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90_SB0690
30 ILCS 235/1 from Ch. 85, par. 901
30 ILCS 235/2 from Ch. 85, par. 902
205 ILCS 5/18 from Ch. 17, par. 325
205 ILCS 5/21.2 new
205 ILCS 5/21.3 new
205 ILCS 10/3.071 from Ch. 17, par. 2510.01
205 ILCS 10/3.09 new
Amends the Public Funds Investment Act to require that
public funds must be invested in banks or savings
associations whose main banking premises are located in
Illinois. Amends the Illinois Banking Act to prohibit a
change in control if the persons seeking control would, after
obtaining control, control 30% or more of the deposits
located in this State. Provides that no state or national
bank whose main banking premises are located in another state
may merge into or acquire an Illinois bank that has operated
as a bank for 5 years or less. Amends the Illinois Bank
Holding Company Act of 1957 to restrict mergers with Illinois
banks that have operated for 5 years or less and are
controlled by an out of State bank. Prohibits combinations
that would result in control of 30% or more of the deposits
in Illinois. Effective immediately.
LRB9002795JScc
LRB9002795JScc
1 AN ACT concerning certain financial institutions,
2 amending named Acts.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Public Funds Investment Act is amended by
6 changing Sections 1 and 2 as follows:
7 (30 ILCS 235/1) (from Ch. 85, par. 901)
8 Sec. 1. Definitions. The words "public funds", as used in
9 this Act, mean current operating funds, special funds,
10 interest and sinking funds, and funds of any kind or
11 character belonging to or in the custody of any public
12 agency.
13 The words "public agency", as used in this Act, mean the
14 State of Illinois, the various counties, townships, cities,
15 towns, villages, school districts, educational service
16 regions, special road districts, public water supply
17 districts, fire protection districts, drainage districts,
18 levee districts, sewer districts, housing authorities, the
19 Illinois Bank Examiners' Education Foundation, the Chicago
20 Park District, and all other political corporations or
21 subdivisions of the State of Illinois, now or hereafter
22 created, whether herein specifically mentioned or not.
23 The words "Illinois bank", as used in this Act, mean any
24 insured savings association whose main banking premises are
25 located within the State of Illinois, any state bank, or any
26 national bank whose main banking premises are located within
27 the State of Illinois. For purposes of this Act the terms
28 "insured savings association", "state bank" and "main banking
29 premises" shall be as defined by Section 2 of the Illinois
30 Banking Act.
31 (Source: P.A. 87-968.)
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1 (30 ILCS 235/2) (from Ch. 85, par. 902)
2 Sec. 2. Authorized investments.
3 (a) Any public agency may invest any public funds as
4 follows:
5 (1) in bonds, notes, certificates of indebtedness,
6 treasury bills or other securities now or hereafter
7 issued, which are guaranteed by the full faith and credit
8 of the United States of America as to principal and
9 interest;
10 (2) in bonds, notes, debentures, or other similar
11 obligations of the United States of America or its
12 agencies;
13 (3) in interest-bearing savings accounts,
14 interest-bearing certificates of deposit or
15 interest-bearing time deposits or any other investments
16 constituting direct obligations of any Illinois bank as
17 defined by the Illinois Banking Act;
18 (4) in short term obligations of corporations
19 organized in the United States with assets exceeding
20 $500,000,000 if (i) such obligations are rated at the
21 time of purchase at one of the 3 highest classifications
22 established by at least 2 standard rating services and
23 which mature not later than 180 days from the date of
24 purchase, (ii) such purchases do not exceed 10% of the
25 corporation's outstanding obligations and (iii) no more
26 than one-third of the public agency's funds may be
27 invested in short term obligations of corporations; or
28 (5) in money market mutual funds registered under
29 the Investment Company Act of 1940, provided that the
30 portfolio of any such money market mutual fund is limited
31 to obligations described in paragraph (1) or (2) of this
32 subsection and to agreements to repurchase such
33 obligations.
34 (a-1) In addition to any other investments authorized
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1 under this Act, a municipality may invest its public funds in
2 interest bearing bonds of any county, township, city,
3 village, incorporated town, municipal corporation, or school
4 district. The bonds shall be registered in the name of the
5 municipality or held under a custodial agreement at a bank.
