Bill Text: IL HB2537 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the Illinois Banking Act, the Savings Bank Act, and the Illinois Credit Union Act to provide that if a subpoena, summons, warrant, or other request for a customer's records is presented to a bank or credit union by an agency or department of the federal government, or by an officer, agent, or employee of such federal agency or department, the bank or credit union is not required to release records until the bank or credit union has been furnished with a written certification that the requesting agency or department has satisfied its obligations under the Right to Financial Privacy Act of 1978. Makes other changes. Amends the Illinois Trust and Payable on Death Accounts Act. Provides that a holder of a payment on death account may elect a per stirpes distribution option to the descendants of a natural person beneficiary if the beneficiary predeceases the last surviving holder of the account. Provides that the financial institution may rely on the account holder's written representation of the identity of the descendants of each beneficiary living at the time of the beneficiary designation, and may also rely on an affidavit executed by a natural person beneficiary or descendant of a natural person beneficiary of the last surviving holder of the account upon or after the death of the account holder that identifies the descendants of any predeceased natural person beneficiary. Provides that 100% of the account must be distributed to all beneficiaries upon the death of the last surviving holder of the account. Makes other changes. Amends the Promissory Note and Bank Holiday Act. Provides that, if the bank is going to be closed for no more than a half day to permit personnel to attend a funeral, visitation, or other memorial service held for a deceased officer, employee, or director of the bank, or a family member of such person, the bank need only notify the Secretary and post conspicuously in the lobby of any affected office or branch of the bank notice of the hours during which the bank will be closed. Requires the notification to the Secretary and posting of notice in the lobby of the office or branch to be accomplished not less than 24 hours in advance of the day during which such closing will occur.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2023-03-10 - Rule 19(a) / Re-referred to Rules Committee [HB2537 Detail]

Download: Illinois-2023-HB2537-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2537 Introduced , by Rep. Camille Y. Lilly SYNOPSIS AS INTRODUCED:
See Index
Amends the Illinois Banking Act, the Savings Bank Act, and the Illinois Credit Union Act to provide that if a subpoena, summons, warrant, or other request for a customer's records is presented to a bank or credit union by an agency or department of the federal government, or by an officer, agent, or employee of such federal agency or department, the bank or credit union is not required to release records until the bank or credit union has been furnished with a written certification that the requesting agency or department has satisfied its obligations under the Right to Financial Privacy Act of 1978. Makes other changes. Amends the Illinois Trust and Payable on Death Accounts Act. Provides that a holder of a payment on death account may elect a per stirpes distribution option to the descendants of a natural person beneficiary if the beneficiary predeceases the last surviving holder of the account. Provides that the financial institution may rely on the account holder's written representation of the identity of the descendants of each beneficiary living at the time of the beneficiary designation, and may also rely on an affidavit executed by a natural person beneficiary or descendant of a natural person beneficiary of the last surviving holder of the account upon or after the death of the account holder that identifies the descendants of any predeceased natural person beneficiary. Provides that 100% of the account must be distributed to all beneficiaries upon the death of the last surviving holder of the account. Makes other changes. Amends the Promissory Note and Bank Holiday Act. Provides that, if the bank is going to be closed for no more than a half day to permit personnel to attend a funeral, visitation, or other memorial service held for a deceased officer, employee, or director of the bank, or a family member of such person, the bank need only notify the Secretary and post conspicuously in the lobby of any affected office or branch of the bank notice of the hours during which the bank will be closed. Requires the notification to the Secretary and posting of notice in the lobby of the office or branch to be accomplished not less than 24 hours in advance of the day during which such closing will occur.
LRB103 29631 BMS 56027 b
A BILL FOR
HB2537 LRB103 29631 BMS 56027 b
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
Sections 48.1 and 80 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

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or through a consumer reporting agency or (ii) financial
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 Revised
Uniform 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

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information between commonly owned banks in connection
with a transaction authorized under paragraph (23) of
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

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authorities, the Illinois Department on Aging and its
regional administrative and provider agencies, the
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
person or person with a disability 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 Adult Protective Services
Act and the Illinois Domestic Violence Act of 1986.
(17) The disclosure of financial records or

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information as necessary to effect, administer, or enforce
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)(1) For purposes of this paragraph (19) of

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subsection (b) of Section 48.1, a "private label credit
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 48.1, 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.
(20)(A) The furnishing of financial records of a
customer to the Department to aid the Department's initial
determination or subsequent re-determination of the
customer's eligibility for Medicaid and Medicaid long-term
care benefits for long-term care services, provided that
the bank receives the written consent and authorization of
the customer, which shall:
(1) have the customer's signature notarized;
(2) be signed by at least one witness who
certifies that he or she believes the customer to be of
sound mind and memory;
(3) be tendered to the bank at the earliest
practicable time following its execution,

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certification, and notarization;
(4) specifically limit the disclosure of the
customer's financial records to the Department; and
(5) be in substantially the following form:
CUSTOMER CONSENT AND AUTHORIZATION
FOR RELEASE OF FINANCIAL RECORDS
I, ......................................., hereby authorize
(Name of Customer)
.............................................................
(Name of Financial Institution)
.............................................................
(Address of Financial Institution)
to disclose the following financial records:
any and all information concerning my deposit, savings, money
market, certificate of deposit, individual retirement,
retirement plan, 401(k) plan, incentive plan, employee benefit
plan, mutual fund and loan accounts (including, but not
limited to, any indebtedness or obligation for which I am a
co-borrower, co-obligor, guarantor, or surety), and any and
all other accounts in which I have an interest and any other

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information regarding me in the possession of the Financial
Institution,
to the Illinois Department of Human Services or the Illinois
Department of Healthcare and Family Services, or both ("the
Department"), for the following purpose(s):
to aid in the initial determination or re-determination by the
State of Illinois of my eligibility for Medicaid long-term
care benefits, pursuant to applicable law.
I understand that this Consent and Authorization may be
revoked by me in writing at any time before my financial
records, as described above, are disclosed, and that this
Consent and Authorization is valid until the Financial
Institution receives my written revocation. This Consent and
Authorization shall constitute valid authorization for the
Department identified above to inspect all such financial
records set forth above, and to request and receive copies of
such financial records from the Financial Institution (subject
to such records search and reproduction reimbursement policies
as the Financial Institution may have in place). An executed
copy of this Consent and Authorization shall be sufficient and
as good as the original and permission is hereby granted to
honor a photostatic or electronic copy of this Consent and
Authorization. Disclosure is strictly limited to the

