State of Illinois
90th General Assembly
Legislation

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90_SB0646enr

      205 ILCS 205/1007.115 new
      205 ILCS 205/1008         from Ch. 17, par. 7301-8
      205 ILCS 205/8012         from Ch. 17, par. 7308-12
          Amends the Savings Bank Act.  Provides that  a  federally
      chartered  savings  and  loan  association  or  savings  bank
      required by federal law convert to a national bank or a state
      chartered  institution  may become a State savings bank under
      an expedited process.  Effective immediately.
                                                     LRB9002634JSmg
SB646 Enrolled                                 LRB9002634JSmg
 1        AN ACT to amend the Savings Bank Act by changing Sections
 2    1008 and 8012 and adding Section 1007.115.
 3        Be it enacted by the People of  the  State  of  Illinois,
 4    represented in the General Assembly:
 5        Section  5.   The Savings Bank Act is amended by changing
 6    Sections  1008  and  8012  and  adding  Section  1007.115  as
 7    follows:
 8        (205 ILCS 205/1007.115 new)
 9        Sec.    1007.115.  Federal     association.      "Federal
10    association"  means a savings and loan association or savings
11    bank incorporated under the federal Home Owners Loan  Act  of
12    1993,  as  now or hereafter amended, whose principal business
13    office is located within this State.
14        (205 ILCS 205/1008) (from Ch. 17, par. 7301-8)
15        Sec. 1008. General corporate powers.
16        (a)  A savings bank operating under this Act shall  be  a
17    body corporate and politic and shall have all of the specific
18    powers  conferred  by  this  Act and in addition thereto, the
19    following general powers:
20             (1)  To sue and be sued, complain, and defend in its
21        corporate name and to have a common seal,  which  it  may
22        alter or renew at pleasure.
23             (2)  To  obtain  and maintain insurance by a deposit
24        insurance corporation as defined in this Act.
25             (3)  To act as a fiscal agent for the United States,
26        the State of Illinois or any department, branch, arm,  or
27        agency  of  the  State or any unit of local government or
28        school district in the State, when  duly  designated  for
29        that   purpose,   and  as  agent  to  perform  reasonable
30        functions as may be required of it.
SB646 Enrolled              -2-                LRB9002634JSmg
 1             (4)  To  become  a  member  of  or  deal  with   any
 2        corporation  or  agency of the United States or the State
 3        of Illinois, to the extent that  the  agency  assists  in
 4        furthering  or facilitating its purposes or powers and to
 5        that end to  purchase  stock  or  securities  thereof  or
 6        deposit  money  therewith,  and  to comply with any other
 7        conditions of membership or credit.
 8             (5)  To make donations in reasonable amounts for the
 9        public welfare or for charitable, scientific,  religious,
10        or educational purposes.
11             (6)  To  adopt  and  operate  reasonable  insurance,
12        bonus,  profit sharing, and retirement plans for officers
13        and  employees  and  for  directors  including,  but  not
14        limited to, advisory, honorary, and  emeritus  directors,
15        who are not officers or employees.
16             (7)  To  reject  any  application for membership; to
17        retire  deposit  accounts  by  enforced   retirement   as
18        provided  in  this  Act  and the bylaws; and to limit the
19        issuance of, or payments on, deposit  accounts,  subject,
20        however, to contractual obligations.
21             (8)  To  purchase  stock in service corporations and
22        to invest in any form  of  indebtedness  of  any  service
23        corporation   as   defined   in   this  Act,  subject  to
24        regulations of the Commissioner.
25             (9)  To  purchase  stock  of  a  corporation   whose
26        principal purpose is to operate a safe deposit company or
27        escrow service company.
28             (10)  To   exercise  all  the  powers  necessary  to
29        qualify as a trustee or custodian under federal or  State
30        law,  provided  that  the authority to accept and execute
31        trusts is subject to  the  provisions  of  the  Corporate
32        Fiduciary  Act and to the supervision of those activities
33        by the Commissioner of Banks and Real Estate.
34             (11)  (Blank).
SB646 Enrolled              -3-                LRB9002634JSmg
 1             (12)  To establish, maintain, and operate  terminals
 2        as  authorized  by the Electronic Fund Transfer Act.  The
 3        establishment, maintenance, operation,  and  location  of
 4        those  terminals  shall be subject to the approval of the
 5        Commissioner.
 6             (13)  Pledge its assets:
 7                  (A)  to enable it to act as agent for the  sale
 8             of obligations of the United States;
 9                  (B)  to secure deposits;
10                  (C)  to   secure  deposits  of  money  whenever
11             required by the National Bankruptcy Act;
12                  (D)  to  qualify  under  Section  2-9  of   the
13             Corporate Fiduciary Act; and
14                  (E)  to  secure trust funds commingled with the
15             savings  bank's  funds,  whether  deposited  by  the
16             savings bank or an affiliate of the savings bank, as
17             required  under  Section  2-8   of   the   Corporate
18             Fiduciary Act.
19             (14)  To  accept for payment at a future date not to
20        exceed one year from the date of acceptance, drafts drawn
21        upon it by  its  customers;  and  to  issue,  advise,  or
22        confirm  letters of credit authorizing holders thereof to
23        draw drafts upon it or its correspondents.
24             (15)  Subject   to   the    regulations    of    the
25        Commissioner, to own and lease personal property acquired
26        by  the  savings  bank  at  the  request of a prospective
