State of Illinois
91st General Assembly
Legislation

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91_HB3286eng

 
HB3286 Engrossed                               LRB9111840JSpc

 1        AN  ACT  to  amend  the  Illinois Banking Act by changing
 2    Section 5.

 3        Be it enacted by the People of  the  State  of  Illinois,
 4    represented in the General Assembly:

 5        Section  5.  The  Illinois  Banking  Act  is  amended  by
 6    changing Section 5 as follows:

 7        (205 ILCS 5/5) (from Ch. 17, par. 311)
 8        Sec.  5.  General  corporate  powers.   A  bank organized
 9    under this Act or subject hereto shall be  a  body  corporate
10    and  politic  and  shall, without specific mention thereof in
11    the charter, have all the powers conferred by  this  Act  and
12    the following additional general corporate powers:
13        (1)  To  sue  and  be  sued,  complain, and defend in its
14    corporate name.
15        (2)  To have a corporate seal, which may  be  altered  at
16    pleasure,  and  to  use the same by causing it or a facsimile
17    thereof  to  be  impressed  or  affixed  or  in  any   manner
18    reproduced, provided that the affixing of a corporate seal to
19    an  instrument shall not give the instrument additional force
20    or effect, or change the construction thereof, and the use of
21    a corporate seal is not mandatory.
22        (3)  To  make,  alter,  amend,  and  repeal  bylaws,  not
23    inconsistent  with  its  charter  or  with   law,   for   the
24    administration  of the affairs of the bank.  If this Act does
25    not  provide  specific  guidance  in  matters  of   corporate
26    governance, the provisions of the Business Corporation Act of
27    1983 may be used if so provided in the bylaws.
28        (4)  To  elect  or appoint and remove officers and agents
29    of  the  bank  and  define  their  duties   and   fix   their
30    compensation.
31        (5)  To   adopt   and  operate  reasonable  bonus  plans,
 
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 1    profit-sharing plans, stock-bonus plans, stock-option  plans,
 2    pension  plans and similar incentive plans for its directors,
 3    officers and employees.
 4        (5.1)  To manage, operate and administer a fund  for  the
 5    investment of funds by a public agency or agencies, including
 6    any  unit  of  local  government  or  school district, or any
 7    person.  The fund for a public agency  shall  invest  in  the
 8    same   type  of  investments  and  be  subject  to  the  same
 9    limitations provided for the investment of public funds.  The
10    fund for public agencies shall  maintain  a  separate  ledger
11    showing  the  amount  of investment for each public agency in
12    the fund. "Public funds" and "public agency" as used in  this
13    Section shall have the meanings ascribed to them in Section 1
14    of the Public Funds Investment Act.
15        (6)  To  make reasonable donations for the public welfare
16    or  for  charitable,  scientific,  religious  or  educational
17    purposes.
18        (7)  To borrow or incur an obligation; and to pledge  its
19    assets:
20             (a)  to secure its borrowings, its lease of personal
21        or real property or its other nondeposit obligations;
22             (b)  to  enable  it  to act as agent for the sale of
23        obligations of the United States;
24             (c)  to secure  deposits  of  public  money  of  the
25        United  States,  whenever  required  by  the  laws of the
26        United  States,  including  without  being  limited   to,
27        revenues and funds the deposit of which is subject to the
28        control  or regulation of the United States or any of its
29        officers, agents, or employees and Postal Savings funds;
30             (d)  to secure deposits of public money of any state
31        or of any political corporation  or  subdivision  thereof
32        including,  without  being limited to, revenues and funds
33        the deposit  of  which  is  subject  to  the  control  or
34        regulation  of  any state or of any political corporation
 
HB3286 Engrossed            -3-                LRB9111840JSpc
 1        or subdivisions thereof or  of  any  of  their  officers,
 2        agents, or employees;
 3             (e)  to  secure  deposits of money whenever required
 4        by the National Bankruptcy Act;
 5             (f)  (blank); and
 6             (g)  to  secure  trust  funds  commingled  with  the
 7        bank's  funds,  whether  deposited  by  the  bank  or  an
 8        affiliate of the bank, pursuant to  Section  2-8  of  the
 9        Corporate Fiduciary Act.
10        (8)  To  own, possess, and carry as assets all or part of
11    the real estate necessary in or with which to do its  banking
12    business, either directly or indirectly through the ownership
13    of  all  or part of the capital stock, shares or interests in
14    any corporation, association, trust engaged  in  holding  any
15    part  or  parts  or all of the bank premises, engaged in such
16    business and in conducting a safe  deposit  business  in  the
17    premises or part of them, or engaged in any activity that the
18    bank  is  permitted  to  conduct  in a subsidiary pursuant to
19    paragraph (12) of this Section 5.
20        (9)  To own, possess, and  carry  as  assets  other  real
21    estate  to which it may obtain title in the collection of its
22    debts or that was  formerly  used  as  a  part  of  the  bank
23    premises,  but  title  to  any  real  estate except as herein
24    permitted shall not be retained by the bank, either  directly
25    or  by  or  through  a subsidiary, as permitted by subsection
26    (12) of this Section for a total period of more than 10 years
27    after acquiring title, either directly or indirectly.
28        (10)  To do any act, including the acquisition of  stock,
29    necessary  to  obtain  insurance  of  its  deposits,  or part
30    thereof, and any act necessary to obtain a guaranty, in whole
31    or in part, of any of its loans or investments by the  United
32    States  or  any agency thereof, and any act necessary to sell
33    or otherwise dispose of any of its loans  or  investments  to
34    the  United  States or any agency thereof, and to acquire and
 
