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91_HB1281ham001
LRB9100404SMdvam05
1 AMENDMENT TO HOUSE BILL 1281
2 AMENDMENT NO. . Amend House Bill 1281 on page 1,
3 line 11, before the period, by inserting the following:
4 "; provided, however, that the rights, powers, duties, and
5 functions involving the examination of the records of any
6 person that the State Treasurer has reason to believe has
7 failed to report properly under this Act shall be transferred
8 to the Office of Banks and Real Estate if the person is
9 regulated by the Office of Banks and Real Estate under the
10 Illinois Banking Act, the Corporate Fiduciary Act, the
11 Foreign Banking Office Act, the Illinois Savings and Loan Act
12 of 1985, or the Savings Bank Act and shall be retained by the
13 Department of Financial Institutions if the person is doing
14 business in the State under the supervision of the Department
15 of Financial Institutions, the National Credit Union
16 Administration, the Office of Thrift Supervision, or the
17 Comptroller of the Currency"; and
18 by replacing lines 29 and 30 on page 1 and lines 1 and 2 on
19 page 2 with the following:
20 (c) The rights of State employees, the State, and its
21 agencies under the Personnel Code and applicable collective
22 bargaining agreements and retirement plans are not affected
23 by this amendatory Act of 1999, except that all positions
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1 transferred to the State Treasurer shall be subject to the
2 State Treasurer Employment Code effective July 1, 2000.
3 All transferred employees who are members of collective
4 bargaining units shall retain their seniority, continuous
5 service, salary, and accrued benefits. During the pendency
6 of the existing collective bargaining agreement, the rights
7 provided for under that agreement and memoranda and
8 supplements to that agreement, including but not limited to,
9 the rights of employees performing duties pertaining to the
10 administration of the Uniform Disposition of Unclaimed
11 Property Act to positions in other State agencies and the
12 right of employees in other State agencies covered by the
13 agreement to positions performing duties pertaining to the
14 administration of the Uniform Disposition of Unclaimed
15 Property Act, shall not be abridged.
16 The State Treasurer shall continue to honor during their
17 pendency all bargaining agreements in effect at the time of
18 the transfer and to recognize all collective bargaining
19 representatives for the employees who perform or will perform
20 functions transferred by this amendatory Act of 1999. For
21 all purposes with respect to the management of the existing
22 agreement and the negotiation and management of any successor
23 agreements, the State Treasurer shall be deemed to be the
24 employer of employees who perform or will perform functions
25 transferred to the Office of the State Treasurer by this
26 amendatory Act of 1999; provided that the Illinois Department
27 of Central Management Services shall be a party to any
28 grievance or arbitration proceeding held pursuant to the
29 provisions of the collective bargaining agreement which
30 involves the movement of employees from the Office of the
31 State Treasurer to an agency under the jurisdiction of the
32 Governor covered by the agreement."; and
33 on page 3, immediately below line 26, by inserting the
34 following:
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1 "(d) As soon as practical after July 1, 1999, the Office
2 of Banks and Real Estate and the Office of the State
3 Treasurer shall jointly promulgate rules to reflect the
4 transfer of examination functions to the Office of Banks and
5 Real Estate under this amendatory Act of 1999 using the
6 procedures available under the Illinois Administrative
7 Procedure Act.
8 (e) As soon as practical after July 1, 1999, the
9 Department of Financial Institutions and the Office of the
10 State Treasurer shall jointly promulgate rules to reflect the
11 retention of examination functions by the Department of
12 Financial Institutions under this amendatory Act of 1999
13 using the procedures available under the Illinois
14 Administrative Procedure Act."; and
15 in lines 30, 31, and 33 on page 3 and in lines 1 and 8 on
16 page 4, after "Treasurer" each time it appears, by inserting
17 "or the Commissioner of Banks and Real Estate"; and
18 on page 4, by replacing lines 14 and 15 with the following:
19 "appropriate contexts, be deemed to refer to the State
20 Treasurer or the Commissioner of Banks and Real Estate or the
21 officers, employees, or agents of the State Treasurer or the
22 Commissioner of Banks and Real Estate."; and
23 on page 4, line 18, after "Treasurer" by inserting "or the
24 Commissioner of Banks and Real Estate."; and
25 by replacing lines 18 through 32 on page 5 and lines 1
26 through 5 on page 6 with the following:
27 "Section 10. The Financial Institutions Code is amended
28 by adding Section 18.1 as follows:"; and
29 on page 6, line 13, before the period, by inserting the
30 following:
31 "; provided, however, that the rights, powers, duties, and
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1 functions involving the examination of the records of any
2 person that the State Treasurer has reason to believe has
3 failed to report properly under this Act shall be transferred
4 to the Office of Banks and Real Estate if the person is
5 regulated by the Office of Banks and Real Estate under the
6 Illinois Banking Act, the Corporate Fiduciary Act, the
7 Foreign Banking Office Act, the Illinois Savings and Loan Act
8 of 1985, or the Savings Bank Act and shall be retained by the
9 Department of Financial Institutions if the person is doing
10 business in the State under the supervision of the Department
11 of Financial Institutions, the National Credit Union
12 Administration, the Office of Thrift Supervision, or the
13 Comptroller of the Currency"; and
14 on page 6, immediately below line 13, by inserting the
15 following:
16 "Section 12. The State Finance Act is amended by
17 changing Section 8.12 as follows:
18 (30 ILCS 105/8.12) (from Ch. 127, par. 144.12)
