Full Text of HB3543 99th General Assembly
HB3543enr 99TH GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning regulation.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Banking Act is amended by changing | 5 | | Sections 48, 48.05, and 78 as follows:
| 6 | | (205 ILCS 5/48)
| 7 | | Sec. 48. Secretary's powers; duties. The Secretary shall | 8 | | have the
powers and authority, and is charged with the duties | 9 | | and responsibilities
designated in this Act, and a State bank | 10 | | shall not be subject to any
other visitorial power other than | 11 | | as authorized by this Act, except those
vested in the courts, | 12 | | or upon prior consultation with the Secretary, a
foreign bank | 13 | | regulator with an appropriate supervisory interest in the | 14 | | parent
or affiliate of a state bank. In the performance of the | 15 | | Secretary's
duties:
| 16 | | (1) The Commissioner shall call for statements from all | 17 | | State banks
as provided in Section 47 at least one time | 18 | | during each calendar quarter.
| 19 | | (2) (a) The Commissioner, as often as the Commissioner | 20 | | shall deem
necessary or
proper, and no less frequently than | 21 | | 18 months following the preceding
examination, shall | 22 | | appoint a suitable person or
persons to make an examination | 23 | | of the affairs of every State bank,
except that for every |
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| 1 | | eligible State bank, as defined by regulation, the
| 2 | | Commissioner in lieu of the examination may accept on an | 3 | | alternating basis the
examination made by the eligible | 4 | | State bank's appropriate federal banking
agency pursuant | 5 | | to Section 111 of the Federal Deposit Insurance Corporation
| 6 | | Improvement Act of 1991, provided the appropriate federal | 7 | | banking agency has
made such an examination. A person so | 8 | | appointed shall not be a stockholder or
officer or employee | 9 | | of
any bank which that person may be directed to examine, | 10 | | and shall have
powers to make a thorough examination into | 11 | | all the affairs of the bank and
in so doing to examine any | 12 | | of the officers or agents or employees thereof
on oath and | 13 | | shall make a full and detailed report of the condition of | 14 | | the
bank to the Commissioner. In making the examination the | 15 | | examiners shall
include an examination of the affairs of | 16 | | all the affiliates of the bank, as
defined in subsection | 17 | | (b) of Section 35.2 of this Act, or subsidiaries of the
| 18 | | bank as shall be
necessary to disclose fully the conditions | 19 | | of the subsidiaries or
affiliates, the relations
between | 20 | | the bank and the subsidiaries or affiliates and the effect | 21 | | of those
relations upon
the affairs of the bank, and in | 22 | | connection therewith shall have power to
examine any of the | 23 | | officers, directors, agents, or employees of the
| 24 | | subsidiaries or affiliates
on oath. After May 31, 1997, the | 25 | | Commissioner may enter into cooperative
agreements
with | 26 | | state regulatory authorities of other states to provide for |
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| 1 | | examination of
State bank branches in those states, and the | 2 | | Commissioner may accept reports
of examinations of State | 3 | | bank branches from those state regulatory authorities.
| 4 | | These cooperative agreements may set forth the manner in | 5 | | which the other state
regulatory authorities may be | 6 | | compensated for examinations prepared for and
submitted to | 7 | | the Commissioner.
| 8 | | (b) After May 31, 1997, the Commissioner is authorized | 9 | | to examine, as often
as the Commissioner shall deem | 10 | | necessary or proper, branches of out-of-state
banks. The | 11 | | Commissioner may establish and may assess fees to be paid | 12 | | to the
Commissioner for examinations under this subsection | 13 | | (b). The fees shall be
borne by the out-of-state bank, | 14 | | unless the fees are borne by the state
regulatory authority | 15 | | that chartered the out-of-state bank, as determined by a
| 16 | | cooperative agreement between the Commissioner and the | 17 | | state regulatory
authority that chartered the out-of-state | 18 | | bank.
| 19 | | (2.1) Pursuant to paragraph (a) of subsection (6) of | 20 | | this Section, the Secretary shall adopt rules that ensure | 21 | | consistency and due process in the examination process. The | 22 | | Secretary may also establish guidelines that (i) define the | 23 | | scope of the examination process and (ii) clarify | 24 | | examination items to be resolved. The rules, formal | 25 | | guidance, interpretive letters, or opinions furnished to | 26 | | State banks by the Secretary may be relied upon by the |
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| 1 | | State banks. | 2 | | (2.5) Whenever any State bank, any subsidiary or | 3 | | affiliate of a State
bank, or after May 31, 1997, any | 4 | | branch of an out-of-state bank causes to
be performed, by | 5 | | contract or otherwise, any bank services
for itself, | 6 | | whether on or off its premises:
| 7 | | (a) that performance shall be subject to | 8 | | examination by the Commissioner
to the same extent as | 9 | | if services were being performed by the bank or, after
| 10 | | May 31, 1997, branch of the out-of-state bank itself
on | 11 | | its own premises; and
| 12 | | (b) the bank or, after May 31, 1997, branch of the | 13 | | out-of-state bank
shall notify the Commissioner of the | 14 | | existence of a service
relationship. The notification | 15 | | shall be submitted with the first statement
of | 16 | | condition (as required by Section 47 of this Act) due | 17 | | after the making
of the service contract or the | 18 | | performance of the service, whichever occurs
first. | 19 | | The Commissioner shall be notified of each subsequent | 20 | | contract in
the same manner.
