93RD GENERAL ASSEMBLY
State of Illinois
2003 and 2004
SB3036

 

Introduced 2/6/2004, by Kimberly A. Lightford

 

SYNOPSIS AS INTRODUCED:
 
20 ILCS 3205/5   from Ch. 17, par. 455
205 ILCS 5/2   from Ch. 17, par. 302
205 ILCS 5/5   from Ch. 17, par. 311
205 ILCS 5/10   from Ch. 17, par. 317
205 ILCS 5/13.5
205 ILCS 5/16.8 new
205 ILCS 5/18   from Ch. 17, par. 325
205 ILCS 5/21.2
205 ILCS 5/46   from Ch. 17, par. 357
205 ILCS 5/48   from Ch. 17, par. 359
205 ILCS 5/49   from Ch. 17, par. 361
205 ILCS 5/71   from Ch. 17, par. 383
205 ILCS 10/3.02   from Ch. 17, par. 2505
205 ILCS 510/0.05
205 ILCS 510/1.8 new
205 ILCS 510/5   from Ch. 17, par. 4655
205 ILCS 510/9.5 new
205 ILCS 620/5-1   from Ch. 17, par. 1555-1
205 ILCS 620/5-9   from Ch. 17, par. 1555-9
205 ILCS 5/9.5 rep.

    Amends the Office of Banks and Real Estate Act, the Illinois Banking Act, the Illinois Bank Holding Company Act of 1957, the Pawnbroker Regulation Act, and the Corporate Fiduciary Act. Expands the power of the Commissioner of Banks and Real Estate to deter certain practices of financial institutions, make available to the public any formal enforcement action as defined, and impose other disciplinary actions. Redefines the general corporate powers of banks organized under this Act or subject to this Act to own, possess, and carry as assets stock of one or more corporations. Creates provisions concerning approval of directors and senior executive officers. Provides that no pawnshop shall employ an individual who has been convicted of certain crimes, as defined, without the prior written approval of the Commissioner of Banks and Real Estate. Creates provisions concerning the operation of pawnshops after license revocation, suspension, or denial. Increases certain penalties and fines. Makes other changes. Effective immediately.


LRB093 18472 SAS 44186 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB3036 LRB093 18472 SAS 44186 b

1     AN ACT in relation to financial institutions.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4     Section 5. The Office of Banks and Real Estate Act is
5 amended by changing Section 5 as follows:
 
6     (20 ILCS 3205/5)  (from Ch. 17, par. 455)
7     Sec. 5. Powers. In addition to all the other powers and
8 duties provided by law, the Commissioner shall have the
9 following powers:
10     (a) To exercise the rights, powers and duties formerly
11 vested by law in the Director of Financial Institutions under
12 the Illinois Banking Act.
13     (b) To exercise the rights, powers and duties formerly
14 vested by law in the Department of Financial Institutions under
15 "An act to provide for and regulate the administration of
16 trusts by trust companies", approved June 15, 1887, as amended.
17     (c) To exercise the rights, powers and duties formerly
18 vested by law in the Director of Financial Institutions under
19 "An act authorizing foreign corporations, including banks and
20 national banking associations domiciled in other states, to act
21 in a fiduciary capacity in this state upon certain conditions
22 herein set forth", approved July 13, 1953, as amended.
23     (d) Whenever the Commissioner is authorized or required by
24 law to consider or to make findings regarding the character of
25 incorporators, directors, management personnel, or other
26 relevant individuals under the Illinois Banking Act, the
27 Corporate Fiduciary Act, the Pawnbroker Regulation Act, or at
28 other times as the Commissioner deems necessary for the purpose
29 of carrying out the Commissioner's statutory powers and
30 responsibilities, the Commissioner shall consider criminal
31 history record information, including nonconviction
32 information, pursuant to the Criminal Identification Act. The

 

 

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1 Commissioner shall, in the form and manner required by the
2 Department of State Police and the Federal Bureau of
3 Investigation, cause to be conducted a criminal history record
4 investigation to obtain information currently contained in the
5 files of the Department of State Police or the Federal Bureau
6 of Investigation, provided that the Commissioner need not cause
7 additional criminal history record investigations to be
8 conducted on individuals for whom the Commissioner, a federal
9 bank regulatory agency, or any other government agency has
10 caused such investigations to have been conducted previously
11 unless such additional investigations are otherwise required
12 by law or unless the Commissioner deems such additional
13 investigations to be necessary for the purposes of carrying out
14 the Commissioner's statutory powers and responsibilities. The
15 Department of State Police shall provide, on the Commissioner's
16 request, information concerning criminal charges and their
17 disposition currently on file with respect to a relevant
18 individual. Information obtained as a result of an
19 investigation under this Section shall be used in determining
20 eligibility to be an incorporator, director, management
21 personnel, or other relevant individual in relation to a
22 financial institution or other entity supervised by the
23 Commissioner. Upon request and payment of fees in conformance
24 with the requirements of Section 2605-400 of the Department of
25 State Police Law (20 ILCS 2605/2605-400), the Department of
26 State Police is authorized to furnish, pursuant to positive
27 identification, such information contained in State files as is
28 necessary to fulfill the request.
29     (e) When issuing charters, permits, licenses, or other
30 authorizations, the Commissioner may impose such terms and
31 conditions on the issuance as he deems necessary or
32 appropriate. Failure to abide by those terms and conditions may
33 result in the revocation of the issuance, the imposition of
34 corrective orders, or the imposition of civil money penalties.
35     (f) If the Commissioner has reasonable cause to believe
36 that any entity that has not submitted an application for

 

 

SB3036 - 3 - LRB093 18472 SAS 44186 b

1 authorization or licensure is conducting any activity that
2 would otherwise require authorization or licensure by the
3 Commissioner, the Commissioner shall have the power to subpoena
4 witnesses, to compel their attendance, and to require the
5 production of any relevant books, papers, accounts, and
6 documents in order to determine whether the entity is subject
7 to authorization or licensure by the Commissioner or the Office
8 of Banks and Real Estate.
9     (g) The Commissioner may, through the Attorney General,
10 request the circuit court of any county to issue an injunction
11 to restrain any person from violating the provisions of any Act
12 administered by the Commissioner.
13     (h) Whenever the Commissioner is authorized to take any
14 action or required by law to consider or make findings, the
15 Commissioner may delegate or appoint, in writing, an officer or
16 employee of the Office of Banks and Real Estate to take that
17 action or make that finding.
18     (i) Whenever the Commissioner issues an Order of
19 Prohibition or Order of Removal under Section 48(7) of the
20 Illinois Banking Act, Section 3.074(b) of the Illinois Bank
21 Holding Company Act of 1957, Section 5-6 of the Corporate
22 Fiduciary Act, or Section 0.05 of the Pawnbroker Regulation
23 Act, which order becomes a final administrative decision under
24 the Administrative Review Law, he or she shall refuse to issue
25 a new license under any of the Acts administered by the
26 Commissioner or shall revoke an outstanding license of a person
27 who is subject to such an order unless that person obtains the
28 Commissioner's prior written approval for maintenance or
29 reissuance of the license.
30 (Source: P.A. 91-239, eff. 1-1-00; 92-483, eff. 8-23-01.)
31     Section 10. The Illinois Banking Act is amended by changing
32 Sections 2, 5, 10, 13.5, 18, 21.2, 46, 48, 49, and 71, and by
33 adding Section 16.8 as follows:
 
34     (205 ILCS 5/2)  (from Ch. 17, par. 302)

 

 

SB3036 - 4 - LRB093 18472 SAS 44186 b

1     Sec. 2. General definitions. In this Act, unless the
2 context otherwise requires, the following words and phrases
3 shall have the following meanings:
4     "Accommodation party" shall have the meaning ascribed to
5 that term in Section 3-419 of the Uniform Commercial Code.
6     "Action" in the sense of a judicial proceeding includes
7 recoupments, counterclaims, set-off, and any other proceeding
8 in which rights are determined.
9     "Affiliate facility" of a bank means a main banking
10 premises or branch of another commonly owned bank. The main
11 banking premises or any branch of a bank may be an "affiliate
12 facility" with respect to one or more other commonly owned
13 banks.
14     "Appropriate federal banking agency" means the Federal
15 Deposit Insurance Corporation, the Federal Reserve Bank of
16 Chicago, or the Federal Reserve Bank of St. Louis, as
17 determined by federal law.
18     "Bank" means any person engaged in the business of
19 receiving deposits, other than trust funds, that is
20 incorporated under the laws of this or any other state or which
21 is operating under the Code of Law for the District of
22 Columbia. For purposes of this Section, "trust funds" means
23 funds held in a fiduciary capacity and includes, without being
24 limited to, funds held as trustee, executor, administrator,
25 guardian, or agent doing a banking business whether subject to
26 the laws of this or any other jurisdiction.
27     A "banking house", "branch", "branch bank" or "branch
28 office" shall mean any place of business of a bank at which
29 deposits are received, other than trust funds checks paid, or
30 loans made, but shall not include any place at which only
31 records thereof are made, posted, or kept. A place of business
32 at which deposits are received, other than trust funds, checks
33 paid, or loans made shall not be deemed to be a branch, branch
34 bank, or branch office if the place of business is adjacent to
35 and connected with the main banking premises, or if it is
36 separated from the main banking premises by not more than an

 

 

SB3036 - 5 - LRB093 18472 SAS 44186 b

1 alley; provided always that (i) if the place of business is
2 separated by an alley from the main banking premises there is a
3 connection between the two by public or private way or by
4 subterranean or overhead passage, and (ii) if the place of
5 business is in a building not wholly occupied by the bank, the
6 place of business shall not be within any office or room in
7 which any other business or service of any kind or nature other
8 than the business of the bank is conducted or carried on. A
9 place of business at which deposits are received, checks paid,
10 or loans made shall not be deemed to be a branch, branch bank,
11 or branch office (i) of any bank if the place is a terminal
12 established and maintained in accordance with paragraph (17) of
13 Section 5 of this Act, or (ii) of a commonly owned bank by
14 virtue of transactions conducted at that place on behalf of the
15 other commonly owned bank under paragraph (23) of Section 5 of
16 this Act if the place is an affiliate facility with respect to
17 the other bank.
18     "Branch of an out-of-state bank" means a branch established
19 or maintained in Illinois by an out-of-state bank as a result
20 of a merger between an Illinois bank and the out-of-state bank
21 that occurs on or after May 31, 1997, or any branch established
22 by the out-of-state bank following the merger.
23     "Bylaws" means the bylaws of a bank that are adopted by the
24 bank's board of directors or shareholders for the regulation
25 and management of the bank's affairs. If the bank operates as a
26 limited liability company, however, "bylaws" means the
27 operating agreement of the bank.
28     "Call report fee" means the fee to be paid to the
29 Commissioner by each State bank pursuant to paragraph (a) of
30 subsection (3) of Section 48 of this Act.
31     "Composite rating" means the rating assigned to a state
32 bank by the Commissioner or by the state bank's appropriate
33 federal banking agency and accepted by the Commissioner, based
34 on a composite evaluation of individual performance components
35 as defined by the Uniform Financial Institutions Rating System
36 adopted by the Federal Financial Institutions Examination

 

 

SB3036 - 6 - LRB093 18472 SAS 44186 b

1 Council, as now or hereafter amended.
2     "Capital" includes the aggregate of outstanding capital
3 stock and preferred stock.
4     "Cash flow reserve account" means the account within the
5 books and records of the Commissioner of Banks and Real Estate
6 used to record funds designated to maintain a reasonable Bank
7 and Trust Company Fund operating balance to meet agency
8 obligations on a timely basis.
9     "Charter" includes the original charter and all amendments
10 thereto and articles of merger or consolidation.
11     "Commissioner" means the Commissioner of Banks and Real
12 Estate or a person authorized by the Commissioner, the Office
13 of Banks and Real Estate Act, or this Act to act in the
14 Commissioner's stead.
15     "Commonly owned banks" means 2 or more banks that each
16 qualify as a bank subsidiary of the same bank holding company
17 pursuant to Section 18 of the Federal Deposit Insurance Act;
18 "commonly owned bank" refers to one of a group of commonly
19 owned banks but only with respect to one or more of the other
20 banks in the same group.
21     "Community" means a city, village, or incorporated town and
22 also includes the area served by the banking offices of a bank,
23 but need not be limited or expanded to conform to the
24 geographic boundaries of units of local government.
25     "Company" means a corporation, limited liability company,
26 partnership, business trust, association, or similar
27 organization and, unless specifically excluded, includes a
28 "State bank" and a "bank".
29     "Consolidating bank" means a party to a consolidation.
30     "Consolidation" takes place when 2 or more banks, or a
31 trust company and a bank, are extinguished and by the same
32 process a new bank is created, taking over the assets and
33 assuming the liabilities of the banks or trust company passing
34 out of existence.
35     "Continuing bank" means a merging bank, the charter of
36 which becomes the charter of the resulting bank.

