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| | 103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024 SB3666 Introduced 2/9/2024, by Sen. Laura Ellman SYNOPSIS AS INTRODUCED: | | New Act | | 5 ILCS 140/7.5 | | 30 ILCS 105/5.1015 new | | 205 ILCS 5/2 | from Ch. 17, par. 302 | 205 ILCS 5/30 | from Ch. 17, par. 337 | 205 ILCS 620/1-5.08 | from Ch. 17, par. 1551-5.08 | 205 ILCS 620/2-1 | from Ch. 17, par. 1552-1 | 205 ILCS 620/Art. IIA heading new | | 205 ILCS 620/2A-1 new | | 205 ILCS 620/2A-2 new | | 205 ILCS 620/2A-3 new | | 205 ILCS 620/2A-4 new | | 205 ILCS 620/4-1 | from Ch. 17, par. 1554-1 | 205 ILCS 620/4-2 | from Ch. 17, par. 1554-2 | 205 ILCS 620/4-5 | from Ch. 17, par. 1554-5 | 205 ILCS 620/4A-15 | | 205 ILCS 620/5-1 | from Ch. 17, par. 1555-1 | 815 ILCS 505/2EEEE new | |
| Creates the Digital Assets Regulation Act. Provides that the Department of Financial and Professional Regulation shall regulate digital asset business activity in the State. Sets forth provisions concerning: applicability; the powers and duties of the Department; funds; customer protections; custody and protection of customer assets; covered exchanges; compliance; registration; supervision; records; additional procedural provisions; confidentiality; violations; enforcement; rulemaking authority; and severability. Creates the Special Purpose Trust Company Article in the Corporate Fiduciary Act. Sets forth provisions concerning certificates of authority; rulemaking and organization; certificates of authority for foreign corporate fiduciaries; eligibility; fees; and certificates of reciprocity. Makes other changes to various Acts. Effective immediately. |
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| | A BILL FOR |
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1 | | AN ACT concerning regulation. |
2 | | Be it enacted by the People of the State of Illinois, |
3 | | represented in the General Assembly: |
4 | | Article 1. General Provisions |
5 | | Section 1-1. Short title. This Act may be cited as the |
6 | | Digital Assets Regulation Act. |
7 | | Section 1-5. Definitions. |
8 | | (a) As used in this Act: |
9 | | "Affiliate" means any person that controls, is controlled |
10 | | by, or is under common control with another person. For |
11 | | purposes of this definition, "control" means the possession, |
12 | | direct or indirect, of the power to direct or cause the |
13 | | direction of the management and policies of a person. |
14 | | "Applicant" means a person that applies for registration |
15 | | under this Act. |
16 | | "Bank" means a bank, savings banks, savings and loan |
17 | | association, savings association, or industrial loan company |
18 | | chartered under the laws of this State or any other state or |
19 | | under the laws of the United States. |
20 | | "Confidential supervisory information" means information |
21 | | or documents obtained by employees, agents, or representatives |
22 | | of the Department in the course of any examination, |
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1 | | investigation, audit, visit, registration, certification, |
2 | | review, licensing, or any other regulatory or supervisory |
3 | | activity pursuant to this Act, and any record prepared or |
4 | | obtained by the Department to the extent that the record |
5 | | summarizes or contains information derived from any report, |
6 | | document, or record described in this Act. |
7 | | "Conflict of interest" means an interest that might |
8 | | incline a covered person or an individual who is an associated |
9 | | person of a covered person to make a recommendation that is not |
10 | | disinterested. |
11 | | "Corporate fiduciary" shall mean a corporate fiduciary as |
12 | | defined by Section 1-5.05 of the Corporate Fiduciary Act. |
13 | | "Covered person" means a registrant or person required to |
14 | | register pursuant to this Act. |
15 | | "Covered exchange" means a covered person that exchanges |
16 | | or holds itself out as being able to exchange a digital asset |
17 | | for a resident. |
18 | | "Credit union" means a credit union chartered under the |
19 | | laws of this State or any other state or under the laws of the |
20 | | United States. |
21 | | "Department" means the Department of Financial and |
22 | | Professional Regulation. |
23 | | "Digital asset" means a digital representation of value |
24 | | that is used as a medium of exchange, unit of account, or store |
25 | | of value, and that is not fiat currency, whether or not |
26 | | denominated in fiat currency. "Digital asset" does not include |
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1 | | any of the following: |
2 | | (1) A digital representation of value which a merchant |
3 | | grants, as part of an affinity or rewards program, and |
4 | | that cannot be taken from or exchanged with the merchant |
5 | | for fiat currency or a digital asset. |
6 | | (2) A digital representation of value that is issued |
7 | | by or on behalf of a game publisher, used solely within a |
8 | | gaming platform, has no market or application outside of |
9 | | such gaming platform, and cannot be converted into, or |
10 | | redeemed for, fiat currency or digital assets. |
11 | | (3) A digital representation of value that is used as |
12 | | part of prepaid cards. |
13 | | "Digital asset administration" means controlling, |
14 | | administering, or issuing a digital asset. |
15 | | "Digital asset business activity" means any of the |
16 | | following: |
17 | | (1) Exchanging, transferring, or storing a digital |
18 | | asset. |
19 | | (2) Engaging in digital asset administration. |
20 | | (3) Any other business activity involving digital |
21 | | assets designated by rule by the Department as may be |
22 | | necessary and appropriate for the protection of residents. |
23 | | "Digital asset business activity" does not include the |
24 | | development and dissemination of software in and of itself. |
25 | | "Exchange", when used as a verb, means to exchange, buy, |
26 | | sell, trade, or convert, on behalf of a resident, either of the |
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1 | | following: |
2 | | (1) A digital asset for fiat currency or one or more |
3 | | forms of digital assets. |
4 | | (2) Fiat currency for one or more forms of digital |
5 | | assets. |
6 | | "Exchange" does not include buying, selling, or trading |
7 | | digital assets for a person's own account in a principal |
8 | | capacity. |
9 | | "Executive officer" includes, without limitation, an |
10 | | individual who is a director, officer, manager, managing |
11 | | member, partner, or trustee, or other functionally equivalent |
12 | | responsible individual, of a person. |
13 | | "Federally insured depository institution" shall mean an |
14 | | insured depository institution as defined by Section 3(c)(2) |
15 | | of the Federal Deposit Insurance Act, 12 U.S.C. 1813(c)(2), as |
16 | | amended, or an insured credit union as defined by Section |
17 | | 101(7) of the Federal Credit Union Act, 12 U.S.C. 1752(7), as |
18 | | amended. |
19 | | "Fiat currency" means a medium of exchange or unit of |
20 | | value issued by the United States or a foreign government and |
21 | | that is designated as legal tender in its country of issuance. |
22 | | "Insolvent" means any of the following: |
23 | | (1) Having generally ceased to pay debts in the |
24 | | ordinary course of business other than as a result of a |
25 | | bona fide dispute. |
26 | | (2) Being unable to pay debts as they become due. |
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1 | | (3) Being insolvent within the meaning of federal |
2 | | bankruptcy law. |
3 | | "Person" includes, without limitation, any individual, |
4 | | corporation, business trust, estate, trust, partnership, |
5 | | proprietorship, syndicate, limited liability company, |
6 | | association, joint venture, government, governmental |
7 | | subsection, agency or instrumentality, public corporation or |
8 | | joint stock company, or any other organization or legal or |
9 | | commercial entity. |
10 | | "Prepaid card" means an electronic payment device that, |
11 | | subject to any rules adopted by the Department: |
12 | | (1) is usable at a single merchant or an affiliated |
13 | | group of merchants that share the same name, mark, or |
14 | | logo, or is usable at multiple, unaffiliated merchants or |
15 | | service providers; |
16 | | (2) is issued in and for a specified amount of fiat |
17 | | currency; |
18 | | (3) can be reloaded in and for only fiat currency, if |
19 | | at all; |
20 | | (4) is issued or reloaded on a prepaid basis for the |
21 | | future purchase or delivery of goods or services; |
22 | | (5) is honored upon presentation; |
23 | | (6) can be redeemed in and for only fiat currency, if |
24 | | at all; |
25 | | (7) is governed by the Uniform Money Transmission |
26 | | Modernization Act; and |
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1 | | (8) complies with any other condition designated by |
2 | | rule by the Department as may be necessary and appropriate |
3 | | for the protection of residents. |
4 | | "Qualified custodian" means a bank, credit union, or trust |
5 | | company, subject to any rules adopted by the Department. |
6 | | "Record" means information that is inscribed on a tangible |
7 | | medium or that is stored in an electronic or other medium and |
8 | | is retrievable in perceivable form. |
9 | | "Registrant" means a person registered under this Act. |
10 | | "Resident" means any of the following: |
11 | | (1) A person who is domiciled in this State. |
12 | | (2) A person who is physically located in this State |
13 | | for more than 183 days of the previous 365 days. |
14 | | (3) A person who has a place of business in this State. |
15 | | (4) A legal representative of a person that is |
16 | | domiciled in this State. |
17 | | "Request for assistance" means all inquiries, complaints, |
18 | | account disputes, and requests for documentation a covered |
19 | | person receives from residents. |
20 | | "Responsible individual" means an individual who has |
21 | | direct control over, or significant management, policy, or |
22 | | decision-making authority with respect to, a person's digital |
23 | | asset business activity in this State. |
24 | | "Secretary" means the Secretary of Financial and |
25 | | Professional Regulation and any authorized representative of |
26 | | the Secretary. |
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1 | | "Service provider" means any person that provides a |
2 | | material service to a covered person in connection with the |
3 | | offering or provision by that covered person of a digital |
4 | | asset business activity in this State, including a person that |
5 | | either: |
6 | | (1) Participates in designing, operating, or |
7 | | maintaining the digital asset business activity. |
8 | | (2) Processes transactions relating to the digital |
9 | | asset business activity, other than unknowingly or |
10 | | incidentally transmitting or processing financial data in |
11 | | a manner that the data is undifferentiated from other |
12 | | types of data of the same form as the person transmits or |
13 | | processes. |
14 | | "State" means a state of the United States, the District |
15 | | of Columbia, Puerto Rico, the United States Virgin Islands, or |
16 | | any territory or insular possession subject to the |
17 | | jurisdiction of the United States. |
18 | | "Store," "storage", and "storing", except in the phrase |
19 | | "store of value," means to store, hold, or maintain custody or |
20 | | control of a digital asset on behalf of a resident by a person |
21 | | other than the resident. |
22 | | "Transfer" means to transfer or transmit a digital asset |
23 | | on behalf of a resident, including by doing any of the |
24 | | following: |
25 | | (1) Crediting the digital asset to the account or |
26 | | storage of another person. |
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1 | | (2) Moving the digital asset from one account or |
2 | | storage of a resident to another account or storage of the |
3 | | same resident. |
4 | | (3) Relinquishing custody or control of a digital |
5 | | asset to another person. |
6 | | "United States dollar equivalent of digital assets" means |
7 | | the equivalent value of a particular digital asset in United |
8 | | States dollars shown on a covered exchange regulated in the |
9 | | United States for a particular date or period specified in |
10 | | this Act, subject to any rules adopted by the Department. |
11 | | (b) Whenever the terms "include", "including" or terms of |
12 | | similar import appear in this Act, unless the context requires |
13 | | otherwise, such terms shall not be construed to imply the |
14 | | exclusion of any person, class, or thing not specifically |
15 | | included. |
16 | | (c) A reference in this Act to any other law or statute of |
17 | | this State, or of any other jurisdiction, means such law or |
18 | | statute as amended to the effective date of this Act, and |
19 | | unless the context otherwise requires, as amended thereafter. |
20 | | Section 1-10. Applicability. |
21 | | (a) This Act governs the digital asset business activity |
22 | | of a person doing business in this State or, wherever located, |
23 | | who engages in or holds itself out as engaging in the activity |
24 | | with or on behalf of a resident, to the extent not preempted by |
25 | | federal law and except as otherwise provided in subsections |
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1 | | (b), (c), (d), or (e). |
2 | | (b)(1) This Act does not apply to the exchange, transfer, |
3 | | or storage of a digital asset or to digital asset |
4 | | administration to the extent that: |
5 | | (A) the Securities Exchange Act of 1934, 15 U.S.C. |
6 | | 78a et seq., or the Illinois Securities Law of 1953 |
7 | | govern the activity as a security transaction and the |
8 | | activity is actually regulated for the purpose of |
9 | | investor protection by the U.S. Securities and |
10 | | Exchange Commission or the Illinois Secretary of |
11 | | State; or |
12 | | (B) the Commodity Exchange Act, 7 U.S.C. 1 et |
13 | | seq., governs the activity as a contract of sale of a |
14 | | commodity for future delivery or a swap and the |
15 | | activity is actually regulated for the purpose of |
16 | | investor protection by the U.S. Commodity Futures |
17 | | Trading Commission. |
18 | | (2) This subsection shall be construed in a manner |
19 | | consistent with affording the greatest protection to |
20 | | residents and the Department's authority under subsection |
21 | | (a) of Section 101-15 to exercise nonexclusive oversight |
22 | | and enforcement under any federal law applicable to |
23 | | digital asset business activity. This subsection shall not |
24 | | be construed to exempt an activity solely because a |
25 | | financial regulatory agency has anti-fraud and |
26 | | anti-manipulation enforcement authority over the activity. |
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1 | | (c) This Act does not apply to the following persons: |
2 | | (1) The United States, a State, political subdivision |
3 | | of a State, agency, or instrumentality of federal, State, |
4 | | or local government, or a foreign government or a |
5 | | subdivision, department, agency, or instrumentality of a |
6 | | foreign government. |
7 | | (2) A federally insured depository institution. |
8 | | (3) A corporate fiduciary acting as a fiduciary or |
9 | | otherwise engaging in fiduciary activities. |
10 | | (4) A merchant using digital assets solely for the |
11 | | purchase or sale of goods or services, excluding the sale |
12 | | of purchase of digital assets, in the ordinary course of |
13 | | its business. |
14 | | (5) A person using digital assets solely for the |
15 | | purchase or sale of goods or services for his or her own |
16 | | personal, family, or household purposes. |
17 | | (6) A credit union with member share accounts insured |
18 | | by an insurer approved by the credit union's primary |
19 | | financial regulatory agency. An out-of-state credit union |
20 | | may not conduct any activity in this State that is not |
21 | | authorized for a credit union chartered under the laws of |
22 | | this State. |
23 | | Nothing in this Act grants persons described in this |
24 | | subsection (c) authority to engage in any activity not |
25 | | otherwise granted under existing law. |
26 | | (d) The Department may by rule or order clarify whether an |
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1 | | activity is governed under this Act or another Act that |
2 | | governs money transmissions. This subsection (d) shall not be |
3 | | applied in a manner inconsistent with the protection of |
4 | | residents. |
5 | | (e) Notwithstanding any other provision of this Act, the |
6 | | Department, by rule or order, may conditionally or |
7 | | unconditionally exempt any person, digital asset, or |
8 | | transaction, or any class or classes of persons, digital |
9 | | assets, or transactions, from any provision of this Act or of |
10 | | any rule thereunder, to the extent that the exemption is |
11 | | necessary or appropriate, in the public interest, and |
12 | | consistent with the protection of residents. |
13 | | Section 1-15. General powers and duties. |
14 | | (a) The Department shall regulate digital asset business |
15 | | activity in this State, unless it is exempt pursuant to |
16 | | Section 101-10. To the extent permissible under federal law, |
17 | | the Department shall exercise nonexclusive oversight and |
18 | | enforcement under any federal law applicable to digital asset |
19 | | business activity. |
20 | | (b) The functions, powers, and duties conferred upon the |
21 | | Department by this Act are cumulative to any other functions, |
22 | | powers, and duties conferred upon the Department by other laws |
23 | | applicable to digital asset business activity. |
24 | | (c) The Department shall have the following functions, |
25 | | powers, and duties in carrying out its responsibilities under |
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1 | | this Act and any other law applicable to digital asset |
2 | | business activity in this State: |
3 | | (1) to issue or refuse to issue any registration or |
4 | | other authorization under this Act; |
5 | | (2) to revoke or suspend for cause any registration or |
6 | | other authorization under this Act; |
7 | | (3) to keep records of all registrations or other |
8 | | authorizations under this Act; |
9 | | (4) to receive, consider, investigate, and act upon |
10 | | complaints made by any person relating to any digital |
11 | | asset business activity in this State; |
12 | | (5) to prescribe the forms of and receive: |
13 | | (A) applications for registrations or other |
14 | | authorizations under this Act; and |
15 | | (B) all reports and all books and records required |
16 | | to be made under this Act; |
17 | | (6) to subpoena documents and witnesses and compel |
18 | | their attendance and production, to administer oaths, and |
19 | | to require the production of any books, papers, or other |
20 | | materials relevant to any inquiry authorized by this Act |
21 | | or other law applicable to digital asset business activity |
22 | | in this State; |
23 | | (7) to issue orders against any person: |
24 | | (A) if the Secretary has reasonable cause to |
25 | | believe that an unsafe, unsound, or unlawful practice |
26 | | has occurred, is occurring, or is about to occur; |
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1 | | (B) if any person has violated, is violating, or |
2 | | is about to violate any law, rule, or written |
3 | | agreement with the Secretary; or |
4 | | (C) for the purpose of administering the |
5 | | provisions of this Act or other law applicable to |
6 | | digital asset business activity and any rule adopted |
7 | | in accordance with this Act or other law applicable to |
8 | | digital asset business activity; |
9 | | (8) to address any inquiries to any covered person, or |
10 | | the directors, officers, or employees of the covered |
11 | | person, or the affiliates or service providers of the |
12 | | covered person, in relation to the covered person's |
13 | | activities and conditions or any other matter connected |
14 | | with its affairs, and it shall be the duty of any person so |
15 | | addressed to promptly reply in writing to those inquiries; |
16 | | the Secretary may also require reports from any covered |
17 | | person at any time the Secretary chooses; |
18 | | (9) to examine the books and records of every covered |
19 | | person, affiliate, or service provider; |
20 | | (10) to enforce the provisions of this Act and any |
21 | | state or federal law applicable to digital asset business |
22 | | activity; |
23 | | (11) to levy fees, fines, and civil penalties, charges |
24 | | for services, and assessments to defray operating |
25 | | expenses, including direct and indirect costs, of |
26 | | administering this Act and other laws applicable to |
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1 | | digital asset business activity; |
2 | | (12) to appoint examiners, supervisors, experts, and |
3 | | special assistants as needed to effectively and |
4 | | efficiently administer this Act and other laws applicable |
5 | | to digital asset business activity; |
6 | | (13) to conduct hearings for the purpose of carrying |
7 | | out the purposes of this Act; |
8 | | (14) to exercise visitorial power over a covered |
9 | | person, affiliate, or service provider; |
10 | | (15) to enter into cooperative agreements with federal |
11 | | and state regulatory authorities and to accept reports of |
12 | | examinations from federal and state regulatory |
13 | | authorities; |
14 | | (16) to assign on an emergency basis an examiner or |
15 | | examiners to monitor the affairs of a covered person, |
16 | | affiliate, or service provider with whatever frequency the |
17 | | Secretary determines appropriate and to charge the covered |
18 | | person for reasonable and necessary expenses of the |
19 | | Secretary if in the opinion of the Secretary an emergency |
20 | | exists or appears likely to occur; |
21 | | (17) to impose civil penalties against a covered |
22 | | person, affiliate, or service provider for failing to |
23 | | respond to a regulatory request or reporting requirement; |
24 | | and |
25 | | (18) to conduct investigations, market surveillance, |
26 | | and research, studies, and analyses of matters affecting |
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1 | | the interests of users of digital assets; |
2 | | (19) to take such actions as the Secretary deems |
3 | | necessary to educate and protect users of digital assets; |
4 | | (20) to develop and implement initiatives and programs |
5 | | to promote responsible innovation in digital asset |
6 | | business activity; and |
7 | | (21) to perform any other lawful acts necessary or |
8 | | desirable to carry out the purposes and provisions of this |
9 | | Act and other laws applicable to digital asset business |
10 | | activity. |
11 | | (d) The Department may share any information obtained |
12 | | pursuant to this Act or any other law applicable to digital |
13 | | asset business activity with law enforcement officials or |
14 | | other regulatory agencies. |
15 | | Section 1-20. Funds. |
16 | | (a) All moneys collected or received by the Department |
17 | | under this Act shall be deposited into the Consumer Protection |
18 | | Fund, which is hereby created as a special fund in the State |
19 | | treasury. The amounts deposited into the Consumer Protection |
20 | | Fund shall be used for the ordinary and contingent expenses of |
21 | | the Department in administering this Act and other financial |
22 | | laws; nothing in this Act shall prevent the continuation of |
23 | | the practice of paying expenses involving salaries, |
24 | | retirement, social security, and State-paid insurance of State |
25 | | officers and employees by appropriation from the General |
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1 | | Revenue Fund or any other fund. Moneys deposited into the |
2 | | Consumer Protection Fund may be transferred to the Professions |
3 | | Indirect Cost Fund or any other Department fund. |
4 | | (b) The expenses of administering this Act, including |
5 | | investigations and examinations provided for in this Act, |
6 | | shall be borne by and assessed against persons regulated by |
7 | | this Act. The Department may establish fees by rule, including |
8 | | in the following categories: |
9 | | (1) investigation of registrants and registration |
10 | | applicant fees; |
11 | | (2) examination fees; |
12 | | (3) contingent fees; and |
13 | | (4) such other categories as may be required to |
14 | | administer this Act. |
15 | | (c) The Department shall charge and collect fees from |
16 | | covered persons, which shall be nonrefundable unless otherwise |
17 | | indicated, for the expenses of administering this Act as |
18 | | follows: |
19 | | (1) Each covered person shall pay $150 for each hour |
20 | | or part of an hour for each examiner or staff assigned to |
21 | | the supervision of the covered person plus actual travel |
22 | | costs for any examination of digital asset business |
23 | | activity pursuant to the Act. |
24 | | (2) Each covered person shall pay to the Department |
25 | | its pro rata share of the cost for administration of this |
26 | | Act that exceeds other fees listed in this Act, as |
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1 | | estimated by the Department, for the current year and any |
2 | | deficit actually incurred in the administration of the Act |
3 | | in prior years. The total annual assessment for all |
4 | | registrants shall initially be divided into a |
5 | | transaction-based assessment and a custody-based |
6 | | assessment, each equal to approximately half the cost for |