19 Sec. 8.12. State Pensions Fund.
20 (a) The moneys in the State Pensions Fund shall be used
21 exclusively for the administration of the Uniform Disposition
22 of Unclaimed Property Act and for the payment of a portion of
23 the required State contributions to the designated retirement
24 systems.
25 "Designated retirement systems" means:
26 (1) the State Employees' Retirement System of
27 Illinois;
28 (2) the Teachers' Retirement System of the State of
29 Illinois;
30 (3) the State Universities Retirement System;
31 (4) the Judges Retirement System of Illinois; and
32 (5) the General Assembly Retirement System.
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1 (b) Each year the General Assembly may make
2 appropriations from the State Pensions Fund for the
3 administration of the Uniform Disposition of Unclaimed
4 Property Act.
5 Each month, the Commissioner of the Office of Banks and
6 Real Estate shall certify to the State Treasurer the actual
7 expenditures that the Office of Banks and Real Estate
8 incurred conducting unclaimed property examinations under the
9 Uniform Disposition of Unclaimed Property Act during the
10 immediately preceding month. Within a reasonable time
11 following the acceptance of such certification by the State
12 Treasurer, the State Treasurer shall pay from its
13 appropriation from the State Pensions Fund to the Bank and
14 Trust Company Fund and the Savings and Residential Finance
15 Regulatory Fund an amount equal to the expenditures incurred
16 by each Fund for that month.
17 Each month, the Director of Financial Institutions shall
18 certify to the State Treasurer the actual expenditures that
19 the Department of Financial Institutions incurred conducting
20 unclaimed property examinations under the Uniform Disposition
21 of Unclaimed Property Act during the immediately preceding
22 month. Within a reasonable time following the acceptance of
23 such certification by the State Treasurer, the State
24 Treasurer shall pay from its appropriation from the State
25 Pensions Fund to the Financial Institutions Fund and the
26 Credit Union Fund an amount equal to the expenditures
27 incurred by each Fund for that month.
28 (c) Each year the General Assembly shall appropriate a
29 total amount equal to the balance in the State Pensions Fund
30 at the close of business on June 30 of the preceding fiscal
31 year, less $5,000,000, as part of the required State
32 contributions to the designated retirement systems. The
33 amount of the appropriation to each designated retirement
34 system shall constitute a portion of the total appropriation
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1 under this subsection for that fiscal year which is the same
2 as that retirement system's portion of the total actuarial
3 reserve deficiency of the systems, as most recently
4 determined by the Bureau of the Budget.
5 (d) The Bureau of the Budget shall determine the
6 individual and total reserve deficiencies of the designated
7 retirement systems. For this purpose, the Bureau of the
8 Budget shall utilize the latest available audit and actuarial
9 reports of each of the retirement systems and the relevant
10 reports and statistics of the Public Employee Pension Fund
11 Division of the Department of Insurance.
12 (e) The changes to this Section made by this amendatory
13 Act of 1994 shall first apply to distributions from the Fund
14 for State fiscal year 1996.