 

 

SB3036 - 7 - LRB093 18472 SAS 44186 b

1     "Converting bank" means a State bank converting to become a
2 national bank, or a national bank converting to become a State
3 bank.
4     "Converting trust company" means a trust company
5 converting to become a State bank.
6     "Court" means a court of competent jurisdiction.
7     "Director" means a member of the board of directors of a
8 bank. In the case of a manager-managed limited liability
9 company, however, "director" means a manager of the bank and,
10 in the case of a member-managed limited liability company,
11 "director" means a member of the bank. The term "director" does
12 not include an advisory director, honorary director, director
13 emeritus, or similar person, unless the person is otherwise
14 performing functions similar to those of a member of the board
15 of directors.
16     "Eligible depository institution" means an insured savings
17 association that is in default, an insured savings association
18 that is in danger of default, a State or national bank that is
19 in default or a State or national bank that is in danger of
20 default, as those terms are defined in this Section, or a new
21 bank as that term defined in Section 11(m) of the Federal
22 Deposit Insurance Act or a bridge bank as that term is defined
23 in Section 11(n) of the Federal Deposit Insurance Act or a new
24 federal savings association authorized under Section
25 11(d)(2)(f) of the Federal Deposit Insurance Act.
26     "Fiduciary" means trustee, agent, executor, administrator,
27 committee, guardian for a minor or for a person under legal
28 disability, receiver, trustee in bankruptcy, assignee for
29 creditors, or any holder of similar position of trust.
30     "Financial institution" means a bank, savings and loan
31 association, credit union, or any licensee under the Consumer
32 Installment Loan Act or the Sales Finance Agency Act and, for
33 purposes of Section 48.3, any proprietary network, funds
34 transfer corporation, or other entity providing electronic
35 funds transfer services, or any corporate fiduciary, its
36 subsidiaries, affiliates, parent company, or contractual

 

 

SB3036 - 8 - LRB093 18472 SAS 44186 b

1 service provider that is examined by the Commissioner.
2     "Foundation" means the Illinois Bank Examiners' Education
3 Foundation.
4     "General obligation" means a bond, note, debenture,
5 security, or other instrument evidencing an obligation of the
6 government entity that is the issuer that is supported by the
7 full available resources of the issuer, the principal and
8 interest of which is payable in whole or in part by taxation.
9     "Guarantee" means an undertaking or promise to answer for
10 payment of another's debt or performance of another's duty,
11 liability, or obligation whether "payment guaranteed" or
12 "collection guaranteed".
13     "In danger of default" means a State or national bank, a
14 federally chartered insured savings association or an Illinois
15 state chartered insured savings association with respect to
16 which the Commissioner or the appropriate federal banking
17 agency has advised the Federal Deposit Insurance Corporation
18 that:
19         (1) in the opinion of the Commissioner or the
20     appropriate federal banking agency,
21             (A) the State or national bank or insured savings
22         association is not likely to be able to meet the
23         demands of the State or national bank's or savings
24         association's obligations in the normal course of
25         business; and
26             (B) there is no reasonable prospect that the State
27         or national bank or insured savings association will be
28         able to meet those demands or pay those obligations
29         without federal assistance; or
30         (2) in the opinion of the Commissioner or the
31     appropriate federal banking agency,
32             (A) the State or national bank or insured savings
33         association has incurred or is likely to incur losses
34         that will deplete all or substantially all of its
35         capital; and
36             (B) there is no reasonable prospect that the

 

 

SB3036 - 9 - LRB093 18472 SAS 44186 b

1         capital of the State or national bank or insured
2         savings association will be replenished without
3         federal assistance.
4     "In default" means, with respect to a State or national
5 bank or an insured savings association, any adjudication or
6 other official determination by any court of competent
7 jurisdiction, the Commissioner, the appropriate federal
8 banking agency, or other public authority pursuant to which a
9 conservator, receiver, or other legal custodian is appointed
10 for a State or national bank or an insured savings association.
11     "Insured savings association" means any federal savings
12 association chartered under Section 5 of the federal Home
13 Owners' Loan Act and any State savings association chartered
14 under the Illinois Savings and Loan Act of 1985 or a
15 predecessor Illinois statute, the deposits of which are insured
16 by the Federal Deposit Insurance Corporation. The term also
17 includes a savings bank organized or operating under the
18 Savings Bank Act.
19     "Insured savings association in recovery" means an insured
20 savings association that is not an eligible depository
21 institution and that does not meet the minimum capital
22 requirements applicable with respect to the insured savings
23 association.
24     "Issuer" means for purposes of Section 33 every person who
25 shall have issued or proposed to issue any security; except
26 that (1) with respect to certificates of deposit, voting trust
27 certificates, collateral-trust certificates, and certificates
28 of interest or shares in an unincorporated investment trust not
29 having a board of directors (or persons performing similar
30 functions), "issuer" means the person or persons performing the
31 acts and assuming the duties of depositor or manager pursuant
32 to the provisions of the trust, agreement, or instrument under
33 which the securities are issued; (2) with respect to trusts
34 other than those specified in clause (1) above, where the
35 trustee is a corporation authorized to accept and execute
36 trusts, "issuer" means the entrusters, depositors, or creators

 

 

SB3036 - 10 - LRB093 18472 SAS 44186 b

1 of the trust and any manager or committee charged with the
2 general direction of the affairs of the trust pursuant to the
3 provisions of the agreement or instrument creating the trust;
4 and (3) with respect to equipment trust certificates or like
5 securities, "issuer" means the person to whom the equipment or
6 property is or is to be leased or conditionally sold.
7     "Letter of credit" and "customer" shall have the meanings
8 ascribed to those terms in Section 5-102 of the Uniform
9 Commercial Code.
10     "Main banking premises" means the location that is
11 designated in a bank's charter as its main office.
12     "Maker or obligor" means for purposes of Section 33 the
13 issuer of a security, the promisor in a debenture or other debt
14 security, or the mortgagor or grantor of a trust deed or
15 similar conveyance of a security interest in real or personal
16 property.
17     "Merged bank" means a merging bank that is not the
18 continuing, resulting, or surviving bank in a consolidation or
19 merger.
20     "Merger" includes consolidation.
21     "Merging bank" means a party to a bank merger.
22     "Merging trust company" means a trust company party to a
23 merger with a State bank.
24     "Mid-tier bank holding company" means a corporation that
25 (a) owns 100% of the issued and outstanding shares of each
26 class of stock of a State bank, (b) has no other subsidiaries,
27 and (c) 100% of the issued and outstanding shares of the
28 corporation are owned by a parent bank holding company.
29     "Municipality" means any municipality, political
30 subdivision, school district, taxing district, or agency.
31     "National bank" means a national banking association
32 located in this State and after May 31, 1997, means a national
33 banking association without regard to its location.
34     "Out-of-state bank" means a bank chartered under the laws
35 of a state other than Illinois, a territory of the United
36 States, or the District of Columbia.

 

 

SB3036 - 11 - LRB093 18472 SAS 44186 b

1     "Parent bank holding company" means a corporation that is a
2 bank holding company as that term is defined in the Illinois
3 Bank Holding Company Act of 1957 and owns 100% of the issued
4 and outstanding shares of a mid-tier bank holding company.
5     "Person" means an individual, corporation, limited
6 liability company, partnership, joint venture, trust, estate,
7 or unincorporated association.
8     "Public agency" means the State of Illinois, the various
9 counties, townships, cities, towns, villages, school
10 districts, educational service regions, special road
11 districts, public water supply districts, fire protection
12 districts, drainage districts, levee districts, sewer
13 districts, housing authorities, the Illinois Bank Examiners'
14 Education Foundation, the Chicago Park District, and all other
15 political corporations or subdivisions of the State of
16 Illinois, whether now or hereafter created, whether herein
17 specifically mentioned or not, and shall also include any other
18 state or any political corporation or subdivision of another
19 state.
20     "Public funds" or "public money" means current operating
21 funds, special funds, interest and sinking funds, and funds of
22 any kind or character belonging to, in the custody of, or
23 subject to the control or regulation of the United States or a
24 public agency. "Public funds" or "public money" shall include
25 funds held by any of the officers, agents, or employees of the
26 United States or of a public agency in the course of their
27 official duties and, with respect to public money of the United
28 States, shall include Postal Savings funds.
29     "Published" means, unless the context requires otherwise,
30 the publishing of the notice or instrument referred to in some
31 newspaper of general circulation in the community in which the
32 bank is located at least once each week for 3 successive weeks.
33 Publishing shall be accomplished by, and at the expense of, the
34 bank required to publish. Where publishing is required, the
35 bank shall submit to the Commissioner that evidence of the
36 publication as the Commissioner shall deem appropriate.

 

 

SB3036 - 12 - LRB093 18472 SAS 44186 b

1     "Qualified financial contract" means any security
2 contract, commodity contract, forward contract, including spot
3 and forward foreign exchange contracts, repurchase agreement,
4 swap agreement, and any similar agreement, any option to enter
5 into any such agreement, including any combination of the
6 foregoing, and any master agreement for such agreements. A
7 master agreement, together with all supplements thereto, shall
8 be treated as one qualified financial contract. The contract,
9 option, agreement, or combination of contracts, options, or
10 agreements shall be reflected upon the books, accounts, or
11 records of the bank, or a party to the contract shall provide
12 documentary evidence of such agreement.
13     "Recorded" means the filing or recording of the notice or
14 instrument referred to in the office of the Recorder of the
15 county wherein the bank is located.
16     "Resulting bank" means the bank resulting from a merger or
17 conversion.
18     "Securities" means stocks, bonds, debentures, notes, or
19 other similar obligations.
20     "Stand-by letter of credit" means a letter of credit under
21 which drafts are payable upon the condition the customer has
22 defaulted in performance of a duty, liability, or obligation.
23     "State bank" means any banking corporation that has a
24 banking charter issued by the Commissioner under this Act.
25     "State Banking Board" means the State Banking Board of
26 Illinois.
27     "Subsidiary" with respect to a specified company means a
28 company that is controlled by the specified company. For
29 purposes of paragraphs (8) and (12) of Section 5 of this Act,
30 "control" means the exercise of operational or managerial
31 control of a corporation by the bank, either alone or together
32 with other affiliates of the bank.
33     "Surplus" means the aggregate of (i) amounts paid in excess
34 of the par value of capital stock and preferred stock; (ii)
35 amounts contributed other than for capital stock and preferred
36 stock and allocated to the surplus account; and (iii) amounts

 

 

SB3036 - 13 - LRB093 18472 SAS 44186 b

1 transferred from undivided profits.
2     "Tier 1 Capital" and "Tier 2 Capital" have the meanings
3 assigned to those terms in regulations promulgated for the
4 appropriate federal banking agency of a state bank, as those
5 regulations are now or hereafter amended.
6     "Trust company" means a limited liability company or
7 corporation incorporated in this State for the purpose of
8 accepting and executing trusts.
9     "Undivided profits" means undistributed earnings less
10 discretionary transfers to surplus.
11     "Unimpaired capital and unimpaired surplus", for the
12 purposes of paragraph (21) of Section 5 and Sections 32, 33,
13 34, 35.1, 35.2, and 47 of this Act means the sum of the state
14 bank's Tier 1 Capital and Tier 2 Capital plus such other
15 shareholder equity as may be included by regulation of the
16 Commissioner. Unimpaired capital and unimpaired surplus shall
17 be calculated on the basis of the date of the last quarterly
18 call report filed with the Commissioner preceding the date of
19 the transaction for which the calculation is made, provided
20 that: (i) when a material event occurs after the date of the
21 last quarterly call report filed with the Commissioner that
22 reduces or increases the bank's unimpaired capital and
23 unimpaired surplus by 10% or more, then the unimpaired capital
24 and unimpaired surplus shall be calculated from the date of the
25 material event for a transaction conducted after the date of
26 the material event; and (ii) if the Commissioner determines for
27 safety and soundness reasons that a state bank should calculate
28 unimpaired capital and unimpaired surplus more frequently than
29 provided by this paragraph, the Commissioner may by written
30 notice direct the bank to calculate unimpaired capital and
31 unimpaired surplus at a more frequent interval. In the case of
32 a state bank newly chartered under Section 13 or a state bank
33 resulting from a merger, consolidation, or conversion under
34 Sections 21 through 26 for which no preceding quarterly call
35 report has been filed with the Commissioner, unimpaired capital
36 and unimpaired surplus shall be calculated for the first

 

 

SB3036 - 14 - LRB093 18472 SAS 44186 b

1 calendar quarter on the basis of the effective date of the
2 charter, merger, consolidation, or conversion.
3 (Source: P.A. 92-483, eff. 8-23-01; 93-561, eff. 1-1-04.)
 
4     (205 ILCS 5/5)  (from Ch. 17, par. 311)
5     Sec. 5. General corporate powers. A bank organized under
6 this Act or subject hereto shall be a body corporate and
7 politic and shall, without specific mention thereof in the
8 charter, have all the powers conferred by this Act and the
9 following additional general corporate powers:
10     (1) To sue and be sued, complain, and defend in its
11 corporate name.
12     (2) To have a corporate seal, which may be altered at
13 pleasure, and to use the same by causing it or a facsimile
14 thereof to be impressed or affixed or in any manner reproduced,
15 provided that the affixing of a corporate seal to an instrument
16 shall not give the instrument additional force or effect, or
17 change the construction thereof, and the use of a corporate
18 seal is not mandatory.
19     (3) To make, alter, amend, and repeal bylaws, not
20 inconsistent with its charter or with law, for the
21 administration of the affairs of the bank. If this Act does not
22 provide specific guidance in matters of corporate governance,
23 the provisions of the Business Corporation Act of 1983 may be
24 used if so provided in the bylaws, and if the bank is a limited
25 liability company, the provisions of the Limited Liability
26 Company Act shall be used.
27     (4) To elect or appoint and remove officers and agents of
28 the bank and define their duties and fix their compensation.
29     (5) To adopt and operate reasonable bonus plans,
30 profit-sharing plans, stock-bonus plans, stock-option plans,
31 pension plans and similar incentive plans for its directors,
32 officers and employees.
33     (5.1) To manage, operate and administer a fund for the
34 investment of funds by a public agency or agencies, including
35 any unit of local government or school district, or any person.