7 | | administration of this Act. Each registrant's pro rata |
8 | | share of the transaction-based assessment shall be the |
9 | | percentage that the total volume of digital asset |
10 | | transactions conducted on behalf of residents by the |
11 | | registrant bears to the total volume of digital asset |
12 | | transactions by all registrants in Illinois. Each |
13 | | registrant's pro rata share of the custody-based |
14 | | assessment shall be the percentage that the total United |
15 | | States dollar value of digital assets held in custody or |
16 | | controlled by the registrant for residents bears to the |
17 | | total United States dollar value held in custody or |
18 | | controlled by all registrants in Illinois for residents. |
19 | | (3) Beginning one year after the effective date of |
20 | | this Act, the Department may, by rule, amend the fees set |
21 | | forth in this subsection in accordance with this Act. The |
22 | | Department is authorized to consider setting fees for |
23 | | digital asset business activity based on the value of |
24 | | digital assets transacted by covered persons, volume of |
25 | | digital assets transacted by covered persons, the value of |
26 | | digital assets held in custody by covered person, and the |
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1 | | volume of digital assets held in custody by covered |
2 | | persons. |
3 | | Article 5. Customer Protections |
4 | | Section 5-5. Customer disclosures. |
5 | | (a) When engaging in digital asset business activity with |
6 | | a resident, a covered person shall provide to a resident the |
7 | | customer disclosures required by subsection (b) and any |
8 | | additional disclosures the Department by rule determines to be |
9 | | necessary and appropriate for the protection of residents. The |
10 | | Department may determine by rule the time and form required |
11 | | for disclosures. A disclosure required by this Section shall |
12 | | be made separately from any other information provided by the |
13 | | covered person and in a clear and conspicuous manner in a |
14 | | record the resident may keep. |
15 | | (b) Before engaging in digital asset business activity |
16 | | with a resident, a covered person shall disclose, to the |
17 | | extent applicable to the digital asset business activity the |
18 | | covered person will undertake with the resident, subject to |
19 | | any rule or order issued by the Department, all of the |
20 | | following: |
21 | | (1) A schedule of fees and charges the covered person |
22 | | may assess, the manner by which fees and charges will be |
23 | | calculated if they are not set in advance and disclosed, |
24 | | and the timing of the fees and charges. |
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1 | | (2) Whether the product or service provided by the |
2 | | covered person is covered by either of the following: |
3 | | (A) A form of insurance or other guarantee against |
4 | | loss by an agency of the United States as follows: |
5 | | (i) Up to the full United States dollar |
6 | | equivalent of digital assets placed under the |
7 | | custody or control of, or purchased from, the |
8 | | covered person as of the date of the placement or |
9 | | purchase, including the maximum amount provided by |
10 | | insurance under the Federal Deposit Insurance |
11 | | Corporation or National Credit Union |
12 | | Administration or otherwise available from the |
13 | | Securities Investor Protection Corporation. |
14 | | (ii) If not provided at the full United States |
15 | | dollar equivalent of the digital assets placed |
16 | | under the custody or control of or purchased from |
17 | | the covered person, the maximum amount of coverage |
18 | | for each resident expressed in the United States |
19 | | dollar equivalent of the digital asset. |
20 | | (iii) If not applicable to the product or |
21 | | service provided by the covered person, a clear |
22 | | and conspicuous statement that the product is not |
23 | | insured, as applicable, by the Federal Deposit |
24 | | Insurance Corporation, National Credit Union |
25 | | Administration, or the Securities Investor |
26 | | Protection Corporation. |
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1 | | (B)(i) Private insurance against loss or theft, |
2 | | including cybertheft or theft by other means. |
3 | | (ii) A covered person shall disclose the terms |
4 | | of the insurance policy to the resident in a |
5 | | manner that allows the resident to understand the |
6 | | specific insured risks that may result in partial |
7 | | coverage of the resident's assets. |
8 | | (3) The irrevocability of a transfer or exchange and |
9 | | any exception to irrevocability. |
10 | | (4) A description of all of the following: |
11 | | (A) The covered person's liability for an |
12 | | unauthorized, mistaken, or accidental transfer or |
13 | | exchange. |
14 | | (B) The resident's responsibility to provide |
15 | | notice to the covered person of an unauthorized, |
16 | | mistaken, or accidental transfer or exchange. |
17 | | (C) The basis for any recovery by the resident |
18 | | from the covered person in case of an unauthorized, |
19 | | mistaken, or accidental transfer or exchange. |
20 | | (D) General error resolution rights applicable to |
21 | | an unauthorized, mistaken, or accidental transfer or |
22 | | exchange. |
23 | | (E) The method for the resident to update the |
24 | | resident's contact information with the covered |
25 | | person. |
26 | | (5) That the date or time when the transfer or |
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1 | | exchange is made and the resident's account is debited may |
2 | | differ from the date or time when the resident initiates |
3 | | the instruction to make the transfer or exchange. |
4 | | (6) Whether the resident has a right to stop a |
5 | | preauthorized payment or revoke authorization for a |
6 | | transfer and the procedure to initiate a stop-payment |
7 | | order or revoke authorization for a subsequent transfer. |
8 | | (7) The resident's right to receive a receipt, trade |
9 | | ticket, or other evidence of the transfer or exchange. |
10 | | (8) The resident's right to at least 14 days' prior |
11 | | notice of a change in the covered person's fee schedule, |
12 | | other terms and conditions that have a material impact on |
13 | | digital asset business activity with the resident, or the |
14 | | policies applicable to the resident's account. |
15 | | (9) That no digital asset is currently recognized as |
16 | | legal tender by the State of Illinois or the United |
17 | | States. |
18 | | (10)(A) A list of instances in the past 12 months when |
19 | | the covered person's service was unavailable to customers |
20 | | seeking to engage in digital asset business activity due |
21 | | to a service outage on the part of the covered person and |
22 | | the causes of each identified service outage. |
23 | | (B) As part of the disclosure required by this |
24 | | paragraph, the covered person may list any steps the |
25 | | covered person has taken to resolve underlying causes |
26 | | for those outages. |
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1 | | (11) A disclosure, provided separately from the |
2 | | disclosures provided pursuant to paragraphs (1) to (10) of |
3 | | this subsection and written prominently in bold type, that |
4 | | the State of Illinois has not approved or endorsed any |
5 | | digital assets or determined if this customer disclosure |
6 | | is truthful or complete. |
7 | | (c) Except as otherwise provided in subsection (d), at the |
8 | | conclusion of a digital asset transaction with, or on behalf |
9 | | of, a resident, a covered person shall provide the resident a |
10 | | confirmation in a record which contains all of the following: |
11 | | (1) The name and contact information of the covered |
12 | | person, including the toll-free telephone number required |
13 | | under Section 5-20. |
14 | | (2) The type, value, date, precise time, and amount of |
15 | | the transaction. |
16 | | (3) The fee charged for the transaction, including any |
17 | | charge for conversion of a digital asset to fiat currency |
18 | | or other digital asset, as well as any indirect charges. |
19 | | (d) If a covered person discloses that it will provide a |
20 | | daily confirmation in the initial disclosure under subsection |
21 | | (c), the covered person may elect to provide a single, daily |
22 | | confirmation for all transactions with or on behalf of a |
23 | | resident on that day instead of a per transaction |
24 | | confirmation. |
25 | | Section 5-10. Custody and protection of customer assets. |
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1 | | (a) A covered person that stores, holds, or maintains |
2 | | custody or control of a digital asset for one or more persons |
3 | | shall: |
4 | | (1) at all times maintain an amount of each type of |
5 | | digital asset sufficient to satisfy the aggregate |
6 | | entitlements of the persons to the type of digital asset; |
7 | | (2) segregate such digital assets from the other |
8 | | assets of the covered person; and |
9 | | (3) not sell, transfer, assign, lend, hypothecate, |
10 | | pledge, or otherwise use or encumber such digital assets, |
11 | | except for the sale, transfer, or assignment of such |
12 | | digital assets at the direction of such other persons. |
13 | | (b) If a covered person violates subsection (a), then the |
14 | | property interests of the persons in the digital asset are pro |
15 | | rata property interests in the type of digital asset to which |
16 | | the persons are entitled without regard to the time the |
17 | | persons became entitled to the digital asset or the covered |
18 | | person obtained control of the digital asset. |
19 | | (c) A digital asset subject to this Section is: |
20 | | (1) held for the persons entitled to the digital asset |
21 | | under subsection (a); |
22 | | (2) not the property of the covered person; and |
23 | | (3) not subject to the claims of creditors of the |
24 | | covered person. |
25 | | (d) Digital assets subject to this Section, even if |
26 | | commingled with other assets of the covered person, are held |
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1 | | in trust for the benefit of the persons entitled to the digital |
2 | | assets under subsection (a), in the event of insolvency, the |
3 | | filing of a petition by or against the covered person under the |
4 | | United States Bankruptcy Code (11 U.S.C. 101 et seq.) for |
5 | | bankruptcy or reorganization, the filing of a petition by or |
6 | | against the covered person for receivership, the commencement |
7 | | of any other judicial or administrative proceeding for its |
8 | | dissolution or reorganization, or an action by a creditor |
9 | | against the covered person who is not a beneficiary of this |
10 | | statutory trust. No digital asset impressed with a trust |
11 | | pursuant to this subsection shall be subject to attachment, |
12 | | levy of execution, or sequestration by order of any court, |
13 | | except for a beneficiary of this statutory trust. |
14 | | (e) The Department may adopt rules applicable to covered |
15 | | persons related to additional protections of customer assets, |
16 | | including, but not limited to: |
17 | | (1) rules requiring that digital assets and funds |
18 | | controlled by the covered person on behalf of residents be |
19 | | held in accounts segregated from the covered person's own |
20 | | digital assets and funds; |
21 | | (2) rules related to qualified custodians that may |
22 | | hold such segregated accounts; |
23 | | (3) rules related to titling of such segregated |
24 | | accounts; |
25 | | (4) rules related to audit requirements for customer |
26 | | assets; |
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1 | | (5) rules requiring compliance with specific |
2 | | provisions of the Uniform Commercial Code applicable to |
3 | | digital assets; |
4 | | (6) rules restricting selling, transferring, |
5 | | assigning, lending, hypothecating, pledging, or otherwise |
6 | | using or encumbering customer assets; and |
7 | | (7) any rules as may be as may be necessary and |
8 | | appropriate for the protection of residents or necessary |
9 | | to effectuate the purposes of this Section. |
10 | | Section 5-15. Covered exchanges. |
11 | | (a)(1) Except as provided for under paragraph (2) of this |
12 | | subsection, a covered exchange, before listing or offering a |
13 | | digital asset that the covered exchange can exchange on behalf |
14 | | of a resident, shall certify on a form provided by the |
15 | | Department that the covered exchange has done the following: |
16 | | (A) Identified the risk that the digital asset would |
17 | | be deemed a security by federal or state regulators. |
18 | | (B) Provided, in writing, full and fair disclosure of |
19 | | all material facts relating to conflicts of interest that |
20 | | are associated with the covered exchange and the digital |
21 | | asset. |
22 | | (C) Conducted a comprehensive risk assessment designed |
23 | | to ensure consumers are adequately protected from |
24 | | cybersecurity risk, risk of malfeasance, including theft, |
25 | | risks related to code or protocol defects, market-related |
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1 | | risks, including price manipulation and fraud, and any |
2 | | other material risks. |
3 | | (D) Established policies and procedures to reevaluate |
4 | | the appropriateness of the continued listing or offering |
5 | | of the digital asset, including an evaluation of whether |
6 | | material changes have occurred. |
7 | | (E) Established policies and procedures to cease |
8 | | listing or offering the digital asset, including |
9 | | notification to affected consumers and counterparties. |
10 | | (F) Any other requirement designated by rule by the |
11 | | Department as may be necessary and appropriate for the |
12 | | protection of residents. |
13 | | (2) Certification by a covered exchange shall not be |
14 | | required for any digital asset approved for listing on or |
15 | | before the effective date of this Act by the New York |
16 | | Department of Financial Services pursuant to Part 200 of Title |
17 | | 23 of the New York Code of Rules and Regulations, if the |
18 | | covered exchange provides notification to the Department on a |
19 | | form provided by the Department. |
20 | | (3) After a finding that a covered exchange has listed or |
21 | | offered a digital asset without appropriate certification or |
22 | | after a finding that misrepresentations were made in the |
23 | | certification process, the Department may require the covered |
24 | | exchange to cease listing or offering the digital asset and |
25 | | may take an enforcement action under Section 120-50 of this |
26 | | Act. |
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1 | | (b)(1) A covered exchange shall make every effort to |
2 | | execute a resident's request to exchange a digital asset that |
3 | | the covered exchange receives fully and promptly. |
4 | | (2)(A) A covered exchange shall use reasonable diligence |
5 | | to ensure that the outcome to the resident is as favorable as |
6 | | possible under prevailing market conditions. Compliance with |
7 | | this paragraph shall be determined by factors, including, but |
8 | | not limited to, all of the following: |
9 | | (i) The character of the market for the digital asset, |
10 | | including price and volatility. |
11 | | (ii) The size and type of transaction. |
12 | | (iii) The number of markets checked. |
13 | | (iv) Accessibility of appropriate pricing. |
14 | | (v) Any other factor designated by rule by the |
15 | | Department as may be necessary and appropriate for the |
16 | | protection of residents. |
17 | | (B) At least once every 6 months, a covered exchange shall |
18 | | review aggregated trading records of residents against |
19 | | benchmarks to determine execution quality, investigate the |
20 | | causes of any variance, and promptly take action to remedy |
21 | | issues identified in that review. |
22 | | (3) In a transaction for or with a resident, the covered |
23 | | exchange shall not interject a third party between the covered |
24 | | exchange and the best market for the digital asset in a manner |
25 | | inconsistent with this subsection. |
26 | | (4) If a covered exchange cannot execute directly with a |
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1 | | market and employs other means in order to ensure an execution |
2 | | advantageous to the resident, the burden of showing the |
3 | | acceptable circumstances for doing so is on the covered |
4 | | exchange. |
5 | | Section 5-20. Customer service; requests for assistance. |
6 | | (a) A covered person shall prominently display on its |
7 | | internet website a toll-free telephone number through which a |
8 | | resident can contact the covered person for requests for |
9 | | assistance and receive live customer assistance, subject to |
10 | | any rules adopted by the Department. |
11 | | (b) A covered person shall implement reasonable policies |
12 | | and procedures for accepting, processing, investigating, and |
13 | | responding to requests for assistance in a timely and |
14 | | effective manner. Such policies and procedures shall include |
15 | | all of the following: |
16 | | (1) A procedure for resolving disputes between the |
17 | | covered person and a resident. |
18 | | (2) A procedure for a resident to report an |
19 | | unauthorized, mistaken, or accidental digital asset |
20 | | business activity transaction. |
21 | | (3) A procedure for a resident to file a complaint |
22 | | with the covered person and for the resolution of the |
23 | | complaint in a fair and timely manner with notice to the |
24 | | resident as soon as reasonably practical of the resolution |
25 | | and the reasons for the resolution. |
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1 | | (4) Any other procedure designated by rule by the |
2 | | Department as may be necessary and appropriate for the |
3 | | protection of residents. |
4 | | Section 5-25. Collection of compensation. Unless exempt |
5 | | from registration under this Act, no person engaged in or |
6 | | offering to engage in any act or service for which a |
7 | | registration under this Act is required may bring or maintain |
8 | | any action in any court to collect compensation for the |
9 | | performance of the registrable services without alleging and |
10 | | proving that he or she was the holder of a valid registration |
11 | | under this Act at all times during the performance of those |
12 | | services. |
13 | | Article 10. Compliance |
14 | | Section 10-5. General requirements. |
15 | | (a) Each registrant is required to comply with the |
16 | | provisions of this Act, any lawful order, rule, or regulation |
17 | | made or issued under the provisions of this Act, and all |
18 | | applicable federal and State laws, rules, and regulations. |
19 | | (b) Each registrant shall designate a qualified individual |
20 | | or individuals responsible for coordinating and monitoring |
21 | | compliance with subsection (a). |
22 | | (c) Each registrant shall maintain, implement, update, and |
23 | | enforce written compliance policies and procedures, in |
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1 | | accordance with Section 110-10 and subject to any rules |
2 | | adopted by the Department, which policies and procedures must |
3 | | be reviewed and approved by the registrant's board of |
4 | | directors or an equivalent governing body of the registrant. |
5 | | Section 10-10. Required policies and procedures. |
6 | | (a) An applicant, before submitting an application, shall |
7 | | create and a registrant, during registration, shall maintain, |
8 | | implement, update, and enforce, written compliance policies |
9 | | and procedures for all of the following: |
10 | | (1) A cybersecurity program. |
11 | | (2) A business continuity program. |
12 | | (3) A disaster recovery program. |
13 | | (4) An anti-fraud program. |
14 | | (5) An anti-money laundering and countering the |
15 | | financing of terrorism program. |
16 | | (6) An operational security program. |
17 | | (7)(A) A program designed to ensure compliance with |
18 | | this Act and other laws of this State or federal laws that |
19 | | are relevant to the digital asset business activity |
20 | | contemplated by the registrant with or on behalf of |
21 | | residents and to assist the registrant in achieving the |
22 | | purposes of other State laws and federal laws if violation |
23 | | of those laws has a remedy under this Act. |
24 | | (B) At a minimum, the program described by this |
25 | | paragraph shall specify the policies and procedures that |
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1 | | the registrant undertakes to minimize the risk that the |
2 | | registrant facilitates the exchange of unregistered |
3 | | securities. |
4 | | (8) A conflict of interest program. |
5 | | (9) A request for assistance program to comply with |
6 | | Section 5-20. |
7 | | (10) Any other compliance program, policy, or |
8 | | procedure the Department establishes by rule as necessary |
9 | | for the protection of residents or for the safety and |
10 | | soundness of the registrant's business or to effectuate |
11 | | the purposes of this Act. |
12 | | (b) A policy required by subsection (a) shall be |
13 | | maintained in a record and designed to be adequate for a |
14 | | registrant's contemplated digital asset business activity with |
15 | | or on behalf of residents, considering the circumstances of |
16 | | all participants and the safe operation of the activity. Any |
17 | | policy and implementing procedure shall be compatible with |
18 | | other policies and the procedures implementing them and not |
19 | | conflict with policies or procedures applicable to the |
20 | | registrant under other State law. |
21 | | (c) A registrant's anti-fraud program shall include, at a |
22 | | minimum, all of the following: |
23 | | (1) Identification and assessment of the material |
24 | | risks of its digital asset business activity related to |
25 | | fraud, which shall include any form of market manipulation |
26 | | and insider trading by the registrant, its employees, its |
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1 | | associated persons, or its customers. |
2 | | (2) Protection against any material risk related to |
3 | | fraud identified by the Department or the registrant. |
4 | | (3) Periodic evaluation and revision of the anti-fraud |
5 | | program, policies, and procedures. |
6 | | (d) A registrant's anti-money laundering and countering |
7 | | the financing of terrorism program shall include, at a |
8 | | minimum, all of the following: |
9 | | (1) Identification and assessment of the material |
10 | | risks of its digital asset business activity related to |
11 | | money laundering and financing of terrorist activity. |
12 | | (2) Procedures, in accordance with federal law or |
13 | | guidance published by federal agencies responsible for |
14 | | enforcing federal law, pertaining to money laundering and |
15 | | financing of terrorist activity. |
16 | | (3) Filing reports under the Bank Secrecy Act, 31 |
17 | | U.S.C. 5311 et seq., or Chapter X of Title 31 of the Code |
18 | | of Federal Regulations and other federal or State law |
19 | | pertaining to the prevention or detection of money |
20 | | laundering or financing of terrorist activity. |
21 | | (e) A registrant's operational security program shall |
22 | | include, at a minimum, reasonable and appropriate |
23 | | administrative, physical, and technical safeguards to protect |
24 | | the confidentiality, integrity, and availability of any |
25 | | nonpublic information or digital asset it receives, maintains, |
26 | | or transmits. |
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1 | | (f)(1) A registrant's cybersecurity program shall include, |
2 | | at a minimum, all of the following: |
3 | | (A) Maintaining, updating, and enforcing policies and |
4 | | procedures designed to protect the confidentiality, |
5 | | integrity, and availability of the registrant's |
6 | | information systems and nonpublic information stored on |
7 | | those information systems. |
8 | | (B) Implementing and maintaining a written policy or |
9 | | policies, approved at least annually by an executive |
10 | | officer or the registrant's board of directors, or an |
11 | | appropriate committee thereof, or equivalent governing |
12 | | body, setting forth the registrant's policies and |
13 | | procedures for the protection of its information systems |
14 | | and nonpublic information stored on those information |
15 | | systems. |
16 | | (C) Designating a qualified individual responsible for |
17 | | overseeing and implementing the registrant's cybersecurity |
18 | | program and enforcing its cybersecurity policy. The |
19 | | individual must have adequate authority to ensure |
20 | | cybersecurity risks are appropriately managed, including |
21 | | the ability to direct sufficient resources to implement |
22 | | and maintain a cybersecurity program. The individual may |
23 | | be employed by the registrant, one of its affiliates, or a |
24 | | service provider. |
25 | | (2) To assist in carrying out this subsection, the |
26 | | Department may adopt rules to define terms used in this |
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1 | | subsection and to establish specific requirements for the |
2 | | required cybersecurity program, including, but not limited to, |
3 | | rules related to: |
4 | | (A) penetration testing and vulnerability assessment; |
5 | | (B) audit trails; |
6 | | (C) access privileges; |
7 | | (D) application security; |
8 | | (E) risk assessment; |
9 | | (F) cybersecurity personnel and intelligence; |
