100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB5569

 

Introduced , by Rep. C.D. Davidsmeyer

 

SYNOPSIS AS INTRODUCED:
 
205 ILCS 5/18  from Ch. 17, par. 325
205 ILCS 5/48.3  from Ch. 17, par. 360.2
205 ILCS 205/8015  from Ch. 17, par. 7308-15
205 ILCS 205/9012  from Ch. 17, par. 7309-12

    Amends the Illinois Banking Act and the Savings Bank Act. Replaces "Commissioner" with "Secretary" to update references to the Secretary of Financial and Professional Regulation. Provides that before any person or persons may cause a change of control of a State bank or a savings bank, the Secretary shall be of the opinion and find that the future prospects of the institution will not jeopardize the financial stability of the State bank or the savings bank or prejudice the interests of the depositors of the State bank or the interests of the members of the savings bank. Provides that the provisions of this Act do not apply to an established holding company acquiring control of a State bank or a savings bank if the transaction is subject to approval under specified provisions of federal law. Provides that a State bank or a savings bank may disclose confidential supervisory information to any attorney, accountant, consultant, or other professional as needed to comply with any enforcement action issued by the Secretary. Makes other changes. Effective immediately.


LRB100 18972 XWW 34222 b

 

 

A BILL FOR

 

HB5569LRB100 18972 XWW 34222 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Banking Act is amended by changing
5Sections 18 and 48.3 as follows:
 
6    (205 ILCS 5/18)  (from Ch. 17, par. 325)
7    Sec. 18. Change in control.
8    (a) Before any person, whether acting directly or
9indirectly or through or in concert with one or more persons,
10may cause (i) a change to may occur in the ownership of
11outstanding stock of any State bank, whether by sale and
12purchase, gift, bequest or inheritance, or any other means,
13including the acquisition of stock of the State bank by any
14bank holding company, which will result in control or a change
15in the control of the bank or (ii) before a change to occur in
16the control of a holding company having control of the
17outstanding stock of a State bank whether by sale and purchase,
18gift, bequest or inheritance, or any other means, including the
19acquisition of stock of such holding company by any other bank
20holding company, which will result in control or a change in
21control of the bank or holding company, or (iii) before a
22transfer of substantially all the assets or liabilities of the
23State bank, the Secretary Commissioner shall be of the opinion

 

 

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1and find:
2        (1) that the general character of proposed management
3    or of the person desiring to purchase substantially all the
4    assets or to assume substantially all the liabilities of
5    the State bank, after the change in control, is such as to
6    assure reasonable promise of successful, safe and sound
7    operation;
8        (1.1) that depositors' interests will not be
9    jeopardized by the purchase or assumption and that adequate
10    provision has been made for all liabilities as required for
11    a voluntary liquidation under Section 68 of this Act;
12        (2) that the future earnings prospects of the person
13    desiring to purchase substantially all assets or to assume
14    substantially all the liabilities of the State bank, after
15    the proposed change in control, are favorable;
16        (2.5) that the future prospects of the institution will
17    not jeopardize the financial stability of the bank or
18    prejudice the interests of the depositors of the bank;
19        (3) that any prior involvement by the persons proposing
20    to obtain control, to purchase substantially all the
21    assets, or to assume substantially all the liabilities of
22    the State bank or by the proposed management personnel with
23    any other financial institution, whether as stockholder,
24    director, officer or customer, was conducted in a safe and
25    sound manner; and
26        (4) that if the acquisition is being made by a bank

 

 

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1    holding company, the acquisition is authorized under the
2    Illinois Bank Holding Company Act of 1957.
3    (b) Any person Persons desiring to purchase control of an
4existing State state bank, to purchase substantially all the
5assets, or to assume substantially all the liabilities of the
6State bank shall, prior to that purchase, submit to the
7Secretary Commissioner:
8        (1) a statement of financial worth;
9        (2) satisfactory evidence that any prior involvement
10    by the persons and the proposed management personnel with
11    any other financial institution, whether as stockholder,
12    director, officer or customer, was conducted in a safe and
13    sound manner; and
14        (3) such other relevant information as the Secretary
15    Commissioner may request to substantiate the findings
16    under subsection (a) of this Section.
17    A person who has submitted information to the Secretary
18Commissioner pursuant to this subsection (b) is under a
19continuing obligation until the Secretary Commissioner takes
20action on the application to immediately supplement that
21information if there are any material changes in the
22information previously furnished or if there are any material
23changes in any circumstances that may affect the Secretary's
24Commissioner's opinion and findings. In addition, a person
25submitting information under this subsection shall notify the
26Secretary Commissioner of the date when the change in control

