Topic: Requests for Financial Information
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We get several different kinds of subpoenas. Some are grand jury subpoenas, some are for divorces. For which types of subpoenas must we contact the person first? Do we have to respond to out-of-state subpoenas?
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When responding to a subpoena in Illinois, both federal and Illinois laws could apply. Below is a summary of the major provisions that might apply to a subpoena. However, please note that we cannot provide legal advice, and any questions about a specific subpoena will likely have to be answered by bank counsel. Illinois law:…
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We received a subpoena for loan documents from five years ago. What are the record retention requirements that apply? Do we still have to provide the documents if the retention period has already passed?
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Whether or not a regulatory record retention requirement applies to documents that are subject to a subpoena request would not be relevant. While we cannot comment on the exact requirements of the subpoena that your bank received, it is likely that the subpoena requires the bank to produce any relevant documents that it does possess,…
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Are we required to comply with an administrative subpoena from an out of state agency that asks for supporting documentation on SARs and CTRs?
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While we cannot offer any specific advice as to the subpoena that the bank received, we can provide general guidance: Information regarding the filing of a suspicious activity report (SAR) — or the fact that a SAR was or was not filed — should not be disclosed by a bank or any officer, employee or…
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When a judgment creditor files with the bank a citation of garnishment for a bank account, what fees do Illinois banks typically charge?
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The Illinois Banking Act’s privacy provisions allow banks to collect any costs that it incurs in responding to a court order (such as a garnishment order): (g) A bank shall be reimbursed for costs that are reasonably necessary and that have been directly incurred in searching for, reproducing, or transporting books, papers, records, or other…
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How should we respond to a Citation to Discover Assets that names an account that is not owned by the judgment debtor (but is owned by the judgment debtor’s children)?
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We believe that it would be a best practice to contact the attorney for the judgment creditor to advise the party that the accounts listed in the citation to discover assets do not appear to be the property of the judgment debtor. You may need to seek further determination from the court that the children's…
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If we receive a subpoena for trust documents, can we provide the requested information without violating any laws?
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In responding to a subpoena, customer privacy is generally not an issue because both federal and Illinois privacy laws allow banks to disclose customer financial records in response to a subpoena. 205 ILCS 5/48.1
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What is the Illinois law regarding issues with garnishments?
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In general, garnishments in Illinois are governed by the Illinois Code of Civil Procedure. Part 7 of Article XII sets out the rules for garnishments, both wage and nonwage. Citations to discover assets are common in collection actions, and those are governed by Section 2-1402 of the Code (Supplementary proceedings). The Chicago Bar Association has…
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If we receive a writ of garnishment asking us to report all of a customer’s property, should we list the land trusts for which the customer is beneficiary and trustee?
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In our view, your response to the writ of garnishment should identify the trust’s deposit account, as well as the bank’s loans to the trust, for the reasons described below. The trustee of a land trust holds both legal and equitable title to the property in the trust, and the beneficiary has a personal property…
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In Illinois law, are non-wage garnishments continuous, or should we freeze just the amount in the account at the time we receive the notice?
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Once you receive an Illinois nonwage garnishment notice, you are to freeze the amount held in the account at the time of service (with an exception for federal benefit payments, which federal regulations exempt from garnishment (see 31 CFR 212.6)). 735 ILCS 5/12-707(a). You do not have to freeze funds deposited into the account after…
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When responding to a garnishment order, should we send the response to the court clerk or directly to the garnishing creditor?
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In Illinois, the answer to a non-wage garnishment summons is sent to the clerk of court (735 ILCS 5/12-707(b)). Once the property is subject to a turnover order, the court can compel its delivery directly to the judgment creditor (735 ILCS 5/2-1402).