27        lessee and, upon the agreement of that person,  to  lease
28        the personal property.
29             (16)  To  establish  temporary service booths at any
30        International Fair in this State that is approved by  the
31        United  States Department of Commerce for the duration of
32        the international fair for the  purpose  of  providing  a
33        convenient  place for foreign trade customers to exchange
34        their  home  countries'  currency  into   United   States
SB646 Enrolled              -4-                LRB9002634JSmg
 1        currency  or the converse.  To provide temporary periodic
 2        service to persons residing in a bona fide nursing  home,
 3        senior  citizens'  retirement  home,  or  long-term  care
 4        facility.    These  powers  shall  not  be  construed  as
 5        establishing a new place or change of  location  for  the
 6        savings bank providing the service booth.
 7             (17)  To    indemnify   its   officers,   directors,
 8        employees, and agents,  as  authorized  for  corporations
 9        under  Section  8.75  of the Business Corporations Act of
10        1983.
11             (18)  To provide data processing services to  others
12        on a for-profit basis.
13             (19)  To   utilize   any  electronic  technology  to
14        provide customers with home banking services.
15             (20)  Subject   to   the    regulations    of    the
16        Commissioner,  to  enter  into  an  agreement to act as a
17        surety.
18             (21)  Subject   to   the    regulations    of    the
19        Commissioner,   to  issue  credit  cards,  extend  credit
20        therewith, and otherwise  engage  in  or  participate  in
21        credit card operations.
22             (22)  To  purchase  for  its  own  account shares of
23        stock of a bankers' bank, described in  Section  13(b)(1)
24        of  the  Illinois  Banking  Act,  on  the  same terms and
25        conditions as a bank may purchase  such  shares.   In  no
26        event  shall  the  total  amount  of such stock held by a
27        savings bank an association in such bankers' bank  exceed
28        10%  of  its  capital  and  surplus  (including undivided
29        profits)  and  in  no  event  shall  a  savings  bank  an
30        association acquire more than 5% of any class  of  voting
31        securities of such bankers' bank.
32             (23)  To  become  a  member of the Federal Home Loan
33        Bank Board and to have the powers granted  to  a  savings
34        association organized under the Illinois Savings and Loan
SB646 Enrolled              -5-                LRB9002634JSmg
 1        Act  of 1985 or the laws of the United States, subject to
 2        regulations of the Commissioner.
 3        (b)  If this Act fails to provide  specific  guidance  in
 4    matters  of  corporate  governance,  the  provisions  of  the
 5    Business Corporation Act of 1983 may be used.
 6    (Source:  P.A.  88-112;  88-481; 88-670, eff. 12-2-94; 89-74,
 7    eff. 6-30-95; 89-310,  eff.  1-1-96;  89-317,  eff.  8-11-95;
 8    89-355,  eff.  8-17-95;  89-508,  eff.  7-3-96;  89-603, eff.
 9    8-2-96; 89-626, eff. 8-9-96; revised 9-9-96.)
10        (205 ILCS 205/8012) (from Ch. 17, par. 7308-12)
11        Sec.  8012.  Conversion   of   an   existing   depository
12    institution to a savings bank.
13        (a)  Except  as  provided  in subsection (b), an existing
14    depository institution may become an  Illinois  savings  bank
15    by:
16             (1)  Applying  to the Commissioner of Banks and Real
17        Estate for an Illinois savings bank charter.
18             (2)  Obtaining insurance of accounts from a  deposit
19        insurance corporation.
20             (3)  Complying  with  the provisions of this Act and
21        the rules and regulations  of  the  Commissioner,  except
22        that  any requirements of publication, notice, and public
23        hearing are hereby waived.
24             (4)  Paying all outstanding  bills  for  supervisory
25        fees,  examination  fees,  membership  fees,  other fees,
26        penalties, and assessments associated with  its  original
27        charter.
28             (5)  Recording  a savings bank charter in the county
29        of its company headquarters.
30             (6)  Giving  notice  to  its   original   chartering
31        authority  and surrendering its charter to its chartering
32        authority upon approval of the Commissioner.
33        (b)  A federal association  required  by  a  law  of  the
SB646 Enrolled              -6-                LRB9002634JSmg
 1    United  States  to  convert  to  a  national  bank  or  to  a
 2    depository  institution chartered under the laws of the State
 3    of Illinois that elects to become a savings  bank  may  apply
 4    for  an expedited process under this subsection.  Upon filing
 5    with the Commissioner a  certified  copy  of  the  conversion
 6    registration  statement  filed  with  the appropriate federal
 7    regulatory agency and a certificate issued  by  that  federal
 8    regulatory  agency  showing  that the federal association has
 9    complied with the provisions of federal law, the Commissioner
10    shall issue a savings bank charter to the converting  federal
11    association, provided the converting federal association:
12             (i)  furnishes  evidence  of  insurance  of accounts
13        from a deposit insurance corporation;
14             (ii)  complies with the provisions of this  Act  and
15        the   rules   of   the   Commissioner,  except  that  any
16        requirements of publication notice and public hearing are
17        waived; and
18             (iii)  records  the  savings  bank  charter  in  the
19        county of its principal place of business.
20        (c)  A federal savings association  that  converts  to  a
21    savings  bank  under subsection (b) of this Section shall not
22    be required to pay any application fees  in  connection  with
23    the conversion.
24    (Source: P.A. 89-508, eff. 7-3-96.)
25        Section  99.  Effective date.  This Act takes effect upon
26    becoming law.

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