 

 

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1is finally effected.
2    The Secretary Commissioner may impose such terms and
3conditions on the approval of the change in control application
4as he deems necessary or appropriate.
5    If an applicant, whose application for a change in control
6has been approved pursuant to subsection (a) of this Section,
7fails to effect the change in control within 180 days after the
8date of the Secretary's Commissioner's approval, the Secretary
9Commissioner shall revoke that approval unless a request has
10been submitted, in writing, to the Secretary Commissioner for
11an extension and the request has been approved.
12    (b-1) Any person, whether acting directly or indirectly or
13through or in concert with one or more persons, who obtains
14ownership of stock of an existing State bank or stock of a
15holding company that controls the State bank by gift, bequest,
16or inheritance such that ownership of the stock would
17constitute control of the State bank or holding company may
18obtain title and ownership of the stock, but may not exercise
19management or control of the business and affairs of the bank
20or vote his or her shares so as to exercise management or
21control unless and until the Secretary Commissioner approves an
22application for the change of control as provided in subsection
23(b) of this Section.
24    (b-3) The provisions of this Section do not apply to an
25established holding company acquiring control of a State bank
26if the transaction is subject to approval under Section 3 of

 

 

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1the federal Bank Holding Company Act, the Federal Deposit
2Insurance Act, or the federal Home Owners' Loan Act.
3    (c) Whenever a State state bank makes a loan or loans,
4secured, or to be secured, by 25% or more of the outstanding
5stock of a State state bank, the president or other chief
6executive officer of the lending bank shall promptly report
7such fact to the Secretary Commissioner upon obtaining
8knowledge of such loan or loans, except that no report need be
9made in those cases where the borrower has been the owner of
10record of the stock for a period of one year or more, or the
11stock is that of a newly organized bank prior to its opening.
12    (d) The reports required by subsections (b) and (c) of this
13Section 18, other than those relating to a transfer of assets
14or assumption of liabilities, shall contain the following
15information to the extent that it is known by the person making
16the report: (1) the number of shares involved; (2) the names of
17the sellers (or transferors); (3) the names of the purchasers
18(or transferees); (4) the names of the beneficial owners if the
19shares are registered in another name: (5) the purchase price,
20if applicable; (6) the total number of shares owned by the
21sellers (or transferors), the purchasers (or transferees) and
22the beneficial owners both immediately before and after the
23transaction; and, (7) in the case of a loan, the name of the
24borrower, the amount of the loan, the name of the bank issuing
25the stock securing the loan and the number of shares securing
26the loan. In addition to the foregoing, such reports shall

 

 

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1contain such other information which is requested by the
2Secretary Commissioner to inform the Secretary Commissioner of
3the effect of the transaction upon control of the bank whose
4stock is involved.
5    (d-1) The reports required by subsection (b) of this
6Section 18 that relate to purchase of assets and assumption of
7liabilities shall contain the following information to the
8extent that it is known by the person making the report: (1)
9the value, amount, and description of the assets transferred;
10(2) the amount, type, and to whom each type of liabilities are
11owed; (3) the names of the purchasers (or transferees); (4) the
12names of the beneficial owners if the shares of a purchaser or
13transferee are registered in another name; (5) the purchase
14price, if applicable; and, (6) in the case of a loan obtained
15to effect a purchase, the name of the borrower, the amount and
16terms of the loan, and the description of the assets securing
17the loan. In addition to the foregoing, these reports shall
18contain any other information that is requested by the
19Secretary Commissioner to inform the Secretary Commissioner of
20the effect of the transaction upon the bank from which assets
21are purchased or liabilities are transferred.
22    (e) Whenever such a change as described in subsection (a)
23of this Section 18 occurs, each State state bank shall report
24promptly to the Secretary Commissioner any changes or
25replacement of its chief executive officer or of any director
26occurring in the next 12 month period, including in its report

 

 

