Full Text of SB1861 99th General Assembly
SB1861enr 99TH GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning regulation.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Banking Act is amended by changing | 5 | | Sections 5 and 14.1 as follows:
| 6 | | (205 ILCS 5/5) (from Ch. 17, par. 311)
| 7 | | Sec. 5. General corporate powers. A bank organized under | 8 | | this Act
or subject hereto shall be a body corporate and | 9 | | politic and shall,
without specific mention thereof in the | 10 | | charter, have all the powers
conferred by this Act and the | 11 | | following additional general corporate
powers:
| 12 | | (1) To sue and be sued, complain, and defend in its | 13 | | corporate name.
| 14 | | (2) To have a corporate seal, which may be altered at | 15 | | pleasure, and
to use the same by causing it or a facsimile | 16 | | thereof to be impressed or
affixed or in any manner | 17 | | reproduced, provided that the affixing of a
corporate
seal | 18 | | to an instrument shall not give the instrument additional | 19 | | force or effect,
or change the construction thereof, and | 20 | | the use of a corporate seal is not
mandatory.
| 21 | | (3) To make, alter, amend, and repeal bylaws, not | 22 | | inconsistent with
its charter or with law, for the | 23 | | administration of the affairs of the bank.
If this Act does |
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| 1 | | not provide specific guidance in matters of corporate
| 2 | | governance, the provisions of the Business Corporation Act | 3 | | of 1983 may be
used if so provided in the bylaws, and if | 4 | | the bank is a limited liability
company, the provisions of | 5 | | the Limited Liability Company Act shall be used.
| 6 | | (4) To elect or appoint and remove officers and agents | 7 | | of the bank
and define their duties and fix their | 8 | | compensation.
| 9 | | (5) To adopt and operate reasonable bonus plans, | 10 | | profit-sharing
plans, stock-bonus plans, stock-option | 11 | | plans, pension plans and similar
incentive plans for its | 12 | | directors, officers and employees.
| 13 | | (5.1) To manage, operate and administer a fund for the | 14 | | investment of funds
by a public agency or agencies, | 15 | | including any unit of local government or
school district, | 16 | | or any person. The fund for a public agency shall invest in
| 17 | | the same type of investments and be subject to the same | 18 | | limitations provided
for the investment of public funds. | 19 | | The fund for public agencies shall
maintain a separate | 20 | | ledger showing the amount of investment for each public
| 21 | | agency in the fund. "Public funds" and "public agency" as | 22 | | used in this Section
shall have the meanings ascribed to | 23 | | them in Section 1 of the Public Funds
Investment Act.
| 24 | | (6) To make reasonable donations for the public welfare | 25 | | or for charitable,
scientific, religious or educational | 26 | | purposes.
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| 1 | | (7) To borrow or incur an obligation; and to pledge its | 2 | | assets:
| 3 | | (a) to secure its borrowings, its lease of personal | 4 | | or real property or
its other nondeposit obligations;
| 5 | | (b) to enable it to act as agent for the sale of | 6 | | obligations of the
United States;
| 7 | | (c) to secure deposits of public money of the | 8 | | United States,
whenever required by the laws of the | 9 | | United States, including without
being limited to, | 10 | | revenues and funds the deposit of which is subject to
| 11 | | the control or regulation of the United States or any | 12 | | of its officers,
agents, or employees and Postal | 13 | | Savings funds;
| 14 | | (d) to secure deposits of public money of any state | 15 | | or of any
political corporation or subdivision thereof
| 16 | | including, without being limited to, revenues and | 17 | | funds the deposit of which
is subject to the control or | 18 | | regulation of any state or of any political
corporation | 19 | | or subdivisions thereof or of any of their officers, | 20 | | agents, or
employees;
| 21 | | (e) to secure deposits of money whenever required | 22 | | by the National
Bankruptcy Act;
| 23 | | (f) (blank); and
| 24 | | (g) to secure trust funds commingled with the | 25 | | bank's funds, whether
deposited by the bank or an | 26 | | affiliate of the bank, pursuant to Section 2-8 of
the |
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| 1 | | Corporate Fiduciary Act.
