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91_SB0378
LRB9103597JSpc
1 AN ACT relating to the regulations of certain financial
2 businesses, amending named Acts.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Illinois Savings and Loan Act of 1985 is
6 amended by changing Sections 1-6 and 7-11 as follows:
7 (205 ILCS 105/1-6) (from Ch. 17, par. 3301-6)
8 Sec. 1-6. General corporate powers. An association
9 operating under this Act shall be a body corporate and
10 politic and shall have all of the specific powers conferred
11 by this Act including, but not limited to and, in addition
12 thereto, the following general powers:
13 (a) To sue and be sued, complain and defend in its
14 corporate name, and to have a common seal, which it may alter
15 or renew at pleasure;
16 (b) To obtain and maintain insurance of the
17 association's withdrawable capital by an insurance
18 corporation as defined in this Act;
19 (c) Notwithstanding anything to the contrary contained
20 in this Act, to become a member of the Federal Home Loan
21 Bank, and to have all of the powers granted to a savings or
22 thrift institution organized under the laws of the United
23 States and which is located and doing business in the State
24 of Illinois, subject to regulations of the Commissioner;
25 (d) To act as a fiscal agent for the United States, the
26 State of Illinois or any department, branch, arm or agency of
27 the State or any unit of local government or school district
28 in the State when duly designated for that purpose, and as
29 agent to perform the reasonable functions as may be required
30 of it;
31 (e) To become a member of or deal with any corporation
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1 or agency of the United States or the State of Illinois, to
2 the extent that the agency assists in furthering or
3 facilitating the association's purposes or powers and to that
4 end to purchase stock or securities thereof or deposit money
5 therewith, and to comply with any other conditions of
6 membership or credit;
7 (f) To make donations in reasonable amounts for the
8 public welfare or for charitable, scientific, religious or
9 educational purposes;
10 (g) To adopt and operate reasonable insurance, bonus,
11 profit sharing, and retirement plans for officers and
12 employees; likewise, directors who are not officers,
13 including, but not limited to, advisory, honorary, and
14 emeritus directors, may participate in those plans;
15 (h) To reject any application for membership, to retire
16 withdrawable capital by enforced retirement as provided in
17 this Act and the by-laws, and to limit the issuance of or
18 payments on withdrawable capital, subject, however, to
19 contractual obligations;
20 (i) To purchase stock in service corporations and to
21 invest in any form of indebtedness of any service corporation
22 as defined in this Act, subject to regulations of the
23 Commissioner;
24 (j) To purchase stock of a corporation whose principal
25 purpose is to operate a safe deposit company or escrow
26 service company;
27 (k) To act as Trustee or Custodian under the Federal
28 Self-Employed Individuals' Tax Retirement Act of 1962 or any
29 amendments thereto or any other retirement account and invest
30 any funds held in such capacity in a savings account of the
31 institution;
32 (l) (Blank);
33 (m) To establish, maintain and operate terminals as
34 authorized by the Electronic Fund Transfer Act and by Section
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1 5 of the Illinois Banking Act. The establishment,
2 maintenance, operation and location of such terminals shall
3 be subject to the approval of the Commissioner;
4 (n) Subject to the approval and regulations of the
5 Commissioner, an association may purchase or assume all or
6 any part of the assets or liabilities of an eligible insured
7 bank;
8 (o) To purchase from a bank, as defined in Section 2 of
9 the Illinois Banking Act, an insubstantial portion of the
10 total deposits of an insured bank. For the purpose of this
11 subparagraph, "insubstantial portion of the total deposits"
12 shall have the same meaning as provided in Section 5(d)(2)(D)
13 of the Federal Deposit Insurance Act;
14 (p) To effect an acquisition of or conversion to another
15 financial institution pursuant to Section 205 of the
16 Financial Institutions Reform, Recovery and Enforcement Act
17 of 1989;
18 (q) To pledge its assets:
19 (1) to enable it to act as an agent for the sale of
20 obligations of the United States;
21 (2) to secure deposits;
22 (3) to secure deposits of money whenever required
23 by the National Bankruptcy Act;
24 (4) to qualify under Section 2-9 of the Corporate
25 Fiduciary Act; and
26 (5) to secure trust funds commingled with the
27 institution's funds, whether deposited by the institution
28 or an affiliate of the institution, as required under
29 Section 2-8 of the Corporate Fiduciary Act;
30 (r) To provide temporary periodic service to persons
31 residing in a bona fide nursing home, senior citizens'
32 retirement home, or long-term care facility;
33 (s) To purchase for its own account shares of stock of a
34 bankers' bank, described in Section 13(b)(1) of the Illinois
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1 Banking Act, on the same terms and conditions as a bank may
2 purchase such shares. In no event shall the total amount of
3 such stock held by an association in such bankers' bank
4 exceed 10% of its capital and surplus (including undivided
5 profits) and in no event shall an association acquire more
6 than 5% of any class of voting securities of such bankers'
7 bank;
8 (t) To effect a conversion to a State bank pursuant to
9 the provisions of the Illinois Banking Act; and
10 (u) Subject to Article XLIV of the Illinois Insurance
11 Code, to act as the agent for any fire, life, or other
12 insurance company authorized by the State of Illinois, by
13 soliciting and selling insurance and collecting premiums on
14 policies issued by such company; and may receive for services
15 so rendered such fees or commissions as may be agreed upon
16 between the said association and the insurance company for
17 which it may act as agent; provided, however, that no such
18 association shall in any case assume or guarantee the payment
19 of any premium on insurance policies issued through its
20 agency by its principal; and provided further, that the
21 association shall not guarantee the truth of any statement
22 made by an assured in filing his application for insurance;
23 and.
