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90_HB0586sam001
LRB9002584JSpkam
1 AMENDMENT TO HOUSE BILL 586
2 AMENDMENT NO. . Amend House Bill 586 by replacing
3 the title with the following:
4 "AN ACT authorizing and regulating the sale of insurance
5 by financial institutions."; and
6 by replacing everything after the enacting clause with the
7 following:
8 "Section 5. The Illinois Banking Act is amended by
9 changing Sections 5 and 48.2 as follows:
10 (205 ILCS 5/5) (from Ch. 17, par. 311)
11 Sec. 5. General corporate powers. A bank organized
12 under this Act or subject hereto shall be a body corporate
13 and politic and shall, without specific mention thereof in
14 the charter, have all the powers conferred by this Act and
15 the following additional general corporate powers:
16 (1) To sue and be sued, complain, and defend in its
17 corporate name.
18 (2) To have a corporate seal, which may be altered at
19 pleasure, and to use the same by causing it or a facsimile
20 thereof to be impressed or affixed or in any manner
21 reproduced, provided that the affixing of a corporate seal to
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1 an instrument shall not give the instrument additional force
2 or effect, or change the construction thereof, and the use of
3 a corporate seal is not mandatory.
4 (3) To make, alter, amend, and repeal bylaws, not
5 inconsistent with its charter or with law, for the
6 administration of the affairs of the bank.
7 (4) To elect or appoint and remove officers and agents
8 of the bank and define their duties and fix their
9 compensation.
10 (5) To adopt and operate reasonable bonus plans,
11 profit-sharing plans, stock-bonus plans, stock-option plans,
12 pension plans and similar incentive plans for its directors,
13 officers and employees.
14 (5.1) To manage, operate and administer a fund for the
15 investment of funds by a public agency or agencies, including
16 any unit of local government or school district, or any
17 person. The fund for a public agency shall invest in the
18 same type of investments and be subject to the same
19 limitations provided for the investment of public funds. The
20 fund for public agencies shall maintain a separate ledger
21 showing the amount of investment for each public agency in
22 the fund. "Public funds" and "public agency" as used in this
23 Section shall have the meanings ascribed to them in Section 1
24 of the Public Funds Investment Act.
25 (6) To make reasonable donations for the public welfare
26 or for charitable, scientific, religious or educational
27 purposes.
28 (7) To borrow or incur an obligation; and to pledge its
29 assets:
30 (a) to secure its borrowings, its lease of personal
31 or real property or its other nondeposit obligations;
32 (b) to enable it to act as agent for the sale of
33 obligations of the United States;
34 (c) to secure deposits of public money of the
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1 United States, whenever required by the laws of the
2 United States, including without being limited to,
3 revenues and funds the deposit of which is subject to the
4 control or regulation of the United States or any of its
5 officers, agents, or employees and Postal Savings funds;
6 (d) to secure deposits of public money of any state
7 or of any political corporation or subdivision thereof
8 including, without being limited to, revenues and funds
9 the deposit of which is subject to the control or
10 regulation of any state or of any political corporation
11 or subdivisions thereof or of any of their officers,
12 agents, or employees;
13 (e) to secure deposits of money whenever required
14 by the National Bankruptcy Act;
15 (f) to qualify under Section 2-9 of the Corporate
16 Fiduciary Act; and
17 (g) to secure trust funds commingled with the
18 bank's funds, whether deposited by the bank or an
19 affiliate of the bank, pursuant to Section 2-8 of the
20 Corporate Fiduciary Act.
21 (8) To own, possess, and carry as assets all or part of
22 the real estate necessary in or with which to do its banking
23 business, either directly or indirectly through the ownership
24 of all or part of the capital stock, shares or interests in
25 any corporation, association, trust engaged in holding any
26 part or parts or all of the bank premises, engaged in such
27 business and in conducting a safe deposit business in the
28 premises or part of them, or engaged in any activity that the
29 bank is permitted to conduct in a subsidiary pursuant to
30 paragraph (12) of this Section 5.
31 (9) To own, possess, and carry as assets other real
32 estate to which it may obtain title in the collection of its
33 debts or that was formerly used as a part of the bank
34 premises, but title to any real estate except as herein
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1 permitted shall not be retained by the bank, either directly
2 or by or through a subsidiary, as permitted by subsection
3 (12) of this Section for a total period of more than 5 years
4 after acquiring title, either directly or indirectly, unless
5 a request for extension of time shall have been submitted in
6 writing to and approved by the Commissioner.
7 (10) To do any act, including the acquisition of stock,
8 necessary to obtain insurance of its deposits, or part
9 thereof, and any act necessary to obtain a guaranty, in whole
10 or in part, of any of its loans or investments by the United
11 States or any agency thereof, and any act necessary to sell
12 or otherwise dispose of any of its loans or investments to
13 the United States or any agency thereof, and to acquire and
14 hold membership in the Federal Reserve System.
15 (11) Notwithstanding any other provisions of this Act,
16 to do any act and to own, possess, and carry as assets
17 property of the character, including stock, that is at the
18 time authorized or permitted to national banks by an Act of
19 Congress, but subject always to the same limitations and
20 restrictions as are applicable to national banks by the
21 pertinent federal law.
22 (12) To own, possess, and carry as assets stock of one
23 or more corporations that is, or are, engaged in one or more
24 of the following businesses:
25 (a) holding title to and administering assets
26 acquired as a result of the collection or liquidating of
27 loans, investments, or discounts; or
28 (b) holding title to and administering personal
29 property acquired by the bank, directly or indirectly
30 through a subsidiary, for the purpose of leasing to
31 others, provided the lease or leases and the investment
32 of the bank, directly or through a subsidiary, in that
33 personal property otherwise comply with Section 35.1 of
34 this Act; or
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1 (c) carrying on or administering any of the
2 activities excepting the receipt of deposits or the
3 payment of checks or other orders for the payment of
4 money in which a bank may engage in carrying on its
5 general banking business; provided, however, that nothing
6 contained in this paragraph (c) shall be deemed to permit
7 a bank organized under this Act or subject hereto to do,
8 either directly or indirectly through any subsidiary, any
9 act, including the making of any loan or investment, or
10 to own, possess, or carry as assets any property that if
11 done by or owned, possessed, or carried by the State bank
12 would be in violation of or prohibited by any provision
13 of this Act.
