093_HB2270

 
                                     LRB093 08625 JLS 08853 b

 1        AN ACT concerning financial institutions.

 2        Be it enacted by the People of  the  State  of  Illinois,
 3    represented in the General Assembly:

 4        Section  5.  The  Savings  Bank  Act is amended by adding
 5    Section 1007.125 and changing Section 1008 as follows:

 6        (205 ILCS 205/1007.125 new)
 7        Sec.  1007.125.  Limited  liability  company.    "Limited
 8    liability   company"   means   a  limited  liability  company
 9    organized under the Limited Liability Company Act.

10        (205 ILCS 205/1008) (from Ch. 17, par. 7301-8)
11        Sec. 1008.  General corporate powers.
12        (a)  A savings bank operating under this Act shall  be  a
13    body  corporate  and politic and shall have all of the powers
14    conferred by this Act including,  but  not  limited  to,  the
15    following powers:
16             (1)  To sue and be sued, complain, and defend in its
17        corporate  name  and  to have a common seal, which it may
18        alter or renew at pleasure.
19             (2)  To obtain and maintain insurance by  a  deposit
20        insurance corporation as defined in this Act.
21             (3)  To act as a fiscal agent for the United States,
22        the  State of Illinois or any department, branch, arm, or
23        agency of the State or any unit of  local  government  or
24        school  district  in  the State, when duly designated for
25        that  purpose,  and  as  agent  to   perform   reasonable
26        functions as may be required of it.
27             (4)  To   become  a  member  of  or  deal  with  any
28        corporation or agency of the United States or  the  State
29        of  Illinois,  to  the  extent that the agency assists in
30        furthering or facilitating its purposes or powers and  to
 
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 1        that  end  to  purchase  stock  or  securities thereof or
 2        deposit money therewith, and to  comply  with  any  other
 3        conditions of membership or credit.
 4             (5)  To make donations in reasonable amounts for the
 5        public  welfare or for charitable, scientific, religious,
 6        or educational purposes.
 7             (6)  To  adopt  and  operate  reasonable  insurance,
 8        bonus, profit sharing, and retirement plans for  officers
 9        and  employees  and  for  directors  including,  but  not
10        limited  to,  advisory, honorary, and emeritus directors,
11        who are not officers or employees.
12             (7)  To reject any application  for  membership;  to
13        retire   deposit   accounts  by  enforced  retirement  as
14        provided in this Act and the bylaws;  and  to  limit  the
15        issuance  of,  or payments on, deposit accounts, subject,
16        however, to contractual obligations.
17             (8)  To purchase stock in service  corporations  and
18        to  invest  in  any  form  of indebtedness of any service
19        corporation  as  defined  in   this   Act,   subject   to
20        regulations of the Commissioner.
21             (9)  To   purchase  stock  of  a  corporation  whose
22        principal purpose is to operate a safe deposit company or
23        escrow service company.
24             (10)  To  exercise  all  the  powers  necessary   to
25        qualify  as a trustee or custodian under federal or State
26        law, provided that the authority to  accept  and  execute
27        trusts  is  subject  to  the  provisions of the Corporate
28        Fiduciary Act and to the supervision of those  activities
29        by the Commissioner.
30             (11)  (Blank).
31             (12)  To  establish, maintain, and operate terminals
32        as authorized by the Electronic Fund Transfer Act.
33             (13)  To pledge its assets:
34                  (A)  to enable it to act as agent for the  sale
 
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 1             of obligations of the United States;
 2                  (B)  to secure deposits;
 3                  (C)  to   secure  deposits  of  money  whenever
 4             required by the National Bankruptcy Act;
 5                  (D)  (blank); and
 6                  (E)  to secure trust funds commingled with  the
 7             savings  bank's  funds,  whether  deposited  by  the
 8             savings bank or an affiliate of the savings bank, as
 9             required   under   Section   2-8  of  the  Corporate
10             Fiduciary Act.
11             (14)  To accept for payment at a future date not  to
12        exceed one year from the date of acceptance, drafts drawn
13        upon  it  by  its  customers;  and  to  issue, advise, or
14        confirm letters of credit authorizing holders thereof  to
15        draw drafts upon it or its correspondents.
16             (15)  Subject    to    the    regulations   of   the
17        Commissioner, to own and lease personal property acquired
18        by the savings bank  at  the  request  of  a  prospective
19        lessee  and,  upon the agreement of that person, to lease
20        the personal property.
21             (16)  To establish temporary service booths  at  any
22        International  Fair in this State that is approved by the
23        United States Department of Commerce for the duration  of
24        the  international  fair  for  the purpose of providing a
25        convenient place for foreign trade customers to  exchange
26        their   home   countries'  currency  into  United  States
27        currency or the converse.  To provide temporary  periodic
28        service  to persons residing in a bona fide nursing home,
29        senior  citizens'  retirement  home,  or  long-term  care
30        facility.   These  powers  shall  not  be  construed   as
31        establishing  a  new  place or change of location for the
32        savings bank providing the service booth.
33             (17)  To   indemnify   its   officers,    directors,
34        employees,  and  agents,  as  authorized for corporations
 