| 2 | | (8) To own, possess, and carry as assets all or part of | 3 | | the real
estate necessary in or with which to do its | 4 | | banking business, either
directly or indirectly through | 5 | | the ownership of all or part of the
capital stock, shares | 6 | | or interests in any corporation, association,
trust | 7 | | engaged in holding any part or parts or all of the bank
| 8 | | premises, engaged in such business and in conducting a safe
| 9 | | deposit business in the premises or part of them, or | 10 | | engaged in any activity
that the bank is permitted to | 11 | | conduct in a subsidiary pursuant to paragraph
(12) of this | 12 | | Section 5.
| 13 | | (9) To own, possess, and carry as assets other real | 14 | | estate to
which it may obtain title in the collection of | 15 | | its debts or that was
formerly used as a part of the bank | 16 | | premises, but title to
any real estate except as herein | 17 | | permitted shall not be retained by the
bank, either | 18 | | directly or by or through a subsidiary, as permitted by
| 19 | | subsection (12) of this Section for a total period of more | 20 | | than 10
years
after acquiring title, either directly or | 21 | | indirectly.
| 22 | | (10) To do any act, including the acquisition of stock, | 23 | | necessary to
obtain insurance of its deposits, or part | 24 | | thereof, and any act necessary
to obtain a guaranty, in | 25 | | whole or in part, of any of its loans or
investments by the | 26 | | United States or any agency thereof, and any act
necessary |
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| 1 | | to sell or otherwise dispose of any of its loans or
| 2 | | investments to the United States or any agency thereof, and | 3 | | to acquire
and hold membership in the Federal Reserve | 4 | | System.
| 5 | | (11) Notwithstanding any other provisions of this Act | 6 | | or any
other law, to do any act
and to own, possess, and | 7 | | carry as assets property of the character,
including stock, | 8 | | that is at the time authorized or permitted to
national | 9 | | banks by an Act of Congress, but subject always to the same
| 10 | | limitations and restrictions as are applicable to national | 11 | | banks by the
pertinent federal law and subject to | 12 | | applicable provisions of the
Financial Institutions | 13 | | Insurance Sales Law.
| 14 | | (12) To own, possess, and carry as assets stock of one | 15 | | or more
corporations that is, or are, engaged in one or | 16 | | more of the
following businesses:
| 17 | | (a) holding title to and administering assets | 18 | | acquired
as a result of the collection or liquidating | 19 | | of loans, investments, or
discounts; or
| 20 | | (b) holding title to and administering personal | 21 | | property acquired by
the bank, directly or indirectly | 22 | | through a subsidiary, for the
purpose of leasing to | 23 | | others, provided the lease or leases and the
investment | 24 | | of the bank, directly or through a subsidiary, in that
| 25 | | personal property otherwise comply with Section 35.1 | 26 | | of this Act; or
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| 1 | | (c) carrying on or administering any of the | 2 | | activities excepting the
receipt of deposits or the | 3 | | payment of checks or other orders for the
payment of | 4 | | money in which a bank may engage in carrying on its | 5 | | general
banking business; provided, however, that | 6 | | nothing contained in this
paragraph (c) shall be deemed | 7 | | to permit a bank organized under this Act or
subject | 8 | | hereto to do, either directly or indirectly through any
| 9 | | subsidiary, any act, including the making of any loan | 10 | | or investment, or to
own, possess, or carry as assets | 11 | | any property that if done by or owned,
possessed, or | 12 | | carried by the State bank would be in violation of or
| 13 | | prohibited by any provision of this Act.
| 14 | | The provisions of this subsection (12) shall not apply | 15 | | to and shall not
be deemed to limit the powers of a State | 16 | | bank with respect to the
ownership, possession, and | 17 | | carrying of stock that a State bank is permitted to
own, | 18 | | possess, or carry under this Act.
| 19 | | Any bank intending to establish a subsidiary under this | 20 | | subsection
(12) shall give written notice to the | 21 | | Commissioner 60 days prior to the
subsidiary's commencing | 22 | | of business or, as the case may be, prior to
acquiring | 23 | | stock in a corporation that has already commenced business. | 24 | | After
receiving the notice, the Commissioner may waive or | 25 | | reduce the balance of the
60 day notice period. The
| 26 | | Commissioner may specify the form of the notice, may |
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| 1 | | designate the types of subsidiaries not subject to this | 2 | | notice requirement, and may promulgate rules
and | 3 | | regulations to administer this subsection (12).