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Department identified above and no other person or entity
shall receive my financial records pursuant to this Consent
and Authorization. By signing this form, I agree to indemnify
and hold the Financial Institution harmless from any and all
claims, demands, and losses, including reasonable attorneys
fees and expenses, arising from or incurred in its reliance on
this Consent and Authorization. As used herein, "Customer"
shall mean "Member" if the Financial Institution is a credit
union.
....................... ......................
(Date) (Signature of Customer)
......................
......................
(Address of Customer)
......................
(Customer's birth date)
(month/day/year)
The undersigned witness certifies that .................,
known to me to be the same person whose name is subscribed as
the customer to the foregoing Consent and Authorization,
appeared before me and the notary public and acknowledged
signing and delivering the instrument as his or her free and

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voluntary act for the uses and purposes therein set forth. I
believe him or her to be of sound mind and memory. The
undersigned witness also certifies that the witness is not an
owner, operator, or relative of an owner or operator of a
long-term care facility in which the customer is a patient or
resident.
Dated: ................. ......................
(Signature of Witness)
......................
(Print Name of Witness)
......................
......................
(Address of Witness)
State of Illinois)
) ss.
County of .......)
The undersigned, a notary public in and for the above county
and state, certifies that .........., known to me to be the
same person whose name is subscribed as the customer to the
foregoing Consent and Authorization, appeared before me
together with the witness, .........., in person and

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acknowledged signing and delivering the instrument as the free
and voluntary act of the customer for the uses and purposes
therein set forth.
Dated:.......................................................
Notary Public:...............................................
My commission expires:.......................................
(B) In no event shall the bank distribute the
customer's financial records to the long-term care
facility from which the customer seeks initial or
continuing residency or long-term care services.
(C) A bank providing financial records of a customer
in good faith relying on a consent and authorization
executed and tendered in accordance with this paragraph
(20) shall not be liable to the customer or any other
person in relation to the bank's disclosure of the
customer's financial records to the Department. The
customer signing the consent and authorization shall
indemnify and hold the bank harmless that relies in good
faith upon the consent and authorization and incurs a loss
because of such reliance. The bank recovering under this
indemnification provision shall also be entitled to
reasonable attorney's fees and the expenses of recovery.
(D) A bank shall be reimbursed by the customer for all
costs reasonably necessary and directly incurred in

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searching for, reproducing, and disclosing a customer's
financial records required or requested to be produced
pursuant to any consent and authorization executed under
this paragraph (20). The requested financial records shall
be delivered to the Department within 10 days after
receiving a properly executed consent and authorization or
at the earliest practicable time thereafter if the
requested records cannot be delivered within 10 days, but
delivery may be delayed until the final reimbursement of
all costs is received by the bank. The bank may honor a
photostatic or electronic copy of a properly executed
consent and authorization.
(E) Nothing in this paragraph (20) shall impair,
abridge, or abrogate the right of a customer to:
(1) directly disclose his or her financial records
to the Department or any other person; or
(2) authorize his or her attorney or duly
appointed agent to request and obtain the customer's
financial records and disclose those financial records
to the Department.
(F) For purposes of this paragraph (20), "Department"
means the Department of Human Services and the Department
of Healthcare and Family Services or any successor
administrative agency of either agency.
(c) Except as otherwise provided by this Act, a bank may
not disclose to any person, except to the customer or his duly

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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;
(2) the financial records are disclosed in response to
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 sends 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 the person's personal representative,
if known, at the person's last known address by first class
mail, postage prepaid, through a third-party commercial
carrier or courier with delivery charge fully prepaid, by hand
delivery, or by electronic delivery at an email address on
file with the bank (if the person establishing the
relationship with the bank has consented to receive electronic

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delivery and, if the person establishing the relationship with
the bank is a consumer, the person has consented under the
consumer consent provisions set forth in Section 7001 of Title
15 of the United States Code), 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.
(d-1) If a subpoena, summons, warrant, or other request
for a customer's records is presented to the bank by an agency
or department of the federal government, or by an officer,
agent, or employee of such federal agency or department, a
bank is not required to release records until the bank has been
furnished with a written certification that the requesting
agency or department has satisfied its obligations under the
federal Right to Financial Privacy Act of 1978.
(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
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.

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(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 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. 101-81, eff. 7-12-19; 102-873, eff. 5-13-22.)
(205 ILCS 5/80) (from Ch. 17, par. 392)
Sec. 80. Board; powers. The Board shall have the following
powers in addition to any others that may be granted to it by
law:
(a) (Blank).
(b) To review, consider, and make recommendations to the
Director of Banking upon any banking matters.
(c) (Blank).
(d) (Blank).
(e) To review, consider, and submit to the Director of
Banking and to the Governor proposals for amendments to this
Act or for changes in or additions to the administration
thereof which in the opinion of the Board are necessary or
desirable in order to assure the safe and sound conduct of the
banking business.
(f) To require the Secretary to furnish the Board space

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for meetings to be held by the Board as well as to require the
Secretary to provide such clerical and technical assistance as
the Board may require.
(g) To adopt its own by-laws with respect to Board
meetings and procedures. Such by-laws shall provide that:
(i) A majority of the whole Board constitutes a
quorum.
(ii) A majority of the quorum shall constitute
effective action except that a vote of a majority of the
whole Board shall be necessary for recommendations made to
the Director of Banking and to the Governor with regard to
proposed amendments to this Act or to the administrative
practices hereunder.
(iii) The Board shall meet at least once in each
calendar year and upon the call of the Director of Banking
or a majority of the Board. The Director of Banking or a
majority of the Board may call such special or additional
meetings as may be deemed necessary or desirable.
(h) (Blank).
(i) (Blank).
(j) (Blank).
(k) (Blank).
(l) (Blank).
(m) To authorize the transfer of funds from the Illinois
Bank Examiners' Education Fund to the Bank and Trust Company
Fund. Any amount transferred shall be retransferred to the

