Bill Text: IL SB1198 | 2013-2014 | 98th General Assembly | Introduced

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Bill Title: Amends the Illinois Banking Act. Provides that a bank shall utilize a form, statement, or writing to obtain a customer's consent to disclose any financial records or information obtained from financial records relating to that customer to non-affiliated third persons or parties. Provides criteria for banks to meet regarding the form, statement, or writing to obtain a customer's consent to disclose financial information relating to the customer's financial records. Provides that a bank shall not discriminate against or deny an otherwise qualified customer a financial product or financial service because the customer has not provided the consent to authorize the bank to disclose or share financial records or financial information obtained from financial records relating to that customer with any non-affiliated third person. Provides that a bank shall not be liable for failing to offer products and services to a customer solely because (i) that customer has failed to provide consent and the bank could not offer the product or service without consent and (ii) the customer has failed to provide consent.

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Failed) 2015-01-13 - Session Sine Die [SB1198 Detail]

Download: Illinois-2013-SB1198-Introduced.html

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98TH GENERAL ASSEMBLY State of Illinois 2013 and 2014 SB1198 Introduced 1/30/2013, by Sen. Daniel Biss SYNOPSIS AS INTRODUCED:
205 ILCS 5/48.1 from Ch. 17, par. 360
Amends the Illinois Banking Act. Provides that a bank shall utilize a form, statement, or writing to obtain a customer's consent to disclose any financial records or information obtained from financial records relating to that customer to non-affiliated third persons or parties. Provides criteria for banks to meet regarding the form, statement, or writing to obtain a customer's consent to disclose financial information relating to the customer's financial records. Provides that a bank shall not discriminate against or deny an otherwise qualified customer a financial product or financial service because the customer has not provided the consent to authorize the bank to disclose or share financial records or financial information obtained from financial records relating to that customer with any non-affiliated third person. Provides that a bank shall not be liable for failing to offer products and services to a customer solely because (i) that customer has failed to provide consent and the bank could not offer the product or service without consent and (ii) the customer has failed to provide consent.
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A BILL FOR
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AN ACT concerning regulation.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Banking Act is amended by changing
Section 48.1 as follows:
(205 ILCS 5/48.1) (from Ch. 17, par. 360)
Sec. 48.1. Customer financial records; confidentiality.
(a) For the purpose of this Section, the term "financial
records" means any original, any copy, or any summary of:
(1) a document granting signature authority over a
deposit or account;
(2) a statement, ledger card or other record on any
deposit or account, which shows each transaction in or with
respect to that account;
(3) a check, draft or money order drawn on a bank or
issued and payable by a bank; or
(4) any other item containing information pertaining
to any relationship established in the ordinary course of a
bank's business between a bank and its customer, including
financial statements or other financial information
provided by the customer.
(b) This Section does not prohibit:
(1) The preparation, examination, handling or

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maintenance of any financial records by any officer,
employee or agent of a bank having custody of the records,
or the examination of the records by a certified public
accountant engaged by the bank to perform an independent
audit.
(2) The examination of any financial records by, or the
furnishing of financial records by a bank to, any officer,
employee or agent of (i) the Commissioner of Banks and Real
Estate, (ii) after May 31, 1997, a state regulatory
authority authorized to examine a branch of a State bank
located in another state, (iii) the Comptroller of the
Currency, (iv) the Federal Reserve Board, or (v) the
Federal Deposit Insurance Corporation for use solely in the
exercise of his duties as an officer, employee, or agent.
(3) The publication of data furnished from financial
records relating to customers where the data cannot be
identified to any particular customer or account.
(4) The making of reports or returns required under
Chapter 61 of the Internal Revenue Code of 1986.
(5) Furnishing information concerning the dishonor of
any negotiable instrument permitted to be disclosed under
the Uniform Commercial Code.
(6) The exchange in the regular course of business of
(i) credit information between a bank and other banks or
financial institutions or commercial enterprises, directly
or through a consumer reporting agency or (ii) financial

