TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER II: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 396
CORPORATE FIDUCIARY APPLICATIONS AND NOTICES
SECTION 396.5 PURPOSE
Section 396.5 Purpose
The Office of Banks and Real
Estate is authorized to promulgate rules setting the terms and conditions for
approval of corporate fiduciary applications and notices. The purpose of this
Part is to set forth those terms and conditions under one heading to facilitate
easy reference by the corporate fiduciaries affected.
(Source: Added at 20 Ill. Reg. 10825, effective August 1, 1996)
 | TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER II: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 396
CORPORATE FIDUCIARY APPLICATIONS AND NOTICES
SECTION 396.10 DEFINITIONS
Section 396.10 Definitions
"Commissioner"
means the Secretary of the Department of Financial and Professional Regulation.
"Corporate
fiduciary" shall have the meaning ascribed to it in Section 1-5.05 of the
Corporate Fiduciary Act [205 ILCS 620].
"Corporate
fiduciary subsidiary" means a subsidiary of a corporation organized for
the purposes of accepting and executing trusts which has received a Certificate
of Authority from the Commissioner to accept and execute trusts, but shall not
include a state bank, a state savings and loan association, a state savings
bank or any subsidiary thereof.
(Source: Amended at 44 Ill. Reg. 6272, effective April 24, 2020)
| TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER II: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 396
CORPORATE FIDUCIARY APPLICATIONS AND NOTICES
SECTION 396.20 PURPOSE (RENUMBERED)
Section 396.20 Purpose
(Renumbered)
(Source: Section 396.20 renumbered to Section 396.110 at 20 Ill. Reg.
10825, effective August 1, 1996)
| TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER II: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 396
CORPORATE FIDUCIARY APPLICATIONS AND NOTICES
SECTION 396.30 FACTORS TO BE CONSIDERED BY THE COMMISSIONER (RENUMBERED)
Section 396.30 Factors to be
Considered by the Commissioner (Renumbered)
(Source: Section 396.30 renumbered to Section 396.120 at 20 Ill. Reg.
10825, effective August 1, 1996)
SUBPART B: CORPORATE FIDUCIARY SUBSIDIARIES
| TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER II: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 396
CORPORATE FIDUCIARY APPLICATIONS AND NOTICES
SECTION 396.110 PURPOSE
Section 396.110 Purpose
A corporate fiduciary which
proposes to establish a subsidiary, whether by incorporating the subsidiary or
by acquiring the subsidiary, shall apply, on an application specified by the
Commissioner, for approval from the Commissioner, not less than 90 days prior
to commencing business by the subsidiary if newly incorporated, or prior to its
acquisition if it is acquired.
(Source: Section 396.110 renumbered from Section 396.20 at 20 Ill. Reg.
10825, effective August 1, 1996)
| TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER II: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 396
CORPORATE FIDUCIARY APPLICATIONS AND NOTICES
SECTION 396.120 FACTORS TO BE CONSIDERED BY THE COMMISSIONER
Section 396.120 Factors to
be Considered by the Commissioner
When reviewing an application to
establish a corporate fiduciary subsidiary, the following factors are relevant:
a) the types of activities to be conducted by the corporate
fiduciary subsidiary (i.e., title insurance, employee benefit services, and
bookkeeping services);
b) the earnings potential of the corporate fiduciary subsidiary
(i.e., the earnings are sufficient to meet the current and anticipated needs of
the subsidiary as identified in the business plan);
c) the general character and experience of the management of the
corporate fiduciary subsidiary (i.e., background, formal education, and
practical experience in the types of services to be provided by the
subsidiary); and
d) the effect of the corporate fiduciary subsidiary upon the
financial condition of the corporate fiduciary.
(Source: Section 396.120 renumbered from Section 396.30 at 20 Ill. Reg.
10825, effective August 1, 1996)
SUBPART C: CORPORATE FIDUCIARY BRANCH OFFICES – APPROVAL
| TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER II: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 396
CORPORATE FIDUCIARY APPLICATIONS AND NOTICES
SECTION 396.210 PURPOSE
Section 396.210 Purpose
Section 1-7(a) of the Corporate
Fiduciary Act requires any corporate fiduciary that is a trust company to apply
for and obtain approval from the Commissioner for the establishment of a branch
office. This Subpart sets forth the terms and conditions a trust company must
satisfy in order for the Commissioner to approve its application for the
establishment of a branch office.
(Source: Amended at 44 Ill. Reg. 6272, effective April 24, 2020)
| TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER II: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 396
CORPORATE FIDUCIARY APPLICATIONS AND NOTICES
SECTION 396.220 TERMS AND CONDITIONS FOR APPROVAL
Section 396.220 Terms and
Conditions for Approval
A trust company must demonstrate
the following in order for the Commissioner to approve its application to
establish a branch office:
a) That the trust company's aggregate direct and indirect fixed
asset investment, including lease obligations, will be reasonable in relation
to its projected earnings, capital, surplus and reserves, and liquidity (i.e.,
generally not greater than 50%).
b) That the expense of establishing and operating the branch
office will not have an undue effect on the trust company's earnings (i.e., the
establishment will not result in negative net earnings and will not bring
capital below that required for safe and sound operation).
c) That the management of the trust company and the branch has
demonstrated or will demonstrate the ability to operate the trust company
branch office in a safe and sound manner (i.e., proposed management has the
appropriate level of experience commensurate with the accounts to be
administered, the prior conduct of management was conducted in a safe and sound
manner and appropriate internal controls are in place to adequately supervise
management actions).
d) That the trust company has developed procedures for
operations, controls and audits at the branch office, including but not limited
to facilities for safekeeping and recordkeeping.
e) That the types of activities proposed to be performed at the
branch office are consistent with and within the scope of the activities
performed by the trust company and authorized by the trust company's
certificate of authority.
(Source: Added at 20 Ill. Reg. 10825, effective August 1, 1996)
| TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER II: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 396
CORPORATE FIDUCIARY APPLICATIONS AND NOTICES
SECTION 396.230 APPLICATION PROCEDURES
Section 396.230 Application
Procedures
a) A trust company that intends to establish a branch office
shall file an application for approval with the Commissioner on forms
prescribed by the Commissioner.
b) The application shall be deemed filed when the Commission has
received the applicable filing fee and a completed application form, including
all of the supporting documentation necessary to determine that the terms and
conditions set forth in this rule have been satisfied.
(Source: Added at 20 Ill. Reg. 10825, effective August 1, 1996)
SUBPART D: CORPORATE FIDUCIARY BRANCH OFFICES – NOTICE
| TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER II: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 396
CORPORATE FIDUCIARY APPLICATIONS AND NOTICES
SECTION 396.310 PURPOSE (REPEALED)
Section 396.310 Purpose
(Repealed)
(Source: Repealed at 44 Ill. Reg. 6272, effective April 24, 2020)
| TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER II: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 396
CORPORATE FIDUCIARY APPLICATIONS AND NOTICES
SECTION 396.320 NOTICE REQUIREMENTS (REPEALED)
Section 396.320 Notice
Requirements (Repealed)
(Source: Repealed at 44 Ill. Reg. 6272, effective April 24, 2020)
| TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER II: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 396
CORPORATE FIDUCIARY APPLICATIONS AND NOTICES
SECTION 396.330 NOTICE PROCEDURES (REPEALED)
Section 396.330 Notice
Procedures (Repealed)
(Source: Repealed at 44 Ill. Reg. 6272, effective April 24, 2020)
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