 

 

SB3036 - 15 - LRB093 18472 SAS 44186 b

1 The fund for a public agency shall invest in the same type of
2 investments and be subject to the same limitations provided for
3 the investment of public funds. The fund for public agencies
4 shall maintain a separate ledger showing the amount of
5 investment for each public agency in the fund. "Public funds"
6 and "public agency" as used in this Section shall have the
7 meanings ascribed to them in Section 1 of the Public Funds
8 Investment Act.
9     (6) To make reasonable donations for the public welfare or
10 for charitable, scientific, religious or educational purposes.
11     (7) To borrow or incur an obligation; and to pledge its
12 assets:
13         (a) to secure its borrowings, its lease of personal or
14     real property or its other nondeposit obligations;
15         (b) to enable it to act as agent for the sale of
16     obligations of the United States;
17         (c) to secure deposits of public money of the United
18     States, whenever required by the laws of the United States,
19     including without being limited to, revenues and funds the
20     deposit of which is subject to the control or regulation of
21     the United States or any of its officers, agents, or
22     employees and Postal Savings funds;
23         (d) to secure deposits of public money of any state or
24     of any political corporation or subdivision thereof
25     including, without being limited to, revenues and funds the
26     deposit of which is subject to the control or regulation of
27     any state or of any political corporation or subdivisions
28     thereof or of any of their officers, agents, or employees;
29         (e) to secure deposits of money whenever required by
30     the National Bankruptcy Act;
31         (f) (blank); and
32         (g) to secure trust funds commingled with the bank's
33     funds, whether deposited by the bank or an affiliate of the
34     bank, pursuant to Section 2-8 of the Corporate Fiduciary
35     Act.
36     (8) To own, possess, and carry as assets all or part of the

 

 

SB3036 - 16 - LRB093 18472 SAS 44186 b

1 real estate necessary in or with which to do its banking
2 business, either directly or indirectly through the ownership
3 of all or part of the capital stock, shares or interests in any
4 corporation, association, trust engaged in holding any part or
5 parts or all of the bank premises, engaged in such business and
6 in conducting a safe deposit business in the premises or part
7 of them, or engaged in any activity that the bank is permitted
8 to conduct in a subsidiary pursuant to paragraph (12) of this
9 Section 5.
10     (9) To own, possess, and carry as assets other real estate
11 to which it may obtain title in the collection of its debts or
12 that was formerly used as a part of the bank premises, but
13 title to any real estate except as herein permitted shall not
14 be retained by the bank, either directly or by or through a
15 subsidiary, as permitted by subsection (12) of this Section for
16 a total period of more than 10 years after acquiring title,
17 either directly or indirectly.
18     (10) To do any act, including the acquisition of stock,
19 necessary to obtain insurance of its deposits, or part thereof,
20 and any act necessary to obtain a guaranty, in whole or in
21 part, of any of its loans or investments by the United States
22 or any agency thereof, and any act necessary to sell or
23 otherwise dispose of any of its loans or investments to the
24 United States or any agency thereof, and to acquire and hold
25 membership in the Federal Reserve System.
26     (11) Notwithstanding any other provisions of this Act or
27 any other law, to do any act and to own, possess, and carry as
28 assets property of the character, including stock, that is at
29 the time authorized or permitted to national banks by an Act of
30 Congress, but subject always to the same limitations and
31 restrictions as are applicable to national banks by the
32 pertinent federal law and subject to applicable provisions of
33 the Financial Institutions Insurance Sales Law.
34     (12) To own, possess, and carry as assets stock of one or
35 more corporations that is, or are, engaged in one or more of
36 the following businesses:

 

 

SB3036 - 17 - LRB093 18472 SAS 44186 b

1         (a) holding title to and administering assets acquired
2     as a result of the collection or liquidating of loans,
3     investments, or discounts, subject to the following
4     conditions:
5                 (i) Holding period. A bank subsidiary may not
6         hold real estate for more than the time period allowed
7         pursuant to subsection (9) of this Section. A bank
8         subsidiary holding securities held in satisfaction of
9         debts previously contracted must divest as soon as
10         possible consistent with obtaining a reasonable
11         return, not to exceed 5 years from the date that
12         ownership of the securities was originally transferred
13         to the bank. In the case of securities held in
14         satisfaction of debts previously contracted, the
15         Commissioner may extend the holding period for up to an
16         additional 5 years if a bank provides a clearly
17         convincing demonstration as to why an additional
18         holding period is needed.
19                 (ii) Accounting treatment. A bank shall
20         account for securities held in satisfaction of debts
21         previously contracted in accordance with Generally
22         Accepted Accounting Principles.
23                 (iii) Non-speculative purpose. A bank may not
24         hold securities held in satisfaction of debts
25         previously contracted for speculative purposes; or
26         (b) holding title to and administering personal
27     property acquired by the bank, directly or indirectly
28     through a subsidiary, for the purpose of leasing to others,
29     provided the lease or leases and the investment of the
30     bank, directly or through a subsidiary, in that personal
31     property otherwise comply with Section 35.1 of this Act; or
32         (c) carrying on or administering any of the activities
33     excepting the receipt of deposits or the payment of checks
34     or other orders for the payment of money in which a bank
35     may engage in carrying on its general banking business;
36     provided, however, that nothing contained in this

 

 

SB3036 - 18 - LRB093 18472 SAS 44186 b

1     paragraph (c) shall be deemed to permit a bank organized
2     under this Act or subject hereto to do, either directly or
3     indirectly through any subsidiary, any act, including the
4     making of any loan or investment, or to own, possess, or
5     carry as assets any property that if done by or owned,
6     possessed, or carried by the State bank would be in
7     violation of or prohibited by any provision of this Act.
8     The provisions of this subsection (12) shall not apply to
9 and shall not be deemed to limit the powers of a State bank
10 with respect to the ownership, possession, and carrying of
11 stock that a State bank is permitted to own, possess, or carry
12 under this Act.
13     Any bank intending to establish a subsidiary under this
14 subsection (12) shall give written notice to the Commissioner
15 60 days prior to the subsidiary's commencing of business or, as
16 the case may be, prior to acquiring stock in a corporation that
17 has already commenced business. After receiving the notice, the
18 Commissioner may waive or reduce the balance of the 60 day
19 notice period. The Commissioner may specify the form of the
20 notice and may promulgate rules and regulations to administer
21 this subsection (12).
22     (13) To accept for payment at a future date not exceeding
23 one year from the date of acceptance, drafts drawn upon it by
24 its customers; and to issue, advise, or confirm letters of
25 credit authorizing the holders thereof to draw drafts upon it
26 or its correspondents.
27     (14) To own and lease personal property acquired by the
28 bank at the request of a prospective lessee and upon the
29 agreement of that person to lease the personal property
30 provided that the lease, the agreement with respect thereto,
31 and the amount of the investment of the bank in the property
32 comply with Section 35.1 of this Act.
33     (15) (a) To establish and maintain, in addition to the main
34     banking premises, branches offering any banking services
35     permitted at the main banking premises of a State bank.
36         (b) To establish and maintain, after May 31, 1997,

 

 

SB3036 - 19 - LRB093 18472 SAS 44186 b

1     branches in another state that may conduct any activity in
2     that state that is authorized or permitted for any bank
3     that has a banking charter issued by that state, subject to
4     the same limitations and restrictions that are applicable
5     to banks chartered by that state.
6     (16) (Blank).
7     (17) To establish and maintain terminals, as authorized by
8 the Electronic Fund Transfer Act.
9     (18) To establish and maintain temporary service booths at
10 any International Fair held in this State which is approved by
11 the United States Department of Commerce, for the duration of
12 the international fair for the sole purpose of providing a
13 convenient place for foreign trade customers at the fair to
14 exchange their home countries' currency into United States
15 currency or the converse. This power shall not be construed as
16 establishing a new place or change of location for the bank
17 providing the service booth.
18     (19) To indemnify its officers, directors, employees, and
19 agents, as authorized for corporations under Section 8.75 of
20 the Business Corporation Act of 1983.
21     (20) To own, possess, and carry as assets stock of, or be
22 or become a member of, any corporation, mutual company,
23 association, trust, or other entity formed exclusively for the
24 purpose of providing directors' and officers' liability and
25 bankers' blanket bond insurance or reinsurance to and for the
26 benefit of the stockholders, members, or beneficiaries, or
27 their assets or businesses, or their officers, directors,
28 employees, or agents, and not to or for the benefit of any
29 other person or entity or the public generally.
30     (21) To make debt or equity investments in corporations or
31 projects, whether for profit or not for profit, designed to
32 promote the development of the community and its welfare,
33 provided that the aggregate investment in all of these
34 corporations and in all of these projects does not exceed 10%
35 of the unimpaired capital and unimpaired surplus of the bank
36 and provided that this limitation shall not apply to

 

 

SB3036 - 20 - LRB093 18472 SAS 44186 b

1 creditworthy loans by the bank to those corporations or
2 projects. Upon written application to the Commissioner, a bank
3 may make an investment that would, when aggregated with all
4 other such investments, exceed 10% of the unimpaired capital
5 and unimpaired surplus of the bank. The Commissioner may
6 approve the investment if he is of the opinion and finds that
7 the proposed investment will not have a material adverse effect
8 on the safety and soundness of the bank.
9     (22) To own, possess, and carry as assets the stock of a
10 corporation engaged in the ownership or operation of a travel
11 agency or to operate a travel agency as a part of its business.
12     (23) With respect to affiliate facilities:
13         (a) to conduct at affiliate facilities for and on
14     behalf of another commonly owned bank, if so authorized by
15     the other bank, all transactions that the other bank is
16     authorized or permitted to perform; and
17         (b) to authorize a commonly owned bank to conduct for
18     and on behalf of it any of the transactions it is
19     authorized or permitted to perform at one or more affiliate
20     facilities.
21     Any bank intending to conduct or to authorize a commonly
22 owned bank to conduct at an affiliate facility any of the
23 transactions specified in this paragraph (23) shall give
24 written notice to the Commissioner at least 30 days before any
25 such transaction is conducted at the affiliate facility.
26     (24) To act as the agent for any fire, life, or other
27 insurance company authorized by the State of Illinois, by
28 soliciting and selling insurance and collecting premiums on
29 policies issued by such company; and to receive for services so
30 rendered such fees or commissions as may be agreed upon between
31 the bank and the insurance company for which it may act as
32 agent; provided, however, that no such bank shall in any case
33 assume or guarantee the payment of any premium on insurance
34 policies issued through its agency by its principal; and
35 provided further, that the bank shall not guarantee the truth
36 of any statement made by an assured in filing his application

 

 

SB3036 - 21 - LRB093 18472 SAS 44186 b

1 for insurance.
2     (25) Notwithstanding any other provisions of this Act or
3 any other law, to offer any product or service that is at the
4 time authorized or permitted to any insured savings association
5 or out-of-state bank by applicable law, provided that powers
6 conferred only by this subsection (25):
7         (a) shall always be subject to the same limitations and
8     restrictions that are applicable to the insured savings
9     association or out-of-state bank for the product or service
10     by such applicable law;
11         (b) shall be subject to applicable provisions of the
12     Financial Institutions Insurance Sales Law;
13         (c) shall not include the right to own or conduct a
14     real estate brokerage business for which a license would be
15     required under the laws of this State; and
16         (d) shall not be construed to include the establishment
17     or maintenance of a branch, nor shall they be construed to
18     limit the establishment or maintenance of a branch pursuant
19     to subsection (11).
20     Not less than 30 days before engaging in any activity under
21 the authority of this subsection, a bank shall provide written
22 notice to the Commissioner of its intent to engage in the
23 activity. The notice shall indicate the specific federal or
24 state law, rule, regulation, or interpretation the bank intends
25 to use as authority to engage in the activity.
26 (Source: P.A. 92-483, eff. 8-23-01; 92-811, eff. 8-21-02;
27 93-561; eff.1-1-04.)
 
28     (205 ILCS 5/10)  (from Ch. 17, par. 317)
29     Sec. 10. Permit to organize.
30     (a) Upon the filing of an application for a permit to
31 organize, the Commissioner shall investigate the truth of the
32 statements therein and shall consider the proposed bank's
33 capital structure, its future earnings prospects, the general
34 character, experience, and qualifications of its proposed
35 management, its proposed plan of operation, and the convenience

 

 

SB3036 - 22 - LRB093 18472 SAS 44186 b

1 and needs of the area sought to be served, and notwithstanding
2 the provisions of Section 7 of this Act, the Commissioner shall
3 not approve the application and issue a permit to organize
4 unless he shall be of the opinion and finds:
5         (1) that the proposed capital at least meets the
6     minimum requirements of this Act determined by the
7     Commissioner pursuant to Section 7 of this Act including
8     additional capital necessitated by the circumstances of
9     the proposed bank including its size, scope of operations
10     and market in which it proposes to operate;
11         (2) that the future earnings prospects are favorable;
12         (3) that the general character, experience, and
13     qualifications of its proposed management and its proposed
14     plan of operation are such as to assure reasonable promise
15     of successful, safe and sound operation;
16         (4) (Blank) that the name of the proposed bank is not
17     the same as or deceptively similar to a name reserved with
18     the Commissioner's office under Section 9.5 or to the name
19     of any other bank then operating in this State; and
20         (5) that the convenience and needs of the area sought
21     to be served by the proposed bank will be promoted.
22     (b) The Commissioner shall revoke the permit to organize
23 and order liquidation of any funds collected in the event that
24 the organizers do not obtain a charter from the Commissioner
25 authorizing the bank to commence business within 6 months from
26 the date of the issuance of the permit, unless a request has
27 been submitted, in writing, to the Commissioner for an
28 extension and the request has been approved.
29     (c) The Commissioner may impose such terms and conditions,
30 if any, on the issuance of the permit to organize as the
31 Commissioner deems appropriate and necessary for the
32 organization of the bank.
33 (Source: P.A. 91-452, eff. 1-1-00; 92-483, eff. 8-23-01.)
 
34     (205 ILCS 5/13.5)
35     Sec. 13.5. Formation and merger of interim banks.

 

 

SB3036 - 23 - LRB093 18472 SAS 44186 b

1     (a) An interim bank may be chartered as a State bank for
2 the exclusive purpose of accomplishing a corporate
3 restructuring through merger with an existing State bank,
4 national bank, trust company, or an insured savings
5 association. An interim bank shall be chartered and merged
6 pursuant to the provisions of this Section. The interim bank
7 shall not accept deposits, make loans, pay checks, or engage in
8 the general banking business or any part thereof, and shall not
9 be subject to the provisions of this Act other than those set
10 forth in this Section; provided, however, that if the interim
11 bank becomes the resulting bank in a merger, such resulting
12 bank shall have all of the powers, rights, and duties of a
13 State bank and must comply with all applicable provisions of
14 this Act.
15     (b) An interim State bank may be organized upon application
16 by 5 or more incorporators or by a bank holding company. The
17 application shall be made on forms prescribed by the
18 Commissioner which shall request, at a minimum, the following
19 information:
20         (1) the names and addresses of the incorporators;
21         (2) the proposed name and address of the interim bank;
22         (3) the name and address of all banks with which the
23     interim bank will be merging;
24         (4) a copy of the merger agreement by which the interim
25     bank will be merged with the banks identified in item (3)
26     containing the same information required in merger
27     agreements pursuant to subsection (1) of Section 22 of this
28     Act; and
29         (5) an acknowledgement that the interim bank shall not
30     engage in the general banking business or any part thereof
31     unless and until the interim bank becomes the resulting
32     bank in a merger.
33     (c) The merger agreement must be approved by all of the
34 incorporators of the interim bank and must be approved by the
35 existing State bank with which the interim bank will merge, as
36 required by Section 22 of this Act.