14 The provisions of this subsection (12) shall not apply to
15 and shall not be deemed to limit the powers of a State bank
16 with respect to the ownership, possession, and carrying of
17 stock that a State bank is permitted to own, possess, or
18 carry under this Act.
19 Any bank intending to establish a subsidiary under this
20 subsection (12) shall give written notice to the Commissioner
21 60 days prior to the subsidiary's commencing of business or,
22 as the case may be, prior to acquiring stock in a corporation
23 that has already commenced business. The Commissioner may
24 specify the form of the notice and may promulgate rules and
25 regulations to administer this subsection (12).
26 (13) To accept for payment at a future date not
27 exceeding one year from the date of acceptance, drafts drawn
28 upon it by its customers; and to issue, advise, or confirm
29 letters of credit authorizing the holders thereof to draw
30 drafts upon it or its correspondents.
31 (14) To own and lease personal property acquired by the
32 bank at the request of a prospective lessee and upon the
33 agreement of that person to lease the personal property
34 provided that the lease, the agreement with respect thereto,
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1 and the amount of the investment of the bank in the property
2 comply with Section 35.1 of this Act.
3 (15) (a) To establish and maintain, in addition to the
4 main banking premises, branches offering any banking services
5 permitted at the main banking premises of a State bank.
6 (b) To establish and maintain, after May 31, 1997,
7 branches in another state that may conduct any activity in
8 that state that is authorized or permitted for any bank that
9 has a banking charter issued by that state, subject to the
10 same limitations and restrictions that are applicable to
11 banks chartered by that state.
12 (16) (Blank).
13 (17) To establish and maintain terminals, as authorized
14 by the Electronic Fund Transfer Act.
15 (18) To establish and maintain temporary service booths
16 at any International Fair held in this State which is
17 approved by the United States Department of Commerce, for the
18 duration of the international fair for the sole purpose of
19 providing a convenient place for foreign trade customers at
20 the fair to exchange their home countries' currency into
21 United States currency or the converse. This power shall not
22 be construed as establishing a new place or change of
23 location for the bank providing the service booth.
24 (19) To indemnify its officers, directors, employees,
25 and agents, as authorized for corporations under Section 8.75
26 of the Business Corporation Act of 1983.
27 (20) To own, possess, and carry as assets stock of, or
28 be or become a member of, any corporation, mutual company,
29 association, trust, or other entity formed exclusively for
30 the purpose of providing directors' and officers' liability
31 and bankers' blanket bond insurance or reinsurance to and for
32 the benefit of the stockholders, members, or beneficiaries,
33 or their assets or businesses, or their officers, directors,
34 employees, or agents, and not to or for the benefit of any
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1 other person or entity or the public generally.
2 (21) To make debt or equity investments in corporations
3 or projects, whether for profit or not for profit, designed
4 to promote the development of the community and its welfare,
5 provided that the aggregate investment in all of these
6 corporations and in all of these projects does not exceed 5%
7 of the unimpaired capital and unimpaired surplus of the bank
8 and provided that this limitation shall not apply to
9 creditworthy loans by the bank to those corporations or
10 projects. Upon written application to the Commissioner, a
11 bank may make an investment that would, when aggregated with
12 all other such investments, exceed 5% of the unimpaired
13 capital and unimpaired surplus of the bank. The Commissioner
14 may approve the investment if he is of the opinion and finds
15 that the proposed investment will not have a material adverse
16 effect on the safety and soundness of the bank.
17 (22) To own, possess, and carry as assets the stock of a
18 corporation engaged in the ownership or operation of a travel
19 agency or to operate a travel agency as a part of its
20 business, provided that the bank either owned, possessed, and
21 carried as assets the stock of such a corporation or operated
22 a travel agency as part of its business before July 1, 1991.
23 (23) With respect to affiliate facilities:
24 (a) to conduct at affiliate facilities any of the
25 following transactions for and on behalf of another
26 commonly owned bank, if so authorized by the other bank:
27 receiving deposits; cashing and issuing checks, drafts,
28 and money orders; changing money; and receiving payments
29 on existing indebtedness; and
30 (b) to authorize a commonly owned bank to conduct
31 for and on behalf of it any of the transactions listed in
32 this paragraph (23) at one or more affiliate facilities.
33 Any bank intending to conduct or to authorize a commonly
34 owned bank to conduct at an affiliate facility any of the
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1 transactions specified in this paragraph (23) shall give
2 written notice to the Commissioner at least 30 days before
3 any such transaction is conducted at the affiliate facility.
4 (24) To act as the agent for any fire, life, or other
5 insurance company authorized by the State of Illinois, by
6 soliciting and selling insurance and collecting premiums on
7 policies issued by such company; and may receive for services
8 so rendered such fees or commissions as may be agreed upon
9 between the said bank and the insurance company for which it
10 may act as agent; provided, however, that no such bank shall
11 in any case assume or guarantee the payment of any premium on
12 insurance policies issued through its agency by its
13 principal; and provided further, that the bank shall not
14 guarantee the truth of any statement made by an assured in
15 filing his application for insurance.
16 (Source: P.A. 88-4; 89-208, eff. 9-29-95; 89-310, eff.
17 1-1-96; 89-364, eff. 8-18-95; 89-626, eff. 8-9-96.)
18 (205 ILCS 5/48.2) (from Ch. 17, par. 360.1)
19 Sec. 48.2. Prohibition against certain activities. (a)
20 Any bank, subsidiary, affiliate, officer or employee of such
21 bank subject to this Act shall not:
22 (1) grant any loan on the prior condition, agreement or
23 understanding that the borrower contract with any specific
24 person or organization for the following:
25 (A) insurance services of an agent or broker;
26 (B) legal services rendered to the borrower;
27 (C) services of a real estate agent or broker; or
28 (D) real estate or property management services;
29 (2) require that insurance services, legal services,
30 real estate services or property management services be
31 placed with any subsidiary, affiliate, officer or employee of
32 any bank.
33 (b) Any bank or subsidiary, affiliate, employee,
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1 officer, banking house, branch bank, branch office,
2 additional office or agency of such bank that is transacting
3 an insurance business in this State shall comply with Article
4 XLIV Section 499.1 of the "Illinois Insurance Code".
5 (c) Any officer or employee of a bank or its affiliates
6 or subsidiaries who violates this Section is guilty of a
7 business offense, and upon conviction shall be fined not more
8 than $1,000. This Section does not create a private cause of
9 action for civil damages.