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records or information derived from financial records
between a bank and other banks or financial institutions or
commercial enterprises for the purpose of conducting due
diligence pursuant to a purchase or sale involving the bank
or assets or liabilities of the bank.
(7) The furnishing of information to the appropriate
law enforcement authorities where the bank reasonably
believes it has been the victim of a crime.
(8) The furnishing of information under the Uniform
Disposition of Unclaimed Property Act.
(9) The furnishing of information under the Illinois
Income Tax Act and the Illinois Estate and
Generation-Skipping Transfer Tax Act.
(10) The furnishing of information under the federal
Currency and Foreign Transactions Reporting Act Title 31,
United States Code, Section 1051 et seq.
(11) The furnishing of information under any other
statute that by its terms or by regulations promulgated
thereunder requires the disclosure of financial records
other than by subpoena, summons, warrant, or court order.
(12) The furnishing of information about the existence
of an account of a person to a judgment creditor of that
person who has made a written request for that information.
(13) The exchange in the regular course of business of
information between commonly owned banks in connection
with a transaction authorized under paragraph (23) of

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Section 5 and conducted at an affiliate facility.
(14) The furnishing of information in accordance with
the federal Personal Responsibility and Work Opportunity
Reconciliation Act of 1996. Any bank governed by this Act
shall enter into an agreement for data exchanges with a
State agency provided the State agency pays to the bank a
reasonable fee not to exceed its actual cost incurred. A
bank providing information in accordance with this item
shall not be liable to any account holder or other person
for any disclosure of information to a State agency, for
encumbering or surrendering any assets held by the bank in
response to a lien or order to withhold and deliver issued
by a State agency, or for any other action taken pursuant
to this item, including individual or mechanical errors,
provided the action does not constitute gross negligence or
willful misconduct. A bank shall have no obligation to
hold, encumber, or surrender assets until it has been
served with a subpoena, summons, warrant, court or
administrative order, lien, or levy.
(15) The exchange in the regular course of business of
information between a bank and any commonly owned affiliate
of the bank, subject to the provisions of the Financial
Institutions Insurance Sales Law.
(16) The furnishing of information to law enforcement
authorities, the Illinois Department on Aging and its
regional administrative and provider agencies, the

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Department of Human Services Office of Inspector General,
or public guardians: (i) upon subpoena by the investigatory
entity or the guardian, or (ii) if there is suspicion by
the bank that a customer who is an elderly or disabled
person has been or may become the victim of financial
exploitation. For the purposes of this item (16), the term:
(i) "elderly person" means a person who is 60 or more years
of age, (ii) "disabled person" means a person who has or
reasonably appears to the bank to have a physical or mental
disability that impairs his or her ability to seek or
obtain protection from or prevent financial exploitation,
and (iii) "financial exploitation" means tortious or
illegal use of the assets or resources of an elderly or
disabled person, and includes, without limitation,
misappropriation of the elderly or disabled person's
assets or resources by undue influence, breach of fiduciary
relationship, intimidation, fraud, deception, extortion,
or the use of assets or resources in any manner contrary to
law. A bank or person furnishing information pursuant to
this item (16) shall be entitled to the same rights and
protections as a person furnishing information under the
Elder Abuse and Neglect Act, the Illinois Domestic Violence
Act of 1986, and the Abuse of Adults with Disabilities
Intervention Act.
(17) The disclosure of financial records or
information as necessary to effect, administer, or enforce

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a transaction requested or authorized by the customer, or
in connection with:
(A) servicing or processing a financial product or
service requested or authorized by the customer;
(B) maintaining or servicing a customer's account
with the bank; or
(C) a proposed or actual securitization or
secondary market sale (including sales of servicing
rights) related to a transaction of a customer.
Nothing in this item (17), however, authorizes the sale
of the financial records or information of a customer
without the consent of the customer.
(18) The disclosure of financial records or
information as necessary to protect against actual or
potential fraud, unauthorized transactions, claims, or
other liability.
(19)(a) The disclosure of financial records or
information related to a private label credit program
between a financial institution and a private label party
in connection with that private label credit program. Such
information is limited to outstanding balance, available
credit, payment and performance and account history,
product references, purchase information, and information
related to the identity of the customer.
(b)(l) For purposes of this paragraph (19) of
subsection (b) of Section 48.1, a "private label credit

