Illinois 2023-2024 Regular Session

Illinois Senate Bill SB3726 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3726 Introduced 2/9/2024, by Sen. Mary Edly-Allen SYNOPSIS AS INTRODUCED: See Index Amends the Illinois Banking Act. Makes changes to the membership of the State Banking Board of Illinois. Provides that a bank may borrow or incur an obligation and pledge assets to secure deposits. Provides that a bank may provide data processing services to a person for profit. Provides that a bank may invest in financial futures or options transactions. Provides that the board of directors of a bank may provide by resolution that stockholders may attend, participate in, act in, and vote at any annual meeting or special meeting through the use of a conference telephone or interactive technology if specified conditions are satisfied. Provides that a person who makes, or causes to be made, a false statement or false entry with intent to deceive any person or persons authorized to examine into the affairs of the bank or the subsidiary or holding company of that bank, the branch of an out-of-state bank with intent to deceive the Commissioner of Banks and Real Estate or his administrative officers in the performance of their duties under the Act shall be subject to civil penalties imposed by the Commissioner (rather than be guilty of a Class 3 felony). Provides that the Board may authorize the transfer of funds from the Bank and Trust Company Fund. Amends the Savings Bank Act. Provides that the board of directors of a savings bank may provide by resolution that members or stockholders may attend, participate in, act in, and vote at any annual meeting or special meeting through the use of a conference telephone or interactive technology if specified conditions are satisfied. Provides that a savings bank may loan funds through the purchase of fixed rate annuity contracts. Provides that a savings bank may accept deposits made by a minor and may open an account in the name of such minor and the rules and regulations of such savings bank with respect to each such deposit and account shall be as binding upon such minor as if such minor were of full age and legal capacity. Makes changes to various provisions concerning notice to allow for electronic notice. Makes other changes. Effective immediately. LRB103 38817 RTM 68954 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3726 Introduced 2/9/2024, by Sen. Mary Edly-Allen SYNOPSIS AS INTRODUCED: See Index See Index Amends the Illinois Banking Act. Makes changes to the membership of the State Banking Board of Illinois. Provides that a bank may borrow or incur an obligation and pledge assets to secure deposits. Provides that a bank may provide data processing services to a person for profit. Provides that a bank may invest in financial futures or options transactions. Provides that the board of directors of a bank may provide by resolution that stockholders may attend, participate in, act in, and vote at any annual meeting or special meeting through the use of a conference telephone or interactive technology if specified conditions are satisfied. Provides that a person who makes, or causes to be made, a false statement or false entry with intent to deceive any person or persons authorized to examine into the affairs of the bank or the subsidiary or holding company of that bank, the branch of an out-of-state bank with intent to deceive the Commissioner of Banks and Real Estate or his administrative officers in the performance of their duties under the Act shall be subject to civil penalties imposed by the Commissioner (rather than be guilty of a Class 3 felony). Provides that the Board may authorize the transfer of funds from the Bank and Trust Company Fund. Amends the Savings Bank Act. Provides that the board of directors of a savings bank may provide by resolution that members or stockholders may attend, participate in, act in, and vote at any annual meeting or special meeting through the use of a conference telephone or interactive technology if specified conditions are satisfied. Provides that a savings bank may loan funds through the purchase of fixed rate annuity contracts. Provides that a savings bank may accept deposits made by a minor and may open an account in the name of such minor and the rules and regulations of such savings bank with respect to each such deposit and account shall be as binding upon such minor as if such minor were of full age and legal capacity. Makes changes to various provisions concerning notice to allow for electronic notice. Makes other changes. Effective immediately. LRB103 38817 RTM 68954 b LRB103 38817 RTM 68954 b A BILL FOR
2	2	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3726 Introduced 2/9/2024, by Sen. Mary Edly-Allen SYNOPSIS AS INTRODUCED:
3	3	See Index See Index
4	4	See Index
5	5	Amends the Illinois Banking Act. Makes changes to the membership of the State Banking Board of Illinois. Provides that a bank may borrow or incur an obligation and pledge assets to secure deposits. Provides that a bank may provide data processing services to a person for profit. Provides that a bank may invest in financial futures or options transactions. Provides that the board of directors of a bank may provide by resolution that stockholders may attend, participate in, act in, and vote at any annual meeting or special meeting through the use of a conference telephone or interactive technology if specified conditions are satisfied. Provides that a person who makes, or causes to be made, a false statement or false entry with intent to deceive any person or persons authorized to examine into the affairs of the bank or the subsidiary or holding company of that bank, the branch of an out-of-state bank with intent to deceive the Commissioner of Banks and Real Estate or his administrative officers in the performance of their duties under the Act shall be subject to civil penalties imposed by the Commissioner (rather than be guilty of a Class 3 felony). Provides that the Board may authorize the transfer of funds from the Bank and Trust Company Fund. Amends the Savings Bank Act. Provides that the board of directors of a savings bank may provide by resolution that members or stockholders may attend, participate in, act in, and vote at any annual meeting or special meeting through the use of a conference telephone or interactive technology if specified conditions are satisfied. Provides that a savings bank may loan funds through the purchase of fixed rate annuity contracts. Provides that a savings bank may accept deposits made by a minor and may open an account in the name of such minor and the rules and regulations of such savings bank with respect to each such deposit and account shall be as binding upon such minor as if such minor were of full age and legal capacity. Makes changes to various provisions concerning notice to allow for electronic notice. Makes other changes. Effective immediately.
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11	11	1 AN ACT concerning regulation.
12	12	2 Be it enacted by the People of the State of Illinois,
13	13	3 represented in the General Assembly:
14	14	4 Section 5. The Illinois Banking Act is amended by changing
15	15	5 Sections 2, 5, 13, 14, 15, 16, 16.5, 20, 32.1, 40, 48, 48.1,
16	16	6 48.2, 49, 78, and 80 as follows:
17	17	7 (205 ILCS 5/2) (from Ch. 17, par. 302)
18	18	8 Sec. 2. General definitions. In this Act, unless the
19	19	9 context otherwise requires, the following words and phrases
20	20	10 shall have the following meanings:
21	21	11 "Accommodation party" shall have the meaning ascribed to
22	22	12 that term in Section 3-419 of the Uniform Commercial Code.
23	23	13 "Action" in the sense of a judicial proceeding includes
24	24	14 recoupments, counterclaims, set-off, and any other proceeding
25	25	15 in which rights are determined.
26	26	16 "Affiliate facility" of a bank means a main banking
27	27	17 premises or branch of another commonly owned bank. The main
28	28	18 banking premises or any branch of a bank may be an "affiliate
29	29	19 facility" with respect to one or more other commonly owned
30	30	20 banks.
31	31	21 "Appropriate federal banking agency" means the Federal
32	32	22 Deposit Insurance Corporation, the Federal Reserve Bank of
33	33	23 Chicago, or the Federal Reserve Bank of St. Louis, as
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37	37	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3726 Introduced 2/9/2024, by Sen. Mary Edly-Allen SYNOPSIS AS INTRODUCED:
38	38	See Index See Index
39	39	See Index
40	40	Amends the Illinois Banking Act. Makes changes to the membership of the State Banking Board of Illinois. Provides that a bank may borrow or incur an obligation and pledge assets to secure deposits. Provides that a bank may provide data processing services to a person for profit. Provides that a bank may invest in financial futures or options transactions. Provides that the board of directors of a bank may provide by resolution that stockholders may attend, participate in, act in, and vote at any annual meeting or special meeting through the use of a conference telephone or interactive technology if specified conditions are satisfied. Provides that a person who makes, or causes to be made, a false statement or false entry with intent to deceive any person or persons authorized to examine into the affairs of the bank or the subsidiary or holding company of that bank, the branch of an out-of-state bank with intent to deceive the Commissioner of Banks and Real Estate or his administrative officers in the performance of their duties under the Act shall be subject to civil penalties imposed by the Commissioner (rather than be guilty of a Class 3 felony). Provides that the Board may authorize the transfer of funds from the Bank and Trust Company Fund. Amends the Savings Bank Act. Provides that the board of directors of a savings bank may provide by resolution that members or stockholders may attend, participate in, act in, and vote at any annual meeting or special meeting through the use of a conference telephone or interactive technology if specified conditions are satisfied. Provides that a savings bank may loan funds through the purchase of fixed rate annuity contracts. Provides that a savings bank may accept deposits made by a minor and may open an account in the name of such minor and the rules and regulations of such savings bank with respect to each such deposit and account shall be as binding upon such minor as if such minor were of full age and legal capacity. Makes changes to various provisions concerning notice to allow for electronic notice. Makes other changes. Effective immediately.
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43	43	A BILL FOR
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68	68	1 determined by federal law.
69	69	2 "Bank" means any person doing a banking business whether
70	70	3 subject to the laws of this or any other jurisdiction.
71	71	4 A "banking house", "branch", "branch bank" or "branch
72	72	5 office" shall mean any place of business of a bank at which
73	73	6 deposits are received, checks paid, or loans made, but shall
74	74	7 not include any place at which only records thereof are made,
75	75	8 posted, or kept. A place of business at which deposits are
76	76	9 received, checks paid, or loans made shall not be deemed to be
77	77	10 a branch, branch bank, or branch office if the place of
78	78	11 business is adjacent to and connected with the main banking
79	79	12 premises, or if it is separated from the main banking premises
80	80	13 by not more than an alley; provided always that (i) if the
81	81	14 place of business is separated by an alley from the main
82	82	15 banking premises there is a connection between the two by
83	83	16 public or private way or by subterranean or overhead passage,
84	84	17 and (ii) if the place of business is in a building not wholly
85	85	18 occupied by the bank, the place of business shall not be within
86	86	19 any office or room in which any other business or service of
87	87	20 any kind or nature other than the business of the bank is
88	88	21 conducted or carried on. A place of business at which deposits
89	89	22 are received, checks paid, or loans made shall not be deemed to
90	90	23 be a branch, branch bank, or branch office (i) of any bank if
91	91	24 the place is a terminal established and maintained in
92	92	25 accordance with paragraph (17) of Section 5 of this Act, or
93	93	26 (ii) of a commonly owned bank by virtue of transactions
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104	104	1 conducted at that place on behalf of the other commonly owned
105	105	2 bank under paragraph (23) of Section 5 of this Act if the place
106	106	3 is an affiliate facility with respect to the other bank.
107	107	4 "Branch of an out-of-state bank" means a branch
108	108	5 established or maintained in Illinois by an out-of-state bank
109	109	6 as a result of a merger between an Illinois bank and the
110	110	7 out-of-state bank that occurs on or after May 31, 1997, or any
111	111	8 branch established by the out-of-state bank following the
112	112	9 merger.
113	113	10 "Bylaws" means the bylaws of a bank that are adopted by the
114	114	11 bank's board of directors or shareholders for the regulation
115	115	12 and management of the bank's affairs. If the bank operates as a
116	116	13 limited liability company, however, "bylaws" means the
117	117	14 operating agreement of the bank.
118	118	15 "Call report fee" means the fee to be paid to the
119	119	16 Commissioner by each State bank pursuant to paragraph (a) of
120	120	17 subsection (3) of Section 48 of this Act.
121	121	18 "Capital" includes the aggregate of outstanding capital
122	122	19 stock and preferred stock.
123	123	20 "Cash flow reserve account" means the account within the
124	124	21 books and records of the Commissioner of Banks and Real Estate
125	125	22 used to record funds designated to maintain a reasonable Bank
126	126	23 and Trust Company Fund operating balance to meet agency
127	127	24 obligations on a timely basis.
128	128	25 "Charter" includes the original charter and all amendments
129	129	26 thereto and articles of merger or consolidation.
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140	140	1 "Commissioner" means the Commissioner of Banks and Real
141	141	2 Estate, except that beginning on April 6, 2009 (the effective
142	142	3 date of Public Act 95-1047), all references in this Act to the
143	143	4 Commissioner of Banks and Real Estate are deemed, in
144	144	5 appropriate contexts, to be references to the Secretary of
145	145	6 Financial and Professional Regulation.
146	146	7 "Commonly owned banks" means 2 or more banks that each
147	147	8 qualify as a bank subsidiary of the same bank holding company
148	148	9 pursuant to Section 18 of the Federal Deposit Insurance Act;
149	149	10 "commonly owned bank" refers to one of a group of commonly
150	150	11 owned banks but only with respect to one or more of the other
151	151	12 banks in the same group.
152	152	13 "Community" means a city, village, or incorporated town
153	153	14 and also includes the area served by the banking offices of a
154	154	15 bank, but need not be limited or expanded to conform to the
155	155	16 geographic boundaries of units of local government.
156	156	17 "Company" means a corporation, limited liability company,
157	157	18 partnership, business trust, association, or similar
158	158	19 organization and, unless specifically excluded, includes a
159	159	20 "State bank" and a "bank".
160	160	21 "Consolidating bank" means a party to a consolidation.
161	161	22 "Consolidation" takes place when 2 or more banks, or a
162	162	23 trust company and a bank, are extinguished and by the same
163	163	24 process a new bank is created, taking over the assets and
164	164	25 assuming the liabilities of the banks or trust company passing
165	165	26 out of existence.
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176	176	1 "Continuing bank" means a merging bank, the charter of
177	177	2 which becomes the charter of the resulting bank.
178	178	3 "Converting bank" means a State bank converting to become
179	179	4 a national bank, or a national bank converting to become a
180	180	5 State bank.
181	181	6 "Converting trust company" means a trust company
182	182	7 converting to become a State bank.
183	183	8 "Court" means a court of competent jurisdiction.
184	184	9 "Director" means a member of the board of directors of a
185	185	10 bank. In the case of a manager-managed limited liability
186	186	11 company, however, "director" means a manager of the bank and,
187	187	12 in the case of a member-managed limited liability company,
188	188	13 "director" means a member of the bank. The term "director"
189	189	14 does not include an advisory director, honorary director,
190	190	15 director emeritus, or similar person, unless the person is
191	191	16 otherwise performing functions similar to those of a member of
192	192	17 the board of directors.
193	193	18 "Director of Banking" means the Director of the Division
194	194	19 of Banking of the Department of Financial and Professional
195	195	20 Regulation.
196	196	21 "Eligible depository institution" means an insured savings
197	197	22 association that is in default, an insured savings association
198	198	23 that is in danger of default, a State or national bank that is
199	199	24 in default or a State or national bank that is in danger of
200	200	25 default, as those terms are defined in this Section, or a new
201	201	26 bank as that term defined in Section 11(m) of the Federal
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212	212	1 Deposit Insurance Act or a bridge bank as that term is defined
213	213	2 in Section 11(n) of the Federal Deposit Insurance Act or a new
214	214	3 federal savings association authorized under Section
215	215	4 11(d)(2)(f) of the Federal Deposit Insurance Act.
216	216	5 "Fiduciary" means trustee, agent, executor, administrator,
217	217	6 committee, guardian for a minor or for a person under legal
218	218	7 disability, receiver, trustee in bankruptcy, assignee for
219	219	8 creditors, or any holder of similar position of trust.
220	220	9 "Financial institution" means a bank, savings bank,
221	221	10 savings and loan association, credit union, or any licensee
222	222	11 under the Consumer Installment Loan Act or the Sales Finance
223	223	12 Agency Act and, for purposes of Section 48.3, any proprietary
224	224	13 network, funds transfer corporation, or other entity providing
225	225	14 electronic funds transfer services, or any corporate
226	226	15 fiduciary, its subsidiaries, affiliates, parent company, or
227	227	16 contractual service provider that is examined by the
228	228	17 Commissioner. For purposes of Section 5c and subsection (b) of
229	229	18 Section 13 of this Act, "financial institution" includes any
230	230	19 proprietary network, funds transfer corporation, or other
231	231	20 entity providing electronic funds transfer services, and any
232	232	21 corporate fiduciary.
233	233	22 "Foundation" means the Illinois Bank Examiners' Education
234	234	23 Foundation.
235	235	24 "General obligation" means a bond, note, debenture,
236	236	25 security, or other instrument evidencing an obligation of the
237	237	26 government entity that is the issuer that is supported by the
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248	248	1 full available resources of the issuer, the principal and
249	249	2 interest of which is payable in whole or in part by taxation.
250	250	3 "Guarantee" means an undertaking or promise to answer for
251	251	4 payment of another's debt or performance of another's duty,
252	252	5 liability, or obligation whether "payment guaranteed" or
253	253	6 "collection guaranteed".
254	254	7 "In danger of default" means a State or national bank, a
255	255	8 federally chartered insured savings association or an Illinois
256	256	9 state chartered insured savings association with respect to
257	257	10 which the Commissioner or the appropriate federal banking
258	258	11 agency has advised the Federal Deposit Insurance Corporation
259	259	12 that:
260	260	13 (1) in the opinion of the Commissioner or the
261	261	14 appropriate federal banking agency,
262	262	15 (A) the State or national bank or insured savings
263	263	16 association is not likely to be able to meet the
264	264	17 demands of the State or national bank's or savings
265	265	18 association's obligations in the normal course of
266	266	19 business; and
267	267	20 (B) there is no reasonable prospect that the State
268	268	21 or national bank or insured savings association will
269	269	22 be able to meet those demands or pay those obligations
270	270	23 without federal assistance; or
271	271	24 (2) in the opinion of the Commissioner or the
272	272	25 appropriate federal banking agency,
273	273	26 (A) the State or national bank or insured savings
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284	284	1 association has incurred or is likely to incur losses
285	285	2 that will deplete all or substantially all of its
286	286	3 capital; and
287	287	4 (B) there is no reasonable prospect that the
288	288	5 capital of the State or national bank or insured
289	289	6 savings association will be replenished without
290	290	7 federal assistance.
291	291	8 "In default" means, with respect to a State or national
292	292	9 bank or an insured savings association, any adjudication or
293	293	10 other official determination by any court of competent
294	294	11 jurisdiction, the Commissioner, the appropriate federal
295	295	12 banking agency, or other public authority pursuant to which a
296	296	13 conservator, receiver, or other legal custodian is appointed
297	297	14 for a State or national bank or an insured savings
298	298	15 association.
299	299	16 "Insured savings association" means any federal savings
300	300	17 association chartered under Section 5 of the federal Home
301	301	18 Owners' Loan Act and any State savings association chartered
302	302	19 under the Illinois Savings and Loan Act of 1985 or a
303	303	20 predecessor Illinois statute, the deposits of which are
304	304	21 insured by the Federal Deposit Insurance Corporation. The term
305	305	22 also includes a savings bank organized or operating under the
306	306	23 Savings Bank Act.
307	307	24 "Insured savings association in recovery" means an insured
308	308	25 savings association that is not an eligible depository
309	309	26 institution and that does not meet the minimum capital
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320	320	1 requirements applicable with respect to the insured savings
321	321	2 association.
322	322	3 "Issuer" means for purposes of Section 33 every person who
323	323	4 shall have issued or proposed to issue any security; except
324	324	5 that (1) with respect to certificates of deposit, voting trust
325	325	6 certificates, collateral-trust certificates, and certificates
326	326	7 of interest or shares in an unincorporated investment trust
327	327	8 not having a board of directors (or persons performing similar
328	328	9 functions), "issuer" means the person or persons performing
329	329	10 the acts and assuming the duties of depositor or manager
330	330	11 pursuant to the provisions of the trust, agreement, or
331	331	12 instrument under which the securities are issued; (2) with
332	332	13 respect to trusts other than those specified in clause (1)
333	333	14 above, where the trustee is a corporation authorized to accept
334	334	15 and execute trusts, "issuer" means the entrusters, depositors,
335	335	16 or creators of the trust and any manager or committee charged
336	336	17 with the general direction of the affairs of the trust
337	337	18 pursuant to the provisions of the agreement or instrument
338	338	19 creating the trust; and (3) with respect to equipment trust
339	339	20 certificates or like securities, "issuer" means the person to
340	340	21 whom the equipment or property is or is to be leased or
341	341	22 conditionally sold.
342	342	23 "Letter of credit" and "customer" shall have the same
343	343	24 meaning as that term is given meanings ascribed to those terms
344	344	25 in Section 5-102 of the Uniform Commercial Code.
345	345	26 "Main banking premises" means the location that is
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356	356	1 designated in a bank's charter as its main office.
357	357	2 "Maker or obligor" means for purposes of Section 33 the
358	358	3 issuer of a security, the promisor in a debenture or other debt
359	359	4 security, or the mortgagor or grantor of a trust deed or
360	360	5 similar conveyance of a security interest in real or personal
361	361	6 property.
362	362	7 "Merged bank" means a merging bank that is not the
363	363	8 continuing, resulting, or surviving bank in a consolidation or
364	364	9 merger.
365	365	10 "Merger" includes consolidation.
366	366	11 "Merging bank" means a party to a bank merger.
367	367	12 "Merging trust company" means a trust company party to a
368	368	13 merger with a State bank.
369	369	14 "Mid-tier bank holding company" means a corporation that
370	370	15 (a) owns 100% of the issued and outstanding shares of each
371	371	16 class of stock of a State bank, (b) has no other subsidiaries,
372	372	17 and (c) 100% of the issued and outstanding shares of the
373	373	18 corporation are owned by a parent bank holding company.
374	374	19 "Municipality" means any municipality, political
375	375	20 subdivision, school district, taxing district, or agency.
376	376	21 "National bank" means a national banking association
377	377	22 located in this State and after May 31, 1997, means a national
378	378	23 banking association without regard to its location.
379	379	24 "Out-of-state bank" means a bank chartered under the laws
380	380	25 of a state other than Illinois, a territory of the United
381	381	26 States, or the District of Columbia.
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392	392	1 "Parent bank holding company" means a corporation that is
393	393	2 a bank holding company as that term is defined in the Illinois
394	394	3 Bank Holding Company Act of 1957 and owns 100% of the issued
395	395	4 and outstanding shares of a mid-tier bank holding company.
396	396	5 "Person" means an individual, corporation, limited
397	397	6 liability company, partnership, joint venture, trust, estate,
398	398	7 or unincorporated association.
399	399	8 "Public agency" means the State of Illinois, the various
400	400	9 counties, townships, cities, towns, villages, school
401	401	10 districts, educational service regions, special road
402	402	11 districts, public water supply districts, fire protection
403	403	12 districts, drainage districts, levee districts, sewer
404	404	13 districts, housing authorities, the Illinois Bank Examiners'
405	405	14 Education Foundation, the Chicago Park District, and all other
406	406	15 political corporations or subdivisions of the State of
407	407	16 Illinois, whether now or hereafter created, whether herein
408	408	17 specifically mentioned or not, and shall also include any
409	409	18 other state or any political corporation or subdivision of
410	410	19 another state.
411	411	20 "Public funds" or "public money" means current operating
412	412	21 funds, special funds, interest and sinking funds, and funds of
413	413	22 any kind or character belonging to, in the custody of, or
414	414	23 subject to the control or regulation of the United States or a
415	415	24 public agency. "Public funds" or "public money" shall include
416	416	25 funds held by any of the officers, agents, or employees of the
417	417	26 United States or of a public agency in the course of their
418	418
419	419
420	420
421	421
422	422
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424	424
425	425
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427	427	SB3726 - 12 - LRB103 38817 RTM 68954 b
428	428	1 official duties and, with respect to public money of the
429	429	2 United States, shall include Postal Savings funds.
430	430	3 "Published" means, unless the context requires otherwise,
431	431	4 the publishing of the notice or instrument referred to in some
432	432	5 newspaper of general circulation in the community in which the
433	433	6 bank is located at least once each week for 3 successive weeks.
434	434	7 Publishing shall be accomplished by, and at the expense of,
435	435	8 the bank required to publish. Where publishing is required,
436	436	9 the bank shall submit to the Commissioner that evidence of the
437	437	10 publication as the Commissioner shall deem appropriate.
438	438	11 "Qualified financial contract" means any security
439	439	12 contract, commodity contract, forward contract, including spot
440	440	13 and forward foreign exchange contracts, repurchase agreement,
441	441	14 swap agreement, and any similar agreement, any option to enter
442	442	15 into any such agreement, including any combination of the
443	443	16 foregoing, and any master agreement for such agreements. A
444	444	17 master agreement, together with all supplements thereto, shall
445	445	18 be treated as one qualified financial contract. The contract,
446	446	19 option, agreement, or combination of contracts, options, or
447	447	20 agreements shall be reflected upon the books, accounts, or
448	448	21 records of the bank, or a party to the contract shall provide
449	449	22 documentary evidence of such agreement.
450	450	23 "Recorded" means the filing or recording of the notice or
451	451	24 instrument referred to in the office of the Recorder of the
452	452	25 county wherein the bank is located.
453	453	26 "Resulting bank" means the bank resulting from a merger or
454	454
455	455
456	456
457	457
458	458
459	459	SB3726 - 12 - LRB103 38817 RTM 68954 b
460	460
461	461
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463	463	SB3726 - 13 - LRB103 38817 RTM 68954 b
464	464	1 conversion.
465	465	2 "Secretary" means the Secretary of Financial and
466	466	3 Professional Regulation, or a person authorized by the
467	467	4 Secretary or by this Act to act in the Secretary's stead.
468	468	5 "Securities" means stocks, bonds, debentures, notes, or
469	469	6 other similar obligations.
470	470	7 "Stand-by letter of credit" means a letter of credit under
471	471	8 which drafts are payable upon the condition the customer has
472	472	9 defaulted in performance of a duty, liability, or obligation.
473	473	10 "State bank" means any banking corporation that has a
474	474	11 banking charter issued by the Commissioner under this Act.
475	475	12 "State Banking Board" means the State Banking Board of
476	476	13 Illinois.
477	477	14 "Subsidiary" with respect to a specified company means a
478	478	15 company that is controlled by the specified company. For
479	479	16 purposes of paragraphs (8) and (12) of Section 5 of this Act,
480	480	17 "control" means the exercise of operational or managerial
481	481	18 control of a corporation by the bank, either alone or together
482	482	19 with other affiliates of the bank.
483	483	20 "Surplus" means the aggregate of (i) amounts paid in
484	484	21 excess of the par value of capital stock and preferred stock;
485	485	22 (ii) amounts contributed other than for capital stock and
486	486	23 preferred stock and allocated to the surplus account; and
487	487	24 (iii) amounts transferred from undivided profits.
488	488	25 "Tier 1 Capital" and "Tier 2 Capital" have the meanings
489	489	26 assigned to those terms in regulations promulgated for the
490	490
491	491
492	492
493	493
494	494
495	495	SB3726 - 13 - LRB103 38817 RTM 68954 b
496	496
497	497
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499	499	SB3726 - 14 - LRB103 38817 RTM 68954 b
500	500	1 appropriate federal banking agency of a state bank, as those
501	501	2 regulations are now or hereafter amended.
502	502	3 "Trust company" means a limited liability company or
503	503	4 corporation incorporated in this State for the purpose of
504	504	5 accepting and executing trusts.
505	505	6 "Undivided profits" means undistributed earnings less
506	506	7 discretionary transfers to surplus.
507	507	8 "Unimpaired capital and unimpaired surplus", for the
508	508	9 purposes of paragraph (21) of Section 5 and Sections 32, 33,
509	509	10 34, 35.1, 35.2, and 47 of this Act means the sum of the state
510	510	11 bank's Tier 1 Capital and Tier 2 Capital plus such other
511	511	12 shareholder equity as may be included by regulation of the
512	512	13 Commissioner. Unimpaired capital and unimpaired surplus shall
513	513	14 be calculated on the basis of the date of the last quarterly
514	514	15 call report filed with the Commissioner preceding the date of
515	515	16 the transaction for which the calculation is made, provided
516	516	17 that: (i) when a material event occurs after the date of the
517	517	18 last quarterly call report filed with the Commissioner that
518	518	19 reduces or increases the bank's unimpaired capital and
519	519	20 unimpaired surplus by 10% or more, then the unimpaired capital
520	520	21 and unimpaired surplus shall be calculated from the date of
521	521	22 the material event for a transaction conducted after the date
522	522	23 of the material event; and (ii) if the Commissioner determines
523	523	24 for safety and soundness reasons that a state bank should
524	524	25 calculate unimpaired capital and unimpaired surplus more
525	525	26 frequently than provided by this paragraph, the Commissioner
526	526
527	527
528	528
529	529
530	530
531	531	SB3726 - 14 - LRB103 38817 RTM 68954 b
532	532
533	533
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535	535	SB3726 - 15 - LRB103 38817 RTM 68954 b
536	536	1 may by written notice direct the bank to calculate unimpaired
537	537	2 capital and unimpaired surplus at a more frequent interval. In
538	538	3 the case of a state bank newly chartered under Section 13 or a
539	539	4 state bank resulting from a merger, consolidation, or
540	540	5 conversion under Sections 21 through 26 for which no preceding
541	541	6 quarterly call report has been filed with the Commissioner,
542	542	7 unimpaired capital and unimpaired surplus shall be calculated
543	543	8 for the first calendar quarter on the basis of the effective
544	544	9 date of the charter, merger, consolidation, or conversion.
545	545	10 (Source: P.A. 95-924, eff. 8-26-08; 95-1047, eff. 4-6-09;
546	546	11 96-1000, eff. 7-2-10; 96-1163, eff. 1-1-11.)
547	547	12 (205 ILCS 5/5) (from Ch. 17, par. 311)
548	548	13 Sec. 5. General corporate powers. A bank organized under
549	549	14 this Act or subject hereto shall be a body corporate and
550	550	15 politic and shall, without specific mention thereof in the
551	551	16 charter, have all the powers conferred by this Act and the
552	552	17 following additional general corporate powers:
553	553	18 (1) To sue and be sued, complain, and defend in its
554	554	19 corporate name.
555	555	20 (2) To have a corporate seal, which may be altered at
556	556	21 pleasure, and to use the same by causing it or a facsimile
557	557	22 thereof to be impressed or affixed or in any manner
558	558	23 reproduced, provided that the affixing of a corporate seal
559	559	24 to an instrument shall not give the instrument additional
560	560	25 force or effect, or change the construction thereof, and
561	561
562	562
563	563
564	564
565	565
566	566	SB3726 - 15 - LRB103 38817 RTM 68954 b
567	567
568	568
569	569	SB3726- 16 -LRB103 38817 RTM 68954 b SB3726 - 16 - LRB103 38817 RTM 68954 b
570	570	SB3726 - 16 - LRB103 38817 RTM 68954 b
571	571	1 the use of a corporate seal is not mandatory.
572	572	2 (3) To make, alter, amend, and repeal bylaws, not
573	573	3 inconsistent with its charter or with law, for the
574	574	4 administration of the affairs of the bank. If this Act
575	575	5 does not provide specific guidance in matters of corporate
576	576	6 governance, the provisions of the Business Corporation Act
577	577	7 of 1983 may be used if so provided in the bylaws, and if
578	578	8 the bank is a limited liability company, the provisions of
579	579	9 the Limited Liability Company Act shall be used.
580	580	10 (4) To elect or appoint and remove officers and agents
581	581	11 of the bank and define their duties and fix their
582	582	12 compensation.
583	583	13 (5) To adopt and operate reasonable bonus plans,
584	584	14 profit-sharing plans, stock-bonus plans, stock-option
585	585	15 plans, pension plans, and similar incentive plans for its
586	586	16 directors, officers and employees.
587	587	17 (5.1) To manage, operate, and administer a fund for
588	588	18 the investment of funds by a public agency or agencies,
589	589	19 including any unit of local government or school district,
590	590	20 or any person. The fund for a public agency shall invest in
591	591	21 the same type of investments and be subject to the same
592	592	22 limitations provided for the investment of public funds.
593	593	23 The fund for public agencies shall maintain a separate
594	594	24 ledger showing the amount of investment for each public
595	595	25 agency in the fund. "Public funds" and "public agency" as
596	596	26 used in this Section shall have the meanings ascribed to
597	597
598	598
599	599
600	600
601	601
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603	603
604	604
605	605	SB3726- 17 -LRB103 38817 RTM 68954 b SB3726 - 17 - LRB103 38817 RTM 68954 b
606	606	SB3726 - 17 - LRB103 38817 RTM 68954 b
607	607	1 them in Section 1 of the Public Funds Investment Act.
608	608	2 (6) To make reasonable donations for the public
609	609	3 welfare or for charitable, scientific, religious or
610	610	4 educational purposes.