10 (d) In any contract or loan which is secured by a
11 mortgage, deed of trust, or conveyance in the nature of a
12 mortgage, on residential real estate, the interest which is
13 computed, calculated, charged, or collected pursuant to such
14 contract or loan, or pursuant to any regulation or rule
15 promulgated pursuant to this Act, may not be computed,
16 calculated, charged or collected for any period of time
17 occurring after the date on which the total indebtedness,
18 with the exception of late payment penalties, is paid in
19 full. For purposes of this subsection (d) of this Section
20 48.2, a prepayment shall mean the payment of the total
21 indebtedness, with the exception of late payment penalties if
22 incurred or charged, on any date before the date specified in
23 the contract or loan agreement on which the total
24 indebtedness shall be paid in full, or before the date on
25 which all payments, if timely made, shall have been made. In
26 the event of a prepayment of the indebtedness which is made
27 on a date after the date on which interest on the
28 indebtedness was last computed, calculated, charged, or
29 collected but before the next date on which interest on the
30 indebtedness was to be calculated, computed, charged, or
31 collected, the lender may calculate, charge and collect
32 interest on the indebtedness for the period which elapsed
33 between the date on which the prepayment is made and the date
34 on which interest on the indebtedness was last computed,
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1 calculated, charged or collected at a rate equal to 1/360 of
2 the annual rate for each day which so elapsed, which rate
3 shall be applied to the indebtedness outstanding as of the
4 date of prepayment. The lender shall refund to the borrower
5 any interest charged or collected which exceeds that which
6 the lender may charge or collect pursuant to the preceding
7 sentence. The provisions of this amendatory Act of 1985
8 shall apply only to contracts or loans entered into on or
9 after January 1, 1986.
10 (e) Any bank, affiliate or subsidiary of such bank which
11 shall engage in making residential mortgage financing
12 transactions, shall with respect to each such transaction,
13 provide the following:
14 (1) if a contractual obligation is intended to a
15 borrower, a mortgage commitment which shall set forth the
16 material terms, conditions and contingencies of such
17 commitment;
18 (2) if the servicing of a residential mortgage shall be
19 transferred from the original mortgagee, within 45 days of
20 such transfer, written notice sent by certified mail, return
21 receipt requested, to the mortgagor at the address of the
22 property, unless the mortgagor shall have directed
23 correspondence from the mortgagee shall be sent to another
24 address, which notice shall set forth: the name and address
25 of the transferee; the name, address and telephone number to
26 which inquiries by the residential mortgagor should be
27 addressed; and the name and address to which the next 3
28 monthly installments are to be submitted to the transferee
29 and the amount of each of such monthly installment; and
30 (3) if the servicing of a residential mortgage shall be
31 transferred again or if the information in paragraph (2)
32 above shall change, the notice with the corrected information
33 shall be provided within 45 days of such subsequent transfer
34 or change in information by the transferee of the servicing
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1 of the mortgage at that time.
2 (Source: P.A. 85-1209; 85-1379.)
3 Section 10. The Illinois Savings and Loan Act of 1985 is
4 amended by changing Section 1-6 as follows:
5 (205 ILCS 105/1-6) (from Ch. 17, par. 3301-6)
6 Sec. 1-6. General corporate powers. An association
7 operating under this Act shall be a body corporate and
8 politic and shall have all of the specific powers conferred
9 by this Act and, in addition thereto, the following general
10 powers:
11 (a) To sue and be sued, complain and defend in its
12 corporate name, and to have a common seal, which it may alter
13 or renew at pleasure;
14 (b) To obtain and maintain insurance of the
15 association's withdrawable capital by an insurance
16 corporation as defined in this Act;
17 (c) Notwithstanding anything to the contrary contained
18 in this Act, to become a member of the Federal Home Loan
19 Bank, and to have all of the powers granted to a savings or
20 thrift institution organized under the laws of the United
21 States and which is located and doing business in the State
22 of Illinois, subject to regulations of the Commissioner;
23 (d) To act as a fiscal agent for the United States, the
24 State of Illinois or any department, branch, arm or agency of
25 the State or any unit of local government or school district
26 in the State when duly designated for that purpose, and as
27 agent to perform the reasonable functions as may be required
28 of it;
29 (e) To become a member of or deal with any corporation
30 or agency of the United States or the State of Illinois, to
31 the extent that the agency assists in furthering or
32 facilitating the association's purposes or powers and to that
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1 end to purchase stock or securities thereof or deposit money
2 therewith, and to comply with any other conditions of
3 membership or credit;
4 (f) To make donations in reasonable amounts for the
5 public welfare or for charitable, scientific, religious or
6 educational purposes;
7 (g) To adopt and operate reasonable insurance, bonus,
8 profit sharing, and retirement plans for officers and
9 employees; likewise, directors who are not officers,
10 including, but not limited to, advisory, honorary, and
11 emeritus directors, may participate in those plans;
12 (h) To reject any application for membership, to retire
13 withdrawable capital by enforced retirement as provided in
14 this Act and the by-laws, and to limit the issuance of or
15 payments on withdrawable capital, subject, however, to
16 contractual obligations;
17 (i) To purchase stock in service corporations and to
18 invest in any form of indebtedness of any service corporation
19 as defined in this Act, subject to regulations of the
20 Commissioner;
21 (j) To purchase stock of a corporation whose principal
22 purpose is to operate a safe deposit company or escrow
23 service company;
24 (k) To act as Trustee or Custodian under the Federal
25 Self-Employed Individuals' Tax Retirement Act of 1962 or any
26 amendments thereto or any other retirement account and invest
27 any funds held in such capacity in a savings account of the
28 institution;
29 (l) (Blank);
30 (m) To establish, maintain and operate terminals as
31 authorized by the Electronic Fund Transfer Act and by Section
32 5 of the Illinois Banking Act. The establishment,
33 maintenance, operation and location of such terminals shall
34 be subject to the approval of the Commissioner;
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1 (n) Subject to the approval and regulations of the
2 Commissioner, an association may purchase or assume all or
3 any part of the assets or liabilities of an eligible insured
4 bank;
5 (o) To purchase from a bank, as defined in Section 2 of
6 the Illinois Banking Act, an insubstantial portion of the
7 total deposits of an insured bank. For the purpose of this
8 subparagraph, "insubstantial portion of the total deposits"
9 shall have the same meaning as provided in Section 5(d)(2)(D)
10 of the Federal Deposit Insurance Act;
11 (p) To effect an acquisition of or conversion to another
12 financial institution pursuant to Section 205 of the
13 Financial Institutions Reform, Recovery and Enforcement Act
14 of 1989;
15 (q) To pledge its assets:
16 (1) to enable it to act as an agent for the sale of
17 obligations of the United States;
18 (2) to secure deposits;
19 (3) to secure deposits of money whenever required
20 by the National Bankruptcy Act;
21 (4) to qualify under Section 2-9 of the Corporate
22 Fiduciary Act; and
23 (5) to secure trust funds commingled with the
24 institution's funds, whether deposited by the institution
25 or an affiliate of the institution, as required under
26 Section 2-8 of the Corporate Fiduciary Act; and
27 (r) To provide temporary periodic service to persons
28 residing in a bona fide nursing home, senior citizens'
29 retirement home, or long-term care facility; and
30 (s) To purchase for its own account shares of stock of a
31 bankers' bank, described in Section 13(b)(1) of the Illinois
32 Banking Act, on the same terms and conditions as a bank may
33 purchase such shares. In no event shall the total amount of
34 such stock held by an association in such bankers' bank
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1 exceed 10% of its capital and surplus (including undivided
2 profits) and in no event shall an association acquire more
3 than 5% of any class of voting securities of such bankers'
4 bank;.
