Rep. Lou Lang
Filed: 4/7/2014
| |||||||
| |||||||
| |||||||
1 | AMENDMENT TO HOUSE BILL 3961
| ||||||
2 | AMENDMENT NO. ______. Amend House Bill 3961 by replacing | ||||||
3 | everything after the enacting clause with the following:
| ||||||
4 | "Section 5. The Illinois Banking Act is amended by changing | ||||||
5 | Section 48 as follows:
| ||||||
6 | (205 ILCS 5/48)
| ||||||
7 | Sec. 48. Secretary's powers; duties. The Secretary shall | ||||||
8 | have the
powers and authority, and is charged with the duties | ||||||
9 | and responsibilities
designated in this Act, and a State bank | ||||||
10 | shall not be subject to any
other visitorial power other than | ||||||
11 | as authorized by this Act, except those
vested in the courts, | ||||||
12 | or upon prior consultation with the Secretary, a
foreign bank | ||||||
13 | regulator with an appropriate supervisory interest in the | ||||||
14 | parent
or affiliate of a state bank. In the performance of the | ||||||
15 | Secretary's
duties:
| ||||||
16 | (1) The Commissioner shall call for statements from all |
| |||||||
| |||||||
1 | State banks
as provided in Section 47 at least one time during | ||||||
2 | each calendar quarter.
| ||||||
3 | (2) (a) The Commissioner, as often as the Commissioner | ||||||
4 | shall deem
necessary or
proper, and no less frequently than 18 | ||||||
5 | months following the preceding
examination, shall appoint a | ||||||
6 | suitable person or
persons to make an examination of the | ||||||
7 | affairs of every State bank,
except that for every eligible | ||||||
8 | State bank, as defined by regulation, the
Commissioner in lieu | ||||||
9 | of the examination may accept on an alternating basis the
| ||||||
10 | examination made by the eligible State bank's appropriate | ||||||
11 | federal banking
agency pursuant to Section 111 of the Federal | ||||||
12 | Deposit Insurance Corporation
Improvement Act of 1991, | ||||||
13 | provided the appropriate federal banking agency has
made such | ||||||
14 | an examination. A person so appointed shall not be a | ||||||
15 | stockholder or
officer or employee of
any bank which that | ||||||
16 | person may be directed to examine, and shall have
powers to | ||||||
17 | make a thorough examination into all the affairs of the bank | ||||||
18 | and
in so doing to examine any of the officers or agents or | ||||||
19 | employees thereof
on oath and shall make a full and detailed | ||||||
20 | report of the condition of the
bank to the Commissioner. In | ||||||
21 | making the examination the examiners shall
include an | ||||||
22 | examination of the affairs of all the affiliates of the bank, | ||||||
23 | as
defined in subsection (b) of Section 35.2 of this Act, or | ||||||
24 | subsidiaries of the
bank as shall be
necessary to disclose | ||||||
25 | fully the conditions of the subsidiaries or
affiliates, the | ||||||
26 | relations
between the bank and the subsidiaries or affiliates |
| |||||||
| |||||||
1 | and the effect of those
relations upon
the affairs of the bank, | ||||||
2 | and in connection therewith shall have power to
examine any of | ||||||
3 | the officers, directors, agents, or employees of the
| ||||||
4 | subsidiaries or affiliates
on oath. After May 31, 1997, the | ||||||
5 | Commissioner may enter into cooperative
agreements
with state | ||||||
6 | regulatory authorities of other states to provide for | ||||||
7 | examination of
State bank branches in those states, and the | ||||||
8 | Commissioner may accept reports
of examinations of State bank | ||||||
9 | branches from those state regulatory authorities.
