Illinois General Assembly - Full Text of SB2101
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Full Text of SB2101  96th General Assembly

SB2101sam004 96TH GENERAL ASSEMBLY

Sen. Jacqueline Y. Collins

Filed: 10/28/2009

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 2101

2     AMENDMENT NO. ______. Amend Senate Bill 2101 by replacing
3 everything after the enacting clause with the following:
 
4     "Section 5. The Illinois Bank Examiners' Education
5 Foundation Act is amended by changing Sections 1, 3.01, 4, 5,
6 and 8 and by adding Section 3.07 as follows:
 
7     (20 ILCS 3210/1)  (from Ch. 17, par. 401)
8     Sec. 1. The Illinois Bank Examiners' Education Foundation
9 is hereby created for the purpose of providing a means through
10 which funds may be raised, invested and disbursed for
11 continuing education and professional training activity for
12 the examination employees of the Division of Banking whose
13 responsibilities include the supervision and regulation of
14 commercial banks, foreign banking offices, trust companies,
15 and their information technology service providers
16 Commissioner's office.

 

 

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1 (Source: P.A. 84-1127.)
 
2     (20 ILCS 3210/3.01)  (from Ch. 17, par. 403.1)
3     Sec. 3.01. "Board" means the State Banking Board of
4 Illinois Board of Trustees of the Illinois Bank Examiners'
5 Education Foundation created by the Illinois Banking Act this
6 Act.
7 (Source: P.A. 84-1127.)
 
8     (20 ILCS 3210/3.07 new)
9     Sec. 3.07. Division of Banking. "Division of Banking" means
10 the Division of Banking of the Department of Financial and
11 Professional Regulation.
 
12     (20 ILCS 3210/4)  (from Ch. 17, par. 404)
13     Sec. 4. The Foundation shall establish an endowment fund
14 with the monies in the Illinois Bank Examiners' Education Fund.
15 The income from such Fund shall be used to pay for continuing
16 education and professional training activity for the
17 examination employees of the Division of Banking whose
18 responsibilities include the supervision and regulation of
19 commercial banks, foreign banking offices, trust companies,
20 and their information technology service providers
21 Commissioner's office authorized by the Board of the Illinois
22 Bank Examiners' Education Program and to pay for reasonable
23 expenses incurred by the Board in the course of its official

 

 

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1 duties. The continuing education and professional training
2 activity to be funded by the Foundation shall be a supplement
3 to the education and training expenditures regularly being made
4 from the Bank & Trust Company Fund for such purposes.
5 (Source: P.A. 84-1127.)
 
6     (20 ILCS 3210/5)  (from Ch. 17, par. 405)
7     Sec. 5. The Foundation shall be governed by the State
8 Banking Board of Illinois a Board of Trustees. The Board shall
9 consist of the following trustees: the Commissioner, who shall
10 be its chairman; one Class A member and three Class B members
11 from the State Banking Board of Illinois, appointed by the
12 Governor.
13     The terms of the trustees of the Foundation who are members
14 of the State Banking Board of Illinois are to be coextensive
15 with their terms on the State Banking Board of Illinois. An
16 appointment to fill a vacancy shall be for the unexpired term
17 of the trustee whose term is being filled. Trustees shall
18 receive no compensation for service on the Board, but shall be
19 reimbursed for all reasonable and necessary expenditures
20 incurred in the performance of their official duties.
21 (Source: P.A. 84-1127.)
 
22     (20 ILCS 3210/8)  (from Ch. 17, par. 408)
23     Sec. 8. No Neither the Commissioner nor any member of the
24 Board shall be subject to any civil liability or penalty,

 

 

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1 whether for damages or otherwise, on account of or for any
2 action taken or omitted to be taken in their respective
3 official capacities, except when such acts or omissions to act
4 are corrupt or malicious or unless such action is taken or
5 omitted to be taken not in good faith and without reasonable
6 grounds.
7 (Source: P.A. 84-1127.)
 
8     Section 10. The Illinois Banking Act is amended by changing
9 Sections 2, 48, 78, 79, 80, and 82 as follows:
 
10     (205 ILCS 5/2)  (from Ch. 17, par. 302)
11     Sec. 2. General definitions. In this Act, unless the
12 context otherwise requires, the following words and phrases
13 shall have the following meanings:
14     "Accommodation party" shall have the meaning ascribed to
15 that term in Section 3-419 of the Uniform Commercial Code.
16     "Action" in the sense of a judicial proceeding includes
17 recoupments, counterclaims, set-off, and any other proceeding
18 in which rights are determined.
19     "Affiliate facility" of a bank means a main banking
20 premises or branch of another commonly owned bank. The main
21 banking premises or any branch of a bank may be an "affiliate
22 facility" with respect to one or more other commonly owned
23 banks.
24     "Appropriate federal banking agency" means the Federal

 

 

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1 Deposit Insurance Corporation, the Federal Reserve Bank of
2 Chicago, or the Federal Reserve Bank of St. Louis, as
3 determined by federal law.
4     "Bank" means any person doing a banking business whether
5 subject to the laws of this or any other jurisdiction.
6     A "banking house", "branch", "branch bank" or "branch
7 office" shall mean any place of business of a bank at which
8 deposits are received, checks paid, or loans made, but shall
9 not include any place at which only records thereof are made,
10 posted, or kept. A place of business at which deposits are
11 received, checks paid, or loans made shall not be deemed to be
12 a branch, branch bank, or branch office if the place of
13 business is adjacent to and connected with the main banking
14 premises, or if it is separated from the main banking premises
15 by not more than an alley; provided always that (i) if the
16 place of business is separated by an alley from the main
17 banking premises there is a connection between the two by
18 public or private way or by subterranean or overhead passage,
19 and (ii) if the place of business is in a building not wholly
20 occupied by the bank, the place of business shall not be within
21 any office or room in which any other business or service of
22 any kind or nature other than the business of the bank is
23 conducted or carried on. A place of business at which deposits
24 are received, checks paid, or loans made shall not be deemed to
25 be a branch, branch bank, or branch office (i) of any bank if
26 the place is a terminal established and maintained in

 

 

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1 accordance with paragraph (17) of Section 5 of this Act, or
2 (ii) of a commonly owned bank by virtue of transactions
3 conducted at that place on behalf of the other commonly owned
4 bank under paragraph (23) of Section 5 of this Act if the place
5 is an affiliate facility with respect to the other bank.
6     "Branch of an out-of-state bank" means a branch established
7 or maintained in Illinois by an out-of-state bank as a result
8 of a merger between an Illinois bank and the out-of-state bank
9 that occurs on or after May 31, 1997, or any branch established
10 by the out-of-state bank following the merger.
11     "Bylaws" means the bylaws of a bank that are adopted by the
12 bank's board of directors or shareholders for the regulation
13 and management of the bank's affairs. If the bank operates as a
14 limited liability company, however, "bylaws" means the
15 operating agreement of the bank.
16     "Call report fee" means the fee to be paid to the
17 Commissioner by each State bank pursuant to paragraph (a) of
18 subsection (3) of Section 48 of this Act.
19     "Capital" includes the aggregate of outstanding capital
20 stock and preferred stock.
21     "Cash flow reserve account" means the account within the
22 books and records of the Commissioner of Banks and Real Estate
23 used to record funds designated to maintain a reasonable Bank
24 and Trust Company Fund operating balance to meet agency
25 obligations on a timely basis.
26     "Charter" includes the original charter and all amendments

 

 

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1 thereto and articles of merger or consolidation.
2     "Commissioner" means the Commissioner of Banks and Real
3 Estate, except that beginning on April 6, 2009 (the effective
4 date of Public Act 95-1047) this amendatory Act of the 95th
5 General Assembly, all references in this Act to the
6 Commissioner of Banks and Real Estate are deemed, in
7 appropriate contexts, to be references to the Secretary of
8 Financial and Professional Regulation.
9     "Commonly owned banks" means 2 or more banks that each
10 qualify as a bank subsidiary of the same bank holding company
11 pursuant to Section 18 of the Federal Deposit Insurance Act;
12 "commonly owned bank" refers to one of a group of commonly
13 owned banks but only with respect to one or more of the other
14 banks in the same group.
15     "Community" means a city, village, or incorporated town and
16 also includes the area served by the banking offices of a bank,
17 but need not be limited or expanded to conform to the
18 geographic boundaries of units of local government.
19     "Company" means a corporation, limited liability company,
20 partnership, business trust, association, or similar
21 organization and, unless specifically excluded, includes a
22 "State bank" and a "bank".
23     "Consolidating bank" means a party to a consolidation.
24     "Consolidation" takes place when 2 or more banks, or a
25 trust company and a bank, are extinguished and by the same
26 process a new bank is created, taking over the assets and

 

 

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1 assuming the liabilities of the banks or trust company passing
2 out of existence.
3     "Continuing bank" means a merging bank, the charter of
4 which becomes the charter of the resulting bank.
5     "Converting bank" means a State bank converting to become a
6 national bank, or a national bank converting to become a State
7 bank.
8     "Converting trust company" means a trust company
9 converting to become a State bank.
10     "Court" means a court of competent jurisdiction.
11     "Director" means a member of the board of directors of a
12 bank. In the case of a manager-managed limited liability
13 company, however, "director" means a manager of the bank and,
14 in the case of a member-managed limited liability company,
15 "director" means a member of the bank. The term "director" does
16 not include an advisory director, honorary director, director
17 emeritus, or similar person, unless the person is otherwise
18 performing functions similar to those of a member of the board
19 of directors.
20     "Director of Banking" means the Director of the Division of
21 Banking of the Department of Financial and Professional
22 Regulation.
23     "Eligible depository institution" means an insured savings
24 association that is in default, an insured savings association
25 that is in danger of default, a State or national bank that is
26 in default or a State or national bank that is in danger of

