103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB3726

 

Introduced 2/9/2024, by Sen. Mary Edly-Allen

 

SYNOPSIS AS INTRODUCED:
 
See Index

    Amends the Illinois Banking Act. Makes changes to the membership of the State Banking Board of Illinois. Provides that a bank may borrow or incur an obligation and pledge assets to secure deposits. Provides that a bank may provide data processing services to a person for profit. Provides that a bank may invest in financial futures or options transactions. Provides that the board of directors of a bank may provide by resolution that stockholders may attend, participate in, act in, and vote at any annual meeting or special meeting through the use of a conference telephone or interactive technology if specified conditions are satisfied. Provides that a person who makes, or causes to be made, a false statement or false entry with intent to deceive any person or persons authorized to examine into the affairs of the bank or the subsidiary or holding company of that bank, the branch of an out-of-state bank with intent to deceive the Commissioner of Banks and Real Estate or his administrative officers in the performance of their duties under the Act shall be subject to civil penalties imposed by the Commissioner (rather than be guilty of a Class 3 felony). Provides that the Board may authorize the transfer of funds from the Bank and Trust Company Fund. Amends the Savings Bank Act. Provides that the board of directors of a savings bank may provide by resolution that members or stockholders may attend, participate in, act in, and vote at any annual meeting or special meeting through the use of a conference telephone or interactive technology if specified conditions are satisfied. Provides that a savings bank may loan funds through the purchase of fixed rate annuity contracts. Provides that a savings bank may accept deposits made by a minor and may open an account in the name of such minor and the rules and regulations of such savings bank with respect to each such deposit and account shall be as binding upon such minor as if such minor were of full age and legal capacity. Makes changes to various provisions concerning notice to allow for electronic notice. Makes other changes. Effective immediately.


LRB103 38817 RTM 68954 b

 

 

A BILL FOR

 

SB3726LRB103 38817 RTM 68954 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Banking Act is amended by changing
5Sections 2, 5, 13, 14, 15, 16, 16.5, 20, 32.1, 40, 48, 48.1,
648.2, 49, 78, and 80 as follows:
 
7    (205 ILCS 5/2)  (from Ch. 17, par. 302)
8    Sec. 2. General definitions. In this Act, unless the
9context otherwise requires, the following words and phrases
10shall have the following meanings:
11    "Accommodation party" shall have the meaning ascribed to
12that term in Section 3-419 of the Uniform Commercial Code.
13    "Action" in the sense of a judicial proceeding includes
14recoupments, counterclaims, set-off, and any other proceeding
15in which rights are determined.
16    "Affiliate facility" of a bank means a main banking
17premises or branch of another commonly owned bank. The main
18banking premises or any branch of a bank may be an "affiliate
19facility" with respect to one or more other commonly owned
20banks.
21    "Appropriate federal banking agency" means the Federal
22Deposit Insurance Corporation, the Federal Reserve Bank of
23Chicago, or the Federal Reserve Bank of St. Louis, as

 

 

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1determined by federal law.
2    "Bank" means any person doing a banking business whether
3subject to the laws of this or any other jurisdiction.
4    A "banking house", "branch", "branch bank" or "branch
5office" shall mean any place of business of a bank at which
6deposits are received, checks paid, or loans made, but shall
7not include any place at which only records thereof are made,
8posted, or kept. A place of business at which deposits are
9received, checks paid, or loans made shall not be deemed to be
10a branch, branch bank, or branch office if the place of
11business is adjacent to and connected with the main banking
12premises, or if it is separated from the main banking premises
13by not more than an alley; provided always that (i) if the
14place of business is separated by an alley from the main
15banking premises there is a connection between the two by
16public or private way or by subterranean or overhead passage,
17and (ii) if the place of business is in a building not wholly
18occupied by the bank, the place of business shall not be within
19any office or room in which any other business or service of
20any kind or nature other than the business of the bank is
21conducted or carried on. A place of business at which deposits
22are received, checks paid, or loans made shall not be deemed to
23be a branch, branch bank, or branch office (i) of any bank if
24the place is a terminal established and maintained in
25accordance with paragraph (17) of Section 5 of this Act, or
26(ii) of a commonly owned bank by virtue of transactions

 

 

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1conducted at that place on behalf of the other commonly owned
2bank under paragraph (23) of Section 5 of this Act if the place
3is an affiliate facility with respect to the other bank.
4    "Branch of an out-of-state bank" means a branch
5established or maintained in Illinois by an out-of-state bank
6as a result of a merger between an Illinois bank and the
7out-of-state bank that occurs on or after May 31, 1997, or any
8branch established by the out-of-state bank following the
9merger.
10    "Bylaws" means the bylaws of a bank that are adopted by the
11bank's board of directors or shareholders for the regulation
12and management of the bank's affairs. If the bank operates as a
13limited liability company, however, "bylaws" means the
14operating agreement of the bank.
15    "Call report fee" means the fee to be paid to the
16Commissioner by each State bank pursuant to paragraph (a) of
17subsection (3) of Section 48 of this Act.
18    "Capital" includes the aggregate of outstanding capital
19stock and preferred stock.
20    "Cash flow reserve account" means the account within the
21books and records of the Commissioner of Banks and Real Estate
22used to record funds designated to maintain a reasonable Bank
23and Trust Company Fund operating balance to meet agency
24obligations on a timely basis.
25    "Charter" includes the original charter and all amendments
26thereto and articles of merger or consolidation.

 

 

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1    "Commissioner" means the Commissioner of Banks and Real
2Estate, except that beginning on April 6, 2009 (the effective
3date of Public Act 95-1047), all references in this Act to the
4Commissioner of Banks and Real Estate are deemed, in
5appropriate contexts, to be references to the Secretary of
6Financial and Professional Regulation.
7    "Commonly owned banks" means 2 or more banks that each
8qualify as a bank subsidiary of the same bank holding company
9pursuant to Section 18 of the Federal Deposit Insurance Act;
10"commonly owned bank" refers to one of a group of commonly
11owned banks but only with respect to one or more of the other
12banks in the same group.
13    "Community" means a city, village, or incorporated town
14and also includes the area served by the banking offices of a
15bank, but need not be limited or expanded to conform to the
16geographic boundaries of units of local government.
17    "Company" means a corporation, limited liability company,
18partnership, business trust, association, or similar
19organization and, unless specifically excluded, includes a
20"State bank" and a "bank".
21    "Consolidating bank" means a party to a consolidation.
22    "Consolidation" takes place when 2 or more banks, or a
23trust company and a bank, are extinguished and by the same
24process a new bank is created, taking over the assets and
25assuming the liabilities of the banks or trust company passing
26out of existence.

 

 

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1    "Continuing bank" means a merging bank, the charter of
2which becomes the charter of the resulting bank.
3    "Converting bank" means a State bank converting to become
4a national bank, or a national bank converting to become a
5State bank.
6    "Converting trust company" means a trust company
7converting to become a State bank.
8    "Court" means a court of competent jurisdiction.
9    "Director" means a member of the board of directors of a
10bank. In the case of a manager-managed limited liability
11company, however, "director" means a manager of the bank and,
12in the case of a member-managed limited liability company,
13"director" means a member of the bank. The term "director"
14does not include an advisory director, honorary director,
15director emeritus, or similar person, unless the person is
16otherwise performing functions similar to those of a member of
17the board of directors.
18    "Director of Banking" means the Director of the Division
19of Banking of the Department of Financial and Professional
20Regulation.
21    "Eligible depository institution" means an insured savings
22association that is in default, an insured savings association
23that is in danger of default, a State or national bank that is
24in default or a State or national bank that is in danger of
25default, as those terms are defined in this Section, or a new
26bank as that term defined in Section 11(m) of the Federal

 

 

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1Deposit Insurance Act or a bridge bank as that term is defined
2in Section 11(n) of the Federal Deposit Insurance Act or a new
3federal savings association authorized under Section
411(d)(2)(f) of the Federal Deposit Insurance Act.
5    "Fiduciary" means trustee, agent, executor, administrator,
6committee, guardian for a minor or for a person under legal
7disability, receiver, trustee in bankruptcy, assignee for
8creditors, or any holder of similar position of trust.
9    "Financial institution" means a bank, savings bank,
10savings and loan association, credit union, or any licensee
11under the Consumer Installment Loan Act or the Sales Finance
12Agency Act and, for purposes of Section 48.3, any proprietary
13network, funds transfer corporation, or other entity providing
14electronic funds transfer services, or any corporate
15fiduciary, its subsidiaries, affiliates, parent company, or
16contractual service provider that is examined by the
17Commissioner. For purposes of Section 5c and subsection (b) of
18Section 13 of this Act, "financial institution" includes any
19proprietary network, funds transfer corporation, or other
20entity providing electronic funds transfer services, and any
21corporate fiduciary.
22    "Foundation" means the Illinois Bank Examiners' Education
23Foundation.
24    "General obligation" means a bond, note, debenture,
25security, or other instrument evidencing an obligation of the
26government entity that is the issuer that is supported by the

 

 

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1full available resources of the issuer, the principal and
2interest of which is payable in whole or in part by taxation.
3    "Guarantee" means an undertaking or promise to answer for
4payment of another's debt or performance of another's duty,
5liability, or obligation whether "payment guaranteed" or
6"collection guaranteed".
7    "In danger of default" means a State or national bank, a
8federally chartered insured savings association or an Illinois
9state chartered insured savings association with respect to
10which the Commissioner or the appropriate federal banking
11agency has advised the Federal Deposit Insurance Corporation
12that:
13        (1) in the opinion of the Commissioner or the
14    appropriate federal banking agency,
15            (A) the State or national bank or insured savings
16        association is not likely to be able to meet the
17        demands of the State or national bank's or savings
18        association's obligations in the normal course of
19        business; and
20            (B) there is no reasonable prospect that the State
21        or national bank or insured savings association will
22        be able to meet those demands or pay those obligations
23        without federal assistance; or
24        (2) in the opinion of the Commissioner or the
25    appropriate federal banking agency,
26            (A) the State or national bank or insured savings

 

 

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1        association has incurred or is likely to incur losses
2        that will deplete all or substantially all of its
3        capital; and
4            (B) there is no reasonable prospect that the
5        capital of the State or national bank or insured
6        savings association will be replenished without
7        federal assistance.
8    "In default" means, with respect to a State or national
9bank or an insured savings association, any adjudication or
10other official determination by any court of competent
11jurisdiction, the Commissioner, the appropriate federal
12banking agency, or other public authority pursuant to which a
13conservator, receiver, or other legal custodian is appointed
14for a State or national bank or an insured savings
15association.
16    "Insured savings association" means any federal savings
17association chartered under Section 5 of the federal Home
18Owners' Loan Act and any State savings association chartered
19under the Illinois Savings and Loan Act of 1985 or a
20predecessor Illinois statute, the deposits of which are
21insured by the Federal Deposit Insurance Corporation. The term
22also includes a savings bank organized or operating under the
23Savings Bank Act.
24    "Insured savings association in recovery" means an insured
25savings association that is not an eligible depository
26institution and that does not meet the minimum capital

 

 

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1requirements applicable with respect to the insured savings
2association.
3    "Issuer" means for purposes of Section 33 every person who
4shall have issued or proposed to issue any security; except
5that (1) with respect to certificates of deposit, voting trust
6certificates, collateral-trust certificates, and certificates
7of interest or shares in an unincorporated investment trust
8not having a board of directors (or persons performing similar
9functions), "issuer" means the person or persons performing
10the acts and assuming the duties of depositor or manager
11pursuant to the provisions of the trust, agreement, or
12instrument under which the securities are issued; (2) with
13respect to trusts other than those specified in clause (1)
14above, where the trustee is a corporation authorized to accept
15and execute trusts, "issuer" means the entrusters, depositors,
16or creators of the trust and any manager or committee charged
17with the general direction of the affairs of the trust
18pursuant to the provisions of the agreement or instrument
19creating the trust; and (3) with respect to equipment trust
20certificates or like securities, "issuer" means the person to
21whom the equipment or property is or is to be leased or
22conditionally sold.
23    "Letter of credit" and "customer" shall have the same
24meaning as that term is given meanings ascribed to those terms
25in Section 5-102 of the Uniform Commercial Code.
26    "Main banking premises" means the location that is

 

 

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1designated in a bank's charter as its main office.
2    "Maker or obligor" means for purposes of Section 33 the
3issuer of a security, the promisor in a debenture or other debt
4security, or the mortgagor or grantor of a trust deed or
5similar conveyance of a security interest in real or personal
6property.
7    "Merged bank" means a merging bank that is not the
8continuing, resulting, or surviving bank in a consolidation or
9merger.
10    "Merger" includes consolidation.
11    "Merging bank" means a party to a bank merger.
12    "Merging trust company" means a trust company party to a
13merger with a State bank.
14    "Mid-tier bank holding company" means a corporation that
15(a) owns 100% of the issued and outstanding shares of each
16class of stock of a State bank, (b) has no other subsidiaries,
17and (c) 100% of the issued and outstanding shares of the
18corporation are owned by a parent bank holding company.
19    "Municipality" means any municipality, political
20subdivision, school district, taxing district, or agency.
21    "National bank" means a national banking association
22located in this State and after May 31, 1997, means a national
23banking association without regard to its location.
24    "Out-of-state bank" means a bank chartered under the laws
25of a state other than Illinois, a territory of the United
26States, or the District of Columbia.

 

 

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1    "Parent bank holding company" means a corporation that is
2a bank holding company as that term is defined in the Illinois
3Bank Holding Company Act of 1957 and owns 100% of the issued
4and outstanding shares of a mid-tier bank holding company.
5    "Person" means an individual, corporation, limited
6liability company, partnership, joint venture, trust, estate,
7or unincorporated association.
8    "Public agency" means the State of Illinois, the various
9counties, townships, cities, towns, villages, school
10districts, educational service regions, special road
11districts, public water supply districts, fire protection
12districts, drainage districts, levee districts, sewer
13districts, housing authorities, the Illinois Bank Examiners'
14Education Foundation, the Chicago Park District, and all other
15political corporations or subdivisions of the State of
16Illinois, whether now or hereafter created, whether herein
17specifically mentioned or not, and shall also include any
18other state or any political corporation or subdivision of
19another state.
20    "Public funds" or "public money" means current operating
21funds, special funds, interest and sinking funds, and funds of
22any kind or character belonging to, in the custody of, or
23subject to the control or regulation of the United States or a
24public agency. "Public funds" or "public money" shall include
25funds held by any of the officers, agents, or employees of the
26United States or of a public agency in the course of their

 

 

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1official duties and, with respect to public money of the
2United States, shall include Postal Savings funds.
3    "Published" means, unless the context requires otherwise,
4the publishing of the notice or instrument referred to in some
5newspaper of general circulation in the community in which the
6bank is located at least once each week for 3 successive weeks.
7Publishing shall be accomplished by, and at the expense of,
8the bank required to publish. Where publishing is required,
9the bank shall submit to the Commissioner that evidence of the
10publication as the Commissioner shall deem appropriate.
11    "Qualified financial contract" means any security
12contract, commodity contract, forward contract, including spot
13and forward foreign exchange contracts, repurchase agreement,
14swap agreement, and any similar agreement, any option to enter
15into any such agreement, including any combination of the
16foregoing, and any master agreement for such agreements. A
17master agreement, together with all supplements thereto, shall
18be treated as one qualified financial contract. The contract,
19option, agreement, or combination of contracts, options, or
20agreements shall be reflected upon the books, accounts, or
21records of the bank, or a party to the contract shall provide
22documentary evidence of such agreement.
23    "Recorded" means the filing or recording of the notice or
24instrument referred to in the office of the Recorder of the
25county wherein the bank is located.
26    "Resulting bank" means the bank resulting from a merger or

 

 

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1conversion.
2    "Secretary" means the Secretary of Financial and
3Professional Regulation, or a person authorized by the
4Secretary or by this Act to act in the Secretary's stead.
5    "Securities" means stocks, bonds, debentures, notes, or
6other similar obligations.
7    "Stand-by letter of credit" means a letter of credit under
8which drafts are payable upon the condition the customer has
9defaulted in performance of a duty, liability, or obligation.
10    "State bank" means any banking corporation that has a
11banking charter issued by the Commissioner under this Act.
12    "State Banking Board" means the State Banking Board of
13Illinois.
14    "Subsidiary" with respect to a specified company means a
15company that is controlled by the specified company. For
16purposes of paragraphs (8) and (12) of Section 5 of this Act,
17"control" means the exercise of operational or managerial
18control of a corporation by the bank, either alone or together
19with other affiliates of the bank.
20    "Surplus" means the aggregate of (i) amounts paid in
21excess of the par value of capital stock and preferred stock;
22(ii) amounts contributed other than for capital stock and
23preferred stock and allocated to the surplus account; and
24(iii) amounts transferred from undivided profits.
25    "Tier 1 Capital" and "Tier 2 Capital" have the meanings
26assigned to those terms in regulations promulgated for the

 

 

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1appropriate federal banking agency of a state bank, as those
2regulations are now or hereafter amended.
3    "Trust company" means a limited liability company or
4corporation incorporated in this State for the purpose of
5accepting and executing trusts.
6    "Undivided profits" means undistributed earnings less
7discretionary transfers to surplus.
8    "Unimpaired capital and unimpaired surplus", for the
9purposes of paragraph (21) of Section 5 and Sections 32, 33,
1034, 35.1, 35.2, and 47 of this Act means the sum of the state
11bank's Tier 1 Capital and Tier 2 Capital plus such other
12shareholder equity as may be included by regulation of the
13Commissioner. Unimpaired capital and unimpaired surplus shall
14be calculated on the basis of the date of the last quarterly
15call report filed with the Commissioner preceding the date of
16the transaction for which the calculation is made, provided
17that: (i) when a material event occurs after the date of the
18last quarterly call report filed with the Commissioner that
19reduces or increases the bank's unimpaired capital and
20unimpaired surplus by 10% or more, then the unimpaired capital
21and unimpaired surplus shall be calculated from the date of
22the material event for a transaction conducted after the date
23of the material event; and (ii) if the Commissioner determines
24for safety and soundness reasons that a state bank should
25calculate unimpaired capital and unimpaired surplus more
26frequently than provided by this paragraph, the Commissioner

 

 

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1may by written notice direct the bank to calculate unimpaired
2capital and unimpaired surplus at a more frequent interval. In
3the case of a state bank newly chartered under Section 13 or a
4state bank resulting from a merger, consolidation, or
5conversion under Sections 21 through 26 for which no preceding
6quarterly call report has been filed with the Commissioner,
7unimpaired capital and unimpaired surplus shall be calculated
8for the first calendar quarter on the basis of the effective
9date of the charter, merger, consolidation, or conversion.
10(Source: P.A. 95-924, eff. 8-26-08; 95-1047, eff. 4-6-09;
1196-1000, eff. 7-2-10; 96-1163, eff. 1-1-11.)
 
