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Public Act 093-0965


 

Public Act 0965 93RD GENERAL ASSEMBLY



 


 
Public Act 093-0965
 
SB2710 Enrolled LRB093 19061 SAS 44796 b

    AN ACT concerning financial regulation.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Illinois Banking Act is amended by changing
Section 21.2 and by adding Section 21.4 as follows:
 
    (205 ILCS 5/21.2)
    Sec. 21.2. Interstate mergers; minimum age requirement.
    (a) No out of state bank and no national bank whose main
banking premises is located in a state other than Illinois
shall merge with or into, or shall acquire all or substantially
all of the assets of an Illinois bank that has existed and
continuously operated as a bank for 5 years or less.
    (b) For purposes of subsection (a) of this Section, an
Illinois bank that is the resulting bank following a merger
involving an Illinois interim bank shall be considered to have
been in existence and continuously operated during the
existence and continuous operation of the Illinois merged bank.
As used in this subsection (b), the words "interim bank" shall
mean a bank which shall not accept deposits, make loans, pay
checks, or engage in the general business of banking or any
part thereof, and is chartered solely for the purpose of
merging with or acquiring control of, or acquiring all or
substantially all of the assets of an existing Illinois bank.
    (c) The provisions of subsection (a) of the Section shall
not apply to the merger or acquisition of all or substantially
all of the assets of an Illinois bank:
        (1) if the merger or acquisition is part of a purchase
    or acquisition with respect to which the Federal Deposit
    Insurance Corporation provides assistance under Section
    13(c) of the Federal Deposit Insurance Act; or
        (2) if the Illinois bank is in default or in danger of
    default; or
        (3) if the out of state bank or national bank has its
    main banking premises in a state that is deemed to be
    reciprocal with Illinois and would be eligible to establish
    a branch pursuant to Section 21.4 of this Act.
(Source: P.A. 90-226, eff. 7-25-97.)
 
    (205 ILCS 5/21.4 new)
    Sec. 21.4. Out-of-state banks establishing branches.
    (a) No out-of-state bank and no national bank whose main
banking premises is located in a state other than Illinois
shall establish a branch in this State, other than a branch
authorized pursuant to Section 21.1 of this Act, unless:
        (1) the laws of the state in which such out-of-state
    bank or national bank has its main banking premises permit
    such out-of-state bank or national bank to establish a
    branch in this State;
        (2) such out-of-state bank or national bank has its
    main banking premises in a state that permits a State bank
    to establish a branch in that state pursuant to terms and
    conditions that are deemed to be reciprocal with the
    provisions of this Act; and
        (3) such out-of-state bank obtains a certificate of
    authority from, or provides notice to, the Commissioner as
    provided in subsection (b) of this Section.
    (b) Before such out-of-state bank may establish a branch in
this State, the out-of-state bank must obtain a certificate of
authority from the Commissioner. The out-of-state bank must
file an application for a certificate of authority on a form
prescribed by the Commissioner.
    The application for a certificate of authority shall not be
required if the state in which the out-of-state bank is
chartered permits a state bank to establish a branch in that
state without filing an application. An out-of-state bank
chartered in such a state may establish a branch in this State
pursuant to this Section after providing the Commissioner with
written notice. The Commissioner may prescribe the form of such
notice and may accept a copy of a notice or application
provided by the out-of-state bank to its chartering authority
or to its appropriate federal banking agency.
    (c) The determination of whether the laws of the state in
which such out-of-state bank or national bank has its main
banking premises are reciprocal with the provisions of this Act
shall be made in writing by the Commissioner. The Commissioner
shall not make a finding of reciprocity unless the Commissioner
determines that the laws of the other state permit a State bank
to establish a branch in such other state under terms and
conditions that are substantially similar to the provisions of
this Section. The Commissioner shall consider, at a minimum,
whether the laws of such other state discriminate in any way
against a State bank and whether the laws of such other state
impose administrative or regulatory burdens that are
substantially more restrictive than those imposed by this Act
on an out-of-state bank or national bank seeking to establish a
branch in this State.
    (d) After such out-of-state bank or national bank lawfully
establishes a branch in this State pursuant to the provisions
of this Section, such out-of-state bank or national bank may
establish and maintain additional branches in this State to the
same extent as a State bank. An out-of-state bank shall provide
written notice to the Commissioner of its intent to establish
an additional branch or branches in this State within 30 days
after receiving approval from the appropriate federal banking
agency to establish the branch or branches. The form of the
notice shall be specified by the Commissioner.
    (e) A branch of an out-of-state bank may not conduct any
activity that is not authorized for a State bank.
 
