093_HB3181

 
                                     LRB093 09862 JLS 10110 b

 1        AN ACT concerning bank holding companies.

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

 4        Section 5.  The Illinois Bank Holding Company Act of 1957
 5    is amended by changing Section 3.071 as follows:

 6        (205 ILCS 10/3.071) (from Ch. 17, par. 2510.01)
 7        Sec. 3.071.  Out of state bank holding companies.
 8        (a)  An  out  of  state  bank holding company may acquire
 9    ownership of more than 5% of the voting shares of or  control
10    of  one  or  more  Illinois  banks  or  Illinois bank holding
11    companies pursuant to a transaction, occurrence or event that
12    is described in paragraphs (1) through (5) of subsection  (a)
13    of   Section  3.02,  provided  the  acquisition  is  made  in
14    accordance with  Sections  3.02  and  3.07  of  this  Act  in
15    accordance  with  subsection (i) of this Section and provided
16    the following conditions are met:
17             (1)  (Blank).
18             (2)  An out of state bank holding company seeking to
19        acquire an Illinois bank or Illinois bank holding company
20        pursuant to subsection (a) of  Section  3.071  shall,  if
21        change  in  control of the bank is governed by Section 18
22        of the Illinois Banking Act, file with  the  Commissioner
23        the  application  required  by  that  Section  containing
24        information satisfactory to the Commissioner.
25        (b)  (Blank).
26        (c)  (Blank).
27        (d)  (Blank).
28        (e)  (Blank).
29        (f)  (Blank).
30        (g)  (Blank).
31        (h)  (Blank).
 
                            -2-      LRB093 09862 JLS 10110 b
 1        (i) (1)  An  out  of  state  bank  holding  company which
 2        directly or indirectly controls or has  control  over  an
 3        Illinois  bank that has existed and continuously operated
 4        as a bank for 5 years or less, may not cause the Illinois
 5        bank  to  merge  with  or  into,  or  to  have   all   or
 6        substantially  all  of the assets acquired by a bank that
 7        is an out of state bank.
 8             (2)  For  purposes  of  subsection  (i)(1)  of  this
 9        Section, an Illinois bank  that  is  the  resulting  bank
10        following  a  merger  involving  an Illinois interim bank
11        shall  be  considered  to  have  been  in  existence  and
12        continuously  operated  only  during  the  existence  and
13        continuous operation of the Illinois merged bank. As used
14        in this subsection (i)(2), the words "resulting bank" and
15        "merged bank" shall have the meanings ascribed  to  those
16        words  in  Section 2 of the Illinois Banking Act. As used
17        in this subsection (i)(2), the words "interim bank" shall
18        mean a bank which shall not accept deposits, make  loans,
19        pay  checks, or engage in the general business of banking
20        or any part thereof, and  is  chartered  solely  for  the
21        purpose  of  merging  with  or  acquiring  control of, or
22        acquiring all or substantially all of the  assets  of  an
23        existing Illinois bank.
24             (3)  The  provisions  of  subsection  (i)(1) of this
25        Section shall not apply to the merger or  acquisition  of
26        all  or  substantially  all  of the assets of an Illinois
27        bank:
28                  (i)  if the merger or acquisition is part of  a
29             purchase  or  acquisition  with respect to which the
30             Federal  Deposit  Insurance   Corporation   provides
31             assistance   under  Section  13(c)  of  the  Federal
32             Deposit Insurance Act; or
33                  (ii)  if the Illinois bank is in default or  in
34             danger  of  default.   As  used  in  this subsection
 
                            -3-      LRB093 09862 JLS 10110 b
 1             (i)(3)(ii), the words "in default" and "in danger of
 2             default" shall have the meaning  ascribed  to  those
 3             words in Section 2 of the Illinois Banking Act.
 4    (Source:  P.A.  89-208,  eff.  9-29-95; 89-567, eff. 7-26-96;
 5    90-226, eff. 7-25-97; 90-655, eff. 7-30-98.)

 6        Section 99.  Effective date.  This Act takes effect  upon
 7    becoming law.