SB3182enr 100TH GENERAL ASSEMBLY

  
  
  

 


 
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1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Banking Act is amended by changing
5Sections 18, 48.1, and 48.3 as follows:
 
6    (205 ILCS 5/18)  (from Ch. 17, par. 325)
7    Sec. 18. Change in control.
8    (a) Before any person, whether acting directly or
9indirectly or through or in concert with one or more persons,
10may cause (i) a change to may occur in the ownership of
11outstanding stock of any State bank, whether by sale and
12purchase, gift, bequest or inheritance, or any other means,
13including the acquisition of stock of the State bank by any
14bank holding company, which will result in control or a change
15in the control of the bank or (ii) before a change to occur in
16the control of a holding company having control of the
17outstanding stock of a State bank whether by sale and purchase,
18gift, bequest or inheritance, or any other means, including the
19acquisition of stock of such holding company by any other bank
20holding company, which will result in control or a change in
21control of the bank or holding company, or (iii) before a
22transfer of substantially all the assets or liabilities of the
23State bank, the Secretary Commissioner shall be of the opinion

 

 

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1and find:
2        (1) that the general character of proposed management
3    or of the person desiring to purchase substantially all the
4    assets or to assume substantially all the liabilities of
5    the State bank, after the change in control, is such as to
6    assure reasonable promise of successful, safe and sound
7    operation;
8        (1.1) that depositors' interests will not be
9    jeopardized by the purchase or assumption and that adequate
10    provision has been made for all liabilities as required for
11    a voluntary liquidation under Section 68 of this Act;
12        (2) that the future earnings prospects of the person
13    desiring to purchase substantially all assets or to assume
14    substantially all the liabilities of the State bank, after
15    the proposed change in control, are favorable;
16        (2.5) that the future prospects of the institution will
17    not jeopardize the financial stability of the bank or
18    prejudice the interests of the depositors of the bank;
19        (3) that any prior involvement by the persons proposing
20    to obtain control, to purchase substantially all the
21    assets, or to assume substantially all the liabilities of
22    the State bank or by the proposed management personnel with
23    any other financial institution, whether as stockholder,
24    director, officer or customer, was conducted in a safe and
25    sound manner; and
26        (4) that if the acquisition is being made by a bank

 

 

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1    holding company, the acquisition is authorized under the
2    Illinois Bank Holding Company Act of 1957.
3    (b) Any person Persons desiring to purchase control of an
4existing State state bank, to purchase substantially all the
5assets, or to assume substantially all the liabilities of the
6State bank shall, prior to that purchase, submit to the
7Secretary Commissioner:
8        (1) a statement of financial worth;
9        (2) satisfactory evidence that any prior involvement
10    by the persons and the proposed management personnel with
11    any other financial institution, whether as stockholder,
12    director, officer or customer, was conducted in a safe and
13    sound manner; and
14        (3) such other relevant information as the Secretary
15    Commissioner may request to substantiate the findings
16    under subsection (a) of this Section.
17    A person who has submitted information to the Secretary
18Commissioner pursuant to this subsection (b) is under a
19continuing obligation until the Secretary Commissioner takes
20action on the application to immediately supplement that
21information if there are any material changes in the
22information previously furnished or if there are any material
23changes in any circumstances that may affect the Secretary's
24Commissioner's opinion and findings. In addition, a person
25submitting information under this subsection shall notify the
26Secretary Commissioner of the date when the change in control

 

 

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1is finally effected.
2    The Secretary Commissioner may impose such terms and
3conditions on the approval of the change in control application
4as he deems necessary or appropriate.
5    If an applicant, whose application for a change in control
6has been approved pursuant to subsection (a) of this Section,
7fails to effect the change in control within 180 days after the
8date of the Secretary's Commissioner's approval, the Secretary
9Commissioner shall revoke that approval unless a request has
10been submitted, in writing, to the Secretary Commissioner for
11an extension and the request has been approved.
12    (b-1) Any person, whether acting directly or indirectly or
13through or in concert with one or more persons, who obtains
14ownership of stock of an existing State bank or stock of a
15holding company that controls the State bank by gift, bequest,
16or inheritance such that ownership of the stock would
17constitute control of the State bank or holding company may
18obtain title and ownership of the stock, but may not exercise
19management or control of the business and affairs of the bank
20or vote his or her shares so as to exercise management or
21control unless and until the Secretary Commissioner approves an
22application for the change of control as provided in subsection
23(b) of this Section.
24    (b-3) The provisions of this Section do not apply to an
25established holding company acquiring control of a State bank
26if the transaction is subject to approval under Section 3 of

 

 

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1the federal Bank Holding Company Act, the Federal Deposit
2Insurance Act, or the federal Home Owners' Loan Act.
3    (c) Whenever a State state bank makes a loan or loans,
4secured, or to be secured, by 25% or more of the outstanding
5stock of a State state bank, the president or other chief
6executive officer of the lending bank shall promptly report
7such fact to the Secretary Commissioner upon obtaining
8knowledge of such loan or loans, except that no report need be
9made in those cases where the borrower has been the owner of
10record of the stock for a period of one year or more, or the
11stock is that of a newly organized bank prior to its opening.
12    (d) The reports required by subsections (b) and (c) of this
13Section 18, other than those relating to a transfer of assets
14or assumption of liabilities, shall contain the following
15information to the extent that it is known by the person making
16the report: (1) the number of shares involved; (2) the names of
17the sellers (or transferors); (3) the names of the purchasers
18(or transferees); (4) the names of the beneficial owners if the
19shares are registered in another name: (5) the purchase price,
20if applicable; (6) the total number of shares owned by the
21sellers (or transferors), the purchasers (or transferees) and
22the beneficial owners both immediately before and after the
23transaction; and, (7) in the case of a loan, the name of the
24borrower, the amount of the loan, the name of the bank issuing
25the stock securing the loan and the number of shares securing
26the loan. In addition to the foregoing, such reports shall

