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.


LRB103 39006 RTM 69143 b

 

 

A BILL FOR

 

SB3666LRB103 39006 RTM 69143 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4
Article 1. General Provisions

 
5    Section 1-1. Short title. This Act may be cited as the
6Digital Assets Regulation Act.
 
7    Section 1-5. Definitions.
8    (a) As used in this Act:
9    "Affiliate" means any person that controls, is controlled
10by, or is under common control with another person. For
11purposes of this definition, "control" means the possession,
12direct or indirect, of the power to direct or cause the
13direction of the management and policies of a person.
14    "Applicant" means a person that applies for registration
15under this Act.
16    "Bank" means a bank, savings banks, savings and loan
17association, savings association, or industrial loan company
18chartered under the laws of this State or any other state or
19under the laws of the United States.
20    "Confidential supervisory information" means information
21or documents obtained by employees, agents, or representatives
22of the Department in the course of any examination,

 

 

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1investigation, audit, visit, registration, certification,
2review, licensing, or any other regulatory or supervisory
3activity pursuant to this Act, and any record prepared or
4obtained by the Department to the extent that the record
5summarizes or contains information derived from any report,
6document, or record described in this Act.
7    "Conflict of interest" means an interest that might
8incline a covered person or an individual who is an associated
9person of a covered person to make a recommendation that is not
10disinterested.
11    "Corporate fiduciary" shall mean a corporate fiduciary as
12defined by Section 1-5.05 of the Corporate Fiduciary Act.
13    "Covered person" means a registrant or person required to
14register pursuant to this Act.
15    "Covered exchange" means a covered person that exchanges
16or holds itself out as being able to exchange a digital asset
17for a resident.
18    "Credit union" means a credit union chartered under the
19laws of this State or any other state or under the laws of the
20United States.
21    "Department" means the Department of Financial and
22Professional Regulation.
23    "Digital asset" means a digital representation of value
24that is used as a medium of exchange, unit of account, or store
25of value, and that is not fiat currency, whether or not
26denominated in fiat currency. "Digital asset" does not include

 

 

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1any 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,
14administering, or issuing a digital asset.
15    "Digital asset business activity" means any of the
16following:
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
24development and dissemination of software in and of itself.
25    "Exchange", when used as a verb, means to exchange, buy,
26sell, trade, or convert, on behalf of a resident, either of the

 

 

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1following:
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
7digital assets for a person's own account in a principal
8capacity.
9    "Executive officer" includes, without limitation, an
10individual who is a director, officer, manager, managing
11member, partner, or trustee, or other functionally equivalent
12responsible individual, of a person.
13    "Federally insured depository institution" shall mean an
14insured depository institution as defined by Section 3(c)(2)
15of the Federal Deposit Insurance Act, 12 U.S.C. 1813(c)(2), as
16amended, or an insured credit union as defined by Section
17101(7) of the Federal Credit Union Act, 12 U.S.C. 1752(7), as
18amended.
19    "Fiat currency" means a medium of exchange or unit of
20value issued by the United States or a foreign government and
21that 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,
4corporation, business trust, estate, trust, partnership,
5proprietorship, syndicate, limited liability company,
6association, joint venture, government, governmental
7subsection, agency or instrumentality, public corporation or
8joint stock company, or any other organization or legal or
9commercial entity.
10    "Prepaid card" means an electronic payment device that,
11subject 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
5company, subject to any rules adopted by the Department.
6    "Record" means information that is inscribed on a tangible
7medium or that is stored in an electronic or other medium and
8is 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,
18account disputes, and requests for documentation a covered
19person receives from residents.
20    "Responsible individual" means an individual who has
21direct control over, or significant management, policy, or
22decision-making authority with respect to, a person's digital
23asset business activity in this State.
24    "Secretary" means the Secretary of Financial and
25Professional Regulation and any authorized representative of
26the Secretary.

 

 

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1    "Service provider" means any person that provides a
2material service to a covered person in connection with the
3offering or provision by that covered person of a digital
4asset business activity in this State, including a person that
5either:
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
15of Columbia, Puerto Rico, the United States Virgin Islands, or
16any territory or insular possession subject to the
17jurisdiction 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
20control of a digital asset on behalf of a resident by a person
21other than the resident.
22    "Transfer" means to transfer or transmit a digital asset
23on behalf of a resident, including by doing any of the
24following:
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
7the equivalent value of a particular digital asset in United
8States dollars shown on a covered exchange regulated in the
9United States for a particular date or period specified in
10this Act, subject to any rules adopted by the Department.
11    (b) Whenever the terms "include", "including" or terms of
12similar import appear in this Act, unless the context requires
13otherwise, such terms shall not be construed to imply the
14exclusion of any person, class, or thing not specifically
15included.
16    (c) A reference in this Act to any other law or statute of
17this State, or of any other jurisdiction, means such law or
18statute as amended to the effective date of this Act, and
19unless the context otherwise requires, as amended thereafter.
 
20    Section 1-10. Applicability.
21    (a) This Act governs the digital asset business activity
22of a person doing business in this State or, wherever located,
23who engages in or holds itself out as engaging in the activity
24with or on behalf of a resident, to the extent not preempted by
25federal 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,
3or storage of a digital asset or to digital asset
4administration 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
24subsection (c) authority to engage in any activity not
25otherwise granted under existing law.
26    (d) The Department may by rule or order clarify whether an

 

 

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1activity is governed under this Act or another Act that
2governs money transmissions. This subsection (d) shall not be
3applied in a manner inconsistent with the protection of
4residents.
5    (e) Notwithstanding any other provision of this Act, the
6Department, by rule or order, may conditionally or
7unconditionally exempt any person, digital asset, or
8transaction, or any class or classes of persons, digital
9assets, or transactions, from any provision of this Act or of
10any rule thereunder, to the extent that the exemption is
11necessary or appropriate, in the public interest, and
12consistent with the protection of residents.
 
13    Section 1-15. General powers and duties.
14    (a) The Department shall regulate digital asset business
15activity in this State, unless it is exempt pursuant to
16Section 101-10. To the extent permissible under federal law,
17the Department shall exercise nonexclusive oversight and
18enforcement under any federal law applicable to digital asset
19business activity.
20    (b) The functions, powers, and duties conferred upon the
21Department by this Act are cumulative to any other functions,
22powers, and duties conferred upon the Department by other laws
23applicable to digital asset business activity.
24    (c) The Department shall have the following functions,
25powers, and duties in carrying out its responsibilities under

 

 

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1this Act and any other law applicable to digital asset
2business 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
12pursuant to this Act or any other law applicable to digital
13asset business activity with law enforcement officials or
14other regulatory agencies.
 
15    Section 1-20. Funds.
16    (a) All moneys collected or received by the Department
17under this Act shall be deposited into the Consumer Protection
18Fund, which is hereby created as a special fund in the State
19treasury. The amounts deposited into the Consumer Protection
20Fund shall be used for the ordinary and contingent expenses of
21the Department in administering this Act and other financial
22laws; nothing in this Act shall prevent the continuation of
23the practice of paying expenses involving salaries,
24retirement, social security, and State-paid insurance of State
25officers and employees by appropriation from the General

 

 

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1Revenue Fund or any other fund. Moneys deposited into the
2Consumer Protection Fund may be transferred to the Professions
3Indirect Cost Fund or any other Department fund.
4    (b) The expenses of administering this Act, including
5investigations and examinations provided for in this Act,
6shall be borne by and assessed against persons regulated by
7this Act. The Department may establish fees by rule, including
8in 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
16covered persons, which shall be nonrefundable unless otherwise
17indicated, for the expenses of administering this Act as
18follows:
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
6a resident, a covered person shall provide to a resident the
7customer disclosures required by subsection (b) and any
8additional disclosures the Department by rule determines to be
9necessary and appropriate for the protection of residents. The
10Department may determine by rule the time and form required
11for disclosures. A disclosure required by this Section shall
12be made separately from any other information provided by the
13covered person and in a clear and conspicuous manner in a
14record the resident may keep.
15    (b) Before engaging in digital asset business activity
16with a resident, a covered person shall disclose, to the
17extent applicable to the digital asset business activity the
18covered person will undertake with the resident, subject to
19any rule or order issued by the Department, all of the
20following:
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
8conclusion of a digital asset transaction with, or on behalf
9of, a resident, a covered person shall provide the resident a
10confirmation 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
20daily confirmation in the initial disclosure under subsection
21(c), the covered person may elect to provide a single, daily
22confirmation for all transactions with or on behalf of a
23resident on that day instead of a per transaction
24confirmation.
 