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1a statement of the past and current business and professional
2affiliations of the new chief executive officer or directors.
3    (f) (Blank).
4    (g) (1) Except as otherwise expressly provided in this
5subsection (g), the Secretary Commissioners shall not approve
6an application for a change in control if upon consummation of
7the change in control the persons applying for the change in
8control, including any affiliates of the persons applying,
9would control 30% or more of the total amount of deposits which
10are located in this State at insured depository institutions.
11For purposes of this subsection (g), the words "insured
12depository institution" shall mean State banks, national
13banks, and insured savings associations. For purposes of this
14subsection (g), the word "deposits" shall have the meaning
15ascribed to that word in Section 3(1) of the Federal Deposit
16Insurance Act. For purposes of this subsection (g), the total
17amount of deposits which are considered to be located in this
18State at insured depository institutions shall equal the sum of
19all deposits held at the main banking premises and branches in
20the State of Illinois of State banks, national banks, or
21insured savings associations. For purposes of this subsection
22(g), the word "affiliates" shall have the meaning ascribed to
23that word in Section 35.2 of this Act.
24    (2) Notwithstanding the provisions of paragraph (1) of this
25subsection subsection (g)(1) of this Section, the Secretary
26Commissioner may approve an application for a change in control

 

 

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1for a bank that is in default or in danger of default. Except
2in those instances in which an application for a change in
3control is for a bank that is in default or in danger of
4default, the Secretary Commissioner may not approve a change in
5control which does not meet the requirements of paragraph (1)
6of this subsection subsection (g)(1) of this Section. The
7Secretary Commissioner may not waive the provisions of
8paragraph (1) of this subsection subsection (g)(1) of this
9Section, whether pursuant to Section 3(d) of the federal Bank
10Holding Company Act of 1956 or Section 44(d) of the Federal
11Deposit Insurance Act, except as expressly provided in this
12paragraph subsection (g)(2) of this subsection.
13    (h) As used in this Section:
14        "Control" , the term "control" means the power,
15    directly or indirectly, to direct the management or
16    policies of the bank or to vote 25% or more of the
17    outstanding stock of the bank. If there is any question as
18    to whether a change in control application should be filed,
19    the question shall be resolved in favor of filing the
20    application with the Secretary Commissioner.
21        "Substantially As used in this Section, "substantially
22    all" the assets or liabilities of a State bank means that
23    portion of the assets or liabilities of a State bank such
24    that their purchase or transfer will materially impair the
25    ability of the State bank to continue successful, safe, and
26    sound operations or to continue as a going concern or would

 

 

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1    cause the bank to lose its federal deposit insurance.
2        "Purchase" As used in this Section, "purchase"
3    includes a transfer by gift, bequest, inheritance, or any
4    other means.
5    As used in this Section, a person is acting in concert if
6that person is acting in concert under federal laws or
7regulations.
8(Source: P.A. 92-483, eff. 8-23-01; 92-811, eff. 8-21-02.)
 
9    (205 ILCS 5/48.3)  (from Ch. 17, par. 360.2)
10    Sec. 48.3. Disclosure of reports of examinations and
11confidential supervisory information; limitations.
12    (a) Any report of examination, visitation, or
13investigation prepared by the Secretary under this Act, the
14Electronic Fund Transfer Act, the Corporate Fiduciary Act, the
15Illinois Bank Holding Company Act of 1957, and the Foreign
16Banking Office Act, any report of examination, visitation, or
17investigation prepared by the state regulatory authority of
18another state that examines a branch of an Illinois State bank
19in that state, any document or record prepared or obtained in
20connection with or relating to any examination, visitation, or
21investigation, and any record prepared or obtained by the
22Secretary to the extent that the record summarizes or contains
23information derived from any report, document, or record
24described in this subsection shall be deemed "confidential
25supervisory information". Confidential supervisory information

 

 

