205 ILCS 105/1-6

(205 ILCS 105/1-6) (from Ch. 17, par. 3301-6)

Sec. 1-6. General corporate powers. An association operating under this Act shall be a body corporate and politic and shall have all of the powers conferred by this Act including, but not limited to, the following powers:

(a) To sue and be sued, complain and defend in its corporate name, and to have a common seal, which it may alter or renew at pleasure;

(b) To obtain and maintain insurance of the association's withdrawable capital by an insurance corporation as defined in this Act;

(c) Notwithstanding anything to the contrary contained in this Act, to become a member of the Federal Home Loan Bank, and to have all of the powers granted to a savings or thrift institution organized under the laws of the United States and which is located and doing business in the State of Illinois, subject to regulations of the Commissioner;

(d) To act as a fiscal agent for the United States, the State of Illinois or any department, branch, arm or agency of the State or any unit of local government or school district in the State when duly designated for that purpose, and as agent to perform the reasonable functions as may be required of it;

(e) To become a member of or deal with any corporation or agency of the United States or the State of Illinois, to the extent that the agency assists in furthering or facilitating the association's purposes or powers and to that end to purchase stock or securities thereof or deposit money therewith, and to comply with any other conditions of membership or credit;

(f) To make donations in reasonable amounts for the public welfare or for charitable, scientific, religious or educational purposes;

(g) To adopt and operate reasonable insurance, bonus, profit sharing, and retirement plans for officers and employees; likewise, directors who are not officers, including, but not limited to, advisory, honorary, and emeritus directors, may participate in those plans;

(h) To reject any application for membership, to retire withdrawable capital by enforced retirement as provided in this Act and the by-laws, and to limit the issuance of or payments on withdrawable capital, subject, however, to contractual obligations;

(i) To purchase stock in service corporations and to invest in any form of indebtedness of any service corporation as defined in this Act, subject to regulations of the Commissioner;

(j) To purchase stock of a corporation whose principal purpose is to operate a safe deposit company or escrow service company;

(k) To act as Trustee or Custodian under the Federal Self-Employed Individuals' Tax Retirement Act of 1962 or any amendments thereto or any other retirement account and invest any funds held in such capacity in a savings account of the institution;

(l) (Blank);

(m) To establish, maintain and operate terminals as authorized by the Electronic Fund Transfer Act and by Section 5 of the Illinois Banking Act. The establishment, maintenance, operation and location of such terminals shall be subject to the approval of the Commissioner;

(n) Subject to the approval and regulations of the Commissioner, an association may purchase or assume all or any part of the assets or liabilities of an eligible insured bank;

(o) To purchase from a bank, as defined in Section 2 of the Illinois Banking Act, an insubstantial portion of the total deposits of an insured bank. For the purpose of this subparagraph, "insubstantial portion of the total deposits" shall have the same meaning as provided in Section 5(d)(2)(D) of the Federal Deposit Insurance Act;

(p) To effect an acquisition of or conversion to another financial institution pursuant to Section 205 of the Financial Institutions Reform, Recovery and Enforcement Act of 1989;

(q) To pledge its assets:

(1) to enable it to act as an agent for the sale of obligations of the United States;

(2) to secure deposits;

(3) to secure deposits of money whenever required by the National Bankruptcy Act;

(4) (Blank); and

(5) to secure trust funds commingled with the institution's funds, whether deposited by the institution or an affiliate of the institution, as required under Section 2-8 of the Corporate Fiduciary Act;

(r) To provide temporary periodic service to persons residing in a bona fide nursing home, senior citizens' retirement home, or long-term care facility;

(s) To purchase for its own account shares of stock of a bankers' bank, described in Section 13(b)(1) of the Illinois Banking Act, on the same terms and conditions as a bank may purchase such shares. In no event shall the total amount of such stock held by an association in such bankers' bank exceed 10% of its capital and surplus (including undivided profits) and in no event shall an association acquire more than 5% of any class of voting securities of such bankers' bank;

(t) To effect a conversion to a State bank pursuant to the provisions of the Illinois Banking Act;

(u) Subject to Article XLIV of the Illinois Insurance Code, to act as the agent for any fire, life, or other insurance company authorized by the State of Illinois, by soliciting and selling insurance and collecting premiums on policies issued by such company; and may receive for services so rendered such fees or commissions as may be agreed upon between the said association and the insurance company for which it may act as agent; provided, however, that no such association shall in any case assume or guarantee the payment of any premium on insurance policies issued through its agency by its principal; and provided further, that the association shall not guarantee the truth of any statement made by an assured in filing his application for insurance; and

(v) To exercise all powers necessary to qualify as a trustee or custodian under federal or State law, however, the authority to accept and execute trusts is subject to the Corporate Fiduciary Act and to the supervision of those activities by the Commissioner.

(Source: P.A. 91-97, eff. 7-9-99; 92-483, eff. 8-23-01.)