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program" means a credit program involving a financial
institution and a private label party that is used by a
customer of the financial institution and the private label
party primarily for payment for goods or services sold,
manufactured, or distributed by a private label party.
(2) For purposes of this paragraph (19) of subsection
(b) of Section 48.l, a "private label party" means, with
respect to a private label credit program, any of the
following: a retailer, a merchant, a manufacturer, a trade
group, or any such person's affiliate, subsidiary, member,
agent, or service provider.
(c) Except as otherwise provided by this Act, a bank may
not disclose to any person, except to the customer or his duly
authorized agent, any financial records or financial
information obtained from financial records relating to that
customer of that bank unless:
(1) the customer has authorized disclosure to the
person;
(A) A bank shall utilize a form, statement, or
writing to obtain consent to disclose any financial
records or financial information obtained from
financial records relating to that customer to
non-affiliated third persons as required. The form,
statement, or writing shall meet all of the following
criteria:
(i) the form, statement, or writing is a

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separate document, not attached to any other
documents;
(ii) the form, statement, or writing is dated
and signed by the customer;
(iii) the form, statement, or writing clearly
and conspicuously discloses that by signing, the
customer is consenting to the disclosure to
non-affiliated third persons of financial records
or financial information obtained from financial
records relating to that customer;
(iv) the form, statement, or writing clearly
and conspicuously discloses (a) that the consent
will remain in effect until revoked or modified by
the customer; (b) that the customer may revoke the
consent at any time; and (c) the procedure for the
customer to revoke consent; and
(v) the form, statement, or writing clearly
and conspicuously informs the customer that (a)
the financial institution will maintain the
document or a true and correct copy; (b) the
customer is entitled to a copy of the document upon
request; and (c) the customer may want to make a
copy of the document for the customer's records.
(B) A bank shall not discriminate against or deny
an otherwise qualified customer a financial product or
financial service because the customer has not

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provided the consent under this subsection (c) to
authorize the bank to disclose or share financial
records or financial information obtained from
financial records relating to that customer with any
non-affiliated third person. Nothing in this
subsection (c) shall prohibit a bank from denying a
customer a financial product or service if (i) the
financial institution could not provide the product or
service to a customer without the consent to disclose
financial records or financial information obtained
from financial records relating to that customer
required by this subsection (c) and (ii) the customer
has failed to provide consent.
(C) A bank shall not be liable for failing to offer
products and services to a customer solely because (i)
that customer has failed to provide consent under this
subsection (c) and the bank could not offer the product
or service without consent to disclose the customer's
financial records or financial information obtained
from financial records relating to that customer
required by this subsection (c) and (ii) the customer
has failed to provide consent. Nothing in this Section
is intended to prohibit a financial institution from
offering incentives or discounts to elicit a specific
response to the notice.
(2) the financial records are disclosed in response to

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a lawful subpoena, summons, warrant, citation to discover
assets, or court order which meets the requirements of
subsection (d) of this Section; or
(3) the bank is attempting to collect an obligation
owed to the bank and the bank complies with the provisions
of Section 2I of the Consumer Fraud and Deceptive Business
Practices Act.
(d) A bank shall disclose financial records under paragraph
(2) of subsection (c) of this Section under a lawful subpoena,
summons, warrant, citation to discover assets, or court order
only after the bank mails a copy of the subpoena, summons,
warrant, citation to discover assets, or court order to the
person establishing the relationship with the bank, if living,
and, otherwise his personal representative, if known, at his
last known address by first class mail, postage prepaid, unless
the bank is specifically prohibited from notifying the person
by order of court or by applicable State or federal law. A bank
shall not mail a copy of a subpoena to any person pursuant to
this subsection if the subpoena was issued by a grand jury
under the Statewide Grand Jury Act.
(e) Any officer or employee of a bank who knowingly and
willfully furnishes financial records in violation of this
Section is guilty of a business offense and, upon conviction,
shall be fined not more than $1,000.
(f) Any person who knowingly and willfully induces or
attempts to induce any officer or employee of a bank to

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disclose financial records in violation of this Section is
guilty of a business offense and, upon conviction, shall be
fined not more than $1,000.
(g) A bank shall be reimbursed for costs that are
reasonably necessary and that have been directly incurred in
searching for, reproducing, or transporting books, papers,
records, or other data of a customer required or requested to
be produced pursuant to a lawful subpoena, summons, warrant,
citation to discover assets, or court order. The Commissioner
shall determine the rates and conditions under which payment
may be made.
(Source: P.A. 94-495, eff. 8-8-05; 94-851, eff. 6-13-06;
95-661, eff. 1-1-08.)