Section 1075.465  Indemnification of Officers, Organization Directors, Employees and Agents

a)         No officer, organization director, employee, or agent of a savings bank may be indemnified by a savings bank against any expense incurred, if the officer, organization director, employee or agent:

1)         is subject to an Order of Removal, Suspension or Industrywide Prohibition under the Act or this Part; or

2)         is subject to a final order assessing civil money penalties or requiring affirmative action by an individual or individuals in the form of payments to the savings bank.

b)         In accordance with supervisory responsibilities, the Director may, in his or her discretion, review the threat to bank safety and soundness posed by any indemnification or proposed indemnification of officers, organization directors, employees, or agents by a savings bank or for the consistency of any such indemnification with the standards adopted by that savings bank in its articles. Based upon this review, the Director may direct a modification of a specific indemnification by a savings bank through administrative action.

(Source:  Amended at 30 Ill. Reg. 19068, effective December 1, 2006)