24 (v) To exercise all powers necessary to qualify as a
25 trustee or custodian under federal or State law, however, the
26 authority to accept and execute trusts is subject to the
27 Corporate Fiduciary Act and to the supervision of those
28 activities by the Commissioner.
29 (Source: P.A. 89-74, eff. 6-30-95; 89-310, eff. 1-1-96;
30 89-317, eff. 8-11-95; 89-355, eff. 8-17-95; 89-567, eff.
31 7-26-96; 89-603, eff. 8-2-96; 89-626, eff. 8-9-96; 90-14,
32 eff. 7-1-97; 90-41, eff. 10-1-97.)
33 (205 ILCS 105/7-11) (from Ch. 17, par. 3307-11)
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1 Sec. 7-11. Commissioner's authority to take custody and
2 appoint a conservator. The Commissioner in his discretion may
3 take custody of, and appoint a conservator for, the property,
4 liabilities, books, records, business and assets of every
5 kind and character of any association, trust or association
6 in liquidation, for any of the purposes hereinafter
7 enumerated, if it appears from reports made to the
8 Commissioner, or from examination made by or on behalf of the
9 Commissioner:
10 (a) That the directors, officers, trustees or
11 liquidators have neglected, failed or refused to take any
12 action which the Commissioner may deem necessary for the
13 protection of the association or trust or have impeded or
14 obstructed an examination; or
15 (b) That the withdrawable capital of the association is
16 impaired to the extent that the realizable value of its
17 assets is insufficient to pay in full its creditors and
18 holders of its withdrawable capital; or that its permanent
19 reserve capital is impaired; or
20 (c) That the association is unable to continue
21 operation; or
22 (d) That the business of the association, trust or
23 association in liquidation is being conducted in a
24 fraudulent, illegal or unsafe manner; or
25 (e) That the officers, employees, trustees or
26 liquidators have continued to assume duties or perform acts
27 without giving bond as required by the provisions of this
28 Act.
29 Unless the Commissioner finds that an emergency exists
30 which may result in loss to members or creditors and requires
31 that he take custody immediately, he first shall give written
32 notice to the directors, trustees or liquidators specifying
33 the conditions criticized and state a reasonable time within
34 which correction may be made. If however, an association
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1 whose accounts are insured by the Federal Savings and Loan
2 Insurance Corporation is impaired within the meaning of
3 paragraph (b) above, or any other condition exists which
4 would give the Commissioner authority to take custody of an
5 insured institution, the action of the Commissioner can be
6 withheld provided that the Commissioner determines from
7 reports made to him by the Association, and such other
8 examinations as may be deemed necessary, that the Association
9 has sufficient liquid assets and has adopted and implemented
10 an operating plan satisfactory to the Commissioner. In such
11 case the Commissioner may defer a custody action pending a
12 satisfactory resolution of the impairment as suggested by
13 either the Association or the Federal Savings and Loan
14 Insurance Corporation.
15 If any condition exists that would give the Commissioner
16 authority to take custody of an association, the action of
17 the Commissioner may be withheld pending a satisfactory
18 resolution of the condition as suggested by the insurance
19 corporation provided the association has sufficient liquidity
20 and has adopted and implemented an operating plan the
21 Commissioner considers prudent.
22 No action or inaction of the Commissioner taken pursuant
23 to this Article shall cause the Commissioner to be personally
24 liable for such action or inaction unless the Commissioner's
25 action or inaction is found to be in violation of a criminal
26 statute. The Commissioner shall promulgate rules and
27 regulations to govern the determination of a need for a
28 conservator and the selection, appointment and conduct of a
29 conservatorship, including allocation of payment and costs.
30 (Source: P.A. 85-1143.)
31 Section 10. The Savings Bank Act is amended by changing
32 Sections 1007.105, 1008, 4005, 6002, 8016, 9009, 11005, and
33 11008 and adding Section 4014 as follows:
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1 (205 ILCS 205/1007.105) (from Ch. 17, par. 7301-7.105)
2 Sec. 1007.105. "Service corporation" means any
3 corporation that is 51% or more owned by one or more savings
4 banks, or by savings banks and other depository institutions,
5 whose purposes are reasonably incident to the accomplishment
6 of the express or incidental powers conferred upon savings
7 banks by this Act.
8 (Source: P.A. 86-1213.)
9 (205 ILCS 205/1008) (from Ch. 17, par. 7301-8)
10 Sec. 1008. General corporate powers.
11 (a) A savings bank operating under this Act shall be a
12 body corporate and politic and shall have all of the specific
13 and in addition thereto, the following general powers:
15 (1) To sue and be sued, complain, and defend in its
16 corporate name and to have a common seal, which it may
17 alter or renew at pleasure.
18 (2) To obtain and maintain insurance by a deposit
19 insurance corporation as defined in this Act.
20 (3) To act as a fiscal agent for the United States,
21 the State of Illinois or any department, branch, arm, or
22 agency of the State or any unit of local government or
23 school district in the State, when duly designated for
24 that purpose, and as agent to perform reasonable
25 functions as may be required of it.