These | ||||||
10 | cooperative agreements may set forth the manner in which the | ||||||
11 | other state
regulatory authorities may be compensated for | ||||||
12 | examinations prepared for and
submitted to the Commissioner.
| ||||||
13 | (b) After May 31, 1997, the Commissioner is authorized to | ||||||
14 | examine, as often
as the Commissioner shall deem necessary or | ||||||
15 | proper, branches of out-of-state
banks. The Commissioner may | ||||||
16 | establish and may assess fees to be paid to the
Commissioner | ||||||
17 | for examinations under this subsection (b). The fees shall be
| ||||||
18 | borne by the out-of-state bank, unless the fees are borne by | ||||||
19 | the state
regulatory authority that chartered the out-of-state | ||||||
20 | bank, as determined by a
cooperative agreement between the | ||||||
21 | Commissioner and the state regulatory
authority that chartered | ||||||
22 | the out-of-state bank.
| ||||||
23 | (2.1) Pursuant to paragraph (a) of subsection (6) of this | ||||||
24 | Section, the Secretary shall adopt rules that ensure | ||||||
25 | consistency and due process in the examination process. The | ||||||
26 | Secretary may also establish guidelines that (i) define the |
| |||||||
| |||||||
1 | scope of the examination process and (ii) clarify examination | ||||||
2 | items to be resolved. The rules, formal guidance, interpretive | ||||||
3 | letters, or opinions furnished to State banks by the Secretary | ||||||
4 | may be relied upon by the State banks. | ||||||
5 | (2.5) Whenever any State bank, any subsidiary or affiliate | ||||||
6 | of a State
bank, or after May 31, 1997, any branch of an | ||||||
7 | out-of-state bank causes to
be performed, by contract or | ||||||
8 | otherwise, any bank services
for itself, whether on or off its | ||||||
9 | premises:
| ||||||
10 | (a) that performance shall be subject to examination by | ||||||
11 | the Commissioner
to the same extent as if services were | ||||||
12 | being performed by the bank or, after
May 31, 1997, branch | ||||||
13 | of the out-of-state bank itself
on its own premises; and
| ||||||
14 | (b) the bank or, after May 31, 1997, branch of the | ||||||
15 | out-of-state bank
shall notify the Commissioner of the | ||||||
16 | existence of a service
relationship. The notification | ||||||
17 | shall be submitted with the first statement
of condition | ||||||
18 | (as required by Section 47 of this Act) due after the | ||||||
19 | making
of the service contract or the performance of the | ||||||
20 | service, whichever occurs
first. The Commissioner shall be | ||||||
21 | notified of each subsequent contract in
the same manner.
| ||||||
22 | For purposes of this subsection (2.5), the term "bank | ||||||
23 | services" means
services such as sorting and posting of checks | ||||||
24 | and deposits, computation
and posting of interest and other | ||||||
25 | credits and charges, preparation and
mailing of checks, | ||||||
26 | statements, notices, and similar items, or any other
clerical, |
| |||||||
| |||||||
1 | bookkeeping, accounting, statistical, or similar functions
| ||||||
2 | performed for a State bank, including but not limited to | ||||||
3 | electronic data
processing related to those bank services.