| 21 | | For purposes of this subsection (2.5), the term "bank | 22 | | services" means
services such as sorting and posting of | 23 | | checks and deposits, computation
and posting of interest | 24 | | and other credits and charges, preparation and
mailing of | 25 | | checks, statements, notices, and similar items, or any | 26 | | other
clerical, bookkeeping, accounting, statistical, or |
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| 1 | | similar functions
performed for a State bank, including but | 2 | | not limited to electronic data
processing related to those | 3 | | bank services.
| 4 | | (3) The expense of administering this Act, including | 5 | | the expense of
the examinations of State banks as provided | 6 | | in this Act, shall to the extent
of the amounts resulting | 7 | | from the fees provided for in paragraphs (a),
(a-2), and | 8 | | (b) of this subsection (3) be assessed against and borne by | 9 | | the
State banks:
| 10 | | (a) Each bank shall pay to the Secretary a Call | 11 | | Report Fee which
shall be paid in quarterly | 12 | | installments equal
to one-fourth of the sum of the | 13 | | annual fixed fee of $800, plus a variable
fee based on | 14 | | the assets shown on the quarterly statement of | 15 | | condition
delivered to the Secretary in accordance | 16 | | with Section 47 for the
preceding quarter according to | 17 | | the following schedule: 16˘ per $1,000 of
the first | 18 | | $5,000,000 of total assets, 15˘ per $1,000 of the next
| 19 | | $20,000,000 of total assets, 13˘ per $1,000 of the next | 20 | | $75,000,000 of
total assets, 9˘ per $1,000 of the next | 21 | | $400,000,000 of total assets, 7˘
per $1,000 of the next | 22 | | $500,000,000 of total assets, and 5˘ per $1,000 of
all | 23 | | assets in excess of $1,000,000,000, of the State bank. | 24 | | The Call Report
Fee shall be calculated by the | 25 | | Secretary and billed to the banks for
remittance at the | 26 | | time of the quarterly statements of condition
provided |
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| 1 | | for in Section 47. The Secretary may require payment of | 2 | | the fees
provided in this Section by an electronic | 3 | | transfer of funds or an automatic
debit of an account | 4 | | of each of the State banks. In case more than one
| 5 | | examination of any
bank is deemed by the Secretary to | 6 | | be necessary in any examination
frequency cycle | 7 | | specified in subsection 2(a) of this Section,
and is | 8 | | performed at his direction, the Secretary may
assess a | 9 | | reasonable additional fee to recover the cost of the | 10 | | additional
examination; provided, however, that an | 11 | | examination conducted at the request
of the State | 12 | | Treasurer pursuant to the Uniform Disposition of | 13 | | Unclaimed
Property Act shall not be deemed to be an | 14 | | additional examination under this
Section.
In lieu
of | 15 | | the method and amounts set forth in this paragraph (a) | 16 | | for the calculation
of the Call Report Fee, the | 17 | | Secretary may specify by
rule that the Call Report Fees | 18 | | provided by this Section may be assessed
semiannually | 19 | | or some other period and may provide in the rule the | 20 | | formula to
be
used for calculating and assessing the | 21 | | periodic Call Report Fees to be paid by
State
banks.
| 22 | | (a-1) If in the opinion of the Commissioner an | 23 | | emergency exists or
appears likely, the Commissioner | 24 | | may assign an examiner or examiners to
monitor the | 25 | | affairs of a State bank with whatever frequency he | 26 | | deems
appropriate, including but not limited to a daily |
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| 1 | | basis. The reasonable
and necessary expenses of the | 2 | | Commissioner during the period of the monitoring
shall | 3 | | be borne by the subject bank. The Commissioner shall | 4 | | furnish the
State bank a statement of time and expenses | 5 | | if requested to do so within 30
days of the conclusion | 6 | | of the monitoring period.
| 7 | | (a-2) On and after January 1, 1990, the reasonable | 8 | | and necessary
expenses of the Commissioner during | 9 | | examination of the performance of
electronic data | 10 | | processing services under subsection (2.5) shall be
| 11 | | borne by the banks for which the services are provided. | 12 | | An amount, based
upon a fee structure prescribed by the | 13 | | Commissioner, shall be paid by the
banks or, after May | 14 | | 31, 1997, branches of out-of-state banks receiving the
| 15 | | electronic data processing services along with the
| 16 | | Call Report Fee assessed under paragraph (a) of this
| 17 | | subsection (3).
| 18 | | (a-3) After May 31, 1997, the reasonable and | 19 | | necessary expenses of the
Commissioner during | 20 | | examination of the performance of electronic data
| 21 | | processing services under subsection (2.5) at or on | 22 | | behalf of branches of
out-of-state banks shall be borne | 23 | | by the out-of-state banks, unless those
expenses are | 24 | | borne by the state regulatory authorities that | 25 | | chartered the
out-of-state banks, as determined by | 26 | | cooperative agreements between the
Commissioner and |
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| 1 | | the state regulatory authorities that chartered the
| 2 | | out-of-state banks.
| 3 | | (b) "Fiscal year" for purposes of this Section 48 | 4 | | is defined as a
period beginning July 1 of any year and | 5 | | ending June 30 of the next year.
The Commissioner shall | 6 | | receive for each fiscal year, commencing with the
| 7 | | fiscal year ending June 30, 1987, a contingent fee | 8 | | equal to the lesser of
the aggregate of the fees paid | 9 | | by all State banks under paragraph (a) of
subsection | 10 | | (3) for that year, or the amount, if any, whereby the | 11 | | aggregate
of the administration expenses, as defined | 12 | | in paragraph (c), for that
fiscal year exceeds the sum | 13 | | of the aggregate of the fees payable by all
State banks | 14 | | for that year under paragraph (a) of subsection (3),
| 15 | | plus any amounts transferred into the Bank and Trust | 16 | | Company Fund from the
State Pensions Fund for that | 17 | | year,
plus all
other amounts collected by the | 18 | | Commissioner for that year under any
other provision of | 19 | | this Act, plus the aggregate of all fees
collected for | 20 | | that year by the Commissioner under the Corporate | 21 | | Fiduciary
Act, excluding the receivership fees | 22 | | provided for in Section 5-10 of the
Corporate Fiduciary | 23 | | Act, and the Foreign Banking Office Act.
