State of Illinois
91st General Assembly
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Public Act 91-0148

SB461 Enrolled                                 LRB9103138LDdv

    AN ACT to amend the Illinois Savings and Loan Act of 1985
by changing Section 4-6.

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

    Section  5.  The Illinois Savings and Loan Act of 1985 is
amended by changing Section 4-6 as follows:

    (205 ILCS 105/4-6) (from Ch. 17, par. 3304-6)
    Sec.   4-6.    Issuance,   delivery   and   transfer   of
certificates and account books.  (a)  Every  capital  account
shall be evidenced by one or more appropriate certificates or
account  book;  and  either  such  certificates or an account
book, or both, shall be  delivered  to  the  holder  of  such
account.  The  wording, type and form of the certificates and
account books issued by an association shall  be  subject  to
the approval of the Commissioner.
    (b)  The  holder  of  a  withdrawable capital account may
transfer his rights therein absolutely  or  conditionally  to
any  other  person  eligible  to  hold  the  same  by written
assignment  accompanied  by  delivery  of   the   appropriate
certificate   or   account   book;  but  notwithstanding  the
effectiveness of such a transfer between the parties thereto,
the association may treat the holder of record as  the  owner
of  the  account  for  payment, voting and all other purposes
until such assignment and  any  accompanying  certificate  or
account  book  have  been  received by the association with a
request for the transfer on the association's records.
    (c)  Withdrawable capital certificates, account books and
any other evidences of membership shall be nonnegotiable  and
not  subject  to Article 8 of the Uniform Commercial Code, as
amended concerning Investment Securities.  Permanent  reserve
share  certificates  shall  be  subject  to the provisions of
Article  8  of  the  Uniform  Commercial  Code,  as  amended,
concerning Investment Securities.
    (d)  All withdrawable capital  certificates  and  account
books,  delivered  to  the  holders  as  prescribed  by  this
Article,  shall  be  subject  to  attachment and execution as
provided by the laws of  this  State.,  and  the  association
shall  not  be  subject to garnishment proceedings concerning
any capital account, except with respect to a certificate  or
account book in the association's possession, and when
    (1)  Neither  a  certificate nor an account book has been
delivered to the holder as required by this Section, or
    (2)  The certificate and account book (or either of  them
if  only  one  has  been delivered) have been returned to the
association's possession.
    (e)  If the holder of a withdrawable capital account,  or
the  personal  representative  of any such person, shall file
with the association an affidavit  to  the  effect  that  his
account  book  or certificate has been lost or destroyed, and
that such account book or certificate has not been pledged or
assigned either in whole or in part,  then  such  association
may  issue  a  substitute  account book or certificate in the
name of such holder,  with  a  statement  therein  that  such
account book or certificate is issued in lieu of the one lost
or  destroyed. The association shall not be liable thereafter
with respect to the original account book or certificate; but
the board of directors  may  require  a  bond  in  sufficient
amount  to  indemnify  the association against any loss which
might result from the issuance  of  such  substitute  account
book or certificate.
(Source: P.A. 84-543.)

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

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