99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
SB2432

 

Introduced 2/9/2016, by Sen. Pamela J. Althoff

 

SYNOPSIS AS INTRODUCED:
 
See Index

    Amends the Illinois Banking Act. Replaces provisions regarding application for a certificate of authority for an out-of-state bank to merge with a State bank with language that provides that a State bank may merge with and into an out-of-state bank, provided the out-of-state bank causes notice to be filed with the Secretary of Financial and Professional Regulation not less than 60 days before the proposed effective date of the merger. Makes conforming changes. Amends the Savings Bank Act. Makes changes in provisions concerning parity, out-of-state savings banks establishing branches in this State, examinations, the Savings Bank Regulatory Fund, regulatory fees, orders of the Secretary, and administrative review. Repeals provisions of the Savings Bank Act concerning hearings, records of proceedings, and subpoenas and depositions. Amends the Electronic Fund Transfer Act. Requires that a person who establishes or owns specified cash-dispensing terminals must post a telephone number on the terminal for consumers to call to report problems, along with the telephone number of the Department of Financial and Professional Regulation. Amends the Corporate Fiduciary Act. Makes changes concerning the office locations of corporate fiduciaries. Amends the Foreign Bank Representative Office Act. Makes changes concerning the definition of "foreign bank". Repeals provisions of the Check Printer and Check Number Act concerning registration of persons other than financial institutions who sell or distribute checks. Repeals provisions of the High Risk Home Loan Act regarding annual reports on default and foreclosure rates on conventional loans. Effective immediately.


LRB099 18381 SMS 42756 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB2432LRB099 18381 SMS 42756 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Banking Act is amended by changing
5Sections 21.1, 21.4, and 48 as follows:
 
6    (205 ILCS 5/21.1)
7    Sec. 21.1. Resulting out-of-state bank Application for
8certificate of authority.
9    (a) A On or after June 1, 1997, an out-of-state bank may
10merge with a State bank may merge with and into an out-of-state
11bank, provided the out-of-state bank causes notice to be filed
12with the Secretary after executing and filing not less than 60
13days before the proposed effective date of the merger. The
14out-of-state bank must provide to the Secretary a copy of the
15approval of the merger by the out-of-state bank's chartering
16authority. an application therefor with the Commissioner and
17after also filing with the Commissioner a copy of its charter,
18articles of association or articles of incorporation, and all
19amendments thereto, duly authenticated by the proper officer of
20the state wherein it is chartered or incorporated and the last
21quarterly statement of condition filed by the out-of-state bank
22with the appropriate federal banking regulator. The
23Commissioner shall specify the form of the application which

 

 

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1shall set forth, to the extent applicable, the same information
2required in an application by a foreign corporation pursuant to
3Section 13.15 of the Business Corporation Act of 1983. Subject
4to Sections 21.2 and 21.3 of this Act, receipt by the
5Commissioner of a copy of an application filed with and
6approved by the out-of-state bank's chartering authority
7authorizing the out-of-state bank to merge with a State bank
8shall satisfy the filing requirements of this subsection (a).
9    When the provisions of this Section have been complied
10with, the Commissioner shall issue a certificate of authority
11to merge. If the merger is not consummated within one year, the
12Commissioner may cancel the certificate of authority.
13    (b) An out-of-state bank that is the resulting bank in a
14merger with a State bank may, after the merger, establish and
15maintain a branch or branches in Illinois at the locations
16where the State bank had its main office and branches
17immediately before the merger.
18    (c) An out-of-state bank that establishes and maintains a
19branch or branches in Illinois pursuant to subsection (b) of
20this Section may, after the merger, establish and maintain
21additional branches in this State to the same extent as a State
22bank.
23    (d) A branch of an out-of-state bank may not conduct any
24activity that is not authorized for a State bank.
25    (e) (Blank). An out-of-state bank shall provide written
26notice to the Commissioner of its intent to establish an

 

 

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1additional branch or branches in this State within 30 days
2after approval of the appropriate federal banking agency to
3establish the branch or branches. The notice form shall be
4specified by the Commissioner and may include any of the
5information required for a similar notice by a State bank.
6Receipt by the Commissioner of notice of the out-of-state
7bank's intent to establish such additional branch or branches
8in this State from the out-of-state bank's chartering authority
9shall satisfy the requirements of this subsection (e).
10(Source: P.A. 89-208, eff. 9-29-95; 90-665, eff. 7-30-98.)
 
11    (205 ILCS 5/21.4)
12    Sec. 21.4. Out-of-state banks establishing branches.
13    (a) An No out-of-state bank or a and no national bank whose
14main banking premises is located in a state other than Illinois
15may shall establish a branch in this State to the same extent
16and subject to the same requirements, limitations, and
17conditions that a State bank may be permitted to establish a
18new branch in this State. , other than a branch authorized
19pursuant to Section 21.1 of this Act, unless:
20        (1) the laws of the state in which such out-of-state
21    bank or national bank has its main banking premises permit
22    such out-of-state bank or national bank to establish a
23    branch in this State;
24        (2) such out-of-state bank or national bank has its
25    main banking premises in a state that permits a State bank

 

 

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1    to establish a branch in that state pursuant to terms and
2    conditions that are deemed to be reciprocal with the
3    provisions of this Act; and
4        (3) such out-of-state bank obtains a certificate of
5    authority from, or provides notice to, the Commissioner as
6    provided in subsection (b) of this Section.
7    (b) (Blank). Before such out-of-state bank may establish a
8branch in this State, the out-of-state bank must obtain a
9certificate of authority from the Commissioner. The
10out-of-state bank must file an application for a certificate of
11authority on a form prescribed by the Commissioner.
12    The application for a certificate of authority shall not be
13required if the state in which the out-of-state bank is
14chartered permits a state bank to establish a branch in that
15state without filing an application. An out-of-state bank
16chartered in such a state may establish a branch in this State
17pursuant to this Section after providing the Commissioner with
18written notice. The Commissioner may prescribe the form of such
19notice and may accept a copy of a notice or application
20provided by the out-of-state bank to its chartering authority
21or to its appropriate federal banking agency.
22    (c) (Blank). The determination of whether the laws of the
23state in which such out-of-state bank or national bank has its
24main banking premises are reciprocal with the provisions of
25this Act shall be made in writing by the Commissioner. The
26Commissioner shall not make a finding of reciprocity unless the

 

 

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1Commissioner determines that the laws of the other state permit
2a State bank to establish a branch in such other state under
3terms and conditions that are substantially similar to the
4provisions of this Section. The Commissioner shall consider, at
5a minimum, whether the laws of such other state discriminate in
6any way against a State bank and whether the laws of such other
7state impose administrative or regulatory burdens that are
8substantially more restrictive than those imposed by this Act
9on an out-of-state bank or national bank seeking to establish a
10branch in this State.
11    (d) (Blank). After such out-of-state bank or national bank
12lawfully establishes a branch in this State pursuant to the
13provisions of this Section, such out-of-state bank or national
14bank may establish and maintain additional branches in this
15State to the same extent as a State bank. An out-of-state bank
16shall provide written notice to the Commissioner of its intent
17to establish an additional branch or branches in this State
18within 30 days after receiving approval from the appropriate
19federal banking agency to establish the branch or branches. The
20form of the notice shall be specified by the Commissioner.
21    (e) A branch of an out-of-state bank may not conduct any
22activity that is not authorized for a State bank.
23(Source: P.A. 93-965, eff. 8-20-04.)
 