25    Section 5-10. Custody and protection of customer assets.

 

 

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1    (a) A covered person that stores, holds, or maintains
2custody or control of a digital asset for one or more persons
3shall:
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
14property interests of the persons in the digital asset are pro
15rata property interests in the type of digital asset to which
16the persons are entitled without regard to the time the
17persons became entitled to the digital asset or the covered
18person 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
26commingled with other assets of the covered person, are held

 

 

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1in trust for the benefit of the persons entitled to the digital
2assets under subsection (a), in the event of insolvency, the
3filing of a petition by or against the covered person under the
4United States Bankruptcy Code (11 U.S.C. 101 et seq.) for
5bankruptcy or reorganization, the filing of a petition by or
6against the covered person for receivership, the commencement
7of any other judicial or administrative proceeding for its
8dissolution or reorganization, or an action by a creditor
9against the covered person who is not a beneficiary of this
10statutory trust. No digital asset impressed with a trust
11pursuant to this subsection shall be subject to attachment,
12levy of execution, or sequestration by order of any court,
13except for a beneficiary of this statutory trust.
14    (e) The Department may adopt rules applicable to covered
15persons related to additional protections of customer assets,
16including, 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
12subsection, a covered exchange, before listing or offering a
13digital asset that the covered exchange can exchange on behalf
14of a resident, shall certify on a form provided by the
15Department 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
14required for any digital asset approved for listing on or
15before the effective date of this Act by the New York
16Department of Financial Services pursuant to Part 200 of Title
1723 of the New York Code of Rules and Regulations, if the
18covered exchange provides notification to the Department on a
19form provided by the Department.
20    (3) After a finding that a covered exchange has listed or
21offered a digital asset without appropriate certification or
22after a finding that misrepresentations were made in the
23certification process, the Department may require the covered
24exchange to cease listing or offering the digital asset and
25may take an enforcement action under Section 120-50 of this
26Act.

 

 

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1    (b)(1) A covered exchange shall make every effort to
2execute a resident's request to exchange a digital asset that
3the covered exchange receives fully and promptly.
4    (2)(A) A covered exchange shall use reasonable diligence
5to ensure that the outcome to the resident is as favorable as
6possible under prevailing market conditions. Compliance with
7this paragraph shall be determined by factors, including, but
8not 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
18review aggregated trading records of residents against
19benchmarks to determine execution quality, investigate the
20causes of any variance, and promptly take action to remedy
21issues identified in that review.
22    (3) In a transaction for or with a resident, the covered
23exchange shall not interject a third party between the covered
24exchange and the best market for the digital asset in a manner
25inconsistent with this subsection.
26    (4) If a covered exchange cannot execute directly with a

 

 

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1market and employs other means in order to ensure an execution
2advantageous to the resident, the burden of showing the
3acceptable circumstances for doing so is on the covered
4exchange.
 
5    Section 5-20. Customer service; requests for assistance.
6    (a) A covered person shall prominently display on its
7internet website a toll-free telephone number through which a
8resident can contact the covered person for requests for
9assistance and receive live customer assistance, subject to
10any rules adopted by the Department.
11    (b) A covered person shall implement reasonable policies
12and procedures for accepting, processing, investigating, and
13responding to requests for assistance in a timely and
14effective manner. Such policies and procedures shall include
15all 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
5from registration under this Act, no person engaged in or
6offering to engage in any act or service for which a
7registration under this Act is required may bring or maintain
8any action in any court to collect compensation for the
9performance of the registrable services without alleging and
10proving that he or she was the holder of a valid registration
11under this Act at all times during the performance of those
12services.
 
13
Article 10. Compliance

 
14    Section 10-5. General requirements.
15    (a) Each registrant is required to comply with the
16provisions of this Act, any lawful order, rule, or regulation
17made or issued under the provisions of this Act, and all
18applicable federal and State laws, rules, and regulations.
19    (b) Each registrant shall designate a qualified individual
20or individuals responsible for coordinating and monitoring
21compliance with subsection (a).
22    (c) Each registrant shall maintain, implement, update, and
23enforce written compliance policies and procedures, in

 

 

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1accordance with Section 110-10 and subject to any rules
2adopted by the Department, which policies and procedures must
3be reviewed and approved by the registrant's board of
4directors 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
7create and a registrant, during registration, shall maintain,
8implement, update, and enforce, written compliance policies
9and 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
13maintained in a record and designed to be adequate for a
14registrant's contemplated digital asset business activity with
15or on behalf of residents, considering the circumstances of
16all participants and the safe operation of the activity. Any
17policy and implementing procedure shall be compatible with
18other policies and the procedures implementing them and not
19conflict with policies or procedures applicable to the
20registrant under other State law.
21    (c) A registrant's anti-fraud program shall include, at a
22minimum, 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
7the financing of terrorism program shall include, at a
8minimum, 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
22include, at a minimum, reasonable and appropriate
23administrative, physical, and technical safeguards to protect
24the confidentiality, integrity, and availability of any
25nonpublic information or digital asset it receives, maintains,
26or transmits.

 

 

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1    (f)(1) A registrant's cybersecurity program shall include,
2at 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
26Department may adopt rules to define terms used in this

 

 

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1subsection and to establish specific requirements for the
2required cybersecurity program, including, but not limited to,
3rules 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
22the Department a copy of any report it makes to a federal or
23state authority.
24    (h) After the policies and procedures required under this
25Article are created and approved by the registrant, the
26registrant shall engage a qualified individual or individuals

 

 

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1with adequate authority and experience to monitor and
2implement each policy and procedure, publicize it as
3appropriate, recommend changes as necessary, and enforce it.
 
4
Article 15. Registration

 
5    Section 15-5. Registration required. A person shall not
6engage in digital asset business activity, or hold itself out
7as being able to engage in digital asset business activity,
8with or on behalf of a resident unless the person is registered
9in this State by the Department under this Article, or the
10person 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
13meet 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
2Department 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
13may investigate the business premises of an applicant or an
14affiliate of the applicant or require the submission of any
15other documents or information the Department deems relevant
16to the application.
17    (3) The investigation required by this subsection must
18allow the Secretary to issue positive findings stating that
19the financial condition, financial responsibility, competence,
20experience, character, and general fitness of the applicant,
21each executive officer and director, each responsible
22individual, any person that has control of the applicant, and
23any affiliate of the applicant are such as to command the
24confidence of the community and to warrant belief that the
25business will be operated honestly, fairly, and efficiently
26within the purpose of this Act; if the Secretary does not so

 

 

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1find, he or she shall not issue the registration, and he or she
2shall notify the applicant of the denial.
3    (c)(1) After completing the investigation required by
4subsection (b), the Department shall send the applicant notice
5of its decision to approve, conditionally approve, or deny the
6application. If the Department does not receive notice from
7the applicant that the applicant accepts conditions specified
8by the Department within 31 days following the Department's
9notice of the conditions, the application shall be deemed
10withdrawn.
11    (2) The Secretary may impose conditions on a registration
12if the Secretary determines that those conditions are
13necessary or appropriate. These conditions shall be imposed in
14writing and shall continue in effect for the period prescribed
15by the Secretary.
16    (d) A registration issued pursuant to this Act shall take
17effect 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
22subsection (a), an applicant shall pay the costs of the
23Department's investigation under subsection (b).
24    (f) A registration issued pursuant to this Act shall
25remain in full force and effect until it expires without
26renewal, is surrendered by the registration, or revoked or

 

 

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1suspended as hereinafter provided.
2    (g)(1) The Department may issue a conditional registration
3to an applicant who holds or maintains a registration to
4conduct virtual currency business activity in the State of New
5York pursuant to Part 200 of Title 23 of the New York Code of
6Rules and Regulations, or a charter as a New York State limited
7purpose trust company with approval to conduct virtual
8currency business under the New York Banking Law, if the
9registration or approval was issued no later than the
10effective date of this Act and the applicant pays all
11appropriate fees and complies with the requirements of this
12Act.
13    (2) A conditional registration issued pursuant to this
14subsection 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
25using a common renewal period as established by the Department

 

 

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1by rule. A registrant may apply for renewal of the
2registration by submitting a renewal application under
3subsection (b) and paying all applicable fees due to the
4Department.
5    (b) The renewal application required by subsection (a)
6shall be submitted in a form and medium prescribed by the
7Department. The application shall contain all of the
8following:
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
19Section, the Department may take enforcement actions provided
20under Section 20-50. Notice or hearing is not required for a
21suspension or revocation of a registration under this Act for
22failure to pay a renewal fee, file a renewal application, or
23otherwise comply with this Section.
24    (d) Suspension or revocation of a registration under this
25Section does not invalidate a transfer or exchange of digital
26assets for or on behalf of a resident made during the

 

 

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1suspension or revocation and does not insulate the registrant
2from liability under this Act.
3    (e) For good cause, the Department, in its sole
4discretion, may extend a period under this Section.
5    (f) A registrant that does not comply with this Section
6shall cease digital asset business activities with or on
7behalf of a resident. A registrant ceasing an activity or
8activities regulated by this Act and desiring to no longer be
9registered shall so inform the Department in writing and, at
10the same time, convey any registration issued and all other
11symbols or indicia of registration. The registrant shall
12include a plan for the withdrawal from regulated business,
13including a timetable for the disposition of the business, and
14comply with the surrender guidelines or requirements of the
15Department.
 