26 (4) To become a member of or deal with any
27 corporation or agency of the United States or the State
28 of Illinois, to the extent that the agency assists in
29 furthering or facilitating its purposes or powers and to
30 that end to purchase stock or securities thereof or
31 deposit money therewith, and to comply with any other
32 conditions of membership or credit.
33 (5) To make donations in reasonable amounts for the
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1 public welfare or for charitable, scientific, religious,
2 or educational purposes.
3 (6) To adopt and operate reasonable insurance,
4 bonus, profit sharing, and retirement plans for officers
5 and employees and for directors including, but not
6 limited to, advisory, honorary, and emeritus directors,
7 who are not officers or employees.
8 (7) To reject any application for membership; to
9 retire deposit accounts by enforced retirement as
10 provided in this Act and the bylaws; and to limit the
11 issuance of, or payments on, deposit accounts, subject,
12 however, to contractual obligations.
13 (8) To purchase stock in service corporations and
14 to invest in any form of indebtedness of any service
15 corporation as defined in this Act, subject to
16 regulations of the Commissioner.
17 (9) To purchase stock of a corporation whose
18 principal purpose is to operate a safe deposit company or
19 escrow service company.
20 (10) To exercise all the powers necessary to
21 qualify as a trustee or custodian under federal or State
22 law, provided that the authority to accept and execute
23 trusts is subject to the provisions of the Corporate
24 Fiduciary Act and to the supervision of those activities
25 by the Commissioner of Banks and Real Estate.
26 (11) (Blank).
27 (12) To establish, maintain, and operate terminals
28 as authorized by the Electronic Fund Transfer Act. The
29 establishment, maintenance, operation, and location of
30 those terminals shall be subject to the approval of the
31 Commissioner.
32 (13) To pledge its assets:
33 (A) to enable it to act as agent for the sale
34 of obligations of the United States;
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1 (B) to secure deposits;
2 (C) to secure deposits of money whenever
3 required by the National Bankruptcy Act;
4 (D) to qualify under Section 2-9 of the
5 Corporate Fiduciary Act; and
6 (E) to secure trust funds commingled with the
7 savings bank's funds, whether deposited by the
8 savings bank or an affiliate of the savings bank, as
9 required under Section 2-8 of the Corporate
10 Fiduciary Act.
11 (14) To accept for payment at a future date not to
12 exceed one year from the date of acceptance, drafts drawn
13 upon it by its customers; and to issue, advise, or
14 confirm letters of credit authorizing holders thereof to
15 draw drafts upon it or its correspondents.
16 (15) Subject to the regulations of the
17 Commissioner, to own and lease personal property acquired
18 by the savings bank at the request of a prospective
19 lessee and, upon the agreement of that person, to lease
20 the personal property.
21 (16) To establish temporary service booths at any
22 International Fair in this State that is approved by the
23 United States Department of Commerce for the duration of
24 the international fair for the purpose of providing a
25 convenient place for foreign trade customers to exchange
26 their home countries' currency into United States
27 currency or the converse. To provide temporary periodic
28 service to persons residing in a bona fide nursing home,
29 senior citizens' retirement home, or long-term care
30 facility. These powers shall not be construed as
31 establishing a new place or change of location for the
32 savings bank providing the service booth.
33 (17) To indemnify its officers, directors,
34 employees, and agents, as authorized for corporations
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1 under Section 8.75 of the Business Corporations Act of
2 1983.
3 (18) To provide data processing services to others
4 on a for-profit basis.
5 (19) To utilize any electronic technology to
6 provide customers with home banking services.
7 (20) Subject to the regulations of the
8 Commissioner, to enter into an agreement to act as a
9 surety.
10 (21) Subject to the regulations of the
11 Commissioner, to issue credit cards, extend credit
12 therewith, and otherwise engage in or participate in
13 credit card operations.
14 (22) To purchase for its own account shares of
15 stock of a bankers' bank, described in Section 13(b)(1)
16 of the Illinois Banking Act, on the same terms and
17 conditions as a bank may purchase such shares. In no
18 event shall the total amount of such stock held by a
19 savings bank in such bankers' bank exceed 10% of its
20 capital and surplus (including undivided profits) and in
21 no event shall a savings bank acquire more than 5% of any
22 class of voting securities of such bankers' bank.
23 (23) With respect to affiliate facilities:
24 (A) to conduct at affiliate facilities any of
25 the following transactions for and on behalf of any
26 affiliated depository institution, if so authorized
27 by the affiliate or affiliates: receiving deposits;
28 renewing deposits; cashing and issuing checks,
29 drafts, money orders, travelers checks, or similar
30 instruments; changing money; receiving payments on
31 existing indebtedness; and conducting ministerial
32 functions with respect to loan applications,
33 servicing loans, and providing loan account
34 information; and
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1 (B) to authorize an affiliated depository
2 institution to conduct for and on behalf of it, any
3 of the transactions listed in this subsection at one
4 or more affiliate facilities.
5 A savings bank intending to conduct or to authorize
6 an affiliated depository institution to conduct at an
7 affiliate facility any of the transactions specified in
8 this subsection shall give written notice to the
9 Commissioner at least 30 days before any such transaction
10 is conducted at an affiliate facility. All conduct under
11 this subsection shall be on terms consistent with safe
12 and sound banking practices and applicable law.