12    (205 ILCS 5/5)  (from Ch. 17, par. 311)
13    Sec. 5. General corporate powers. A bank organized under
14this Act or subject hereto shall be a body corporate and
15politic and shall, without specific mention thereof in the
16charter, have all the powers conferred by this Act and the
17following additional general corporate powers:
18        (1) To sue and be sued, complain, and defend in its
19    corporate name.
20        (2) To have a corporate seal, which may be altered at
21    pleasure, and to use the same by causing it or a facsimile
22    thereof to be impressed or affixed or in any manner
23    reproduced, provided that the affixing of a corporate seal
24    to an instrument shall not give the instrument additional
25    force or effect, or change the construction thereof, and

 

 

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1    the use of a corporate seal is not mandatory.
2        (3) To make, alter, amend, and repeal bylaws, not
3    inconsistent with its charter or with law, for the
4    administration of the affairs of the bank. If this Act
5    does not provide specific guidance in matters of corporate
6    governance, the provisions of the Business Corporation Act
7    of 1983 may be used if so provided in the bylaws, and if
8    the bank is a limited liability company, the provisions of
9    the Limited Liability Company Act shall be used.
10        (4) To elect or appoint and remove officers and agents
11    of the bank and define their duties and fix their
12    compensation.
13        (5) To adopt and operate reasonable bonus plans,
14    profit-sharing plans, stock-bonus plans, stock-option
15    plans, pension plans, and similar incentive plans for its
16    directors, officers and employees.
17        (5.1) To manage, operate, and administer a fund for
18    the investment of funds by a public agency or agencies,
19    including any unit of local government or school district,
20    or any person. The fund for a public agency shall invest in
21    the same type of investments and be subject to the same
22    limitations provided for the investment of public funds.
23    The fund for public agencies shall maintain a separate
24    ledger showing the amount of investment for each public
25    agency in the fund. "Public funds" and "public agency" as
26    used in this Section shall have the meanings ascribed to

 

 

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1    them in Section 1 of the Public Funds Investment Act.
2        (6) To make reasonable donations for the public
3    welfare or for charitable, scientific, religious or
4    educational purposes.
5        (7) To borrow or incur an obligation; and to pledge
6    its assets:
7            (a) to secure its borrowings, its lease of
8        personal or real property or its other nondeposit
9        obligations;
10            (b) to enable it to act as agent for the sale of
11        obligations of the United States;
12            (c) to secure deposits of public money of the
13        United States, whenever required by the laws of the
14        United States, including, without being limited to,
15        revenues and funds the deposit of which is subject to
16        the control or regulation of the United States or any
17        of its officers, agents, or employees and Postal
18        Savings funds;
19            (d) to secure deposits of public money of any
20        state or of any political corporation or subdivision
21        thereof, including, without being limited to, revenues
22        and funds the deposit of which is subject to the
23        control or regulation of any state or of any political
24        corporation or subdivisions thereof or of any of their
25        officers, agents, or employees;
26            (e) to secure deposits of money whenever required

 

 

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1        by the National Bankruptcy Act;
2            (f) (blank); and
3            (g) to secure trust funds commingled with the
4        bank's funds, whether deposited by the bank or an
5        affiliate of the bank, pursuant to Section 2-8 of the
6        Corporate Fiduciary Act; and .
7            (h) to secure deposits.
8        (8) To own, possess, and carry as assets all or part of
9    the real estate necessary in or with which to do its
10    banking business, either directly or indirectly through
11    the ownership of all or part of the capital stock, shares
12    or interests in any corporation, association, trust
13    engaged in holding any part or parts or all of the bank
14    premises, engaged in such business and in conducting a
15    safe deposit business in the premises or part of them, or
16    engaged in any activity that the bank is permitted to
17    conduct in a subsidiary pursuant to paragraph (12) of this
18    Section 5.
19        (9) To own, possess, and carry as assets other real
20    estate to which it may obtain title in the collection of
21    its debts or that was formerly used as a part of the bank
22    premises, but title to any real estate except as herein
23    permitted may only shall not be retained by the bank,
24    either directly or by or through a subsidiary, as
25    permitted by subsection (12) of this Section for a total
26    period of more than 10 years after acquiring title or for

 

 

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1    the period set by federal law for national banks,
2    whichever is greater, either directly or indirectly.
3        (10) To do any act, including the acquisition of
4    stock, necessary to obtain insurance of its deposits, or
5    part thereof, and any act necessary to obtain a guaranty,
6    in whole or in part, of any of its loans or investments by
7    the United States or any agency thereof, and any act
8    necessary to sell or otherwise dispose of any of its loans
9    or investments to the United States or any agency thereof,
10    and to acquire and hold membership in the Federal Reserve
11    System.
12        (11) Notwithstanding any other provisions of this Act
13    or any other law, to do any act and to own, possess, and
14    carry as assets property of the character, including
15    stock, that is at the time authorized or permitted to
16    national banks by an Act of Congress, but subject always
17    to the same limitations and restrictions as are applicable
18    to national banks by the pertinent federal law and subject
19    to applicable provisions of the Financial Institutions
20    Insurance Sales Law.
21        (12) To own, possess, and carry as assets stock of one
22    or more corporations that is, or are, engaged in one or
23    more of the following businesses:
24            (a) holding title to and administering assets
25        acquired as a result of the collection or liquidating
26        of loans, investments, or discounts; or

 

 

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1            (b) holding title to and administering personal
2        property acquired by the bank, directly or indirectly
3        through a subsidiary, for the purpose of leasing to
4        others, provided the lease or leases and the
5        investment of the bank, directly or through a
6        subsidiary, in that personal property otherwise comply
7        with Section 35.1 of this Act; or
8            (c) carrying on or administering any of the
9        activities excepting the receipt of deposits or the
10        payment of checks or other orders for the payment of
11        money in which a bank may engage in carrying on its
12        general banking business; provided, however, that
13        nothing contained in this paragraph (c) shall be
14        deemed to permit a bank organized under this Act or
15        subject hereto to do, either directly or indirectly
16        through any subsidiary, any act, including the making
17        of any loan or investment, or to own, possess, or carry
18        as assets any property that if done by or owned,
19        possessed, or carried by the State bank would be in
20        violation of or prohibited by any provision of this
21        Act.
22        The provisions of this subsection (12) shall not apply
23    to and shall not be deemed to limit the powers of a State
24    bank with respect to the ownership, possession, and
25    carrying of stock that a State bank is permitted to own,
26    possess, or carry under this Act.

 

 

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1        Any bank intending to establish a subsidiary under
2    this subsection (12) shall give written notice to the
3    Commissioner 60 days prior to the subsidiary's commencing
4    of business or, as the case may be, prior to acquiring
5    stock in a corporation that has already commenced
6    business. After receiving the notice, the Commissioner may
7    waive or reduce the balance of the 60-day notice period.
8    The Commissioner may specify the form of the notice, may
9    designate the types of subsidiaries not subject to this
10    notice requirement, and may promulgate rules and
11    regulations to administer this subsection (12).
12        (13) To accept for payment at a future date not
13    exceeding one year from the date of acceptance, drafts
14    drawn upon it by its customers; and to issue, advise, or
15    confirm letters of credit authorizing the holders thereof
16    to draw drafts upon it or its correspondents.
17        (14) To own and lease personal property acquired by
18    the bank at the request of a prospective lessee and upon
19    the agreement of that person to lease the personal
20    property provided that the lease, the agreement with
21    respect thereto, and the amount of the investment of the
22    bank in the property comply with Section 35.1 of this Act.
23        (15)(a) To establish and maintain, in addition to the
24    main banking premises, branches offering any banking
25    services permitted at the main banking premises of a State
26    bank.

 

 

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1        (b) To establish and maintain, after May 31, 1997,
2    branches in another state that may conduct any activity in
3    that state that is authorized or permitted for any bank
4    that has a banking charter issued by that state, subject
5    to the same limitations and restrictions that are
6    applicable to banks chartered by that state.
7        (16) (Blank).
8        (17) To establish and maintain terminals, as
9    authorized by the Electronic Fund Transfer Act.
10        (18) To establish and maintain temporary service
11    booths at any International Fair held in this State which
12    is approved by the United States Department of Commerce,
13    for the duration of the international fair for the sole
14    purpose of providing a convenient place for foreign trade
15    customers at the fair to exchange their home countries'
16    currency into United States currency or the converse. This
17    power shall not be construed as establishing a new place
18    or change of location for the bank providing the service
19    booth.
20        (19) To indemnify its officers, directors, employees,
21    and agents, as authorized for corporations under Section
22    8.75 of the Business Corporation Act of 1983.
23        (20) To own, possess, and carry as assets stock of, or
24    be or become a member of, any corporation, mutual company,
25    association, trust, or other entity formed exclusively for
26    the purpose of providing directors' and officers'

 

 

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1    liability and bankers' blanket bond insurance or
2    reinsurance to and for the benefit of the stockholders,
3    members, or beneficiaries, or their assets or businesses,
4    or their officers, directors, employees, or agents, and
5    not to or for the benefit of any other person or entity or
6    the public generally.
7        (21) To make debt or equity investments in
8    corporations or projects, whether for profit or not for
9    profit, designed to promote the development of the
10    community and its welfare, provided that the aggregate
11    investment in all of these corporations and in all of
12    these projects does not exceed 10% of the unimpaired
13    capital and unimpaired surplus of the bank and provided
14    that this limitation shall not apply to creditworthy loans
15    by the bank to those corporations or projects. Upon
16    written application to the Commissioner, a bank may make
17    an investment that would, when aggregated with all other
18    such investments, exceed 10% of the unimpaired capital and
19    unimpaired surplus of the bank. The Commissioner may
20    approve the investment if he is of the opinion and finds
21    that the proposed investment will not have a material
22    adverse effect on the safety and soundness of the bank.
23        (22) To own, possess, and carry as assets the stock of
24    a corporation engaged in the ownership or operation of a
25    travel agency or to operate a travel agency as a part of
26    its business.

 

 

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1        (23) With respect to affiliate facilities:
2            (a) to conduct at affiliate facilities for and on
3        behalf of another commonly owned bank, if so
4        authorized by the other bank, all transactions that
5        the other bank is authorized or permitted to perform;
6        and
7            (b) to authorize a commonly owned bank to conduct
8        for and on behalf of it any of the transactions it is
9        authorized or permitted to perform at one or more
10        affiliate facilities.
11        Any bank intending to conduct or to authorize a
12    commonly owned bank to conduct at an affiliate facility
13    any of the transactions specified in this paragraph (23)
14    shall give written notice to the Commissioner at least 30
15    days before any such transaction is conducted at the
16    affiliate facility.
17        (24) To act as the agent for any fire, life, or other
18    insurance company authorized by the State of Illinois, by
19    soliciting and selling insurance and collecting premiums
20    on policies issued by such company; and to receive for
21    services so rendered such fees or commissions as may be
22    agreed upon between the bank and the insurance company for
23    which it may act as agent; provided, however, that no such
24    bank shall in any case assume or guarantee the payment of
25    any premium on insurance policies issued through its
26    agency by its principal; and provided further, that the

 

 

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1    bank shall not guarantee the truth of any statement made
2    by an assured in filing his application for insurance.
3        (25) Notwithstanding any other provisions of this Act
4    or any other law, to offer any product or service that is
5    at the time authorized or permitted to any insured savings
6    association or out-of-state bank by applicable law,
7    provided that powers conferred only by this subsection
8    (25):
9            (a) shall always be subject to the same
10        limitations and restrictions that are applicable to
11        the insured savings association or out-of-state bank
12        for the product or service by such applicable law;
13            (b) shall be subject to applicable provisions of
14        the Financial Institutions Insurance Sales Law;
15            (c) shall not include the right to own or conduct a
16        real estate brokerage business for which a license
17        would be required under the laws of this State; and
18            (d) shall not be construed to include the
19        establishment or maintenance of a branch, nor shall
20        they be construed to limit the establishment or
21        maintenance of a branch pursuant to subsection (11).
22        Before Not less than 30 days before engaging in any
23    activity under the authority of this subsection, a bank
24    shall provide written notice to the Commissioner of its
25    intent to engage in the activity. The notice shall
26    indicate the specific federal or state law, rule,

 

 

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1    regulation, or interpretation the bank intends to use as
2    authority to engage in the activity.
3        (26) To provide data processing services to a person
4    for profit.
5        (27) To invest in financial futures or options
6    transactions subject to the regulations of the Secretary.
7    Nothing in this Section shall be construed to require the
8filing of a notice or application for approval with the United
9States Office of the Comptroller of the Currency or a bank
10supervisor of another state as a condition to the right of a
11State bank to exercise any of the powers conferred by this
12Section in this State.
13(Source: P.A. 99-362, eff. 8-13-15; 100-863, eff. 8-14-18.)
 
14    (205 ILCS 5/13)  (from Ch. 17, par. 320)
15    Sec. 13. Issuance of charter.
16    (a) When the directors have organized as provided in
17Section 12 of this Act, and the capital stock and the preferred
18stock, if any, together with a surplus of not less than 50% of
19the capital, has been all fully paid in and a record of the
20same filed with the Commissioner, the Commissioner or some
21competent person of the Commissioner's appointment shall make
22a thorough examination into the affairs of the proposed bank,
23and if satisfied (i) that all the requirements of this Act have
24been complied with, (ii) that no intervening circumstance has
25occurred to change the Commissioner's findings made pursuant

 

 

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1to Section 10 of this Act, and (iii) that the prior involvement
2by any stockholder who will own a sufficient amount of stock to
3have control, as defined in Section 18 of this Act, of the
4proposed bank with any other financial institution, whether as
5stockholder, director, officer, or customer, was conducted in
6a safe and sound manner, upon payment into the Commissioner's
7office of the reasonable expenses of the examination, as
8determined by the Commissioner, the Commissioner shall issue a
9charter authorizing the bank to commence business as
10authorized in this Act. All charters issued by the
11Commissioner or any predecessor agency which chartered State
12banks, including any charter outstanding as of September 1,
131989, shall be perpetual. For the 2 years after the
14Commissioner has issued a charter to a bank, the bank shall
15request and obtain from the Commissioner prior written
16approval before it may change senior management personnel or
17directors.
18    The original charter, duly certified by the Commissioner,
19or a certified copy shall be evidence in all courts and places
20of the existence and authority of the bank to do business. Upon
21the issuance of the charter by the Commissioner, the bank
22shall be deemed fully organized and may proceed to do
23business. The Commissioner may, in the Commissioner's
24discretion, withhold the issuing of the charter when the
25Commissioner has reason to believe that the bank is organized
26for any purpose other than that contemplated by this Act. The

 

 

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1Commissioner shall revoke the charter and order liquidation in
2the event that the bank does not commence a general banking
3business within one year from the date of the issuance of the
4charter, unless a request has been submitted, in writing, to
5the Commissioner for an extension and the request has been
6approved. After commencing a general banking business, a bank
7may change its name by filing written notice with the
8Commissioner at least 30 days prior to the effective date of
9such change. A bank chartered under this Act may change its
10main banking premises by filing written application with the
11Commissioner, on forms prescribed by the Commissioner,
12provided (i) the change shall not be a removal to a new
13location without complying with the capital requirements of
14Section 7 and of subsection (1) of Section 10 of this Act; (ii)
15the Commissioner approves the relocation or change; and (iii)
16the bank complies with any applicable federal law or
17regulation. The application shall be deemed to be approved if
18the Commissioner has not acted on the application within 30
19days after receipt of the application, unless within the
2030-day time frame the Commissioner informs the bank that an
21extension of time is necessary prior to the Commissioner's
22action on the application.
23    (b)(1) The Commissioner may also issue a charter to a bank
24that is owned exclusively by other depository institutions or
25depository institution holding companies and is organized to
26engage exclusively in providing services to or for other

 

 

SB3726- 29 -LRB103 38817 RTM 68954 b

1financial institutions, their holding companies, and the
2officers, directors, and employees of such institutions and
3companies, and in providing services at the request of other
4financial institutions or their holding companies (also
5referred to as a "bankers' bank"). The bank may also provide
6products and services to its officers, directors, and
7employees.
8    (2) A bank chartered pursuant to paragraph (1) shall,
9except as otherwise specifically determined or limited by the
10Commissioner in an order or pursuant to a rule, be vested with
11the same rights and privileges and subject to the same duties,
12restrictions, penalties, and liabilities now or hereafter
13imposed under this Act.
14    (c) A bank chartered under this Act shall, at all times
15while it accepts or retains deposits, maintain with the
16Federal Deposit Insurance Corporation, or such other
17instrumentality of or corporation chartered by the United
18States, deposit insurance as authorized under federal law.
19    (d)(i) A bank that has a banking charter issued by the
20Commissioner under this Act may, pursuant to a written
21purchase and assumption agreement, transfer substantially all
22of its assets to another State bank or national bank in
23consideration, in whole or in part, for the transferee banks'
24assumption of any part or all of its liabilities. Such a
25transfer shall in no way be deemed to impair the charter of the
26transferor bank or cause the transferor bank to forfeit any of

 

 

SB3726- 30 -LRB103 38817 RTM 68954 b

1its rights, powers, interests, franchises, or privileges as a
2State bank, nor shall any voluntary reduction in the
3transferor bank's activities resulting from the transfer have
4any such effect; provided, however, that a State bank that
5transfers substantially all of its assets pursuant to this
6subsection (d) and following the transfer does not accept
7deposits and make loans, shall not have any rights, powers,
8interests, franchises, or privileges under subsection (15) of
9Section 5 of this Act until the bank has resumed accepting
10deposits and making loans.
11    (ii) The fact that a State bank does not resume accepting
12deposits and making loans for a period of 24 months commencing
13on September 11, 1989 or on a date of the transfer of
14substantially all of a State bank's assets, whichever is
15later, or such longer period as the Commissioner may allow in
16writing, may be the basis for a finding by the Commissioner
17under Section 51 of this Act that the bank is unable to
18continue operations.
19    (iii) The authority provided by subdivision (i) of this
20subsection (d) shall terminate on May 31, 1997, and no bank
21that has transferred substantially all of its assets pursuant
22to this subsection (d) shall continue in existence after May
2331, 1997.
24(Source: P.A. 95-924, eff. 8-26-08; 96-1365, eff. 7-28-10.)
 