16    Section 15-20. Nontransferable registration. A
17registration under this Act is not transferable or assignable.
 
18
Article 20. Supervision

 
19    Section 20-5. Surety bond; capital and liquidity
20requirements.
21    (a)(1)(A) A registrant shall maintain a surety bond or
22trust account in United States dollars in a form and amount as
23determined by the Department for the protection of residents

 

 

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1that engage in digital asset business activity with the
2registrant.
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
26liquidity, each in an amount and form as the Department

 

 

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1determines is sufficient to ensure the financial integrity of
2the registrant and its ongoing operations based on an
3assessment of the specific risks applicable to the registrant.
4In determining the minimum amount of capital and liquidity
5that shall be maintained by a registrant, the Department may
6consider factors, including, but not limited to, all of the
7following:
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
2maintained in accordance with this Section in the form of cash
3or high-quality liquid assets, as defined by the Department
4and in proportions determined by the Department.
5    (d) The Department may require a registrant to increase
6the capital or liquidity required under this Section. A
7registrant shall submit evidence satisfactory to the
8Department that it has additional capital or liquidity
9required pursuant to this subsection not later than 15 days
10after the registrant receives notice in a record of the
11required increase.
 
12    Section 20-10. Examination.
13    (a)(1)(A) The Department may, at any time and from time to
14time, examine the business and any office, within or outside
15this State, of any covered person, or any agent of a covered
16person, in order to ascertain (i) the financial condition of
17the covered person, (ii) the safety and soundness of the
18conduct of its business, (iii) the policies of its management,
19(iv) whether the business is being conducted in a lawful
20manner, (v) whether all digital asset business activity is
21properly accounted for, and (vi) such other matters as the
22Department may determine, including, but not limited to, any
23activities of the covered person outside the State if in the
24Department's judgment such activities may affect the covered
25person'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
18examination under this Section.
 
19    Section 20-15. Books and records.
20    (a) A registrant shall maintain, for all digital asset
21business activity with or on behalf of a resident for 5 years
22after the date of the activity, a record of all of the
23following:
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
8subsection (a) in a form that enables the Department to
9determine whether the registrant is in compliance with this
10Act, any court order, and the laws of this State.
11    (c) If a registrant maintains records outside this State
12that pertain to transactions with or on behalf of a resident,
13the registrant shall make the records available to the
14Department not later than 3 days after request, or, on a
15determination of good cause by the Department, in its sole
16discretion, at a later time.
17    (d) All records maintained by a registrant, any affiliate,
18or any service provider are subject to inspection by the
19Department.
 
20    Section 20-20. Regulatory cooperation. The Department may
21cooperate, coordinate, jointly examine, consult, and share
22records and other information with the appropriate regulatory
23agency of another state, a self-regulatory organization,
24federal or state regulator of banking or non-depository
25institutions, or a regulator of a jurisdiction outside the

 

 

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1United States, concerning the affairs and conduct of a covered
2person, 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
5of 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
16later 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
20control" means the person that would control a registrant
21after a proposed transaction that would result in a change in
22control of the registrant.
23    (b) The following rules apply in determining whether a
24person 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,
19the proposed person to be in control shall submit to the
20Department 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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1the 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,
18shall approve, approve with conditions, or deny an application
19for a change in control of a registrant. The Department, in a
20record, shall send notice of its decision to the registrant
21and the person that would be in control if the Department had
22approved the change in control. If the Department denies the
23application, the registrant shall abandon the proposed change
24in control or cease digital asset business activity with or on
25behalf of residents.
26    (f) If the Department applies a condition to approval of a

 

 

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1change in control of a registrant, and the Department does not
2receive notice of the applicant's acceptance of the condition
3specified by the Department not later than 31 days after the
4Department sends notice of the condition, the application is
5deemed denied. If the application is deemed denied, the
6registrant shall abandon the proposed change in control or
7cease digital asset business activity with or on behalf of
8residents.
9    (g) The Department may revoke or modify a determination
10under subsection (d), after notice and opportunity to be
11heard, if, in its judgment, revocation or modification is
12consistent with this Act.
13    (h) If a change in control of a registrant requires
14approval of another regulatory agency, and the action of the
15other agency conflicts with that of the Department, the
16Department shall confer with the other agency. If the proposed
17change in control cannot be completed because the conflict
18cannot be resolved, the registrant shall abandon the change in
19control or cease digital asset business activity with or on
20behalf of residents.
 
21    Section 20-35. Mergers.
22    (a) Before a proposed merger or consolidation of a
23registrant with another person, the registrant shall submit
24all 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
9control of a registrant, the registrant shall comply with
10Section 120-30 and this Section.
11    (c) The Department, in accordance with Section 115-10,
12shall approve, conditionally approve, or deny an application
13for approval of a merger or consolidation of a registrant. The
14Department, in a record, shall send notice of its decision to
15the registrant and the person that would be the surviving
16entity. If the Department denies the application, the
17registrant shall abandon the merger or consolidation or cease
18digital asset business activity with or on behalf of
19residents.
20    (d) The Department may revoke or modify a determination
21under paragraph (c), after notice and opportunity to be heard,
22if, in its judgment, revocation or modification is consistent
23with this Act.
24    (e) A plan of merger or consolidation of a registrant with
25another 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
8another person requires approval of another regulatory agency,
9and the action of the other agency conflicts with that of the
10Department, the Department shall confer with the other agency.
11If the proposed merger or consolidation cannot be completed
12because the conflict cannot be resolved, the registrant shall
13abandon the merger or consolidation or cease digital asset
14business activity with or on behalf of residents.
15    (g) The Department may condition approval of an
16application under subsection (a). If the Department does not
17receive notice from the parties that the parties accept the
18Department's condition not later than 31 days after the
19Department sends notice in a record of the condition, the
20application is deemed denied. If the application is deemed
21denied, the registrant shall abandon the merger or
22consolidation or cease digital asset business activity with,
23or on behalf of, residents.
24    (h) If a registrant acquires substantially all of the
25assets of a person, whether or not the person's registration
26was approved by the Department, the transaction is subject to

 

 

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1this Section.
 
2    Section 20-40. Investigation of complaints. The Secretary
3shall be authorized at all times to maintain staff and
4facilities adequate to receive, record, and investigate
5complaints and inquiries made by any person concerning this
6Act and any covered persons, affiliates, and service providers
7under this Act. Each such person shall open their books,
8records, documents, and offices wherever situated to the
9Secretary or his or her appointees as needed to facilitate
10such investigations.
 
11    Section 20-45. Additional investigation and examination
12authority. In addition to any authority allowed under this Act
13or other applicable law, the Secretary shall have the
14authority to conduct investigations and examinations as
15follows:
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
2action 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
3person regarding an enforcement action.
4    (c) This Section does not provide a private right of
5action to a resident, provided this Section does not preclude
6an action by a resident to enforce rights under Article 5 or
7subsection (a) of Section 120-5.
 
8    Section 20-55. Violations.
9    (a) The Department may take an enforcement action against
10a covered person or any person otherwise subject to this Act in
11any 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,
12investigation, or review of reports submitted by a registrant,
13that the business and affairs of a registrant are not being
14conducted in accordance with this Act, the Secretary may
15notify the registrant of the correction necessary. If a
16registrant fails to correct such violations, the Secretary may
17issue an order requiring immediate correction and compliance
18with this Act and may specify a reasonable date for
19performance.
 
20    Section 20-60. Hearings.
21    (a) Except as provided in subsection (b), the Department
22may take an enforcement action only after notice and
23opportunity for a hearing as appropriate in the circumstances.
24All hearings provided for in this Act shall be conducted in
25accordance with Title 38, Part 100 of the Illinois

 

 

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1Administrative Code, and the Secretary shall have all the
2powers granted therein.
3    (b)(1)(A) The Department may take an enforcement action,
4other than the imposition of a civil penalty under Section
5120-70, without notice if the circumstances require action
6before 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
25Administrative Procedure Act, adopt rules to provide for

 

 

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1review within the Department of the Secretary's decisions
2affecting the rights of persons or entities under this Act.
3The 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
10under this Act, all amendments and modifications of final
11administrative decisions, and any rules adopted by the
12Department pursuant to this Act shall be subject to judicial
13review pursuant to the provisions of the Administrative Review
14Law.
 
15    Section 20-70. Civil penalties.
16    (a) If a person other than a registrant has engaged, is
17engaging, or is about to engage in digital asset business
18activity with or on behalf of a resident in violation of this
19Act, the Department may assess a civil penalty against the
20person in an amount not to exceed $100,000 for each day the
21person is in violation of this Act.
22    (b) If a person violates a provision of this Act, the
23Department may assess a civil penalty in an amount not to
24exceed $25,000 for each day of violation or for each act or
25omission in violation, except that a fine may be imposed not to

 

 

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1exceed $75,000 for each day of violation or for each act or
2omission in violation related to fraud, misrepresentation,
3deceit, or negligence.
4    (c) A civil penalty under this Section continues to accrue
5until the date the violation ceases.
6    (d) A civil penalty under this Section is cumulative to
7any civil penalties enforceable by the Department under any
8other law.
 