15 (Source: P.A. 87-838; 88-593, eff. 8-22-94.)"; and
16 on page 6, by replacing line 15 with the following:
17 "changing Sections 48 and 65 as follows:
18 (205 ILCS 5/48) (from Ch. 17, par. 359)
19 Sec. 48. Commissioner's powers; duties. The Commissioner
20 shall have the powers and authority, and is charged with the
21 duties and responsibilities designated in this Act, and a
22 State bank shall not be subject to any other visitorial power
23 other than as authorized by this Act, except those vested in
24 the courts, or upon prior consultation with the Commissioner,
25 a foreign bank regulator with an appropriate supervisory
26 interest in the parent or affiliate of a state bank. In the
27 performance of the Commissioner's duties:
28 (1) The Commissioner shall call for statements from all
29 State banks as provided in Section 47 at least one time
30 during each calendar quarter.
31 (2) (a) The Commissioner, as often as the Commissioner
32 shall deem necessary or proper, and no less frequently than
33 18 months following the preceding examination, shall appoint
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1 a suitable person or persons to make an examination of the
2 affairs of every State bank, except that for every eligible
3 State bank, as defined by regulation, the Commissioner in
4 lieu of the examination may accept on an alternating basis
5 the examination made by the eligible State bank's appropriate
6 federal banking agency pursuant to Section 111 of the Federal
7 Deposit Insurance Corporation Improvement Act of 1991,
8 provided the appropriate federal banking agency has made such
9 an examination. A person so appointed shall not be a
10 stockholder or officer or employee of any bank which that
11 person may be directed to examine, and shall have powers to
12 make a thorough examination into all the affairs of the bank
13 and in so doing to examine any of the officers or agents or
14 employees thereof on oath and shall make a full and detailed
15 report of the condition of the bank to the Commissioner. In
16 making the examination the examiners shall include an
17 examination of the affairs of all the affiliates of the bank,
18 as defined in subsection (b) of Section 35.2 of this Act, as
19 shall be necessary to disclose fully the conditions of the
20 affiliates, the relations between the bank and the affiliates
21 and the effect of those relations upon the affairs of the
22 bank, and in connection therewith shall have power to examine
23 any of the officers, directors, agents, or employees of the
24 affiliates on oath. After May 31, 1997, the Commissioner may
25 enter into cooperative agreements with state regulatory
26 authorities of other states to provide for examination of
27 State bank branches in those states, and the Commissioner may
28 accept reports of examinations of State bank branches from
29 those state regulatory authorities. These cooperative
30 agreements may set forth the manner in which the other state
31 regulatory authorities may be compensated for examinations
32 prepared for and submitted to the Commissioner.
33 (b) After May 31, 1997, the Commissioner is authorized
34 to examine, as often as the Commissioner shall deem necessary
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1 or proper, branches of out-of-state banks. The Commissioner
2 may establish and may assess fees to be paid to the
3 Commissioner for examinations under this subsection (b). The
4 fees shall be borne by the out-of-state bank, unless the fees
5 are borne by the state regulatory authority that chartered
6 the out-of-state bank, as determined by a cooperative
7 agreement between the Commissioner and the state regulatory
8 authority that chartered the out-of-state bank.
9 (2.5) Whenever any State bank, any subsidiary or
10 affiliate of a State bank, or after May 31, 1997, any branch
11 of an out-of-state bank causes to be performed, by contract
12 or otherwise, any bank services for itself, whether on or off
13 its premises:
14 (a) that performance shall be subject to
15 examination by the Commissioner to the same extent as if
16 services were being performed by the bank or, after May
17 31, 1997, branch of the out-of-state bank itself on its
18 own premises; and
19 (b) the bank or, after May 31, 1997, branch of the
20 out-of-state bank shall notify the Commissioner of the
21 existence of a service relationship. The notification
22 shall be submitted with the first statement of condition
23 (as required by Section 47 of this Act) due after the
24 making of the service contract or the performance of the
25 service, whichever occurs first. The Commissioner shall
26 be notified of each subsequent contract in the same
27 manner.
28 For purposes of this subsection (2.5), the term "bank
29 services" means services such as sorting and posting of
30 checks and deposits, computation and posting of interest and
31 other credits and charges, preparation and mailing of checks,
32 statements, notices, and similar items, or any other
33 clerical, bookkeeping, accounting, statistical, or similar
34 functions performed for a State bank, including but not
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1 limited to electronic data processing related to those bank
2 services.