 

 

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1 default, as those terms are defined in this Section, or a new
2 bank as that term defined in Section 11(m) of the Federal
3 Deposit Insurance Act or a bridge bank as that term is defined
4 in Section 11(n) of the Federal Deposit Insurance Act or a new
5 federal savings association authorized under Section
6 11(d)(2)(f) of the Federal Deposit Insurance Act.
7     "Fiduciary" means trustee, agent, executor, administrator,
8 committee, guardian for a minor or for a person under legal
9 disability, receiver, trustee in bankruptcy, assignee for
10 creditors, or any holder of similar position of trust.
11     "Financial institution" means a bank, savings bank,
12 savings and loan association, credit union, or any licensee
13 under the Consumer Installment Loan Act or the Sales Finance
14 Agency Act and, for purposes of Section 48.3, any proprietary
15 network, funds transfer corporation, or other entity providing
16 electronic funds transfer services, or any corporate
17 fiduciary, its subsidiaries, affiliates, parent company, or
18 contractual service provider that is examined by the
19 Commissioner. For purposes of Section 5c and subsection (b) of
20 Section 13 of this Act, "financial institution" includes any
21 proprietary network, funds transfer corporation, or other
22 entity providing electronic funds transfer services, and any
23 corporate fiduciary.
24     "Foundation" means the Illinois Bank Examiners' Education
25 Foundation.
26     "General obligation" means a bond, note, debenture,

 

 

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

 

 

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1     appropriate federal banking agency,
2             (A) the State or national bank or insured savings
3         association has incurred or is likely to incur losses
4         that will deplete all or substantially all of its
5         capital; and
6             (B) there is no reasonable prospect that the
7         capital of the State or national bank or insured
8         savings association will be replenished without
9         federal assistance.
10     "In default" means, with respect to a State or national
11 bank or an insured savings association, any adjudication or
12 other official determination by any court of competent
13 jurisdiction, the Commissioner, the appropriate federal
14 banking agency, or other public authority pursuant to which a
15 conservator, receiver, or other legal custodian is appointed
16 for a State or national bank or an insured savings association.
17     "Insured savings association" means any federal savings
18 association chartered under Section 5 of the federal Home
19 Owners' Loan Act and any State savings association chartered
20 under the Illinois Savings and Loan Act of 1985 or a
21 predecessor Illinois statute, the deposits of which are insured
22 by the Federal Deposit Insurance Corporation. The term also
23 includes a savings bank organized or operating under the
24 Savings Bank Act.
25     "Insured savings association in recovery" means an insured
26 savings association that is not an eligible depository

 

 

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1 institution and that does not meet the minimum capital
2 requirements applicable with respect to the insured savings
3 association.
4     "Issuer" means for purposes of Section 33 every person who
5 shall have issued or proposed to issue any security; except
6 that (1) with respect to certificates of deposit, voting trust
7 certificates, collateral-trust certificates, and certificates
8 of interest or shares in an unincorporated investment trust not
9 having a board of directors (or persons performing similar
10 functions), "issuer" means the person or persons performing the
11 acts and assuming the duties of depositor or manager pursuant
12 to the provisions of the trust, agreement, or instrument under
13 which the securities are issued; (2) with respect to trusts
14 other than those specified in clause (1) above, where the
15 trustee is a corporation authorized to accept and execute
16 trusts, "issuer" means the entrusters, depositors, or creators
17 of the trust and any manager or committee charged with the
18 general direction of the affairs of the trust pursuant to the
19 provisions of the agreement or instrument creating the trust;
20 and (3) with respect to equipment trust certificates or like
21 securities, "issuer" means the person to whom the equipment or
22 property is or is to be leased or conditionally sold.
23     "Letter of credit" and "customer" shall have the meanings
24 ascribed to those terms in Section 5-102 of the Uniform
25 Commercial Code.
26     "Main banking premises" means the location that is

 

 

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1 designated in a bank's charter as its main office.
2     "Maker or obligor" means for purposes of Section 33 the
3 issuer of a security, the promisor in a debenture or other debt
4 security, or the mortgagor or grantor of a trust deed or
5 similar conveyance of a security interest in real or personal
6 property.
7     "Merged bank" means a merging bank that is not the
8 continuing, resulting, or surviving bank in a consolidation or
9 merger.
10     "Merger" includes consolidation.
11     "Merging bank" means a party to a bank merger.
12     "Merging trust company" means a trust company party to a
13 merger with a State bank.
14     "Mid-tier bank holding company" means a corporation that
15 (a) owns 100% of the issued and outstanding shares of each
16 class of stock of a State bank, (b) has no other subsidiaries,
17 and (c) 100% of the issued and outstanding shares of the
18 corporation are owned by a parent bank holding company.
19     "Municipality" means any municipality, political
20 subdivision, school district, taxing district, or agency.
21     "National bank" means a national banking association
22 located in this State and after May 31, 1997, means a national
23 banking association without regard to its location.
24     "Out-of-state bank" means a bank chartered under the laws
25 of a state other than Illinois, a territory of the United
26 States, or the District of Columbia.

 

 

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1     "Parent bank holding company" means a corporation that is a
2 bank holding company as that term is defined in the Illinois
3 Bank Holding Company Act of 1957 and owns 100% of the issued
4 and outstanding shares of a mid-tier bank holding company.
5     "Person" means an individual, corporation, limited
6 liability company, partnership, joint venture, trust, estate,
7 or unincorporated association.
8     "Public agency" means the State of Illinois, the various
9 counties, townships, cities, towns, villages, school
10 districts, educational service regions, special road
11 districts, public water supply districts, fire protection
12 districts, drainage districts, levee districts, sewer
13 districts, housing authorities, the Illinois Bank Examiners'
14 Education Foundation, the Chicago Park District, and all other
15 political corporations or subdivisions of the State of
16 Illinois, whether now or hereafter created, whether herein
17 specifically mentioned or not, and shall also include any other
18 state or any political corporation or subdivision of another
19 state.
20     "Public funds" or "public money" means current operating
21 funds, special funds, interest and sinking funds, and funds of
22 any kind or character belonging to, in the custody of, or
23 subject to the control or regulation of the United States or a
24 public agency. "Public funds" or "public money" shall include
25 funds held by any of the officers, agents, or employees of the
26 United States or of a public agency in the course of their

 

 

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1 official duties and, with respect to public money of the United
2 States, shall include Postal Savings funds.
3     "Published" means, unless the context requires otherwise,
4 the publishing of the notice or instrument referred to in some
5 newspaper of general circulation in the community in which the
6 bank is located at least once each week for 3 successive weeks.
7 Publishing shall be accomplished by, and at the expense of, the
8 bank required to publish. Where publishing is required, the
9 bank shall submit to the Commissioner that evidence of the
10 publication as the Commissioner shall deem appropriate.
11     "Qualified financial contract" means any security
12 contract, commodity contract, forward contract, including spot
13 and forward foreign exchange contracts, repurchase agreement,
14 swap agreement, and any similar agreement, any option to enter
15 into any such agreement, including any combination of the
16 foregoing, and any master agreement for such agreements. A
17 master agreement, together with all supplements thereto, shall
18 be treated as one qualified financial contract. The contract,
19 option, agreement, or combination of contracts, options, or
20 agreements shall be reflected upon the books, accounts, or
21 records of the bank, or a party to the contract shall provide
22 documentary evidence of such agreement.
23     "Recorded" means the filing or recording of the notice or
24 instrument referred to in the office of the Recorder of the
25 county wherein the bank is located.
26     "Resulting bank" means the bank resulting from a merger or

 

 

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1 conversion.
2     "Secretary" means the Secretary of Financial and
3 Professional Regulation, or a person authorized by the
4 Secretary or by this Act to act in the Secretary's stead.
5     "Securities" means stocks, bonds, debentures, notes, or
6 other similar obligations.
7     "Stand-by letter of credit" means a letter of credit under
8 which drafts are payable upon the condition the customer has
9 defaulted in performance of a duty, liability, or obligation.
10     "State bank" means any banking corporation that has a
11 banking charter issued by the Commissioner under this Act.
12     "State Banking Board" means the State Banking Board of
13 Illinois.
14     "Subsidiary" with respect to a specified company means a
15 company that is controlled by the specified company. For
16 purposes of paragraphs (8) and (12) of Section 5 of this Act,
17 "control" means the exercise of operational or managerial
18 control of a corporation by the bank, either alone or together
19 with other affiliates of the bank.
20     "Surplus" means the aggregate of (i) amounts paid in excess
21 of the par value of capital stock and preferred stock; (ii)
22 amounts contributed other than for capital stock and preferred
23 stock and allocated to the surplus account; and (iii) amounts
24 transferred from undivided profits.
25     "Tier 1 Capital" and "Tier 2 Capital" have the meanings
26 assigned to those terms in regulations promulgated for the

 

 