9    Section 20-75. Subpoena power.
10    (a) The Secretary shall have the power to issue and to
11serve subpoenas and subpoenas duces tecum to compel the
12attendance of witnesses and the production of all books,
13accounts, records, and other documents and materials relevant
14to an examination or investigation. The Secretary, or his or
15her duly authorized representative, shall have power to
16administer oaths and affirmations to any person.
17    (b) In the event of noncompliance with a subpoena or
18subpoena duces tecum issued or caused to be issued by the
19Secretary, the Secretary may, through the Attorney General or
20the State's Attorney of the county in which the person
21subpoenaed resides or has its principal place of business,
22petition the circuit court of the county for an order
23requiring the subpoenaed person to appear and testify and to
24produce such books, accounts, records, and other documents as
25are specified in the subpoena duces tecum. The court may grant

 

 

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1injunctive relief restraining the person from advertising,
2promoting, soliciting, entering into, offering to enter into,
3continuing, or completing any digital asset business activity.
4The court may grant other relief, including, but not limited
5to, the restraint, by injunction or appointment of a receiver,
6of any transfer, pledge, assignment, or other disposition of
7the person's assets or any concealment, alteration,
8destruction, or other disposition of books, accounts, records,
9or other documents and materials as the court deems
10appropriate, until the person has fully complied with the
11subpoena or subpoena duces tecum and the Secretary has
12completed an investigation or examination.
13    (c) If it appears to the Secretary that the compliance
14with a subpoena or subpoena duces tecum issued or caused to be
15issued by the Secretary pursuant to this Section is essential
16to an investigation or examination, the Secretary, in addition
17to the other remedies provided for in this Act, may, through
18the Attorney General or the State's Attorney of the county in
19which the subpoenaed person resides or has its principal place
20of business, apply for relief to the circuit court of the
21county. The court shall thereupon direct the issuance of an
22order against the subpoenaed person requiring sufficient bond
23conditioned on compliance with the subpoena or subpoena duces
24tecum. The court shall cause to be endorsed on the order a
25suitable amount of bond or payment pursuant to which the
26person named in the order shall be freed, having a due regard

 

 

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1to the nature of the case.
2    (d) In addition, the Secretary may, through the Attorney
3General or the State's Attorney of the applicable county, seek
4a writ of attachment or an equivalent order from the circuit
5court having jurisdiction over the person who has refused to
6obey a subpoena, who has refused to give testimony, or who has
7refused to produce the matters described in the subpoena duces
8tecum.
 
9    Section 20-80. Civil actions.
10    (a) The Department may bring a civil action in accordance
11with 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
22Article 105 as an unlawful practice under the Consumer Fraud
23and Deceptive Business Practices Act.
24    (c) A claim of violation of Article 5 may be asserted in a
25civil action. Additionally, a prevailing resident may be
26awarded 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
4made a matter of public record, not be subject to disclosure
5under the Freedom of Information Act, and shall only be
6subject to disclosure pursuant to subpoena or court order as
7provided in subsection (e).
8    (b) All records of communications or summaries of
9communications between employees, agents, or representatives
10of the Department and employees, agents, or representatives of
11other governmental agencies, a provider of any multistate
12licensing system, or associations or organizations
13representing federal, state, or local law enforcement or
14regulatory agencies or providers of any multistate licensing
15system, pursuant to any regulatory or supervision activity
16under this Act (1) shall not be subject to disclosure under the
17Freedom of Information Act, and (2) to the extent the records
18contain confidential supervisory information, shall only be
19subject to disclosure pursuant to subpoena or court order as
20provided in subsection (e).
21    (c) All confidential supervisory information received from
22other governmental agencies, a multistate licensing system
23provider, or associations or organizations consisting of
24employees, agents, or representatives of such agencies or

 

 

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1providers, shall not be subject to disclosure under the
2Freedom of Information Act, and only subject to disclosure
3pursuant to subpoena or court order as provided in subsection
4(e).
5    (d) The sharing of any confidential supervisory
6information under this Act with governmental agencies,
7providers of any multistate licensing system, or associations
8or organizations consisting of employees, agents, or
9representatives of such federal, state, or local law
10enforcement or regulatory agencies, shall not result in the
11loss of privilege arising under federal or state law, or the
12loss of confidentiality protections provided by federal law or
13state law, and are only subject to disclosure pursuant to
14subpoena or court order as provided in subsection (e).
15    (e) Confidential supervisory information may not be
16disclosed to anyone other than the regulated person, law
17enforcement officials or other regulatory agencies that have
18an appropriate regulatory interest as determined by the
19Secretary, or to a party presenting a lawful subpoena, order,
20or other judicial or administrative process to the Secretary.
21The Secretary may immediately appeal to the court of
22jurisdiction the disclosure of such confidential supervisory
23information and seek a stay of the subpoena pending the
24outcome of the appeal. Reports required of regulated persons
25by the Secretary under this Act and results of examinations
26performed by the Secretary under this Act shall be the

 

 

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1property of only the Secretary but may be shared with the
2regulated person. Access under this Act to the books and
3records of each regulated person shall be limited to the
4Secretary and his agents as provided in this Act and to the
5regulated person and its authorized agents and designees. No
6other person shall have access to the books and records of a
7regulated person under this Act. Any person upon whom a demand
8for production of confidential supervisory information is
9made, whether by subpoena, order, or other judicial or
10administrative process, must withhold production of the
11confidential supervisory information and must notify the
12Secretary of the demand, at which time the Secretary is
13authorized to intervene for the purpose of enforcing the
14limitations of this Section or seeking the withdrawal or
15termination of the attempt to compel production of the
16confidential supervisory information. The Secretary may impose
17any conditions and limitations on the disclosure of
18confidential supervisory information that are necessary to
19protect the confidentiality of such information. Except as
20authorized by the Secretary, no person obtaining access to
21confidential supervisory information may make a copy of the
22confidential supervisory information. The Secretary may
23condition a decision to disclose confidential supervisory
24information on entry of a protective order by the court or
25administrative tribunal presiding in the particular case or on
26a written agreement of confidentiality. In a case in which a

 

 

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1protective order or agreement has already been entered between
2parties other than the Secretary, the Secretary may
3nevertheless condition approval for release of confidential
4supervisory information upon the inclusion of additional or
5amended provisions in the protective order. The Secretary may
6authorize a party who obtained the records for use in one case
7to provide them to another party in another case, subject to
8any conditions that the Secretary may impose on either or both
9parties. The requester shall promptly notify other parties to
10a case of the release of confidential supervisory information
11obtained and, upon entry of a protective order, shall provide
12copies of confidential supervisory information to the other
13parties.
14    (f) The Secretary is authorized to enter agreements or
15sharing arrangements with other governmental agencies,
16providers of any multistate licensing system, or associations
17or organizations representing governmental agencies or
18providers of any multistate licensing system. Notwithstanding
19the foregoing, the provisions of this Section shall apply
20regardless of the existence of any such agreement or sharing
21arrangement.
22    (g) This Section in no way limits any right, privilege, or
23authority that the Department has pursuant to any other
24applicable law. This Section does not in any way limit any
25privilege arising under federal or state law or other
26exemption from disclosure pursuant to the Freedom of

 

 

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1Information Act.
2    (h) Notwithstanding the foregoing, whenever the Secretary
3determines, in his or her sole discretion, that it is in the
4public's interest, he or she may publicly disclose information
5or documents obtained under this Act, unless otherwise
6prohibited by law.
 
7    Section 30-10. Additional rulemaking authority.
8    (a) In addition to such powers and rulemaking authority as
9may be prescribed elsewhere in this Act or other financial
10laws administered by the Department, the Department is hereby
11authorized and empowered to adopt rules consistent with the
12purposes 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
4make specific rulings, demands, and findings that he or she
5deems necessary for the proper conduct of the registrants and
6affiliates thereof.
 
7
Article 135. Miscellaneous Provisions

 
8    Section 35-5. No evasion.
9    (a) It shall be unlawful to engage in any device, 4
10subterfuge, or pretense to willfully evade or attempt to evade
11the requirements of this Act or any rule or order issued by the
126 Department hereunder.
13    (b) Any financial product, service, or transaction that is
14willfully structured to evade or attempt to evade the
15definitions of digital asset or digital asset business
16activity is a digital asset or digital asset business
17activity, respectively, for purposes of this Act.
 
18    Section 35-10. Construction; severability.
19    (a) The provisions of this Act shall be liberally
20construed to effectuate its purposes.
21    (b) The provisions of this Act are severable under Section
221.31 of the Statute on Statutes.
23    (c) To the extent that any provision of this Act is

 

 

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1preempted by federal law, the provision shall not apply and
2shall not be enforced solely as to the extent of the preemption
3and not as to other circumstances, persons, or applications.
4    Section 35-15. Transition period.
5    (a) A covered person engaging in digital asset business
6activity without a registration under this Act shall not be
7considered in violation of Section 15-5 or 5-25 until July 1,
82026.
9    (b) A covered person engaging in digital asset business
10activity shall not be considered in violation of Sections 5-5,
115-10, and 5-20 until January 1, 2026.
12    (c) A covered exchange shall not be considered in
13violation of Section 5-15 until January 1, 2026.
14    (d) Notwithstanding the foregoing, the Department may
15adopt rules pursuant to this Act upon this Act becoming law
16with such rules not to take effect earlier than January 1,
172025.
 