The aggregate | 24 | | amount of the contingent
fee thus arrived at for any | 25 | | fiscal year shall be apportioned amongst,
assessed | 26 | | upon, and paid by the State banks and foreign banking |
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| 1 | | corporations,
respectively, in the same proportion
| 2 | | that the fee of each under paragraph (a) of subsection | 3 | | (3), respectively,
for that year bears to the aggregate | 4 | | for that year of the fees collected
under paragraph (a) | 5 | | of subsection (3). The aggregate amount of the
| 6 | | contingent fee, and the portion thereof to be assessed | 7 | | upon each State
bank and foreign banking corporation,
| 8 | | respectively, shall be determined by the Commissioner | 9 | | and shall be paid by
each, respectively, within 120 | 10 | | days of the close of the period for which
the | 11 | | contingent fee is computed and is payable, and the | 12 | | Commissioner shall
give 20 days advance notice of the | 13 | | amount of the contingent fee payable by
the State bank | 14 | | and of the date fixed by the Commissioner for payment | 15 | | of
the fee.
| 16 | | (c) The "administration expenses" for any fiscal | 17 | | year shall mean the
ordinary and contingent expenses | 18 | | for that year incident to making the
examinations | 19 | | provided for by, and for otherwise administering, this | 20 | | Act,
the Corporate Fiduciary Act, excluding the | 21 | | expenses paid from the
Corporate Fiduciary | 22 | | Receivership account in the Bank and Trust Company
| 23 | | Fund, the Foreign Banking Office Act,
the Electronic | 24 | | Fund Transfer Act,
and the Illinois Bank Examiners'
| 25 | | Education Foundation Act, including all salaries and | 26 | | other
compensation paid for personal services rendered |
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| 1 | | for the State by
officers or employees of the State, | 2 | | including the Commissioner and the
Deputy | 3 | | Commissioners, communication equipment and services, | 4 | | office furnishings, surety bond
premiums, and travel | 5 | | expenses of those officers and employees, employees,
| 6 | | expenditures or charges for the acquisition, | 7 | | enlargement or improvement
of, or for the use of, any | 8 | | office space, building, or structure, or
expenditures | 9 | | for the maintenance thereof or for furnishing heat, | 10 | | light,
or power with respect thereto, all to the extent | 11 | | that those expenditures
are directly incidental to | 12 | | such examinations or administration.
The Commissioner | 13 | | shall not be required by paragraphs (c) or (d-1) of | 14 | | this
subsection (3) to maintain in any fiscal year's | 15 | | budget appropriated reserves
for accrued vacation and | 16 | | accrued sick leave that is required to be paid to
| 17 | | employees of the Commissioner upon termination of | 18 | | their service with the
Commissioner in an amount that | 19 | | is more than is reasonably anticipated to be
necessary | 20 | | for any anticipated turnover in employees, whether due | 21 | | to normal
attrition or due to layoffs, terminations, or | 22 | | resignations.
| 23 | | (d) The aggregate of all fees collected by the | 24 | | Secretary under
this Act, the Corporate Fiduciary Act,
| 25 | | or the Foreign Banking Office Act on
and after July 1, | 26 | | 1979, shall be paid promptly after receipt of the same,
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| 1 | | accompanied by a detailed statement thereof, into the | 2 | | State treasury and
shall be set apart in a special fund | 3 | | to be known as the "Bank and Trust
Company Fund", | 4 | | except as provided in paragraph (c) of subsection (11) | 5 | | of
this Section. All earnings received from | 6 | | investments of funds in the Bank
and
Trust Company Fund | 7 | | shall be deposited in the Bank and Trust Company Fund
| 8 | | and may be used for the same purposes as fees deposited | 9 | | in that Fund. The
amount from time to time deposited | 10 | | into the Bank and
Trust Company Fund shall be used: (i) | 11 | | to offset the ordinary administrative
expenses of the | 12 | | Secretary as defined in
this Section or (ii) as a | 13 | | credit against fees under paragraph (d-1) of this | 14 | | subsection (3). Nothing in this amendatory Act of 1979 | 15 | | shall prevent
continuing the practice of paying | 16 | | expenses involving salaries, retirement,
social | 17 | | security, and State-paid insurance premiums of State | 18 | | officers by
appropriations from the General Revenue | 19 | | Fund. However, the General Revenue
Fund shall be | 20 | | reimbursed for those payments made on and after July 1, | 21 | | 1979,
by an annual transfer of funds from the Bank and | 22 | | Trust Company Fund. Moneys in the Bank and Trust | 23 | | Company Fund may be transferred to the Professions | 24 | | Indirect Cost Fund, as authorized under Section | 25 | | 2105-300 of the Department of Professional Regulation | 26 | | Law of the Civil Administrative Code of Illinois.