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1shall not include any information or record routinely prepared
2by a bank or other financial institution and maintained in the
3ordinary course of business or any information or record that
4is required to be made publicly available pursuant to State or
5federal law or rule. Confidential supervisory information
6shall be the property of the Secretary and shall only be
7disclosed under the circumstances and for the purposes set
8forth in this Section.
9     The Secretary may disclose confidential supervisory
10information only under the following circumstances:
11        (1) The Secretary may furnish confidential supervisory
12    information to the Board of Governors of the Federal
13    Reserve System, the federal reserve bank of the federal
14    reserve district in which the State bank is located or in
15    which the parent or other affiliate of the State bank is
16    located, any official or examiner thereof duly accredited
17    for the purpose, or any other state regulator, federal
18    regulator, or in the case of a foreign bank possessing a
19    certificate of authority pursuant to the Foreign Banking
20    Office Act or a license pursuant to the Foreign Bank
21    Representative Office Act, the bank regulator in the
22    country where the foreign bank is chartered, that the
23    Secretary determines to have an appropriate regulatory
24    interest. Nothing contained in this Act shall be construed
25    to limit the obligation of any member State bank to comply
26    with the requirements relative to examinations and reports

 

 

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1    of the Federal Reserve Act and of the Board of Governors of
2    the Federal Reserve System or the federal reserve bank of
3    the federal reserve district in which the bank is located,
4    nor to limit in any way the powers of the Secretary with
5    reference to examinations and reports.
6        (2) The Secretary may furnish confidential supervisory
7    information to the United States, any agency thereof that
8    has insured a bank's deposits in whole or in part, or any
9    official or examiner thereof duly accredited for the
10    purpose. Nothing contained in this Act shall be construed
11    to limit the obligation relative to examinations and
12    reports of any State bank, deposits in which are to any
13    extent insured by the United States, any agency thereof,
14    nor to limit in any way the powers of the Secretary with
15    reference to examination and reports of such bank.
16        (2.5) The Secretary may furnish confidential
17    supervisory information to a Federal Home Loan Bank in
18    connection with any bank that is a member of the Federal
19    Home Loan Bank or in connection with any application by the
20    bank before the Federal Home Loan Bank. The confidential
21    supervisory information shall remain the property of the
22    Secretary and may not be further disclosed without the
23    Secretary's permission.
24        (3) The Secretary may furnish confidential supervisory
25    information to the appropriate law enforcement authorities
26    when the Secretary reasonably believes a bank, which the

 

 

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1    Secretary has caused to be examined, has been a victim of a
2    crime.
3        (4) The Secretary may furnish confidential supervisory
4    information relating to a bank or other financial
5    institution, which the Secretary has caused to be examined,
6    to be sent to the administrator of the Revised Uniform
7    Unclaimed Property Act.
8        (5) The Secretary may furnish confidential supervisory
9    information relating to a bank or other financial
10    institution, which the Secretary has caused to be examined,
11    relating to its performance of obligations under the
12    Illinois Income Tax Act and the Illinois Estate and
13    Generation-Skipping Transfer Tax Act to the Illinois
14    Department of Revenue.
15        (6) The Secretary may furnish confidential supervisory
16    information relating to a bank or other financial
17    institution, which the Secretary has caused to be examined,
18    under the federal Currency and Foreign Transactions
19    Reporting Act, Title 31, United States Code, Section 1051
20    et seq.
21        (6.5) The Secretary may furnish confidential
22    supervisory information to any other agency or entity that
23    the Secretary determines to have a legitimate regulatory
24    interest.
25        (7) The Secretary may furnish confidential supervisory
26    information under any other statute that by its terms or by

 

 

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1    regulations promulgated thereunder requires the disclosure
2    of financial records other than by subpoena, summons,
3    warrant, or court order.
4        (8) At the request of the affected bank or other
5    financial institution, the Secretary may furnish
6    confidential supervisory information relating to a bank or
7    other financial institution, which the Secretary has
8    caused to be examined, in connection with the obtaining of
9    insurance coverage or the pursuit of an insurance claim for
10    or on behalf of the bank or other financial institution;
11    provided that, when possible, the Secretary shall disclose
12    only relevant information while maintaining the
13    confidentiality of financial records not relevant to such
14    insurance coverage or claim and, when appropriate, may
15    delete identifying data relating to any person or
16    individual.
17        (9) The Secretary may furnish a copy of a report of any
18    examination performed by the Secretary of the condition and
19    affairs of any electronic data processing entity to the
20    banks serviced by the electronic data processing entity.
21        (10) In addition to the foregoing circumstances, the
22    Secretary may, but is not required to, furnish confidential
23    supervisory information under the same circumstances
24    authorized for the bank or financial institution pursuant
25    to subsection (b) of this Section, except that the
26    Secretary shall provide confidential supervisory

