Sen. Terry Link
Filed: 2/26/2004
 
 

 




 

 		












09300SB2634sam001

LRB093 18195 SAS 47807 a






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AMENDMENT TO SENATE BILL 2634 




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    AMENDMENT NO. ______. Amend Senate Bill 2634 by replacing 
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everything after the enacting clause with the following:

 
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    "Section 5. The Corporate Fiduciary Act is amended  by 
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adding Section 9-7 as follows:
 
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    (205 ILCS 620/9-7 new)

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    Sec. 9-7. Investments and participation by affiliates.
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    (a) Any bank or trust company acting in its fiduciary 
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capacity may purchase services or products, including, but not 
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limited to, life insurance, equity derivatives, or securities 
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underwritten or otherwise distributed by an affiliate of such 
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bank or trust company or its affiliate directly from such 
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affiliate or from a syndicate or selling group which includes 
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the bank, trust company, or its affiliate, provided that the 
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purchase is otherwise prudent and not prohibited by the 
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instrument governing the fiduciary relationship. The 
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provisions of this Section shall apply to such purchases of 
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services or products made at the time of the initial offering 
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thereof or at any time thereafter.
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    (b) The compensation for the services or products may be in 
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addition to the compensation to which the bank, trust company, 
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or its affiliate is otherwise entitled as fiduciary.
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    (c) Any bank or trust company acting in its fiduciary 
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capacity may effect such purchases of services or products with 
 


 






09300SB2634sam001
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LRB093 18195 SAS 47807 a




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or through its affiliate, provided that the fees paid to its 
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affiliate and the terms and conditions of such purchases are 
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reasonable and the transaction is not prohibited by the 
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instrument governing the fiduciary relationship.
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    (d) A bank or a trust company shall disclose at least 
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annually any purchase authorized
by this Section that was made 
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by the bank or trust company during the reporting period. The 
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disclosure shall be given, in writing or electronically, to all 
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persons entitled to receive statements of account activity, and 
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shall include any capacities
in which the bank or trust company 
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or an affiliate acts for the issuer of the securities or the 
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provider of the products or services and the fact that the 
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bank,
trust company or an affiliate may have an interest in the 
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products or services.
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    (e) Notwithstanding the applicable provisions of Illinois 
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law, including Section 2 of this Act, the provisions of this 
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Section apply to any bank or trust company doing banking or 
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trust business in this State, including, without limiting the 
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generality of the foregoing, any national bank, national trust 
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company, or any of
its affiliates even if its principal place 
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of business is not in this State.

 

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    Section 99. Effective date. This Act takes effect January 
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1, 2005.".