State of Illinois
2017 and 2018


Introduced , by Rep. Tony McCombie


205 ILCS 205/9014  from Ch. 17, par. 7309-14
205 ILCS 205/9004 rep.

    Amends the Savings Bank Act. Provides that a savings bank shall have its books, records, and accounts examined at least once every 18 months (rather than at least once in each year) in the same manner as a State Bank (rather than be audited by an independent licensed public accountant not connected with the savings bank). Removes requirements concerning an annual audit. Effective immediately.

LRB100 18278 XWW 33482 b





HB4589LRB100 18278 XWW 33482 b

1    AN ACT concerning regulation.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Savings Bank Act is amended by changing
5Section 9014 as follows:
6    (205 ILCS 205/9014)  (from Ch. 17, par. 7309-14)
7    Sec. 9014. Examination Annual audit. (a) At least once
8every 18 months, in each year, but in no case more than 12
9months after the last examination audit conducted pursuant to
10this Section, or more often if it is necessary or expedient, it
11shall be mandatory for each savings bank to have cause its
12books, records, and accounts examined in the same manner as a
13State bank under the Illinois Banking Act to be audited by an
14independent licensed public accountant not connected with the
15savings bank. This audit must produce a certified financial
16statement. The Commissioner may prescribe the scope of the
17audit within generally accepted auditing standards.
18    (b) The report of the audit shall be given to a committee
19composed of not fewer than 3 members of the board of directors,
20a majority of whom may not be an officer, employee, or agent of
21the savings bank, and the committee shall, at the meeting of
22the board of directors following receipt of the report, present
23in detail the nature, extent, and result of the report. A



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1written summary of the committee's presentation, including a
2detailed listing of all criticisms made by the accountant
3conducting the audit and any responses thereto made by any
4member of the board of directors or any officer of the savings
5bank, shall be sent by registered mail to all members of the
6board of directors not present at the meeting at which the
7committee made its presentation.
8    (c) A copy of the audit report, including a balance sheet
9of the savings bank on the date of the audit and a statement of
10income and expenses of the savings bank during the year ending
11with the date of the audit and, if and when such is used, a copy
12of any written summary prepared for absent members of the board
13of directors shall be filed with the Commissioner by the
14committee receiving the report within 90 days of the audit
15date; except that the Commissioner may, for good cause shown,
16extend the filing date for up to 60 additional days.
17    (d) The report filed with the Commissioner shall be
18certified by the independent licensed public accountant
19conducting the audit. If any savings bank required to make an
20audit shall fail to cause an audit to be made, the Commissioner
21shall cause the audit to be made by an independent licensed
22public accountant at the savings bank's expense. In lieu of the
23audit required by this Section, the Commissioner may accept any
24audit or financial statement or portion thereof made
25exclusively for or in accordance and in compliance with
26regulations adopted by the Federal Deposit Insurance



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2    (e) A savings bank holding company shall cause its books
3and records to be audited at least once annually by an
4independent licensed public accountant. A copy of the
5independent licensed public accountant's report, along with
6all supporting documentation, shall be filed with the
7Commissioner. The report of audit shall be on a consolidated
8basis unless, in the auditor's opinion, certain subsidiaries or
9parent entities should be reported separately. If separate
10reports are prepared, they shall be prepared on the same basis
11as the report on the holding company.
12(Source: P.A. 89-320, eff. 1-1-96; 90-301, eff. 8-1-97.)
13    (205 ILCS 205/9004 rep.)
14    Section 10. The Savings Bank Act is amended by repealing
15Section 9004.
16    Section 99. Effective date. This Act takes effect upon
17becoming law.