10 | | (G) affiliates and service providers; |
11 | | (H) authentication; |
12 | | (I) data retention; |
13 | | (J) training and monitoring; |
14 | | (K) encryption; |
15 | | (L) incident response; |
16 | | (M) notice of cybersecurity events; and |
17 | | (N) any other requirement necessary and appropriate |
18 | | for the protection of residents or for the safety and |
19 | | soundness of the registrant or to effectuate the purposes |
20 | | of this subsection. |
21 | | (g) The Department may require a registrant to file with |
22 | | the Department a copy of any report it makes to a federal or |
23 | | state authority. |
24 | | (h) After the policies and procedures required under this |
25 | | Article are created and approved by the registrant, the |
26 | | registrant shall engage a qualified individual or individuals |
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1 | | with adequate authority and experience to monitor and |
2 | | implement each policy and procedure, publicize it as |
3 | | appropriate, recommend changes as necessary, and enforce it. |
4 | | Article 15. Registration |
5 | | Section 15-5. Registration required. A person shall not |
6 | | engage in digital asset business activity, or hold itself out |
7 | | as being able to engage in digital asset business activity, |
8 | | with or on behalf of a resident unless the person is registered |
9 | | in this State by the Department under this Article, or the |
10 | | person is exempt from registration pursuant to Section 1-10. |
11 | | Section 15-10. Application. |
12 | | (a) An application for a registration under this Act shall |
13 | | meet all of the following requirements: |
14 | | (1) The application shall be in a form and medium |
15 | | prescribed by the Department. The Department may require |
16 | | the filing of the application through a multistate |
17 | | licensing system. |
18 | | (2) The application shall provide all of the following |
19 | | information relevant to the applicant's proposed digital |
20 | | asset business activity: |
21 | | (A) The legal name of the applicant, any current |
22 | | or proposed business United States Postal Service |
23 | | address of the applicant, and any fictitious or trade |
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1 | | name the applicant uses or plans to use in conducting |
2 | | the applicant's digital asset business activity with |
3 | | or on behalf of a resident. |
4 | | (B) The legal name, any former or fictitious name, |
5 | | and the residential and business United States Postal |
6 | | Service address of any executive officer and |
7 | | responsible individual of the applicant and any person |
8 | | that has control of the applicant. |
9 | | (C) A description of the current and former |
10 | | business of the applicant and any affiliate of the |
11 | | applicant for the 5 years before the application is |
12 | | submitted, or, if the business has operated for less |
13 | | than 5 years, for the time the business has operated, |
14 | | including its products and services, associated |
15 | | internet website addresses and social media pages, |
16 | | principal place of business, projected user base, and |
17 | | specific marketing targets. |
18 | | (D) A list of all of the following: |
19 | | (i) Any digital asset, money service, or money |
20 | | transmitter registration the applicant and any |
21 | | affiliates hold in another state or from an agency |
22 | | of the United States. |
23 | | (ii) The date the registrations described in |
24 | | subdivision (i) expire. |
25 | | (iii) Any revocation, suspension, or other |
26 | | disciplinary action taken against the applicant |
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1 | | and any affiliates in any state or by an agency of |
2 | | the United States and any applications rejected by |
3 | | any state or agency of the United States. |
4 | | (E) A list of any criminal conviction, deferred |
5 | | prosecution agreement, and pending criminal proceeding |
6 | | in any jurisdiction against all of the following: |
7 | | (i) The applicant. |
8 | | (ii) Any executive officer of the applicant. |
9 | | (iii) Any responsible individual of the |
10 | | applicant. |
11 | | (iv) Any person that has control over the |
12 | | applicant. |
13 | | (v) Any affiliate of the applicant. |
14 | | (F) A list of any litigation, arbitration, or |
15 | | administrative proceeding in any jurisdiction in which |
16 | | the applicant or an executive officer, responsible |
17 | | individual, or affiliate of the applicant has been a |
18 | | party for the 10 years before the application is |
19 | | submitted determined to be material in accordance with |
20 | | generally accepted accounting principles and, to the |
21 | | extent the applicant or such other person would be |
22 | | required to disclose the litigation, arbitration, or |
23 | | administrative proceeding in the applicant's or such |
24 | | other person's audited financial statements, reports |
25 | | to equity owners, and similar statements or reports. |
26 | | (G) A list of any bankruptcy or receivership |
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1 | | proceeding in any jurisdiction for the 10 years before |
2 | | the application is submitted in which any of the |
3 | | following was a debtor: |
4 | | (i) The applicant. |
5 | | (ii) An executive officer of the applicant. |
6 | | (iii) A responsible individual of the |
7 | | applicant. |
8 | | (iv) A person that has control over the |
9 | | applicant. |
10 | | (v) An affiliate of the applicant. |
11 | | (H) The name and United States Postal Service |
12 | | address of any bank or credit union in which the |
13 | | applicant and any affiliates plan to deposit funds |
14 | | obtained by digital asset business activity. |
15 | | (I) The source of funds and credit to be used by |
16 | | the applicant and any affiliate to conduct digital |
17 | | asset business activity with or on behalf of a |
18 | | resident. |
19 | | (J) A current financial statement and other |
20 | | documentation satisfactory to the Department |
21 | | demonstrating that the applicant has the capital and |
22 | | liquidity required by Section 120-5. |
23 | | (K) The United States Postal Service address and |
24 | | email address to which communications from the |
25 | | Department can be sent. |
26 | | (L) The name, United States Postal Service |
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1 | | address, and email address of the registered agent of |
2 | | the applicant in this State. |
3 | | (M) A copy of the certificate, or a detailed |
4 | | summary acceptable to the Department, of coverage for |
5 | | any liability, casualty, business interruption, or |
6 | | cybersecurity insurance policy maintained by the |
7 | | applicant for itself, an executive officer, a |
8 | | responsible individual, an affiliate, or the |
9 | | applicant's users. |
10 | | (N) If applicable, the date on which and the state |
11 | | in which the applicant is formed and a copy of a |
12 | | current certificate of good standing issued by that |
13 | | state. |
14 | | (O) If a person has control of the applicant and |
15 | | the person's equity interests are publicly traded in |
16 | | the United States, a copy of the audited financial |
17 | | statement of the person for the most recent fiscal |
18 | | year or most recent report of the person filed under |
19 | | Section 13 of the Securities Exchange Act of 1934, 15 |
20 | | U.S.C. 78m. |
21 | | (P) If a person has control of the applicant and |
22 | | the person's equity interests are publicly traded |
23 | | outside the United States, a copy of the audited |
24 | | financial statement of the person for the most recent |
25 | | fiscal year of the person or a copy of the most recent |
26 | | documentation similar to that required in subparagraph |
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1 | | (N) filed with the foreign regulator in the domicile |
2 | | of the person. |
3 | | (Q) If the applicant is a partnership or a |
4 | | member-managed limited liability company, the names |
5 | | and United States Postal Service addresses of any |
6 | | general partner or member. |
7 | | (R) If the applicant is required to register with |
8 | | the Financial Crimes Enforcement Network of the United |
9 | | States Department of the Treasury as a money service |
10 | | business, evidence of the registration. |
11 | | (S) A set of fingerprints for each executive |
12 | | officer and responsible individual of the applicant. |
13 | | (T) If available, for any executive officer and |
14 | | responsible individual of the applicant, for the 10 |
15 | | years before the application is submitted, employment |
16 | | history and history of any investigation of the |
17 | | individual or legal proceeding to which the individual |
18 | | was a party. |
19 | | (U) The plans through which the applicant will |
20 | | meet its obligations under Article 110. |
21 | | (V) Any other information the Department requires |
22 | | by rule. |
23 | | (3) The application shall be accompanied by a |
24 | | nonrefundable fee of $5,000 or the amount determined by |
25 | | the Department to cover the costs of application review, |
26 | | whichever is greater. |
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1 | | (b)(1) On receipt of a completed application, the |
2 | | Department shall investigate all of the following: |
3 | | (A) The financial condition and responsibility of the |
4 | | applicant and any affiliate of the applicant. |
5 | | (B) The relevant financial and business experience, |
6 | | character, and general fitness of the applicant and any |
7 | | affiliate of the applicant. |
8 | | (C) The competence, experience, character, and general |
9 | | fitness of each executive officer and director, each |
10 | | responsible individual, and any person that has control of |
11 | | the applicant. |
12 | | (2) On receipt of a completed application, the Department |
13 | | may investigate the business premises of an applicant or an |
14 | | affiliate of the applicant or require the submission of any |
15 | | other documents or information the Department deems relevant |
16 | | to the application. |
17 | | (3) The investigation required by this subsection must |
18 | | allow the Secretary to issue positive findings stating that |
19 | | the financial condition, financial responsibility, competence, |
20 | | experience, character, and general fitness of the applicant, |
21 | | each executive officer and director, each responsible |
22 | | individual, any person that has control of the applicant, and |
23 | | any affiliate of the applicant are such as to command the |
24 | | confidence of the community and to warrant belief that the |
25 | | business will be operated honestly, fairly, and efficiently |
26 | | within the purpose of this Act; if the Secretary does not so |
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1 | | find, he or she shall not issue the registration, and he or she |
2 | | shall notify the applicant of the denial. |
3 | | (c)(1) After completing the investigation required by |
4 | | subsection (b), the Department shall send the applicant notice |
5 | | of its decision to approve, conditionally approve, or deny the |
6 | | application. If the Department does not receive notice from |
7 | | the applicant that the applicant accepts conditions specified |
8 | | by the Department within 31 days following the Department's |
9 | | notice of the conditions, the application shall be deemed |
10 | | withdrawn. |
11 | | (2) The Secretary may impose conditions on a registration |
12 | | if the Secretary determines that those conditions are |
13 | | necessary or appropriate. These conditions shall be imposed in |
14 | | writing and shall continue in effect for the period prescribed |
15 | | by the Secretary. |
16 | | (d) A registration issued pursuant to this Act shall take |
17 | | effect on the later of the following: |
18 | | (1) The date the Department issues the registration. |
19 | | (2) The date the registration provides the security |
20 | | required by Section 20-5. |
21 | | (e) In addition to the fee required by paragraph (3) of |
22 | | subsection (a), an applicant shall pay the costs of the |
23 | | Department's investigation under subsection (b). |
24 | | (f) A registration issued pursuant to this Act shall |
25 | | remain in full force and effect until it expires without |
26 | | renewal, is surrendered by the registration, or revoked or |
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1 | | suspended as hereinafter provided. |
2 | | (g)(1) The Department may issue a conditional registration |
3 | | to an applicant who holds or maintains a registration to |
4 | | conduct virtual currency business activity in the State of New |
5 | | York pursuant to Part 200 of Title 23 of the New York Code of |
6 | | Rules and Regulations, or a charter as a New York State limited |
7 | | purpose trust company with approval to conduct virtual |
8 | | currency business under the New York Banking Law, if the |
9 | | registration or approval was issued no later than the |
10 | | effective date of this Act and the applicant pays all |
11 | | appropriate fees and complies with the requirements of this |
12 | | Act. |
13 | | (2) A conditional registration issued pursuant to this |
14 | | subsection shall expire at the earliest of the following: |
15 | | (A) upon issuance of an unconditional registration; |
16 | | (B) upon denial of a registration; |
17 | | (C) upon revocation of a registration issued pursuant |
18 | | to Part 200 of Title 23 of the New York Code of Rules and |
19 | | Regulations or disapproval or revocation of a charter as a |
20 | | New York State limited purpose trust company with approval |
21 | | to conduct virtual currency business under the New York |
22 | | Banking Law. |
23 | | Section 15-15. Renewal. |
24 | | (a) Registrations shall be subject to renewal every year |
25 | | using a common renewal period as established by the Department |
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1 | | by rule. A registrant may apply for renewal of the |
2 | | registration by submitting a renewal application under |
3 | | subsection (b) and paying all applicable fees due to the |
4 | | Department. |
5 | | (b) The renewal application required by subsection (a) |
6 | | shall be submitted in a form and medium prescribed by the |
7 | | Department. The application shall contain all of the |
8 | | following: |
9 | | (1) Either a copy of the registrant's most recent |
10 | | reviewed annual financial statement, if the gross revenue |
11 | | generated by the registrant's digital asset business |
12 | | activity in this State was not more than $2,000,000 for |
13 | | the fiscal year ending before the anniversary date of |
14 | | issuance of its registration under this Act, or a copy of |
15 | | the registrant's most recent audited annual financial |
16 | | statement, if the registrant's digital asset business |
17 | | activity in this State amounted to more than $2,000,000, |
18 | | for the fiscal year ending before the anniversary date. |
19 | | (2) If a person other than an individual has control |
20 | | of the registrant, a copy of either of the following: |
21 | | (A) The person's most recent reviewed annual |
22 | | financial statement, if the person's gross revenue was |
23 | | not more than $2,000,000 in the previous fiscal year |
24 | | measured as of the anniversary date of issuance of its |
25 | | registration under this Act. |
26 | | (B) The person's most recent audited consolidated |
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1 | | annual financial statement, if the person's gross |
2 | | revenue was more than $2,000,000 in the previous |
3 | | fiscal year measured as of the anniversary date of |
4 | | issuance of its registration under this Act. |
5 | | (3) A description of any of the following: |
6 | | (A) Any material change in the financial condition |
7 | | of the registrant and any affiliate of the registrant. |
8 | | (B) Any material litigation related to the |
9 | | registrant's digital asset business activity and |
10 | | involving the registrant or an executive officer, |
11 | | responsible individual, or affiliate of the |
12 | | registrant. |
13 | | (C) Any federal, state, or foreign investigation |
14 | | involving the registrant or an executive officer, |
15 | | responsible individual, or affiliate of the |
16 | | registrant. |
17 | | (D)(i) Any data security breach or cybersecurity |
18 | | event involving the registrant. |
19 | | (ii) A description of a data security breach |
20 | | pursuant to this subparagraph does not constitute |
21 | | disclosure or notification of a security breach |
22 | | for purposes of any other law. |
23 | | (4) Information or records required by Section 120-25 |
24 | | that the registrant has not reported to the Department. |
25 | | (5) The number of digital asset business activity |
26 | | transactions with or on behalf of residents for the period |
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1 | | since the later of the date the registration was issued or |
2 | | the date the last renewal application was submitted. |
3 | | (6)(A) The amount of United States dollar equivalent |
4 | | of digital assets in the custody or control of the |
5 | | registrant at the end of the last month that ends not later |
6 | | than 30 days before the date of the renewal application. |
7 | | (B) The total number of residents for whom the |
8 | | registrant had custody or control of United States |
9 | | dollar equivalent of digital assets on that date. |
10 | | (7) Evidence that the registrant is in compliance with |
11 | | Section 5-10. |
12 | | (8) Evidence that the registrant is in compliance with |
13 | | Section 20-5. |
14 | | (9) A list of all locations where the registrant |
15 | | engages in digital asset business activity. |
16 | | (10) Any other information the Department requires by |
17 | | rule. |
18 | | (c) If a registrant does not timely comply with this |
19 | | Section, the Department may take enforcement actions provided |
20 | | under Section 20-50. Notice or hearing is not required for a |
21 | | suspension or revocation of a registration under this Act for |
22 | | failure to pay a renewal fee, file a renewal application, or |
23 | | otherwise comply with this Section. |
24 | | (d) Suspension or revocation of a registration under this |
25 | | Section does not invalidate a transfer or exchange of digital |
26 | | assets for or on behalf of a resident made during the |
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1 | | suspension or revocation and does not insulate the registrant |
2 | | from liability under this Act. |
3 | | (e) For good cause, the Department, in its sole |
4 | | discretion, may extend a period under this Section. |
5 | | (f) A registrant that does not comply with this Section |
6 | | shall cease digital asset business activities with or on |
7 | | behalf of a resident. A registrant ceasing an activity or |
8 | | activities regulated by this Act and desiring to no longer be |
9 | | registered shall so inform the Department in writing and, at |
10 | | the same time, convey any registration issued and all other |
11 | | symbols or indicia of registration. The registrant shall |
12 | | include a plan for the withdrawal from regulated business, |
13 | | including a timetable for the disposition of the business, and |
14 | | comply with the surrender guidelines or requirements of the |
15 | | Department. |
16 | | Section 15-20. Nontransferable registration. A |
17 | | registration under this Act is not transferable or assignable. |
18 | | Article 20. Supervision |
19 | | Section 20-5. Surety bond; capital and liquidity |
20 | | requirements. |
21 | | (a)(1)(A) A registrant shall maintain a surety bond or |
22 | | trust account in United States dollars in a form and amount as |
23 | | determined by the Department for the protection of residents |
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1 | | that engage in digital asset business activity with the |
2 | | registrant. |
3 | | (B) If a registrant maintains a trust account |
4 | | pursuant to this Section, that trust account shall be |
5 | | maintained with a qualified custodian. |
6 | | (2) Security deposited under this Section shall be for |
7 | | the benefit of a claim against the registrant on account |
8 | | of the registrant's digital asset business activity with |
9 | | or on behalf of a resident. |
10 | | (3) Security deposited under this Section shall cover |
11 | | claims for the period the Department specifies by rule and |
12 | | for an additional period the Department specifies after |
13 | | the registrant ceases to engage in digital asset business |
14 | | activity with or on behalf of a resident. |
15 | | (4) The Department may require the registrant to |
16 | | increase the amount of security deposited under this |
17 | | Section, and the registrant shall deposit the additional |
18 | | security not later than 15 days after the registrant |
19 | | receives notice in a record of the required increase. |
20 | | (5) The Department may permit a registrant to |
21 | | substitute or deposit an alternate form of security |
22 | | satisfactory to the Department if the registrant at all |
23 | | times complies with this Section. |
24 | | (b) In addition to the security required under subsection |
25 | | (a), a registrant shall maintain at all times capital and |
26 | | liquidity, each in an amount and form as the Department |
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1 | | determines is sufficient to ensure the financial integrity of |
2 | | the registrant and its ongoing operations based on an |
3 | | assessment of the specific risks applicable to the registrant. |
4 | | In determining the minimum amount of capital and liquidity |
5 | | that shall be maintained by a registrant, the Department may |
6 | | consider factors, including, but not limited to, all of the |
7 | | following: |
8 | | (1) The composition of the registrant's total assets, |
9 | | including the position, size, quality, liquidity, risk |
10 | | exposure, and price volatility of each type of asset. |
11 | | (2) The composition of the registrant's total |
12 | | liabilities, including the size and repayment timing of |
13 | | each type of liability. |
14 | | (3) The actual and expected volume of the registrant's |
15 | | digital asset business activity. |
16 | | (4) The amount of leverage employed by the registrant. |
17 | | (5) The liquidity position of the registrant. |
18 | | (6) The financial protection that the registrant |
19 | | provides pursuant to subsection (a). |
20 | | (7) The types of entities to be serviced by the |
21 | | registrant. |
22 | | (8) The types of products or services to be offered by |
23 | | the registrant. |
24 | | (9) Arrangements adopted by the registrant for the |
25 | | protection of its customers in the event of the |
26 | | registrant's insolvency. |
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1 | | (c) A registrant shall hold liquidity required to be |
2 | | maintained in accordance with this Section in the form of cash |
3 | | or high-quality liquid assets, as defined by the Department |
4 | | and in proportions determined by the Department. |
5 | | (d) The Department may require a registrant to increase |
6 | | the capital or liquidity required under this Section. A |
7 | | registrant shall submit evidence satisfactory to the |
8 | | Department that it has additional capital or liquidity |
9 | | required pursuant to this subsection not later than 15 days |
10 | | after the registrant receives notice in a record of the |
11 | | required increase. |
12 | | Section 20-10. Examination. |
13 | | (a)(1)(A) The Department may, at any time and from time to |
14 | | time, examine the business and any office, within or outside |
15 | | this State, of any covered person, or any agent of a covered |
16 | | person, in order to ascertain (i) the financial condition of |
17 | | the covered person, (ii) the safety and soundness of the |
18 | | conduct of its business, (iii) the policies of its management, |
19 | | (iv) whether the business is being conducted in a lawful |
20 | | manner, (v) whether all digital asset business activity is |
21 | | properly accounted for, and (vi) such other matters as the |
22 | | Department may determine, including, but not limited to, any |
23 | | activities of the covered person outside the State if in the |
24 | | Department's judgment such activities may affect the covered |
25 | | person's digital asset business activity. |
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1 | | (B) The directors, officers, and employees of a |
2 | | covered person, or agent of a covered person, being |
3 | | examined by the Department shall exhibit to the |
4 | | Department, on request, any or all of the covered |
5 | | person's accounts, books, correspondence, memoranda, |
6 | | papers, and other records and shall otherwise |
7 | | facilitate the examination so far as it may be in their |
8 | | power to do so. |
9 | | (C) The covered person shall permit and assist the |
10 | | Department to examine an affiliate or service provider |
11 | | of the covered person when, in the Department's |
12 | | judgment, it is necessary or advisable to do so. |
13 | | (2) The Department may examine a covered person, its |
14 | | affiliate, or service provider pursuant to this paragraph |
15 | | without prior notice to the covered person, affiliate, or |
16 | | service provider. |
17 | | (b) A covered person shall pay the necessary costs of an |
18 | | examination under this Section. |
19 | | Section 20-15. Books and records. |
20 | | (a) A registrant shall maintain, for all digital asset |
21 | | business activity with or on behalf of a resident for 5 years |
22 | | after the date of the activity, a record of all of the |
23 | | following: |
24 | | (1) Any transaction of the registrant with or on |