25    (205 ILCS 5/14)  (from Ch. 17, par. 321)

 

 

SB3726- 31 -LRB103 38817 RTM 68954 b

1    Sec. 14. Stock. Unless otherwise provided for in this Act
2provisions of general application to stock of a state bank
3shall be as follows:
4    (1) All banks shall have their capital divided into shares
5of a par value of not less than $1 each and not more than $100
6each, however, the par value of shares of a bank effecting a
7reverse stock split pursuant to item (8) of subsection (a) of
8Section 17 may temporarily exceed this limit provided it
9conforms to the limits immediately after the reverse stock
10split is completed. No issue of capital stock or preferred
11stock shall be valid until not less than the par value of all
12such stock so issued shall be paid in and notice thereof by the
13president, a vice-president or cashier of the bank has been
14transmitted to the Commissioner. In the case of an increase in
15capital stock by the declaration of a stock dividend, the
16capitalization of retained earnings effected by such stock
17dividend shall constitute the payment for such shares required
18by the preceding sentence, provided that the surplus of said
19bank after such stock dividend shall be at least equal to fifty
20per cent of the capital as increased. The charter shall not
21limit or deny the voting power of the shares of any class of
22stock except as provided in Section 15(3) of this Act.
23    (2) Pursuant to action taken in accordance with the
24requirements of Section 17, a bank may issue preferred stock
25of one or more classes as shall be approved by the Commissioner
26as hereinafter provided, and make such amendment to its

 

 

SB3726- 32 -LRB103 38817 RTM 68954 b

1charter as may be necessary for this purpose; but in the case
2of any newly organized bank which has not yet issued capital
3stock the requirements of Section 17 shall not apply.
4    (3) Without limiting the authority herein contained a
5bank, when so provided in its charter and when approved by the
6Commissioner, may issue shares of preferred stock:
7        (a) Subject to the right of the bank to redeem any of
8    such shares at not exceeding the price fixed by the
9    charter for the redemption thereof;
10        (b) Subject to the provisions of subsection (8) of
11    this Section 14 entitling the holders thereof to
12    cumulative or noncumulative dividends;
13        (c) Having preference over any other class or classes
14    of shares as to the payment of dividends;
15        (d) Having preference as to the assets of the bank
16    over any other class or classes of shares upon the
17    voluntary or involuntary liquidation of the bank;
18        (e) Convertible into shares of any other class of
19    stock, provided that preferred shares shall not be
20    converted into shares of a different par value unless that
21    part of the capital of the bank represented by such
22    preferred shares is at the time of the conversion equal to
23    the aggregate par value of the shares into which the
24    preferred shares are to be converted.
25    (4) If any part of the capital of a bank consists of
26preferred stock, the determination of whether or not the

 

 

SB3726- 33 -LRB103 38817 RTM 68954 b

1capital of such bank is impaired and the amount of such
2impairment shall be based upon the par value of its stock even
3though the amount which the holders of such preferred stock
4shall be entitled to receive in the event of retirement or
5liquidation shall be in excess of the par value of such
6preferred stock.
7    (5) Pursuant to action taken in accordance with the
8requirements of Section 17 of this Act, a state bank may
9provide for a specified number of authorized but unissued
10shares of capital stock for one or more of the following
11purposes:
12        (a) Reserved for issuance under stock option plan or
13    plans to directors, officers or employees;
14        (b) Reserved for issuance upon conversion of
15    convertible preferred stock issued pursuant to and in
16    compliance with the provisions of subsections (2) and (3)
17    of this Section 14.
18        (c) Reserved for issuance upon conversion of
19    convertible debentures or other convertible evidences of
20    indebtedness issued by a state bank, provided always that
21    the terms of such conversion have been approved by the
22    Commissioner;
23        (d) Reserved for issuance by the declaration of a
24    stock dividend. If and when any shares of capital stock
25    are proposed to be authorized and reserved for any of the
26    purposes set forth in subparagraphs (a), (b) or (c) above,

 

 

SB3726- 34 -LRB103 38817 RTM 68954 b

1    the notice of the meeting, whether special or annual, of
2    stockholders at which such proposition is to be considered
3    shall be accompanied by a statement setting forth or
4    summarizing the terms upon which the shares of capital
5    stock so reserved are to be issued, and the extent to which
6    any preemptive rights of stockholders are inapplicable to
7    the issuance of the shares so reserved or to the
8    convertible preferred stock or convertible debentures or
9    other convertible evidences of indebtedness, and the
10    approving vote of the holders of at least two-thirds of
11    the outstanding shares of stock entitled to vote at such
12    meeting of the terms of such issuance shall be requisite
13    for the adoption of any amendment providing for the
14    reservation of authorized but unissued shares for any of
15    said purposes. Nothing in this subsection (5) contained
16    shall be deemed to authorize the issuance of any capital
17    stock for a consideration less than the par value thereof.
18    (6) Upon written application to the Commissioner 60 days
19prior to the proposed purchase and receipt of the written
20approval of the Commissioner, a state bank may purchase and
21hold as treasury stock such amounts of the total number of
22issued and outstanding shares of its capital and preferred
23stock outstanding as the Commissioner determines is consistent
24with safety and soundness of the bank. The Commissioner may
25specify the manner of accounting for the treasury stock and
26the form of notice prior to ultimate disposition of the

 

 

SB3726- 35 -LRB103 38817 RTM 68954 b

1shares. Except as authorized in this subsection, it shall not
2be lawful for a state bank to purchase or hold any additional
3such shares or securities described in subsection (2) of
4Section 37 unless necessary to prevent loss upon a debt
5previously contracted in good faith, in which event such
6shares or securities so purchased or acquired shall, within 6
7months from the time of purchase or acquisition, be sold or
8disposed of at public or private sale. Any state bank which
9intends to purchase and hold treasury stock as authorized in
10this subsection (6) shall file a written application with the
11Commissioner 60 days prior to any such proposed purchase. The
12application shall state the number of shares to be purchased,
13the consideration for the shares, the name and address of the
14person from whom the shares are to be purchased, if known, and
15the total percentage of its issued and outstanding shares to
16be held by the bank after the purchase. The total
17consideration paid by a state bank for treasury stock shall
18reduce capital and surplus of the bank for purposes of
19Sections of this Act relating to lending and investment limits
20which require computation of capital and surplus. After
21considering and approving an application to purchase and hold
22treasury stock under this subsection, the Commissioner may
23waive or reduce the balance of the 60 day application period.
24The Commissioner may specify the form of the application for
25approval to acquire treasury stock and promulgate rules and
26regulations for the administration of this subsection (6). A

 

 

SB3726- 36 -LRB103 38817 RTM 68954 b

1state bank may acquire or resell its own shares as treasury
2stock pursuant to this subsection (6) without a change in its
3charter pursuant to Section 17. Such stock may be held for any
4purpose permitted in subsection (5) of this Section 14 or may
5be resold upon such reasonable terms as the board of directors
6may determine provided notice is given to the Commissioner
7prior to the resale of such stock.
8    (7) During the time that a state bank shall continue its
9banking business, it shall not withdraw or permit to be
10withdrawn, either in the form of dividends or otherwise, any
11portion of its capital, but nothing in this subsection shall
12prevent a reduction or change of the capital stock or the
13preferred stock under the provisions of Sections 17 through 30
14of this Act, a purchase of treasury stock under the provisions
15of subsection (6) of this Section 14 or a redemption of
16preferred stock pursuant to charter provisions therefor.
17    (8) (a) Subject to the provisions of this Act, the board of
18    directors of a state bank from time to time may declare a
19    dividend of so much of the net profits of such bank as it
20    shall judge expedient, but each bank before the
21    declaration of a dividend shall carry at least one-tenth
22    of its net profits since the date of the declaration of the
23    last preceding dividend, or since the issuance of its
24    charter in the case of its first dividend, to its surplus
25    until the same shall be equal to its capital.
26        (b) No dividends shall be paid by a state bank while it

 

 

SB3726- 37 -LRB103 38817 RTM 68954 b

1    continues its banking business to an amount greater than
2    its net profits then on hand, deducting first therefrom
3    its losses and bad debts. All debts due to a state bank on
4    which interest is past due and unpaid for a period of 6
5    months or more, unless the same are well secured and in the
6    process of collection, shall be considered bad debts.
7    (9) A State bank may, but shall not be obliged to, issue a
8certificate for a fractional share, and, by action of its
9board of directors, may in lieu thereof, pay cash equal to the
10value of the fractional share. A certificate for a fractional
11share shall entitle the holder to exercise fractional voting
12rights, to receive dividends, and to participate in any of the
13assets of the bank in the event of liquidation.
14(Source: P.A. 92-483, eff. 8-23-01; 92-651, eff. 7-11-02.)
 
15    (205 ILCS 5/15)  (from Ch. 17, par. 322)
16    Sec. 15. Stock and stockholders. Unless otherwise provided
17for in this Act, provisions of general application to capital
18stock, preferred stock, and stockholders of a State bank shall
19be as follows:
20    (1) There shall be an annual meeting of the stockholders
21for the election of directors each year on the first business
22day in January, unless some other date shall be fixed by the
23by-laws. A special meeting of the stockholders may be called
24at any time by the board of directors, and otherwise as may be
25provided in the bylaws.

 

 

SB3726- 38 -LRB103 38817 RTM 68954 b

1    (2) Written or printed notice stating the place, day, and
2hour of the meeting, and in case of a special meeting, the
3purpose or purposes for which the meeting is called, shall be
4delivered not less than 10 nor more than 40 days before the
5date of the meeting either personally, electronically, or by
6mail, by or at the direction of the president, or the
7secretary, or the officer or persons calling the meeting, to
8each stockholder of record entitled to vote at the meeting. If
9mailed, the notice shall be deemed to be delivered when
10deposited in the United States mail with postage thereon
11prepaid addressed to the stockholder at his address as it
12appears on the records of the bank.
13    (3) Except as provided below in this paragraph (3), each
14outstanding share shall be entitled to one vote on each matter
15submitted to a vote at a meeting of stockholders. Shares of its
16own stock belonging to a bank shall not be voted, directly or
17indirectly, at any meeting and shall not be counted in
18determining the total number of outstanding shares at any
19given time, but shares of its own stock held by it in a
20fiduciary capacity may be voted and shall be counted in
21determining the total number of outstanding shares at any
22given time. A stockholder may vote either in person or by proxy
23executed in writing by the stockholder or by his duly
24authorized attorney-in-fact. No proxy shall be valid after 11
25months from the date of its execution, unless otherwise
26provided in the proxy. Except as provided below in this

 

 

SB3726- 39 -LRB103 38817 RTM 68954 b

1paragraph (3), in all elections for directors every
2stockholder (or subscriber to the stock prior to the issuance
3of a charter) shall have the right to vote, in person or by
4proxy, for the number of shares of stock owned by him, for as
5many persons as there are directors to be elected, or to
6cumulate the shares and give one candidate as many votes as the
7number of directors multiplied by the number of his or her
8shares of stock shall equal, or to distribute them on the same
9principle among as many candidates as he or she shall think
10fit. The bank charter of any bank organized on or after January
111, 1984 may limit or eliminate cumulative voting rights in all
12or specified circumstances, or may eliminate voting rights
13entirely, as to any class or classes or series of stock of the
14bank; provided that one class of shares or series thereof
15shall always have voting rights in respect of all matters in
16the bank. A bank organized prior to January 1, 1984 may amend
17its charter to eliminate cumulative voting rights under all or
18specified circumstances, or to eliminate voting rights
19entirely, as to any class or classes or series of stock of the
20bank; provided that one class of shares or series thereof
21shall always have voting rights in respect of all matters in
22the bank, and provided further that the proposal to eliminate
23the voting rights receives the approval of the holders of 70%
24of the outstanding shares of stock entitled to vote as
25provided in paragraph (b) (7) of Section 17. A majority of the
26outstanding shares represented in person or by proxy shall

 

 

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1constitute a quorum at a meeting of stockholders. In the
2absence of a quorum a meeting may be adjourned from time to
3time without notice to the stockholders.
4    (4) Whenever additional stock of a class is offered for
5sale, stockholders of record of the same class on the date of
6the offer shall have the right to subscribe to the proportion
7of the shares as the stock of the class held by them bears to
8the total of the outstanding stock of the class, and the price
9thereof may be in excess of par value. This right shall be
10transferable but shall terminate if not exercised within 60
11days of the offer, unless the Commissioner shall authorize a
12shorter time. If the right is not exercised, the stock shall
13not be re-offered for sale to others at a lower price without
14the stockholders of the same class again being accorded a
15preemptive right to subscribe at the lower price.
16Notwithstanding any of the provisions of this paragraph (4) or
17any other provision of law, stockholders shall not have any
18preemptive or other right to subscribe for or to purchase or
19acquire shares of capital stock issued or to be issued under a
20stock-option plan or upon conversion of preferred stock or
21convertible debentures or other convertible indebtedness that
22has been approved by stockholders in the manner required by
23the provisions of subsection (5) of Section 14 hereof or to
24treasury stock acquired pursuant to subsection (6) of Section
2514.
26    (5) For the purpose of determining stockholders entitled

 

 

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1to notice of or to vote at any meeting of stockholders, or
2stockholders entitled to receive payment of any dividend, or
3in order to make a determination of stockholders for any other
4proper purpose, the board of directors of a bank may provide
5that the stock transfer books shall be closed for a stated
6period not to exceed, in any case, 40 days. In lieu of closing
7the stock transfer books, the board of directors may fix in
8advance a date as the record date for any determination of
9stockholders, the date in any case to be not more than 40 days,
10and in case of a meeting of stockholders, not less than 10 days
11prior to the date on which the particular action, requiring
12the determination of stockholders, is to be taken. If the
13stock transfer books are not closed and no record date is fixed
14for the determination of stockholders entitled to notice of or
15to vote at a meeting of stockholders, or stockholders entitled
16to receive payment of a dividend, the date on which notice of a
17meeting is delivered mailed or the date on which the
18resolution of the board of directors declaring the dividend is
19adopted, as the case may be, shall be the record date for the
20determination of stockholders.
21    (6) Stock standing in the name of another corporation,
22domestic or foreign, may be voted by the officer, agent, or
23proxy as the by-laws of the corporation may prescribe, or, in
24the absence of such provision, as the board of directors of the
25corporation may determine. Stock standing in the name of a
26deceased person may be voted by his or her administrator or

 

 

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1executor, either in person or by proxy. Stock standing in the
2name of a guardian or trustee may be voted by that fiduciary
3either in person or by proxy. Shares standing in the name of a
4receiver may be voted by the receiver, and shares held by or
5under control of a receiver may be voted by the receiver
6without the transfer thereof into his or her name if authority
7so to do be contained in an appropriate order of the court by
8which the receiver was appointed. A stockholder whose shares
9of stock are pledged shall be entitled to vote those shares
10until the shares have been transferred into the name of the
11pledgee, and thereafter the pledgee shall be entitled to vote
12the shares so transferred.
13    (7) Shares of stock shall be transferable in accordance
14with the general laws of this State governing the transfer of
15corporate shares.
16    (8) The president and any other officer designated by the
17board of directors of every State bank shall cause to be kept
18at all times a full and correct list of the names and
19residences of all the shareholders in the State bank and the
20number of shares held by each in the office where its business
21is transacted. The list shall be subject to the inspection of
22all the shareholders of the State bank and the officers
23authorized to assess taxes under State authority during
24business hours of each day in which business may be legally
25transacted. A copy of the list, verified by the oath of the
26president or cashier, shall be transmitted to the Commissioner

 

 

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1of Banks and Real Estate within 10 days of any demand therefor
2made by the Commissioner.
3    (9) Any number of shareholders of a bank may create a
4voting trust for the purpose of conferring upon a trustee or
5trustees the right to vote or otherwise represent their shares
6for a period of not to exceed 10 years by entering into a
7written voting trust agreement specifying the terms and
8conditions of the voting trust and by transferring their
9shares to the trustee or trustees for the purposes of the
10agreement. The trust agreement shall not become effective
11until a counterpart of the agreement is deposited with the
12bank at its main banking premises. The counterpart of the
13voting trust agreement so deposited with the bank shall be
14subject to the same right of examination by a shareholder of
15the bank, in person or by agent or attorney, as is the record
16of shareholders of the bank and shall be subject to
17examination by any holder of a beneficial interest in the
18voting trust, either in person or by agent or attorney, at any
19reasonable time for any proper purpose.
20    (10) Voting agreements. Shareholders may provide for the
21voting of their shares by signing an agreement for that
22purpose. A voting agreement created under this paragraph is
23not subject to the provisions of paragraph (9).
24    A voting agreement created under this paragraph is
25specifically enforceable in accordance with the principles of
26equity.

 

 

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1    (11) Unless expressly prohibited by the charter or bylaws
2and subject to applicable requirements of this Act, the board
3of directors may provide by resolution that stockholders may
4attend, participate in, act in, and vote at an annual meeting
5or special meeting through the use of a conference telephone
6or interactive technology, including, but not limited to,
7electronic transmission, internet usage, or remote
8communication, by means of which all persons participating in
9the meeting can communicate with each other. Participation
10through the use of a conference telephone or interactive
11technology shall constitute attendance, presence, and
12representation in person at the annual meeting or special
13meeting of the person or persons so participating and count
14towards the quorum required to conduct business at the
15meeting. The following conditions shall apply to any virtual
16meeting of the stockholders:
17        (a) the bank must internally possess or retain the
18    technological capacity to facilitate virtual meeting
19    attendance, participation, communication, and voting; and
20        (b) the stockholders must receive notice of the use of
21    a virtual meeting format and appropriate instructions for
22    joining, participating, and voting during the virtual
23    meeting at least 7 days before the virtual meeting.
24(Source: P.A. 95-924, eff. 8-26-08.)
 
25    (205 ILCS 5/16)  (from Ch. 17, par. 323)

 

 

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1    Sec. 16. Directors. The business and affairs of a State
2bank shall be managed by its board of directors that shall
3exercise its powers as follows:
4    (1) Directors shall be elected as provided in this Act.
5Any omission to elect a director or directors shall not impair
6any of the rights and privileges of the bank or of any person
7in any way interested. The existing directors shall hold
8office until their successors are elected and qualify.
9    (2) (a) Notwithstanding the provisions of any charter
10    heretofore or hereafter issued, the number of directors,
11    not fewer than 5 nor more than 25, may be fixed from time
12    to time by the stockholders at any meeting of the
13    stockholders called for the purpose of electing directors
14    or changing the number thereof by the affirmative vote of
15    at least two-thirds of the outstanding stock entitled to
16    vote at the meeting, and the number so fixed shall be the
17    board regardless of vacancies until the number of
18    directors is thereafter changed by similar action.
19        (b) Notwithstanding the minimum number of directors
20    specified in paragraph (a) of this subsection, a State
21    bank that has been in existence for 10 years or more and
22    has less than $20,000,000 in assets, as of the December 31
23    immediately preceding the annual meeting of shareholders
24    at which directors are elected, may, subject to the
25    approval of the Commissioner, have a minimum of 3
26    directors; provided that if a State bank has fewer than 5

 

 

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1    directors, at least one director shall not be an officer
2    or employee of the bank. The Commissioner shall annually
3    review the appropriateness of the grant of authority to
4    have a reduced minimum number of directors pursuant to
5    this paragraph (b).
6    (3) Except as otherwise provided in this paragraph (3),
7directors shall hold office until the next annual meeting of
8the stockholders succeeding their election or until their
9successors are elected and qualify. If the board of directors
10consists of 6 or more members, in lieu of electing the
11membership of the whole board of directors annually, the
12charter or by-laws of a State bank may provide that the
13directors shall be divided into either 2 or 3 classes, each
14class to be as nearly equal in number as is possible. The term
15of office of directors of the first class shall expire at the
16first annual meeting of the stockholders after their election,
17that of the second class shall expire at the second annual
18meeting after their election, and that of the third class, if
19any, shall expire at the third annual meeting after their
20election. At each annual meeting after classification, the
21number of directors equal to the number of the class whose
22terms expire at the time of the meeting shall be elected to
23hold office until the second succeeding annual meeting, if
24there be 2 classes, or until the third succeeding annual
25meeting, if there be 3 classes. Vacancies may be filled by
26stockholders at a special meeting called for the purpose.

 

 

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1    If authorized by the bank's by-laws or an amendment
2thereto, the directors of a State bank may properly fill a
3vacancy or vacancies arising between shareholders' meetings,
4but at no time may the number of directors selected to fill a
5vacancy in this manner during any interim period between
6shareholders' meetings exceed 33 1/3% of the total membership
7of the board of directors.
8    (4) The board of directors shall hold regular meetings at
9least once each month, provided that, upon prior written
10approval by the Commissioner, the board of directors may hold
11regular meetings less frequently than once each month but at
12least once each calendar quarter. A special meeting of the
13board of directors may be held as provided by the by-laws. A
14special meeting of the board of directors may also be held upon
15call by the Commissioner or a bank examiner appointed under
16the provisions of this Act upon not less than 12 hours notice
17of the meeting by personal service of the notice, by
18electronic delivery of the notice, or by mailing the notice to
19each of the directors at his residence as shown by the books of
20the bank. A majority of the board of directors shall
21constitute a quorum for the transaction of business unless a
22greater number is required by the charter or the by-laws. The
23act of the majority of the directors present at a meeting at
24which a quorum is present shall be the act of the board of
25directors unless the act of a greater number is required by the
26charter or by the by-laws.

 

 

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1    (5) A member of the board of directors shall be elected
2president. The board of directors may appoint other officers,
3as the by-laws may provide, and fix their salaries to carry on
4the business of the bank. The board of directors may make and
5amend by-laws (not inconsistent with this Act) for the
6government of the bank and may, by the affirmative vote of a
7majority of the board of directors, establish reasonable
8compensation of all directors for services to the corporation
9as directors, officers, or otherwise. An officer, whether
10elected or appointed by the board of directors or appointed
11pursuant to the by-laws, may be removed by the board of
12directors at any time.
13    (6) The board of directors shall cause suitable books and
14records of all the bank's transactions to be kept.
15    (7) (a) In discharging the duties of their respective
16    positions, the board of directors, committees of the
17    board, and individual directors may, in considering the
18    best long term and short term interests of the bank,
19    consider the effects of any action (including, without
20    limitation, action that may involve or relate to a merger
21    or potential merger or to a change or potential change in
22    control of the bank) upon employees, depositors,
23    suppliers, and customers of the corporation or its
24    subsidiaries, communities in which the main banking
25    premises, branches, offices, or other establishments of
26    the bank or its subsidiaries are located, and all

 

 

SB3726- 49 -LRB103 38817 RTM 68954 b

1    pertinent factors.
2        (b) In discharging the duties of their respective
3    positions, the board of directors, committees of the
4    board, and individual directors shall be entitled to rely
5    on advice, information, opinions, reports or statements,
6    including financial statements and financial data,
7    prepared or presented by: (i) one or more officers or
8    employees of the bank whom the director believes to be
9    reliable and competent in the matter presented; (ii) one
10    or more counsels, accountants, or other consultants as to
11    matters that the director believes to be within that
12    person's professional or expert competence; or (iii) a
13    committee of the board upon which the director does not
14    serve, as to matters within that committee's designated
15    authority; provided that the director's reliance under
16    this paragraph (b) is placed in good faith, after
17    reasonable inquiry if the need for such inquiry is
18    apparent under the circumstances and without knowledge
19    that would cause such reliance to be unreasonable.
20(Source: P.A. 91-452, eff. 1-1-00; 92-476, eff. 8-23-01.)
 