6 The bonds shall be rated at the time of purchase within the 4
7 highest general classifications established by a rating
8 service of nationally recognized expertise in rating bonds of
9 states and their political subdivisions.
10 (b) Investments may be made only in banks which are
11 insured by the Federal Deposit Insurance Corporation. Any
12 public agency may invest any public funds in short term
13 discount obligations of the Federal National Mortgage
14 Association or in shares or other forms of securities legally
15 issuable by Illinois banks savings banks or savings and loan
16 associations incorporated under the laws of this State or any
17 other state or under the laws of the United States.
18 Investments may be made only in those savings banks or
19 savings and loan associations the shares, or investment
20 certificates of which are insured by the Federal Deposit
21 Insurance Corporation. Any such securities may be purchased
22 at the offering or market price thereof at the time of such
23 purchase. All such securities so purchased shall mature or be
24 redeemable on a date or dates prior to the time when, in the
25 judgment of such governing authority, the public funds so
26 invested will be required for expenditure by such public
27 agency or its governing authority. The expressed judgment of
28 any such governing authority as to the time when any public
29 funds will be required for expenditure or be redeemable is
30 final and conclusive. Any public agency may invest any
31 public funds in dividend-bearing share accounts, share
32 certificate accounts or class of share accounts of a credit
33 union chartered under the laws of this State or the laws of
34 the United States; provided, however, the principal office of
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1 any such credit union must be located within the State of
2 Illinois. Investments may be made only in those credit
3 unions the accounts of which are insured by applicable law.
4 (c) For purposes of this Section, the term "agencies of
5 the United States of America" includes: (i) the federal land
6 banks, federal intermediate credit banks, banks for
7 cooperative, federal farm credit banks, or any other entity
8 authorized to issue debt obligations under the Farm Credit
9 Act of 1971 (12 U.S.C. 2001 et seq.) and Acts amendatory
10 thereto; (ii) the federal home loan banks and the federal
11 home loan mortgage corporation; and (iii) any other agency
12 created by Act of Congress.
13 (d) Except for pecuniary interests permitted under
14 subsection (f) of Section 3-14-4 of the Illinois Municipal
15 Code or under Section 3.2 of the Public Officer Prohibited
16 Practices Act, no person acting as treasurer or financial
17 officer or who is employed in any similar capacity by or for
18 a public agency may do any of the following:
19 (1) have any interest, directly or indirectly, in
20 any investments in which the agency is authorized to
21 invest.
22 (2) have any interest, directly or indirectly, in
23 the sellers, sponsors, or managers of those investments.
24 (3) receive, in any manner, compensation of any
25 kind from any investments in which the agency is
26 authorized to invest.
27 (e) Any public agency may also invest any public funds
28 in a Public Treasurers' Investment Pool created under Section
29 17 of the State Treasurer Act. Any public agency may also
30 invest any public funds in a fund managed, operated, and
31 administered by a bank, subsidiary of a bank, or subsidiary
32 of a bank holding company or use the services of such an
33 entity to hold and invest or advise regarding the investment
34 of any public funds.
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1 (f) To the extent a public agency has custody of funds
2 not owned by it or another public agency and does not
3 otherwise have authority to invest such funds, the public
4 agency may invest such funds as if they were its own. Such
5 funds must be released to the appropriate person at the
6 earliest reasonable time, but in no case exceeding 31 days,
7 after the private person becomes entitled to the receipt of
8 them. All earnings accruing on any investments or deposits
9 made pursuant to the provisions of this Act shall be credited
10 to the public agency by or for which such investments or
11 deposits were made, except as provided otherwise in Section
12 4.1 of the State Finance Act or the Local Governmental Tax
13 Collection Act, and except where by specific statutory
14 provisions such earnings are directed to be credited to and
15 paid to a particular fund.
16 (g) A public agency may purchase or invest in repurchase
17 agreements of government securities having the meaning set
18 out in the Government Securities Act of 1986 subject to the
19 provisions of said Act and the regulations issued thereunder.