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| 1 | | Notwithstanding provisions in the State Finance | 2 | | Act, as now or hereafter amended, or any other law to | 3 | | the contrary, the sum of $18,788,847 shall be | 4 | | transferred from the Bank and Trust Company Fund to the | 5 | | Financial Institutions Settlement of 2008 Fund on the | 6 | | effective date of this amendatory Act of the 95th | 7 | | General Assembly, or as soon thereafter as practical. | 8 | | Notwithstanding provisions in the State Finance | 9 | | Act, as now or hereafter amended, or any other law to | 10 | | the contrary, the Governor may, during any fiscal year | 11 | | through January 10, 2011, from time to time direct the | 12 | | State Treasurer and Comptroller to transfer a | 13 | | specified sum not exceeding 10% of the revenues to be | 14 | | deposited into the Bank and Trust Company Fund during | 15 | | that fiscal year from that Fund to the General Revenue | 16 | | Fund in order to help defray the State's operating | 17 | | costs for the fiscal year. Notwithstanding provisions | 18 | | in the State Finance Act, as now or hereafter amended, | 19 | | or any other law to the contrary, the total sum | 20 | | transferred during any fiscal year through January 10, | 21 | | 2011, from the Bank and Trust Company Fund to the | 22 | | General Revenue Fund pursuant to this provision shall | 23 | | not exceed during any fiscal year 10% of the revenues | 24 | | to be deposited into the Bank and Trust Company Fund | 25 | | during that fiscal year. The State Treasurer and | 26 | | Comptroller shall transfer the amounts designated |
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| 1 | | under this Section as soon as may be practicable after | 2 | | receiving the direction to transfer from the Governor.
| 3 | | (d-1) Adequate funds shall be available in the Bank | 4 | | and Trust
Company Fund to permit the timely payment of | 5 | | administration expenses. In
each fiscal year the total | 6 | | administration expenses shall be deducted from
the | 7 | | total fees collected by the Commissioner and the | 8 | | remainder transferred
into the Cash Flow Reserve | 9 | | Account, unless the balance of the Cash Flow
Reserve | 10 | | Account prior to the transfer equals or exceeds
| 11 | | one-fourth of the total initial appropriations from | 12 | | the Bank and Trust
Company Fund for the subsequent | 13 | | year, in which case the remainder shall be
credited to | 14 | | State banks and foreign banking corporations
and | 15 | | applied against their fees for the subsequent
year. The | 16 | | amount credited to each State bank and foreign banking | 17 | | corporation
shall be in the same proportion as the
Call | 18 | | Report Fees paid by each for the year bear to the total | 19 | | Call Report
Fees collected for the year. If, after a | 20 | | transfer to the Cash Flow Reserve
Account is made or if | 21 | | no remainder is available for transfer, the balance
of | 22 | | the Cash Flow Reserve Account is less than one-fourth | 23 | | of the total
initial appropriations for the subsequent | 24 | | year and the amount transferred
is less than 5% of the | 25 | | total Call Report Fees for the year, additional
amounts | 26 | | needed to make the transfer equal to 5% of the total |
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| 1 | | Call Report
Fees for the year shall be apportioned | 2 | | amongst, assessed upon, and
paid by the State banks and | 3 | | foreign banking corporations
in the same proportion | 4 | | that the Call Report Fees of each,
respectively, for | 5 | | the year bear to the total Call Report Fees collected | 6 | | for
the year. The additional amounts assessed shall be | 7 | | transferred into the
Cash Flow Reserve Account. For | 8 | | purposes of this paragraph (d-1), the
calculation of | 9 | | the fees collected by the Commissioner shall exclude | 10 | | the
receivership fees provided for in Section 5-10 of | 11 | | the Corporate Fiduciary Act.
| 12 | | (e) The Commissioner may upon request certify to | 13 | | any public record
in his keeping and shall have | 14 | | authority to levy a reasonable charge for
issuing | 15 | | certifications of any public record in his keeping.
| 16 | | (f) In addition to fees authorized elsewhere in | 17 | | this Act, the
Commissioner
may, in connection with a | 18 | | review, approval, or provision of a service, levy a
| 19 | | reasonable charge to recover the cost of the review, | 20 | | approval, or service.
| 21 | | (4) Nothing contained in this Act shall be construed to | 22 | | limit the
obligation relative to examinations and reports | 23 | | of any State bank, deposits
in which are to any extent | 24 | | insured by the United States or any agency
thereof, nor to | 25 | | limit in any way the powers of the Commissioner with
| 26 | | reference to examinations and reports of that bank.
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| 1 | | (5) The nature and condition of the assets in or | 2 | | investment of any
bonus, pension, or profit sharing plan | 3 | | for officers or employees of every
State bank or, after May | 4 | | 31, 1997, branch of an out-of-state bank shall be
deemed to | 5 | | be included in the affairs of that State
bank or branch of | 6 | | an out-of-state bank subject to examination by the
| 7 | | Commissioner under the
provisions of subsection (2) of this | 8 | | Section, and if the Commissioner
shall find from an | 9 | | examination that the condition of or operation
of the | 10 | | investments or assets of the plan is unlawful, fraudulent, | 11 | | or
unsafe, or that any trustee has abused his trust, the | 12 | | Commissioner
shall, if the situation so found by the | 13 | | Commissioner shall not be
corrected to his satisfaction | 14 | | within 60 days after the Commissioner has
given notice to | 15 | | the board of directors of the State bank or out-of-state
| 16 | | bank of his
findings, report the facts to the Attorney | 17 | | General who shall thereupon
institute proceedings against | 18 | | the State bank or out-of-state bank, the
board of directors
| 19 | | thereof, or the trustees under such plan as the nature of | 20 | | the case may require.
| 21 | | (6) The Commissioner shall have the power:
| 22 | | (a) To promulgate reasonable rules for the purpose | 23 | | of
administering the provisions of this Act.
| 24 | | (a-5) To impose conditions on any approval issued | 25 | | by the Commissioner
if he determines that the | 26 | | conditions are necessary or appropriate. These
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| 1 | | conditions shall be imposed in writing and shall | 2 | | continue
in effect for the period prescribed by the | 3 | | Commissioner.