18
Article 900. Amendatory provisions

 
19    Section 900-5. The Freedom of Information Act is amended
20by 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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1by the statutes referenced below, the following shall be
2exempt 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

 

 

SB3666- 84 -LRB103 39006 RTM 69143 b

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

 

 

SB3666- 85 -LRB103 39006 RTM 69143 b

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

 

 

SB3666- 86 -LRB103 39006 RTM 69143 b

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

 

 

SB3666- 87 -LRB103 39006 RTM 69143 b

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

 

 

SB3666- 90 -LRB103 39006 RTM 69143 b

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;
19102-292, eff. 1-1-22; 102-520, eff. 8-20-21; 102-559, eff.
208-20-21; 102-813, eff. 5-13-22; 102-946, eff. 7-1-22;
21102-1042, eff. 6-3-22; 102-1116, eff. 1-10-23; 103-8, eff.
226-7-23; 103-34, eff. 6-9-23; 103-142, eff. 1-1-24; 103-372,
23eff. 1-1-24; 103-508, eff. 8-4-23; 103-580, eff. 12-8-23;
24revised 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
2by the statutes referenced below, the following shall be
3exempt 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.

 

 

SB3666- 92 -LRB103 39006 RTM 69143 b

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

 

 

SB3666- 93 -LRB103 39006 RTM 69143 b

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.

 

 

SB3666- 94 -LRB103 39006 RTM 69143 b

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

 

 

SB3666- 95 -LRB103 39006 RTM 69143 b

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

 

 

SB3666- 96 -LRB103 39006 RTM 69143 b

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

 

 

SB3666- 97 -LRB103 39006 RTM 69143 b

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.

 

 

SB3666- 98 -LRB103 39006 RTM 69143 b

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,

 

 

SB3666- 99 -LRB103 39006 RTM 69143 b

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;
21102-292, eff. 1-1-22; 102-520, eff. 8-20-21; 102-559, eff.
228-20-21; 102-813, eff. 5-13-22; 102-946, eff. 7-1-22;
23102-1042, eff. 6-3-22; 102-1116, eff. 1-10-23; 103-8, eff.
246-7-23; 103-34, eff. 6-9-23; 103-142, eff. 1-1-24; 103-372,
25eff. 1-1-24; 103-472, eff. 8-1-24; 103-508, eff. 8-4-23;
26103-580, eff. 12-8-23; revised 1-2-24.)
 

 

 

SB3666- 100 -LRB103 39006 RTM 69143 b

1    Section 900-10. The State Finance Act is amended by adding
2Section 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
6changing 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
9context otherwise requires, the following words and phrases
10shall have the following meanings:
11    "Accommodation party" shall have the meaning ascribed to
12that term in Section 3-419 of the Uniform Commercial Code.
13    "Action" in the sense of a judicial proceeding includes
14recoupments, counterclaims, set-off, and any other proceeding
15in which rights are determined.
16    "Affiliate facility" of a bank means a main banking
17premises or branch of another commonly owned bank. The main
18banking premises or any branch of a bank may be an "affiliate
19facility" with respect to one or more other commonly owned
20banks.
21    "Appropriate federal banking agency" means the Federal
22Deposit Insurance Corporation, the Federal Reserve Bank of

 

 

SB3666- 101 -LRB103 39006 RTM 69143 b

1Chicago, or the Federal Reserve Bank of St. Louis, as
2determined by federal law.
3    "Bank" means any person doing a banking business whether
4subject to the laws of this or any other jurisdiction.
5    A "banking house", "branch", "branch bank" or "branch
6office" shall mean any place of business of a bank at which
7deposits are received, checks paid, or loans made, but shall
8not include any place at which only records thereof are made,
9posted, or kept. A place of business at which deposits are
10received, checks paid, or loans made shall not be deemed to be
11a branch, branch bank, or branch office if the place of
12business is adjacent to and connected with the main banking
13premises, or if it is separated from the main banking premises
14by not more than an alley; provided always that (i) if the
15place of business is separated by an alley from the main
16banking premises there is a connection between the two by
17public or private way or by subterranean or overhead passage,
18and (ii) if the place of business is in a building not wholly
19occupied by the bank, the place of business shall not be within
20any office or room in which any other business or service of
21any kind or nature other than the business of the bank is
22conducted or carried on. A place of business at which deposits
23are received, checks paid, or loans made shall not be deemed to
24be a branch, branch bank, or branch office (i) of any bank if
25the place is a terminal established and maintained in
26accordance with paragraph (17) of Section 5 of this Act, or

 

 

SB3666- 102 -LRB103 39006 RTM 69143 b

1(ii) of a commonly owned bank by virtue of transactions
2conducted at that place on behalf of the other commonly owned
3bank under paragraph (23) of Section 5 of this Act if the place
4is an affiliate facility with respect to the other bank.
5    "Branch of an out-of-state bank" means a branch
6established or maintained in Illinois by an out-of-state bank
7as a result of a merger between an Illinois bank and the
8out-of-state bank that occurs on or after May 31, 1997, or any
9branch established by the out-of-state bank following the
10merger.
11    "Bylaws" means the bylaws of a bank that are adopted by the
12bank's board of directors or shareholders for the regulation
13and management of the bank's affairs. If the bank operates as a
14limited liability company, however, "bylaws" means the
15operating agreement of the bank.
16    "Call report fee" means the fee to be paid to the
17Commissioner by each State bank pursuant to paragraph (a) of
18subsection (3) of Section 48 of this Act.
19    "Capital" includes the aggregate of outstanding capital
20stock and preferred stock.
21    "Cash flow reserve account" means the account within the
22books and records of the Commissioner of Banks and Real Estate
23used to record funds designated to maintain a reasonable Bank
24and Trust Company Fund operating balance to meet agency
25obligations on a timely basis.
26    "Charter" includes the original charter and all amendments

 

 

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1thereto and articles of merger or consolidation.
2    "Commissioner" means the Commissioner of Banks and Real
3Estate, except that beginning on April 6, 2009 (the effective
4date of Public Act 95-1047), all references in this Act to the
5Commissioner of Banks and Real Estate are deemed, in
6appropriate contexts, to be references to the Secretary of
7Financial and Professional Regulation.
8    "Commonly owned banks" means 2 or more banks that each
9qualify as a bank subsidiary of the same bank holding company
10pursuant to Section 18 of the Federal Deposit Insurance Act;
11"commonly owned bank" refers to one of a group of commonly
12owned banks but only with respect to one or more of the other
13banks in the same group.
14    "Community" means a city, village, or incorporated town
15and also includes the area served by the banking offices of a
16bank, but need not be limited or expanded to conform to the
17geographic boundaries of units of local government.
18    "Company" means a corporation, limited liability company,
19partnership, business trust, association, or similar
20organization 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
24trust company and a bank, are extinguished and by the same
25process a new bank is created, taking over the assets and
26assuming the liabilities of the banks or trust company passing

 

 

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1out of existence.
2    "Continuing bank" means a merging bank, the charter of
3which becomes the charter of the resulting bank.
4    "Converting bank" means a State bank converting to become
5a national bank, or a national bank converting to become a
6State bank.
7    "Converting trust company" means a trust company
8converting 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
11bank. In the case of a manager-managed limited liability
12company, however, "director" means a manager of the bank and,
13in the case of a member-managed limited liability company,
14"director" means a member of the bank. The term "director"
15does not include an advisory director, honorary director,
16director emeritus, or similar person, unless the person is
17otherwise performing functions similar to those of a member of
18the board of directors.
19    "Director of Banking" means the Director of the Division
20of Banking of the Department of Financial and Professional
21Regulation.
22    "Eligible depository institution" means an insured savings
23association that is in default, an insured savings association
24that is in danger of default, a State or national bank that is
25in default or a State or national bank that is in danger of
26default, as those terms are defined in this Section, or a new

 

 

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1bank as that term defined in Section 11(m) of the Federal
2Deposit Insurance Act or a bridge bank as that term is defined
3in Section 11(n) of the Federal Deposit Insurance Act or a new
4federal savings association authorized under Section
511(d)(2)(f) of the Federal Deposit Insurance Act.
6    "Fiduciary" means trustee, agent, executor, administrator,
7committee, guardian for a minor or for a person under legal
8disability, receiver, trustee in bankruptcy, assignee for
9creditors, or any holder of similar position of trust.
10    "Financial institution" means a bank, savings bank,
11savings and loan association, credit union, or any licensee
12under the Consumer Installment Loan Act or the Sales Finance
13Agency Act and, for purposes of Section 48.3, any proprietary
14network, funds transfer corporation, or other entity providing
15electronic funds transfer services, or any corporate
16fiduciary, its subsidiaries, affiliates, parent company, or
17contractual service provider that is examined by the
18Commissioner. For purposes of Section 5c and subsection (b) of
19Section 13 of this Act, "financial institution" includes any
20proprietary network, funds transfer corporation, or other
21entity providing electronic funds transfer services, and any
22corporate fiduciary.
23    "Foundation" means the Illinois Bank Examiners' Education
24Foundation.
25    "General obligation" means a bond, note, debenture,
26security, or other instrument evidencing an obligation of the