25 | | behalf of the resident or for the registrant's account in |
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1 | | this State, including all of the following: |
2 | | (A) The identity of the resident. |
3 | | (B) The form of the transaction. |
4 | | (C) The amount, date, and payment instructions |
5 | | given by the resident. |
6 | | (D) The account number, name, and physical address |
7 | | of: |
8 | | (i) the parties to the transaction that are |
9 | | customers or account holders of the registrant; |
10 | | and |
11 | | (ii) to the extent practicable, any other |
12 | | parties to the transaction. |
13 | | (2) The aggregate number of transactions and aggregate |
14 | | value of transactions by the registrant with, or on behalf |
15 | | of, the resident and for the registrant's account in this |
16 | | State expressed in United States dollar equivalent of |
17 | | digital assets for the previous 12 calendar months. |
18 | | (3) Any transaction in which the registrant exchanged |
19 | | one form of digital asset for fiat currency or another |
20 | | form of digital asset with or on behalf of the resident. |
21 | | (4) A general ledger maintained at least monthly that |
22 | | lists all assets, liabilities, capital, income, and |
23 | | expenses of the registrant. |
24 | | (5) Any report of condition or other reports to the |
25 | | Department, at such times and in such form, as the |
26 | | Department may request. |
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1 | | (6) Bank statements and bank reconciliation records |
2 | | for the registrant and the name, account number, and |
3 | | United States Postal Service address of any bank or credit |
4 | | union the registrant uses in the conduct of its digital |
5 | | asset business activity with or on behalf of the resident. |
6 | | (7) A report of any dispute with a resident. |
7 | | (b) A registrant shall maintain records required by |
8 | | subsection (a) in a form that enables the Department to |
9 | | determine whether the registrant is in compliance with this |
10 | | Act, any court order, and the laws of this State. |
11 | | (c) If a registrant maintains records outside this State |
12 | | that pertain to transactions with or on behalf of a resident, |
13 | | the registrant shall make the records available to the |
14 | | Department not later than 3 days after request, or, on a |
15 | | determination of good cause by the Department, in its sole |
16 | | discretion, at a later time. |
17 | | (d) All records maintained by a registrant, any affiliate, |
18 | | or any service provider are subject to inspection by the |
19 | | Department. |
20 | | Section 20-20. Regulatory cooperation. The Department may |
21 | | cooperate, coordinate, jointly examine, consult, and share |
22 | | records and other information with the appropriate regulatory |
23 | | agency of another state, a self-regulatory organization, |
24 | | federal or state regulator of banking or non-depository |
25 | | institutions, or a regulator of a jurisdiction outside the |
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1 | | United States, concerning the affairs and conduct of a covered |
2 | | person, affiliate, or service provider in this State. |
3 | | Section 20-25. Material business changes. |
4 | | (a) A registrant shall file with the Department a report |
5 | | of the following, as may be applicable: |
6 | | (1) A material change in information in the |
7 | | application for a registration under this Act or the most |
8 | | recent renewal report of the registrant under this Act. |
9 | | (2) A material change in the registrant's business for |
10 | | the conduct of its digital asset business activity with or |
11 | | on behalf of a resident. |
12 | | (3) A change of an affiliate, executive officer, |
13 | | responsible individual, or person in control of the |
14 | | registrant. |
15 | | (b) A report required by this Section shall be filed not |
16 | | later than 15 days after the change described in subsection |
17 | | (a). |
18 | | Section 20-30. Change in control. |
19 | | (a) As used in this Section, "proposed person to be in |
20 | | control" means the person that would control a registrant |
21 | | after a proposed transaction that would result in a change in |
22 | | control of the registrant. |
23 | | (b) The following rules apply in determining whether a |
24 | | person has control over a registrant: |
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1 | | (1) A person has control over a registrant if a person |
2 | | directly or indirectly owns, controls, holds with the |
3 | | power to vote, or holds proxies representing, 10% or more |
4 | | of the then outstanding voting securities issued by the |
5 | | registrant. |
6 | | (2) A person has control over a registrant if the |
7 | | person's voting power in the registrant constitutes or |
8 | | will constitute at least 25% of the total voting power of |
9 | | the registrant. |
10 | | (3) A person has control over a registrant if the |
11 | | person's voting power in another person constitutes or |
12 | | will constitute at least 10% of the total voting power of |
13 | | the other person and the other person's voting power in |
14 | | the registrant constitutes at least 10% of the total |
15 | | voting power of the registrant. |
16 | | (4) There is no presumption of control solely because |
17 | | an individual is an executive officer of the registrant. |
18 | | (c) Before a proposed change in control of a registrant, |
19 | | the proposed person to be in control shall submit to the |
20 | | Department in a record all of the following: |
21 | | (1) An application in a form and medium prescribed by |
22 | | the Department. |
23 | | (2) The information and records that Section 15-10 |
24 | | would require if the proposed person to be in control |
25 | | already had control of the registrant. |
26 | | (d) The Department shall not approve an application unless |
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1 | | the Secretary finds all of the following: |
2 | | (1) The proposed person to be in control and all |
3 | | executive officers of the proposed person to be in |
4 | | control, if any, are of good character and sound financial |
5 | | standing. |
6 | | (2) The proposed person to be in control is competent |
7 | | to engage in digital asset business activity. |
8 | | (3) It is reasonable to believe that, if the person |
9 | | acquires control of the registrant, the proposed person to |
10 | | be in control and the registrant will comply with all |
11 | | applicable provisions of this Act and any rules or order |
12 | | issued under this Act. |
13 | | (4) Any plans by the proposed person to be in control |
14 | | to change the business, corporate structure, or management |
15 | | of the registrant are not detrimental to the safety and |
16 | | soundness of the registrant. |
17 | | (e) The Department, in accordance with Section 15-10, |
18 | | shall approve, approve with conditions, or deny an application |
19 | | for a change in control of a registrant. The Department, in a |
20 | | record, shall send notice of its decision to the registrant |
21 | | and the person that would be in control if the Department had |
22 | | approved the change in control. If the Department denies the |
23 | | application, the registrant shall abandon the proposed change |
24 | | in control or cease digital asset business activity with or on |
25 | | behalf of residents. |
26 | | (f) If the Department applies a condition to approval of a |
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1 | | change in control of a registrant, and the Department does not |
2 | | receive notice of the applicant's acceptance of the condition |
3 | | specified by the Department not later than 31 days after the |
4 | | Department sends notice of the condition, the application is |
5 | | deemed denied. If the application is deemed denied, the |
6 | | registrant shall abandon the proposed change in control or |
7 | | cease digital asset business activity with or on behalf of |
8 | | residents. |
9 | | (g) The Department may revoke or modify a determination |
10 | | under subsection (d), after notice and opportunity to be |
11 | | heard, if, in its judgment, revocation or modification is |
12 | | consistent with this Act. |
13 | | (h) If a change in control of a registrant requires |
14 | | approval of another regulatory agency, and the action of the |
15 | | other agency conflicts with that of the Department, the |
16 | | Department shall confer with the other agency. If the proposed |
17 | | change in control cannot be completed because the conflict |
18 | | cannot be resolved, the registrant shall abandon the change in |
19 | | control or cease digital asset business activity with or on |
20 | | behalf of residents. |
21 | | Section 20-35. Mergers. |
22 | | (a) Before a proposed merger or consolidation of a |
23 | | registrant with another person, the registrant shall submit |
24 | | all of the following, as applicable, to the Department: |
25 | | (1) An application in a form and medium prescribed by |
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1 | | the Department. |
2 | | (2) The plan of merger or consolidation in accordance |
3 | | with subsection (e). |
4 | | (3) In the case of a registrant, the information |
5 | | required by Section 15-10 concerning the person that would |
6 | | be the surviving entity in the proposed merger or |
7 | | consolidation. |
8 | | (b) If a proposed merger or consolidation would change the |
9 | | control of a registrant, the registrant shall comply with |
10 | | Section 120-30 and this Section. |
11 | | (c) The Department, in accordance with Section 115-10, |
12 | | shall approve, conditionally approve, or deny an application |
13 | | for approval of a merger or consolidation of a registrant. The |
14 | | Department, in a record, shall send notice of its decision to |
15 | | the registrant and the person that would be the surviving |
16 | | entity. If the Department denies the application, the |
17 | | registrant shall abandon the merger or consolidation or cease |
18 | | digital asset business activity with or on behalf of |
19 | | residents. |
20 | | (d) The Department may revoke or modify a determination |
21 | | under paragraph (c), after notice and opportunity to be heard, |
22 | | if, in its judgment, revocation or modification is consistent |
23 | | with this Act. |
24 | | (e) A plan of merger or consolidation of a registrant with |
25 | | another person shall do all of the following: |
26 | | (1) Describe the effect of the proposed transaction on |
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1 | | the registrant's conduct of digital asset business |
2 | | activity with or on behalf of residents. |
3 | | (2) Identify each person to be merged or consolidated |
4 | | and the person that would be the surviving entity. |
5 | | (3) Describe the terms and conditions of the merger or |
6 | | consolidation and the mode of carrying it into effect. |
7 | | (f) If a merger or consolidation of a registrant and |
8 | | another person requires approval of another regulatory agency, |
9 | | and the action of the other agency conflicts with that of the |
10 | | Department, the Department shall confer with the other agency. |
11 | | If the proposed merger or consolidation cannot be completed |
12 | | because the conflict cannot be resolved, the registrant shall |
13 | | abandon the merger or consolidation or cease digital asset |
14 | | business activity with or on behalf of residents. |
15 | | (g) The Department may condition approval of an |
16 | | application under subsection (a). If the Department does not |
17 | | receive notice from the parties that the parties accept the |
18 | | Department's condition not later than 31 days after the |
19 | | Department sends notice in a record of the condition, the |
20 | | application is deemed denied. If the application is deemed |
21 | | denied, the registrant shall abandon the merger or |
22 | | consolidation or cease digital asset business activity with, |
23 | | or on behalf of, residents. |
24 | | (h) If a registrant acquires substantially all of the |
25 | | assets of a person, whether or not the person's registration |
26 | | was approved by the Department, the transaction is subject to |
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1 | | this Section. |
2 | | Section 20-40. Investigation of complaints. The Secretary |
3 | | shall be authorized at all times to maintain staff and |
4 | | facilities adequate to receive, record, and investigate |
5 | | complaints and inquiries made by any person concerning this |
6 | | Act and any covered persons, affiliates, and service providers |
7 | | under this Act. Each such person shall open their books, |
8 | | records, documents, and offices wherever situated to the |
9 | | Secretary or his or her appointees as needed to facilitate |
10 | | such investigations. |
11 | | Section 20-45. Additional investigation and examination |
12 | | authority. In addition to any authority allowed under this Act |
13 | | or other applicable law, the Secretary shall have the |
14 | | authority to conduct investigations and examinations as |
15 | | follows: |
16 | | (1) For purposes of initial registration, renewal, |
17 | | suspension, conditioning, revocation or termination, or |
18 | | general or specific inquiry or investigation to determine |
19 | | compliance with this Act, the Secretary shall have the |
20 | | authority to access, receive, and use any books, accounts, |
21 | | records, files, documents, information, or evidence, |
22 | | including, but not limited to, the following: |
23 | | (A) criminal, civil, and administrative history |
24 | | information, including nonconviction data as specified |
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1 | | in the Criminal Code of 2012; |
2 | | (B) personal history and experience information, |
3 | | including independent credit reports obtained from a |
4 | | consumer reporting agency described in Section 603(p) |
5 | | of the federal Fair Credit Reporting Act; and |
6 | | (C) any other documents, information, or evidence |
7 | | the Secretary deems relevant to the inquiry or |
8 | | investigation, regardless of the location, possession, |
9 | | control, or custody of the documents, information, or |
10 | | evidence. |
11 | | (2) For the purposes of investigating violations or |
12 | | complaints arising under this Act or for the purposes of |
13 | | examination, the Secretary may review, investigate, or |
14 | | examine any covered person, affiliate, service provider, |
15 | | individual, or person subject to this Act as often as |
16 | | necessary in order to carry out the purposes of this Act. |
17 | | The Secretary may direct, subpoena, or order the |
18 | | attendance of and examine under oath all persons whose |
19 | | testimony may be required about the transactions or the |
20 | | business or subject matter of any such examination or |
21 | | investigation, and may direct, subpoena, or order the |
22 | | person to produce books, accounts, records, files, and any |
23 | | other documents the Secretary deems relevant to the |
24 | | inquiry. |
25 | | (3) Each covered person, affiliate, service provider, |
26 | | individual, or person subject to this Act shall make |
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1 | | available to the Secretary upon request the books and |
2 | | records relating to the operations of the registrant, |
3 | | affiliate, individual, or person subject to this Act. The |
4 | | Secretary shall have access to those books and records and |
5 | | interview the officers, principals, employees, independent |
6 | | contractors, agents, and customers of the covered person, |
7 | | affiliate, service provider, individual, or person subject |
8 | | to this Act concerning their business. |
9 | | (4) Each covered person, affiliate, service provider, |
10 | | individual, or person subject to this Act shall make or |
11 | | compile reports or prepare other information as directed |
12 | | by the Secretary in order to carry out the purposes of this |
13 | | Section, including, but not limited to: |
14 | | (A) accounting compilations; |
15 | | (B) information lists and data concerning |
16 | | transactions in a format prescribed by the Secretary; |
17 | | or |
18 | | (C) other information deemed necessary to carry |
19 | | out the purposes of this Section. |
20 | | (5) In making any examination or investigation |
21 | | authorized by this Act, the Secretary may control access |
22 | | to any documents and records of the covered person or |
23 | | person under examination or investigation. The Secretary |
24 | | may take possession of the documents and records or place |
25 | | a person in exclusive charge of the documents and records |
26 | | in the place where they are usually kept. During the |
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1 | | period of control, no person shall remove or attempt to |
2 | | remove any of the documents or records, except pursuant to |
3 | | a court order or with the consent of the Secretary. Unless |
4 | | the Secretary has reasonable grounds to believe the |
5 | | documents or records of the covered person or person under |
6 | | examination or investigation have been or are at risk of |
7 | | being altered or destroyed for purposes of concealing a |
8 | | violation of this Act, the covered person or owner of the |
9 | | documents and records shall have access to the documents |
10 | | or records as necessary to conduct its ordinary business |
11 | | affairs. |
12 | | (6) In order to carry out the purposes of this |
13 | | Section, the Secretary may: |
14 | | (A) retain attorneys, accountants, or other |
15 | | professionals and specialists as examiners, auditors, |
16 | | or investigators to conduct or assist in the conduct |
17 | | of examinations or investigations; |
18 | | (B) enter into agreements or relationships with |
19 | | other government officials, regulatory associations, |
20 | | or self-regulatory organizations in order to improve |
21 | | efficiencies and reduce regulatory burden by sharing |
22 | | resources, standardized or uniform methods or |
23 | | procedures, and documents, records, information, or |
24 | | evidence obtained under this Section; |
25 | | (C) use, hire, contract, or employ public or |
26 | | privately available analytical systems, methods, or |
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1 | | software to examine or investigate the covered person, |
2 | | affiliate, service provider, individual, or person |
3 | | subject to this Act; |
4 | | (D) accept and rely on examination or |
5 | | investigation reports made by other government |
6 | | officials, within or outside this State; or |
7 | | (E) accept audit reports made by an independent |
8 | | certified public accountant for the covered person, |
9 | | affiliate, service provider, individual, or person |
10 | | subject to this Act in the course of that part of the |
11 | | examination covering the same general subject matter |
12 | | as the audit and may incorporate the audit report in |
13 | | the report of the examination, report of |
14 | | investigation, or other writing of the Secretary. |
15 | | (7) The authority of this Section shall remain in |
16 | | effect, whether such a covered person, affiliate, service |
17 | | provider, individual, or person subject to this Act acts |
18 | | or claims to act under any licensing or registration law |
19 | | of this State or claims to act without the authority. |
20 | | (8) No covered person, affiliate, service provider, |
21 | | individual, or person subject to investigation or |
22 | | examination under this Section may knowingly withhold, |
23 | | abstract, remove, mutilate, destroy, or secrete any books, |
24 | | records, computer records, or other information. |
25 | | Section 20-50. Enforcement actions. |
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1 | | (a) As used in this Article, "enforcement action" means an |
2 | | action including, but not limited to, all of the following: |
3 | | (1) Suspending or revoking a registration under this |
4 | | Act. |
5 | | (2) Ordering a person to cease and desist from doing |
6 | | digital asset business activity with or on behalf of a |
7 | | resident. |
8 | | (3) Requesting the court to appoint a receiver for the |
9 | | assets of a person doing digital asset business activity |
10 | | with or on behalf of a resident. |
11 | | (4) Requesting the court to issue temporary, |
12 | | preliminary, or permanent injunctive relief against a |
13 | | person doing digital asset business activity with or on |
14 | | behalf of a resident. |
15 | | (5) Assessing a civil penalty under Section 20-70. |
16 | | (6) Recovering on the security under Section 20-5 and |
17 | | initiating a plan to distribute the proceeds for the |
18 | | benefit of a resident injured by a violation of this Act, |
19 | | or law of this State other than this Act that applies to |
20 | | digital asset business activity with or on behalf of a |
21 | | resident. |
22 | | (7) Imposing necessary or appropriate conditions on |
23 | | the conduct of digital asset business activity with or on |
24 | | behalf of a resident. |
25 | | (8) Seeking restitution on behalf of a resident if the |
26 | | Department shows economic injury due to a violation of |
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1 | | this Act. |
2 | | (b) The Department may enter into a consent order with a |
3 | | person regarding an enforcement action. |
4 | | (c) This Section does not provide a private right of |
5 | | action to a resident, provided this Section does not preclude |
6 | | an action by a resident to enforce rights under Article 5 or |
7 | | subsection (a) of Section 120-5. |
8 | | Section 20-55. Violations. |
9 | | (a) The Department may take an enforcement action against |
10 | | a covered person or any person otherwise subject to this Act in |
11 | | any of the following instances: |
12 | | (1) The covered person or person violates this Act, a |
13 | | rule adopted or order issued under this Act, or a State or |
14 | | federal law or regulation that applies to digital asset |
15 | | business activity of the violator with or on behalf of a |
16 | | resident. |
17 | | (2) The covered person or person does not cooperate |
18 | | with an examination or investigation by the Department, |
19 | | fails to pay a fee, or fails to submit a report or |
20 | | documentation. |
21 | | (3) The covered person or person, in the conduct of |
22 | | its digital asset business activity with or on behalf of a |
23 | | resident, has engaged, is engaging, or is about to engage |
24 | | in any of the following: |
25 | | (A) An unsafe, unsound, or unlawful act or |
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1 | | practice. |
2 | | (B) An unfair, deceptive, or abusive act or |
3 | | practice. |
4 | | (C) Fraud, misrepresentation, deceit, or |
5 | | negligence. |
6 | | (D) Misappropriation of fiat currency, a digital |
7 | | asset, or other value. |
8 | | (4) An agency of the United States or another state |
9 | | takes an action against the covered person or person that |
10 | | would constitute an enforcement action if the Department |
11 | | had taken the action. |
12 | | (5) The covered person or person is convicted of a |
13 | | crime related to its digital asset business activity with |
14 | | or on behalf of a resident or involving fraud or felonious |
15 | | activity that, as determined by the Department, makes the |
16 | | covered person or person unsuitable to engage in digital |
17 | | asset business activity. |
18 | | (6) Any of the following occurs: |
19 | | (A) The covered person or person becomes |
20 | | insolvent. |
21 | | (B) The covered person or person makes a general |
22 | | assignment for the benefit of its creditors. |
23 | | (C) The covered person or person becomes the |
24 | | debtor, alleged debtor, respondent, or person in a |
25 | | similar capacity in a case or other proceeding under |
26 | | any bankruptcy, reorganization, arrangement, |
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1 | | readjustment, insolvency, receivership, dissolution, |
2 | | liquidation, or similar law, and does not obtain from |
3 | | the court, within a reasonable time, confirmation of a |
4 | | plan or dismissal of the case or proceeding. |
5 | | (D) The covered person or person applies for, or |
6 | | permits the appointment of, a receiver, trustee, or |
7 | | other agent of a court for itself or for a substantial |
8 | | part of its assets. |
9 | | (7) The covered person or person makes a |
10 | | misrepresentation to the Department. |
11 | | (b) If the Secretary finds, as the result of examination, |
12 | | investigation, or review of reports submitted by a registrant, |
13 | | that the business and affairs of a registrant are not being |
14 | | conducted in accordance with this Act, the Secretary may |
15 | | notify the registrant of the correction necessary. If a |
16 | | registrant fails to correct such violations, the Secretary may |
17 | | issue an order requiring immediate correction and compliance |
18 | | with this Act and may specify a reasonable date for |
19 | | performance. |
20 | | Section 20-60. Hearings. |
21 | | (a) Except as provided in subsection (b), the Department |
22 | | may take an enforcement action only after notice and |
23 | | opportunity for a hearing as appropriate in the circumstances. |
24 | | All hearings provided for in this Act shall be conducted in |
25 | | accordance with Title 38, Part 100 of the Illinois |
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1 | | Administrative Code, and the Secretary shall have all the |
2 | | powers granted therein. |
3 | | (b)(1)(A) The Department may take an enforcement action, |
4 | | other than the imposition of a civil penalty under Section |
5 | | 120-70, without notice if the circumstances require action |
