2005 Illinois Code - Chapter 205 Financial Regulation 205 ILCS 690/ Check Printer and Check Number Act.
(205 ILCS 690/1)
Sec. 1.
Short title.
This Act may be cited as the Check Printer and Check Number Act.
(Source: P.A. 90‑184, eff. 7‑23‑97.)
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(205 ILCS 690/5)
Sec. 5. Definitions. For the purposes of this Act:
"Commissioner" means the Commissioner of Banks and Real Estate.
"Consumer‑deposit account" means a demand or other similar deposit
account such as a checking, negotiable order of withdrawal, money
market, savings deposit, share, or member account established and maintained by
a natural person with a financial institution and operated primarily for
personal, family, or household purposes.
"Financial institution" means (i) any bank subject to the Illinois
Banking
Act, any savings bank subject to the Savings Bank Act, any savings and
loan association subject to the Illinois Savings and Loan Act of 1985, or any
credit union subject to the Illinois Credit Union Act; (ii) any
federally chartered commercial bank, savings bank, savings and loan
association, or credit union organized under the
laws of the United
States and operating in this State; and (iii) any business corporation, limited liability company,
business trust, partnership, joint venture, or other entity that is directly or
indirectly at least 50% owned by or commonly owned with a financial
institution.
"Check" means a writing that complies with the requirements of Section
3‑104 of the Uniform Commercial Code.
"Person" means any natural person or his legal representative,
partnership, corporation, company, trust, business entity, or association.
(Source: P.A. 94‑780, eff. 5‑19‑06.)
(205 ILCS 690/10)
Sec. 10.
Identification and numbering of consumer ‑ deposit account.
Any person who sells or distributes checks, drafts, or similar orders
of withdrawal, which may be drawn against funds held by financial
institutions in a consumer‑deposit account opened subsequent to January 1,
1993, shall cause the month and year in which the account was opened to be
displayed clearly on the face of each check, draft, or order. For all
consumer‑deposit accounts opened after January 1, 1993, all new checks,
drafts, or orders designed to be drawn on financial institution accounts shall
clearly display on the face of each check, draft, or order a number, commencing
with number 101, with each check, draft, or similar order thereafter provided
to be numbered consecutively; except that when a consumer‑deposit account at
any financial institution in Illinois has been voluntarily closed by the
customer, the number displayed on the checks, drafts, or orders for a new
consumer‑deposit account opened within 30 days thereafter, titled in the same
manner as, and with same owners as the closed account may commence with a
number that is not greater than the next consecutive number higher than the
highest consecutive number displayed on a check, draft, or order processed
through the closed account. This Section shall not apply to temporary checks,
drafts, or orders of withdrawal provided by financial institutions upon the
opening of a consumer deposit account.
No liability or penalty shall be imposed on any financial institution or
person for an unintentional failure to comply with this Act.
(Source: P.A. 87‑1143.)
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(205 ILCS 690/15)
Sec. 15.
Verification of check purchasers.
(a) A person, other than a
financial institution, who sells or distributes checks that may be drawn
against funds held by financial institutions in a consumer‑deposit account
shall before delivery of the checks to the person ordering them, verify the
accuracy of that person's name, street address, city, state, and
account number. If the information is not first verified, the seller or distributor
shall not sell or distribute the ordered checks.
Acceptable forms of documentation under this subsection may include a copy of
the account agreement with the financial institution, a recent account
statement issued
by the financial institution, a letter or verbal response from the financial
institution verifying the account information, or a copy of the Magnetic Ink
Character Recognition specification sheet from the financial institution. The
Commissioner may, by rule, allow for additional or other forms of
verification.
The sale or distribution of
checks to any person as to whom verification, as provided for herein, has not
first been made shall constitute a business offense for which the fine shall
be $1,000 for each offense.
(b) This Section shall not apply to any check orders:
(1) drawn on an existing consumer‑deposit account |
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for which a check order has been previously fulfilled by the person selling or distributing checks and for which there are no changes to the original account holder's name, street address, city, state, or account number;
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(2) originating from a financial institution and
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made on behalf of a new or existing consumer‑deposit account held at the financial institution; or
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(3) any order for checks to be drawn on an existing
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consumer‑deposit account for which the only changes involve (i) a change of zip code with no change to the street address, city, or state or (ii) street address or state convenience changes to or from an abbreviated word (e.g. St. to Street, Apt. to Apartment, IL. to Illinois).
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(Source: P.A. 90‑184, eff. 7‑23‑97; 90‑575, eff. 3‑20‑98.)