 

 

SB3036 - 24 - LRB093 18472 SAS 44186 b

1     (d) Upon receipt of the application to organize the interim
2 bank and the merger agreement submitted pursuant to this
3 Section and Section 22 of this Act, the Commissioner may issue
4 a charter to the interim bank and approve the merger agreement
5 if the Commissioner makes the findings set forth in subsection
6 (3) of Section 22 of this Act. The interim bank's charter shall
7 not take effect until, and shall only be effective for purposes
8 of, the merger.
9     (e) Nothing in this Section affects the obligations of an
10 existing State bank with which the interim bank will merge, or
11 the rights of minority or dissenting shareholders of the
12 existing State bank, in connection with the approval,
13 execution, and accomplishment of a merger agreement as provided
14 elsewhere in this Act.
15     (f) Nothing in this Section affects the obligations of the
16 parties to obtain the Commissioner's approval under Section 18
17 of this Act if the interim bank merger results in a change of
18 control of the resulting bank.
19 (Source: P.A. 92-483, eff. 8-23-01.)
 
20     (205 ILCS 5/16.8 new)
21     Sec. 16.8. Prior approval required for directors, senior
22 executive officers.
23     (a) A state bank shall obtain the Commissioner's prior
24 written approval before adding an individual to the board of
25 directors or the employing an individual as a senior executive
26 officer of the bank if:
27         (1) the state bank, at its last regular examination,
28 was assigned a Composite Rating of 3, 4, or 5, or
29         (2) the Commissioner determines that such prior
30 approval is appropriate.
31     (b) A state bank may not add an individual to the board of
32 directors or employ an individual as a senior executive officer
33 if the Commissioner issues a notice of disapproval of such
34 addition or employment.
35     (c) The Commissioner may prescribe, by regulation,

 

 

SB3036 - 25 - LRB093 18472 SAS 44186 b

1 conditions under which the prior approval requirement of
2 subsection (a) of this Section may be waived in the event of
3 extraordinary circumstances.
4     (d) Waivers issued under subsection (c) shall not affect
5 the authority of the Commissioner to issue notices of
6 disapproval of such additions or employment of such individuals
7 within 30 days after each such waiver.
8     (e) The Commissioner shall issue a notice of disapproval if
9 the competence, experience, character, or integrity of the
10 individual with respect to whom the request for approval is
11 submitted indicates that it would not be in the best interests
12 of the depositors of the depository institution or in the best
13 interest of the public to permit the individual to be employed
14 by, or associated with, the state bank.
 
15     (205 ILCS 5/18)  (from Ch. 17, par. 325)
16     Sec. 18. Change in control.
17     (a) Before a change may occur in the ownership of
18 outstanding stock of any State bank, whether by sale and
19 purchase, gift, bequest or inheritance, or any other means,
20 including the acquisition of stock of the State bank by any
21 bank holding company, which will result in control or a change
22 in the control of the bank or before a change in the control of
23 a holding company having control of the outstanding stock of a
24 State bank whether by sale and purchase, gift, bequest or
25 inheritance, or any other means, including the acquisition of
26 stock of such holding company by any other bank holding
27 company, which will result in control or a change in control of
28 the bank or holding company, or before a transfer of
29 substantially all the assets or liabilities of the State bank,
30 the Commissioner shall be of the opinion and find:
31         (1) that the general character of proposed management
32     or of the person desiring to purchase substantially all the
33     assets or to assume substantially all the liabilities of
34     the State bank, after the change in control, is such as to
35     assure reasonable promise of successful, safe and sound

 

 

SB3036 - 26 - LRB093 18472 SAS 44186 b

1     operation;
2         (1.1) that depositors' interests will not be
3     jeopardized by the purchase or assumption and that adequate
4     provision has been made for all liabilities as required for
5     a voluntary liquidation under Section 68 of this Act;
6         (2) that the future earnings prospects of the person
7     desiring to purchase substantially all assets or to assume
8     substantially all the liabilities of the State bank, after
9     the proposed change in control, are favorable;
10         (3) that any prior involvement by the persons proposing
11     to obtain control, to purchase substantially all the
12     assets, or to assume substantially all the liabilities of
13     the State bank or by the proposed management personnel with
14     any other financial institution, whether as stockholder,
15     director, officer or customer, was conducted in a safe and
16     sound manner; and
17         (4) that if the acquisition is being made by a bank
18     holding company, the acquisition is authorized under the
19     Illinois Bank Holding Company Act of 1957.
20     (a-5) In cases where a person acquires stock of a State
21 bank in satisfaction of a debt previously contracted in good
22 faith and the acquisition results in control or a change in
23 control of the State bank, the person shall, within 90 days
24 after the acquisition, file with the Commissioner notice of the
25 change in control containing information enabling the
26 Commissioner to make the findings provided in subsection (a) of
27 this Section.
28     (b) Persons desiring to purchase control of an existing
29 state bank, to purchase substantially all the assets, or to
30 assume substantially all the liabilities of the State bank
31 shall, prior to that purchase, submit to the Commissioner:
32         (1) a statement of financial worth;
33         (2) satisfactory evidence that any prior involvement
34     by the persons and the proposed management personnel with
35     any other financial institution, whether as stockholder,
36     director, officer or customer, was conducted in a safe and

 

 

SB3036 - 27 - LRB093 18472 SAS 44186 b

1     sound manner; and
2         (3) such other relevant information as the
3     Commissioner may request to substantiate the findings
4     under subsection (a) of this Section.
5     A person who has submitted information to the Commissioner
6 pursuant to this subsection (b) is under a continuing
7 obligation until the Commissioner takes action on the
8 application to immediately supplement that information if
9 there are any material changes in the information previously
10 furnished or if there are any material changes in any
11 circumstances that may affect the Commissioner's opinion and
12 findings. In addition, a person submitting information under
13 this subsection shall notify the Commissioner of the date when
14 the change in control is finally effected.
15     The Commissioner may impose such terms and conditions on
16 the approval of the change in control application as he deems
17 necessary or appropriate.
18     If an applicant, whose application for a change in control
19 has been approved pursuant to subsection (a) of this Section,
20 fails to effect the change in control within 180 days after the
21 date of the Commissioner's approval, the Commissioner shall
22 revoke that approval unless a request has been submitted, in
23 writing, to the Commissioner for an extension and the request
24 has been approved.
25     (b-1) Any person who obtains ownership of stock of an
26 existing State bank or stock of a holding company that controls
27 the State bank by gift, bequest, or inheritance such that
28 ownership of the stock would constitute control of the State
29 bank or holding company may obtain title and ownership of the
30 stock, but may not exercise management or control of the
31 business and affairs of the bank or vote his or her shares so
32 as to exercise management or control unless and until the
33 Commissioner approves an application for the change of control
34 as provided in subsection (b) of this Section.
35     (c) Whenever a state bank makes a loan or loans, secured,
36 or to be secured, by 25% or more of the outstanding stock of a

 

 

SB3036 - 28 - LRB093 18472 SAS 44186 b

1 state bank, the president or other chief executive officer of
2 the lending bank shall promptly report such fact to the
3 Commissioner upon obtaining knowledge of such loan or loans,
4 except that no report need be made in those cases where the
5 borrower has been the owner of record of the stock for a period
6 of one year or more, or the stock is that of a newly organized
7 bank prior to its opening.
8     (d) The reports required by subsections (b) and (c) of this
9 Section 18, other than those relating to a transfer of assets
10 or assumption of liabilities, shall contain the following
11 information to the extent that it is known by the person making
12 the report: (1) the number of shares involved; (2) the names of
13 the sellers (or transferors); (3) the names of the purchasers
14 (or transferees); (4) the names of the beneficial owners if the
15 shares are registered in another name: (5) the purchase price,
16 if applicable; (6) the total number of shares owned by the
17 sellers (or transferors), the purchasers (or transferees) and
18 the beneficial owners both immediately before and after the
19 transaction; and, (7) in the case of a loan, the name of the
20 borrower, the amount of the loan, the name of the bank issuing
21 the stock securing the loan and the number of shares securing
22 the loan. In addition to the foregoing, such reports shall
23 contain such other information which is requested by the
24 Commissioner to inform the Commissioner of the effect of the
25 transaction upon control of the bank whose stock is involved.
26     (d-1) The reports required by subsection (b) of this
27 Section 18 that relate to purchase of assets and assumption of
28 liabilities shall contain the following information to the
29 extent that it is known by the person making the report: (1)
30 the value, amount, and description of the assets transferred;
31 (2) the amount, type, and to whom each type of liabilities are
32 owed; (3) the names of the purchasers (or transferees); (4) the
33 names of the beneficial owners if the shares of a purchaser or
34 transferee are registered in another name; (5) the purchase
35 price, if applicable; and, (6) in the case of a loan obtained
36 to effect a purchase, the name of the borrower, the amount and

 

 

SB3036 - 29 - LRB093 18472 SAS 44186 b

1 terms of the loan, and the description of the assets securing
2 the loan. In addition to the foregoing, these reports shall
3 contain any other information that is requested by the
4 Commissioner to inform the Commissioner of the effect of the
5 transaction upon the bank from which assets are purchased or
6 liabilities are transferred.
7     (e) Whenever such a change as described in subsection (a)
8 of this Section 18 occurs, each state bank shall report
9 promptly to the Commissioner any changes or replacement of its
10 chief executive officer or of any director occurring in the
11 next 12 month period, including in its report a statement of
12 the past and current business and professional affiliations of
13 the new chief executive officer or directors.
14     (f) (Blank).
15     (g) (1) Except as otherwise expressly provided in this
16     subsection (g), the Commissioners shall not approve an
17     application for a change in control if upon consummation of
18     the change in control the persons applying for the change
19     in control, including any affiliates of the persons
20     applying, would control 30% or more of the total amount of
21     deposits which are located in this State at insured
22     depository institutions. For purposes of this subsection
23     (g), the words "insured depository institution" shall mean
24     State banks, national banks, and insured savings
25     associations. For purposes of this subsection (g), the word
26     "deposits" shall have the meaning ascribed to that word in
27     Section 3(1) of the Federal Deposit Insurance Act. For
28     purposes of this subsection (g), the total amount of
29     deposits which are considered to be located in this State
30     at insured depository institutions shall equal the sum of
31     all deposits held at the main banking premises and branches
32     in the State of Illinois of State banks, national banks, or
33     insured savings associations. For purposes of this
34     subsection (g), the word "affiliates" shall have the
35     meaning ascribed to that word in Section 35.2 of this Act.
36         (2) Notwithstanding the provisions of subsection

 

 

SB3036 - 30 - LRB093 18472 SAS 44186 b

1     (g)(1) of this Section, the Commissioner may approve an
2     application for a change in control for a bank that is in
3     default or in danger of default. Except in those instances
4     in which an application for a change in control is for a
5     bank that is in default or in danger of default, the
6     Commissioner may not approve a change in control which does
7     not meet the requirements of subsection (g)(1) of this
8     Section. The Commissioner may not waive the provisions of
9     subsection (g)(1) of this Section, whether pursuant to
10     Section 3(d) of the federal Bank Holding Company Act of
11     1956 or Section 44(d) of the Federal Deposit Insurance Act,
12     except as expressly provided in this subsection (g)(2).
13     (h) As used in this Section, the term "control" means the
14 power, directly or indirectly, acting through or acting in
15 concert with one or more persons, to direct the management or
16 policies of the bank or to vote 25% or more of the outstanding
17 stock of the bank. If there is any question as to whether a
18 change in control application should be filed, the question
19 shall be resolved in favor of filing the application with the
20 Commissioner.
21     As used in this Section, "substantially all" the assets or
22 liabilities of a State bank means that portion of the assets or
23 liabilities of a State bank such that their purchase or
24 transfer will materially impair the ability of the State bank
25 to continue successful, safe, and sound operations or to
26 continue as a going concern or would cause the bank to lose its
27 federal deposit insurance.
28     As used in this Section, "purchase" includes a transfer by
29 gift, bequest, inheritance, or any other means.
30     As used in this Section, "acting in concert" means knowing
31 participation in a joint activity or parallel action towards a
32 common goal of acquiring control of a state bank, whether or
33 not pursuant to an express agreement.
34 (Source: P.A. 92-483, eff. 8-23-01; 92-811, eff. 8-21-02.)
 
35     (205 ILCS 5/21.2)

 

 

SB3036 - 31 - LRB093 18472 SAS 44186 b

1     Sec. 21.2. Interstate mergers; minimum age requirement.
2     (a) No out of state bank and no national bank whose main
3 banking premises is located in a state other than Illinois
4 shall merge with or into, or shall acquire all or substantially
5 all of the assets of an Illinois bank that has existed and
6 continuously operated as a bank for 5 years or less.
7     (b) For purposes of subsection (a) of this Section, an
8 Illinois bank that is the resulting bank following a merger
9 involving an Illinois interim bank shall be considered to have
10 been in existence and continuously operated during the
11 existence and continuous operation of the Illinois merged bank.
12 As used in this subsection (b), the words "interim bank" shall
13 mean a bank which shall not accept deposits, make loans, pay
14 checks, or engage in the general business of banking or any
15 part thereof, and is chartered solely for the purpose of
16 merging with or acquiring control of, or acquiring all or
17 substantially all of the assets of an existing Illinois bank.
18     (c) The provisions of subsection (a) of the Section shall
19 not apply to the merger or acquisition of all or substantially
20 all of the assets of an Illinois bank:
21         (1) if the merger or acquisition is part of a purchase
22     or acquisition with respect to which the Federal Deposit
23     Insurance Corporation provides assistance under Section
24     13(c) of the Federal Deposit Insurance Act; or
25         (2) if the Illinois bank is in default or in danger of
26     default.
27 (Source: P.A. 90-226, eff. 7-25-97.)
 