24    (205 ILCS 5/48)
25    Sec. 48. Secretary's powers; duties. The Secretary shall

 

 

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1have the powers and authority, and is charged with the duties
2and responsibilities designated in this Act, and a State bank
3shall not be subject to any other visitorial power other than
4as authorized by this Act, except those vested in the courts,
5or upon prior consultation with the Secretary, a foreign bank
6regulator with an appropriate supervisory interest in the
7parent or affiliate of a state bank. In the performance of the
8Secretary's duties:
9        (1) The Commissioner shall call for statements from all
10    State banks as provided in Section 47 at least one time
11    during each calendar quarter.
12        (2) (a) The Commissioner, as often as the Commissioner
13    shall deem necessary or proper, and no less frequently than
14    18 months following the preceding examination, shall
15    appoint a suitable person or persons to make an examination
16    of the affairs of every State bank, except that for every
17    eligible State bank, as defined by regulation, the
18    Commissioner in lieu of the examination may accept on an
19    alternating basis the examination made by the eligible
20    State bank's appropriate federal banking agency pursuant
21    to Section 111 of the Federal Deposit Insurance Corporation
22    Improvement Act of 1991, provided the appropriate federal
23    banking agency has made such an examination. A person so
24    appointed shall not be a stockholder or officer or employee
25    of any bank which that person may be directed to examine,
26    and shall have powers to make a thorough examination into

 

 

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1    all the affairs of the bank and in so doing to examine any
2    of the officers or agents or employees thereof on oath and
3    shall make a full and detailed report of the condition of
4    the bank to the Commissioner. In making the examination the
5    examiners shall include an examination of the affairs of
6    all the affiliates of the bank, as defined in subsection
7    (b) of Section 35.2 of this Act, or subsidiaries of the
8    bank as shall be necessary to disclose fully the conditions
9    of the subsidiaries or affiliates, the relations between
10    the bank and the subsidiaries or affiliates and the effect
11    of those relations upon the affairs of the bank, and in
12    connection therewith shall have power to examine any of the
13    officers, directors, agents, or employees of the
14    subsidiaries or affiliates on oath. After May 31, 1997, the
15    Commissioner may enter into cooperative agreements with
16    state regulatory authorities of other states to provide for
17    examination of State bank branches in those states, and the
18    Commissioner may accept reports of examinations of State
19    bank branches from those state regulatory authorities.
20    These cooperative agreements may set forth the manner in
21    which the other state regulatory authorities may be
22    compensated for examinations prepared for and submitted to
23    the Commissioner.
24        (b) After May 31, 1997, the Commissioner is authorized
25    to examine, as often as the Commissioner shall deem
26    necessary or proper, branches of out-of-state banks. The

 

 

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1    Commissioner may establish and may assess fees to be paid
2    to the Commissioner for examinations under this subsection
3    (b). The fees shall be borne by the out-of-state bank,
4    unless the fees are borne by the state regulatory authority
5    that chartered the out-of-state bank, as determined by a
6    cooperative agreement between the Commissioner and the
7    state regulatory authority that chartered the out-of-state
8    bank.
9        (2.1) Pursuant to paragraph (a) of subsection (6) of
10    this Section, the Secretary shall adopt rules that ensure
11    consistency and due process in the examination process. The
12    Secretary may also establish guidelines that (i) define the
13    scope of the examination process and (ii) clarify
14    examination items to be resolved. The rules, formal
15    guidance, interpretive letters, or opinions furnished to
16    State banks by the Secretary may be relied upon by the
17    State banks.
18        (2.5) Whenever any State bank, any subsidiary or
19    affiliate of a State bank, or after May 31, 1997, any
20    branch of an out-of-state bank causes to be performed, by
21    contract or otherwise, any bank services for itself,
22    whether on or off its premises:
23            (a) that performance shall be subject to
24        examination by the Commissioner to the same extent as
25        if services were being performed by the bank or, after
26        May 31, 1997, branch of the out-of-state bank itself on

 

 

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1        its own premises; and
2            (b) the bank or, after May 31, 1997, branch of the
3        out-of-state bank shall notify the Commissioner of the
4        existence of a service relationship. The notification
5        shall be submitted with the first statement of
6        condition (as required by Section 47 of this Act) due
7        after the making of the service contract or the
8        performance of the service, whichever occurs first.
9        The Commissioner shall be notified of each subsequent
10        contract in the same manner.
11        For purposes of this subsection (2.5), the term "bank
12    services" means services such as sorting and posting of
13    checks and deposits, computation and posting of interest
14    and other credits and charges, preparation and mailing of
15    checks, statements, notices, and similar items, or any
16    other clerical, bookkeeping, accounting, statistical, or
17    similar functions performed for a State bank, including but
18    not limited to electronic data processing related to those
19    bank services.
20        (3) The expense of administering this Act, including
21    the expense of the examinations of State banks as provided
22    in this Act, shall to the extent of the amounts resulting
23    from the fees provided for in Section 48.05 of this Act and
24    paragraphs (a), (a-1), (a-2), (a-3), and (b) of this
25    subsection (3) be assessed against and borne by the State
26    banks:

 

 

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1            (a) Each bank shall pay to the Secretary a Call
2        Report Fee which shall be paid in quarterly
3        installments equal to one-fourth of the sum of the
4        annual fixed fee of $800, plus a variable fee based on
5        the assets shown on the quarterly statement of
6        condition delivered to the Secretary in accordance
7        with Section 47 for the preceding quarter according to
8        the following schedule: 16¢ per $1,000 of the first
9        $5,000,000 of total assets, 15¢ per $1,000 of the next
10        $20,000,000 of total assets, 13¢ per $1,000 of the next
11        $75,000,000 of total assets, 9¢ per $1,000 of the next
12        $400,000,000 of total assets, 7¢ per $1,000 of the next
13        $500,000,000 of total assets, and 5¢ per $1,000 of all
14        assets in excess of $1,000,000,000, of the State bank.
15        The Call Report Fee shall be calculated by the
16        Secretary and billed to the banks for remittance at the
17        time of the quarterly statements of condition provided
18        for in Section 47. The Secretary may require payment of
19        the fees provided in this Section by an electronic
20        transfer of funds or an automatic debit of an account
21        of each of the State banks. In case more than one
22        examination of any bank is deemed by the Secretary to
23        be necessary in any examination frequency cycle
24        specified in subsection 2(a) of this Section, and is
25        performed at his direction, the Secretary may assess a
26        reasonable additional fee to recover the cost of the

 

 

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1        additional examination; provided, however, that an
2        examination conducted at the request of the State
3        Treasurer pursuant to the Uniform Disposition of
4        Unclaimed Property Act shall not be deemed to be an
5        additional examination under this Section. In lieu of
6        the method and amounts set forth in this paragraph (a)
7        for the calculation of the Call Report Fee, the
8        Secretary may specify by rule that the Call Report Fees
9        provided by this Section may be assessed semiannually
10        or some other period and may provide in the rule the
11        formula to be used for calculating and assessing the
12        periodic Call Report Fees to be paid by State banks.
13            (a-1) If in the opinion of the Commissioner an
14        emergency exists or appears likely, the Commissioner
15        may assign an examiner or examiners to monitor the
16        affairs of a State bank with whatever frequency he
17        deems appropriate, including but not limited to a daily
18        basis. The reasonable and necessary expenses of the
19        Commissioner during the period of the monitoring shall
20        be borne by the subject bank. The Commissioner shall
21        furnish the State bank a statement of time and expenses
22        if requested to do so within 30 days of the conclusion
23        of the monitoring period.
24            (a-2) On and after January 1, 1990, the reasonable
25        and necessary expenses of the Commissioner during
26        examination of the performance of electronic data

 

 

