Financial Institutions Committee
Adopted in House Comm. on Apr 28, 2010
 
 

 




 

 		












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AMENDMENT TO SENATE BILL 2996




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    AMENDMENT NO. ______. Amend Senate Bill 2996 as follows:
 
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on page 5, immediately below line 21, by inserting the 
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following:
 
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    "Section 7. The Illinois Bank Examiners' Education 
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Foundation Act is amended by changing Sections 3.01, 4, and  5 
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as follows:
 



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    (20 ILCS 3210/3.01)  (from Ch. 17, par. 403.1)



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    Sec. 3.01. 
"Board" means the State Banking Board of 
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Illinois as established under the provisions of the Illinois 
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Banking Act Board of Trustees of the Illinois Bank
Examiners' 
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Education Foundation created by this Act.

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(Source: P.A. 84-1127.)

 



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    (20 ILCS 3210/4)  (from Ch. 17, par. 404)



 


 






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    Sec. 4. 
The Foundation shall establish an endowment fund 
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with the
monies in the Illinois Bank Examiners' Education Fund.  
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The income from such
Fund shall be used to pay for continuing 
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education and professional
training activity for the 
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examination employees of the Commissioner's
office authorized 
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by the Board of the Illinois Bank Examiners' Education
Program 
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and to  pay for reasonable expenses incurred by the Board in the

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course of administering its official duties under this Act.  The 
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continuing education and professional
training activity to be 
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funded by the Foundation shall be a supplement to
the education 
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and training expenditures regularly being made from the Bank
& 
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Trust Company Fund for such purposes.

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(Source: P.A. 84-1127.)

 



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    (20 ILCS 3210/5)  (from Ch. 17, par. 405)



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    Sec. 5. The Foundation shall be governed by the a Board of 
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Trustees.  The
Board shall consist of the following trustees:  
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the Commissioner, who shall
be its chairman; one Class A member 
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and three Class B members from the
State Banking Board of 
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Illinois, appointed by the Governor.

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    For carrying out their official duties under this Act, the 
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Board members The terms of the trustees of the Foundation who 
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are members of the State
Banking Board of Illinois are to be 
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coextensive with their terms on the
State Banking Board of 
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Illinois.  An appointment to fill a vacancy shall be
for the 
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unexpired term of the trustee whose term is being filled.  
 


 






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Trustees
shall receive no compensation for service on the 
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Board, but shall be
reimbursed for all reasonable and necessary 
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expenditures incurred in the
performance of said their official 
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duties. 

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(Source: P.A. 84-1127.)"; and

 
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by replacing line 3 on page 11 through line 3 on page 15 with 
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the following:


 



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    "(205 ILCS 5/32)  (from Ch. 17, par. 339)



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    Sec. 32. Basic loaning limits. The liabilities outstanding 
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at one time
to a state bank of a
person for money borrowed, 
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including the liabilities of a partnership
or joint venture in 
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the liabilities of the several members thereof, shall
not 
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exceed 25% of the amount of the unimpaired capital and

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unimpaired surplus
of the bank. 

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    The liabilities to any state bank of a person may exceed 
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25% of
the unimpaired capital and unimpaired surplus of the 
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bank,
provided
that (i) the excess amount from time to time 
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outstanding is fully secured
by readily marketable collateral 
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having a market value, as determined by
reliable and 
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continuously available quotations, at least equal to the
excess 
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amount outstanding; and (ii) the total liabilities shall
not 
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exceed 30% of the unimpaired capital and unimpaired surplus of 
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the bank.

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    The following shall not be considered as money borrowed 
 


 






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within the meaning
of this Section:


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        (1) The purchase or discount of bills of exchange drawn 
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    in good
faith
against actually existing values.


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        (2) The purchase or discount of commercial or business 
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    paper actually
owned by the person negotiating the same.