3 (3) The expense of administering this Act, including the
4 expense of the examinations of State banks as provided in
5 this Act, shall to the extent of the amounts resulting from
6 the fees provided for in paragraphs (a), (a-2), and (b) of
7 this subsection (3) be assessed against and borne by the
8 State banks:
9 (a) Each bank shall pay to the Commissioner a Call
10 Report Fee which shall be paid in quarterly installments
11 equal to one-fourth of the sum of the annual fixed fee of
12 $800, plus a variable fee based on the assets shown on
13 the quarterly statement of condition delivered to the
14 Commissioner in accordance with Section 47 for the
15 preceding quarter according to the following schedule:
16 16¢ per $1,000 of the first $5,000,000 of total assets,
17 15¢ per $1,000 of the next $20,000,000 of total assets,
18 13¢ per $1,000 of the next $75,000,000 of total assets,
19 9¢ per $1,000 of the next $400,000,000 of total assets,
20 7¢ per $1,000 of the next $500,000,000 of total assets,
21 and 5¢ per $1,000 of all assets in excess of
22 $1,000,000,000, of the State bank. The Call Report Fee
23 shall be calculated by the Commissioner and billed to the
24 banks for remittance at the time of the quarterly
25 statements of condition provided for in Section 47. The
26 Commissioner may require payment of the fees provided in
27 this Section by an electronic transfer of funds or an
28 automatic debit of an account of each of the State banks.
29 In case more than one examination of any bank is deemed
30 by the Commissioner to be necessary in any examination
31 frequency cycle specified in subsection 2(a) of this
32 Section, and is performed at his direction, the
33 Commissioner may assess a reasonable additional fee to
34 recover the cost of the additional examination; provided,
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1 however, that an examination conducted at the request of
2 the State Treasurer pursuant to the Uniform Disposition
3 of Unclaimed Property Act shall not be deemed to be an
4 additional examination under this Section. In lieu of the
5 method and amounts set forth in this paragraph (a) for
6 the calculation of the Call Report Fee, the Commissioner
7 may specify by rule that the Call Report Fees provided by
8 this Section may be assessed semiannually or some other
9 period and may provide in the rule the formula to be used
10 for calculating and assessing the periodic Call Report
11 Fees to be paid by State banks.
12 (a-1) If in the opinion of the Commissioner an
13 emergency exists or appears likely, the Commissioner may
14 assign an examiner or examiners to monitor the affairs of
15 a State bank with whatever frequency he deems
16 appropriate, including but not limited to a daily basis.
17 The reasonable and necessary expenses of the Commissioner
18 during the period of the monitoring shall be borne by the
19 subject bank. The Commissioner shall furnish the State
20 bank a statement of time and expenses if requested to do
21 so within 30 days of the conclusion of the monitoring
22 period.
23 (a-2) On and after January 1, 1990, the reasonable
24 and necessary expenses of the Commissioner during
25 examination of the performance of electronic data
26 processing services under subsection (2.5) shall be borne
27 by the banks for which the services are provided. An
28 amount, based upon a fee structure prescribed by the
29 Commissioner, shall be paid by the banks or, after May
30 31, 1997, branches of out-of-state banks receiving the
31 electronic data processing services along with the Call
32 Report Fee assessed under paragraph (a) of this
33 subsection (3).
34 (a-3) After May 31, 1997, the reasonable and
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1 necessary expenses of the Commissioner during examination
2 of the performance of electronic data processing services
3 under subsection (2.5) at or on behalf of branches of
4 out-of-state banks shall be borne by the out-of-state
5 banks, unless those expenses are borne by the state
6 regulatory authorities that chartered the out-of-state
7 banks, as determined by cooperative agreements between
8 the Commissioner and the state regulatory authorities
9 that chartered the out-of-state banks.