611	611	5 (7) To borrow or incur an obligation; and to pledge
612	612	6 its assets:
613	613	7 (a) to secure its borrowings, its lease of
614	614	8 personal or real property or its other nondeposit
615	615	9 obligations;
616	616	10 (b) to enable it to act as agent for the sale of
617	617	11 obligations of the United States;
618	618	12 (c) to secure deposits of public money of the
619	619	13 United States, whenever required by the laws of the
620	620	14 United States, including, without being limited to,
621	621	15 revenues and funds the deposit of which is subject to
622	622	16 the control or regulation of the United States or any
623	623	17 of its officers, agents, or employees and Postal
624	624	18 Savings funds;
625	625	19 (d) to secure deposits of public money of any
626	626	20 state or of any political corporation or subdivision
627	627	21 thereof, including, without being limited to, revenues
628	628	22 and funds the deposit of which is subject to the
629	629	23 control or regulation of any state or of any political
630	630	24 corporation or subdivisions thereof or of any of their
631	631	25 officers, agents, or employees;
632	632	26 (e) to secure deposits of money whenever required
633	633
634	634
635	635
636	636
637	637
638	638	SB3726 - 17 - LRB103 38817 RTM 68954 b
639	639
640	640
641	641	SB3726- 18 -LRB103 38817 RTM 68954 b SB3726 - 18 - LRB103 38817 RTM 68954 b
642	642	SB3726 - 18 - LRB103 38817 RTM 68954 b
643	643	1 by the National Bankruptcy Act;
644	644	2 (f) (blank); and
645	645	3 (g) to secure trust funds commingled with the
646	646	4 bank's funds, whether deposited by the bank or an
647	647	5 affiliate of the bank, pursuant to Section 2-8 of the
648	648	6 Corporate Fiduciary Act; and .
649	649	7 (h) to secure deposits.
650	650	8 (8) To own, possess, and carry as assets all or part of
651	651	9 the real estate necessary in or with which to do its
652	652	10 banking business, either directly or indirectly through
653	653	11 the ownership of all or part of the capital stock, shares
654	654	12 or interests in any corporation, association, trust
655	655	13 engaged in holding any part or parts or all of the bank
656	656	14 premises, engaged in such business and in conducting a
657	657	15 safe deposit business in the premises or part of them, or
658	658	16 engaged in any activity that the bank is permitted to
659	659	17 conduct in a subsidiary pursuant to paragraph (12) of this
660	660	18 Section 5.
661	661	19 (9) To own, possess, and carry as assets other real
662	662	20 estate to which it may obtain title in the collection of
663	663	21 its debts or that was formerly used as a part of the bank
664	664	22 premises, but title to any real estate except as herein
665	665	23 permitted may only shall not be retained by the bank,
666	666	24 either directly or by or through a subsidiary, as
667	667	25 permitted by subsection (12) of this Section for a total
668	668	26 period of more than 10 years after acquiring title or for
669	669
670	670
671	671
672	672
673	673
674	674	SB3726 - 18 - LRB103 38817 RTM 68954 b
675	675
676	676
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678	678	SB3726 - 19 - LRB103 38817 RTM 68954 b
679	679	1 the period set by federal law for national banks,
680	680	2 whichever is greater, either directly or indirectly.
681	681	3 (10) To do any act, including the acquisition of
682	682	4 stock, necessary to obtain insurance of its deposits, or
683	683	5 part thereof, and any act necessary to obtain a guaranty,
684	684	6 in whole or in part, of any of its loans or investments by
685	685	7 the United States or any agency thereof, and any act
686	686	8 necessary to sell or otherwise dispose of any of its loans
687	687	9 or investments to the United States or any agency thereof,
688	688	10 and to acquire and hold membership in the Federal Reserve
689	689	11 System.
690	690	12 (11) Notwithstanding any other provisions of this Act
691	691	13 or any other law, to do any act and to own, possess, and
692	692	14 carry as assets property of the character, including
693	693	15 stock, that is at the time authorized or permitted to
694	694	16 national banks by an Act of Congress, but subject always
695	695	17 to the same limitations and restrictions as are applicable
696	696	18 to national banks by the pertinent federal law and subject
697	697	19 to applicable provisions of the Financial Institutions
698	698	20 Insurance Sales Law.
699	699	21 (12) To own, possess, and carry as assets stock of one
700	700	22 or more corporations that is, or are, engaged in one or
701	701	23 more of the following businesses:
702	702	24 (a) holding title to and administering assets
703	703	25 acquired as a result of the collection or liquidating
704	704	26 of loans, investments, or discounts; or
705	705
706	706
707	707
708	708
709	709
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711	711
712	712
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714	714	SB3726 - 20 - LRB103 38817 RTM 68954 b
715	715	1 (b) holding title to and administering personal
716	716	2 property acquired by the bank, directly or indirectly
717	717	3 through a subsidiary, for the purpose of leasing to
718	718	4 others, provided the lease or leases and the
719	719	5 investment of the bank, directly or through a
720	720	6 subsidiary, in that personal property otherwise comply
721	721	7 with Section 35.1 of this Act; or
722	722	8 (c) carrying on or administering any of the
723	723	9 activities excepting the receipt of deposits or the
724	724	10 payment of checks or other orders for the payment of
725	725	11 money in which a bank may engage in carrying on its
726	726	12 general banking business; provided, however, that
727	727	13 nothing contained in this paragraph (c) shall be
728	728	14 deemed to permit a bank organized under this Act or
729	729	15 subject hereto to do, either directly or indirectly
730	730	16 through any subsidiary, any act, including the making
731	731	17 of any loan or investment, or to own, possess, or carry
732	732	18 as assets any property that if done by or owned,
733	733	19 possessed, or carried by the State bank would be in
734	734	20 violation of or prohibited by any provision of this
735	735	21 Act.
736	736	22 The provisions of this subsection (12) shall not apply
737	737	23 to and shall not be deemed to limit the powers of a State
738	738	24 bank with respect to the ownership, possession, and
739	739	25 carrying of stock that a State bank is permitted to own,
740	740	26 possess, or carry under this Act.
741	741
742	742
743	743
744	744
745	745
746	746	SB3726 - 20 - LRB103 38817 RTM 68954 b
747	747
748	748
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750	750	SB3726 - 21 - LRB103 38817 RTM 68954 b
751	751	1 Any bank intending to establish a subsidiary under
752	752	2 this subsection (12) shall give written notice to the
753	753	3 Commissioner 60 days prior to the subsidiary's commencing
754	754	4 of business or, as the case may be, prior to acquiring
755	755	5 stock in a corporation that has already commenced
756	756	6 business. After receiving the notice, the Commissioner may
757	757	7 waive or reduce the balance of the 60-day notice period.
758	758	8 The Commissioner may specify the form of the notice, may
759	759	9 designate the types of subsidiaries not subject to this
760	760	10 notice requirement, and may promulgate rules and
761	761	11 regulations to administer this subsection (12).
762	762	12 (13) To accept for payment at a future date not
763	763	13 exceeding one year from the date of acceptance, drafts
764	764	14 drawn upon it by its customers; and to issue, advise, or
765	765	15 confirm letters of credit authorizing the holders thereof
766	766	16 to draw drafts upon it or its correspondents.
767	767	17 (14) To own and lease personal property acquired by
768	768	18 the bank at the request of a prospective lessee and upon
769	769	19 the agreement of that person to lease the personal
770	770	20 property provided that the lease, the agreement with
771	771	21 respect thereto, and the amount of the investment of the
772	772	22 bank in the property comply with Section 35.1 of this Act.
773	773	23 (15)(a) To establish and maintain, in addition to the
774	774	24 main banking premises, branches offering any banking
775	775	25 services permitted at the main banking premises of a State
776	776	26 bank.
777	777
778	778
779	779
780	780
781	781
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783	783
784	784
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786	786	SB3726 - 22 - LRB103 38817 RTM 68954 b
787	787	1 (b) To establish and maintain, after May 31, 1997,
788	788	2 branches in another state that may conduct any activity in
789	789	3 that state that is authorized or permitted for any bank
790	790	4 that has a banking charter issued by that state, subject
791	791	5 to the same limitations and restrictions that are
792	792	6 applicable to banks chartered by that state.
793	793	7 (16) (Blank).
794	794	8 (17) To establish and maintain terminals, as
795	795	9 authorized by the Electronic Fund Transfer Act.
796	796	10 (18) To establish and maintain temporary service
797	797	11 booths at any International Fair held in this State which
798	798	12 is approved by the United States Department of Commerce,
799	799	13 for the duration of the international fair for the sole
800	800	14 purpose of providing a convenient place for foreign trade
801	801	15 customers at the fair to exchange their home countries'
802	802	16 currency into United States currency or the converse. This
803	803	17 power shall not be construed as establishing a new place
804	804	18 or change of location for the bank providing the service
805	805	19 booth.
806	806	20 (19) To indemnify its officers, directors, employees,
807	807	21 and agents, as authorized for corporations under Section
808	808	22 8.75 of the Business Corporation Act of 1983.
809	809	23 (20) To own, possess, and carry as assets stock of, or
810	810	24 be or become a member of, any corporation, mutual company,
811	811	25 association, trust, or other entity formed exclusively for
812	812	26 the purpose of providing directors' and officers'
813	813
814	814
815	815
816	816
817	817
818	818	SB3726 - 22 - LRB103 38817 RTM 68954 b
819	819
820	820
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822	822	SB3726 - 23 - LRB103 38817 RTM 68954 b
823	823	1 liability and bankers' blanket bond insurance or
824	824	2 reinsurance to and for the benefit of the stockholders,
825	825	3 members, or beneficiaries, or their assets or businesses,
826	826	4 or their officers, directors, employees, or agents, and
827	827	5 not to or for the benefit of any other person or entity or
828	828	6 the public generally.
829	829	7 (21) To make debt or equity investments in
830	830	8 corporations or projects, whether for profit or not for
831	831	9 profit, designed to promote the development of the
832	832	10 community and its welfare, provided that the aggregate
833	833	11 investment in all of these corporations and in all of
834	834	12 these projects does not exceed 10% of the unimpaired
835	835	13 capital and unimpaired surplus of the bank and provided
836	836	14 that this limitation shall not apply to creditworthy loans
837	837	15 by the bank to those corporations or projects. Upon
838	838	16 written application to the Commissioner, a bank may make
839	839	17 an investment that would, when aggregated with all other
840	840	18 such investments, exceed 10% of the unimpaired capital and
841	841	19 unimpaired surplus of the bank. The Commissioner may
842	842	20 approve the investment if he is of the opinion and finds
843	843	21 that the proposed investment will not have a material
844	844	22 adverse effect on the safety and soundness of the bank.
845	845	23 (22) To own, possess, and carry as assets the stock of
846	846	24 a corporation engaged in the ownership or operation of a
847	847	25 travel agency or to operate a travel agency as a part of
848	848	26 its business.
849	849
850	850
851	851
852	852
853	853
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855	855
856	856
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858	858	SB3726 - 24 - LRB103 38817 RTM 68954 b
859	859	1 (23) With respect to affiliate facilities:
860	860	2 (a) to conduct at affiliate facilities for and on
861	861	3 behalf of another commonly owned bank, if so
862	862	4 authorized by the other bank, all transactions that
863	863	5 the other bank is authorized or permitted to perform;
864	864	6 and
865	865	7 (b) to authorize a commonly owned bank to conduct
866	866	8 for and on behalf of it any of the transactions it is
867	867	9 authorized or permitted to perform at one or more
868	868	10 affiliate facilities.
869	869	11 Any bank intending to conduct or to authorize a
870	870	12 commonly owned bank to conduct at an affiliate facility
871	871	13 any of the transactions specified in this paragraph (23)
872	872	14 shall give written notice to the Commissioner at least 30
873	873	15 days before any such transaction is conducted at the
874	874	16 affiliate facility.
875	875	17 (24) To act as the agent for any fire, life, or other
876	876	18 insurance company authorized by the State of Illinois, by
877	877	19 soliciting and selling insurance and collecting premiums
878	878	20 on policies issued by such company; and to receive for
879	879	21 services so rendered such fees or commissions as may be
880	880	22 agreed upon between the bank and the insurance company for
881	881	23 which it may act as agent; provided, however, that no such
882	882	24 bank shall in any case assume or guarantee the payment of
883	883	25 any premium on insurance policies issued through its
884	884	26 agency by its principal; and provided further, that the
885	885
886	886
887	887
888	888
889	889
890	890	SB3726 - 24 - LRB103 38817 RTM 68954 b
891	891
892	892
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894	894	SB3726 - 25 - LRB103 38817 RTM 68954 b
895	895	1 bank shall not guarantee the truth of any statement made
896	896	2 by an assured in filing his application for insurance.
897	897	3 (25) Notwithstanding any other provisions of this Act
898	898	4 or any other law, to offer any product or service that is
899	899	5 at the time authorized or permitted to any insured savings
900	900	6 association or out-of-state bank by applicable law,
901	901	7 provided that powers conferred only by this subsection
902	902	8 (25):
903	903	9 (a) shall always be subject to the same
904	904	10 limitations and restrictions that are applicable to
905	905	11 the insured savings association or out-of-state bank
906	906	12 for the product or service by such applicable law;
907	907	13 (b) shall be subject to applicable provisions of
908	908	14 the Financial Institutions Insurance Sales Law;
909	909	15 (c) shall not include the right to own or conduct a
910	910	16 real estate brokerage business for which a license
911	911	17 would be required under the laws of this State; and
912	912	18 (d) shall not be construed to include the
913	913	19 establishment or maintenance of a branch, nor shall
914	914	20 they be construed to limit the establishment or
915	915	21 maintenance of a branch pursuant to subsection (11).
916	916	22 Before Not less than 30 days before engaging in any
917	917	23 activity under the authority of this subsection, a bank
918	918	24 shall provide written notice to the Commissioner of its
919	919	25 intent to engage in the activity. The notice shall
920	920	26 indicate the specific federal or state law, rule,
921	921
922	922
923	923
924	924
925	925
926	926	SB3726 - 25 - LRB103 38817 RTM 68954 b
927	927
928	928
929	929	SB3726- 26 -LRB103 38817 RTM 68954 b SB3726 - 26 - LRB103 38817 RTM 68954 b
930	930	SB3726 - 26 - LRB103 38817 RTM 68954 b
931	931	1 regulation, or interpretation the bank intends to use as
932	932	2 authority to engage in the activity.
933	933	3 (26) To provide data processing services to a person
934	934	4 for profit.
935	935	5 (27) To invest in financial futures or options
936	936	6 transactions subject to the regulations of the Secretary.
937	937	7 Nothing in this Section shall be construed to require the
938	938	8 filing of a notice or application for approval with the United
939	939	9 States Office of the Comptroller of the Currency or a bank
940	940	10 supervisor of another state as a condition to the right of a
941	941	11 State bank to exercise any of the powers conferred by this
942	942	12 Section in this State.
943	943	13 (Source: P.A. 99-362, eff. 8-13-15; 100-863, eff. 8-14-18.)
944	944	14 (205 ILCS 5/13) (from Ch. 17, par. 320)
945	945	15 Sec. 13. Issuance of charter.
946	946	16 (a) When the directors have organized as provided in
947	947	17 Section 12 of this Act, and the capital stock and the preferred
948	948	18 stock, if any, together with a surplus of not less than 50% of
949	949	19 the capital, has been all fully paid in and a record of the
950	950	20 same filed with the Commissioner, the Commissioner or some
951	951	21 competent person of the Commissioner's appointment shall make
952	952	22 a thorough examination into the affairs of the proposed bank,
953	953	23 and if satisfied (i) that all the requirements of this Act have
954	954	24 been complied with, (ii) that no intervening circumstance has
955	955	25 occurred to change the Commissioner's findings made pursuant
956	956
957	957
958	958
959	959
960	960
961	961	SB3726 - 26 - LRB103 38817 RTM 68954 b
962	962
963	963
964	964	SB3726- 27 -LRB103 38817 RTM 68954 b SB3726 - 27 - LRB103 38817 RTM 68954 b
965	965	SB3726 - 27 - LRB103 38817 RTM 68954 b
966	966	1 to Section 10 of this Act, and (iii) that the prior involvement
967	967	2 by any stockholder who will own a sufficient amount of stock to
968	968	3 have control, as defined in Section 18 of this Act, of the
969	969	4 proposed bank with any other financial institution, whether as
970	970	5 stockholder, director, officer, or customer, was conducted in
971	971	6 a safe and sound manner, upon payment into the Commissioner's
972	972	7 office of the reasonable expenses of the examination, as
973	973	8 determined by the Commissioner, the Commissioner shall issue a
974	974	9 charter authorizing the bank to commence business as
975	975	10 authorized in this Act. All charters issued by the
976	976	11 Commissioner or any predecessor agency which chartered State
977	977	12 banks, including any charter outstanding as of September 1,
978	978	13 1989, shall be perpetual. For the 2 years after the
979	979	14 Commissioner has issued a charter to a bank, the bank shall
980	980	15 request and obtain from the Commissioner prior written
981	981	16 approval before it may change senior management personnel or
982	982	17 directors.
983	983	18 The original charter, duly certified by the Commissioner,
984	984	19 or a certified copy shall be evidence in all courts and places
985	985	20 of the existence and authority of the bank to do business. Upon
986	986	21 the issuance of the charter by the Commissioner, the bank
987	987	22 shall be deemed fully organized and may proceed to do
988	988	23 business. The Commissioner may, in the Commissioner's
989	989	24 discretion, withhold the issuing of the charter when the
990	990	25 Commissioner has reason to believe that the bank is organized
991	991	26 for any purpose other than that contemplated by this Act. The
992	992
993	993
994	994
995	995
996	996
997	997	SB3726 - 27 - LRB103 38817 RTM 68954 b
998	998
999	999
1000	1000	SB3726- 28 -LRB103 38817 RTM 68954 b SB3726 - 28 - LRB103 38817 RTM 68954 b
1001	1001	SB3726 - 28 - LRB103 38817 RTM 68954 b
1002	1002	1 Commissioner shall revoke the charter and order liquidation in
1003	1003	2 the event that the bank does not commence a general banking
1004	1004	3 business within one year from the date of the issuance of the
1005	1005	4 charter, unless a request has been submitted, in writing, to
1006	1006	5 the Commissioner for an extension and the request has been
1007	1007	6 approved. After commencing a general banking business, a bank
1008	1008	7 may change its name by filing written notice with the
1009	1009	8 Commissioner at least 30 days prior to the effective date of
1010	1010	9 such change. A bank chartered under this Act may change its
1011	1011	10 main banking premises by filing written application with the
1012	1012	11 Commissioner, on forms prescribed by the Commissioner,
1013	1013	12 provided (i) the change shall not be a removal to a new
1014	1014	13 location without complying with the capital requirements of
1015	1015	14 Section 7 and of subsection (1) of Section 10 of this Act; (ii)
1016	1016	15 the Commissioner approves the relocation or change; and (iii)
1017	1017	16 the bank complies with any applicable federal law or
1018	1018	17 regulation. The application shall be deemed to be approved if
1019	1019	18 the Commissioner has not acted on the application within 30
1020	1020	19 days after receipt of the application, unless within the
1021	1021	20 30-day time frame the Commissioner informs the bank that an
1022	1022	21 extension of time is necessary prior to the Commissioner's
1023	1023	22 action on the application.
1024	1024	23 (b)(1) The Commissioner may also issue a charter to a bank
1025	1025	24 that is owned exclusively by other depository institutions or
1026	1026	25 depository institution holding companies and is organized to
1027	1027	26 engage exclusively in providing services to or for other
1028	1028
1029	1029
1030	1030
1031	1031
1032	1032
1033	1033	SB3726 - 28 - LRB103 38817 RTM 68954 b
1034	1034
1035	1035
1036	1036	SB3726- 29 -LRB103 38817 RTM 68954 b SB3726 - 29 - LRB103 38817 RTM 68954 b
1037	1037	SB3726 - 29 - LRB103 38817 RTM 68954 b
1038	1038	1 financial institutions, their holding companies, and the
1039	1039	2 officers, directors, and employees of such institutions and
1040	1040	3 companies, and in providing services at the request of other
1041	1041	4 financial institutions or their holding companies (also
1042	1042	5 referred to as a "bankers' bank"). The bank may also provide
1043	1043	6 products and services to its officers, directors, and
1044	1044	7 employees.
1045	1045	8 (2) A bank chartered pursuant to paragraph (1) shall,
1046	1046	9 except as otherwise specifically determined or limited by the
1047	1047	10 Commissioner in an order or pursuant to a rule, be vested with
1048	1048	11 the same rights and privileges and subject to the same duties,
1049	1049	12 restrictions, penalties, and liabilities now or hereafter
1050	1050	13 imposed under this Act.
1051	1051	14 (c) A bank chartered under this Act shall, at all times
1052	1052	15 while it accepts or retains deposits, maintain with the
1053	1053	16 Federal Deposit Insurance Corporation, or such other
1054	1054	17 instrumentality of or corporation chartered by the United
1055	1055	18 States, deposit insurance as authorized under federal law.
1056	1056	19 (d)(i) A bank that has a banking charter issued by the
1057	1057	20 Commissioner under this Act may, pursuant to a written
1058	1058	21 purchase and assumption agreement, transfer substantially all
1059	1059	22 of its assets to another State bank or national bank in
1060	1060	23 consideration, in whole or in part, for the transferee banks'
1061	1061	24 assumption of any part or all of its liabilities. Such a
1062	1062	25 transfer shall in no way be deemed to impair the charter of the
1063	1063	26 transferor bank or cause the transferor bank to forfeit any of
1064	1064
1065	1065
1066	1066
1067	1067
1068	1068
1069	1069	SB3726 - 29 - LRB103 38817 RTM 68954 b
1070	1070
1071	1071
1072	1072	SB3726- 30 -LRB103 38817 RTM 68954 b SB3726 - 30 - LRB103 38817 RTM 68954 b
1073	1073	SB3726 - 30 - LRB103 38817 RTM 68954 b
1074	1074	1 its rights, powers, interests, franchises, or privileges as a
1075	1075	2 State bank, nor shall any voluntary reduction in the
1076	1076	3 transferor bank's activities resulting from the transfer have
1077	1077	4 any such effect; provided, however, that a State bank that
1078	1078	5 transfers substantially all of its assets pursuant to this
1079	1079	6 subsection (d) and following the transfer does not accept
1080	1080	7 deposits and make loans, shall not have any rights, powers,
1081	1081	8 interests, franchises, or privileges under subsection (15) of
1082	1082	9 Section 5 of this Act until the bank has resumed accepting
1083	1083	10 deposits and making loans.
1084	1084	11 (ii) The fact that a State bank does not resume accepting
1085	1085	12 deposits and making loans for a period of 24 months commencing
1086	1086	13 on September 11, 1989 or on a date of the transfer of
1087	1087	14 substantially all of a State bank's assets, whichever is
1088	1088	15 later, or such longer period as the Commissioner may allow in
1089	1089	16 writing, may be the basis for a finding by the Commissioner
1090	1090	17 under Section 51 of this Act that the bank is unable to
1091	1091	18 continue operations.
1092	1092	19 (iii) The authority provided by subdivision (i) of this
1093	1093	20 subsection (d) shall terminate on May 31, 1997, and no bank
1094	1094	21 that has transferred substantially all of its assets pursuant
1095	1095	22 to this subsection (d) shall continue in existence after May
1096	1096	23 31, 1997.
1097	1097	24 (Source: P.A. 95-924, eff. 8-26-08; 96-1365, eff. 7-28-10.)
1098	1098	25 (205 ILCS 5/14) (from Ch. 17, par. 321)
1099	1099
1100	1100
1101	1101
1102	1102
1103	1103
1104	1104	SB3726 - 30 - LRB103 38817 RTM 68954 b
1105	1105
1106	1106
1107	1107	SB3726- 31 -LRB103 38817 RTM 68954 b SB3726 - 31 - LRB103 38817 RTM 68954 b
1108	1108	SB3726 - 31 - LRB103 38817 RTM 68954 b
1109	1109	1 Sec. 14. Stock. Unless otherwise provided for in this Act
1110	1110	2 provisions of general application to stock of a state bank
1111	1111	3 shall be as follows:
1112	1112	4 (1) All banks shall have their capital divided into shares
1113	1113	5 of a par value of not less than $1 each and not more than $100
1114	1114	6 each, however, the par value of shares of a bank effecting a
1115	1115	7 reverse stock split pursuant to item (8) of subsection (a) of
1116	1116	8 Section 17 may temporarily exceed this limit provided it
1117	1117	9 conforms to the limits immediately after the reverse stock
1118	1118	10 split is completed. No issue of capital stock or preferred
1119	1119	11 stock shall be valid until not less than the par value of all
1120	1120	12 such stock so issued shall be paid in and notice thereof by the
1121	1121	13 president, a vice-president or cashier of the bank has been
1122	1122	14 transmitted to the Commissioner. In the case of an increase in
1123	1123	15 capital stock by the declaration of a stock dividend, the
1124	1124	16 capitalization of retained earnings effected by such stock
1125	1125	17 dividend shall constitute the payment for such shares required
1126	1126	18 by the preceding sentence, provided that the surplus of said
1127	1127	19 bank after such stock dividend shall be at least equal to fifty
1128	1128	20 per cent of the capital as increased. The charter shall not
1129	1129	21 limit or deny the voting power of the shares of any class of
1130	1130	22 stock except as provided in Section 15(3) of this Act.
1131	1131	23 (2) Pursuant to action taken in accordance with the
1132	1132	24 requirements of Section 17, a bank may issue preferred stock
1133	1133	25 of one or more classes as shall be approved by the Commissioner
1134	1134	26 as hereinafter provided, and make such amendment to its
1135	1135
1136	1136
1137	1137
1138	1138
1139	1139
1140	1140	SB3726 - 31 - LRB103 38817 RTM 68954 b
1141	1141
1142	1142
1143	1143	SB3726- 32 -LRB103 38817 RTM 68954 b SB3726 - 32 - LRB103 38817 RTM 68954 b
1144	1144	SB3726 - 32 - LRB103 38817 RTM 68954 b
1145	1145	1 charter as may be necessary for this purpose; but in the case
1146	1146	2 of any newly organized bank which has not yet issued capital
1147	1147	3 stock the requirements of Section 17 shall not apply.
1148	1148	4 (3) Without limiting the authority herein contained a
1149	1149	5 bank, when so provided in its charter and when approved by the
1150	1150	6 Commissioner, may issue shares of preferred stock:
1151	1151	7 (a) Subject to the right of the bank to redeem any of
1152	1152	8 such shares at not exceeding the price fixed by the
1153	1153	9 charter for the redemption thereof;
1154	1154	10 (b) Subject to the provisions of subsection (8) of
1155	1155	11 this Section 14 entitling the holders thereof to
1156	1156	12 cumulative or noncumulative dividends;
1157	1157	13 (c) Having preference over any other class or classes
1158	1158	14 of shares as to the payment of dividends;
1159	1159	15 (d) Having preference as to the assets of the bank
1160	1160	16 over any other class or classes of shares upon the
1161	1161	17 voluntary or involuntary liquidation of the bank;
1162	1162	18 (e) Convertible into shares of any other class of
1163	1163	19 stock, provided that preferred shares shall not be
1164	1164	20 converted into shares of a different par value unless that
1165	1165	21 part of the capital of the bank represented by such
1166	1166	22 preferred shares is at the time of the conversion equal to
1167	1167	23 the aggregate par value of the shares into which the
1168	1168	24 preferred shares are to be converted.
1169	1169	25 (4) If any part of the capital of a bank consists of
1170	1170	26 preferred stock, the determination of whether or not the
1171	1171
1172	1172
1173	1173
1174	1174
1175	1175
1176	1176	SB3726 - 32 - LRB103 38817 RTM 68954 b
1177	1177
1178	1178
1179	1179	SB3726- 33 -LRB103 38817 RTM 68954 b SB3726 - 33 - LRB103 38817 RTM 68954 b
1180	1180	SB3726 - 33 - LRB103 38817 RTM 68954 b
1181	1181	1 capital of such bank is impaired and the amount of such
1182	1182	2 impairment shall be based upon the par value of its stock even
1183	1183	3 though the amount which the holders of such preferred stock
1184	1184	4 shall be entitled to receive in the event of retirement or
1185	1185	5 liquidation shall be in excess of the par value of such
1186	1186	6 preferred stock.
1187	1187	7 (5) Pursuant to action taken in accordance with the
1188	1188	8 requirements of Section 17 of this Act, a state bank may
1189	1189	9 provide for a specified number of authorized but unissued
1190	1190	10 shares of capital stock for one or more of the following
1191	1191	11 purposes:
1192	1192	12 (a) Reserved for issuance under stock option plan or
1193	1193	13 plans to directors, officers or employees;
1194	1194	14 (b) Reserved for issuance upon conversion of
1195	1195	15 convertible preferred stock issued pursuant to and in
1196	1196	16 compliance with the provisions of subsections (2) and (3)
1197	1197	17 of this Section 14.
1198	1198	18 (c) Reserved for issuance upon conversion of
1199	1199	19 convertible debentures or other convertible evidences of
1200	1200	20 indebtedness issued by a state bank, provided always that
1201	1201	21 the terms of such conversion have been approved by the
1202	1202	22 Commissioner;
1203	1203	23 (d) Reserved for issuance by the declaration of a
1204	1204	24 stock dividend. If and when any shares of capital stock
1205	1205	25 are proposed to be authorized and reserved for any of the
1206	1206	26 purposes set forth in subparagraphs (a), (b) or (c) above,
1207	1207
1208	1208
1209	1209
1210	1210
1211	1211
1212	1212	SB3726 - 33 - LRB103 38817 RTM 68954 b
1213	1213
1214	1214
1215	1215	SB3726- 34 -LRB103 38817 RTM 68954 b SB3726 - 34 - LRB103 38817 RTM 68954 b
1216	1216	SB3726 - 34 - LRB103 38817 RTM 68954 b
1217	1217	1 the notice of the meeting, whether special or annual, of
1218	1218	2 stockholders at which such proposition is to be considered
1219	1219	3 shall be accompanied by a statement setting forth or
1220	1220	4 summarizing the terms upon which the shares of capital
1221	1221	5 stock so reserved are to be issued, and the extent to which
1222	1222	6 any preemptive rights of stockholders are inapplicable to
1223	1223	7 the issuance of the shares so reserved or to the
1224	1224	8 convertible preferred stock or convertible debentures or
1225	1225	9 other convertible evidences of indebtedness, and the
1226	1226	10 approving vote of the holders of at least two-thirds of
1227	1227	11 the outstanding shares of stock entitled to vote at such
1228	1228	12 meeting of the terms of such issuance shall be requisite
1229	1229	13 for the adoption of any amendment providing for the
1230	1230	14 reservation of authorized but unissued shares for any of
1231	1231	15 said purposes. Nothing in this subsection (5) contained
1232	1232	16 shall be deemed to authorize the issuance of any capital
1233	1233	17 stock for a consideration less than the par value thereof.
1234	1234	18 (6) Upon written application to the Commissioner 60 days
1235	1235	19 prior to the proposed purchase and receipt of the written
1236	1236	20 approval of the Commissioner, a state bank may purchase and
1237	1237	21 hold as treasury stock such amounts of the total number of
1238	1238	22 issued and outstanding shares of its capital and preferred
1239	1239	23 stock outstanding as the Commissioner determines is consistent
1240	1240	24 with safety and soundness of the bank. The Commissioner may
1241	1241	25 specify the manner of accounting for the treasury stock and
1242	1242	26 the form of notice prior to ultimate disposition of the
1243	1243
1244	1244
1245	1245
1246	1246
1247	1247
1248	1248	SB3726 - 34 - LRB103 38817 RTM 68954 b
1249	1249
1250	1250
1251	1251	SB3726- 35 -LRB103 38817 RTM 68954 b SB3726 - 35 - LRB103 38817 RTM 68954 b
1252	1252	SB3726 - 35 - LRB103 38817 RTM 68954 b
1253	1253	1 shares. Except as authorized in this subsection, it shall not
1254	1254	2 be lawful for a state bank to purchase or hold any additional
1255	1255	3 such shares or securities described in subsection (2) of
1256	1256	4 Section 37 unless necessary to prevent loss upon a debt
1257	1257	5 previously contracted in good faith, in which event such
1258	1258	6 shares or securities so purchased or acquired shall, within 6
1259	1259	7 months from the time of purchase or acquisition, be sold or
1260	1260	8 disposed of at public or private sale. Any state bank which
1261	1261	9 intends to purchase and hold treasury stock as authorized in
1262	1262	10 this subsection (6) shall file a written application with the
1263	1263	11 Commissioner 60 days prior to any such proposed purchase. The
1264	1264	12 application shall state the number of shares to be purchased,
1265	1265	13 the consideration for the shares, the name and address of the
1266	1266	14 person from whom the shares are to be purchased, if known, and
1267	1267	15 the total percentage of its issued and outstanding shares to
1268	1268	16 be held by the bank after the purchase. The total
1269	1269	17 consideration paid by a state bank for treasury stock shall
1270	1270	18 reduce capital and surplus of the bank for purposes of
1271	1271	19 Sections of this Act relating to lending and investment limits
1272	1272	20 which require computation of capital and surplus. After
1273	1273	21 considering and approving an application to purchase and hold
1274	1274	22 treasury stock under this subsection, the Commissioner may
1275	1275	23 waive or reduce the balance of the 60 day application period.