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1        processing services under subsection (2.5) shall be
2        borne by the banks for which the services are provided.
3        An amount, based upon a fee structure prescribed by the
4        Commissioner, shall be paid by the banks or, after May
5        31, 1997, branches of out-of-state banks receiving the
6        electronic data processing services along with the
7        Call Report Fee assessed under paragraph (a) of this
8        subsection (3).
9            (a-3) After May 31, 1997, the reasonable and
10        necessary expenses of the Commissioner during
11        examination of the performance of electronic data
12        processing services under subsection (2.5) at or on
13        behalf of branches of out-of-state banks shall be borne
14        by the out-of-state banks, unless those expenses are
15        borne by the state regulatory authorities that
16        chartered the out-of-state banks, as determined by
17        cooperative agreements between the Commissioner and
18        the state regulatory authorities that chartered the
19        out-of-state banks.
20            (b) "Fiscal year" for purposes of this Section 48
21        is defined as a period beginning July 1 of any year and
22        ending June 30 of the next year. The Commissioner shall
23        receive for each fiscal year, commencing with the
24        fiscal year ending June 30, 1987, a contingent fee
25        equal to the lesser of the aggregate of the fees paid
26        by all State banks under paragraph (a) of subsection

 

 

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1        (3) for that year, or the amount, if any, whereby the
2        aggregate of the administration expenses, as defined
3        in paragraph (c), for that fiscal year exceeds the sum
4        of the aggregate of the fees payable by all State banks
5        for that year under paragraph (a) of subsection (3),
6        plus any amounts transferred into the Bank and Trust
7        Company Fund from the State Pensions Fund for that
8        year, plus all other amounts collected by the
9        Commissioner for that year under any other provision of
10        this Act, plus the aggregate of all fees collected for
11        that year by the Commissioner under the Corporate
12        Fiduciary Act, excluding the receivership fees
13        provided for in Section 5-10 of the Corporate Fiduciary
14        Act, and the Foreign Banking Office Act. The aggregate
15        amount of the contingent fee thus arrived at for any
16        fiscal year shall be apportioned amongst, assessed
17        upon, and paid by the State banks and foreign banking
18        corporations, respectively, in the same proportion
19        that the fee of each under paragraph (a) of subsection
20        (3), respectively, for that year bears to the aggregate
21        for that year of the fees collected under paragraph (a)
22        of subsection (3). The aggregate amount of the
23        contingent fee, and the portion thereof to be assessed
24        upon each State bank and foreign banking corporation,
25        respectively, shall be determined by the Commissioner
26        and shall be paid by each, respectively, within 120

 

 

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1        days of the close of the period for which the
2        contingent fee is computed and is payable, and the
3        Commissioner shall give 20 days advance notice of the
4        amount of the contingent fee payable by the State bank
5        and of the date fixed by the Commissioner for payment
6        of the fee.
7            (c) The "administration expenses" for any fiscal
8        year shall mean the ordinary and contingent expenses
9        for that year incident to making the examinations
10        provided for by, and for otherwise administering, this
11        Act, the Corporate Fiduciary Act, excluding the
12        expenses paid from the Corporate Fiduciary
13        Receivership account in the Bank and Trust Company
14        Fund, the Foreign Banking Office Act, the Electronic
15        Fund Transfer Act, and the Illinois Bank Examiners'
16        Education Foundation Act, including all salaries and
17        other compensation paid for personal services rendered
18        for the State by officers or employees of the State,
19        including the Commissioner and the Deputy
20        Commissioners, communication equipment and services,
21        office furnishings, surety bond premiums, and travel
22        expenses of those officers and employees, employees,
23        expenditures or charges for the acquisition,
24        enlargement or improvement of, or for the use of, any
25        office space, building, or structure, or expenditures
26        for the maintenance thereof or for furnishing heat,

 

 

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1        light, or power with respect thereto, all to the extent
2        that those expenditures are directly incidental to
3        such examinations or administration. The Commissioner
4        shall not be required by paragraphs (c) or (d-1) of
5        this subsection (3) to maintain in any fiscal year's
6        budget appropriated reserves for accrued vacation and
7        accrued sick leave that is required to be paid to
8        employees of the Commissioner upon termination of
9        their service with the Commissioner in an amount that
10        is more than is reasonably anticipated to be necessary
11        for any anticipated turnover in employees, whether due
12        to normal attrition or due to layoffs, terminations, or
13        resignations.
14            (d) The aggregate of all fees collected by the
15        Secretary under this Act, the Corporate Fiduciary Act,
16        or the Foreign Banking Office Act on and after July 1,
17        1979, shall be paid promptly after receipt of the same,
18        accompanied by a detailed statement thereof, into the
19        State treasury and shall be set apart in a special fund
20        to be known as the "Bank and Trust Company Fund",
21        except as provided in paragraph (c) of subsection (11)
22        of this Section. All earnings received from
23        investments of funds in the Bank and Trust Company Fund
24        shall be deposited in the Bank and Trust Company Fund
25        and may be used for the same purposes as fees deposited
26        in that Fund. The amount from time to time deposited

 

 

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1        into the Bank and Trust Company Fund shall be used: (i)
2        to offset the ordinary administrative expenses of the
3        Secretary as defined in this Section or (ii) as a
4        credit against fees under paragraph (d-1) of this
5        subsection (3). Nothing in this amendatory Act of 1979
6        shall prevent continuing the practice of paying
7        expenses involving salaries, retirement, social
8        security, and State-paid insurance premiums of State
9        officers by appropriations from the General Revenue
10        Fund. However, the General Revenue Fund shall be
11        reimbursed for those payments made on and after July 1,
12        1979, by an annual transfer of funds from the Bank and
13        Trust Company Fund. Moneys in the Bank and Trust
14        Company Fund may be transferred to the Professions
15        Indirect Cost Fund, as authorized under Section
16        2105-300 of the Department of Professional Regulation
17        Law of the Civil Administrative Code of Illinois.
18            Notwithstanding provisions in the State Finance
19        Act, as now or hereafter amended, or any other law to
20        the contrary, the sum of $18,788,847 shall be
21        transferred from the Bank and Trust Company Fund to the
22        Financial Institutions Settlement of 2008 Fund on the
23        effective date of this amendatory Act of the 95th
24        General Assembly, or as soon thereafter as practical.
25            Notwithstanding provisions in the State Finance
26        Act, as now or hereafter amended, or any other law to

 

 

SB2432- 17 -LRB099 18381 SMS 42756 b

1        the contrary, the Governor may, during any fiscal year
2        through January 10, 2011, from time to time direct the
3        State Treasurer and Comptroller to transfer a
4        specified sum not exceeding 10% of the revenues to be
5        deposited into the Bank and Trust Company Fund during
6        that fiscal year from that Fund to the General Revenue
7        Fund in order to help defray the State's operating
8        costs for the fiscal year. Notwithstanding provisions
9        in the State Finance Act, as now or hereafter amended,
10        or any other law to the contrary, the total sum
11        transferred during any fiscal year through January 10,
12        2011, from the Bank and Trust Company Fund to the
13        General Revenue Fund pursuant to this provision shall
14        not exceed during any fiscal year 10% of the revenues
15        to be deposited into the Bank and Trust Company Fund
16        during that fiscal year. The State Treasurer and
17        Comptroller shall transfer the amounts designated
18        under this Section as soon as may be practicable after
19        receiving the direction to transfer from the Governor.
20            (d-1) Adequate funds shall be available in the Bank
21        and Trust Company Fund to permit the timely payment of
22        administration expenses. In each fiscal year the total
23        administration expenses shall be deducted from the
24        total fees collected by the Commissioner and the
25        remainder transferred into the Cash Flow Reserve
26        Account, unless the balance of the Cash Flow Reserve

 

 