28     (205 ILCS 5/46)  (from Ch. 17, par. 357)
29     Sec. 46. Misleading practices and names prohibited;
30 penalty.
31     (a) No person, firm, partnership, or corporation that is
32 not a bank shall transact business in this State in a manner
33 which has a substantial likelihood of misleading the public by
34 implying that the business is a bank, or shall use the word
35 "banc", "bank", "banker", or "banking" in connection with the

 

 

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1 business. Any person, firm, partnership or corporation
2 violating this Section shall be deemed guilty of a Class A
3 misdemeanor, and the Attorney General or State's Attorney of
4 the county in which any such violation occurs may restrain such
5 violation by a complaint for injunctive relief.
6     (b) If the Commissioner is of the opinion and finds that a
7 person, firm, partnership, or corporation that is not a bank
8 has transacted or intends to transact business in this State in
9 a manner which has a substantial likelihood of misleading the
10 public by implying that the business is a bank, or has used or
11 intends to use the word "banc", "bank", "banker", or "banking"
12 in connection with the business, then the Commissioner may
13 direct that person, firm, partnership, or corporation to cease
14 and desist from transacting the business or using the word
15 "banc", "bank", "banker", or "banking". If that person, firm,
16 partnership, or corporation persists in transacting the
17 business or using the word "banc", "bank", "banker", or
18 "banking", then the Commissioner may impose a civil penalty of
19 up to $10,000 for each violation. Each day that the person,
20 firm, partnership, or corporation continues transacting the
21 business or using the word "banc", "bank", "banker", or
22 "banking" in connection with the business shall constitute a
23 separate violation of these provisions.
24     (c) A person, firm, partnership, or corporation that is not
25 a bank, and is not transacting or intending to transact
26 business in this State in a manner that has a substantial
27 likelihood of misleading the public by implying that such
28 business is a bank, may apply to the Commissioner for
29 permission to use the word "banc", "bank", "banker", or
30 "banking" in connection with the business. If the Commissioner
31 determines that there is no substantial likelihood of
32 misleading the public, and upon such conditions as the
33 Commissioner may impose to prevent the person, firm,
34 partnership, or corporation from holding itself out in a
35 misleading manner, then such person, firm, partnership, or
36 corporation may use the word "banc", "bank", "banker", or

 

 

SB3036 - 33 - LRB093 18472 SAS 44186 b

1 "banking".
2         (d) (1) Unless otherwise expressly permitted by law, no
3     person, firm, partnership, or corporation may use the name
4     of an existing bank when marketing to or soliciting
5     business from customers or prospective customers if the
6     reference to the existing bank is made without the consent
7     of the existing bank.
8         (1.5) Unless otherwise expressly permitted by law, no
9     person, firm, partnership, or corporation may use a name
10     similar to that of an existing bank when marketing to or
11     soliciting business from customers or prospective
12     customers if the similar name is used in a manner that
13     could cause a reasonable person to believe that the
14     marketing material or solicitation originated from or is
15     endorsed by the existing bank or that the existing bank is
16     in any other way responsible for the marketing material or
17     solicitation.
18         (2) An existing bank may, in addition to any other
19     remedies available under the law, report an alleged
20     violation of this subsection (d) to the Commissioner. If
21     the Commissioner finds the marketing material or
22     solicitation in question to be in violation of this
23     subsection, the Commissioner may direct the person, firm,
24     partnership, or corporation to cease and desist from using
25     that marketing material or solicitation in Illinois. If
26     that person, firm, partnership, or corporation persists in
27     the use of the marketing material or solicitation, then the
28     Commissioner may impose a civil penalty of up to $10,000
29     for each violation. Each instance in which the marketing
30     material or solicitation is sent to a customer or
31     prospective customer shall constitute a separate violation
32     of these provisions. The Commissioner is authorized to
33     promulgate rules to administer these provisions.
34         (3) (Blank).
35 (Source: P.A. 92-476, eff. 8-23-01; 92-811, eff. 8-21-02.)
 

 

 

SB3036 - 34 - LRB093 18472 SAS 44186 b

1     (205 ILCS 5/48)  (from Ch. 17, par. 359)
2     Sec. 48. Commissioner's powers; duties. The Commissioner
3 shall have the powers and authority, and is charged with the
4 duties and responsibilities designated in this Act, and a State
5 bank shall not be subject to any other visitorial power other
6 than as authorized by this Act, except those vested in the
7 courts, or upon prior consultation with the Commissioner, a
8 foreign bank regulator with an appropriate supervisory
9 interest in the parent or affiliate of a state bank. In the
10 performance of the Commissioner's duties:
11     (1) The Commissioner shall call for statements from all
12 State banks as provided in Section 47 at least one time during
13 each calendar quarter.
14     (2) (a) The Commissioner, as often as the Commissioner
15 shall deem necessary or proper, and no less frequently than 18
16 months following the preceding examination, shall appoint a
17 suitable person or persons to make an examination of the
18 affairs of every State bank, except that for every eligible
19 State bank, as defined by regulation, the Commissioner in lieu
20 of the examination may accept on an alternating basis the
21 examination made by the eligible State bank's appropriate
22 federal banking agency pursuant to Section 111 of the Federal
23 Deposit Insurance Corporation Improvement Act of 1991,
24 provided the appropriate federal banking agency has made such
25 an examination. A person so appointed shall not be a
26 stockholder or officer or employee of any bank which that
27 person may be directed to examine, and shall have powers to
28 make a thorough examination into all the affairs of the bank
29 and in so doing to examine any of the officers or agents or
30 employees thereof on oath and shall make a full and detailed
31 report of the condition of the bank to the Commissioner. In
32 making the examination the examiners shall include an
33 examination of the affairs of all the affiliates of the bank,
34 as defined in subsection (b) of Section 35.2 of this Act, or
35 subsidiaries of the bank as shall be necessary to disclose
36 fully the conditions of the subsidiaries or affiliates, the

 

 

SB3036 - 35 - LRB093 18472 SAS 44186 b

1 relations between the bank and the subsidiaries or affiliates
2 and the effect of those relations upon the affairs of the bank,
3 and in connection therewith shall have power to examine any of
4 the officers, directors, agents, or employees of the
5 subsidiaries or affiliates on oath. After May 31, 1997, the
6 Commissioner may enter into cooperative agreements with state
7 regulatory authorities of other states to provide for
8 examination of State bank branches in those states, and the
9 Commissioner may accept reports of examinations of State bank
10 branches from those state regulatory authorities. These
11 cooperative agreements may set forth the manner in which the
12 other state regulatory authorities may be compensated for
13 examinations prepared for and submitted to the Commissioner.
14     (b) After May 31, 1997, the Commissioner is authorized to
15 examine, as often as the Commissioner shall deem necessary or
16 proper, branches of out-of-state banks. The Commissioner may
17 establish and may assess fees to be paid to the Commissioner
18 for examinations under this subsection (b). The fees shall be
19 borne by the out-of-state bank, unless the fees are borne by
20 the state regulatory authority that chartered the out-of-state
21 bank, as determined by a cooperative agreement between the
22 Commissioner and the state regulatory authority that chartered
23 the out-of-state bank.
24     (2.5) Whenever any State bank, any subsidiary or affiliate
25 of a State bank, or after May 31, 1997, any branch of an
26 out-of-state bank causes to be performed, by contract or
27 otherwise, any bank services for itself, whether on or off its
28 premises:
29         (a) that performance shall be subject to examination by
30     the Commissioner to the same extent as if services were
31     being performed by the bank or, after May 31, 1997, branch
32     of the out-of-state bank itself on its own premises; and
33         (b) the bank or, after May 31, 1997, branch of the
34     out-of-state bank shall notify the Commissioner of the
35     existence of a service relationship. The notification
36     shall be submitted with the first statement of condition

 

 

SB3036 - 36 - LRB093 18472 SAS 44186 b

1     (as required by Section 47 of this Act) due after the
2     making of the service contract or the performance of the
3     service, whichever occurs first. The Commissioner shall be
4     notified of each subsequent contract in the same manner.
5     For purposes of this subsection (2.5), the term "bank
6 services" means services such as sorting and posting of checks
7 and deposits, computation and posting of interest and other
8 credits and charges, preparation and mailing of checks,
9 statements, notices, and similar items, or any other clerical,
10 bookkeeping, accounting, statistical, or similar functions
11 performed for a State bank, including but not limited to
12 electronic data processing related to those bank services.
13     (3) The expense of administering this Act, including the
14 expense of the examinations of State banks as provided in this
15 Act, shall to the extent of the amounts resulting from the fees
16 provided for in paragraphs (a), (a-2), and (b) of this
17 subsection (3) be assessed against and borne by the State
18 banks:
19         (a) Each bank shall pay to the Commissioner a Call
20     Report Fee which shall be paid in quarterly installments
21     equal to one-fourth of the sum of the annual fixed fee of
22     $800, plus a variable fee based on the assets shown on the
23     quarterly statement of condition delivered to the
24     Commissioner in accordance with Section 47 for the
25     preceding quarter according to the following schedule: 16¢
26     per $1,000 of the first $5,000,000 of total assets, 15¢ per
27     $1,000 of the next $20,000,000 of total assets, 13¢ per
28     $1,000 of the next $75,000,000 of total assets, 9¢ per
29     $1,000 of the next $400,000,000 of total assets, 7¢ per
30     $1,000 of the next $500,000,000 of total assets, and 5¢ per
31     $1,000 of all assets in excess of $1,000,000,000, of the
32     State bank. The Call Report Fee shall be calculated and
33     assessed in accordance with a formula prescribed by rule by
34     the Commissioner and billed to the banks for remittance at
35     the time of the quarterly statements of condition provided
36     for in Section 47. The Commissioner may require payment of

 

 

SB3036 - 37 - LRB093 18472 SAS 44186 b

1     the fees provided in this Section by an electronic transfer
2     of funds or an automatic debit of an account of each of the
3     State banks. In case more than one examination of any bank
4     is deemed by the Commissioner to be necessary in any
5     examination frequency cycle specified in subsection 2(a)
6     of this Section, and is performed at his direction, the
7     Commissioner may assess a reasonable additional fee to
8     recover the cost of the additional examination; provided,
9     however, that an examination conducted at the request of
10     the State Treasurer pursuant to the Uniform Disposition of
11     Unclaimed Property Act shall not be deemed to be an
12     additional examination under this Section. In lieu of the
13     method and amounts set forth in this paragraph (a) for the
14     calculation of the Call Report Fee, The the Commissioner
15     may specify by rule that the Call Report Fees provided by
16     this Section may be assessed semiannually or some other
17     period and may provide in the rule the formula to be used
18     for calculating and assessing the periodic Call Report Fees
19     to be paid by State banks.
20         (a-1) If in the opinion of the Commissioner an
21     emergency exists or appears likely, the Commissioner may
22     assign an examiner or examiners to monitor the affairs of a
23     State bank with whatever frequency he deems appropriate,
24     including but not limited to a daily basis. The reasonable
25     and necessary expenses of the Commissioner during the
26     period of the monitoring shall be borne by the subject
27     bank. The Commissioner shall furnish the State bank a
28     statement of time and expenses if requested to do so within
29     30 days of the conclusion of the monitoring period.
30         (a-2) On and after January 1, 1990, the reasonable and
31     necessary expenses of the Commissioner during examination
32     of the performance of electronic data processing services
33     under subsection (2.5) shall be borne by the banks for
34     which the services are provided. An amount, based upon a
35     fee structure prescribed by the Commissioner, shall be paid
36     by the banks or, after May 31, 1997, branches of

 

 

SB3036 - 38 - LRB093 18472 SAS 44186 b

1     out-of-state banks receiving the electronic data
2     processing services along with the Call Report Fee assessed
3     under paragraph (a) of this subsection (3).
4         (a-3) After May 31, 1997, the reasonable and necessary
5     expenses of the Commissioner during examination of the
6     performance of electronic data processing services under
7     subsection (2.5) at or on behalf of branches of
8     out-of-state banks shall be borne by the out-of-state
9     banks, unless those expenses are borne by the state
10     regulatory authorities that chartered the out-of-state
11     banks, as determined by cooperative agreements between the
12     Commissioner and the state regulatory authorities that
13     chartered the out-of-state banks.
14         (b) "Fiscal year" for purposes of this Section 48 is
15     defined as a period beginning July 1 of any year and ending
16     June 30 of the next year. The Commissioner shall receive
17     for each fiscal year, commencing with the fiscal year
18     ending June 30, 1987, a contingent fee equal to the lesser
19     of the aggregate of the fees paid by all State banks under
20     paragraph (a) of subsection (3) for that year, or the
21     amount, if any, whereby the aggregate of the administration
22     expenses, as defined in paragraph (c), for that fiscal year
23     exceeds the sum of the aggregate of the fees payable by all
24     State banks for that year under paragraph (a) of subsection
25     (3), plus any amounts transferred into the Bank and Trust
26     Company Fund from the State Pensions Fund for that year,
27     plus all other amounts collected by the Commissioner for
28     that year under any other provision of this Act, plus the
29     aggregate of all fees collected for that year by the
30     Commissioner under the Corporate Fiduciary Act, excluding
31     the receivership fees provided for in Section 5-10 of the
32     Corporate Fiduciary Act, and the Foreign Banking Office
33     Act. The aggregate amount of the contingent fee thus
34     arrived at for any fiscal year shall be apportioned
35     amongst, assessed upon, and paid by the State banks and
36     foreign banking corporations, respectively, in the same

 

 

SB3036 - 39 - LRB093 18472 SAS 44186 b

1     proportion that the fee of each under paragraph (a) of
2     subsection (3), respectively, for that year bears to the
3     aggregate for that year of the fees collected under
4     paragraph (a) of subsection (3). The aggregate amount of
5     the contingent fee, and the portion thereof to be assessed
6     upon each State bank and foreign banking corporation,
7     respectively, shall be determined by the Commissioner and
8     shall be paid by each, respectively, within 120 days of the
9     close of the period for which the contingent fee is
10     computed and is payable, and the Commissioner shall give 20
11     days advance notice of the amount of the contingent fee
12     payable by the State bank and of the date fixed by the
13     Commissioner for payment of the fee.
14         (c) The "administration expenses" for any fiscal year
15     shall mean the ordinary and contingent expenses for that
16     year incident to making the examinations provided for by,
17     and for otherwise administering, this Act, the Corporate
18     Fiduciary Act, excluding the expenses paid from the
19     Corporate Fiduciary Receivership account in the Bank and
20     Trust Company Fund, the Foreign Banking Office Act, the
21     Electronic Fund Transfer Act, and the Illinois Bank
22     Examiners' Education Foundation Act, including all
23     salaries and other compensation paid for personal services
24     rendered for the State by officers or employees of the
25     State, including the Commissioner and the Deputy
26     Commissioners, all expenditures for telephone and
27     telegraph charges, postage and postal charges, office
28     stationery, supplies and services, and office furniture
29     and equipment, including typewriters and copying and
30     duplicating machines and filing equipment, surety bond
31     premiums, and travel expenses of those officers and
32     employees, employees, expenditures or charges for the
33     acquisition, enlargement or improvement of, or for the use
34     of, any office space, building, or structure, or
35     expenditures for the maintenance thereof or for furnishing
36     heat, light, or power with respect thereto, all to the