1276	1276	24 The Commissioner may specify the form of the application for
1277	1277	25 approval to acquire treasury stock and promulgate rules and
1278	1278	26 regulations for the administration of this subsection (6). A
1279	1279
1280	1280
1281	1281
1282	1282
1283	1283
1284	1284	SB3726 - 35 - LRB103 38817 RTM 68954 b
1285	1285
1286	1286
1287	1287	SB3726- 36 -LRB103 38817 RTM 68954 b SB3726 - 36 - LRB103 38817 RTM 68954 b
1288	1288	SB3726 - 36 - LRB103 38817 RTM 68954 b
1289	1289	1 state bank may acquire or resell its own shares as treasury
1290	1290	2 stock pursuant to this subsection (6) without a change in its
1291	1291	3 charter pursuant to Section 17. Such stock may be held for any
1292	1292	4 purpose permitted in subsection (5) of this Section 14 or may
1293	1293	5 be resold upon such reasonable terms as the board of directors
1294	1294	6 may determine provided notice is given to the Commissioner
1295	1295	7 prior to the resale of such stock.
1296	1296	8 (7) During the time that a state bank shall continue its
1297	1297	9 banking business, it shall not withdraw or permit to be
1298	1298	10 withdrawn, either in the form of dividends or otherwise, any
1299	1299	11 portion of its capital, but nothing in this subsection shall
1300	1300	12 prevent a reduction or change of the capital stock or the
1301	1301	13 preferred stock under the provisions of Sections 17 through 30
1302	1302	14 of this Act, a purchase of treasury stock under the provisions
1303	1303	15 of subsection (6) of this Section 14 or a redemption of
1304	1304	16 preferred stock pursuant to charter provisions therefor.
1305	1305	17 (8) (a) Subject to the provisions of this Act, the board of
1306	1306	18 directors of a state bank from time to time may declare a
1307	1307	19 dividend of so much of the net profits of such bank as it
1308	1308	20 shall judge expedient, but each bank before the
1309	1309	21 declaration of a dividend shall carry at least one-tenth
1310	1310	22 of its net profits since the date of the declaration of the
1311	1311	23 last preceding dividend, or since the issuance of its
1312	1312	24 charter in the case of its first dividend, to its surplus
1313	1313	25 until the same shall be equal to its capital.
1314	1314	26 (b) No dividends shall be paid by a state bank while it
1315	1315
1316	1316
1317	1317
1318	1318
1319	1319
1320	1320	SB3726 - 36 - LRB103 38817 RTM 68954 b
1321	1321
1322	1322
1323	1323	SB3726- 37 -LRB103 38817 RTM 68954 b SB3726 - 37 - LRB103 38817 RTM 68954 b
1324	1324	SB3726 - 37 - LRB103 38817 RTM 68954 b
1325	1325	1 continues its banking business to an amount greater than
1326	1326	2 its net profits then on hand, deducting first therefrom
1327	1327	3 its losses and bad debts. All debts due to a state bank on
1328	1328	4 which interest is past due and unpaid for a period of 6
1329	1329	5 months or more, unless the same are well secured and in the
1330	1330	6 process of collection, shall be considered bad debts.
1331	1331	7 (9) A State bank may, but shall not be obliged to, issue a
1332	1332	8 certificate for a fractional share, and, by action of its
1333	1333	9 board of directors, may in lieu thereof, pay cash equal to the
1334	1334	10 value of the fractional share. A certificate for a fractional
1335	1335	11 share shall entitle the holder to exercise fractional voting
1336	1336	12 rights, to receive dividends, and to participate in any of the
1337	1337	13 assets of the bank in the event of liquidation.
1338	1338	14 (Source: P.A. 92-483, eff. 8-23-01; 92-651, eff. 7-11-02.)
1339	1339	15 (205 ILCS 5/15) (from Ch. 17, par. 322)
1340	1340	16 Sec. 15. Stock and stockholders. Unless otherwise provided
1341	1341	17 for in this Act, provisions of general application to capital
1342	1342	18 stock, preferred stock, and stockholders of a State bank shall
1343	1343	19 be as follows:
1344	1344	20 (1) There shall be an annual meeting of the stockholders
1345	1345	21 for the election of directors each year on the first business
1346	1346	22 day in January, unless some other date shall be fixed by the
1347	1347	23 by-laws. A special meeting of the stockholders may be called
1348	1348	24 at any time by the board of directors, and otherwise as may be
1349	1349	25 provided in the bylaws.
1350	1350
1351	1351
1352	1352
1353	1353
1354	1354
1355	1355	SB3726 - 37 - LRB103 38817 RTM 68954 b
1356	1356
1357	1357
1358	1358	SB3726- 38 -LRB103 38817 RTM 68954 b SB3726 - 38 - LRB103 38817 RTM 68954 b
1359	1359	SB3726 - 38 - LRB103 38817 RTM 68954 b
1360	1360	1 (2) Written or printed notice stating the place, day, and
1361	1361	2 hour of the meeting, and in case of a special meeting, the
1362	1362	3 purpose or purposes for which the meeting is called, shall be
1363	1363	4 delivered not less than 10 nor more than 40 days before the
1364	1364	5 date of the meeting either personally, electronically, or by
1365	1365	6 mail, by or at the direction of the president, or the
1366	1366	7 secretary, or the officer or persons calling the meeting, to
1367	1367	8 each stockholder of record entitled to vote at the meeting. If
1368	1368	9 mailed, the notice shall be deemed to be delivered when
1369	1369	10 deposited in the United States mail with postage thereon
1370	1370	11 prepaid addressed to the stockholder at his address as it
1371	1371	12 appears on the records of the bank.
1372	1372	13 (3) Except as provided below in this paragraph (3), each
1373	1373	14 outstanding share shall be entitled to one vote on each matter
1374	1374	15 submitted to a vote at a meeting of stockholders. Shares of its
1375	1375	16 own stock belonging to a bank shall not be voted, directly or
1376	1376	17 indirectly, at any meeting and shall not be counted in
1377	1377	18 determining the total number of outstanding shares at any
1378	1378	19 given time, but shares of its own stock held by it in a
1379	1379	20 fiduciary capacity may be voted and shall be counted in
1380	1380	21 determining the total number of outstanding shares at any
1381	1381	22 given time. A stockholder may vote either in person or by proxy
1382	1382	23 executed in writing by the stockholder or by his duly
1383	1383	24 authorized attorney-in-fact. No proxy shall be valid after 11
1384	1384	25 months from the date of its execution, unless otherwise
1385	1385	26 provided in the proxy. Except as provided below in this
1386	1386
1387	1387
1388	1388
1389	1389
1390	1390
1391	1391	SB3726 - 38 - LRB103 38817 RTM 68954 b
1392	1392
1393	1393
1394	1394	SB3726- 39 -LRB103 38817 RTM 68954 b SB3726 - 39 - LRB103 38817 RTM 68954 b
1395	1395	SB3726 - 39 - LRB103 38817 RTM 68954 b
1396	1396	1 paragraph (3), in all elections for directors every
1397	1397	2 stockholder (or subscriber to the stock prior to the issuance
1398	1398	3 of a charter) shall have the right to vote, in person or by
1399	1399	4 proxy, for the number of shares of stock owned by him, for as
1400	1400	5 many persons as there are directors to be elected, or to
1401	1401	6 cumulate the shares and give one candidate as many votes as the
1402	1402	7 number of directors multiplied by the number of his or her
1403	1403	8 shares of stock shall equal, or to distribute them on the same
1404	1404	9 principle among as many candidates as he or she shall think
1405	1405	10 fit. The bank charter of any bank organized on or after January
1406	1406	11 1, 1984 may limit or eliminate cumulative voting rights in all
1407	1407	12 or specified circumstances, or may eliminate voting rights
1408	1408	13 entirely, as to any class or classes or series of stock of the
1409	1409	14 bank; provided that one class of shares or series thereof
1410	1410	15 shall always have voting rights in respect of all matters in
1411	1411	16 the bank. A bank organized prior to January 1, 1984 may amend
1412	1412	17 its charter to eliminate cumulative voting rights under all or
1413	1413	18 specified circumstances, or to eliminate voting rights
1414	1414	19 entirely, as to any class or classes or series of stock of the
1415	1415	20 bank; provided that one class of shares or series thereof
1416	1416	21 shall always have voting rights in respect of all matters in
1417	1417	22 the bank, and provided further that the proposal to eliminate
1418	1418	23 the voting rights receives the approval of the holders of 70%
1419	1419	24 of the outstanding shares of stock entitled to vote as
1420	1420	25 provided in paragraph (b) (7) of Section 17. A majority of the
1421	1421	26 outstanding shares represented in person or by proxy shall
1422	1422
1423	1423
1424	1424
1425	1425
1426	1426
1427	1427	SB3726 - 39 - LRB103 38817 RTM 68954 b
1428	1428
1429	1429
1430	1430	SB3726- 40 -LRB103 38817 RTM 68954 b SB3726 - 40 - LRB103 38817 RTM 68954 b
1431	1431	SB3726 - 40 - LRB103 38817 RTM 68954 b
1432	1432	1 constitute a quorum at a meeting of stockholders. In the
1433	1433	2 absence of a quorum a meeting may be adjourned from time to
1434	1434	3 time without notice to the stockholders.
1435	1435	4 (4) Whenever additional stock of a class is offered for
1436	1436	5 sale, stockholders of record of the same class on the date of
1437	1437	6 the offer shall have the right to subscribe to the proportion
1438	1438	7 of the shares as the stock of the class held by them bears to
1439	1439	8 the total of the outstanding stock of the class, and the price
1440	1440	9 thereof may be in excess of par value. This right shall be
1441	1441	10 transferable but shall terminate if not exercised within 60
1442	1442	11 days of the offer, unless the Commissioner shall authorize a
1443	1443	12 shorter time. If the right is not exercised, the stock shall
1444	1444	13 not be re-offered for sale to others at a lower price without
1445	1445	14 the stockholders of the same class again being accorded a
1446	1446	15 preemptive right to subscribe at the lower price.
1447	1447	16 Notwithstanding any of the provisions of this paragraph (4) or
1448	1448	17 any other provision of law, stockholders shall not have any
1449	1449	18 preemptive or other right to subscribe for or to purchase or
1450	1450	19 acquire shares of capital stock issued or to be issued under a
1451	1451	20 stock-option plan or upon conversion of preferred stock or
1452	1452	21 convertible debentures or other convertible indebtedness that
1453	1453	22 has been approved by stockholders in the manner required by
1454	1454	23 the provisions of subsection (5) of Section 14 hereof or to
1455	1455	24 treasury stock acquired pursuant to subsection (6) of Section
1456	1456	25 14.
1457	1457	26 (5) For the purpose of determining stockholders entitled
1458	1458
1459	1459
1460	1460
1461	1461
1462	1462
1463	1463	SB3726 - 40 - LRB103 38817 RTM 68954 b
1464	1464
1465	1465
1466	1466	SB3726- 41 -LRB103 38817 RTM 68954 b SB3726 - 41 - LRB103 38817 RTM 68954 b
1467	1467	SB3726 - 41 - LRB103 38817 RTM 68954 b
1468	1468	1 to notice of or to vote at any meeting of stockholders, or
1469	1469	2 stockholders entitled to receive payment of any dividend, or
1470	1470	3 in order to make a determination of stockholders for any other
1471	1471	4 proper purpose, the board of directors of a bank may provide
1472	1472	5 that the stock transfer books shall be closed for a stated
1473	1473	6 period not to exceed, in any case, 40 days. In lieu of closing
1474	1474	7 the stock transfer books, the board of directors may fix in
1475	1475	8 advance a date as the record date for any determination of
1476	1476	9 stockholders, the date in any case to be not more than 40 days,
1477	1477	10 and in case of a meeting of stockholders, not less than 10 days
1478	1478	11 prior to the date on which the particular action, requiring
1479	1479	12 the determination of stockholders, is to be taken. If the
1480	1480	13 stock transfer books are not closed and no record date is fixed
1481	1481	14 for the determination of stockholders entitled to notice of or
1482	1482	15 to vote at a meeting of stockholders, or stockholders entitled
1483	1483	16 to receive payment of a dividend, the date on which notice of a
1484	1484	17 meeting is delivered mailed or the date on which the
1485	1485	18 resolution of the board of directors declaring the dividend is
1486	1486	19 adopted, as the case may be, shall be the record date for the
1487	1487	20 determination of stockholders.
1488	1488	21 (6) Stock standing in the name of another corporation,
1489	1489	22 domestic or foreign, may be voted by the officer, agent, or
1490	1490	23 proxy as the by-laws of the corporation may prescribe, or, in
1491	1491	24 the absence of such provision, as the board of directors of the
1492	1492	25 corporation may determine. Stock standing in the name of a
1493	1493	26 deceased person may be voted by his or her administrator or
1494	1494
1495	1495
1496	1496
1497	1497
1498	1498
1499	1499	SB3726 - 41 - LRB103 38817 RTM 68954 b
1500	1500
1501	1501
1502	1502	SB3726- 42 -LRB103 38817 RTM 68954 b SB3726 - 42 - LRB103 38817 RTM 68954 b
1503	1503	SB3726 - 42 - LRB103 38817 RTM 68954 b
1504	1504	1 executor, either in person or by proxy. Stock standing in the
1505	1505	2 name of a guardian or trustee may be voted by that fiduciary
1506	1506	3 either in person or by proxy. Shares standing in the name of a
1507	1507	4 receiver may be voted by the receiver, and shares held by or
1508	1508	5 under control of a receiver may be voted by the receiver
1509	1509	6 without the transfer thereof into his or her name if authority
1510	1510	7 so to do be contained in an appropriate order of the court by
1511	1511	8 which the receiver was appointed. A stockholder whose shares
1512	1512	9 of stock are pledged shall be entitled to vote those shares
1513	1513	10 until the shares have been transferred into the name of the
1514	1514	11 pledgee, and thereafter the pledgee shall be entitled to vote
1515	1515	12 the shares so transferred.
1516	1516	13 (7) Shares of stock shall be transferable in accordance
1517	1517	14 with the general laws of this State governing the transfer of
1518	1518	15 corporate shares.
1519	1519	16 (8) The president and any other officer designated by the
1520	1520	17 board of directors of every State bank shall cause to be kept
1521	1521	18 at all times a full and correct list of the names and
1522	1522	19 residences of all the shareholders in the State bank and the
1523	1523	20 number of shares held by each in the office where its business
1524	1524	21 is transacted. The list shall be subject to the inspection of
1525	1525	22 all the shareholders of the State bank and the officers
1526	1526	23 authorized to assess taxes under State authority during
1527	1527	24 business hours of each day in which business may be legally
1528	1528	25 transacted. A copy of the list, verified by the oath of the
1529	1529	26 president or cashier, shall be transmitted to the Commissioner
1530	1530
1531	1531
1532	1532
1533	1533
1534	1534
1535	1535	SB3726 - 42 - LRB103 38817 RTM 68954 b
1536	1536
1537	1537
1538	1538	SB3726- 43 -LRB103 38817 RTM 68954 b SB3726 - 43 - LRB103 38817 RTM 68954 b
1539	1539	SB3726 - 43 - LRB103 38817 RTM 68954 b
1540	1540	1 of Banks and Real Estate within 10 days of any demand therefor
1541	1541	2 made by the Commissioner.
1542	1542	3 (9) Any number of shareholders of a bank may create a
1543	1543	4 voting trust for the purpose of conferring upon a trustee or
1544	1544	5 trustees the right to vote or otherwise represent their shares
1545	1545	6 for a period of not to exceed 10 years by entering into a
1546	1546	7 written voting trust agreement specifying the terms and
1547	1547	8 conditions of the voting trust and by transferring their
1548	1548	9 shares to the trustee or trustees for the purposes of the
1549	1549	10 agreement. The trust agreement shall not become effective
1550	1550	11 until a counterpart of the agreement is deposited with the
1551	1551	12 bank at its main banking premises. The counterpart of the
1552	1552	13 voting trust agreement so deposited with the bank shall be
1553	1553	14 subject to the same right of examination by a shareholder of
1554	1554	15 the bank, in person or by agent or attorney, as is the record
1555	1555	16 of shareholders of the bank and shall be subject to
1556	1556	17 examination by any holder of a beneficial interest in the
1557	1557	18 voting trust, either in person or by agent or attorney, at any
1558	1558	19 reasonable time for any proper purpose.
1559	1559	20 (10) Voting agreements. Shareholders may provide for the
1560	1560	21 voting of their shares by signing an agreement for that
1561	1561	22 purpose. A voting agreement created under this paragraph is
1562	1562	23 not subject to the provisions of paragraph (9).
1563	1563	24 A voting agreement created under this paragraph is
1564	1564	25 specifically enforceable in accordance with the principles of
1565	1565	26 equity.
1566	1566
1567	1567
1568	1568
1569	1569
1570	1570
1571	1571	SB3726 - 43 - LRB103 38817 RTM 68954 b
1572	1572
1573	1573
1574	1574	SB3726- 44 -LRB103 38817 RTM 68954 b SB3726 - 44 - LRB103 38817 RTM 68954 b
1575	1575	SB3726 - 44 - LRB103 38817 RTM 68954 b
1576	1576	1 (11) Unless expressly prohibited by the charter or bylaws
1577	1577	2 and subject to applicable requirements of this Act, the board
1578	1578	3 of directors may provide by resolution that stockholders may
1579	1579	4 attend, participate in, act in, and vote at an annual meeting
1580	1580	5 or special meeting through the use of a conference telephone
1581	1581	6 or interactive technology, including, but not limited to,
1582	1582	7 electronic transmission, internet usage, or remote
1583	1583	8 communication, by means of which all persons participating in
1584	1584	9 the meeting can communicate with each other. Participation
1585	1585	10 through the use of a conference telephone or interactive
1586	1586	11 technology shall constitute attendance, presence, and
1587	1587	12 representation in person at the annual meeting or special
1588	1588	13 meeting of the person or persons so participating and count
1589	1589	14 towards the quorum required to conduct business at the
1590	1590	15 meeting. The following conditions shall apply to any virtual
1591	1591	16 meeting of the stockholders:
1592	1592	17 (a) the bank must internally possess or retain the
1593	1593	18 technological capacity to facilitate virtual meeting
1594	1594	19 attendance, participation, communication, and voting; and
1595	1595	20 (b) the stockholders must receive notice of the use of
1596	1596	21 a virtual meeting format and appropriate instructions for
1597	1597	22 joining, participating, and voting during the virtual
1598	1598	23 meeting at least 7 days before the virtual meeting.
1599	1599	24 (Source: P.A. 95-924, eff. 8-26-08.)
1600	1600	25 (205 ILCS 5/16) (from Ch. 17, par. 323)
1601	1601
1602	1602
1603	1603
1604	1604
1605	1605
1606	1606	SB3726 - 44 - LRB103 38817 RTM 68954 b
1607	1607
1608	1608
1609	1609	SB3726- 45 -LRB103 38817 RTM 68954 b SB3726 - 45 - LRB103 38817 RTM 68954 b
1610	1610	SB3726 - 45 - LRB103 38817 RTM 68954 b
1611	1611	1 Sec. 16. Directors. The business and affairs of a State
1612	1612	2 bank shall be managed by its board of directors that shall
1613	1613	3 exercise its powers as follows:
1614	1614	4 (1) Directors shall be elected as provided in this Act.
1615	1615	5 Any omission to elect a director or directors shall not impair
1616	1616	6 any of the rights and privileges of the bank or of any person
1617	1617	7 in any way interested. The existing directors shall hold
1618	1618	8 office until their successors are elected and qualify.
1619	1619	9 (2) (a) Notwithstanding the provisions of any charter
1620	1620	10 heretofore or hereafter issued, the number of directors,
1621	1621	11 not fewer than 5 nor more than 25, may be fixed from time
1622	1622	12 to time by the stockholders at any meeting of the
1623	1623	13 stockholders called for the purpose of electing directors
1624	1624	14 or changing the number thereof by the affirmative vote of
1625	1625	15 at least two-thirds of the outstanding stock entitled to
1626	1626	16 vote at the meeting, and the number so fixed shall be the
1627	1627	17 board regardless of vacancies until the number of
1628	1628	18 directors is thereafter changed by similar action.
1629	1629	19 (b) Notwithstanding the minimum number of directors
1630	1630	20 specified in paragraph (a) of this subsection, a State
1631	1631	21 bank that has been in existence for 10 years or more and
1632	1632	22 has less than $20,000,000 in assets, as of the December 31
1633	1633	23 immediately preceding the annual meeting of shareholders
1634	1634	24 at which directors are elected, may, subject to the
1635	1635	25 approval of the Commissioner, have a minimum of 3
1636	1636	26 directors; provided that if a State bank has fewer than 5
1637	1637
1638	1638
1639	1639
1640	1640
1641	1641
1642	1642	SB3726 - 45 - LRB103 38817 RTM 68954 b
1643	1643
1644	1644
1645	1645	SB3726- 46 -LRB103 38817 RTM 68954 b SB3726 - 46 - LRB103 38817 RTM 68954 b
1646	1646	SB3726 - 46 - LRB103 38817 RTM 68954 b
1647	1647	1 directors, at least one director shall not be an officer
1648	1648	2 or employee of the bank. The Commissioner shall annually
1649	1649	3 review the appropriateness of the grant of authority to
1650	1650	4 have a reduced minimum number of directors pursuant to
1651	1651	5 this paragraph (b).
1652	1652	6 (3) Except as otherwise provided in this paragraph (3),
1653	1653	7 directors shall hold office until the next annual meeting of
1654	1654	8 the stockholders succeeding their election or until their
1655	1655	9 successors are elected and qualify. If the board of directors
1656	1656	10 consists of 6 or more members, in lieu of electing the
1657	1657	11 membership of the whole board of directors annually, the
1658	1658	12 charter or by-laws of a State bank may provide that the
1659	1659	13 directors shall be divided into either 2 or 3 classes, each
1660	1660	14 class to be as nearly equal in number as is possible. The term
1661	1661	15 of office of directors of the first class shall expire at the
1662	1662	16 first annual meeting of the stockholders after their election,
1663	1663	17 that of the second class shall expire at the second annual
1664	1664	18 meeting after their election, and that of the third class, if
1665	1665	19 any, shall expire at the third annual meeting after their
1666	1666	20 election. At each annual meeting after classification, the
1667	1667	21 number of directors equal to the number of the class whose
1668	1668	22 terms expire at the time of the meeting shall be elected to
1669	1669	23 hold office until the second succeeding annual meeting, if
1670	1670	24 there be 2 classes, or until the third succeeding annual
1671	1671	25 meeting, if there be 3 classes. Vacancies may be filled by
1672	1672	26 stockholders at a special meeting called for the purpose.
1673	1673
1674	1674
1675	1675
1676	1676
1677	1677
1678	1678	SB3726 - 46 - LRB103 38817 RTM 68954 b
1679	1679
1680	1680
1681	1681	SB3726- 47 -LRB103 38817 RTM 68954 b SB3726 - 47 - LRB103 38817 RTM 68954 b
1682	1682	SB3726 - 47 - LRB103 38817 RTM 68954 b
1683	1683	1 If authorized by the bank's by-laws or an amendment
1684	1684	2 thereto, the directors of a State bank may properly fill a
1685	1685	3 vacancy or vacancies arising between shareholders' meetings,
1686	1686	4 but at no time may the number of directors selected to fill a
1687	1687	5 vacancy in this manner during any interim period between
1688	1688	6 shareholders' meetings exceed 33 1/3% of the total membership
1689	1689	7 of the board of directors.
1690	1690	8 (4) The board of directors shall hold regular meetings at
1691	1691	9 least once each month, provided that, upon prior written
1692	1692	10 approval by the Commissioner, the board of directors may hold
1693	1693	11 regular meetings less frequently than once each month but at
1694	1694	12 least once each calendar quarter. A special meeting of the
1695	1695	13 board of directors may be held as provided by the by-laws. A
1696	1696	14 special meeting of the board of directors may also be held upon
1697	1697	15 call by the Commissioner or a bank examiner appointed under
1698	1698	16 the provisions of this Act upon not less than 12 hours notice
1699	1699	17 of the meeting by personal service of the notice, by
1700	1700	18 electronic delivery of the notice, or by mailing the notice to
1701	1701	19 each of the directors at his residence as shown by the books of
1702	1702	20 the bank. A majority of the board of directors shall
1703	1703	21 constitute a quorum for the transaction of business unless a
1704	1704	22 greater number is required by the charter or the by-laws. The
1705	1705	23 act of the majority of the directors present at a meeting at
1706	1706	24 which a quorum is present shall be the act of the board of
1707	1707	25 directors unless the act of a greater number is required by the
1708	1708	26 charter or by the by-laws.
1709	1709
1710	1710
1711	1711
1712	1712
1713	1713
1714	1714	SB3726 - 47 - LRB103 38817 RTM 68954 b
1715	1715
1716	1716
1717	1717	SB3726- 48 -LRB103 38817 RTM 68954 b SB3726 - 48 - LRB103 38817 RTM 68954 b
1718	1718	SB3726 - 48 - LRB103 38817 RTM 68954 b
1719	1719	1 (5) A member of the board of directors shall be elected
1720	1720	2 president. The board of directors may appoint other officers,
1721	1721	3 as the by-laws may provide, and fix their salaries to carry on
1722	1722	4 the business of the bank. The board of directors may make and
1723	1723	5 amend by-laws (not inconsistent with this Act) for the
1724	1724	6 government of the bank and may, by the affirmative vote of a
1725	1725	7 majority of the board of directors, establish reasonable
1726	1726	8 compensation of all directors for services to the corporation
1727	1727	9 as directors, officers, or otherwise. An officer, whether
1728	1728	10 elected or appointed by the board of directors or appointed
1729	1729	11 pursuant to the by-laws, may be removed by the board of
1730	1730	12 directors at any time.
1731	1731	13 (6) The board of directors shall cause suitable books and
1732	1732	14 records of all the bank's transactions to be kept.
1733	1733	15 (7) (a) In discharging the duties of their respective
1734	1734	16 positions, the board of directors, committees of the
1735	1735	17 board, and individual directors may, in considering the
1736	1736	18 best long term and short term interests of the bank,
1737	1737	19 consider the effects of any action (including, without
1738	1738	20 limitation, action that may involve or relate to a merger
1739	1739	21 or potential merger or to a change or potential change in
1740	1740	22 control of the bank) upon employees, depositors,
1741	1741	23 suppliers, and customers of the corporation or its
1742	1742	24 subsidiaries, communities in which the main banking
1743	1743	25 premises, branches, offices, or other establishments of
1744	1744	26 the bank or its subsidiaries are located, and all
1745	1745
1746	1746
1747	1747
1748	1748
1749	1749
1750	1750	SB3726 - 48 - LRB103 38817 RTM 68954 b
1751	1751
1752	1752
1753	1753	SB3726- 49 -LRB103 38817 RTM 68954 b SB3726 - 49 - LRB103 38817 RTM 68954 b
1754	1754	SB3726 - 49 - LRB103 38817 RTM 68954 b
1755	1755	1 pertinent factors.
1756	1756	2 (b) In discharging the duties of their respective
1757	1757	3 positions, the board of directors, committees of the
1758	1758	4 board, and individual directors shall be entitled to rely
1759	1759	5 on advice, information, opinions, reports or statements,
1760	1760	6 including financial statements and financial data,
1761	1761	7 prepared or presented by: (i) one or more officers or
1762	1762	8 employees of the bank whom the director believes to be
1763	1763	9 reliable and competent in the matter presented; (ii) one
1764	1764	10 or more counsels, accountants, or other consultants as to
1765	1765	11 matters that the director believes to be within that
1766	1766	12 person's professional or expert competence; or (iii) a
1767	1767	13 committee of the board upon which the director does not
1768	1768	14 serve, as to matters within that committee's designated
1769	1769	15 authority; provided that the director's reliance under
1770	1770	16 this paragraph (b) is placed in good faith, after
1771	1771	17 reasonable inquiry if the need for such inquiry is
1772	1772	18 apparent under the circumstances and without knowledge
1773	1773	19 that would cause such reliance to be unreasonable.
1774	1774	20 (Source: P.A. 91-452, eff. 1-1-00; 92-476, eff. 8-23-01.)
1775	1775	21 (205 ILCS 5/16.5)
1776	1776	22 Sec. 16.5. Employment of persons with convictions. Except
1777	1777	23 with the prior written consent of the Commissioner, no State
1778	1778	24 bank shall knowingly employ or otherwise permit an individual
1779	1779	25 to serve as an officer, director, employee, or agent of the
1780	1780
1781	1781
1782	1782
1783	1783
1784	1784
1785	1785	SB3726 - 49 - LRB103 38817 RTM 68954 b
1786	1786
1787	1787
1788	1788	SB3726- 50 -LRB103 38817 RTM 68954 b SB3726 - 50 - LRB103 38817 RTM 68954 b
1789	1789	SB3726 - 50 - LRB103 38817 RTM 68954 b
1790	1790	1 State bank if the individual has been convicted of a felony or
1791	1791	2 of any criminal offense relating to dishonesty or breach of
1792	1792	3 trust.
1793	1793	4 (Source: P.A. 90-301, eff. 8-1-97.)
1794	1794	5 (205 ILCS 5/20) (from Ch. 17, par. 327)
1795	1795	6 Sec. 20. Resulting national bank or insured savings
1796	1796	7 association. Nothing in this Act shall be construed to require
1797	1797	8 the approval of any Illinois State authority as a condition to
1798	1798	9 the right of a State bank, pursuant to the laws of the United
1799	1799	10 States or of this State, to be converted into a national bank
1800	1800	11 or insured savings association or to merge with an insured
1801	1801	12 savings association or with a national bank under a national
1802	1802	13 charter. The action to be taken by such merging or converting
1803	1803	14 State bank and its rights and liabilities and those of its
1804	1804	15 stockholders and of its dissenting stockholders shall be the
1805	1805	16 same as those prescribed for a State bank merging with, or
1806	1806	17 converting into, a national bank or insured savings
1807	1807	18 association that has received its charter from an agency of
1808	1808	19 the United States Government at the time of the action by the
1809	1809	20 law of the United States and not by the law of this State
1810	1810	21 unless the State bank merges with or converts to a savings and
1811	1811	22 loan association or savings bank chartered under the laws of
1812	1812	23 this State, except that an affirmative vote of the holders of
1813	1813	24 at least two-thirds of the outstanding shares of stock of a
1814	1814	25 State bank entitled to vote at a meeting called in conformity
1815	1815
1816	1816
1817	1817
1818	1818
1819	1819
1820	1820	SB3726 - 50 - LRB103 38817 RTM 68954 b
1821	1821
1822	1822
1823	1823	SB3726- 51 -LRB103 38817 RTM 68954 b SB3726 - 51 - LRB103 38817 RTM 68954 b
1824	1824	SB3726 - 51 - LRB103 38817 RTM 68954 b
1825	1825	1 with Section 23 shall be required for the merger or
1826	1826	2 conversion. Upon the completion of a merger or conversion,
1827	1827	3 resulting in a national bank or insured savings association,
1828	1828	4 the charter of any merging or converting State bank shall
1829	1829	5 automatically terminate. Approval by the Commissioner to
1830	1830	6 convert a State bank to a national bank or insured savings
1831	1831	7 association or to merge a State bank into a national bank or
1832	1832	8 insured savings association shall not be required under this
1833	1833	9 Act. However, any such converting or merging State bank shall
1834	1834	10 notify the Commissioner in writing of the proposed conversion
1835	1835	11 or merger not less than 30 days prior to such conversion or
1836	1836	12 merger and shall pay all accrued or outstanding assessments
1837	1837	13 pursuant to Section 48 of this Act as of the date of conversion
1838	1838	14 or merger.
1839	1839	15 (Source: P.A. 89-567, eff. 7-26-96.)
1840	1840	16 (205 ILCS 5/32.1) (from Ch. 17, par. 340)
1841	1841	17 Sec. 32.1. Loans to single individuals Single Females. No
1842	1842	18 State bank shall require that single individuals who have
1843	1843	19 reached the age of majority females to whom loans are made have
1844	1844	20 cosigners on promissory notes negotiated to secure such loans
1845	1845	21 unless such bank shall, under the same or similar
1846	1846	22 circumstances, also require that single males who have reached
1847	1847	23 the age of majority have cosigners on promissory notes
1848	1848	24 negotiated to secure loans.
1849	1849	25 (Source: P.A. 79-556.)