 

 

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1contain such other information which is requested by the
2Secretary Commissioner to inform the Secretary Commissioner of
3the effect of the transaction upon control of the bank whose
4stock is involved.
5    (d-1) The reports required by subsection (b) of this
6Section 18 that relate to purchase of assets and assumption of
7liabilities shall contain the following information to the
8extent that it is known by the person making the report: (1)
9the value, amount, and description of the assets transferred;
10(2) the amount, type, and to whom each type of liabilities are
11owed; (3) the names of the purchasers (or transferees); (4) the
12names of the beneficial owners if the shares of a purchaser or
13transferee are registered in another name; (5) the purchase
14price, if applicable; and, (6) in the case of a loan obtained
15to effect a purchase, the name of the borrower, the amount and
16terms of the loan, and the description of the assets securing
17the loan. In addition to the foregoing, these reports shall
18contain any other information that is requested by the
19Secretary Commissioner to inform the Secretary Commissioner of
20the effect of the transaction upon the bank from which assets
21are purchased or liabilities are transferred.
22    (e) Whenever such a change as described in subsection (a)
23of this Section 18 occurs, each State state bank shall report
24promptly to the Secretary Commissioner any changes or
25replacement of its chief executive officer or of any director
26occurring in the next 12 month period, including in its report

 

 

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1a statement of the past and current business and professional
2affiliations of the new chief executive officer or directors.
3    (f) (Blank).
4    (g) (1) Except as otherwise expressly provided in this
5subsection (g), the Secretary Commissioners shall not approve
6an application for a change in control if upon consummation of
7the change in control the persons applying for the change in
8control, including any affiliates of the persons applying,
9would control 30% or more of the total amount of deposits which
10are located in this State at insured depository institutions.
11For purposes of this subsection (g), the words "insured
12depository institution" shall mean State banks, national
13banks, and insured savings associations. For purposes of this
14subsection (g), the word "deposits" shall have the meaning
15ascribed to that word in Section 3(1) of the Federal Deposit
16Insurance Act. For purposes of this subsection (g), the total
17amount of deposits which are considered to be located in this
18State at insured depository institutions shall equal the sum of
19all deposits held at the main banking premises and branches in
20the State of Illinois of State banks, national banks, or
21insured savings associations. For purposes of this subsection
22(g), the word "affiliates" shall have the meaning ascribed to
23that word in Section 35.2 of this Act.
24    (2) Notwithstanding the provisions of paragraph (1) of this
25subsection subsection (g)(1) of this Section, the Secretary
26Commissioner may approve an application for a change in control

 

 

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1for a bank that is in default or in danger of default. Except
2in those instances in which an application for a change in
3control is for a bank that is in default or in danger of
4default, the Secretary Commissioner may not approve a change in
5control which does not meet the requirements of paragraph (1)
6of this subsection subsection (g)(1) of this Section. The
7Secretary Commissioner may not waive the provisions of
8paragraph (1) of this subsection subsection (g)(1) of this
9Section, whether pursuant to Section 3(d) of the federal Bank
10Holding Company Act of 1956 or Section 44(d) of the Federal
11Deposit Insurance Act, except as expressly provided in this
12paragraph subsection (g)(2) of this subsection.
13    (h) As used in this Section:
14        "Control" , the term "control" means the power,
15    directly or indirectly, to direct the management or
16    policies of the bank or to vote 25% or more of the
17    outstanding stock of the bank. If there is any question as
18    to whether a change in control application should be filed,
19    the question shall be resolved in favor of filing the
20    application with the Secretary Commissioner.
21        "Substantially As used in this Section, "substantially
22    all" the assets or liabilities of a State bank means that
23    portion of the assets or liabilities of a State bank such
24    that their purchase or transfer will materially impair the
25    ability of the State bank to continue successful, safe, and
26    sound operations or to continue as a going concern or would

 

 

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1    cause the bank to lose its federal deposit insurance.
2        "Purchase" As used in this Section, "purchase"
3    includes a transfer by gift, bequest, inheritance, or any
4    other means.
5    As used in this Section, a person is acting in concert if
6that person is acting in concert under federal laws or
7regulations.
8(Source: P.A. 92-483, eff. 8-23-01; 92-811, eff. 8-21-02.)
 
