SB2710sam001 93RD GENERAL ASSEMBLY

Sen. Kimberly A. Lightford

Filed: 2/27/2004

09300SB2710sam001 LRB093 19061 SAS 48165 a

AMENDMENT TO SENATE BILL 2710

AMENDMENT NO. ______. Amend Senate Bill 2710 by replacing everything after the enacting clause with the following:

"Section 5. The Savings Bank Act is amended by changing Section 1006 and by adding Sections 1006.05 and 1007.130 as follows:

(205 ILCS 205/1006) (from Ch. 17, par. 7301-6)

Sec. 1006. Parity.

(a) Subject to the regulation of the Commissioner and in addition to the powers granted by this Act, each savings bank operating under this Act shall possess those powers granted by regulation promulgated under the Federal Deposit Insurance Act for state savings banks.

(b) A savings bank may establish branches or offices at which savings or investments are regularly received or loans approved as follows:

(1) to the extent branch powers and offices are granted to State banks under the Illinois Banking Act;

(2) within the geographic area defined in Article 2 of this Act and subject to the provisions of Article 2 of this Act;

(3) within the same geographic areas or states as those states from which a holding company is permitted to acquire an Illinois savings bank or an Illinois savings bank holding company;

(4) to the same extent that holding companies and savings and loan associations headquartered outside the State of Illinois are allowed to operate in Illinois by virtue of Articles 1A and 2B of the Illinois Savings and Loan Act of 1985;

(5) as the result of mergers, consolidations, or bulk sales of facilities in the case of relocations; and .

(6) to the extent the Commissioner deems states to be reciprocal under the provisions of Section 1006.05 of this Act.

(c) The Commissioner may adopt regulations that provide for the establishment of branches as defined by the Commissioner.

(d) Notwithstanding any other provision of this Act, a savings bank that purchases or assumes all or any part of the assets or liabilities of a bank, savings bank, or savings and loan association or merges or consolidates with a bank, savings bank, or savings and loan association may retain and maintain the main premises or branches of the former bank, savings bank, or savings and loan association as branches of the purchasing, merging, or consolidating savings bank, provided it assumes the deposit liabilities of the bank, savings bank, or savings and loan association maintained at the main premises or branches.

(e) A savings bank has any power reasonably incident, convenient, or useful to the accomplishment of the powers conferred upon the savings bank by this Act.

(Source: P.A. 89-74, eff. 6-30-95; 90-301, eff. 8-1-97; 90-665, eff. 7-30-98.)

(205 ILCS 205/1006.05 new)

Sec. 1006.05. Out-of-state savings banks establishing branches.

(a) No out-of-state savings bank whose main banking premises is located in a state other than Illinois shall establish a branch in this State, other than a branch authorized pursuant to any other provision of this Act, unless:

(1) the laws of the state in which such out-of-state savings bank has its main banking premises permit the out-of-state savings bank to establish a branch in this State;

(2) the out-of-state savings bank has its main banking premises in a state that permits an Illinois State savings bank to establish a branch in that state pursuant to terms and conditions that are deemed to be reciprocal with the provisions of this Act;

(3) the out-of-state savings bank obtains a certificate of authority from the Commissioner as provided in this Section.

(b) Before the out-of-state savings bank intends to do business at such branch in this State, the out-of-state savings bank must file an application for a certificate of authority on forms specified by the Commissioner which shall request, to the extent applicable, the same information required in an application by a foreign corporation pursuant to Section 13.15 of the Business Corporation Act of 1983. The Commissioner may require additional information or documents from the applicant as part of the application. The Commissioner shall also request confirmation, from the out-of-state savings bank's chartering authority, of the authority of the out-of-state savings bank to establish the branch and of any necessary regulatory approval. After receiving a completed application and the relevant confirmations or approval from the state, the Commissioner shall issue a certificate of authority authorizing the out-of-state savings bank to establish the branch consistent with the provisions of this Section.

(c) The determination of whether the laws of the state in which the out-of-state savings bank has its main banking premises are reciprocal with the provisions of this Act shall be made in writing by the Commissioner. The Commissioner shall not make a finding of reciprocity unless the Commissioner determines that the laws of the other state permit an Illinois State savings bank to establish a branch in the other state under terms and conditions that are substantially similar to the provisions of this Section. The Commissioner shall consider, at a minimum, whether the laws of the other state discriminate in any way against an Illinois State savings bank and whether the laws of the other state impose administrative or regulatory burdens that are substantially more restrictive than those imposed by this Act on an out-of-state savings bank seeking to establish a branch in this State.

(d) After the out-of-state savings bank lawfully establishes a branch in this State pursuant to the provisions of this Section, the out-of-state savings bank may establish and maintain additional branches in this State to the same extent as an Illinois State savings bank. An out-of-state savings bank shall provide written notice to the Commissioner of its intent to establish an additional branch or branches in this State within 30 days after receiving approval from the appropriate regulatory agencies to establish the branch or branches. The form of the notice shall be specified by the Commissioner and may include any of the information required for a similar notice by an Illinois State savings bank. Receipt by the Commissioner of notice of the out-of-state savings bank's intent to establish the additional branch or branches in this State from the out-of-state savings bank's chartering authority shall satisfy the notice requirements of this subsection (d).

(e) A branch of an out-of-state savings bank may not conduct any activity that is not authorized for an Illinois State savings bank.

(205 ILCS 205/1007.130 new)

Sec. 1007.130. "Out-of-state savings bank" means a savings bank chartered under the laws of a state other than Illinois, a territory of the United States, or the District of Columbia.".