21    (205 ILCS 5/16.5)
22    Sec. 16.5. Employment of persons with convictions. Except
23with the prior written consent of the Commissioner, no State
24bank shall knowingly employ or otherwise permit an individual
25to serve as an officer, director, employee, or agent of the

 

 

SB3726- 50 -LRB103 38817 RTM 68954 b

1State bank if the individual has been convicted of a felony or
2of any criminal offense relating to dishonesty or breach of
3trust.
4(Source: P.A. 90-301, eff. 8-1-97.)
 
5    (205 ILCS 5/20)  (from Ch. 17, par. 327)
6    Sec. 20. Resulting national bank or insured savings
7association. Nothing in this Act shall be construed to require
8the approval of any Illinois State authority as a condition to
9the right of a State bank, pursuant to the laws of the United
10States or of this State, to be converted into a national bank
11or insured savings association or to merge with an insured
12savings association or with a national bank under a national
13charter. The action to be taken by such merging or converting
14State bank and its rights and liabilities and those of its
15stockholders and of its dissenting stockholders shall be the
16same as those prescribed for a State bank merging with, or
17converting into, a national bank or insured savings
18association that has received its charter from an agency of
19the United States Government at the time of the action by the
20law of the United States and not by the law of this State
21unless the State bank merges with or converts to a savings and
22loan association or savings bank chartered under the laws of
23this State, except that an affirmative vote of the holders of
24at least two-thirds of the outstanding shares of stock of a
25State bank entitled to vote at a meeting called in conformity

 

 

SB3726- 51 -LRB103 38817 RTM 68954 b

1with Section 23 shall be required for the merger or
2conversion. Upon the completion of a merger or conversion,
3resulting in a national bank or insured savings association,
4the charter of any merging or converting State bank shall
5automatically terminate. Approval by the Commissioner to
6convert a State bank to a national bank or insured savings
7association or to merge a State bank into a national bank or
8insured savings association shall not be required under this
9Act. However, any such converting or merging State bank shall
10notify the Commissioner in writing of the proposed conversion
11or merger not less than 30 days prior to such conversion or
12merger and shall pay all accrued or outstanding assessments
13pursuant to Section 48 of this Act as of the date of conversion
14or merger.
15(Source: P.A. 89-567, eff. 7-26-96.)
 
16    (205 ILCS 5/32.1)  (from Ch. 17, par. 340)
17    Sec. 32.1. Loans to single individuals Single Females. No
18State bank shall require that single individuals who have
19reached the age of majority females to whom loans are made have
20cosigners on promissory notes negotiated to secure such loans
21unless such bank shall, under the same or similar
22circumstances, also require that single males who have reached
23the age of majority have cosigners on promissory notes
24negotiated to secure loans.
25(Source: P.A. 79-556.)
 

 

 

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1    (205 ILCS 5/40)  (from Ch. 17, par. 350)
2    Sec. 40. Prohibited activities. The Commissioner, deputy
3commissioners, and employees of the Department of Financial
4and Professional Regulation Office of Banks and Real Estate
5shall be subject to the restrictions provided in Section 2.5
6of the Division of Banking Act including, without limitation,
7the restrictions on (i) owning shares of stock or holding any
8other equity interest in an entity regulated under this Act or
9in any corporation or company that owns or controls an entity
10regulated under this Act; (ii) being an officer, director,
11employee, or agent of an entity regulated under this Act; and
12(iii) obtaining a loan or accepting a gratuity from an entity
13regulated under this Act.
14(Source: P.A. 96-1365, eff. 7-28-10.)
 
15    (205 ILCS 5/48)
16    Sec. 48. Secretary's powers; duties. The Secretary shall
17have the powers and authority, and is charged with the duties
18and responsibilities designated in this Act, and a State bank
19shall not be subject to any other visitorial power other than
20as authorized by this Act, except those vested in the courts,
21or upon prior consultation with the Secretary, a foreign bank
22regulator with an appropriate supervisory interest in the
23parent or affiliate of a State bank. In the performance of the
24Secretary's duties:

 

 

SB3726- 53 -LRB103 38817 RTM 68954 b

1        (1) The Commissioner shall call for statements from
2    all State banks as provided in Section 47 at least one time
3    during each calendar quarter.
4        (2) (a) The Commissioner, as often as the Commissioner
5    shall deem necessary or proper, and no less frequently
6    than 18 months following the preceding examination, shall
7    appoint a suitable person or persons to make an
8    examination of the affairs of every State bank, except
9    that for every eligible State bank, as defined by
10    regulation, the Commissioner in lieu of the examination
11    may accept on an alternating basis the examination made by
12    the eligible State bank's appropriate federal banking
13    agency pursuant to Section 111 of the Federal Deposit
14    Insurance Corporation Improvement Act of 1991, provided
15    the appropriate federal banking agency has made such an
16    examination. A person so appointed shall not be a
17    stockholder or officer or employee of any bank which that
18    person may be directed to examine, and shall have powers
19    to make a thorough examination into all the affairs of the
20    bank and in so doing to examine any of the officers or
21    agents or employees thereof on oath and shall make a full
22    and detailed report of the condition of the bank to the
23    Commissioner. In making the examination the examiners
24    shall include an examination of the affairs of all the
25    affiliates of the bank, as defined in subsection (b) of
26    Section 35.2 of this Act, or subsidiaries of the bank as

 

 

SB3726- 54 -LRB103 38817 RTM 68954 b

1    shall be necessary to disclose fully the conditions of the
2    subsidiaries or affiliates, the relations between the bank
3    and the subsidiaries or affiliates and the effect of those
4    relations upon the affairs of the bank, and in connection
5    therewith shall have power to examine any of the officers,
6    directors, agents, or employees of the subsidiaries or
7    affiliates on oath. After May 31, 1997, the Commissioner
8    may enter into cooperative agreements with state
9    regulatory authorities of other states to provide for
10    examination of State bank branches in those states, and
11    the Commissioner may accept reports of examinations of
12    State bank branches from those state regulatory
13    authorities. These cooperative agreements may set forth
14    the manner in which the other state regulatory authorities
15    may be compensated for examinations prepared for and
16    submitted to the Commissioner.
17        (b) After May 31, 1997, the Commissioner is authorized
18    to examine, as often as the Commissioner shall deem
19    necessary or proper, branches of out-of-state banks. The
20    Commissioner may establish and may assess fees to be paid
21    to the Commissioner for examinations under this subsection
22    (b). The fees shall be borne by the out-of-state bank,
23    unless the fees are borne by the state regulatory
24    authority that chartered the out-of-state bank, as
25    determined by a cooperative agreement between the
26    Commissioner and the state regulatory authority that

 

 

SB3726- 55 -LRB103 38817 RTM 68954 b

1    chartered the out-of-state bank.
2        (2.1) Pursuant to paragraph (a) of subsection (6) of
3    this Section, the Secretary shall adopt rules that ensure
4    consistency and due process in the examination process.
5    The Secretary may also establish guidelines that (i)
6    define the scope of the examination process and (ii)
7    clarify examination items to be resolved. The rules,
8    formal guidance, interpretive letters, or opinions
9    furnished to State banks by the Secretary may be relied
10    upon by the State banks.
11        (2.5) Whenever any State bank, any subsidiary or
12    affiliate of a State bank, or after May 31, 1997, any
13    branch of an out-of-state bank causes to be performed, by
14    contract or otherwise, any bank services for itself,
15    whether on or off its premises:
16            (a) that performance shall be subject to
17        examination by the Commissioner to the same extent as
18        if services were being performed by the bank or, after
19        May 31, 1997, branch of the out-of-state bank itself
20        on its own premises; and
21            (b) the bank or, after May 31, 1997, branch of the
22        out-of-state bank shall notify the Commissioner of the
23        existence of a service relationship. The notification
24        shall be submitted with the first statement of
25        condition (as required by Section 47 of this Act) due
26        after the making of the service contract or the

 

 

SB3726- 56 -LRB103 38817 RTM 68954 b

1        performance of the service, whichever occurs first.
2        The Commissioner shall be notified of each subsequent
3        contract in the same manner.
4        For purposes of this subsection (2.5), the term "bank
5    services" means services such as sorting and posting of
6    checks and deposits, computation and posting of interest
7    and other credits and charges, preparation and mailing of
8    checks, statements, notices, and similar items, or any
9    other clerical, bookkeeping, accounting, statistical, or
10    similar functions performed for a State bank, including,
11    but not limited to, electronic data processing related to
12    those bank services.
13        (3) The expense of administering this Act, including
14    the expense of the examinations of State banks as provided
15    in this Act, shall to the extent of the amounts resulting
16    from the fees provided for in paragraphs (a), (a-2), and
17    (b) of this subsection (3) be assessed against and borne
18    by the State banks:
19            (a) Each bank shall pay to the Secretary a Call
20        Report Fee which shall be paid in quarterly
21        installments equal to one-fourth of the sum of the
22        annual fixed fee of $800, plus a variable fee based on
23        the assets shown on the quarterly statement of
24        condition delivered to the Secretary in accordance
25        with Section 47 for the preceding quarter according to
26        the following schedule: 16¢ per $1,000 of the first

 

 

SB3726- 57 -LRB103 38817 RTM 68954 b

1        $5,000,000 of total assets, 15¢ per $1,000 of the next
2        $20,000,000 of total assets, 13¢ per $1,000 of the
3        next $75,000,000 of total assets, 9¢ per $1,000 of the
4        next $400,000,000 of total assets, 7¢ per $1,000 of
5        the next $500,000,000 of total assets, and 5¢ per
6        $1,000 of all assets in excess of $1,000,000,000, of
7        the State bank. The Call Report Fee shall be
8        calculated by the Secretary and billed to the banks
9        for remittance at the time of the quarterly statements
10        of condition provided for in Section 47. The Secretary
11        may require payment of the fees provided in this
12        Section by an electronic transfer of funds or an
13        automatic debit of an account of each of the State
14        banks. In case more than one examination of any bank is
15        deemed by the Secretary to be necessary in any
16        examination frequency cycle specified in subsection
17        2(a) of this Section, and is performed at his
18        direction, the Secretary may assess a reasonable
19        additional fee to recover the cost of the additional
20        examination. In lieu of the method and amounts set
21        forth in this paragraph (a) for the calculation of the
22        Call Report Fee, the Secretary may specify by rule
23        that the Call Report Fees provided by this Section may
24        be assessed semiannually or some other period and may
25        provide in the rule the formula to be used for
26        calculating and assessing the periodic Call Report

 

 

SB3726- 58 -LRB103 38817 RTM 68954 b

1        Fees to be paid by State banks.
2            (a-1) If in the opinion of the Commissioner an
3        emergency exists or appears likely, the Commissioner
4        may assign an examiner or examiners to monitor the
5        affairs of a State bank with whatever frequency he
6        deems appropriate, including, but not limited to, a
7        daily basis. The reasonable and necessary expenses of
8        the Commissioner during the period of the monitoring
9        shall be borne by the subject bank. The Commissioner
10        shall furnish the State bank a statement of time and
11        expenses if requested to do so within 30 days of the
12        conclusion of the monitoring period.
13            (a-2) On and after January 1, 1990, the reasonable
14        and necessary expenses of the Commissioner during
15        examination of the performance of electronic data
16        processing services under subsection (2.5) shall be
17        borne by the banks for which the services are
18        provided. An amount, based upon a fee structure
19        prescribed by the Commissioner, shall be paid by the
20        banks or, after May 31, 1997, branches of out-of-state
21        banks receiving the electronic data processing
22        services along with the Call Report Fee assessed under
23        paragraph (a) of this subsection (3).
24            (a-3) After May 31, 1997, the reasonable and
25        necessary expenses of the Commissioner during
26        examination of the performance of electronic data

 

 

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1        processing services under subsection (2.5) at or on
2        behalf of branches of out-of-state banks shall be
3        borne by the out-of-state banks, unless those expenses
4        are borne by the state regulatory authorities that
5        chartered the out-of-state banks, as determined by
6        cooperative agreements between the Commissioner and
7        the state regulatory authorities that chartered the
8        out-of-state banks.
9            (b) "Fiscal year" for purposes of this Section 48
10        is defined as a period beginning July 1 of any year and
11        ending June 30 of the next year. The Commissioner
12        shall receive for each fiscal year, commencing with
13        the fiscal year ending June 30, 1987, a contingent fee
14        equal to the lesser of the aggregate of the fees paid
15        by all State banks under paragraph (a) of subsection
16        (3) for that year, or the amount, if any, whereby the
17        aggregate of the administration expenses, as defined
18        in paragraph (c), for that fiscal year exceeds the sum
19        of the aggregate of the fees payable by all State banks
20        for that year under paragraph (a) of subsection (3),
21        plus any amounts transferred into the Bank and Trust
22        Company Fund from the State Pensions Fund for that
23        year, plus all other amounts collected by the
24        Commissioner for that year under any other provision
25        of this Act, plus the aggregate of all fees collected
26        for that year by the Commissioner under the Corporate

 

 

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1        Fiduciary Act, excluding the receivership fees
2        provided for in Section 5-10 of the Corporate
3        Fiduciary Act, and the Foreign Banking Office Act. The
4        aggregate amount of the contingent fee thus arrived at
5        for any fiscal year shall be apportioned among,
6        assessed upon, and paid by the State banks and foreign
7        banking corporations, respectively, in the same
8        proportion that the fee of each under paragraph (a) of
9        subsection (3), respectively, for that year bears to
10        the aggregate for that year of the fees collected
11        under paragraph (a) of subsection (3). The aggregate
12        amount of the contingent fee, and the portion thereof
13        to be assessed upon each State bank and foreign
14        banking corporation, respectively, shall be determined
15        by the Commissioner and shall be paid by each,
16        respectively, within 120 days of the close of the
17        period for which the contingent fee is computed and is
18        payable, and the Commissioner shall give 20 days'
19        advance notice of the amount of the contingent fee
20        payable by the State bank and of the date fixed by the
21        Commissioner for payment of the fee.
22            (c) The "administration expenses" for any fiscal
23        year shall mean the ordinary and contingent expenses
24        for that year incident to making the examinations
25        provided for by, and for otherwise administering, this
26        Act, the Corporate Fiduciary Act, excluding the

 

 

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1        expenses paid from the Corporate Fiduciary
2        Receivership account in the Bank and Trust Company
3        Fund, the Foreign Banking Office Act, the Electronic
4        Fund Transfer Act, and the Illinois Bank Examiners'
5        Education Foundation Act, including all salaries and
6        other compensation paid for personal services rendered
7        for the State by officers or employees of the State,
8        including the Commissioner and the Deputy
9        Commissioners, communication equipment and services,
10        office furnishings, surety bond premiums, and travel
11        expenses of those officers and employees, employees,
12        expenditures or charges for the acquisition,
13        enlargement or improvement of, or for the use of, any
14        office space, building, or structure, or expenditures
15        for the maintenance thereof or for furnishing heat,
16        light, or power with respect thereto, all to the
17        extent that those expenditures are directly incidental
18        to such examinations or administration. The
19        Commissioner shall not be required by paragraph (c) or
20        (d-1) of this subsection (3) to maintain in any fiscal
21        year's budget appropriated reserves for accrued
22        vacation and accrued sick leave that is required to be
23        paid to employees of the Commissioner upon termination
24        of their service with the Commissioner in an amount
25        that is more than is reasonably anticipated to be
26        necessary for any anticipated turnover in employees,

 

 

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1        whether due to normal attrition or due to layoffs,
2        terminations, or resignations.
3            (d) The aggregate of all fees collected by the
4        Secretary under this Act, the Corporate Fiduciary Act,
5        or the Foreign Banking Office Act on and after July 1,
6        1979, shall be paid promptly after receipt of the
7        same, accompanied by a detailed statement thereof,
8        into the State treasury and shall be set apart in a
9        special fund to be known as the Bank and Trust Company
10        Fund, except as provided in paragraph (c) of
11        subsection (11) of this Section. All earnings received
12        from investments of funds in the Bank and Trust
13        Company Fund shall be deposited into the Bank and
14        Trust Company Fund and may be used for the same
15        purposes as fees deposited into that Fund. The amount
16        from time to time deposited into the Bank and Trust
17        Company Fund shall be used: (i) to offset the ordinary
18        administrative expenses of the Secretary as defined in
19        this Section or (ii) as a credit against fees under
20        paragraph (d-1) of this subsection (3). Nothing in
21        Public Act 81-131 shall prevent continuing the
22        practice of paying expenses involving salaries,
23        retirement, social security, and State-paid insurance
24        premiums of State officers by appropriations from the
25        General Revenue Fund. However, the General Revenue
26        Fund shall be reimbursed for those payments made on

 

 

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1        and after July 1, 1979, by an annual transfer of funds
2        from the Bank and Trust Company Fund. Moneys in the
3        Bank and Trust Company Fund may be transferred to the
4        Professions Indirect Cost Fund, as authorized under
5        Section 2105-300 of the Department of Professional
6        Regulation Law of the Civil Administrative Code of
7        Illinois.
8            Notwithstanding provisions in the State Finance
9        Act, as now or hereafter amended, or any other law to
10        the contrary, the Governor may, during any fiscal year
11        through January 10, 2011, from time to time direct the
12        State Treasurer and Comptroller to transfer a
13        specified sum not exceeding 10% of the revenues to be
14        deposited into the Bank and Trust Company Fund during
15        that fiscal year from that Fund to the General Revenue
16        Fund in order to help defray the State's operating
17        costs for the fiscal year. Notwithstanding provisions
18        in the State Finance Act, as now or hereafter amended,
19        or any other law to the contrary, the total sum
20        transferred during any fiscal year through January 10,
21        2011, from the Bank and Trust Company Fund to the
22        General Revenue Fund pursuant to this provision shall
23        not exceed during any fiscal year 10% of the revenues
24        to be deposited into the Bank and Trust Company Fund
25        during that fiscal year. The State Treasurer and
26        Comptroller shall transfer the amounts designated

 

 

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1        under this Section as soon as may be practicable after
2        receiving the direction to transfer from the Governor.
3            (d-1) Adequate funds shall be available in the
4        Bank and Trust Company Fund to permit the timely
5        payment of administration expenses. In each fiscal
6        year the total administration expenses shall be
7        deducted from the total fees collected by the
8        Commissioner and the remainder transferred into the
9        Cash Flow Reserve Account, unless the balance of the
10        Cash Flow Reserve Account prior to the transfer equals
11        or exceeds one-fourth of the total initial
12        appropriations from the Bank and Trust Company Fund
13        for the subsequent year, in which case the remainder
14        shall be credited to State banks and foreign banking
15        corporations and applied against their fees for the
16        subsequent year. The amount credited to each State
17        bank and foreign banking corporation shall be in the
18        same proportion as the Call Report Fees paid by each
19        for the year bear to the total Call Report Fees
20        collected for the year. If, after a transfer to the
21        Cash Flow Reserve Account is made or if no remainder is
22        available for transfer, the balance of the Cash Flow
23        Reserve Account is less than one-fourth of the total
24        initial appropriations for the subsequent year and the
25        amount transferred is less than 5% of the total Call
26        Report Fees for the year, additional amounts needed to

 

 