 

 

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1government entity that is the issuer that is supported by the
2full available resources of the issuer, the principal and
3interest of which is payable in whole or in part by taxation.
4    "Guarantee" means an undertaking or promise to answer for
5payment of another's debt or performance of another's duty,
6liability, or obligation whether "payment guaranteed" or
7"collection guaranteed".
8    "In danger of default" means a State or national bank, a
9federally chartered insured savings association or an Illinois
10state chartered insured savings association with respect to
11which the Commissioner or the appropriate federal banking
12agency has advised the Federal Deposit Insurance Corporation
13that:
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
10bank or an insured savings association, any adjudication or
11other official determination by any court of competent
12jurisdiction, the Commissioner, the appropriate federal
13banking agency, or other public authority pursuant to which a
14conservator, receiver, or other legal custodian is appointed
15for a State or national bank or an insured savings
16association.
17    "Insured savings association" means any federal savings
18association chartered under Section 5 of the federal Home
19Owners' Loan Act and any State savings association chartered
20under the Illinois Savings and Loan Act of 1985 or a
21predecessor Illinois statute, the deposits of which are
22insured by the Federal Deposit Insurance Corporation. The term
23also includes a savings bank organized or operating under the
24Savings Bank Act.
25    "Insured savings association in recovery" means an insured
26savings association that is not an eligible depository

 

 

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1institution and that does not meet the minimum capital
2requirements applicable with respect to the insured savings
3association.
4    "Issuer" means for purposes of Section 33 every person who
5shall have issued or proposed to issue any security; except
6that (1) with respect to certificates of deposit, voting trust
7certificates, collateral-trust certificates, and certificates
8of interest or shares in an unincorporated investment trust
9not having a board of directors (or persons performing similar
10functions), "issuer" means the person or persons performing
11the acts and assuming the duties of depositor or manager
12pursuant to the provisions of the trust, agreement, or
13instrument under which the securities are issued; (2) with
14respect to trusts other than those specified in clause (1)
15above, where the trustee is a corporation authorized to accept
16and execute trusts, "issuer" means the entrusters, depositors,
17or creators of the trust and any manager or committee charged
18with the general direction of the affairs of the trust
19pursuant to the provisions of the agreement or instrument
20creating the trust; and (3) with respect to equipment trust
21certificates or like securities, "issuer" means the person to
22whom the equipment or property is or is to be leased or
23conditionally sold.
24    "Letter of credit" and "customer" shall have the meanings
25ascribed to those terms in Section 5-102 of the Uniform
26Commercial Code.

 

 

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1    "Main banking premises" means the location that is
2designated in a bank's charter as its main office.
3    "Maker or obligor" means for purposes of Section 33 the
4issuer of a security, the promisor in a debenture or other debt
5security, or the mortgagor or grantor of a trust deed or
6similar conveyance of a security interest in real or personal
7property.
8    "Merged bank" means a merging bank that is not the
9continuing, resulting, or surviving bank in a consolidation or
10merger.
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
14merger 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
17class of stock of a State bank, (b) has no other subsidiaries,
18and (c) 100% of the issued and outstanding shares of the
19corporation are owned by a parent bank holding company.
20    "Municipality" means any municipality, political
21subdivision, school district, taxing district, or agency.
22    "National bank" means a national banking association
23located in this State and after May 31, 1997, means a national
24banking association without regard to its location.
25    "Out-of-state bank" means a bank chartered under the laws
26of a state other than Illinois, a territory of the United

 

 

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1States, or the District of Columbia.
2    "Parent bank holding company" means a corporation that is
3a bank holding company as that term is defined in the Illinois
4Bank Holding Company Act of 1957 and owns 100% of the issued
5and outstanding shares of a mid-tier bank holding company.
6    "Person" means an individual, corporation, limited
7liability company, partnership, joint venture, trust, estate,
8or unincorporated association.
9    "Public agency" means the State of Illinois, the various
10counties, townships, cities, towns, villages, school
11districts, educational service regions, special road
12districts, public water supply districts, fire protection
13districts, drainage districts, levee districts, sewer
14districts, housing authorities, the Illinois Bank Examiners'
15Education Foundation, the Chicago Park District, and all other
16political corporations or subdivisions of the State of
17Illinois, whether now or hereafter created, whether herein
18specifically mentioned or not, and shall also include any
19other state or any political corporation or subdivision of
20another state.
21    "Public funds" or "public money" means current operating
22funds, special funds, interest and sinking funds, and funds of
23any kind or character belonging to, in the custody of, or
24subject to the control or regulation of the United States or a
25public agency. "Public funds" or "public money" shall include
26funds held by any of the officers, agents, or employees of the

 

 

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1United States or of a public agency in the course of their
2official duties and, with respect to public money of the
3United States, shall include Postal Savings funds.
4    "Published" means, unless the context requires otherwise,
5the publishing of the notice or instrument referred to in some
6newspaper of general circulation in the community in which the
7bank is located at least once each week for 3 successive weeks.
8Publishing shall be accomplished by, and at the expense of,
9the bank required to publish. Where publishing is required,
10the bank shall submit to the Commissioner that evidence of the
11publication as the Commissioner shall deem appropriate.
12    "Qualified financial contract" means any security
13contract, commodity contract, forward contract, including spot
14and forward foreign exchange contracts, repurchase agreement,
15swap agreement, and any similar agreement, any option to enter
16into any such agreement, including any combination of the
17foregoing, and any master agreement for such agreements. A
18master agreement, together with all supplements thereto, shall
19be treated as one qualified financial contract. The contract,
20option, agreement, or combination of contracts, options, or
21agreements shall be reflected upon the books, accounts, or
22records of the bank, or a party to the contract shall provide
23documentary evidence of such agreement.
24    "Recorded" means the filing or recording of the notice or
25instrument referred to in the office of the Recorder of the
26county wherein the bank is located.

 

 

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1    "Resulting bank" means the bank resulting from a merger or
2conversion.
3    "Secretary" means the Secretary of Financial and
4Professional Regulation, or a person authorized by the
5Secretary or by this Act to act in the Secretary's stead.
6    "Securities" means stocks, bonds, debentures, notes, or
7other similar obligations.
8    "Special purpose trust company" means a special purpose
9trust company under Article IIA of the Corporate Fiduciary
10Act.
11    "Stand-by letter of credit" means a letter of credit under
12which drafts are payable upon the condition the customer has
13defaulted in performance of a duty, liability, or obligation.
14    "State bank" means any banking corporation that has a
15banking charter issued by the Commissioner under this Act.
16    "State Banking Board" means the State Banking Board of
17Illinois.
18    "Subsidiary" with respect to a specified company means a
19company that is controlled by the specified company. For
20purposes of paragraphs (8) and (12) of Section 5 of this Act,
21"control" means the exercise of operational or managerial
22control of a corporation by the bank, either alone or together
23with other affiliates of the bank.
24    "Surplus" means the aggregate of (i) amounts paid in
25excess of the par value of capital stock and preferred stock;
26(ii) amounts contributed other than for capital stock and

 

 

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1preferred 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
4assigned to those terms in regulations promulgated for the
5appropriate federal banking agency of a state bank, as those
6regulations are now or hereafter amended.
7    "Trust company" means a limited liability company or
8corporation incorporated in this State for the purpose of
9accepting and executing trusts.
10    "Undivided profits" means undistributed earnings less
11discretionary transfers to surplus.
12    "Unimpaired capital and unimpaired surplus", for the
13purposes of paragraph (21) of Section 5 and Sections 32, 33,
1434, 35.1, 35.2, and 47 of this Act means the sum of the state
15bank's Tier 1 Capital and Tier 2 Capital plus such other
16shareholder equity as may be included by regulation of the
17Commissioner. Unimpaired capital and unimpaired surplus shall
18be calculated on the basis of the date of the last quarterly
19call report filed with the Commissioner preceding the date of
20the transaction for which the calculation is made, provided
21that: (i) when a material event occurs after the date of the
22last quarterly call report filed with the Commissioner that
23reduces or increases the bank's unimpaired capital and
24unimpaired surplus by 10% or more, then the unimpaired capital
25and unimpaired surplus shall be calculated from the date of
26the material event for a transaction conducted after the date

 

 

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1of the material event; and (ii) if the Commissioner determines
2for safety and soundness reasons that a state bank should
3calculate unimpaired capital and unimpaired surplus more
4frequently than provided by this paragraph, the Commissioner
5may by written notice direct the bank to calculate unimpaired
6capital and unimpaired surplus at a more frequent interval. In
7the case of a state bank newly chartered under Section 13 or a
8state bank resulting from a merger, consolidation, or
9conversion under Sections 21 through 26 for which no preceding
10quarterly call report has been filed with the Commissioner,
11unimpaired capital and unimpaired surplus shall be calculated
12for the first calendar quarter on the basis of the effective
13date of the charter, merger, consolidation, or conversion.
14(Source: P.A. 95-924, eff. 8-26-08; 95-1047, eff. 4-6-09;
1596-1000, 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
18purpose trust company. Upon approval by the Commissioner a
19trust company having power so to do under the law under which
20it is organized may convert into a state bank or may merge into
21a state bank as prescribed by this Act; except that the action
22by a trust company shall be taken in the manner prescribed by
23and shall be subject to limitations and requirements imposed
24by the law under which it is organized which law shall also
25govern the rights of its dissenting stockholders. The rights