| 4 | | (13) To accept for payment at a future date not | 5 | | exceeding one year
from the date of acceptance, drafts | 6 | | drawn upon it by its customers; and
to issue, advise, or | 7 | | confirm letters of credit authorizing the holders
thereof | 8 | | to draw drafts upon it or its correspondents.
| 9 | | (14) To own and lease personal property acquired by the | 10 | | bank at the
request of a prospective lessee and upon the | 11 | | agreement of that person to
lease the personal property | 12 | | provided that the lease, the agreement
with respect | 13 | | thereto, and the amount of the investment of the bank in
| 14 | | the property comply with Section 35.1 of this Act.
| 15 | | (15)(a) To establish and maintain, in addition to the | 16 | | main
banking premises, branches offering any banking | 17 | | services permitted at the main
banking premises of a State | 18 | | bank.
| 19 | | (b) To establish and maintain, after May 31, 1997, | 20 | | branches in
another state that may conduct any activity in | 21 | | that state that is authorized or
permitted for any bank | 22 | | that has a banking charter issued by that state, subject
to | 23 | | the same limitations and restrictions that are applicable | 24 | | to banks chartered
by that state.
| 25 | | (16) (Blank).
| 26 | | (17) To establish and maintain terminals, as |
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| 1 | | authorized by the
Electronic Fund Transfer Act.
| 2 | | (18) To establish and maintain temporary service | 3 | | booths at any
International Fair held in this State which | 4 | | is approved by the United
States Department of Commerce, | 5 | | for the duration of the international fair
for the sole | 6 | | purpose of providing a convenient place for foreign trade
| 7 | | customers at the fair to exchange their home countries' | 8 | | currency into
United States currency or the converse. This | 9 | | power shall not be construed
as establishing a new place or | 10 | | change of location for the bank providing
the service | 11 | | booth.
| 12 | | (19) To indemnify its officers, directors, employees, | 13 | | and
agents, as authorized for corporations under Section | 14 | | 8.75 of the
Business Corporation Act of 1983.
| 15 | | (20) To own, possess, and carry as assets stock of, or | 16 | | be or become a
member of, any corporation, mutual company, | 17 | | association, trust, or other
entity formed exclusively for | 18 | | the purpose of providing directors' and
officers' | 19 | | liability and bankers' blanket bond insurance or | 20 | | reinsurance
to and for the benefit of the stockholders, | 21 | | members, or beneficiaries, or their
assets or businesses, | 22 | | or their officers, directors, employees, or agents, and
not | 23 | | to or for the benefit of any other person or entity or the | 24 | | public
generally.
| 25 | | (21) To make debt or equity investments in corporations | 26 | | or projects,
whether for profit or not for profit, designed |
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| 1 | | to promote the development
of the community and its | 2 | | welfare, provided that the aggregate investment in
all of | 3 | | these corporations and in all of these projects does not | 4 | | exceed 10% of
the
unimpaired capital and unimpaired surplus | 5 | | of the bank and provided that
this
limitation shall not | 6 | | apply to creditworthy loans by the bank to those
| 7 | | corporations or projects. Upon written application to the | 8 | | Commissioner, a
bank may make an investment that would, | 9 | | when aggregated with all other
such investments, exceed 10% | 10 | | of the unimpaired capital and
unimpaired
surplus of the
| 11 | | bank. The Commissioner may approve the investment if he is | 12 | | of the opinion
and finds that the proposed investment will | 13 | | not have a material adverse
effect on the safety and | 14 | | soundness of the bank.
| 15 | | (22) To own, possess, and carry as assets the stock of | 16 | | a corporation
engaged in the ownership or operation of a | 17 | | travel agency or to operate a
travel agency as a part of | 18 | | its business.
| 19 | | (23) With respect to affiliate facilities:
| 20 | | (a) to conduct at affiliate facilities for and on | 21 | | behalf of another
commonly owned bank, if so
authorized | 22 | | by the other bank, all transactions that the other bank | 23 | | is
authorized or permitted to perform; and
| 24 | | (b) to authorize a commonly owned bank to conduct | 25 | | for and on behalf of
it any of the transactions it is | 26 | | authorized or permitted to perform at one or
more
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| 1 | | affiliate facilities.