1850	1850
1851	1851
1852	1852
1853	1853
1854	1854
1855	1855	SB3726 - 51 - LRB103 38817 RTM 68954 b
1856	1856
1857	1857
1858	1858	SB3726- 52 -LRB103 38817 RTM 68954 b SB3726 - 52 - LRB103 38817 RTM 68954 b
1859	1859	SB3726 - 52 - LRB103 38817 RTM 68954 b
1860	1860	1 (205 ILCS 5/40) (from Ch. 17, par. 350)
1861	1861	2 Sec. 40. Prohibited activities. The Commissioner, deputy
1862	1862	3 commissioners, and employees of the Department of Financial
1863	1863	4 and Professional Regulation Office of Banks and Real Estate
1864	1864	5 shall be subject to the restrictions provided in Section 2.5
1865	1865	6 of the Division of Banking Act including, without limitation,
1866	1866	7 the restrictions on (i) owning shares of stock or holding any
1867	1867	8 other equity interest in an entity regulated under this Act or
1868	1868	9 in any corporation or company that owns or controls an entity
1869	1869	10 regulated under this Act; (ii) being an officer, director,
1870	1870	11 employee, or agent of an entity regulated under this Act; and
1871	1871	12 (iii) obtaining a loan or accepting a gratuity from an entity
1872	1872	13 regulated under this Act.
1873	1873	14 (Source: P.A. 96-1365, eff. 7-28-10.)
1874	1874	15 (205 ILCS 5/48)
1875	1875	16 Sec. 48. Secretary's powers; duties. The Secretary shall
1876	1876	17 have the powers and authority, and is charged with the duties
1877	1877	18 and responsibilities designated in this Act, and a State bank
1878	1878	19 shall not be subject to any other visitorial power other than
1879	1879	20 as authorized by this Act, except those vested in the courts,
1880	1880	21 or upon prior consultation with the Secretary, a foreign bank
1881	1881	22 regulator with an appropriate supervisory interest in the
1882	1882	23 parent or affiliate of a State bank. In the performance of the
1883	1883	24 Secretary's duties:
1884	1884
1885	1885
1886	1886
1887	1887
1888	1888
1889	1889	SB3726 - 52 - LRB103 38817 RTM 68954 b
1890	1890
1891	1891
1892	1892	SB3726- 53 -LRB103 38817 RTM 68954 b SB3726 - 53 - LRB103 38817 RTM 68954 b
1893	1893	SB3726 - 53 - LRB103 38817 RTM 68954 b
1894	1894	1 (1) The Commissioner shall call for statements from
1895	1895	2 all State banks as provided in Section 47 at least one time
1896	1896	3 during each calendar quarter.
1897	1897	4 (2) (a) The Commissioner, as often as the Commissioner
1898	1898	5 shall deem necessary or proper, and no less frequently
1899	1899	6 than 18 months following the preceding examination, shall
1900	1900	7 appoint a suitable person or persons to make an
1901	1901	8 examination of the affairs of every State bank, except
1902	1902	9 that for every eligible State bank, as defined by
1903	1903	10 regulation, the Commissioner in lieu of the examination
1904	1904	11 may accept on an alternating basis the examination made by
1905	1905	12 the eligible State bank's appropriate federal banking
1906	1906	13 agency pursuant to Section 111 of the Federal Deposit
1907	1907	14 Insurance Corporation Improvement Act of 1991, provided
1908	1908	15 the appropriate federal banking agency has made such an
1909	1909	16 examination. A person so appointed shall not be a
1910	1910	17 stockholder or officer or employee of any bank which that
1911	1911	18 person may be directed to examine, and shall have powers
1912	1912	19 to make a thorough examination into all the affairs of the
1913	1913	20 bank and in so doing to examine any of the officers or
1914	1914	21 agents or employees thereof on oath and shall make a full
1915	1915	22 and detailed report of the condition of the bank to the
1916	1916	23 Commissioner. In making the examination the examiners
1917	1917	24 shall include an examination of the affairs of all the
1918	1918	25 affiliates of the bank, as defined in subsection (b) of
1919	1919	26 Section 35.2 of this Act, or subsidiaries of the bank as
1920	1920
1921	1921
1922	1922
1923	1923
1924	1924
1925	1925	SB3726 - 53 - LRB103 38817 RTM 68954 b
1926	1926
1927	1927
1928	1928	SB3726- 54 -LRB103 38817 RTM 68954 b SB3726 - 54 - LRB103 38817 RTM 68954 b
1929	1929	SB3726 - 54 - LRB103 38817 RTM 68954 b
1930	1930	1 shall be necessary to disclose fully the conditions of the
1931	1931	2 subsidiaries or affiliates, the relations between the bank
1932	1932	3 and the subsidiaries or affiliates and the effect of those
1933	1933	4 relations upon the affairs of the bank, and in connection
1934	1934	5 therewith shall have power to examine any of the officers,
1935	1935	6 directors, agents, or employees of the subsidiaries or
1936	1936	7 affiliates on oath. After May 31, 1997, the Commissioner
1937	1937	8 may enter into cooperative agreements with state
1938	1938	9 regulatory authorities of other states to provide for
1939	1939	10 examination of State bank branches in those states, and
1940	1940	11 the Commissioner may accept reports of examinations of
1941	1941	12 State bank branches from those state regulatory
1942	1942	13 authorities. These cooperative agreements may set forth
1943	1943	14 the manner in which the other state regulatory authorities
1944	1944	15 may be compensated for examinations prepared for and
1945	1945	16 submitted to the Commissioner.
1946	1946	17 (b) After May 31, 1997, the Commissioner is authorized
1947	1947	18 to examine, as often as the Commissioner shall deem
1948	1948	19 necessary or proper, branches of out-of-state banks. The
1949	1949	20 Commissioner may establish and may assess fees to be paid
1950	1950	21 to the Commissioner for examinations under this subsection
1951	1951	22 (b). The fees shall be borne by the out-of-state bank,
1952	1952	23 unless the fees are borne by the state regulatory
1953	1953	24 authority that chartered the out-of-state bank, as
1954	1954	25 determined by a cooperative agreement between the
1955	1955	26 Commissioner and the state regulatory authority that
1956	1956
1957	1957
1958	1958
1959	1959
1960	1960
1961	1961	SB3726 - 54 - LRB103 38817 RTM 68954 b
1962	1962
1963	1963
1964	1964	SB3726- 55 -LRB103 38817 RTM 68954 b SB3726 - 55 - LRB103 38817 RTM 68954 b
1965	1965	SB3726 - 55 - LRB103 38817 RTM 68954 b
1966	1966	1 chartered the out-of-state bank.
1967	1967	2 (2.1) Pursuant to paragraph (a) of subsection (6) of
1968	1968	3 this Section, the Secretary shall adopt rules that ensure
1969	1969	4 consistency and due process in the examination process.
1970	1970	5 The Secretary may also establish guidelines that (i)
1971	1971	6 define the scope of the examination process and (ii)
1972	1972	7 clarify examination items to be resolved. The rules,
1973	1973	8 formal guidance, interpretive letters, or opinions
1974	1974	9 furnished to State banks by the Secretary may be relied
1975	1975	10 upon by the State banks.
1976	1976	11 (2.5) Whenever any State bank, any subsidiary or
1977	1977	12 affiliate of a State bank, or after May 31, 1997, any
1978	1978	13 branch of an out-of-state bank causes to be performed, by
1979	1979	14 contract or otherwise, any bank services for itself,
1980	1980	15 whether on or off its premises:
1981	1981	16 (a) that performance shall be subject to
1982	1982	17 examination by the Commissioner to the same extent as
1983	1983	18 if services were being performed by the bank or, after
1984	1984	19 May 31, 1997, branch of the out-of-state bank itself
1985	1985	20 on its own premises; and
1986	1986	21 (b) the bank or, after May 31, 1997, branch of the
1987	1987	22 out-of-state bank shall notify the Commissioner of the
1988	1988	23 existence of a service relationship. The notification
1989	1989	24 shall be submitted with the first statement of
1990	1990	25 condition (as required by Section 47 of this Act) due
1991	1991	26 after the making of the service contract or the
1992	1992
1993	1993
1994	1994
1995	1995
1996	1996
1997	1997	SB3726 - 55 - LRB103 38817 RTM 68954 b
1998	1998
1999	1999
2000	2000	SB3726- 56 -LRB103 38817 RTM 68954 b SB3726 - 56 - LRB103 38817 RTM 68954 b
2001	2001	SB3726 - 56 - LRB103 38817 RTM 68954 b
2002	2002	1 performance of the service, whichever occurs first.
2003	2003	2 The Commissioner shall be notified of each subsequent
2004	2004	3 contract in the same manner.
2005	2005	4 For purposes of this subsection (2.5), the term "bank
2006	2006	5 services" means services such as sorting and posting of
2007	2007	6 checks and deposits, computation and posting of interest
2008	2008	7 and other credits and charges, preparation and mailing of
2009	2009	8 checks, statements, notices, and similar items, or any
2010	2010	9 other clerical, bookkeeping, accounting, statistical, or
2011	2011	10 similar functions performed for a State bank, including,
2012	2012	11 but not limited to, electronic data processing related to
2013	2013	12 those bank services.
2014	2014	13 (3) The expense of administering this Act, including
2015	2015	14 the expense of the examinations of State banks as provided
2016	2016	15 in this Act, shall to the extent of the amounts resulting
2017	2017	16 from the fees provided for in paragraphs (a), (a-2), and
2018	2018	17 (b) of this subsection (3) be assessed against and borne
2019	2019	18 by the State banks:
2020	2020	19 (a) Each bank shall pay to the Secretary a Call
2021	2021	20 Report Fee which shall be paid in quarterly
2022	2022	21 installments equal to one-fourth of the sum of the
2023	2023	22 annual fixed fee of $800, plus a variable fee based on
2024	2024	23 the assets shown on the quarterly statement of
2025	2025	24 condition delivered to the Secretary in accordance
2026	2026	25 with Section 47 for the preceding quarter according to
2027	2027	26 the following schedule: 16 per $1,000 of the first
2028	2028
2029	2029
2030	2030
2031	2031
2032	2032
2033	2033	SB3726 - 56 - LRB103 38817 RTM 68954 b
2034	2034
2035	2035
2036	2036	SB3726- 57 -LRB103 38817 RTM 68954 b SB3726 - 57 - LRB103 38817 RTM 68954 b
2037	2037	SB3726 - 57 - LRB103 38817 RTM 68954 b
2038	2038	1 $5,000,000 of total assets, 15 per $1,000 of the next
2039	2039	2 $20,000,000 of total assets, 13 per $1,000 of the
2040	2040	3 next $75,000,000 of total assets, 9 per $1,000 of the
2041	2041	4 next $400,000,000 of total assets, 7 per $1,000 of
2042	2042	5 the next $500,000,000 of total assets, and 5 per
2043	2043	6 $1,000 of all assets in excess of $1,000,000,000, of
2044	2044	7 the State bank. The Call Report Fee shall be
2045	2045	8 calculated by the Secretary and billed to the banks
2046	2046	9 for remittance at the time of the quarterly statements
2047	2047	10 of condition provided for in Section 47. The Secretary
2048	2048	11 may require payment of the fees provided in this
2049	2049	12 Section by an electronic transfer of funds or an
2050	2050	13 automatic debit of an account of each of the State
2051	2051	14 banks. In case more than one examination of any bank is
2052	2052	15 deemed by the Secretary to be necessary in any
2053	2053	16 examination frequency cycle specified in subsection
2054	2054	17 2(a) of this Section, and is performed at his
2055	2055	18 direction, the Secretary may assess a reasonable
2056	2056	19 additional fee to recover the cost of the additional
2057	2057	20 examination. In lieu of the method and amounts set
2058	2058	21 forth in this paragraph (a) for the calculation of the
2059	2059	22 Call Report Fee, the Secretary may specify by rule
2060	2060	23 that the Call Report Fees provided by this Section may
2061	2061	24 be assessed semiannually or some other period and may
2062	2062	25 provide in the rule the formula to be used for
2063	2063	26 calculating and assessing the periodic Call Report
2064	2064
2065	2065
2066	2066
2067	2067
2068	2068
2069	2069	SB3726 - 57 - LRB103 38817 RTM 68954 b
2070	2070
2071	2071
2072	2072	SB3726- 58 -LRB103 38817 RTM 68954 b SB3726 - 58 - LRB103 38817 RTM 68954 b
2073	2073	SB3726 - 58 - LRB103 38817 RTM 68954 b
2074	2074	1 Fees to be paid by State banks.
2075	2075	2 (a-1) If in the opinion of the Commissioner an
2076	2076	3 emergency exists or appears likely, the Commissioner
2077	2077	4 may assign an examiner or examiners to monitor the
2078	2078	5 affairs of a State bank with whatever frequency he
2079	2079	6 deems appropriate, including, but not limited to, a
2080	2080	7 daily basis. The reasonable and necessary expenses of
2081	2081	8 the Commissioner during the period of the monitoring
2082	2082	9 shall be borne by the subject bank. The Commissioner
2083	2083	10 shall furnish the State bank a statement of time and
2084	2084	11 expenses if requested to do so within 30 days of the
2085	2085	12 conclusion of the monitoring period.
2086	2086	13 (a-2) On and after January 1, 1990, the reasonable
2087	2087	14 and necessary expenses of the Commissioner during
2088	2088	15 examination of the performance of electronic data
2089	2089	16 processing services under subsection (2.5) shall be
2090	2090	17 borne by the banks for which the services are
2091	2091	18 provided. An amount, based upon a fee structure
2092	2092	19 prescribed by the Commissioner, shall be paid by the
2093	2093	20 banks or, after May 31, 1997, branches of out-of-state
2094	2094	21 banks receiving the electronic data processing
2095	2095	22 services along with the Call Report Fee assessed under
2096	2096	23 paragraph (a) of this subsection (3).
2097	2097	24 (a-3) After May 31, 1997, the reasonable and
2098	2098	25 necessary expenses of the Commissioner during
2099	2099	26 examination of the performance of electronic data
2100	2100
2101	2101
2102	2102
2103	2103
2104	2104
2105	2105	SB3726 - 58 - LRB103 38817 RTM 68954 b
2106	2106
2107	2107
2108	2108	SB3726- 59 -LRB103 38817 RTM 68954 b SB3726 - 59 - LRB103 38817 RTM 68954 b
2109	2109	SB3726 - 59 - LRB103 38817 RTM 68954 b
2110	2110	1 processing services under subsection (2.5) at or on
2111	2111	2 behalf of branches of out-of-state banks shall be
2112	2112	3 borne by the out-of-state banks, unless those expenses
2113	2113	4 are borne by the state regulatory authorities that
2114	2114	5 chartered the out-of-state banks, as determined by
2115	2115	6 cooperative agreements between the Commissioner and
2116	2116	7 the state regulatory authorities that chartered the
2117	2117	8 out-of-state banks.
2118	2118	9 (b) "Fiscal year" for purposes of this Section 48
2119	2119	10 is defined as a period beginning July 1 of any year and
2120	2120	11 ending June 30 of the next year. The Commissioner
2121	2121	12 shall receive for each fiscal year, commencing with
2122	2122	13 the fiscal year ending June 30, 1987, a contingent fee
2123	2123	14 equal to the lesser of the aggregate of the fees paid
2124	2124	15 by all State banks under paragraph (a) of subsection
2125	2125	16 (3) for that year, or the amount, if any, whereby the
2126	2126	17 aggregate of the administration expenses, as defined
2127	2127	18 in paragraph (c), for that fiscal year exceeds the sum
2128	2128	19 of the aggregate of the fees payable by all State banks
2129	2129	20 for that year under paragraph (a) of subsection (3),
2130	2130	21 plus any amounts transferred into the Bank and Trust
2131	2131	22 Company Fund from the State Pensions Fund for that
2132	2132	23 year, plus all other amounts collected by the
2133	2133	24 Commissioner for that year under any other provision
2134	2134	25 of this Act, plus the aggregate of all fees collected
2135	2135	26 for that year by the Commissioner under the Corporate
2136	2136
2137	2137
2138	2138
2139	2139
2140	2140
2141	2141	SB3726 - 59 - LRB103 38817 RTM 68954 b
2142	2142
2143	2143
2144	2144	SB3726- 60 -LRB103 38817 RTM 68954 b SB3726 - 60 - LRB103 38817 RTM 68954 b
2145	2145	SB3726 - 60 - LRB103 38817 RTM 68954 b
2146	2146	1 Fiduciary Act, excluding the receivership fees
2147	2147	2 provided for in Section 5-10 of the Corporate
2148	2148	3 Fiduciary Act, and the Foreign Banking Office Act. The
2149	2149	4 aggregate amount of the contingent fee thus arrived at
2150	2150	5 for any fiscal year shall be apportioned among,
2151	2151	6 assessed upon, and paid by the State banks and foreign
2152	2152	7 banking corporations, respectively, in the same
2153	2153	8 proportion that the fee of each under paragraph (a) of
2154	2154	9 subsection (3), respectively, for that year bears to
2155	2155	10 the aggregate for that year of the fees collected
2156	2156	11 under paragraph (a) of subsection (3). The aggregate
2157	2157	12 amount of the contingent fee, and the portion thereof
2158	2158	13 to be assessed upon each State bank and foreign
2159	2159	14 banking corporation, respectively, shall be determined
2160	2160	15 by the Commissioner and shall be paid by each,
2161	2161	16 respectively, within 120 days of the close of the
2162	2162	17 period for which the contingent fee is computed and is
2163	2163	18 payable, and the Commissioner shall give 20 days'
2164	2164	19 advance notice of the amount of the contingent fee
2165	2165	20 payable by the State bank and of the date fixed by the
2166	2166	21 Commissioner for payment of the fee.
2167	2167	22 (c) The "administration expenses" for any fiscal
2168	2168	23 year shall mean the ordinary and contingent expenses
2169	2169	24 for that year incident to making the examinations
2170	2170	25 provided for by, and for otherwise administering, this
2171	2171	26 Act, the Corporate Fiduciary Act, excluding the
2172	2172
2173	2173
2174	2174
2175	2175
2176	2176
2177	2177	SB3726 - 60 - LRB103 38817 RTM 68954 b
2178	2178
2179	2179
2180	2180	SB3726- 61 -LRB103 38817 RTM 68954 b SB3726 - 61 - LRB103 38817 RTM 68954 b
2181	2181	SB3726 - 61 - LRB103 38817 RTM 68954 b
2182	2182	1 expenses paid from the Corporate Fiduciary
2183	2183	2 Receivership account in the Bank and Trust Company
2184	2184	3 Fund, the Foreign Banking Office Act, the Electronic
2185	2185	4 Fund Transfer Act, and the Illinois Bank Examiners'
2186	2186	5 Education Foundation Act, including all salaries and
2187	2187	6 other compensation paid for personal services rendered
2188	2188	7 for the State by officers or employees of the State,
2189	2189	8 including the Commissioner and the Deputy
2190	2190	9 Commissioners, communication equipment and services,
2191	2191	10 office furnishings, surety bond premiums, and travel
2192	2192	11 expenses of those officers and employees, employees,
2193	2193	12 expenditures or charges for the acquisition,
2194	2194	13 enlargement or improvement of, or for the use of, any
2195	2195	14 office space, building, or structure, or expenditures
2196	2196	15 for the maintenance thereof or for furnishing heat,
2197	2197	16 light, or power with respect thereto, all to the
2198	2198	17 extent that those expenditures are directly incidental
2199	2199	18 to such examinations or administration. The
2200	2200	19 Commissioner shall not be required by paragraph (c) or
2201	2201	20 (d-1) of this subsection (3) to maintain in any fiscal
2202	2202	21 year's budget appropriated reserves for accrued
2203	2203	22 vacation and accrued sick leave that is required to be
2204	2204	23 paid to employees of the Commissioner upon termination
2205	2205	24 of their service with the Commissioner in an amount
2206	2206	25 that is more than is reasonably anticipated to be
2207	2207	26 necessary for any anticipated turnover in employees,
2208	2208
2209	2209
2210	2210
2211	2211
2212	2212
2213	2213	SB3726 - 61 - LRB103 38817 RTM 68954 b
2214	2214
2215	2215
2216	2216	SB3726- 62 -LRB103 38817 RTM 68954 b SB3726 - 62 - LRB103 38817 RTM 68954 b
2217	2217	SB3726 - 62 - LRB103 38817 RTM 68954 b
2218	2218	1 whether due to normal attrition or due to layoffs,
2219	2219	2 terminations, or resignations.
2220	2220	3 (d) The aggregate of all fees collected by the
2221	2221	4 Secretary under this Act, the Corporate Fiduciary Act,
2222	2222	5 or the Foreign Banking Office Act on and after July 1,
2223	2223	6 1979, shall be paid promptly after receipt of the
2224	2224	7 same, accompanied by a detailed statement thereof,
2225	2225	8 into the State treasury and shall be set apart in a
2226	2226	9 special fund to be known as the Bank and Trust Company
2227	2227	10 Fund, except as provided in paragraph (c) of
2228	2228	11 subsection (11) of this Section. All earnings received
2229	2229	12 from investments of funds in the Bank and Trust
2230	2230	13 Company Fund shall be deposited into the Bank and
2231	2231	14 Trust Company Fund and may be used for the same
2232	2232	15 purposes as fees deposited into that Fund. The amount
2233	2233	16 from time to time deposited into the Bank and Trust
2234	2234	17 Company Fund shall be used: (i) to offset the ordinary
2235	2235	18 administrative expenses of the Secretary as defined in
2236	2236	19 this Section or (ii) as a credit against fees under
2237	2237	20 paragraph (d-1) of this subsection (3). Nothing in
2238	2238	21 Public Act 81-131 shall prevent continuing the
2239	2239	22 practice of paying expenses involving salaries,
2240	2240	23 retirement, social security, and State-paid insurance
2241	2241	24 premiums of State officers by appropriations from the
2242	2242	25 General Revenue Fund. However, the General Revenue
2243	2243	26 Fund shall be reimbursed for those payments made on
2244	2244
2245	2245
2246	2246
2247	2247
2248	2248
2249	2249	SB3726 - 62 - LRB103 38817 RTM 68954 b
2250	2250
2251	2251
2252	2252	SB3726- 63 -LRB103 38817 RTM 68954 b SB3726 - 63 - LRB103 38817 RTM 68954 b
2253	2253	SB3726 - 63 - LRB103 38817 RTM 68954 b
2254	2254	1 and after July 1, 1979, by an annual transfer of funds
2255	2255	2 from the Bank and Trust Company Fund. Moneys in the
2256	2256	3 Bank and Trust Company Fund may be transferred to the
2257	2257	4 Professions Indirect Cost Fund, as authorized under
2258	2258	5 Section 2105-300 of the Department of Professional
2259	2259	6 Regulation Law of the Civil Administrative Code of
2260	2260	7 Illinois.
2261	2261	8 Notwithstanding provisions in the State Finance
2262	2262	9 Act, as now or hereafter amended, or any other law to
2263	2263	10 the contrary, the Governor may, during any fiscal year
2264	2264	11 through January 10, 2011, from time to time direct the
2265	2265	12 State Treasurer and Comptroller to transfer a
2266	2266	13 specified sum not exceeding 10% of the revenues to be
2267	2267	14 deposited into the Bank and Trust Company Fund during
2268	2268	15 that fiscal year from that Fund to the General Revenue
2269	2269	16 Fund in order to help defray the State's operating
2270	2270	17 costs for the fiscal year. Notwithstanding provisions
2271	2271	18 in the State Finance Act, as now or hereafter amended,
2272	2272	19 or any other law to the contrary, the total sum
2273	2273	20 transferred during any fiscal year through January 10,
2274	2274	21 2011, from the Bank and Trust Company Fund to the
2275	2275	22 General Revenue Fund pursuant to this provision shall
2276	2276	23 not exceed during any fiscal year 10% of the revenues
2277	2277	24 to be deposited into the Bank and Trust Company Fund
2278	2278	25 during that fiscal year. The State Treasurer and
2279	2279	26 Comptroller shall transfer the amounts designated
2280	2280
2281	2281
2282	2282
2283	2283
2284	2284
2285	2285	SB3726 - 63 - LRB103 38817 RTM 68954 b
2286	2286
2287	2287
2288	2288	SB3726- 64 -LRB103 38817 RTM 68954 b SB3726 - 64 - LRB103 38817 RTM 68954 b
2289	2289	SB3726 - 64 - LRB103 38817 RTM 68954 b
2290	2290	1 under this Section as soon as may be practicable after
2291	2291	2 receiving the direction to transfer from the Governor.
2292	2292	3 (d-1) Adequate funds shall be available in the
2293	2293	4 Bank and Trust Company Fund to permit the timely
2294	2294	5 payment of administration expenses. In each fiscal
2295	2295	6 year the total administration expenses shall be
2296	2296	7 deducted from the total fees collected by the
2297	2297	8 Commissioner and the remainder transferred into the
2298	2298	9 Cash Flow Reserve Account, unless the balance of the
2299	2299	10 Cash Flow Reserve Account prior to the transfer equals
2300	2300	11 or exceeds one-fourth of the total initial
2301	2301	12 appropriations from the Bank and Trust Company Fund
2302	2302	13 for the subsequent year, in which case the remainder
2303	2303	14 shall be credited to State banks and foreign banking
2304	2304	15 corporations and applied against their fees for the
2305	2305	16 subsequent year. The amount credited to each State
2306	2306	17 bank and foreign banking corporation shall be in the
2307	2307	18 same proportion as the Call Report Fees paid by each
2308	2308	19 for the year bear to the total Call Report Fees
2309	2309	20 collected for the year. If, after a transfer to the
2310	2310	21 Cash Flow Reserve Account is made or if no remainder is
2311	2311	22 available for transfer, the balance of the Cash Flow
2312	2312	23 Reserve Account is less than one-fourth of the total
2313	2313	24 initial appropriations for the subsequent year and the
2314	2314	25 amount transferred is less than 5% of the total Call
2315	2315	26 Report Fees for the year, additional amounts needed to
2316	2316
2317	2317
2318	2318
2319	2319
2320	2320
2321	2321	SB3726 - 64 - LRB103 38817 RTM 68954 b
2322	2322
2323	2323
2324	2324	SB3726- 65 -LRB103 38817 RTM 68954 b SB3726 - 65 - LRB103 38817 RTM 68954 b
2325	2325	SB3726 - 65 - LRB103 38817 RTM 68954 b
2326	2326	1 make the transfer equal to 5% of the total Call Report
2327	2327	2 Fees for the year shall be apportioned among, assessed
2328	2328	3 upon, and paid by the State banks and foreign banking
2329	2329	4 corporations in the same proportion that the Call
2330	2330	5 Report Fees of each, respectively, for the year bear
2331	2331	6 to the total Call Report Fees collected for the year.
2332	2332	7 The additional amounts assessed shall be transferred
2333	2333	8 into the Cash Flow Reserve Account. For purposes of
2334	2334	9 this paragraph (d-1), the calculation of the fees
2335	2335	10 collected by the Commissioner shall exclude the
2336	2336	11 receivership fees provided for in Section 5-10 of the
2337	2337	12 Corporate Fiduciary Act.
2338	2338	13 (e) The Commissioner may upon request certify to
2339	2339	14 any public record in his keeping and shall have
2340	2340	15 authority to levy a reasonable charge for issuing
2341	2341	16 certifications of any public record in his keeping.
2342	2342	17 (f) In addition to fees authorized elsewhere in
2343	2343	18 this Act, the Commissioner may, in connection with a
2344	2344	19 review, approval, or provision of a service, levy a
2345	2345	20 reasonable charge to recover the cost of the review,
2346	2346	21 approval, or service.
2347	2347	22 (4) Nothing contained in this Act shall be construed
2348	2348	23 to limit the obligation relative to examinations and
2349	2349	24 reports of any State bank, deposits in which are to any
2350	2350	25 extent insured by the United States or any agency thereof,
2351	2351	26 nor to limit in any way the powers of the Commissioner with
2352	2352
2353	2353
2354	2354
2355	2355
2356	2356
2357	2357	SB3726 - 65 - LRB103 38817 RTM 68954 b
2358	2358
2359	2359
2360	2360	SB3726- 66 -LRB103 38817 RTM 68954 b SB3726 - 66 - LRB103 38817 RTM 68954 b
2361	2361	SB3726 - 66 - LRB103 38817 RTM 68954 b
2362	2362	1 reference to examinations and reports of that bank.
2363	2363	2 (5) The nature and condition of the assets in or
2364	2364	3 investment of any bonus, pension, or profit sharing plan
2365	2365	4 for officers or employees of every State bank or, after
2366	2366	5 May 31, 1997, branch of an out-of-state bank shall be
2367	2367	6 deemed to be included in the affairs of that State bank or
2368	2368	7 branch of an out-of-state bank subject to examination by
2369	2369	8 the Commissioner under the provisions of subsection (2) of
2370	2370	9 this Section, and if the Commissioner shall find from an
2371	2371	10 examination that the condition of or operation of the
2372	2372	11 investments or assets of the plan is unlawful, fraudulent,
2373	2373	12 or unsafe, or that any trustee has abused his trust, the
2374	2374	13 Commissioner shall, if the situation so found by the
2375	2375	14 Commissioner shall not be corrected to his satisfaction
2376	2376	15 within 60 days after the Commissioner has given notice to
2377	2377	16 the board of directors of the State bank or out-of-state
2378	2378	17 bank of his findings, report the facts to the Attorney
2379	2379	18 General who shall thereupon institute proceedings against
2380	2380	19 the State bank or out-of-state bank, the board of
2381	2381	20 directors thereof, or the trustees under such plan as the
2382	2382	21 nature of the case may require.
2383	2383	22 (6) The Commissioner shall have the power:
2384	2384	23 (a) To promulgate reasonable rules for the purpose
2385	2385	24 of administering the provisions of this Act.
2386	2386	25 (a-5) To impose conditions on any approval issued
2387	2387	26 by the Commissioner if he determines that the
2388	2388
2389	2389
2390	2390
2391	2391
2392	2392
2393	2393	SB3726 - 66 - LRB103 38817 RTM 68954 b
2394	2394
2395	2395
2396	2396	SB3726- 67 -LRB103 38817 RTM 68954 b SB3726 - 67 - LRB103 38817 RTM 68954 b
2397	2397	SB3726 - 67 - LRB103 38817 RTM 68954 b
2398	2398	1 conditions are necessary or appropriate. These
2399	2399	2 conditions shall be imposed in writing and shall
2400	2400	3 continue in effect for the period prescribed by the
2401	2401	4 Commissioner.
2402	2402	5 (b) To issue orders against any person, if the
2403	2403	6 Commissioner has reasonable cause to believe that an
2404	2404	7 unsafe or unsound banking practice has occurred, is
2405	2405	8 occurring, or is about to occur, if any person has
2406	2406	9 violated, is violating, or is about to violate any
2407	2407	10 law, rule, or written agreement with the Commissioner,
2408	2408	11 or for the purpose of administering the provisions of
2409	2409	12 this Act and any rule promulgated in accordance with
2410	2410	13 this Act.
2411	2411	14 (b-1) To enter into agreements with a bank
2412	2412	15 establishing a program to correct the condition of the
2413	2413	16 bank or its practices.
2414	2414	17 (c) To appoint hearing officers to execute any of
2415	2415	18 the powers granted to the Commissioner under this
2416	2416	19 Section for the purpose of administering this Act and
2417	2417	20 any rule promulgated in accordance with this Act and
2418	2418	21 otherwise to authorize, in writing, an officer or
2419	2419	22 employee of the Department of Financial and
2420	2420	23 Professional Regulation Office of Banks and Real
2421	2421	24 Estate to exercise his powers under this Act.
2422	2422	25 (d) To subpoena witnesses, to compel their
2423	2423	26 attendance, to administer an oath, to examine any
2424	2424
2425	2425
2426	2426
2427	2427
2428	2428
2429	2429	SB3726 - 67 - LRB103 38817 RTM 68954 b
2430	2430
2431	2431
2432	2432	SB3726- 68 -LRB103 38817 RTM 68954 b SB3726 - 68 - LRB103 38817 RTM 68954 b
2433	2433	SB3726 - 68 - LRB103 38817 RTM 68954 b
2434	2434	1 person under oath, and to require the production of
2435	2435	2 any relevant books, papers, accounts, and documents in
2436	2436	3 the course of and pursuant to any investigation being
2437	2437	4 conducted, or any action being taken, by the
2438	2438	5 Commissioner in respect of any matter relating to the
2439	2439	6 duties imposed upon, or the powers vested in, the
2440	2440	7 Commissioner under the provisions of this Act or any
2441	2441	8 rule promulgated in accordance with this Act.
2442	2442	9 (e) To conduct hearings.