 

 

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1of dissenting stockholders of a state bank shall be governed
2by Section 29 of this Act. The conversion or merger procedure
3shall be:
4    (1) In the case of a merger, the board of directors of both
5the merging trust company and the merging bank by a majority of
6the entire board in each case shall approve a merger agreement
7which 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
9merging bank and of the merging trust company, the merger
10agreement shall be submitted to the Commissioner for approval
11together with the certified copies of the authorizing
12resolution of each board of directors showing approval by a
13majority of each board.
14    (3) After receipt by the Commissioner of the papers
15specified in subsection (2), he shall approve or disapprove
16the merger agreement. The Commissioner shall not approve the
17agreement 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
5merger of a bank and a trust company where there is to be a
6resulting bank must be approved by the affirmative vote of the
7holders of at least two-thirds of the outstanding shares of
8stock of the merging bank entitled to vote at a meeting called
9to consider such action, unless holders of preferred stock are
10entitled to vote as a class in respect thereof, in which event
11the proposed merger shall be adopted upon receiving the
12affirmative vote of the holders of at least two-thirds of the
13outstanding shares of each class of shares entitled to vote as
14a class in respect thereof and of the total outstanding shares
15entitled to vote at such meeting and must be approved by the
16stockholders of the merging trust company as provided by the
17Act under which it is organized. The prescribed vote by the
18merging bank and the merging trust company shall constitute
19the adoption of the charter and by-laws of the continuing
20bank, including the amendments in the merger agreement, as the
21charter and by-laws of the resulting bank. Written or printed
22notice of the meeting of the stockholders of the merging bank
23shall be given to each stockholder of record entitled to vote
24at such meeting at least thirty days before such meeting and in
25the manner provided in this Act for the giving of notice of
26meetings of stockholders. The notice shall state that

 

 

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1dissenting stockholders of the merging trust company will be
2entitled to payment of the value of those shares which are
3voted against approval of the merger, if a proper demand is
4made on the resulting bank and the requirements of the Act
5under which the merging trust company is organized are
6satisfied.
7    (5) Unless a later date is specified in the merger
8agreement, the merger shall become effective upon the filing
9with the Commissioner of the executed merger agreement,
10together with copies of the resolutions of the stockholders of
11the merging bank and the merging trust company approving it,
12certified by the president or a vice-president or, the cashier
13and also by the secretary or other officer charged with
14keeping the records. The charter of the merging trust company
15shall thereupon automatically terminate. The Commissioner
16shall thereupon issue to the continuing bank a certificate of
17merger which shall specify the name of the merging trust
18company, the name of the continuing bank and the amendments to
19the charter of the continuing bank provided for by the merger
20agreement. Such certificate shall be conclusive evidence of
21the merger and of the correctness of all proceedings therefor
22in all courts and places including the office of the Secretary
23of State, and said certificate shall be recorded.
24    (6) In the case of a conversion, a trust company shall
25apply 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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1specified in subsection (6), he shall approve or disapprove
2the plan of conversion. The Commissioner shall not approve the
3plan 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
14shall state his objections in writing and give an opportunity
15to the converting trust company to obviate such objections.
16    (8) Unless a later date is specified in the plan of
17conversion, the conversion shall become effective upon the
18Commissioner's approval, and the charter proposed in the plan
19of conversion shall constitute the charter of the resulting
20bank. The Commissioner shall issue a certificate of conversion
21which shall specify the name of the converting trust company,
22the name of the resulting bank and the charter provided for by
23said plan of conversion. Such certificate shall be conclusive
24evidence of the conversion and of the correctness of all
25proceedings therefor in all courts and places including the
26office of the Secretary of State, and such certificate shall

 

 

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1be recorded.
2    (8.5) A special purpose trust company under Article IIA of
3the Corporate Fiduciary Act may merge with a State bank or
4convert to a State bank as if the special purpose trust company
5were a trust company under Article II of the Corporate
6Fiduciary Act, subject to rules adopted by the Department.
7    (9) In the case of either a merger or a conversion under
8this Section 30, the resulting bank shall be considered the
9same business and corporate entity as each merging bank and
10merging trust company or as the converting trust company with
11all the property, rights, powers, duties and obligations of
12each 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
15changing Sections 1-5.08, 2-1, 4-1, 4-2, 4-5, 4A-15, and 5-1
16and 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,
20or other corporation, limited liability company, or other
21entity now or hereafter organized under the laws of any state
22or territory of the United States of America, including the
23District of Columbia, other than the State of Illinois;
24    (b) any national banking association having its principal

 

 

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1place of business in any state or territory of the United
2States of America, including the District of Columbia, other
3than the State of Illinois; and
4    (c) any federal savings and loan association or federal
5savings bank having its principal place of business in any
6state or territory of the United States of America, including
7the 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
11incorporated under the general corporation laws of this State
12and any limited liability company established under the
13Limited Liability Company Act for the purpose of accepting and
14executing trusts, and any state bank, state savings and loan
15association, state savings bank, or other special corporation
16now or hereafter authorized by law to accept or execute
17trusts, may be appointed to act as a fiduciary in any capacity
18a natural person or corporation may act, and shall include,
19but not be limited to, acting as assignee or trustee by deed,
20and executor, guardian or trustee by will, custodian under the
21Illinois Uniform Transfers to Minors Act and such appointment
22shall be of like force as in case of appointment of a natural
23person and shall be designated a corporate fiduciary.
24    (b) No corporate fiduciary shall dissolve or cease its
25corporate existence without prior notice to and approval by

 

 

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1the Commissioner and compliance with the requirements of
2Section 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
9corporate fiduciaries perform a vital service in the custody,
10safekeeping, and management of physical assets, traditional
11electronic assets, and emerging digital assets for customers;
12that it is in the public interest that trust companies may be
13organized for the special purpose of providing fiduciary
14custodial services and related services to customers; that the
15operation of special purpose trust companies is impressed with
16a public interest such that it should be supervised as an
17activity under this Act; and that such special purpose trust
18companies should obtain their authority, conduct their
19operations, and be supervised as corporate fiduciaries as
20provided in this Act.
 
21    (205 ILCS 620/2A-2 new)
22    Sec. 2A-2. Special purpose trust company. Any corporation
23that has been or shall be incorporated under the general

 

 

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1corporation laws of this State and any limited liability
2company established under the Limited Liability Company Act
3for the special purpose of providing fiduciary custodial
4services or providing other like or related services as
5specified by rule, consistent with this Article, may be
6appointed to act as a fiduciary with respect to such services
7and 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
11activity of a special purpose trust company after the
12effective date of this amendatory Act of the 103rd General
13Assembly upon filing an application for and procuring from the
14Secretary a certificate of authority stating that the person
15has complied with the requirements of this Act and is
16qualified to engage in the activity of a special purpose trust
17company.
18    (b) No natural person or natural persons, firm,
19partnership, or corporation not having been authorized under
20this Act shall transact in the activity of a special purpose
21trust company. A person who violates this Section is guilty of
22a Class A misdemeanor and the Attorney General or State's
23Attorney of the county in which the violation occurs may
24restrain the violation by a complaint for injunctive relief.
25    (c) Any entity that holds a certificate of authority under

 

 

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1Article II of this Act may engage in the activity of a special
2purpose trust company without applying for or receiving a
3certificate of authority under this Article IIA.
4    (d) Nothing in this Section shall limit the authority of a
5depository institution to provide nonfiduciary custodial
6services consistent with its charter in accordance with
7applicable law and subject to any limitations and restrictions
8imposed 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
12administration of this Article, including, but not limited to:
13rules for defining statutory terms; applying for a certificate
14of authority; review, investigation, and approval of
15application for certificate of authority; capital
16requirements; office location and name; collateralizing
17fiduciary assets; and general corporate powers. The authority
18of this subsection (a) is in addition to, and in no way limits,
19the authority of the Secretary under subsection (a) of Section
205-1.
21    (b) Articles III, V, VI, VII, VIII, and IX of this Act
22shall apply to a special purpose trust company under this
23Article as if the special purpose trust company were a trust
24company authorized under Article II of this Act, subject to
25any 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
3authority. After July 13, 1953, no foreign corporation,
4including banks, savings banks, and savings and loan
5associations, now or hereafter organized under the laws of any
6other state or territory, and no national banking association
7having its principal place of business in any other state or
8territory or federal savings and loan association or federal
9savings bank having its principal place of business in any
10other state or territory, may procure a certificate of
11authority under Article II of this Act and any certificate of
12authority heretofore issued hereunder to any such foreign
13corporation or to any such national banking association shall
14become null and void on July 13, 1953, except that any such
15foreign corporation or any such national banking association
16actually acting as trustee, executor, administrator,
17administrator to collect, guardian, or in any other like
18fiduciary capacity in this State on July 13, 1953, may
19continue to act as such fiduciary in that particular trust or
20estate until such time as it has completed its duties
21thereunder. Such foreign corporation and such national banking
22association shall be subject to the provisions in this Article
23IV, regardless of whether its certificate of authority was
24obtained before July 13, 1953. The right and eligibility of
25any foreign corporation, any national banking association