 

 

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1    information under circumstances described in paragraph (3)
2    of subsection (b) of this Section only upon the request of
3    the bank or other financial institution.
4    (b) A bank or other financial institution or its officers,
5agents, and employees may disclose confidential supervisory
6information only under the following circumstances:
7        (1) to the board of directors of the bank or other
8    financial institution, as well as the president,
9    vice-president, cashier, and other officers of the bank or
10    other financial institution to whom the board of directors
11    may delegate duties with respect to compliance with
12    recommendations for action, and to the board of directors
13    of a bank holding company that owns at least 80% of the
14    outstanding stock of the bank or other financial
15    institution;
16        (2) to attorneys for the bank or other financial
17    institution and to a certified public accountant engaged by
18    the State bank or financial institution to perform an
19    independent audit provided that the attorney or certified
20    public accountant shall not permit the confidential
21    supervisory information to be further disseminated;
22        (3) to any person who seeks to acquire a controlling
23    interest in, or who seeks to merge with, the bank or
24    financial institution, provided that all attorneys,
25    certified public accountants, officers, agents, or
26    employees of that person shall agree to be bound to respect

 

 

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1    the confidentiality of the confidential supervisory
2    information and to not further disseminate the information
3    therein contained;
4        (3.5) to a Federal Home Loan Bank of which it is a
5    member;
6        (4) (blank); or
7        (4.5) to any attorney, accountant, consultant, or
8    other professional as needed to comply with any enforcement
9    action issued by the Secretary; or
10        (5) to the bank's insurance company in relation to an
11    insurance claim or the effort by the bank to procure
12    insurance coverage, provided that, when possible, the bank
13    shall disclose only information that is relevant to the
14    insurance claim or that is necessary to procure the
15    insurance coverage, while maintaining the confidentiality
16    of financial information pertaining to customers. When
17    appropriate, the bank may delete identifying data relating
18    to any person.
19    The disclosure of confidential supervisory information by
20a bank or other financial institution pursuant to this
21subsection (b) and the disclosure of information to the
22Secretary or other regulatory agency in connection with any
23examination, visitation, or investigation shall not constitute
24a waiver of any legal privilege otherwise available to the bank
25or other financial institution with respect to the information.
26    (c) (1) Notwithstanding any other provision of this Act or

 

 

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1any other law, confidential supervisory information shall be
2the property of the Secretary and shall be privileged from
3disclosure to any person except as provided in this Section. No
4person in possession of confidential supervisory information
5may disclose that information for any reason or under any
6circumstances not specified in this Section without the prior
7authorization of the Secretary. Any person upon whom a demand
8for production of confidential supervisory information is
9made, whether by subpoena, order, or other judicial or
10administrative process, must withhold production of the
11confidential supervisory information and must notify the
12Secretary of the demand, at which time the Secretary is
13authorized to intervene for the purpose of enforcing the
14limitations of this Section or seeking the withdrawal or
15termination of the attempt to compel production of the
16confidential supervisory information.
17    (2) Any request for discovery or disclosure of confidential
18supervisory information, whether by subpoena, order, or other
19judicial or administrative process, shall be made to the
20Secretary, and the Secretary shall determine within 15 days
21whether to disclose the information pursuant to procedures and
22standards that the Secretary shall establish by rule. If the
23Secretary determines that such information will not be
24disclosed, the Secretary's decision shall be subject to
25judicial review under the provisions of the Administrative
26Review Law, and venue shall be in either Sangamon County or

 

 

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1Cook County.
2    (3) Any court order that compels disclosure of confidential
3supervisory information may be immediately appealed by the
4Secretary, and the order shall be automatically stayed pending
5the outcome of the appeal.
6    (d) If any officer, agent, attorney, or employee of a bank
7or financial institution knowingly and willfully furnishes
8confidential supervisory information in violation of this
9Section, the Secretary may impose a civil monetary penalty up
10to $1,000 for the violation against the officer, agent,
11attorney, or employee.
12(Source: P.A. 100-22, eff 1-1-18; 100-64, eff. 8-11-17; revised
1310-5-17.)
 