2443	2443	10 (7) Whenever, in the opinion of the Secretary, any
2444	2444	11 director, officer, employee, or agent of a State bank or
2445	2445	12 any subsidiary or bank holding company of the bank or,
2446	2446	13 after May 31, 1997, of any branch of an out-of-state bank
2447	2447	14 or any subsidiary or bank holding company of the bank
2448	2448	15 shall have violated any law, rule, or order relating to
2449	2449	16 that bank or any subsidiary or bank holding company of the
2450	2450	17 bank, shall have obstructed or impeded any examination or
2451	2451	18 investigation by the Secretary, shall have engaged in an
2452	2452	19 unsafe or unsound practice in conducting the business of
2453	2453	20 that bank or any subsidiary or bank holding company of the
2454	2454	21 bank, or shall have violated any law or engaged or
2455	2455	22 participated in any unsafe or unsound practice in
2456	2456	23 connection with any financial institution or other
2457	2457	24 business entity such that the character and fitness of the
2458	2458	25 director, officer, employee, or agent does not assure
2459	2459	26 reasonable promise of safe and sound operation of the
2460	2460
2461	2461
2462	2462
2463	2463
2464	2464
2465	2465	SB3726 - 68 - LRB103 38817 RTM 68954 b
2466	2466
2467	2467
2468	2468	SB3726- 69 -LRB103 38817 RTM 68954 b SB3726 - 69 - LRB103 38817 RTM 68954 b
2469	2469	SB3726 - 69 - LRB103 38817 RTM 68954 b
2470	2470	1 State bank, the Secretary may issue an order of removal.
2471	2471	2 If, in the opinion of the Secretary, any former director,
2472	2472	3 officer, employee, or agent of a State bank or any
2473	2473	4 subsidiary or bank holding company of the bank, prior to
2474	2474	5 the termination of his or her service with that bank or any
2475	2475	6 subsidiary or bank holding company of the bank, violated
2476	2476	7 any law, rule, or order relating to that State bank or any
2477	2477	8 subsidiary or bank holding company of the bank, obstructed
2478	2478	9 or impeded any examination or investigation by the
2479	2479	10 Secretary, engaged in an unsafe or unsound practice in
2480	2480	11 conducting the business of that bank or any subsidiary or
2481	2481	12 bank holding company of the bank, or violated any law or
2482	2482	13 engaged or participated in any unsafe or unsound practice
2483	2483	14 in connection with any financial institution or other
2484	2484	15 business entity such that the character and fitness of the
2485	2485	16 director, officer, employee, or agent would not have
2486	2486	17 assured reasonable promise of safe and sound operation of
2487	2487	18 the State bank, the Secretary may issue an order
2488	2488	19 prohibiting that person from further service with a bank
2489	2489	20 or any subsidiary or bank holding company of the bank as a
2490	2490	21 director, officer, employee, or agent. An order issued
2491	2491	22 pursuant to this subsection shall be served upon the
2492	2492	23 director, officer, employee, or agent. A copy of the order
2493	2493	24 shall be sent to each director of the bank affected by
2494	2494	25 registered mail. A copy of the order shall also be served
2495	2495	26 upon the bank of which he is a director, officer,
2496	2496
2497	2497
2498	2498
2499	2499
2500	2500
2501	2501	SB3726 - 69 - LRB103 38817 RTM 68954 b
2502	2502
2503	2503
2504	2504	SB3726- 70 -LRB103 38817 RTM 68954 b SB3726 - 70 - LRB103 38817 RTM 68954 b
2505	2505	SB3726 - 70 - LRB103 38817 RTM 68954 b
2506	2506	1 employee, or agent, whereupon he shall cease to be a
2507	2507	2 director, officer, employee, or agent of that bank. The
2508	2508	3 Secretary may institute a civil action against the
2509	2509	4 director, officer, or agent of the State bank or, after
2510	2510	5 May 31, 1997, of the branch of the out-of-state bank
2511	2511	6 against whom any order provided for by this subsection (7)
2512	2512	7 of this Section 48 has been issued, and against the State
2513	2513	8 bank or, after May 31, 1997, out-of-state bank, to enforce
2514	2514	9 compliance with or to enjoin any violation of the terms of
2515	2515	10 the order. Any person who has been the subject of an order
2516	2516	11 of removal or an order of prohibition issued by the
2517	2517	12 Secretary under this subsection or Section 5-6 of the
2518	2518	13 Corporate Fiduciary Act may not thereafter serve as
2519	2519	14 director, officer, employee, or agent of any State bank or
2520	2520	15 of any branch of any out-of-state bank, or of any
2521	2521	16 corporate fiduciary, as defined in Section 1-5.05 of the
2522	2522	17 Corporate Fiduciary Act, or of any other entity that is
2523	2523	18 subject to licensure or regulation by the Division of
2524	2524	19 Banking unless the Secretary has granted prior approval in
2525	2525	20 writing.
2526	2526	21 For purposes of this paragraph (7), "bank holding
2527	2527	22 company" has the meaning prescribed in Section 2 of the
2528	2528	23 Illinois Bank Holding Company Act of 1957.
2529	2529	24 (7.5) Notwithstanding the provisions of this Section,
2530	2530	25 the Secretary shall not:
2531	2531	26 (1) issue an order against a State bank or any
2532	2532
2533	2533
2534	2534
2535	2535
2536	2536
2537	2537	SB3726 - 70 - LRB103 38817 RTM 68954 b
2538	2538
2539	2539
2540	2540	SB3726- 71 -LRB103 38817 RTM 68954 b SB3726 - 71 - LRB103 38817 RTM 68954 b
2541	2541	SB3726 - 71 - LRB103 38817 RTM 68954 b
2542	2542	1 subsidiary organized under this Act for unsafe or
2543	2543	2 unsound banking practices solely because the entity
2544	2544	3 provides or has provided financial services to a
2545	2545	4 cannabis-related legitimate business;
2546	2546	5 (2) prohibit, penalize, or otherwise discourage a
2547	2547	6 State bank or any subsidiary from providing financial
2548	2548	7 services to a cannabis-related legitimate business
2549	2549	8 solely because the entity provides or has provided
2550	2550	9 financial services to a cannabis-related legitimate
2551	2551	10 business;
2552	2552	11 (3) recommend, incentivize, or encourage a State
2553	2553	12 bank or any subsidiary not to offer financial services
2554	2554	13 to an account holder or to downgrade or cancel the
2555	2555	14 financial services offered to an account holder solely
2556	2556	15 because:
2557	2557	16 (A) the account holder is a manufacturer or
2558	2558	17 producer, or is the owner, operator, or employee
2559	2559	18 of a cannabis-related legitimate business;
2560	2560	19 (B) the account holder later becomes an owner
2561	2561	20 or operator of a cannabis-related legitimate
2562	2562	21 business; or
2563	2563	22 (C) the State bank or any subsidiary was not
2564	2564	23 aware that the account holder is the owner or
2565	2565	24 operator of a cannabis-related legitimate
2566	2566	25 business; and
2567	2567	26 (4) take any adverse or corrective supervisory
2568	2568
2569	2569
2570	2570
2571	2571
2572	2572
2573	2573	SB3726 - 71 - LRB103 38817 RTM 68954 b
2574	2574
2575	2575
2576	2576	SB3726- 72 -LRB103 38817 RTM 68954 b SB3726 - 72 - LRB103 38817 RTM 68954 b
2577	2577	SB3726 - 72 - LRB103 38817 RTM 68954 b
2578	2578	1 action on a loan made to an owner or operator of:
2579	2579	2 (A) a cannabis-related legitimate business
2580	2580	3 solely because the owner or operator owns or
2581	2581	4 operates a cannabis-related legitimate business;
2582	2582	5 or
2583	2583	6 (B) real estate or equipment that is leased to
2584	2584	7 a cannabis-related legitimate business solely
2585	2585	8 because the owner or operator of the real estate
2586	2586	9 or equipment leased the equipment or real estate
2587	2587	10 to a cannabis-related legitimate business.
2588	2588	11 (8) The Commissioner may impose civil penalties of up
2589	2589	12 to $100,000 against any person for each violation of any
2590	2590	13 provision of this Act, any rule promulgated in accordance
2591	2591	14 with this Act, any order of the Commissioner, or any other
2592	2592	15 action which in the Commissioner's discretion is an unsafe
2593	2593	16 or unsound banking practice.
2594	2594	17 (9) The Commissioner may impose civil penalties of up
2595	2595	18 to $100 against any person for the first failure to comply
2596	2596	19 with reporting requirements set forth in the report of
2597	2597	20 examination of the bank and up to $200 for the second and
2598	2598	21 subsequent failures to comply with those reporting
2599	2599	22 requirements.
2600	2600	23 (10) All final administrative decisions of the
2601	2601	24 Commissioner hereunder shall be subject to judicial review
2602	2602	25 pursuant to the provisions of the Administrative Review
2603	2603	26 Law. For matters involving administrative review, venue
2604	2604
2605	2605
2606	2606
2607	2607
2608	2608
2609	2609	SB3726 - 72 - LRB103 38817 RTM 68954 b
2610	2610
2611	2611
2612	2612	SB3726- 73 -LRB103 38817 RTM 68954 b SB3726 - 73 - LRB103 38817 RTM 68954 b
2613	2613	SB3726 - 73 - LRB103 38817 RTM 68954 b
2614	2614	1 shall be in either Sangamon County or Cook County.
2615	2615	2 (11) The endowment fund for the Illinois Bank
2616	2616	3 Examiners' Education Foundation shall be administered as
2617	2617	4 follows:
2618	2618	5 (a) (Blank).
2619	2619	6 (b) The Foundation is empowered to receive
2620	2620	7 voluntary contributions, gifts, grants, bequests, and
2621	2621	8 donations on behalf of the Illinois Bank Examiners'
2622	2622	9 Education Foundation from national banks and other
2623	2623	10 persons for the purpose of funding the endowment of
2624	2624	11 the Illinois Bank Examiners' Education Foundation.
2625	2625	12 (c) The aggregate of all special educational fees
2626	2626	13 collected by the Secretary and property received by
2627	2627	14 the Secretary on behalf of the Illinois Bank
2628	2628	15 Examiners' Education Foundation under this subsection
2629	2629	16 (11) on or after June 30, 1986, shall be either (i)
2630	2630	17 promptly paid after receipt of the same, accompanied
2631	2631	18 by a detailed statement thereof, into the State
2632	2632	19 treasury and shall be set apart in a special fund to be
2633	2633	20 known as the Illinois Bank Examiners' Education Fund
2634	2634	21 to be invested by either the Treasurer of the State of
2635	2635	22 Illinois in the Public Treasurers' Investment Pool or
2636	2636	23 in any other investment he is authorized to make or by
2637	2637	24 the Illinois State Board of Investment as the State
2638	2638	25 Banking Board of Illinois may direct or (ii) deposited
2639	2639	26 into an account maintained in a commercial bank or
2640	2640
2641	2641
2642	2642
2643	2643
2644	2644
2645	2645	SB3726 - 73 - LRB103 38817 RTM 68954 b
2646	2646
2647	2647
2648	2648	SB3726- 74 -LRB103 38817 RTM 68954 b SB3726 - 74 - LRB103 38817 RTM 68954 b
2649	2649	SB3726 - 74 - LRB103 38817 RTM 68954 b
2650	2650	1 corporate fiduciary in the name of the Illinois Bank
2651	2651	2 Examiners' Education Foundation pursuant to the order
2652	2652	3 and direction of the Board of Trustees of the Illinois
2653	2653	4 Bank Examiners' Education Foundation.
2654	2654	5 (12) (Blank).
2655	2655	6 (13) The Secretary may borrow funds from the General
2656	2656	7 Revenue Fund on behalf of the Bank and Trust Company Fund
2657	2657	8 if the Director of Banking certifies to the Governor that
2658	2658	9 there is an economic emergency affecting banking that
2659	2659	10 requires a borrowing to provide additional funds to the
2660	2660	11 Bank and Trust Company Fund. The borrowed funds shall be
2661	2661	12 paid back within 3 years and shall not exceed the total
2662	2662	13 funding appropriated to the Agency in the previous year.
2663	2663	14 (14) In addition to the fees authorized in this Act,
2664	2664	15 the Secretary may assess reasonable receivership fees
2665	2665	16 against any State bank that does not maintain insurance
2666	2666	17 with the Federal Deposit Insurance Corporation. All fees
2667	2667	18 collected under this subsection (14) shall be paid into
2668	2668	19 the Non-insured Institutions Receivership account in the
2669	2669	20 Bank and Trust Company Fund, as established by the
2670	2670	21 Secretary. The fees assessed under this subsection (14)
2671	2671	22 shall provide for the expenses that arise from the
2672	2672	23 administration of the receivership of any such institution
2673	2673	24 required to pay into the Non-insured Institutions
2674	2674	25 Receivership account, whether pursuant to this Act, the
2675	2675	26 Corporate Fiduciary Act, the Foreign Banking Office Act,
2676	2676
2677	2677
2678	2678
2679	2679
2680	2680
2681	2681	SB3726 - 74 - LRB103 38817 RTM 68954 b
2682	2682
2683	2683
2684	2684	SB3726- 75 -LRB103 38817 RTM 68954 b SB3726 - 75 - LRB103 38817 RTM 68954 b
2685	2685	SB3726 - 75 - LRB103 38817 RTM 68954 b
2686	2686	1 or any other Act that requires payments into the
2687	2687	2 Non-insured Institutions Receivership account. The
2688	2688	3 Secretary may establish by rule a reasonable manner of
2689	2689	4 assessing fees under this subsection (14).
2690	2690	5 (Source: P.A. 102-558, eff. 8-20-21; 103-154, eff. 6-30-23.)
2691	2691	6 (205 ILCS 5/48.1) (from Ch. 17, par. 360)
2692	2692	7 Sec. 48.1. Customer financial records; confidentiality.
2693	2693	8 (a) For the purpose of this Section, the term "financial
2694	2694	9 records" means any original, any copy, or any summary of:
2695	2695	10 (1) a document granting signature authority over a
2696	2696	11 deposit or account;
2697	2697	12 (2) a statement, ledger card or other record on any
2698	2698	13 deposit or account, which shows each transaction in or
2699	2699	14 with respect to that account;
2700	2700	15 (3) a check, draft or money order drawn on a bank or
2701	2701	16 issued and payable by a bank; or
2702	2702	17 (4) any other item containing information pertaining
2703	2703	18 to any relationship established in the ordinary course of
2704	2704	19 a bank's business between a bank and its customer,
2705	2705	20 including financial statements or other financial
2706	2706	21 information provided by the customer.
2707	2707	22 (b) This Section does not prohibit:
2708	2708	23 (1) The preparation, examination, handling or
2709	2709	24 maintenance of any financial records by any officer,
2710	2710	25 employee or agent of a bank having custody of the records,
2711	2711
2712	2712
2713	2713
2714	2714
2715	2715
2716	2716	SB3726 - 75 - LRB103 38817 RTM 68954 b
2717	2717
2718	2718
2719	2719	SB3726- 76 -LRB103 38817 RTM 68954 b SB3726 - 76 - LRB103 38817 RTM 68954 b
2720	2720	SB3726 - 76 - LRB103 38817 RTM 68954 b
2721	2721	1 or the examination of the records by a certified public
2722	2722	2 accountant engaged by the bank to perform an independent
2723	2723	3 audit.
2724	2724	4 (2) The examination of any financial records by, or
2725	2725	5 the furnishing of financial records by a bank to, any
2726	2726	6 officer, employee or agent of (i) the Commissioner of
2727	2727	7 Banks and Real Estate, (ii) after May 31, 1997, a state
2728	2728	8 regulatory authority authorized to examine a branch of a
2729	2729	9 State bank located in another state, (iii) the Comptroller
2730	2730	10 of the Currency, (iv) the Federal Reserve Board, or (v)
2731	2731	11 the Federal Deposit Insurance Corporation for use solely
2732	2732	12 in the exercise of his duties as an officer, employee, or
2733	2733	13 agent.
2734	2734	14 (3) The publication of data furnished from financial
2735	2735	15 records relating to customers where the data cannot be
2736	2736	16 identified to any particular customer or account.
2737	2737	17 (4) The making of reports or returns required under
2738	2738	18 Chapter 61 of the Internal Revenue Code of 1986.
2739	2739	19 (5) Furnishing information concerning the dishonor of
2740	2740	20 any negotiable instrument permitted to be disclosed under
2741	2741	21 the Uniform Commercial Code.
2742	2742	22 (6) The exchange in the regular course of business of
2743	2743	23 (i) credit information between a bank and other banks or
2744	2744	24 financial institutions or commercial enterprises, directly
2745	2745	25 or through a consumer reporting agency or (ii) financial
2746	2746	26 records or information derived from financial records
2747	2747
2748	2748
2749	2749
2750	2750
2751	2751
2752	2752	SB3726 - 76 - LRB103 38817 RTM 68954 b
2753	2753
2754	2754
2755	2755	SB3726- 77 -LRB103 38817 RTM 68954 b SB3726 - 77 - LRB103 38817 RTM 68954 b
2756	2756	SB3726 - 77 - LRB103 38817 RTM 68954 b
2757	2757	1 between a bank and other banks or financial institutions
2758	2758	2 or commercial enterprises for the purpose of conducting
2759	2759	3 due diligence pursuant to a purchase or sale involving the
2760	2760	4 bank or assets or liabilities of the bank.
2761	2761	5 (7) The furnishing of information to the appropriate
2762	2762	6 law enforcement authorities where the bank reasonably
2763	2763	7 believes it has been the victim of a crime.
2764	2764	8 (8) The furnishing of information under the Revised
2765	2765	9 Uniform Unclaimed Property Act.
2766	2766	10 (9) The furnishing of information under the Illinois
2767	2767	11 Income Tax Act and the Illinois Estate and
2768	2768	12 Generation-Skipping Transfer Tax Act.
2769	2769	13 (10) The furnishing of information under the federal
2770	2770	14 Currency and Foreign Transactions Reporting Act Title 31,
2771	2771	15 United States Code, Section 1051 et seq.
2772	2772	16 (11) The furnishing of information under any other
2773	2773	17 statute that by its terms or by regulations promulgated
2774	2774	18 thereunder requires the disclosure of financial records
2775	2775	19 other than by subpoena, summons, warrant, or court order.
2776	2776	20 (12) The furnishing of information about the existence
2777	2777	21 of an account of a person to a judgment creditor of that
2778	2778	22 person who has made a written request for that
2779	2779	23 information.
2780	2780	24 (13) The exchange in the regular course of business of
2781	2781	25 information between commonly owned banks in connection
2782	2782	26 with a transaction authorized under paragraph (23) of
2783	2783
2784	2784
2785	2785
2786	2786
2787	2787
2788	2788	SB3726 - 77 - LRB103 38817 RTM 68954 b
2789	2789
2790	2790
2791	2791	SB3726- 78 -LRB103 38817 RTM 68954 b SB3726 - 78 - LRB103 38817 RTM 68954 b
2792	2792	SB3726 - 78 - LRB103 38817 RTM 68954 b
2793	2793	1 Section 5 and conducted at an affiliate facility.
2794	2794	2 (14) The furnishing of information in accordance with
2795	2795	3 the federal Personal Responsibility and Work Opportunity
2796	2796	4 Reconciliation Act of 1996. Any bank governed by this Act
2797	2797	5 shall enter into an agreement for data exchanges with a
2798	2798	6 State agency provided the State agency pays to the bank a
2799	2799	7 reasonable fee not to exceed its actual cost incurred. A
2800	2800	8 bank providing information in accordance with this item
2801	2801	9 shall not be liable to any account holder or other person
2802	2802	10 for any disclosure of information to a State agency, for
2803	2803	11 encumbering or surrendering any assets held by the bank in
2804	2804	12 response to a lien or order to withhold and deliver issued
2805	2805	13 by a State agency, or for any other action taken pursuant
2806	2806	14 to this item, including individual or mechanical errors,
2807	2807	15 provided the action does not constitute gross negligence
2808	2808	16 or willful misconduct. A bank shall have no obligation to
2809	2809	17 hold, encumber, or surrender assets until it has been
2810	2810	18 served with a subpoena, summons, warrant, court or
2811	2811	19 administrative order, lien, or levy.
2812	2812	20 (15) The exchange in the regular course of business of
2813	2813	21 information between a bank and any commonly owned
2814	2814	22 affiliate of the bank, subject to the provisions of the
2815	2815	23 Financial Institutions Insurance Sales Law.
2816	2816	24 (16) The furnishing of information to law enforcement
2817	2817	25 authorities, the Illinois Department on Aging and its
2818	2818	26 regional administrative and provider agencies, the
2819	2819
2820	2820
2821	2821
2822	2822
2823	2823
2824	2824	SB3726 - 78 - LRB103 38817 RTM 68954 b
2825	2825
2826	2826
2827	2827	SB3726- 79 -LRB103 38817 RTM 68954 b SB3726 - 79 - LRB103 38817 RTM 68954 b
2828	2828	SB3726 - 79 - LRB103 38817 RTM 68954 b
2829	2829	1 Department of Human Services Office of Inspector General,
2830	2830	2 or public guardians: (i) upon subpoena by the
2831	2831	3 investigatory entity or the guardian, or (ii) if there is
2832	2832	4 suspicion by the bank that a customer who is an elderly
2833	2833	5 person or person with a disability has been or may become
2834	2834	6 the victim of financial exploitation. For the purposes of
2835	2835	7 this item (16), the term: (i) "elderly person" means a
2836	2836	8 person who is 60 or more years of age, (ii) "disabled
2837	2837	9 person with a disability" means a person who has or
2838	2838	10 reasonably appears to the bank to have a physical or
2839	2839	11 mental disability that impairs his or her ability to seek
2840	2840	12 or obtain protection from or prevent financial
2841	2841	13 exploitation, and (iii) "financial exploitation" means
2842	2842	14 tortious or illegal use of the assets or resources of an
2843	2843	15 elderly or disabled person or person with a disability,
2844	2844	16 and includes, without limitation, misappropriation of the
2845	2845	17 elderly or disabled person's assets or resources of the
2846	2846	18 elderly person or person with a disability by undue
2847	2847	19 influence, breach of fiduciary relationship, intimidation,
2848	2848	20 fraud, deception, extortion, or the use of assets or
2849	2849	21 resources in any manner contrary to law. A bank or person
2850	2850	22 furnishing information pursuant to this item (16) shall be
2851	2851	23 entitled to the same rights and protections as a person
2852	2852	24 furnishing information under the Adult Protective Services
2853	2853	25 Act and the Illinois Domestic Violence Act of 1986.
2854	2854	26 (17) The disclosure of financial records or
2855	2855
2856	2856
2857	2857
2858	2858
2859	2859
2860	2860	SB3726 - 79 - LRB103 38817 RTM 68954 b
2861	2861
2862	2862
2863	2863	SB3726- 80 -LRB103 38817 RTM 68954 b SB3726 - 80 - LRB103 38817 RTM 68954 b
2864	2864	SB3726 - 80 - LRB103 38817 RTM 68954 b
2865	2865	1 information as necessary to effect, administer, or enforce
2866	2866	2 a transaction requested or authorized by the customer, or
2867	2867	3 in connection with:
2868	2868	4 (A) servicing or processing a financial product or
2869	2869	5 service requested or authorized by the customer;
2870	2870	6 (B) maintaining or servicing a customer's account
2871	2871	7 with the bank; or
2872	2872	8 (C) a proposed or actual securitization or
2873	2873	9 secondary market sale (including sales of servicing
2874	2874	10 rights) related to a transaction of a customer.
2875	2875	11 Nothing in this item (17), however, authorizes the
2876	2876	12 sale of the financial records or information of a customer
2877	2877	13 without the consent of the customer.
2878	2878	14 (18) The disclosure of financial records or
2879	2879	15 information as necessary to protect against actual or
2880	2880	16 potential fraud, unauthorized transactions, claims, or
2881	2881	17 other liability.
2882	2882	18 (19)(A) The disclosure of financial records or
2883	2883	19 information related to a private label credit program
2884	2884	20 between a financial institution and a private label party
2885	2885	21 in connection with that private label credit program. Such
2886	2886	22 information is limited to outstanding balance, available
2887	2887	23 credit, payment and performance and account history,
2888	2888	24 product references, purchase information, and information
2889	2889	25 related to the identity of the customer.
2890	2890	26 (B)(1) For purposes of this paragraph (19) of
2891	2891
2892	2892
2893	2893
2894	2894
2895	2895
2896	2896	SB3726 - 80 - LRB103 38817 RTM 68954 b
2897	2897
2898	2898
2899	2899	SB3726- 81 -LRB103 38817 RTM 68954 b SB3726 - 81 - LRB103 38817 RTM 68954 b
2900	2900	SB3726 - 81 - LRB103 38817 RTM 68954 b
2901	2901	1 subsection (b) of Section 48.1, a "private label credit
2902	2902	2 program" means a credit program involving a financial
2903	2903	3 institution and a private label party that is used by a
2904	2904	4 customer of the financial institution and the private
2905	2905	5 label party primarily for payment for goods or services
2906	2906	6 sold, manufactured, or distributed by a private label
2907	2907	7 party.
2908	2908	8 (2) For purposes of this paragraph (19) of subsection
2909	2909	9 (b) of Section 48.1, a "private label party" means, with
2910	2910	10 respect to a private label credit program, any of the
2911	2911	11 following: a retailer, a merchant, a manufacturer, a trade
2912	2912	12 group, or any such person's affiliate, subsidiary, member,
2913	2913	13 agent, or service provider.
2914	2914	14 (20)(A) The furnishing of financial records of a
2915	2915	15 customer to the Department to aid the Department's initial
2916	2916	16 determination or subsequent re-determination of the
2917	2917	17 customer's eligibility for Medicaid and Medicaid long-term
2918	2918	18 care benefits for long-term care services, provided that
2919	2919	19 the bank receives the written consent and authorization of
2920	2920	20 the customer, which shall:
2921	2921	21 (1) have the customer's signature notarized;
2922	2922	22 (2) be signed by at least one witness who
2923	2923	23 certifies that he or she believes the customer to be of
2924	2924	24 sound mind and memory;
2925	2925	25 (3) be tendered to the bank at the earliest
2926	2926	26 practicable time following its execution,
2927	2927
2928	2928
2929	2929
2930	2930
2931	2931
2932	2932	SB3726 - 81 - LRB103 38817 RTM 68954 b
2933	2933
2934	2934
2935	2935	SB3726- 82 -LRB103 38817 RTM 68954 b SB3726 - 82 - LRB103 38817 RTM 68954 b
2936	2936	SB3726 - 82 - LRB103 38817 RTM 68954 b
2937	2937	1 certification, and notarization;
2938	2938	2 (4) specifically limit the disclosure of the
2939	2939	3 customer's financial records to the Department; and
2940	2940	4 (5) be in substantially the following form:
2941	2941	5 CUSTOMER CONSENT AND AUTHORIZATION
2942	2942	6 FOR RELEASE OF FINANCIAL RECORDS
2943	2943	7 I, ......................................., hereby authorize
2944	2944	8 (Name of Customer)
2945	2945	9 .............................................................
2946	2946	10 (Name of Financial Institution)
2947	2947	11 .............................................................
2948	2948	12 (Address of Financial Institution)
2949	2949	13 to disclose the following financial records:
2950	2950	14 any and all information concerning my deposit, savings, money
2951	2951	15 market, certificate of deposit, individual retirement,
2952	2952	16 retirement plan, 401(k) plan, incentive plan, employee benefit
2953	2953	17 plan, mutual fund and loan accounts (including, but not
2954	2954	18 limited to, any indebtedness or obligation for which I am a
2955	2955	19 co-borrower, co-obligor, guarantor, or surety), and any and
2956	2956	20 all other accounts in which I have an interest and any other
2957	2957
2958	2958
2959	2959
2960	2960
2961	2961
2962	2962	SB3726 - 82 - LRB103 38817 RTM 68954 b
2963	2963
2964	2964
2965	2965	SB3726- 83 -LRB103 38817 RTM 68954 b SB3726 - 83 - LRB103 38817 RTM 68954 b
2966	2966	SB3726 - 83 - LRB103 38817 RTM 68954 b
2967	2967	1 information regarding me in the possession of the Financial
2968	2968	2 Institution,
2969	2969	3 to the Illinois Department of Human Services or the Illinois
2970	2970	4 Department of Healthcare and Family Services, or both ("the
2971	2971	5 Department"), for the following purpose(s):
2972	2972	6 to aid in the initial determination or re-determination by the
2973	2973	7 State of Illinois of my eligibility for Medicaid long-term
2974	2974	8 care benefits, pursuant to applicable law.
2975	2975	9 I understand that this Consent and Authorization may be
2976	2976	10 revoked by me in writing at any time before my financial
2977	2977	11 records, as described above, are disclosed, and that this
2978	2978	12 Consent and Authorization is valid until the Financial
2979	2979	13 Institution receives my written revocation. This Consent and
2980	2980	14 Authorization shall constitute valid authorization for the
2981	2981	15 Department identified above to inspect all such financial
2982	2982	16 records set forth above, and to request and receive copies of
2983	2983	17 such financial records from the Financial Institution (subject
2984	2984	18 to such records search and reproduction reimbursement policies
2985	2985	19 as the Financial Institution may have in place). An executed
2986	2986	20 copy of this Consent and Authorization shall be sufficient and
2987	2987	21 as good as the original and permission is hereby granted to
2988	2988	22 honor a photostatic or electronic copy of this Consent and
2989	2989	23 Authorization. Disclosure is strictly limited to the
2990	2990
2991	2991
2992	2992
2993	2993
2994	2994
2995	2995	SB3726 - 83 - LRB103 38817 RTM 68954 b
2996	2996
2997	2997
2998	2998	SB3726- 84 -LRB103 38817 RTM 68954 b SB3726 - 84 - LRB103 38817 RTM 68954 b
2999	2999	SB3726 - 84 - LRB103 38817 RTM 68954 b
3000	3000	1 Department identified above and no other person or entity
3001	3001	2 shall receive my financial records pursuant to this Consent
3002	3002	3 and Authorization. By signing this form, I agree to indemnify
3003	3003	4 and hold the Financial Institution harmless from any and all
3004	3004	5 claims, demands, and losses, including reasonable attorneys
3005	3005	6 fees and expenses, arising from or incurred in its reliance on
3006	3006	7 this Consent and Authorization. As used herein, "Customer"
3007	3007	8 shall mean "Member" if the Financial Institution is a credit
3008	3008	9 union.
3009	3009	10 ....................... ......................
3010	3010	11 (Date) (Signature of Customer)
3011	3011	12 ......................
3012	3012	13 ......................
3013	3013	14 (Address of Customer)
3014	3014	15 ......................
3015	3015	16 (Customer's birth date)
3016	3016	17 (month/day/year)
3017	3017	18 The undersigned witness certifies that .................,
3018	3018	19 known to me to be the same person whose name is subscribed as
3019	3019	20 the customer to the foregoing Consent and Authorization,
3020	3020	21 appeared before me and the notary public and acknowledged
3021	3021	22 signing and delivering the instrument as his or her free and
3022	3022
3023	3023
3024	3024
3025	3025
3026	3026
3027	3027	SB3726 - 84 - LRB103 38817 RTM 68954 b
3028	3028
3029	3029
3030	3030	SB3726- 85 -LRB103 38817 RTM 68954 b SB3726 - 85 - LRB103 38817 RTM 68954 b
3031	3031	SB3726 - 85 - LRB103 38817 RTM 68954 b
3032	3032	1 voluntary act for the uses and purposes therein set forth. I
3033	3033	2 believe him or her to be of sound mind and memory. The
3034	3034	3 undersigned witness also certifies that the witness is not an
3035	3035	4 owner, operator, or relative of an owner or operator of a
3036	3036	5 long-term care facility in which the customer is a patient or
3037	3037	6 resident.
3038	3038	7 Dated: ................. ......................
3039	3039	8 (Signature of Witness)
3040	3040	9 ......................
3041	3041	10 (Print Name of Witness)
3042	3042	11 ......................
3043	3043	12 ......................
3044	3044	13 (Address of Witness)
3045	3045	14 State of Illinois)
3046	3046	15 ) ss.
3047	3047	16 County of .......)
3048	3048	17 The undersigned, a notary public in and for the above county
3049	3049	18 and state, certifies that .........., known to me to be the
3050	3050	19 same person whose name is subscribed as the customer to the
3051	3051	20 foregoing Consent and Authorization, appeared before me
3052	3052	21 together with the witness, .........., in person and
3053	3053
3054	3054
3055	3055
3056	3056
3057	3057
3058	3058	SB3726 - 85 - LRB103 38817 RTM 68954 b
3059	3059
3060	3060
3061	3061	SB3726- 86 -LRB103 38817 RTM 68954 b SB3726 - 86 - LRB103 38817 RTM 68954 b
3062	3062	SB3726 - 86 - LRB103 38817 RTM 68954 b
3063	3063	1 acknowledged signing and delivering the instrument as the free
3064	3064	2 and voluntary act of the customer for the uses and purposes
3065	3065	3 therein set forth.