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        (3) The purchase of or loaning money in exchange for 
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    evidences of
indebtedness which shall be secured by 
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    mortgage or trust deed upon
productive real estate the 
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    value of which, as ascertained by the oath of
2 qualified 
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    appraisers, neither of whom shall be an officer,
director, 
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    or employee of the bank or of any subsidiary or affiliate 
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    of the
bank, is double the amount of the principal
debt 
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    secured at the time of the original purchase of evidence of 
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    indebtedness
or loan
of money and which is still double the 
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    amount of the principal debt secured
at the time of any 
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    renewal of the indebtedness or loan, and which
mortgage
or 
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    trust deed is shown, either by a guaranty policy of a title 
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    guaranty
company approved by the Commissioner or by a 
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    registrar's certificate of
title in any county having 
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    adopted the provisions of the Registered
Titles (Torrens) 
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    Act, or by the opinion of an attorney-at-law,
to be a first

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    lien upon the real estate therein described, and real 
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    estate shall not be
deemed to be encumbered within the 
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    meaning of this subsection (3) by reason
of the existence 
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    of instruments reserving rights-of-way, sewer rights and

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    rights in wells, building restrictions or other 
 


 






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    restrictive covenants, nor
by reason of the fact it is 
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    subject to lease under which rents or profits
are reserved 
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    by the owners.


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        (4) The purchase of marketable investment securities.


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        (5) The liability to a state bank of a person who is an 
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    accommodation
party to, or guarantor of payment for, any 
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    evidence of indebtedness of
another person who obtains a 
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    loan from or discounts paper with or sells
paper to the 
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    state bank; but the total liability to a
state bank of a 
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    person as an accommodation party or guarantor of payment in

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    respect of such evidences of indebtedness shall not exceed 
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    25% of
the amount of
the
unimpaired capital and unimpaired 
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    surplus
of the bank; provided however that the liability of 
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    an accommodation party
to paper excepted under subsection 2 
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    of this Section shall not be included in
the
computation of 
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    this limitation.


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        (6) The liability to a state bank of a person, who as a 
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    guarantor,
guarantees collection of the obligation or 
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    indebtedness of another person.

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    The total liabilities of any one person, for money 
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borrowed, or
otherwise, shall not exceed 25% of the deposits of 
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the bank, and
those total liabilities shall at no time exceed 
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50% of the amount
of the
unimpaired capital and unimpaired 
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surplus of the bank.
Absent an actual unremedied breach, the 
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obligation or responsibility for
breach of warranties or 
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representations, express or implied, of a person
transferring 
 


 






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negotiable or non-negotiable paper to a bank without recourse

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and without guaranty of payment, shall not be included in 
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determining the
amount of liabilities of the person to the bank 
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for borrowed money
or otherwise; and in the event of and to the 
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extent of an unremedied breach,
the amount remaining unpaid for 
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principal and interest on the paper in
respect of which the 
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unremedied breach exists shall thereafter for
the purpose of 
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determining whether subsequent transactions giving rise to

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additional liability of the person to the state bank for 
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borrowed money or
otherwise are within the limitations of 
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Sections 32 through 34 of this
Act, be included in computing 
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the amount of liabilities of the
person for borrowed money or 
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otherwise.

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    The liability of a person to a state bank on account of

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acceptances
made or issued by the state bank on behalf of the 
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person shall be
included in the computation of the total 
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liabilities of the person for money
borrowed except to the 
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extent the acceptances grow out of
transactions of the 
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character described in subsection (6) of Section 34 of this
Act 
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and are otherwise within the limitations of that subsection;

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provided nevertheless
that any such excepted acceptances 
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acquired by the state bank which
accepted the same shall be 
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included in the computation of the liabilities
of the person to 
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the state bank for money borrowed.