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1        make the transfer equal to 5% of the total Call Report
2        Fees for the year shall be apportioned among, assessed
3        upon, and paid by the State banks and foreign banking
4        corporations in the same proportion that the Call
5        Report Fees of each, respectively, for the year bear
6        to the total Call Report Fees collected for the year.
7        The additional amounts assessed shall be transferred
8        into the Cash Flow Reserve Account. For purposes of
9        this paragraph (d-1), the calculation of the fees
10        collected by the Commissioner shall exclude the
11        receivership fees provided for in Section 5-10 of the
12        Corporate Fiduciary Act.
13            (e) The Commissioner may upon request certify to
14        any public record in his keeping and shall have
15        authority to levy a reasonable charge for issuing
16        certifications of any public record in his keeping.
17            (f) In addition to fees authorized elsewhere in
18        this Act, the Commissioner may, in connection with a
19        review, approval, or provision of a service, levy a
20        reasonable charge to recover the cost of the review,
21        approval, or service.
22        (4) Nothing contained in this Act shall be construed
23    to limit the obligation relative to examinations and
24    reports of any State bank, deposits in which are to any
25    extent insured by the United States or any agency thereof,
26    nor to limit in any way the powers of the Commissioner with

 

 

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1    reference to examinations and reports of that bank.
2        (5) The nature and condition of the assets in or
3    investment of any bonus, pension, or profit sharing plan
4    for officers or employees of every State bank or, after
5    May 31, 1997, branch of an out-of-state bank shall be
6    deemed to be included in the affairs of that State bank or
7    branch of an out-of-state bank subject to examination by
8    the Commissioner under the provisions of subsection (2) of
9    this Section, and if the Commissioner shall find from an
10    examination that the condition of or operation of the
11    investments or assets of the plan is unlawful, fraudulent,
12    or unsafe, or that any trustee has abused his trust, the
13    Commissioner shall, if the situation so found by the
14    Commissioner shall not be corrected to his satisfaction
15    within 60 days after the Commissioner has given notice to
16    the board of directors of the State bank or out-of-state
17    bank of his findings, report the facts to the Attorney
18    General who shall thereupon institute proceedings against
19    the State bank or out-of-state bank, the board of
20    directors thereof, or the trustees under such plan as the
21    nature of the case may require.
22        (6) The Commissioner shall have the power:
23            (a) To promulgate reasonable rules for the purpose
24        of administering the provisions of this Act.
25            (a-5) To impose conditions on any approval issued
26        by the Commissioner if he determines that the

 

 

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1        conditions are necessary or appropriate. These
2        conditions shall be imposed in writing and shall
3        continue in effect for the period prescribed by the
4        Commissioner.
5            (b) To issue orders against any person, if the
6        Commissioner has reasonable cause to believe that an
7        unsafe or unsound banking practice has occurred, is
8        occurring, or is about to occur, if any person has
9        violated, is violating, or is about to violate any
10        law, rule, or written agreement with the Commissioner,
11        or for the purpose of administering the provisions of
12        this Act and any rule promulgated in accordance with
13        this Act.
14            (b-1) To enter into agreements with a bank
15        establishing a program to correct the condition of the
16        bank or its practices.
17            (c) To appoint hearing officers to execute any of
18        the powers granted to the Commissioner under this
19        Section for the purpose of administering this Act and
20        any rule promulgated in accordance with this Act and
21        otherwise to authorize, in writing, an officer or
22        employee of the Department of Financial and
23        Professional Regulation Office of Banks and Real
24        Estate to exercise his powers under this Act.
25            (d) To subpoena witnesses, to compel their
26        attendance, to administer an oath, to examine any

 

 

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1        person under oath, and to require the production of
2        any relevant books, papers, accounts, and documents in
3        the course of and pursuant to any investigation being
4        conducted, or any action being taken, by the
5        Commissioner in respect of any matter relating to the
6        duties imposed upon, or the powers vested in, the
7        Commissioner under the provisions of this Act or any
8        rule promulgated in accordance with this Act.
9            (e) To conduct hearings.
10        (7) Whenever, in the opinion of the Secretary, any
11    director, officer, employee, or agent of a State bank or
12    any subsidiary or bank holding company of the bank or,
13    after May 31, 1997, of any branch of an out-of-state bank
14    or any subsidiary or bank holding company of the bank
15    shall have violated any law, rule, or order relating to
16    that bank or any subsidiary or bank holding company of the
17    bank, shall have obstructed or impeded any examination or
18    investigation by the Secretary, shall have engaged in an
19    unsafe or unsound practice in conducting the business of
20    that bank or any subsidiary or bank holding company of the
21    bank, or shall have violated any law or engaged or
22    participated in any unsafe or unsound practice in
23    connection with any financial institution or other
24    business entity such that the character and fitness of the
25    director, officer, employee, or agent does not assure
26    reasonable promise of safe and sound operation of the

 

 

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1    State bank, the Secretary may issue an order of removal.
2    If, in the opinion of the Secretary, any former director,
3    officer, employee, or agent of a State bank or any
4    subsidiary or bank holding company of the bank, prior to
5    the termination of his or her service with that bank or any
6    subsidiary or bank holding company of the bank, violated
7    any law, rule, or order relating to that State bank or any
8    subsidiary or bank holding company of the bank, obstructed
9    or impeded any examination or investigation by the
10    Secretary, engaged in an unsafe or unsound practice in
11    conducting the business of that bank or any subsidiary or
12    bank holding company of the bank, or violated any law or
13    engaged or participated in any unsafe or unsound practice
14    in connection with any financial institution or other
15    business entity such that the character and fitness of the
16    director, officer, employee, or agent would not have
17    assured reasonable promise of safe and sound operation of
18    the State bank, the Secretary may issue an order
19    prohibiting that person from further service with a bank
20    or any subsidiary or bank holding company of the bank as a
21    director, officer, employee, or agent. An order issued
22    pursuant to this subsection shall be served upon the
23    director, officer, employee, or agent. A copy of the order
24    shall be sent to each director of the bank affected by
25    registered mail. A copy of the order shall also be served
26    upon the bank of which he is a director, officer,

 

 

SB3726- 70 -LRB103 38817 RTM 68954 b

1    employee, or agent, whereupon he shall cease to be a
2    director, officer, employee, or agent of that bank. The
3    Secretary may institute a civil action against the
4    director, officer, or agent of the State bank or, after
5    May 31, 1997, of the branch of the out-of-state bank
6    against whom any order provided for by this subsection (7)
7    of this Section 48 has been issued, and against the State
8    bank or, after May 31, 1997, out-of-state bank, to enforce
9    compliance with or to enjoin any violation of the terms of
10    the order. Any person who has been the subject of an order
11    of removal or an order of prohibition issued by the
12    Secretary under this subsection or Section 5-6 of the
13    Corporate Fiduciary Act may not thereafter serve as
14    director, officer, employee, or agent of any State bank or
15    of any branch of any out-of-state bank, or of any
16    corporate fiduciary, as defined in Section 1-5.05 of the
17    Corporate Fiduciary Act, or of any other entity that is
18    subject to licensure or regulation by the Division of
19    Banking unless the Secretary has granted prior approval in
20    writing.
21        For purposes of this paragraph (7), "bank holding
22    company" has the meaning prescribed in Section 2 of the
23    Illinois Bank Holding Company Act of 1957.
24        (7.5) Notwithstanding the provisions of this Section,
25    the Secretary shall not:
26            (1) issue an order against a State bank or any

 

 

SB3726- 71 -LRB103 38817 RTM 68954 b

1        subsidiary organized under this Act for unsafe or
2        unsound banking practices solely because the entity
3        provides or has provided financial services to a
4        cannabis-related legitimate business;
5            (2) prohibit, penalize, or otherwise discourage a
6        State bank or any subsidiary from providing financial
7        services to a cannabis-related legitimate business
8        solely because the entity provides or has provided
9        financial services to a cannabis-related legitimate
10        business;
11            (3) recommend, incentivize, or encourage a State
12        bank or any subsidiary not to offer financial services
13        to an account holder or to downgrade or cancel the
14        financial services offered to an account holder solely
15        because:
16                (A) the account holder is a manufacturer or
17            producer, or is the owner, operator, or employee
18            of a cannabis-related legitimate business;
19                (B) the account holder later becomes an owner
20            or operator of a cannabis-related legitimate
21            business; or
22                (C) the State bank or any subsidiary was not
23            aware that the account holder is the owner or
24            operator of a cannabis-related legitimate
25            business; and
26            (4) take any adverse or corrective supervisory

 

 

SB3726- 72 -LRB103 38817 RTM 68954 b

1        action on a loan made to an owner or operator of:
2                (A) a cannabis-related legitimate business
3            solely because the owner or operator owns or
4            operates a cannabis-related legitimate business;
5            or
6                (B) real estate or equipment that is leased to
7            a cannabis-related legitimate business solely
8            because the owner or operator of the real estate
9            or equipment leased the equipment or real estate
10            to a cannabis-related legitimate business.
11        (8) The Commissioner may impose civil penalties of up
12    to $100,000 against any person for each violation of any
13    provision of this Act, any rule promulgated in accordance
14    with this Act, any order of the Commissioner, or any other
15    action which in the Commissioner's discretion is an unsafe
16    or unsound banking practice.
17        (9) The Commissioner may impose civil penalties of up
18    to $100 against any person for the first failure to comply
19    with reporting requirements set forth in the report of
20    examination of the bank and up to $200 for the second and
21    subsequent failures to comply with those reporting
22    requirements.
23        (10) All final administrative decisions of the
24    Commissioner hereunder shall be subject to judicial review
25    pursuant to the provisions of the Administrative Review
26    Law. For matters involving administrative review, venue

 

 

SB3726- 73 -LRB103 38817 RTM 68954 b

1    shall be in either Sangamon County or Cook County.
2        (11) The endowment fund for the Illinois Bank
3    Examiners' Education Foundation shall be administered as
4    follows:
5            (a) (Blank).
6            (b) The Foundation is empowered to receive
7        voluntary contributions, gifts, grants, bequests, and
8        donations on behalf of the Illinois Bank Examiners'
9        Education Foundation from national banks and other
10        persons for the purpose of funding the endowment of
11        the Illinois Bank Examiners' Education Foundation.
12            (c) The aggregate of all special educational fees
13        collected by the Secretary and property received by
14        the Secretary on behalf of the Illinois Bank
15        Examiners' Education Foundation under this subsection
16        (11) on or after June 30, 1986, shall be either (i)
17        promptly paid after receipt of the same, accompanied
18        by a detailed statement thereof, into the State
19        treasury and shall be set apart in a special fund to be
20        known as the Illinois Bank Examiners' Education Fund
21        to be invested by either the Treasurer of the State of
22        Illinois in the Public Treasurers' Investment Pool or
23        in any other investment he is authorized to make or by
24        the Illinois State Board of Investment as the State
25        Banking Board of Illinois may direct or (ii) deposited
26        into an account maintained in a commercial bank or

 

 

SB3726- 74 -LRB103 38817 RTM 68954 b

1        corporate fiduciary in the name of the Illinois Bank
2        Examiners' Education Foundation pursuant to the order
3        and direction of the Board of Trustees of the Illinois
4        Bank Examiners' Education Foundation.
5        (12) (Blank).
6        (13) The Secretary may borrow funds from the General
7    Revenue Fund on behalf of the Bank and Trust Company Fund
8    if the Director of Banking certifies to the Governor that
9    there is an economic emergency affecting banking that
10    requires a borrowing to provide additional funds to the
11    Bank and Trust Company Fund. The borrowed funds shall be
12    paid back within 3 years and shall not exceed the total
13    funding appropriated to the Agency in the previous year.
14        (14) In addition to the fees authorized in this Act,
15    the Secretary may assess reasonable receivership fees
16    against any State bank that does not maintain insurance
17    with the Federal Deposit Insurance Corporation. All fees
18    collected under this subsection (14) shall be paid into
19    the Non-insured Institutions Receivership account in the
20    Bank and Trust Company Fund, as established by the
21    Secretary. The fees assessed under this subsection (14)
22    shall provide for the expenses that arise from the
23    administration of the receivership of any such institution
24    required to pay into the Non-insured Institutions
25    Receivership account, whether pursuant to this Act, the
26    Corporate Fiduciary Act, the Foreign Banking Office Act,

 

 

SB3726- 75 -LRB103 38817 RTM 68954 b

1    or any other Act that requires payments into the
2    Non-insured Institutions Receivership account. The
3    Secretary may establish by rule a reasonable manner of
4    assessing fees under this subsection (14).
5(Source: P.A. 102-558, eff. 8-20-21; 103-154, eff. 6-30-23.)
 
6    (205 ILCS 5/48.1)  (from Ch. 17, par. 360)
7    Sec. 48.1. Customer financial records; confidentiality.
8     (a) For the purpose of this Section, the term "financial
9records" means any original, any copy, or any summary of:
10        (1) a document granting signature authority over a
11    deposit or account;
12        (2) a statement, ledger card or other record on any
13    deposit or account, which shows each transaction in or
14    with respect to that account;
15        (3) a check, draft or money order drawn on a bank or
16    issued and payable by a bank; or
17        (4) any other item containing information pertaining
18    to any relationship established in the ordinary course of
19    a bank's business between a bank and its customer,
20    including financial statements or other financial
21    information provided by the customer.
22     (b) This Section does not prohibit:
23        (1) The preparation, examination, handling or
24    maintenance of any financial records by any officer,
25    employee or agent of a bank having custody of the records,

 

 

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1    or the examination of the records by a certified public
2    accountant engaged by the bank to perform an independent
3    audit.
4        (2) The examination of any financial records by, or
5    the furnishing of financial records by a bank to, any
6    officer, employee or agent of (i) the Commissioner of
7    Banks and Real Estate, (ii) after May 31, 1997, a state
8    regulatory authority authorized to examine a branch of a
9    State bank located in another state, (iii) the Comptroller
10    of the Currency, (iv) the Federal Reserve Board, or (v)
11    the Federal Deposit Insurance Corporation for use solely
12    in the exercise of his duties as an officer, employee, or
13    agent.
14        (3) The publication of data furnished from financial
15    records relating to customers where the data cannot be
16    identified to any particular customer or account.
17        (4) The making of reports or returns required under
18    Chapter 61 of the Internal Revenue Code of 1986.
19        (5) Furnishing information concerning the dishonor of
20    any negotiable instrument permitted to be disclosed under
21    the Uniform Commercial Code.
22        (6) The exchange in the regular course of business of
23    (i) credit information between a bank and other banks or
24    financial institutions or commercial enterprises, directly
25    or through a consumer reporting agency or (ii) financial
26    records or information derived from financial records

 

 

SB3726- 77 -LRB103 38817 RTM 68954 b

1    between a bank and other banks or financial institutions
2    or commercial enterprises for the purpose of conducting
3    due diligence pursuant to a purchase or sale involving the
4    bank or assets or liabilities of the bank.
5        (7) The furnishing of information to the appropriate
6    law enforcement authorities where the bank reasonably
7    believes it has been the victim of a crime.
8        (8) The furnishing of information under the Revised
9    Uniform Unclaimed Property Act.
10        (9) The furnishing of information under the Illinois
11    Income Tax Act and the Illinois Estate and
12    Generation-Skipping Transfer Tax Act.
13        (10) The furnishing of information under the federal
14    Currency and Foreign Transactions Reporting Act Title 31,
15    United States Code, Section 1051 et seq.
16        (11) The furnishing of information under any other
17    statute that by its terms or by regulations promulgated
18    thereunder requires the disclosure of financial records
19    other than by subpoena, summons, warrant, or court order.
20        (12) The furnishing of information about the existence
21    of an account of a person to a judgment creditor of that
22    person who has made a written request for that
23    information.
24        (13) The exchange in the regular course of business of
25    information between commonly owned banks in connection
26    with a transaction authorized under paragraph (23) of

 

 

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1    Section 5 and conducted at an affiliate facility.
2        (14) The furnishing of information in accordance with
3    the federal Personal Responsibility and Work Opportunity
4    Reconciliation Act of 1996. Any bank governed by this Act
5    shall enter into an agreement for data exchanges with a
6    State agency provided the State agency pays to the bank a
7    reasonable fee not to exceed its actual cost incurred. A
8    bank providing information in accordance with this item
9    shall not be liable to any account holder or other person
10    for any disclosure of information to a State agency, for
11    encumbering or surrendering any assets held by the bank in
12    response to a lien or order to withhold and deliver issued
13    by a State agency, or for any other action taken pursuant
14    to this item, including individual or mechanical errors,
15    provided the action does not constitute gross negligence
16    or willful misconduct. A bank shall have no obligation to
17    hold, encumber, or surrender assets until it has been
18    served with a subpoena, summons, warrant, court or
19    administrative order, lien, or levy.
20        (15) The exchange in the regular course of business of
21    information between a bank and any commonly owned
22    affiliate of the bank, subject to the provisions of the
23    Financial Institutions Insurance Sales Law.
24        (16) The furnishing of information to law enforcement
25    authorities, the Illinois Department on Aging and its
26    regional administrative and provider agencies, the

 

 

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1    Department of Human Services Office of Inspector General,
2    or public guardians: (i) upon subpoena by the
3    investigatory entity or the guardian, or (ii) if there is
4    suspicion by the bank that a customer who is an elderly
5    person or person with a disability has been or may become
6    the victim of financial exploitation. For the purposes of
7    this item (16), the term: (i) "elderly person" means a
8    person who is 60 or more years of age, (ii) "disabled
9    person with a disability" means a person who has or
10    reasonably appears to the bank to have a physical or
11    mental disability that impairs his or her ability to seek
12    or obtain protection from or prevent financial
13    exploitation, and (iii) "financial exploitation" means
14    tortious or illegal use of the assets or resources of an
15    elderly or disabled person or person with a disability,
16    and includes, without limitation, misappropriation of the
17    elderly or disabled person's assets or resources of the
18    elderly person or person with a disability by undue
19    influence, breach of fiduciary relationship, intimidation,
20    fraud, deception, extortion, or the use of assets or
21    resources in any manner contrary to law. A bank or person
22    furnishing information pursuant to this item (16) shall be
23    entitled to the same rights and protections as a person
24    furnishing information under the Adult Protective Services
25    Act and the Illinois Domestic Violence Act of 1986.
26        (17) The disclosure of financial records or

 

 

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1    information as necessary to effect, administer, or enforce
2    a transaction requested or authorized by the customer, or
3    in connection with:
4            (A) servicing or processing a financial product or
5        service requested or authorized by the customer;
6            (B) maintaining or servicing a customer's account
7        with the bank; or
8            (C) a proposed or actual securitization or
9        secondary market sale (including sales of servicing
10        rights) related to a transaction of a customer.
11        Nothing in this item (17), however, authorizes the
12    sale of the financial records or information of a customer
13    without the consent of the customer.
14        (18) The disclosure of financial records or
15    information as necessary to protect against actual or
16    potential fraud, unauthorized transactions, claims, or
17    other liability.
18        (19)(A) The disclosure of financial records or
19    information related to a private label credit program
20    between a financial institution and a private label party
21    in connection with that private label credit program. Such
22    information is limited to outstanding balance, available
23    credit, payment and performance and account history,
24    product references, purchase information, and information
25    related to the identity of the customer.
26        (B)(1) For purposes of this paragraph (19) of

 

 

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1    subsection (b) of Section 48.1, a "private label credit
2    program" means a credit program involving a financial
3    institution and a private label party that is used by a
4    customer of the financial institution and the private
5    label party primarily for payment for goods or services
6    sold, manufactured, or distributed by a private label
7    party.
8        (2) For purposes of this paragraph (19) of subsection
9    (b) of Section 48.1, a "private label party" means, with
10    respect to a private label credit program, any of the
11    following: a retailer, a merchant, a manufacturer, a trade
12    group, or any such person's affiliate, subsidiary, member,
13    agent, or service provider.
14        (20)(A) The furnishing of financial records of a
15    customer to the Department to aid the Department's initial
16    determination or subsequent re-determination of the
17    customer's eligibility for Medicaid and Medicaid long-term
18    care benefits for long-term care services, provided that
19    the bank receives the written consent and authorization of
20    the customer, which shall:
21            (1) have the customer's signature notarized;
22            (2) be signed by at least one witness who
23        certifies that he or she believes the customer to be of
24        sound mind and memory;
25            (3) be tendered to the bank at the earliest
26        practicable time following its execution,

 

 

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1        certification, and notarization;
2            (4) specifically limit the disclosure of the
3        customer's financial records to the Department; and
4            (5) be in substantially the following form:
 
5
CUSTOMER CONSENT AND AUTHORIZATION
6
FOR RELEASE OF FINANCIAL RECORDS

 
7I, ......................................., hereby authorize 
8       (Name of Customer) 
 
9............................................................. 
10(Name of Financial Institution)
 
11............................................................. 
12(Address of Financial Institution)
 
13to disclose the following financial records:
 
14any and all information concerning my deposit, savings, money
15market, certificate of deposit, individual retirement,
16retirement plan, 401(k) plan, incentive plan, employee benefit
17plan, mutual fund and loan accounts (including, but not
18limited to, any indebtedness or obligation for which I am a
19co-borrower, co-obligor, guarantor, or surety), and any and
20all other accounts in which I have an interest and any other

 

 

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1information regarding me in the possession of the Financial
2Institution,
 
3to the Illinois Department of Human Services or the Illinois
4Department of Healthcare and Family Services, or both ("the
5Department"), for the following purpose(s):
 
6to aid in the initial determination or re-determination by the
7State of Illinois of my eligibility for Medicaid long-term
8care benefits, pursuant to applicable law.
 