HB3286 Engrossed            -4-                LRB9111840JSpc
 1    hold membership in the Federal Reserve System.
 2        (11)  Notwithstanding any other provisions of this Act or
 3    any other law, to do any act and to own, possess,  and  carry
 4    as assets property of the character, including stock, that is
 5    at  the  time authorized or permitted to national banks by an
 6    Act of Congress, but subject always to the  same  limitations
 7    and  restrictions  as are applicable to national banks by the
 8    pertinent federal law and subject to applicable provisions of
 9    the Financial Institutions Insurance Sales Law.
10        (12)  To own, possess, and carry as assets stock  of  one
11    or  more corporations that is, or are, engaged in one or more
12    of the following businesses:
13             (a)  holding  title  to  and  administering   assets
14        acquired  as a result of the collection or liquidating of
15        loans, investments, or discounts; or
16             (b)  holding title  to  and  administering  personal
17        property  acquired  by  the  bank, directly or indirectly
18        through a subsidiary,  for  the  purpose  of  leasing  to
19        others,  provided  the lease or leases and the investment
20        of the bank, directly or through a  subsidiary,  in  that
21        personal  property  otherwise comply with Section 35.1 of
22        this Act; or
23             (c)  carrying  on  or  administering  any   of   the
24        activities  excepting  the  receipt  of  deposits  or the
25        payment of checks or other  orders  for  the  payment  of
26        money  in  which  a  bank  may  engage in carrying on its
27        general banking business; provided, however, that nothing
28        contained in this paragraph (c) shall be deemed to permit
29        a bank organized under this Act or subject hereto to  do,
30        either directly or indirectly through any subsidiary, any
31        act,  including  the making of any loan or investment, or
32        to own, possess, or carry as assets any property that  if
33        done by or owned, possessed, or carried by the State bank
34        would  be  in violation of or prohibited by any provision
 
HB3286 Engrossed            -5-                LRB9111840JSpc
 1        of this Act.
 2        The provisions of this subsection (12) shall not apply to
 3    and shall not be deemed to limit the powers of a  State  bank
 4    with  respect  to  the ownership, possession, and carrying of
 5    stock that a State bank is  permitted  to  own,  possess,  or
 6    carry under this Act.
 7        Any  bank  intending to establish a subsidiary under this
 8    subsection (12) shall give written notice to the Commissioner
 9    60 days prior to the subsidiary's commencing of business  or,
10    as the case may be, prior to acquiring stock in a corporation
11    that  has  already  commenced  business.  After receiving the
12    notice, the Commissioner may waive or reduce the  balance  of
13    the  60  day notice period.  The Commissioner may specify the
14    form of the notice and may promulgate rules  and  regulations
15    to administer this subsection (12).
16        (13)  To   accept  for  payment  at  a  future  date  not
17    exceeding one year from the date of acceptance, drafts  drawn
18    upon  it  by  its customers; and to issue, advise, or confirm
19    letters of credit authorizing the  holders  thereof  to  draw
20    drafts upon it or its correspondents.
21        (14)  To  own and lease personal property acquired by the
22    bank at the request of a  prospective  lessee  and  upon  the
23    agreement  of  that  person  to  lease  the personal property
24    provided that the lease, the agreement with respect  thereto,
25    and  the amount of the investment of the bank in the property
26    comply with Section 35.1 of this Act.
27        (15) (a)  To establish and maintain, in addition  to  the
28        main  banking  premises,  branches  offering  any banking
29        services permitted at the  main  banking  premises  of  a
30        State bank.
31             (b)  To  establish and maintain, after May 31, 1997,
32        branches in another state that may conduct  any  activity
33        in  that  state  that  is authorized or permitted for any
34        bank that has a banking charter  issued  by  that  state,
 