6 | | before notice can be given. |
7 | | (B) A person subject to an enforcement action |
8 | | pursuant to this subsection shall have the right to an |
9 | | expedited post-action hearing by the Department unless |
10 | | the person has waived the hearing. |
11 | | (2)(A) The Department may take an enforcement action, |
12 | | other than the imposition of a civil penalty under Section |
13 | | 120-70, after notice and without a prior hearing if the |
14 | | circumstances require action before a hearing can be held. |
15 | | (B) A person subject to an enforcement action |
16 | | pursuant to this subsection shall have the right to an |
17 | | expedited post-action hearing by the Department unless |
18 | | the person has waived the hearing. |
19 | | (3) The Department may take an enforcement action |
20 | | after notice and without a hearing if the person subject |
21 | | to the enforcement action does not timely request a |
22 | | hearing. |
23 | | Section 20-65. Hearing rules. |
24 | | (a) The Department may, in accordance with the Illinois |
25 | | Administrative Procedure Act, adopt rules to provide for |
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1 | | review within the Department of the Secretary's decisions |
2 | | affecting the rights of persons or entities under this Act. |
3 | | The review shall provide for, at a minimum: |
4 | | (1) appointment of a hearing officer; |
5 | | (2) appropriate procedural rules, specific deadlines |
6 | | for filings, and standards of evidence and of proof; and |
7 | | (3) provision for apportioning costs among parties to |
8 | | the appeal. |
9 | | (b) All final administrative decisions of the Department |
10 | | under this Act, all amendments and modifications of final |
11 | | administrative decisions, and any rules adopted by the |
12 | | Department pursuant to this Act shall be subject to judicial |
13 | | review pursuant to the provisions of the Administrative Review |
14 | | Law. |
15 | | Section 20-70. Civil penalties. |
16 | | (a) If a person other than a registrant has engaged, is |
17 | | engaging, or is about to engage in digital asset business |
18 | | activity with or on behalf of a resident in violation of this |
19 | | Act, the Department may assess a civil penalty against the |
20 | | person in an amount not to exceed $100,000 for each day the |
21 | | person is in violation of this Act. |
22 | | (b) If a person violates a provision of this Act, the |
23 | | Department may assess a civil penalty in an amount not to |
24 | | exceed $25,000 for each day of violation or for each act or |
25 | | omission in violation, except that a fine may be imposed not to |
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1 | | exceed $75,000 for each day of violation or for each act or |
2 | | omission in violation related to fraud, misrepresentation, |
3 | | deceit, or negligence. |
4 | | (c) A civil penalty under this Section continues to accrue |
5 | | until the date the violation ceases. |
6 | | (d) A civil penalty under this Section is cumulative to |
7 | | any civil penalties enforceable by the Department under any |
8 | | other law. |
9 | | Section 20-75. Subpoena power. |
10 | | (a) The Secretary shall have the power to issue and to |
11 | | serve subpoenas and subpoenas duces tecum to compel the |
12 | | attendance of witnesses and the production of all books, |
13 | | accounts, records, and other documents and materials relevant |
14 | | to an examination or investigation. The Secretary, or his or |
15 | | her duly authorized representative, shall have power to |
16 | | administer oaths and affirmations to any person. |
17 | | (b) In the event of noncompliance with a subpoena or |
18 | | subpoena duces tecum issued or caused to be issued by the |
19 | | Secretary, the Secretary may, through the Attorney General or |
20 | | the State's Attorney of the county in which the person |
21 | | subpoenaed resides or has its principal place of business, |
22 | | petition the circuit court of the county for an order |
23 | | requiring the subpoenaed person to appear and testify and to |
24 | | produce such books, accounts, records, and other documents as |
25 | | are specified in the subpoena duces tecum. The court may grant |
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1 | | injunctive relief restraining the person from advertising, |
2 | | promoting, soliciting, entering into, offering to enter into, |
3 | | continuing, or completing any digital asset business activity. |
4 | | The court may grant other relief, including, but not limited |
5 | | to, the restraint, by injunction or appointment of a receiver, |
6 | | of any transfer, pledge, assignment, or other disposition of |
7 | | the person's assets or any concealment, alteration, |
8 | | destruction, or other disposition of books, accounts, records, |
9 | | or other documents and materials as the court deems |
10 | | appropriate, until the person has fully complied with the |
11 | | subpoena or subpoena duces tecum and the Secretary has |
12 | | completed an investigation or examination. |
13 | | (c) If it appears to the Secretary that the compliance |
14 | | with a subpoena or subpoena duces tecum issued or caused to be |
15 | | issued by the Secretary pursuant to this Section is essential |
16 | | to an investigation or examination, the Secretary, in addition |
17 | | to the other remedies provided for in this Act, may, through |
18 | | the Attorney General or the State's Attorney of the county in |
19 | | which the subpoenaed person resides or has its principal place |
20 | | of business, apply for relief to the circuit court of the |
21 | | county. The court shall thereupon direct the issuance of an |
22 | | order against the subpoenaed person requiring sufficient bond |
23 | | conditioned on compliance with the subpoena or subpoena duces |
24 | | tecum. The court shall cause to be endorsed on the order a |
25 | | suitable amount of bond or payment pursuant to which the |
26 | | person named in the order shall be freed, having a due regard |
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1 | | to the nature of the case. |
2 | | (d) In addition, the Secretary may, through the Attorney |
3 | | General or the State's Attorney of the applicable county, seek |
4 | | a writ of attachment or an equivalent order from the circuit |
5 | | court having jurisdiction over the person who has refused to |
6 | | obey a subpoena, who has refused to give testimony, or who has |
7 | | refused to produce the matters described in the subpoena duces |
8 | | tecum. |
9 | | Section 20-80. Civil actions. |
10 | | (a) The Department may bring a civil action in accordance |
11 | | with the following: |
12 | | (1) If a person violates any provision of this Act, a |
13 | | rule or final order, or condition imposed in writing by |
14 | | the Department, the Department through the Attorney |
15 | | General or the State's Attorney of the county in which any |
16 | | such violation occurs may bring an action in the circuit |
17 | | court to enjoin the acts or practices or to enforce |
18 | | compliance with this Act or any rule or order adopted |
19 | | pursuant to this Act. Upon a proper showing, a permanent |
20 | | or preliminary injunction, restraining order, or writ of |
21 | | mandate shall be granted and a receiver, monitor, |
22 | | conservator, or other designated fiduciary or officer of |
23 | | the court may be appointed for the defendant or the |
24 | | defendant's assets, or any other ancillary relief may be |
25 | | granted as appropriate. A receiver, monitor, conservator, |
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1 | | or other designated fiduciary or officer of the court |
2 | | appointed by the circuit court pursuant to this Section |
3 | | may, with the approval of the court, exercise any or all of |
4 | | the powers of the defendant's officers, directors, |
5 | | partners, trustees, or persons who exercise similar powers |
6 | | and perform similar duties, including the filing of a |
7 | | petition for bankruptcy. No action at law or in equity may |
8 | | be maintained by any party against the Secretary, a |
9 | | receiver, monitor, conservator, or other designated |
10 | | fiduciary or officer of the court, by reason of their |
11 | | exercising these powers or performing these duties |
12 | | pursuant to the order of, or with the approval of, the |
13 | | circuit court. |
14 | | (2) The Secretary may include in any action relief |
15 | | authorized by Section 20-50. The circuit court shall have |
16 | | jurisdiction to award additional relief. |
17 | | (3) In any action brought by the Department, the |
18 | | Department may recover its costs and attorney's fees in |
19 | | connection with prosecuting the action if the Department |
20 | | is the prevailing party in the action. |
21 | | (b) The Attorney General may enforce a violation of |
22 | | Article 105 as an unlawful practice under the Consumer Fraud |
23 | | and Deceptive Business Practices Act. |
24 | | (c) A claim of violation of Article 5 may be asserted in a |
25 | | civil action. Additionally, a prevailing resident may be |
26 | | awarded reasonable attorney's fees and court costs. |
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1 | | Article 30. Additional Procedural Provisions |
2 | | Section 30-5. Confidential supervisory information. |
3 | | (a) Confidential supervisory information shall, unless |
4 | | made a matter of public record, not be subject to disclosure |
5 | | under the Freedom of Information Act, and shall only be |
6 | | subject to disclosure pursuant to subpoena or court order as |
7 | | provided in subsection (e). |
8 | | (b) All records of communications or summaries of |
9 | | communications between employees, agents, or representatives |
10 | | of the Department and employees, agents, or representatives of |
11 | | other governmental agencies, a provider of any multistate |
12 | | licensing system, or associations or organizations |
13 | | representing federal, state, or local law enforcement or |
14 | | regulatory agencies or providers of any multistate licensing |
15 | | system, pursuant to any regulatory or supervision activity |
16 | | under this Act (1) shall not be subject to disclosure under the |
17 | | Freedom of Information Act, and (2) to the extent the records |
18 | | contain confidential supervisory information, shall only be |
19 | | subject to disclosure pursuant to subpoena or court order as |
20 | | provided in subsection (e). |
21 | | (c) All confidential supervisory information received from |
22 | | other governmental agencies, a multistate licensing system |
23 | | provider, or associations or organizations consisting of |
24 | | employees, agents, or representatives of such agencies or |
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1 | | providers, shall not be subject to disclosure under the |
2 | | Freedom of Information Act, and only subject to disclosure |
3 | | pursuant to subpoena or court order as provided in subsection |
4 | | (e). |
5 | | (d) The sharing of any confidential supervisory |
6 | | information under this Act with governmental agencies, |
7 | | providers of any multistate licensing system, or associations |
8 | | or organizations consisting of employees, agents, or |
9 | | representatives of such federal, state, or local law |
10 | | enforcement or regulatory agencies, shall not result in the |
11 | | loss of privilege arising under federal or state law, or the |
12 | | loss of confidentiality protections provided by federal law or |
13 | | state law, and are only subject to disclosure pursuant to |
14 | | subpoena or court order as provided in subsection (e). |
15 | | (e) Confidential supervisory information may not be |
16 | | disclosed to anyone other than the regulated person, law |
17 | | enforcement officials or other regulatory agencies that have |
18 | | an appropriate regulatory interest as determined by the |
19 | | Secretary, or to a party presenting a lawful subpoena, order, |
20 | | or other judicial or administrative process to the Secretary. |
21 | | The Secretary may immediately appeal to the court of |
22 | | jurisdiction the disclosure of such confidential supervisory |
23 | | information and seek a stay of the subpoena pending the |
24 | | outcome of the appeal. Reports required of regulated persons |
25 | | by the Secretary under this Act and results of examinations |
26 | | performed by the Secretary under this Act shall be the |
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1 | | property of only the Secretary but may be shared with the |
2 | | regulated person. Access under this Act to the books and |
3 | | records of each regulated person shall be limited to the |
4 | | Secretary and his agents as provided in this Act and to the |
5 | | regulated person and its authorized agents and designees. No |
6 | | other person shall have access to the books and records of a |
7 | | regulated person under this Act. Any person upon whom a demand |
8 | | for production of confidential supervisory information is |
9 | | made, whether by subpoena, order, or other judicial or |
10 | | administrative process, must withhold production of the |
11 | | confidential supervisory information and must notify the |
12 | | Secretary of the demand, at which time the Secretary is |
13 | | authorized to intervene for the purpose of enforcing the |
14 | | limitations of this Section or seeking the withdrawal or |
15 | | termination of the attempt to compel production of the |
16 | | confidential supervisory information. The Secretary may impose |
17 | | any conditions and limitations on the disclosure of |
18 | | confidential supervisory information that are necessary to |
19 | | protect the confidentiality of such information. Except as |
20 | | authorized by the Secretary, no person obtaining access to |
21 | | confidential supervisory information may make a copy of the |
22 | | confidential supervisory information. The Secretary may |
23 | | condition a decision to disclose confidential supervisory |
24 | | information on entry of a protective order by the court or |
25 | | administrative tribunal presiding in the particular case or on |
26 | | a written agreement of confidentiality. In a case in which a |
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1 | | protective order or agreement has already been entered between |
2 | | parties other than the Secretary, the Secretary may |
3 | | nevertheless condition approval for release of confidential |
4 | | supervisory information upon the inclusion of additional or |
5 | | amended provisions in the protective order. The Secretary may |
6 | | authorize a party who obtained the records for use in one case |
7 | | to provide them to another party in another case, subject to |
8 | | any conditions that the Secretary may impose on either or both |
9 | | parties. The requester shall promptly notify other parties to |
10 | | a case of the release of confidential supervisory information |
11 | | obtained and, upon entry of a protective order, shall provide |
12 | | copies of confidential supervisory information to the other |
13 | | parties. |
14 | | (f) The Secretary is authorized to enter agreements or |
15 | | sharing arrangements with other governmental agencies, |
16 | | providers of any multistate licensing system, or associations |
17 | | or organizations representing governmental agencies or |
18 | | providers of any multistate licensing system. Notwithstanding |
19 | | the foregoing, the provisions of this Section shall apply |
20 | | regardless of the existence of any such agreement or sharing |
21 | | arrangement. |
22 | | (g) This Section in no way limits any right, privilege, or |
23 | | authority that the Department has pursuant to any other |
24 | | applicable law. This Section does not in any way limit any |
25 | | privilege arising under federal or state law or other |
26 | | exemption from disclosure pursuant to the Freedom of |
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1 | | Information Act. |
2 | | (h) Notwithstanding the foregoing, whenever the Secretary |
3 | | determines, in his or her sole discretion, that it is in the |
4 | | public's interest, he or she may publicly disclose information |
5 | | or documents obtained under this Act, unless otherwise |
6 | | prohibited by law. |
7 | | Section 30-10. Additional rulemaking authority. |
8 | | (a) In addition to such powers and rulemaking authority as |
9 | | may be prescribed elsewhere in this Act or other financial |
10 | | laws administered by the Department, the Department is hereby |
11 | | authorized and empowered to adopt rules consistent with the |
12 | | purposes of this Act, including, but not limited to: |
13 | | (1) rules in connection with the activities of covered |
14 | | persons, affiliates, and service providers as may be |
15 | | necessary and appropriate for the protection of residents; |
16 | | (2) rules to define the terms used in this Act and as |
17 | | may be necessary and appropriate to interpret and |
18 | | implement the provisions of this Act; |
19 | | (3) rules as may be necessary for the administration |
20 | | and enforcement of this Act; |
21 | | (4) rules to set and collect fees necessary to |
22 | | administer and enforce this Act; |
23 | | (5) rules in connection with the activities of covered |
24 | | persons, affiliates, and service providers as may be |
25 | | necessary and appropriate for the safety and soundness of |
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1 | | such covered persons and affiliates and the stability of |
2 | | the financial system in this State. |
3 | | (b) The Secretary is hereby authorized and empowered to |
4 | | make specific rulings, demands, and findings that he or she |
5 | | deems necessary for the proper conduct of the registrants and |
6 | | affiliates thereof. |
7 | | Article 135. Miscellaneous Provisions |
8 | | Section 35-5. No evasion. |
9 | | (a) It shall be unlawful to engage in any device, 4 |
10 | | subterfuge, or pretense to willfully evade or attempt to evade |
11 | | the requirements of this Act or any rule or order issued by the |
12 | | 6 Department hereunder. |
13 | | (b) Any financial product, service, or transaction that is |
14 | | willfully structured to evade or attempt to evade the |
15 | | definitions of digital asset or digital asset business |
16 | | activity is a digital asset or digital asset business |
17 | | activity, respectively, for purposes of this Act. |
18 | | Section 35-10. Construction; severability. |
19 | | (a) The provisions of this Act shall be liberally |
20 | | construed to effectuate its purposes. |
21 | | (b) The provisions of this Act are severable under Section |
22 | | 1.31 of the Statute on Statutes. |
23 | | (c) To the extent that any provision of this Act is |
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1 | | preempted by federal law, the provision shall not apply and |
2 | | shall not be enforced solely as to the extent of the preemption |
3 | | and not as to other circumstances, persons, or applications. |
4 | | Section 35-15. Transition period. |
5 | | (a) A covered person engaging in digital asset business |
6 | | activity without a registration under this Act shall not be |
7 | | considered in violation of Section 15-5 or 5-25 until July 1, |
8 | | 2026. |
9 | | (b) A covered person engaging in digital asset business |
10 | | activity shall not be considered in violation of Sections 5-5, |
11 | | 5-10, and 5-20 until January 1, 2026. |
12 | | (c) A covered exchange shall not be considered in |
13 | | violation of Section 5-15 until January 1, 2026. |
14 | | (d) Notwithstanding the foregoing, the Department may |
15 | | adopt rules pursuant to this Act upon this Act becoming law |
16 | | with such rules not to take effect earlier than January 1, |
17 | | 2025. |
18 | | Article 900. Amendatory provisions |
19 | | Section 900-5. The Freedom of Information Act is amended |
20 | | by changing Section 7.5 as follows: |
21 | | (5 ILCS 140/7.5) |
22 | | (Text of Section before amendment by P.A. 103-472 ) |
23 | | Sec. 7.5. Statutory exemptions. To the extent provided for |
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1 | | by the statutes referenced below, the following shall be |
2 | | exempt from inspection and copying: |
3 | | (a) All information determined to be confidential |
4 | | under Section 4002 of the Technology Advancement and |
5 | | Development Act. |
6 | | (b) Library circulation and order records identifying |
7 | | library users with specific materials under the Library |
8 | | Records Confidentiality Act. |
9 | | (c) Applications, related documents, and medical |
10 | | records received by the Experimental Organ Transplantation |
11 | | Procedures Board and any and all documents or other |
12 | | records prepared by the Experimental Organ Transplantation |
13 | | Procedures Board or its staff relating to applications it |
14 | | has received. |
15 | | (d) Information and records held by the Department of |
16 | | Public Health and its authorized representatives relating |
17 | | to known or suspected cases of sexually transmissible |
18 | | disease or any information the disclosure of which is |
19 | | restricted under the Illinois Sexually Transmissible |
20 | | Disease Control Act. |
21 | | (e) Information the disclosure of which is exempted |
22 | | under Section 30 of the Radon Industry Licensing Act. |
23 | | (f) Firm performance evaluations under Section 55 of |
24 | | the Architectural, Engineering, and Land Surveying |
25 | | Qualifications Based Selection Act. |
26 | | (g) Information the disclosure of which is restricted |
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1 | | and exempted under Section 50 of the Illinois Prepaid |
2 | | Tuition Act. |
3 | | (h) Information the disclosure of which is exempted |
4 | | under the State Officials and Employees Ethics Act, and |
5 | | records of any lawfully created State or local inspector |
6 | | general's office that would be exempt if created or |
7 | | obtained by an Executive Inspector General's office under |
8 | | that Act. |
9 | | (i) Information contained in a local emergency energy |
10 | | plan submitted to a municipality in accordance with a |
11 | | local emergency energy plan ordinance that is adopted |
12 | | under Section 11-21.5-5 of the Illinois Municipal Code. |
13 | | (j) Information and data concerning the distribution |
14 | | of surcharge moneys collected and remitted by carriers |
15 | | under the Emergency Telephone System Act. |
16 | | (k) Law enforcement officer identification information |
17 | | or driver identification information compiled by a law |
18 | | enforcement agency or the Department of Transportation |
19 | | under Section 11-212 of the Illinois Vehicle Code. |
20 | | (l) Records and information provided to a residential |
21 | | health care facility resident sexual assault and death |
22 | | review team or the Executive Council under the Abuse |
23 | | Prevention Review Team Act. |
24 | | (m) Information provided to the predatory lending |
25 | | database created pursuant to Article 3 of the Residential |
26 | | Real Property Disclosure Act, except to the extent |
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1 | | authorized under that Article. |
2 | | (n) Defense budgets and petitions for certification of |
3 | | compensation and expenses for court appointed trial |
4 | | counsel as provided under Sections 10 and 15 of the |
5 | | Capital Crimes Litigation Act (repealed) . This subsection |
6 | | (n) shall apply until the conclusion of the trial of the |
7 | | case, even if the prosecution chooses not to pursue the |
8 | | death penalty prior to trial or sentencing. |
9 | | (o) Information that is prohibited from being |
10 | | disclosed under Section 4 of the Illinois Health and |
11 | | Hazardous Substances Registry Act. |
12 | | (p) Security portions of system safety program plans, |
13 | | investigation reports, surveys, schedules, lists, data, or |
14 | | information compiled, collected, or prepared by or for the |
15 | | Department of Transportation under Sections 2705-300 and |
16 | | 2705-616 of the Department of Transportation Law of the |
17 | | Civil Administrative Code of Illinois, the Regional |
18 | | Transportation Authority under Section 2.11 of the |
19 | | Regional Transportation Authority Act, or the St. Clair |
20 | | County Transit District under the Bi-State Transit Safety |
21 | | Act (repealed) . |
22 | | (q) Information prohibited from being disclosed by the |
23 | | Personnel Record Review Act. |
24 | | (r) Information prohibited from being disclosed by the |
25 | | Illinois School Student Records Act. |
26 | | (s) Information the disclosure of which is restricted |
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1 | | under Section 5-108 of the Public Utilities Act. |
2 | | (t) (Blank). |
3 | | (u) Records and information provided to an independent |
4 | | team of experts under the Developmental Disability and |
5 | | Mental Health Safety Act (also known as Brian's Law). |
6 | | (v) Names and information of people who have applied |
7 | | for or received Firearm Owner's Identification Cards under |
8 | | the Firearm Owners Identification Card Act or applied for |
9 | | or received a concealed carry license under the Firearm |
10 | | Concealed Carry Act, unless otherwise authorized by the |
11 | | Firearm Concealed Carry Act; and databases under the |
12 | | Firearm Concealed Carry Act, records of the Concealed |
13 | | Carry Licensing Review Board under the Firearm Concealed |
14 | | Carry Act, and law enforcement agency objections under the |
15 | | Firearm Concealed Carry Act. |
16 | | (v-5) Records of the Firearm Owner's Identification |
17 | | Card Review Board that are exempted from disclosure under |
18 | | Section 10 of the Firearm Owners Identification Card Act. |
19 | | (w) Personally identifiable information which is |
20 | | exempted from disclosure under subsection (g) of Section |