5 (t) (s) To effect a conversion to a State bank pursuant
6 to the provisions of the Illinois Banking Act; and.
7 (u) Subject to Article XLIV of the Illinois Insurance
8 Code, to act as the agent for any fire, life, or other
9 insurance company authorized by the State of Illinois, by
10 soliciting and selling insurance and collecting premiums on
11 policies issued by such company; and may receive for services
12 so rendered such fees or commissions as may be agreed upon
13 between the said association and the insurance company for
14 which it may act as agent; provided, however, that no such
15 association shall in any case assume or guarantee the payment
16 of any premium on insurance policies issued through its
17 agency by its principal; and provided further, that the
18 association shall not guarantee the truth of any statement
19 made by an assured in filing his application for insurance.
20 (Source: P.A. 88-481; 89-74, eff. 6-30-95; 89-310, eff.
21 1-1-96; 89-317, eff. 8-11-95; 89-355, eff. 8-17-95; 89-567,
22 eff. 7-26-96; 89-603, eff. 8-2-96; 89-626, eff. 8-9-96;
23 revised 9-13-96.)
24 Section 15. The Savings Bank Act is amended by changing
25 Section 1008 as follows:
26 (205 ILCS 205/1008) (from Ch. 17, par. 7301-8)
27 Sec. 1008. General corporate powers.
28 (a) A savings bank operating under this Act shall be a
29 body corporate and politic and shall have all of the specific
30 powers conferred by this Act and in addition thereto, the
31 following general powers:
32 (1) To sue and be sued, complain, and defend in its
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1 corporate name and to have a common seal, which it may
2 alter or renew at pleasure.
3 (2) To obtain and maintain insurance by a deposit
4 insurance corporation as defined in this Act.
5 (3) To act as a fiscal agent for the United States,
6 the State of Illinois or any department, branch, arm, or
7 agency of the State or any unit of local government or
8 school district in the State, when duly designated for
9 that purpose, and as agent to perform reasonable
10 functions as may be required of it.
11 (4) To become a member of or deal with any
12 corporation or agency of the United States or the State
13 of Illinois, to the extent that the agency assists in
14 furthering or facilitating its purposes or powers and to
15 that end to purchase stock or securities thereof or
16 deposit money therewith, and to comply with any other
17 conditions of membership or credit.
18 (5) To make donations in reasonable amounts for the
19 public welfare or for charitable, scientific, religious,
20 or educational purposes.
21 (6) To adopt and operate reasonable insurance,
22 bonus, profit sharing, and retirement plans for officers
23 and employees and for directors including, but not
24 limited to, advisory, honorary, and emeritus directors,
25 who are not officers or employees.
26 (7) To reject any application for membership; to
27 retire deposit accounts by enforced retirement as
28 provided in this Act and the bylaws; and to limit the
29 issuance of, or payments on, deposit accounts, subject,
30 however, to contractual obligations.
31 (8) To purchase stock in service corporations and
32 to invest in any form of indebtedness of any service
33 corporation as defined in this Act, subject to
34 regulations of the Commissioner.
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1 (9) To purchase stock of a corporation whose
2 principal purpose is to operate a safe deposit company or
3 escrow service company.
4 (10) To exercise all the powers necessary to
5 qualify as a trustee or custodian under federal or State
6 law, provided that the authority to accept and execute
7 trusts is subject to the provisions of the Corporate
8 Fiduciary Act and to the supervision of those activities
9 by the Commissioner of Banks and Real Estate.
10 (11) (Blank).
11 (12) To establish, maintain, and operate terminals
12 as authorized by the Electronic Fund Transfer Act. The
13 establishment, maintenance, operation, and location of
14 those terminals shall be subject to the approval of the
15 Commissioner.
16 (13) Pledge its assets:
17 (A) to enable it to act as agent for the sale
18 of obligations of the United States;
19 (B) to secure deposits;
20 (C) to secure deposits of money whenever
21 required by the National Bankruptcy Act;
22 (D) to qualify under Section 2-9 of the
23 Corporate Fiduciary Act; and
24 (E) to secure trust funds commingled with the
25 savings bank's funds, whether deposited by the
26 savings bank or an affiliate of the savings bank, as
27 required under Section 2-8 of the Corporate
28 Fiduciary Act.
29 (14) To accept for payment at a future date not to
30 exceed one year from the date of acceptance, drafts drawn
31 upon it by its customers; and to issue, advise, or
32 confirm letters of credit authorizing holders thereof to
33 draw drafts upon it or its correspondents.
34 (15) Subject to the regulations of the
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1 Commissioner, to own and lease personal property acquired
2 by the savings bank at the request of a prospective
3 lessee and, upon the agreement of that person, to lease
4 the personal property.
5 (16) To establish temporary service booths at any
6 International Fair in this State that is approved by the
7 United States Department of Commerce for the duration of
8 the international fair for the purpose of providing a
9 convenient place for foreign trade customers to exchange
10 their home countries' currency into United States
11 currency or the converse. To provide temporary periodic
12 service to persons residing in a bona fide nursing home,
13 senior citizens' retirement home, or long-term care
14 facility. These powers shall not be construed as
15 establishing a new place or change of location for the
16 savings bank providing the service booth.
