Illinois Administrative Code
Title 38 - FINANCIAL INSTITUTIONS
Part 650 - DIRECT DEPOSIT
Section 650.120 - Recipients

Universal Citation: 38 IL Admin Code ยง 650.120

Current through Register Vol. 48, No. 12, March 22, 2024

a) In order for a recipient to receive a recurring payment by means of direct deposit of the amounts of credit payments under this Part, at a financial institution of the recipient's choosing and to an account the title of which includes the recipient's name, the recipient shall execute the applicable portion of the Standard Authorization Form, present it to the financial institution which will receive the credit payments, for execution of the applicable portion, and deliver it to the paying State Agency. The recipient and the financial institution shall be responsible for any inaccuracy in the data entered by each of them, respectively, on such Standard Authorization Form.

b) In executing a Standard Authorization Form, a recipient:

1) designates the financial institution and the account on the books of such financial institution to which the amounts of the credit payments shall be credited;

2) is deemed to agree to the provisions of this Part;

3) authorizes the paying State Agency or the Comptroller to terminate any previously executed Standard Authorization Form or any other inconsistent payment instructions applicable to the relevant recurring payment; and

4) authorizes the paying State Agency and the Comptroller to deduct from a designated account or from subsequent recurring payments all credit payments deposited in error.

c) A recipient shall execute a separate Standard Authorization Form for each paying State Agency processing recurring payments hereunder. If a recipient wishes to direct a recurring payment to a different account or financial institution, the recipient shall execute a new Standard Authorization Form.

d) A recipient may at any time terminate a Standard Authorization Form by giving 45 day written notice to the paying State Agency. Cancellations initiated at the recipient's financial institution shall not take effect until 45 days after receipt by the paying State Agency.

e) The death or legal incapacity of a recipient shall terminate the Standard Authorization Form.

f) The Comptroller or the paying State Agency may terminate a recipient's participation in direct deposit by giving the recipient written notice of termination. Such termination may occur on account of involuntary withholding (such as offsets under Section 10.05 of the State Comptroller Act, Ill. Rev. Stat. 1981, ch. 15, par. 210.05 ) applied to such payments or where otherwise required to protect the interests of the State of Illinois.

g) A recipient may request only that a credit payment be in the full amount of the recurring payment and be credited to one account on the books of a financial institution. Except as authorized by law or other rules, the procedures set forth in these rules shall not be used for effectuating an assignment of a recurring payment.

h) A change in the title of an account on the books of a financial institution which removes the name of the recipient, shall terminate any Standard Authorization Form in which that account is designated, and shall require the execution of a new Standard Authorization Form before further credit payments may be credited to that account.

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