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Illinois Bank Examiners' Education Fund from the Bank and
Trust Company Fund within 3 years.
(n) To maintain and direct the investments of the Illinois
Bank Examiners' Education Fund.
(o) To evaluate various courses, programs, curricula, and
schools of continuing education and professional training that
are available from within the United States for State banking
department examination personnel and develop a program known
as the Illinois Bank Examiners' Education Program. The Board
shall determine which courses, programs, curricula, and
schools will be included in the Program to be funded by the
Foundation.
(p) To review and examine bank call report fee revenue and
the disbursement of the fees.
(Source: P.A. 96-1163, eff. 1-1-11.)
Section 10. The Savings Bank Act is amended by changing
Section 4013 as follows:
(205 ILCS 205/4013) (from Ch. 17, par. 7304-13)
Sec. 4013. Access to books and records; communication with
members and shareholders.
(a) Every member or shareholder shall have the right to
inspect books and records of the savings bank that pertain to
his accounts. Otherwise, the right of inspection and
examination of the books and records shall be limited as

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provided in this Act, and no other person shall have access to
the books and records nor shall be entitled to a list of the
members or shareholders.
(b) 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 that shows each transaction in or with
respect to that account; (3) a check, draft, or money order
drawn on a savings bank or issued and payable by a savings
bank; or (4) any other item containing information pertaining
to any relationship established in the ordinary course of a
savings bank's business between a savings bank and its
customer, including financial statements or other financial
information provided by the member or shareholder.
(c) This Section does not prohibit:
(1) The preparation, examination, handling, or
maintenance of any financial records by any officer,
employee, or agent of a savings bank having custody of
records or examination of records by a certified public
accountant engaged by the savings bank to perform an
independent audit.
(2) The examination of any financial records by, or
the furnishing of financial records by a savings bank to,
any officer, employee, or agent of the Commissioner of
Banks and Real Estate or the federal depository

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institution regulator 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 members or holders of capital where
the data cannot be identified to any particular member,
shareholder, 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 savings bank and other
savings banks or financial institutions or commercial
enterprises, directly or through a consumer reporting
agency or (ii) financial records or information derived
from financial records between a savings bank and other
savings banks or financial institutions or commercial
enterprises for the purpose of conducting due diligence
pursuant to a purchase or sale involving the savings bank
or assets or liabilities of the savings bank.
(7) The furnishing of information to the appropriate
law enforcement authorities where the savings bank
reasonably believes it has been the victim of a crime.
(8) The furnishing of information pursuant to the
Revised Uniform Unclaimed Property Act.

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(9) The furnishing of information pursuant to the
Illinois Income Tax Act and the Illinois Estate and
Generation-Skipping Transfer Tax Act.
(10) The furnishing of information pursuant to the
federal Currency and Foreign Transactions Reporting Act,
(Title 31, United States Code, Section 1051 et seq.).
(11) The furnishing of information pursuant to any
other statute which 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 in accordance with
the federal Personal Responsibility and Work Opportunity
Reconciliation Act of 1996. Any savings bank governed by
this Act shall enter into an agreement for data exchanges
with a State agency provided the State agency pays to the
savings bank a reasonable fee not to exceed its actual
cost incurred. A savings 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 savings 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

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or willful misconduct. A savings 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.
(13) The furnishing of information to law enforcement
authorities, the Illinois Department on Aging and its
regional administrative and provider agencies, the
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 savings bank that a customer who is an
elderly person or person with a disability has been or may
become the victim of financial exploitation. For the
purposes of this item (13), the term: (i) "elderly person"
means a person who is 60 or more years of age, (ii) "person
with a disability" means a person who has or reasonably
appears to the savings 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
person or person with a disability, and includes, without
limitation, misappropriation of the assets or resources of
the elderly person or person with a disability by undue
influence, breach of fiduciary relationship, intimidation,
fraud, deception, extortion, or the use of assets or

HB2537 - 23 - LRB103 29631 BMS 56027 b
resources in any manner contrary to law. A savings bank or
person furnishing information pursuant to this item (13)
shall be entitled to the same rights and protections as a
person furnishing information under the Adult Protective
Services Act and the Illinois Domestic Violence Act of
1986.
(14) The disclosure of financial records or
information as necessary to effect, administer, or enforce
a transaction requested or authorized by the member or
holder of capital, or in connection with:
(A) servicing or processing a financial product or
service requested or authorized by the member or
holder of capital;
(B) maintaining or servicing an account of a
member or holder of capital with the savings bank; or
(C) a proposed or actual securitization or
secondary market sale (including sales of servicing
rights) related to a transaction of a member or holder
of capital.
Nothing in this item (14), however, authorizes the
sale of the financial records or information of a member
or holder of capital without the consent of the member or
holder of capital.
(15) The exchange in the regular course of business of
information between a savings bank and any commonly owned
affiliate of the savings bank, subject to the provisions

HB2537 - 24 - LRB103 29631 BMS 56027 b
of the Financial Institutions Insurance Sales Law.
(16) The disclosure of financial records or
information as necessary to protect against or prevent
actual or potential fraud, unauthorized transactions,
claims, or other liability.
(17)(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)(1) For purposes of this paragraph (17) of
subsection (c) of Section 4013, a "private label credit
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 (17) of subsection
(c) of Section 4013, 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,

HB2537 - 25 - LRB103 29631 BMS 56027 b
agent, or service provider.
(18)(a) The furnishing of financial records of a
customer to the Department to aid the Department's initial
determination or subsequent re-determination of the
customer's eligibility for Medicaid and Medicaid long-term
care benefits for long-term care services, provided that
the savings bank receives the written consent and
authorization of the customer, which shall:
(1) have the customer's signature notarized;
(2) be signed by at least one witness who
certifies that he or she believes the customer to be of
sound mind and memory;
(3) be tendered to the savings bank at the
earliest practicable time following its execution,
certification, and notarization;
(4) specifically limit the disclosure of the
customer's financial records to the Department; and
(5) be in substantially the following form:
CUSTOMER CONSENT AND AUTHORIZATION
FOR RELEASE OF FINANCIAL RECORDS
I, ......................................., hereby authorize
(Name of Customer)
.............................................................