SB2432- 18 -LRB099 18381 SMS 42756 b

1        Account prior to the transfer equals or exceeds
2        one-fourth of the total initial appropriations from
3        the Bank and Trust Company Fund for the subsequent
4        year, in which case the remainder shall be credited to
5        State banks and foreign banking corporations and
6        applied against their fees for the subsequent year. The
7        amount credited to each State bank and foreign banking
8        corporation shall be in the same proportion as the Call
9        Report Fees paid by each for the year bear to the total
10        Call Report Fees collected for the year. If, after a
11        transfer to the Cash Flow Reserve Account is made or if
12        no remainder is available for transfer, the balance of
13        the Cash Flow Reserve Account is less than one-fourth
14        of the total initial appropriations for the subsequent
15        year and the amount transferred is less than 5% of the
16        total Call Report Fees for the year, additional amounts
17        needed to make the transfer equal to 5% of the total
18        Call Report Fees for the year shall be apportioned
19        amongst, assessed upon, and paid by the State banks and
20        foreign banking corporations in the same proportion
21        that the Call Report Fees of each, respectively, for
22        the year bear to the total Call Report Fees collected
23        for the year. The additional amounts assessed shall be
24        transferred into the Cash Flow Reserve Account. For
25        purposes of this paragraph (d-1), the calculation of
26        the fees collected by the Commissioner shall exclude

 

 

SB2432- 19 -LRB099 18381 SMS 42756 b

1        the receivership fees provided for in Section 5-10 of
2        the Corporate Fiduciary Act.
3            (e) The Commissioner may upon request certify to
4        any public record in his keeping and shall have
5        authority to levy a reasonable charge for issuing
6        certifications of any public record in his keeping.
7            (f) In addition to fees authorized elsewhere in
8        this Act, the Commissioner may, in connection with a
9        review, approval, or provision of a service, levy a
10        reasonable charge to recover the cost of the review,
11        approval, or service.
12        (4) Nothing contained in this Act shall be construed to
13    limit the obligation relative to examinations and reports
14    of any State bank, deposits in which are to any extent
15    insured by the United States or any agency thereof, nor to
16    limit in any way the powers of the Commissioner with
17    reference to examinations and reports of that bank.
18        (5) The nature and condition of the assets in or
19    investment of any bonus, pension, or profit sharing plan
20    for officers or employees of every State bank or, after May
21    31, 1997, branch of an out-of-state bank shall be deemed to
22    be included in the affairs of that State bank or branch of
23    an out-of-state bank subject to examination by the
24    Commissioner under the provisions of subsection (2) of this
25    Section, and if the Commissioner shall find from an
26    examination that the condition of or operation of the

 

 

SB2432- 20 -LRB099 18381 SMS 42756 b

1    investments or assets of the plan is unlawful, fraudulent,
2    or unsafe, or that any trustee has abused his trust, the
3    Commissioner shall, if the situation so found by the
4    Commissioner shall not be corrected to his satisfaction
5    within 60 days after the Commissioner has given notice to
6    the board of directors of the State bank or out-of-state
7    bank of his findings, report the facts to the Attorney
8    General who shall thereupon institute proceedings against
9    the State bank or out-of-state bank, the board of directors
10    thereof, or the trustees under such plan as the nature of
11    the case may require.
12        (6) The Commissioner shall have the power:
13            (a) To promulgate reasonable rules for the purpose
14        of administering the provisions of this Act.
15            (a-5) To impose conditions on any approval issued
16        by the Commissioner if he determines that the
17        conditions are necessary or appropriate. These
18        conditions shall be imposed in writing and shall
19        continue in effect for the period prescribed by the
20        Commissioner.
21            (b) To issue orders against any person, if the
22        Commissioner has reasonable cause to believe that an
23        unsafe or unsound banking practice has occurred, is
24        occurring, or is about to occur, if any person has
25        violated, is violating, or is about to violate any law,
26        rule, or written agreement with the Commissioner, or

 

 

SB2432- 21 -LRB099 18381 SMS 42756 b

1        for the purpose of administering the provisions of this
2        Act and any rule promulgated in accordance with this
3        Act.
4            (b-1) To enter into agreements with a bank
5        establishing a program to correct the condition of the
6        bank or its practices.
7            (c) To appoint hearing officers to execute any of
8        the powers granted to the Commissioner under this
9        Section for the purpose of administering this Act and
10        any rule promulgated in accordance with this Act and
11        otherwise to authorize, in writing, an officer or
12        employee of the Office of Banks and Real Estate to
13        exercise his powers under this Act.
14            (d) To subpoena witnesses, to compel their
15        attendance, to administer an oath, to examine any
16        person under oath, and to require the production of any
17        relevant books, papers, accounts, and documents in the
18        course of and pursuant to any investigation being
19        conducted, or any action being taken, by the
20        Commissioner in respect of any matter relating to the
21        duties imposed upon, or the powers vested in, the
22        Commissioner under the provisions of this Act or any
23        rule promulgated in accordance with this Act.
24            (e) To conduct hearings.
25        (7) Whenever, in the opinion of the Secretary, any
26    director, officer, employee, or agent of a State bank or

 

 

SB2432- 22 -LRB099 18381 SMS 42756 b

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

 

 

SB2432- 23 -LRB099 18381 SMS 42756 b

1    bank, or violated any law or engaged or participated in any
2    unsafe or unsound practice in connection with any financial
3    institution or other business entity such that the
4    character and fitness of the director, officer, employee,
5    or agent would not have assured reasonable promise of safe
6    and sound operation of the State bank, the Secretary may
7    issue an order prohibiting that person from further service
8    with a bank or any subsidiary or bank holding company of
9    the bank as a director, officer, employee, or agent. An
10    order issued pursuant to this subsection shall be served
11    upon the director, officer, employee, or agent. A copy of
12    the order shall be sent to each director of the bank
13    affected by registered mail. A copy of the order shall also
14    be served upon the bank of which he is a director, officer,
15    employee, or agent, whereupon he shall cease to be a
16    director, officer, employee, or agent of that bank. The
17    Secretary may institute a civil action against the
18    director, officer, or agent of the State bank or, after May
19    31, 1997, of the branch of the out-of-state bank against
20    whom any order provided for by this subsection (7) of this
21    Section 48 has been issued, and against the State bank or,
22    after May 31, 1997, out-of-state bank, to enforce
23    compliance with or to enjoin any violation of the terms of
24    the order. Any person who has been the subject of an order
25    of removal or an order of prohibition issued by the
26    Secretary under this subsection or Section 5-6 of the

 

 

SB2432- 24 -LRB099 18381 SMS 42756 b

1    Corporate Fiduciary Act may not thereafter serve as
2    director, officer, employee, or agent of any State bank or
3    of any branch of any out-of-state bank, or of any corporate
4    fiduciary, as defined in Section 1-5.05 of the Corporate
5    Fiduciary Act, or of any other entity that is subject to
6    licensure or regulation by the Division of Banking unless
7    the Secretary has granted prior approval in writing.
8        For purposes of this paragraph (7), "bank holding
9    company" has the meaning prescribed in Section 2 of the
10    Illinois Bank Holding Company Act of 1957.
11        (8) The Commissioner may impose civil penalties of up
12    to $100,000 against any person for each violation of any
13    provision of this Act, any rule promulgated in accordance
14    with this Act, any order of the Commissioner, or any other
15    action which in the Commissioner's discretion is an unsafe
16    or unsound banking practice.
17        (9) The Commissioner may impose civil penalties of up
18    to $100 against any person for the first failure to comply
19    with reporting requirements set forth in the report of
20    examination of the bank and up to $200 for the second and
21    subsequent failures to comply with those reporting
22    requirements.
23        (10) All final administrative decisions of the
24    Commissioner hereunder shall be subject to judicial review
25    pursuant to the provisions of the Administrative Review
26    Law. For matters involving administrative review, venue

 

 

SB2432- 25 -LRB099 18381 SMS 42756 b

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

 

 

SB2432- 26 -LRB099 18381 SMS 42756 b

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

 

 

SB2432- 27 -LRB099 18381 SMS 42756 b

1    payments into the Non-insured Institutions Receivership
2    account. The Secretary may establish by rule a reasonable
3    manner of assessing fees under this subsection (14).
4(Source: P.A. 98-784, eff. 7-24-14; 99-39, eff. 1-1-16.)
 