13 (24) Subject to Article XLIV of the Illinois
14 Insurance Code, to act as the agent for any fire, life,
15 or other insurance company authorized by the State of
16 Illinois, by soliciting and selling insurance and
17 collecting premiums on policies issued by such company;
18 and may receive for services so rendered such fees or
19 commissions as may be agreed upon between the said
20 savings bank and the insurance company for which it may
21 act as agent; provided, however, that no such savings
22 bank shall in any case assume or guarantee the payment of
23 any premium on insurance policies issued through its
24 agency by its principal; and provided further, that the
25 savings bank shall not guarantee the truth of any
26 statement made by an assured in filing his application
27 for insurance.
28 (25) To become a member of the Federal Home Loan
29 Bank and to have the powers granted to a savings
30 association organized under the Illinois Savings and Loan
31 Act of 1985 or the laws of the United States, subject to
32 regulations of the Commissioner.
33 (26) To offer any product or service that is at the
34 time authorized or permitted to a bank by applicable law,
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1 but subject always to the same limitations and
2 restrictions that are applicable to the bank for the
3 product or service by such applicable law and subject to
4 the applicable provisions of the Financial Institutions
5 Insurance Sales Law and rules of the Commissioner.
6 (b) If this Act or the regulations adopted under this
7 Act fail to provide specific guidance in matters of corporate
8 governance, the provisions of the Business Corporation Act of
9 1983 may be used.
10 (Source: P.A. 89-74, eff. 6-30-95; 89-310, eff. 1-1-96;
11 89-317, eff. 8-11-95; 89-355, eff. 8-17-95; 89-508, eff.
12 7-3-96; 89-603, eff. 8-2-96; 89-626, eff. 8-9-96; 90-14, eff.
13 7-1-97; 90-41, eff. 10-1-97; 90-270, eff. 7-30-97; 90-301,
14 eff. 8-1-97; 90-655, eff. 7-30-98; 90-665, eff. 7-30-98;
15 revised 10-31-98.)
16 (205 ILCS 205/4005) (from Ch. 17, par. 7304-5)
17 Sec. 4005. Voting.
18 (a) Voting at a meeting may be either in person or by
19 proxy executed in writing by the member or stockholder or by
20 his duly authorized attorney-in-fact.
21 (b) In the determination of all questions requiring
22 ascertainment of who is entitled to vote and of the number of
23 outstanding shares, the following rules shall apply:
24 (1) The date of determination shall be the record
25 date for voting provided in this Act.
26 (2) Each person holding one or more withdrawable
27 accounts in a mutual savings bank shall have the vote of
28 one share for each $100 of the aggregate withdrawal value
29 of the accounts and shall have the vote of one share for
30 any fraction of $100; however, subject to regulation of
31 the Commissioner, a mutual savings bank may in its
32 by-laws limit the number of votes a person may cast to
33 1,000 votes. A mutual savings bank may adopt a different
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1 voting arrangement if the Commissioner finds that the
2 arrangement would not be inequitable to members and if
3 the members approve the arrangement by an affirmative
4 vote of at least two-thirds of the votes entitled to be
5 cast, however, the voting arrangement need not obtain the
6 foregoing member approval if such voting arrangement is
7 otherwise approved as part of a corporate change under
8 this Act.
9 (3) Each holder of capital stock held shall have
10 one vote for each share held.
11 (4) Shares owned by the savings bank shall not be
12 counted or voted.
13 (5) A savings bank authorized to issue stock shall
14 provide in its articles of incorporation that voting
15 rights may be vested exclusively in stockholders.
16 (Source: P.A. 88-579, eff. 8-12-94.)
17 (205 ILCS 205/4014 new)
18 Sec. 4014. Waiver of notice. Whenever any notice
19 whatever is required to be given under this Act or under the
20 provisions of the articles of incorporation or bylaws of a
21 savings bank, a waiver thereof in writing signed by the
22 person entitled to the notice, whether before or after the
23 time stated therein, shall be deemed equivalent to the giving
24 of the notice. Attendance at any meeting shall constitute
25 waiver of notice thereof unless the person at the meeting
26 objects to the holding of the meeting because proper notice
27 was not given.
28 (205 ILCS 205/6002) (from Ch. 17, par. 7306-2)
29 Sec. 6002. Investment in loans. Subject to the
30 regulations of the Commissioner, a savings bank may loan
31 funds as follows:
32 (1) On the security of deposit accounts, but no such
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1 loan shall exceed the withdrawal value of the pledged
2 account.
3 (2) On the security of real estate:
4 (A) of a value, determined in accordance with this
5 Act, sufficient to provide good and ample security for
6 the loan;
7 (B) with a fee simple title or a leasehold title;
8 (C) with the title established by evidence of title
9 as is consistent with sound lending practices in the
10 locality;
11 (D) with the security interest in the real estate
12 evidenced by an appropriate written instrument and the
13 loan evidenced by a note, bond, or similar written
14 instrument; a loan on the security of the whole of the
15 beneficial interest in a land trust satisfies the
16 requirements of this paragraph if the title to the land
17 is held by a corporate trustee and if the real estate
18 held in the land trust meets the other requirements of
19 this subsection;
20 (E) with a mortgage loan not to exceed 40 years.