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    The Secretary may adopt rules to address the funding by 
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banks of any loan commitment, when such funding would involve 
 


 






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additional extensions of credit to be made after the unimpaired 
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capital and unimpaired surplus of the bank have decreased and 
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the Secretary determines that such decrease in unimpaired 
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capital and unimpaired surplus would cause the additional 
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extensions of credit to result in an unsafe and unsound 
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condition. 
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(Source: P.A. 92-336, eff. 8-10-01; 92-573, eff. 6-26-02.)"; 
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and

 
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on page 33, by replacing lines 11 and 12 with the following:
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"this Act, any order of the Commissioner, or any other action"; 
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and


 
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on page 47, line 25, by replacing "and 10-1" with "10-1, and 
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11-1"; and
 
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on page 81, immediately below line 18, by inserting the 
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following:
 



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    "(205 ILCS 105/11-1)  (from Ch. 17, par. 3311-1)



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    Sec. 11-1. Offenses and penalties. Any person who violates 
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the
provisions of Sections 3-9, 3-10, 5-11 or 5-12 (b) of this 
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Act is guilty of
a Business Offense.

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    The Commissioner, in addition to any other powers granted 
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in this Act, shall have the power and authority to impose civil 
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penalties of up to $100,000 against any person for each 
 


 






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violation of any provision of this Act, any rule promulgated in 
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accordance with this Act, any order of the Commissioner, or any 
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other action that in the Commissioner's discretion is an unsafe 
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or unsound banking practice. 
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(Source: P.A. 86-137.)"; and

 
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on page 81, line 20, by replacing "and 9004," with "9004, and 
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11006,"; and
 
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on page 82, line 3, by replacing "of Banks and Real Estate" 
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with "of Banks and Real Estate"; and


 
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on page 97, line 2, by replacing "the hearing" with "a 
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hearing"; and


 
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on page 109, line 24, by replacing "the savings" with "such 
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savings"; and
 
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on page 113, immediately below line 8, by inserting the 
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following:
 



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    "(205 ILCS 205/11006)  (from Ch. 17, par. 7311-6)



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    Sec. 11006. Civil penalties. The Commissioner, in addition 
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to any
other powers granted in this Act, shall have the power 
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and authority to:


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        (1) Impose civil penalties of up to $100,000 $10,000 
 


 






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    against any person for
each violation of any provision of 
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    this Act, any rule promulgated in
accordance with this Act, 
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    any order of the Commissioner, or any other
action that in 
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    the Commissioner's discretion, is an unsafe or unsound

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    banking practice.


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        (2) Impose civil penalties of up to $100 against any 
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    person for the
first failure to comply with reporting 
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    requirements set forth in the report
of examination of the 
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    bank and up to $200 for the second and subsequent
failures 
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    to comply with those reporting requirements.

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(Source: P.A. 86-1213.)"; and

 
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on page 114, immediately below line 2, by inserting the 
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following:
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        "(2.5) To order restitution to consumers suffering 
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    damages resulting from violations of this Act, rules 
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    promulgated in accordance with this Act, or other laws or 
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    regulations related to the operation of a pawnshop."; and


 
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on page 116, by replacing lines 20 and 21 with the following:
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    "officer, director, employee, or agent of the pawnshop who 
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    engages in or has engaged in unlawful activities that 
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    relate to the operation of a pawnshop."; and


 
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on page 116, line 24, by replacing "establish" with 
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"established"; and


 
 


 






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by replacing line 13 on page 120 through line 4 on page 122 
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with the following:
 
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    "(205 ILCS 510/5.5 new)
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    Sec. 5.5. Replacement of articles or property; insurance. 
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In the event that any articles or property pledged are
lost or 
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rendered inoperable the pawnbroker shall replace the
articles 
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or property with identical articles or property,
except that if 
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the pawnbroker cannot reasonably obtain
identical articles or 
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property, the pawnbroker shall replace
the articles or property 
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with like articles or property.
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    No pawnbroker shall conduct business in this State, unless 
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the
pawnbroker maintains insurance coverage covering all 
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hazards equal to at least 2
times the aggregate value of the 
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outstanding loans for
items held in pawn. Such insurance shall 
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be obtained from an insurance company authorized to do business 
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in Illinois
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    The pawnbroker shall file a copy of proof of insurance

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coverage with the Secretary. A pawnbroker or an insurance 
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company shall not cancel the
insurance coverage except upon 
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notice to the
Secretary by certified mail, return receipt 
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requested. The cancellation is not effective prior to 30 days 
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after the
Secretary receives the notice.".