9I understand that this Consent and Authorization may be
10revoked by me in writing at any time before my financial
11records, as described above, are disclosed, and that this
12Consent and Authorization is valid until the Financial
13Institution receives my written revocation. This Consent and
14Authorization shall constitute valid authorization for the
15Department identified above to inspect all such financial
16records set forth above, and to request and receive copies of
17such financial records from the Financial Institution (subject
18to such records search and reproduction reimbursement policies
19as the Financial Institution may have in place). An executed
20copy of this Consent and Authorization shall be sufficient and
21as good as the original and permission is hereby granted to
22honor a photostatic or electronic copy of this Consent and
23Authorization. Disclosure is strictly limited to the

 

 

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1Department identified above and no other person or entity
2shall receive my financial records pursuant to this Consent
3and Authorization. By signing this form, I agree to indemnify
4and hold the Financial Institution harmless from any and all
5claims, demands, and losses, including reasonable attorneys
6fees and expenses, arising from or incurred in its reliance on
7this Consent and Authorization. As used herein, "Customer"
8shall mean "Member" if the Financial Institution is a credit
9union.
 
10....................... ...................... 
11(Date)                  (Signature of Customer)             
 
12                         ...................... 
13                         ...................... 
14                         (Address of Customer) 
 
15                         ...................... 
16                         (Customer's birth date) 
17                         (month/day/year) 
 
18The undersigned witness certifies that .................,
19known to me to be the same person whose name is subscribed as
20the customer to the foregoing Consent and Authorization,
21appeared before me and the notary public and acknowledged
22signing and delivering the instrument as his or her free and

 

 

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1voluntary act for the uses and purposes therein set forth. I
2believe him or her to be of sound mind and memory. The
3undersigned witness also certifies that the witness is not an
4owner, operator, or relative of an owner or operator of a
5long-term care facility in which the customer is a patient or
6resident.
 
7Dated: ................. ...................... 
8                         (Signature of Witness) 
 
9                         ...................... 
10                         (Print Name of Witness) 
 
11                         ...................... 
12                         ...................... 
13                         (Address of Witness) 
 
14State of Illinois)
15                 ) ss.
16County of .......)
 
17The undersigned, a notary public in and for the above county
18and state, certifies that .........., known to me to be the
19same person whose name is subscribed as the customer to the
20foregoing Consent and Authorization, appeared before me
21together with the witness, .........., in person and

 

 

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1acknowledged signing and delivering the instrument as the free
2and voluntary act of the customer for the uses and purposes
3therein set forth.
 
4Dated:.......................................................
5Notary Public:...............................................
6My commission expires:.......................................
 
7        (B) In no event shall the bank distribute the
8    customer's financial records to the long-term care
9    facility from which the customer seeks initial or
10    continuing residency or long-term care services.
11        (C) A bank providing financial records of a customer
12    in good faith relying on a consent and authorization
13    executed and tendered in accordance with this paragraph
14    (20) shall not be liable to the customer or any other
15    person in relation to the bank's disclosure of the
16    customer's financial records to the Department. The
17    customer signing the consent and authorization shall
18    indemnify and hold the bank harmless that relies in good
19    faith upon the consent and authorization and incurs a loss
20    because of such reliance. The bank recovering under this
21    indemnification provision shall also be entitled to
22    reasonable attorney's fees and the expenses of recovery.
23        (D) A bank shall be reimbursed by the customer for all
24    costs reasonably necessary and directly incurred in

 

 

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1    searching for, reproducing, and disclosing a customer's
2    financial records required or requested to be produced
3    pursuant to any consent and authorization executed under
4    this paragraph (20). The requested financial records shall
5    be delivered to the Department within 10 days after
6    receiving a properly executed consent and authorization or
7    at the earliest practicable time thereafter if the
8    requested records cannot be delivered within 10 days, but
9    delivery may be delayed until the final reimbursement of
10    all costs is received by the bank. The bank may honor a
11    photostatic or electronic copy of a properly executed
12    consent and authorization.
13        (E) Nothing in this paragraph (20) shall impair,
14    abridge, or abrogate the right of a customer to:
15            (1) directly disclose his or her financial records
16        to the Department or any other person; or
17            (2) authorize his or her attorney or duly
18        appointed agent to request and obtain the customer's
19        financial records and disclose those financial records
20        to the Department.
21        (F) For purposes of this paragraph (20), "Department"
22    means the Department of Human Services and the Department
23    of Healthcare and Family Services or any successor
24    administrative agency of either agency.
25     (c) Except as otherwise provided by this Act, a bank may
26not disclose to any person, except to the customer or his duly

 

 

SB3726- 88 -LRB103 38817 RTM 68954 b

1authorized agent, any financial records or financial
2information obtained from financial records relating to that
3customer of that bank unless:
4        (1) the customer has authorized disclosure to the
5    person;
6        (2) the financial records are disclosed in response to
7    a lawful subpoena, summons, warrant, citation to discover
8    assets, or court order which meets the requirements of
9    subsection (d) of this Section; or
10        (3) the bank is attempting to collect an obligation
11    owed to the bank and the bank complies with the provisions
12    of Section 2I of the Consumer Fraud and Deceptive Business
13    Practices Act.
14     (d) A bank shall disclose financial records under
15paragraph (2) of subsection (c) of this Section under a lawful
16subpoena, summons, warrant, citation to discover assets, or
17court order only after the bank sends a copy of the subpoena,
18summons, warrant, citation to discover assets, or court order
19to the customer person establishing the relationship with the
20bank, if living, and, otherwise the customer's person's
21personal representative, if known, at the customer's person's
22last known address by first class mail, postage prepaid,
23through a third-party commercial carrier or courier with
24delivery charge fully prepaid, by hand delivery, or by
25electronic delivery at an email address on file with the bank
26(if the customer person establishing the relationship with the

 

 

SB3726- 89 -LRB103 38817 RTM 68954 b

1bank has consented to receive electronic delivery and the
2customer , if the person establishing the relationship with
3the bank is a consumer, the person has consented under the
4consumer consent provisions set forth in Section 7001 of Title
515 of the United States Code), unless the bank is specifically
6prohibited from notifying the customer person by order of
7court or by applicable State or federal law. A bank shall not
8mail a copy of a subpoena to any customer person pursuant to
9this subsection if the subpoena was issued by a grand jury
10under the Statewide Grand Jury Act.
11     (e) Any officer or employee of a bank who knowingly and
12willfully furnishes financial records in violation of this
13Section is guilty of a business offense and, upon conviction,
14shall be fined not more than $1,000.
15     (f) Any person who knowingly and willfully induces or
16attempts to induce any officer or employee of a bank to
17disclose financial records in violation of this Section is
18guilty of a business offense and, upon conviction, shall be
19fined not more than $1,000.
20     (g) A bank shall be reimbursed for costs that are
21reasonably necessary and that have been directly incurred in
22searching for, reproducing, or transporting books, papers,
23records, or other data required or requested to be produced
24pursuant to a lawful subpoena, summons, warrant, citation to
25discover assets, or court order. The Commissioner shall
26determine the rates and conditions under which payment may be

 

 

SB3726- 90 -LRB103 38817 RTM 68954 b

1made.
2    (h) For the purposes of this Section, the term "customer"
3means an individual who obtains a financial product or service
4primarily for personal, family, or household purposes, or that
5individual's legal representative.
6(Source: P.A. 101-81, eff. 7-12-19; 102-873, eff. 5-13-22.)
 
7    (205 ILCS 5/48.2)  (from Ch. 17, par. 360.1)
8    Sec. 48.2. Prohibition against certain activities.
9    (a) Any bank, subsidiary, affiliate, officer or employee
10of such bank subject to this Act shall not:
11        (1) grant any loan on the prior condition, agreement
12    or understanding that the borrower contract with any
13    specific person or organization for the following:
14            (A) insurance services of an agent or broker;
15            (B) legal services rendered to the borrower;
16            (C) services of a real estate agent or broker; or
17            (D) real estate or property management services;
18        (2) require that insurance services, legal services,
19    real estate services or property management services be
20    placed with any subsidiary, affiliate, officer or employee
21    of any bank.
22    (b) Any bank or subsidiary, affiliate, employee, officer,
23banking house, branch bank, branch office, additional office
24or agency of such bank that is transacting an insurance
25business in this State shall comply with Article XLIV of the

 

 

SB3726- 91 -LRB103 38817 RTM 68954 b

1Illinois Insurance Code.
2    (c) Any officer or employee of a bank or its affiliates or
3subsidiaries who violates this Section is guilty of a business
4offense, and upon conviction shall be fined not more than
5$1,000. This Section does not create a private cause of action
6for civil damages.
7    (d) In any contract or loan which is secured by a mortgage,
8deed of trust, or conveyance in the nature of a mortgage, on
9residential real estate, the interest which is computed,
10calculated, charged, or collected pursuant to such contract or
11loan, or pursuant to any regulation or rule promulgated
12pursuant to this Act, may not be computed, calculated, charged
13or collected for any period of time occurring after the date on
14which the total indebtedness, with the exception of late
15payment penalties, is paid in full. For purposes of this
16subsection (d) of this Section 48.2, a prepayment shall mean
17the payment of the total indebtedness, with the exception of
18late payment penalties if incurred or charged, on any date
19before the date specified in the contract or loan agreement on
20which the total indebtedness shall be paid in full, or before
21the date on which all payments, if timely made, shall have been
22made. In the event of a prepayment of the indebtedness which is
23made on a date after the date on which interest on the
24indebtedness was last computed, calculated, charged, or
25collected but before the next date on which interest on the
26indebtedness was to be calculated, computed, charged, or

 

 

SB3726- 92 -LRB103 38817 RTM 68954 b

1collected, the lender may calculate, charge and collect
2interest on the indebtedness for the period which elapsed
3between the date on which the prepayment is made and the date
4on which interest on the indebtedness was last computed,
5calculated, charged or collected at a rate equal to 1/360 of
6the annual rate for each day which so elapsed, which rate shall
7be applied to the indebtedness outstanding as of the date of
8prepayment. The lender shall refund to the borrower any
9interest charged or collected which exceeds that which the
10lender may charge or collect pursuant to the preceding
11sentence. The provisions of this amendatory Act of 1985 shall
12apply only to contracts or loans entered into on or after
13January 1, 1986.
14    (e) Any bank, affiliate or subsidiary of such bank which
15shall engage in making residential mortgage financing
16transactions, shall with respect to each such transaction,
17provide the following:
18        (1) if a contractual obligation is intended to a
19    borrower, a mortgage commitment which shall set forth the
20    material terms, conditions and contingencies of such
21    commitment;
22        (2) if the servicing of a residential mortgage shall
23    be transferred from the original mortgagee, within 45 days
24    of such transfer, written notice sent by certified mail,
25    return receipt requested, to the mortgagor at the address
26    of the property, unless the mortgagor shall have directed

 

 

SB3726- 93 -LRB103 38817 RTM 68954 b

1    correspondence from the mortgagee shall be sent to another
2    address, which notice shall set forth: the name and
3    address of the transferee; the name, address and telephone
4    number to which inquiries by the residential mortgagor
5    should be addressed; and the name and address to which the
6    next 3 monthly installments are to be submitted to the
7    transferee and the amount of each of such monthly
8    installment; and
9        (3) if the servicing of a residential mortgage shall
10    be transferred again or if the information in paragraph
11    (2) above shall change, the notice with the corrected
12    information shall be provided within 45 days of such
13    subsequent transfer or change in information by the
14    transferee of the servicing of the mortgage at that time.
15(Source: P.A. 90-41, eff. 10-1-97.)
 
16    (205 ILCS 5/49)  (from Ch. 17, par. 361)
17    Sec. 49. False statements; penalty. It is unlawful for any
18officer, director, or employee of any State bank or subsidiary
19or holding company of that bank or, after May 31, 1997, branch
20out of an out-of-state bank subject to examination by the
21Commissioner or any person filing an application or notice or
22submitting information in connection with an application or
23notice with the Commissioner to willfully and knowingly
24subscribe to or make, or cause to be made, any false statement
25or false entry with intent to deceive any person or persons

 

 

SB3726- 94 -LRB103 38817 RTM 68954 b

1authorized to examine into the affairs of the bank or the
2subsidiary or holding company of that bank, the branch of an
3out-of-state bank, or the applicant or with intent to deceive
4the Commissioner or his administrative officers in the
5performance of their duties under this Act. A person who
6violates this Section shall be subject to the provisions of
7Section 48. Where financial loss to a bank is caused by those
8statements, the penalties shall be commensurate with that loss
9is guilty of a Class 3 felony.
10(Source: P.A. 92-483, eff. 8-23-01.)
 
11    (205 ILCS 5/78)  (from Ch. 17, par. 390)
12    Sec. 78. Board of banks and trust companies; creation,
13members, appointment. There is created a Board which shall be
14known as the State Banking Board of Illinois which shall
15consist of the Director of Banking, who shall be its chairman,
16and 12 additional members. The Board shall be comprised of
17individuals interested in the banking industry. One member Two
18members shall be from State banks having total assets of not
19more than $75,000,000 at the time of their appointment; one
20member 2 members shall be from State banks having total assets
21of more than $75,000,000, but not more than $150,000,000 at
22the time of their appointment; one member 2 members shall be
23from State banks having total assets of more than
24$150,000,000, but not more than $500,000,000 at the time of
25their appointment; one member 2 members shall be from State

 

 

SB3726- 95 -LRB103 38817 RTM 68954 b

1banks having total assets of more than $500,000,000, but not
2more than $2,000,000,000 at the time of their appointment; one
3member shall be from a State bank having total assets of more
4than $2,000,000,000 at the time of his or her appointment;
5five members shall be from State banks and shall be selected by
6the Secretary with the advice and recommendation of the
7Illinois Bankers Association and the Community Bankers
8Association of Illinois; and one member shall be from a
9savings bank organized under the Savings Bank Act. There shall
10be one alternate member from a savings bank organized under
11the Savings Bank Act whose role shall be to attend a meeting of
12the State Banking Board if and only if the sitting member from
13a savings bank is unable to attend the meeting. There shall be
142 public members, neither of whom shall be an officer or
15director of or owner, whether directly or indirectly, of more
16than 5% of the outstanding capital stock of any bank or savings
17bank. Members of the State Banking Board of Illinois cease to
18be eligible to serve on the Board once they no longer meet the
19requirements of their original appointment; however, a member
20from a State bank shall not be disqualified solely due to a
21change in the bank's asset size.
22(Source: P.A. 99-39, eff. 1-1-16; 100-783, eff. 8-10-18.)
 
23    (205 ILCS 5/80)  (from Ch. 17, par. 392)
24    Sec. 80. Board; powers. The Board shall have the following
25powers in addition to any others that may be granted to it by

 

 

SB3726- 96 -LRB103 38817 RTM 68954 b

1law:
2    (a) (Blank).
3    (b) To review, consider, and make recommendations to the
4Director of Banking upon any banking matters.
5    (c) (Blank).
6    (d) (Blank).
7    (e) To review, consider, and submit to the Director of
8Banking and to the Governor proposals for amendments to this
9Act or for changes in or additions to the administration
10thereof which in the opinion of the Board are necessary or
11desirable in order to assure the safe and sound conduct of the
12banking business.
13    (f) To require the Secretary to furnish the Board space
14for meetings to be held by the Board as well as to require the
15Secretary to provide such clerical and technical assistance as
16the Board may require.
17    (g) To adopt its own by-laws with respect to Board
18meetings and procedures. Such by-laws shall provide that:
19        (i) At least half A majority of the whole Board
20    constitutes a quorum.
21        (ii) A majority of the quorum shall constitute
22    effective action except that a vote of a majority of the
23    whole Board shall be necessary for recommendations made to
24    the Director of Banking and to the Governor with regard to
25    proposed amendments to this Act or to the administrative
26    practices hereunder.

 

 

SB3726- 97 -LRB103 38817 RTM 68954 b

1        (iii) The Board shall meet at least once in each
2    calendar year and upon the call of the Director of Banking
3    or a majority of the Board. The Director of Banking or a
4    majority of the Board may call such special or additional
5    meetings as may be deemed necessary or desirable.
6    (h) (Blank).
7    (i) (Blank).
8    (j) (Blank).
9    (k) (Blank).
10    (l) (Blank).
11    (m) To authorize the transfer of funds from the Illinois
12Bank Examiners' Education Fund to the Bank and Trust Company
13Fund. Any amount transferred shall be retransferred to the
14Illinois Bank Examiners' Education Fund from the Bank and
15Trust Company Fund within 3 years.
16    (n) To maintain and direct the investments of the Illinois
17Bank Examiners' Education Fund.
18    (o) To evaluate various courses, programs, curricula, and
19schools of continuing education and professional training that
20are available from within the United States for State banking
21department examination personnel and develop a program known
22as the Illinois Bank Examiners' Education Program. The Board
23shall determine which courses, programs, curricula, and
24schools will be included in the Program to be funded by the
25Foundation.
26    (p) To authorize the transfer of funds from the Bank and

 

 

SB3726- 98 -LRB103 38817 RTM 68954 b

1Trust Company Fund.
2(Source: P.A. 96-1163, eff. 1-1-11.)
 