21 | | 19.1 of the Toll Highway Act. |
22 | | (x) Information which is exempted from disclosure |
23 | | under Section 5-1014.3 of the Counties Code or Section |
24 | | 8-11-21 of the Illinois Municipal Code. |
25 | | (y) Confidential information under the Adult |
26 | | Protective Services Act and its predecessor enabling |
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1 | | statute, the Elder Abuse and Neglect Act, including |
2 | | information about the identity and administrative finding |
3 | | against any caregiver of a verified and substantiated |
4 | | decision of abuse, neglect, or financial exploitation of |
5 | | an eligible adult maintained in the Registry established |
6 | | under Section 7.5 of the Adult Protective Services Act. |
7 | | (z) Records and information provided to a fatality |
8 | | review team or the Illinois Fatality Review Team Advisory |
9 | | Council under Section 15 of the Adult Protective Services |
10 | | Act. |
11 | | (aa) Information which is exempted from disclosure |
12 | | under Section 2.37 of the Wildlife Code. |
13 | | (bb) Information which is or was prohibited from |
14 | | disclosure by the Juvenile Court Act of 1987. |
15 | | (cc) Recordings made under the Law Enforcement |
16 | | Officer-Worn Body Camera Act, except to the extent |
17 | | authorized under that Act. |
18 | | (dd) Information that is prohibited from being |
19 | | disclosed under Section 45 of the Condominium and Common |
20 | | Interest Community Ombudsperson Act. |
21 | | (ee) Information that is exempted from disclosure |
22 | | under Section 30.1 of the Pharmacy Practice Act. |
23 | | (ff) Information that is exempted from disclosure |
24 | | under the Revised Uniform Unclaimed Property Act. |
25 | | (gg) Information that is prohibited from being |
26 | | disclosed under Section 7-603.5 of the Illinois Vehicle |
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1 | | Code. |
2 | | (hh) Records that are exempt from disclosure under |
3 | | Section 1A-16.7 of the Election Code. |
4 | | (ii) Information which is exempted from disclosure |
5 | | under Section 2505-800 of the Department of Revenue Law of |
6 | | the Civil Administrative Code of Illinois. |
7 | | (jj) Information and reports that are required to be |
8 | | submitted to the Department of Labor by registering day |
9 | | and temporary labor service agencies but are exempt from |
10 | | disclosure under subsection (a-1) of Section 45 of the Day |
11 | | and Temporary Labor Services Act. |
12 | | (kk) Information prohibited from disclosure under the |
13 | | Seizure and Forfeiture Reporting Act. |
14 | | (ll) Information the disclosure of which is restricted |
15 | | and exempted under Section 5-30.8 of the Illinois Public |
16 | | Aid Code. |
17 | | (mm) Records that are exempt from disclosure under |
18 | | Section 4.2 of the Crime Victims Compensation Act. |
19 | | (nn) Information that is exempt from disclosure under |
20 | | Section 70 of the Higher Education Student Assistance Act. |
21 | | (oo) Communications, notes, records, and reports |
22 | | arising out of a peer support counseling session |
23 | | prohibited from disclosure under the First Responders |
24 | | Suicide Prevention Act. |
25 | | (pp) Names and all identifying information relating to |
26 | | an employee of an emergency services provider or law |
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1 | | enforcement agency under the First Responders Suicide |
2 | | Prevention Act. |
3 | | (qq) Information and records held by the Department of |
4 | | Public Health and its authorized representatives collected |
5 | | under the Reproductive Health Act. |
6 | | (rr) Information that is exempt from disclosure under |
7 | | the Cannabis Regulation and Tax Act. |
8 | | (ss) Data reported by an employer to the Department of |
9 | | Human Rights pursuant to Section 2-108 of the Illinois |
10 | | Human Rights Act. |
11 | | (tt) Recordings made under the Children's Advocacy |
12 | | Center Act, except to the extent authorized under that |
13 | | Act. |
14 | | (uu) Information that is exempt from disclosure under |
15 | | Section 50 of the Sexual Assault Evidence Submission Act. |
16 | | (vv) Information that is exempt from disclosure under |
17 | | subsections (f) and (j) of Section 5-36 of the Illinois |
18 | | Public Aid Code. |
19 | | (ww) Information that is exempt from disclosure under |
20 | | Section 16.8 of the State Treasurer Act. |
21 | | (xx) Information that is exempt from disclosure or |
22 | | information that shall not be made public under the |
23 | | Illinois Insurance Code. |
24 | | (yy) Information prohibited from being disclosed under |
25 | | the Illinois Educational Labor Relations Act. |
26 | | (zz) Information prohibited from being disclosed under |
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1 | | the Illinois Public Labor Relations Act. |
2 | | (aaa) Information prohibited from being disclosed |
3 | | under Section 1-167 of the Illinois Pension Code. |
4 | | (bbb) Information that is prohibited from disclosure |
5 | | by the Illinois Police Training Act and the Illinois State |
6 | | Police Act. |
7 | | (ccc) Records exempt from disclosure under Section |
8 | | 2605-304 of the Illinois State Police Law of the Civil |
9 | | Administrative Code of Illinois. |
10 | | (ddd) Information prohibited from being disclosed |
11 | | under Section 35 of the Address Confidentiality for |
12 | | Victims of Domestic Violence, Sexual Assault, Human |
13 | | Trafficking, or Stalking Act. |
14 | | (eee) Information prohibited from being disclosed |
15 | | under subsection (b) of Section 75 of the Domestic |
16 | | Violence Fatality Review Act. |
17 | | (fff) Images from cameras under the Expressway Camera |
18 | | Act. This subsection (fff) is inoperative on and after |
19 | | July 1, 2025. |
20 | | (ggg) Information prohibited from disclosure under |
21 | | paragraph (3) of subsection (a) of Section 14 of the Nurse |
22 | | Agency Licensing Act. |
23 | | (hhh) Information submitted to the Illinois State |
24 | | Police in an affidavit or application for an assault |
25 | | weapon endorsement, assault weapon attachment endorsement, |
26 | | .50 caliber rifle endorsement, or .50 caliber cartridge |
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1 | | endorsement under the Firearm Owners Identification Card |
2 | | Act. |
3 | | (iii) Data exempt from disclosure under Section 50 of |
4 | | the School Safety Drill Act. |
5 | | (jjj) (hhh) Information exempt from disclosure under |
6 | | Section 30 of the Insurance Data Security Law. |
7 | | (kkk) (iii) Confidential business information |
8 | | prohibited from disclosure under Section 45 of the Paint |
9 | | Stewardship Act. |
10 | | (lll) (Reserved). |
11 | | (mmm) (iii) Information prohibited from being |
12 | | disclosed under subsection (e) of Section 1-129 of the |
13 | | Illinois Power Agency Act. |
14 | | (nnn) Data exempt from disclosure under Section 50 of |
15 | | the School Safety Drill Act. |
16 | | (ooo) Information prohibited from being disclosed |
17 | | under Section 30-5 of the Digital Assets Regulation Act. |
18 | | (Source: P.A. 102-36, eff. 6-25-21; 102-237, eff. 1-1-22; |
19 | | 102-292, eff. 1-1-22; 102-520, eff. 8-20-21; 102-559, eff. |
20 | | 8-20-21; 102-813, eff. 5-13-22; 102-946, eff. 7-1-22; |
21 | | 102-1042, eff. 6-3-22; 102-1116, eff. 1-10-23; 103-8, eff. |
22 | | 6-7-23; 103-34, eff. 6-9-23; 103-142, eff. 1-1-24; 103-372, |
23 | | eff. 1-1-24; 103-508, eff. 8-4-23; 103-580, eff. 12-8-23; |
24 | | revised 1-2-24.) |
25 | | (Text of Section after amendment by P.A. 103-472 ) |
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1 | | Sec. 7.5. Statutory exemptions. To the extent provided for |
2 | | by the statutes referenced below, the following shall be |
3 | | exempt from inspection and copying: |
4 | | (a) All information determined to be confidential |
5 | | under Section 4002 of the Technology Advancement and |
6 | | Development Act. |
7 | | (b) Library circulation and order records identifying |
8 | | library users with specific materials under the Library |
9 | | Records Confidentiality Act. |
10 | | (c) Applications, related documents, and medical |
11 | | records received by the Experimental Organ Transplantation |
12 | | Procedures Board and any and all documents or other |
13 | | records prepared by the Experimental Organ Transplantation |
14 | | Procedures Board or its staff relating to applications it |
15 | | has received. |
16 | | (d) Information and records held by the Department of |
17 | | Public Health and its authorized representatives relating |
18 | | to known or suspected cases of sexually transmissible |
19 | | disease or any information the disclosure of which is |
20 | | restricted under the Illinois Sexually Transmissible |
21 | | Disease Control Act. |
22 | | (e) Information the disclosure of which is exempted |
23 | | under Section 30 of the Radon Industry Licensing Act. |
24 | | (f) Firm performance evaluations under Section 55 of |
25 | | the Architectural, Engineering, and Land Surveying |
26 | | Qualifications Based Selection Act. |
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1 | | (g) Information the disclosure of which is restricted |
2 | | and exempted under Section 50 of the Illinois Prepaid |
3 | | Tuition Act. |
4 | | (h) Information the disclosure of which is exempted |
5 | | under the State Officials and Employees Ethics Act, and |
6 | | records of any lawfully created State or local inspector |
7 | | general's office that would be exempt if created or |
8 | | obtained by an Executive Inspector General's office under |
9 | | that Act. |
10 | | (i) Information contained in a local emergency energy |
11 | | plan submitted to a municipality in accordance with a |
12 | | local emergency energy plan ordinance that is adopted |
13 | | under Section 11-21.5-5 of the Illinois Municipal Code. |
14 | | (j) Information and data concerning the distribution |
15 | | of surcharge moneys collected and remitted by carriers |
16 | | under the Emergency Telephone System Act. |
17 | | (k) Law enforcement officer identification information |
18 | | or driver identification information compiled by a law |
19 | | enforcement agency or the Department of Transportation |
20 | | under Section 11-212 of the Illinois Vehicle Code. |
21 | | (l) Records and information provided to a residential |
22 | | health care facility resident sexual assault and death |
23 | | review team or the Executive Council under the Abuse |
24 | | Prevention Review Team Act. |
25 | | (m) Information provided to the predatory lending |
26 | | database created pursuant to Article 3 of the Residential |
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1 | | Real Property Disclosure Act, except to the extent |
2 | | authorized under that Article. |
3 | | (n) Defense budgets and petitions for certification of |
4 | | compensation and expenses for court appointed trial |
5 | | counsel as provided under Sections 10 and 15 of the |
6 | | Capital Crimes Litigation Act (repealed) . This subsection |
7 | | (n) shall apply until the conclusion of the trial of the |
8 | | case, even if the prosecution chooses not to pursue the |
9 | | death penalty prior to trial or sentencing. |
10 | | (o) Information that is prohibited from being |
11 | | disclosed under Section 4 of the Illinois Health and |
12 | | Hazardous Substances Registry Act. |
13 | | (p) Security portions of system safety program plans, |
14 | | investigation reports, surveys, schedules, lists, data, or |
15 | | information compiled, collected, or prepared by or for the |
16 | | Department of Transportation under Sections 2705-300 and |
17 | | 2705-616 of the Department of Transportation Law of the |
18 | | Civil Administrative Code of Illinois, the Regional |
19 | | Transportation Authority under Section 2.11 of the |
20 | | Regional Transportation Authority Act, or the St. Clair |
21 | | County Transit District under the Bi-State Transit Safety |
22 | | Act (repealed) . |
23 | | (q) Information prohibited from being disclosed by the |
24 | | Personnel Record Review Act. |
25 | | (r) Information prohibited from being disclosed by the |
26 | | Illinois School Student Records Act. |
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1 | | (s) Information the disclosure of which is restricted |
2 | | under Section 5-108 of the Public Utilities Act. |
3 | | (t) (Blank). |
4 | | (u) Records and information provided to an independent |
5 | | team of experts under the Developmental Disability and |
6 | | Mental Health Safety Act (also known as Brian's Law). |
7 | | (v) Names and information of people who have applied |
8 | | for or received Firearm Owner's Identification Cards under |
9 | | the Firearm Owners Identification Card Act or applied for |
10 | | or received a concealed carry license under the Firearm |
11 | | Concealed Carry Act, unless otherwise authorized by the |
12 | | Firearm Concealed Carry Act; and databases under the |
13 | | Firearm Concealed Carry Act, records of the Concealed |
14 | | Carry Licensing Review Board under the Firearm Concealed |
15 | | Carry Act, and law enforcement agency objections under the |
16 | | Firearm Concealed Carry Act. |
17 | | (v-5) Records of the Firearm Owner's Identification |
18 | | Card Review Board that are exempted from disclosure under |
19 | | Section 10 of the Firearm Owners Identification Card Act. |
20 | | (w) Personally identifiable information which is |
21 | | exempted from disclosure under subsection (g) of Section |
22 | | 19.1 of the Toll Highway Act. |
23 | | (x) Information which is exempted from disclosure |
24 | | under Section 5-1014.3 of the Counties Code or Section |
25 | | 8-11-21 of the Illinois Municipal Code. |
26 | | (y) Confidential information under the Adult |
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1 | | Protective Services Act and its predecessor enabling |
2 | | statute, the Elder Abuse and Neglect Act, including |
3 | | information about the identity and administrative finding |
4 | | against any caregiver of a verified and substantiated |
5 | | decision of abuse, neglect, or financial exploitation of |
6 | | an eligible adult maintained in the Registry established |
7 | | under Section 7.5 of the Adult Protective Services Act. |
8 | | (z) Records and information provided to a fatality |
9 | | review team or the Illinois Fatality Review Team Advisory |
10 | | Council under Section 15 of the Adult Protective Services |
11 | | Act. |
12 | | (aa) Information which is exempted from disclosure |
13 | | under Section 2.37 of the Wildlife Code. |
14 | | (bb) Information which is or was prohibited from |
15 | | disclosure by the Juvenile Court Act of 1987. |
16 | | (cc) Recordings made under the Law Enforcement |
17 | | Officer-Worn Body Camera Act, except to the extent |
18 | | authorized under that Act. |
19 | | (dd) Information that is prohibited from being |
20 | | disclosed under Section 45 of the Condominium and Common |
21 | | Interest Community Ombudsperson Act. |
22 | | (ee) Information that is exempted from disclosure |
23 | | under Section 30.1 of the Pharmacy Practice Act. |
24 | | (ff) Information that is exempted from disclosure |
25 | | under the Revised Uniform Unclaimed Property Act. |
26 | | (gg) Information that is prohibited from being |
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1 | | disclosed under Section 7-603.5 of the Illinois Vehicle |
2 | | Code. |
3 | | (hh) Records that are exempt from disclosure under |
4 | | Section 1A-16.7 of the Election Code. |
5 | | (ii) Information which is exempted from disclosure |
6 | | under Section 2505-800 of the Department of Revenue Law of |
7 | | the Civil Administrative Code of Illinois. |
8 | | (jj) Information and reports that are required to be |
9 | | submitted to the Department of Labor by registering day |
10 | | and temporary labor service agencies but are exempt from |
11 | | disclosure under subsection (a-1) of Section 45 of the Day |
12 | | and Temporary Labor Services Act. |
13 | | (kk) Information prohibited from disclosure under the |
14 | | Seizure and Forfeiture Reporting Act. |
15 | | (ll) Information the disclosure of which is restricted |
16 | | and exempted under Section 5-30.8 of the Illinois Public |
17 | | Aid Code. |
18 | | (mm) Records that are exempt from disclosure under |
19 | | Section 4.2 of the Crime Victims Compensation Act. |
20 | | (nn) Information that is exempt from disclosure under |
21 | | Section 70 of the Higher Education Student Assistance Act. |
22 | | (oo) Communications, notes, records, and reports |
23 | | arising out of a peer support counseling session |
24 | | prohibited from disclosure under the First Responders |
25 | | Suicide Prevention Act. |
26 | | (pp) Names and all identifying information relating to |
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1 | | an employee of an emergency services provider or law |
2 | | enforcement agency under the First Responders Suicide |
3 | | Prevention Act. |
4 | | (qq) Information and records held by the Department of |
5 | | Public Health and its authorized representatives collected |
6 | | under the Reproductive Health Act. |
7 | | (rr) Information that is exempt from disclosure under |
8 | | the Cannabis Regulation and Tax Act. |
9 | | (ss) Data reported by an employer to the Department of |
10 | | Human Rights pursuant to Section 2-108 of the Illinois |
11 | | Human Rights Act. |
12 | | (tt) Recordings made under the Children's Advocacy |
13 | | Center Act, except to the extent authorized under that |
14 | | Act. |
15 | | (uu) Information that is exempt from disclosure under |
16 | | Section 50 of the Sexual Assault Evidence Submission Act. |
17 | | (vv) Information that is exempt from disclosure under |
18 | | subsections (f) and (j) of Section 5-36 of the Illinois |
19 | | Public Aid Code. |
20 | | (ww) Information that is exempt from disclosure under |
21 | | Section 16.8 of the State Treasurer Act. |
22 | | (xx) Information that is exempt from disclosure or |
23 | | information that shall not be made public under the |
24 | | Illinois Insurance Code. |
25 | | (yy) Information prohibited from being disclosed under |
26 | | the Illinois Educational Labor Relations Act. |
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1 | | (zz) Information prohibited from being disclosed under |
2 | | the Illinois Public Labor Relations Act. |
3 | | (aaa) Information prohibited from being disclosed |
4 | | under Section 1-167 of the Illinois Pension Code. |
5 | | (bbb) Information that is prohibited from disclosure |
6 | | by the Illinois Police Training Act and the Illinois State |
7 | | Police Act. |
8 | | (ccc) Records exempt from disclosure under Section |
9 | | 2605-304 of the Illinois State Police Law of the Civil |
10 | | Administrative Code of Illinois. |
11 | | (ddd) Information prohibited from being disclosed |
12 | | under Section 35 of the Address Confidentiality for |
13 | | Victims of Domestic Violence, Sexual Assault, Human |
14 | | Trafficking, or Stalking Act. |
15 | | (eee) Information prohibited from being disclosed |
16 | | under subsection (b) of Section 75 of the Domestic |
17 | | Violence Fatality Review Act. |
18 | | (fff) Images from cameras under the Expressway Camera |
19 | | Act. This subsection (fff) is inoperative on and after |
20 | | July 1, 2025. |
21 | | (ggg) Information prohibited from disclosure under |
22 | | paragraph (3) of subsection (a) of Section 14 of the Nurse |
23 | | Agency Licensing Act. |
24 | | (hhh) Information submitted to the Illinois State |
25 | | Police in an affidavit or application for an assault |
26 | | weapon endorsement, assault weapon attachment endorsement, |
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1 | | .50 caliber rifle endorsement, or .50 caliber cartridge |
2 | | endorsement under the Firearm Owners Identification Card |
3 | | Act. |
4 | | (iii) Data exempt from disclosure under Section 50 of |
5 | | the School Safety Drill Act. |
6 | | (jjj) (hhh) Information exempt from disclosure under |
7 | | Section 30 of the Insurance Data Security Law. |
8 | | (kkk) (iii) Confidential business information |
9 | | prohibited from disclosure under Section 45 of the Paint |
10 | | Stewardship Act. |
11 | | (lll) (iii) Data exempt from disclosure under Section |
12 | | 2-3.196 of the School Code. |
13 | | (mmm) (iii) Information prohibited from being |
14 | | disclosed under subsection (e) of Section 1-129 of the |
15 | | Illinois Power Agency Act. |
16 | | (nnn) Data exempt from disclosure under Section 50 of |
17 | | the School Safety Drill Act. |
18 | | (ooo) Information prohibited from being disclosed |
19 | | under Section 30-5 of the Digital Assets Regulation Act. |
20 | | (Source: P.A. 102-36, eff. 6-25-21; 102-237, eff. 1-1-22; |
21 | | 102-292, eff. 1-1-22; 102-520, eff. 8-20-21; 102-559, eff. |
22 | | 8-20-21; 102-813, eff. 5-13-22; 102-946, eff. 7-1-22; |
23 | | 102-1042, eff. 6-3-22; 102-1116, eff. 1-10-23; 103-8, eff. |
24 | | 6-7-23; 103-34, eff. 6-9-23; 103-142, eff. 1-1-24; 103-372, |
25 | | eff. 1-1-24; 103-472, eff. 8-1-24; 103-508, eff. 8-4-23; |
26 | | 103-580, eff. 12-8-23; revised 1-2-24.) |
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1 | | Section 900-10. The State Finance Act is amended by adding |
2 | | Section 5.1015 as follows: |
3 | | (30 ILCS 105/5.1015 new) |
4 | | Sec. 5.1015. The Consumer Protection Fund. |
5 | | Section 900-15. The Illinois Banking Act is amended by |
6 | | changing Sections 2 and 30 as follows: |
7 | | (205 ILCS 5/2) (from Ch. 17, par. 302) |
8 | | Sec. 2. General definitions. In this Act, unless the |
9 | | context otherwise requires, the following words and phrases |
10 | | shall have the following meanings: |
11 | | "Accommodation party" shall have the meaning ascribed to |
12 | | that term in Section 3-419 of the Uniform Commercial Code. |
13 | | "Action" in the sense of a judicial proceeding includes |
14 | | recoupments, counterclaims, set-off, and any other proceeding |
15 | | in which rights are determined. |
16 | | "Affiliate facility" of a bank means a main banking |
17 | | premises or branch of another commonly owned bank. The main |
18 | | banking premises or any branch of a bank may be an "affiliate |
19 | | facility" with respect to one or more other commonly owned |
20 | | banks. |
21 | | "Appropriate federal banking agency" means the Federal |
22 | | Deposit Insurance Corporation, the Federal Reserve Bank of |
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1 | | Chicago, or the Federal Reserve Bank of St. Louis, as |
2 | | determined by federal law. |
3 | | "Bank" means any person doing a banking business whether |
4 | | subject to the laws of this or any other jurisdiction. |
5 | | A "banking house", "branch", "branch bank" or "branch |
6 | | office" shall mean any place of business of a bank at which |
7 | | deposits are received, checks paid, or loans made, but shall |
8 | | not include any place at which only records thereof are made, |
9 | | posted, or kept. A place of business at which deposits are |
10 | | received, checks paid, or loans made shall not be deemed to be |
11 | | a branch, branch bank, or branch office if the place of |
12 | | business is adjacent to and connected with the main banking |
13 | | premises, or if it is separated from the main banking premises |
14 | | by not more than an alley; provided always that (i) if the |
15 | | place of business is separated by an alley from the main |
16 | | banking premises there is a connection between the two by |
17 | | public or private way or by subterranean or overhead passage, |
18 | | and (ii) if the place of business is in a building not wholly |
19 | | occupied by the bank, the place of business shall not be within |
20 | | any office or room in which any other business or service of |
21 | | any kind or nature other than the business of the bank is |
22 | | conducted or carried on. A place of business at which deposits |
23 | | are received, checks paid, or loans made shall not be deemed to |
24 | | be a branch, branch bank, or branch office (i) of any bank if |
25 | | the place is a terminal established and maintained in |
26 | | accordance with paragraph (17) of Section 5 of this Act, or |
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1 | | (ii) of a commonly owned bank by virtue of transactions |
2 | | conducted at that place on behalf of the other commonly owned |
3 | | bank under paragraph (23) of Section 5 of this Act if the place |
4 | | is an affiliate facility with respect to the other bank. |
5 | | "Branch of an out-of-state bank" means a branch |
6 | | established or maintained in Illinois by an out-of-state bank |
7 | | as a result of a merger between an Illinois bank and the |
8 | | out-of-state bank that occurs on or after May 31, 1997, or any |
9 | | branch established by the out-of-state bank following the |
10 | | merger. |
11 | | "Bylaws" means the bylaws of a bank that are adopted by the |
12 | | bank's board of directors or shareholders for the regulation |
13 | | and management of the bank's affairs. If the bank operates as a |
14 | | limited liability company, however, "bylaws" means the |
15 | | operating agreement of the bank. |
16 | | "Call report fee" means the fee to be paid to the |
17 | | Commissioner by each State bank pursuant to paragraph (a) of |
18 | | subsection (3) of Section 48 of this Act. |
19 | | "Capital" includes the aggregate of outstanding capital |
20 | | stock and preferred stock. |
21 | | "Cash flow reserve account" means the account within the |
22 | | books and records of the Commissioner of Banks and Real Estate |
23 | | used to record funds designated to maintain a reasonable Bank |
24 | | and Trust Company Fund operating balance to meet agency |
25 | | obligations on a timely basis. |
26 | | "Charter" includes the original charter and all amendments |
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1 | | thereto and articles of merger or consolidation. |