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 1        under Section 8.75 of the Business  Corporations  Act  of
 2        1983.
 3             (18)  To  provide data processing services to others
 4        on a for-profit basis.
 5             (19)  To  utilize  any  electronic   technology   to
 6        provide customers with home banking services.
 7             (20)  Subject    to    the    regulations   of   the
 8        Commissioner, to enter into an  agreement  to  act  as  a
 9        surety.
10             (21)  Subject    to    the    regulations   of   the
11        Commissioner,  to  issue  credit  cards,  extend   credit
12        therewith,  and  otherwise  engage  in  or participate in
13        credit card operations.
14             (22)  To purchase for  its  own  account  shares  of
15        stock  of  a bankers' bank, described in Section 13(b)(1)
16        of the Illinois  Banking  Act,  on  the  same  terms  and
17        conditions  as  a  bank  may purchase such shares.  In no
18        event shall the total amount of  such  stock  held  by  a
19        savings  bank  in  such  bankers'  bank exceed 10% of its
20        capital and surplus (including undivided profits) and  in
21        no event shall a savings bank acquire more than 5% of any
22        class of voting securities of such bankers' bank.
23             (23)  With respect to affiliate facilities:
24                  (A)  to  conduct at affiliate facilities any of
25             the following transactions for and on behalf of  any
26             affiliated  depository institution, if so authorized
27             by the affiliate or affiliates: receiving  deposits;
28             renewing   deposits;  cashing  and  issuing  checks,
29             drafts, money orders, travelers checks,  or  similar
30             instruments;  changing  money; receiving payments on
31             existing indebtedness;  and  conducting  ministerial
32             functions   with   respect   to  loan  applications,
33             servicing  loans,   and   providing   loan   account
34             information; and
 
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 1                  (B)  to   authorize  an  affiliated  depository
 2             institution to conduct for and on behalf of it,  any
 3             of the transactions listed in this subsection at one
 4             or more affiliate facilities.
 5             A  savings bank intending to conduct or to authorize
 6        an affiliated depository institution  to  conduct  at  an
 7        affiliate  facility  any of the transactions specified in
 8        this  subsection  shall  give  written  notice   to   the
 9        Commissioner at least 30 days before any such transaction
10        is conducted at an affiliate facility.  All conduct under
11        this  subsection  shall  be on terms consistent with safe
12        and sound banking practices and applicable law.
13             (24)  Subject  to  Article  XLIV  of  the   Illinois
14        Insurance  Code,  to act as the agent for any fire, life,
15        or other insurance company authorized  by  the  State  of
16        Illinois,   by   soliciting  and  selling  insurance  and
17        collecting premiums on policies issued by  such  company;
18        and  may  receive  for  services so rendered such fees or
19        commissions as  may  be  agreed  upon  between  the  said
20        savings  bank  and the insurance company for which it may
21        act as agent; provided, however,  that  no  such  savings
22        bank shall in any case assume or guarantee the payment of
23        any  premium  on  insurance  policies  issued through its
24        agency by its principal; and provided further,  that  the
25        savings  bank  shall  not  guarantee  the  truth  of  any
26        statement  made  by  an assured in filing his application
27        for insurance.
28             (25)  To become a member of the  Federal  Home  Loan
29        Bank  and  to  have  the  powers  granted  to  a  savings
30        association organized under the Illinois Savings and Loan
31        Act  of 1985 or the laws of the United States, subject to
32        regulations of the Commissioner.
33             (26)  To offer any product or service that is at the
34        time authorized or permitted to a bank by applicable law,
 
                            -6-      LRB093 08625 JLS 08853 b
 1        but  subject  always  to   the   same   limitations   and
 2        restrictions  that  are  applicable  to  the bank for the
 3        product or service by such applicable law and subject  to
 4        the  applicable  provisions of the Financial Institutions
 5        Insurance Sales Law and rules of the Commissioner.
 6        (b)  If this Act or the regulations  adopted  under  this
 7    Act fail to provide specific guidance in matters of corporate
 8    governance, the provisions of the Business Corporation Act of
 9    1983 may be used.
10        (c)  A savings bank operating under this Act may, subject
11    to  rules of the Commissioner, convert to a limited liability
12    company  upon  an  authorization  by  the  deposit  insurance
13    corporation.
14    (Source: P.A.  91-97,  eff.  7-9-99;  91-357,  eff.  7-29-99;
15    92-483, eff. 8-23-01.)

16        Section 10.  The Limited Liability Company Act is amended
17    by changing Section 1-25 as follows:

18        (805 ILCS 180/1-25)
19        Sec.  1-25.  Nature  of  business.  A  limited  liability
20    company  may  be  formed  for  any lawful purpose or business
21    except:
22             (1)  (blank)  banking,  exclusive   of   fiduciaries
23        organized  for  the  purpose  of  accepting and executing
24        trusts;
25             (2)  insurance unless, for the purpose  of  carrying
26        on business as a member of a group including incorporated
27        and  individual unincorporated underwriters, the Director
28        of Insurance finds that the group meets the  requirements
29        of subsection (3) of Section 86 of the Illinois Insurance
30        Code  and the limited liability company, if insolvent, is
31        subject to liquidation by the Director of Insurance under
32        Article XIII of the Illinois Insurance Code;
 
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 1             (3)  the  practice  of  dentistry  unless  all   the
 2        members  and  managers are licensed as dentists under the
 3        Illinois Dental Practice Act; or
 4             (4)  the  practice  of  medicine  unless   all   the
 5        managers, if any, are licensed to practice medicine under
 6        the Medical Practice Act of 1987 and any of the following
 7        conditions apply:
 8                  (A)  the  member  or  members  are  licensed to
 9             practice medicine under the Medical Practice Act  of
10             1987; or
11                  (B)  the  member  or  members  are a registered
12             medical  corporation   or   corporations   organized
13             pursuant to the Medical Corporation Act; or
14                  (C)  the  member  or members are a professional
15             corporation organized pursuant to  the  Professional
16             Service  Corporation  Act  of physicians licensed to
17             practice medicine in all its branches; or
18                  (D)  the  member  or  members  are  a   medical
19             limited liability company or companies.
20    (Source: P.A. 91-593, eff. 8-14-99; 92-144, eff. 7-24-01.)