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1 appropriate federal banking agency of a state bank, as those
2 regulations are now or hereafter amended.
3     "Trust company" means a limited liability company or
4 corporation incorporated in this State for the purpose of
5 accepting and executing trusts.
6     "Undivided profits" means undistributed earnings less
7 discretionary transfers to surplus.
8     "Unimpaired capital and unimpaired surplus", for the
9 purposes of paragraph (21) of Section 5 and Sections 32, 33,
10 34, 35.1, 35.2, and 47 of this Act means the sum of the state
11 bank's Tier 1 Capital and Tier 2 Capital plus such other
12 shareholder equity as may be included by regulation of the
13 Commissioner. Unimpaired capital and unimpaired surplus shall
14 be calculated on the basis of the date of the last quarterly
15 call report filed with the Commissioner preceding the date of
16 the transaction for which the calculation is made, provided
17 that: (i) when a material event occurs after the date of the
18 last quarterly call report filed with the Commissioner that
19 reduces or increases the bank's unimpaired capital and
20 unimpaired surplus by 10% or more, then the unimpaired capital
21 and unimpaired surplus shall be calculated from the date of the
22 material event for a transaction conducted after the date of
23 the material event; and (ii) if the Commissioner determines for
24 safety and soundness reasons that a state bank should calculate
25 unimpaired capital and unimpaired surplus more frequently than
26 provided by this paragraph, the Commissioner may by written

 

 

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1 notice direct the bank to calculate unimpaired capital and
2 unimpaired surplus at a more frequent interval. In the case of
3 a state bank newly chartered under Section 13 or a state bank
4 resulting from a merger, consolidation, or conversion under
5 Sections 21 through 26 for which no preceding quarterly call
6 report has been filed with the Commissioner, unimpaired capital
7 and unimpaired surplus shall be calculated for the first
8 calendar quarter on the basis of the effective date of the
9 charter, merger, consolidation, or conversion.
10 (Source: P.A. 95-924, eff. 8-26-08; 95-1047, eff. 4-6-09;
11 revised 4-14-09.)
 
12     (205 ILCS 5/48)  (from Ch. 17, par. 359)
13     Sec. 48. Secretary's powers; duties. The Secretary shall
14 have the powers and authority, and is charged with the duties
15 and responsibilities designated in this Act, and a State bank
16 shall not be subject to any other visitorial power other than
17 as authorized by this Act, except those vested in the courts,
18 or upon prior consultation with the Secretary, a foreign bank
19 regulator with an appropriate supervisory interest in the
20 parent or affiliate of a state bank. In the performance of the
21 Secretary's duties:
22     (1) The Commissioner shall call for statements from all
23 State banks as provided in Section 47 at least one time during
24 each calendar quarter.
25     (2) (a) The Commissioner, as often as the Commissioner

 

 

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1 shall deem necessary or proper, and no less frequently than 18
2 months following the preceding examination, shall appoint a
3 suitable person or persons to make an examination of the
4 affairs of every State bank, except that for every eligible
5 State bank, as defined by regulation, the Commissioner in lieu
6 of the examination may accept on an alternating basis the
7 examination made by the eligible State bank's appropriate
8 federal banking agency pursuant to Section 111 of the Federal
9 Deposit Insurance Corporation Improvement Act of 1991,
10 provided the appropriate federal banking agency has made such
11 an examination. A person so appointed shall not be a
12 stockholder or officer or employee of any bank which that
13 person may be directed to examine, and shall have powers to
14 make a thorough examination into all the affairs of the bank
15 and in so doing to examine any of the officers or agents or
16 employees thereof on oath and shall make a full and detailed
17 report of the condition of the bank to the Commissioner. In
18 making the examination the examiners shall include an
19 examination of the affairs of all the affiliates of the bank,
20 as defined in subsection (b) of Section 35.2 of this Act, or
21 subsidiaries of the bank as shall be necessary to disclose
22 fully the conditions of the subsidiaries or affiliates, the
23 relations between the bank and the subsidiaries or affiliates
24 and the effect of those relations upon the affairs of the bank,
25 and in connection therewith shall have power to examine any of
26 the officers, directors, agents, or employees of the

 

 

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

 

 

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

 

 

09600SB2101sam004 - 22 - LRB096 11443 MJR 30006 a

1     one-fourth of the sum of the annual fixed fee of $800, plus
2     a variable fee based on the assets shown on the quarterly
3     statement of condition delivered to the Secretary in
4     accordance with Section 47 for the preceding quarter
5     according to the following schedule: 16˘ per $1,000 of the
6     first $5,000,000 of total assets, 15˘ per $1,000 of the
7     next $20,000,000 of total assets, 13˘ per $1,000 of the
8     next $75,000,000 of total assets, 9˘ per $1,000 of the next
9     $400,000,000 of total assets, 7˘ per $1,000 of the next
10     $500,000,000 of total assets, and 5˘ per $1,000 of all
11     assets in excess of $1,000,000,000, of the State bank. The
12     Call Report Fee shall be calculated by the Secretary and
13     billed to the banks for remittance at the time of the
14     quarterly statements of condition provided for in Section
15     47. The Secretary may require payment of the fees provided
16     in this Section by an electronic transfer of funds or an
17     automatic debit of an account of each of the State banks.
18     In case more than one examination of any bank is deemed by
19     the Secretary to be necessary in any examination frequency
20     cycle specified in subsection 2(a) of this Section, and is
21     performed at his direction, the Secretary may assess a
22     reasonable additional fee to recover the cost of the
23     additional examination; provided, however, that an
24     examination conducted at the request of the State Treasurer
25     pursuant to the Uniform Disposition of Unclaimed Property
26     Act shall not be deemed to be an additional examination

 

 

09600SB2101sam004 - 23 - LRB096 11443 MJR 30006 a

1     under this Section. In lieu of the method and amounts set
2     forth in this paragraph (a) for the calculation of the Call
3     Report Fee, the Secretary may specify by rule that the Call
4     Report Fees provided by this Section may be assessed
5     semiannually or some other period and may provide in the
6     rule the formula to be used for calculating and assessing
7     the periodic Call Report Fees to be paid by State banks.
8         (a-1) If in the opinion of the Commissioner an
9     emergency exists or appears likely, the Commissioner may
10     assign an examiner or examiners to monitor the affairs of a
11     State bank with whatever frequency he deems appropriate,
12     including but not limited to a daily basis. The reasonable
13     and necessary expenses of the Commissioner during the
14     period of the monitoring shall be borne by the subject
15     bank. The Commissioner shall furnish the State bank a
16     statement of time and expenses if requested to do so within
17     30 days of the conclusion of the monitoring period.
18         (a-2) On and after January 1, 1990, the reasonable and
19     necessary expenses of the Commissioner during examination
20     of the performance of electronic data processing services
21     under subsection (2.5) shall be borne by the banks for
22     which the services are provided. An amount, based upon a
23     fee structure prescribed by the Commissioner, shall be paid
24     by the banks or, after May 31, 1997, branches of
25     out-of-state banks receiving the electronic data
26     processing services along with the Call Report Fee assessed

 

 

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

 

 

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1     aggregate of all fees collected for that year by the
2     Commissioner under the Corporate Fiduciary Act, excluding
3     the receivership fees provided for in Section 5-10 of the
4     Corporate Fiduciary Act, and the Foreign Banking Office
5     Act. The aggregate amount of the contingent fee thus
6     arrived at for any fiscal year shall be apportioned
7     amongst, assessed upon, and paid by the State banks and
8     foreign banking corporations, respectively, in the same
9     proportion that the fee of each under paragraph (a) of
10     subsection (3), respectively, for that year bears to the
11     aggregate for that year of the fees collected under
12     paragraph (a) of subsection (3). The aggregate amount of
13     the contingent fee, and the portion thereof to be assessed
14     upon each State bank and foreign banking corporation,
15     respectively, shall be determined by the Commissioner and
16     shall be paid by each, respectively, within 120 days of the
17     close of the period for which the contingent fee is
18     computed and is payable, and the Commissioner shall give 20
19     days advance notice of the amount of the contingent fee
20     payable by the State bank and of the date fixed by the
21     Commissioner for payment of the fee.
22         (c) The "administration expenses" for any fiscal year
23     shall mean the ordinary and contingent expenses for that
24     year incident to making the examinations provided for by,
25     and for otherwise administering, this Act, the Corporate
26     Fiduciary Act, excluding the expenses paid from the

 

 

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1     Corporate Fiduciary Receivership account in the Bank and
2     Trust Company Fund, the Foreign Banking Office Act, the
3     Electronic Fund Transfer Act, and the Illinois Bank
4     Examiners' Education Foundation Act, including all
5     salaries and other compensation paid for personal services
6     rendered for the State by officers or employees of the
7     State, including the Commissioner and the Deputy
8     Commissioners, all expenditures for telephone and
9     telegraph charges, postage and postal charges, office
10     stationery, supplies and services, and office furniture
11     and equipment, including typewriters and copying and
12     duplicating machines and filing equipment, surety bond
13     premiums, and travel expenses of those officers and
14     employees, employees, expenditures or charges for the
15     acquisition, enlargement or improvement of, or for the use
16     of, any office space, building, or structure, or
17     expenditures for the maintenance thereof or for furnishing
18     heat, light, or power with respect thereto, all to the
19     extent that those expenditures are directly incidental to
20     such examinations or administration. The Commissioner
21     shall not be required by paragraphs (c) or (d-1) of this
22     subsection (3) to maintain in any fiscal year's budget
23     appropriated reserves for accrued vacation and accrued
24     sick leave that is required to be paid to employees of the
25     Commissioner upon termination of their service with the
26     Commissioner in an amount that is more than is reasonably