20 The government securities, unless registered or inscribed in
21 the name of the public agency, shall be purchased through
22 banks or trust companies authorized to do business in the
23 State of Illinois.
24 (h) Except for repurchase agreements of government
25 securities which are subject to the Government Securities Act
26 of 1986, no public agency may purchase or invest in
27 instruments which constitute repurchase agreements, and no
28 financial institution may enter into such an agreement with
29 or on behalf of any public agency unless the instrument and
30 the transaction meet the following requirements:
31 (1) The securities, unless registered or inscribed
32 in the name of the public agency, are purchased through
33 banks or trust companies authorized to do business in the
34 State of Illinois.
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1 (2) An authorized public officer after ascertaining
2 which firm will give the most favorable rate of interest,
3 directs the custodial bank to "purchase" specified
4 securities from a designated institution. The "custodial
5 bank" is the bank or trust company, or agency of
6 government, which acts for the public agency in
7 connection with repurchase agreements involving the
8 investment of funds by the public agency. The State
9 Treasurer may act as custodial bank for public agencies
10 executing repurchase agreements. To the extent the
11 Treasurer acts in this capacity, he is hereby authorized
12 to pass through to such public agencies any charges
13 assessed by the Federal Reserve Bank.
14 (3) A custodial bank must be a member bank of the
15 Federal Reserve System or maintain accounts with member
16 banks. All transfers of book-entry securities must be
17 accomplished on a Reserve Bank's computer records through
18 a member bank of the Federal Reserve System. These
19 securities must be credited to the public agency on the
20 records of the custodial bank and the transaction must be
21 confirmed in writing to the public agency by the
22 custodial bank.
23 (4) Trading partners shall be limited to banks or
24 trust companies authorized to do business in the State of
25 Illinois or to registered primary reporting dealers.
26 (5) The security interest must be perfected.
27 (6) The public agency enters into a written master
28 repurchase agreement which outlines the basic
29 responsibilities and liabilities of both buyer and
30 seller.
31 (7) Agreements shall be for periods of 330 days or
32 less.
33 (8) The authorized public officer of the public
34 agency informs the custodial bank in writing of the
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1 maturity details of the repurchase agreement.
2 (9) The custodial bank must take delivery of and
3 maintain the securities in its custody for the account of
4 the public agency and confirm the transaction in writing
5 to the public agency. The Custodial Undertaking shall
6 provide that the custodian takes possession of the
7 securities exclusively for the public agency; that the
8 securities are free of any claims against the trading
9 partner; and any claims by the custodian are subordinate
10 to the public agency's claims to rights to those
11 securities.
12 (10) The obligations purchased by a public agency
13 may only be sold or presented for redemption or payment
14 by the fiscal agent bank or trust company holding the
15 obligations upon the written instruction of the public
16 agency or officer authorized to make such investments.
17 (11) The custodial bank shall be liable to the
18 public agency for any monetary loss suffered by the
19 public agency due to the failure of the custodial bank to
20 take and maintain possession of such securities.
21 (i) Notwithstanding the foregoing restrictions on
22 investment in instruments constituting repurchase agreements
23 the Illinois Housing Development Authority may invest in, and
24 any financial institution with capital of at least
25 $250,000,000 may act as custodian for, instruments that
26 constitute repurchase agreements, provided that the Illinois
27 Housing Development Authority, in making each such
28 investment, complies with the safety and soundness guidelines
29 for engaging in repurchase transactions applicable to
30 federally insured banks, savings banks, savings and loan
31 associations or other depository institutions as set forth in
32 the Federal Financial Institutions Examination Council Policy
33 Statement Regarding Repurchase Agreements and any regulations
34 issued, or which may be issued by the supervisory federal
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1 authority pertaining thereto and any amendments thereto;
2 provided further that the securities shall be either (i)
3 direct general obligations of, or obligations the payment of
4 the principal of and/or interest on which are unconditionally
5 guaranteed by, the United States of America or (ii) any
6 obligations of any agency, corporation or subsidiary thereof
7 controlled or supervised by and acting as an instrumentality
8 of the United States Government pursuant to authority granted
9 by the Congress of the United States and provided further
10 that the security interest must be perfected by either the
11 Illinois Housing Development Authority, its custodian or its
12 agent receiving possession of the securities either
13 physically or transferred through a nationally recognized
14 book entry system.
15 (j) In addition to all other investments authorized
16 under this Section, a community college district may invest
17 public funds in any mutual funds that invest primarily in
18 corporate investment grade or global government short term
19 bonds. Purchases of mutual funds that invest primarily in
20 global government short term bonds shall be limited to funds
21 with assets of at least $100 million and that are rated at
22 the time of purchase as one of the 10 highest classifications
23 established by a recognized rating service. The investments
24 shall be subject to approval by the local community college
25 board of trustees. Each community college board of trustees
26 shall develop a policy regarding the percentage of the
27 college's investment portfolio that can be invested in such
28 funds.
