in the credit union's bylaws, a majority of the 25 Credit Committee shall constitute a quorum. No loan shall be 26 made unless it is approved, in writing, by a majority of the 27 Committee who are present at a meeting at which a quorum is 28 present and at which the application is considered. The 29 Credit Committee shall report to the Directors at each Board 30 meeting on all meetings held and actions taken since the last 31 Board meeting. 32 (Source: P.A. 81-329.) HB3838 Re-Enrolled -28- LRB9112086JSgc 1 (205 ILCS 305/33) (from Ch. 17, par. 4434) 2 Sec. 33. Credit manager. 3 (1) The Credit Committee may or, if no Credit Committee 4 has been appointed, the Board of Directors shall appoint a 5 credit manager who shall be empowered to approve or 6 disapprove loans and lines of credit under conditions 7 prescribed by the Board of Directors. The Credit Committee 8 or credit manager may appoint one or more loan officers with 9 the power to approve loans and lines of credit, subject to 10 such limitations or conditions as may be prescribed by the 11 Board of Directors. The credit manager and any loan officers 12 appointed by the Credit Committee or the credit manager shall 13 keep written records of all transactions and shall report, in 14 writing, to the Credit Committee if a Credit Committee has 15 been appointed, otherwisewhich shall in turn report, in16writing,to the Directors at each Board meeting. 17 (2) Applications for loans or lines of credit not 18 approved by a loan officer shall be reviewed and acted upon 19 by the Credit Committee or credit manager. 20 (3) The loan officers must keep written records of all 21 loans or lines of credit granted or refused and any other 22 transactions and submit a report to the Credit Committee or 23 credit manager at least once each month. 24 (Source: P.A. 81-329.) 25 (205 ILCS 305/35) (from Ch. 17, par. 4436) 26 Sec. 35. Suspension and removal of officials. 27 (1) The Supervisory Committee, by a unanimous vote of 28 the whole committee, may suspend any member of the Credit 29 Committee or the credit manager if no Credit Committee has 30 been appointedand. The Supervisory Committee shall report 31 such action to the Board of Directors for appropriate action. 32 (2) The Supervisory Committee, by a unanimous vote of 33 the whole committee, may suspend any officer or member of the HB3838 Re-Enrolled -29- LRB9112086JSgc 1 Board of Directors until the next members' meeting, which 2 shall be held not less than 7 nor more than 21 days after 3 such suspension. At such meeting, the suspension shall be 4 acted upon by the members, who shall either confirm or reject 5 it by majority vote. 6 (Source: P.A. 81-329.) 7 (205 ILCS 305/52) (from Ch. 17, par. 4453) 8 Sec. 52. Loans to directors, officers, Credit Committee, 9 credit manager, and Supervisory Committee members. A credit 10 union may make loans to its directors, officers, Credit 11 Committee members, credit manager, and Supervisory Committee 12 members, provided that the loan complies with all lawful 13 requirements under this Act with respect to loans to other 14 borrowers. No loan may be made to or cosigned by any 15 director, officer, Credit Committee member, credit manager if 16 no Credit Committee has been appointed, or Supervisory 17 Committee member which would cause the aggregate amount of 18 all loans then outstanding to or cosigned by all directors, 19 officers, Credit Committee members, credit manager if no 20 Credit Committee has been appointed, or Supervisory Committee 21 members to exceed 20% of the unimpaired capital and surplus 22 of the credit union. 23 (Source: P.A. 85-1273.) 24 Section 99. Effective date. This Act takes effect upon 25 becoming law.