21 (3) For the purpose of repair, improvement,
22 rehabilitation, furnishing, or equipment of real estate.
23 (4) For the purpose of financing or refinancing an
24 existing ownership interest in certificates of stock,
25 certificates of beneficial interest, other evidence of an
26 ownership interest in, or a proprietary lease from a
27 corporation, trust, or partnership formed for the purpose of
28 the cooperative ownership of real estate, secured by the
29 assignment or transfer of certificates or other evidence of
30 ownership of the borrower.
31 (5) Through the purchase of loans that, at the time of
32 purchase, the savings bank could make in accordance with this
33 Section and the bylaws.
34 (6) Through the purchase of installment contracts for
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1 the sale of real estate and title thereto that is subject to
2 the contracts, but in each instance only if the savings bank,
3 at the time of purchase, could make a mortgage loan of the
4 same amount and for the same length of time on the security
5 of the real estate.
6 (7) Through loans guaranteed or insured, wholly or in
7 part, by the United States or any of its instrumentalities.
8 (8) Subject to regulations adopted by the Commissioner,
9 through secured or unsecured loans for business, corporate,
10 commercial, or agricultural purposes; provided that the total
11 of all loans granted under this paragraph shall not exceed
12 15% of the savings bank's total assets unless a greater
13 amount is authorized in writing by the Commissioner.
14 (9) For the purpose of mobile home financing subject,
15 however, to the regulation of the Commissioner.
16 (10) Through loans secured by the cash surrender value
17 of any life insurance policy or any collateral that would be
18 a legal investment under the terms of this Act if made by the
19 savings bank.
20 (11) Any provision of this Act or any other law, except
21 for paragraph (18) of Section 6003, to the contrary
22 notwithstanding, but subject to the Financial Institutions
23 Insurance Sales Law and subject to the Commissioner's
24 regulations, any savings bank may make any loan or investment
25 or engage in any activity that it could make or engage in if
26 it were organized under State law as a savings and loan
27 association or under federal law as a federal savings and
28 loan association or federal savings bank.
29 (12) A savings bank may issue letters of credit or other
30 similar arrangements only as provided for by regulation of
31 the Commissioner with regard to aggregate amounts permitted,
32 take out commitments for stand-by letters of credit,
33 underlying documentation and underwriting, legal limitations
34 on loans of the savings bank, control and subsidiary records,
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1 and other procedures deemed necessary by the Commissioner.
2 (13) For the purpose of automobile financing, subject to
3 the regulation of the Commissioner.
4 (14) For the purpose of financing primary, secondary,
5 undergraduate, or postgraduate education.
6 (15) Through revolving lines of credit on the security
7 of a first or junior lien on the borrower's personal
8 residence, based primarily on the borrower's equity, the
9 proceeds of which may be used for any purpose; those loans
10 being commonly referred to as home equity loans.
11 (16) As secured or unsecured credit to cover the payment
12 of checks, drafts, or other funds transfer orders in excess
13 of the available balance of an account on which they are
14 drawn, subject to the regulations of the Commissioner.
15 (Source: P.A. 90-301, eff. 8-1-97.)
16 (205 ILCS 205/8016) (from Ch. 17, par. 7308-16)
17 Sec. 8016. Procedure for conversion from a savings bank
18 charter.
19 (a) Any savings bank operating under this Act may
20 convert to any other depository institution chartered become
21 a State savings and loan association or State bank under
22 Illinois charter or a federal association under the laws and
23 regulations of this State or under the laws and regulations
24 of the United States in accordance with the following
25 requirements procedure:
26 (1) The converting savings bank shall notify the
27 Commissioner of its intent to convert. Notice should be
28 submitted when the savings bank first submits a request to
29 convert to the appropriate State of federal authorities, but
30 in no case less than 30 days before the conversion. Approval
31 of the conversion by the Commissioner shall not be required
32 except when the savings bank converts to a depository
33 institution that is also chartered by the Commissioner in
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1 which case the savings bank shall comply with State law and
2 regulations applicable to the conversion to such depository
3 institution.
4 (2)(1) The board of directors shall approve a plan of
5 conversion by resolution adopted by majority vote of all of
6 the directors. The plan shall set forth, among other terms,
7 the following:
8 (A) a financial statement of the savings bank as of
9 the last business day of the month preceding the adoption
10 of the plan;
11 (B) the disposition of deposit accounts and capital
12 stock, if any;
13 (C) adjustments, if any, in the value of the
14 deposit accounts when exchanged for comparable accounts
15 in the converted institution;
16 (D) the disposition of any obligations or
17 liabilities; and
18 (E) any other information that may be required by
19 the Commissioner.
20 (2) The plan shall not be submitted to the members until
21 approved by the Commissioner.
22 (3) The Commissioner may approve the plan; or if the
23 Commissioner disapproves the plan, he shall state his
24 objections in writing and give the converting savings bank an
25 opportunity to amend the plan to obviate the objections.
26 Approval shall be given if the Commissioner finds that the
27 plan meets the requirements of this Act and the plan is
28 equitable and protects the rights of all persons affected,
29 including contingent interests as theretofore may have been
30 created in the retained earnings, if any.
31 (4) After receipt of approval from the Commissioner, the
32 plan of conversion shall be mailed to each member and may be
33 submitted to a vote at an annual or special meeting of the
34 members.