HB2537 - 26 - LRB103 29631 BMS 56027 b
(Name of Financial Institution)
.............................................................
(Address of Financial Institution)
to disclose the following financial records:
any and all information concerning my deposit, savings, money
market, certificate of deposit, individual retirement,
retirement plan, 401(k) plan, incentive plan, employee benefit
plan, mutual fund and loan accounts (including, but not
limited to, any indebtedness or obligation for which I am a
co-borrower, co-obligor, guarantor, or surety), and any and
all other accounts in which I have an interest and any other
information regarding me in the possession of the Financial
Institution,
to the Illinois Department of Human Services or the Illinois
Department of Healthcare and Family Services, or both ("the
Department"), for the following purpose(s):
to aid in the initial determination or re-determination by the
State of Illinois of my eligibility for Medicaid long-term
care benefits, pursuant to applicable law.
I understand that this Consent and Authorization may be

HB2537 - 27 - LRB103 29631 BMS 56027 b
revoked by me in writing at any time before my financial
records, as described above, are disclosed, and that this
Consent and Authorization is valid until the Financial
Institution receives my written revocation. This Consent and
Authorization shall constitute valid authorization for the
Department identified above to inspect all such financial
records set forth above, and to request and receive copies of
such financial records from the Financial Institution (subject
to such records search and reproduction reimbursement policies
as the Financial Institution may have in place). An executed
copy of this Consent and Authorization shall be sufficient and
as good as the original and permission is hereby granted to
honor a photostatic or electronic copy of this Consent and
Authorization. Disclosure is strictly limited to the
Department identified above and no other person or entity
shall receive my financial records pursuant to this Consent
and Authorization. By signing this form, I agree to indemnify
and hold the Financial Institution harmless from any and all
claims, demands, and losses, including reasonable attorneys
fees and expenses, arising from or incurred in its reliance on
this Consent and Authorization. As used herein, "Customer"
shall mean "Member" if the Financial Institution is a credit
union.
....................... ......................
(Date) (Signature of Customer)

HB2537 - 28 - LRB103 29631 BMS 56027 b
......................
......................
(Address of Customer)
......................
(Customer's birth date)
(month/day/year)
The undersigned witness certifies that .................,
known to me to be the same person whose name is subscribed as
the customer to the foregoing Consent and Authorization,
appeared before me and the notary public and acknowledged
signing and delivering the instrument as his or her free and
voluntary act for the uses and purposes therein set forth. I
believe him or her to be of sound mind and memory. The
undersigned witness also certifies that the witness is not an
owner, operator, or relative of an owner or operator of a
long-term care facility in which the customer is a patient or
resident.
Dated: ................. ......................
(Signature of Witness)
......................
(Print Name of Witness)

HB2537 - 29 - LRB103 29631 BMS 56027 b
......................
......................
(Address of Witness)
State of Illinois)
) ss.
County of .......)
The undersigned, a notary public in and for the above county
and state, certifies that .........., known to me to be the
same person whose name is subscribed as the customer to the
foregoing Consent and Authorization, appeared before me
together with the witness, .........., in person and
acknowledged signing and delivering the instrument as the free
and voluntary act of the customer for the uses and purposes
therein set forth.
Dated:.......................................................
Notary Public:...............................................
My commission expires:.......................................
(b) In no event shall the savings bank distribute the
customer's financial records to the long-term care
facility from which the customer seeks initial or
continuing residency or long-term care services.

HB2537 - 30 - LRB103 29631 BMS 56027 b
(c) A savings bank providing financial records of a
customer in good faith relying on a consent and
authorization executed and tendered in accordance with
this paragraph (18) shall not be liable to the customer or
any other person in relation to the savings bank's
disclosure of the customer's financial records to the
Department. The customer signing the consent and
authorization shall indemnify and hold the savings bank
harmless that relies in good faith upon the consent and
authorization and incurs a loss because of such reliance.
The savings bank recovering under this indemnification
provision shall also be entitled to reasonable attorney's
fees and the expenses of recovery.
(d) A savings bank shall be reimbursed by the customer
for all costs reasonably necessary and directly incurred
in searching for, reproducing, and disclosing a customer's
financial records required or requested to be produced
pursuant to any consent and authorization executed under
this paragraph (18). The requested financial records shall
be delivered to the Department within 10 days after
receiving a properly executed consent and authorization or
at the earliest practicable time thereafter if the
requested records cannot be delivered within 10 days, but
delivery may be delayed until the final reimbursement of
all costs is received by the savings bank. The savings
bank may honor a photostatic or electronic copy of a

HB2537 - 31 - LRB103 29631 BMS 56027 b
properly executed consent and authorization.
(e) Nothing in this paragraph (18) shall impair,
abridge, or abrogate the right of a customer to:
(1) directly disclose his or her financial records
to the Department or any other person; or
(2) authorize his or her attorney or duly
appointed agent to request and obtain the customer's
financial records and disclose those financial records
to the Department.
(f) For purposes of this paragraph (18), "Department"
means the Department of Human Services and the Department
of Healthcare and Family Services or any successor
administrative agency of either agency.
(d) A savings bank may not disclose to any person, except
to the member or holder of capital or his duly authorized
agent, any financial records relating to that member or
shareholder of the savings bank unless:
(1) the member or shareholder has authorized
disclosure to the person; or
(2) the financial records are disclosed in response to
a lawful subpoena, summons, warrant, citation to discover
assets, or court order that meets the requirements of
subsection (e) of this Section.
(e) A savings bank shall disclose financial records under
subsection (d) of this Section pursuant to a lawful subpoena,
summons, warrant, citation to discover assets, or court order

