Ask Reggi Your Question Now
Can you summarize 205 ILCS 605?
FINANCIAL REGULATION > Consumer Deposit Account Act.
Short Summary
The Consumer Deposit Account Act, as defined in the Illinois Compiled Statutes, governs the establishment and maintenance of consumer-deposit accounts by natural persons with a financial institution. A consumer-deposit account refers to a demand or other similar deposit account operated primarily for personal, family, or household purposes. The Act defines a financial institution as any bank subject to the Illinois Banking Act, including out-of-state banks, savings banks subject to the Savings Bank Act, savings and loan associations subject to the Illinois Savings and Loan Act of 1985, and federally chartered commercial banks, savings banks, or savings and loan associations operated in Illinois under the laws of the United States. Additionally, the Act defines a check as a writing that complies with the requirements of Section 3-104 of the Uniform Commercial Code. The Act requires that for all consumer-deposit accounts opened after January 1, 1982, all new checks, drafts, or orders drawn on financial institution accounts shall clearly display on the face of each check, draft, or order a number. Each check, draft, or similar order shall be numbered consecutively. However, this requirement does not apply to temporary checks, drafts, or orders of withdrawal provided by financial institutions upon the opening of a consumer deposit account. The Act also governs the disclosure requirements for consumer-deposit accounts offered by financial institutions in Illinois. Financial institutions are required to provide a disclosure statement for each consumer-deposit account, including a description of the account, any conditions, the terms of interest, and all associated fees. The disclosure statement must be provided to depositors at the time of the initial deposit and at least once per calendar year to account holders. Financial institutions must also provide the disclosure statement to any person upon request. The statements must be accompanied by a brief description of other available consumer-deposit accounts and a statement that more detailed information is available upon request. Financial institutions that comply with the provisions of Sections 261 through 274 of the Truth in Savings Act are deemed to be in compliance with this Act. Additionally, the Act requires financial institutions to offer a Basic Checking Account to any natural person 65 years of age or older upon request. The account can be established either by a minimum initial deposit of $100 or by a written agreement requiring direct deposits of recurring payments. Financial institutions cannot impose any other minimum balance or deposit requirement on a Basic Checking Account, except as provided in subsection (d) of this Section. No activity charge may be imposed for the first 10 checks drawn on the account in any calendar month, except for customary fees for stop payment orders or returned checks due to insufficient funds. Financial institutions are also allowed to offer more favorable terms to persons 65 years of age or older and designate such accounts as Basic Checking Accounts.
Whom does it apply to?
The Act applies to natural persons who open and maintain consumer-deposit accounts with financial institutions in Illinois.
What does it govern?
The Consumer Deposit Account Act governs the establishment and maintenance of consumer-deposit accounts by natural persons with a financial institution.
What are exemptions?
The Act does not specify any exemptions.
What are the Penalties?
The Act does not specify any penalties for non-compliance or violation of its provisions.
Jurisdiction
Illinois