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1 (3) Upon notice prescribed by subsection (a) of Section
2 4003 of this Act, the plan of conversion shall be adopted
3 upon receiving in the affirmative two-thirds or more of the
4 total number of votes that all members of the savings bank
5 are entitled to cast. A report of proceedings at the meeting
6 Within 90 days after the date of the
21 meeting, the savings bank shall take the action prescribed
22 and authorized by the laws and regulations of the State of
23 Illinois or the United States to complete its conversion to a
24 State association, State bank or federal association.
25 (6) Upon receipt of a State or federal charter, the
26 savings bank shall file promptly with the Commissioner either
27 a copy of the charter or a certificate of the appropriate
28 State or federal officer setting forth the facts concerning
29 the issuance of the charter; and upon recording the charter
30 in the same manner as the savings bank's articles of
31 incorporation, the savings bank shall cease to be a savings
32 bank operating under the Act.
33 (Source: P.A. 89-567, eff. 7-26-96.)
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1 (205 ILCS 205/9009) (from Ch. 17, par. 7309-9)
2 Sec. 9009. Orders of the Commissioner.
3 (a) If the affairs of the savings bank, savings bank
4 subsidiary or affiliate, or savings bank holding company are
5 not being conducted in accordance with this Act, the
6 Commissioner shall require the directors, officers, and
7 employees to take any necessary corrective action. If the
8 necessary corrective action is not taken, the Commissioner
9 may issue a formal order to the directors of the savings
10 bank, subsidiary, affiliate, or holding company, to be
11 delivered either personally or by registered or certified
12 mail, specifying a date, which may be immediate or may be a
13 later date, for the performance of the corrective action by
14 the savings bank, subsidiary, affiliate, or holding company.
15 The order or any part thereof shall be subject to Section
16 11006 of this Act.
17 (b) If the formal order of the Commissioner, in whole or
18 in part, contains a finding that the business of the savings
19 bank or holding company is being conducted in a fraudulent,
20 illegal, unsafe, or unsound manner or that the violation
21 thereof or the continuance by the savings bank or holding
22 company of the practice to be corrected could cause
23 insolvency, substantial dissipation of assets or earnings, or
24 the impairment of its capital, the order or part thereof
25 shall be complied with immediately on or before the effective
26 date thereof until modified or withdrawn by the Commissioner
27 or modified or terminated by a circuit court. The
28 Commissioner may apply to the circuit court of the county in
29 which the savings bank or holding company is located for
30 enforcement of an order requiring prompt compliance.
31 (c) If the order, or part thereof, is not subject to
32 subsection (b) and if no hearing pursuant to Section 9018 of
33 this Act has been requested within 5 days of the effective
34 date of the order, the Commissioner may, at any time within
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1 90 days after the effective date of the order, institute suit
2 in the circuit court of Sangamon County or the circuit court
3 of the county in which the savings bank or holding company is
4 located to compel the directors, officers, or employees to
5 take the required corrective action. The court, after due
6 process of law, shall adjudicate the question, enter the
7 proper order or orders, and enforce them.
8 (d) No provision of this Section shall interfere with
9 the exercise by the Commissioner of any provision of Article
10 11.
11 (Source: P.A. 86-1213.)
12 (205 ILCS 205/11005) (from Ch. 17, par. 7311-5)
13 Sec. 11005. Institution affiliated party. As used in
14 this Act, the term "institution affiliated party" shall mean
15 a director, officer, employee, agent, or controlling
16 stockholder of a savings bank operating under this Act; a
17 person who has filed or is required to file a
18 change-in-control notice with the Commissioner; any person
19 subject to an order of or a party to an agreement with the
20 Commissioner pertaining to a savings bank; a shareholder of,
21 consultant to, joint venture partner of, or an independent
22 contractor for (including accountants, appraisers and
23 attorneys) any other person who participates in a significant
24 way in the affairs of a savings bank operating under this
25 Act.
26 (Source: P.A. 86-1213.)
27 (205 ILCS 205/11008) (from Ch. 17, par. 7311-8)
28 Sec. 11008. Unauthorized participation by convicted
29 individual.
30 (a) Except with the prior written consent of the
31 Commissioner, no person who has been convicted of any
32 criminal offense involving dishonesty or a breach of trust
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1 may own or control directly or indirectly more than 0.001% of
2 the capital stock of, receive benefit directly or indirectly
3 from, or participate, directly or indirectly, in any manner
4 in the conduct of the affairs of a savings bank.
5 (b) A savings bank may not permit participation by a
6 person described in subsection (a).
7 (c) Whoever knowingly violates subsection (a) or (b) is
8 guilty of a Class 3 felony and may be fined not more than
9 $10,000 for each day of violation.
10 (Source: P.A. 86-1213.)