 

 

09600SB2101sam004 - 27 - LRB096 11443 MJR 30006 a

1     anticipated to be necessary for any anticipated turnover in
2     employees, whether due to normal attrition or due to
3     layoffs, terminations, or resignations.
4         (d) The aggregate of all fees collected by the
5     Secretary under this Act, the Corporate Fiduciary Act, or
6     the Foreign Banking Office Act on and after July 1, 1979,
7     shall be paid promptly after receipt of the same,
8     accompanied by a detailed statement thereof, into the State
9     treasury and shall be set apart in a special fund to be
10     known as the "Bank and Trust Company Fund", except as
11     provided in paragraph (c) of subsection (11) of this
12     Section. All earnings received from investments of funds in
13     the Bank and Trust Company Fund shall be deposited in the
14     Bank and Trust Company Fund and may be used for the same
15     purposes as fees deposited in that Fund. The amount from
16     time to time deposited into the Bank and Trust Company Fund
17     shall be used: (i) to offset the ordinary administrative
18     expenses of the Secretary as defined in this Section or
19     (ii) as a credit against fees under paragraph (d-1) of this
20     subsection (3). Nothing in this amendatory Act of 1979
21     shall prevent continuing the practice of paying expenses
22     involving salaries, retirement, social security, and
23     State-paid insurance premiums of State officers by
24     appropriations from the General Revenue Fund. However, the
25     General Revenue Fund shall be reimbursed for those payments
26     made on and after July 1, 1979, by an annual transfer of

 

 

09600SB2101sam004 - 28 - LRB096 11443 MJR 30006 a

1     funds from the Bank and Trust Company Fund. Moneys in the
2     Bank and Trust Company Fund may be transferred to the
3     Professions Indirect Cost Fund, as authorized under
4     Section 2105-300 of the Department of Professional
5     Regulation Law of the Civil Administrative Code of
6     Illinois.
7         Notwithstanding provisions in the State Finance Act,
8     as now or hereafter amended, or any other law to the
9     contrary, the sum of $18,788,847 shall be transferred from
10     the Bank and Trust Company Fund to the Financial
11     Institutions Settlement of 2008 Fund on the effective date
12     of this amendatory Act of the 95th General Assembly, or as
13     soon thereafter as practical.
14         Notwithstanding provisions in the State Finance Act,
15     as now or hereafter amended, or any other law to the
16     contrary, the Governor may, during any fiscal year through
17     January 10, 2011, from time to time direct the State
18     Treasurer and Comptroller to transfer a specified sum not
19     exceeding 10% of the revenues to be deposited into the Bank
20     and Trust Company Fund during that fiscal year from that
21     Fund to the General Revenue Fund in order to help defray
22     the State's operating costs for the fiscal year.
23     Notwithstanding provisions in the State Finance Act, as now
24     or hereafter amended, or any other law to the contrary, the
25     total sum transferred during any fiscal year through
26     January 10, 2011, from the Bank and Trust Company Fund to

 

 

09600SB2101sam004 - 29 - LRB096 11443 MJR 30006 a

1     the General Revenue Fund pursuant to this provision shall
2     not exceed during any fiscal year 10% of the revenues to be
3     deposited into the Bank and Trust Company Fund during that
4     fiscal year. The State Treasurer and Comptroller shall
5     transfer the amounts designated under this Section as soon
6     as may be practicable after receiving the direction to
7     transfer from the Governor.
8         (d-1) Adequate funds shall be available in the Bank and
9     Trust Company Fund to permit the timely payment of
10     administration expenses. In each fiscal year the total
11     administration expenses shall be deducted from the total
12     fees collected by the Commissioner and the remainder
13     transferred into the Cash Flow Reserve Account, unless the
14     balance of the Cash Flow Reserve Account prior to the
15     transfer equals or exceeds one-fourth of the total initial
16     appropriations from the Bank and Trust Company Fund for the
17     subsequent year, in which case the remainder shall be
18     credited to State banks and foreign banking corporations
19     and applied against their fees for the subsequent year. The
20     amount credited to each State bank and foreign banking
21     corporation shall be in the same proportion as the Call
22     Report Fees paid by each for the year bear to the total
23     Call Report Fees collected for the year. If, after a
24     transfer to the Cash Flow Reserve Account is made or if no
25     remainder is available for transfer, the balance of the
26     Cash Flow Reserve Account is less than one-fourth of the

 

 

09600SB2101sam004 - 30 - LRB096 11443 MJR 30006 a

1     total initial appropriations for the subsequent year and
2     the amount transferred is less than 5% of the total Call
3     Report Fees for the year, additional amounts needed to make
4     the transfer equal to 5% of the total Call Report Fees for
5     the year shall be apportioned amongst, assessed upon, and
6     paid by the State banks and foreign banking corporations in
7     the same proportion that the Call Report Fees of each,
8     respectively, for the year bear to the total Call Report
9     Fees collected for the year. The additional amounts
10     assessed shall be transferred into the Cash Flow Reserve
11     Account. For purposes of this paragraph (d-1), the
12     calculation of the fees collected by the Commissioner shall
13     exclude the receivership fees provided for in Section 5-10
14     of the Corporate Fiduciary Act.
15         (e) The Commissioner may upon request certify to any
16     public record in his keeping and shall have authority to
17     levy a reasonable charge for issuing certifications of any
18     public record in his keeping.
19         (f) In addition to fees authorized elsewhere in this
20     Act, the Commissioner may, in connection with a review,
21     approval, or provision of a service, levy a reasonable
22     charge to recover the cost of the review, approval, or
23     service.
24     (4) Nothing contained in this Act shall be construed to
25 limit the obligation relative to examinations and reports of
26 any State bank, deposits in which are to any extent insured by

 

 

09600SB2101sam004 - 31 - LRB096 11443 MJR 30006 a

1 the United States or any agency thereof, nor to limit in any
2 way the powers of the Commissioner with reference to
3 examinations and reports of that bank.
4     (5) The nature and condition of the assets in or investment
5 of any bonus, pension, or profit sharing plan for officers or
6 employees of every State bank or, after May 31, 1997, branch of
7 an out-of-state bank shall be deemed to be included in the
8 affairs of that State bank or branch of an out-of-state bank
9 subject to examination by the Commissioner under the provisions
10 of subsection (2) of this Section, and if the Commissioner
11 shall find from an examination that the condition of or
12 operation of the investments or assets of the plan is unlawful,
13 fraudulent, or unsafe, or that any trustee has abused his
14 trust, the Commissioner shall, if the situation so found by the
15 Commissioner shall not be corrected to his satisfaction within
16 60 days after the Commissioner has given notice to the board of
17 directors of the State bank or out-of-state bank of his
18 findings, report the facts to the Attorney General who shall
19 thereupon institute proceedings against the State bank or
20 out-of-state bank, the board of directors thereof, or the
21 trustees under such plan as the nature of the case may require.
22     (6) The Commissioner shall have the power:
23         (a) To promulgate reasonable rules for the purpose of
24     administering the provisions of this Act.
25         (a-5) To impose conditions on any approval issued by
26     the Commissioner if he determines that the conditions are

 

 

09600SB2101sam004 - 32 - LRB096 11443 MJR 30006 a

1     necessary or appropriate. These conditions shall be
2     imposed in writing and shall continue in effect for the
3     period prescribed by the Commissioner.
4         (b) To issue orders against any person, if the
5     Commissioner has reasonable cause to believe that an unsafe
6     or unsound banking practice has occurred, is occurring, or
7     is about to occur, if any person has violated, is
8     violating, or is about to violate any law, rule, or written
9     agreement with the Commissioner, or for the purpose of
10     administering the provisions of this Act and any rule
11     promulgated in accordance with this Act.
12         (b-1) To enter into agreements with a bank establishing
13     a program to correct the condition of the bank or its
14     practices.
15         (c) To appoint hearing officers to execute any of the
16     powers granted to the Commissioner under this Section for
17     the purpose of administering this Act and any rule
18     promulgated in accordance with this Act and otherwise to
19     authorize, in writing, an officer or employee of the Office
20     of Banks and Real Estate to exercise his powers under this
21     Act.
22         (d) To subpoena witnesses, to compel their attendance,
23     to administer an oath, to examine any person under oath,
24     and to require the production of any relevant books,
25     papers, accounts, and documents in the course of and
26     pursuant to any investigation being conducted, or any

 

 

09600SB2101sam004 - 33 - LRB096 11443 MJR 30006 a

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

 

 