| ||||||
4 | (3) The expense of administering this Act, including the | ||||||
5 | expense of
the examinations of State banks as provided in this | ||||||
6 | Act, shall to the extent
of the amounts resulting from the fees | ||||||
7 | provided for in paragraphs (a),
(a-2), and (b) of this | ||||||
8 | subsection (3) be assessed against and borne by the
State | ||||||
9 | banks:
| ||||||
10 | (a) Each bank shall pay to the Secretary a Call Report | ||||||
11 | Fee which
shall be paid in quarterly installments equal
to | ||||||
12 | one-fourth of the sum of the annual fixed fee of $800, plus | ||||||
13 | a variable
fee based on the assets shown on the quarterly | ||||||
14 | statement of condition
delivered to the Secretary in | ||||||
15 | accordance with Section 47 for the
preceding quarter | ||||||
16 | according to the following schedule: 16¢ per $1,000 of
the | ||||||
17 | first $5,000,000 of total assets, 15¢ per $1,000 of the | ||||||
18 | next
$20,000,000 of total assets, 13¢ per $1,000 of the | ||||||
19 | next $75,000,000 of
total assets, 9¢ per $1,000 of the next | ||||||
20 | $400,000,000 of total assets, 7¢
per $1,000 of the next | ||||||
21 | $500,000,000 of total assets, and 5¢ per $1,000 of
all | ||||||
22 | assets in excess of $1,000,000,000, of the State bank. The | ||||||
23 | Call Report
Fee shall be calculated by the Secretary and | ||||||
24 | billed to the banks for
remittance at the time of the | ||||||
25 | quarterly statements of condition
provided for in Section | ||||||
26 | 47. The Secretary may require payment of the fees
provided |
| |||||||
| |||||||
1 | in this Section by an electronic transfer of funds or an | ||||||
2 | automatic
debit of an account of each of the State banks. | ||||||
3 | In case more than one
examination of any
bank is deemed by | ||||||
4 | the Secretary to be necessary in any examination
frequency | ||||||
5 | cycle specified in subsection 2(a) of this Section,
and is | ||||||
6 | performed at his direction, the Secretary may
assess a | ||||||
7 | reasonable additional fee to recover the cost of the | ||||||
8 | additional
examination; provided, however, that an | ||||||
9 | examination conducted at the request
of the State Treasurer | ||||||
10 | pursuant to the Uniform Disposition of Unclaimed
Property | ||||||
11 | Act shall not be deemed to be an additional examination | ||||||
12 | under this
Section.
In lieu
of the method and amounts set | ||||||
13 | forth in this paragraph (a) for the calculation
of the Call | ||||||
14 | Report Fee, the Secretary may specify by
rule that the Call | ||||||
15 | Report Fees provided by this Section may be assessed
| ||||||
16 | semiannually or some other period and may provide in the | ||||||
17 | rule the formula to
be
used for calculating and assessing | ||||||
18 | the periodic Call Report Fees to be paid by
State
banks.
| ||||||
19 | (a-1) If in the opinion of the Commissioner an | ||||||
20 | emergency exists or
appears likely, the Commissioner may | ||||||
21 | assign an examiner or examiners to
monitor the affairs of a | ||||||
22 | State bank with whatever frequency he deems
appropriate, | ||||||
23 | including but not limited to a daily basis. The reasonable
| ||||||
24 | and necessary expenses of the Commissioner during the | ||||||
25 | period of the monitoring
shall be borne by the subject | ||||||
26 | bank. The Commissioner shall furnish the
State bank a |
| |||||||
| |||||||
1 | statement of time and expenses if requested to do so within | ||||||
2 | 30
days of the conclusion of the monitoring period.
| ||||||
3 | (a-2) On and after January 1, 1990, the reasonable and | ||||||
4 | necessary
expenses of the Commissioner during examination | ||||||
5 | of the performance of
electronic data processing services | ||||||
6 | under subsection (2.5) shall be
borne by the banks for | ||||||
7 | which the services are provided. An amount, based
upon a | ||||||
8 | fee structure prescribed by the Commissioner, shall be paid | ||||||
9 | by the
banks or, after May 31, 1997, branches of | ||||||
10 | out-of-state banks receiving the
electronic data | ||||||
11 | processing services along with the
Call Report Fee assessed | ||||||
12 | under paragraph (a) of this
subsection (3).
| ||||||
13 | (a-3) After May 31, 1997, the reasonable and necessary | ||||||
14 | expenses of the
Commissioner during examination of the | ||||||
15 | performance of electronic data
processing services under | ||||||
16 | subsection (2.5) at or on behalf of branches of
| ||||||
17 | out-of-state banks shall be borne by the out-of-state | ||||||
18 | banks, unless those
expenses are borne by the state | ||||||
19 | regulatory authorities that chartered the
out-of-state | ||||||
20 | banks, as determined by cooperative agreements between the
| ||||||
21 | Commissioner and the state regulatory authorities that | ||||||
22 | chartered the
out-of-state banks.
| ||||||
23 | (b) "Fiscal year" for purposes of this Section 48 is | ||||||
24 | defined as a
period beginning July 1 of any year and ending | ||||||
25 | June 30 of the next year.
