We are an Illinois state-chartered bank and have been asked if we can provide services to customers who are residents of a nursing home. The Illinois Banking Act indicates that we can provide such services on a “limited basis.” Is this a limitation on the type of services we can provide or how often we can provide the services? Are there any other restrictions that we need to consider if we were to handle deposit accounts and check cashing at a nursing home or elder care facility?

Section 44.1 of the Illinois Banking Act permits state-chartered banks to “conduct a banking business at the location” of a nursing home or retirement home without that location being deemed a branch. In our view, the primary significance of this decades-old language is that it clarified that banks could provide such services without running up against branching restrictions that were repealed in the last century.

We are not aware of any other restrictions on providing your ordinary banking services to nursing home residents. We do note that the Illinois Consumer Deposit Account Act requires your bank to provide a Basic Checking Account to seniors (persons over the age of 65), subject to certain fee restrictions, if your bank is not already doing so.

For resources related to our guidance, please see:

Illinois Banking Act, 205 ILCS 5/44.1 (“Services at care facilities. Subject to reasonable regulations the Commissioner may prescribe for the protection of depositors, a bank may take any action necessary for the provision of banking services to persons residing in any bona fide nursing home, senior citizens’ retirement home, or long term care facility and may conduct a banking business at the location on a limited basis. However, no location served by a bank on a limited basis pursuant to this Section shall be deemed a branch for purposes of Section 5 of this Act.”)

IDFPR Interpretive Letter 98-08 (August 25, 1998) (“The offering of banking services pursuant to Section 44.1 does not constitute the establishment of a branch by the state bank, and so the state bank is not required to file a branch notice with the Agency.”)

IDFPR Interpretive Letter 94-04 (March 23, 1994) (“According to Section 44.1, a state bank will not be deemed to have established a branch at such a location if the bank provides its services on a limited basis. You stated in your letter that Bank would send a representative once a week to ‘assist with banking and help with other questions regarding finances.’ Assisting residents of the senior citizens center and nursing home with banking appears to qualify as the type of service contemplated by Section 44.1. This service also would be provided on a ‘limited basis’ since Bank would not be establishing a permanent presence at the senior citizens center and nursing home.”)

IDFPR Interpretive Letter 92-03 (April 24, 1992) (“In your letter, you also inquired as to what steps the Bank would have to take in order to conduct banking services at a local retirement home. Because the facilities are not deemed to be ‘branches,’ the Bank would not have to file any Notice of Intent to Establish a Branch.”)

Consumer Deposit Account Act, 205 ILCS 605/4(a) (“Every financial institution shall offer a Basic Checking Account to any natural person 65 years of age or older who requests such an account.”)

Consumer Deposit Account Act, 205 ILCS 605/4(b) (“A Basic Checking Account shall be established by either (1) a minimum initial deposit of $100, or (2) a written agreement with the account holder requiring direct deposits with the financial institution by a third party of recurring payments due to the account holder on at least a monthly basis. Except as provided in subsection (d) of this Section, no other minimum balance or minimum deposit requirement may be imposed on a Basic Checking Account.”)

Consumer Deposit Account Act, 205 ILCS 605/4(c) (“No activity charge may be imposed for the first 10 checks drawn on a Basic Checking Account in any calendar month . . . .”)