17 (17) To indemnify its officers, directors,
18 employees, and agents, as authorized for corporations
19 under Section 8.75 of the Business Corporations Act of
20 1983.
21 (18) To provide data processing services to others
22 on a for-profit basis.
23 (19) To utilize any electronic technology to
24 provide customers with home banking services.
25 (20) Subject to the regulations of the
26 Commissioner, to enter into an agreement to act as a
27 surety.
28 (21) Subject to the regulations of the
29 Commissioner, to issue credit cards, extend credit
30 therewith, and otherwise engage in or participate in
31 credit card operations.
32 (22) To purchase for its own account shares of
33 stock of a bankers' bank, described in Section 13(b)(1)
34 of the Illinois Banking Act, on the same terms and
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1 conditions as a bank may purchase such shares. In no
2 event shall the total amount of such stock held by a
3 savings bank an association in such bankers' bank exceed
4 10% of its capital and surplus (including undivided
5 profits) and in no event shall a savings bank an
6 association acquire more than 5% of any class of voting
7 securities of such bankers' bank.
8 (23) Subject to Article XLIV of the Illinois
9 Insurance Code, to act as the agent for any fire, life,
10 or other insurance company authorized by the State of
11 Illinois, by soliciting and selling insurance and
12 collecting premiums on policies issued by such company;
13 and may receive for services so rendered such fees or
14 commissions as may be agreed upon between the said
15 savings bank and the insurance company for which it may
16 act as agent; provided, however, that no such savings
17 bank shall in any case assume or guarantee the payment of
18 any premium on insurance policies issued through its
19 agency by its principal; and provided further, that the
20 savings bank shall not guarantee the truth of any
21 statement made by an assured in filing his application
22 for insurance.
23 (b) If this Act fails to provide specific guidance in
24 matters of corporate governance, the provisions of the
25 Business Corporation Act of 1983 may be used.
26 (Source: P.A. 88-112; 88-481; 88-670, eff. 12-2-94; 89-74,
27 eff. 6-30-95; 89-310, eff. 1-1-96; 89-317, eff. 8-11-95;
28 89-355, eff. 8-17-95; 89-508, eff. 7-3-96; 89-603, eff.
29 8-2-96; 89-626, eff. 8-9-96; revised 9-9-96.)
30 Section 20. The Illinois Credit Union Act is amended by
31 changing Sections 13 and 55 as follows:
32 (205 ILCS 305/13) (from Ch. 17, par. 4414)
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1 Sec. 13. General Powers. A credit union may:
2 (1) Make contracts; sue and be sued; adopt and use a
3 common seal and alter same;
4 (2) Acquire, lease (either as lessee or lessor), hold,
5 pledge, mortgage, sell and dispose of real property, either
6 in whole or in part, or any interest therein, as may be
7 necessary or is incidental to its present or future
8 operations and needs subject to such limitations as may be
9 imposed thereon in rules and regulations promulgated by the
10 Director; acquire, lease (either as lessee or lessor), hold,
11 pledge, mortgage, sell and dispose or personal property,
12 either in whole or in part, or any interest therein, as may
13 be necessary or is incidental to its present or future
14 operations and needs;
15 (3) At the discretion of the Board of Directors, require
16 the payment of an entrance fee or annual membership fee, or
17 both, of any person admitted to membership;
18 (4) Receive savings from its members in the form of
19 shares of various classes, or special purpose share accounts;
20 act as custodian of its members' accounts; issue shares in
21 trust as provided in this Act;
22 (5) Lend its funds to its members and otherwise as
23 hereinafter provided;
24 (6) Borrow from any source in accordance with policy
25 established by the Board of Directors to a maximum of 50% of
26 capital, surplus and reserves;
27 (7) Discount and sell any obligations owed to the credit
28 union;
29 (8) Honor requests for withdrawals or transfers of all
30 or any part of member share accounts, and any classes
31 thereof, in any manner approved by the credit union Board of
32 Directors;
33 (9) Sell all or substantially all of its assets or
34 purchase all or substantially all of the assets of another
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1 credit union, subject to the prior approval of the Director;
2 (10) Invest surplus funds as provided in this Act;
3 (11) Make deposits in banks, savings banks, savings and
4 loan associations, trust companies; and invest in shares,
5 classes of shares or share certificates of other credit
6 unions;
7 (12) Assess charges and fees to members in accordance
8 with board resolution;
9 (13) Hold membership in and pay dues to associations and
10 organizations; to invest in shares, stocks or obligations of
11 any credit union organization;
12 (14) Declare dividends and pay interest refunds to
13 borrowers as provided in this Act;
14 (15) Collect, receive and disburse monies in connection
15 with providing negotiable checks, money orders and other
16 money-type instruments, and for such other purposes as may
17 provide benefit or convenience to its members, and charge a
18 reasonable fee for such services;
19 (16) Act as fiscal agent for and receive deposits from
20 the federal government, this state or any agency or political
21 subdivision thereof;
22 (17) Receive savings from nonmembers in the form of
23 shares or share accounts in the case of credit unions serving
24 predominantly low-income members. The term "low income
25 members" shall mean those members whose annual income falls
26 at or below the lower level standard of living classification
27 as established by the Bureau of Labor Statistics and updated
28 by the Employment and Training Administration of the U.S.
29 Department of Labor. The term "predominantly" is defined as a
30 simple majority; and
31 (18) To establish, maintain, and operate terminals as
32 authorized by the Electronic Fund Transfer Act; and
33 (19) Subject to Article XLIV of the Illinois Insurance
34 Code, to act as the agent for any fire, life, or other
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1 insurance company authorized by the State of Illinois, by
2 soliciting and selling insurance and collecting premiums on
3 policies issued by such company; and may receive for services
4 so rendered such fees or commissions as may be agreed upon
5 between the said credit union and the insurance company for
6 which it may act as agent; provided, however, that no such
7 credit union shall in any case assume or guarantee the
8 payment of any premium on insurance policies issued through
9 its agency by its principal; and provided further, that the
10 credit union shall not guarantee the truth of any statement
11 made by an assured in filing his application for insurance.
12 (Source: P.A. 88-235; 89-310, eff. 1-1-96.)
13 (205 ILCS 305/55) (from Ch. 17, par. 4456)
14 Sec. 55. Insurance for Members. (1) A credit union may
15 purchase or make available insurance for its members.