14    Section 10. The Savings Bank Act is amended by changing
15Sections 8015 and 9012 as follows:
 
16    (205 ILCS 205/8015)  (from Ch. 17, par. 7308-15)
17    Sec. 8015. Change in control.
18    (a) No person, whether acting directly or indirectly or
19through or in concert with one or more persons, may acquire
20control of a savings bank operating under this Act without
21prior approval of the Secretary. The provisions of this Section
22do not apply to an established holding company acquiring
23control of a state savings bank if the transaction is subject
24to approval under the Federal Deposit Insurance Act, the

 

 

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1federal Home Owners' Loan Act, or Section 3 of the federal Bank
2Holding Company Act.
3    (b) Any person seeking to acquire control of a savings bank
4or subsidiary of a savings bank operating under this Act shall
5submit an application in the form required by the Secretary.
6    (c) The Secretary may examine the books and records of the
7applicant and related persons, investigate any matter relevant
8to the application, and require the applicant to submit
9additional information and documents.
10    (d) The Secretary shall not approve an acquisition of
11control unless the application and related examination and
12investigation permit the Secretary to find positively on all of
13the following matters:
14        (1) The applicant has filed a complete application, has
15    cooperated with all examinations and investigations of the
16    Secretary, and has submitted all information and documents
17    requested by the Secretary.
18        (2) The applicant and proposed management have the
19    necessary competence, experience, integrity, and financial
20    ability.
21        (3) The business plans of the applicant are consistent
22    with the safe and sound operation of the savings bank and
23    the purposes of this Act.
24        (4) The acquisition of control would not be inequitable
25    to members, borrowers or creditors of the savings bank.
26        (5) The applicant and proposed management have

 

 

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1    complied with subsection (f) of this Section.
2        (6) The future prospects of the institution will not
3    jeopardize the financial stability of the savings bank or
4    prejudice the interests of the members of the savings bank.
5    (e) Shares of stock or mutual members shares acquired in
6violation of subsection (a) of this Section shall not be voted
7and shall not be counted in calculating the total number of
8shares eligible to vote. In addition to any other action
9authorized under this Act, the Secretary may require divestment
10of shares of stock acquired in violation of this Section and
11may require retirement of the withdrawal value of accounts
12providing mutual member voting shares acquired in violation of
13this Section, in which case the savings bank shall pay accrued
14interest on the retired withdrawal value and shall not assess
15any penalty for early withdrawal.
16    (f) An individual, whether acting directly or indirectly or
17through or in concert with one or more persons, shall file
18written notice to the Secretary within 10 days of the
19occurrence of either of the following events:
20        (1) becoming, directly or indirectly, the beneficial
21    owner of more than five percent of the voting shares of a
22    savings bank or savings bank holding company; or
23        (2) obtaining, directly or indirectly, the power to
24    cast more than five percent of the member votes of a
25    savings bank or savings bank holding company.
26    The requirements of this subsection (f) are separate and in

 

 

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1addition to the requirements of subsection (a) of this Section.
2    (g) The Secretary may promulgate rules to implement this
3provision, including definitions, form and content of
4application or notice, procedures, exemptions, and
5requirements for approval.
6    (h) As used in this Section, a person is acting in concert
7if that person is acting in concert under federal laws or
8regulations.
9(Source: P.A. 96-585, eff. 8-18-09; 97-492, eff. 1-1-12.)
 
10    (205 ILCS 205/9012)  (from Ch. 17, par. 7309-12)
11    Sec. 9012. Disclosure of reports of examinations and
12confidential supervisory information; limitations.
13    (a) Any report of examination, visitation, or
14investigation prepared by the Secretary under this Act, any
15report of examination, visitation, or investigation prepared
16by the state regulatory authority of another state that
17examines a branch of an Illinois State savings bank in that
18state, any document or record prepared or obtained in
19connection with or relating to any examination, visitation, or
20investigation, and any record prepared or obtained by the
21Secretary to the extent that the record summarizes or contains
22information derived from any report, document, or record
23described in this subsection shall be deemed confidential
24supervisory information. "Confidential supervisory
25information" shall not include any information or record

 

 

