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91_HB3286enr
HB3286 Enrolled 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
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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
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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
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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,
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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
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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
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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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