09600SB2101sam004 - 34 - LRB096 11443 MJR 30006 a

1 subsidiary or bank holding company of the bank, violated any
2 law, rule, or order relating to that State bank or any
3 subsidiary or bank holding company of the bank, obstructed or
4 impeded any examination or investigation by the Secretary
5 Commissioner, engaged in an unsafe or unsound practice in
6 conducting the business of that bank or any subsidiary or bank
7 holding company of the bank, or violated any law or engaged or
8 participated in any unsafe or unsound practice in connection
9 with any financial institution or other business entity such
10 that the character and fitness of the director, officer,
11 employee, or agent would not have assured reasonable promise of
12 safe and sound operation of the State bank, the Secretary
13 Commissioner may issue an order prohibiting that person from
14 further service with a bank or any subsidiary or bank holding
15 company of the bank as a director, officer, employee, or agent.
16 An order issued pursuant to this subsection shall be served
17 upon the director, officer, employee, or agent. A copy of the
18 order shall be sent to each director of the bank affected by
19 registered mail. The person affected by the action may request
20 a hearing before the State Banking Board within 10 days after
21 receipt of the order. The hearing shall be held by the Board
22 within 30 days after the request has been received by the
23 Board. The Board shall make a determination approving,
24 modifying, or disapproving the order of the Commissioner as its
25 final administrative decision. If a hearing is held by the
26 Board, the Board shall make its determination within 60 days

 

 

09600SB2101sam004 - 35 - LRB096 11443 MJR 30006 a

1 from the conclusion of the hearing. Any person affected by a
2 decision of the Board under this subsection (7) of Section 48
3 of this Act may have the decision reviewed only under and in
4 accordance with the Administrative Review Law and the rules
5 adopted pursuant thereto. A copy of the order shall also be
6 served upon the bank of which he is a director, officer,
7 employee, or agent, whereupon he shall cease to be a director,
8 officer, employee, or agent of that bank. The Secretary
9 Commissioner may institute a civil action against the director,
10 officer, or agent of the State bank or, after May 31, 1997, of
11 the branch of the out-of-state bank against whom any order
12 provided for by this subsection (7) of this Section 48 has been
13 issued, and against the State bank or, after May 31, 1997,
14 out-of-state bank, to enforce compliance with or to enjoin any
15 violation of the terms of the order. Any person who has been
16 the subject of an order of removal or an order of prohibition
17 issued by the Secretary Commissioner under this subsection or
18 Section 5-6 of the Corporate Fiduciary Act may not thereafter
19 serve as director, officer, employee, or agent of any State
20 bank or of any branch of any out-of-state bank, or of any
21 corporate fiduciary, as defined in Section 1-5.05 of the
22 Corporate Fiduciary Act, or of any other entity that is subject
23 to licensure or regulation by the Division of Banking
24 Commissioner or the Office of Banks and Real Estate unless the
25 Secretary Commissioner has granted prior approval in writing.
26     For purposes of this paragraph (7), "bank holding company"

 

 

09600SB2101sam004 - 36 - LRB096 11443 MJR 30006 a

1 has the meaning prescribed in Section 2 of the Illinois Bank
2 Holding Company Act of 1957.
3     (8) The Commissioner may impose civil penalties of up to
4 $10,000 against any person for each violation of any provision
5 of this Act, any rule promulgated in accordance with this Act,
6 any order of the Commissioner, or any other action which in the
7 Commissioner's discretion is an unsafe or unsound banking
8 practice.
9     (9) The Commissioner may impose civil penalties of up to
10 $100 against any person for the first failure to comply with
11 reporting requirements set forth in the report of examination
12 of the bank and up to $200 for the second and subsequent
13 failures to comply with those reporting requirements.
14     (10) All final administrative decisions of the
15 Commissioner hereunder shall be subject to judicial review
16 pursuant to the provisions of the Administrative Review Law.
17 For matters involving administrative review, venue shall be in
18 either Sangamon County or Cook County.
19     (11) The endowment fund for the Illinois Bank Examiners'
20 Education Foundation shall be administered as follows:
21         (a) (Blank).
22         (b) The Foundation is empowered to receive voluntary
23     contributions, gifts, grants, bequests, and donations on
24     behalf of the Illinois Bank Examiners' Education
25     Foundation from national banks and other persons for the
26     purpose of funding the endowment of the Illinois Bank

 

 

09600SB2101sam004 - 37 - LRB096 11443 MJR 30006 a

1     Examiners' Education Foundation.
2         (c) The aggregate of all special educational fees
3     collected by the Secretary Commissioner and property
4     received by the Secretary Commissioner on behalf of the
5     Illinois Bank Examiners' Education Foundation under this
6     subsection (11) on or after June 30, 1986, shall be either
7     (i) promptly paid after receipt of the same, accompanied by
8     a detailed statement thereof, into the State Treasury and
9     shall be set apart in a special fund to be known as "The
10     Illinois Bank Examiners' Education Fund" to be invested by
11     either the Treasurer of the State of Illinois in the Public
12     Treasurers' Investment Pool or in any other investment he
13     is authorized to make or by the Illinois State Board of
14     Investment as the State Banking Board of Illinois board of
15     trustees of the Illinois Bank Examiners' Education
16     Foundation may direct or (ii) deposited into an account
17     maintained in a commercial bank or corporate fiduciary in
18     the name of the Illinois Bank Examiners' Education
19     Foundation pursuant to the order and direction of the Board
20     of Trustees of the Illinois Bank Examiners' Education
21     Foundation.
22     (12) (Blank).
23 (Source: P.A. 94-91, eff. 7-1-05; 95-1047, eff. 4-6-09.)
 
24     (205 ILCS 5/78)  (from Ch. 17, par. 390)
25     Sec. 78. Board of banks and trust companies; creation,

 

 

09600SB2101sam004 - 38 - LRB096 11443 MJR 30006 a

1 members, appointment. There is created a Board which shall be
2 known as the State Banking Board of Illinois which shall
3 consist of the Director of Banking Commissioner, who shall be
4 its chairman, and 11 16 additional members. The Board shall be
5 comprised of individuals interested in the banking industry.
6 Two members shall be from State banks having total assets of
7 not more than $75,000,000 at the time of their appointment; 2
8 members shall be from State banks having total assets of more
9 than $75,000,000, but not more than $150,000,000 at the time of
10 their appointment; 2 members shall be from State banks having
11 total assets of more than $150,000,000, but not more than
12 $500,000,000 at the time of their appointment; 2 members shall
13 be from State banks having total assets of more than
14 $500,000,000, but not more than $2,000,000,000 at the time of
15 their appointment, and one member shall be from a State bank
16 having total assets of more than $2,000,000,000 at the time of
17 his or her appointment. There shall be 2 public members,
18 neither of whom shall be an officer or director of or owner,
19 whether directly or indirectly, of more than 5% of the
20 outstanding capital stock of any bank. divided into 3 classes
21 designated Class A members, Class B members, and Class C
22 members who are appointed by the Governor by and with the
23 advice and consent of the Senate and made up as follows:
24     Class A shall consist of 4 persons, none of whom shall be
25 an officer or director of or owner, whether direct or indirect,
26 of more than 5% of the outstanding capital stock of any bank.

 

 

09600SB2101sam004 - 39 - LRB096 11443 MJR 30006 a

1     Class B shall consist of 10 persons who at the time of
2 their respective appointments shall have had not less than 10
3 years banking experience. Of the 10 Class B members, 2 shall be
4 from State banks having total assets of not more than
5 $20,000,000 at the time of their appointment, 2 shall be from
6 State banks having total assets of more than $20,000,000 but
7 not more than $50,000,000 at the time of their appointment, 2
8 shall be from State banks having total assets of more than
9 $50,000,000, but not more than $125,000,000 at the time of
10 their appointment, one shall be from a State bank having total
11 assets of more than $125,000,000 but not more than $250,000,000
12 at the time of appointment, one shall be from a State bank
13 having total assets of more than $250,000,000 but not more than
14 $1,000,000,000 at the time of appointment, one shall be from a
15 State bank having total assets of more than $1,000,000,000 at
16 the time of appointment and one shall be from a foreign banking
17 corporation certificated pursuant to the Foreign Banking
18 Office Act.
19     Class C shall consist of 2 persons who shall be at-large
20 members representing the banking industry generally.
21 (Source: P.A. 91-798, eff. 7-9-00.)
 
22     (205 ILCS 5/79)  (from Ch. 17, par. 391)
23     Sec. 79. Board, terms of office. The terms of office of the
24 Class A and Class B members of the State Banking Board of
25 Illinois shall be 4 years, except that the initial Board

 

 

09600SB2101sam004 - 40 - LRB096 11443 MJR 30006 a

1 appointments shall be staggered with the Governor initially
2 appointing, with advice and consent of the Senate, 3 members to
3 serve 2-year terms, 4 members to serve 3-year terms, and 4
4 members to serve 4-year terms. Members shall continue to serve
5 on the Board until their replacement is appointed and
6 qualified. Vacancies shall be filled by appointment by the
7 Governor with advice and consent of the Senate. Board of Banks
8 and Trust Companies who are in office on the effective date of
9 this Amendatory Act of 1985 shall expire on December 31, 1985.
10 The terms of office of Class A, Class B, and Class C members of
11 the State Banking Board shall be as follows:
12     (a) The terms of office of all Class A and Class B members
13 of the State Banking Board shall begin on January 1, 1986.
14     (b) The persons first appointed as the Class A members of
15 the State Banking Board shall have the following terms as
16 designated by the Governor; one person for a term of one year,
17 one person for a term of 2 years, one person for a term of 3
18 years and one person for a term of 4 years. Thereafter, the
19 term of office of each Class A member shall be 4 years, except
20 that an appointment to fill a vacancy shall be for the
21 unexpired term of the member whose term is being filled.
22     (c) The persons first appointed as Class B members of the
23 State Banking Board shall have the following terms as
24 designated by the Governor; one member for a term of one year,
25 3 members for a term of 2 years, 3 members for a term of 3
26 years, and 3 members for a term of 4 years. Thereafter, the

 

 

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1 term of office of each Class B member shall be 4 years, except
2 that an appointment to fill a vacancy shall be for the
3 unexpired term of the member whose term is being filled.
4     (c-5) The initial term of office of each Class C member of
5 the State Banking Board appointed pursuant to this amendatory
6 Act of the 91st General Assembly shall expire on January 1,
7 2004. Thereafter, the term of office of each Class C member
8 shall be 4 years, except that an appointment to fill a vacancy
9 shall be for the unexpired term of the member whose term is
10 being filled.
11     (d) No Class A, Class B, or Class C State Banking Board
12 member shall serve more than 2 full 4-year terms of office.
13     (e) The term of office of a State Banking Board member
14 shall terminate automatically when the member no longer meets
15 the qualifications for the member's appointment to the Board
16 provided that an increase or decrease in the asset size of the
17 member's bank during the member's term of office on the State
18 Banking Board shall not result in the termination of the
19 member's term of office.
20 (Source: P.A. 90-301, eff. 8-1-97; 91-798, eff. 7-9-00.)
 