9    (205 ILCS 5/48.1)  (from Ch. 17, par. 360)
10    Sec. 48.1. Customer financial records; confidentiality.
11    (a) For the purpose of this Section, the term "financial
12records" means any original, any copy, or any summary of:
13        (1) a document granting signature authority over a
14    deposit or account;
15        (2) a statement, ledger card or other record on any
16    deposit or account, which shows each transaction in or with
17    respect to that account;
18        (3) a check, draft or money order drawn on a bank or
19    issued and payable by a bank; or
20        (4) any other item containing information pertaining
21    to any relationship established in the ordinary course of a
22    bank's business between a bank and its customer, including
23    financial statements or other financial information
24    provided by the customer.
25    (b) This Section does not prohibit:

 

 

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1        (1) The preparation, examination, handling or
2    maintenance of any financial records by any officer,
3    employee or agent of a bank having custody of the records,
4    or the examination of the records by a certified public
5    accountant engaged by the bank to perform an independent
6    audit.
7        (2) The examination of any financial records by, or the
8    furnishing of financial records by a bank to, any officer,
9    employee or agent of (i) the Commissioner of Banks and Real
10    Estate, (ii) after May 31, 1997, a state regulatory
11    authority authorized to examine a branch of a State bank
12    located in another state, (iii) the Comptroller of the
13    Currency, (iv) the Federal Reserve Board, or (v) the
14    Federal Deposit Insurance Corporation for use solely in the
15    exercise of his duties as an officer, employee, or agent.
16        (3) The publication of data furnished from financial
17    records relating to customers where the data cannot be
18    identified to any particular customer or account.
19        (4) The making of reports or returns required under
20    Chapter 61 of the Internal Revenue Code of 1986.
21        (5) Furnishing information concerning the dishonor of
22    any negotiable instrument permitted to be disclosed under
23    the Uniform Commercial Code.
24        (6) The exchange in the regular course of business of
25    (i) credit information between a bank and other banks or
26    financial institutions or commercial enterprises, directly

 

 

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1    or through a consumer reporting agency or (ii) financial
2    records or information derived from financial records
3    between a bank and other banks or financial institutions or
4    commercial enterprises for the purpose of conducting due
5    diligence pursuant to a purchase or sale involving the bank
6    or assets or liabilities of the bank.
7        (7) The furnishing of information to the appropriate
8    law enforcement authorities where the bank reasonably
9    believes it has been the victim of a crime.
10        (8) The furnishing of information under the Revised
11    Uniform Unclaimed Property Act.
12        (9) The furnishing of information under the Illinois
13    Income Tax Act and the Illinois Estate and
14    Generation-Skipping Transfer Tax Act.
15        (10) The furnishing of information under the federal
16    Currency and Foreign Transactions Reporting Act Title 31,
17    United States Code, Section 1051 et seq.
18        (11) The furnishing of information under any other
19    statute that by its terms or by regulations promulgated
20    thereunder requires the disclosure of financial records
21    other than by subpoena, summons, warrant, or court order.
22        (12) The furnishing of information about the existence
23    of an account of a person to a judgment creditor of that
24    person who has made a written request for that information.
25        (13) The exchange in the regular course of business of
26    information between commonly owned banks in connection

 

 

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1    with a transaction authorized under paragraph (23) of
2    Section 5 and conducted at an affiliate facility.
3        (14) The furnishing of information in accordance with
4    the federal Personal Responsibility and Work Opportunity
5    Reconciliation Act of 1996. Any bank governed by this Act
6    shall enter into an agreement for data exchanges with a
7    State agency provided the State agency pays to the bank a
8    reasonable fee not to exceed its actual cost incurred. A
9    bank providing information in accordance with this item
10    shall not be liable to any account holder or other person
11    for any disclosure of information to a State agency, for
12    encumbering or surrendering any assets held by the bank in
13    response to a lien or order to withhold and deliver issued
14    by a State agency, or for any other action taken pursuant
15    to this item, including individual or mechanical errors,
16    provided the action does not constitute gross negligence or
17    willful misconduct. A bank shall have no obligation to
18    hold, encumber, or surrender assets until it has been
19    served with a subpoena, summons, warrant, court or
20    administrative order, lien, or levy.
21        (15) The exchange in the regular course of business of
22    information between a bank and any commonly owned affiliate
23    of the bank, subject to the provisions of the Financial
24    Institutions Insurance Sales Law.
25        (16) The furnishing of information to law enforcement
26    authorities, the Illinois Department on Aging and its

 

 

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1    regional administrative and provider agencies, the
2    Department of Human Services Office of Inspector General,
3    or public guardians: (i) upon subpoena by the investigatory
4    entity or the guardian, or (ii) if there is suspicion by
5    the bank that a customer who is an elderly person or person
6    with a disability has been or may become the victim of
7    financial exploitation. For the purposes of this item (16),
8    the term: (i) "elderly person" means a person who is 60 or
9    more years of age, (ii) "disabled person" means a person
10    who has or reasonably appears to the bank to have a
11    physical or mental disability that impairs his or her
12    ability to seek or obtain protection from or prevent
13    financial exploitation, and (iii) "financial exploitation"
14    means tortious or illegal use of the assets or resources of
15    an elderly or disabled person, and includes, without
16    limitation, misappropriation of the elderly or disabled
17    person's assets or resources by undue influence, breach of
18    fiduciary relationship, intimidation, fraud, deception,
19    extortion, or the use of assets or resources in any manner
20    contrary to law. A bank or person furnishing information
21    pursuant to this item (16) shall be entitled to the same
22    rights and protections as a person furnishing information
23    under the Adult Protective Services Act and the Illinois
24    Domestic Violence Act of 1986.
25        (17) The disclosure of financial records or
26    information as necessary to effect, administer, or enforce

 

 