HB2537 - 32 - LRB103 29631 BMS 56027 b
only after the savings bank sends a copy of the subpoena,
summons, warrant, citation to discover assets, or court order
to the person establishing the relationship with the savings
bank, if living, and otherwise, the person's personal
representative, if known, at the person's last known address
by first class mail, postage prepaid, through a third-party
commercial carrier or courier with delivery charge fully
prepaid, by hand delivery, or by electronic delivery at an
email address on file with the savings bank (if the person
establishing the relationship with the savings bank has
consented to receive electronic delivery and, if the person
establishing the relationship with the savings bank is a
consumer, the person has consented under the consumer consent
provisions set forth in Section 7001 of Title 15 of the United
States Code), unless the savings bank is specifically
prohibited from notifying the person by order of court.
(e-1) If a subpoena, summons, warrant, or other request
for a customer's records is presented to the savings bank by an
agency or department of the federal government, or by an
officer, agent, or employee of such federal agency or
department, a savings bank is not required to release records
until the savings bank has been furnished with a written
certification that the requesting agency or department has
satisfied its obligations under the federal Right to Financial
Privacy Act of 1978.
(f) Any officer or employee of a savings bank who

HB2537 - 33 - LRB103 29631 BMS 56027 b
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.
(g) Any person who knowingly and willfully induces or
attempts to induce any officer or employee of a savings bank to
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.
(h) If any member or shareholder desires to communicate
with the other members or shareholders of the savings bank
with reference to any question pending or to be presented at an
annual or special meeting, the savings bank shall give that
person, upon request, a statement of the approximate number of
members or shareholders entitled to vote at the meeting and an
estimate of the cost of preparing and mailing the
communication. The requesting member shall submit the
communication to the Commissioner who, upon finding it to be
appropriate and truthful, shall direct that it be prepared and
mailed to the members upon the requesting member's or
shareholder's payment or adequate provision for payment of the
expenses of preparation and mailing.
(i) A savings bank shall be reimbursed for costs that are
necessary and that have been directly incurred in searching
for, reproducing, or transporting books, papers, records, or
other data of a customer required to be reproduced pursuant to
a lawful subpoena, warrant, citation to discover assets, or

HB2537 - 34 - LRB103 29631 BMS 56027 b
court order.
(j) Notwithstanding the provisions of this Section, a
savings bank may sell or otherwise make use of lists of
customers' names and addresses. All other information
regarding a customer's account is subject to the disclosure
provisions of this Section. At the request of any customer,
that customer's name and address shall be deleted from any
list that is to be sold or used in any other manner beyond
identification of the customer's accounts.
(Source: P.A. 102-873, eff. 5-13-22.)
Section 15. The Illinois Credit Union Act is amended by
changing Section 10 as follows:
(205 ILCS 305/10) (from Ch. 17, par. 4411)
Sec. 10. Credit union records; member financial records.
(1) A credit union shall establish and maintain books,
records, accounting systems and procedures which accurately
reflect its operations and which enable the Department to
readily ascertain the true financial condition of the credit
union and whether it is complying with this Act.
(2) A photostatic or photographic reproduction of any
credit union records shall be admissible as evidence of
transactions with the credit union.
(3)(a) For the purpose of this Section, the term
"financial records" means any original, any copy, or any

HB2537 - 35 - LRB103 29631 BMS 56027 b
summary of (1) a document granting signature authority over an
account, (2) a statement, ledger card or other record on any
account which shows each transaction in or with respect to
that account, (3) a check, draft or money order drawn on a
financial institution or other entity or issued and payable by
or through a financial institution or other entity, or (4) any
other item containing information pertaining to any
relationship established in the ordinary course of business
between a credit union and its member, including financial
statements or other financial information provided by the
member.
(b) This Section does not prohibit:
(1) The preparation, examination, handling or
maintenance of any financial records by any officer,
employee or agent of a credit union having custody of such
records, or the examination of such records by a certified
public accountant engaged by the credit union to perform
an independent audit.
(2) The examination of any financial records by or the
furnishing of financial records by a credit union to any
officer, employee or agent of the Department, the National
Credit Union Administration, Federal Reserve board or any
insurer of share accounts 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 members where the data cannot be

HB2537 - 36 - LRB103 29631 BMS 56027 b
identified to any particular customer of account.
(4) The making of reports or returns required under
Chapter 61 of the Internal Revenue Code of 1954.
(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 credit union and other
credit unions or financial institutions or commercial
enterprises, directly or through a consumer reporting
agency or (ii) financial records or information derived
from financial records between a credit union and other
credit unions or financial institutions or commercial
enterprises for the purpose of conducting due diligence
pursuant to a merger or a purchase or sale of assets or
liabilities of the credit union.
(7) The furnishing of information to the appropriate
law enforcement authorities where the credit union
reasonably believes it has been the victim of a crime.
(8) The furnishing of information pursuant to the
Revised Uniform Unclaimed Property Act.
(9) The furnishing of information pursuant to the
Illinois Income Tax Act and the Illinois Estate and
Generation-Skipping Transfer Tax Act.
(10) The furnishing of information pursuant to the
federal Currency and Foreign Transactions Reporting Act,

HB2537 - 37 - LRB103 29631 BMS 56027 b
Title 31, United States Code, Section 1051 et sequentia.
(11) The furnishing of information pursuant to any
other statute which 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 in accordance with
the federal Personal Responsibility and Work Opportunity
Reconciliation Act of 1996. Any credit union governed by
this Act shall enter into an agreement for data exchanges
with a State agency provided the State agency pays to the
credit union a reasonable fee not to exceed its actual
cost incurred. A credit union 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 credit union 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 credit union 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.
(13) The furnishing of information to law enforcement

HB2537 - 38 - LRB103 29631 BMS 56027 b
authorities, the Illinois Department on Aging and its
regional administrative and provider agencies, the
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 credit union that a member who is an
elderly person or person with a disability has been or may
become the victim of financial exploitation. For the
purposes of this item (13), the term: (i) "elderly person"
means a person who is 60 or more years of age, (ii) "person
with a disability" means a person who has or reasonably
appears to the credit union 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
person or person with a disability, 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 credit union or person furnishing
information pursuant to this item (13) shall be entitled
to the same rights and protections as a person furnishing
information under the Adult Protective Services Act and
the Illinois Domestic Violence Act of 1986.