21     (205 ILCS 5/80)  (from Ch. 17, par. 392)
22     Sec. 80. Board; powers. The Board shall have the following
23 powers in addition to any others that may be granted to it by
24 law:
25     (a) (Blank). To make, alter, and amend rules and

 

 

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1 regulations proposed for adoption by the Commissioner with
2 respect to the following matters:
3         (i) The scope and nature of showings to be furnished
4     and evidence to be presented in connection with the
5     granting of charters of new banks, and in connection with
6     the approval by the Commissioner of mergers, conversions,
7     consolidations and changes of location, and the forms upon
8     which any of such showings may be made.
9         (ii) The steps to be taken and the showings to be
10     furnished in connection with voluntary dissolutions under
11     Sections 68 to 74, inclusive, of this Act, and the forms
12     upon which such showing are to be made.
13         (iii) The form, content and nature of the reports to be
14     furnished to the Commissioner under Section 47 of this Act,
15     and the definition of the scope of examinations and the
16     data to be furnished in connection with examinations by the
17     Commissioner under subsection (2) and subsection (5) of
18     Section 48 of this Act.
19     (b) To review, consider, and make recommendations to the
20 Director of Banking Commissioner upon any banking matters.
21     (c) (Blank). To require the Commissioner to report
22 periodically to the Board on any banking matters, including the
23 following:
24         (i) Data with respect to banks whose condition or
25     practices are being critically considered or reviewed by
26     the Commissioner pursuant to Section 51 of this Act, and

 

 

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1     data with respect to banks to which any notice has been
2     given by the Commissioner pursuant to said Section 51; and
3         (ii) The extent and nature of all disciplinary action
4     taken by the Commissioner against any bank or any officer
5     or director thereof, and information with respect to the
6     manner or extent of the remedial action, if any, taken by
7     the criticized bank or director or officer; and
8         (iii) The extent and nature of all action taken by the
9     Commissioner under or pursuant to Section 52 of this Act;
10     and
11         (iv) The extent and nature of all action taken by the
12     Commissioner under or pursuant to Section 31 of this Act.
13     (d) (Blank). To require the Commissioner to furnish the
14 Board reports in respect of the granting or of the denial of
15 new charters, mergers, changes of location, conversions or
16 consolidations, including the findings made and the basis for
17 the action taken by the Commissioner in connection therewith.
18     (e) To review, consider, and submit to the Director of
19 Banking Commissioner and to the Governor proposals for
20 amendments to this Act or for changes in or additions to the
21 administration thereof which in the opinion of the Board are
22 necessary or desirable in order to assure the safe and sound
23 conduct of the banking business.
24     (f) (Blank). To require the Commissioner to furnish the
25 Board space for meetings to be held by the Board as well as to
26 require the Commissioner to provide such clerical and technical

 

 

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1 assistance as the Board may require.
2     (g) To adopt its own by-laws with respect to Board meetings
3 and procedures. Such by-laws shall provide that:
4         (i) A majority of the whole Board constitutes a quorum.
5         (ii) A majority of the quorum shall constitute
6     effective action except that a vote of a majority of the
7     whole Board shall be necessary for the approval of rules
8     and regulations proposed for adoption by the Commissioner
9     under Section 80(a), (i), (ii) and (iii) of this Act and
10     shall be necessary for recommendations made to the Director
11     of Banking Commissioner and to the Governor with regard to
12     proposed amendments to this Act or to the administrative
13     practices hereunder.
14         (iii) The Board shall meet at least once in each
15     calendar year and upon the call of the Director of Banking
16     Commissioner or a majority of the Board. The Director of
17     Banking Commissioner or a majority of the Board may call
18     such special or additional meetings as may be deemed
19     necessary or desirable.
20     (h) (Blank). To make rules to regulate the method of
21 selecting candidates for consideration by the Governor to fill
22 a vacancy in the Office of the Commissioner and the deputy
23 commissioners.
24     (i) (Blank). To make rules to regulate the method of
25 selecting candidates for consideration by the Governor to fill
26 a vacancy in the office of any of the 10 Class B members of the

 

 

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1 Board.
2     (j) (Blank). To make rules to regulate the conduct of
3 hearings under subsection (7) of Section 48 of this Act.
4     (k) (Blank). To subpoena witnesses, to compel their
5 attendance, to administer an oath, to examine any person under
6 oath and to require the production of any relevant books,
7 papers, accounts and documents in the course of and pursuant to
8 any hearing being conducted under subsection (7) of Section 48
9 of this Act.
10     (l) (Blank). To appoint hearing officers to conduct
11 hearings under subsection (7) of Section 48 of this Act.
12     (m) To authorize the transfer of funds from the Illinois
13 Bank Examiners' Education Fund to the Bank and Trust Company
14 Fund. Any amount transferred shall be retransferred to the
15 Illinois Bank Examiners' Education Fund from the Bank and Trust
16 Company Fund within 3 years.
17     (n) To maintain and direct the investments of the Illinois
18 Bank Examiners' Education Fund.
19     (o) To evaluate various courses, programs, curricula, and
20 schools of continuing education and professional training that
21 are available from within the United States for State banking
22 department examination personnel and develop a program known as
23 the Illinois Bank Examiners' Education Program. The Board shall
24 determine which courses, programs, curricula, and schools will
25 be included in the Program to be funded by the Foundation.
26 (Source: P.A. 89-508, eff. 7-3-96.)
 

 

 

09600SB2101sam004 - 46 - LRB096 11443 MJR 30006 a

1     (205 ILCS 5/82)  (from Ch. 17, par. 394)
2     Sec. 82. Commissioner, board; civil liability. Neither the
3 Secretary, Director of Banking, Commissioner, any deputy
4 commissioner, any member of the Board of Banks and Trust
5 Companies, any member of the State Banking Board of Illinois,
6 nor any examiner, assistant examiner or other employee of the
7 Division of Banking Commissioner's office shall be subject to
8 any civil liability or penalty, whether for damages or
9 otherwise, on account of or for any action taken or omitted to
10 be taken in their respective official capacities, except when
11 such acts or omissions to act are corrupt or malicious or
12 unless such action is taken or omitted to be taken not in good
13 faith and without reasonable grounds.
14 (Source: P.A. 85-204.)
 
15     Section 15. The Illinois Bank Holding Company Act of 1957
16 is amended by changing Sections 2 and 3.074 as follows:
 
17     (205 ILCS 10/2)  (from Ch. 17, par. 2502)
18     Sec. 2. Unless the context requires otherwise:
19     (a) "Bank" means any national banking association or any
20 bank, banking association or savings bank, whether organized
21 under the laws of Illinois, another state, the United States,
22 the District of Columbia, any territory of the United States,
23 Puerto Rico, Guam, American Samoa or the Virgin Islands, which

 

 

09600SB2101sam004 - 47 - LRB096 11443 MJR 30006 a

1 (1) accepts deposits that the depositor has a legal right to
2 withdraw on demand by check or other negotiable order and (2)
3 engages in the business of making commercial loans. "Bank" does
4 not include any organization operating under Sections 25 or 25
5 (a) of the Federal Reserve Act, or any organization which does
6 not do business within the United States except as an incident
7 to its activities outside the United States or any foreign
8 bank.
9     (b) "Bank holding company" means any company that controls
10 or has control over any bank or over any company that is or
11 becomes a bank holding company by virtue of this Act.
12     (c) "Banking office" means the principal office of a bank,
13 any branch of a bank, or any other office at which a bank
14 accepts deposits, provided, however, that "banking office"
15 shall not mean:
16         (1) unmanned automatic teller machines, point of sale
17     terminals or other similar unmanned electronic banking
18     facilities at which deposits may be accepted; or
19         (2) offices located outside the United States.
20     (d) "Cause to be chartered", with respect to a specified
21 bank, means the acquisition of control of such bank prior to
22 the time it commences to engage in the banking business.
23     (e) "Commissioner" means the Commissioner of Banks and Real
24 Estate or a person authorized by the Commissioner, the Office
25 of Banks and Real Estate Act, or this Act to act in the
26 Commissioner's stead, except that beginning on the effective

 

 