29 (Source: P.A. 87-288; 87-940; 87-1098; 88-45; 88-355; 88-555,
30 eff. 7-27-94.)
31 Section 10. The Illinois Banking Act is amended by
32 changing Section 18 and adding Sections 21.2 and 21.3 as
33 follows:
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1 (205 ILCS 5/18) (from Ch. 17, par. 325)
2 Sec. 18. Change in control.
3 (a) Before a change may occur in the ownership of
4 outstanding stock of any State bank, whether by sale and
5 purchase, gift, bequest or inheritance, or any other means,
6 including the acquisition of stock of the State bank by any
7 bank holding company, which will result in control or a
8 change in the control of the bank or before a change in the
9 control of a holding company having control of the
10 outstanding stock of a State bank whether by sale and
11 purchase, gift, bequest or inheritance, or any other means,
12 including the acquisition of stock of such holding company by
13 any other bank holding company, which will result in control
14 or a change in control of the bank or holding company, or
15 before a transfer of substantially all the assets or
16 liabilities of the State bank, the Commissioner shall be of
17 the opinion and find:
18 (1) that the general character of its proposed
19 management, after the change in control, is such as to
20 assure reasonable promise of successful, safe and sound
21 operation;
22 (1.1) that depositors' interests will not be
23 jeopardized by the purchase or assumption and that
24 adequate provision has been made for all liabilities as
25 required for a voluntary liquidation under Section 68 of
26 this Act;
27 (2) that the future earnings prospects, after the
28 proposed change in control, are favorable;
29 (3) that any prior involvement by the persons
30 proposing to obtain control, to purchase substantially
31 all the assets, or to assume substantially all the
32 liabilities of the State bank or by the proposed
33 management personnel with any other financial
34 institution, whether as stockholder, director, officer or
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1 customer, was conducted in a safe and sound manner; and
2 (4) that if the acquisition is being made by a bank
3 holding company, the acquisition is authorized under the
4 Illinois Bank Holding Company Act of 1957.
5 (b) Persons desiring to purchase control of an existing
6 state bank, to purchase substantially all the assets, or to
7 assume substantially all the liabilities of the State bank
8 shall, prior to that purchase, submit to the Commissioner:
9 (1) a statement of financial worth;
10 (2) satisfactory evidence that any prior
11 involvement by the persons and the proposed management
12 personnel with any other financial institution, whether
13 as stockholder, director, officer or customer, was
14 conducted in a safe and sound manner; and
15 (3) such other relevant information as the
16 Commissioner may request to substantiate the findings
17 under subsection (a) of this Section.
18 As used in this Section, the term "control" means the
19 ownership of such amount of stock or ability to direct the
20 voting of such stock as to give power to, directly or
21 indirectly, direct or cause the direction of the management
22 or policies of the bank. A change in ownership of stock
23 which would result in direct or indirect ownership by a
24 stockholder, an affiliated group of stockholders or a holding
25 company of less than 10 percent of the outstanding stock
26 shall not be considered a change of control. A change in
27 ownership of stock which would result in direct or indirect
28 ownership by a stockholder, an affiliated group of
29 stockholders or a holding company of 20 percent or such
30 lesser amount which would entitle the holder by applying
31 cumulative voting to elect one director shall be presumed to
32 constitute a change of control for purposes of this Section
33 18. If there is any doubt as to whether a change in the
34 ownership or control of the outstanding stock is sufficient
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1 to result in obtaining control thereof or to effect a change
2 in the control thereof, such doubt shall be resolved in favor
3 of reporting the facts to the Commissioner.
4 As used in this Section, "substantially all" the assets
5 or liabilities of a State bank means that portion of the
6 assets or liabilities of a State bank such that their
7 purchase or transfer will materially impair the ability of
8 the State bank to continue successful, safe, and sound
9 operations or to continue as a going concern or would cause
10 the bank to lose its federal deposit insurance.