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1    a transaction requested or authorized by the customer, or
2    in connection with:
3            (A) servicing or processing a financial product or
4        service requested or authorized by the customer;
5            (B) maintaining or servicing a customer's account
6        with the bank; or
7            (C) a proposed or actual securitization or
8        secondary market sale (including sales of servicing
9        rights) related to a transaction of a customer.
10        Nothing in this item (17), however, authorizes the sale
11    of the financial records or information of a customer
12    without the consent of the customer.
13        (18) The disclosure of financial records or
14    information as necessary to protect against actual or
15    potential fraud, unauthorized transactions, claims, or
16    other liability.
17        (19)(a) The disclosure of financial records or
18    information related to a private label credit program
19    between a financial institution and a private label party
20    in connection with that private label credit program. Such
21    information is limited to outstanding balance, available
22    credit, payment and performance and account history,
23    product references, purchase information, and information
24    related to the identity of the customer.
25        (b)(1) For purposes of this paragraph (19) of
26    subsection (b) of Section 48.1, a "private label credit

 

 

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1    program" means a credit program involving a financial
2    institution and a private label party that is used by a
3    customer of the financial institution and the private label
4    party primarily for payment for goods or services sold,
5    manufactured, or distributed by a private label party.
6        (2) For purposes of this paragraph (19) of subsection
7    (b) of Section 48.1, a "private label party" means, with
8    respect to a private label credit program, any of the
9    following: a retailer, a merchant, a manufacturer, a trade
10    group, or any such person's affiliate, subsidiary, member,
11    agent, or service provider.
12    (c) Except as otherwise provided by this Act, a bank may
13not disclose to any person, except to the customer or his duly
14authorized agent, any financial records or financial
15information obtained from financial records relating to that
16customer of that bank unless:
17        (1) the customer has authorized disclosure to the
18    person;
19        (2) the financial records are disclosed in response to
20    a lawful subpoena, summons, warrant, citation to discover
21    assets, or court order which meets the requirements of
22    subsection (d) of this Section; or
23        (3) the bank is attempting to collect an obligation
24    owed to the bank and the bank complies with the provisions
25    of Section 2I of the Consumer Fraud and Deceptive Business
26    Practices Act.

 

 

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1    (d) A bank shall disclose financial records under paragraph
2(2) of subsection (c) of this Section under a lawful subpoena,
3summons, warrant, citation to discover assets, or court order
4only after the bank mails a copy of the subpoena, summons,
5warrant, citation to discover assets, or court order to the
6person establishing the relationship with the bank, if living,
7and, otherwise his personal representative, if known, at his
8last known address by first class mail, postage prepaid, unless
9the bank is specifically prohibited from notifying the person
10by order of court or by applicable State or federal law. A bank
11shall not mail a copy of a subpoena to any person pursuant to
12this subsection if the subpoena was issued by a grand jury
13under the Statewide Grand Jury Act.
14    (e) Any officer or employee of a bank who knowingly and
15willfully furnishes financial records in violation of this
16Section is guilty of a business offense and, upon conviction,
17shall be fined not more than $1,000.
18    (f) Any person who knowingly and willfully induces or
19attempts to induce any officer or employee of a bank to
20disclose financial records in violation of this Section is
21guilty of a business offense and, upon conviction, shall be
22fined not more than $1,000.
23    (g) A bank shall be reimbursed for costs that are
24reasonably necessary and that have been directly incurred in
25searching for, reproducing, or transporting books, papers,
26records, or other data of a customer required or requested to

 

 

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1be produced pursuant to a lawful subpoena, summons, warrant,
2citation to discover assets, or court order. The Commissioner
3shall determine the rates and conditions under which payment
4may be made.
5(Source: P.A. 99-143, eff. 7-27-15; 100-22, eff. 1-1-18.)
 
6    (205 ILCS 5/48.3)  (from Ch. 17, par. 360.2)
7    Sec. 48.3. Disclosure of reports of examinations and
8confidential supervisory information; limitations.
9    (a) Any report of examination, visitation, or
10investigation prepared by the Secretary under this Act, the
11Electronic Fund Transfer Act, the Corporate Fiduciary Act, the
12Illinois Bank Holding Company Act of 1957, and the Foreign
13Banking Office Act, any report of examination, visitation, or
14investigation prepared by the state regulatory authority of
15another state that examines a branch of an Illinois State bank
16in that state, any document or record prepared or obtained in
17connection with or relating to any examination, visitation, or
18investigation, and any record prepared or obtained by the
19Secretary to the extent that the record summarizes or contains
20information derived from any report, document, or record
21described in this subsection shall be deemed "confidential
22supervisory information". Confidential supervisory information
23shall not include any information or record routinely prepared
24by a bank or other financial institution and maintained in the
25ordinary course of business or any information or record that

 

 