5    Section 10. The Savings Bank Act is amended by changing
6Sections 1006, 1006.05, 9002.1, 9002.5, 9004, 9009, 9013, and
79018 as follows:
 
8    (205 ILCS 205/1006)  (from Ch. 17, par. 7301-6)
9    Sec. 1006. Parity.
10    (a) Subject to the regulation of the Secretary Commissioner
11and in addition to the powers granted by this Act, each savings
12bank operating under this Act shall possess those powers
13granted by regulation promulgated under the Federal Deposit
14Insurance Act for state savings banks.
15    (b) Subject to Section 1006.10 of this Act and to the
16regulation of the Secretary, a A savings bank may establish or
17acquire branch offices at any location in Illinois or in any
18other state, territory, or jurisdiction of the United States or
19any foreign country upon notice to the Secretary and upon
20meeting the requirements of federal law and the applicable law
21of any other state, territory, or jurisdiction of the United
22States or any foreign country. branches or offices at which
23savings or investments are regularly received or loans approved
24as follows:

 

 

SB2432- 28 -LRB099 18381 SMS 42756 b

1        (1) to the extent branch powers and offices are granted
2    to State banks under the Illinois Banking Act;
3        (2) within the geographic area defined in Article 2 of
4    this Act and subject to the provisions of Article 2 of this
5    Act;
6        (3) within the same geographic areas or states as those
7    states from which a holding company is permitted to acquire
8    an Illinois savings bank or an Illinois savings bank
9    holding company;
10        (4) to the same extent that holding companies and
11    savings and loan associations headquartered outside the
12    State of Illinois are allowed to operate in Illinois by
13    virtue of Articles 1A and 2B of the Illinois Savings and
14    Loan Act of 1985;
15        (5) as the result of mergers, consolidations, or bulk
16    sales of facilities in the case of relocations; and
17        (6) to the extent an out-of-state savings bank has its
18    main banking premises in a state that is reciprocal with
19    Illinois and would be eligible to establish a branch
20    pursuant to Section 1006.05 of this Act.
21    (c) (Blank). The Commissioner may adopt regulations that
22provide for the establishment of branches as defined by the
23Commissioner.
24    (d) (Blank). Notwithstanding any other provision of this
25Act, a savings bank that purchases or assumes all or any part
26of the assets or liabilities of a bank, savings bank, or

 

 

SB2432- 29 -LRB099 18381 SMS 42756 b

1savings and loan association or merges or consolidates with a
2bank, savings bank, or savings and loan association may retain
3and maintain the main premises or branches of the former bank,
4savings bank, or savings and loan association as branches of
5the purchasing, merging, or consolidating savings bank,
6provided it assumes the deposit liabilities of the bank,
7savings bank, or savings and loan association maintained at the
8main premises or branches.
9    (e) A savings bank has any power reasonably incident,
10convenient, or useful to the accomplishment of the powers
11conferred upon the savings bank by this Act.
12(Source: P.A. 93-965, eff. 8-20-04.)
 
13    (205 ILCS 205/1006.05)
14    Sec. 1006.05. Out-of-state savings banks establishing
15branches.
16    An (a) No out-of-state savings bank whose main banking
17premises are is located in a state other than Illinois may
18shall establish a branch in this State to the same extent and
19subject to the same requirements, limitations, and conditions
20that a savings bank may be permitted to establish a new branch
21in this State. , other than a branch authorized pursuant to any
22other provision of this Act, unless:
23        (1) the laws of the state in which such out-of-state
24    savings bank has its main banking premises permit the
25    out-of-state savings bank to establish a branch in this

 

 

SB2432- 30 -LRB099 18381 SMS 42756 b

1    State;
2        (2) the out-of-state savings bank has its main banking
3    premises in a state that permits an Illinois State savings
4    bank to establish a branch in that state pursuant to terms
5    and conditions that are deemed to be reciprocal with the
6    provisions of this Act; and
7        (3) the out-of-state savings bank obtains a
8    certificate of authority from, or provides notice to, the
9    Commissioner as provided in subsection (b) of this Section.
10    (b) Before the out-of-state savings bank may establish a
11branch in this State, the out-of-state savings bank must obtain
12a certificate of authority from the Commissioner. The
13out-of-state savings bank must file an application for a
14certificate of authority on a form prescribed by the
15Commissioner.
16    The application for a certificate of authority shall not be
17required if the state in which the out-of-state savings bank is
18chartered permits an Illinois State savings bank to establish a
19branch in that state without filing an application. An
20out-of-state savings bank chartered in such a state may
21establish a branch in this State pursuant to this Section after
22providing the Commissioner with written notice. The
23Commissioner may prescribe the form of such notice and may
24accept a copy of a notice or application provided by the
25out-of-state savings bank to its chartering authority.
26    (c) The determination of whether the laws of the state in

 

 

SB2432- 31 -LRB099 18381 SMS 42756 b

1which the out-of-state savings bank has its main banking
2premises are reciprocal with the provisions of this Act shall
3be made in writing by the Commissioner. The Commissioner shall
4not make a finding of reciprocity unless the Commissioner
5determines that the laws of the other state permit an Illinois
6State savings bank to establish a branch in the other state
7under terms and conditions that are substantially similar to
8the provisions of this Section. The Commissioner shall
9consider, at a minimum, whether the laws of the other state
10discriminate in any way against an Illinois State savings bank
11and whether the laws of the other state impose administrative
12or regulatory burdens that are substantially more restrictive
13than those imposed by this Act on an out-of-state savings bank
14seeking to establish a branch in this State.
15    (d) After the out-of-state savings bank lawfully
16establishes a branch in this State pursuant to the provisions
17of this Section, the out-of-state savings bank may establish
18and maintain additional branches in this State to the same
19extent as an Illinois State savings bank. An out-of-state
20savings bank shall provide written notice to the Commissioner
21of its intent to establish an additional branch or additional
22branches in this State within 30 days after receiving approval
23from its chartering authority or other appropriate regulatory
24agency to establish the branch or branches. The form of the
25notice shall be specified by the Commissioner.
26    (e) A branch of an out-of-state savings bank may not

 

 

SB2432- 32 -LRB099 18381 SMS 42756 b

1conduct any activity that is not authorized for an Illinois
2State savings bank.
3(Source: P.A. 93-965, eff. 8-20-04.)
 
4    (205 ILCS 205/9002.1)
5    Sec. 9002.1. Savings Bank Regulatory Fund.
6    (a) The aggregate of all moneys collected by the Secretary
7under this Act shall be paid promptly after receipt of the
8same, accompanied by a detailed statement thereof, into the
9State treasury and shall be set apart in the Savings Bank
10Regulatory Fund. All earnings received from investments of
11funds in the Savings Bank Regulatory Fund shall be deposited
12into the Savings Bank Regulatory Fund and may be used for the
13same purposes as fees deposited into the Savings Bank
14Regulatory Fund. The amount from time to time deposited into
15the Fund shall be used (i) to offset the ordinary
16administration expenses as defined in subsection (c) of this
17Section or (ii) as a credit against fees under subsection (b)
18of this Section. Nothing in this Section shall prevent
19continuing the practice of paying expenses involving salaries,
20retirement, Social Security, and State paid insurance premiums
21of State officers by appropriation from the General Revenue
22Fund. However, the General Revenue Fund shall be reimbursed for
23those payments made by an annual transfer of funds from the
24Savings Bank Regulatory Fund. Money in the Savings Bank
25Regulatory Fund may be transferred to the Professions Indirect

 

 