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1 date of this amendatory Act of the 96th General Assembly, all
2 references in this Act to the Commissioner of Banks and Real
3 Estate are deemed, in appropriate contexts, to be references to
4 the Secretary of Financial and Professional Regulation.
5     (f) "Community" means the contiguous area served by the
6 banking offices of a bank, but need not be limited or expanded
7 to conform to the geographic boundaries of units of local
8 government.
9     (g) "Company" means any corporation, business trust,
10 voting trust, association, partnership, joint venture, similar
11 organization or any other trust unless by its terms it must
12 terminate within 25 years or not later than 21 years and 10
13 months after the death of individuals living on the effective
14 date of the trust, but shall not include (1) an individual or
15 (2) any corporation the majority of the shares of which are
16 owned by the United States or by any state or any corporation
17 or community chest fund, organized and operated exclusively for
18 religious, charitable, scientific, literary or educational
19 purposes, no part of the net earnings of which inure to the
20 benefit of any private shareholder or individual and no
21 substantial part of the activities of which is carrying on
22 propaganda or otherwise attempting to influence legislation.
23     (h) A company "controls or has control over" a bank or
24 company if (1) it directly or indirectly owns or controls or
25 has the power to vote, 25% or more of the voting shares of any
26 class of voting securities of such bank or company or (2) it

 

 

09600SB2101sam004 - 49 - LRB096 11443 MJR 30006 a

1 controls in any manner the election of a majority of the
2 directors or trustees of such bank or company or (3) a trustee
3 holds for the benefit of its shareholders, members or
4 employees, 25% or more of the voting shares of such bank or
5 company or (4) it directly or indirectly exercises a
6 controlling influence over the management or policies of such
7 bank or company that is a bank holding company and the Board of
8 Governors of the Federal Reserve System has so determined under
9 the federal Bank Holding Company Act. In determining whether
10 any company controls or has control over a bank or company: (i)
11 shares owned or controlled by any subsidiary of a company shall
12 be deemed to be indirectly owned or controlled by such company;
13 (ii) shares held or controlled, directly or indirectly, by a
14 trustee or trustees for the benefit of a company, the
15 shareholders or members of a company or the employees (whether
16 exclusively or not) of a company, shall be deemed to be
17 controlled by such company; and (iii) shares transferred,
18 directly or indirectly, by any bank holding company (or by any
19 company which, but for such transfer, would be a bank holding
20 company) to any transferee that is indebted to the transferor
21 or that has one or more officers, directors, trustees or
22 beneficiaries in common with or subject to control by the
23 transferor, shall be deemed to be indirectly owned or
24 controlled by the transferor unless the Board of Governors of
25 the Federal Reserve System has determined, under the federal
26 Bank Holding Company Act, that the transferor is not in fact

 

 

09600SB2101sam004 - 50 - LRB096 11443 MJR 30006 a

1 capable of controlling the transferee. Notwithstanding the
2 foregoing, no company shall be deemed to have control of or
3 over a bank or bank holding company (A) by virtue of its
4 ownership or control of shares in a fiduciary capacity arising
5 in the ordinary course of its business; (B) by virtue of its
6 ownership or control of shares acquired by it in connection
7 with its underwriting of securities which are held only for
8 such period of time as will permit the sale thereof upon a
9 reasonable basis; (C) by virtue of its holding any shares as
10 collateral taken in the ordinary course of securing a debt or
11 other obligation; (D) by virtue of its ownership or control of
12 shares acquired in the ordinary course of collecting a debt or
13 other obligation previously contracted in good faith, until 5
14 years after the date acquired; or (E) by virtue of its voting
15 rights with respect to shares of any bank or bank holding
16 company acquired in the course of a proxy solicitation in the
17 case of a company formed and operated for the sole purpose of
18 participating in a proxy solicitation.
19     (h-5) "Division of Banking" means the Division of Banking
20 of the Department of Financial and Professional Regulation.
21             (i) "Federal Bank Holding Company Act" means the
22         federal Bank Holding Company Act of 1956, as now or
23         hereafter amended.
24     (j) "Foreign bank" means any company organized under the
25 laws of a foreign country which engages in the business of
26 banking or any subsidiary or affiliate of any such company,

 

 

09600SB2101sam004 - 51 - LRB096 11443 MJR 30006 a

1 organized under such laws. "Foreign bank" includes, without
2 limitation, foreign merchant banks and other foreign
3 institutions that engage in banking activities usual in
4 connection with the business of banking in the countries where
5 such foreign institutions are organized or operating.
6     (k) "Home state" means the home state of a foreign bank as
7 determined pursuant to the federal International Banking Act of
8 1978.
9     (l) "Illinois bank" means a bank:
10         (1) that is organized under the laws of this State or
11     of the United States; and
12         (2) whose main banking premises is located in Illinois.
13     (m) "Illinois bank holding company" means a bank holding
14 company:
15         (1) whose principal place of business is Illinois; and
16         (2) that is not directly or indirectly controlled by
17     another bank holding company whose principal place of
18     business is a state other than Illinois or by a foreign
19     bank whose Home State is a state other than Illinois.
20     An out of state bank holding company that acquires control
21 of one or more Illinois banks or Illinois bank holding
22 companies pursuant to Sections 3.061 or 3.071 shall not be
23 deemed an Illinois bank holding company.
24     (n) "Main banking premises" means the location that is
25 designated in a bank's charter as its main office and that is
26 within the state in which the total deposits held by all of the

 

 

09600SB2101sam004 - 52 - LRB096 11443 MJR 30006 a

1 banking offices of such bank are the largest, as shown in the
2 most recent reports of condition or similar reports filed by
3 such bank with state or federal regulatory authorities.
4     (o) "Out of state bank" means a bank:
5         (1) that is not an Illinois bank; and
6         (2) whose main banking premises is located in a state
7     other than Illinois.
8     (p) "Out of state bank holding company" means a bank
9 holding company:
10         (1) that is not an Illinois bank holding company;
11         (2) whose principal place of business is a state other
12     than Illinois the laws of which expressly authorize the
13     acquisition by an Illinois bank holding company of a bank
14     or bank holding company in that state under qualifications
15     and conditions which are not unduly restrictive, as
16     determined by the Secretary Commissioner, when compared to
17     those imposed by the laws of Illinois.
18     (q) "Principal place of business" means, with respect to a
19 bank holding company, the state in which the total deposits
20 held by all of the banking offices of all of the bank
21 subsidiaries of such bank holding company are the largest, as
22 shown in the most recent reports of condition or similar
23 reports filed by the bank holding company's bank subsidiaries
24 with state or federal regulatory authorities.
25     (q-5) "Secretary" means the Secretary of Financial and
26 Professional Regulation, or a person authorized by the

 

 

09600SB2101sam004 - 53 - LRB096 11443 MJR 30006 a

1 Secretary or by this Act to act in the Secretary's stead.
2     (r) "State" or "states" when used in this Act means any
3 State of the United States, the District of Columbia, any
4 territory of the United States, Puerto Rico, Guam, American
5 Samoa or the Virgin Islands.
6     (s) "Subsidiary", with respect to a specified bank holding
7 company, means any bank or company controlled by such bank
8 holding company.
9 (Source: P.A. 89-508, eff. 7-3-96.)
 
10     (205 ILCS 10/3.074)  (from Ch. 17, par. 2510.04)
11     Sec. 3.074. Powers; administrative review.
12     (a) The Secretary Commissioner shall have the power and
13 authority:
14         (1) to promulgate reasonable procedural rules for the
15     purposes of administering the provisions of this Act. The
16     Secretary Commissioner shall specify the form of any
17     application, report or document that is required to be
18     filed with the Secretary Commissioner pursuant to this Act;
19         (2) to issue orders for the purpose of administering
20     the provisions of this Act and any rule promulgated in
21     accordance with this Act;
22         (3) to appoint hearing officers to execute any of the
23     powers granted to the Secretary Commissioner under this
24     Section for the purpose of administering this Act or any
25     rule promulgated in accordance with this Act; and

 

 

09600SB2101sam004 - 54 - LRB096 11443 MJR 30006 a

1         (4) to subpoena witnesses, to compel their attendance,
2     to administer an oath, to examine any person under oath and
3     to require the production of any relevant books, papers,
4     accounts and documents in the course of and pursuant to any
5     investigation or hearing being conducted or any action
6     being taken by the Secretary Commissioner in respect to any
7     matter relating to the duties imposed upon or the powers
8     vested in the Secretary Commissioner under the provisions
9     of this Act or any rule promulgated in accordance with this
10     Act.
11     (b) Whenever, in the opinion of the Secretary Commissioner,
12 any director, officer, employee, or agent of any bank holding
13 company or subsidiary or affiliate of that company shall have
14 violated any law, rule, or order relating to that bank holding
15 company or subsidiary or affiliate of that company, shall have
16 obstructed or impeded any examination or investigation by the
17 Secretary Commissioner, shall have engaged in an unsafe or
18 unsound practice in conducting the business of that bank
19 holding company or subsidiary or affiliate of that company, or
20 shall have violated any law or engaged or participated in any
21 unsafe or unsound practice in connection with any financial
22 institution or other business entity such that the character
23 and fitness of the director, officer, employee, or agent does
24 not assure reasonable promise of safe and sound operation of
25 the bank holding company, the Secretary Commissioner may issue
26 an order of removal. If, in the opinion of the Secretary