11 (b-1) Any person who obtains ownership of stock of an
12 existing State bank or stock of a holding company that
13 controls the State bank by gift, bequest, or inheritance such
14 that ownership of the stock would constitute control of the
15 State bank or holding company may obtain title and ownership
16 of the stock, but may not exercise management or control of
17 the business and affairs of the bank or vote his or her
18 shares so as to exercise management or control unless and
19 until the Commissioner approves an application for the change
20 of control as provided in subsection (b) of this Section.
21 (c) Whenever a state bank makes a loan or loans,
22 secured, or to be secured, by 25% or more of the outstanding
23 stock of a state bank, the president or other chief executive
24 officer of the lending bank shall promptly report such fact
25 to the Commissioner upon obtaining knowledge of such loan or
26 loans, except that no report need be made in those cases
27 where the borrower has been the owner of record of the stock
28 for a period of one year or more, or the stock is that of a
29 newly organized bank prior to its opening.
30 (d) The reports required by subsections (b) and (c) of
31 this Section 18, other than those relating to a transfer of
32 assets or assumption of liabilities, shall contain the
33 following information to the extent that it is known by the
34 person making the report: (1) the number of shares involved;
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1 (2) the names of the sellers (or transferors); (3) the names
2 of the purchasers (or transferees); (4) the names of the
3 beneficial owners if the shares are registered in another
4 name: (5) the purchase price, if applicable; (6) the total
5 number of shares owned by the sellers (or transferors), the
6 purchasers (or transferees) and the beneficial owners both
7 immediately before and after the transaction; and, (7) in the
8 case of a loan, the name of the borrower, the amount of the
9 loan, the name of the bank issuing the stock securing the
10 loan and the number of shares securing the loan. In addition
11 to the foregoing, such reports shall contain such other
12 information which is requested by the Commissioner to inform
13 the Commissioner of the effect of the transaction upon
14 control of the bank whose stock is involved.
15 (d-1) The reports required by subsection (b) of this
16 Section 18 that relate to purchase of assets and assumption
17 of liabilities shall contain the following information to the
18 extent that it is known by the person making the report: (1)
19 the value, amount, and description of the assets transferred;
20 (2) the amount, type, and to whom each type of liabilities
21 are owed; (3) the names of the purchasers (or transferees);
22 (4) the names of the beneficial owners if the shares of a
23 purchaser or transferee are registered in another name; (5)
24 the purchase price, if applicable; and, (6) in the case of a
25 loan obtained to effect a purchase, the name of the borrower,
26 the amount and terms of the loan, and the description of the
27 assets securing the loan. In addition to the foregoing,
28 these reports shall contain any other information that is
29 requested by the Commissioner to inform the Commissioner of
30 the effect of the transaction upon the bank from which assets
31 are purchased or liabilities are transferred.
32 (e) Whenever such a change as described in subsection
33 (a) of this Section 18 occurs, each state bank shall report
34 promptly to the Commissioner any changes or replacement of
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1 its chief executive officer or of any director occurring in
2 the next 12 month period, including in its report a statement
3 of the past and current business and professional
4 affiliations of the new chief executive officer or directors.
5 (f) (Blank).
6 (g) (1) Except as otherwise expressly provided in this
7 subsection (g), the Commissioners shall not approve an
8 application for a change in control if upon consummation
9 of the change in control the persons applying for the
10 change in control, including any affiliates of the
11 persons applying, would control 30% or more of the total
12 amount of deposits which are located in this State at
13 insured depository institutions. For purposes of this
14 subsection (g), the words "insured depository
15 institution" shall mean State banks, national banks, and
16 insured savings associations. For purposes of this
17 subsection (g), the word "deposits" shall have the
18 meaning ascribed to that word in Section 3(1) of the
19 Federal Deposit Insurance Act. For purposes of this
20 subsection (g), the total amount of deposits which are
21 considered to be located in this State at insured
22 depository institutions shall equal the sum of all
23 deposits held at the main banking premises and branches
24 in the State of Illinois of State banks, national banks,
25 or insured savings associations. For purposes of this
26 subsection (g), the word "affiliates" shall have the
27 meaning ascribed to that word in Section 35.2 of this
28 Act.
29 (2) Notwithstanding the provisions of subsection
30 (g)(1) of this Section, the Commissioner may approve an
31 application for a change in control for a bank that is in
32 default or in danger of default. Except in those
33 instances in which an application for a change in control
34 is for a bank that is in default or in danger of default,
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1 the Commissioner may not approve a change in control
2 which does not meet the requirements of subsection (g)(1)
3 of this Section. The Commissioner may not waive the
4 provisions of subsection (g)(1) of this Section, whether
5 pursuant to Section 3(d) of the federal Bank Holding
6 Company Act of 1956 or Section 44(d) of the Federal
7 Deposit Insurance Act, except as expressly provided in
8 this subsection (g)(2).
