HB6747eng 93RD GENERAL ASSEMBLY

HB6747 Engrossed LRB093 18473 SAS 44187 b

AN ACT concerning financial regulation.

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

Section 5. The Savings Bank Act is amended by changing Section 11003 as follows:

(205 ILCS 205/11003) (from Ch. 17, par. 7311-3)

Sec. 11003. Removal and prohibition authority.

(a) In addition to other provisions of this Act concerning officers and directors, the Commissioner may remove or suspend from any savings bank operating under this Act any officer, director, employee, or agent of a savings bank, and the Commissioner may prohibit participation in the affairs of any savings bank by any current, former, or prospective officer, director, employee, or agent of a savings bank, if he finds that:

(1) The person or persons have directly or indirectly violated any law, regulation, or order including orders, conditions, and agreements between the savings bank and the Commissioner or between the savings bank and its federal regulators.

(2) The person or persons have breached their fiduciary or professional responsibilities to the savings bank.

(3) The person or persons have similarly behaved towards any other insured depository institution or otherwise regulated entity or that the person or persons are the subject of any final order issued by the federal insurer, the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve Board, a Federal Reserve Bank, the U.S. Office of Thrift Supervision, the National Credit Union Administration, a state financial institutions regulator, the Securities and Exchange Commission, other federal or state financial institution regulators, or by a state or federal court of law.

(b) The Commissioner may serve upon a party a written notice of the Commissioner's intention to remove or suspend the party from office in the savings bank or to prohibit any participation in any manner by the party in the affairs of any savings bank, if the Commissioner finds because of a violation of subsection (a) that:

(1) Any savings bank, other insured depository institution, or other regulated entity has or probably will suffer financial loss or other damage.

(2) The interests of savings bank's depositors or other insured depository institution's depositors have been or could be prejudiced.

(3) The party has received financial gain or other benefit by reason of the violation.

(4) The violation or breach involves personal dishonesty on the part of the party or demonstrates willful or continuing disregard by the party for the safety and soundness of the savings bank or other insured depository institution.

(Source: P.A. 92-483, eff. 8-23-01.)