16 (2) A credit union may enter into cooperative marketing
17 arrangements to facilitate its members' voluntary purchase of
18 insurance including, but not by way of limitation, life
19 insurance, disability insurance, accident and health
20 insurance, property insurance, liability insurance and legal
21 expense insurance.
22 Nothing in this Act shall be construed to allow credit
23 unions to engage in the retail sale of insurance to their
24 members.
25 (Source: P.A. 81-329.)
26 Section 25. The Corporate Fiduciary Act is amended by
27 changing Section 1-6 as follows:
28 (205 ILCS 620/1-6) (from Ch. 17, par. 1551-6)
29 Sec. 1-6. General Corporate Powers. A corporate
30 fiduciary shall have the powers:
31 (a) if it is a State bank, those powers granted under
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1 Sections 3 and 5 of the Illinois Banking Act, as now or
2 hereafter amended; and
3 (b) if it is a State savings and loan association, those
4 powers granted under Sections 1-6 through 1-8 of the Illinois
5 Savings and Loan Act of 1985, as now or hereafter amended;
6 and
7 (c) if it is a corporation organized under the Business
8 Corporation Act of 1983, as now or hereafter amended, those
9 powers granted in Sections 4.01 through 4.24 of the Trusts
10 and Trustees Act, as now or hereafter amended, to the extent
11 the exercise of such powers by the corporate fiduciary are
12 not contrary to the instrument containing the appointment of
13 the corporate fiduciary, the court order appointing the
14 corporate fiduciary or any other statute specifically
15 limiting the power of the corporate fiduciary under the
16 circumstances; and
17 (d) subject to Article XLIV of the Illinois Insurance
18 Code, to act as the agent for any fire, life, or other
19 insurance company authorized by the State of Illinois, by
20 soliciting and selling insurance and collecting premiums on
21 policies issued by such company; and may receive for services
22 so rendered such fees or commissions as may be agreed upon
23 between the said corporate fiduciary and the insurance
24 company for which it may act as agent; provided, however,
25 that no such corporate fiduciary shall in any case assume or
26 guarantee the payment of any premium on insurance policies
27 issued through its agency by its principal; and provided
28 further, that the corporate fiduciary shall not guarantee the
29 truth of any statement made by an assured in filing his
30 application for insurance.
31 The Commissioner may specify powers of corporate
32 fiduciaries generally or of a particular corporate fiduciary
33 and by rule or order limit or restrict such powers of
34 corporate fiduciaries or a particular corporate fiduciary if
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1 he finds the exercise of such power by corporate fiduciaries
2 generally or of the corporate fiduciary in particular may
3 tend to be an unsafe or unsound practice, or if such power is
4 otherwise not in the interest of beneficiaries of any
5 fiduciary appointment.
6 (Source: P.A. 86-754.)
7 Section 30. The Illinois Insurance Code is amended by
8 changing Section 499.1 and adding Article XLIV as follows:
9 (215 ILCS 5/499.1) (from Ch. 73, par. 1065.46-1)
10 Sec. 499.1. Registered firms.
11 (a) Any corporation or partnership transacting insurance
12 business as an insurance agency shall register with the
13 Director before transacting insurance business in this State.
14 Such registration shall remain in effect as long as the firm
15 pays the annual fee required by Section 509.1 of this Code by
16 the date due, unless the registration is revoked or suspended
17 pursuant to Section 505.1 of this Code.
18 (b) Each firm required to register before acting as a
19 registered firm pursuant to this Article shall appoint one or
20 more licensed insurance producers who are officers,
21 directors, or partners in the firm to be responsible for the
22 firm's compliance with the insurance laws and Title 50 of the
23 Illinois Administrative Code. Such individual or individuals
24 shall submit to the Director a registration form and the fees
25 required by Section 509.1. The Director shall prescribe the
26 registration form and may require any documents reasonably
27 necessary to verify the information contained in the
28 registration form. Within 30 days of a change in officers,
29 directors, or partners who are appointed to be responsible
30 for the firm's compliance with the insurance laws and Title
31 50 of the Illinois Administrative Code, the firm shall report
32 the change to the Department.
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1 (c) The registered firm shall inform the Director in
2 writing of a change in its business address within 30 days of
3 such change.
4 (d) Each registered firm shall disclose its members,
5 officers or directors who are authorized to act as insurance
6 producers, and report any changes in such personnel to the
7 Director within 30 days of such changes.
8 (e) (Blank). A registered firm may not be a national
9 bank located in a city, village or incorporated town with a
10 population exceeding 5,000 according to the last federal
11 census, a State bank or a trust company, or a subsidiary,
12 affiliate, officer or employee of any such national or State
13 bank or trust company contributing directly or indirectly to
14 the income of such bank or trust company any profit or fees
15 or part thereof derived from the solicitation, negotiation or
16 effecting of insurance.
17 (Source: P.A. 89-240, eff. 1-1-96.)
18 (215 ILCS 5/Art. XLIV heading new)
19 Article XLIV. FINANCIAL INSTITUTIONS
20 INSURANCE SALES LAW
21 (215 ILCS 5/1400 new)
22 Sec. 1400. Title. This Article may be cited as the
23 Financial Institutions Insurance Sales Law.
24 (215 ILCS 5/1401 new)
25 Sec. 1401. Purpose. The purpose of this Article is to
26 increase the availability of insurance products to the
27 citizens of this State by expanding those businesses
28 authorized to sell insurance products to include financial
29 institutions, and to protect the interests of the citizens of
30 this State by regulating their authority to do so. This
31 Article does not apply to activities or services conducted in
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1 this State by or for a financial institution that do not
2 require licensure as an insurance producer, temporary
3 insurance producer, limited insurance representative, or
4 registered firm.
