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91_SB1421eng SB1421 Engrossed LRB9112239JSpc 1 AN ACT to create the Data Processing Services for 2 Financial Institutions Act. 3 Be it enacted by the People of the State of Illinois, 4 represented in the General Assembly: 5 Section 1. Short title. This Act may be cited as the 6 Data Processing Services for Financial Institutions Act. 7 Section 5. Definitions. As used in this Act, the 8 following terms shall have the following meanings: 9 "Corporate fiduciary" has the meaning ascribed to that 10 term in the Corporate Fiduciary Act. 11 "Depository institution" means a bank, savings and loan 12 association, savings bank, or credit union chartered under 13 the laws of Illinois or of the United States. 14 "Financial institution" means any depository institution 15 or corporate fiduciary that has its main office in Illinois 16 and includes foreign banking corporations that receive 17 certificates of authority from the Office of Banks and Real 18 Estate under the Foreign Banking Office Act. 19 "Independent data processing servicer" means an entity 20 that provides electronic data processing services to a 21 financial institution, but does not include an entity to the 22 extent the entity processes interchange transactions, as 23 defined in the Electronic Fund Transfer Act. 24 "Interface agreement" means a written agreement 25 specifying the terms and conditions under which an interface 26 of communications, data, or systems between independent data 27 processing servicers shall be accomplished. 28 "Main office" means the location designated as the main 29 office or principal place of business in the charter, 30 articles of incorporation, or certificate of authority of the 31 depository institution or corporate fiduciary. SB1421 Engrossed -2- LRB9112239JSpc 1 Section 10. Interface between independent data 2 processing servicers. 3 (a) Whenever a financial institution contracts with an 4 independent data processing servicer for any product or 5 service that requires an interface of communications, data, 6 or systems with a second independent data processing servicer 7 with which the financial institution has a contractual 8 relationship, the second independent data processing servicer 9 shall permit the necessary interface to occur pursuant to an 10 interface agreement. The interface agreement shall contain 11 commercially reasonable fees and charges and shall provide 12 for commercially reasonable access to necessary technical 13 data. 14 (b) An independent data processing servicer shall 15 exercise reasonable promptness in negotiating an interface 16 agreement under the provisions of this Act and shall not 17 exercise undue delay or otherwise act in bad faith as a means 18 of avoiding the negotiation or implementation of an interface 19 agreement. 20 Section 15. Arbitration of disputes. In the case of a 21 dispute between the independent data processing servicers 22 regarding any terms or conditions of an interface agreement, 23 or in the event that a dispute regarding proposed terms and 24 conditions results in the failure of the independent data 25 processing servicers to enter into an interface agreement as 26 required by this Act, the parties shall be deemed to have 27 agreed to the appointment of an arbitrator for a binding 28 resolution of the dispute consistent with the provisions of 29 the Uniform Arbitration Act unless the parties agree to some 30 other process for binding arbitration or unless the aggrieved 31 party seeks court action. Any decision by the arbitrator in 32 connection with any arbitration shall be determined only 33 after an opportunity for a hearing. Anything to the contrary SB1421 Engrossed -3- LRB9112239JSpc 1 in this Act notwithstanding, any right of arbitration granted 2 under this Act is subject to the right of either party to 3 seek court action. 4 Section 99. Effective date. This Act takes effect upon 5 becoming law.