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1is required to be made publicly available pursuant to State or
2federal law or rule. Confidential supervisory information
3shall be the property of the Secretary and shall only be
4disclosed under the circumstances and for the purposes set
5forth in this Section.
6     The Secretary may disclose confidential supervisory
7information only under the following circumstances:
8        (1) The Secretary may furnish confidential supervisory
9    information to the Board of Governors of the Federal
10    Reserve System, the federal reserve bank of the federal
11    reserve district in which the State bank is located or in
12    which the parent or other affiliate of the State bank is
13    located, any official or examiner thereof duly accredited
14    for the purpose, or any other state regulator, federal
15    regulator, or in the case of a foreign bank possessing a
16    certificate of authority pursuant to the Foreign Banking
17    Office Act or a license pursuant to the Foreign Bank
18    Representative Office Act, the bank regulator in the
19    country where the foreign bank is chartered, that the
20    Secretary determines to have an appropriate regulatory
21    interest. Nothing contained in this Act shall be construed
22    to limit the obligation of any member State bank to comply
23    with the requirements relative to examinations and reports
24    of the Federal Reserve Act and of the Board of Governors of
25    the Federal Reserve System or the federal reserve bank of
26    the federal reserve district in which the bank is located,

 

 

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1    nor to limit in any way the powers of the Secretary with
2    reference to examinations and reports.
3        (2) The Secretary may furnish confidential supervisory
4    information to the United States, any agency thereof that
5    has insured a bank's deposits in whole or in part, or any
6    official or examiner thereof duly accredited for the
7    purpose. Nothing contained in this Act shall be construed
8    to limit the obligation relative to examinations and
9    reports of any State bank, deposits in which are to any
10    extent insured by the United States, any agency thereof,
11    nor to limit in any way the powers of the Secretary with
12    reference to examination and reports of such bank.
13        (2.5) The Secretary may furnish confidential
14    supervisory information to a Federal Home Loan Bank in
15    connection with any bank that is a member of the Federal
16    Home Loan Bank or in connection with any application by the
17    bank before the Federal Home Loan Bank. The confidential
18    supervisory information shall remain the property of the
19    Secretary and may not be further disclosed without the
20    Secretary's permission.
21        (3) The Secretary may furnish confidential supervisory
22    information to the appropriate law enforcement authorities
23    when the Secretary reasonably believes a bank, which the
24    Secretary has caused to be examined, has been a victim of a
25    crime.
26        (4) The Secretary may furnish confidential supervisory

 

 

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1    information relating to a bank or other financial
2    institution, which the Secretary has caused to be examined,
3    to be sent to the administrator of the Revised Uniform
4    Unclaimed Property Act.
5        (5) The Secretary may furnish confidential supervisory
6    information relating to a bank or other financial
7    institution, which the Secretary has caused to be examined,
8    relating to its performance of obligations under the
9    Illinois Income Tax Act and the Illinois Estate and
10    Generation-Skipping Transfer Tax Act to the Illinois
11    Department of Revenue.
12        (6) The Secretary may furnish confidential supervisory
13    information relating to a bank or other financial
14    institution, which the Secretary has caused to be examined,
15    under the federal Currency and Foreign Transactions
16    Reporting Act, Title 31, United States Code, Section 1051
17    et seq.
18        (6.5) The Secretary may furnish confidential
19    supervisory information to any other agency or entity that
20    the Secretary determines to have a legitimate regulatory
21    interest.
22        (7) The Secretary may furnish confidential supervisory
23    information under any other statute that by its terms or by
24    regulations promulgated thereunder requires the disclosure
25    of financial records other than by subpoena, summons,
26    warrant, or court order.

 

 

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1        (8) At the request of the affected bank or other
2    financial institution, the Secretary may furnish
3    confidential supervisory information relating to a bank or
4    other financial institution, which the Secretary has
5    caused to be examined, in connection with the obtaining of
6    insurance coverage or the pursuit of an insurance claim for
7    or on behalf of the bank or other financial institution;
8    provided that, when possible, the Secretary shall disclose
9    only relevant information while maintaining the
10    confidentiality of financial records not relevant to such
11    insurance coverage or claim and, when appropriate, may
12    delete identifying data relating to any person or
13    individual.
14        (9) The Secretary may furnish a copy of a report of any
15    examination performed by the Secretary of the condition and
16    affairs of any electronic data processing entity to the
17    banks serviced by the electronic data processing entity.
18        (10) In addition to the foregoing circumstances, the
19    Secretary may, but is not required to, furnish confidential
20    supervisory information under the same circumstances
21    authorized for the bank or financial institution pursuant
22    to subsection (b) of this Section, except that the
23    Secretary shall provide confidential supervisory
24    information under circumstances described in paragraph (3)
25    of subsection (b) of this Section only upon the request of
26    the bank or other financial institution.

 

 

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1    (b) A bank or other financial institution or its officers,
2agents, and employees may disclose confidential supervisory
3information only under the following circumstances:
4        (1) to the board of directors of the bank or other
5    financial institution, as well as the president,
6    vice-president, cashier, and other officers of the bank or
7    other financial institution to whom the board of directors
8    may delegate duties with respect to compliance with
9    recommendations for action, and to the board of directors
10    of a bank holding company that owns at least 80% of the
11    outstanding stock of the bank or other financial
12    institution;
13        (2) to attorneys for the bank or other financial
14    institution and to a certified public accountant engaged by
15    the State bank or financial institution to perform an
16    independent audit provided that the attorney or certified
17    public accountant shall not permit the confidential
18    supervisory information to be further disseminated;
19        (3) to any person who seeks to acquire a controlling
20    interest in, or who seeks to merge with, the bank or
21    financial institution, provided that all attorneys,
22    certified public accountants, officers, agents, or
23    employees of that person shall agree to be bound to respect
24    the confidentiality of the confidential supervisory
25    information and to not further disseminate the information
26    therein contained;

 

 