9 (Source: P.A. 88-546; 89-567, eff. 7-26-96.)
10 (205 ILCS 5/21.2 new)
11 Sec. 21.2. Interstate mergers; minimum age requirement.
12 (a) No out of state bank and no national bank whose main
13 banking premises is located in a state other than Illinois
14 shall merge with or into, or shall acquire all or
15 substantially all of the assets of an Illinois bank that has
16 existed and continuously operated as a bank for 5 years or
17 less.
18 (b) For purposes of subsection (a) of this Section, an
19 Illinois bank that is the resulting bank following a merger
20 involving an Illinois interim bank shall be considered to
21 have been in existence and continuously operated during the
22 existence and continuous operation of the Illinois merged
23 bank. As used in this subsection (b), the words "interim
24 bank" shall mean a bank which shall not accept deposits, make
25 loans, pay checks, or engage in the general business of
26 banking or any part thereof, and is chartered solely for the
27 purpose of merging with or acquiring control of, or acquiring
28 all or substantially all of the assets of an existing
29 Illinois bank.
30 (c) The provisions of subsection (a) of the Section
31 shall not apply to the merger or acquisition of all or
32 substantially all of the assets of an Illinois bank:
33 (1) if the merger or acquisition is part of a
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1 purchase or acquisition with respect to which the Federal
2 Deposit Insurance Corporation provides assistance under
3 Section 13(c) of the Federal Deposit Insurance Act; or
4 (2) if the Illinois bank is in default or in danger
5 of default.
6 (205 ILCS 5/21.3 new)
7 Sec. 21.3. Mergers; deposit concentration limits.
8 (a) Except as otherwise expressly provided in this
9 Section, no bank shall merge with or into or acquire control
10 of, or acquire all or substantially all of the assets of, a
11 State bank or a national bank whose main banking premises is
12 located in Illinois if, upon consummation of the merger or
13 acquisition, the bank, including any affiliates of the bank,
14 would control 30% or more of the total amount of deposits
15 which are located in this State at insured depository
16 institutions. For purposes of this subsection (a) the words
17 "insured depository institution" shall means State banks,
18 national banks, and insured savings associations. For
19 purposes of this subsection (a), the word "deposits" shall
20 have the meaning ascribed to that word in Section (3)(1) of
21 the Federal Deposit Insurance Act. For purposes of this
22 subsection (a), the total amount of deposits which are
23 considered to be located in this State at insured depository
24 institutions shall equal the sum of all deposits held at the
25 main banking premises and branches in the State of Illinois
26 of State banks, national banks, and insured savings
27 associations. For purposes of this Section, the word
28 "affiliates" shall have the meaning ascribed to that word in
29 Section 35.2 of this Act.
30 (b) Notwithstanding the provisions of subsection (a) of
31 this Section, the Commissioner or the appropriate federal
32 banking agency may approve a merger or acquisition of a bank
33 that is in default or in danger of default. The provisions of
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1 subsection (a) of this Section may not be waived, whether
2 pursuant to Section 3(d) of the federal Bank Holding Company
3 Act of 1956 or Section 44(d) of the federal Deposit Insurance
4 Act, except as expressly provided in this subsection (b).
5 Section 15. The Illinois Bank Holding Company Act of 1957
6 is amended by changing Section 3.071 and adding Section 3.09
7 as follows:
8 (205 ILCS 10/3.071) (from Ch. 17, par. 2510.01)
9 Sec. 3.071. Out of state bank holding companies.
10 (a) An out of state bank holding company may acquire
11 ownership of more than 5% of the voting shares of or control
12 of one or more Illinois banks or Illinois bank holding
13 companies pursuant to a transaction, occurrence or event that
14 is described in paragraphs (1) through (5) of subsection (a)
15 of Section 3.02, provided the acquisition is made in
16 accordance with Sections 3.02 and 3.07 of this Act in
17 accordance with subsection (i) of this Section and provided
18 the following conditions are met:
19 (1) (Blank).