SB2432- 33 -LRB099 18381 SMS 42756 b

1Cost Fund as authorized under Section 2105-300 of the
2Department of Professional Regulation Law of the Civil
3Administrative Code of Illinois.
4    (b) Adequate funds shall be available in the Savings Bank
5Regulatory Fund to permit the timely payment of administration
6expenses. In each fiscal year, the total administration
7expenses shall be deducted from the total fees collected by the
8Secretary and the remainder transferred into the Cash Flow
9Reserve Account, unless the balance of the Cash Flow Reserve
10Account prior to the transfer equals or exceeds one-fourth of
11the total initial appropriations from the Savings Bank
12Regulatory Fund for the subsequent year, in which case the
13remainder shall be credited to savings banks and applied
14against their fees for the subsequent year. The amount credited
15to each savings bank shall be in the same proportion as the
16regulatory fees paid by each for the year bear to the total
17regulatory fees collected for the year. If, after a transfer to
18the Cash Flow Reserve Account is made or if no remainder is
19available for transfer, the balance of the Cash Flow Reserve
20Account is less than one-fourth of the total initial
21appropriations for the subsequent year and the amount
22transferred is less than 5% of the total regulatory fees for
23the year, additional amounts needed to make the transfer equal
24to 5% of the total regulatory fees for the year shall be
25apportioned amongst, assessed upon, and paid by savings banks
26in the same proportion that the regulatory fees of each,

 

 

SB2432- 34 -LRB099 18381 SMS 42756 b

1respectively, for the year bear to the total regulatory fees
2collected for the year. The additional amounts assessed shall
3be transferred into the Cash Flow Reserve Account.
4    (c) For purposes of this Section, the following terms shall
5have the following meanings:
6    "Administration expenses", for any fiscal year, means the
7ordinary and contingent expenses for that year incident to
8making the examinations provided for by, and for otherwise
9administering, this Act, including all salaries and other
10compensation paid for personal services rendered for the State
11by officers or employees of the State, including the Secretary
12and the Director of the Division, communication equipment and
13services, office furnishings, surety bond premiums, and travel
14expenses of those officers and employees, expenditures or
15charges for the acquisition, enlargement or improvement of, or
16for the use of, any office space, building, or structure, or
17expenditures for the maintenance thereof or for furnishing
18heat, light, or power with respect thereto, all to the extent
19that those expenditures are directly incidental to such
20examinations or administration. The Secretary shall not be
21required by this subsection to maintain in any fiscal year's
22budget appropriated reserves for accrued vacation and accrued
23sick leave that is required to be paid to employees of the
24Secretary upon termination of their service with the Secretary
25in an amount that is more than is reasonably anticipated to be
26necessary for any anticipated turnover in employees, whether

 

 

SB2432- 35 -LRB099 18381 SMS 42756 b

1due to normal attrition or due to layoffs, terminations, or
2resignations.
3    "Regulatory fees" includes both fees collected under
4Section 9002.5 and fees collected for examinations conducted by
5the Secretary or his examiners or designees under authority of
6this Act.
7    "Fiscal year" means a period beginning July 1 of any year
8and ending June 30 of the next year.
9(Source: P.A. 98-1081, eff. 1-1-15.)
 
10    (205 ILCS 205/9002.5)
11    Sec. 9002.5. Regulatory fees.
12    (a) For the fiscal year beginning July 1, 2007 and every
13year thereafter, each savings bank and each service corporation
14operating under this Act shall pay in quarterly installments
15equal to one-fourth of a fixed fee of $520, plus a regulatory
16variable fee based on the total assets of the savings bank or
17service corporation, as shown in the quarterly report of
18condition, at the following rates:
19        19.295 cents per $1,000 of the first $5,000,000 of
20    total assets;
21        18.16 cents per $1,000 of the next $20,000,000 of total
22    assets;
23        15.89 cents per $1,000 of the next $75,000,000 of total
24    assets;
25        10.7825 cents per $1,000 of the next $400,000,000 of

 

 

SB2432- 36 -LRB099 18381 SMS 42756 b

1    total assets;
2        8.5125 cents per $1,000 of the next $500,000,000 of
3    total assets;
4        6.2425 cents per $1,000 of the next $19,000,000,000 of
5    total assets;
6        2.27 cents per $1,000 of the next $30,000,000,000 of
7    total assets;
8        1.135 cents per $1,000 of the next $50,000,000,000 of
9    total assets; and
10        0.5675 cents per $1,000 of all assets in excess of
11    $100,000,000,000 of the savings bank.
12        24.97¢ per $1,000 of the first $2,000,000 of total
13    assets;
14        22.70¢ per $1,000 of the next $3,000,000 of total
15    assets;
16        20.43¢ per $1,000 of the next $5,000,000 of total
17    assets;
18        17.025¢ per $1,000 of the next $15,000,000 of total
19    assets;
20        14.755¢ per $1,000 of the next $25,000,000 of total
21    assets;
22        12.485¢ per $1,000 of the next $50,000,000 of total
23    assets;
24        10.215¢ per $1,000 of the next $400,000,000 of total
25    assets;
26        6.81¢ per $1,000 of the next $500,000,000 of total

 

 

SB2432- 37 -LRB099 18381 SMS 42756 b

1    assets; and
2        4.54¢ per $1,000 of all total assets in excess of
3    $1,000,000,000 of such savings bank or service
4    corporation.
5    As used in this Section, "quarterly report of condition"
6means the Report of Condition and Income (Call Report), which
7the Secretary requires.
8    (b) (Blank).
9    (c) (Blank). The Secretary shall receive and there shall be
10paid to the Secretary by each savings bank and each service
11corporation a fee of $520 for each approved branch office or
12facility office established under the Illinois Administrative
13Code. The determination of the fees shall be made annually as
14of the close of business of the prior calendar year ended
15December 31.
16    (d) The Secretary shall receive for each fiscal year,
17commencing with the fiscal year ending June 30, 2014, a
18contingent fee equal to the lesser of the aggregate of the fees
19paid by all savings banks under subsection subsections (a),
20(b), and (c) of this Section for that year, or the amount, if
21any, whereby the aggregate of the administration expenses, as
22defined in subsection (c) of Section 9002.1 of this Act, for
23that fiscal year exceeds the sum of the aggregate of the fees
24payable by all savings banks for that year under subsection
25subsections (a), (b), and (c) of this Section, plus any amounts
26transferred into the Savings Bank Regulatory Fund from the

 

 

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1State Pensions Fund for that year, plus all other amounts
2collected by the Secretary for that year under any other
3provision of this Act. The aggregate amount of the contingent
4fee thus arrived at for any fiscal year shall be apportioned
5amongst, assessed upon, and paid by the savings banks,
6respectively, in the same proportion that the fee of each under
7subsection subsections (a), (b), and (c) of this Section,
8respectively, for that year bears to the aggregate for that
9year of the fees collected under subsection subsections (a),
10(b), and (c) of this Section. The aggregate amount of the
11contingent fee, and the portion thereof to be assessed upon
12each savings bank, respectively, shall be determined by the
13Secretary and shall be paid by each, respectively, within 120
14days of the close of the period for which the contingent fee is
15computed and is payable, and the Secretary shall give 20 days
16advance notice of the amount of the contingent fee payable by
17the savings bank and of the date fixed by the Secretary for
18payment of the fee.
19(Source: P.A. 98-1081, eff. 1-1-15; 99-39, eff. 1-1-16.)
 