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(205 ILCS 690/17)
Sec. 17.
Exemptions.
Nothing in this Act shall be construed to apply to a
personal computer user who generates checks for personal use or
who distributes checks to immediate family members at no charge.
(Source: P.A. 90‑575, eff. 3‑20‑98.)
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(205 ILCS 690/20)
Sec. 20.
Registration.
A person, other than a financial institution, who
sells or distributes checks that may be drawn against funds held by financial
institutions in a consumer‑deposit account shall register with the Commissioner
within 30 days after the effective date of this amendatory Act of 1997 or
within 30 days after commencement of doing business in this State, whichever is
later, and annually thereafter. The person shall register on such forms as may
be prescribed by the Commissioner, which shall include such information as the
Commissioner may deem necessary or appropriate to carry out the purposes of
this Act.
(Source: P.A. 90‑184, eff. 7‑23‑97.)
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(205 ILCS 690/21)
Sec. 21.
Fees.
All moneys received by the Commissioner under this Act shall
be paid into, and all expenses incurred by the Commissioner under this Act
shall
be paid from, the Bank and Trust Company Fund. The Commissioner may prescribe
and assess reasonable fees to be paid by registrants to recover the costs
of administering this Act.
(Source: P.A. 90‑184, eff. 7‑23‑97.)
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(205 ILCS 690/25)
Sec. 25.
Bond; conditions; amount.
A registrant shall maintain at all times a surety bond procured by the
registrant and issued by a bonding company authorized to do business in this
State in a principal sum of no less than $10,000. The bond shall be for any
liability incurred by the registrant resulting from a judgment entered for any
violation of this Act, including damages awarded in actions brought pursuant
to Section 35. At the time of each registration, the registrant shall file
with the Commissioner proof of such surety bond.
(Source: P.A. 90‑184, eff. 7‑23‑97; 90‑575, eff. 3‑20‑98.)
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(205 ILCS 690/30)
Sec. 30.
Civil action.
(a) When the Commissioner believes a person has
violated, is violating, or will violate this Act or a rule prescribed under
this Act, the Commissioner may request the Attorney General to bring a civil
action in circuit court to enjoin the violation or enforce compliance with this
Act or a rule prescribed under this Act. A person not complying with an
injunction issued under this Section is liable to the State of Illinois in a
civil suit for an amount of not more than $10,000.
(b) If the Commissioner finds that any person has violated Sections 10,
20, 21, or 25 of this Act, or any rules adopted by the Commissioner under
this Act, the Commissioner may, in addition to seeking an injunction as
provided in subsection (a) of this Section, impose a civil monetary penalty
in an amount of not more than $10,000 for each violation.
(Source: P.A. 90‑184, eff. 7‑23‑97; 90‑575, eff. 3‑20‑98; 90‑655, eff.
7‑30‑98.)
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(205 ILCS 690/35)
Sec. 35.
Recovery of damages.
A person who is damaged by reason of the
registrant's failure to verify as required under this Act may sue such person
for damages including, at a minimum, liquidated damages in the amount of
$1,000, plus all costs and expenses, including reasonable attorneys' fees,
incurred in the prosecution of the action.
(Source: P.A. 90‑184, eff. 7‑23‑97.)
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(205 ILCS 690/36)
Sec. 36.
Criminal penalties.
A person who willfully and knowingly
subscribes to or makes, or causes to be made, any false statement on the
registration form with intent to deceive the Commissioner or his administrative
officers shall, upon conviction thereof, be guilty of a Class 3 felony.
(Source: P.A. 90‑184, eff. 7‑23‑97.)
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(205 ILCS 690/37)
Sec. 37.
Record retention.
Records pertaining to or constituting the
procedures for and results of the verification required under this Act shall be
retained for a period of 18 months from the date of receipt of
the information.
(Source: P.A. 90‑184, eff. 7‑23‑97; 90‑575, eff. 3‑20‑98.)
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(205 ILCS 690/38)
Sec. 38.
Rules.
The Commissioner has the power to promulgate reasonable
rules for the purpose of administering the provisions of this Act.
(Source: P.A. 90‑184, eff. 7‑23‑97.)
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(205 ILCS 690/39)
Sec. 39.
Severability.
The provisions of this Act are severable under
Section 1.31 of the Statute on Statutes.
(Source: P.A. 90‑184, eff. 7‑23‑97.)
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(205 ILCS 690/49)
Sec. 49.
This Act takes effect upon becoming law.
(Source: P.A. 87‑1143.)
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