20 (2) An out of state bank holding company seeking to
21 acquire an Illinois bank or Illinois bank holding company
22 pursuant to subsection (a) of Section 3.071 shall, if
23 change in control of the bank is governed by Section 18
24 of the Illinois Banking Act, file with the Commissioner
25 the application required by that Section containing
26 information satisfactory to the Commissioner.
27 (b) (Blank).
28 (c) (Blank).
29 (d) (Blank).
30 (e) (Blank).
31 (f) (Blank).
32 (g) (Blank).
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1 (h) (Blank).
2 (i) (1) An out of state bank holding company which
3 directly or indirectly controls or has control over an
4 Illinois bank that has existed and continuously operated
5 as a bank for 5 years or less, may not cause the Illinois
6 bank to merge with or into, or to have all or
7 substantially all of the assets acquired by a bank that
8 is an out of state bank.
9 (2) For purposes of subsection (i)(1) of this
10 Section, an Illinois bank that is the resulting bank
11 following a merger involving an Illinois interim bank
12 shall be considered to have been in existence and
13 continuously operated during the existence and continuous
14 operation of the Illinois merged bank. As used in this
15 subsection (i)(2), the words "resulting bank" and "merged
16 bank" shall have the meanings ascribed to those words in
17 Section 2 of the Illinois Banking Act. As used in this
18 subsection (i)(2), the words "interim bank" shall mean a
19 bank which shall not accept deposits, make loans, pay
20 checks, or engage in the general business of banking or
21 any part thereof, and is chartered solely for the purpose
22 of merging with or acquiring control of, or acquiring all
23 or substantially all of the assets of an existing
24 Illinois bank.
25 (3) The provisions of subsection (i)(1) of this
26 Section shall not apply to the merger or acquisition of
27 all or substantially all of the assets of an Illinois
28 bank:
29 (i) if the merger of acquisition is part of a
30 purchase or acquisition with respect to which the
31 Federal Deposit Insurance Corporation provides
32 assistance under Section 13(c) of the Federal
33 Deposit Insurance Act; or
34 (ii) if the Illinois bank is in default or in
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1 danger of default. As used in this subsection
2 (i)(3), (ii) the words "in default" and "in danger
3 of default" shall have the meaning ascribed to those
4 words in Section 2 of the Illinois Banking Act.
5 (Source: P.A. 88-546; 89-208, eff. 9-29-95; 89-567, eff.
6 7-26-96.)
7 (205 ILCS 10/3.09 new)
8 Sec. 3.09. Acquisition; deposit concentration limits.
9 (a) Except as otherwise expressly provided in this
10 Section, no bank holding company shall acquire control of, or
11 acquire all or substantially all of the assets of a State
12 bank or a national bank whose main banking premises is
13 located in Illinois if, upon consummation of acquisition, the
14 bank holding company, including affiliates of the bank
15 holding company, would control 30% or more of the total
16 amount of deposits which are located in this State at insured
17 depository institutions. For purposes of this Section the
18 words "insured depository institutions" shall mean State
19 banks, national banks, and insured savings associations. For
20 purposes of this Section, the word "deposits" shall have the
21 meaning ascribed to that word in Section 3(1) of the Federal
22 Deposit Insurance Act. For purposes of this Section, the
23 total amount of deposits which are considered to be located
24 in this State at insured depository institutions shall equal
25 the sum of all deposits held at the main banking premises and
26 branches in the State of Illinois of State banks, national
27 banks, and insured savings associations. For purposes of this
28 Section the word "affiliates" shall have the meaning ascribed
29 to that word in Section 35.2 of the Illinois Banking Act.
30 (b) Notwithstanding the provisions of subsection (a) of
31 this Section, the Commissioner or the appropriate federal
32 banking agency may approve an acquisition of a bank that is
33 in default or in danger of default. The provisions of
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1 subsection (a) of this Section may not be waived, whether
2 pursuant to Section 3(d) of the federal Bank Holding Company
3 Act of 1956 or Section 44(d) of the Federal Deposit Insurance
4 Act, except as expressly provided in this subsection (b).
5 Section 99. Effective date. This Act takes effect upon
6 becoming law.