3    Section 10. The Savings Bank Act is amended by changing
4Sections 1008, 4002, 4003, 4013, 6002, 7005, 8002, 8016, and
511008 as follows:
 
6    (205 ILCS 205/1008)  (from Ch. 17, par. 7301-8)
7    Sec. 1008. General corporate powers.
8    (a) A savings bank operating under this Act shall be a body
9corporate and politic and shall have all of the powers
10conferred by this Act including, but not limited to, the
11following powers:
12        (1) To sue and be sued, complain, and defend in its
13    corporate name and to have a common seal, which it may
14    alter or renew at pleasure.
15        (2) To obtain and maintain insurance by a deposit
16    insurance corporation as defined in this Act.
17        (3) To act as a fiscal agent for the United States, the
18    State of Illinois or any department, branch, arm, or
19    agency of the State or any unit of local government or
20    school district in the State, when duly designated for
21    that purpose, and as agent to perform reasonable functions
22    as may be required of it.
23        (4) To become a member of or deal with any corporation
24    or agency of the United States or the State of Illinois, to

 

 

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1    the extent that the agency assists in furthering or
2    facilitating its purposes or powers and to that end to
3    purchase stock or securities thereof or deposit money
4    therewith, and to comply with any other conditions of
5    membership or credit.
6        (5) To make donations in reasonable amounts for the
7    public welfare or for charitable, scientific, religious,
8    or educational purposes.
9        (6) To adopt and operate reasonable insurance, bonus,
10    profit sharing, and retirement plans for officers and
11    employees and for directors including, but not limited to,
12    advisory, honorary, and emeritus directors, who are not
13    officers or employees.
14        (7) To reject any application for membership; to
15    retire deposit accounts by enforced retirement as provided
16    in this Act and the bylaws; and to limit the issuance of,
17    or payments on, deposit accounts, subject, however, to
18    contractual obligations.
19        (8) To purchase stock or membership interests in
20    service corporations and to invest in any form of
21    indebtedness of any service corporation as defined in this
22    Act, subject to regulations of the Secretary.
23        (9) To purchase stock of a corporation whose principal
24    purpose is to operate a safe deposit company or escrow
25    service company.
26        (10) To exercise all the powers necessary to qualify

 

 

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1    as a trustee or custodian under federal or State law,
2    provided that the authority to accept and execute trusts
3    is subject to the provisions of the Corporate Fiduciary
4    Act and to the supervision of those activities by the
5    Secretary.
6        (11) (Blank).
7        (12) To establish, maintain, and operate terminals as
8    authorized by the Electronic Fund Transfer Act.
9        (13) To borrow or incur an obligation; and to pledge
10    its assets:
11            (A) to enable it to act as agent for the sale of
12        obligations of the United States;
13            (B) to secure deposits;
14            (C) to secure deposits of money whenever required
15        by the National Bankruptcy Act;
16            (D) (blank); and
17            (E) to secure trust funds commingled with the
18        savings bank's funds, whether deposited by the savings
19        bank or an affiliate of the savings bank, as required
20        under Section 2-8 of the Corporate Fiduciary Act.
21        (14) To accept for payment at a future date not to
22    exceed one year from the date of acceptance, drafts drawn
23    upon it by its customers; and to issue, advise, or confirm
24    letters of credit authorizing holders thereof to draw
25    drafts upon it or its correspondents.
26        (15) Subject to the regulations of the Secretary, to

 

 

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1    own and lease personal property acquired by the savings
2    bank at the request of a prospective lessee and, upon the
3    agreement of that person, to lease the personal property.
4        (16) To establish temporary service booths at any
5    International Fair in this State that is approved by the
6    United States Department of Commerce for the duration of
7    the international fair for the purpose of providing a
8    convenient place for foreign trade customers to exchange
9    their home countries' currency into United States currency
10    or the converse. To provide temporary periodic service to
11    persons residing in a bona fide nursing home, senior
12    citizens' retirement home, or long-term care facility.
13    These powers shall not be construed as establishing a new
14    place or change of location for the savings bank providing
15    the service booth.
16        (17) To indemnify its officers, directors, employees,
17    and agents, as authorized for corporations under Section
18    8.75 of the Business Corporation Act of 1983.
19        (18) To provide data processing services to others on
20    a for-profit basis.
21        (19) To utilize any electronic technology to provide
22    customers with home banking services.
23        (20) Subject to the regulations of the Secretary, to
24    enter into an agreement to act as a surety.
25        (21) Subject to the regulations of the Secretary, to
26    issue credit cards, extend credit therewith, and otherwise

 

 

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1    engage in or participate in credit card operations.
2        (22) To purchase for its own account shares of stock
3    of a bankers' bank, described in Section 13(b)(1) of the
4    Illinois Banking Act, on the same terms and conditions as
5    a bank may purchase such shares. In no event shall the
6    total amount of such stock held by a savings bank in such
7    bankers' bank exceed 10% of its capital and surplus
8    (including undivided profits) and in no event shall a
9    savings bank acquire more than 5% of any class of voting
10    securities of such bankers' bank.
11        (23) With respect to affiliate facilities:
12            (A) to conduct at affiliate facilities any of the
13        following transactions for and on behalf of any
14        affiliated depository institution, if so authorized by
15        the affiliate or affiliates: receiving deposits;
16        renewing deposits; cashing and issuing checks, drafts,
17        money orders, travelers checks, or similar
18        instruments; changing money; receiving payments on
19        existing indebtedness; and conducting ministerial
20        functions with respect to loan applications, servicing
21        loans, and providing loan account information; and, on
22        behalf of another commonly owned bank, if so
23        authorized by the other bank, all transactions that
24        the other bank is authorized or permitted to perform;
25        and
26            (B) to authorize an affiliated depository

 

 

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1        institution to conduct for and on behalf of it, any of
2        the transactions listed in this subsection at one or
3        more affiliate facilities.
4        A savings bank intending to conduct or to authorize an
5    affiliated depository institution to conduct at an
6    affiliate facility any of the transactions specified in
7    this subsection shall give written notice to the Secretary
8    at least 30 days before any such transaction is conducted
9    at an affiliate facility. All conduct under this
10    subsection shall be on terms consistent with safe and
11    sound banking practices and applicable law.
12        (24) Subject to Article XLIV of the Illinois Insurance
13    Code, to act as the agent for any fire, life, or other
14    insurance company authorized by the State of Illinois, by
15    soliciting and selling insurance and collecting premiums
16    on policies issued by such company; and may receive for
17    services so rendered such fees or commissions as may be
18    agreed upon between the said savings bank and the
19    insurance company for which it may act as agent; provided,
20    however, that no such savings bank shall in any case
21    assume or guarantee the payment of any premium on
22    insurance policies issued through its agency by its
23    principal; and provided further, that the savings bank
24    shall not guarantee the truth of any statement made by an
25    assured in filing his application for insurance.
26        (25) To become a member of the Federal Home Loan Bank

 

 

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1    and to have the powers granted to a savings association
2    organized under the Illinois Savings and Loan Act of 1985
3    or the laws of the United States, subject to regulations
4    of the Secretary.
5        (26) To offer any product or service that is at the
6    time authorized or permitted to a bank by applicable law,
7    but subject always to the same limitations and
8    restrictions that are applicable to the bank for the
9    product or service by such applicable law and subject to
10    the applicable provisions of the Financial Institutions
11    Insurance Sales Law and rules of the Secretary.
12    (b) If this Act or the regulations adopted under this Act
13fail to provide specific guidance in matters of corporate
14governance, the provisions of the Business Corporation Act of
151983 may be used, or if the savings bank is a limited liability
16company, the provisions of the Limited Liability Company Act
17shall be used.
18    (c) A savings bank may be organized as a limited liability
19company, may convert to a limited liability company, or may
20merge with and into a limited liability company, under the
21applicable laws of this State and of the United States,
22including any rules promulgated thereunder. A savings bank
23organized as a limited liability company shall be subject to
24the provisions of the Limited Liability Company Act in
25addition to this Act, provided that if a provision of the
26Limited Liability Company Act conflicts with a provision of

 

 

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1this Act or with any rule of the Secretary, the provision of
2this Act or the rule of the Secretary shall apply.
3    Any filing required to be made under the Limited Liability
4Company Act shall be made exclusively with the Secretary, and
5the Secretary shall possess the exclusive authority to
6regulate the savings bank as provided in this Act.
7    Any organization as, conversion to, and merger with or
8into a limited liability company shall be subject to the prior
9approval of the Secretary.
10    A savings bank that is a limited liability company shall
11be subject to all of the provisions of this Act in the same
12manner as a savings bank that is organized in stock form.
13    The Secretary may promulgate rules to ensure that a
14savings bank that is a limited liability company (i) is
15operating in a safe and sound manner and (ii) is subject to the
16Secretary's authority in the same manner as a savings bank
17that is organized in stock form.
18(Source: P.A. 102-558, eff. 8-20-21.)
 
19    (205 ILCS 205/4002)  (from Ch. 17, par. 7304-2)
20    Sec. 4002. Annual and special meetings. Dates of annual
21meetings of members or stockholders shall be specified in the
22bylaws. Failure to hold an annual meeting shall not cause a
23forfeiture or dissolution of the savings bank. Special
24meetings may be called by the board of directors, the holders
25of not less than 25% of the outstanding capital stock shares,

 

 

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1or by any other person as the bylaws may designate. The
2Commissioner may also call a special meeting with not less
3than 12 hours written or oral notice. Every annual or special
4meeting shall be held at the business office of the savings
5bank or, if the space is inadequate, in another place within
6the same county as shall be specifically designated in the
7notice of the meeting, or virtually. Unless expressly
8prohibited by the articles of incorporation or bylaws and
9subject to applicable requirements of this Act, the board of
10directors may provide by resolution that members or
11stockholders may attend, participate in, act in, and vote at
12an annual meeting or special meeting through the use of a
13conference telephone or interactive technology, including, but
14not limited to, electronic transmission, internet usage, or
15remote communication, by means of which all persons
16participating in the meeting can communicate with each other.
17Participation through the use of a conference telephone or
18interactive technology shall constitute attendance, presence,
19and representation in person at the annual meeting or special
20meeting of the person or persons so participating and count
21towards the quorum required to conduct business at the
22meeting. The following conditions shall apply to any virtual
23meeting of members or stockholders:
24    (a) the savings bank must internally possess or retain the
25technological capacity to facilitate virtual meeting
26attendance, participation, communication, and voting; and

 

 

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1    (b) members or stockholders must receive notice of the use
2of a virtual meeting format and appropriate instructions for
3joining, participating, and voting during the virtual meeting
4at least 7 days before the virtual meeting.
5(Source: P.A. 86-1213.)
 
6    (205 ILCS 205/4003)  (from Ch. 17, par. 7304-3)
7    Sec. 4003. Notice of meetings.
8    (a) Notice of an annual meeting shall be published once
9not fewer than 10 days nor more than 40 days before the date of
10the meeting. The notice shall also be displayed at the place of
11business of the savings bank in a manner to be prescribed by
12the Commissioner. The notice must state the time, place, and
13purpose of the meeting.
14    (b) For any special meeting or for any annual meeting that
15is to consider any proposition that requires an affirmative
16vote of two-thirds of the members or stockholders or any
17proposition to amend the articles of incorporation of the
18savings bank, the notice must be delivered personally,
19electronically, or by mail to the holders of stock, capital
20accounts, and membership entitled to notice of or to vote at
21the meeting, by mail, postmarked between 10 and 40 days before
22the date of the meeting, and must also be posted at the savings
23bank's offices as if for an annual meeting, beginning on the
24date notice is given. All notices must state the time, place,
25and purpose of the meeting. If mailed, the notice shall be

 

 

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1deemed to be delivered on the date on which it has been
2postmarked.
3(Source: P.A. 89-74, eff. 6-30-95.)
 
4    (205 ILCS 205/4013)  (from Ch. 17, par. 7304-13)
5    Sec. 4013. Access to books and records; communication with
6members and shareholders.
7    (a) Every member or shareholder shall have the right to
8inspect books and records of the savings bank that pertain to
9his accounts. Otherwise, the right of inspection and
10examination of the books and records shall be limited as
11provided in this Act, and no other person shall have access to
12the books and records nor shall be entitled to a list of the
13members or shareholders.
14    (b) For the purpose of this Section, the term "financial
15records" means any original, any copy, or any summary of (1) a
16document granting signature authority over a deposit or
17account; (2) a statement, ledger card, or other record on any
18deposit or account that shows each transaction in or with
19respect to that account; (3) a check, draft, or money order
20drawn on a savings bank or issued and payable by a savings
21bank; or (4) any other item containing information pertaining
22to any relationship established in the ordinary course of a
23savings bank's business between a savings bank and its
24customer, including financial statements or other financial
25information provided by the member or shareholder.

 

 

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1    (c) This Section does not prohibit:
2        (1) The preparation, examination, handling, or
3    maintenance of any financial records by any officer,
4    employee, or agent of a savings bank having custody of
5    records or examination of records by a certified public
6    accountant engaged by the savings bank to perform an
7    independent audit.
8        (2) The examination of any financial records by, or
9    the furnishing of financial records by a savings bank to,
10    any officer, employee, or agent of the Commissioner of
11    Banks and Real Estate or the federal depository
12    institution regulator for use solely in the exercise of
13    his duties as an officer, employee, or agent.
14        (3) The publication of data furnished from financial
15    records relating to members or holders of capital where
16    the data cannot be identified to any particular member,
17    shareholder, or account.
18        (4) The making of reports or returns required under
19    Chapter 61 of the Internal Revenue Code of 1986.
20        (5) Furnishing information concerning the dishonor of
21    any negotiable instrument permitted to be disclosed under
22    the Uniform Commercial Code.
23        (6) The exchange in the regular course of business of
24    (i) credit information between a savings bank and other
25    savings banks or financial institutions or commercial
26    enterprises, directly or through a consumer reporting

 

 

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1    agency or (ii) financial records or information derived
2    from financial records between a savings bank and other
3    savings banks or financial institutions or commercial
4    enterprises for the purpose of conducting due diligence
5    pursuant to a purchase or sale involving the savings bank
6    or assets or liabilities of the savings bank.
7        (7) The furnishing of information to the appropriate
8    law enforcement authorities where the savings bank
9    reasonably believes it has been the victim of a crime.
10        (8) The furnishing of information pursuant to the
11    Revised Uniform Unclaimed Property Act.
12        (9) The furnishing of information pursuant to the
13    Illinois Income Tax Act and the Illinois Estate and
14    Generation-Skipping Transfer Tax Act.
15        (10) The furnishing of information pursuant to the
16    federal Currency and Foreign Transactions Reporting Act,
17    (Title 31, United States Code, Section 1051 et seq.).
18        (11) The furnishing of information pursuant to any
19    other statute which by its terms or by regulations
20    promulgated thereunder requires the disclosure of
21    financial records other than by subpoena, summons,
22    warrant, or court order.
23        (12) The furnishing of information in accordance with
24    the federal Personal Responsibility and Work Opportunity
25    Reconciliation Act of 1996. Any savings bank governed by
26    this Act shall enter into an agreement for data exchanges

 

 

SB3726- 111 -LRB103 38817 RTM 68954 b

1    with a State agency provided the State agency pays to the
2    savings bank a reasonable fee not to exceed its actual
3    cost incurred. A savings bank providing information in
4    accordance with this item shall not be liable to any
5    account holder or other person for any disclosure of
6    information to a State agency, for encumbering or
7    surrendering any assets held by the savings bank in
8    response to a lien or order to withhold and deliver issued
9    by a State agency, or for any other action taken pursuant
10    to this item, including individual or mechanical errors,
11    provided the action does not constitute gross negligence
12    or willful misconduct. A savings bank shall have no
13    obligation to hold, encumber, or surrender assets until it
14    has been served with a subpoena, summons, warrant, court
15    or administrative order, lien, or levy.
16        (13) The furnishing of information to law enforcement
17    authorities, the Illinois Department on Aging and its
18    regional administrative and provider agencies, the
19    Department of Human Services Office of Inspector General,
20    or public guardians: (i) upon subpoena by the
21    investigatory entity or the guardian, or (ii) if there is
22    suspicion by the savings bank that a customer who is an
23    elderly person or person with a disability has been or may
24    become the victim of financial exploitation. For the
25    purposes of this item (13), the term: (i) "elderly person"
26    means a person who is 60 or more years of age, (ii) "person

 

 

SB3726- 112 -LRB103 38817 RTM 68954 b

1    with a disability" means a person who has or reasonably
2    appears to the savings bank to have a physical or mental
3    disability that impairs his or her ability to seek or
4    obtain protection from or prevent financial exploitation,
5    and (iii) "financial exploitation" means tortious or
6    illegal use of the assets or resources of an elderly
7    person or person with a disability, and includes, without
8    limitation, misappropriation of the assets or resources of
9    the elderly person or person with a disability by undue
10    influence, breach of fiduciary relationship, intimidation,
11    fraud, deception, extortion, or the use of assets or
12    resources in any manner contrary to law. A savings bank or
13    person furnishing information pursuant to this item (13)
14    shall be entitled to the same rights and protections as a
15    person furnishing information under the Adult Protective
16    Services Act and the Illinois Domestic Violence Act of
17    1986.
18        (14) The disclosure of financial records or
19    information as necessary to effect, administer, or enforce
20    a transaction requested or authorized by the member or
21    holder of capital, or in connection with:
22            (A) servicing or processing a financial product or
23        service requested or authorized by the member or
24        holder of capital;
25            (B) maintaining or servicing an account of a
26        member or holder of capital with the savings bank; or

 

 

SB3726- 113 -LRB103 38817 RTM 68954 b

1            (C) a proposed or actual securitization or
2        secondary market sale (including sales of servicing
3        rights) related to a transaction of a member or holder
4        of capital.
5        Nothing in this item (14), however, authorizes the
6    sale of the financial records or information of a member
7    or holder of capital without the consent of the member or
8    holder of capital.
9        (15) The exchange in the regular course of business of
10    information between a savings bank and any commonly owned
11    affiliate of the savings bank, subject to the provisions
12    of the Financial Institutions Insurance Sales Law.
13        (16) The disclosure of financial records or
14    information as necessary to protect against or prevent
15    actual or potential fraud, unauthorized transactions,
16    claims, or other liability.
17        (17)(a) The disclosure of financial records or
18    information related to a private label credit program
19    between a financial institution and a private label party
20    in connection with that private label credit program. Such
21    information is limited to outstanding balance, available
22    credit, payment and performance and account history,
23    product references, purchase information, and information
24    related to the identity of the customer.
25        (b)(1) For purposes of this paragraph (17) of
26    subsection (c) of Section 4013, a "private label credit

 

 

SB3726- 114 -LRB103 38817 RTM 68954 b

1    program" means a credit program involving a financial
2    institution and a private label party that is used by a
3    customer of the financial institution and the private
4    label party primarily for payment for goods or services
5    sold, manufactured, or distributed by a private label
6    party.
7        (2) For purposes of this paragraph (17) of subsection
8    (c) of Section 4013, a "private label party" means, with
9    respect to a private label credit program, any of the
10    following: a retailer, a merchant, a manufacturer, a trade
11    group, or any such person's affiliate, subsidiary, member,
12    agent, or service provider.
13        (18)(a) The furnishing of financial records of a
14    customer to the Department to aid the Department's initial
15    determination or subsequent re-determination of the
16    customer's eligibility for Medicaid and Medicaid long-term
17    care benefits for long-term care services, provided that
18    the savings bank receives the written consent and
19    authorization of the customer, which shall:
20            (1) have the customer's signature notarized;
21            (2) be signed by at least one witness who
22        certifies that he or she believes the customer to be of
23        sound mind and memory;
24            (3) be tendered to the savings bank at the
25        earliest practicable time following its execution,
26        certification, and notarization;

 

 

SB3726- 115 -LRB103 38817 RTM 68954 b

1            (4) specifically limit the disclosure of the
2        customer's financial records to the Department; and
3            (5) be in substantially the following form:
 
4
CUSTOMER CONSENT AND AUTHORIZATION
5
FOR RELEASE OF FINANCIAL RECORDS

 
6I, ......................................., hereby authorize 
7       (Name of Customer) 
 
8............................................................. 
9(Name of Financial Institution)
 
10............................................................. 
11(Address of Financial Institution)
 
12to disclose the following financial records:
 
13any and all information concerning my deposit, savings, money
14market, certificate of deposit, individual retirement,
15retirement plan, 401(k) plan, incentive plan, employee benefit
16plan, mutual fund and loan accounts (including, but not
17limited to, any indebtedness or obligation for which I am a
18co-borrower, co-obligor, guarantor, or surety), and any and
19all other accounts in which I have an interest and any other
20information regarding me in the possession of the Financial

 

 

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1Institution,
 
2to the Illinois Department of Human Services or the Illinois
3Department of Healthcare and Family Services, or both ("the
4Department"), for the following purpose(s):
 
5to aid in the initial determination or re-determination by the
6State of Illinois of my eligibility for Medicaid long-term
7care benefits, pursuant to applicable law.
 
8I understand that this Consent and Authorization may be
9revoked by me in writing at any time before my financial
10records, as described above, are disclosed, and that this
11Consent and Authorization is valid until the Financial
12Institution receives my written revocation. This Consent and
13Authorization shall constitute valid authorization for the
14Department identified above to inspect all such financial
15records set forth above, and to request and receive copies of
16such financial records from the Financial Institution (subject
17to such records search and reproduction reimbursement policies
18as the Financial Institution may have in place). An executed
19copy of this Consent and Authorization shall be sufficient and
20as good as the original and permission is hereby granted to
21honor a photostatic or electronic copy of this Consent and
22Authorization. Disclosure is strictly limited to the
23Department identified above and no other person or entity

 

 

SB3726- 117 -LRB103 38817 RTM 68954 b

1shall receive my financial records pursuant to this Consent
2and Authorization. By signing this form, I agree to indemnify
3and hold the Financial Institution harmless from any and all
4claims, demands, and losses, including reasonable attorneys
5fees and expenses, arising from or incurred in its reliance on
6this Consent and Authorization. As used herein, "Customer"
7shall mean "Member" if the Financial Institution is a credit
8union.
 
