IBA Compliance Connection

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Does Illinois place any limits on the number of authorized signers that can be added to individually-held accounts? We are aware that some states have “convenience account” statutes that limit the number of convenience depositors or authorized signers that may be designated for an account. Before converting to our current core processor, our system allowed for only one authorized signer or convenience depositor to be named on an individually held account. Our new core processor does not have the same restriction. Must we continue to restrict the number of authorized signers on an individually held account, or can this restriction be lifted?

Oct 1, 2019

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We are not aware of any Illinois laws that restrict the number of authorized signers that may be added to an individually-held account. Consequently, we believe your bank may choose the total number of authorized signers that you allow account holders to designate.

Also, we note that an Illinois law permitting the use of convenience accounts, the Banking Convenience Account for Depositors Act, has been repealed. This law permitted depository institutions to provide “convenience accounts” to customers in which a “convenience depositor” could be designated to make deposits to and withdraw funds from the account for the customer, but it was subject to an automatic sunset on January 1, 2015.

For resources related to our guidance, please see:

Banking Convenience Account for Depositors Act, 205 ILCS 720/1, et seq. (Repealed January 1, 2015)