11 Section 15. The Corporate Fiduciary Act is amended by
12 changing Sections 1-3, 1-5.07, 1-5.08, 1-6, 3-3, 4-1, and 4-4
13 as follows:
14 (205 ILCS 620/1-3) (from Ch. 17, par. 1551-3)
15 Sec. 1-3. Scope of Act; application to national banks,
16 federally chartered savings and loan associations or
17 federally chartered savings banks. After January 1, 1988, no
18 national bank chartered by the Comptroller of the Currency
19 and having its main office in Illinois or federal savings and
20 loan association or federal savings bank chartered by the
21 Federal Home Loan Bank Board and having its main office in
22 Illinois shall be required to obtain a certificate of
23 authority under this Act or in any manner submit to the
24 regulation or supervision pursuant to this Act, but such
25 national bank, federal savings and loan association or
26 federal savings bank shall only be required to obtain the
27 authority to accept and execute trusts from the particular
28 federal agency which granted its charter, to be exempt from
29 the provisions of this Act. Nothing in this Section 1-3 shall
30 exempt national banks, federal savings and loan associations
31 or federal savings banks whose main offices are located
32 outside of Illinois from compliance with the provisions of
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1 Article IV of this Act.
2 On January 1, 1988, any certificate of authority which
3 has been issued under the provisions of this Act to a
4 national bank, federally chartered savings and loan
5 association or federally chartered savings bank in Illinois
6 shall expire and be of no further force and effect and upon
7 the request of the Commissioner, shall be surrendered.
8 After January 1, 1988, a any State bank that which has a
9 certificate of authority under this Act and which proposes to
10 convert to a national bank and or a State chartered savings
11 and loan association and a State chartered savings bank that
12 has a certificate of authority under this Act and which
13 proposes to convert to a federally chartered savings and loan
14 association or federally chartered savings bank, shall notify
15 the Commissioner of such fact and upon obtaining its charter
16 from the relevant federal regulator, shall surrender its
17 certificate of authority issued pursuant to this Act.
18 (Source: P.A. 86-754.)
19 (205 ILCS 620/1-5.07) (from Ch. 17, par. 1551-5.07)
20 Sec. 1-5.07. "Depository institution" includes banks,
21 savings and loan associations, savings banks, and credit
22 unions.
23 (Source: P.A. 85-858.)
24 (205 ILCS 620/1-5.08) (from Ch. 17, par. 1551-5.08)
25 Sec. 1-5.08. "Foreign corporation" means:
26 (a) any bank, savings and loan association, savings
27 bank, or other corporation now or hereafter organized under
28 the laws of any state or territory of the United States of
29 America, including the District of Columbia, other than the
30 State of Illinois;
31 (b) any national banking association having its
32 principal place of business in any state or territory of the
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1 United States of America, including the District of Columbia,
2 other than the State of Illinois; and
3 (c) any federal savings and loan association or federal
4 savings bank having its principal place of business in any
5 state or territory of the United States of America, including
6 the District of Columbia, other than the State of Illinois.
7 (Source: P.A. 85-858.)
8 (205 ILCS 620/1-6) (from Ch. 17, par. 1551-6)
9 Sec. 1-6. General Corporate Powers. A corporate
10 fiduciary shall have the powers:
11 (a) if it is a State bank, those powers granted
12 under Sections 3 and 5 of the Illinois Banking Act, as
13 now or hereafter amended; and
14 (b) if it is a State savings and loan association,
15 those powers granted under Sections 1-6 through 1-8 of
16 the Illinois Savings and Loan Act of 1985, as now or
17 hereafter amended; and
18 (c) if it is a State savings bank, those powers
19 granted under the Savings Bank Act; and
20 (d)(c) if it is a corporation organized under the
21 Business Corporation Act of 1983, as now or hereafter
22 amended, or a limited liability company organized under
23 the Limited Liability Company Act, those powers granted
24 in Sections 4.01 through 4.24 of the Trusts and Trustees
25 Act, as now or hereafter amended, to the extent the
26 exercise of such powers by the corporate fiduciary are
27 not contrary to the instrument containing the appointment
28 of the corporate fiduciary, the court order appointing
29 the corporate fiduciary or any other statute specifically
30 limiting the power of the corporate fiduciary under the
31 circumstances; and
32 (e)(d) subject to Article XLIV of the Illinois
33 Insurance Code, to act as the agent for any fire, life,
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1 or other insurance company authorized by the State of
2 Illinois, by soliciting and selling insurance and
3 collecting premiums on policies issued by such company;
4 and may receive for services so rendered such fees or
5 commissions as may be agreed upon between the said
6 corporate fiduciary and the insurance company for which
7 it may act as agent; provided, however, that no such
8 corporate fiduciary shall in any case assume or guarantee
9 the payment of any premium on insurance policies issued
10 through its agency by its principal; and provided
11 further, that the corporate fiduciary shall not guarantee
12 the truth of any statement made by an assured in filing
13 his application for insurance.
14 The Commissioner may specify powers of corporate
15 fiduciaries generally or of a particular corporate fiduciary
16 and by rule or order limit or restrict such powers of
17 corporate fiduciaries or a particular corporate fiduciary if
18 he finds the exercise of such power by corporate fiduciaries
19 generally or of the corporate fiduciary in particular may
20 tend to be an unsafe or unsound practice, or if such power is
21 otherwise not in the interest of beneficiaries of any
22 fiduciary appointment.
23 (Source: P.A. 90-41, eff. 10-1-97; 90-424, eff. 1-1-98;
24 90-655, eff. 7-30-98.)