| 4 | | (b) To issue orders
against any person, if the | 5 | | Commissioner has
reasonable cause to believe that an | 6 | | unsafe or unsound banking practice
has occurred, is | 7 | | occurring, or is about to occur, if any person has | 8 | | violated,
is violating, or is about to violate any law, | 9 | | rule, or written
agreement with the Commissioner, or
| 10 | | for the purpose of administering the provisions of
this | 11 | | Act and any rule promulgated in accordance with this | 12 | | Act.
| 13 | | (b-1) To enter into agreements with a bank | 14 | | establishing a program to
correct the condition of the | 15 | | bank or its practices.
| 16 | | (c) To appoint hearing officers to execute any of | 17 | | the powers granted to
the Commissioner under this | 18 | | Section for the purpose of administering this
Act and | 19 | | any rule promulgated in accordance with this Act
and | 20 | | otherwise to authorize, in writing, an officer or | 21 | | employee of the Office
of
Banks and Real Estate to | 22 | | exercise his powers under this Act.
| 23 | | (d) To subpoena witnesses, to compel their | 24 | | attendance, to administer
an oath, to examine any | 25 | | person under oath, and to require the production of
any | 26 | | relevant books, papers, accounts, and documents in the |
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| 1 | | course of and
pursuant to any investigation being | 2 | | conducted, or any action being taken,
by the | 3 | | Commissioner in respect of any matter relating to the | 4 | | duties imposed
upon, or the powers vested in, the | 5 | | Commissioner under the provisions of
this Act or any | 6 | | rule promulgated in accordance with this Act.
| 7 | | (e) To conduct hearings.
| 8 | | (7) Whenever, in the opinion of the Secretary, any | 9 | | director,
officer, employee, or agent of a State bank
or | 10 | | any subsidiary or bank holding company of the bank
or, | 11 | | after May 31, 1997, of any
branch of an out-of-state bank
| 12 | | or any subsidiary or bank holding company of the bank
shall | 13 | | have violated any law,
rule, or order relating to that bank
| 14 | | or any subsidiary or bank holding company of the bank, | 15 | | shall have
obstructed or impeded any examination or | 16 | | investigation by the Secretary, shall have engaged in an | 17 | | unsafe or
unsound practice in conducting the business of | 18 | | that bank
or any subsidiary or bank holding company of the | 19 | | bank,
or shall have
violated any law or engaged or | 20 | | participated in any unsafe or unsound practice
in | 21 | | connection with any financial institution or other | 22 | | business entity such that
the character and fitness of the | 23 | | director, officer, employee, or agent does not
assure | 24 | | reasonable promise of safe and sound operation of the State | 25 | | bank, the
Secretary
may issue an order of removal.
If, in | 26 | | the opinion of the Secretary, any former director, officer,
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| 1 | | employee,
or agent of a State bank
or any subsidiary or | 2 | | bank holding company of the bank, prior to the
termination | 3 | | of his or her service with
that bank
or any subsidiary or | 4 | | bank holding company of the bank, violated any law,
rule, | 5 | | or order relating to that
State bank
or any subsidiary or | 6 | | bank holding company of the bank, obstructed or impeded
any | 7 | | examination or investigation by the Secretary, engaged in | 8 | | an unsafe or unsound practice in conducting the
business of | 9 | | that bank
or any subsidiary or bank holding company of the | 10 | | bank,
or violated any law or engaged or participated in any
| 11 | | unsafe or unsound practice in connection with any financial | 12 | | institution or
other business entity such that the | 13 | | character and fitness of the director,
officer, employee, | 14 | | or agent would not have assured reasonable promise of safe
| 15 | | and sound operation of the State bank, the Secretary may | 16 | | issue an order
prohibiting that person from
further
service | 17 | | with a bank
or any subsidiary or bank holding company of | 18 | | the bank
as a director, officer, employee, or agent. An | 19 | | order
issued pursuant to this subsection shall be served | 20 | | upon the
director,
officer, employee, or agent. A copy of | 21 | | the order shall be sent to each
director of the bank | 22 | | affected by registered mail. A copy of
the order shall also | 23 | | be served upon the bank of which he is a director,
officer, | 24 | | employee, or agent, whereupon he shall cease to be a | 25 | | director,
officer, employee, or agent of that bank. The | 26 | | Secretary may
institute a civil action against the |
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| 1 | | director, officer, or agent of the
State bank or, after May | 2 | | 31, 1997, of the branch of the out-of-state bank
against | 3 | | whom any order provided for by this subsection (7) of
this | 4 | | Section 48 has been issued, and against the State bank or, | 5 | | after May 31,
1997, out-of-state bank, to enforce
| 6 | | compliance with or to enjoin any violation of the terms of | 7 | | the order.
