Illinois General Assembly - Full Text of SB2709
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Full Text of SB2709  93rd General Assembly

SB2709 93RD GENERAL ASSEMBLY


 


 
93RD GENERAL ASSEMBLY
State of Illinois
2003 and 2004
SB2709

 

Introduced 2/4/2004, by Kimberly A. Lightford

 

SYNOPSIS AS INTRODUCED:
 
205 ILCS 5/21.2 rep.
205 ILCS 10/3.071   from Ch. 17, par. 2510.01

    Amends the Illinois Banking Act and the Illinois Bank Holding Company Act. Eliminates provisions prohibiting an out of state bank or a national bank whose main banking premises is located outside Illinois from acquiring or merging with an Illinois bank that has existed and continually operated as a bank for 5 years or less. Effective immediately.


LRB093 20846 SAS 46778 b

 

 

A BILL FOR

 

SB2709 LRB093 20846 SAS 46778 b

1     AN ACT concerning financial regulation.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     (205 ILCS 5/21.2 rep.)
5     Section 5. The Illinois Banking Act is amended by repealing
6 Section 21.2.
 
7     Section 10. The Illinois Bank Holding Company Act of 1957
8 is amended by changing Section 3.071 as follows:
 
9     (205 ILCS 10/3.071)  (from Ch. 17, par. 2510.01)
10     Sec. 3.071. Out of state bank holding companies.
11     (a) An out of state bank holding company may acquire
12 ownership of more than 5% of the voting shares of or control of
13 one or more Illinois banks or Illinois bank holding companies
14 pursuant to a transaction, occurrence or event that is
15 described in paragraphs (1) through (5) of subsection (a) of
16 Section 3.02, provided the acquisition is made in accordance
17 with Sections 3.02 and 3.07 of this Act in accordance with
18 subsection (i) of this Section and provided the following
19 conditions are met:
20         (1) (Blank).
21         (2) An out of state bank holding company seeking to
22     acquire an Illinois bank or Illinois bank holding company
23     pursuant to subsection (a) of Section 3.071 shall, if
24     change in control of the bank is governed by Section 18 of
25     the Illinois Banking Act, file with the Commissioner the
26     application required by that Section containing
27     information satisfactory to the Commissioner.
28
29     (b) (Blank).
30     (c) (Blank).
31     (d) (Blank).

 

 

SB2709 - 2 - LRB093 20846 SAS 46778 b

1     (e) (Blank).
2     (f) (Blank).
3     (g) (Blank).
4     (h) (Blank).
5     (i) (Blank). (1) An out of state bank holding company which
6     directly or indirectly controls or has control over an
7     Illinois bank that has existed and continuously operated as
8     a bank for 5 years or less, may not cause the Illinois bank
9     to merge with or into, or to have all or substantially all
10     of the assets acquired by a bank that is an out of state
11     bank.
12         (2) For purposes of subsection (i)(1) of this Section,
13     an Illinois bank that is the resulting bank following a
14     merger involving an Illinois interim bank shall be
15     considered to have been in existence and continuously
16     operated during the existence and continuous operation of
17     the Illinois merged bank. As used in this subsection
18     (i)(2), the words "resulting bank" and "merged bank" shall
19     have the meanings ascribed to those words in Section 2 of
20     the Illinois Banking Act. As used in this subsection
21     (i)(2), the words "interim bank" shall mean a bank which
22     shall not accept deposits, make loans, pay checks, or
23     engage in the general business of banking or any part
24     thereof, and is chartered solely for the purpose of merging
25     with or acquiring control of, or acquiring all or
26     substantially all of the assets of an existing Illinois
27     bank.
28         (3) The provisions of subsection (i)(1) of this Section
29     shall not apply to the merger or acquisition of all or
30     substantially all of the assets of an Illinois bank:
31             (i) if the merger or acquisition is part of a
32         purchase or acquisition with respect to which the
33         Federal Deposit Insurance Corporation provides
34         assistance under Section 13(c) of the Federal Deposit
35         Insurance Act; or
36             (ii) if the Illinois bank is in default or in

 

 

SB2709 - 3 - LRB093 20846 SAS 46778 b

1         danger of default. As used in this subsection
2         (i)(3)(ii), the words "in default" and "in danger of
3         default" shall have the meaning ascribed to those words
4         in Section 2 of the Illinois Banking Act.
5 (Source: P.A. 89-208, eff. 9-29-95; 89-567, eff. 7-26-96;
6 90-226, eff. 7-25-97; 90-655, eff. 7-30-98.)
 
7     Section 99. Effective date. This Act takes effect upon
8 becoming law.