HB3286 Engrossed            -6-                LRB9111840JSpc
 1        subject to the same limitations and restrictions that are
 2        applicable to banks chartered by that state.
 3        (16)  (Blank).
 4        (17)  To  establish and maintain terminals, as authorized
 5    by the Electronic Fund Transfer Act.
 6        (18)  To establish and maintain temporary service  booths
 7    at  any  International  Fair  held  in  this  State  which is
 8    approved by the United States Department of Commerce, for the
 9    duration of the international fair for the  sole  purpose  of
10    providing  a  convenient place for foreign trade customers at
11    the fair to exchange  their  home  countries'  currency  into
12    United  States currency or the converse. This power shall not
13    be construed  as  establishing  a  new  place  or  change  of
14    location for the bank providing the service booth.
15        (19)  To  indemnify  its  officers, directors, employees,
16    and agents, as authorized for corporations under Section 8.75
17    of the Business Corporation Act of 1983.
18        (20)  To own, possess, and carry as assets stock  of,  or
19    be  or  become  a member of, any corporation, mutual company,
20    association, trust, or other entity  formed  exclusively  for
21    the  purpose  of providing directors' and officers' liability
22    and bankers' blanket bond insurance or reinsurance to and for
23    the benefit of the stockholders, members,  or  beneficiaries,
24    or  their assets or businesses, or their officers, directors,
25    employees, or agents, and not to or for the  benefit  of  any
26    other person or entity or the public generally.
27        (21)  To  make debt or equity investments in corporations
28    or projects, whether for profit or not for  profit,  designed
29    to  promote the development of the community and its welfare,
30    provided that  the  aggregate  investment  in  all  of  these
31    corporations and in all of these projects does not exceed 10%
32    of  the unimpaired capital and unimpaired surplus of the bank
33    and  provided  that  this  limitation  shall  not  apply   to
34    creditworthy  loans  by  the  bank  to  those corporations or
 
HB3286 Engrossed            -7-                LRB9111840JSpc
 1    projects.  Upon written application to  the  Commissioner,  a
 2    bank  may make an investment that would, when aggregated with
 3    all other such investments,  exceed  10%  of  the  unimpaired
 4    capital  and unimpaired surplus of the bank. The Commissioner
 5    may approve the investment if he is of the opinion and  finds
 6    that the proposed investment will not have a material adverse
 7    effect on the safety and soundness of the bank.
 8        (22)  To own, possess, and carry as assets the stock of a
 9    corporation engaged in the ownership or operation of a travel
10    agency  or  to  operate  a  travel  agency  as  a part of its
11    business, provided that the bank either owned, possessed, and
12    carried as assets the stock of such a corporation or operated
13    a travel agency as part of its business before July 1, 1991.
14        (23)  With respect to affiliate facilities:
15             (a)  to conduct at affiliate facilities any  of  the
16        following  transactions  for  and  on  behalf  of another
17        commonly owned bank, if so authorized by the other  bank,
18        all  transactions  that  the  other bank is authorized or
19        permitted to perform:  receiving  deposits;  cashing  and
20        issuing checks, drafts, and money orders; changing money;
21        and receiving payments on existing indebtedness; and
22             (b)  to  authorize  a commonly owned bank to conduct
23        for and on behalf of it any of  the  transactions  it  is
24        authorized   or  permitted  to  perform  listed  in  this
25        paragraph (23) at one or more affiliate facilities.
26        Any bank intending to conduct or to authorize a  commonly
27    owned  bank  to  conduct  at an affiliate facility any of the
28    transactions specified in  this  paragraph  (23)  shall  give
29    written  notice  to  the Commissioner at least 30 days before
30    any such transaction is conducted at the affiliate facility.
31        (24)  To act as the agent for any fire,  life,  or  other
32    insurance  company  authorized  by  the State of Illinois, by
33    soliciting and selling insurance and collecting  premiums  on
34    policies  issued by such company; and to receive for services
 
HB3286 Engrossed            -8-                LRB9111840JSpc
 1    so rendered such fees or commissions as may  be  agreed  upon
 2    between  the  bank and the insurance company for which it may
 3    act as agent; provided, however, that no such bank  shall  in
 4    any  case  assume  or guarantee the payment of any premium on
 5    insurance  policies  issued  through  its   agency   by   its
 6    principal;  and  provided  further,  that  the bank shall not
 7    guarantee the truth of any statement made by  an  assured  in
 8    filing his application for insurance.
 9        (25)  Notwithstanding any other provisions of this Act or
10    any other law, to offer any product or service that is at the
11    time   authorized   or   permitted  to  any  insured  savings
12    association or out-of-state bank by applicable law,  provided
13    that powers conferred only by this subsection (25):
14             (a)  shall always be subject to the same limitations
15        and  restrictions  that  are  applicable  to  the insured
16        savings association or out-of-state bank for the  product
17        or service by such applicable law;
18             (b)  shall  be  subject  to applicable provisions of
19        the Financial Institutions Insurance Sales Law;
20             (c)  shall not include the right to own or conduct a
21        real estate brokerage business for which a license  would
22        be required under the laws of this State; and
23             (d)  shall   not   be   construed   to  include  the
24        establishment or maintenance of a branch, nor shall  they
25        be construed to limit the establishment or maintenance of
26        a branch pursuant to subsection (11).
27    (Source: P.A.  90-41,  eff.  10-1-97;  90-301,  eff.  8-1-97;
28    90-655,  eff.  7-30-98;  90-665,  eff.  7-30-98; 91-330, eff.
29    7-29-99.)

30        Section 99.  Effective date.  This Act takes effect  upon
31    becoming law.

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