State Codes and Statutes

Statutes > Illinois > Chapter205 > 1192

    (205 ILCS 616/1)
    Sec. 1. This Act may be cited as the Electronic Fund Transfer Act.
(Source: P.A. 89‑310, eff. 1‑1‑96.)

    (205 ILCS 616/5)
    Sec. 5. Findings and purpose.
    (a) The General Assembly finds:
        (1) that communications networks linking financial
     institutions and their customers, through which transfers of funds are effected electronically, provide the people of this State with substantial benefits;
        (2) that it is essential that the rights of the
     people of this State be adequately protected by encouraging the establishment of communications networks that will be economically viable and technologically reliable;
        (3) that the opportunity for competition among
     suppliers of electronic fund transfer communications services must be preserved, thus assuring to customers of financial institutions and to financial institutions the benefits of a competitive environment;
        (4) that it is essential that the benefits of
     electronic fund transfers be readily available to all customers of financial institutions, all financial institutions, and all sellers of goods and services that choose to participate in such a system of electronic fund transfers; and
        (5) that it is essential that the competitive
     environment in the electronic payment systems industry in this State be preserved and enhanced.
    (b) It is the purpose of this Act to enable electronic fund transfer communications networks and financial institutions to meet the needs of commerce in a competitive environment and to provide reliable communications services to the people of this State.
(Source: P.A. 89‑310, eff. 1‑1‑96.)

    (205 ILCS 616/10)
    Sec. 10. Definitions. For purposes of this Act, the words and phrases defined in this Section shall have the meanings ascribed to them unless the context requires otherwise. Whenever the terms "network" and "switch" are used, they shall be deemed interchangeable unless, from the context and facts, the intention is plain to apply only to one type of entity.
    "Access device" means a card, code, or other means of access to an account, or any combination thereof, that may be used by a customer to initiate an electronic fund transfer at a terminal.
    "Account" means a demand deposit, savings deposit, share, member, or other customer asset account held by a financial institution.
    An "affiliate" of, or a person "affiliated" with, a specified person, means a person that directly, or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with, the person specified.
    "Commissioner" means the Commissioner of Banks and Real Estate or a person authorized by the Commissioner, the Office of Banks and Real Estate Act, or this Act to act in the Commissioner's stead.
    "Electronic fund transfer" means a transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, that is initiated through a terminal for the purpose of ordering, instructing, or authorizing a financial institution to debit or credit an account.
    "Financial institution" means a bank established under the laws of this or any other state or established under the laws of the United States, a savings and loan association or savings bank established under the laws of this or any other state or established under the laws of the United States, a credit union established under the laws of this or any other state or established under the laws of the United States, or a licensee under the Consumer Installment Loan Act or the Sales Finance Agency Act.
    "Interchange transaction" means an electronic fund transfer that results in exchange of data and settlement of funds between 2 or more unaffiliated financial institutions.
    "Network" means an electronic information communication and processing system that processes interchange transactions.
    "Person" means a natural person, corporation, unit of government or governmental subdivision or agency, trust, estate, partnership, cooperative, or association.
    "Seller of goods and services" means a business entity other than a financial institution.
    "Switch" means an electronic information and communication processing facility that processes interchange transactions on behalf of a network. This term does not include an electronic information and communication processing company (1) that is owned by a bank holding company or an affiliate of a bank holding company and used solely for transmissions among affiliates of the bank holding company or (2) to the extent that the facility, by virtue of a contractual relationship, is used solely for transmissions among affiliates of a bank holding company, regardless of whether the facility is an affiliate of the bank holding company or operates as a switch with respect to one or more networks under an independent contractual relationship.
    "Terminal" means an electronic device through which a consumer may initiate an interchange transaction. This term does not include (1) a telephone, (2) an electronic device located in a personal residence, (3) a personal computer or other electronic device used primarily for personal, family, or household purposes, (4) an electronic device owned or operated by a seller of goods and services unless the device is connected either directly or indirectly to a financial institution and is operated in a manner that provides access to an account by means of a personal and confidential code or other security mechanism (other than signature), (5) an electronic device that is not accessible to persons other than employees of a financial institution or affiliate of a financial institution, or (6) an electronic device that is established by a financial institution on a proprietary basis that is identified as such and that cannot be accessed by customers of other financial institutions. The Commissioner may issue a written rule that excludes additional electronic devices from the definition of the term "terminal".
(Source: P.A. 89‑310, eff. 1‑1‑96; 89‑508, eff. 7‑3‑96.)

    (205 ILCS 616/15)
    Sec. 15. Exemptions and limitations.
    (a) A seller of goods and services on whose premises one or more terminals are established is not, solely by virtue of such establishment or solely by virtue of the processing of interchange transactions in connection with the sale of goods and services, a financial institution and is not subject to the laws governing, or other requirements imposed on, financial institutions.
    (b) Nothing contained in this Act shall authorize the Commissioner to regulate the conduct of business functions or to obtain access to any business records, data, or information of a seller of goods and services that operates a terminal, except as may otherwise be provided by law; nor shall this Act be construed to prohibit or to authorize the Commissioner to prohibit a seller of goods and services from using a terminal to perform internal proprietary functions, including extensions of credit pursuant to an open end credit plan.
    (c) The provision of facilities or services by a public utility subject to the Public Utilities Act in connection with an electronic fund transfer system does not subject the public utility to this Act.
    (d) A financial institution is not subject to the Public Utilities Act solely by reason of acts undertaken in connection with an electronic fund transfer system under this Act unless the financial institution performs acts as a public utility or a common carrier of communications services.
(Source: P.A. 89‑310, eff. 1‑1‑96.)

    (205 ILCS 616/20)
    Sec. 20. Powers and duties of Commissioner. The Commissioner shall have the following powers and duties:
    (1) to promulgate reasonable rules in accordance with the Illinois Administrative Procedure Act for the administration of this Act;
    (2) to issue orders for the enforcement of this Act and any rule promulgated under this Act;
    (3) to appoint hearing officers to exercise any delegated powers;
    (4) to subpoena witnesses, compel their attendance, administer oaths, examine any person under oath, and require the production of any relevant books, papers, accounts, and documents in the course of and pursuant to any investigation conducted or action taken by the Commissioner; and
    (5) to conduct hearings.
(Source: P.A. 92‑811, eff. 8‑21‑02.)

    (205 ILCS 616/25)
    Sec. 25. Examination authority. The Commissioner or examiners appointed by the Commissioner have the authority to examine any network and any switch, including leased equipment and services furnished by a subcontractor or other party, as to any transaction by, with, or involving a financial institution that has established a terminal in this State. Information obtained in the course of an examination shall not be disclosed, except as provided by law.
(Source: P.A. 89‑310, eff. 1‑1‑96.)

    (205 ILCS 616/30)
    Sec. 30. Acceptance of deposits.
    (A) No terminal that accepts deposits of funds to an account may be established or owned in this State except by (a) a bank established under the laws of this or any other state or established under the laws of the United States that (1) is authorized by law to establish a branch in this State or (2) is permitted by rule of the Commissioner to establish deposit‑taking terminals in this State in order to maintain parity between national banks and banks established under the laws of this or any other state, (b) a savings and loan association or savings bank established under the laws of this or any other state or established under the laws of the United States, (c) a credit union established under the laws of this or any other state or established under the laws of the United States, or (d) a licensee under the Consumer Installment Loan Act or the Sales Finance Agency Act.
    (B) A person other than a financial institution or an affiliate of a financial institution may establish or own, in whole or in part, a cash‑dispensing terminal at which an interchange transaction may be performed, provided that the terminal does not accept deposits of funds to an account, and provided that the person establishing or owning the terminal shall file a notice of establishment or ownership of a terminal with the Commissioner, in the form prescribed by the Commissioner, within 60 days after the later of (a) the effective day of this amendatory Act of 1997 or (b) the establishment of or acquisition of an ownership interest in the terminal. Persons who own a terminal pursuant to this subsection (B) shall thereafter file with the Commissioner a full and accurate statement of information of ownership, in the form prescribed by the Commissioner, once per calendar year. A person who has established or owns a terminal pursuant to this subsection (B) shall not be required to file subsequent notices of establishment or ownership of a terminal when establishing or acquiring an ownership interest in additional terminals provided the person includes the information required by the Commissioner for those terminals in the person's annual filing pursuant to this subsection (B). The Commissioner or examiners appointed by the Commissioner shall have the authority to examine any person that has established or owns a terminal in this State pursuant to this subsection (B) if the Commissioner has received multiple complaints regarding one or more terminals owned by the person, and in the event of such an examination, the person shall pay the reasonable costs and expenses of the examination as determined by the Commissioner. The Commissioner may impose civil penalties of up to $1,000 against any person subject to this subsection (B) for the first failure to comply with this Act and up to $10,000 for the second and each subsequent failure to comply with this Act. All moneys received by the Commissioner under this subsection (B) shall be paid into, and all expenses incurred by the Commissioner under this subsection (B) shall be paid from, the Bank and Trust Company Fund.
    (C) A network operating in this State shall maintain a directory of the locations of cash‑dispensing terminals at which an interchange transaction may be performed that are established or owned in this State by its members and shall file the directory with the Commissioner within 60 days after the effective date of this amendatory Act of 1997 and thereafter once per calendar year.
(Source: P.A. 89‑310, eff. 1‑1‑96; 90‑189, eff. 1‑1‑98.)