HB2537 - 39 - LRB103 29631 BMS 56027 b
(14) The disclosure of financial records or
information as necessary to effect, administer, or enforce
a transaction requested or authorized by the member, or in
connection with:
(A) servicing or processing a financial product or
service requested or authorized by the member;
(B) maintaining or servicing a member's account
with the credit union; or
(C) a proposed or actual securitization or
secondary market sale (including sales of servicing
rights) related to a transaction of a member.
Nothing in this item (14), however, authorizes the
sale of the financial records or information of a member
without the consent of the member.
(15) The disclosure of financial records or
information as necessary to protect against or prevent
actual or potential fraud, unauthorized transactions,
claims, or other liability.
(16)(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.

HB2537 - 40 - LRB103 29631 BMS 56027 b
(b)(1) For purposes of this item (16), "private label
credit 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 item (16), "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.
(17)(a) The furnishing of financial records of a
member to the Department to aid the Department's initial
determination or subsequent re-determination of the
member's eligibility for Medicaid and Medicaid long-term
care benefits for long-term care services, provided that
the credit union receives the written consent and
authorization of the member, which shall:
(1) have the member's signature notarized;
(2) be signed by at least one witness who
certifies that he or she believes the member to be of
sound mind and memory;
(3) be tendered to the credit union at the
earliest practicable time following its execution,
certification, and notarization;

HB2537 - 41 - LRB103 29631 BMS 56027 b
(4) specifically limit the disclosure of the
member's financial records to the Department; and
(5) be in substantially the following form:
CUSTOMER CONSENT AND AUTHORIZATION
FOR RELEASE OF FINANCIAL RECORDS
I, ......................................., hereby authorize
(Name of Customer)
.............................................................
(Name of Financial Institution)
.............................................................
(Address of Financial Institution)
to disclose the following financial records:
any and all information concerning my deposit, savings, money
market, certificate of deposit, individual retirement,
retirement plan, 401(k) plan, incentive plan, employee benefit
plan, mutual fund and loan accounts (including, but not
limited to, any indebtedness or obligation for which I am a
co-borrower, co-obligor, guarantor, or surety), and any and
all other accounts in which I have an interest and any other
information regarding me in the possession of the Financial

HB2537 - 42 - LRB103 29631 BMS 56027 b
Institution,
to the Illinois Department of Human Services or the Illinois
Department of Healthcare and Family Services, or both ("the
Department"), for the following purpose(s):
to aid in the initial determination or re-determination by the
State of Illinois of my eligibility for Medicaid long-term
care benefits, pursuant to applicable law.
I understand that this Consent and Authorization may be
revoked by me in writing at any time before my financial
records, as described above, are disclosed, and that this
Consent and Authorization is valid until the Financial
Institution receives my written revocation. This Consent and
Authorization shall constitute valid authorization for the
Department identified above to inspect all such financial
records set forth above, and to request and receive copies of
such financial records from the Financial Institution (subject
to such records search and reproduction reimbursement policies
as the Financial Institution may have in place). An executed
copy of this Consent and Authorization shall be sufficient and
as good as the original and permission is hereby granted to
honor a photostatic or electronic copy of this Consent and
Authorization. Disclosure is strictly limited to the
Department identified above and no other person or entity

HB2537 - 43 - LRB103 29631 BMS 56027 b
shall receive my financial records pursuant to this Consent
and Authorization. By signing this form, I agree to indemnify
and hold the Financial Institution harmless from any and all
claims, demands, and losses, including reasonable attorneys
fees and expenses, arising from or incurred in its reliance on
this Consent and Authorization. As used herein, "Customer"
shall mean "Member" if the Financial Institution is a credit
union.
....................... ......................
(Date) (Signature of Customer)
......................
......................
(Address of Customer)
......................
(Customer's birth date)
(month/day/year)
The undersigned witness certifies that .................,
known to me to be the same person whose name is subscribed as
the customer to the foregoing Consent and Authorization,
appeared before me and the notary public and acknowledged
signing and delivering the instrument as his or her free and
voluntary act for the uses and purposes therein set forth. I

HB2537 - 44 - LRB103 29631 BMS 56027 b
believe him or her to be of sound mind and memory. The
undersigned witness also certifies that the witness is not an
owner, operator, or relative of an owner or operator of a
long-term care facility in which the customer is a patient or
resident.
Dated: ................. ......................
(Signature of Witness)
......................
(Print Name of Witness)
......................
......................
(Address of Witness)
State of Illinois)
) ss.
County of .......)
The undersigned, a notary public in and for the above county
and state, certifies that .........., known to me to be the
same person whose name is subscribed as the customer to the
foregoing Consent and Authorization, appeared before me
together with the witness, .........., in person and
acknowledged signing and delivering the instrument as the free

HB2537 - 45 - LRB103 29631 BMS 56027 b
and voluntary act of the customer for the uses and purposes
therein set forth.
Dated:.......................................................
Notary Public:...............................................
My commission expires:.......................................
(b) In no event shall the credit union distribute the
member's financial records to the long-term care facility
from which the member seeks initial or continuing
residency or long-term care services.
(c) A credit union providing financial records of a
member in good faith relying on a consent and
authorization executed and tendered in accordance with
this item (17) shall not be liable to the member or any
other person in relation to the credit union's disclosure
of the member's financial records to the Department. The
member signing the consent and authorization shall
indemnify and hold the credit union harmless that relies
in good faith upon the consent and authorization and
incurs a loss because of such reliance. The credit union
recovering under this indemnification provision shall also
be entitled to reasonable attorney's fees and the expenses
of recovery.
(d) A credit union shall be reimbursed by the member
for all costs reasonably necessary and directly incurred