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1        (3.5) to a Federal Home Loan Bank of which it is a
2    member;
3        (4) (blank); or
4        (4.5) to any attorney, accountant, consultant, or
5    other professional as needed to comply with any enforcement
6    action issued by the Secretary; or
7        (5) to the bank's insurance company in relation to an
8    insurance claim or the effort by the bank to procure
9    insurance coverage, provided that, when possible, the bank
10    shall disclose only information that is relevant to the
11    insurance claim or that is necessary to procure the
12    insurance coverage, while maintaining the confidentiality
13    of financial information pertaining to customers. When
14    appropriate, the bank may delete identifying data relating
15    to any person.
16    The disclosure of confidential supervisory information by
17a bank or other financial institution pursuant to this
18subsection (b) and the disclosure of information to the
19Secretary or other regulatory agency in connection with any
20examination, visitation, or investigation shall not constitute
21a waiver of any legal privilege otherwise available to the bank
22or other financial institution with respect to the information.
23    (c) (1) Notwithstanding any other provision of this Act or
24any other law, confidential supervisory information shall be
25the property of the Secretary and shall be privileged from
26disclosure to any person except as provided in this Section. No

 

 

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1person in possession of confidential supervisory information
2may disclose that information for any reason or under any
3circumstances not specified in this Section without the prior
4authorization of the Secretary. Any person upon whom a demand
5for production of confidential supervisory information is
6made, whether by subpoena, order, or other judicial or
7administrative process, must withhold production of the
8confidential supervisory information and must notify the
9Secretary of the demand, at which time the Secretary is
10authorized to intervene for the purpose of enforcing the
11limitations of this Section or seeking the withdrawal or
12termination of the attempt to compel production of the
13confidential supervisory information.
14    (2) Any request for discovery or disclosure of confidential
15supervisory information, whether by subpoena, order, or other
16judicial or administrative process, shall be made to the
17Secretary, and the Secretary shall determine within 15 days
18whether to disclose the information pursuant to procedures and
19standards that the Secretary shall establish by rule. If the
20Secretary determines that such information will not be
21disclosed, the Secretary's decision shall be subject to
22judicial review under the provisions of the Administrative
23Review Law, and venue shall be in either Sangamon County or
24Cook County.
25    (3) Any court order that compels disclosure of confidential
26supervisory information may be immediately appealed by the

 

 

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1Secretary, and the order shall be automatically stayed pending
2the outcome of the appeal.
3    (d) If any officer, agent, attorney, or employee of a bank
4or financial institution knowingly and willfully furnishes
5confidential supervisory information in violation of this
6Section, the Secretary may impose a civil monetary penalty up
7to $1,000 for the violation against the officer, agent,
8attorney, or employee.
9(Source: P.A. 100-22, eff 1-1-18; 100-64, eff. 8-11-17; revised
1010-5-17.)
 
11    Section 10. The Savings Bank Act is amended by changing
12Sections 8015 and 9012 as follows:
 
13    (205 ILCS 205/8015)  (from Ch. 17, par. 7308-15)
14    Sec. 8015. Change in control.
15    (a) No person, whether acting directly or indirectly or
16through or in concert with one or more persons, may acquire
17control of a savings bank operating under this Act without
18prior approval of the Secretary. The provisions of this Section
19do not apply to an established holding company acquiring
20control of a State savings bank if the transaction is subject
21to approval under the Federal Deposit Insurance Act, the
22federal Home Owners' Loan Act, or Section 3 of the federal Bank
23Holding Company Act.
24    (b) Any person seeking to acquire control of a savings bank

 

 

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1or subsidiary of a savings bank operating under this Act shall
2submit an application in the form required by the Secretary.
3    (c) The Secretary may examine the books and records of the
4applicant and related persons, investigate any matter relevant
5to the application, and require the applicant to submit
6additional information and documents.
7    (d) The Secretary shall not approve an acquisition of
8control unless the application and related examination and
9investigation permit the Secretary to find positively on all of
10the following matters:
11        (1) The applicant has filed a complete application, has
12    cooperated with all examinations and investigations of the
13    Secretary, and has submitted all information and documents
14    requested by the Secretary.
15        (2) The applicant and proposed management have the
16    necessary competence, experience, integrity, and financial
17    ability.
18        (3) The business plans of the applicant are consistent
19    with the safe and sound operation of the savings bank and
20    the purposes of this Act.
21        (4) The acquisition of control would not be inequitable
22    to members, borrowers or creditors of the savings bank.
23        (5) The applicant and proposed management have
24    complied with subsection (f) of this Section.
25        (6) The future prospects of the institution will not
26    jeopardize the financial stability of the savings bank or

 

 

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1    prejudice the interests of the members of the savings bank.
2    (e) Shares of stock or mutual members shares acquired in
3violation of subsection (a) of this Section shall not be voted
4and shall not be counted in calculating the total number of
5shares eligible to vote. In addition to any other action
6authorized under this Act, the Secretary may require divestment
7of shares of stock acquired in violation of this Section and
8may require retirement of the withdrawal value of accounts
9providing mutual member voting shares acquired in violation of
10this Section, in which case the savings bank shall pay accrued
11interest on the retired withdrawal value and shall not assess
12any penalty for early withdrawal.
13    (f) An individual, whether acting directly or indirectly or
14through or in concert with one or more persons, shall file
15written notice to the Secretary within 10 days of the
16occurrence of either of the following events:
17        (1) becoming, directly or indirectly, the beneficial
18    owner of more than five percent of the voting shares of a
19    savings bank or savings bank holding company; or
20        (2) obtaining, directly or indirectly, the power to
21    cast more than five percent of the member votes of a
22    savings bank or savings bank holding company.
23    The requirements of this subsection (f) are separate and in
24addition to the requirements of subsection (a) of this Section.
25    (g) The Secretary may promulgate rules to implement this
26provision, including definitions, form and content of