10 (b) "Fiscal year" for purposes of this Section 48
11 is defined as a period beginning July 1 of any year and
12 ending June 30 of the next year. The Commissioner shall
13 receive for each fiscal year, commencing with the fiscal
14 year ending June 30, 1987, a contingent fee equal to the
15 lesser of the aggregate of the fees paid by all State
16 banks under paragraph (a) of subsection (3) for that
17 year, or the amount, if any, whereby the aggregate of the
18 administration expenses, as defined in paragraph (c), for
19 that fiscal year exceeds the sum of the aggregate of the
20 fees payable by all State banks for that year under
21 paragraph (a) of subsection (3), plus any amounts
22 transferred into the Bank and Trust Company Fund from the
23 State Pensions Fund for that year, plus all other amounts
24 collected by the Commissioner for that year under any
25 other provision of this Act, plus the aggregate of all
26 fees collected for that year by the Commissioner under
27 the Corporate Fiduciary Act, excluding the receivership
28 fees provided for in Section 5-10 of the Corporate
29 Fiduciary Act, and the Foreign Banking Office Act. The
30 aggregate amount of the contingent fee thus arrived at
31 for any fiscal year shall be apportioned amongst,
32 assessed upon, and paid by the State banks and foreign
33 banking corporations, respectively, in the same
34 proportion that the fee of each under paragraph (a) of
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1 subsection (3), respectively, for that year bears to the
2 aggregate for that year of the fees collected under
3 paragraph (a) of subsection (3). The aggregate amount of
4 the contingent fee, and the portion thereof to be
5 assessed upon each State bank and foreign banking
6 corporation, respectively, shall be determined by the
7 Commissioner and shall be paid by each, respectively,
8 within 120 days of the close of the period for which the
9 contingent fee is computed and is payable, and the
10 Commissioner shall give 20 days advance notice of the
11 amount of the contingent fee payable by the State bank
12 and of the date fixed by the Commissioner for payment of
13 the fee.
14 (c) The "administration expenses" for any fiscal
15 year shall mean the ordinary and contingent expenses for
16 that year incident to making the examinations provided
17 for by, and for otherwise administering, this Act, the
18 Corporate Fiduciary Act, excluding the expenses paid from
19 the Corporate Fiduciary Receivership account in the Bank
20 and Trust Company Fund, the Foreign Banking Office Act,
21 the Electronic Fund Transfer Act, and the Illinois Bank
22 Examiners' Education Foundation Act, including all
23 salaries and other compensation paid for personal
24 services rendered for the State by officers or employees
25 of the State, including the Commissioner and the Deputy
26 Commissioners, all expenditures for telephone and
27 telegraph charges, postage and postal charges, office
28 stationery, supplies and services, and office furniture
29 and equipment, including typewriters and copying and
30 duplicating machines and filing equipment, surety bond
31 premiums, and travel expenses of those officers and
32 employees, employees, expenditures or charges for the
33 acquisition, enlargement or improvement of, or for the
34 use of, any office space, building, or structure, or
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1 expenditures for the maintenance thereof or for
2 furnishing heat, light, or power with respect thereto,
3 all to the extent that those expenditures are directly
4 incidental to such examinations or administration. The
5 Commissioner shall not be required by paragraphs (c) or
6 (d-1) of this subsection (3) to maintain in any fiscal
7 year's budget appropriated reserves for accrued vacation
8 and accrued sick leave that is required to be paid to
9 employees of the Commissioner upon termination of their
10 service with the Commissioner in an amount that is more
11 than is reasonably anticipated to be necessary for any
12 anticipated turnover in employees, whether due to normal
13 attrition or due to layoffs, terminations, or
14 resignations.