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1routinely prepared by a savings bank and maintained in the
2ordinary course of business or any information or record that
3is required to be made publicly available pursuant to State or
4federal law or rule. Confidential supervisory information
5shall be the property of the Secretary and shall only be
6disclosed under the circumstances and for the purposes set
7forth in this Section.
8    The Secretary may disclose confidential supervisory
9information only under the following circumstances:
10        (1) The Secretary may furnish confidential supervisory
11    information to federal and state depository institution
12    regulators, or any official or examiner thereof duly
13    accredited for the purpose. Nothing contained in this Act
14    shall be construed to limit the obligation of any savings
15    bank to comply with the requirements relative to
16    examinations and reports nor to limit in any way the powers
17    of the Secretary relative to examinations and reports.
18        (2) The Secretary may furnish confidential supervisory
19    information to the United States or any agency thereof that
20    to any extent has insured a savings bank's deposits, or any
21    official or examiner thereof duly accredited for the
22    purpose. Nothing contained in this Act shall be construed
23    to limit the obligation relative to examinations and
24    reports of any savings bank in which deposits are to any
25    extent insured by the United States or any agency thereof
26    nor to limit in any way the powers of the Secretary with

 

 

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1    reference to examination and reports of the savings bank.
2        (2.5) The Secretary may furnish confidential
3    supervisory information to a Federal Home Loan Bank in
4    connection with any savings bank that is a member of the
5    Federal Home Loan Bank or in connection with any
6    application by the savings bank before the Federal Home
7    Loan Bank. The confidential supervisory information shall
8    remain the property of the Secretary and may not be further
9    disclosed without the Secretary's permission.
10        (3) The Secretary may furnish confidential supervisory
11    information to the appropriate law enforcement authorities
12    when the Secretary reasonably believes a savings bank,
13    which the Secretary has caused to be examined, has been a
14    victim of a crime.
15        (4) The Secretary may furnish confidential supervisory
16    information related to a savings bank, which the Secretary
17    has caused to be examined, to the administrator of the
18    Revised Uniform Unclaimed Property Act.
19        (5) The Secretary may furnish confidential supervisory
20    information relating to a savings bank, which the Secretary
21    has caused to be examined, relating to its performance of
22    obligations under the Illinois Income Tax Act and the
23    Illinois Estate and Generation-Skipping Transfer Tax Act
24    to the Illinois Department of Revenue.
25        (6) The Secretary may furnish confidential supervisory
26    information relating to a savings bank, which the Secretary

 

 

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1    has caused to be examined, under the federal Currency and
2    Foreign Transactions Reporting Act, 31 United States Code,
3    Section 1051 et seq.
4        (7) The Secretary may furnish confidential supervisory
5    information to any other agency or entity that the
6    Secretary determines to have a legitimate regulatory
7    interest.
8        (8) The Secretary may furnish confidential supervisory
9    information as otherwise permitted or required by this Act
10    and may furnish confidential supervisory information under
11    any other statute that by its terms or by regulations
12    promulgated thereunder requires the disclosure of
13    financial records other than by subpoena, summons,
14    warrant, or court order.
15        (9) At the request of the affected savings bank, the
16    Secretary may furnish confidential supervisory information
17    relating to the savings bank, which the Secretary has
18    caused to be examined, in connection with the obtaining of
19    insurance coverage or the pursuit of an insurance claim for
20    or on behalf of the savings bank; provided that, when
21    possible, the Secretary shall disclose only relevant
22    information while maintaining the confidentiality of
23    financial records not relevant to such insurance coverage
24    or claim and, when appropriate, may delete identifying data
25    relating to any person.
26        (10) The Secretary may furnish a copy of a report of

 

 

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1    any examination performed by the Secretary of the condition
2    and affairs of any electronic data processing entity to the
3    savings banks serviced by the electronic data processing
4    entity.
5        (11) In addition to the foregoing circumstances, the
6    Secretary may, but is not required to, furnish confidential
7    supervisory information under the same circumstances
8    authorized for the savings bank pursuant to subsection (b)
9    of this Section, except that the Secretary shall provide
10    confidential supervisory information under circumstances
11    described in paragraph (3) of subsection (b) of this
12    Section only upon the request of the savings bank.
13    (b) A savings bank or its officers, agents, and employees
14may disclose confidential supervisory information only under
15the following circumstances:
16        (1) to the board of directors of the savings bank, as
17    well as the president, vice-president, cashier, and other
18    officers of the savings bank to whom the board of directors
19    may delegate duties with respect to compliance with
20    recommendations for action, and to the board of directors
21    of a savings bank holding company that owns at least 80% of
22    the outstanding stock of the savings bank or other
23    financial institution.
24        (2) to attorneys for the savings bank and to a
25    certified public accountant engaged by the savings bank to
26    perform an independent audit; provided that the attorney or

