State of Illinois
91st General Assembly
Legislation

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91_SB0447eng

 
SB447 Engrossed                                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 under  Section  48
12    of this Act, Section 25 of the Electronic Fund Transfer Act,
13    Section  5-2  of  the Corporate Fiduciary Act, Section 3.1 of
14    the Illinois Bank Holding Company Act of 1957, and Section 18
15    of  the  Foreign  Banking  Office  Act,  and  any  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,  or  any
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 Engrossed             -2-                LRB9105227JSpc
 1    disclosed  under  the  circumstances and for the purposes set
 2    forth in this Section.
 3          The Commissioner, his officers, agents,  and  employees
 4    may disclose confidential supervisory information a report of
 5    examination, or any document or record obtained in connection
 6    with 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 any
21        or all examinations of the bank and of any or all reports
22        made by the bank. He may give access to and  disclose  to
23        the  Board,  federal  reserve  bank,  or  any official or
24        examiner thereof duly accredited for the purpose, any and
25        all  information  possessed  by  the  Commissioner   with
26        reference  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 Engrossed             -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  purpose  a  copy  or  copies  of  any  or   all
 6        examinations  of  the bank and of any or all reports made
 7        by the bank. He may also give access to and  disclose  to
 8        the  United  States,  such  an  agency  thereof,  or  any
 9        official  or  examiner  thereof  duly  accredited for the
10        purpose  any  and  all  information  possessed   by   the
11        Commissioner  with  reference to the condition or affairs
12        of 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   Commissioner  he
22        reasonably believes a bank, which the Commissioner he has
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  Commissioner  he  has
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  Commissioner  he has
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 Engrossed             -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  Commissioner  he has
 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  summaries
10        of  information  contained  in  a  report  of examination
11        prepared 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 Commissioner he
23          has  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 Engrossed             -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 information a copy of  a  report
 6        of  any  examination performed by the Commissioner of the
 7        condition and affairs of  any  bank  or  other  financial
 8        institution  under  the same circumstances authorized for
 9        under  which  the  bank  or  financial  institution   may
10        disclose the report of examination pursuant to subsection
11        (b)  of  this Section, except that the Commissioner shall
12        provide confidential supervisory information a copy of  a
13        report  of  examination  under 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 information a report of examination of  the  bank
19    or  other  financial institution prepared by the Commissioner
20    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 action within 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 Engrossed             -6-                LRB9105227JSpc
 1        supervisory  report of examination or information therein
 2        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 information in the report of examination  and
10        to   not  further  disseminate  the  information  therein
11        contained;
12             (4)  (blank)  in  response  to  a  lawful  subpoena,
13        summons,   warrant,   or   court  order  that  meets  the
14        requirements 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 Engrossed             -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.  A
30    bank  or  financial  institution  shall  disclose a report of
31    examination under paragraph (4) of  subsection  (b)  of  this
32    Section  pursuant  to a lawful subpoena, summons, warrant, or
33    court order only after  the  bank  or  financial  institution
34    mails  a  copy  of  the  subpoena, summons, warrant, or court
 
SB447 Engrossed             -8-                LRB9105227JSpc
 1    order to the Commissioner by certified mail, postage prepaid,
 2    at  least  15  days  prior  to  providing  the  report.   The
 3    Commissioner  shall have the right to intervene in a court or
 4    administrative proceeding at any time to obtain a  protective
 5    order in the proceeding to protect the confidentiality of the
 6    report.   If  the  date  by  which   the  bank  or  financial
 7    institution is directed to provide the report is sooner  than
 8    15  days,  then  the bank or financial institution shall give
 9    notice telephonically, which notice  shall  be  confirmed  in
10    writing  in  the  manner provided in this subsection (c), and
11    the Commissioner shall have the right to intervene to  obtain
12    a 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  information a report of
16    examination in 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.)

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