HB0497 Engrossed

LRB095 05354 MJR 25438 b






1
    AN ACT concerning regulation.

 
2
    Be it enacted by the People of the State of Illinois,
 
3
represented in the General Assembly:


 
4
    Section 5. The Illinois Banking Act is amended  by adding 
5
Section 21.5 as follows:
 
6
    (205 ILCS 5/21.5  new)
7
    Sec. 21.5. Prohibition against establishment of branches 
8
on or near the premises of certain affiliates.
9
    (a) For the purposes of this Section:
10
    "Affiliate" means any company having a relationship with a 
11
bank that would cause the company to be an affiliate pursuant 
12
to Section 35.2 of this Act if the bank were a State bank.

13
    "Bank" has the meaning ascribed to that term in the Federal 
14
Deposit Insurance Act (12 U.S.C. Sec. 1813) and includes any 
15
out-of-state bank.
16
    "Bank holding company" and "financial holding company" 
17
have the meanings ascribed to those terms in the federal Bank 
18
Holding Company Act of 1956 (12 U.S.C. Sec. 1841).
19
    A location is considered "adjacent to" the premises of an 
20
affiliate if the location is not separated from the boundary of 
21
the premises of the affiliate by real property that is owned by 
22
a person or entity having no business relationship with the 
23
bank or with the affiliate and that is not leased to or used by 
 


 






HB0497 Engrossed
- 2 -
LRB095 05354 MJR 25438 b




1
the bank or affiliate.
2
    (b) Notwithstanding any other provision of this Act, after 
3
the effective date of this amendatory Act of the 95th General 
4
Assembly, no bank may establish a bank office or branch on or 
5
adjacent to the premises of an affiliate of the bank if the 
6
affiliate engages in any commercial activity that could not 
7
lawfully be conducted by a bank holding company, a financial 
8
holding company, or a subsidiary of the bank holding company or 
9
financial holding company pursuant to federal law.
10
    (c) It is the intent of this Section that no entity be 
11
permitted to circumvent the prohibition stated in this Section 
12
by first establishing a bank office or branch and then 
13
subsequently locating an office of an affiliate on or adjacent 
14
to the premises of the bank office or branch. If any entity 
15
attempts to locate an office of an affiliate on or adjacent to 
16
the premises of the bank office or branch, the entity must 
17
cease to operate its bank office or branch at a location that 
18
would violate the intent of this Section.

 
19
    Section 10. The Savings Bank Act is amended by adding 
20
Section 1006.10 as follows:
 
21
    (205 ILCS 205/1006.10 new)

22
    Sec. 1006.10. Prohibition against establishment of offices 
23
or branches on or adjacent to the premises of certain 
24
affiliates.
 


 






HB0497 Engrossed
- 3 -
LRB095 05354 MJR 25438 b




1
    (a) For purposes of this Section:

2
        "Affiliate" has the meaning defined in this Act.

3
        "Savings Bank" means a savings bank operating under 
4
    this Act, an out-of-state savings bank as defined under 
5
    this Act, or a savings association defined in the Federal 
6
    Deposit Insurance Act (12 U.S.C. Sec. 1813).

7
        "Savings bank holding company" has the meaning 
8
    ascribed in this Act.

9
    A location is considered "adjacent to" the premises of an 
10
affiliate if the location is not separated from the boundary of 
11
the premises of the affiliate by real property that is owned by 
12
a person or entity having no business relationship with the 
13
savings bank, savings bank holding company, or with an 
14
affiliate and that is not leased to or used by the savings bank 
15
or affiliate.

16
    (b)   Notwithstanding any other provision of this Act, after 
17
the effective date of this amendatory Act of the 95th General 
18
Assembly, no savings bank may establish an office or branch on 
19
or adjacent to the premises of an affiliate of the savings bank 
20
if the affiliate engages in any commercial activity that could 
21
not lawfully be conducted by a savings bank holding company or 
22
a subsidiary of the savings bank holding company pursuant to 
23
federal law.

24
    (c)    It is the intent of this Section that no entity be 
25
permitted to circumvent the prohibition stated in this Section 
26
by first establishing a savings bank office or branch and then 
 


 






HB0497 Engrossed
- 4 -
LRB095 05354 MJR 25438 b




1
subsequently locating an office of an affiliate on or adjacent 
2
to the premises of the savings bank office or branch.  If any 
3
entity attempts to locate an office or branch of an affiliate 
4
in, on, or adjacent to the premises of the savings bank office 
5
or branch, the entity must cease to operate its savings bank 
6
office or branch at a location that would violate the intent of 
7
this Section.

 

8
    Section 99. Effective date. This Act takes effect upon 
9
becoming law.