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92_HB5839enr HB5839 Enrolled LRB9214017JSpc 1 AN ACT concerning financial institutions. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Illinois Savings and Loan Act of 1985 is 5 amended by changing Section 7-19.1 as follows: 6 (205 ILCS 105/7-19.1) (from Ch. 17, par. 3307-19.1) 7 Sec. 7-19.1. Savings and Residential Finance Regulatory 8 Fund. 9 (a) The aggregate of all fees collected by the 10 Commissioner under this Act shall be paid promptly after 11 receipt of the same, accompanied by a detailed statement 12 thereof, into the State treasury and shall be set apart in 13 the Savings and Residential Finance Regulatory Fund, a 14 special fund hereby created in the State treasury. The 15 amounts deposited into the Fund shall be used for the 16 ordinary and contingent expenses of the Office of Banks and 17 Real Estate. Nothing in this Act shall prevent continuing 18 the practice of paying expenses involving salaries, 19 retirement, social security, and State-paid insurance of 20 State officers by appropriation from the General Revenue 21 Fund. 22 (b) Moneys in the Savings and Residential Finance 23 Regulatory Fund may not be appropriated, assigned, or 24 transferred to another State fund. The moneys in the Fund 25 shall be for the sole benefit of the institutions assessed. 26 (c) All earnings received from investments of funds in 27 the Savings and Residential Finance Regulatory Fund shall be 28 deposited into the Savings and Residential Finance Regulatory 29 Fund and may be used for the same purposes as fees deposited 30 into that Fund. 31 (Source: P.A. 88-579, eff. 8-12-94; 89-508, eff. 7-3-96.) HB5839 Enrolled -2- LRB9214017JSpc 1 Section 10. The Savings Bank Act is amended by changing 2 Section 6013 as follows: 3 (205 ILCS 205/6013) (from Ch. 17, par. 7306-13) 4 Sec. 6013. Loans to one borrower. 5 (a) Except as provided in subsection (c), the total 6 loans and extensions of credit, both direct and indirect, by 7 a savings bank to any person, other than a municipal 8 corporation for money borrowed, outstanding at one time shall 9 not exceed 25%20%of the savings bank's total capital plus 10 general loan loss reserves. 11 (b) Except as provided in subsection (c), the total 12 loans and extensions of credit, both direct and indirect, by 13 a savings bank to any person outstanding at one time and at 14 least 100% secured by readily marketable collateral having a 15 market value, as determined by reliable and continuously 16 available price quotations, shall not exceed 10% of the 17 savings bank's total capital plus general loan loss reserves. 18 This limitation shall be separate from and in addition to the 19 limitation contained in subsection (a). 20 (c) If the limit under subsection (a) or (b) on total 21 loans to one borrower is less than $500,000, a savings bank 22 that meets its minimum capital requirement under this Act may 23 have loan and extensions of credit, both direct and indirect, 24 outstanding to any person at one time not to exceed $500,000. 25 With the prior written approval of the Commissioner, a 26 savings bank that has capital in excess of 6% of assets may 27 make loans and extensions of credit to one borrower for the 28 development of residential housing properties, located or to 29 be located in this State, not to exceed 30% of the savings 30 bank's total capital plus general loan loss reserves. 31 (d) For purposes of this Section, the term "person" 32 shall be deemed to include an individual, firm, corporation, 33 business trust, partnership, trust, estate, association, HB5839 Enrolled -3- LRB9214017JSpc 1 joint venture, pool, syndicate, sole proprietorship, 2 unincorporated association, any political subdivision, or any 3 similar entity or organization. 4 (e) For the purposes of this Section any loan or 5 extension of credit granted to one person, the proceeds of 6 which are used for the direct benefit of a second person, 7 shall be deemed a loan or extension of credit to the second 8 person as well as the first person. In addition, a loan or 9 extension of credit to one person shall be deemed a loan or 10 extension of credit to others when a common enterprise exists 11 between the first person and such other persons. 12 (f) For the purposes of this Section, the total 13 liabilities of a firm, partnership, pool, syndicate, or joint 14 venture shall include the liabilities of the members of the 15 entity. 16 (g) For the purposes of this Section, the term "readily 17 marketable collateral" means financial instruments or bullion 18 that are salable under ordinary circumstances with reasonable 19 promptness at a fair market value on an auction or a 20 similarly available daily bid-and-ask price market. 21 "Financial instruments" include stocks, bonds, notes, 22 debentures traded on a national exchange or over the counter, 23 commercial paper, negotiable certificates of deposit, 24 bankers' acceptances, and shares in money market or mutual 25 funds. 26 (h) Each savings bank shall institute adequate 27 procedures to ensure that collateral fully secures the 28 outstanding loan or extension of credit at all times. 29 (i) If collateral values fall below 100% of the 30 outstanding loan or extension of credit to the extent that 31 the loan or extension of credit no longer is in conformance 32 with subsection (b) and exceeds the 25%20%limitation of 33 subsection (a), the loan must be brought into conformance 34 with this Section within 5 business days except where HB5839 Enrolled -4- LRB9214017JSpc 1 judicial proceedings or other similar extraordinary 2 occurrences prevent the savings bank from taking action. 3 (j) This Section shall not apply to loans or extensions 4 of credit to the United States of America or its agencies or 5 this State or its agencies or to any loan, investment, or 6 extension of credit made pursuant to Section 6003 of this 7 Act. 8 (k) This Section does not apply to the obligations as 9 endorser, whether with or without recourse, or as guarantor, 10 whether conditional or unconditional, of negotiable or 11 nonnegotiable installment consumer paper of the person 12 transferring the same if the bank's files or the knowledge of 13 its officers of the financial condition of each maker of 14 those obligations is reasonably adequate and if an officer of 15 the bank, designated for that purpose by the board of 16 directors of the bank, certifies that the responsibility of 17 each maker of the obligations has been evaluated and that the 18 bank is relying primarily upon each maker for the payment of 19 the obligations. The certification shall be in writing and 20 shall be retained as part of the records of the bank. 21 (l) The Commissioner may prescribe rules to carry out 22 the purposes of this Section and to establish limits or 23 requirements other than those specified in this Section for 24 particular types of loans and extensions of credit. 25 (Source: P.A. 92-483, eff. 8-23-01.) 26 Section 99. Effective date. This Act takes effect upon 27 becoming law.