3066	3066	4 Dated:.......................................................
3067	3067	5 Notary Public:...............................................
3068	3068	6 My commission expires:.......................................
3069	3069	7 (B) In no event shall the bank distribute the
3070	3070	8 customer's financial records to the long-term care
3071	3071	9 facility from which the customer seeks initial or
3072	3072	10 continuing residency or long-term care services.
3073	3073	11 (C) A bank providing financial records of a customer
3074	3074	12 in good faith relying on a consent and authorization
3075	3075	13 executed and tendered in accordance with this paragraph
3076	3076	14 (20) shall not be liable to the customer or any other
3077	3077	15 person in relation to the bank's disclosure of the
3078	3078	16 customer's financial records to the Department. The
3079	3079	17 customer signing the consent and authorization shall
3080	3080	18 indemnify and hold the bank harmless that relies in good
3081	3081	19 faith upon the consent and authorization and incurs a loss
3082	3082	20 because of such reliance. The bank recovering under this
3083	3083	21 indemnification provision shall also be entitled to
3084	3084	22 reasonable attorney's fees and the expenses of recovery.
3085	3085	23 (D) A bank shall be reimbursed by the customer for all
3086	3086	24 costs reasonably necessary and directly incurred in
3087	3087
3088	3088
3089	3089
3090	3090
3091	3091
3092	3092	SB3726 - 86 - LRB103 38817 RTM 68954 b
3093	3093
3094	3094
3095	3095	SB3726- 87 -LRB103 38817 RTM 68954 b SB3726 - 87 - LRB103 38817 RTM 68954 b
3096	3096	SB3726 - 87 - LRB103 38817 RTM 68954 b
3097	3097	1 searching for, reproducing, and disclosing a customer's
3098	3098	2 financial records required or requested to be produced
3099	3099	3 pursuant to any consent and authorization executed under
3100	3100	4 this paragraph (20). The requested financial records shall
3101	3101	5 be delivered to the Department within 10 days after
3102	3102	6 receiving a properly executed consent and authorization or
3103	3103	7 at the earliest practicable time thereafter if the
3104	3104	8 requested records cannot be delivered within 10 days, but
3105	3105	9 delivery may be delayed until the final reimbursement of
3106	3106	10 all costs is received by the bank. The bank may honor a
3107	3107	11 photostatic or electronic copy of a properly executed
3108	3108	12 consent and authorization.
3109	3109	13 (E) Nothing in this paragraph (20) shall impair,
3110	3110	14 abridge, or abrogate the right of a customer to:
3111	3111	15 (1) directly disclose his or her financial records
3112	3112	16 to the Department or any other person; or
3113	3113	17 (2) authorize his or her attorney or duly
3114	3114	18 appointed agent to request and obtain the customer's
3115	3115	19 financial records and disclose those financial records
3116	3116	20 to the Department.
3117	3117	21 (F) For purposes of this paragraph (20), "Department"
3118	3118	22 means the Department of Human Services and the Department
3119	3119	23 of Healthcare and Family Services or any successor
3120	3120	24 administrative agency of either agency.
3121	3121	25 (c) Except as otherwise provided by this Act, a bank may
3122	3122	26 not disclose to any person, except to the customer or his duly
3123	3123
3124	3124
3125	3125
3126	3126
3127	3127
3128	3128	SB3726 - 87 - LRB103 38817 RTM 68954 b
3129	3129
3130	3130
3131	3131	SB3726- 88 -LRB103 38817 RTM 68954 b SB3726 - 88 - LRB103 38817 RTM 68954 b
3132	3132	SB3726 - 88 - LRB103 38817 RTM 68954 b
3133	3133	1 authorized agent, any financial records or financial
3134	3134	2 information obtained from financial records relating to that
3135	3135	3 customer of that bank unless:
3136	3136	4 (1) the customer has authorized disclosure to the
3137	3137	5 person;
3138	3138	6 (2) the financial records are disclosed in response to
3139	3139	7 a lawful subpoena, summons, warrant, citation to discover
3140	3140	8 assets, or court order which meets the requirements of
3141	3141	9 subsection (d) of this Section; or
3142	3142	10 (3) the bank is attempting to collect an obligation
3143	3143	11 owed to the bank and the bank complies with the provisions
3144	3144	12 of Section 2I of the Consumer Fraud and Deceptive Business
3145	3145	13 Practices Act.
3146	3146	14 (d) A bank shall disclose financial records under
3147	3147	15 paragraph (2) of subsection (c) of this Section under a lawful
3148	3148	16 subpoena, summons, warrant, citation to discover assets, or
3149	3149	17 court order only after the bank sends a copy of the subpoena,
3150	3150	18 summons, warrant, citation to discover assets, or court order
3151	3151	19 to the customer person establishing the relationship with the
3152	3152	20 bank, if living, and, otherwise the customer's person's
3153	3153	21 personal representative, if known, at the customer's person's
3154	3154	22 last known address by first class mail, postage prepaid,
3155	3155	23 through a third-party commercial carrier or courier with
3156	3156	24 delivery charge fully prepaid, by hand delivery, or by
3157	3157	25 electronic delivery at an email address on file with the bank
3158	3158	26 (if the customer person establishing the relationship with the
3159	3159
3160	3160
3161	3161
3162	3162
3163	3163
3164	3164	SB3726 - 88 - LRB103 38817 RTM 68954 b
3165	3165
3166	3166
3167	3167	SB3726- 89 -LRB103 38817 RTM 68954 b SB3726 - 89 - LRB103 38817 RTM 68954 b
3168	3168	SB3726 - 89 - LRB103 38817 RTM 68954 b
3169	3169	1 bank has consented to receive electronic delivery and the
3170	3170	2 customer , if the person establishing the relationship with
3171	3171	3 the bank is a consumer, the person has consented under the
3172	3172	4 consumer consent provisions set forth in Section 7001 of Title
3173	3173	5 15 of the United States Code), unless the bank is specifically
3174	3174	6 prohibited from notifying the customer person by order of
3175	3175	7 court or by applicable State or federal law. A bank shall not
3176	3176	8 mail a copy of a subpoena to any customer person pursuant to
3177	3177	9 this subsection if the subpoena was issued by a grand jury
3178	3178	10 under the Statewide Grand Jury Act.
3179	3179	11 (e) Any officer or employee of a bank who knowingly and
3180	3180	12 willfully furnishes financial records in violation of this
3181	3181	13 Section is guilty of a business offense and, upon conviction,
3182	3182	14 shall be fined not more than $1,000.
3183	3183	15 (f) Any person who knowingly and willfully induces or
3184	3184	16 attempts to induce any officer or employee of a bank to
3185	3185	17 disclose financial records in violation of this Section is
3186	3186	18 guilty of a business offense and, upon conviction, shall be
3187	3187	19 fined not more than $1,000.
3188	3188	20 (g) A bank shall be reimbursed for costs that are
3189	3189	21 reasonably necessary and that have been directly incurred in
3190	3190	22 searching for, reproducing, or transporting books, papers,
3191	3191	23 records, or other data required or requested to be produced
3192	3192	24 pursuant to a lawful subpoena, summons, warrant, citation to
3193	3193	25 discover assets, or court order. The Commissioner shall
3194	3194	26 determine the rates and conditions under which payment may be
3195	3195
3196	3196
3197	3197
3198	3198
3199	3199
3200	3200	SB3726 - 89 - LRB103 38817 RTM 68954 b
3201	3201
3202	3202
3203	3203	SB3726- 90 -LRB103 38817 RTM 68954 b SB3726 - 90 - LRB103 38817 RTM 68954 b
3204	3204	SB3726 - 90 - LRB103 38817 RTM 68954 b
3205	3205	1 made.
3206	3206	2 (h) For the purposes of this Section, the term "customer"
3207	3207	3 means an individual who obtains a financial product or service
3208	3208	4 primarily for personal, family, or household purposes, or that
3209	3209	5 individual's legal representative.
3210	3210	6 (Source: P.A. 101-81, eff. 7-12-19; 102-873, eff. 5-13-22.)
3211	3211	7 (205 ILCS 5/48.2) (from Ch. 17, par. 360.1)
3212	3212	8 Sec. 48.2. Prohibition against certain activities.
3213	3213	9 (a) Any bank, subsidiary, affiliate, officer or employee
3214	3214	10 of such bank subject to this Act shall not:
3215	3215	11 (1) grant any loan on the prior condition, agreement
3216	3216	12 or understanding that the borrower contract with any
3217	3217	13 specific person or organization for the following:
3218	3218	14 (A) insurance services of an agent or broker;
3219	3219	15 (B) legal services rendered to the borrower;
3220	3220	16 (C) services of a real estate agent or broker; or
3221	3221	17 (D) real estate or property management services;
3222	3222	18 (2) require that insurance services, legal services,
3223	3223	19 real estate services or property management services be
3224	3224	20 placed with any subsidiary, affiliate, officer or employee
3225	3225	21 of any bank.
3226	3226	22 (b) Any bank or subsidiary, affiliate, employee, officer,
3227	3227	23 banking house, branch bank, branch office, additional office
3228	3228	24 or agency of such bank that is transacting an insurance
3229	3229	25 business in this State shall comply with Article XLIV of the
3230	3230
3231	3231
3232	3232
3233	3233
3234	3234
3235	3235	SB3726 - 90 - LRB103 38817 RTM 68954 b
3236	3236
3237	3237
3238	3238	SB3726- 91 -LRB103 38817 RTM 68954 b SB3726 - 91 - LRB103 38817 RTM 68954 b
3239	3239	SB3726 - 91 - LRB103 38817 RTM 68954 b
3240	3240	1 Illinois Insurance Code.
3241	3241	2 (c) Any officer or employee of a bank or its affiliates or
3242	3242	3 subsidiaries who violates this Section is guilty of a business
3243	3243	4 offense, and upon conviction shall be fined not more than
3244	3244	5 $1,000. This Section does not create a private cause of action
3245	3245	6 for civil damages.
3246	3246	7 (d) In any contract or loan which is secured by a mortgage,
3247	3247	8 deed of trust, or conveyance in the nature of a mortgage, on
3248	3248	9 residential real estate, the interest which is computed,
3249	3249	10 calculated, charged, or collected pursuant to such contract or
3250	3250	11 loan, or pursuant to any regulation or rule promulgated
3251	3251	12 pursuant to this Act, may not be computed, calculated, charged
3252	3252	13 or collected for any period of time occurring after the date on
3253	3253	14 which the total indebtedness, with the exception of late
3254	3254	15 payment penalties, is paid in full. For purposes of this
3255	3255	16 subsection (d) of this Section 48.2, a prepayment shall mean
3256	3256	17 the payment of the total indebtedness, with the exception of
3257	3257	18 late payment penalties if incurred or charged, on any date
3258	3258	19 before the date specified in the contract or loan agreement on
3259	3259	20 which the total indebtedness shall be paid in full, or before
3260	3260	21 the date on which all payments, if timely made, shall have been
3261	3261	22 made. In the event of a prepayment of the indebtedness which is
3262	3262	23 made on a date after the date on which interest on the
3263	3263	24 indebtedness was last computed, calculated, charged, or
3264	3264	25 collected but before the next date on which interest on the
3265	3265	26 indebtedness was to be calculated, computed, charged, or
3266	3266
3267	3267
3268	3268
3269	3269
3270	3270
3271	3271	SB3726 - 91 - LRB103 38817 RTM 68954 b
3272	3272
3273	3273
3274	3274	SB3726- 92 -LRB103 38817 RTM 68954 b SB3726 - 92 - LRB103 38817 RTM 68954 b
3275	3275	SB3726 - 92 - LRB103 38817 RTM 68954 b
3276	3276	1 collected, the lender may calculate, charge and collect
3277	3277	2 interest on the indebtedness for the period which elapsed
3278	3278	3 between the date on which the prepayment is made and the date
3279	3279	4 on which interest on the indebtedness was last computed,
3280	3280	5 calculated, charged or collected at a rate equal to 1/360 of
3281	3281	6 the annual rate for each day which so elapsed, which rate shall
3282	3282	7 be applied to the indebtedness outstanding as of the date of
3283	3283	8 prepayment. The lender shall refund to the borrower any
3284	3284	9 interest charged or collected which exceeds that which the
3285	3285	10 lender may charge or collect pursuant to the preceding
3286	3286	11 sentence. The provisions of this amendatory Act of 1985 shall
3287	3287	12 apply only to contracts or loans entered into on or after
3288	3288	13 January 1, 1986.
3289	3289	14 (e) Any bank, affiliate or subsidiary of such bank which
3290	3290	15 shall engage in making residential mortgage financing
3291	3291	16 transactions, shall with respect to each such transaction,
3292	3292	17 provide the following:
3293	3293	18 (1) if a contractual obligation is intended to a
3294	3294	19 borrower, a mortgage commitment which shall set forth the
3295	3295	20 material terms, conditions and contingencies of such
3296	3296	21 commitment;
3297	3297	22 (2) if the servicing of a residential mortgage shall
3298	3298	23 be transferred from the original mortgagee, within 45 days
3299	3299	24 of such transfer, written notice sent by certified mail,
3300	3300	25 return receipt requested, to the mortgagor at the address
3301	3301	26 of the property, unless the mortgagor shall have directed
3302	3302
3303	3303
3304	3304
3305	3305
3306	3306
3307	3307	SB3726 - 92 - LRB103 38817 RTM 68954 b
3308	3308
3309	3309
3310	3310	SB3726- 93 -LRB103 38817 RTM 68954 b SB3726 - 93 - LRB103 38817 RTM 68954 b
3311	3311	SB3726 - 93 - LRB103 38817 RTM 68954 b
3312	3312	1 correspondence from the mortgagee shall be sent to another
3313	3313	2 address, which notice shall set forth: the name and
3314	3314	3 address of the transferee; the name, address and telephone
3315	3315	4 number to which inquiries by the residential mortgagor
3316	3316	5 should be addressed; and the name and address to which the
3317	3317	6 next 3 monthly installments are to be submitted to the
3318	3318	7 transferee and the amount of each of such monthly
3319	3319	8 installment; and
3320	3320	9 (3) if the servicing of a residential mortgage shall
3321	3321	10 be transferred again or if the information in paragraph
3322	3322	11 (2) above shall change, the notice with the corrected
3323	3323	12 information shall be provided within 45 days of such
3324	3324	13 subsequent transfer or change in information by the
3325	3325	14 transferee of the servicing of the mortgage at that time.
3326	3326	15 (Source: P.A. 90-41, eff. 10-1-97.)
3327	3327	16 (205 ILCS 5/49) (from Ch. 17, par. 361)
3328	3328	17 Sec. 49. False statements; penalty. It is unlawful for any
3329	3329	18 officer, director, or employee of any State bank or subsidiary
3330	3330	19 or holding company of that bank or, after May 31, 1997, branch
3331	3331	20 out of an out-of-state bank subject to examination by the
3332	3332	21 Commissioner or any person filing an application or notice or
3333	3333	22 submitting information in connection with an application or
3334	3334	23 notice with the Commissioner to willfully and knowingly
3335	3335	24 subscribe to or make, or cause to be made, any false statement
3336	3336	25 or false entry with intent to deceive any person or persons
3337	3337
3338	3338
3339	3339
3340	3340
3341	3341
3342	3342	SB3726 - 93 - LRB103 38817 RTM 68954 b
3343	3343
3344	3344
3345	3345	SB3726- 94 -LRB103 38817 RTM 68954 b SB3726 - 94 - LRB103 38817 RTM 68954 b
3346	3346	SB3726 - 94 - LRB103 38817 RTM 68954 b
3347	3347	1 authorized to examine into the affairs of the bank or the
3348	3348	2 subsidiary or holding company of that bank, the branch of an
3349	3349	3 out-of-state bank, or the applicant or with intent to deceive
3350	3350	4 the Commissioner or his administrative officers in the
3351	3351	5 performance of their duties under this Act. A person who
3352	3352	6 violates this Section shall be subject to the provisions of
3353	3353	7 Section 48. Where financial loss to a bank is caused by those
3354	3354	8 statements, the penalties shall be commensurate with that loss
3355	3355	9 is guilty of a Class 3 felony.
3356	3356	10 (Source: P.A. 92-483, eff. 8-23-01.)
3357	3357	11 (205 ILCS 5/78) (from Ch. 17, par. 390)
3358	3358	12 Sec. 78. Board of banks and trust companies; creation,
3359	3359	13 members, appointment. There is created a Board which shall be
3360	3360	14 known as the State Banking Board of Illinois which shall
3361	3361	15 consist of the Director of Banking, who shall be its chairman,
3362	3362	16 and 12 additional members. The Board shall be comprised of
3363	3363	17 individuals interested in the banking industry. One member Two
3364	3364	18 members shall be from State banks having total assets of not
3365	3365	19 more than $75,000,000 at the time of their appointment; one
3366	3366	20 member 2 members shall be from State banks having total assets
3367	3367	21 of more than $75,000,000, but not more than $150,000,000 at
3368	3368	22 the time of their appointment; one member 2 members shall be
3369	3369	23 from State banks having total assets of more than
3370	3370	24 $150,000,000, but not more than $500,000,000 at the time of
3371	3371	25 their appointment; one member 2 members shall be from State
3372	3372
3373	3373
3374	3374
3375	3375
3376	3376
3377	3377	SB3726 - 94 - LRB103 38817 RTM 68954 b
3378	3378
3379	3379
3380	3380	SB3726- 95 -LRB103 38817 RTM 68954 b SB3726 - 95 - LRB103 38817 RTM 68954 b
3381	3381	SB3726 - 95 - LRB103 38817 RTM 68954 b
3382	3382	1 banks having total assets of more than $500,000,000, but not
3383	3383	2 more than $2,000,000,000 at the time of their appointment; one
3384	3384	3 member shall be from a State bank having total assets of more
3385	3385	4 than $2,000,000,000 at the time of his or her appointment;
3386	3386	5 five members shall be from State banks and shall be selected by
3387	3387	6 the Secretary with the advice and recommendation of the
3388	3388	7 Illinois Bankers Association and the Community Bankers
3389	3389	8 Association of Illinois; and one member shall be from a
3390	3390	9 savings bank organized under the Savings Bank Act. There shall
3391	3391	10 be one alternate member from a savings bank organized under
3392	3392	11 the Savings Bank Act whose role shall be to attend a meeting of
3393	3393	12 the State Banking Board if and only if the sitting member from
3394	3394	13 a savings bank is unable to attend the meeting. There shall be
3395	3395	14 2 public members, neither of whom shall be an officer or
3396	3396	15 director of or owner, whether directly or indirectly, of more
3397	3397	16 than 5% of the outstanding capital stock of any bank or savings
3398	3398	17 bank. Members of the State Banking Board of Illinois cease to
3399	3399	18 be eligible to serve on the Board once they no longer meet the
3400	3400	19 requirements of their original appointment; however, a member
3401	3401	20 from a State bank shall not be disqualified solely due to a
3402	3402	21 change in the bank's asset size.
3403	3403	22 (Source: P.A. 99-39, eff. 1-1-16; 100-783, eff. 8-10-18.)
3404	3404	23 (205 ILCS 5/80) (from Ch. 17, par. 392)
3405	3405	24 Sec. 80. Board; powers. The Board shall have the following
3406	3406	25 powers in addition to any others that may be granted to it by
3407	3407
3408	3408
3409	3409
3410	3410
3411	3411
3412	3412	SB3726 - 95 - LRB103 38817 RTM 68954 b
3413	3413
3414	3414
3415	3415	SB3726- 96 -LRB103 38817 RTM 68954 b SB3726 - 96 - LRB103 38817 RTM 68954 b
3416	3416	SB3726 - 96 - LRB103 38817 RTM 68954 b
3417	3417	1 law:
3418	3418	2 (a) (Blank).
3419	3419	3 (b) To review, consider, and make recommendations to the
3420	3420	4 Director of Banking upon any banking matters.
3421	3421	5 (c) (Blank).
3422	3422	6 (d) (Blank).
3423	3423	7 (e) To review, consider, and submit to the Director of
3424	3424	8 Banking and to the Governor proposals for amendments to this
3425	3425	9 Act or for changes in or additions to the administration
3426	3426	10 thereof which in the opinion of the Board are necessary or
3427	3427	11 desirable in order to assure the safe and sound conduct of the
3428	3428	12 banking business.
3429	3429	13 (f) To require the Secretary to furnish the Board space
3430	3430	14 for meetings to be held by the Board as well as to require the
3431	3431	15 Secretary to provide such clerical and technical assistance as
3432	3432	16 the Board may require.
3433	3433	17 (g) To adopt its own by-laws with respect to Board
3434	3434	18 meetings and procedures. Such by-laws shall provide that:
3435	3435	19 (i) At least half A majority of the whole Board
3436	3436	20 constitutes a quorum.
3437	3437	21 (ii) A majority of the quorum shall constitute
3438	3438	22 effective action except that a vote of a majority of the
3439	3439	23 whole Board shall be necessary for recommendations made to
3440	3440	24 the Director of Banking and to the Governor with regard to
3441	3441	25 proposed amendments to this Act or to the administrative
3442	3442	26 practices hereunder.
3443	3443
3444	3444
3445	3445
3446	3446
3447	3447
3448	3448	SB3726 - 96 - LRB103 38817 RTM 68954 b
3449	3449
3450	3450
3451	3451	SB3726- 97 -LRB103 38817 RTM 68954 b SB3726 - 97 - LRB103 38817 RTM 68954 b
3452	3452	SB3726 - 97 - LRB103 38817 RTM 68954 b
3453	3453	1 (iii) The Board shall meet at least once in each
3454	3454	2 calendar year and upon the call of the Director of Banking
3455	3455	3 or a majority of the Board. The Director of Banking or a
3456	3456	4 majority of the Board may call such special or additional
3457	3457	5 meetings as may be deemed necessary or desirable.
3458	3458	6 (h) (Blank).
3459	3459	7 (i) (Blank).
3460	3460	8 (j) (Blank).
3461	3461	9 (k) (Blank).
3462	3462	10 (l) (Blank).
3463	3463	11 (m) To authorize the transfer of funds from the Illinois
3464	3464	12 Bank Examiners' Education Fund to the Bank and Trust Company
3465	3465	13 Fund. Any amount transferred shall be retransferred to the
3466	3466	14 Illinois Bank Examiners' Education Fund from the Bank and
3467	3467	15 Trust Company Fund within 3 years.
3468	3468	16 (n) To maintain and direct the investments of the Illinois
3469	3469	17 Bank Examiners' Education Fund.
3470	3470	18 (o) To evaluate various courses, programs, curricula, and
3471	3471	19 schools of continuing education and professional training that
3472	3472	20 are available from within the United States for State banking
3473	3473	21 department examination personnel and develop a program known
3474	3474	22 as the Illinois Bank Examiners' Education Program. The Board
3475	3475	23 shall determine which courses, programs, curricula, and
3476	3476	24 schools will be included in the Program to be funded by the
3477	3477	25 Foundation.
3478	3478	26 (p) To authorize the transfer of funds from the Bank and
3479	3479
3480	3480
3481	3481
3482	3482
3483	3483
3484	3484	SB3726 - 97 - LRB103 38817 RTM 68954 b
3485	3485
3486	3486
3487	3487	SB3726- 98 -LRB103 38817 RTM 68954 b SB3726 - 98 - LRB103 38817 RTM 68954 b
3488	3488	SB3726 - 98 - LRB103 38817 RTM 68954 b
3489	3489	1 Trust Company Fund.
3490	3490	2 (Source: P.A. 96-1163, eff. 1-1-11.)
3491	3491	3 Section 10. The Savings Bank Act is amended by changing
3492	3492	4 Sections 1008, 4002, 4003, 4013, 6002, 7005, 8002, 8016, and
3493	3493	5 11008 as follows:
3494	3494	6 (205 ILCS 205/1008) (from Ch. 17, par. 7301-8)
3495	3495	7 Sec. 1008. General corporate powers.
3496	3496	8 (a) A savings bank operating under this Act shall be a body
3497	3497	9 corporate and politic and shall have all of the powers
3498	3498	10 conferred by this Act including, but not limited to, the
3499	3499	11 following powers:
3500	3500	12 (1) To sue and be sued, complain, and defend in its
3501	3501	13 corporate name and to have a common seal, which it may
3502	3502	14 alter or renew at pleasure.
3503	3503	15 (2) To obtain and maintain insurance by a deposit
3504	3504	16 insurance corporation as defined in this Act.
3505	3505	17 (3) To act as a fiscal agent for the United States, the
3506	3506	18 State of Illinois or any department, branch, arm, or
3507	3507	19 agency of the State or any unit of local government or
3508	3508	20 school district in the State, when duly designated for
3509	3509	21 that purpose, and as agent to perform reasonable functions
3510	3510	22 as may be required of it.
3511	3511	23 (4) To become a member of or deal with any corporation
3512	3512	24 or agency of the United States or the State of Illinois, to
3513	3513
3514	3514
3515	3515
3516	3516
3517	3517
3518	3518	SB3726 - 98 - LRB103 38817 RTM 68954 b
3519	3519
3520	3520
3521	3521	SB3726- 99 -LRB103 38817 RTM 68954 b SB3726 - 99 - LRB103 38817 RTM 68954 b
3522	3522	SB3726 - 99 - LRB103 38817 RTM 68954 b
3523	3523	1 the extent that the agency assists in furthering or
3524	3524	2 facilitating its purposes or powers and to that end to
3525	3525	3 purchase stock or securities thereof or deposit money
3526	3526	4 therewith, and to comply with any other conditions of
3527	3527	5 membership or credit.
3528	3528	6 (5) To make donations in reasonable amounts for the
3529	3529	7 public welfare or for charitable, scientific, religious,
3530	3530	8 or educational purposes.
3531	3531	9 (6) To adopt and operate reasonable insurance, bonus,
3532	3532	10 profit sharing, and retirement plans for officers and
3533	3533	11 employees and for directors including, but not limited to,
3534	3534	12 advisory, honorary, and emeritus directors, who are not
3535	3535	13 officers or employees.
3536	3536	14 (7) To reject any application for membership; to
3537	3537	15 retire deposit accounts by enforced retirement as provided
3538	3538	16 in this Act and the bylaws; and to limit the issuance of,
3539	3539	17 or payments on, deposit accounts, subject, however, to
3540	3540	18 contractual obligations.
3541	3541	19 (8) To purchase stock or membership interests in
3542	3542	20 service corporations and to invest in any form of
3543	3543	21 indebtedness of any service corporation as defined in this
3544	3544	22 Act, subject to regulations of the Secretary.
3545	3545	23 (9) To purchase stock of a corporation whose principal
3546	3546	24 purpose is to operate a safe deposit company or escrow
3547	3547	25 service company.
3548	3548	26 (10) To exercise all the powers necessary to qualify
3549	3549
3550	3550
3551	3551
3552	3552
3553	3553
3554	3554	SB3726 - 99 - LRB103 38817 RTM 68954 b
3555	3555
3556	3556
3557	3557	SB3726- 100 -LRB103 38817 RTM 68954 b SB3726 - 100 - LRB103 38817 RTM 68954 b
3558	3558	SB3726 - 100 - LRB103 38817 RTM 68954 b
3559	3559	1 as a trustee or custodian under federal or State law,
3560	3560	2 provided that the authority to accept and execute trusts
3561	3561	3 is subject to the provisions of the Corporate Fiduciary
3562	3562	4 Act and to the supervision of those activities by the
3563	3563	5 Secretary.
3564	3564	6 (11) (Blank).
3565	3565	7 (12) To establish, maintain, and operate terminals as
3566	3566	8 authorized by the Electronic Fund Transfer Act.
3567	3567	9 (13) To borrow or incur an obligation; and to pledge
3568	3568	10 its assets:
3569	3569	11 (A) to enable it to act as agent for the sale of
3570	3570	12 obligations of the United States;
3571	3571	13 (B) to secure deposits;
3572	3572	14 (C) to secure deposits of money whenever required
3573	3573	15 by the National Bankruptcy Act;
3574	3574	16 (D) (blank); and
3575	3575	17 (E) to secure trust funds commingled with the
3576	3576	18 savings bank's funds, whether deposited by the savings
3577	3577	19 bank or an affiliate of the savings bank, as required
3578	3578	20 under Section 2-8 of the Corporate Fiduciary Act.
3579	3579	21 (14) To accept for payment at a future date not to
3580	3580	22 exceed one year from the date of acceptance, drafts drawn
3581	3581	23 upon it by its customers; and to issue, advise, or confirm
3582	3582	24 letters of credit authorizing holders thereof to draw
3583	3583	25 drafts upon it or its correspondents.
3584	3584	26 (15) Subject to the regulations of the Secretary, to
3585	3585
3586	3586
3587	3587
3588	3588
3589	3589
3590	3590	SB3726 - 100 - LRB103 38817 RTM 68954 b
3591	3591
3592	3592
3593	3593	SB3726- 101 -LRB103 38817 RTM 68954 b SB3726 - 101 - LRB103 38817 RTM 68954 b
3594	3594	SB3726 - 101 - LRB103 38817 RTM 68954 b
3595	3595	1 own and lease personal property acquired by the savings
3596	3596	2 bank at the request of a prospective lessee and, upon the
3597	3597	3 agreement of that person, to lease the personal property.
3598	3598	4 (16) To establish temporary service booths at any
3599	3599	5 International Fair in this State that is approved by the
3600	3600	6 United States Department of Commerce for the duration of
3601	3601	7 the international fair for the purpose of providing a
3602	3602	8 convenient place for foreign trade customers to exchange
3603	3603	9 their home countries' currency into United States currency
3604	3604	10 or the converse. To provide temporary periodic service to
3605	3605	11 persons residing in a bona fide nursing home, senior
3606	3606	12 citizens' retirement home, or long-term care facility.
3607	3607	13 These powers shall not be construed as establishing a new
3608	3608	14 place or change of location for the savings bank providing
3609	3609	15 the service booth.
3610	3610	16 (17) To indemnify its officers, directors, employees,
3611	3611	17 and agents, as authorized for corporations under Section
3612	3612	18 8.75 of the Business Corporation Act of 1983.
3613	3613	19 (18) To provide data processing services to others on
3614	3614	20 a for-profit basis.
3615	3615	21 (19) To utilize any electronic technology to provide
3616	3616	22 customers with home banking services.
3617	3617	23 (20) Subject to the regulations of the Secretary, to
3618	3618	24 enter into an agreement to act as a surety.
3619	3619	25 (21) Subject to the regulations of the Secretary, to
3620	3620	26 issue credit cards, extend credit therewith, and otherwise
3621	3621
3622	3622
3623	3623
3624	3624
3625	3625
3626	3626	SB3726 - 101 - LRB103 38817 RTM 68954 b
3627	3627
3628	3628
3629	3629	SB3726- 102 -LRB103 38817 RTM 68954 b SB3726 - 102 - LRB103 38817 RTM 68954 b
3630	3630	SB3726 - 102 - LRB103 38817 RTM 68954 b
3631	3631	1 engage in or participate in credit card operations.
3632	3632	2 (22) To purchase for its own account shares of stock
3633	3633	3 of a bankers' bank, described in Section 13(b)(1) of the
3634	3634	4 Illinois Banking Act, on the same terms and conditions as
3635	3635	5 a bank may purchase such shares. In no event shall the
3636	3636	6 total amount of such stock held by a savings bank in such
3637	3637	7 bankers' bank exceed 10% of its capital and surplus
3638	3638	8 (including undivided profits) and in no event shall a
3639	3639	9 savings bank acquire more than 5% of any class of voting
3640	3640	10 securities of such bankers' bank.
3641	3641	11 (23) With respect to affiliate facilities:
3642	3642	12 (A) to conduct at affiliate facilities any of the
3643	3643	13 following transactions for and on behalf of any
3644	3644	14 affiliated depository institution, if so authorized by
3645	3645	15 the affiliate or affiliates: receiving deposits;
3646	3646	16 renewing deposits; cashing and issuing checks, drafts,
3647	3647	17 money orders, travelers checks, or similar
3648	3648	18 instruments; changing money; receiving payments on
3649	3649	19 existing indebtedness; and conducting ministerial
3650	3650	20 functions with respect to loan applications, servicing
3651	3651	21 loans, and providing loan account information; and, on
3652	3652	22 behalf of another commonly owned bank, if so
3653	3653	23 authorized by the other bank, all transactions that
3654	3654	24 the other bank is authorized or permitted to perform;
3655	3655	25 and
3656	3656	26 (B) to authorize an affiliated depository
3657	3657
3658	3658
3659	3659
3660	3660
3661	3661
3662	3662	SB3726 - 102 - LRB103 38817 RTM 68954 b
3663	3663
3664	3664
3665	3665	SB3726- 103 -LRB103 38817 RTM 68954 b SB3726 - 103 - LRB103 38817 RTM 68954 b
3666	3666	SB3726 - 103 - LRB103 38817 RTM 68954 b
3667	3667	1 institution to conduct for and on behalf of it, any of
3668	3668	2 the transactions listed in this subsection at one or
3669	3669	3 more affiliate facilities.
