(205 ILCS 205/5007) (from Ch. 17, par. 7305-7)
Sec. 5007.
Capital Maintenance.
(a) Each savings bank shall maintain total capital of not
less than 3% of total assets. This standard is the minimum
acceptable for a savings bank whose overall financial condition is
fundamentally sound and that is well managed. When the
Commissioner determines that the financial condition or history,
management, or earnings prospects are not adequate, the
Commissioner may determine that a higher minimum capital level is
required for the savings bank.
(b) A savings bank shall maintain total capital necessary to
ensure the continuation of insurance of its deposit accounts by the
insurance corporation.
(c) The board of directors may establish and maintain
special reserves, as they may deem advisable, to provide for losses
or liabilities. Losses may be charged to those reserves as the board
of directors may determine.
(d) Any savings bank with total capital less than 3% of total
assets shall be deemed to be operating in an unsafe and unsound
condition and shall be subject to the imposition of restrictions,
sanctions, or penalties as provided for under this Act.
(Source: P.A. 86-1213.)
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