2 | | "Commissioner" means the Commissioner of Banks and Real |
3 | | Estate, except that beginning on April 6, 2009 (the effective |
4 | | date of Public Act 95-1047), all references in this Act to the |
5 | | Commissioner of Banks and Real Estate are deemed, in |
6 | | appropriate contexts, to be references to the Secretary of |
7 | | Financial and Professional Regulation. |
8 | | "Commonly owned banks" means 2 or more banks that each |
9 | | qualify as a bank subsidiary of the same bank holding company |
10 | | pursuant to Section 18 of the Federal Deposit Insurance Act; |
11 | | "commonly owned bank" refers to one of a group of commonly |
12 | | owned banks but only with respect to one or more of the other |
13 | | banks in the same group. |
14 | | "Community" means a city, village, or incorporated town |
15 | | and also includes the area served by the banking offices of a |
16 | | bank, but need not be limited or expanded to conform to the |
17 | | geographic boundaries of units of local government. |
18 | | "Company" means a corporation, limited liability company, |
19 | | partnership, business trust, association, or similar |
20 | | organization and, unless specifically excluded, includes a |
21 | | "State bank" and a "bank". |
22 | | "Consolidating bank" means a party to a consolidation. |
23 | | "Consolidation" takes place when 2 or more banks, or a |
24 | | trust company and a bank, are extinguished and by the same |
25 | | process a new bank is created, taking over the assets and |
26 | | assuming the liabilities of the banks or trust company passing |
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1 | | out of existence. |
2 | | "Continuing bank" means a merging bank, the charter of |
3 | | which becomes the charter of the resulting bank. |
4 | | "Converting bank" means a State bank converting to become |
5 | | a national bank, or a national bank converting to become a |
6 | | State bank. |
7 | | "Converting trust company" means a trust company |
8 | | converting to become a State bank. |
9 | | "Court" means a court of competent jurisdiction. |
10 | | "Director" means a member of the board of directors of a |
11 | | bank. In the case of a manager-managed limited liability |
12 | | company, however, "director" means a manager of the bank and, |
13 | | in the case of a member-managed limited liability company, |
14 | | "director" means a member of the bank. The term "director" |
15 | | does not include an advisory director, honorary director, |
16 | | director emeritus, or similar person, unless the person is |
17 | | otherwise performing functions similar to those of a member of |
18 | | the board of directors. |
19 | | "Director of Banking" means the Director of the Division |
20 | | of Banking of the Department of Financial and Professional |
21 | | Regulation. |
22 | | "Eligible depository institution" means an insured savings |
23 | | association that is in default, an insured savings association |
24 | | that is in danger of default, a State or national bank that is |
25 | | in default or a State or national bank that is in danger of |
26 | | default, as those terms are defined in this Section, or a new |
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1 | | bank as that term defined in Section 11(m) of the Federal |
2 | | Deposit Insurance Act or a bridge bank as that term is defined |
3 | | in Section 11(n) of the Federal Deposit Insurance Act or a new |
4 | | federal savings association authorized under Section |
5 | | 11(d)(2)(f) of the Federal Deposit Insurance Act. |
6 | | "Fiduciary" means trustee, agent, executor, administrator, |
7 | | committee, guardian for a minor or for a person under legal |
8 | | disability, receiver, trustee in bankruptcy, assignee for |
9 | | creditors, or any holder of similar position of trust. |
10 | | "Financial institution" means a bank, savings bank, |
11 | | savings and loan association, credit union, or any licensee |
12 | | under the Consumer Installment Loan Act or the Sales Finance |
13 | | Agency Act and, for purposes of Section 48.3, any proprietary |
14 | | network, funds transfer corporation, or other entity providing |
15 | | electronic funds transfer services, or any corporate |
16 | | fiduciary, its subsidiaries, affiliates, parent company, or |
17 | | contractual service provider that is examined by the |
18 | | Commissioner. For purposes of Section 5c and subsection (b) of |
19 | | Section 13 of this Act, "financial institution" includes any |
20 | | proprietary network, funds transfer corporation, or other |
21 | | entity providing electronic funds transfer services, and any |
22 | | corporate fiduciary. |
23 | | "Foundation" means the Illinois Bank Examiners' Education |
24 | | Foundation. |
25 | | "General obligation" means a bond, note, debenture, |
26 | | security, or other instrument evidencing an obligation of the |
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1 | | government entity that is the issuer that is supported by the |
2 | | full available resources of the issuer, the principal and |
3 | | interest of which is payable in whole or in part by taxation. |
4 | | "Guarantee" means an undertaking or promise to answer for |
5 | | payment of another's debt or performance of another's duty, |
6 | | liability, or obligation whether "payment guaranteed" or |
7 | | "collection guaranteed". |
8 | | "In danger of default" means a State or national bank, a |
9 | | federally chartered insured savings association or an Illinois |
10 | | state chartered insured savings association with respect to |
11 | | which the Commissioner or the appropriate federal banking |
12 | | agency has advised the Federal Deposit Insurance Corporation |
13 | | that: |
14 | | (1) in the opinion of the Commissioner or the |
15 | | appropriate federal banking agency, |
16 | | (A) the State or national bank or insured savings |
17 | | association is not likely to be able to meet the |
18 | | demands of the State or national bank's or savings |
19 | | association's obligations in the normal course of |
20 | | business; and |
21 | | (B) there is no reasonable prospect that the State |
22 | | or national bank or insured savings association will |
23 | | be able to meet those demands or pay those obligations |
24 | | without federal assistance; or |
25 | | (2) in the opinion of the Commissioner or the |
26 | | appropriate federal banking agency, |
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1 | | (A) the State or national bank or insured savings |
2 | | association has incurred or is likely to incur losses |
3 | | that will deplete all or substantially all of its |
4 | | capital; and |
5 | | (B) there is no reasonable prospect that the |
6 | | capital of the State or national bank or insured |
7 | | savings association will be replenished without |
8 | | federal assistance. |
9 | | "In default" means, with respect to a State or national |
10 | | bank or an insured savings association, any adjudication or |
11 | | other official determination by any court of competent |
12 | | jurisdiction, the Commissioner, the appropriate federal |
13 | | banking agency, or other public authority pursuant to which a |
14 | | conservator, receiver, or other legal custodian is appointed |
15 | | for a State or national bank or an insured savings |
16 | | association. |
17 | | "Insured savings association" means any federal savings |
18 | | association chartered under Section 5 of the federal Home |
19 | | Owners' Loan Act and any State savings association chartered |
20 | | under the Illinois Savings and Loan Act of 1985 or a |
21 | | predecessor Illinois statute, the deposits of which are |
22 | | insured by the Federal Deposit Insurance Corporation. The term |
23 | | also includes a savings bank organized or operating under the |
24 | | Savings Bank Act. |
25 | | "Insured savings association in recovery" means an insured |
26 | | savings association that is not an eligible depository |
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1 | | institution and that does not meet the minimum capital |
2 | | requirements applicable with respect to the insured savings |
3 | | association. |
4 | | "Issuer" means for purposes of Section 33 every person who |
5 | | shall have issued or proposed to issue any security; except |
6 | | that (1) with respect to certificates of deposit, voting trust |
7 | | certificates, collateral-trust certificates, and certificates |
8 | | of interest or shares in an unincorporated investment trust |
9 | | not having a board of directors (or persons performing similar |
10 | | functions), "issuer" means the person or persons performing |
11 | | the acts and assuming the duties of depositor or manager |
12 | | pursuant to the provisions of the trust, agreement, or |
13 | | instrument under which the securities are issued; (2) with |
14 | | respect to trusts other than those specified in clause (1) |
15 | | above, where the trustee is a corporation authorized to accept |
16 | | and execute trusts, "issuer" means the entrusters, depositors, |
17 | | or creators of the trust and any manager or committee charged |
18 | | with the general direction of the affairs of the trust |
19 | | pursuant to the provisions of the agreement or instrument |
20 | | creating the trust; and (3) with respect to equipment trust |
21 | | certificates or like securities, "issuer" means the person to |
22 | | whom the equipment or property is or is to be leased or |
23 | | conditionally sold. |
24 | | "Letter of credit" and "customer" shall have the meanings |
25 | | ascribed to those terms in Section 5-102 of the Uniform |
26 | | Commercial Code. |
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1 | | "Main banking premises" means the location that is |
2 | | designated in a bank's charter as its main office. |
3 | | "Maker or obligor" means for purposes of Section 33 the |
4 | | issuer of a security, the promisor in a debenture or other debt |
5 | | security, or the mortgagor or grantor of a trust deed or |
6 | | similar conveyance of a security interest in real or personal |
7 | | property. |
8 | | "Merged bank" means a merging bank that is not the |
9 | | continuing, resulting, or surviving bank in a consolidation or |
10 | | merger. |
11 | | "Merger" includes consolidation. |
12 | | "Merging bank" means a party to a bank merger. |
13 | | "Merging trust company" means a trust company party to a |
14 | | merger with a State bank. |
15 | | "Mid-tier bank holding company" means a corporation that |
16 | | (a) owns 100% of the issued and outstanding shares of each |
17 | | class of stock of a State bank, (b) has no other subsidiaries, |
18 | | and (c) 100% of the issued and outstanding shares of the |
19 | | corporation are owned by a parent bank holding company. |
20 | | "Municipality" means any municipality, political |
21 | | subdivision, school district, taxing district, or agency. |
22 | | "National bank" means a national banking association |
23 | | located in this State and after May 31, 1997, means a national |
24 | | banking association without regard to its location. |
25 | | "Out-of-state bank" means a bank chartered under the laws |
26 | | of a state other than Illinois, a territory of the United |
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1 | | States, or the District of Columbia. |
2 | | "Parent bank holding company" means a corporation that is |
3 | | a bank holding company as that term is defined in the Illinois |
4 | | Bank Holding Company Act of 1957 and owns 100% of the issued |
5 | | and outstanding shares of a mid-tier bank holding company. |
6 | | "Person" means an individual, corporation, limited |
7 | | liability company, partnership, joint venture, trust, estate, |
8 | | or unincorporated association. |
9 | | "Public agency" means the State of Illinois, the various |
10 | | counties, townships, cities, towns, villages, school |
11 | | districts, educational service regions, special road |
12 | | districts, public water supply districts, fire protection |
13 | | districts, drainage districts, levee districts, sewer |
14 | | districts, housing authorities, the Illinois Bank Examiners' |
15 | | Education Foundation, the Chicago Park District, and all other |
16 | | political corporations or subdivisions of the State of |
17 | | Illinois, whether now or hereafter created, whether herein |
18 | | specifically mentioned or not, and shall also include any |
19 | | other state or any political corporation or subdivision of |
20 | | another state. |
21 | | "Public funds" or "public money" means current operating |
22 | | funds, special funds, interest and sinking funds, and funds of |
23 | | any kind or character belonging to, in the custody of, or |
24 | | subject to the control or regulation of the United States or a |
25 | | public agency. "Public funds" or "public money" shall include |
26 | | funds held by any of the officers, agents, or employees of the |
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1 | | United States or of a public agency in the course of their |
2 | | official duties and, with respect to public money of the |
3 | | United States, shall include Postal Savings funds. |
4 | | "Published" means, unless the context requires otherwise, |
5 | | the publishing of the notice or instrument referred to in some |
6 | | newspaper of general circulation in the community in which the |
7 | | bank is located at least once each week for 3 successive weeks. |
8 | | Publishing shall be accomplished by, and at the expense of, |
9 | | the bank required to publish. Where publishing is required, |
10 | | the bank shall submit to the Commissioner that evidence of the |
11 | | publication as the Commissioner shall deem appropriate. |
12 | | "Qualified financial contract" means any security |
13 | | contract, commodity contract, forward contract, including spot |
14 | | and forward foreign exchange contracts, repurchase agreement, |
15 | | swap agreement, and any similar agreement, any option to enter |
16 | | into any such agreement, including any combination of the |
17 | | foregoing, and any master agreement for such agreements. A |
18 | | master agreement, together with all supplements thereto, shall |
19 | | be treated as one qualified financial contract. The contract, |
20 | | option, agreement, or combination of contracts, options, or |
21 | | agreements shall be reflected upon the books, accounts, or |
22 | | records of the bank, or a party to the contract shall provide |
23 | | documentary evidence of such agreement. |
24 | | "Recorded" means the filing or recording of the notice or |
25 | | instrument referred to in the office of the Recorder of the |
26 | | county wherein the bank is located. |
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1 | | "Resulting bank" means the bank resulting from a merger or |
2 | | conversion. |
3 | | "Secretary" means the Secretary of Financial and |
4 | | Professional Regulation, or a person authorized by the |
5 | | Secretary or by this Act to act in the Secretary's stead. |
6 | | "Securities" means stocks, bonds, debentures, notes, or |
7 | | other similar obligations. |
8 | | "Special purpose trust company" means a special purpose |
9 | | trust company under Article IIA of the Corporate Fiduciary |
10 | | Act. |
11 | | "Stand-by letter of credit" means a letter of credit under |
12 | | which drafts are payable upon the condition the customer has |
13 | | defaulted in performance of a duty, liability, or obligation. |
14 | | "State bank" means any banking corporation that has a |
15 | | banking charter issued by the Commissioner under this Act. |
16 | | "State Banking Board" means the State Banking Board of |
17 | | Illinois. |
18 | | "Subsidiary" with respect to a specified company means a |
19 | | company that is controlled by the specified company. For |
20 | | purposes of paragraphs (8) and (12) of Section 5 of this Act, |
21 | | "control" means the exercise of operational or managerial |
22 | | control of a corporation by the bank, either alone or together |
23 | | with other affiliates of the bank. |
24 | | "Surplus" means the aggregate of (i) amounts paid in |
25 | | excess of the par value of capital stock and preferred stock; |
26 | | (ii) amounts contributed other than for capital stock and |
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1 | | preferred stock and allocated to the surplus account; and |
2 | | (iii) amounts transferred from undivided profits. |
3 | | "Tier 1 Capital" and "Tier 2 Capital" have the meanings |
4 | | assigned to those terms in regulations promulgated for the |
5 | | appropriate federal banking agency of a state bank, as those |
6 | | regulations are now or hereafter amended. |
7 | | "Trust company" means a limited liability company or |
8 | | corporation incorporated in this State for the purpose of |
9 | | accepting and executing trusts. |
10 | | "Undivided profits" means undistributed earnings less |
11 | | discretionary transfers to surplus. |
12 | | "Unimpaired capital and unimpaired surplus", for the |
13 | | purposes of paragraph (21) of Section 5 and Sections 32, 33, |
14 | | 34, 35.1, 35.2, and 47 of this Act means the sum of the state |
15 | | bank's Tier 1 Capital and Tier 2 Capital plus such other |
16 | | shareholder equity as may be included by regulation of the |
17 | | Commissioner. Unimpaired capital and unimpaired surplus shall |
18 | | be calculated on the basis of the date of the last quarterly |
19 | | call report filed with the Commissioner preceding the date of |
20 | | the transaction for which the calculation is made, provided |
21 | | that: (i) when a material event occurs after the date of the |
22 | | last quarterly call report filed with the Commissioner that |
23 | | reduces or increases the bank's unimpaired capital and |
24 | | unimpaired surplus by 10% or more, then the unimpaired capital |
25 | | and unimpaired surplus shall be calculated from the date of |
26 | | the material event for a transaction conducted after the date |
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1 | | of the material event; and (ii) if the Commissioner determines |
2 | | for safety and soundness reasons that a state bank should |
3 | | calculate unimpaired capital and unimpaired surplus more |
4 | | frequently than provided by this paragraph, the Commissioner |
5 | | may by written notice direct the bank to calculate unimpaired |
6 | | capital and unimpaired surplus at a more frequent interval. In |
7 | | the case of a state bank newly chartered under Section 13 or a |
8 | | state bank resulting from a merger, consolidation, or |
9 | | conversion under Sections 21 through 26 for which no preceding |
10 | | quarterly call report has been filed with the Commissioner, |
11 | | unimpaired capital and unimpaired surplus shall be calculated |
12 | | for the first calendar quarter on the basis of the effective |
13 | | date of the charter, merger, consolidation, or conversion. |
14 | | (Source: P.A. 95-924, eff. 8-26-08; 95-1047, eff. 4-6-09; |
15 | | 96-1000, eff. 7-2-10; 96-1163, eff. 1-1-11.) |
16 | | (205 ILCS 5/30) (from Ch. 17, par. 337) |
17 | | Sec. 30. Conversion; merger with trust company or special |
18 | | purpose trust company . Upon approval by the Commissioner a |
19 | | trust company having power so to do under the law under which |
20 | | it is organized may convert into a state bank or may merge into |
21 | | a state bank as prescribed by this Act; except that the action |
22 | | by a trust company shall be taken in the manner prescribed by |
23 | | and shall be subject to limitations and requirements imposed |
24 | | by the law under which it is organized which law shall also |
25 | | govern the rights of its dissenting stockholders. The rights |
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1 | | of dissenting stockholders of a state bank shall be governed |
2 | | by Section 29 of this Act. The conversion or merger procedure |
3 | | shall be: |
4 | | (1) In the case of a merger, the board of directors of both |
5 | | the merging trust company and the merging bank by a majority of |
6 | | the entire board in each case shall approve a merger agreement |
7 | | which shall contain: |
8 | | (a) The name and location of the merging bank and of |
9 | | the merging trust company and a list of the stockholders |
10 | | of each as of the date of the merger agreement; |
11 | | (b) With respect to the resulting bank (i) its name |
12 | | and place of business; (ii) the amount of capital, surplus |
13 | | and reserve for operating expenses; (iii) the classes and |
14 | | the number of shares of stock and the par value of each |
15 | | share; (iv) the charter which is to be the charter of the |
16 | | resulting bank, together with the amendments to the |
17 | | continuing charter and to the continuing by-laws; and (v) |
18 | | a detailed financial statement showing the assets and |
19 | | liabilities after the proposed merger; |
20 | | (c) Provisions governing the manner of converting the |
21 | | shares of the merging bank and of the merging trust |
22 | | company into shares of the resulting bank; |
23 | | (d) A statement that the merger agreement is subject |
24 | | to approval by the Commissioner and by the stockholders of |
25 | | the merging bank and the merging trust company, and that |
26 | | whether approved or disapproved, the parties thereto will |
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1 | | pay the Commissioner's expenses of examination; |
2 | | (e) Provisions governing the manner of disposing of |
3 | | the shares of the resulting bank not taken by the |
4 | | dissenting stockholders of the merging trust company; and |
5 | | (f) Such other provisions as the Commissioner may |
6 | | reasonably require to enable him to discharge his duties |
7 | | with respect to the merger. |
8 | | (2) After approval by the board of directors of the |
9 | | merging bank and of the merging trust company, the merger |
10 | | agreement shall be submitted to the Commissioner for approval |
11 | | together with the certified copies of the authorizing |
12 | | resolution of each board of directors showing approval by a |
13 | | majority of each board. |
14 | | (3) After receipt by the Commissioner of the papers |
15 | | specified in subsection (2), he shall approve or disapprove |
16 | | the merger agreement. The Commissioner shall not approve the |
17 | | agreement unless he shall be of the opinion and finds: |
18 | | (a) That the resulting bank meets the requirements of |
19 | | this Act for the formation of a new bank at the proposed |
20 | | place of business of the resulting bank; |
21 | | (b) That the same matters exist in respect of the |
22 | | resulting bank which would have been required under |
23 | | Section 10 of this Act for the organization of a new bank; |
24 | | and |
25 | | (c) That the merger agreement is fair to all persons |
26 | | affected. If the Commissioner disapproves the merger |
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1 | | agreement, he shall state his objections in writing and |
2 | | give an opportunity to the merging bank and the merging |
3 | | trust company to obviate such objections. |
4 | | (4) To be effective, if approved by the Commissioner, a |
5 | | merger of a bank and a trust company where there is to be a |
6 | | resulting bank must be approved by the affirmative vote of the |
7 | | holders of at least two-thirds of the outstanding shares of |
8 | | stock of the merging bank entitled to vote at a meeting called |
9 | | to consider such action, unless holders of preferred stock are |
10 | | entitled to vote as a class in respect thereof, in which event |
11 | | the proposed merger shall be adopted upon receiving the |
12 | | affirmative vote of the holders of at least two-thirds of the |
13 | | outstanding shares of each class of shares entitled to vote as |
14 | | a class in respect thereof and of the total outstanding shares |
15 | | entitled to vote at such meeting and must be approved by the |
16 | | stockholders of the merging trust company as provided by the |
17 | | Act under which it is organized. The prescribed vote by the |
18 | | merging bank and the merging trust company shall constitute |
19 | | the adoption of the charter and by-laws of the continuing |
20 | | bank, including the amendments in the merger agreement, as the |
21 | | charter and by-laws of the resulting bank. Written or printed |
22 | | notice of the meeting of the stockholders of the merging bank |
23 | | shall be given to each stockholder of record entitled to vote |
24 | | at such meeting at least thirty days before such meeting and in |
25 | | the manner provided in this Act for the giving of notice of |
26 | | meetings of stockholders. The notice shall state that |
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1 | | dissenting stockholders of the merging trust company will be |
2 | | entitled to payment of the value of those shares which are |
3 | | voted against approval of the merger, if a proper demand is |
4 | | made on the resulting bank and the requirements of the Act |
5 | | under which the merging trust company is organized are |
6 | | satisfied. |
7 | | (5) Unless a later date is specified in the merger |
8 | | agreement, the merger shall become effective upon the filing |
9 | | with the Commissioner of the executed merger agreement, |
10 | | together with copies of the resolutions of the stockholders of |
11 | | the merging bank and the merging trust company approving it, |
12 | | certified by the president or a vice-president or, the cashier |
13 | | and also by the secretary or other officer charged with |
14 | | keeping the records. The charter of the merging trust company |
15 | | shall thereupon automatically terminate. The Commissioner |
16 | | shall thereupon issue to the continuing bank a certificate of |
17 | | merger which shall specify the name of the merging trust |
18 | | company, the name of the continuing bank and the amendments to |