 

 

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1application or notice, procedures, exemptions, and
2requirements for approval.
3    (h) As used in this Section, a person is acting in concert
4if that person is acting in concert under federal laws or
5regulations.
6(Source: P.A. 96-585, eff. 8-18-09; 97-492, eff. 1-1-12.)
 
7    (205 ILCS 205/9012)  (from Ch. 17, par. 7309-12)
8    Sec. 9012. Disclosure of reports of examinations and
9confidential supervisory information; limitations.
10    (a) Any report of examination, visitation, or
11investigation prepared by the Secretary under this Act, any
12report of examination, visitation, or investigation prepared
13by the state regulatory authority of another state that
14examines a branch of an Illinois State savings bank in that
15state, any document or record prepared or obtained in
16connection with or relating to any examination, visitation, or
17investigation, and any record prepared or obtained by the
18Secretary to the extent that the record summarizes or contains
19information derived from any report, document, or record
20described in this subsection shall be deemed confidential
21supervisory information. "Confidential supervisory
22information" shall not include any information or record
23routinely prepared by a savings bank and maintained in the
24ordinary course of business or any information or record that
25is required to be made publicly available pursuant to State or

 

 

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1federal law or rule. Confidential supervisory information
2shall be the property of the Secretary and shall only be
3disclosed under the circumstances and for the purposes set
4forth in this Section.
5    The Secretary may disclose confidential supervisory
6information only under the following circumstances:
7        (1) The Secretary may furnish confidential supervisory
8    information to federal and state depository institution
9    regulators, or any official or examiner thereof duly
10    accredited for the purpose. Nothing contained in this Act
11    shall be construed to limit the obligation of any savings
12    bank to comply with the requirements relative to
13    examinations and reports nor to limit in any way the powers
14    of the Secretary relative to examinations and reports.
15        (2) The Secretary may furnish confidential supervisory
16    information to the United States or any agency thereof that
17    to any extent has insured a savings bank's deposits, or any
18    official or examiner thereof duly accredited for the
19    purpose. Nothing contained in this Act shall be construed
20    to limit the obligation relative to examinations and
21    reports of any savings bank in which deposits are to any
22    extent insured by the United States or any agency thereof
23    nor to limit in any way the powers of the Secretary with
24    reference to examination and reports of the savings bank.
25        (2.5) The Secretary may furnish confidential
26    supervisory information to a Federal Home Loan Bank in

 

 

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1    connection with any savings bank that is a member of the
2    Federal Home Loan Bank or in connection with any
3    application by the savings bank before the Federal Home
4    Loan Bank. The confidential supervisory information shall
5    remain the property of the Secretary and may not be further
6    disclosed without the Secretary's permission.
7        (3) The Secretary may furnish confidential supervisory
8    information to the appropriate law enforcement authorities
9    when the Secretary reasonably believes a savings bank,
10    which the Secretary has caused to be examined, has been a
11    victim of a crime.
12        (4) The Secretary may furnish confidential supervisory
13    information related to a savings bank, which the Secretary
14    has caused to be examined, to the administrator of the
15    Revised Uniform Unclaimed Property Act.
16        (5) The Secretary may furnish confidential supervisory
17    information relating to a savings bank, which the Secretary
18    has caused to be examined, relating to its performance of
19    obligations under the Illinois Income Tax Act and the
20    Illinois Estate and Generation-Skipping Transfer Tax Act
21    to the Illinois Department of Revenue.
22        (6) The Secretary may furnish confidential supervisory
23    information relating to a savings bank, which the Secretary
24    has caused to be examined, under the federal Currency and
25    Foreign Transactions Reporting Act, 31 United States Code,
26    Section 1051 et seq.

 

 

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1        (7) The Secretary may furnish confidential supervisory
2    information to any other agency or entity that the
3    Secretary determines to have a legitimate regulatory
4    interest.
5        (8) The Secretary may furnish confidential supervisory
6    information as otherwise permitted or required by this Act
7    and may furnish confidential supervisory information under
8    any other statute that by its terms or by regulations
9    promulgated thereunder requires the disclosure of
10    financial records other than by subpoena, summons,
11    warrant, or court order.
12        (9) At the request of the affected savings bank, the
13    Secretary may furnish confidential supervisory information
14    relating to the savings bank, which the Secretary has
15    caused to be examined, in connection with the obtaining of
16    insurance coverage or the pursuit of an insurance claim for
17    or on behalf of the savings bank; provided that, when
18    possible, the Secretary shall disclose only relevant
19    information while maintaining the confidentiality of
20    financial records not relevant to such insurance coverage
21    or claim and, when appropriate, may delete identifying data
22    relating to any person.
23        (10) The Secretary may furnish a copy of a report of
24    any examination performed by the Secretary of the condition
25    and affairs of any electronic data processing entity to the
26    savings banks serviced by the electronic data processing