HB2537 - 46 - LRB103 29631 BMS 56027 b
in searching for, reproducing, and disclosing a member's
financial records required or requested to be produced
pursuant to any consent and authorization executed under
this item (17). The requested financial records shall be
delivered to the Department within 10 days after receiving
a properly executed consent and authorization or at the
earliest practicable time thereafter if the requested
records cannot be delivered within 10 days, but delivery
may be delayed until the final reimbursement of all costs
is received by the credit union. The credit union may
honor a photostatic or electronic copy of a properly
executed consent and authorization.
(e) Nothing in this item (17) shall impair, abridge,
or abrogate the right of a member to:
(1) directly disclose his or her financial records
to the Department or any other person; or
(2) authorize his or her attorney or duly
appointed agent to request and obtain the member's
financial records and disclose those financial records
to the Department.
(f) For purposes of this item (17), "Department" means
the Department of Human Services and the Department of
Healthcare and Family Services or any successor
administrative agency of either agency.
(18) The furnishing of the financial records of a
member to an appropriate law enforcement authority,

HB2537 - 47 - LRB103 29631 BMS 56027 b
without prior notice to or consent of the member, upon
written request of the law enforcement authority, when
reasonable suspicion of an imminent threat to the personal
security and safety of the member exists that necessitates
an expedited release of the member's financial records, as
determined by the law enforcement authority. The law
enforcement authority shall include a brief explanation of
the imminent threat to the member in its written request
to the credit union. The written request shall reflect
that it has been authorized by a supervisory or managerial
official of the law enforcement authority. The decision to
furnish the financial records of a member to a law
enforcement authority shall be made by a supervisory or
managerial official of the credit union. A credit union
providing information in accordance with this item (18)
shall not be liable to the member or any other person for
the disclosure of the information to the law enforcement
authority.
(c) Except as otherwise provided by this Act, a credit
union may not disclose to any person, except to the member or
his duly authorized agent, any financial records relating to
that member of the credit union unless:
(1) the member has authorized disclosure to the
person;
(2) the financial records are disclosed in response to
a lawful subpoena, summons, warrant, citation to discover

HB2537 - 48 - LRB103 29631 BMS 56027 b
assets, or court order that meets the requirements of
subparagraph (3)(d) of this Section; or
(3) the credit union is attempting to collect an
obligation owed to the credit union and the credit union
complies with the provisions of Section 2I of the Consumer
Fraud and Deceptive Business Practices Act.
(d) A credit union shall disclose financial records under
item (3)(c)(2) of this Section pursuant to a lawful subpoena,
summons, warrant, citation to discover assets, or court order
only after the credit union sends a copy of the subpoena,
summons, warrant, citation to discover assets, or court order
to the person establishing the relationship with the credit
union, if living, and otherwise the person's personal
representative, if known, at the person's last known address
by first class mail, postage prepaid, through a third-party
commercial carrier or courier with delivery charge fully
prepaid, by hand delivery, or by electronic delivery at an
email address on file with the credit union (if the person
establishing the relationship with the credit union has
consented to receive electronic delivery and, if the person
establishing the relationship with the credit union is a
consumer, the person has consented under the consumer consent
provisions set forth in Section 7001 of Title 15 of the United
States Code), unless the credit union is specifically
prohibited from notifying the person by order of court or by
applicable State or federal law. In the case of a grand jury

HB2537 - 49 - LRB103 29631 BMS 56027 b
subpoena, a credit union 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 or
notifying the person would constitute a violation of the
federal Right to Financial Privacy Act of 1978.
(d-1) If a subpoena, summons, warrant, or other request
for a customer's records is presented to the credit union by an
agency or department of the federal government, or by an
officer, agent, or employee of such federal agency or
department, a credit union is not required to release records
until the credit union has been furnished with a written
certification that the requesting agency or department has
satisfied its obligations under the federal Right to Financial
Privacy Act of 1978.
(e)(1) Any officer or employee of a credit union who
knowingly and willfully furnishes financial records in
violation of this Section is guilty of a business offense and
upon conviction thereof shall be fined not more than $1,000.
(2) Any person who knowingly and willfully induces or
attempts to induce any officer or employee of a credit union to
disclose financial records in violation of this Section is
guilty of a business offense and upon conviction thereof shall
be fined not more than $1,000.
(f) A credit union shall be reimbursed for costs which are
reasonably necessary and which have been directly incurred in
searching for, reproducing or transporting books, papers,

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records or other data of a member required or requested to be
produced pursuant to a lawful subpoena, summons, warrant,
citation to discover assets, or court order. The Secretary and
the Director may determine, by rule, the rates and conditions
under which payment shall be made. Delivery of requested
documents may be delayed until final reimbursement of all
costs is received.
(Source: P.A. 101-81, eff. 7-12-19; 102-873, eff. 5-13-22.)
Section 20. The Illinois Trust and Payable on Death
Accounts Act is amended by changing Section 4 as follows:
(205 ILCS 625/4) (from Ch. 17, par. 2134)
Sec. 4. Payable on Death Account Incidents. If one or more
persons opening or holding an account sign an agreement with
the institution providing that on the death of the last
surviving person designated as holder the account shall be
paid to or held by one or more designated beneficiaries, the
account, and any balance therein which exists from time to
time, shall be held as a payment on death account and unless
otherwise agreed in writing between the person or persons
opening or holding the account and the institution:
(a) Any holder during his or her lifetime may change any of
the designated beneficiaries to own the account at the death
of the last surviving holder without the knowledge or consent
of any other holder or the designated beneficiaries by a

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written instrument accepted by the institution;
(b) Any holder may make additional deposits to and
withdraw any part or all of the account at any time without the
knowledge or consent of any other holder or the designated
beneficiaries to own the account at the death of the last
surviving holder, subject to the bylaws and regulations of the
institution, and all withdrawals shall constitute a revocation
of the agreement as to the amount withdrawn; and
(c) Upon the death of the last surviving holder of the
account, the beneficiary designated to be the owner of the
account (i) who is then living, if the beneficiary is a natural
person, or (ii) that maintains a lawful existence under the
state or federal authority pursuant to which it was organized,
if the beneficiary is not a natural person, shall be the sole
owner of the account. If , unless more than one beneficiary is
so designated and then living or in existence, in which case
those beneficiaries shall hold the account in equal shares as
tenants in common with no right of survivorship as between
those beneficiaries; and .
(d) Notwithstanding anything to the contrary in subsection
(c), any holder of the account may elect a per stirpes
distribution option to the descendants of a natural person
beneficiary if the beneficiary predeceases the last surviving
holder of the account. The institution may rely on the account
holder's written representation of the identity of the
descendants of each beneficiary living at the time of the