25 (205 ILCS 620/3-3) (from Ch. 17, par. 1553-3)
26 Sec. 3-3. Successor trustee.
27 (a) If any corporate fiduciary merges into, or becomes
28 consolidated with, another corporate fiduciary qualified to
29 administer trusts or is succeeded in its trust business by
30 any corporate fiduciary by purchase or otherwise; or if a
31 bank holding company causes a subsidiary, qualified to
32 administer trusts, to succeed to part or all of the trust
33 business of any other subsidiary of the same bank holding
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1 company, the surviving, consolidated, successor corporate
2 fiduciary or subsidiary shall become successor fiduciary in
3 place of such predecessor corporate fiduciary, unless
4 expressly prohibited by the provisions of the trust
5 instrument, with all the rights, powers and duties which were
6 granted to or imposed on such predecessor corporate
7 fiduciary.
8 (b) (Blank).
9 (c) Notwithstanding any other provision of law, a
10 corporate fiduciary may delegate to any of its affiliates
11 qualified to administer trusts any or all fiduciary duties,
12 actions or decisions, discretionary or otherwise, and the
13 delegating corporate fiduciary shall not be required to
14 review any delegated actions or decisions taken by the
15 affiliate. The term "affiliate" means any state bank, any
16 state savings bank, any state savings and loan association,
17 any national bank, any trust company, or any other
18 corporation, which is qualified to act as a fiduciary in this
19 or any other state and which is a member of the same
20 affiliated group (within the meaning of Section 1504 of the
21 Internal Revenue Code of 1986, as amended).
22 (Source: P.A. 89-205, eff. 1-1-96; 89-364, eff. 8-18-95;
23 89-567, eff. 7-26-96; 89-686, eff. 6-1-97; 90-14, eff.
24 7-1-97.)
25 (205 ILCS 620/4-1) (from Ch. 17, par. 1554-1)
26 Sec. 4-1. Foreign corporate fiduciary; certificate of
27 authority. After July 13, 1953, no foreign corporation,
28 including banks, savings banks, and savings and loan
29 associations, now or hereafter organized under the laws of
30 any other state or territory, and no national banking
31 association having its principal place of business in any
32 other state or territory or federal savings and loan
33 association or federal savings bank having its principal
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1 place of business in any other state or territory, may
2 procure a certificate of authority under Article II of this
3 Act and any certificate of authority heretofore issued
4 hereunder to any such foreign corporation or to any such
5 national banking association shall become null and void on
6 July 13, 1953, except that any such foreign corporation or
7 any such national banking association actually acting as
8 trustee, executor, administrator, administrator to collect,
9 guardian, or in any other like fiduciary capacity in this
10 State on July 13, 1953, may continue to act as such fiduciary
11 in that particular trust or estate until such time as it has
12 completed its duties thereunder. Such foreign corporation
13 and such national banking association shall be subject to the
14 provisions in this Article IV, regardless of whether its
15 certificate of authority was obtained before July 13, 1953.
16 The right and eligibility of any foreign corporation, any
17 national banking association having its principal place of
18 business in any other state or territory or any federal
19 savings and loan association or federal savings bank having
20 its principal place of business in any other state or
21 territory hereafter to act as trustee, executor,
22 administrator, administrator to collect, guardian, or in any
23 other like fiduciary capacity in this State shall be governed
24 solely by the provisions of this Act. Provided, however,
25 that the Commissioner shall not be required to conduct an
26 annual examination of such foreign corporation pursuant to
27 Section 5-2 of this Act, but may examine such foreign
28 corporation as the Commissioner deems appropriate.
29 "Principal place of business" of any bank, federal savings
30 and loan association or savings bank, for purposes of this
31 Article IV, means the principal office as designated on the
32 charter by its principal regulator.
33 (Source: P.A. 89-364, eff. 8-18-95.)
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1 (205 ILCS 620/4-4) (from Ch. 17, par. 1554-4)
2 Sec. 4-4. Place of business not to be established in
3 State; not deemed transacting business.
4 (a) A foreign corporation, as defined in Section 1-5.08
5 of this Act, shall not establish in this State a place of
6 business, branch office, or agency for the conduct of
7 business as a fiduciary and because it is not permitted to
8 establish in this State a place of business, branch office or
9 agency, a foreign corporation insofar as it acts in a
10 fiduciary capacity in this State pursuant to the provisions
11 of this Act shall not be deemed to be transacting business in
12 this State. The foreign corporation may apply for, and
13 procure from the Commissioner, a license to establish a
14 representative office pursuant to the Foreign Bank
15 Representative Office Act.
16 (b) Notwithstanding subsection (a) of this Section 4-4,
17 after May 31, 1997, a branch of an out-of-state bank, as
18 defined in Section 2 of the Illinois Banking Act, and a
19 foreign association, as defined in Section 1-10.31 of the
20 Illinois Savings and Loan Act of 1985, may establish an
21 office in this State for the conduct of business as a
22 fiduciary, provided: (i) fiduciary business conducted in this
23 State by a branch of an out-of-state bank is subject to
24 examination by the Commissioner; and (ii) the trust
25 activities of the branch of the out-of-state bank are subject
26 to regulation, including enforcement actions, by the
27 Commissioner to the same extent as Illinois corporate
28 fiduciaries.
29 (Source: P.A. 89-208, eff. 9-29-95; 89-364, eff. 8-18-95;
30 89-626, eff. 8-9-96; 90-665, eff. 7-30-98.)
31 Section 99. Effective date. This Act takes effect upon
32 becoming law.
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