19 | | the charter of the continuing bank provided for by the merger |
20 | | agreement. Such certificate shall be conclusive evidence of |
21 | | the merger and of the correctness of all proceedings therefor |
22 | | in all courts and places including the office of the Secretary |
23 | | of State, and said certificate shall be recorded. |
24 | | (6) In the case of a conversion, a trust company shall |
25 | | apply for a charter by filing with the Commissioner: |
26 | | (a) A certificate signed by its president, or a |
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1 | | vice-president, and by a majority of the entire board of |
2 | | directors setting forth the corporate action taken in |
3 | | compliance with the provisions of the Act under which it |
4 | | is organized governing the conversion of a trust company |
5 | | to a bank or governing the merger of a trust company into |
6 | | another corporation; |
7 | | (b) The plan of conversion and the proposed charter |
8 | | approved by the stockholders for the operation of the |
9 | | trust company as a bank. The plan of conversion shall |
10 | | contain (i) the name and location proposed for the |
11 | | converting trust company; (ii) a list of its stockholders |
12 | | as of the date of the stockholders' approval of the plan of |
13 | | conversion; (iii) the amount of its capital, surplus and |
14 | | reserve for operating expenses; (iv) the classes and the |
15 | | number of shares of stock and the par value of each share; |
16 | | (v) the charter which is to be the charter of the resulting |
17 | | bank; and (vi) a detailed financial statement showing the |
18 | | assets and liabilities of the converting trust company; |
19 | | (c) A statement that the plan of conversion is subject |
20 | | to approval by the Commissioner and that, whether approved |
21 | | or disapproved, the converting trust company will pay the |
22 | | Commissioner's expenses of examination; and |
23 | | (d) Such other instruments as the Commissioner may |
24 | | reasonably require to enable him to discharge his duties |
25 | | with respect to the conversion. |
26 | | (7) After receipt by the Commissioner of the papers |
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1 | | specified in subsection (6), he shall approve or disapprove |
2 | | the plan of conversion. The Commissioner shall not approve the |
3 | | plan of conversion unless he shall be of the opinion and finds: |
4 | | (a) That the resulting bank meets the requirements of |
5 | | this Act for the formation of a new bank at the proposed |
6 | | place of business of the resulting bank; |
7 | | (b) That the same matters exist in respect of the |
8 | | resulting bank which would have been required under |
9 | | Section 10 of this Act for the organization of a new bank; |
10 | | and |
11 | | (c) That the plan of conversion is fair to all persons |
12 | | affected. |
13 | | If the commissioner disapproves the plan of conversion, he |
14 | | shall state his objections in writing and give an opportunity |
15 | | to the converting trust company to obviate such objections. |
16 | | (8) Unless a later date is specified in the plan of |
17 | | conversion, the conversion shall become effective upon the |
18 | | Commissioner's approval, and the charter proposed in the plan |
19 | | of conversion shall constitute the charter of the resulting |
20 | | bank. The Commissioner shall issue a certificate of conversion |
21 | | which shall specify the name of the converting trust company, |
22 | | the name of the resulting bank and the charter provided for by |
23 | | said plan of conversion. Such certificate shall be conclusive |
24 | | evidence of the conversion and of the correctness of all |
25 | | proceedings therefor in all courts and places including the |
26 | | office of the Secretary of State, and such certificate shall |
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1 | | be recorded. |
2 | | (8.5) A special purpose trust company under Article IIA of |
3 | | the Corporate Fiduciary Act may merge with a State bank or |
4 | | convert to a State bank as if the special purpose trust company |
5 | | were a trust company under Article II of the Corporate |
6 | | Fiduciary Act, subject to rules adopted by the Department. |
7 | | (9) In the case of either a merger or a conversion under |
8 | | this Section 30, the resulting bank shall be considered the |
9 | | same business and corporate entity as each merging bank and |
10 | | merging trust company or as the converting trust company with |
11 | | all the property, rights, powers, duties and obligations of |
12 | | each as specified in Section 28 of this Act. |
13 | | (Source: P.A. 91-357, eff. 7-29-99.) |
14 | | Section 900-20. The Corporate Fiduciary Act is amended by |
15 | | changing Sections 1-5.08, 2-1, 4-1, 4-2, 4-5, 4A-15, and 5-1 |
16 | | and by adding Article IIA as follows: |
17 | | (205 ILCS 620/1-5.08) (from Ch. 17, par. 1551-5.08) |
18 | | Sec. 1-5.08. "Foreign corporation" means: |
19 | | (a) any bank, savings and loan association, savings bank, |
20 | | or other corporation , limited liability company, or other |
21 | | entity now or hereafter organized under the laws of any state |
22 | | or territory of the United States of America, including the |
23 | | District of Columbia, other than the State of Illinois; |
24 | | (b) any national banking association having its principal |
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1 | | place of business in any state or territory of the United |
2 | | States of America, including the District of Columbia, other |
3 | | than the State of Illinois; and |
4 | | (c) any federal savings and loan association or federal |
5 | | savings bank having its principal place of business in any |
6 | | state or territory of the United States of America, including |
7 | | the District of Columbia, other than the State of Illinois. |
8 | | (Source: P.A. 91-97, eff. 7-9-99.) |
9 | | (205 ILCS 620/2-1) (from Ch. 17, par. 1552-1) |
10 | | Sec. 2-1. (a) Any corporation which has been or shall be |
11 | | incorporated under the general corporation laws of this State |
12 | | and any limited liability company established under the |
13 | | Limited Liability Company Act for the purpose of accepting and |
14 | | executing trusts, and any state bank, state savings and loan |
15 | | association, state savings bank, or other special corporation |
16 | | now or hereafter authorized by law to accept or execute |
17 | | trusts, may be appointed to act as a fiduciary in any capacity |
18 | | a natural person or corporation may act, and shall include, |
19 | | but not be limited to, acting as assignee or trustee by deed, |
20 | | and executor, guardian or trustee by will, custodian under the |
21 | | Illinois Uniform Transfers to Minors Act and such appointment |
22 | | shall be of like force as in case of appointment of a natural |
23 | | person and shall be designated a corporate fiduciary. |
24 | | (b) No corporate fiduciary shall dissolve or cease its |
25 | | corporate existence without prior notice to and approval by |
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1 | | the Commissioner and compliance with the requirements of |
2 | | Section 7-1 of this Act. |
3 | | (Source: P.A. 100-863, eff. 8-14-18.) |
4 | | (205 ILCS 620/Art. IIA heading new) |
5 | | ARTICLE IIA. SPECIAL PURPOSE TRUST COMPANY |
6 | | AUTHORITY AND ORGANIZATION |
7 | | (205 ILCS 620/2A-1 new) |
8 | | Sec. 2A-1. Purpose. The General Assembly finds that |
9 | | corporate fiduciaries perform a vital service in the custody, |
10 | | safekeeping, and management of physical assets, traditional |
11 | | electronic assets, and emerging digital assets for customers; |
12 | | that it is in the public interest that trust companies may be |
13 | | organized for the special purpose of providing fiduciary |
14 | | custodial services and related services to customers; that the |
15 | | operation of special purpose trust companies is impressed with |
16 | | a public interest such that it should be supervised as an |
17 | | activity under this Act; and that such special purpose trust |
18 | | companies should obtain their authority, conduct their |
19 | | operations, and be supervised as corporate fiduciaries as |
20 | | provided in this Act. |
21 | | (205 ILCS 620/2A-2 new) |
22 | | Sec. 2A-2. Special purpose trust company. Any corporation |
23 | | that has been or shall be incorporated under the general |
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1 | | corporation laws of this State and any limited liability |
2 | | company established under the Limited Liability Company Act |
3 | | for the special purpose of providing fiduciary custodial |
4 | | services or providing other like or related services as |
5 | | specified by rule, consistent with this Article, may be |
6 | | appointed to act as a fiduciary with respect to such services |
7 | | and shall be designated a special purpose trust company. |
8 | | (205 ILCS 620/2A-3 new) |
9 | | Sec. 2A-3. Certificate of authority. |
10 | | (a) It shall be lawful for any person to engage in the |
11 | | activity of a special purpose trust company after the |
12 | | effective date of this amendatory Act of the 103rd General |
13 | | Assembly upon filing an application for and procuring from the |
14 | | Secretary a certificate of authority stating that the person |
15 | | has complied with the requirements of this Act and is |
16 | | qualified to engage in the activity of a special purpose trust |
17 | | company. |
18 | | (b) No natural person or natural persons, firm, |
19 | | partnership, or corporation not having been authorized under |
20 | | this Act shall transact in the activity of a special purpose |
21 | | trust company. A person who violates this Section is guilty of |
22 | | a Class A misdemeanor and the Attorney General or State's |
23 | | Attorney of the county in which the violation occurs may |
24 | | restrain the violation by a complaint for injunctive relief. |
25 | | (c) Any entity that holds a certificate of authority under |
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1 | | Article II of this Act may engage in the activity of a special |
2 | | purpose trust company without applying for or receiving a |
3 | | certificate of authority under this Article IIA. |
4 | | (d) Nothing in this Section shall limit the authority of a |
5 | | depository institution to provide nonfiduciary custodial |
6 | | services consistent with its charter in accordance with |
7 | | applicable law and subject to any limitations and restrictions |
8 | | imposed by its chartering authority. |
9 | | (205 ILCS 620/2A-4 new) |
10 | | Sec. 2A-4. Rulemaking and organization. |
11 | | (a) The Department shall adopt rules for the |
12 | | administration of this Article, including, but not limited to: |
13 | | rules for defining statutory terms; applying for a certificate |
14 | | of authority; review, investigation, and approval of |
15 | | application for certificate of authority; capital |
16 | | requirements; office location and name; collateralizing |
17 | | fiduciary assets; and general corporate powers. The authority |
18 | | of this subsection (a) is in addition to, and in no way limits, |
19 | | the authority of the Secretary under subsection (a) of Section |
20 | | 5-1. |
21 | | (b) Articles III, V, VI, VII, VIII, and IX of this Act |
22 | | shall apply to a special purpose trust company under this |
23 | | Article as if the special purpose trust company were a trust |
24 | | company authorized under Article II of this Act, subject to |
25 | | any rules adopted by the Department. |
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1 | | (205 ILCS 620/4-1) (from Ch. 17, par. 1554-1) |
2 | | Sec. 4-1. Foreign corporate fiduciary; certificate of |
3 | | authority. After July 13, 1953, no foreign corporation, |
4 | | including banks, savings banks, and savings and loan |
5 | | associations, now or hereafter organized under the laws of any |
6 | | other state or territory, and no national banking association |
7 | | having its principal place of business in any other state or |
8 | | territory or federal savings and loan association or federal |
9 | | savings bank having its principal place of business in any |
10 | | other state or territory, may procure a certificate of |
11 | | authority under Article II of this Act and any certificate of |
12 | | authority heretofore issued hereunder to any such foreign |
13 | | corporation or to any such national banking association shall |
14 | | become null and void on July 13, 1953, except that any such |
15 | | foreign corporation or any such national banking association |
16 | | actually acting as trustee, executor, administrator, |
17 | | administrator to collect, guardian, or in any other like |
18 | | fiduciary capacity in this State on July 13, 1953, may |
19 | | continue to act as such fiduciary in that particular trust or |
20 | | estate until such time as it has completed its duties |
21 | | thereunder. Such foreign corporation and such national banking |
22 | | association shall be subject to the provisions in this Article |
23 | | IV, regardless of whether its certificate of authority was |
24 | | obtained before July 13, 1953. The right and eligibility of |
25 | | any foreign corporation, any national banking association |
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1 | | having its principal place of business in any other state or |
2 | | territory or any federal savings and loan association or |
3 | | federal savings bank having its principal place of business in |
4 | | any other state or territory hereafter to act as trustee, |
5 | | executor, administrator, administrator to collect, guardian, |
6 | | or in any other like fiduciary capacity in this State shall be |
7 | | governed solely by the provisions of this Act. Provided, |
8 | | however, that the Commissioner shall not be required to |
9 | | conduct an annual examination of such foreign corporation |
10 | | pursuant to Section 5-2 of this Act, but may examine such |
11 | | foreign corporation as the Commissioner deems appropriate. |
12 | | "Principal place of business" of any bank, federal savings and |
13 | | loan association or savings bank, for purposes of this Article |
14 | | IV, means the principal office as designated on the charter by |
15 | | its principal regulator. |
16 | | (Source: P.A. 91-97, eff. 7-9-99.) |
17 | | (205 ILCS 620/4-2) (from Ch. 17, par. 1554-2) |
18 | | Sec. 4-2. Foreign corporation; eligibility. Any foreign |
19 | | corporation may act in this State as trustee, executor, |
20 | | administrator, administrator to collect, guardian, or in any |
21 | | other like fiduciary capacity, whether the appointment is by |
22 | | will, deed, court order or otherwise, without complying with |
23 | | any laws of this State relating to the qualification of |
24 | | corporations organized under the laws of this State to conduct |
25 | | a trust business or laws relating to the qualification of |
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1 | | foreign corporations, provided only (1) such foreign |
2 | | corporation is authorized by the laws of the state of its |
3 | | organization or domicile to act as a fiduciary in that state, |
4 | | and (2) a corporation organized under the laws of this State, a |
5 | | national banking association having its principal place of |
6 | | business in this State, and a federal savings and loan |
7 | | association or federal savings bank having its principal place |
8 | | of business in this State and authorized to act as a fiduciary |
9 | | in this State, may, in such other state, act in a similar |
10 | | fiduciary capacity or capacities, as the case may be, upon |
11 | | conditions and qualifications which the Commissioner finds are |
12 | | not unduly restrictive when compared to those imposed by the |
13 | | laws of Illinois. Any foreign corporation eligible to act in a |
14 | | fiduciary capacity in this State pursuant to the provisions of |
15 | | this Act, shall be deemed qualified to accept and execute |
16 | | trusts in this State within the meaning of this Act and the |
17 | | Probate Act of 1975, approved August 7, 1975, as amended. No |
18 | | foreign corporation shall be permitted to act as trustee, |
19 | | executor, administrator, administrator to collect, guardian or |
20 | | in any other like fiduciary capacity in this State except as |
21 | | provided in Article IV of this Act; however, any foreign |
22 | | corporation actually acting in any such fiduciary capacity in |
23 | | this State on July 13, 1953, although not eligible to so act |
24 | | pursuant to the provisions of this Article IV, may continue to |
25 | | act as fiduciary in that particular trust or estate until such |
26 | | time as it has completed its duties thereunder. |
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1 | | (Source: P.A. 92-685, eff. 7-16-02.) |
2 | | (205 ILCS 620/4-5) (from Ch. 17, par. 1554-5) |
3 | | Sec. 4-5. Certificate of authority; fees; certificate of |
4 | | reciprocity. |
5 | | (a) Prior to the time any foreign corporation acts in this |
6 | | State as testamentary trustee, trustee appointed by any court, |
7 | | trustee under any written agreement, declaration or instrument |
8 | | of trust, executor, administrator, administrator to collect, |
9 | | guardian or in any other like fiduciary capacity, such foreign |
10 | | corporation shall apply to the Commissioner of Banks and Real |
11 | | Estate for a certificate of authority with reference to the |
12 | | fiduciary capacity or capacities in which such foreign |
13 | | corporation proposes to act in this State, and the |
14 | | Commissioner of Banks and Real Estate shall issue a |
15 | | certificate of authority to such corporation concerning only |
16 | | the fiduciary capacity or such of the fiduciary capacities to |
17 | | which the application pertains and with respect to which he |
18 | | has been furnished satisfactory evidence that such foreign |
19 | | corporation meets the requirements of Section 4-2 of this Act. |
20 | | The certificate of authority shall set forth the fiduciary |
21 | | capacity or capacities, as the case may be, for which the |
22 | | certificate is issued, and shall recite and certify that such |
23 | | foreign corporation is eligible to act in this State in such |
24 | | fiduciary capacity or capacities, as the case may be, pursuant |
25 | | to the provisions of this Act. The certificate of authority |
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1 | | shall remain in full force and effect until such time as such |
2 | | foreign corporation ceases to be eligible so to act under the |
3 | | provisions of this Act. |
4 | | (b) Each foreign corporation making application for a |
5 | | certificate of authority shall pay reasonable fees to the |
6 | | Commissioner of Banks and Real Estate as determined by the |
7 | | Commissioner for the services of his office. |
8 | | (c) Any foreign corporation holding a certificate of |
9 | | reciprocity which recites and certifies that such foreign |
10 | | corporation is eligible to act in this State in any such |
11 | | fiduciary capacity pursuant to the provisions of Article IV of |
12 | | this Act or any predecessor Act upon the same subject, issued |
13 | | prior to the effective date of this amendatory Act of 1987 may |
14 | | act in this State under such certificate of reciprocity in any |
15 | | such fiduciary capacity without applying for a new certificate |
16 | | of authority. Such certificate of reciprocity shall remain in |
17 | | full force and effect until such time as such foreign |
18 | | corporation ceases to be eligible so to act under the |
19 | | provisions of Article IV of this Act. |
20 | | (d) Any foreign corporation acting in Illinois under a |
21 | | certificate of authority or a certificate of reciprocity shall |
22 | | report changes in its name or address to the Commissioner and |
23 | | shall notify the Commissioner when it is no longer serving as a |
24 | | corporate fiduciary in Illinois. |
25 | | (e) The provisions of this Section shall not apply to a |
26 | | foreign corporation establishing or acquiring and maintaining |
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1 | | a place of business in this State to conduct business as a |
2 | | fiduciary in accordance with Article IVA of this Act. |
3 | | (Source: P.A. 92-483, eff. 8-23-01.) |
4 | | (205 ILCS 620/4A-15) |
5 | | Sec. 4A-15. Representative offices. |
6 | | (a) A foreign corporation conducting fiduciary activities |
7 | | outside this State, but not conducting fiduciary activities in |
8 | | this State may establish a representative office under the |
9 | | Foreign Bank Representative Office Act. At these offices, the |
10 | | foreign corporation may market and solicit fiduciary services |
11 | | and provide back office and administrative support to the |
12 | | foreign corporation's fiduciary activities, but it may not |
13 | | engage in fiduciary activities. |
14 | | (b) A foreign corporation invested with trust powers or |
15 | | authority to act as a fiduciary pursuant to the laws of its |
16 | | home state but not conducting fiduciary activities must apply |
17 | | for and procure a license under the Foreign Bank |
18 | | Representative Office Act before establishing an office in |
19 | | this State for the purpose of marketing, soliciting, or |
20 | | transacting any service or product, unless such office is |
21 | | otherwise established as permitted by and in accordance with |
22 | | this Act, the Illinois Banking Act, the Savings Bank Act, the |
23 | | Foreign Banking Office Act, or any Act specified by rules |
24 | | adopted under this Act. |
25 | | (Source: P.A. 92-483, eff. 8-23-01; 92-811, eff. 8-21-02.) |
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1 | | (205 ILCS 620/5-1) (from Ch. 17, par. 1555-1) |
2 | | Sec. 5-1. Commissioner's powers. The Commissioner of Banks |
3 | | and Real Estate shall have the following powers and authority |
4 | | and is charged with the duties and responsibilities designated |
5 | | in this Act: |
6 | | (a) To promulgate, in accordance with the Illinois |
7 | | Administrative Procedure Act, reasonable rules for the purpose |
8 | | of administering the provisions of this Act , for the purpose |
9 | | of protecting consumers of this State as may be necessary and |
10 | | appropriate, and for the purpose of incorporating by reference |
11 | | rules promulgated by the Federal Deposit Insurance |
12 | | Corporation, the Board of Governors of the Federal Reserve |
13 | | System, the Office of the Comptroller of the Currency, the |
14 | | Office of Thrift Supervision, or their successors that pertain |
15 | | to corporate fiduciaries, including, but not limited to, |
16 | | standards for the operation and conduct of the affairs of |
17 | | corporate fiduciaries; |
18 | | (b) To issue orders for the purpose of administering the |
19 | | provisions of this Act and any rule promulgated in accordance |
20 | | with this Act; |
21 | | (c) To appoint hearing officers to conduct hearings held |
22 | | pursuant to any of the powers granted to the Commissioner |
23 | | under this Section for the purpose of administering this Act |
24 | | and any rule promulgated in accordance with this Act; |
25 | | (d) To subpoena witnesses, to compel their attendance, to |
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1 | | administer an oath, to examine any person under oath and to |
2 | | require the production of any relevant books, papers, accounts |
3 | | and documents in the course of and pursuant to any |
4 | | investigation being conducted, or any action being taken, by |
5 | | the Commissioner in respect of any matter relating to the |
6 | | duties imposed upon, or the powers vested in, the Commissioner |
7 | | under the provisions of this Act, or any rule or regulation |
8 | | promulgated in accordance with this Act; |
9 | | (e) To conduct hearings; |
10 | | (f) To promulgate the form and content of any applications |
11 | | required under this Act; |
12 | | (g) To impose civil penalties of up to $100,000 against |
13 | | any person or corporate fiduciary for each violation of any |
14 | | provision of this Act, any rule promulgated in accordance with |
15 | | this Act, any order of the Commissioner or any other action |
16 | | which, in the Commissioner's discretion, is a detriment or |
17 | | impediment to accepting or executing trusts; and |
18 | | (h) To address any inquiries to any corporate fiduciary, |
19 | | or the officers thereof, in relation to its doings and |
20 | | conditions, or any other matter connected with its affairs, |
21 | | and it shall be the duty of any corporate fiduciary or person |
22 | | so addressed, to promptly reply in writing to such inquiries. |
23 | | The Commissioner may also require reports from any corporate |
24 | | fiduciary at any time he may deem desirable. |
25 | | (Source: P.A. 96-1365, eff. 7-28-10.) |
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1 | | Section 900-25. The Consumer Fraud and Deceptive Business |
2 | | Practices Act is amended by adding Section 2EEEE as follows: |
3 | | (815 ILCS 505/2EEEE new) |
4 | | Sec. 2EEEE. Violations of the Digital Assets Regulation |
5 | | Act. Any person who violates Article 105 of the Digital Assets |
6 | | Regulation Act commits an unlawful practice within the meaning |
7 | | of this Act. |
| | |
8 | | Article 999. |
9 | | Section 999-95. No acceleration or delay. Where this Act |
10 | | makes changes in a statute that is represented in this Act by |
11 | | text that is not yet or no longer in effect (for example, a |
12 | | Section represented by multiple versions), the use of that |
13 | | text does not accelerate or delay the taking effect of (i) the |
14 | | changes made by this Act or (ii) provisions derived from any |
15 | | other Public Act. |
16 | | Section 999-99. Effective date. This Act takes effect upon |
17 | | becoming law. |