 

 

SB3036 - 40 - LRB093 18472 SAS 44186 b

1     extent that those expenditures are directly incidental to
2     such examinations or administration. The Commissioner
3     shall not be required by paragraphs (c) or (d-1) of this
4     subsection (3) to maintain in any fiscal year's budget
5     appropriated reserves for accrued vacation and accrued
6     sick leave that is required to be paid to employees of the
7     Commissioner upon termination of their service with the
8     Commissioner in an amount that is more than is reasonably
9     anticipated to be necessary for any anticipated turnover in
10     employees, whether due to normal attrition or due to
11     layoffs, terminations, or resignations.
12         (d) The aggregate of all fees collected by the
13     Commissioner under this Act, the Corporate Fiduciary Act,
14     or the Foreign Banking Office Act on and after July 1,
15     1979, shall be paid promptly after receipt of the same,
16     accompanied by a detailed statement thereof, into the State
17     treasury and shall be set apart in a special fund to be
18     known as the "Bank and Trust Company Fund", except as
19     provided in paragraph (c) of subsection (11) of this
20     Section. All earnings received from investments of funds in
21     the Bank and Trust Company Fund shall be deposited in the
22     Bank and Trust Company Fund and may be used for the same
23     purposes as fees deposited in that Fund. The amount from
24     time to time deposited into the Bank and Trust Company Fund
25     shall be used to offset the ordinary administration
26     administrative expenses of the Commissioner of Banks and
27     Real Estate as defined in this Section. Nothing in this
28     amendatory Act of 1979 shall prevent continuing the
29     practice of paying expenses involving salaries,
30     retirement, social security, and State-paid insurance
31     premiums of State officers by appropriations from the
32     General Revenue Fund. However, the General Revenue Fund
33     shall be reimbursed for those payments made on and after
34     July 1, 1979, by an annual transfer of funds from the Bank
35     and Trust Company Fund.
36         (d-1) Adequate funds shall be available in the Bank and

 

 

SB3036 - 41 - LRB093 18472 SAS 44186 b

1     Trust Company Fund to permit the timely payment of
2     administration expenses. In each fiscal year the total
3     administration expenses shall be deducted from the total
4     fees collected by the Commissioner and the remainder
5     transferred into the Cash Flow Reserve Account, unless the
6     balance of the Cash Flow Reserve Account prior to the
7     transfer equals or exceeds one-third one-fourth of the
8     total initial appropriations from the Bank and Trust
9     Company Fund for the subsequent year, in which case the
10     remainder shall be credited to State banks and foreign
11     banking corporations and applied against their fees for the
12     subsequent year. The amount credited to each State bank and
13     foreign banking corporation shall be in the same proportion
14     as the Call Report Fees paid by each for the year bear to
15     the total Call Report Fees collected for the year. If,
16     after a transfer to the Cash Flow Reserve Account is made
17     or if no remainder is available for transfer, the balance
18     of the Cash Flow Reserve Account is less than one-third
19     one-fourth of the total initial appropriations for the
20     subsequent year and the amount transferred is less than 5%
21     of the total Call Report Fees for the year, additional
22     amounts needed to make the transfer equal to 5% of the
23     total Call Report Fees for the year shall be apportioned
24     amongst, assessed upon, and paid by the State banks and
25     foreign banking corporations in the same proportion that
26     the Call Report Fees of each, respectively, for the year
27     bear to the total Call Report Fees collected for the year.
28     The additional amounts assessed shall be transferred into
29     the Cash Flow Reserve Account. For purposes of this
30     paragraph (d-1), the calculation of the fees collected by
31     the Commissioner shall exclude the receivership fees
32     provided for in Section 5-10 of the Corporate Fiduciary
33     Act.
34         (e) The Commissioner may upon request certify to any
35     public record in his keeping and shall have authority to
36     levy a reasonable charge for issuing certifications of any

 

 

SB3036 - 42 - LRB093 18472 SAS 44186 b

1     public record in his keeping.
2         (f) In addition to fees authorized elsewhere in this
3     Act, the Commissioner may, in connection with a review,
4     approval, or provision of a service, levy a reasonable
5     charge to recover the cost of the review, approval, or
6     service.
7     (4) Nothing contained in this Act shall be construed to
8 limit the obligation relative to examinations and reports of
9 any State bank, deposits in which are to any extent insured by
10 the United States or any agency thereof, nor to limit in any
11 way the powers of the Commissioner with reference to
12 examinations and reports of that bank.
13     (5) The nature and condition of the assets in or investment
14 of any bonus, pension, or profit sharing plan for officers or
15 employees of every State bank or, after May 31, 1997, branch of
16 an out-of-state bank shall be deemed to be included in the
17 affairs of that State bank or branch of an out-of-state bank
18 subject to examination by the Commissioner under the provisions
19 of subsection (2) of this Section, and if the Commissioner
20 shall find from an examination that the condition of or
21 operation of the investments or assets of the plan is unlawful,
22 fraudulent, or unsafe, or that any trustee has abused his
23 trust, the Commissioner shall, if the situation so found by the
24 Commissioner shall not be corrected to his satisfaction within
25 60 days after the Commissioner has given notice to the board of
26 directors of the State bank or out-of-state bank of his
27 findings, report the facts to the Attorney General who shall
28 thereupon institute proceedings against the State bank or
29 out-of-state bank, the board of directors thereof, or the
30 trustees under such plan as the nature of the case may require.
31     (6) The Commissioner shall have the power:
32         (a) To promulgate reasonable rules for the purpose of
33     administering the provisions of this Act.
34         (a-5) To impose conditions on any approval issued by
35     the Commissioner if he determines that the conditions are
36     necessary or appropriate. These conditions shall be

 

 

SB3036 - 43 - LRB093 18472 SAS 44186 b

1     imposed in writing and shall continue in effect for the
2     period prescribed by the Commissioner.
3         (b) To issue orders against any person, if the
4     Commissioner has reasonable cause to believe that an unsafe
5     or unsound banking practice has occurred, is occurring, or
6     is about to occur, if any person has violated, is
7     violating, or is about to violate any law, rule, condition
8     imposed by the Commissioner, or written agreement with the
9     Commissioner, or for the purpose of administering the
10     provisions of this Act and any rule promulgated in
11     accordance with this Act. The Commissioner may make
12     available to the public any formal enforcement action or
13     modification to such formal enforcement action. For
14     purposes of this subsection, "formal enforcement action"
15     means a Order to Cease and Desist, an Order of Prohibition,
16     an Order of Removal, or an Order Assessing a Civil Monetary
17     Penalty.
18         (b-1) To enter into agreements with a bank establishing
19     a program to correct the condition of the bank or its
20     practices.
21         (c) To appoint hearing officers to execute any of the
22     powers granted to the Commissioner under this Section for
23     the purpose of administering this Act and any rule
24     promulgated in accordance with this Act and otherwise to
25     authorize, in writing, an officer or employee of the Office
26     of Banks and Real Estate to exercise his powers under this
27     Act.
28         (d) To subpoena witnesses, to compel their attendance,
29     to administer an oath, to examine any person under oath,
30     and to require the production of any relevant books,
31     papers, accounts, and documents in the course of and
32     pursuant to any investigation being conducted, or any
33     action being taken, by the Commissioner in respect of any
34     matter relating to the duties imposed upon, or the powers
35     vested in, the Commissioner under the provisions of this
36     Act or any rule promulgated in accordance with this Act.

 

 

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1         (e) To conduct hearings.
2     (7) Whenever, in the opinion of the Commissioner, any
3 director, officer, employee, or agent of a State bank or any
4 subsidiary or bank holding company of the bank or, after May
5 31, 1997, of any branch of an out-of-state bank or any
6 subsidiary or bank holding company of the bank shall have
7 violated any law, rule, or order relating to that bank or any
8 subsidiary or bank holding company of the bank, shall have
9 obstructed or impeded any examination or investigation by the
10 Commissioner, shall have engaged in an unsafe or unsound
11 practice in conducting the business of that bank or any
12 subsidiary or bank holding company of the bank, or shall have
13 violated any law or engaged or participated in any unsafe or
14 unsound practice in connection with any financial institution
15 or other business entity such that the character and fitness of
16 the director, officer, employee, or agent does not assure
17 reasonable promise of safe and sound operation of the State
18 bank, the Commissioner may issue an order of removal. If, in
19 the opinion of the Commissioner, any former director, officer,
20 employee, or agent of a State bank or any subsidiary or bank
21 holding company of the bank, prior to the termination of his or
22 her service with that bank or any subsidiary or bank holding
23 company of the bank, violated any law, rule, or order relating
24 to that State bank or any subsidiary or bank holding company of
25 the bank, obstructed or impeded any examination or
26 investigation by the Commissioner, engaged in an unsafe or
27 unsound practice in conducting the business of that bank or any
28 subsidiary or bank holding company of the bank, or violated any
29 law or engaged or participated in any unsafe or unsound
30 practice in connection with any financial institution or other
31 business entity such that the character and fitness of the
32 director, officer, employee, or agent would not have assured
33 reasonable promise of safe and sound operation of the State
34 bank, the Commissioner may issue an order prohibiting that
35 person from further service with a bank or any subsidiary or
36 bank holding company of the bank as a director, officer,

 

 

SB3036 - 45 - LRB093 18472 SAS 44186 b

1 employee, or agent. An order issued pursuant to this subsection
2 shall be served upon the director, officer, employee, or agent.
3 A copy of the order shall be sent to each director of the bank
4 affected by registered mail. The person affected by the action
5 may request a hearing before the State Banking Board within 10
6 days after receipt of the order. The hearing shall be held by
7 the Board within 30 days after the request has been received by
8 the Board. The Board shall make a determination approving,
9 modifying, or disapproving the order of the Commissioner as its
10 final administrative decision. If a hearing is held by the
11 Board, the Board shall make its determination within 60 days
12 from the conclusion of the hearing. Any person affected by a
13 decision of the Board under this subsection (7) of Section 48
14 of this Act may have the decision reviewed only under and in
15 accordance with the Administrative Review Law and the rules
16 adopted pursuant thereto. A copy of the order shall also be
17 served upon the bank of which he is a director, officer,
18 employee, or agent, whereupon he shall cease to be a director,
19 officer, employee, or agent of that bank. The Commissioner may
20 institute a civil action against the director, officer, or
21 agent of the State bank or, after May 31, 1997, of the branch
22 of the out-of-state bank against whom any order provided for by
23 this subsection (7) of this Section 48 has been issued, and
24 against the State bank or, after May 31, 1997, out-of-state
25 bank, to enforce compliance with or to enjoin any violation of
26 the terms of the order. Any person who has been the subject of
27 an order of removal or an order of prohibition issued by the
28 Commissioner under this subsection, Section 3.074(b) of the
29 Illinois Bank Holding Company Act of 1957, or Section 5-6 of
30 the Corporate Fiduciary Act may not thereafter serve as
31 director, officer, employee, or agent of any State bank or of
32 any branch of any out-of-state bank, or of any corporate
33 fiduciary, as defined in Section 1-5.05 of the Corporate
34 Fiduciary Act, or of any other entity that is subject to
35 licensure or regulation by the Commissioner or the Office of
36 Banks and Real Estate unless the Commissioner has granted prior

 

 

SB3036 - 46 - LRB093 18472 SAS 44186 b

1 approval in writing.
2     For purposes of this paragraph (7), "bank holding company"
3 has the meaning prescribed in Section 2 of the Illinois Bank
4 Holding Company Act of 1957.
5     (8) The Commissioner may impose civil penalties of up to
6 $100,000 $10,000 against any person for each violation of any
7 provision of this Act, any rule promulgated in accordance with
8 this Act, any order of the Commissioner, any condition imposed
9 by the Commissioner, or any other action which in the
10 Commissioner's discretion is an unsafe or unsound banking
11 practice.
12     (9) The Commissioner may impose civil penalties of up to
13 $100 against any person for the first failure to comply with
14 reporting requirements set forth in the report of examination
15 of the bank and up to $200 for the second and subsequent
16 failures to comply with those reporting requirements.
17     (10) All final administrative decisions of the
18 Commissioner hereunder shall be subject to judicial review
19 pursuant to the provisions of the Administrative Review Law.
20 For matters involving administrative review, venue shall be in
21 either Sangamon County or Cook County.
22     (11) The endowment fund for the Illinois Bank Examiners'
23 Education Foundation shall be administered as follows:
24         (a) (Blank).
25         (b) The Foundation is empowered to receive voluntary
26     contributions, gifts, grants, bequests, and donations on
27     behalf of the Illinois Bank Examiners' Education
28     Foundation from national banks and other persons for the
29     purpose of funding the endowment of the Illinois Bank
30     Examiners' Education Foundation.
31         (c) The aggregate of all special educational fees
32     collected by the Commissioner and property received by the
33     Commissioner on behalf of the Illinois Bank Examiners'
34     Education Foundation under this subsection (11) on or after
35     June 30, 1986, shall be either (i) promptly paid after
36     receipt of the same, accompanied by a detailed statement

 

 

SB3036 - 47 - LRB093 18472 SAS 44186 b

1     thereof, into the State Treasury and shall be set apart in
2     a special fund to be known as "The Illinois Bank Examiners'
3     Education Fund" to be invested by either the Treasurer of
4     the State of Illinois in the Public Treasurers' Investment
5     Pool or in any other investment he is authorized to make or
6     by the Illinois State Board of Investment as the board of
7     trustees of the Illinois Bank Examiners' Education
8     Foundation may direct or (ii) deposited into an account
9     maintained in a commercial bank or corporate fiduciary in
10     the name of the Illinois Bank Examiners' Education
11     Foundation pursuant to the order and direction of the Board
12     of Trustees of the Illinois Bank Examiners' Education
13     Foundation.
14     (12) (Blank).
15 (Source: P.A. 91-16, eff. 7-1-99; 92-20, eff. 7-1-01; 92-483,
16 eff. 8-23-01; 92-651, eff. 7-11-02.)
 