Any person who has been the subject of an order | 8 | | of removal
or
an order of prohibition issued by the | 9 | | Secretary under
this subsection or Section 5-6 of the | 10 | | Corporate Fiduciary Act may not
thereafter serve as | 11 | | director, officer, employee, or agent of any State bank
or | 12 | | of any branch of any out-of-state bank,
or of any corporate | 13 | | fiduciary, as defined in Section 1-5.05 of the
Corporate
| 14 | | Fiduciary Act, or of any other entity that is subject to | 15 | | licensure or
regulation by the Division of Banking unless
| 16 | | the Secretary has granted prior approval in writing.
| 17 | | For purposes of this paragraph (7), "bank holding | 18 | | company" has the
meaning prescribed in Section 2 of the | 19 | | Illinois Bank Holding Company Act of
1957.
| 20 | | (8) The Commissioner may impose civil penalties of up | 21 | | to $100,000 against
any person for each violation of any | 22 | | provision of this Act, any rule
promulgated in accordance | 23 | | with this Act, any order of the Commissioner, or
any other | 24 | | action which in the Commissioner's discretion is an unsafe | 25 | | or
unsound banking practice.
| 26 | | (9) The Commissioner may impose civil penalties of up |
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| 1 | | to $100
against any person for the first failure to comply | 2 | | with reporting
requirements set forth in the report of | 3 | | examination of the bank and up to
$200 for the second and | 4 | | subsequent failures to comply with those reporting
| 5 | | requirements.
| 6 | | (10) All final administrative decisions of the | 7 | | Commissioner hereunder
shall be subject to judicial review | 8 | | pursuant to the provisions of the
Administrative Review | 9 | | Law. For matters involving administrative review,
venue | 10 | | shall be in either Sangamon County or Cook County.
| 11 | | (11) The endowment fund for the Illinois Bank | 12 | | Examiners' Education
Foundation shall be administered as | 13 | | follows:
| 14 | | (a) (Blank).
| 15 | | (b) The Foundation is empowered to receive | 16 | | voluntary contributions,
gifts, grants, bequests, and | 17 | | donations on behalf of the Illinois Bank
Examiners' | 18 | | Education Foundation from national banks and other | 19 | | persons for
the purpose of funding the endowment of the | 20 | | Illinois Bank Examiners'
Education Foundation.
| 21 | | (c) The aggregate of all special educational fees | 22 | | collected by the
Secretary and property received by the | 23 | | Secretary on behalf of the
Illinois Bank Examiners' | 24 | | Education Foundation under this subsection
(11) on or | 25 | | after June 30, 1986, shall be either (i) promptly paid | 26 | | after
receipt of the same, accompanied by a detailed |
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| 1 | | statement thereof, into the
State Treasury and shall be | 2 | | set apart in a special fund to be known as "The
| 3 | | Illinois Bank Examiners' Education Fund" to be | 4 | | invested by either the
Treasurer of the State of | 5 | | Illinois in the Public Treasurers' Investment
Pool or | 6 | | in any other investment he is authorized to make or by | 7 | | the Illinois
State Board of Investment as the State | 8 | | Banking Board of Illinois may direct or (ii) deposited | 9 | | into an account
maintained in a commercial bank or | 10 | | corporate fiduciary in the name of the
Illinois Bank | 11 | | Examiners' Education Foundation pursuant to the order | 12 | | and
direction of the Board of Trustees of the Illinois | 13 | | Bank Examiners' Education
Foundation.
| 14 | | (12) (Blank).
| 15 | | (13) The Secretary may borrow funds from the General | 16 | | Revenue Fund on behalf of the Bank and Trust Company Fund | 17 | | if the Director of Banking certifies to the Governor that | 18 | | there is an economic emergency affecting banking that | 19 | | requires a borrowing to provide additional funds to the | 20 | | Bank and Trust Company Fund. The borrowed funds shall be | 21 | | paid back within 3 years and shall not exceed the total | 22 | | funding appropriated to the Agency in the previous year. | 23 | | (14) In addition to the fees authorized in this Act, | 24 | | the Secretary may assess reasonable receivership fees | 25 | | against any State bank that does not maintain insurance | 26 | | with the Federal Deposit Insurance Corporation. All fees |
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| 1 | | collected under this subsection (14) shall be paid into the | 2 | | Non-insured Institutions Receivership account in the Bank | 3 | | and Trust Company Fund, as established by the Secretary. | 4 | | The fees assessed under this subsection (14) shall provide | 5 | | for the expenses that arise from the administration of the | 6 | | receivership of any such institution required to pay into | 7 | | the Non-insured Institutions Receivership account, whether | 8 | | pursuant to this Act, the Corporate Fiduciary Act, the | 9 | | Foreign Banking Office Act, or any other Act that requires | 10 | | payments into the Non-insured Institutions Receivership | 11 | | account. The Secretary may establish by rule a reasonable | 12 | | manner of assessing fees under this subsection (14). | 13 | | (Source: P.A. 97-333, eff. 8-12-11; 98-784, eff. 7-24-14.)
| 14 | | (205 ILCS 5/48.05)
| 15 | | Sec. 48.05. Regulatory fees. For the fiscal year beginning | 16 | | July 1, 2007 and every year thereafter, each state bank | 17 | | regulated by the Department shall pay a regulatory fee to the | 18 | | Department based upon its total assets as reflected in the most | 19 | | recent quarterly report of condition shown by its year-end Call | 20 | | Report at the following rates: | 21 | | 19.295˘ per $1,000 of the first $5,000,000 of total | 22 | | assets; | 23 | | 18.16˘ per $1,000 of the next $20,000,000 of total | 24 | | assets; | 25 | | 15.89˘ per $1,000 of the next $75,000,000 of total |
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| 1 | | assets; | 2 | | 10.7825˘ per $1,000 of the next $400,000,000 of total | 3 | | assets; | 4 | | 8.5125˘ per $1,000 of the next $500,000,000 of total | 5 | | assets; | 6 | | 6.2425˘ per $1,000 of the next $19,000,000,000 of total | 7 | | assets; | 8 | | 2.27˘ per $1,000 of the next $30,000,000,000 of total | 9 | | assets; | 10 | | 1.135˘ per $1,000 of the next $50,000,000,000 of total | 11 | | assets; and | 12 | | 0.5675˘ per $1,000 of all assets in excess of | 13 | | $100,000,000,000 of the state bank.
| 14 | | (Source: P.A. 95-1047, eff. 4-6-09.)
| 15 | | (205 ILCS 5/78) (from Ch. 17, par. 390)
| 16 | | Sec. 78. Board of banks and trust companies; creation, | 17 | | members, appointment.