    (205 ILCS 616/35)
    Sec. 35. Limit on switch connections. No main office or branch of a financial institution shall at the same time be directly connected to more than one switch; provided, however, that (a) no financial institution shall be deemed to be directly connected to a switch that is, or is owned directly or indirectly by, that financial institution, and (b) nothing in this Act shall preclude (1) a terminal that does not accept deposits from being connected to more than one switch, (2) a network from utilizing more than one switch, or (3) a network from utilizing a single switch.
(Source: P.A. 89‑310, eff. 1‑1‑96.)

    (205 ILCS 616/40)
    Sec. 40. Transmission through a network. All electronic fund transfers that (i) are interchange transactions and (ii) are initiated at a terminal in connection with payment for goods and services shall be transmitted to a financial institution through a network.
(Source: P.A. 89‑310, eff. 1‑1‑96.)

    (205 ILCS 616/45)
    Sec. 45. Nondiscriminatory access.
    (a) Subject to the provisions of Section 35 of this Act, use of a terminal through access to a switch and use of any switch shall be available on a nondiscriminatory basis to any switch or financial institution that has its principal place of business within this State. The terms and conditions of use shall be governed by a written agreement between the network and the financial institution or other switch obtaining the use. The written agreement shall specify all of the terms and conditions under which the network may be utilized, including commercially reasonable fees and charges.
    (b) The use and operation of each terminal served by a switch shall be governed by a written agreement between the network and the person establishing the terminal. The written agreement shall specify all the terms and conditions under which the network provides service to the terminal, including commercially reasonable fees and charges.
    (c) (Blank).
(Source: P.A. 92‑811, eff. 8‑21‑02.)

    (205 ILCS 616/50)
    Sec. 50. Terminal requirements.
    (a) To assure maximum safety and security against malfunction, fraud, theft, and other accidents or abuses and to assure that all access devices will have the capability of activating all terminals established in this State, no terminal shall accept an access device that does not conform to specifications that are generally accepted. In the case of a dispute concerning the specifications, the Commissioner, in accordance with the provisions of Section 20 of this Act, shall have the authority to determine the specifications.
    (b) No terminal that does not accept an access device that conforms with those specifications shall be established or operated.
    (c) A terminal shall bear a logotype or other identification symbol designed to advise customers which access devices may activate the terminal.
    (d) When used to perform an interchange transaction, a terminal shall not bear any form of proprietary advertising of products and services not offered at the terminal; provided, however, that a terminal screen may bear proprietary advertising of products or services offered by a financial institution when a person uses an access device issued by that financial institution.
    (e) No person operating a terminal in this State shall impose any surcharge on a consumer for the usage of that terminal, whether or not the consumer is using an access device issued by that person, unless that surcharge is clearly disclosed to the consumer both (i) by a sign that is clearly visible to the consumer on or at the terminal being used and (ii) electronically on the terminal screen. Following presentation of the electronic disclosure on the terminal screen, the consumer shall be provided an opportunity to cancel that transaction without incurring any surcharge or other obligation. If a surcharge is imposed on a consumer using an access device not issued by the person operating the terminal, that person shall disclose on the sign and on the terminal screen that the surcharge is in addition to any fee that may be assessed by the consumer's own institution. As used in this subsection, "surcharge" means any charge imposed by the person operating the terminal solely for the use of the terminal.
    (f) A receipt given at a terminal to a person who initiates an electronic fund transfer shall include a number or code that identifies the consumer initiating the transfer, the consumer's account or accounts, or the access device used to initiate the transfer. If the number or code shown on the receipt is a number that identifies the access device, the number must be truncated as printed on the receipt so that fewer than all of the digits of the number or code are printed on the receipt. The Commissioner may, however, modify or waive the requirements imposed by this subsection (f) if the Commissioner determines that the modifications or waivers are necessary to alleviate any undue compliance burden.
    (g) No terminal shall operate in this State unless, with respect to each interchange transaction initiated at the terminal, the access code entered by the consumer to authorize the transaction is encrypted by the device into which the access code is manually entered by the consumer and is transmitted from the terminal only in encrypted form. Any terminal that cannot meet the foregoing encryption requirements shall immediately cease forwarding information with respect to any interchange transaction or attempted interchange transaction.
    (h) No person that directly or indirectly provides data processing support to any terminal in this State shall authorize or forward for authorization any interchange transaction unless the access code intended to authorize the interchange transaction is encrypted when received by that person and is encrypted when forwarded to any other person.
    (i) A terminal operated in this State may be designed and programmed so that when a consumer enters his or her personal identification number in reverse order, the terminal automatically sends an alarm to the local law enforcement agency having jurisdiction over the terminal location. The Commissioner shall promulgate rules necessary for the implementation of this subsection (i). The provisions of this subsection (i) shall not be construed to require an owner or operator of a terminal to design and program the terminal to accept a personal identification number in reverse order.
    (j) A person operating a terminal in this State may not impose a fee upon a consumer for usage of the terminal if the consumer is using a Link Card or other access device issued by a government agency for use in obtaining financial aid under the Illinois Public Aid Code.
    For the purpose of this subsection (j), the term "person operating a terminal" means the person who has control over and is responsible for a terminal. The term "person operating a terminal" does not mean the person who owns or controls the property or building in which a terminal is located, unless he or she also has control over and is responsible for the terminal.
(Source: P.A. 93‑136, eff. 1‑1‑04; 93‑273, eff. 1‑1‑04; 93‑583, eff. 1‑1‑04; 93‑898, eff. 8‑10‑04.)

    (205 ILCS 616/55)
    Sec. 55. Applicability of federal law.
    (a) The provisions of the federal Electronic Fund Transfer Act (15 U.S.C. 1693a et seq.), amendments to that Act, and any regulations issued or that may be issued under that Act, except for those provisions, amendments, or regulations that establish crimes or provide for nonfinancial penalties, are hereby adopted as part of this Act. Compliance with federal law shall be deemed to be compliance with this Section.
    (b) A consumer may authorize an electronic fund transfer by arranging for a debit to the consumer's account and specifying the designated payee. In that case, the financial institution shall execute the transfer by the end of the next business day after entry of the debit. For purposes of this subsection, "consumer" means a natural person.
(Source: P.A. 89‑310, eff. 1‑1‑96.)

    (205 ILCS 616/60)
    Sec. 60. Judicial review. All final administrative decisions of the Commissioner under this Act shall be subject to judicial review pursuant to the provisions of the Administrative Review Law and the rules adopted pursuant to that Law. For matters involving administrative review, venue shall be in either Sangamon County or Cook County.
(Source: P.A. 89‑310, eff. 1‑1‑96.)

    (205 ILCS 616/65)
    Sec. 65. Inseverability and severability. If any provision of this Act or its application to any person or circumstance is held invalid, this Act shall be invalid in its entirety, provided, however, that if any provision of this Act or its application is held invalid under the Home Owners Loan Act of 1933, as amended, the Federal Home Loan Bank Act, as amended, or the Federal Credit Union Act, as amended, the invalidity of that provision or application does not affect other provisions or applications that can be given effect without the invalid provision or application.
(Source: P.A. 89‑310, eff. 1‑1‑96.)