5 (215 ILCS 5/1402 new)
6 Sec. 1402. Definitions. For the purposes of this
7 Article:
8 "Financial institution" means:
9 (1) a State bank, a national bank, or an
10 out-of-state bank, as those terms are defined in the
11 Illinois Banking Act, or any subsidiary of a State bank,
12 a national bank, or an out-of-state bank;
13 (2) a foreign banking corporation, as that term is
14 defined in the Foreign Banking Office Act, or any
15 subsidiary of a foreign banking corporation;
16 (3) a corporate fiduciary, as that term is defined
17 in the Corporate Fiduciary Act;
18 (4) a savings bank organized under the Savings Bank
19 Act, an out-of-state savings bank chartered under the
20 laws of a state other than Illinois, a territory of the
21 United States, or the District of Columbia, or a federal
22 savings bank organized under federal law, or any
23 subsidiary of a savings bank, an out-of-state savings
24 bank or a federal savings bank;
25 (5) an association or federal association, as those
26 terms are defined in the Illinois Savings and Loan Act of
27 1985, or any subsidiary of an association or federal
28 association;
29 (6) an out-of-state savings and loan association
30 chartered under the laws of a state other than Illinois,
31 a territory of the United States or the District of
32 Columbia, or a federal savings and loan association
33 organized under federal law whose principal business
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1 office is located outside of Illinois, or any subsidiary
2 of an out-of-state savings and loan association or
3 federal savings and loan association whose principal
4 business office is located outside of Illinois; or
5 (7) a credit union as defined in the Illinois Credit
6 Union Act, or any subsidiary of a credit union.
7 To the extent that any entity other than a financial
8 institution conducts insurance activities in this State on
9 behalf of or on the premises of the financial institution,
10 such entity shall be subject to this Article for the purposes
11 of those activities.
12 "Insurance" means all lines of insurance defined and
13 regulated as insurance under this Code, but for the purposes
14 of this Article, "insurance" shall not include the following
15 lines of insurance, provided that this paragraph shall not be
16 deemed to preclude or otherwise limit regulation of the
17 following lines of insurance pursuant to and to the extent
18 otherwise provided by any other insurance law of this State:
19 (1) credit life, credit accident and health, credit
20 involuntary unemployment, credit casualty and credit
21 property insurance;
22 (2) extended service contracts and warranty
23 agreements;
24 (3) insurance obtained by the debtor to provide
25 payment for the difference between the remaining balance
26 on a loan or other extension of credit and the amount of
27 insurance coverage on the collateral securing the loan or
28 other extension of credit;
29 (4) insurance placed by a financial institution on
30 collateral used in connection with a loan or other
31 extension of credit when a debtor breaches the
32 contractual obligation to provide that insurance;
33 (5) title insurance regulated by the Title Insurance
34 Act; and
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1 (6) private mortgage insurance and financial
2 guarantee insurance.
3 (215 ILCS 5/1403 new)
4 Sec. 1403. Licensure requirements for financial
5 institutions.
6 (a) A financial institution transacting insurance
7 business in this State shall register with the Director
8 pursuant to the Illinois Insurance Code and shall be subject
9 to the laws, rules, and penalties of the Illinois Insurance
10 Code.
11 (b) The solicitation and sale of insurance by a financial
12 institution shall be conducted only by individuals who have
13 been issued and maintain an insurance producer's license
14 pursuant to the Illinois Insurance Code and shall be subject
15 to the laws, rules, and penalties of the Illinois Insurance
16 Code.
17 (c) For the purposes of this Section, a "financial
18 institution" means the subsidiary of a financial institution
19 when the financial institution is transacting insurance
20 business in this State only through the subsidiary. For the
21 purposes of Section 499.1 of the Illinois Insurance Code, a
22 financial institution shall be deemed to be a corporation.
23 (215 ILCS 5/1404 new)
24 Sec. 1404. Subsidiaries or divisions. A financial
25 institution shall not qualify for registration as a
26 registered firm under Section 499.1 of this Code unless: (1)
27 it establishes a separate subsidiary that acts as the
28 registered firm or (2) it is otherwise permitted by law to
29 sell insurance directly through the financial institution,
30 and it establishes a separate division within the financial
31 institution to conduct the business of the registered firm.
32 The subsidiary or division acting as a registered firm shall
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1 maintain records for insurance transactions that are
2 separate and distinct from the records of the financial
3 institution.
4 (215 ILCS 5/1405 new)
5 Sec. 1405. Extensions of credit. A financial
6 institution shall not delay or impede the completion of a
7 loan transaction or other transactions involving the
8 extension of credit for the purpose of influencing a
9 customer's selection of any insurance product.
10 (215 ILCS 5/1406 new)
11 Sec. 1406. Insurance and financial institution
12 products.
13 (a) No financial institution may offer banking products
14 or services, or fix or vary the consideration of the offer,
15 on a condition or requirement that the customer obtain
16 insurance from the financial institution or any affiliate of
17 the financial institution.
18 (b) A financial institution that offers banking products
19 or services in conformity with the provisions of Section 106
20 of the Bank Holding Company Act Amendments of 1970 (12 U.S.C.
21 1972) shall be deemed to be in compliance with the provisions
22 of subsection (a) of this Section.
23 (c) No financial institution shall require that a
24 customer or prospective customer of the financial institution
25 purchase an insurance product from any particular registered
26 firm or insurance producer as a condition for the lending of
27 money or extension of credit, the establishment or
28 maintenance of a checking, savings, or other deposit account,
29 or the establishment or maintenance of a trust account.
30 (215 ILCS 5/1407 new)
31 Sec. 1407. Rebating and discounting.
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1 (a) No financial institution may offer a rebate on an
2 insurance product in violation of Section 151 of this Code.
3 (b) No financial institution may offer a discount on a
4 loan or extension of credit for the purpose of inducing the
5 customer to purchase insurance required in connection with
6 the loan or extension of credit.
7 (215 ILCS 5/1408 new)
8 Sec. 1408. Discrimination prohibited. No financial
9 institution may:
10 (1) require as a condition of providing any product or
11 service or renewal of any contract for providing a product or
12 service to any customer, that the customer acquire, finance,
13 or negotiate any policy or contract of insurance through a
14 particular insurer, insurance producer, or registered firm;
15 (2) in connection with a loan or extension of credit that
16 requires a borrower to obtain insurance, reject an insurance
17 policy solely because the policy has been issued or
18 underwritten by any person who is not associated with the
19 financial institution;
20 (3) impose any discriminatory requirement on any
21 insurance producer who is not associated with the financial
22 institution that is not imposed on any insurance producer who
23 is associated with the financial institution; or
24 (4) if the financial institution is a registered firm,
25 require any debtor, insurer, or insurance producer to pay a
26 separate charge in connection with the handling of insurance
27 that is required under a contract, unless: (i) the financial
28 institution is the registered firm providing the insurance,
29 (ii) if the financial institution is not the registered firm
30 providing the insurance, the charge would be uniformly
31 applied if the financial institution was the registered firm
32 providing the insurance, or (iii) the charge is otherwise
33 permitted by this Code or other applicable State or federal
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1 law.