    Section 10. The Illinois Bank Holding Company Act of 1957
is amended by changing Section 3.071 as follows:
 
    (205 ILCS 10/3.071)  (from Ch. 17, par. 2510.01)
    Sec. 3.071. Out of state bank holding companies.
    (a) An out of state bank holding company may acquire
ownership of more than 5% of the voting shares of or control of
one or more Illinois banks or Illinois bank holding companies
pursuant to a transaction, occurrence or event that is
described in paragraphs (1) through (5) of subsection (a) of
Section 3.02, provided the acquisition is made in accordance
with Sections 3.02 and 3.07 of this Act in accordance with
subsection (i) of this Section and provided the following
conditions are met:
        (1) (Blank).
        (2) An out of state bank holding company seeking to
    acquire an Illinois bank or Illinois bank holding company
    pursuant to subsection (a) of Section 3.071 shall, if
    change in control of the bank is governed by Section 18 of
    the Illinois Banking Act, file with the Commissioner the
    application required by that Section containing
    information satisfactory to the Commissioner.
    (b) (Blank).
    (c) (Blank).
    (d) (Blank).
    (e) (Blank).
    (f) (Blank).
    (g) (Blank).
    (h) (Blank).
    (i) (1) An out of state bank holding company which directly
    or indirectly controls or has control over an Illinois bank
    that has existed and continuously operated as a bank for 5
    years or less, may not cause the Illinois bank to merge
    with or into, or to have all or substantially all of the
    assets acquired by a bank that is an out of state bank.
        (2) For purposes of subsection (i)(1) of this Section,
    an Illinois bank that is the resulting bank following a
    merger involving an Illinois interim bank shall be
    considered to have been in existence and continuously
    operated during the existence and continuous operation of
    the Illinois merged bank. As used in this subsection
    (i)(2), the words "resulting bank" and "merged bank" shall
    have the meanings ascribed to those words in Section 2 of
    the Illinois Banking Act. As used in this subsection
    (i)(2), the words "interim bank" shall mean a bank which
    shall not accept deposits, make loans, pay checks, or
    engage in the general business of banking or any part
    thereof, and is chartered solely for the purpose of merging
    with or acquiring control of, or acquiring all or
    substantially all of the assets of an existing Illinois
    bank.
        (3) The provisions of subsection (i)(1) of this Section
    shall not apply to the merger or acquisition of all or
    substantially all of the assets of an Illinois bank:
            (i) if the merger or acquisition is part of a
        purchase or acquisition with respect to which the
        Federal Deposit Insurance Corporation provides
        assistance under Section 13(c) of the Federal Deposit
        Insurance Act; or
            (ii) if the Illinois bank is in default or in
        danger of default. As used in this subsection
        (i)(3)(ii), the words "in default" and "in danger of
        default" shall have the meaning ascribed to those words
        in Section 2 of the Illinois Banking Act; or .
            (iii) if the bank with which the Illinois bank is
        being merged or that is acquiring all or substantially
        all of the assets of the Illinois bank has its main
        banking premises in a state that is deemed to be
        reciprocal with Illinois and would be eligible to
        establish a branch pursuant to Section 21.4 of the
        Illinois Banking Act.
(Source: P.A. 89-208, eff. 9-29-95; 89-567, eff. 7-26-96;
90-226, eff. 7-25-97; 90-655, eff. 7-30-98.)
 
    Section 15. The Savings Bank Act is amended by changing
Section 1006 and by adding Sections 1006.05 and 1007.130 as
follows:
 