17     (205 ILCS 5/49)  (from Ch. 17, par. 361)
18     Sec. 49. False statements; penalty.
19     (a) It is unlawful for any officer, director, or employee
20 of any State bank or subsidiary or holding company of that bank
21 or, after May 31, 1997, branch out of an out-of-state bank
22 subject to examination by the Commissioner or any person filing
23 an application or notice or submitting information in
24 connection with an application or notice with the Commissioner
25 to willfully and knowingly subscribe to or make, or cause to be
26 made, any false statement or false entry with intent to deceive
27 any person or persons authorized to examine into the affairs of
28 the bank or the subsidiary or holding company of that bank, the
29 branch of an out-of-state bank, or the applicant or with intent
30 to deceive the Commissioner or his administrative officers in
31 the performance of their duties under this Act. A person who
32 violates this Section is guilty of a Class 3 felony.
33     (b) Any state bank or officer, director, or employee of any
34 state bank or, after May 31, 1997, branch of an out of state
35 bank subject to examination by the Commissioner who shall

 

 

SB3036 - 48 - LRB093 18472 SAS 44186 b

1 refuse access to information or documents requested by the
2 Commissioner pursuant to any investigation being conducted or
3 any action being taken by the Commissioner relating to the
4 duties imposed upon or the powers vested in the Commissioner
5 under the provisions of this Act or any rule promulgated in
6 accordance with this Act, may be subject to disciplinary action
7 pursuant to Section 48 of this Act.
8 (Source: P.A. 92-483, eff. 8-23-01.)
 
9     (205 ILCS 5/71)  (from Ch. 17, par. 383)
10     Sec. 71. Voluntary dissolution; Commissioner's fee. The
11 Commissioner shall be entitled to a fee, which shall be paid at
12 the time of deposit, on all money deposited with him for the
13 account of one dissolving bank. The Commissioner shall
14 establish this fee by rule. of two per cent of the first five
15 thousand dollars and one per cent of all sums in excess of five
16 thousand dollars.
17 (Source: Laws 1965, p. 2020.)
18     Section 15. The Illinois Bank Holding Company Act of 1957
19 is amended by changing Section 3.02 as follows:
 
20     (205 ILCS 10/3.02)  (from Ch. 17, par. 2505)
21     Sec. 3.02. Unlawful acts; exceptions.
22     (a) Except as otherwise provided in this Act, it shall be
23 unlawful:
24         (1) for any action to be taken that causes any company
25     to become a bank holding company as defined in this Act
26     with respect to any Illinois bank;
27         (2) for any action to be taken that causes an Illinois
28     bank to become a subsidiary of a bank holding company;
29         (3) for any bank holding company to acquire direct or
30     indirect ownership or control of any voting shares of an
31     Illinois bank that possesses a charter issued by the
32     Commissioner, unless the holding company complies with the
33     change in control requirements set forth in Section 18 of

 

 

SB3036 - 49 - LRB093 18472 SAS 44186 b

1     the Illinois Banking Act;
2         (4) for any bank holding company or subsidiary thereof
3     other than a bank, to acquire all or substantially all of
4     the assets of an Illinois bank;
5         (5) for any bank holding company owning or controlling,
6     as defined in this Act, an Illinois bank to merge or
7     consolidate with any other bank holding company;
8         (6) for any bank holding company that is not well
9     capitalized, as that term is defined in 12 C.F.R. 225.2(r),
10     as now or hereafter amended with a ratio of total capital
11     to total assets of less than 7%, as measured and applied in
12     accordance with regulations of the Board of Governors of
13     the Federal Reserve System in effect on the date of the
14     filing of the application with the Board of Governors of
15     the Federal Reserve System, to acquire direct or indirect
16     ownership or control by purchase of stock, merger,
17     consolidation, acquisition of assets or otherwise, of any
18     Illinois bank or banks if the application for such
19     acquisition is filed on or after July 1, 1986; provided
20     that the requirement total capital to total assets ratio
21     requirements of this paragraph (6) and of the succeeding
22     paragraph (7) that the bank holding company be well
23     capitalized shall be applicable only to a bank holding
24     company which is directly acquiring such direct or indirect
25     control of any Illinois bank or banks and shall not be
26     applicable to any bank holding company of which the
27     acquiring company is a subsidiary; or
28         (7) for any bank holding company that is well
29     capitalized, as that term is defined in 12 C.F.R. 225.2(r),
30     as now or hereafter amended, with a ratio of total capital
31     to total assets equal to or in excess of 7% to acquire
32     direct or indirect control by purchase of stock, merger,
33     consolidation, acquisition of assets or otherwise, of any
34     Illinois bank or banks where such acquisition would result
35     in the bank holding company no longer be will capitalized
36     in a reduction in such bank holding company's ratio of

 

 

SB3036 - 50 - LRB093 18472 SAS 44186 b

1     total capital to total assets to less than 7%, where such
2     ratios are measured and applied in accordance with
3     regulations of the Board of Governors of the Federal
4     Reserve System in effect on the date of the filing of the
5     application with the Board of Governors of the Federal
6     Reserve System if the application for such acquisition is
7     filed on or after July 1, 1986.
8
9     (b) Notwithstanding subsection (a) of this Section, a
10 transaction, occurrence or event which is described in
11 paragraphs (1), (2), (4), and (5) of subsection (a) of this
12 Section, and which does not result in a violation of Section
13 3.07 of this Act, shall not be unlawful if:
14         (1) approval of the transaction, occurrence or event by
15     the Board of Governors of the Federal Reserve System is not
16     required by the terms of the federal Bank Holding Company
17     Act; or
18         (2) the transaction, occurrence or event:
19             (A) has been approved by the Board of Governors of
20         the Federal Reserve System by an order, ruling or
21         regulation of that Board made under the federal Bank
22         Holding Company Act, including an assessment of the
23         applicant's record in meeting the convenience and
24         needs of the communities it serves in accordance with
25         the federal Community Reinvestment Act of 1977, and
26         that order, ruling or regulation remains in effect; and
27             (B) is carried out and occurs in compliance with
28         all conditions or restrictions, if any, contained in an
29         order, ruling or regulation of the Board of Governors
30         of the Federal Reserve System referred to in the
31         foregoing subparagraph (A).
32 (Source: P.A. 88-546; 89-567, eff. 7-26-96.)
33     Section 20. The Pawnbroker Regulation Act is amended by
34 changing Sections 0.05 and 5 and by adding Sections 1.8 and 9.5
35 as follows:
 

 

 

SB3036 - 51 - LRB093 18472 SAS 44186 b

1     (205 ILCS 510/0.05)
2     Sec. 0.05. Administration of Act.
3     (a) This Act shall be administered by the Commissioner of
4 Banks and Real Estate who shall have all of the following
5 powers and duties in administering this Act:
6         (1) To promulgate reasonable rules for the purpose of
7     administering the provisions of this Act.
8         (2) To issue orders for the purpose of administering
9     the provisions of this Act and any rule promulgated in
10     accordance with this Act.
11         (3) To appoint hearing officers and to hire employees
12     or to contract with appropriate persons to execute any of
13     the powers granted to the Commissioner under this Section
14     for the purpose of administering this Act and any rule
15     promulgated in accordance with this Act.
16         (4) To subpoena witnesses, to compel their attendance,
17     to administer an oath, to examine any person under oath,
18     and to require the production of any relevant books,
19     papers, accounts, and documents in the course of and
20     pursuant to any investigation being conducted, or any
21     action being taken, by the Commissioner in respect of any
22     matter relating to the duties imposed upon, or the powers
23     vested in, the Commissioner under the provisions of this
24     Act or any rule promulgated in accordance with this Act.
25         (5) To conduct hearings.
26         (6) To impose civil penalties graduated up to $1,000
27     against any person for each violation of any provision of
28     this Act, any rule promulgated in accordance with this Act,
29     or any order of the Commissioner based upon the seriousness
30     of the violation.
31         (6.5) To initiate, through the Attorney General,
32     injunction proceedings whenever it appears to the
33     Commissioner that any person, whether licensed under this
34     Act or not, is engaged or about to engage in an act or
35     practice that constitutes or will constitute a violation of

 

 

SB3036 - 52 - LRB093 18472 SAS 44186 b

1     this Act or any rule prescribed under the authority of this
2     Act. The Commissioner may, in his or her discretion,
3     through the Attorney General, apply for an injunction, and
4     upon a proper showing, any circuit court may enter a
5     permanent or preliminary injunction or a temporary
6     restraining order without bond to enforce this Act in
7     addition to the penalties and other remedies provided for
8     in this Act.
9         (7) To issue a cease and desist order and, for
10     violations of this Act, any order issued by the
11     Commissioner pursuant to this Act, any rule promulgated in
12     accordance with this Act, or any other applicable law in
13     connection with the operation of a pawnshop, to suspend a
14     license issued under this Act for up to 30 days.
15         (8) To determine compliance with applicable law and
16     rules related to the operation of pawnshops and to verify
17     the accuracy of reports filed with the Commissioner, the
18     Commissioner, not more than one time every 2 years, may,
19     but is not required to, conduct a routine examination of a
20     pawnshop, and in addition, the Commissioner may examine the
21     affairs of any pawnshop at any time if the Commissioner has
22     reasonable cause to believe that unlawful or fraudulent
23     activity is occurring, or has occurred, therein.
24         (9) In response to a complaint, to address any
25     inquiries to any pawnshop in relation to its affairs, and
26     it shall be the duty of the pawnshop to promptly reply in
27     writing to such inquiries. The Commissioner may also
28     require reports or information from any pawnshop at any
29     time the Commissioner may deem desirable.
30         (10) To revoke a license issued under this Act if the
31     Commissioner determines that (a) a licensee has been
32     convicted of a felony in connection with the operations of
33     a pawnshop; (b) a licensee knowingly, recklessly, or
34     continuously violated this Act, a rule promulgated in
35     accordance with this Act, or any order of the Commissioner;
36     (c) a fact or condition exists that, if it had existed or

 

 

SB3036 - 53 - LRB093 18472 SAS 44186 b

1     had been known at the time of the original application,
2     would have justified license refusal; or (d) the licensee
3     knowingly submits materially false or misleading documents
4     with the intent to deceive the Commissioner or any other
5     party; or (e) a licensee has been the subject of an Order
6     of Removal or Order of Prohibition issued by the
7     Commissioner pursuant to subsection (a)(12) of this
8     Section, Section 48(7) of the Illinois Banking Act, Section
9     3.074(b) of the Illinois Bank Holding Company Act of 1957,
10     or Section 5-6 of the Corporate Fiduciary Act and the Order
11     is a final administrative decision under the
12     Administrative Review Law.
13         (11) Following license revocation, to take possession
14     and control of a pawnshop for the purpose of examination,
15     reorganization, or liquidation through receivership and to
16     appoint a receiver, which may be the Commissioner, a
17     pawnshop, or another suitable person.
18         (12) To issue an order of removal, whenever in the
19     opinion of the Commissioner, any director, officer, owner,
20     employee or agent of a pawnshop has violated any law, rule,
21     or order relating to the pawnshop or has violated any law
22     in connection with any other business entity such that the
23     character and fitness of the director, officer, owner,
24     employee, or agent does not assure reasonable promise of
25     operation of the pawnshop in a lawful and fair manner. If,
26     in the opinion of the Commissioner, any former director,
27     officer, owner, employee, or agent of a pawnshop, prior to
28     the termination of his or her service with the pawnshop,
29     violated any law, rule, or order relating to the pawnshop
30     or violated any law in connection with any other business
31     such that the director, officer, owner, employee, or agent
32     would not have assured reasonable promise of operation of
33     the pawnshop in a lawful and fair manner, the Commissioner
34     may issue an order prohibiting that person from further
35     service with a pawnshop as a director, officer, owner,
36     employee, or agent. An order issued pursuant to this

 

 

SB3036 - 54 - LRB093 18472 SAS 44186 b

1     Section shall be served upon the director, officer, owner,
2     employee, or agent. An Order of Removal shall also be sent
3     to the pawnshop by personal service, certified mail return
4     receipt requested, or any other method that provides proof
5     of service and receipt. The person affected by the action
6     may request a hearing within 10 days after receipt of the
7     order of removal or prohibition. The hearing shall be held
8     within 30 days after receipt of a request for a hearing in
9     accordance with Part 392 of Title 38 of the Illinois
10     Administrative Code. After concluding the hearing, a
11     hearing officer shall make a recommendation approving,
12     modifying, or disapproving the order of the Commissioner.
13     The Commissioner shall then issue a written determination
14     including the conclusions of law and the findings of fact
15     upon which the determination was made. A copy of the order
16     shall be served upon the pawnshop of which the person is a
17     director, officer, owner, employee, or agent, whereupon
18     the person shall cease to be a director, officer, employee,
19     or agent of the pawnshop or to conduct any business in
20     connection with the pawnshop. Any person who has been
21     removed or prohibited by an order of the Commissioner under
22     this Section may not thereafter serve as director, officer,
23     employee, or agent of any pawnshop or of any other entity
24     that is subject to licensure or regulation by the
25     Commissioner or the Office of Banks and Real Estate unless
26     the Commissioner has granted prior approval in writing. The
27     Commissioner may institute a civil action against the
28     director, officer, owner, employee, or agent subject to an
29     order issued under this Section and against the pawnshop to
30     enforce compliance with or to enjoin any violation of the
31     terms of the order.
32     (b) After consultation with local law enforcement
33 officers, the Attorney General, and the industry, the
34 Commissioner may by rule require that pawnbrokers operate video
35 camera surveillance systems to record photographic
36 representations of customers and retain the tapes produced for

 

 

