HB6747 Engrossed

LRB093 18473 SAS 44187 b






1
    AN ACT concerning financial regulation.

 
2
    Be it enacted by the People of the State of Illinois,
 
3
represented in the General Assembly:


 
4
    Section 5. The Savings Bank Act is amended  by changing 
5
Section 11003  as follows:
 



6
    (205 ILCS 205/11003)  (from Ch. 17, par. 7311-3)



7
    Sec. 11003. Removal and prohibition authority. 

8
    (a) In addition to other provisions of this Act concerning

9
officers and directors, the Commissioner may remove or suspend  
10
from any
savings bank operating under this Act any officer, 
11
director,
employee, or agent of a savings bank, and the 
12
Commissioner may prohibit
participation in the affairs of any 
13
savings bank by any current, former, or
prospective officer, 
14
director, employee, or agent of a savings bank, if he
finds 
15
that:


16
        (1) The person or persons have directly or indirectly

17
violated any law, regulation, or order including orders,

18
conditions, and agreements between the savings bank and the

19
Commissioner or between the savings bank and its federal 
20
regulators.


21
        (2) The person or persons have breached their fiduciary 
22
or
professional responsibilities to the savings bank.


23
        (3) The person or persons have similarly behaved

24
towards any other insured depository institution or 
25
otherwise
regulated entity or that the person or persons 
26
are the subject
of any final order issued by the federal 
27
insurer, the Office
of the Comptroller of the Currency, the 
28
Board of Governors of the Federal Reserve Board,
a Federal 
29
Reserve Bank, the U.S. Office of Thrift Supervision, the 
30
National Credit Union Administration,
a state financial 
31
institutions regulator, the Securities and
Exchange 
32
Commission, other federal or state financial institution 
 


 






HB6747 Engrossed
- 2 -
LRB093 18473 SAS 44187 b




1
regulators, or by a state or federal court of law.

2
    (b) The  Commissioner may serve upon a party a written

3
notice of the Commissioner's intention to remove or suspend the

4
party from office in the savings bank or to prohibit any

5
participation in any manner by the party in the
affairs of any 
6
savings bank, if the Commissioner
finds because of
a violation 
7
of subsection (a) that:


8
        (1) Any savings bank, other insured depository 
9
institution,
or other regulated entity has or probably will 
10
suffer financial
loss or other damage.


11
        (2) The interests of savings bank's depositors or other 
12
insured
depository institution's depositors have been or 
13
could be
prejudiced.


14
        (3) The party has received financial gain or other 
15
benefit
by reason of the violation.


16
        (4) The violation or breach involves personal 
17
dishonesty on
the part of the party or demonstrates willful 
18
or continuing
disregard by the party for the safety and 
19
soundness of the
savings bank or other insured depository 
20
institution.

21
(Source: P.A. 92-483, eff. 8-23-01.)