    (205 ILCS 616/70)
    Sec. 70. Illinois Electronic Fund Transfer Advisory Committee.
    (a) The Illinois Electronic Fund Transfer Advisory Committee shall consist of the Commissioner, who shall be its Chairman, and 10 additional members who shall be appointed by the Governor with the advice and consent of the Senate and whose respective qualifications shall be as follows: (i) one member shall be from a State bank, (ii) one member shall be from a national bank, (iii) one member shall be from a State savings and loan association or savings bank, (iv) one member shall be from a federal savings and loan association or savings bank, (v) one member shall be from a State credit union, (vi) one member shall be from a federal credit union, (vii) 2 members shall be sellers of goods and services, (viii) 2 members shall be from networks or companies that provide network‑related data processing services who are executive officers within the electronic fund transfer field of their respective businesses, and all of whom shall have had no less than 2 years experience in the field of commercial electronic fund transfer activity. The members of the Committee created under the Electronic Fund Transfer Transmission Facility Act who hold office on the effective date of this Act shall be the members of the Committee under this Act and shall continue to hold office for the term for which they were appointed.
    (b) The terms of office of the members of the Committee shall be as follows:
        (i) The term of office of each member shall be 4
     years, except that an appointment to fill a vacancy shall be for the unexpired term of the member whose vacancy is being filled.
        (ii) No member shall serve more than 2 full 4‑year
     terms of office.
        (iii) The term of office of any member of the
     Illinois Electronic Fund Transfer Advisory Committee shall terminate automatically when the member no longer meets the qualifications for that member's appointment to the Committee.
    (c) The Electronic Fund Transfer Committee shall meet at least once in each calendar year. Special meetings may be called by the Commissioner or upon the request of any 4 members of the Committee. Each member shall serve without compensation, but shall be reimbursed for any ordinary and necessary expenses incurred in attending meetings of the Committee.
    (d) The Committee shall have the following powers:
        (i) to make recommendations to the Commissioner
     concerning matters which he may refer to the Committee for consideration;
        (ii) to make recommendations on its own initiative
     concerning electronic fund transfer administration, examination and supervision policies and practices to the Commissioner, the Governor or the General Assembly;
        (iii) to make recommendations to the Commissioner
     for the purpose of preventing and minimizing unsafe and unsound practices in the field of electronic fund transfer; and
        (iv) to foster and encourage the interest and
     cooperation of members involved in the delivery of electronic fund transfer services to the public and in the improvement of electronic fund transfer services.
(Source: P.A. 89‑310, eff. 1‑1‑96; 90‑301, eff. 8‑1‑97.)

    (205 ILCS 616/75)
    Sec. 75. Illinois Electronic Data Processing Advisory Committee.
    (a) The Illinois Electronic Data Processing Advisory Committee shall consist of the Commissioner, who shall be its Chairman, and 8 additional members. The 8 additional members shall be appointed by the Governor with the advice and consent of the Senate. The members of the Committee created under the Electronic Fund Transfer Transmission Facility Act who hold office on the effective date of this Act shall be the members of the Committee under this Act and shall continue to hold office for the term for which they were appointed. The members shall be divided into 2 separate groups and shall have the following qualifications:
        (i) Group 1 shall consist of 4 members who are
     executive officers of State bank data processing service bureaus and who shall have had no less than 2 years experience in the field of electronic data processing.
        (ii) Group 2 shall consist of 4 members who are
     executive officers of independent data processing service bureaus located in the State of Illinois and who shall have no less than 2 years experience in the field of electronic data processing.
    (b) The terms of office of all Group 1 and Group 2 members of the Committee shall be as follows:
        (i) The term of office of each Group 1 member shall
     be 4 years, except that an appointment to fill a vacancy shall be for the unexpired term of the member whose vacancy is being filled.
        (ii) The term of office of each Group 2 member shall
     be 4 years, except that an appointment to fill a vacancy shall be for the unexpired term of the member whose vacancy is being filled.
        (iii) No Group 1 or Group 2 member shall serve more
     than 2 full 4‑year terms of office.
        (iv) The term of office of any member of the
     Illinois Electronic Data Processing Advisory Committee shall terminate automatically when the member no longer meets the qualifications for that member's appointment to the Committee.
    (c) The Electronic Data Processing Advisory Committee shall meet at least once in each calendar year. Special meetings may be called by the Commissioner or upon the request of any 3 members of the Committee. Each member shall serve without compensation, but shall be reimbursed for any ordinary and necessary expenses incurred in attending meetings of the Committee.
    (d) The Committee shall have the following powers:
        (i) to make recommendations to the Commissioner
     concerning matters which he may refer to the Committee for consideration;
        (ii) to make recommendations on its own initiative
     concerning electronic data processing administration, examination and supervision policies and practices to the Commissioner, the Governor or the General Assembly;
        (iii) to make recommendations to the Commissioner
     for the purpose of preventing and minimizing unsafe and unsound practices in the field of electronic data processing; and
        (iv) to foster and encourage the interest and
     cooperation of members involved in the delivery of electronic data processing services to the public and in the improvement of electronic data processing services.
(Source: P.A. 89‑310, eff. 1‑1‑96; 90‑301, eff. 8‑1‑97.)

    

State Codes and Statutes

Statutes > Illinois > Chapter205 > 1192

    (205 ILCS 616/1)
    Sec. 1. This Act may be cited as the Electronic Fund Transfer Act.
(Source: P.A. 89‑310, eff. 1‑1‑96.)

    (205 ILCS 616/5)
    Sec. 5. Findings and purpose.
    (a) The General Assembly finds:
        (1) that communications networks linking financial
     institutions and their customers, through which transfers of funds are effected electronically, provide the people of this State with substantial benefits;
        (2) that it is essential that the rights of the
     people of this State be adequately protected by encouraging the establishment of communications networks that will be economically viable and technologically reliable;
        (3) that the opportunity for competition among
     suppliers of electronic fund transfer communications services must be preserved, thus assuring to customers of financial institutions and to financial institutions the benefits of a competitive environment;
        (4) that it is essential that the benefits of
     electronic fund transfers be readily available to all customers of financial institutions, all financial institutions, and all sellers of goods and services that choose to participate in such a system of electronic fund transfers; and
        (5) that it is essential that the competitive
     environment in the electronic payment systems industry in this State be preserved and enhanced.
    (b) It is the purpose of this Act to enable electronic fund transfer communications networks and financial institutions to meet the needs of commerce in a competitive environment and to provide reliable communications services to the people of this State.
(Source: P.A. 89‑310, eff. 1‑1‑96.)

