Topic: Pandemic Preparedness and Response
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If we receive a citation or garnishment directed to two judgment debtors holding a joint account, is each debtor entitled to the $4K exemption under the Illinois Supreme Court’s COVID-19 order on post-judgment proceedings served after March 8, 2020? For example, let’s say there is a citation against a husband and wife who have a joint account with a balance of $10K. Are we required to release $8K of that balance (providing a $4K exemption for each debtor)? Similarly, let’s say there is a citation against a husband and wife who have a joint account with a balance of $6K. Are we required to release the $6K ($3K exemption for each debtor)? And would the same principles apply to an account held by unmarried joint owners?
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We believe the Illinois Supreme Court’s order requires garnishees and citation respondents to release $4,000 of property back to each judgment debtor, up to a total of $8,000. In your first hypothetical, the order would require the financial institution to release $8,000 back to the debtors, and in your second hypothetical, the order would require…
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Under the Illinois Supreme Court’s COVID-19 order on post-judgment proceedings served after March 8, 2020, if a financial institution releases a debtor’s funds totaling less than $4,000, is the financial institution expected to continue freezing funds that come in after the release? For example, say we receive a citation to discover assets for a judgment of $10,000 on a consumer account containing $3,000. If we release the $3,000, are we expected to place a hold back on the account for purposes of subsequent deposits? If so, would the debtor be entitled to claim an exemption for subsequent deposits up to the remaining $1,000 of the Supreme Court order’s $4,000 threshold?
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Yes, under the Illinois Supreme Court’s order, we believe depository institutions should release from a hold up to a total of $4,000 in funds deposited into a consumer account. In your hypothetical, an additional $1,000 (the remainder of the order’s $4,000 exemption amount) should be released back to the debtor. Once a total of $4,000…
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Our internal policy on the use of face coverings provides that staff may opt to wear a non-surgical mask when having face-to-face communications with customers, provided they supply their own mask. Could there be any liability issues if our bank provides masks for employees rather than requiring them provide their own?
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Regardless of liability issues, we believe that banks are required to provide face coverings to all employees who are unable to maintain six feet of social distancing. The modified stay-at-home Executive Order entered on April 30, 2020, provides that effective May 1, 2020: “Any individual who is over age two and able to medically tolerate…
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What is the “attached guidance from the Illinois Department of Public Health (IDPH) regarding workplace safety during the COVID-19 emergency” referenced in the draft modified stay-at-home order that we are required to post beginning May 1?
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A link to the IDPH’s Workplace Health and Safety Guidance for Employees and Staff of Businesses is included in our resources below. According to the modified stay-at-home executive order entered on April 30, 2020, and effective May 1, 2020, “[a]ll businesses that have employees physically reporting to a work-site must post the guidance from the…
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Are voluntary vehicle repossessions prohibited under the Illinois Governor’s Executive Order 2020-16? Also, are we allowed to sell vehicles that already have been repossessed?
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Please note that as of August 23, 2020, the portion of Executive Order 2020-16 referenced in our answer below has been rescinded by Executive Order 2020-48 (“Executive Order 2020-16 is re-issued in its entirety and extended through August 22, 2020, whereafter Section 1 shall be rescinded”). We do not believe that voluntary surrenders of vehicles…
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Regarding the next stay-at-home order referenced in the Governor’s April 23 press release, will banks be grouped with public indoor spaces such as stores? Do you know when the “new requirements” will be released, or have they already been released?
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Yes, we believe that banks are “public indoor spaces” in which individuals are required to wear face coverings. Additionally, we believe the “new requirements” referenced in the Governor’s April 23, 2020, press release regarding the modified stay-at-home Executive Order include requirements referenced in the modified Executive Order and the new Guidance issued by the Illinois…
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Our lobbies are closed, and we are only operating our drive through windows. We are able to maintain six feet of social distancing at our teller stations; however, the tellers are not consistently six feet apart when they pull tubes from the drive through. Are the tellers required to wear masks due to the inability to remain six feet apart at all times?
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Yes, we believe your tellers are required to wear face coverings or masks if they are unable to maintain six feet of social distancing. The modified stay-at-home Executive Order entered on April 30, 2020, provides that effective May 1, 2020, “[a]ny individual who is over age two and able to medically tolerate a face-covering (a…
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We have a customer that operates a video gaming establishment. Is it eligible for a Paycheck Protection Program (PPP) loan if its revenue is derived from gaming?
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Yes, a recent SBA interim final rule provides that a business that receives legal gaming revenue is eligible for a PPP loan if all other PPP eligibility criteria are met. The recent SBA interim final rule states that “[a] business that is otherwise eligible for a PPP Loan is not rendered ineligible due to its…
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Are banks authorized to make Paycheck Protection Program (PPP) loans to their own employees or their employees’ close relatives?
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Banks are prohibited from making PPP loans to their officers and “key employees,” and we believe this prohibition extends to officers’ and key employees’ close relatives. The SBA regulations generally provide that neither a lender nor its associates can own an equity interest in a business that has received or is applying for an SBA…
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Are banks eligible to receive Paycheck Protection Program (PPP) loans?
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No, the SBA regulations provide that “[f]inancial businesses primarily engaged in the business of lending, such as banks” are ineligible for SBA business loans, which includes PPP loans. The SBA Standard Operating Procedures also provide that the “SBA cannot guarantee a loan that provides funds to businesses primarily engaged in lending . . . [which]…