| 2 | | Any bank intending to conduct or to authorize a | 3 | | commonly owned bank to
conduct at an affiliate facility any | 4 | | of the transactions specified in this
paragraph (23) shall | 5 | | give written notice to the Commissioner at least 30
days | 6 | | before any such transaction is conducted at the affiliate | 7 | | facility.
| 8 | | (24) To act as the agent for any fire, life, or other | 9 | | insurance company
authorized by the State of Illinois, by | 10 | | soliciting and selling insurance and
collecting premiums | 11 | | on policies issued by such company; and to
receive for | 12 | | services so rendered such fees or commissions as may be | 13 | | agreed upon
between the bank and the insurance company for | 14 | | which it may act as
agent; provided, however, that no such | 15 | | bank shall in any case assume or
guarantee the payment of | 16 | | any premium on insurance policies issued through its
agency | 17 | | by its principal; and provided further, that the bank shall | 18 | | not
guarantee the truth of any statement made by an assured | 19 | | in filing his
application for insurance.
| 20 | | (25) Notwithstanding any other provisions of this Act | 21 | | or any other law,
to offer any product or service that is | 22 | | at the time authorized or permitted to
any insured savings | 23 | | association or out-of-state bank by applicable law,
| 24 | | provided that powers
conferred only by this subsection | 25 | | (25):
| 26 | | (a) shall always be subject to the same limitations |
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| 1 | | and restrictions that
are applicable to the insured | 2 | | savings association or out-of-state bank for
the | 3 | | product or service by
such applicable law;
| 4 | | (b) shall be subject to applicable provisions of | 5 | | the Financial
Institutions Insurance Sales Law;
| 6 | | (c) shall not include the right to own or conduct a | 7 | | real estate brokerage
business for which a license | 8 | | would be required under the laws of this State;
and
| 9 | | (d) shall not be construed to include the | 10 | | establishment or maintenance of
a branch, nor shall | 11 | | they be construed to limit the establishment or | 12 | | maintenance
of a branch pursuant to subsection (11).
| 13 | | Not less than 30 days before engaging in any activity | 14 | | under the authority
of this subsection, a bank shall | 15 | | provide written notice to the Commissioner of
its intent to | 16 | | engage in the activity. The notice shall indicate the | 17 | | specific
federal or state law, rule, regulation, or | 18 | | interpretation the bank intends to
use as authority to | 19 | | engage in the activity.
| 20 | | (26) Nothing in this Section shall be construed to | 21 | | require the filing of a notice or application for approval | 22 | | with the United States Office of the Comptroller of the | 23 | | Currency or a bank supervisor of another state as a | 24 | | condition to the right of a State bank to exercise any of | 25 | | the powers conferred by this Section in this State. | 26 | | (Source: P.A. 98-44, eff. 6-28-13.)
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| 1 | | (205 ILCS 5/14.1) (from Ch. 17, par. 321.1)
| 2 | | Sec. 14.1. Quasi-Reorganization of Capital Upon a Change in | 3 | | Control .
| 4 | | (a) For the purposes of declaring dividends pursuant to | 5 | | Section 14(8)(b) of
this Act upon a change in control , if a | 6 | | bank:
| 7 | | (1) incurs a change in ownership of more than 50% of its | 8 | | voting stock; and
| 9 | | (2) has a deficit in its net profits then on hand at the | 10 | | time of such
change in ownership; and
| 11 | | (3) receives the prior written approval of the Secretary | 12 | | Commissioner ; such bank
may restate its asset and liability | 13 | | accounts to fair value for the purpose
of reorganizing the | 14 | | capital accounts of the bank so that net profits then
on hand | 15 | | are restated to zero; provided that in no event may total | 16 | | capital
be increased as a result of a capital reorganization | 17 | | made pursuant to this Section.
| 18 | | (b) A bank may reorganize its capital accounts pursuant to | 19 | | item (3) of subsection (a) of this Section without a change in | 20 | | control to the same extent and in the same manner authorized | 21 | | for national banks, subject to the same limitations and | 22 | | restrictions as are applicable to national banks, upon | 23 | | receiving the prior written approval of the Secretary. | 24 | | (Source: P.A. 87-841.)
| 25 | | Section 99. Effective date. This Act takes effect upon |
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| 1 | | becoming law.
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