    (205 ILCS 616/10)
    Sec. 10. Definitions. For purposes of this Act, the words and phrases defined in this Section shall have the meanings ascribed to them unless the context requires otherwise. Whenever the terms "network" and "switch" are used, they shall be deemed interchangeable unless, from the context and facts, the intention is plain to apply only to one type of entity.
    "Access device" means a card, code, or other means of access to an account, or any combination thereof, that may be used by a customer to initiate an electronic fund transfer at a terminal.
    "Account" means a demand deposit, savings deposit, share, member, or other customer asset account held by a financial institution.
    An "affiliate" of, or a person "affiliated" with, a specified person, means a person that directly, or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with, the person specified.
    "Commissioner" means the Commissioner of Banks and Real Estate or a person authorized by the Commissioner, the Office of Banks and Real Estate Act, or this Act to act in the Commissioner's stead.
    "Electronic fund transfer" means a transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, that is initiated through a terminal for the purpose of ordering, instructing, or authorizing a financial institution to debit or credit an account.
    "Financial institution" means a bank established under the laws of this or any other state or established under the laws of the United States, a savings and loan association or savings bank established under the laws of this or any other state or established under the laws of the United States, a credit union established under the laws of this or any other state or established under the laws of the United States, or a licensee under the Consumer Installment Loan Act or the Sales Finance Agency Act.
    "Interchange transaction" means an electronic fund transfer that results in exchange of data and settlement of funds between 2 or more unaffiliated financial institutions.
    "Network" means an electronic information communication and processing system that processes interchange transactions.
    "Person" means a natural person, corporation, unit of government or governmental subdivision or agency, trust, estate, partnership, cooperative, or association.
    "Seller of goods and services" means a business entity other than a financial institution.
    "Switch" means an electronic information and communication processing facility that processes interchange transactions on behalf of a network. This term does not include an electronic information and communication processing company (1) that is owned by a bank holding company or an affiliate of a bank holding company and used solely for transmissions among affiliates of the bank holding company or (2) to the extent that the facility, by virtue of a contractual relationship, is used solely for transmissions among affiliates of a bank holding company, regardless of whether the facility is an affiliate of the bank holding company or operates as a switch with respect to one or more networks under an independent contractual relationship.
    "Terminal" means an electronic device through which a consumer may initiate an interchange transaction. This term does not include (1) a telephone, (2) an electronic device located in a personal residence, (3) a personal computer or other electronic device used primarily for personal, family, or household purposes, (4) an electronic device owned or operated by a seller of goods and services unless the device is connected either directly or indirectly to a financial institution and is operated in a manner that provides access to an account by means of a personal and confidential code or other security mechanism (other than signature), (5) an electronic device that is not accessible to persons other than employees of a financial institution or affiliate of a financial institution, or (6) an electronic device that is established by a financial institution on a proprietary basis that is identified as such and that cannot be accessed by customers of other financial institutions. The Commissioner may issue a written rule that excludes additional electronic devices from the definition of the term "terminal".
(Source: P.A. 89‑310, eff. 1‑1‑96; 89‑508, eff. 7‑3‑96.)

    (205 ILCS 616/15)
    Sec. 15. Exemptions and limitations.
    (a) A seller of goods and services on whose premises one or more terminals are established is not, solely by virtue of such establishment or solely by virtue of the processing of interchange transactions in connection with the sale of goods and services, a financial institution and is not subject to the laws governing, or other requirements imposed on, financial institutions.
    (b) Nothing contained in this Act shall authorize the Commissioner to regulate the conduct of business functions or to obtain access to any business records, data, or information of a seller of goods and services that operates a terminal, except as may otherwise be provided by law; nor shall this Act be construed to prohibit or to authorize the Commissioner to prohibit a seller of goods and services from using a terminal to perform internal proprietary functions, including extensions of credit pursuant to an open end credit plan.
    (c) The provision of facilities or services by a public utility subject to the Public Utilities Act in connection with an electronic fund transfer system does not subject the public utility to this Act.
    (d) A financial institution is not subject to the Public Utilities Act solely by reason of acts undertaken in connection with an electronic fund transfer system under this Act unless the financial institution performs acts as a public utility or a common carrier of communications services.
(Source: P.A. 89‑310, eff. 1‑1‑96.)

    (205 ILCS 616/20)
    Sec. 20. Powers and duties of Commissioner. The Commissioner shall have the following powers and duties:
    (1) to promulgate reasonable rules in accordance with the Illinois Administrative Procedure Act for the administration of this Act;
    (2) to issue orders for the enforcement of this Act and any rule promulgated under this Act;
    (3) to appoint hearing officers to exercise any delegated powers;
    (4) to subpoena witnesses, compel their attendance, administer oaths, examine any person under oath, and require the production of any relevant books, papers, accounts, and documents in the course of and pursuant to any investigation conducted or action taken by the Commissioner; and
    (5) to conduct hearings.
(Source: P.A. 92‑811, eff. 8‑21‑02.)

    (205 ILCS 616/25)
    Sec. 25. Examination authority. The Commissioner or examiners appointed by the Commissioner have the authority to examine any network and any switch, including leased equipment and services furnished by a subcontractor or other party, as to any transaction by, with, or involving a financial institution that has established a terminal in this State. Information obtained in the course of an examination shall not be disclosed, except as provided by law.
(Source: P.A. 89‑310, eff. 1‑1‑96.)

    (205 ILCS 616/30)
    Sec. 30. Acceptance of deposits.
    (A) No terminal that accepts deposits of funds to an account may be established or owned in this State except by (a) a bank established under the laws of this or any other state or established under the laws of the United States that (1) is authorized by law to establish a branch in this State or (2) is permitted by rule of the Commissioner to establish deposit‑taking terminals in this State in order to maintain parity between national banks and banks established under the laws of this or any other state, (b) a savings and loan association or savings bank established under the laws of this or any other state or established under the laws of the United States, (c) a credit union established under the laws of this or any other state or established under the laws of the United States, or (d) a licensee under the Consumer Installment Loan Act or the Sales Finance Agency Act.
    (B) A person other than a financial institution or an affiliate of a financial institution may establish or own, in whole or in part, a cash‑dispensing terminal at which an interchange transaction may be performed, provided that the terminal does not accept deposits of funds to an account, and provided that the person establishing or owning the terminal shall file a notice of establishment or ownership of a terminal with the Commissioner, in the form prescribed by the Commissioner, within 60 days after the later of (a) the effective day of this amendatory Act of 1997 or (b) the establishment of or acquisition of an ownership interest in the terminal. Persons who own a terminal pursuant to this subsection (B) shall thereafter file with the Commissioner a full and accurate statement of information of ownership, in the form prescribed by the Commissioner, once per calendar year. A person who has established or owns a terminal pursuant to this subsection (B) shall not be required to file subsequent notices of establishment or ownership of a terminal when establishing or acquiring an ownership interest in additional terminals provided the person includes the information required by the Commissioner for those terminals in the person's annual filing pursuant to this subsection (B). The Commissioner or examiners appointed by the Commissioner shall have the authority to examine any person that has established or owns a terminal in this State pursuant to this subsection (B) if the Commissioner has received multiple complaints regarding one or more terminals owned by the person, and in the event of such an examination, the person shall pay the reasonable costs and expenses of the examination as determined by the Commissioner. The Commissioner may impose civil penalties of up to $1,000 against any person subject to this subsection (B) for the first failure to comply with this Act and up to $10,000 for the second and each subsequent failure to comply with this Act. All moneys received by the Commissioner under this subsection (B) shall be paid into, and all expenses incurred by the Commissioner under this subsection (B) shall be paid from, the Bank and Trust Company Fund.
    (C) A network operating in this State shall maintain a directory of the locations of cash‑dispensing terminals at which an interchange transaction may be performed that are established or owned in this State by its members and shall file the directory with the Commissioner within 60 days after the effective date of this amendatory Act of 1997 and thereafter once per calendar year.
(Source: P.A. 89‑310, eff. 1‑1‑96; 90‑189, eff. 1‑1‑98.)

    (205 ILCS 616/35)
    Sec. 35. Limit on switch connections. No main office or branch of a financial institution shall at the same time be directly connected to more than one switch; provided, however, that (a) no financial institution shall be deemed to be directly connected to a switch that is, or is owned directly or indirectly by, that financial institution, and (b) nothing in this Act shall preclude (1) a terminal that does not accept deposits from being connected to more than one switch, (2) a network from utilizing more than one switch, or (3) a network from utilizing a single switch.
(Source: P.A. 89‑310, eff. 1‑1‑96.)

    (205 ILCS 616/40)
    Sec. 40. Transmission through a network. All electronic fund transfers that (i) are interchange transactions and (ii) are initiated at a terminal in connection with payment for goods and services shall be transmitted to a financial institution through a network.
(Source: P.A. 89‑310, eff. 1‑1‑96.)

    (205 ILCS 616/45)
    Sec. 45. Nondiscriminatory access.
    (a) Subject to the provisions of Section 35 of this Act, use of a terminal through access to a switch and use of any switch shall be available on a nondiscriminatory basis to any switch or financial institution that has its principal place of business within this State. The terms and conditions of use shall be governed by a written agreement between the network and the financial institution or other switch obtaining the use. The written agreement shall specify all of the terms and conditions under which the network may be utilized, including commercially reasonable fees and charges.
    (b) The use and operation of each terminal served by a switch shall be governed by a written agreement between the network and the person establishing the terminal. The written agreement shall specify all the terms and conditions under which the network provides service to the terminal, including commercially reasonable fees and charges.
    (c) (Blank).
(Source: P.A. 92‑811, eff. 8‑21‑02.)