 

 

09600SB2101sam004 - 55 - LRB096 11443 MJR 30006 a

1 Commissioner, any former director, officer, employee, or agent
2 of a bank holding company or subsidiary or affiliate of that
3 company, prior to the termination of his or her service with
4 that holding company or subsidiary or affiliate of that
5 company, violated any law, rule, or order relating to that bank
6 holding company or subsidiary or affiliate of that company,
7 obstructed or impeded any examination or investigation by the
8 Secretary Commissioner, engaged in an unsafe or unsound
9 practice in conducting the business of that bank holding
10 company or subsidiary or affiliate of that company, or violated
11 any law or engaged or participated in any unsafe or unsound
12 practice in connection with any financial institution or other
13 business entity such that the character and fitness of the
14 director, officer, employee, or agent would not have assured
15 reasonable promise of safe and sound operation of the bank
16 holding company, the Secretary Commissioner may issue an order
17 prohibiting that person from further service with a bank
18 holding company or subsidiary or affiliate of that company as a
19 director, officer, employee, or agent.
20     An order issued pursuant to this subsection shall be served
21 upon the director, officer, employee, or agent. A copy of the
22 order shall be sent to each director of the bank holding
23 company affected by registered mail. The person affected by the
24 action may request a hearing before the State Banking Board
25 within 10 days after receipt of the order. The hearing shall be
26 held by the State Banking Board within 30 days after the

 

 

09600SB2101sam004 - 56 - LRB096 11443 MJR 30006 a

1 request has been received by the State Banking Board. The State
2 Banking Board shall make a determination approving, modifying,
3 or disapproving the order of the Commissioner as its final
4 administrative decision. If a hearing is held by the State
5 Banking Board, the State Banking Board shall make its
6 determination within 60 days from the conclusion of the
7 hearing. Any person affected by a decision of the State Banking
8 Board under this subsection may have the decision reviewed only
9 under and in accordance with the Administrative Review Law and
10 the rules adopted pursuant thereto. A copy of the order shall
11 also be served upon the bank holding company of which he is a
12 director, officer, employee, or agent, whereupon he shall cease
13 to be a director, officer, employee, or agent of that bank
14 holding company.
15     The Secretary Commissioner may institute a civil action
16 against the director, officer, employee, or agent of the bank
17 holding company, against whom any order provided for by this
18 subsection has been issued, to enforce compliance with or to
19 enjoin any violation of the terms of the order.
20     Any person who has been the subject of an order of removal
21 or an order of prohibition issued by the Secretary Commissioner
22 under this subsection, subdivision (7) of Section 48 of the
23 Illinois Banking Act, or Section 5-6 of the Corporate Fiduciary
24 Act may not thereafter serve as director, officer, employee, or
25 agent of any holding company, State bank, or branch of any
26 out-of-state bank, of any corporate fiduciary, as defined in

 

 

09600SB2101sam004 - 57 - LRB096 11443 MJR 30006 a

1 Section 1-5.05 of the Corporate Fiduciary Act, or of any other
2 entity that is subject to licensure or regulation by the
3 Division of Banking Commissioner or the Office of Banks and
4 Real Estate unless the Secretary Commissioner has granted prior
5 approval in writing.
6     (c) All final administrative decisions of the Secretary
7 Commissioner under this Act shall be subject to judicial review
8 pursuant to provisions of the Administrative Review Law. For
9 matters involving administrative review, venue shall be in
10 either Sangamon County or Cook County.
11 (Source: P.A. 92-483, eff. 8-23-01.)
 
12     Section 20. The Corporate Fiduciary Act is amended by
13 changing Sections 1-5.03, 5-6, and 5-8 and by adding Sections
14 1-5.07a and 1-5.09a as follows:
 
15     (205 ILCS 620/1-5.03)  (from Ch. 17, par. 1551-5.03)
16     Sec. 1-5.03. "Commissioner" means the Commissioner of
17 Banks and Real Estate or a person authorized by the
18 Commissioner, the Office of Banks and Real Estate Act, or this
19 Act to act in the Commissioner's stead, except that beginning
20 on the effective date of this amendatory Act of the 96th
21 General Assembly, all references in this Act to the
22 Commissioner of Banks and Real Estate are deemed, in
23 appropriate contexts, to be references to the Secretary of
24 Financial and Professional Regulation.

 

 

09600SB2101sam004 - 58 - LRB096 11443 MJR 30006 a

1 (Source: P.A. 89-508, eff. 7-3-96.)
 
2     (205 ILCS 620/1-5.07a new)
3     Sec. 1-5.07a. Division of Banking. "Division of Banking"
4 means the Division of Banking of the Department of Financial
5 and Professional Regulation.
 
6     (205 ILCS 620/1-5.09a new)
7     Sec. 1-5.09a. Secretary. "Secretary" means the Secretary
8 of Financial and Professional Regulation, or a person
9 authorized by the Secretary or by this Act to act in the
10 Secretary's stead.
 
11     (205 ILCS 620/5-6)  (from Ch. 17, par. 1555-6)
12     Sec. 5-6. Removal orders. Whenever, in the opinion of the
13 Secretary Commissioner, any director, officer, employee, or
14 agent of a corporate fiduciary or subsidiary or corporate
15 parent of the corporate fiduciary shall have violated any law,
16 rule, or order relating to the corporate fiduciary or
17 subsidiary or corporate parent of the corporate fiduciary,
18 shall have engaged in an unsafe or unsound practice in
19 conducting the business of the corporate fiduciary or
20 subsidiary or corporate parent of the corporate fiduciary, or
21 shall have violated any law or engaged or participated in any
22 unsafe or unsound practice in connection with any financial
23 institution or other business entity such that the character

 

 

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1 and fitness of the director, officer, employee, or agent does
2 not assure reasonable promise of safe and sound operation of
3 the corporate fiduciary or subsidiary or corporate parent of
4 the corporate fiduciary, the Secretary Commissioner may issue
5 an order of removal. If in the opinion of the Secretary
6 Commissioner, any former director, officer, employee, or agent
7 of a corporate fiduciary or subsidiary or corporate parent of
8 the corporate fiduciary, prior to the termination of his or her
9 service with the corporate fiduciary or subsidiary or corporate
10 parent of the corporate fiduciary, violated any law, rule, or
11 order relating to the corporate fiduciary or subsidiary or
12 corporate parent of the corporate fiduciary or engaged in an
13 unsafe or unsound practice in conducting the business of the
14 corporate fiduciary or subsidiary or corporate parent of the
15 corporate fiduciary or violated any law or engaged or
16 participated in any unsafe or unsound practice in connection
17 with any financial institution or other business entity such
18 that the character and fitness of the director, officer,
19 employee, or agent would not have assured reasonable promise of
20 safe and sound operation of the corporate fiduciary or
21 subsidiary or corporate parent of the corporate fiduciary, the
22 Secretary Commissioner may issue an order prohibiting that
23 person from further service with a corporate fiduciary or
24 subsidiary or corporate parent of the corporate fiduciary as a
25 director, officer, employee, or agent. An order issued pursuant
26 to this Section shall be served upon the director, officer,

 

 

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1 employee, or agent. A copy of the order shall be sent to each
2 director of the corporate fiduciary affected by personal
3 service, certified mail return receipt requested, or any other
4 method that provides proof of service and receipt. The person
5 affected by the action may request a hearing before the State
6 Banking Board of Illinois, hereafter "the Board", within 10
7 days after receipt of the order of removal or prohibition. The
8 hearing shall be held by the Board according to the same
9 procedures used pursuant to Section 48 of the Illinois Banking
10 Act, and the hearing shall be held within 30 days after the
11 request has been received by the Board. After concluding the
12 hearing, the Board shall make a determination approving,
13 modifying, or disapproving the order of the Commissioner as its
14 final administrative decision. A copy of the order shall be
15 served upon the corporate fiduciary of which the person is a
16 director, officer, employee, or agent, whereupon the person
17 shall cease to be a director, officer, employee, or agent of
18 the corporate fiduciary. Any person who has been removed or
19 prohibited by an order of the Secretary Commissioner under this
20 Section or subsection (7) of Section 48 of the Illinois Banking
21 Act may not thereafter serve as director, officer, employee, or
22 agent of any State bank or corporate fiduciary, or of any other
23 entity that is subject to licensure or regulation by the
24 Division of Banking Commissioner or the Office of Banks and
25 Real Estate unless the Secretary Commissioner has granted prior
26 approval in writing. The Secretary Commissioner may institute a

 

 

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1 civil action against the director, officer, employee, or agent
2 subject to an order issued under this Section and against the
3 corporate fiduciary to enforce compliance with or to enjoin any
4 violation of the terms of the order.
5 (Source: P.A. 92-483, eff. 8-23-01.)
 
6     (205 ILCS 620/5-8)  (from Ch. 17, par. 1555-8)
7     Sec. 5-8. All final administrative decisions of the
8 Secretary Commissioner, or of the State Banking Board of
9 Illinois where this Act provides a hearing before such Board to
10 review a decision of the Commissioner, shall be subject to
11 review pursuant to the provisions of the Administrative Review
12 Law, as now or hereafter amended, and the rules adopted
13 pursuant thereto. For matters involving administrative review,
14 venue shall be in either Sangamon County or Cook County.
15 (Source: P.A. 86-754.)".