093_SB0772

 
                                     LRB093 03107 JLS 03124 b

 1        AN ACT in relation to banking.

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

 4        Section  5.  The  Illinois  Banking  Act  is  amended  by
 5    changing Section 14.1 as follows:

 6        (205 ILCS 5/14.1) (from Ch. 17, par. 321.1)
 7        Sec.  14.1. Quasi-Reorganization of capital upon a change
 8    in control.  For the purposes of declaring dividends pursuant
 9    to Section 14(8)(b) of this Act, if a bank:
10        (1)  incurs a change in ownership of more than 50% of its
11    voting stock; and
12        (2)  has a deficit in its net profits then on hand at the
13    time of such change in ownership; and
14        (3)  receives  the  prior   written   approval   of   the
15    Commissioner;  the  such  bank  may  restate  its  asset  and
16    liability   accounts   to  fair  value  for  the  purpose  of
17    reorganizing the capital accounts of the  bank  so  that  net
18    profits  then  on hand are restated to zero; provided that in
19    no event may total capital be increased  as  a  result  of  a
20    capital reorganization made pursuant to this Section.
21    (Source: P.A. 87-841.)