    (205 ILCS 616/50)
    Sec. 50. Terminal requirements.
    (a) To assure maximum safety and security against malfunction, fraud, theft, and other accidents or abuses and to assure that all access devices will have the capability of activating all terminals established in this State, no terminal shall accept an access device that does not conform to specifications that are generally accepted. In the case of a dispute concerning the specifications, the Commissioner, in accordance with the provisions of Section 20 of this Act, shall have the authority to determine the specifications.
    (b) No terminal that does not accept an access device that conforms with those specifications shall be established or operated.
    (c) A terminal shall bear a logotype or other identification symbol designed to advise customers which access devices may activate the terminal.
    (d) When used to perform an interchange transaction, a terminal shall not bear any form of proprietary advertising of products and services not offered at the terminal; provided, however, that a terminal screen may bear proprietary advertising of products or services offered by a financial institution when a person uses an access device issued by that financial institution.
    (e) No person operating a terminal in this State shall impose any surcharge on a consumer for the usage of that terminal, whether or not the consumer is using an access device issued by that person, unless that surcharge is clearly disclosed to the consumer both (i) by a sign that is clearly visible to the consumer on or at the terminal being used and (ii) electronically on the terminal screen. Following presentation of the electronic disclosure on the terminal screen, the consumer shall be provided an opportunity to cancel that transaction without incurring any surcharge or other obligation. If a surcharge is imposed on a consumer using an access device not issued by the person operating the terminal, that person shall disclose on the sign and on the terminal screen that the surcharge is in addition to any fee that may be assessed by the consumer's own institution. As used in this subsection, "surcharge" means any charge imposed by the person operating the terminal solely for the use of the terminal.
    (f) A receipt given at a terminal to a person who initiates an electronic fund transfer shall include a number or code that identifies the consumer initiating the transfer, the consumer's account or accounts, or the access device used to initiate the transfer. If the number or code shown on the receipt is a number that identifies the access device, the number must be truncated as printed on the receipt so that fewer than all of the digits of the number or code are printed on the receipt. The Commissioner may, however, modify or waive the requirements imposed by this subsection (f) if the Commissioner determines that the modifications or waivers are necessary to alleviate any undue compliance burden.
    (g) No terminal shall operate in this State unless, with respect to each interchange transaction initiated at the terminal, the access code entered by the consumer to authorize the transaction is encrypted by the device into which the access code is manually entered by the consumer and is transmitted from the terminal only in encrypted form. Any terminal that cannot meet the foregoing encryption requirements shall immediately cease forwarding information with respect to any interchange transaction or attempted interchange transaction.
    (h) No person that directly or indirectly provides data processing support to any terminal in this State shall authorize or forward for authorization any interchange transaction unless the access code intended to authorize the interchange transaction is encrypted when received by that person and is encrypted when forwarded to any other person.
    (i) A terminal operated in this State may be designed and programmed so that when a consumer enters his or her personal identification number in reverse order, the terminal automatically sends an alarm to the local law enforcement agency having jurisdiction over the terminal location. The Commissioner shall promulgate rules necessary for the implementation of this subsection (i). The provisions of this subsection (i) shall not be construed to require an owner or operator of a terminal to design and program the terminal to accept a personal identification number in reverse order.
    (j) A person operating a terminal in this State may not impose a fee upon a consumer for usage of the terminal if the consumer is using a Link Card or other access device issued by a government agency for use in obtaining financial aid under the Illinois Public Aid Code.
    For the purpose of this subsection (j), the term "person operating a terminal" means the person who has control over and is responsible for a terminal. The term "person operating a terminal" does not mean the person who owns or controls the property or building in which a terminal is located, unless he or she also has control over and is responsible for the terminal.
(Source: P.A. 93‑136, eff. 1‑1‑04; 93‑273, eff. 1‑1‑04; 93‑583, eff. 1‑1‑04; 93‑898, eff. 8‑10‑04.)

    (205 ILCS 616/55)
    Sec. 55. Applicability of federal law.
    (a) The provisions of the federal Electronic Fund Transfer Act (15 U.S.C. 1693a et seq.), amendments to that Act, and any regulations issued or that may be issued under that Act, except for those provisions, amendments, or regulations that establish crimes or provide for nonfinancial penalties, are hereby adopted as part of this Act. Compliance with federal law shall be deemed to be compliance with this Section.
    (b) A consumer may authorize an electronic fund transfer by arranging for a debit to the consumer's account and specifying the designated payee. In that case, the financial institution shall execute the transfer by the end of the next business day after entry of the debit. For purposes of this subsection, "consumer" means a natural person.
(Source: P.A. 89‑310, eff. 1‑1‑96.)

    (205 ILCS 616/60)
    Sec. 60. Judicial review. All final administrative decisions of the Commissioner under this Act shall be subject to judicial review pursuant to the provisions of the Administrative Review Law and the rules adopted pursuant to that Law. For matters involving administrative review, venue shall be in either Sangamon County or Cook County.
(Source: P.A. 89‑310, eff. 1‑1‑96.)

    (205 ILCS 616/65)
    Sec. 65. Inseverability and severability. If any provision of this Act or its application to any person or circumstance is held invalid, this Act shall be invalid in its entirety, provided, however, that if any provision of this Act or its application is held invalid under the Home Owners Loan Act of 1933, as amended, the Federal Home Loan Bank Act, as amended, or the Federal Credit Union Act, as amended, the invalidity of that provision or application does not affect other provisions or applications that can be given effect without the invalid provision or application.
(Source: P.A. 89‑310, eff. 1‑1‑96.)

    (205 ILCS 616/70)
    Sec. 70. Illinois Electronic Fund Transfer Advisory Committee.
    (a) The Illinois Electronic Fund Transfer Advisory Committee shall consist of the Commissioner, who shall be its Chairman, and 10 additional members who shall be appointed by the Governor with the advice and consent of the Senate and whose respective qualifications shall be as follows: (i) one member shall be from a State bank, (ii) one member shall be from a national bank, (iii) one member shall be from a State savings and loan association or savings bank, (iv) one member shall be from a federal savings and loan association or savings bank, (v) one member shall be from a State credit union, (vi) one member shall be from a federal credit union, (vii) 2 members shall be sellers of goods and services, (viii) 2 members shall be from networks or companies that provide network‑related data processing services who are executive officers within the electronic fund transfer field of their respective businesses, and all of whom shall have had no less than 2 years experience in the field of commercial electronic fund transfer activity. The members of the Committee created under the Electronic Fund Transfer Transmission Facility Act who hold office on the effective date of this Act shall be the members of the Committee under this Act and shall continue to hold office for the term for which they were appointed.
    (b) The terms of office of the members of the Committee shall be as follows:
        (i) The term of office of each member shall be 4
     years, except that an appointment to fill a vacancy shall be for the unexpired term of the member whose vacancy is being filled.
        (ii) No member shall serve more than 2 full 4‑year
     terms of office.
        (iii) The term of office of any member of the
     Illinois Electronic Fund Transfer Advisory Committee shall terminate automatically when the member no longer meets the qualifications for that member's appointment to the Committee.
    (c) The Electronic Fund Transfer Committee shall meet at least once in each calendar year. Special meetings may be called by the Commissioner or upon the request of any 4 members of the Committee. Each member shall serve without compensation, but shall be reimbursed for any ordinary and necessary expenses incurred in attending meetings of the Committee.
    (d) The Committee shall have the following powers:
        (i) to make recommendations to the Commissioner
     concerning matters which he may refer to the Committee for consideration;
        (ii) to make recommendations on its own initiative
     concerning electronic fund transfer administration, examination and supervision policies and practices to the Commissioner, the Governor or the General Assembly;
        (iii) to make recommendations to the Commissioner
     for the purpose of preventing and minimizing unsafe and unsound practices in the field of electronic fund transfer; and
        (iv) to foster and encourage the interest and
     cooperation of members involved in the delivery of electronic fund transfer services to the public and in the improvement of electronic fund transfer services.
(Source: P.A. 89‑310, eff. 1‑1‑96; 90‑301, eff. 8‑1‑97.)