3670	3670	4 A savings bank intending to conduct or to authorize an
3671	3671	5 affiliated depository institution to conduct at an
3672	3672	6 affiliate facility any of the transactions specified in
3673	3673	7 this subsection shall give written notice to the Secretary
3674	3674	8 at least 30 days before any such transaction is conducted
3675	3675	9 at an affiliate facility. All conduct under this
3676	3676	10 subsection shall be on terms consistent with safe and
3677	3677	11 sound banking practices and applicable law.
3678	3678	12 (24) Subject to Article XLIV of the Illinois Insurance
3679	3679	13 Code, to act as the agent for any fire, life, or other
3680	3680	14 insurance company authorized by the State of Illinois, by
3681	3681	15 soliciting and selling insurance and collecting premiums
3682	3682	16 on policies issued by such company; and may receive for
3683	3683	17 services so rendered such fees or commissions as may be
3684	3684	18 agreed upon between the said savings bank and the
3685	3685	19 insurance company for which it may act as agent; provided,
3686	3686	20 however, that no such savings bank shall in any case
3687	3687	21 assume or guarantee the payment of any premium on
3688	3688	22 insurance policies issued through its agency by its
3689	3689	23 principal; and provided further, that the savings bank
3690	3690	24 shall not guarantee the truth of any statement made by an
3691	3691	25 assured in filing his application for insurance.
3692	3692	26 (25) To become a member of the Federal Home Loan Bank
3693	3693
3694	3694
3695	3695
3696	3696
3697	3697
3698	3698	SB3726 - 103 - LRB103 38817 RTM 68954 b
3699	3699
3700	3700
3701	3701	SB3726- 104 -LRB103 38817 RTM 68954 b SB3726 - 104 - LRB103 38817 RTM 68954 b
3702	3702	SB3726 - 104 - LRB103 38817 RTM 68954 b
3703	3703	1 and to have the powers granted to a savings association
3704	3704	2 organized under the Illinois Savings and Loan Act of 1985
3705	3705	3 or the laws of the United States, subject to regulations
3706	3706	4 of the Secretary.
3707	3707	5 (26) To offer any product or service that is at the
3708	3708	6 time authorized or permitted to a bank by applicable law,
3709	3709	7 but subject always to the same limitations and
3710	3710	8 restrictions that are applicable to the bank for the
3711	3711	9 product or service by such applicable law and subject to
3712	3712	10 the applicable provisions of the Financial Institutions
3713	3713	11 Insurance Sales Law and rules of the Secretary.
3714	3714	12 (b) If this Act or the regulations adopted under this Act
3715	3715	13 fail to provide specific guidance in matters of corporate
3716	3716	14 governance, the provisions of the Business Corporation Act of
3717	3717	15 1983 may be used, or if the savings bank is a limited liability
3718	3718	16 company, the provisions of the Limited Liability Company Act
3719	3719	17 shall be used.
3720	3720	18 (c) A savings bank may be organized as a limited liability
3721	3721	19 company, may convert to a limited liability company, or may
3722	3722	20 merge with and into a limited liability company, under the
3723	3723	21 applicable laws of this State and of the United States,
3724	3724	22 including any rules promulgated thereunder. A savings bank
3725	3725	23 organized as a limited liability company shall be subject to
3726	3726	24 the provisions of the Limited Liability Company Act in
3727	3727	25 addition to this Act, provided that if a provision of the
3728	3728	26 Limited Liability Company Act conflicts with a provision of
3729	3729
3730	3730
3731	3731
3732	3732
3733	3733
3734	3734	SB3726 - 104 - LRB103 38817 RTM 68954 b
3735	3735
3736	3736
3737	3737	SB3726- 105 -LRB103 38817 RTM 68954 b SB3726 - 105 - LRB103 38817 RTM 68954 b
3738	3738	SB3726 - 105 - LRB103 38817 RTM 68954 b
3739	3739	1 this Act or with any rule of the Secretary, the provision of
3740	3740	2 this Act or the rule of the Secretary shall apply.
3741	3741	3 Any filing required to be made under the Limited Liability
3742	3742	4 Company Act shall be made exclusively with the Secretary, and
3743	3743	5 the Secretary shall possess the exclusive authority to
3744	3744	6 regulate the savings bank as provided in this Act.
3745	3745	7 Any organization as, conversion to, and merger with or
3746	3746	8 into a limited liability company shall be subject to the prior
3747	3747	9 approval of the Secretary.
3748	3748	10 A savings bank that is a limited liability company shall
3749	3749	11 be subject to all of the provisions of this Act in the same
3750	3750	12 manner as a savings bank that is organized in stock form.
3751	3751	13 The Secretary may promulgate rules to ensure that a
3752	3752	14 savings bank that is a limited liability company (i) is
3753	3753	15 operating in a safe and sound manner and (ii) is subject to the
3754	3754	16 Secretary's authority in the same manner as a savings bank
3755	3755	17 that is organized in stock form.
3756	3756	18 (Source: P.A. 102-558, eff. 8-20-21.)
3757	3757	19 (205 ILCS 205/4002) (from Ch. 17, par. 7304-2)
3758	3758	20 Sec. 4002. Annual and special meetings. Dates of annual
3759	3759	21 meetings of members or stockholders shall be specified in the
3760	3760	22 bylaws. Failure to hold an annual meeting shall not cause a
3761	3761	23 forfeiture or dissolution of the savings bank. Special
3762	3762	24 meetings may be called by the board of directors, the holders
3763	3763	25 of not less than 25% of the outstanding capital stock shares,
3764	3764
3765	3765
3766	3766
3767	3767
3768	3768
3769	3769	SB3726 - 105 - LRB103 38817 RTM 68954 b
3770	3770
3771	3771
3772	3772	SB3726- 106 -LRB103 38817 RTM 68954 b SB3726 - 106 - LRB103 38817 RTM 68954 b
3773	3773	SB3726 - 106 - LRB103 38817 RTM 68954 b
3774	3774	1 or by any other person as the bylaws may designate. The
3775	3775	2 Commissioner may also call a special meeting with not less
3776	3776	3 than 12 hours written or oral notice. Every annual or special
3777	3777	4 meeting shall be held at the business office of the savings
3778	3778	5 bank or, if the space is inadequate, in another place within
3779	3779	6 the same county as shall be specifically designated in the
3780	3780	7 notice of the meeting, or virtually. Unless expressly
3781	3781	8 prohibited by the articles of incorporation or bylaws and
3782	3782	9 subject to applicable requirements of this Act, the board of
3783	3783	10 directors may provide by resolution that members or
3784	3784	11 stockholders may attend, participate in, act in, and vote at
3785	3785	12 an annual meeting or special meeting through the use of a
3786	3786	13 conference telephone or interactive technology, including, but
3787	3787	14 not limited to, electronic transmission, internet usage, or
3788	3788	15 remote communication, by means of which all persons
3789	3789	16 participating in the meeting can communicate with each other.
3790	3790	17 Participation through the use of a conference telephone or
3791	3791	18 interactive technology shall constitute attendance, presence,
3792	3792	19 and representation in person at the annual meeting or special
3793	3793	20 meeting of the person or persons so participating and count
3794	3794	21 towards the quorum required to conduct business at the
3795	3795	22 meeting. The following conditions shall apply to any virtual
3796	3796	23 meeting of members or stockholders:
3797	3797	24 (a) the savings bank must internally possess or retain the
3798	3798	25 technological capacity to facilitate virtual meeting
3799	3799	26 attendance, participation, communication, and voting; and
3800	3800
3801	3801
3802	3802
3803	3803
3804	3804
3805	3805	SB3726 - 106 - LRB103 38817 RTM 68954 b
3806	3806
3807	3807
3808	3808	SB3726- 107 -LRB103 38817 RTM 68954 b SB3726 - 107 - LRB103 38817 RTM 68954 b
3809	3809	SB3726 - 107 - LRB103 38817 RTM 68954 b
3810	3810	1 (b) members or stockholders must receive notice of the use
3811	3811	2 of a virtual meeting format and appropriate instructions for
3812	3812	3 joining, participating, and voting during the virtual meeting
3813	3813	4 at least 7 days before the virtual meeting.
3814	3814	5 (Source: P.A. 86-1213.)
3815	3815	6 (205 ILCS 205/4003) (from Ch. 17, par. 7304-3)
3816	3816	7 Sec. 4003. Notice of meetings.
3817	3817	8 (a) Notice of an annual meeting shall be published once
3818	3818	9 not fewer than 10 days nor more than 40 days before the date of
3819	3819	10 the meeting. The notice shall also be displayed at the place of
3820	3820	11 business of the savings bank in a manner to be prescribed by
3821	3821	12 the Commissioner. The notice must state the time, place, and
3822	3822	13 purpose of the meeting.
3823	3823	14 (b) For any special meeting or for any annual meeting that
3824	3824	15 is to consider any proposition that requires an affirmative
3825	3825	16 vote of two-thirds of the members or stockholders or any
3826	3826	17 proposition to amend the articles of incorporation of the
3827	3827	18 savings bank, the notice must be delivered personally,
3828	3828	19 electronically, or by mail to the holders of stock, capital
3829	3829	20 accounts, and membership entitled to notice of or to vote at
3830	3830	21 the meeting, by mail, postmarked between 10 and 40 days before
3831	3831	22 the date of the meeting, and must also be posted at the savings
3832	3832	23 bank's offices as if for an annual meeting, beginning on the
3833	3833	24 date notice is given. All notices must state the time, place,
3834	3834	25 and purpose of the meeting. If mailed, the notice shall be
3835	3835
3836	3836
3837	3837
3838	3838
3839	3839
3840	3840	SB3726 - 107 - LRB103 38817 RTM 68954 b
3841	3841
3842	3842
3843	3843	SB3726- 108 -LRB103 38817 RTM 68954 b SB3726 - 108 - LRB103 38817 RTM 68954 b
3844	3844	SB3726 - 108 - LRB103 38817 RTM 68954 b
3845	3845	1 deemed to be delivered on the date on which it has been
3846	3846	2 postmarked.
3847	3847	3 (Source: P.A. 89-74, eff. 6-30-95.)
3848	3848	4 (205 ILCS 205/4013) (from Ch. 17, par. 7304-13)
3849	3849	5 Sec. 4013. Access to books and records; communication with
3850	3850	6 members and shareholders.
3851	3851	7 (a) Every member or shareholder shall have the right to
3852	3852	8 inspect books and records of the savings bank that pertain to
3853	3853	9 his accounts. Otherwise, the right of inspection and
3854	3854	10 examination of the books and records shall be limited as
3855	3855	11 provided in this Act, and no other person shall have access to
3856	3856	12 the books and records nor shall be entitled to a list of the
3857	3857	13 members or shareholders.
3858	3858	14 (b) For the purpose of this Section, the term "financial
3859	3859	15 records" means any original, any copy, or any summary of (1) a
3860	3860	16 document granting signature authority over a deposit or
3861	3861	17 account; (2) a statement, ledger card, or other record on any
3862	3862	18 deposit or account that shows each transaction in or with
3863	3863	19 respect to that account; (3) a check, draft, or money order
3864	3864	20 drawn on a savings bank or issued and payable by a savings
3865	3865	21 bank; or (4) any other item containing information pertaining
3866	3866	22 to any relationship established in the ordinary course of a
3867	3867	23 savings bank's business between a savings bank and its
3868	3868	24 customer, including financial statements or other financial
3869	3869	25 information provided by the member or shareholder.
3870	3870
3871	3871
3872	3872
3873	3873
3874	3874
3875	3875	SB3726 - 108 - LRB103 38817 RTM 68954 b
3876	3876
3877	3877
3878	3878	SB3726- 109 -LRB103 38817 RTM 68954 b SB3726 - 109 - LRB103 38817 RTM 68954 b
3879	3879	SB3726 - 109 - LRB103 38817 RTM 68954 b
3880	3880	1 (c) This Section does not prohibit:
3881	3881	2 (1) The preparation, examination, handling, or
3882	3882	3 maintenance of any financial records by any officer,
3883	3883	4 employee, or agent of a savings bank having custody of
3884	3884	5 records or examination of records by a certified public
3885	3885	6 accountant engaged by the savings bank to perform an
3886	3886	7 independent audit.
3887	3887	8 (2) The examination of any financial records by, or
3888	3888	9 the furnishing of financial records by a savings bank to,
3889	3889	10 any officer, employee, or agent of the Commissioner of
3890	3890	11 Banks and Real Estate or the federal depository
3891	3891	12 institution regulator for use solely in the exercise of
3892	3892	13 his duties as an officer, employee, or agent.
3893	3893	14 (3) The publication of data furnished from financial
3894	3894	15 records relating to members or holders of capital where
3895	3895	16 the data cannot be identified to any particular member,
3896	3896	17 shareholder, or account.
3897	3897	18 (4) The making of reports or returns required under
3898	3898	19 Chapter 61 of the Internal Revenue Code of 1986.
3899	3899	20 (5) Furnishing information concerning the dishonor of
3900	3900	21 any negotiable instrument permitted to be disclosed under
3901	3901	22 the Uniform Commercial Code.
3902	3902	23 (6) The exchange in the regular course of business of
3903	3903	24 (i) credit information between a savings bank and other
3904	3904	25 savings banks or financial institutions or commercial
3905	3905	26 enterprises, directly or through a consumer reporting
3906	3906
3907	3907
3908	3908
3909	3909
3910	3910
3911	3911	SB3726 - 109 - LRB103 38817 RTM 68954 b
3912	3912
3913	3913
3914	3914	SB3726- 110 -LRB103 38817 RTM 68954 b SB3726 - 110 - LRB103 38817 RTM 68954 b
3915	3915	SB3726 - 110 - LRB103 38817 RTM 68954 b
3916	3916	1 agency or (ii) financial records or information derived
3917	3917	2 from financial records between a savings bank and other
3918	3918	3 savings banks or financial institutions or commercial
3919	3919	4 enterprises for the purpose of conducting due diligence
3920	3920	5 pursuant to a purchase or sale involving the savings bank
3921	3921	6 or assets or liabilities of the savings bank.
3922	3922	7 (7) The furnishing of information to the appropriate
3923	3923	8 law enforcement authorities where the savings bank
3924	3924	9 reasonably believes it has been the victim of a crime.
3925	3925	10 (8) The furnishing of information pursuant to the
3926	3926	11 Revised Uniform Unclaimed Property Act.
3927	3927	12 (9) The furnishing of information pursuant to the
3928	3928	13 Illinois Income Tax Act and the Illinois Estate and
3929	3929	14 Generation-Skipping Transfer Tax Act.
3930	3930	15 (10) The furnishing of information pursuant to the
3931	3931	16 federal Currency and Foreign Transactions Reporting Act,
3932	3932	17 (Title 31, United States Code, Section 1051 et seq.).
3933	3933	18 (11) The furnishing of information pursuant to any
3934	3934	19 other statute which by its terms or by regulations
3935	3935	20 promulgated thereunder requires the disclosure of
3936	3936	21 financial records other than by subpoena, summons,
3937	3937	22 warrant, or court order.
3938	3938	23 (12) The furnishing of information in accordance with
3939	3939	24 the federal Personal Responsibility and Work Opportunity
3940	3940	25 Reconciliation Act of 1996. Any savings bank governed by
3941	3941	26 this Act shall enter into an agreement for data exchanges
3942	3942
3943	3943
3944	3944
3945	3945
3946	3946
3947	3947	SB3726 - 110 - LRB103 38817 RTM 68954 b
3948	3948
3949	3949
3950	3950	SB3726- 111 -LRB103 38817 RTM 68954 b SB3726 - 111 - LRB103 38817 RTM 68954 b
3951	3951	SB3726 - 111 - LRB103 38817 RTM 68954 b
3952	3952	1 with a State agency provided the State agency pays to the
3953	3953	2 savings bank a reasonable fee not to exceed its actual
3954	3954	3 cost incurred. A savings bank providing information in
3955	3955	4 accordance with this item shall not be liable to any
3956	3956	5 account holder or other person for any disclosure of
3957	3957	6 information to a State agency, for encumbering or
3958	3958	7 surrendering any assets held by the savings bank in
3959	3959	8 response to a lien or order to withhold and deliver issued
3960	3960	9 by a State agency, or for any other action taken pursuant
3961	3961	10 to this item, including individual or mechanical errors,
3962	3962	11 provided the action does not constitute gross negligence
3963	3963	12 or willful misconduct. A savings bank shall have no
3964	3964	13 obligation to hold, encumber, or surrender assets until it
3965	3965	14 has been served with a subpoena, summons, warrant, court
3966	3966	15 or administrative order, lien, or levy.
3967	3967	16 (13) The furnishing of information to law enforcement
3968	3968	17 authorities, the Illinois Department on Aging and its
3969	3969	18 regional administrative and provider agencies, the
3970	3970	19 Department of Human Services Office of Inspector General,
3971	3971	20 or public guardians: (i) upon subpoena by the
3972	3972	21 investigatory entity or the guardian, or (ii) if there is
3973	3973	22 suspicion by the savings bank that a customer who is an
3974	3974	23 elderly person or person with a disability has been or may
3975	3975	24 become the victim of financial exploitation. For the
3976	3976	25 purposes of this item (13), the term: (i) "elderly person"
3977	3977	26 means a person who is 60 or more years of age, (ii) "person
3978	3978
3979	3979
3980	3980
3981	3981
3982	3982
3983	3983	SB3726 - 111 - LRB103 38817 RTM 68954 b
3984	3984
3985	3985
3986	3986	SB3726- 112 -LRB103 38817 RTM 68954 b SB3726 - 112 - LRB103 38817 RTM 68954 b
3987	3987	SB3726 - 112 - LRB103 38817 RTM 68954 b
3988	3988	1 with a disability" means a person who has or reasonably
3989	3989	2 appears to the savings bank to have a physical or mental
3990	3990	3 disability that impairs his or her ability to seek or
3991	3991	4 obtain protection from or prevent financial exploitation,
3992	3992	5 and (iii) "financial exploitation" means tortious or
3993	3993	6 illegal use of the assets or resources of an elderly
3994	3994	7 person or person with a disability, and includes, without
3995	3995	8 limitation, misappropriation of the assets or resources of
3996	3996	9 the elderly person or person with a disability by undue
3997	3997	10 influence, breach of fiduciary relationship, intimidation,
3998	3998	11 fraud, deception, extortion, or the use of assets or
3999	3999	12 resources in any manner contrary to law. A savings bank or
4000	4000	13 person furnishing information pursuant to this item (13)
4001	4001	14 shall be entitled to the same rights and protections as a
4002	4002	15 person furnishing information under the Adult Protective
4003	4003	16 Services Act and the Illinois Domestic Violence Act of
4004	4004	17 1986.
4005	4005	18 (14) The disclosure of financial records or
4006	4006	19 information as necessary to effect, administer, or enforce
4007	4007	20 a transaction requested or authorized by the member or
4008	4008	21 holder of capital, or in connection with:
4009	4009	22 (A) servicing or processing a financial product or
4010	4010	23 service requested or authorized by the member or
4011	4011	24 holder of capital;
4012	4012	25 (B) maintaining or servicing an account of a
4013	4013	26 member or holder of capital with the savings bank; or
4014	4014
4015	4015
4016	4016
4017	4017
4018	4018
4019	4019	SB3726 - 112 - LRB103 38817 RTM 68954 b
4020	4020
4021	4021
4022	4022	SB3726- 113 -LRB103 38817 RTM 68954 b SB3726 - 113 - LRB103 38817 RTM 68954 b
4023	4023	SB3726 - 113 - LRB103 38817 RTM 68954 b
4024	4024	1 (C) a proposed or actual securitization or
4025	4025	2 secondary market sale (including sales of servicing
4026	4026	3 rights) related to a transaction of a member or holder
4027	4027	4 of capital.
4028	4028	5 Nothing in this item (14), however, authorizes the
4029	4029	6 sale of the financial records or information of a member
4030	4030	7 or holder of capital without the consent of the member or
4031	4031	8 holder of capital.
4032	4032	9 (15) The exchange in the regular course of business of
4033	4033	10 information between a savings bank and any commonly owned
4034	4034	11 affiliate of the savings bank, subject to the provisions
4035	4035	12 of the Financial Institutions Insurance Sales Law.
4036	4036	13 (16) The disclosure of financial records or
4037	4037	14 information as necessary to protect against or prevent
4038	4038	15 actual or potential fraud, unauthorized transactions,
4039	4039	16 claims, or other liability.
4040	4040	17 (17)(a) The disclosure of financial records or
4041	4041	18 information related to a private label credit program
4042	4042	19 between a financial institution and a private label party
4043	4043	20 in connection with that private label credit program. Such
4044	4044	21 information is limited to outstanding balance, available
4045	4045	22 credit, payment and performance and account history,
4046	4046	23 product references, purchase information, and information
4047	4047	24 related to the identity of the customer.
4048	4048	25 (b)(1) For purposes of this paragraph (17) of
4049	4049	26 subsection (c) of Section 4013, a "private label credit
4050	4050
4051	4051
4052	4052
4053	4053
4054	4054
4055	4055	SB3726 - 113 - LRB103 38817 RTM 68954 b
4056	4056
4057	4057
4058	4058	SB3726- 114 -LRB103 38817 RTM 68954 b SB3726 - 114 - LRB103 38817 RTM 68954 b
4059	4059	SB3726 - 114 - LRB103 38817 RTM 68954 b
4060	4060	1 program" means a credit program involving a financial
4061	4061	2 institution and a private label party that is used by a
4062	4062	3 customer of the financial institution and the private
4063	4063	4 label party primarily for payment for goods or services
4064	4064	5 sold, manufactured, or distributed by a private label
4065	4065	6 party.
4066	4066	7 (2) For purposes of this paragraph (17) of subsection
4067	4067	8 (c) of Section 4013, a "private label party" means, with
4068	4068	9 respect to a private label credit program, any of the
4069	4069	10 following: a retailer, a merchant, a manufacturer, a trade
4070	4070	11 group, or any such person's affiliate, subsidiary, member,
4071	4071	12 agent, or service provider.
4072	4072	13 (18)(a) The furnishing of financial records of a
4073	4073	14 customer to the Department to aid the Department's initial
4074	4074	15 determination or subsequent re-determination of the
4075	4075	16 customer's eligibility for Medicaid and Medicaid long-term
4076	4076	17 care benefits for long-term care services, provided that
4077	4077	18 the savings bank receives the written consent and
4078	4078	19 authorization of the customer, which shall:
4079	4079	20 (1) have the customer's signature notarized;
4080	4080	21 (2) be signed by at least one witness who
4081	4081	22 certifies that he or she believes the customer to be of
4082	4082	23 sound mind and memory;
4083	4083	24 (3) be tendered to the savings bank at the
4084	4084	25 earliest practicable time following its execution,
4085	4085	26 certification, and notarization;
4086	4086
4087	4087
4088	4088
4089	4089
4090	4090
4091	4091	SB3726 - 114 - LRB103 38817 RTM 68954 b
4092	4092
4093	4093
4094	4094	SB3726- 115 -LRB103 38817 RTM 68954 b SB3726 - 115 - LRB103 38817 RTM 68954 b
4095	4095	SB3726 - 115 - LRB103 38817 RTM 68954 b
4096	4096	1 (4) specifically limit the disclosure of the
4097	4097	2 customer's financial records to the Department; and
4098	4098	3 (5) be in substantially the following form:
4099	4099	4 CUSTOMER CONSENT AND AUTHORIZATION
4100	4100	5 FOR RELEASE OF FINANCIAL RECORDS
4101	4101	6 I, ......................................., hereby authorize
4102	4102	7 (Name of Customer)
4103	4103	8 .............................................................
4104	4104	9 (Name of Financial Institution)
4105	4105	10 .............................................................
4106	4106	11 (Address of Financial Institution)
4107	4107	12 to disclose the following financial records:
4108	4108	13 any and all information concerning my deposit, savings, money
4109	4109	14 market, certificate of deposit, individual retirement,
4110	4110	15 retirement plan, 401(k) plan, incentive plan, employee benefit
4111	4111	16 plan, mutual fund and loan accounts (including, but not
4112	4112	17 limited to, any indebtedness or obligation for which I am a
4113	4113	18 co-borrower, co-obligor, guarantor, or surety), and any and
4114	4114	19 all other accounts in which I have an interest and any other
4115	4115	20 information regarding me in the possession of the Financial
4116	4116
4117	4117
4118	4118
4119	4119
4120	4120
4121	4121	SB3726 - 115 - LRB103 38817 RTM 68954 b
4122	4122
4123	4123
4124	4124	SB3726- 116 -LRB103 38817 RTM 68954 b SB3726 - 116 - LRB103 38817 RTM 68954 b
4125	4125	SB3726 - 116 - LRB103 38817 RTM 68954 b
4126	4126	1 Institution,
4127	4127	2 to the Illinois Department of Human Services or the Illinois
4128	4128	3 Department of Healthcare and Family Services, or both ("the
4129	4129	4 Department"), for the following purpose(s):
4130	4130	5 to aid in the initial determination or re-determination by the
4131	4131	6 State of Illinois of my eligibility for Medicaid long-term
4132	4132	7 care benefits, pursuant to applicable law.
4133	4133	8 I understand that this Consent and Authorization may be
4134	4134	9 revoked by me in writing at any time before my financial
4135	4135	10 records, as described above, are disclosed, and that this
4136	4136	11 Consent and Authorization is valid until the Financial
4137	4137	12 Institution receives my written revocation. This Consent and
4138	4138	13 Authorization shall constitute valid authorization for the
4139	4139	14 Department identified above to inspect all such financial
4140	4140	15 records set forth above, and to request and receive copies of
4141	4141	16 such financial records from the Financial Institution (subject
4142	4142	17 to such records search and reproduction reimbursement policies
4143	4143	18 as the Financial Institution may have in place). An executed
4144	4144	19 copy of this Consent and Authorization shall be sufficient and
4145	4145	20 as good as the original and permission is hereby granted to
4146	4146	21 honor a photostatic or electronic copy of this Consent and
4147	4147	22 Authorization. Disclosure is strictly limited to the
4148	4148	23 Department identified above and no other person or entity
4149	4149
4150	4150
4151	4151
4152	4152
4153	4153
4154	4154	SB3726 - 116 - LRB103 38817 RTM 68954 b
4155	4155
4156	4156
4157	4157	SB3726- 117 -LRB103 38817 RTM 68954 b SB3726 - 117 - LRB103 38817 RTM 68954 b
4158	4158	SB3726 - 117 - LRB103 38817 RTM 68954 b
4159	4159	1 shall receive my financial records pursuant to this Consent
4160	4160	2 and Authorization. By signing this form, I agree to indemnify
4161	4161	3 and hold the Financial Institution harmless from any and all
4162	4162	4 claims, demands, and losses, including reasonable attorneys
4163	4163	5 fees and expenses, arising from or incurred in its reliance on
4164	4164	6 this Consent and Authorization. As used herein, "Customer"
4165	4165	7 shall mean "Member" if the Financial Institution is a credit
4166	4166	8 union.
4167	4167	9 ....................... ......................
4168	4168	10 (Date) (Signature of Customer)
4169	4169	11 ......................
4170	4170	12 ......................
4171	4171	13 (Address of Customer)
4172	4172	14 ......................
4173	4173	15 (Customer's birth date)
4174	4174	16 (month/day/year)
4175	4175	17 The undersigned witness certifies that .................,
4176	4176	18 known to me to be the same person whose name is subscribed as
4177	4177	19 the customer to the foregoing Consent and Authorization,
4178	4178	20 appeared before me and the notary public and acknowledged
4179	4179	21 signing and delivering the instrument as his or her free and
4180	4180	22 voluntary act for the uses and purposes therein set forth. I
4181	4181
4182	4182
4183	4183
4184	4184
4185	4185
4186	4186	SB3726 - 117 - LRB103 38817 RTM 68954 b
4187	4187
4188	4188
4189	4189	SB3726- 118 -LRB103 38817 RTM 68954 b SB3726 - 118 - LRB103 38817 RTM 68954 b
4190	4190	SB3726 - 118 - LRB103 38817 RTM 68954 b
4191	4191	1 believe him or her to be of sound mind and memory. The
4192	4192	2 undersigned witness also certifies that the witness is not an
4193	4193	3 owner, operator, or relative of an owner or operator of a
4194	4194	4 long-term care facility in which the customer is a patient or
4195	4195	5 resident.
4196	4196	6 Dated: ................. ......................
4197	4197	7 (Signature of Witness)
4198	4198	8 ......................
4199	4199	9 (Print Name of Witness)
4200	4200	10 ......................
4201	4201	11 ......................
4202	4202	12 (Address of Witness)
4203	4203	13 State of Illinois)
4204	4204	14 ) ss.
4205	4205	15 County of .......)
4206	4206	16 The undersigned, a notary public in and for the above county
4207	4207	17 and state, certifies that .........., known to me to be the
4208	4208	18 same person whose name is subscribed as the customer to the
4209	4209	19 foregoing Consent and Authorization, appeared before me
4210	4210	20 together with the witness, .........., in person and
4211	4211	21 acknowledged signing and delivering the instrument as the free
4212	4212
4213	4213
4214	4214
4215	4215
4216	4216
4217	4217	SB3726 - 118 - LRB103 38817 RTM 68954 b
4218	4218
4219	4219
4220	4220	SB3726- 119 -LRB103 38817 RTM 68954 b SB3726 - 119 - LRB103 38817 RTM 68954 b
4221	4221	SB3726 - 119 - LRB103 38817 RTM 68954 b
4222	4222	1 and voluntary act of the customer for the uses and purposes
4223	4223	2 therein set forth.
4224	4224	3 Dated:.......................................................
4225	4225	4 Notary Public:...............................................
4226	4226	5 My commission expires:.......................................
4227	4227	6 (b) In no event shall the savings bank distribute the
4228	4228	7 customer's financial records to the long-term care
4229	4229	8 facility from which the customer seeks initial or
4230	4230	9 continuing residency or long-term care services.
4231	4231	10 (c) A savings bank providing financial records of a
4232	4232	11 customer in good faith relying on a consent and
4233	4233	12 authorization executed and tendered in accordance with
4234	4234	13 this paragraph (18) shall not be liable to the customer or
4235	4235	14 any other person in relation to the savings bank's
4236	4236	15 disclosure of the customer's financial records to the
4237	4237	16 Department. The customer signing the consent and
4238	4238	17 authorization shall indemnify and hold the savings bank
4239	4239	18 harmless that relies in good faith upon the consent and
4240	4240	19 authorization and incurs a loss because of such reliance.
4241	4241	20 The savings bank recovering under this indemnification
4242	4242	21 provision shall also be entitled to reasonable attorney's
4243	4243	22 fees and the expenses of recovery.
4244	4244	23 (d) A savings bank shall be reimbursed by the customer
4245	4245	24 for all costs reasonably necessary and directly incurred
4246	4246
4247	4247
4248	4248
4249	4249
4250	4250
4251	4251	SB3726 - 119 - LRB103 38817 RTM 68954 b
4252	4252
4253	4253
4254	4254	SB3726- 120 -LRB103 38817 RTM 68954 b SB3726 - 120 - LRB103 38817 RTM 68954 b
4255	4255	SB3726 - 120 - LRB103 38817 RTM 68954 b
4256	4256	1 in searching for, reproducing, and disclosing a customer's
4257	4257	2 financial records required or requested to be produced
4258	4258	3 pursuant to any consent and authorization executed under
4259	4259	4 this paragraph (18). The requested financial records shall
4260	4260	5 be delivered to the Department within 10 days after
4261	4261	6 receiving a properly executed consent and authorization or
4262	4262	7 at the earliest practicable time thereafter if the
4263	4263	8 requested records cannot be delivered within 10 days, but
4264	4264	9 delivery may be delayed until the final reimbursement of
4265	4265	10 all costs is received by the savings bank. The savings
4266	4266	11 bank may honor a photostatic or electronic copy of a
4267	4267	12 properly executed consent and authorization.
4268	4268	13 (e) Nothing in this paragraph (18) shall impair,
4269	4269	14 abridge, or abrogate the right of a customer to:
4270	4270	15 (1) directly disclose his or her financial records
4271	4271	16 to the Department or any other person; or
4272	4272	17 (2) authorize his or her attorney or duly
4273	4273	18 appointed agent to request and obtain the customer's
4274	4274	19 financial records and disclose those financial records
4275	4275	20 to the Department.