 

 

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1having its principal place of business in any other state or
2territory or any federal savings and loan association or
3federal savings bank having its principal place of business in
4any other state or territory hereafter to act as trustee,
5executor, administrator, administrator to collect, guardian,
6or in any other like fiduciary capacity in this State shall be
7governed solely by the provisions of this Act. Provided,
8however, that the Commissioner shall not be required to
9conduct an annual examination of such foreign corporation
10pursuant to Section 5-2 of this Act, but may examine such
11foreign corporation as the Commissioner deems appropriate.
12"Principal place of business" of any bank, federal savings and
13loan association or savings bank, for purposes of this Article
14IV, means the principal office as designated on the charter by
15its 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
19corporation may act in this State as trustee, executor,
20administrator, administrator to collect, guardian, or in any
21other like fiduciary capacity, whether the appointment is by
22will, deed, court order or otherwise, without complying with
23any laws of this State relating to the qualification of
24corporations organized under the laws of this State to conduct
25a trust business or laws relating to the qualification of

 

 

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1foreign corporations, provided only (1) such foreign
2corporation is authorized by the laws of the state of its
3organization or domicile to act as a fiduciary in that state,
4and (2) a corporation organized under the laws of this State, a
5national banking association having its principal place of
6business in this State, and a federal savings and loan
7association or federal savings bank having its principal place
8of business in this State and authorized to act as a fiduciary
9in this State, may, in such other state, act in a similar
10fiduciary capacity or capacities, as the case may be, upon
11conditions and qualifications which the Commissioner finds are
12not unduly restrictive when compared to those imposed by the
13laws of Illinois. Any foreign corporation eligible to act in a
14fiduciary capacity in this State pursuant to the provisions of
15this Act, shall be deemed qualified to accept and execute
16trusts in this State within the meaning of this Act and the
17Probate Act of 1975, approved August 7, 1975, as amended. No
18foreign corporation shall be permitted to act as trustee,
19executor, administrator, administrator to collect, guardian or
20in any other like fiduciary capacity in this State except as
21provided in Article IV of this Act; however, any foreign
22corporation actually acting in any such fiduciary capacity in
23this State on July 13, 1953, although not eligible to so act
24pursuant to the provisions of this Article IV, may continue to
25act as fiduciary in that particular trust or estate until such
26time 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
4reciprocity.
5    (a) Prior to the time any foreign corporation acts in this
6State as testamentary trustee, trustee appointed by any court,
7trustee under any written agreement, declaration or instrument
8of trust, executor, administrator, administrator to collect,
9guardian or in any other like fiduciary capacity, such foreign
10corporation shall apply to the Commissioner of Banks and Real
11Estate for a certificate of authority with reference to the
12fiduciary capacity or capacities in which such foreign
13corporation proposes to act in this State, and the
14Commissioner of Banks and Real Estate shall issue a
15certificate of authority to such corporation concerning only
16the fiduciary capacity or such of the fiduciary capacities to
17which the application pertains and with respect to which he
18has been furnished satisfactory evidence that such foreign
19corporation meets the requirements of Section 4-2 of this Act.
20The certificate of authority shall set forth the fiduciary
21capacity or capacities, as the case may be, for which the
22certificate is issued, and shall recite and certify that such
23foreign corporation is eligible to act in this State in such
24fiduciary capacity or capacities, as the case may be, pursuant
25to the provisions of this Act. The certificate of authority

 

 

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1shall remain in full force and effect until such time as such
2foreign corporation ceases to be eligible so to act under the
3provisions of this Act.
4    (b) Each foreign corporation making application for a
5certificate of authority shall pay reasonable fees to the
6Commissioner of Banks and Real Estate as determined by the
7Commissioner for the services of his office.
8    (c) Any foreign corporation holding a certificate of
9reciprocity which recites and certifies that such foreign
10corporation is eligible to act in this State in any such
11fiduciary capacity pursuant to the provisions of Article IV of
12this Act or any predecessor Act upon the same subject, issued
13prior to the effective date of this amendatory Act of 1987 may
14act in this State under such certificate of reciprocity in any
15such fiduciary capacity without applying for a new certificate
16of authority. Such certificate of reciprocity shall remain in
17full force and effect until such time as such foreign
18corporation ceases to be eligible so to act under the
19provisions of Article IV of this Act.
20    (d) Any foreign corporation acting in Illinois under a
21certificate of authority or a certificate of reciprocity shall
22report changes in its name or address to the Commissioner and
23shall notify the Commissioner when it is no longer serving as a
24corporate fiduciary in Illinois.
25    (e) The provisions of this Section shall not apply to a
26foreign corporation establishing or acquiring and maintaining

 

 

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1a place of business in this State to conduct business as a
2fiduciary 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
7outside this State, but not conducting fiduciary activities in
8this State may establish a representative office under the
9Foreign Bank Representative Office Act. At these offices, the
10foreign corporation may market and solicit fiduciary services
11and provide back office and administrative support to the
12foreign corporation's fiduciary activities, but it may not
13engage in fiduciary activities.
14    (b) A foreign corporation invested with trust powers or
15authority to act as a fiduciary pursuant to the laws of its
16home state but not conducting fiduciary activities must apply
17for and procure a license under the Foreign Bank
18Representative Office Act before establishing an office in
19this State for the purpose of marketing, soliciting, or
20transacting any service or product, unless such office is
21otherwise established as permitted by and in accordance with
22this Act, the Illinois Banking Act, the Savings Bank Act, the
23Foreign Banking Office Act, or any Act specified by rules
24adopted 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
3and Real Estate shall have the following powers and authority
4and is charged with the duties and responsibilities designated
5in this Act:
6    (a) To promulgate, in accordance with the Illinois
7Administrative Procedure Act, reasonable rules for the purpose
8of administering the provisions of this Act, for the purpose
9of protecting consumers of this State as may be necessary and
10appropriate, and for the purpose of incorporating by reference
11rules promulgated by the Federal Deposit Insurance
12Corporation, the Board of Governors of the Federal Reserve
13System, the Office of the Comptroller of the Currency, the
14Office of Thrift Supervision, or their successors that pertain
15to corporate fiduciaries, including, but not limited to,
16standards for the operation and conduct of the affairs of
17corporate fiduciaries;
18    (b) To issue orders for the purpose of administering the
19provisions of this Act and any rule promulgated in accordance
20with this Act;
21    (c) To appoint hearing officers to conduct hearings held
22pursuant to any of the powers granted to the Commissioner
23under this Section for the purpose of administering this Act
24and any rule promulgated in accordance with this Act;
25    (d) To subpoena witnesses, to compel their attendance, to

 

 

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1administer an oath, to examine any person under oath and to
2require the production of any relevant books, papers, accounts
3and documents in the course of and pursuant to any
4investigation being conducted, or any action being taken, by
5the Commissioner in respect of any matter relating to the
6duties imposed upon, or the powers vested in, the Commissioner
7under the provisions of this Act, or any rule or regulation
8promulgated in accordance with this Act;
9    (e) To conduct hearings;
10    (f) To promulgate the form and content of any applications
11required under this Act;
12    (g) To impose civil penalties of up to $100,000 against
13any person or corporate fiduciary for each violation of any
14provision of this Act, any rule promulgated in accordance with
15this Act, any order of the Commissioner or any other action
16which, in the Commissioner's discretion, is a detriment or
17impediment to accepting or executing trusts; and
18    (h) To address any inquiries to any corporate fiduciary,
19or the officers thereof, in relation to its doings and
20conditions, or any other matter connected with its affairs,
21and it shall be the duty of any corporate fiduciary or person
22so addressed, to promptly reply in writing to such inquiries.
23The Commissioner may also require reports from any corporate
24fiduciary at any time he may deem desirable.
25(Source: P.A. 96-1365, eff. 7-28-10.)
 

 

 

SB3666- 134 -LRB103 39006 RTM 69143 b

1    Section 900-25. The Consumer Fraud and Deceptive Business
2Practices Act is amended by adding Section 2EEEE as follows:
 
3    (815 ILCS 505/2EEEE new)
4    Sec. 2EEEE. Violations of the Digital Assets Regulation
5Act. Any person who violates Article 105 of the Digital Assets
6Regulation Act commits an unlawful practice within the meaning
7of this Act.

 
8
Article 999.

 
9    Section 999-95. No acceleration or delay. Where this Act
10makes changes in a statute that is represented in this Act by
11text that is not yet or no longer in effect (for example, a
12Section represented by multiple versions), the use of that
13text does not accelerate or delay the taking effect of (i) the
14changes made by this Act or (ii) provisions derived from any
15other Public Act.
 
16    Section 999-99. Effective date. This Act takes effect upon
17becoming law.