    (205 ILCS 616/75)
    Sec. 75. Illinois Electronic Data Processing Advisory Committee.
    (a) The Illinois Electronic Data Processing Advisory Committee shall consist of the Commissioner, who shall be its Chairman, and 8 additional members. The 8 additional members shall be appointed by the Governor with the advice and consent of the Senate. The members of the Committee created under the Electronic Fund Transfer Transmission Facility Act who hold office on the effective date of this Act shall be the members of the Committee under this Act and shall continue to hold office for the term for which they were appointed. The members shall be divided into 2 separate groups and shall have the following qualifications:
        (i) Group 1 shall consist of 4 members who are
     executive officers of State bank data processing service bureaus and who shall have had no less than 2 years experience in the field of electronic data processing.
        (ii) Group 2 shall consist of 4 members who are
     executive officers of independent data processing service bureaus located in the State of Illinois and who shall have no less than 2 years experience in the field of electronic data processing.
    (b) The terms of office of all Group 1 and Group 2 members of the Committee shall be as follows:
        (i) The term of office of each Group 1 member shall
     be 4 years, except that an appointment to fill a vacancy shall be for the unexpired term of the member whose vacancy is being filled.
        (ii) The term of office of each Group 2 member shall
     be 4 years, except that an appointment to fill a vacancy shall be for the unexpired term of the member whose vacancy is being filled.
        (iii) No Group 1 or Group 2 member shall serve more
     than 2 full 4‑year terms of office.
        (iv) The term of office of any member of the
     Illinois Electronic Data Processing Advisory Committee shall terminate automatically when the member no longer meets the qualifications for that member's appointment to the Committee.
    (c) The Electronic Data Processing Advisory Committee shall meet at least once in each calendar year. Special meetings may be called by the Commissioner or upon the request of any 3 members of the Committee. Each member shall serve without compensation, but shall be reimbursed for any ordinary and necessary expenses incurred in attending meetings of the Committee.
    (d) The Committee shall have the following powers:
        (i) to make recommendations to the Commissioner
     concerning matters which he may refer to the Committee for consideration;
        (ii) to make recommendations on its own initiative
     concerning electronic data processing administration, examination and supervision policies and practices to the Commissioner, the Governor or the General Assembly;
        (iii) to make recommendations to the Commissioner
     for the purpose of preventing and minimizing unsafe and unsound practices in the field of electronic data processing; and
        (iv) to foster and encourage the interest and
     cooperation of members involved in the delivery of electronic data processing services to the public and in the improvement of electronic data processing services.
(Source: P.A. 89‑310, eff. 1‑1‑96; 90‑301, eff. 8‑1‑97.)

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State Codes and Statutes

State Codes and Statutes

Statutes > Illinois > Chapter205 > 1192

    (205 ILCS 616/1)
    Sec. 1. This Act may be cited as the Electronic Fund Transfer Act.
(Source: P.A. 89‑310, eff. 1‑1‑96.)

    (205 ILCS 616/5)
    Sec. 5. Findings and purpose.
    (a) The General Assembly finds:
        (1) that communications networks linking financial
     institutions and their customers, through which transfers of funds are effected electronically, provide the people of this State with substantial benefits;
        (2) that it is essential that the rights of the
     people of this State be adequately protected by encouraging the establishment of communications networks that will be economically viable and technologically reliable;
        (3) that the opportunity for competition among
     suppliers of electronic fund transfer communications services must be preserved, thus assuring to customers of financial institutions and to financial institutions the benefits of a competitive environment;
        (4) that it is essential that the benefits of
     electronic fund transfers be readily available to all customers of financial institutions, all financial institutions, and all sellers of goods and services that choose to participate in such a system of electronic fund transfers; and
        (5) that it is essential that the competitive
     environment in the electronic payment systems industry in this State be preserved and enhanced.
    (b) It is the purpose of this Act to enable electronic fund transfer communications networks and financial institutions to meet the needs of commerce in a competitive environment and to provide reliable communications services to the people of this State.
(Source: P.A. 89‑310, eff. 1‑1‑96.)

    (205 ILCS 616/10)
    Sec. 10. Definitions. For purposes of this Act, the words and phrases defined in this Section shall have the meanings ascribed to them unless the context requires otherwise. Whenever the terms "network" and "switch" are used, they shall be deemed interchangeable unless, from the context and facts, the intention is plain to apply only to one type of entity.
    "Access device" means a card, code, or other means of access to an account, or any combination thereof, that may be used by a customer to initiate an electronic fund transfer at a terminal.
    "Account" means a demand deposit, savings deposit, share, member, or other customer asset account held by a financial institution.
    An "affiliate" of, or a person "affiliated" with, a specified person, means a person that directly, or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with, the person specified.
    "Commissioner" means the Commissioner of Banks and Real Estate or a person authorized by the Commissioner, the Office of Banks and Real Estate Act, or this Act to act in the Commissioner's stead.
    "Electronic fund transfer" means a transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, that is initiated through a terminal for the purpose of ordering, instructing, or authorizing a financial institution to debit or credit an account.
    "Financial institution" means a bank established under the laws of this or any other state or established under the laws of the United States, a savings and loan association or savings bank established under the laws of this or any other state or established under the laws of the United States, a credit union established under the laws of this or any other state or established under the laws of the United States, or a licensee under the Consumer Installment Loan Act or the Sales Finance Agency Act.
    "Interchange transaction" means an electronic fund transfer that results in exchange of data and settlement of funds between 2 or more unaffiliated financial institutions.
    "Network" means an electronic information communication and processing system that processes interchange transactions.
    "Person" means a natural person, corporation, unit of government or governmental subdivision or agency, trust, estate, partnership, cooperative, or association.
    "Seller of goods and services" means a business entity other than a financial institution.
    "Switch" means an electronic information and communication processing facility that processes interchange transactions on behalf of a network. This term does not include an electronic information and communication processing company (1) that is owned by a bank holding company or an affiliate of a bank holding company and used solely for transmissions among affiliates of the bank holding company or (2) to the extent that the facility, by virtue of a contractual relationship, is used solely for transmissions among affiliates of a bank holding company, regardless of whether the facility is an affiliate of the bank holding company or operates as a switch with respect to one or more networks under an independent contractual relationship.
    "Terminal" means an electronic device through which a consumer may initiate an interchange transaction. This term does not include (1) a telephone, (2) an electronic device located in a personal residence, (3) a personal computer or other electronic device used primarily for personal, family, or household purposes, (4) an electronic device owned or operated by a seller of goods and services unless the device is connected either directly or indirectly to a financial institution and is operated in a manner that provides access to an account by means of a personal and confidential code or other security mechanism (other than signature), (5) an electronic device that is not accessible to persons other than employees of a financial institution or affiliate of a financial institution, or (6) an electronic device that is established by a financial institution on a proprietary basis that is identified as such and that cannot be accessed by customers of other financial institutions. The Commissioner may issue a written rule that excludes additional electronic devices from the definition of the term "terminal".
(Source: P.A. 89‑310, eff. 1‑1‑96; 89‑508, eff. 7‑3‑96.)

    (205 ILCS 616/15)
    Sec. 15. Exemptions and limitations.
    (a) A seller of goods and services on whose premises one or more terminals are established is not, solely by virtue of such establishment or solely by virtue of the processing of interchange transactions in connection with the sale of goods and services, a financial institution and is not subject to the laws governing, or other requirements imposed on, financial institutions.
    (b) Nothing contained in this Act shall authorize the Commissioner to regulate the conduct of business functions or to obtain access to any business records, data, or information of a seller of goods and services that operates a terminal, except as may otherwise be provided by law; nor shall this Act be construed to prohibit or to authorize the Commissioner to prohibit a seller of goods and services from using a terminal to perform internal proprietary functions, including extensions of credit pursuant to an open end credit plan.
    (c) The provision of facilities or services by a public utility subject to the Public Utilities Act in connection with an electronic fund transfer system does not subject the public utility to this Act.
    (d) A financial institution is not subject to the Public Utilities Act solely by reason of acts undertaken in connection with an electronic fund transfer system under this Act unless the financial institution performs acts as a public utility or a common carrier of communications services.
(Source: P.A. 89‑310, eff. 1‑1‑96.)