There is created a Board which shall be | 18 | | known as the State Banking Board of
Illinois which shall | 19 | | consist of the Director of Banking, who shall be its chairman,
| 20 | | and 11 additional members. The Board shall be comprised of | 21 | | individuals interested in the banking industry. Two members | 22 | | shall be from State banks having total assets of not more than | 23 | | $75,000,000 at the time of their appointment; 2 members shall | 24 | | be from State banks having total assets of more than | 25 | | $75,000,000, but not more than $150,000,000 at the time of |
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| 1 | | their appointment; 2 members shall be from State banks having | 2 | | total assets of more than $150,000,000, but not more than | 3 | | $500,000,000 at the time of their appointment; 2 members shall | 4 | | be from State banks having total assets of more than | 5 | | $500,000,000, but not more than $2,000,000,000 at the time of | 6 | | their appointment, and one member shall be from a State bank | 7 | | having total assets of more than $2,000,000,000 at the time of | 8 | | his or her appointment. There shall be 2 public members, | 9 | | neither of whom shall be an officer or director of or owner, | 10 | | whether directly or indirectly, of more than 5% of the | 11 | | outstanding capital stock of any bank. Members of the State | 12 | | Banking Board of Illinois cease to be eligible to serve on the | 13 | | Board once they no longer meet the requirements of their | 14 | | original appointment; however, a member from a State bank shall | 15 | | not be disqualified solely due to a change in the bank's asset | 16 | | size.
| 17 | | (Source: P.A. 96-1163, eff. 1-1-11.)
| 18 | | Section 10. The Savings Bank Act is amended by changing | 19 | | Sections 9002.5, 10085, and 12201 as follows: | 20 | | (205 ILCS 205/9002.5) | 21 | | Sec. 9002.5. Regulatory fees. | 22 | | (a) For the fiscal year beginning July 1, 2007 and every | 23 | | year thereafter, each savings bank and each service corporation | 24 | | operating under this Act shall pay in quarterly installments |
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| 1 | | equal to one-fourth of a fixed fee of $520, plus a variable fee | 2 | | based on the total assets of the savings bank or service | 3 | | corporation , as shown in the quarterly report of condition, at | 4 | | the following rates: | 5 | | 24.97˘ per $1,000 of the first $2,000,000 of total | 6 | | assets; | 7 | | 22.70˘ per $1,000 of the next $3,000,000 of total | 8 | | assets; | 9 | | 20.43˘ per $1,000 of the next $5,000,000 of total | 10 | | assets; | 11 | | 17.025˘ per $1,000 of the next $15,000,000 of total | 12 | | assets; | 13 | | 14.755˘ per $1,000 of the next $25,000,000 of total | 14 | | assets; | 15 | | 12.485˘ per $1,000 of the next $50,000,000 of total | 16 | | assets; | 17 | | 10.215˘ per $1,000 of the next $400,000,000 of total | 18 | | assets; | 19 | | 6.81˘ per $1,000 of the next $500,000,000 of total | 20 | | assets; and | 21 | | 4.54˘ per $1,000 of all total assets in excess of | 22 | | $1,000,000,000 of such savings bank or service | 23 | | corporation. | 24 | | As used in this Section, "quarterly report of condition" | 25 | | means the Report of Condition and Income (Call Report), which | 26 | | the Secretary requires. |
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| 1 | | (b) (Blank). The Secretary shall receive and there shall be | 2 | | paid to the Secretary an additional fee as an adjustment to the | 3 | | supervisory fee, based upon the difference between the total | 4 | | assets of each savings bank and each service corporation as | 5 | | shown by its financial report filed with the Secretary for the | 6 | | reporting period of the calendar year ended December 31 on | 7 | | which the supervisory fee was based and the total assets of | 8 | | each savings bank and each service corporation as shown by its | 9 | | financial report filed with the Secretary for the reporting | 10 | | period of the calendar year ended December 31 in which the | 11 | | quarterly payments are made according to the following | 12 | | schedule: | 13 | | 24.97˘ per $1,000 of the first $2,000,000 of total | 14 | | assets; | 15 | | 22.70˘ per $1,000 of the next $3,000,000 of total | 16 | | assets; | 17 | | 20.43˘ per $1,000 of the next $5,000,000 of total | 18 | | assets; | 19 | | 17.025˘ per $1,000 of the next $15,000,000 of total | 20 | | assets; | 21 | | 14.755˘ per $1,000 of the next $25,000,000 of total | 22 | | assets; | 23 | | 12.485˘ per $1,000 of the next $50,000,000 of total | 24 | | assets; | 25 | | 10.215˘ per $1,000 of the next $400,000,000 of total | 26 | | assets; |
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| 1 | | 6.81˘ per $1,000 of the next $500,000,000 of total | 2 | | assets; and | 3 | | 4.54˘ per $1,000 of all total assets in excess of | 4 | | $1,000,000,000 of such savings bank or service | 5 | | corporation. | 6 | | (c) The Secretary shall receive and there shall be paid to | 7 | | the Secretary by each savings bank and each service corporation | 8 | | a fee of $520 for each approved branch office or facility | 9 | | office established under the Illinois Administrative Code. The | 10 | | determination of the fees shall be made annually as of the | 11 | | close of business of the prior calendar year ended December 31.