4276	4276	21 (f) For purposes of this paragraph (18), "Department"
4277	4277	22 means the Department of Human Services and the Department
4278	4278	23 of Healthcare and Family Services or any successor
4279	4279	24 administrative agency of either agency.
4280	4280	25 (d) A savings bank may not disclose to any person, except
4281	4281	26 to the member or holder of capital or his duly authorized
4282	4282
4283	4283
4284	4284
4285	4285
4286	4286
4287	4287	SB3726 - 120 - LRB103 38817 RTM 68954 b
4288	4288
4289	4289
4290	4290	SB3726- 121 -LRB103 38817 RTM 68954 b SB3726 - 121 - LRB103 38817 RTM 68954 b
4291	4291	SB3726 - 121 - LRB103 38817 RTM 68954 b
4292	4292	1 agent, any financial records relating to that member or
4293	4293	2 shareholder of the savings bank unless:
4294	4294	3 (1) the member or shareholder has authorized
4295	4295	4 disclosure to the person; or
4296	4296	5 (2) the financial records are disclosed in response to
4297	4297	6 a lawful subpoena, summons, warrant, citation to discover
4298	4298	7 assets, or court order that meets the requirements of
4299	4299	8 subsection (e) of this Section.
4300	4300	9 (e) A savings bank shall disclose financial records under
4301	4301	10 subsection (d) of this Section pursuant to a lawful subpoena,
4302	4302	11 summons, warrant, citation to discover assets, or court order
4303	4303	12 only after the savings bank sends a copy of the subpoena,
4304	4304	13 summons, warrant, citation to discover assets, or court order
4305	4305	14 to the person establishing the relationship with the savings
4306	4306	15 bank, if living, and otherwise, the person's personal
4307	4307	16 representative, if known, at the person's last known address
4308	4308	17 by first class mail, postage prepaid, through a third-party
4309	4309	18 commercial carrier or courier with delivery charge fully
4310	4310	19 prepaid, by hand delivery, or by electronic delivery at an
4311	4311	20 email address on file with the savings bank (if the person
4312	4312	21 establishing the relationship with the savings bank has
4313	4313	22 consented to receive electronic delivery and, if the person
4314	4314	23 establishing the relationship with the savings bank is a
4315	4315	24 consumer, the person has consented under the consumer consent
4316	4316	25 provisions set forth in Section 7001 of Title 15 of the United
4317	4317	26 States Code), unless the savings bank is specifically
4318	4318
4319	4319
4320	4320
4321	4321
4322	4322
4323	4323	SB3726 - 121 - LRB103 38817 RTM 68954 b
4324	4324
4325	4325
4326	4326	SB3726- 122 -LRB103 38817 RTM 68954 b SB3726 - 122 - LRB103 38817 RTM 68954 b
4327	4327	SB3726 - 122 - LRB103 38817 RTM 68954 b
4328	4328	1 prohibited from notifying the person by order of court or by
4329	4329	2 applicable State or federal law. A savings bank shall not mail
4330	4330	3 a copy of a subpoena to any person pursuant to this subsection
4331	4331	4 if the subpoena was issued by a grand jury.
4332	4332	5 (f) Any officer or employee of a savings bank who
4333	4333	6 knowingly and willfully furnishes financial records in
4334	4334	7 violation of this Section is guilty of a business offense and,
4335	4335	8 upon conviction, shall be fined not more than $1,000.
4336	4336	9 (g) Any person who knowingly and willfully induces or
4337	4337	10 attempts to induce any officer or employee of a savings bank to
4338	4338	11 disclose financial records in violation of this Section is
4339	4339	12 guilty of a business offense and, upon conviction, shall be
4340	4340	13 fined not more than $1,000.
4341	4341	14 (h) If any member or shareholder desires to communicate
4342	4342	15 with the other members or shareholders of the savings bank
4343	4343	16 with reference to any question pending or to be presented at an
4344	4344	17 annual or special meeting, the savings bank shall give that
4345	4345	18 person, upon request, a statement of the approximate number of
4346	4346	19 members or shareholders entitled to vote at the meeting and an
4347	4347	20 estimate of the cost of preparing and delivering mailing the
4348	4348	21 communication. The requesting member shall submit the
4349	4349	22 communication to the Commissioner who, upon finding it to be
4350	4350	23 appropriate and truthful, shall direct that it be prepared and
4351	4351	24 delivered mailed to the members upon the requesting member's
4352	4352	25 or shareholder's payment or adequate provision for payment of
4353	4353	26 the expenses of preparation and delivery mailing.
4354	4354
4355	4355
4356	4356
4357	4357
4358	4358
4359	4359	SB3726 - 122 - LRB103 38817 RTM 68954 b
4360	4360
4361	4361
4362	4362	SB3726- 123 -LRB103 38817 RTM 68954 b SB3726 - 123 - LRB103 38817 RTM 68954 b
4363	4363	SB3726 - 123 - LRB103 38817 RTM 68954 b
4364	4364	1 (i) A savings bank shall be reimbursed for costs that are
4365	4365	2 necessary and that have been directly incurred in searching
4366	4366	3 for, reproducing, or transporting books, papers, records, or
4367	4367	4 other data of a customer required to be reproduced pursuant to
4368	4368	5 a lawful subpoena, warrant, citation to discover assets, or
4369	4369	6 court order.
4370	4370	7 (j) Notwithstanding the provisions of this Section, a
4371	4371	8 savings bank may sell or otherwise make use of lists of
4372	4372	9 customers' names and addresses. All other information
4373	4373	10 regarding a customer's account is subject to the disclosure
4374	4374	11 provisions of this Section. At the request of any customer,
4375	4375	12 that customer's name and address shall be deleted from any
4376	4376	13 list that is to be sold or used in any other manner beyond
4377	4377	14 identification of the customer's accounts.
4378	4378	15 (Source: P.A. 102-873, eff. 5-13-22.)
4379	4379	16 (205 ILCS 205/6002) (from Ch. 17, par. 7306-2)
4380	4380	17 Sec. 6002. Investment in loans.
4381	4381	18 (a) Subject to the regulations of the Commissioner, a
4382	4382	19 savings bank may loan funds as follows:
4383	4383	20 (1) On the security of deposit accounts, but no such
4384	4384	21 loan shall exceed the withdrawal value of the pledged
4385	4385	22 account.
4386	4386	23 (2) On the security of real estate:
4387	4387	24 (A) of a value, determined in accordance with this
4388	4388	25 Act, sufficient to provide good and ample security for
4389	4389
4390	4390
4391	4391
4392	4392
4393	4393
4394	4394	SB3726 - 123 - LRB103 38817 RTM 68954 b
4395	4395
4396	4396
4397	4397	SB3726- 124 -LRB103 38817 RTM 68954 b SB3726 - 124 - LRB103 38817 RTM 68954 b
4398	4398	SB3726 - 124 - LRB103 38817 RTM 68954 b
4399	4399	1 the loan;
4400	4400	2 (B) with a fee simple title or a leasehold title;
4401	4401	3 (C) with the title established by evidence of
4402	4402	4 title as is consistent with sound lending practices in
4403	4403	5 the locality;
4404	4404	6 (D) with the security interest in the real estate
4405	4405	7 evidenced by an appropriate written instrument and the
4406	4406	8 loan evidenced by a note, bond, or similar written
4407	4407	9 instrument; a loan on the security of the whole of the
4408	4408	10 beneficial interest in a land trust satisfies the
4409	4409	11 requirements of this paragraph if the title to the
4410	4410	12 land is held by a corporate trustee and if the real
4411	4411	13 estate held in the land trust meets the other
4412	4412	14 requirements of this subsection;
4413	4413	15 (E) with a mortgage loan not to exceed 40 years.
4414	4414	16 (3) For the purpose of repair, improvement,
4415	4415	17 rehabilitation, furnishing, or equipment of real estate.
4416	4416	18 (4) For the purpose of financing or refinancing an
4417	4417	19 existing ownership interest in certificates of stock,
4418	4418	20 certificates of beneficial interest, other evidence of an
4419	4419	21 ownership interest in, or a proprietary lease from a
4420	4420	22 corporation, trust, or partnership formed for the purpose
4421	4421	23 of the cooperative ownership of real estate, secured by
4422	4422	24 the assignment or transfer of certificates or other
4423	4423	25 evidence of ownership of the borrower.
4424	4424	26 (5) Through the purchase of loans that, at the time of
4425	4425
4426	4426
4427	4427
4428	4428
4429	4429
4430	4430	SB3726 - 124 - LRB103 38817 RTM 68954 b
4431	4431
4432	4432
4433	4433	SB3726- 125 -LRB103 38817 RTM 68954 b SB3726 - 125 - LRB103 38817 RTM 68954 b
4434	4434	SB3726 - 125 - LRB103 38817 RTM 68954 b
4435	4435	1 purchase, the savings bank could make in accordance with
4436	4436	2 this Section and the bylaws.
4437	4437	3 (6) Through the purchase of installment contracts for
4438	4438	4 the sale of real estate and title thereto that is subject
4439	4439	5 to the contracts, but in each instance only if the savings
4440	4440	6 bank, at the time of purchase, could make a mortgage loan
4441	4441	7 of the same amount and for the same length of time on the
4442	4442	8 security of the real estate.
4443	4443	9 (7) Through loans guaranteed or insured, wholly or in
4444	4444	10 part, by the United States or any of its
4445	4445	11 instrumentalities.
4446	4446	12 (8) Subject to regulations adopted by the
4447	4447	13 Commissioner, through secured or unsecured loans for
4448	4448	14 business, corporate, commercial, or agricultural purposes;
4449	4449	15 provided that the total of all loans granted under this
4450	4450	16 paragraph shall not exceed 15% of the savings bank's total
4451	4451	17 assets unless a greater amount is authorized in writing by
4452	4452	18 the Commissioner.
4453	4453	19 (9) For the purpose of manufactured home financing
4454	4454	20 subject, however, to the regulation of the Commissioner.
4455	4455	21 As used in this Section, "manufactured home" means a
4456	4456	22 manufactured home as defined in subdivision (53) of
4457	4457	23 Section 9-102 of the Uniform Commercial Code.
4458	4458	24 (10) Through loans secured by the cash surrender value
4459	4459	25 of any life insurance policy or any collateral that would
4460	4460	26 be a legal investment under the terms of this Act if made
4461	4461
4462	4462
4463	4463
4464	4464
4465	4465
4466	4466	SB3726 - 125 - LRB103 38817 RTM 68954 b
4467	4467
4468	4468
4469	4469	SB3726- 126 -LRB103 38817 RTM 68954 b SB3726 - 126 - LRB103 38817 RTM 68954 b
4470	4470	SB3726 - 126 - LRB103 38817 RTM 68954 b
4471	4471	1 by the savings bank.
4472	4472	2 (11) Any provision of this Act or any other law,
4473	4473	3 except for paragraph (18) of Section 6003, to the contrary
4474	4474	4 notwithstanding, but subject to the Financial Institutions
4475	4475	5 Insurance Sales Law and subject to the Commissioner's
4476	4476	6 regulations, any savings bank may make any loan or
4477	4477	7 investment or engage in any activity that it could make or
4478	4478	8 engage in if it were organized under State law as a savings
4479	4479	9 and loan association or under federal law as a federal
4480	4480	10 savings and loan association or federal savings bank.
4481	4481	11 (12) A savings bank may issue letters of credit or
4482	4482	12 other similar arrangements only as provided for by
4483	4483	13 regulation of the Commissioner with regard to aggregate
4484	4484	14 amounts permitted, take out commitments for stand-by
4485	4485	15 letters of credit, underlying documentation and
4486	4486	16 underwriting, legal limitations on loans of the savings
4487	4487	17 bank, control and subsidiary records, and other procedures
4488	4488	18 deemed necessary by the Commissioner.
4489	4489	19 (13) For the purpose of automobile financing, subject
4490	4490	20 to the regulation of the Commissioner.
4491	4491	21 (14) For the purpose of financing primary, secondary,
4492	4492	22 undergraduate, or postgraduate education.
4493	4493	23 (15) Through revolving lines of credit on the security
4494	4494	24 of a first or junior lien on the borrower's personal
4495	4495	25 residence, based primarily on the borrower's equity, the
4496	4496	26 proceeds of which may be used for any purpose; those loans
4497	4497
4498	4498
4499	4499
4500	4500
4501	4501
4502	4502	SB3726 - 126 - LRB103 38817 RTM 68954 b
4503	4503
4504	4504
4505	4505	SB3726- 127 -LRB103 38817 RTM 68954 b SB3726 - 127 - LRB103 38817 RTM 68954 b
4506	4506	SB3726 - 127 - LRB103 38817 RTM 68954 b
4507	4507	1 being commonly referred to as home equity loans.
4508	4508	2 (16) As secured or unsecured credit to cover the
4509	4509	3 payment of checks, drafts, or other funds transfer orders
4510	4510	4 in excess of the available balance of an account on which
4511	4511	5 they are drawn, subject to the regulations of the
4512	4512	6 Commissioner.
4513	4513	7 (17) Subject to the conditions and limitations imposed
4514	4514	8 in the Illinois Department of Financial and Professional
4515	4515	9 Regulation Division of Banking Interpretive Letter 2017-01
4516	4516	10 (May 2, 2017), through the purchase of fixed rate annuity
4517	4517	11 contracts.
4518	4518	12 (b) For purposes of this Section, "real estate" includes a
4519	4519	13 manufactured home as defined in subdivision (53) of Section
4520	4520	14 9-102 of the Uniform Commercial Code which is real property as
4521	4521	15 defined in Section 5-35 of the Conveyance and Encumbrance of
4522	4522	16 Manufactured Homes as Real Property and Severance Act.
4523	4523	17 (Source: P.A. 98-749, eff. 7-16-14.)
4524	4524	18 (205 ILCS 205/7005) (from Ch. 17, par. 7307-5)
4525	4525	19 Sec. 7005. Holders of deposit accounts.
4526	4526	20 (a) Deposit accounts of a savings bank may be held as
4527	4527	21 follows:
4528	4528	22 (1) by any individual in his own right, regardless of age
4529	4529	23 or marital status, or by 2 or more individuals;
4530	4530	24 (2) by a fiduciary when authorized by law;
4531	4531	25 (3) by a government or governmental instrumentality when
4532	4532
4533	4533
4534	4534
4535	4535
4536	4536
4537	4537	SB3726 - 127 - LRB103 38817 RTM 68954 b
4538	4538
4539	4539
4540	4540	SB3726- 128 -LRB103 38817 RTM 68954 b SB3726 - 128 - LRB103 38817 RTM 68954 b
4541	4541	SB3726 - 128 - LRB103 38817 RTM 68954 b
4542	4542	1 authorized by law; and
4543	4543	2 (4) by any corporation or other person when not prohibited
4544	4544	3 by law.
4545	4545	4 (b) A savings bank may accept deposits made by a minor and
4546	4546	5 may open an account in the name of such minor and the rules and
4547	4547	6 regulations of such savings bank with respect to each such
4548	4548	7 deposit and account shall be as binding upon such minor as if
4549	4549	8 such minor were of full age and legal capacity. The receipt,
4550	4550	9 acquittance or order of payment of such minor on such account
4551	4551	10 or deposit or any part thereof shall be as binding upon such
4552	4552	11 minor as if such minor were of full age and legal capacity.
4553	4553	12 (Source: P.A. 86-1213.)
4554	4554	13 (205 ILCS 205/8002) (from Ch. 17, par. 7308-2)
4555	4555	14 Sec. 8002. Procedure to amend articles.
4556	4556	15 (a) The procedure to effect an amendment of articles of
4557	4557	16 incorporation shall be as follows:
4558	4558	17 (1) The board of directors shall adopt a resolution
4559	4559	18 setting forth the proposed amendment and direct that it be
4560	4560	19 submitted to a vote at an annual or special meeting of the
4561	4561	20 members or stockholders.
4562	4562	21 (2) The proposed amendment shall be set forth in the
4563	4563	22 notice of meeting delivered mailed as prescribed in
4564	4564	23 Section 4003 of this Act.
4565	4565	24 (3) The proposed amendment shall be adopted upon
4566	4566	25 receiving the affirmative vote of a majority of the votes
4567	4567
4568	4568
4569	4569
4570	4570
4571	4571
4572	4572	SB3726 - 128 - LRB103 38817 RTM 68954 b
4573	4573
4574	4574
4575	4575	SB3726- 129 -LRB103 38817 RTM 68954 b SB3726 - 129 - LRB103 38817 RTM 68954 b
4576	4576	SB3726 - 129 - LRB103 38817 RTM 68954 b
4577	4577	1 entitled to be cast, unless the articles of incorporation
4578	4578	2 set forth a requirement that amendments of the articles of
4579	4579	3 incorporation shall be adopted by an affirmative vote of
4580	4580	4 two-thirds of the total number of votes entitled to be
4581	4581	5 cast.
4582	4582	6 (b) A report of proceedings, including the notice given,
4583	4583	7 the time of delivery mailing, the amendment adopted, the vote
4584	4584	8 thereon, and the total number of votes entitled to be cast,
4585	4585	9 verified by the president, vice president, or managing officer
4586	4586	10 and attested to by the secretary of the savings bank, shall be
4587	4587	11 filed with the Secretary within 5 business days after the
4588	4588	12 vote.
4589	4589	13 (c) Each adopted amendment shall be subject to the same
4590	4590	14 inquiry as the corresponding provision in the original
4591	4591	15 articles. If the Secretary approves an amendment he shall
4592	4592	16 issue to the savings bank a certificate setting forth the
4593	4593	17 amendment and his approval thereof. The Secretary shall
4594	4594	18 approve an amendment, or state any objections to an amendment,
4595	4595	19 within 30 days after the receipt of the amendment adopted by
4596	4596	20 the board. If no objections are specified by the Secretary
4597	4597	21 within that time frame, the amendment will be deemed to be
4598	4598	22 approved by the Secretary. The amendment shall become
4599	4599	23 effective upon issuance of the certificate.
4600	4600	24 (d) An amendment of the articles of incorporation approved
4601	4601	25 by the board of directors, the Secretary, and members as part
4602	4602	26 of merger, sale of substantially all assets, change in
4603	4603
4604	4604
4605	4605
4606	4606
4607	4607
4608	4608	SB3726 - 129 - LRB103 38817 RTM 68954 b
4609	4609
4610	4610
4611	4611	SB3726- 130 -LRB103 38817 RTM 68954 b SB3726 - 130 - LRB103 38817 RTM 68954 b
4612	4612	SB3726 - 130 - LRB103 38817 RTM 68954 b
4613	4613	1 control, holding company reorganization, or mutual to stock
4614	4614	2 form conversion need not be approved under this Section.
4615	4615	3 (e) No amendment of articles of incorporation shall affect
4616	4616	4 any existing cause of action either in favor of or against the
4617	4617	5 savings bank or any pending action in which the savings bank
4618	4618	6 shall be a party or the existing rights of persons other than
4619	4619	7 members of the savings bank.
4620	4620	8 (Source: P.A. 97-492, eff. 1-1-12.)
4621	4621	9 (205 ILCS 205/8016) (from Ch. 17, par. 7308-16)
4622	4622	10 Sec. 8016. Procedure for conversion from a savings bank
4623	4623	11 charter.
4624	4624	12 (a) Nothing in this Act shall be construed to require the
4625	4625	13 approval of State authority as a condition to the right of a
4626	4626	14 savings bank, pursuant to the laws of the United States or of
4627	4627	15 this State, to be converted into a national bank or any other
4628	4628	16 depository institution chartered under the laws and
4629	4629	17 regulations of this State or to merge with any other
4630	4630	18 depository institution chartered under the laws and
4631	4631	19 regulations of this State or with a national bank under a
4632	4632	20 national charter. Any savings bank operating under this Act
4633	4633	21 may convert to any other depository institution chartered
4634	4634	22 under the laws and regulations of this State or under the laws
4635	4635	23 and regulations of the United States in accordance with the
4636	4636	24 following requirements:
4637	4637	25 (1) The converting savings bank shall notify the
4638	4638
4639	4639
4640	4640
4641	4641
4642	4642
4643	4643	SB3726 - 130 - LRB103 38817 RTM 68954 b
4644	4644
4645	4645
4646	4646	SB3726- 131 -LRB103 38817 RTM 68954 b SB3726 - 131 - LRB103 38817 RTM 68954 b
4647	4647	SB3726 - 131 - LRB103 38817 RTM 68954 b
4648	4648	1 Secretary of its intent to convert. Notice must should be
4649	4649	2 submitted when the savings bank first submits a request to
4650	4650	3 convert to the appropriate State or federal authorities,
4651	4651	4 but in no case less than 30 days before the conversion.
4652	4652	5 Approval of the conversion by the Secretary shall not be
4653	4653	6 required except when the savings bank converts to a
4654	4654	7 depository institution that is also chartered by the
4655	4655	8 Secretary in which case the savings bank shall comply with
4656	4656	9 State law and regulations applicable to the conversion to
4657	4657	10 such depository institution.
4658	4658	11 (2) The board of directors shall approve a plan of
4659	4659	12 conversion by resolution adopted by majority vote of all
4660	4660	13 of the directors.
4661	4661	14 (3) Upon notice prescribed by subsection (a) of
4662	4662	15 Section 4003 of this Act, the plan of conversion shall be
4663	4663	16 adopted upon receiving in the affirmative two-thirds or
4664	4664	17 more of the total number of votes that all members of the
4665	4665	18 savings bank are entitled to cast. A report of
4666	4666	19 proceedings, certified by the president or a vice
4667	4667	20 president and attested by the secretary of the savings
4668	4668	21 bank, shall be filed promptly with the Secretary.
4669	4669	22 (4) The savings bank shall pay all accrued supervisory
4670	4670	23 fees and other fees and assessments under this Act as of
4671	4671	24 the date of conversion.
4672	4672	25 (5) Upon completion of the conversion, the charter of
4673	4673	26 the savings bank shall automatically terminate and the
4674	4674
4675	4675
4676	4676
4677	4677
4678	4678
4679	4679	SB3726 - 131 - LRB103 38817 RTM 68954 b
4680	4680
4681	4681
4682	4682	SB3726- 132 -LRB103 38817 RTM 68954 b SB3726 - 132 - LRB103 38817 RTM 68954 b
4683	4683	SB3726 - 132 - LRB103 38817 RTM 68954 b
4684	4684	1 savings bank charter or a true copy of the charter shall be
4685	4685	2 returned to the Secretary.
4686	4686	3 (b) (Blank).
4687	4687	4 (Source: P.A. 97-492, eff. 1-1-12.)
4688	4688	5 (205 ILCS 205/11008) (from Ch. 17, par. 7311-8)
4689	4689	6 Sec. 11008. Unauthorized participation by convicted
4690	4690	7 individual.
4691	4691	8 (a) Except with the prior written consent of the
4692	4692	9 Commissioner, no person who has been convicted of any criminal
4693	4693	10 offense involving dishonesty or a breach of trust may own or
4694	4694	11 control directly or indirectly more than 0.001% of the capital
4695	4695	12 stock of, receive benefit directly or indirectly from, or
4696	4696	13 participate directly or indirectly in any manner in the
4697	4697	14 affairs of a savings bank.
4698	4698	15 (b) A savings bank may not permit participation by a
4699	4699	16 person described in subsection (a).
4700	4700	17 (c)(Blank). Whoever knowingly violates subsection (a) or
4701	4701	18 (b) is guilty of a Class 3 felony and may be fined not more
4702	4702	19 than $10,000 for each day of violation.
4703	4703	20 (Source: P.A. 91-97, eff. 7-9-99; 92-483, eff. 8-23-01.)
4704	4704	21 (205 ILCS 205/1007.100 rep.)
4705	4705	22 (205 ILCS 205/11011 rep.)
4706	4706	23 Section 15. The Savings Bank Act is amended by repealing
4707	4707	24 Sections 1007.100 and 11011.
4708	4708
4709	4709
4710	4710
4711	4711
4712	4712
4713	4713	SB3726 - 132 - LRB103 38817 RTM 68954 b
4714	4714
4715	4715
4716	4716	SB3726- 133 -LRB103 38817 RTM 68954 b SB3726 - 133 - LRB103 38817 RTM 68954 b
4717	4717	SB3726 - 133 - LRB103 38817 RTM 68954 b
4718	4718	1 Section 99. Effective date. This Act takes effect upon
4719	4719	2 becoming law.
4720	4720	SB3726- 134 -LRB103 38817 RTM 68954 b 1 INDEX 2 Statutes amended in order of appearance 3 205 ILCS 5/2from Ch. 17, par. 3024 205 ILCS 5/5from Ch. 17, par. 3115 205 ILCS 5/13from Ch. 17, par. 3206 205 ILCS 5/14from Ch. 17, par. 3217 205 ILCS 5/15from Ch. 17, par. 3228 205 ILCS 5/16from Ch. 17, par. 3239 205 ILCS 5/16.510 205 ILCS 5/20from Ch. 17, par. 32711 205 ILCS 5/32.1from Ch. 17, par. 34012 205 ILCS 5/40from Ch. 17, par. 35013 205 ILCS 5/4814 205 ILCS 5/48.1from Ch. 17, par. 36015 205 ILCS 5/48.2from Ch. 17, par. 360.116 205 ILCS 5/49from Ch. 17, par. 36117 205 ILCS 5/78from Ch. 17, par. 39018 205 ILCS 5/80from Ch. 17, par. 39219 205 ILCS 205/1008from Ch. 17, par. 7301-820 205 ILCS 205/4002from Ch. 17, par. 7304-221 205 ILCS 205/4003from Ch. 17, par. 7304-322 205 ILCS 205/4013from Ch. 17, par. 7304-1323 205 ILCS 205/6002from Ch. 17, par. 7306-224 205 ILCS 205/7005from Ch. 17, par. 7307-525 205 ILCS 205/8002from Ch. 17, par. 7308-2 SB3726- 135 -LRB103 38817 RTM 68954 b SB3726- 134 -LRB103 38817 RTM 68954 b SB3726 - 134 - LRB103 38817 RTM 68954 b 1 INDEX 2 Statutes amended in order of appearance 3 205 ILCS 5/2 from Ch. 17, par. 302 4 205 ILCS 5/5 from Ch. 17, par. 311 5 205 ILCS 5/13 from Ch. 17, par. 320 6 205 ILCS 5/14 from Ch. 17, par. 321 7 205 ILCS 5/15 from Ch. 17, par. 322 8 205 ILCS 5/16 from Ch. 17, par. 323 9 205 ILCS 5/16.5 10 205 ILCS 5/20 from Ch. 17, par. 327 11 205 ILCS 5/32.1 from Ch. 17, par. 340 12 205 ILCS 5/40 from Ch. 17, par. 350 13 205 ILCS 5/48 14 205 ILCS 5/48.1 from Ch. 17, par. 360 15 205 ILCS 5/48.2 from Ch. 17, par. 360.1 16 205 ILCS 5/49 from Ch. 17, par. 361 17 205 ILCS 5/78 from Ch. 17, par. 390 18 205 ILCS 5/80 from Ch. 17, par. 392 19 205 ILCS 205/1008 from Ch. 17, par. 7301-8 20 205 ILCS 205/4002 from Ch. 17, par. 7304-2 21 205 ILCS 205/4003 from Ch. 17, par. 7304-3 22 205 ILCS 205/4013 from Ch. 17, par. 7304-13 23 205 ILCS 205/6002 from Ch. 17, par. 7306-2 24 205 ILCS 205/7005 from Ch. 17, par. 7307-5 25 205 ILCS 205/8002 from Ch. 17, par. 7308-2 SB3726- 135 -LRB103 38817 RTM 68954 b SB3726 - 135 - LRB103 38817 RTM 68954 b
4721	4721	SB3726- 134 -LRB103 38817 RTM 68954 b SB3726 - 134 - LRB103 38817 RTM 68954 b
4722	4722	SB3726 - 134 - LRB103 38817 RTM 68954 b
4723	4723	1 INDEX
4724	4724	2 Statutes amended in order of appearance
4725	4725	3 205 ILCS 5/2 from Ch. 17, par. 302
4726	4726	4 205 ILCS 5/5 from Ch. 17, par. 311
4727	4727	5 205 ILCS 5/13 from Ch. 17, par. 320
4728	4728	6 205 ILCS 5/14 from Ch. 17, par. 321
4729	4729	7 205 ILCS 5/15 from Ch. 17, par. 322
4730	4730	8 205 ILCS 5/16 from Ch. 17, par. 323
4731	4731	9 205 ILCS 5/16.5
4732	4732	10 205 ILCS 5/20 from Ch. 17, par. 327
4733	4733	11 205 ILCS 5/32.1 from Ch. 17, par. 340
4734	4734	12 205 ILCS 5/40 from Ch. 17, par. 350
4735	4735	13 205 ILCS 5/48
4736	4736	14 205 ILCS 5/48.1 from Ch. 17, par. 360
4737	4737	15 205 ILCS 5/48.2 from Ch. 17, par. 360.1
4738	4738	16 205 ILCS 5/49 from Ch. 17, par. 361
4739	4739	17 205 ILCS 5/78 from Ch. 17, par. 390
4740	4740	18 205 ILCS 5/80 from Ch. 17, par. 392
4741	4741	19 205 ILCS 205/1008 from Ch. 17, par. 7301-8
4742	4742	20 205 ILCS 205/4002 from Ch. 17, par. 7304-2
4743	4743	21 205 ILCS 205/4003 from Ch. 17, par. 7304-3
4744	4744	22 205 ILCS 205/4013 from Ch. 17, par. 7304-13
4745	4745	23 205 ILCS 205/6002 from Ch. 17, par. 7306-2
4746	4746	24 205 ILCS 205/7005 from Ch. 17, par. 7307-5
4747	4747	25 205 ILCS 205/8002 from Ch. 17, par. 7308-2
4748	4748	SB3726- 135 -LRB103 38817 RTM 68954 b SB3726 - 135 - LRB103 38817 RTM 68954 b
4749	4749	SB3726 - 135 - LRB103 38817 RTM 68954 b
4750	4750
4751	4751
4752	4752
4753	4753
4754	4754
4755	4755	SB3726 - 133 - LRB103 38817 RTM 68954 b
4756	4756
4757	4757
4758	4758
4759	4759	SB3726- 134 -LRB103 38817 RTM 68954 b SB3726 - 134 - LRB103 38817 RTM 68954 b
4760	4760	SB3726 - 134 - LRB103 38817 RTM 68954 b
4761	4761	1 INDEX
4762	4762	2 Statutes amended in order of appearance
4763	4763	3 205 ILCS 5/2 from Ch. 17, par. 302
4764	4764	4 205 ILCS 5/5 from Ch. 17, par. 311
4765	4765	5 205 ILCS 5/13 from Ch. 17, par. 320
4766	4766	6 205 ILCS 5/14 from Ch. 17, par. 321
4767	4767	7 205 ILCS 5/15 from Ch. 17, par. 322
4768	4768	8 205 ILCS 5/16 from Ch. 17, par. 323
4769	4769	9 205 ILCS 5/16.5
4770	4770	10 205 ILCS 5/20 from Ch. 17, par. 327
4771	4771	11 205 ILCS 5/32.1 from Ch. 17, par. 340
4772	4772	12 205 ILCS 5/40 from Ch. 17, par. 350
4773	4773	13 205 ILCS 5/48
4774	4774	14 205 ILCS 5/48.1 from Ch. 17, par. 360
4775	4775	15 205 ILCS 5/48.2 from Ch. 17, par. 360.1
4776	4776	16 205 ILCS 5/49 from Ch. 17, par. 361
4777	4777	17 205 ILCS 5/78 from Ch. 17, par. 390
4778	4778	18 205 ILCS 5/80 from Ch. 17, par. 392
4779	4779	19 205 ILCS 205/1008 from Ch. 17, par. 7301-8
4780	4780	20 205 ILCS 205/4002 from Ch. 17, par. 7304-2
4781	4781	21 205 ILCS 205/4003 from Ch. 17, par. 7304-3
4782	4782	22 205 ILCS 205/4013 from Ch. 17, par. 7304-13
4783	4783	23 205 ILCS 205/6002 from Ch. 17, par. 7306-2
4784	4784	24 205 ILCS 205/7005 from Ch. 17, par. 7307-5
4785	4785	25 205 ILCS 205/8002 from Ch. 17, par. 7308-2
4786	4786
4787	4787
4788	4788
4789	4789
4790	4790
4791	4791	SB3726 - 134 - LRB103 38817 RTM 68954 b
4792	4792
4793	4793
4794	4794	SB3726- 135 -LRB103 38817 RTM 68954 b SB3726 - 135 - LRB103 38817 RTM 68954 b
4795	4795	SB3726 - 135 - LRB103 38817 RTM 68954 b
4796	4796
4797	4797
4798	4798
4799	4799
4800	4800
4801	4801	SB3726 - 135 - LRB103 38817 RTM 68954 b