    (205 ILCS 616/20)
    Sec. 20. Powers and duties of Commissioner. The Commissioner shall have the following powers and duties:
    (1) to promulgate reasonable rules in accordance with the Illinois Administrative Procedure Act for the administration of this Act;
    (2) to issue orders for the enforcement of this Act and any rule promulgated under this Act;
    (3) to appoint hearing officers to exercise any delegated powers;
    (4) to subpoena witnesses, compel their attendance, administer oaths, examine any person under oath, and require the production of any relevant books, papers, accounts, and documents in the course of and pursuant to any investigation conducted or action taken by the Commissioner; and
    (5) to conduct hearings.
(Source: P.A. 92‑811, eff. 8‑21‑02.)

    (205 ILCS 616/25)
    Sec. 25. Examination authority. The Commissioner or examiners appointed by the Commissioner have the authority to examine any network and any switch, including leased equipment and services furnished by a subcontractor or other party, as to any transaction by, with, or involving a financial institution that has established a terminal in this State. Information obtained in the course of an examination shall not be disclosed, except as provided by law.
(Source: P.A. 89‑310, eff. 1‑1‑96.)

    (205 ILCS 616/30)
    Sec. 30. Acceptance of deposits.
    (A) No terminal that accepts deposits of funds to an account may be established or owned in this State except by (a) a bank established under the laws of this or any other state or established under the laws of the United States that (1) is authorized by law to establish a branch in this State or (2) is permitted by rule of the Commissioner to establish deposit‑taking terminals in this State in order to maintain parity between national banks and banks established under the laws of this or any other state, (b) a savings and loan association or savings bank established under the laws of this or any other state or established under the laws of the United States, (c) a credit union established under the laws of this or any other state or established under the laws of the United States, or (d) a licensee under the Consumer Installment Loan Act or the Sales Finance Agency Act.
    (B) A person other than a financial institution or an affiliate of a financial institution may establish or own, in whole or in part, a cash‑dispensing terminal at which an interchange transaction may be performed, provided that the terminal does not accept deposits of funds to an account, and provided that the person establishing or owning the terminal shall file a notice of establishment or ownership of a terminal with the Commissioner, in the form prescribed by the Commissioner, within 60 days after the later of (a) the effective day of this amendatory Act of 1997 or (b) the establishment of or acquisition of an ownership interest in the terminal. Persons who own a terminal pursuant to this subsection (B) shall thereafter file with the Commissioner a full and accurate statement of information of ownership, in the form prescribed by the Commissioner, once per calendar year. A person who has established or owns a terminal pursuant to this subsection (B) shall not be required to file subsequent notices of establishment or ownership of a terminal when establishing or acquiring an ownership interest in additional terminals provided the person includes the information required by the Commissioner for those terminals in the person's annual filing pursuant to this subsection (B). The Commissioner or examiners appointed by the Commissioner shall have the authority to examine any person that has established or owns a terminal in this State pursuant to this subsection (B) if the Commissioner has received multiple complaints regarding one or more terminals owned by the person, and in the event of such an examination, the person shall pay the reasonable costs and expenses of the examination as determined by the Commissioner. The Commissioner may impose civil penalties of up to $1,000 against any person subject to this subsection (B) for the first failure to comply with this Act and up to $10,000 for the second and each subsequent failure to comply with this Act. All moneys received by the Commissioner under this subsection (B) shall be paid into, and all expenses incurred by the Commissioner under this subsection (B) shall be paid from, the Bank and Trust Company Fund.
    (C) A network operating in this State shall maintain a directory of the locations of cash‑dispensing terminals at which an interchange transaction may be performed that are established or owned in this State by its members and shall file the directory with the Commissioner within 60 days after the effective date of this amendatory Act of 1997 and thereafter once per calendar year.
(Source: P.A. 89‑310, eff. 1‑1‑96; 90‑189, eff. 1‑1‑98.)

    (205 ILCS 616/35)
    Sec. 35. Limit on switch connections. No main office or branch of a financial institution shall at the same time be directly connected to more than one switch; provided, however, that (a) no financial institution shall be deemed to be directly connected to a switch that is, or is owned directly or indirectly by, that financial institution, and (b) nothing in this Act shall preclude (1) a terminal that does not accept deposits from being connected to more than one switch, (2) a network from utilizing more than one switch, or (3) a network from utilizing a single switch.
(Source: P.A. 89‑310, eff. 1‑1‑96.)

    (205 ILCS 616/40)
    Sec. 40. Transmission through a network. All electronic fund transfers that (i) are interchange transactions and (ii) are initiated at a terminal in connection with payment for goods and services shall be transmitted to a financial institution through a network.
(Source: P.A. 89‑310, eff. 1‑1‑96.)

    (205 ILCS 616/45)
    Sec. 45. Nondiscriminatory access.
    (a) Subject to the provisions of Section 35 of this Act, use of a terminal through access to a switch and use of any switch shall be available on a nondiscriminatory basis to any switch or financial institution that has its principal place of business within this State. The terms and conditions of use shall be governed by a written agreement between the network and the financial institution or other switch obtaining the use. The written agreement shall specify all of the terms and conditions under which the network may be utilized, including commercially reasonable fees and charges.
    (b) The use and operation of each terminal served by a switch shall be governed by a written agreement between the network and the person establishing the terminal. The written agreement shall specify all the terms and conditions under which the network provides service to the terminal, including commercially reasonable fees and charges.
    (c) (Blank).
(Source: P.A. 92‑811, eff. 8‑21‑02.)

    (205 ILCS 616/50)
    Sec. 50. Terminal requirements.
    (a) To assure maximum safety and security against malfunction, fraud, theft, and other accidents or abuses and to assure that all access devices will have the capability of activating all terminals established in this State, no terminal shall accept an access device that does not conform to specifications that are generally accepted. In the case of a dispute concerning the specifications, the Commissioner, in accordance with the provisions of Section 20 of this Act, shall have the authority to determine the specifications.
    (b) No terminal that does not accept an access device that conforms with those specifications shall be established or operated.
    (c) A terminal shall bear a logotype or other identification symbol designed to advise customers which access devices may activate the terminal.
    (d) When used to perform an interchange transaction, a terminal shall not bear any form of proprietary advertising of products and services not offered at the terminal; provided, however, that a terminal screen may bear proprietary advertising of products or services offered by a financial institution when a person uses an access device issued by that financial institution.
    (e) No person operating a terminal in this State shall impose any surcharge on a consumer for the usage of that terminal, whether or not the consumer is using an access device issued by that person, unless that surcharge is clearly disclosed to the consumer both (i) by a sign that is clearly visible to the consumer on or at the terminal being used and (ii) electronically on the terminal screen. Following presentation of the electronic disclosure on the terminal screen, the consumer shall be provided an opportunity to cancel that transaction without incurring any surcharge or other obligation. If a surcharge is imposed on a consumer using an access device not issued by the person operating the terminal, that person shall disclose on the sign and on the terminal screen that the surcharge is in addition to any fee that may be assessed by the consumer's own institution. As used in this subsection, "surcharge" means any charge imposed by the person operating the terminal solely for the use of the terminal.
    (f) A receipt given at a terminal to a person who initiates an electronic fund transfer shall include a number or code that identifies the consumer initiating the transfer, the consumer's account or accounts, or the access device used to initiate the transfer. If the number or code shown on the receipt is a number that identifies the access device, the number must be truncated as printed on the receipt so that fewer than all of the digits of the number or code are printed on the receipt. The Commissioner may, however, modify or waive the requirements imposed by this subsection (f) if the Commissioner determines that the modifications or waivers are necessary to alleviate any undue compliance burden.
    (g) No terminal shall operate in this State unless, with respect to each interchange transaction initiated at the terminal, the access code entered by the consumer to authorize the transaction is encrypted by the device into which the access code is manually entered by the consumer and is transmitted from the terminal only in encrypted form. Any terminal that cannot meet the foregoing encryption requirements shall immediately cease forwarding information with respect to any interchange transaction or attempted interchange transaction.
    (h) No person that directly or indirectly provides data processing support to any terminal in this State shall authorize or forward for authorization any interchange transaction unless the access code intended to authorize the interchange transaction is encrypted when received by that person and is encrypted when forwarded to any other person.
    (i) A terminal operated in this State may be designed and programmed so that when a consumer enters his or her personal identification number in reverse order, the terminal automatically sends an alarm to the local law enforcement agency having jurisdiction over the terminal location. The Commissioner shall promulgate rules necessary for the implementation of this subsection (i). The provisions of this subsection (i) shall not be construed to require an owner or operator of a terminal to design and program the terminal to accept a personal identification number in reverse order.
    (j) A person operating a terminal in this State may not impose a fee upon a consumer for usage of the terminal if the consumer is using a Link Card or other access device issued by a government agency for use in obtaining financial aid under the Illinois Public Aid Code.
    For the purpose of this subsection (j), the term "person operating a terminal" means the person who has control over and is responsible for a terminal. The term "person operating a terminal" does not mean the person who owns or controls the property or building in which a terminal is located, unless he or she also has control over and is responsible for the terminal.
(Source: P.A. 93‑136, eff. 1‑1‑04; 93‑273, eff. 1‑1‑04; 93‑583, eff. 1‑1‑04; 93‑898, eff. 8‑10‑04.)