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beneficiary designation. The institution may also rely on an
affidavit executed by a natural person beneficiary or
descendant of a natural person beneficiary of the last
surviving holder of the account upon or after the death of the
account holder that identifies the descendants of any
predeceased natural person beneficiary. The total percentage
of the account to be distributed to all beneficiaries upon the
death of the last surviving holder of the account must equal
100%. If no beneficiary designated as the owner of the account
on the death of the last surviving holder is then living or in
existence, or if no descendant of a natural person beneficiary
is then living if a per stirpes distribution has been
selected, the proceeds shall vest in the estate of the last
surviving holder of the account.
(Source: P.A. 96-1151, eff. 7-21-10.)
Section 25. The Promissory Note and Bank Holiday Act is
amended by changing Section 17 as follows:
(205 ILCS 630/17) (from Ch. 17, par. 2201)
Sec. 17. Holidays.
(a) The following days shall be legal holidays in the
State of Illinois upon which day a bank may, but is not
required to, remain closed:
the first day of January (New Year's Day);
the third Monday in January (observance of Martin Luther

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King, Jr.'s birthday);
the twelfth day in February (Abraham Lincoln's birthday);
the third Monday in February (Presidents Day);
the first Monday in March (observance of Casimir Pulaski's
birthday);
the Friday preceding Easter Sunday (Good Friday);
the last Monday of May (Memorial Day);
the nineteenth day of June (Juneteenth National Freedom
Day);
the fourth day of July (Independence Day);
the first Monday in September (Labor Day);
the second Monday in October (Columbus Day);
the eleventh day of November (Veterans' Day);
the fourth Thursday in November (Thanksgiving Day);
the twenty-fifth day in December (Christmas Day);
the days upon which the general elections for members of
the House of Representatives are held, and any day proclaimed
by the Governor of this State as a legal holiday. From 12
o'clock noon to 12 o'clock midnight of each Saturday shall be
considered a half holiday. In addition to such holidays and
half-holidays, a bank may select one day of the week to remain
closed, as provided in subsection (b) of this Section.
(b) Any bank doing business within this State may select
any one day of the week to remain closed on a regular basis
upon adoption of a resolution by the board of directors of such
bank designating the day selected and upon filing and

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publishing a copy of such resolution as hereinafter required.
Any such resolution shall be deemed effective for the purpose
of this Section only when a copy thereof, certified by an
officer having charge of the records of such bank, is filed
with the Recorder of the county in which such bank is located
and published once each week for 3 successive weeks in a
newspaper of general circulation in such county. Such
publication shall be accomplished by, and at the expense of,
the bank, and the bank shall submit to the Commissioner of
Banks and Real Estate such evidence of the publication as the
Commissioner shall deem appropriate. Any such selection shall
remain in full force and effect until a copy of the later
resolution of the board of directors of such bank, certified
in like manner, terminating or altering any such prior
selection shall be filed and published in the same manner as
such prior resolution.
(c) If an occasion arises when a state bank wishes to
remain closed on a particular day, other than a day on which
the bank has selected to remain closed on a regular basis as
provided in this Section, such state bank may remain closed on
such an occasion after first sending to the Commissioner a
copy of a resolution adopted by the board of directors
authorizing the bank to remain closed on such occasion and
notice of the intent to remain closed on such occasion shall be
conspicuously posted in the lobby of the main banking office
and any branches of such bank for at least 3 weeks in advance

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of such occasion. Any day which any bank doing business within
the State shall select to remain closed pursuant to this
Section shall, with respect to such bank, be treated and
considered as a Sunday. Notwithstanding the notification time
frames and procedures otherwise stated in this subsection, if
the bank is going to be closed for no more than a half day to
permit personnel to attend a funeral, visitation, or other
memorial service held for a deceased officer, employee, or
director of the bank, or a family member of such person, the
bank need only notify the Secretary and post conspicuously in
the lobby of any affected office or branch of the bank notice
of the hours during which the bank will be closed. Such
notification to the Secretary and posting of notice in the
lobby of the office or branch shall be accomplished not less
than 24 hours in advance of the day during which such closing
will occur.
(d) All legal holidays, the half holidays and any day
selected by a bank doing business within the State to remain
closed, shall, for all purposes whatsoever, as regards the
presenting for payment or acceptance, the maturity and
protesting and giving of notice of the dishonor of bills of
exchange, bank checks and promissory notes and other
negotiable or commercial paper or instrument, be treated and
considered as a Sunday. When any such holidays, except
Juneteenth National Freedom Day, fall on Sunday, the Monday
next following shall be held and considered such holiday. All

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notes, bills, drafts, checks or other evidence of
indebtedness, falling due or maturing on either of such days,
shall be deemed as due or maturing upon the day following, and
when 2 or more of these days come together, or immediately
succeeding each other, then such instruments, paper or
indebtedness shall be deemed as due or having matured on the
day following the last of such days.
(e) Any act authorized, required or permitted to be
performed at or by or with respect to any bank doing business
within the State on a day which it has selected to remain
closed under this Section may be so performed on the next
succeeding business day and no liability or loss of rights of
any kind shall result from such delay.
(f) Nothing in this Act shall in any manner affect the
validity of, or render void or voidable, the payment,
certification, or acceptance of a check or other negotiable
instrument, or any other transaction by a bank in this State,
because done or performed on any Saturday, Sunday, holiday, or
any day selected by a bank to remain closed, or during any time
other than regular banking hours; but no bank in this State,
which by law or custom is entitled to remain open or to close
for the whole or any part of any day selected by it to remain
open or to close, is compelled to close, or to remain open for
the transaction of business or to perform any of the acts or
transactions aforesaid except at its own option.
(Source: P.A. 102-14, eff. 1-1-22; 102-334, eff. 8-9-21.)
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INDEX
Statutes amended in order of appearance