(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.)

(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.)

(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

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;

(2) originating from a financial institution and

made on behalf of a new or existing consumer‑deposit account held at the financial institution; or

(3) any order for checks to be drawn on an existing

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).

(Source: P.A. 90‑184, eff. 7‑23‑97; 90‑575, eff. 3‑20‑98.)

(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.)

(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.)

(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.)

(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.)

(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.)

(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.)

(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.)

(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.)

(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.)

(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.)

(205 ILCS 690/49)

Sec. 49.

This Act takes effect upon becoming law.

(Source: P.A. 87‑1143.)

(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 and operated in this State under the laws of the United States; 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. 90‑184, eff. 7‑23‑97.)