    (205 ILCS 616/55)
    Sec. 55. Applicability of federal law.
    (a) The provisions of the federal Electronic Fund Transfer Act (15 U.S.C. 1693a et seq.), amendments to that Act, and any regulations issued or that may be issued under that Act, except for those provisions, amendments, or regulations that establish crimes or provide for nonfinancial penalties, are hereby adopted as part of this Act. Compliance with federal law shall be deemed to be compliance with this Section.
    (b) A consumer may authorize an electronic fund transfer by arranging for a debit to the consumer's account and specifying the designated payee. In that case, the financial institution shall execute the transfer by the end of the next business day after entry of the debit. For purposes of this subsection, "consumer" means a natural person.
(Source: P.A. 89‑310, eff. 1‑1‑96.)

    (205 ILCS 616/60)
    Sec. 60. Judicial review. All final administrative decisions of the Commissioner under this Act shall be subject to judicial review pursuant to the provisions of the Administrative Review Law and the rules adopted pursuant to that Law. For matters involving administrative review, venue shall be in either Sangamon County or Cook County.
(Source: P.A. 89‑310, eff. 1‑1‑96.)

    (205 ILCS 616/65)
    Sec. 65. Inseverability and severability. If any provision of this Act or its application to any person or circumstance is held invalid, this Act shall be invalid in its entirety, provided, however, that if any provision of this Act or its application is held invalid under the Home Owners Loan Act of 1933, as amended, the Federal Home Loan Bank Act, as amended, or the Federal Credit Union Act, as amended, the invalidity of that provision or application does not affect other provisions or applications that can be given effect without the invalid provision or application.
(Source: P.A. 89‑310, eff. 1‑1‑96.)

    (205 ILCS 616/70)
    Sec. 70. Illinois Electronic Fund Transfer Advisory Committee.
    (a) The Illinois Electronic Fund Transfer Advisory Committee shall consist of the Commissioner, who shall be its Chairman, and 10 additional members who shall be appointed by the Governor with the advice and consent of the Senate and whose respective qualifications shall be as follows: (i) one member shall be from a State bank, (ii) one member shall be from a national bank, (iii) one member shall be from a State savings and loan association or savings bank, (iv) one member shall be from a federal savings and loan association or savings bank, (v) one member shall be from a State credit union, (vi) one member shall be from a federal credit union, (vii) 2 members shall be sellers of goods and services, (viii) 2 members shall be from networks or companies that provide network‑related data processing services who are executive officers within the electronic fund transfer field of their respective businesses, and all of whom shall have had no less than 2 years experience in the field of commercial electronic fund transfer activity. The members of the Committee created under the Electronic Fund Transfer Transmission Facility Act who hold office on the effective date of this Act shall be the members of the Committee under this Act and shall continue to hold office for the term for which they were appointed.
    (b) The terms of office of the members of the Committee shall be as follows:
        (i) The term of office of each member shall be 4
     years, except that an appointment to fill a vacancy shall be for the unexpired term of the member whose vacancy is being filled.
        (ii) No member shall serve more than 2 full 4‑year
     terms of office.
        (iii) The term of office of any member of the
     Illinois Electronic Fund Transfer Advisory Committee shall terminate automatically when the member no longer meets the qualifications for that member's appointment to the Committee.
    (c) The Electronic Fund Transfer Committee shall meet at least once in each calendar year. Special meetings may be called by the Commissioner or upon the request of any 4 members of the Committee. Each member shall serve without compensation, but shall be reimbursed for any ordinary and necessary expenses incurred in attending meetings of the Committee.
    (d) The Committee shall have the following powers:
        (i) to make recommendations to the Commissioner
     concerning matters which he may refer to the Committee for consideration;
        (ii) to make recommendations on its own initiative
     concerning electronic fund transfer administration, examination and supervision policies and practices to the Commissioner, the Governor or the General Assembly;
        (iii) to make recommendations to the Commissioner
     for the purpose of preventing and minimizing unsafe and unsound practices in the field of electronic fund transfer; and
        (iv) to foster and encourage the interest and
     cooperation of members involved in the delivery of electronic fund transfer services to the public and in the improvement of electronic fund transfer services.
(Source: P.A. 89‑310, eff. 1‑1‑96; 90‑301, eff. 8‑1‑97.)

    (205 ILCS 616/75)
    Sec. 75. Illinois Electronic Data Processing Advisory Committee.
    (a) The Illinois Electronic Data Processing Advisory Committee shall consist of the Commissioner, who shall be its Chairman, and 8 additional members. The 8 additional members shall be appointed by the Governor with the advice and consent of the Senate. The members of the Committee created under the Electronic Fund Transfer Transmission Facility Act who hold office on the effective date of this Act shall be the members of the Committee under this Act and shall continue to hold office for the term for which they were appointed. The members shall be divided into 2 separate groups and shall have the following qualifications:
        (i) Group 1 shall consist of 4 members who are
     executive officers of State bank data processing service bureaus and who shall have had no less than 2 years experience in the field of electronic data processing.
        (ii) Group 2 shall consist of 4 members who are
     executive officers of independent data processing service bureaus located in the State of Illinois and who shall have no less than 2 years experience in the field of electronic data processing.
    (b) The terms of office of all Group 1 and Group 2 members of the Committee shall be as follows:
        (i) The term of office of each Group 1 member shall
     be 4 years, except that an appointment to fill a vacancy shall be for the unexpired term of the member whose vacancy is being filled.
        (ii) The term of office of each Group 2 member shall
     be 4 years, except that an appointment to fill a vacancy shall be for the unexpired term of the member whose vacancy is being filled.
        (iii) No Group 1 or Group 2 member shall serve more
     than 2 full 4‑year terms of office.
        (iv) The term of office of any member of the
     Illinois Electronic Data Processing Advisory Committee shall terminate automatically when the member no longer meets the qualifications for that member's appointment to the Committee.
    (c) The Electronic Data Processing Advisory Committee shall meet at least once in each calendar year. Special meetings may be called by the Commissioner or upon the request of any 3 members of the Committee. Each member shall serve without compensation, but shall be reimbursed for any ordinary and necessary expenses incurred in attending meetings of the Committee.
    (d) The Committee shall have the following powers:
        (i) to make recommendations to the Commissioner
     concerning matters which he may refer to the Committee for consideration;
        (ii) to make recommendations on its own initiative
     concerning electronic data processing administration, examination and supervision policies and practices to the Commissioner, the Governor or the General Assembly;
        (iii) to make recommendations to the Commissioner
     for the purpose of preventing and minimizing unsafe and unsound practices in the field of electronic data processing; and
        (iv) to foster and encourage the interest and
     cooperation of members involved in the delivery of electronic data processing services to the public and in the improvement of electronic data processing services.
(Source: P.A. 89‑310, eff. 1‑1‑96; 90‑301, eff. 8‑1‑97.)

    

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