20    (205 ILCS 205/9004)  (from Ch. 17, par. 7309-4)
21    Sec. 9004. Examination.
22    (a) At least once every 18 months or more often if it is
23deemed necessary or expedient, the Secretary shall examine the
24books, records, operations, and affairs of each savings bank
25operating under this Act. In the course of the examination, the

 

 

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1Secretary may also examine in the same manner all entities,
2companies, and individuals which or whom the Secretary
3determines may have a relationship with the savings bank or any
4subsidiary or entity affiliated with it, if the relationship
5may adversely affect the affairs, activities, and safety and
6soundness of the savings bank, including: (i) companies
7controlled by the savings bank; (ii) entities, including
8companies controlled by the company, individual, or
9individuals that control the savings bank; and (iii) the
10company or other entity which controls or owns the savings
11bank. Notwithstanding any other provision of this Act, every
12savings bank, as defined by rule, or, if not defined, to the
13same extent as would be permitted in the case of a State bank,
14the Secretary, in lieu of the examination, may accept on an
15alternating basis the examination made by the eligible savings
16bank's appropriate federal banking agency pursuant to Section
17111 of the Federal Deposit Insurance Corporation Improvement
18Act of 1991, provided the appropriate federal banking agency
19has made an examination.
20    (b) The Secretary shall examine to determine:
21        (1) Quality of financial condition, including safety
22    and soundness and investment and loan quality.
23        (2) Compliance with this Act and other applicable
24    statutes and regulations.
25        (3) Quality of management policies.
26        (4) Overall safety and soundness of the savings bank,

 

 

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1    its parent, subsidiaries, and affiliates.
2        (5) Remedial actions required to correct and to restore
3    compliance with applicable statutes, regulations, and
4    proper business policies.
5    (c) The Secretary may promulgate regulations to implement
6and administer this Section.
7    (d) If a savings bank, its holding company, or any of its
8corporate subsidiaries has not been audited at least once in
9the 12 months prior to the Secretary's examination, the
10Secretary may cause an audit of the savings bank's books and
11records to be made by an independent licensed public
12accountant. The cost of the audit shall be paid for by the
13entity being audited.
14    (e) The Secretary or his or her examiners or other formally
15designated agents are authorized to administer oaths and to
16examine and to take and preserve testimony under oath as to
17anything in the affairs or ownership of any savings bank or
18institution or affiliate thereof.
19    (f) Pursuant to subsection (c) of this Section, the
20Secretary shall adopt rules that ensure consistency and due
21process in the examination process. The Secretary may also
22establish guidelines that (i) define the scope of the
23examination process and (ii) clarify examination items to be
24resolved. The rules, formal guidance, interpretive letters, or
25opinions furnished to savings banks by the Secretary may be
26relied upon by the savings banks.

 

 

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1    (g) In case more than one examination of any savings bank
2is deemed by the Secretary to be necessary in any examination
3frequency cycle specified in subsection (a) of this Section and
4is performed at the Secretary's direction, the Secretary may
5assess a reasonable additional fee to recover the cost of the
6additional examination; provided, however, that an examination
7conducted at the request of the State Treasurer pursuant to the
8Uniform Disposition of Unclaimed Property Act shall not be
9deemed to be an additional examination under this Section.
10    (h) If, in the opinion of the Secretary, an emergency
11exists or appears likely, the Secretary may assign an examiner
12or examiners to monitor the affairs of a savings bank with
13whatever frequency he deems appropriate, including, but not
14limited to, a daily basis. The reasonable and necessary
15expenses of the Secretary during the period of the monitoring
16shall be borne by the savings bank. The Secretary shall furnish
17the savings bank a statement of time and expenses if requested
18to do so within 30 days of the conclusion of the monitoring
19period.
20(Source: P.A. 97-492, eff. 1-1-12; 98-784, eff. 7-24-14.)
 
21    (205 ILCS 205/9009)  (from Ch. 17, par. 7309-9)
22    Sec. 9009. Orders of the Commissioner.
23    (a) If the affairs of the savings bank, savings bank
24subsidiary or affiliate, or savings bank holding company are
25not being conducted in accordance with this Act, the

 

 

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1Commissioner shall require the directors, officers, and
2employees to take any necessary corrective action. If the
3necessary corrective action is not taken, the Commissioner may
4issue a formal order to the directors of the savings bank,
5subsidiary, affiliate, or holding company, to be delivered
6either personally or by registered or certified mail,
7specifying a date, which may be immediate or may be a later
8date, for the performance of the corrective action by the
9savings bank, subsidiary, affiliate, or holding company. The
10order or any part thereof shall be subject to Section 11006 of
11this Act.
12    (b) If the formal order of the Commissioner, in whole or in
13part, contains a finding that the business of the savings bank
14or holding company is being conducted in a fraudulent, illegal,
15unsafe, or unsound manner or that the violation thereof or the
16continuance by the savings bank or holding company of the
17practice to be corrected could cause insolvency, substantial
18dissipation of assets or earnings, or the impairment of its
19capital, the order or part thereof shall be complied with
20immediately on or before the effective date thereof until
21modified or withdrawn by the Commissioner or modified or
22terminated by a circuit court. The Commissioner may apply to
23the circuit court of the county in which the savings bank or
24holding company is located for enforcement of an order
25requiring prompt compliance.
26    (c) If the order, or part thereof, is not subject to

 

 

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1subsection (b) and if no hearing under pursuant to Section 9018
2of this Act has been requested, the Commissioner may, at any
3time within 90 days after the effective date of the order,
4institute suit in the circuit court of Sangamon County or the
5circuit court of the county in which the savings bank or
6holding company is located to compel the directors, officers,
7or employees to take the required corrective action. The court,
8after due process of law, shall adjudicate the question, enter
9the proper order or orders, and enforce them.
10    (d) No provision of this Section shall interfere with the
11exercise by the Commissioner of any provision of Article 11.
12(Source: P.A. 91-97, eff. 7-9-99.)
 
13    (205 ILCS 205/9013)  (from Ch. 17, par. 7309-13)
14    Sec. 9013. Examination of data processing centers.
15    (a) The Commissioner may examine any data processing center
16that provides data processing or related services to a savings
17bank or a branch of an out-of state savings bank with the same
18frequency as the savings bank served.
19    (b) The reasonable and necessary expenses of the Secretary
20during the examination of the performance of electronic data
21processing and related services shall be borne by the savings
22banks for which services are provided.
23    (c) The reasonable and necessary expenses of the Secretary
24during the examination of the performance of electronic data
25processing and related services shall be borne by the branch of

 

 

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1the out-of-state savings banks for which services are provided,
2unless those expenses are borne by the state regulatory
3authorities that chartered the out-of-state savings bank, as
4determined by cooperative agreements between the Secretary and
5the state regulatory authorities that chartered the
6out-of-state savings banks.
7    (d) For the purpose of this Section, "data processing and
8related services" means services such as sorting and posting of
9checks and deposits, computation and posting of interest and
10other credits and charges, preparation and mailing of checks,
11statements, notices, and similar items, or any other clerical,
12bookkeeping, accounting, statistical, or similar functions
13performed for a savings bank, including, but not limited to,
14electronic data processing related to those bank services.
15(Source: P.A. 86-1213.)
 
16    (205 ILCS 205/9018)  (from Ch. 17, par. 7309-18)
17    Sec. 9018. Administrative review. Except as provided in
18Article 10 and as otherwise specifically provided by this Act,
19any person aggrieved by a decision of the Secretary under this
20Act may receive a hearing before the Secretary under Section
219002 and any rule adopted in accordance with this Act Sections
229018.1 through 9018.4 of this Act.
23    Except as provided in Article 10, any person affected by a
24final administrative decision of the Secretary may have the
25decision reviewed only under and in accordance with the

 

 

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1Administrative Review Law.
2    The provisions of the Administrative Review Law, all
3amendments and modifications to the Administrative Review Law,
4and the rules adopted under the Administrative Review Law shall
5apply to and govern all proceedings for the judicial review of
6final administrative decisions of the Secretary under this Act.
7For the purposes of this Section, "administrative decision" is
8defined as in Section 3-101 of the Code of Civil Procedure.
9    Appeals from all final orders and judgments entered by a
10court in review of any final administrative decision of the
11Secretary under this Act may be taken as in other civil cases.
12(Source: P.A. 97-492, eff. 1-1-12.)
 