15 (d) The aggregate of all fees collected by the
16 Commissioner under this Act, the Corporate Fiduciary Act,
17 or the Foreign Banking Office Act on and after July 1,
18 1979, shall be paid promptly after receipt of the same,
19 accompanied by a detailed statement thereof, into the
20 State treasury and shall be set apart in a special fund
21 to be known as the "Bank and Trust Company Fund", except
22 as provided in paragraph (c) of subsection (11) of this
23 Section. The amount from time to time deposited into the
24 Bank and Trust Company Fund shall be used to offset the
25 ordinary administrative expenses of the Commissioner of
26 Banks and Real Estate as defined in this Section. Nothing
27 in this amendatory Act of 1979 shall prevent continuing
28 the practice of paying expenses involving salaries,
29 retirement, social security, and State-paid insurance
30 premiums of State officers by appropriations from the
31 General Revenue Fund. However, the General Revenue Fund
32 shall be reimbursed for those payments made on and after
33 July 1, 1979, by an annual transfer of funds from the
34 Bank and Trust Company Fund.
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1 (d-1) Adequate funds shall be available in the Bank
2 and Trust Company Fund to permit the timely payment of
3 administration expenses. In each fiscal year the total
4 administration expenses shall be deducted from the total
5 fees collected by the Commissioner and the remainder
6 transferred into the Cash Flow Reserve Account, unless
7 the balance of the Cash Flow Reserve Account prior to the
8 transfer equals or exceeds one-fourth of the total
9 initial appropriations from the Bank and Trust Company
10 Fund for the subsequent year, in which case the remainder
11 shall be credited to State banks and foreign banking
12 corporations and applied against their fees for the
13 subsequent year. The amount credited to each State bank
14 and foreign banking corporation shall be in the same
15 proportion as the Call Report Fees paid by each for the
16 year bear to the total Call Report Fees collected for the
17 year. If, after a transfer to the Cash Flow Reserve
18 Account is made or if no remainder is available for
19 transfer, the balance of the Cash Flow Reserve Account is
20 less than one-fourth of the total initial appropriations
21 for the subsequent year and the amount transferred is
22 less than 5% of the total Call Report Fees for the year,
23 additional amounts needed to make the transfer equal to
24 5% of the total Call Report Fees for the year shall be
25 apportioned amongst, assessed upon, and paid by the State
26 banks and foreign banking corporations in the same
27 proportion that the Call Report Fees of each,
28 respectively, for the year bear to the total Call Report
29 Fees collected for the year. The additional amounts
30 assessed shall be transferred into the Cash Flow Reserve
31 Account. For purposes of this paragraph (d-1), the
32 calculation of the fees collected by the Commissioner
33 shall exclude the receivership fees provided for in
34 Section 5-10 of the Corporate Fiduciary Act.
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1 (e) The Commissioner may upon request certify to
2 any public record in his keeping and shall have authority
3 to levy a reasonable charge for issuing certifications of
4 any public record in his keeping.
5 (f) In addition to fees authorized elsewhere in
6 this Act, the Commissioner may, in connection with a
7 review, approval, or provision of a service, levy a
8 reasonable charge to recover the cost of the review,
9 approval, or service.
10 (4) Nothing contained in this Act shall be construed to
11 limit the obligation relative to examinations and reports of
12 any State bank, deposits in which are to any extent insured
13 by the United States or any agency thereof, nor to limit in
14 any way the powers of the Commissioner with reference to
15 examinations and reports of that bank.
16 (5) The nature and condition of the assets in or
17 investment of any bonus, pension, or profit sharing plan for
18 officers or employees of every State bank or, after May 31,
19 1997, branch of an out-of-state bank shall be deemed to be
20 included in the affairs of that State bank or branch of an
21 out-of-state bank subject to examination by the Commissioner
22 under the provisions of subsection (2) of this Section, and
23 if the Commissioner shall find from an examination that the
24 condition of or operation of the investments or assets of the
25 plan is unlawful, fraudulent, or unsafe, or that any trustee
26 has abused his trust, the Commissioner shall, if the
27 situation so found by the Commissioner shall not be corrected
28 to his satisfaction within 60 days after the Commissioner has
29 given notice to the board of directors of the State bank or
30 out-of-state bank of his findings, report the facts to the
31 Attorney General who shall thereupon institute proceedings
32 against the State bank or out-of-state bank, the board of
33 directors thereof, or the trustees under such plan as the
34 nature of the case may require.
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1 (6) The Commissioner shall have the power:
2 (a) To promulgate reasonable rules for the purpose
3 of administering the provisions of this Act.
4 (b) To issue orders for the purpose of
5 administering the provisions of this Act and any rule
6 promulgated in accordance with this Act.
7 (c) To appoint hearing officers to execute any of
8 the powers granted to the Commissioner under this Section
9 for the purpose of administering this Act and any rule
10 promulgated in accordance with this Act.
11 (d) To subpoena witnesses, to compel their
12 attendance, to administer an oath, to examine any person
13 under oath, and to require the production of any relevant
14 books, papers, accounts, and documents in the course of
15 and pursuant to any investigation being conducted, or any
16 action being taken, by the Commissioner in respect of any
17 matter relating to the duties imposed upon, or the powers
18 vested in, the Commissioner under the provisions of this
19 Act or any rule promulgated in accordance with this Act.
20 (e) To conduct hearings.