2 (215 ILCS 5/1409 new)
3 Sec. 1409. Disclosure. A financial institution shall
4 clearly and conspicuously disclose in any written
5 advertisement or promotional or informational material
6 regarding an insurance product that the insurance offered,
7 recommended, sponsored, or sold:
8 (1) is not a deposit;
9 (2) is not insured by the Federal Deposit Insurance
10 Corporation, or in the case of a credit union, by the
11 National Credit Union Share Insurance Fund;
12 (3) is not guaranteed by the financial institution or an
13 affiliated insured depository institution; and
14 (4) where appropriate, involves investment risk,
15 including potential loss of principal.
16 (215 ILCS 5/1410 new)
17 Sec. 1410. Misleading advertising. No financial
18 institution or registered firm may employ any advertisement
19 that would mislead or otherwise cause a reasonable person to
20 believe mistakenly that the State of Illinois or the federal
21 government is responsible for the insurance sales activities
22 of the financial institution or stands behind the financial
23 institution's credit, or that the financial institution, the
24 State of Illinois, or the federal government guarantees any
25 returns on insurance products or is a source of payment of
26 any insurance obligation of or sold by the financial
27 institution.
28 (215 ILCS 5/1411 new)
29 Sec. 1411. Commissions and compensation. No financial
30 institution shall pay, directly or indirectly, any
31 commission, service fee, brokerage, or other valuable
-31- LRB9002584JSpkam
1 consideration to any person for services as an insurance
2 producer, temporary insurance producer, or limited insurance
3 representative, or for such services by the person's members,
4 officers, directors or employees, unless the person, and any
5 member, officer, director, or employee performing the
6 service, held a valid license regarding the class of
7 insurance as to which the service was rendered, or unless the
8 person was a properly registered firm at the time the service
9 was performed. No person, other than a person properly
10 licensed or registered in accordance with Article XXXI of
11 this Code at the time the person performs services as an
12 insurance producer, temporary insurance producer, or limited
13 insurance representative, shall accept any commission,
14 service fee, brokerage, or other valuable consideration for
15 such services. This Section shall not prevent payment or
16 receipt of:
17 (1) renewal or other deferred commissions to or by any
18 person entitled thereto under this Section;
19 (2) fees to or by a financial institution or any other
20 person for services that do not require licensure as an
21 insurance producer, temporary insurance producer, limited
22 insurance representative, or registered firm; or
23 (3) consideration paid to a financial institution by a
24 registered firm, insurance producer, insurance company, or
25 any other person pursuant to any lease agreement.
26 (215 ILCS 5/1412 new)
27 Sec. 1412. Solicitations to loan applicants.
28 (a) A financial institution that requires a customer to
29 obtain insurance in connection with a loan or extension of
30 credit and that offers that insurance either directly or
31 through an affiliate shall clearly disclose to the customer
32 in writing at the time of written application or at closing
33 if no written application is obtained in a form substantially
-32- LRB9002584JSpkam
1 similar to the following:
2 "You may obtain insurance required in connection
3 with your loan or extension of credit from any insurance
4 agent, broker, or firm that sells such insurance. Your
5 choice of insurance provider will not affect our credit
6 decision or your credit terms.".
7 (b) This Section shall not apply when a financial
8 institution is contacting a customer in the course of direct
9 or mass marketing to a group of persons in a manner that
10 bears no relation to the customer's loan application or
11 credit decision.
12 (215 ILCS 5/1413 new)
13 Sec. 1413. Separate physical location and sales force
14 when insurance is solicited or sold in connection with a
15 loan.
16 (a) An employee of a financial institution may not
17 solicit or sell insurance at the same desk where a loan
18 transaction is conducted when the insurance is solicited or
19 sold in connection with the same loan.
20 (b) A loan officer of a financial institution who is
21 involved in the application, solicitation, or closing of a
22 loan transaction may not solicit or sell insurance in
23 connection with the same loan, but such loan officer may
24 refer the loan customer to another insurance producer who is
25 not involved in the application, solicitation, or closing of
26 the same loan transaction.
27 (c) Subsections (a) and (b) of this Section shall not
28 apply to a financial institution, other than a credit union,
29 or a branch location of a financial institution, other than a
30 credit union, that has less than $100,000,000 in deposits.
31 (d) Subsections (a) and (b) of this Section shall not
32 apply to a credit union or a branch location of a credit
33 union that has less than $30,000,000 in deposits.
-33- LRB9002584JSpkam
1 (215 ILCS 5/1414 new)
2 Sec. 1414. Signage. Signs concerning the availability
3 of insurance products offered by the financial institution or
4 by any registered firm shall be clearly displayed in the same
5 area where applications for loans or other extensions of
6 credit are being taken or closed and shall include the
7 disclosure set forth in subsection (a) of Section 1412.
8 (215 ILCS 5/1415 new)
9 Sec. 1415. Confidential customer information.
10 (a) A financial institution that is a registered firm may
11 not release a customer's insurance information to any person
12 other than an officer, director, employee, agent, or
13 affiliate of the financial institution without the written
14 consent of the customer. For the purposes of this Section,
15 "insurance information" means information concerning the
16 premiums, terms and conditions of insurance coverage,
17 insurance claims, and the insurance history of a customer
18 contained in the financial institution's records.
19 (b) Subsection (a) of this Section shall not apply to:
20 (1) names, addresses, and telephone numbers derived
21 in any manner from the financial institution's records,
22 or
23 (2) the release of insurance information as
24 otherwise authorized by State or federal law.
25 (c) A financial institution shall not require premium
26 information when requiring evidence of insurance in
27 connection with a loan or extension of credit and shall not
28 use such premium information for the purpose of soliciting
29 insurance without the written consent of the customer.
30 (d) A financial institution may not use health
31 information obtained from a customer's insurance records for
32 any purpose other than for its activities as a registered
33 firm pursuant to this Code.
-34- LRB9002584JSpkam
1 (215 ILCS 5/1416 new)
2 Sec. 1416. Prohibited defenses. A violation of any
3 provision of this Article shall not be used as a defense by
4 any person in any action by a financial institution to
5 recover the amount owing on any loan or extension of credit.
6 Section 35. Severability. The provisions of this
7 amendatory Act of 1997 and the changes made to existing
8 statutory law by this amendatory Act of 1997 are severable
9 under Section 1.31 of the Statute on Statutes.
10 Section 99. Effective date. This Act takes effect on
11 October 1, 1997.".
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