 

 

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1    certified public accountant shall not permit the
2    confidential supervisory information to be further
3    disseminated.
4        (3) to any person who seeks to acquire a controlling
5    interest in, or who seeks to merge with, the savings bank;
6    provided that the person shall agree to be bound to respect
7    the confidentiality of the confidential supervisory
8    information and to not further disseminate the information
9    other than to attorneys, certified public accountants,
10    officers, agents, or employees of that person who likewise
11    shall agree to be bound to respect the confidentiality of
12    the confidential supervisory information and to not
13    further disseminate the information.
14        (4) to the savings bank's insurance company, if the
15    supervisory information contains information that is
16    otherwise unavailable and is strictly necessary to
17    obtaining insurance coverage or pursuing an insurance
18    claim for or on behalf of the savings bank; provided that,
19    when possible, the savings bank shall disclose only
20    information that is relevant to obtaining insurance
21    coverage or pursuing an insurance claim, while maintaining
22    the confidentiality of financial information pertaining to
23    customers; and provided further that, when appropriate,
24    the savings bank may delete identifying data relating to
25    any person.
26        (5) to a Federal Home Loan Bank of which it is a

 

 

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1    member.
2        (6) to any attorney, account, consultant, or other
3    professional as needed to comply with an enforcement action
4    issued by the Secretary.
5    The disclosure of confidential supervisory information by
6a savings bank pursuant to this subsection (b) and the
7disclosure of information to the Secretary or other regulatory
8agency in connection with any examination, visitation, or
9investigation shall not constitute a waiver of any legal
10privilege otherwise available to the savings bank with respect
11to the information.
12    (c) (1) Notwithstanding any other provision of this Act or
13any other law, confidential supervisory information shall be
14the property of the Secretary and shall be privileged from
15disclosure to any person except as provided in this Section. No
16person in possession of confidential supervisory information
17may disclose that information for any reason or under any
18circumstances not specified in this Section without the prior
19authorization of the Secretary. Any person upon whom a demand
20for production of confidential supervisory information is
21made, whether by subpoena, order, or other judicial or
22administrative process, must withhold production of the
23confidential supervisory information and must notify the
24Secretary of the demand, at which time the Secretary is
25authorized to intervene for the purpose of enforcing the
26limitations of this Section or seeking the withdrawal or

 

 

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1termination of the attempt to compel production of the
2confidential supervisory information.
3    (2) Any request for discovery or disclosure of confidential
4supervisory information, whether by subpoena, order, or other
5judicial or administrative process, shall be made to the
6Secretary, and the Secretary shall determine within 15 days
7whether to disclose the information pursuant to procedures and
8standards that the Secretary shall establish by rule. If the
9Secretary determines that such information will not be
10disclosed, the Secretary's decision shall be subject to
11judicial review under the provisions of the Administrative
12Review Law, and venue shall be in either Sangamon County or
13Cook County.
14    (3) Any court order that compels disclosure of confidential
15supervisory information may be immediately appealed by the
16Secretary, and the order shall be automatically stayed pending
17the outcome of the appeal.
18    (d) If any officer, agent, attorney, or employee of a
19savings bank knowingly and willfully furnishes confidential
20supervisory information in violation of this Section, the
21Secretary may impose a civil monetary penalty up to $1,000 for
22the violation against the officer, agent, attorney, or
23employee.
24    (e)   Subject to the limits of this Section, the Secretary
25also may promulgate regulations to set procedures and standards
26for disclosure of the following items:

 

 

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1        (1) All fixed orders and opinions made in cases of
2    appeals of the Secretary's actions.
3        (2) Statements of policy and interpretations adopted
4    by the Secretary's office, but not otherwise made public.
5        (3) Nonconfidential portions of application files,
6    including applications for new charters. The Secretary
7    shall specify by rule as to what part of the files are
8    confidential.
9        (4) Quarterly reports of income, deposits, and
10    financial condition.
11(Source: P.A. 100-22, eff. 1-1-18; 100-64, eff. 8-11-17;
12revised 10-5-17.)
 
13    Section 99. Effective date. This Act takes effect upon
14becoming law.