    (205 ILCS 205/1006)  (from Ch. 17, par. 7301-6)
    Sec. 1006. Parity.
    (a) Subject to the regulation of the Commissioner and in
addition to the powers granted by this Act, each savings bank
operating under this Act shall possess those powers granted by
regulation promulgated under the Federal Deposit Insurance Act
for state savings banks.
    (b) A savings bank may establish branches or offices at
which savings or investments are regularly received or loans
approved as follows:
        (1) to the extent branch powers and offices are granted
    to State banks under the Illinois Banking Act;
        (2) within the geographic area defined in Article 2 of
    this Act and subject to the provisions of Article 2 of this
    Act;
        (3) within the same geographic areas or states as those
    states from which a holding company is permitted to acquire
    an Illinois savings bank or an Illinois savings bank
    holding company;
        (4) to the same extent that holding companies and
    savings and loan associations headquartered outside the
    State of Illinois are allowed to operate in Illinois by
    virtue of Articles 1A and 2B of the Illinois Savings and
    Loan Act of 1985;
        (5) as the result of mergers, consolidations, or bulk
    sales of facilities in the case of relocations; and .
        (6) to the extent an out-of-state savings bank has its
    main banking premises in a state that is reciprocal with
    Illinois and would be eligible to establish a branch
    pursuant to Section 1006.05 of this Act.
    (c) The Commissioner may adopt regulations that provide for
the establishment of branches as defined by the Commissioner.
    (d) Notwithstanding any other provision of this Act, a
savings bank that purchases or assumes all or any part of the
assets or liabilities of a bank, savings bank, or savings and
loan association or merges or consolidates with a bank, savings
bank, or savings and loan association may retain and maintain
the main premises or branches of the former bank, savings bank,
or savings and loan association as branches of the purchasing,
merging, or consolidating savings bank, provided it assumes the
deposit liabilities of the bank, savings bank, or savings and
loan association maintained at the main premises or branches.
    (e) A savings bank has any power reasonably incident,
convenient, or useful to the accomplishment of the powers
conferred upon the savings bank by this Act.
(Source: P.A. 89-74, eff. 6-30-95; 90-301, eff. 8-1-97; 90-665,
eff. 7-30-98.)
 
    (205 ILCS 205/1006.05 new)
    Sec. 1006.05. Out-of-state savings banks establishing
branches.
    (a) No out-of-state savings bank whose main banking
premises is located in a state other than Illinois shall
establish a branch in this State, other than a branch
authorized pursuant to any other provision of this Act, unless:
        (1) the laws of the state in which such out-of-state
    savings bank has its main banking premises permit the
    out-of-state savings bank to establish a branch in this
    State;
        (2) the out-of-state savings bank has its main banking
    premises in a state that permits an Illinois State savings
    bank to establish a branch in that state pursuant to terms
    and conditions that are deemed to be reciprocal with the
    provisions of this Act; and
        (3) the out-of-state savings bank obtains a
    certificate of authority from, or provides notice to, the
    Commissioner as provided in subsection (b) of this Section.
    (b) Before the out-of-state savings bank may establish a
branch in this State, the out-of-state savings bank must obtain
a certificate of authority from the Commissioner. The
out-of-state savings bank must file an application for a
certificate of authority on a form prescribed by the
Commissioner.
    The application for a certificate of authority shall not be
required if the state in which the out-of-state savings bank is
chartered permits an Illinois State savings bank to establish a
branch in that state without filing an application. An
out-of-state savings bank chartered in such a state may
establish a branch in this State pursuant to this Section after
providing the Commissioner with written notice. The
Commissioner may prescribe the form of such notice and may
accept a copy of a notice or application provided by the
out-of-state savings bank to its chartering authority.
    (c) The determination of whether the laws of the state in
which the out-of-state savings bank has its main banking
premises are reciprocal with the provisions of this Act shall
be made in writing by the Commissioner. The Commissioner shall
not make a finding of reciprocity unless the Commissioner
determines that the laws of the other state permit an Illinois
State savings bank to establish a branch in the other state
under terms and conditions that are substantially similar to
the provisions of this Section. The Commissioner shall
consider, at a minimum, whether the laws of the other state
discriminate in any way against an Illinois State savings bank
and whether the laws of the other state impose administrative
or regulatory burdens that are substantially more restrictive
than those imposed by this Act on an out-of-state savings bank
seeking to establish a branch in this State.
    (d) After the out-of-state savings bank lawfully
establishes a branch in this State pursuant to the provisions
of this Section, the out-of-state savings bank may establish
and maintain additional branches in this State to the same
extent as an Illinois State savings bank. An out-of-state
savings bank shall provide written notice to the Commissioner
of its intent to establish an additional branch or additional
branches in this State within 30 days after receiving approval
from its chartering authority or other appropriate regulatory
agency to establish the branch or branches. The form of the
notice shall be specified by the Commissioner.
    (e) A branch of an out-of-state savings bank may not
conduct any activity that is not authorized for an Illinois
State savings bank.
 
    (205 ILCS 205/1007.130 new)
    Sec. 1007.130. Out-of-state savings bank. "Out-of-state
savings bank" means a savings bank chartered under the laws of
a state other than Illinois, a territory of the United States,
or the District of Columbia.
 
    Section 99. Effective date. This Act takes effect upon
becoming law.

Effective Date: 8/20/2004