SB3036 - 55 - LRB093 18472 SAS 44186 b

1 up to 30 days.
2     (c) Pursuant to rule, the Commissioner shall issue licenses
3 on an annual or multi-year basis for operating a pawnshop. Any
4 person currently operating or who has operated a pawnshop in
5 this State during the 2 years preceding the effective date of
6 this amendatory Act of 1997 shall be issued a license upon
7 payment of the fee required under this Act. New applicants
8 shall meet standards for a license as established by the
9 Commissioner. Except with the prior written consent of the
10 Commissioner, no individual, either a new applicant or a person
11 currently operating a pawnshop, may be issued a license to
12 operate a pawnshop if the individual has been convicted of a
13 felony or of any criminal offense relating to dishonesty or
14 breach of trust in connection with the operations of a
15 pawnshop. In addition, no new applicant may be issued a license
16 to operate a pawnshop if the individual has been the subject of
17 an Order of Removal or Order of Prohibition issued by the
18 Commissioner pursuant to subsection (a)(12) of this Section,
19 Section 48(7) of the Illinois Banking Act, Section 3.074(b) of
20 the Illinois Bank Holding Company Act of 1957, or Section 5-6
21 of the Corporate Fiduciary Act after the Order becomes a final
22 administrative decision under the Administrative Review Law
23 unless the applicant receives the prior written approval of the
24 Commissioner. The Commissioner shall establish license fees.
25 The fees shall not exceed the amount reasonably required for
26 administration of this Act. It shall be unlawful to operate a
27 pawnshop without a license issued by the Commissioner.
28     (d) In addition to license fees, the Commissioner may, by
29 rule, establish fees in connection with a review, approval, or
30 provision of a service, and levy a reasonable charge to recover
31 the cost of the review, approval, or service (such as a change
32 in control, change in location, or renewal of a license). The
33 Commissioner may also levy a reasonable charge to recover the
34 cost of an examination if the Commissioner determines that
35 unlawful or fraudulent activity has occurred. The Commissioner
36 may require payment of the fees and charges provided in this

 

 

SB3036 - 56 - LRB093 18472 SAS 44186 b

1 Act by certified check, money order, an electronic transfer of
2 funds, or an automatic debit of an account.
3     (e) The Pawnbroker Regulation Fund is established as a
4 special fund in the State treasury. Moneys collected under this
5 Act shall be deposited into the Fund and used for the
6 administration of this Act. In the event that General Revenue
7 Funds are appropriated to the Office of the Commissioner of
8 Banks and Real Estate for the initial implementation of this
9 Act, the Governor may direct the repayment from the Pawnbroker
10 Regulation Fund to the General Revenue Fund of such advance in
11 an amount not to exceed $30,000. The Governor may direct this
12 interfund transfer at such time as he deems appropriate by
13 giving appropriate written notice.
14     (f) The Commissioner may, by rule, require all pawnshops to
15 provide for the expenses that would arise from the
16 administration of the receivership of a pawnshop under this Act
17 through the assessment of fees, the requirement to pledge
18 surety bonds, or such other methods as determined by the
19 Commissioner.
20     (g) All final administrative decisions of the Commissioner
21 under this Act shall be subject to judicial review pursuant to
22 the provisions of the Administrative Review Law. For matters
23 involving administrative review, venue shall be in either
24 Sangamon County or Cook County.
25 (Source: P.A. 92-215, eff. 8-2-01.)
 
26     (205 ILCS 510/1.8 new)
27     Sec. 1.8. Employment of persons convicted of a felony or a
28 breach of trust related to the operation of a pawnshop. Except
29 with the prior written consent of the Commissioner, no pawnshop
30 shall employ an individual who has been convicted of a felony
31 or of any criminal offense relating to dishonesty or breach of
32 trust in connection with the operations of a pawnshop.
 
33     (205 ILCS 510/5)  (from Ch. 17, par. 4655)
34     Sec. 5. Record requirements.

 

 

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1     (a) Except in municipalities located in counties having
2 3,000,000 or more inhabitants, every pawn and loan broker shall
3 keep a standard record book that has been approved by the
4 sheriff of the county in which the pawnbroker does business. In
5 municipalities in counties with 3,000,000 or more inhabitants,
6 the record book shall be approved by the police department of
7 the municipality in which the pawn or loan broker does
8 business. At the time of each and every loan or taking of a
9 pledge, an accurate account and description, in the English
10 language, of all the goods, articles and other things pawned or
11 pledged, the amount of money, value or thing loaned thereon,
12 the time of pledging the same, the rate of interest to be paid
13 on such loan, and the name and residence of the person making
14 such pawn or pledge shall be printed, typed, or written in ink
15 in the record book. Such entry shall include the serial number
16 or identification number of items received which bear such
17 number. Except for items purchased from dealers possessing a
18 federal employer employee identification number who have
19 provided a receipt to the pawnbroker, every pawnbroker shall
20 also record in his book, an accurate account and description,
21 in the English language, of all goods, articles and other
22 things purchased or received for the purpose of resale or loan
23 collateral by the pawnbroker from any source, not in the course
24 of a pledge or loan, the time of such purchase or receipt and
25 the name and address of the person or business which sold or
26 delivered such goods, articles, or other things to the
27 pawnbroker. No entry in such book shall be erased, mutilated or
28 changed.
29     (b) Every pawnbroker shall require identification to be
30 shown him by each person pledging or pawning any goods,
31 articles or other things to the pawnbroker. If the
32 identification shown is a driver's license or a State
33 identification card issued by the Secretary of State and
34 contains a photograph of the person being identified, only one
35 form of identification must be shown. If the identification
36 shown is not a driver's license or a State identification card

 

 

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1 issued by the Secretary of State and does not contain a
2 photograph, 2 forms of identification must be shown, and one of
3 the 2 forms of identification must include his or her residence
4 address. These forms of identification shall include, but not
5 be limited to, any of the following: driver's license, social
6 security card, utility bill, employee or student
7 identification card, credit card, or a civic, union or
8 professional association membership card. In addition, in a
9 municipality with a population of 1,000,000 or more
10 inhabitants, if the customer does not have an identification
11 issued by a governmental entity containing a photograph of the
12 person being identified, the pawnbroker shall photograph the
13 customer in color and record the customer's name, residence
14 address, date of birth, social security number, gender, height,
15 and weight on the reverse side of the photograph. If the
16 customer has no social security number, the pawnbroker shall
17 record this fact.
18     A county or municipality, including a home rule unit, may
19 regulate a pawnbroker's identification requirements for
20 persons pledging or pawning goods, articles, or other things to
21 the pawnbroker in a manner that is not less restrictive than
22 the regulation by the State of a pawnbroker's identification
23 requirements for persons pledging or pawning goods, articles,
24 or other things. A home rule unit may not regulate a
25 pawnbroker's identification requirements for persons pledging
26 or pawning goods, articles, or other things to the pawnbroker
27 in a manner less restrictive than the regulation by the State
28 of a pawnbroker's identification requirements for persons
29 pledging or pawning goods, articles, or other things. This
30 Section is a limitation under subsection (i) of Section 6 of
31 Article VII of the Illinois Constitution on the concurrent
32 exercise by home rule units of the powers and functions
33 exercised by the State.
34     (c) A pawnbroker may maintain the records required by
35 subsection (a) in computer form if the computer form has been
36 approved by the Commissioner, the sheriff of the county in

 

 

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1 which the shop is located, and the police department of the
2 municipality in which the shop is located.
3     (d) Records, including reports to the Commissioner,
4 maintained by pawnbrokers shall be confidential, and no
5 disclosure of pawnbroker records shall be made except
6 disclosures authorized by this Act or ordered by a court of
7 competent jurisdiction. No record transferred to a
8 governmental official shall be improperly disclosed, provided
9 that use of those records as evidence of a felony or
10 misdemeanor shall be a proper purpose.
11     (e) Pawnbrokers and their associations may lawfully give
12 appropriate governmental agencies computer equipment for the
13 purpose of transferring information pursuant to this Act.
14 (Source: P.A. 91-608, eff. 8-19-99; 92-215, eff. 8-2-01.)
 
15     (205 ILCS 510/9.5 new)
16     Sec. 9.5. Redemption of goods after license revocation,
17 suspension, or denial.
18     (a) After revocation of a license and if the Commissioner
19 has not taken possession and control of the pawnshop pursuant
20 to Section 0.05, a pawnbroker shall maintain usual business
21 hours at the pawnshop for not less than 30 days after the
22 latest default date of any pawn transaction made at that
23 pawnshop for the sole purpose of allowing a pledgor to redeem
24 pledged goods.
25     (b) After suspension of a license, a pawnbroker shall
26 maintain usual business hours at the pawnshop during the
27 suspension for the sole purpose of allowing a pledgor to redeem
28 goods or to renew a pawn transaction that matures during the
29 suspension.
30     (c) After the denial of a license renewal application, a
31 pawnbroker shall maintain usual business hours at the pawnshop
32 for not less than 30 days after the latest default date of any
33 pawn transaction made at that pawnshop for the sole purpose of
34 allowing a pledgor to redeem pledged goods.
35     (d) The Commissioner may exercise any authority conferred

 

 

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1 on the Commissioner to protect the interest of a pledgor of
2 goods in the possession of a pawnbroker whose license has been
3 revoked or suspended, or whose license renewal application has
4 been denied, including the assessment of a civil money penalty
5 and all other penalties and remedies provided for in this Act.
6     Section 25. The Corporate Fiduciary Act is amended by
7 changing Sections 5-1 and 5-9 as follows:
 
8     (205 ILCS 620/5-1)  (from Ch. 17, par. 1555-1)
9     Sec. 5-1. Commissioner's powers. The Commissioner of Banks
10 and Real Estate shall have the following powers and authority
11 and is charged with the duties and responsibilities designated
12 in this Act:
13     (a) To promulgate, in accordance with the Illinois
14 Administrative Procedure Act, reasonable rules for the purpose
15 of administering the provisions of this Act and for the purpose
16 of incorporating by reference rules promulgated by the Federal
17 Deposit Insurance Corporation, the Board of Governors of the
18 Federal Reserve System, the Office of the Comptroller of the
19 Currency, the Office of Thrift Supervision, or their successors
20 that pertain to corporate fiduciaries, including, but not
21 limited to, standards for the operation and conduct of the
22 affairs of corporate fiduciaries;
23     (b) To issue orders for the purpose of administering the
24 provisions of this Act and any rule promulgated in accordance
25 with this Act;
26     (c) To appoint hearing officers to conduct hearings held
27 pursuant to any of the powers granted to the Commissioner under
28 this Section for the purpose of administering this Act and any
29 rule promulgated in accordance with this Act;
30     (d) To subpoena witnesses, to compel their attendance, to
31 administer an oath, to examine any person under oath and to
32 require the production of any relevant books, papers, accounts
33 and documents in the course of and pursuant to any
34 investigation being conducted, or any action being taken, by

 

 

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1 the Commissioner in respect of any matter relating to the
2 duties imposed upon, or the powers vested in, the Commissioner
3 under the provisions of this Act, or any rule or regulation
4 promulgated in accordance with this Act;
5     (e) To conduct hearings;
6     (f) To promulgate the form and content of any applications
7 required under this Act;
8     (g) To impose civil penalties of up to $100,000 $10,000
9 against any person or corporate fiduciary for each violation of
10 any provision of this Act, any rule promulgated in accordance
11 with this Act, any order of the Commissioner or any other
12 action which, in the Commissioner's discretion, is a detriment
13 or impediment to accepting or executing trusts; and
14     (h) To address any inquiries to any corporate fiduciary, or
15 the officers thereof, in relation to its doings and conditions,
16 or any other matter connected with its affairs, and it shall be
17 the duty of any corporate fiduciary or person so addressed, to
18 promptly reply in writing to such inquiries. The Commissioner
19 may also require reports from any corporate fiduciary at any
20 time he may deem desirable.
21 (Source: P.A. 89-364, eff. 8-18-95; 89-508, eff. 7-3-96.)
 
22     (205 ILCS 620/5-9)  (from Ch. 17, par. 1555-9)
23     Sec. 5-9. Statement of condition.
24     (a) Each corporate fiduciary shall file with the
25 Commissioner, when requested, a statement under oath, of the
26 condition of such corporate fiduciary as of the date requested.
27 The statement of condition shall be in such form and contain
28 such statements, returns and information, as to the affairs,
29 business conditions, and resources of the corporate fiduciary
30 or of its trust department, as the case may be, as the said
31 Commissioner may, from time to time prescribe or require.
32     (b) Such statement of condition shall be verified by the
33 affidavit of the president, vice president or principal
34 accounting officer of said corporate fiduciary, who shall also
35 state in such affidavit that he has examined the books and

 

 

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1 accounts of said corporate fiduciary or of its trust
2 department, as the case may be for the purpose of making said
3 report or statement, and that the information contained in the
4 statement or report is accurate to the best of his knowledge
5 and belief. If the statement is submitted in electronic form,
6 the Commissioner may, in the call for the report, specify the
7 manner in which the appropriate officer of the corporate
8 fiduciary shall verify the statement of condition.
9     (c) (Blank). The corporate fiduciary shall cause a proper
10 abstract of the statements of assets and liabilities reported
11 under sub-section (a) of this Section to be published once in a
12 newspaper of general circulation, circulated in the city, town
13 or village where the corporate fiduciary is located. Such
14 publication shall be paid for by said corporate fiduciary which
15 shall cause to be provided to the Commissioner a certificate of
16 publication from the publishing newspaper in such form as the
17 Commissioner shall require. When the corporate fiduciary is a
18 State bank, qualified under this Act, the statements published
19 in compliance with the Illinois Banking Act may be accepted by
20 the Commissioner in compliance with the publication
21 requirements of this Section although an annual statement of
22 condition may still be required.
23     (d) Any corporate fiduciary which fails to file an accurate
24 statement of condition on or before the date it is due, to
25 publish the report if required to be published, or which fails
26 to provide evidence of such publication may be fined $100 for
27 each day of noncompliance.
28     (e) Any corporate fiduciary which is the victim of a
29 robbery or experiences a shortage of funds in excess of
30 $10,000, an apparent misapplication of the corporate
31 fiduciary's funds by an officer, employee, director, or agent,
32 a charge-off of assets of the corporate fiduciary, or any
33 adverse legal action in an amount in excess of 10% of total
34 capital and surplus of the corporate fiduciary, including but
35 not limited to, the entry of an adverse money judgment against
36 the corporate fiduciary shall report that information in

 

 

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1 writing to the Commissioner within 7 days. Neither the
2 corporate fiduciary, its directors, officers, employees or
3 agents, in the preparation or filing of the reports required by
4 this subsection, shall be subject to any liability for libel,
5 slander or other charges resulting from information supplied in
6 such reports, except when the supplying of such information is
7 done in a corrupt or malicious manner or otherwise not in good
8 faith.
9 (Source: P.A. 89-364, eff. 8-18-95.)
10     (205 ILCS 5/9.5 rep.)
11     Section 30. The Illinois Banking Act is amended by
12 repealing Section 9.5.
13     Section 99. Effective date. This Act takes effect upon
14 becoming law.