13    (205 ILCS 205/9018.1 rep.)
14    (205 ILCS 205/9018.2 rep.)
15    (205 ILCS 205/9018.3 rep.)
16    (205 ILCS 205/9018.4 rep.)
17    Section 15. The Savings Bank Act is amended by repealing
18Sections 9018.1, 9018.2, 9018.3, and 9018.4.
 
19    Section 20. The Electronic Fund Transfer Act is amended by
20changing Section 30 as follows:
 
21    (205 ILCS 616/30)
22    Sec. 30. Acceptance of deposits.
23    (A) No terminal that accepts deposits of funds to an

 

 

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1account may be established or owned in this State except by (a)
2a bank established under the laws of this or any other state or
3established under the laws of the United States that (1) is
4authorized by law to establish a branch in this State or (2) is
5permitted by rule of the Commissioner to establish
6deposit-taking terminals in this State in order to maintain
7parity between national banks and banks established under the
8laws of this or any other state, (b) a savings and loan
9association or savings bank established under the laws of this
10or any other state or established under the laws of the United
11States, (c) a credit union established under the laws of this
12or any other state or established under the laws of the United
13States, or (d) a licensee under the Consumer Installment Loan
14Act or the Sales Finance Agency Act.
15    (B) A person other than a financial institution or an
16affiliate of a financial institution may establish or own, in
17whole or in part, a cash-dispensing terminal at which an
18interchange transaction may be performed, provided that the
19terminal does not accept deposits of funds to an account, and
20provided that the person establishing or owning the terminal
21must post a telephone number on the terminal for consumers to
22call to report problems, along with the Department's telephone
23number shall file a notice of establishment or ownership of a
24terminal with the Commissioner, in the form prescribed by the
25Commissioner, within 60 days after the later of (a) the
26effective day of this amendatory Act of 1997 or (b) the

 

 

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1establishment of or acquisition of an ownership interest in the
2terminal. Persons who own a terminal pursuant to this
3subsection (B) shall thereafter file with the Commissioner a
4full and accurate statement of information of ownership, in the
5form prescribed by the Commissioner, once per calendar year. A
6person who has established or owns a terminal pursuant to this
7subsection (B) shall not be required to file subsequent notices
8of establishment or ownership of a terminal when establishing
9or acquiring an ownership interest in additional terminals
10provided the person includes the information required by the
11Commissioner for those terminals in the person's annual filing
12pursuant to this subsection (B). The Commissioner or examiners
13appointed by the Commissioner shall have the authority to
14examine any person that has established or owns a terminal in
15this State pursuant to this subsection (B) if the Commissioner
16has received multiple complaints regarding one or more
17terminals owned by the person, and in the event of such an
18examination, the person shall pay the reasonable costs and
19expenses of the examination as determined by the Commissioner.
20The Commissioner may impose civil penalties of up to $1,000
21against any person subject to this subsection (B) for the first
22failure to comply with this Act and up to $10,000 for the
23second and each subsequent failure to comply with this Act. All
24moneys received by the Commissioner under this subsection (B)
25shall be paid into, and all expenses incurred by the
26Commissioner under this subsection (B) shall be paid from, the

 

 

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1Bank and Trust Company Fund.
2    (C) A network operating in this State shall maintain a
3directory of the locations of cash-dispensing terminals at
4which an interchange transaction may be performed that are
5established or owned in this State by its members and shall
6file the directory with the Commissioner within 60 days after
7the effective date of this amendatory Act of 1997 and
8thereafter once per calendar year.
9(Source: P.A. 89-310, eff. 1-1-96; 90-189, eff. 1-1-98.)
 
10    Section 25. The Corporate Fiduciary Act is amended by
11changing Section 1-7 as follows:
 
12    (205 ILCS 620/1-7)  (from Ch. 17, par. 1551-7)
13    Sec. 1-7. Office locations; corporate fiduciaries.
14    (a) Any corporate fiduciary may establish branch offices at
15any location. Any corporate fiduciary that seeks to establish a
16branch office shall, if it is a trust company, apply for and
17obtain approval for the branch office from the Secretary.
18Commissioner or, if it is a bank, savings and loan association,
19or savings bank, give notice of its intent to establish a
20branch office to the Commissioner, 30 days prior to the
21purchasing or leasing of land, building, or equipment for the
22branch office under the terms and conditions as the
23Commissioner shall specify by rule.
24    (b) Any trust company that proposes to establish a

 

 

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1subsidiary, whether by incorporating the subsidiary or by
2acquiring the subsidiary, shall apply for and obtain prior
3approval from the Secretary Commissioner 60 days prior to
4commencing business by the subsidiary, if newly incorporated,
5or prior to its acquisition, if it is acquired, provided the
6Secretary Commissioner may specify circumstances and
7conditions when a trust company may directly or indirectly
8acquire a subsidiary without prior approval.
9(Source: P.A. 90-665, eff. 7-30-98.)
 
10    Section 30. The Foreign Bank Representative Office Act is
11amended by changing Section 2 as follows:
 
12    (205 ILCS 650/2)  (from Ch. 17, par. 2852)
13    Sec. 2. Definitions. As used in this Act, unless the
14context requires otherwise:
15    (a) "Commissioner" means the Secretary of Financial and
16Professional Regulation or a person authorized by the
17Secretary, the Division of Banking Act, or this Act to act in
18the Secretary's stead.
19    (b) "Foreign bank" means (1) a bank, savings bank, savings
20association, or trust company which is organized under the laws
21of any state or territory of the United States, including the
22District of Columbia, other than the State of Illinois; (2) a
23national bank having its principal place of business in any
24state or territory of the United States, including the District

 

 

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1of Columbia, other than the State of Illinois; or (3) a bank or
2trust company organized and operating under the laws of a
3country other than the United States of America.
4    (c) "Representative office" means an office in the State of
5Illinois at which a foreign bank engages in representational
6functions but does not conduct a commercial banking business.
7    (d) "Division" means the Division of Banking within the
8Department of Financial and Professional Regulation.
9(Source: P.A. 98-1081, eff. 1-1-15.)
 
10    (205 ILCS 690/20 rep.)
11    Section 35. The Check Printer and Check Number Act is
12amended by repealing Section 20.
 
13    (815 ILCS 137/115 rep.)
14    Section 45. The High Risk Home Loan Act is amended by
15repealing Section 115.
 
16    Section 99. Effective date. This Act takes effect upon
17becoming law.

 

 

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1 INDEX
2 Statutes amended in order of appearance
3    205 ILCS 5/21.1
4    205 ILCS 5/21.4
5    205 ILCS 5/48
6    205 ILCS 205/1006from Ch. 17, par. 7301-6
7    205 ILCS 205/1006.05
8    205 ILCS 205/9002.1
9    205 ILCS 205/9002.5
10    205 ILCS 205/9004from Ch. 17, par. 7309-4
11    205 ILCS 205/9009from Ch. 17, par. 7309-9
12    205 ILCS 205/9013from Ch. 17, par. 7309-13
13    205 ILCS 205/9018from Ch. 17, par. 7309-18
14    205 ILCS 205/9018.1 rep.
15    205 ILCS 205/9018.2 rep.
16    205 ILCS 205/9018.3 rep.
17    205 ILCS 205/9018.4 rep.
18    205 ILCS 616/30
19    205 ILCS 620/1-7from Ch. 17, par. 1551-7
20    205 ILCS 650/2from Ch. 17, par. 2852
21    205 ILCS 690/20 rep.
22    815 ILCS 137/115 rep.