21 (7) Whenever, in the opinion of the Commissioner, any
22 director, officer, employee, or agent of a State bank or,
23 after May 31, 1997, of any branch of an out-of-state bank
24 shall have violated any law, rule, or order relating to that
25 bank or shall have engaged in an unsafe or unsound practice
26 in conducting the business of that bank or shall have
27 violated any law or engaged or participated in any unsafe or
28 unsound practice in connection with any financial institution
29 or other business entity such that the character and fitness
30 of the director, officer, employee, or agent does not assure
31 reasonable promise of safe and sound operation of the State
32 bank, the Commissioner may issue an order of removal. If, in
33 the opinion of the Commissioner, any former director,
34 officer, employee, or agent of a State bank, prior to the
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1 termination of his or her service with that bank, violated
2 any law, rule, or order relating to that State bank or
3 engaged in an unsafe or unsound practice in conducting the
4 business of that bank or violated any law or engaged or
5 participated in any unsafe or unsound practice in connection
6 with any financial institution or other business entity such
7 that the character and fitness of the director, officer,
8 employee, or agent would not have assured reasonable promise
9 of safe and sound operation of the State bank, the
10 Commissioner may issue an order prohibiting that person from
11 further service with a bank as a director, officer, employee,
12 or agent. An order issued pursuant to this subsection shall
13 be served upon the director, officer, employee, or agent. A
14 copy of the order shall be sent to each director of the bank
15 affected by registered mail. The person affected by the
16 action may request a hearing before the State Banking Board
17 within 10 days after receipt of the order of removal. The
18 hearing shall be held by the Board within 30 days after the
19 request has been received by the Board. The Board shall make
20 a determination approving, modifying, or disapproving the
21 order of the Commissioner as its final administrative
22 decision. If a hearing is held by the Board, the Board shall
23 make its determination within 60 days from the conclusion of
24 the hearing. Any person affected by a decision of the Board
25 under this subsection (7) of Section 48 of this Act may have
26 the decision reviewed only under and in accordance with the
27 Administrative Review Law and the rules adopted pursuant
28 thereto. A copy of the order shall also be served upon the
29 bank of which he is a director, officer, employee, or agent,
30 whereupon he shall cease to be a director, officer, employee,
31 or agent of that bank. The Commissioner may institute a
32 civil action against the director, officer, or agent of the
33 State bank or, after May 31, 1997, of the branch of the
34 out-of-state bank against whom any order provided for by this
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1 subsection (7) of this Section 48 has been issued, and
2 against the State bank or, after May 31, 1997, out-of-state
3 bank, to enforce compliance with or to enjoin any violation
4 of the terms of the order. Any person who has been the
5 subject of an order of removal or an order of prohibition
6 issued by the Commissioner under this subsection or Section
7 5-6 of the Corporate Fiduciary Act may not thereafter serve
8 as director, officer, employee, or agent of any State bank or
9 of any branch of any out-of-state bank, or of any corporate
10 fiduciary, as defined in Section 1-5.05 of the Corporate
11 Fiduciary Act, or of any other entity that is subject to
12 licensure or regulation by the Commissioner or the Office of
13 Banks and Real Estate unless the Commissioner has granted
14 prior approval in writing.
15 (8) The Commissioner may impose civil penalties of up to
16 $10,000 against any person for each violation of any
17 provision of this Act, any rule promulgated in accordance
18 with this Act, any order of the Commissioner, or any other
19 action which in the Commissioner's discretion is an unsafe or
20 unsound banking practice.
21 (9) The Commissioner may impose civil penalties of up to
22 $100 against any person for the first failure to comply with
23 reporting requirements set forth in the report of examination
24 of the bank and up to $200 for the second and subsequent
25 failures to comply with those reporting requirements.
26 (10) All final administrative decisions of the
27 Commissioner hereunder shall be subject to judicial review
28 pursuant to the provisions of the Administrative Review Law.
29 For matters involving administrative review, venue shall be
30 in either Sangamon County or Cook County.
31 (11) The endowment fund for the Illinois Bank Examiners'
32 Education Foundation shall be administered as follows:
33 (a) (Blank).
34 (b) The Foundation is empowered to receive
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1 voluntary contributions, gifts, grants, bequests, and
2 donations on behalf of the Illinois Bank Examiners'
3 Education Foundation from national banks and other
4 persons for the purpose of funding the endowment of the
5 Illinois Bank Examiners' Education Foundation.
6 (c) The aggregate of all special educational fees
7 collected by the Commissioner and property received by
8 the Commissioner on behalf of the Illinois Bank
9 Examiners' Education Foundation under this subsection
10 (11) on or after June 30, 1986, shall be either (i)
11 promptly paid after receipt of the same, accompanied by a
12 detailed statement thereof, into the State Treasury and
13 shall be set apart in a special fund to be known as "The
14 Illinois Bank Examiners' Education Fund" to be invested
15 by either the Treasurer of the State of Illinois in the
16 Public Treasurers' Investment Pool or in any other
17 investment he is authorized to make or by the Illinois
18 State Board of Investment as the board of trustees of the
19 Illinois Bank Examiners' Education Foundation may direct
20 or (ii) deposited into an account maintained in a
21 commercial bank or corporate fiduciary in the name of the
22 Illinois Bank Examiners' Education Foundation pursuant to
23 the order and direction of the Board of Trustees of the
24 Illinois Bank Examiners' Education Foundation.
25 (12) (Blank).