 

 

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1    entity.
2        (11) In addition to the foregoing circumstances, the
3    Secretary may, but is not required to, furnish confidential
4    supervisory information under the same circumstances
5    authorized for the savings bank pursuant to subsection (b)
6    of this Section, except that the Secretary shall provide
7    confidential supervisory information under circumstances
8    described in paragraph (3) of subsection (b) of this
9    Section only upon the request of the savings bank.
10    (b) A savings bank or its officers, agents, and employees
11may disclose confidential supervisory information only under
12the following circumstances:
13        (1) to the board of directors of the savings bank, as
14    well as the president, vice-president, cashier, and other
15    officers of the savings bank to whom the board of directors
16    may delegate duties with respect to compliance with
17    recommendations for action, and to the board of directors
18    of a savings bank holding company that owns at least 80% of
19    the outstanding stock of the savings bank or other
20    financial institution.
21        (2) to attorneys for the savings bank and to a
22    certified public accountant engaged by the savings bank to
23    perform an independent audit; provided that the attorney or
24    certified public accountant shall not permit the
25    confidential supervisory information to be further
26    disseminated.

 

 

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1        (3) to any person who seeks to acquire a controlling
2    interest in, or who seeks to merge with, the savings bank;
3    provided that the person shall agree to be bound to respect
4    the confidentiality of the confidential supervisory
5    information and to not further disseminate the information
6    other than to attorneys, certified public accountants,
7    officers, agents, or employees of that person who likewise
8    shall agree to be bound to respect the confidentiality of
9    the confidential supervisory information and to not
10    further disseminate the information.
11        (4) to the savings bank's insurance company, if the
12    supervisory information contains information that is
13    otherwise unavailable and is strictly necessary to
14    obtaining insurance coverage or pursuing an insurance
15    claim for or on behalf of the savings bank; provided that,
16    when possible, the savings bank shall disclose only
17    information that is relevant to obtaining insurance
18    coverage or pursuing an insurance claim, while maintaining
19    the confidentiality of financial information pertaining to
20    customers; and provided further that, when appropriate,
21    the savings bank may delete identifying data relating to
22    any person.
23        (5) to a Federal Home Loan Bank of which it is a
24    member.
25        (6) to any attorney, accountant, consultant, or other
26    professional as needed to comply with an enforcement action

 

 

SB3182 Enrolled- 34 -LRB100 18996 XWW 34250 b

1    issued by the Secretary.
2    The disclosure of confidential supervisory information by
3a savings bank pursuant to this subsection (b) and the
4disclosure of information to the Secretary or other regulatory
5agency in connection with any examination, visitation, or
6investigation shall not constitute a waiver of any legal
7privilege otherwise available to the savings bank with respect
8to the information.
9    (c) (1) Notwithstanding any other provision of this Act or
10any other law, confidential supervisory information shall be
11the property of the Secretary and shall be privileged from
12disclosure to any person except as provided in this Section. No
13person in possession of confidential supervisory information
14may disclose that information for any reason or under any
15circumstances not specified in this Section without the prior
16authorization of the Secretary. Any person upon whom a demand
17for production of confidential supervisory information is
18made, whether by subpoena, order, or other judicial or
19administrative process, must withhold production of the
20confidential supervisory information and must notify the
21Secretary of the demand, at which time the Secretary is
22authorized to intervene for the purpose of enforcing the
23limitations of this Section or seeking the withdrawal or
24termination of the attempt to compel production of the
25confidential supervisory information.
26    (2) Any request for discovery or disclosure of confidential

 

 

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1supervisory information, whether by subpoena, order, or other
2judicial or administrative process, shall be made to the
3Secretary, and the Secretary shall determine within 15 days
4whether to disclose the information pursuant to procedures and
5standards that the Secretary shall establish by rule. If the
6Secretary determines that such information will not be
7disclosed, the Secretary's decision shall be subject to
8judicial review under the provisions of the Administrative
9Review Law, and venue shall be in either Sangamon County or
10Cook County.
11    (3) Any court order that compels disclosure of confidential
12supervisory information may be immediately appealed by the
13Secretary, and the order shall be automatically stayed pending
14the outcome of the appeal.
15    (d) If any officer, agent, attorney, or employee of a
16savings bank knowingly and willfully furnishes confidential
17supervisory information in violation of this Section, the
18Secretary may impose a civil monetary penalty up to $1,000 for
19the violation against the officer, agent, attorney, or
20employee.
21    (e)   Subject to the limits of this Section, the Secretary
22also may promulgate regulations to set procedures and standards
23for disclosure of the following items:
24        (1) All fixed orders and opinions made in cases of
25    appeals of the Secretary's actions.
26        (2) Statements of policy and interpretations adopted

 

 

SB3182 Enrolled- 36 -LRB100 18996 XWW 34250 b

1    by the Secretary's office, but not otherwise made public.
2        (3) Nonconfidential portions of application files,
3    including applications for new charters. The Secretary
4    shall specify by rule as to what part of the files are
5    confidential.
6        (4) Quarterly reports of income, deposits, and
7    financial condition.
8(Source: P.A. 100-22, eff. 1-1-18; 100-64, eff. 8-11-17;
9revised 10-5-17.)
 
10    Section 99. Effective date. This Act takes effect upon
11becoming law.