| 12 | | (d) The Secretary shall receive for each fiscal year, | 13 | | commencing with the fiscal year ending June 30, 2014, a | 14 | | contingent fee equal to the lesser of the aggregate of the fees | 15 | | paid by all savings banks under subsections (a), (b), and (c) | 16 | | of this Section for that year, or the amount, if any, whereby | 17 | | the aggregate of the administration expenses, as defined in | 18 | | subsection (c) of Section 9002.1 of this Act, for that fiscal | 19 | | year exceeds the sum of the aggregate of the fees payable by | 20 | | all savings banks for that year under subsections (a), (b), and | 21 | | (c) of this Section, plus any amounts transferred into the | 22 | | Savings Bank Regulatory Fund from the State Pensions Fund for | 23 | | that year, plus all other amounts collected by the Secretary | 24 | | for that year under any other provision of this Act. The | 25 | | aggregate amount of the contingent fee thus arrived at for any | 26 | | fiscal year shall be apportioned amongst, assessed upon, and |
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| 1 | | paid by the savings banks, respectively, in the same proportion | 2 | | that the fee of each under subsections (a), (b), and (c) of | 3 | | this Section, respectively, for that year bears to the | 4 | | aggregate for that year of the fees collected under subsections | 5 | | (a), (b), and (c) of this Section. The aggregate amount of the | 6 | | contingent fee, and the portion thereof to be assessed upon | 7 | | each savings bank, respectively, shall be determined by the | 8 | | Secretary and shall be paid by each, respectively, within 120 | 9 | | days of the close of the period for which the contingent fee is | 10 | | computed and is payable, and the Secretary shall give 20 days | 11 | | advance notice of the amount of the contingent fee payable by | 12 | | the savings bank and of the date fixed by the Secretary for | 13 | | payment of the fee. | 14 | | (Source: P.A. 98-1081, eff. 1-1-15 .) | 15 | | (205 ILCS 205/10085) | 16 | | Sec. 10085. Expenses and fees. | 17 | | (a) In addition to the fees authorized in this Act, the | 18 | | Secretary may assess reasonable receivership fees against any | 19 | | savings bank operating under this Act that does not maintain | 20 | | insurance with the Federal Deposit Insurance Corporation. All | 21 | | fees collected under this subsection (a) shall be paid into the | 22 | | Non-insured Institutions Receivership account in the Bank and | 23 | | Trust Company Fund, as established by the Secretary. The fees | 24 | | assessed under this subsection (a) shall provide for the | 25 | | expenses that arise from the administration of the receivership |
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| 1 | | of any such institution required to pay into the Non-insured | 2 | | Institutions Receivership account, whether pursuant to this | 3 | | Act, the Illinois Banking Act, the Corporate Fiduciary Act, the | 4 | | Foreign Banking Office Act, or any other Act that requires | 5 | | payments into the Non-insured Institutions Receivership | 6 | | account. | 7 | | (b) The Secretary may establish by rule a reasonable manner | 8 | | of assessing fees under subsection (a). | 9 | | (c) All expenses of a receivership, including reasonable | 10 | | receiver's and attorney's fees approved by the Secretary , shall | 11 | | be paid out of the assets of the savings bank. If the funds in | 12 | | the estate of the savings bank are insufficient to cover the | 13 | | expenses that arise from the administration of a receivership, | 14 | | the Secretary may pay such expenses from the Non-insured | 15 | | Institutions Receivership account. All expenses of any | 16 | | preliminary or other examination into the condition of any such | 17 | | savings bank or receivership and all expenses incident to and | 18 | | in connection with the possession and control of the bank and | 19 | | its assets for the purpose of examination, reorganization, or | 20 | | liquidation through receivership shall be paid out of the | 21 | | assets of the savings bank ; if such funds are insufficient, the | 22 | | Secretary may pay such expenses from the Non-insured | 23 | | Institutions Receivership account . The payment authorized | 24 | | under this subsection (c) Section may be made by the Secretary | 25 | | with moneys and property of the bank in his or her possession | 26 | | and control and shall have priority over all claims.
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| 1 | | (Source: P.A. 96-1365, eff. 7-28-10.) | 2 | | (205 ILCS 205/12201) | 3 | | Sec. 12201. Board of Savings Banks; appointment. The Board | 4 | | of Savings Bank is established pursuant to Section 12104 of | 5 | | this Act. The Board of Savings Banks shall be composed of the | 6 | | Director of Banking, who shall be its chairperson and have the | 7 | | power to vote, and 7 persons appointed by the Governor. Two of | 8 | | the 7 persons appointed by the Governor shall represent the | 9 | | public interest and the remainder shall have been engaged | 10 | | actively in savings bank or savings and loan management in this | 11 | | State for at least 5 years immediately prior to appointment. | 12 | | Each member of the Board appointed by the Governor shall be | 13 | | reimbursed for ordinary and necessary expenses incurred in | 14 | | attending the meetings of the Board. Members, excluding the | 15 | | chairperson, shall be appointed for 4-year terms to expire on | 16 | | the third Monday in January. Except as otherwise provided in | 17 | | this Section, members of the Board shall serve until their | 18 | | respective successors are appointed and qualified. A member who | 19 | | tenders a written resignation shall serve only until the | 20 | | resignation is accepted by the chairperson. A member who fails | 21 | | to attend 3 consecutive Board meetings without an excused | 22 | | absence shall no longer serve as a member. Members of the Board | 23 | | of Savings Banks cease to be eligible to serve on the Board | 24 | | once they no longer meet the requirements of their original | 25 | | appointment. The Governor shall fill any vacancy by the |
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| 1 | | appointment of a member for the unexpired term in the same | 2 | | manner as in the making of original appointments.
| 3 | | (Source: P.A. 98-1081, eff. 1-1-15 .)
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