26 (Source: P.A. 89-208, eff. 9-29-95; 89-317, eff. 8-11-95;
27 89-508, eff. 7-3-96; 89-567, eff. 7-26-96; 89-626, eff.
28 8-9-96; 90-14, eff. 7-1-97; 90-301, eff. 8-1-97; 90-665, eff.
29 7-30-98.)"; and
30 on page 21, line 28, before the period, by inserting the
31 following:
32 "; provided, however, that the rights, powers, duties, and
33 functions involving the examination of the records of any
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1 person that the State Treasurer has reason to believe has
2 failed to report properly under this Act shall be transferred
3 to the Office of Banks and Real Estate if the person is
4 regulated by the Office of Banks and Real Estate under the
5 Illinois Banking Act, the Corporate Fiduciary Act, the
6 Foreign Banking Office Act, the Illinois Savings and Loan Act
7 of 1985, or the Savings Bank Act and shall be retained by the
8 Department of Financial Institutions if the person is doing
9 business in the State under the supervision of the Department
10 of Financial Institutions, the National Credit Union
11 Administration, the Office of Thrift Supervision, or the
12 Comptroller of the Currency"; and
13 on page 30, by replacing line 9 with the following:
14 "of an examination, the State"; and
15 on page 39, by replacing lines 7 through 11 with the
16 following:
17 "(b) The State Director may at reasonable times and upon
18 reasonable notice examine the records of any person if the
19 State Treasurer Director has reason to believe that such
20 person has failed to report property that should have been
21 reported pursuant to this Act. Upon the direction of the
22 State Treasurer to do so, the Office of Banks and Real Estate
23 shall, on behalf of the State, conduct the examination of the
24 records of any person who is regulated by the Office of Banks
25 and Real Estate under the Illinois Banking Act, the Corporate
26 Fiduciary Act, the Foreign Banking Office Act, the Illinois
27 Savings and Loan Act of 1985, or the Savings Bank Act. Upon
28 direction of the State Treasurer to do so, the Department of
29 Financial Institutions shall, on behalf of the State, conduct
30 the examination of the records of any person doing business
31 in the State under the supervision of the Department of
32 Financial Institutions, the National Credit Union
33 Administration, the Office of Thrift Supervision, or the
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1 Comptroller of the Currency. The Office of Banks and Real
2 Estate and the Department of Financial Institutions shall
3 conduct all examinations during the next regular examination
4 of the person, unless the State Treasurer has reason to
5 believe that an accelerated examination schedule is required
6 to protect the State's interest, in which case the
7 examination must be conducted within 90 days of the State
8 Treasurer's direction to do so. The Office of Banks and Real
9 Estate and the Department of Financial Institutions may
10 contract with third parties to ensure that the examinations
11 are commenced in a timely manner. The Department of
12 Financial Institutions and the Office of Banks and Real
13 Estate shall report the results of all examinations that are
14 undertaken at the direction of the State Treasurer under this
15 Act, which may include confidential information, to the State
16 Treasurer in a timely manner and, upon the request of the
17 Treasurer, shall assist in the evaluation of the
18 examinations. All examinations that are not performed by the
19 Office of Banks and Real Estate or the Department of
20 Financial Institutions shall be performed by the State
21 Treasurer."; and
22 on page 39, line 13, by replacing "Office of the State
23 Treasurer" with "State"; and
24 on page 40, lines 9 and 15, by replacing "commence" each time
25 it appears with "direct the commencement of commence"; and
26 on page 41, line 9, by deleting "Office of the"; and
27 on page 41, line 10, by deleting "Treasurer"; and
28 on page 41, line 12, by deleting "Office of the"; and
29 on page 41, line 13, by deleting "Treasurer"; and
30 on page 42, line 17, by replacing "Office of the State
31 Treasurer" with "State"; and
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1 on page 43, line 20, by deleting "Office of the"; and
2 on page 43, line 21, by replacing "State Treasurer's" with
3 "State's"; and
4 on page 44, line 21, by replacing "State Treasurer Director
5 is" with "State Treasurer, Director of Financial
6 Institutions, and the Commissioner of Banks and Real Estate
7 are Director is".