9....................... ...................... 
10(Date)                  (Signature of Customer)             
 
11                         ...................... 
12                         ...................... 
13                         (Address of Customer) 
 
14                         ...................... 
15                         (Customer's birth date) 
16                         (month/day/year) 
 
17The undersigned witness certifies that .................,
18known to me to be the same person whose name is subscribed as
19the customer to the foregoing Consent and Authorization,
20appeared before me and the notary public and acknowledged
21signing and delivering the instrument as his or her free and
22voluntary act for the uses and purposes therein set forth. I

 

 

SB3726- 118 -LRB103 38817 RTM 68954 b

1believe him or her to be of sound mind and memory. The
2undersigned witness also certifies that the witness is not an
3owner, operator, or relative of an owner or operator of a
4long-term care facility in which the customer is a patient or
5resident.
 
6Dated: ................. ...................... 
7                         (Signature of Witness) 
 
8                         ...................... 
9                         (Print Name of Witness) 
 
10                         ...................... 
11                         ...................... 
12                         (Address of Witness) 
 
13State of Illinois)
14                 ) ss.
15County of .......)
 
16The undersigned, a notary public in and for the above county
17and state, certifies that .........., known to me to be the
18same person whose name is subscribed as the customer to the
19foregoing Consent and Authorization, appeared before me
20together with the witness, .........., in person and
21acknowledged signing and delivering the instrument as the free

 

 

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1and voluntary act of the customer for the uses and purposes
2therein set forth.
 
3Dated:.......................................................
4Notary Public:...............................................
5My commission expires:.......................................
 
6        (b) In no event shall the savings bank distribute the
7    customer's financial records to the long-term care
8    facility from which the customer seeks initial or
9    continuing residency or long-term care services.
10        (c) A savings bank providing financial records of a
11    customer in good faith relying on a consent and
12    authorization executed and tendered in accordance with
13    this paragraph (18) shall not be liable to the customer or
14    any other person in relation to the savings bank's
15    disclosure of the customer's financial records to the
16    Department. The customer signing the consent and
17    authorization shall indemnify and hold the savings bank
18    harmless that relies in good faith upon the consent and
19    authorization and incurs a loss because of such reliance.
20    The savings bank recovering under this indemnification
21    provision shall also be entitled to reasonable attorney's
22    fees and the expenses of recovery.
23        (d) A savings bank shall be reimbursed by the customer
24    for all costs reasonably necessary and directly incurred

 

 

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1    in searching for, reproducing, and disclosing a customer's
2    financial records required or requested to be produced
3    pursuant to any consent and authorization executed under
4    this paragraph (18). The requested financial records shall
5    be delivered to the Department within 10 days after
6    receiving a properly executed consent and authorization or
7    at the earliest practicable time thereafter if the
8    requested records cannot be delivered within 10 days, but
9    delivery may be delayed until the final reimbursement of
10    all costs is received by the savings bank. The savings
11    bank may honor a photostatic or electronic copy of a
12    properly executed consent and authorization.
13        (e) Nothing in this paragraph (18) shall impair,
14    abridge, or abrogate the right of a customer to:
15            (1) directly disclose his or her financial records
16        to the Department or any other person; or
17            (2) authorize his or her attorney or duly
18        appointed agent to request and obtain the customer's
19        financial records and disclose those financial records
20        to the Department.
21        (f) For purposes of this paragraph (18), "Department"
22    means the Department of Human Services and the Department
23    of Healthcare and Family Services or any successor
24    administrative agency of either agency.
25    (d) A savings bank may not disclose to any person, except
26to the member or holder of capital or his duly authorized

 

 

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1agent, any financial records relating to that member or
2shareholder of the savings bank unless:
3        (1) the member or shareholder has authorized
4    disclosure to the person; or
5        (2) the financial records are disclosed in response to
6    a lawful subpoena, summons, warrant, citation to discover
7    assets, or court order that meets the requirements of
8    subsection (e) of this Section.
9    (e) A savings bank shall disclose financial records under
10subsection (d) of this Section pursuant to a lawful subpoena,
11summons, warrant, citation to discover assets, or court order
12only after the savings bank sends a copy of the subpoena,
13summons, warrant, citation to discover assets, or court order
14to the person establishing the relationship with the savings
15bank, if living, and otherwise, the person's personal
16representative, if known, at the person's last known address
17by first class mail, postage prepaid, through a third-party
18commercial carrier or courier with delivery charge fully
19prepaid, by hand delivery, or by electronic delivery at an
20email address on file with the savings bank (if the person
21establishing the relationship with the savings bank has
22consented to receive electronic delivery and, if the person
23establishing the relationship with the savings bank is a
24consumer, the person has consented under the consumer consent
25provisions set forth in Section 7001 of Title 15 of the United
26States Code), unless the savings bank is specifically

 

 

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1prohibited from notifying the person by order of court or by
2applicable State or federal law. A savings bank shall not mail
3a copy of a subpoena to any person pursuant to this subsection
4if the subpoena was issued by a grand jury.
5    (f) Any officer or employee of a savings bank who
6knowingly and willfully furnishes financial records in
7violation of this Section is guilty of a business offense and,
8upon conviction, shall be fined not more than $1,000.
9    (g) Any person who knowingly and willfully induces or
10attempts to induce any officer or employee of a savings bank to
11disclose financial records in violation of this Section is
12guilty of a business offense and, upon conviction, shall be
13fined not more than $1,000.
14    (h) If any member or shareholder desires to communicate
15with the other members or shareholders of the savings bank
16with reference to any question pending or to be presented at an
17annual or special meeting, the savings bank shall give that
18person, upon request, a statement of the approximate number of
19members or shareholders entitled to vote at the meeting and an
20estimate of the cost of preparing and delivering mailing the
21communication. The requesting member shall submit the
22communication to the Commissioner who, upon finding it to be
23appropriate and truthful, shall direct that it be prepared and
24delivered mailed to the members upon the requesting member's
25or shareholder's payment or adequate provision for payment of
26the expenses of preparation and delivery mailing.

 

 

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1    (i) A savings bank shall be reimbursed for costs that are
2necessary and that have been directly incurred in searching
3for, reproducing, or transporting books, papers, records, or
4other data of a customer required to be reproduced pursuant to
5a lawful subpoena, warrant, citation to discover assets, or
6court order.
7    (j) Notwithstanding the provisions of this Section, a
8savings bank may sell or otherwise make use of lists of
9customers' names and addresses. All other information
10regarding a customer's account is subject to the disclosure
11provisions of this Section. At the request of any customer,
12that customer's name and address shall be deleted from any
13list that is to be sold or used in any other manner beyond
14identification of the customer's accounts.
15(Source: P.A. 102-873, eff. 5-13-22.)
 
16    (205 ILCS 205/6002)  (from Ch. 17, par. 7306-2)
17    Sec. 6002. Investment in loans.
18    (a) Subject to the regulations of the Commissioner, a
19savings bank may loan funds as follows:
20        (1) On the security of deposit accounts, but no such
21    loan shall exceed the withdrawal value of the pledged
22    account.
23        (2) On the security of real estate:
24            (A) of a value, determined in accordance with this
25        Act, sufficient to provide good and ample security for

 

 

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1        the loan;
2            (B) with a fee simple title or a leasehold title;
3            (C) with the title established by evidence of
4        title as is consistent with sound lending practices in
5        the locality;
6            (D) with the security interest in the real estate
7        evidenced by an appropriate written instrument and the
8        loan evidenced by a note, bond, or similar written
9        instrument; a loan on the security of the whole of the
10        beneficial interest in a land trust satisfies the
11        requirements of this paragraph if the title to the
12        land is held by a corporate trustee and if the real
13        estate held in the land trust meets the other
14        requirements of this subsection;
15            (E) with a mortgage loan not to exceed 40 years.
16        (3) For the purpose of repair, improvement,
17    rehabilitation, furnishing, or equipment of real estate.
18        (4) For the purpose of financing or refinancing an
19    existing ownership interest in certificates of stock,
20    certificates of beneficial interest, other evidence of an
21    ownership interest in, or a proprietary lease from a
22    corporation, trust, or partnership formed for the purpose
23    of the cooperative ownership of real estate, secured by
24    the assignment or transfer of certificates or other
25    evidence of ownership of the borrower.
26        (5) Through the purchase of loans that, at the time of

 

 

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1    purchase, the savings bank could make in accordance with
2    this Section and the bylaws.
3        (6) Through the purchase of installment contracts for
4    the sale of real estate and title thereto that is subject
5    to the contracts, but in each instance only if the savings
6    bank, at the time of purchase, could make a mortgage loan
7    of the same amount and for the same length of time on the
8    security of the real estate.
9        (7) Through loans guaranteed or insured, wholly or in
10    part, by the United States or any of its
11    instrumentalities.
12        (8) Subject to regulations adopted by the
13    Commissioner, through secured or unsecured loans for
14    business, corporate, commercial, or agricultural purposes;
15    provided that the total of all loans granted under this
16    paragraph shall not exceed 15% of the savings bank's total
17    assets unless a greater amount is authorized in writing by
18    the Commissioner.
19        (9) For the purpose of manufactured home financing
20    subject, however, to the regulation of the Commissioner.
21    As used in this Section, "manufactured home" means a
22    manufactured home as defined in subdivision (53) of
23    Section 9-102 of the Uniform Commercial Code.
24        (10) Through loans secured by the cash surrender value
25    of any life insurance policy or any collateral that would
26    be a legal investment under the terms of this Act if made

 

 

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1    by the savings bank.
2        (11) Any provision of this Act or any other law,
3    except for paragraph (18) of Section 6003, to the contrary
4    notwithstanding, but subject to the Financial Institutions
5    Insurance Sales Law and subject to the Commissioner's
6    regulations, any savings bank may make any loan or
7    investment or engage in any activity that it could make or
8    engage in if it were organized under State law as a savings
9    and loan association or under federal law as a federal
10    savings and loan association or federal savings bank.
11        (12) A savings bank may issue letters of credit or
12    other similar arrangements only as provided for by
13    regulation of the Commissioner with regard to aggregate
14    amounts permitted, take out commitments for stand-by
15    letters of credit, underlying documentation and
16    underwriting, legal limitations on loans of the savings
17    bank, control and subsidiary records, and other procedures
18    deemed necessary by the Commissioner.
19        (13) For the purpose of automobile financing, subject
20    to the regulation of the Commissioner.
21        (14) For the purpose of financing primary, secondary,
22    undergraduate, or postgraduate education.
23        (15) Through revolving lines of credit on the security
24    of a first or junior lien on the borrower's personal
25    residence, based primarily on the borrower's equity, the
26    proceeds of which may be used for any purpose; those loans

 

 

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1    being commonly referred to as home equity loans.
2        (16) As secured or unsecured credit to cover the
3    payment of checks, drafts, or other funds transfer orders
4    in excess of the available balance of an account on which
5    they are drawn, subject to the regulations of the
6    Commissioner.
7        (17) Subject to the conditions and limitations imposed
8    in the Illinois Department of Financial and Professional
9    Regulation Division of Banking Interpretive Letter 2017-01
10    (May 2, 2017), through the purchase of fixed rate annuity
11    contracts.
12    (b) For purposes of this Section, "real estate" includes a
13manufactured home as defined in subdivision (53) of Section
149-102 of the Uniform Commercial Code which is real property as
15defined in Section 5-35 of the Conveyance and Encumbrance of
16Manufactured Homes as Real Property and Severance Act.
17(Source: P.A. 98-749, eff. 7-16-14.)
 
18    (205 ILCS 205/7005)  (from Ch. 17, par. 7307-5)
19    Sec. 7005. Holders of deposit accounts.
20    (a) Deposit accounts of a savings bank may be held as
21follows:
22    (1) by any individual in his own right, regardless of age
23or marital status, or by 2 or more individuals;
24    (2) by a fiduciary when authorized by law;
25    (3) by a government or governmental instrumentality when

 

 

SB3726- 128 -LRB103 38817 RTM 68954 b

1authorized by law; and
2    (4) by any corporation or other person when not prohibited
3by law.
4    (b) A savings bank may accept deposits made by a minor and
5may open an account in the name of such minor and the rules and
6regulations of such savings bank with respect to each such
7deposit and account shall be as binding upon such minor as if
8such minor were of full age and legal capacity. The receipt,
9acquittance or order of payment of such minor on such account
10or deposit or any part thereof shall be as binding upon such
11minor as if such minor were of full age and legal capacity.
12(Source: P.A. 86-1213.)
 
13    (205 ILCS 205/8002)  (from Ch. 17, par. 7308-2)
14    Sec. 8002. Procedure to amend articles.
15    (a) The procedure to effect an amendment of articles of
16incorporation shall be as follows:
17        (1) The board of directors shall adopt a resolution
18    setting forth the proposed amendment and direct that it be
19    submitted to a vote at an annual or special meeting of the
20    members or stockholders.
21        (2) The proposed amendment shall be set forth in the
22    notice of meeting delivered mailed as prescribed in
23    Section 4003 of this Act.
24        (3) The proposed amendment shall be adopted upon
25    receiving the affirmative vote of a majority of the votes

 

 

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1    entitled to be cast, unless the articles of incorporation
2    set forth a requirement that amendments of the articles of
3    incorporation shall be adopted by an affirmative vote of
4    two-thirds of the total number of votes entitled to be
5    cast.
6    (b) A report of proceedings, including the notice given,
7the time of delivery mailing, the amendment adopted, the vote
8thereon, and the total number of votes entitled to be cast,
9verified by the president, vice president, or managing officer
10and attested to by the secretary of the savings bank, shall be
11filed with the Secretary within 5 business days after the
12vote.
13    (c) Each adopted amendment shall be subject to the same
14inquiry as the corresponding provision in the original
15articles. If the Secretary approves an amendment he shall
16issue to the savings bank a certificate setting forth the
17amendment and his approval thereof. The Secretary shall
18approve an amendment, or state any objections to an amendment,
19within 30 days after the receipt of the amendment adopted by
20the board. If no objections are specified by the Secretary
21within that time frame, the amendment will be deemed to be
22approved by the Secretary. The amendment shall become
23effective upon issuance of the certificate.
24    (d) An amendment of the articles of incorporation approved
25by the board of directors, the Secretary, and members as part
26of merger, sale of substantially all assets, change in

 

 

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1control, holding company reorganization, or mutual to stock
2form conversion need not be approved under this Section.
3    (e) No amendment of articles of incorporation shall affect
4any existing cause of action either in favor of or against the
5savings bank or any pending action in which the savings bank
6shall be a party or the existing rights of persons other than
7members of the savings bank.
8(Source: P.A. 97-492, eff. 1-1-12.)
 
9    (205 ILCS 205/8016)  (from Ch. 17, par. 7308-16)
10    Sec. 8016. Procedure for conversion from a savings bank
11charter.
12    (a) Nothing in this Act shall be construed to require the
13approval of State authority as a condition to the right of a
14savings bank, pursuant to the laws of the United States or of
15this State, to be converted into a national bank or any other
16depository institution chartered under the laws and
17regulations of this State or to merge with any other
18depository institution chartered under the laws and
19regulations of this State or with a national bank under a
20national charter. Any savings bank operating under this Act
21may convert to any other depository institution chartered
22under the laws and regulations of this State or under the laws
23and regulations of the United States in accordance with the
24following requirements:
25        (1) The converting savings bank shall notify the

 

 

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1    Secretary of its intent to convert. Notice must should be
2    submitted when the savings bank first submits a request to
3    convert to the appropriate State or federal authorities,
4    but in no case less than 30 days before the conversion.
5    Approval of the conversion by the Secretary shall not be
6    required except when the savings bank converts to a
7    depository institution that is also chartered by the
8    Secretary in which case the savings bank shall comply with
9    State law and regulations applicable to the conversion to
10    such depository institution.
11        (2) The board of directors shall approve a plan of
12    conversion by resolution adopted by majority vote of all
13    of the directors.
14        (3) Upon notice prescribed by subsection (a) of
15    Section 4003 of this Act, the plan of conversion shall be
16    adopted upon receiving in the affirmative two-thirds or
17    more of the total number of votes that all members of the
18    savings bank are entitled to cast. A report of
19    proceedings, certified by the president or a vice
20    president and attested by the secretary of the savings
21    bank, shall be filed promptly with the Secretary.
22        (4) The savings bank shall pay all accrued supervisory
23    fees and other fees and assessments under this Act as of
24    the date of conversion.
25        (5) Upon completion of the conversion, the charter of
26    the savings bank shall automatically terminate and the

 

 

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1    savings bank charter or a true copy of the charter shall be
2    returned to the Secretary.
3    (b) (Blank).
4(Source: P.A. 97-492, eff. 1-1-12.)
 
5    (205 ILCS 205/11008)  (from Ch. 17, par. 7311-8)
6    Sec. 11008. Unauthorized participation by convicted
7individual.
8    (a) Except with the prior written consent of the
9Commissioner, no person who has been convicted of any criminal
10offense involving dishonesty or a breach of trust may own or
11control directly or indirectly more than 0.001% of the capital
12stock of, receive benefit directly or indirectly from, or
13participate directly or indirectly in any manner in the
14affairs of a savings bank.
15    (b) A savings bank may not permit participation by a
16person described in subsection (a).
17    (c)(Blank). Whoever knowingly violates subsection (a) or
18(b) is guilty of a Class 3 felony and may be fined not more
19than $10,000 for each day of violation.
20(Source: P.A. 91-97, eff. 7-9-99; 92-483, eff. 8-23-01.)
 
21    (205 ILCS 205/1007.100 rep.)
22    (205 ILCS 205/11011 rep.)
23    Section 15. The Savings Bank Act is amended by repealing
24Sections 1007.100 and 11011.
 

 

 

SB3726- 133 -LRB103 38817 RTM 68954 b

1    Section 99. Effective date. This Act takes effect upon
2becoming law.

 

 

SB3726- 134 -LRB103 38817 RTM 68954 b

1 INDEX
2 Statutes amended in order of appearance
3    205 ILCS 5/2from Ch. 17, par. 302
4    205 ILCS 5/5from Ch. 17, par. 311
5    205 ILCS 5/13from Ch. 17, par. 320
6    205 ILCS 5/14from Ch. 17, par. 321
7    205 ILCS 5/15from Ch. 17, par. 322
8    205 ILCS 5/16from Ch. 17, par. 323
9    205 ILCS 5/16.5
10    205 ILCS 5/20from Ch. 17, par. 327
11    205 ILCS 5/32.1from Ch. 17, par. 340
12    205 ILCS 5/40from Ch. 17, par. 350
13    205 ILCS 5/48
14    205 ILCS 5/48.1from Ch. 17, par. 360
15    205 ILCS 5/48.2from Ch. 17, par. 360.1
16    205 ILCS 5/49from Ch. 17, par. 361
17    205 ILCS 5/78from Ch. 17, par. 390
18    205 ILCS 5/80from Ch. 17, par. 392
19    205 ILCS 205/1008from Ch. 17, par. 7301-8
20    205 ILCS 205/4002from Ch. 17, par. 7304-2
21    205 ILCS 205/4003from Ch. 17, par. 7304-3
22    205 ILCS 205/4013from Ch. 17, par. 7304-13
23    205 ILCS 205/6002from Ch. 17, par. 7306-2
24    205 ILCS 205/7005from Ch. 17, par. 7307-5
25    205 ILCS 205/8002from Ch. 17, par. 7308-2

 

 

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1    205 ILCS 205/8016from Ch. 17, par. 7308-16
2    205 ILCS 205/11008from Ch. 17, par. 7311-8
3    205 ILCS 205/1007.100 rep.
4    205 ILCS 205/11011 rep.