The Commissioner shall receive | ||||||
26 | for each fiscal year, commencing with the
fiscal year |
| |||||||
| |||||||
1 | ending June 30, 1987, a contingent fee equal to the lesser | ||||||
2 | of
the aggregate of the fees paid by all State banks under | ||||||
3 | paragraph (a) of
subsection (3) for that year, or the | ||||||
4 | amount, if any, whereby the aggregate
of the administration | ||||||
5 | expenses, as defined in paragraph (c), for that
fiscal year | ||||||
6 | exceeds the sum of the aggregate of the fees payable by all
| ||||||
7 | State banks for that year under paragraph (a) of subsection | ||||||
8 | (3),
plus any amounts transferred into the Bank and Trust | ||||||
9 | Company Fund from the
State Pensions Fund for that year,
| ||||||
10 | plus all
other amounts collected by the Commissioner for | ||||||
11 | that year under any
other provision of this Act, plus the | ||||||
12 | aggregate of all fees
collected for that year by the | ||||||
13 | Commissioner under the Corporate Fiduciary
Act, excluding | ||||||
14 | the receivership fees provided for in Section 5-10 of the
| ||||||
15 | Corporate Fiduciary Act, and the Foreign Banking Office | ||||||
16 | Act.
The aggregate amount of the contingent
fee thus | ||||||
17 | arrived at for any fiscal year shall be apportioned | ||||||
18 | amongst,
assessed upon, and paid by the State banks and | ||||||
19 | foreign banking corporations,
respectively, in the same | ||||||
20 | proportion
that the fee of each under paragraph (a) of | ||||||
21 | subsection (3), respectively,
for that year bears to the | ||||||
22 | aggregate for that year of the fees collected
under | ||||||
23 | paragraph (a) of subsection (3). The aggregate amount of | ||||||
24 | the
contingent fee, and the portion thereof to be assessed | ||||||
25 | upon each State
bank and foreign banking corporation,
| ||||||
26 | respectively, shall be determined by the Commissioner and |
| |||||||
| |||||||
1 | shall be paid by
each, respectively, within 120 days of the | ||||||
2 | close of the period for which
the contingent fee is | ||||||
3 | computed and is payable, and the Commissioner shall
give 20 | ||||||
4 | days advance notice of the amount of the contingent fee | ||||||
5 | payable by
the State bank and of the date fixed by the | ||||||
6 | Commissioner for payment of
the fee.
| ||||||
7 | (c) The "administration expenses" for any fiscal year | ||||||
8 | shall mean the
ordinary and contingent expenses for that | ||||||
9 | year incident to making the
examinations provided for by, | ||||||
10 | and for otherwise administering, this Act,
the Corporate | ||||||
11 | Fiduciary Act, excluding the expenses paid from the
| ||||||
12 | Corporate Fiduciary Receivership account in the Bank and | ||||||
13 | Trust Company
Fund, the Foreign Banking Office Act,
the | ||||||
14 | Electronic Fund Transfer Act,
and the Illinois Bank | ||||||
15 | Examiners'
Education Foundation Act, including all | ||||||
16 | salaries and other
compensation paid for personal services | ||||||
17 | rendered for the State by
officers or employees of the | ||||||
18 | State, including the Commissioner and the
Deputy | ||||||
19 | Commissioners, communication equipment and services, | ||||||
20 | office furnishings, surety bond
premiums, and travel | ||||||
21 | expenses of those officers and employees, employees,
| ||||||
22 | expenditures or charges for the acquisition, enlargement | ||||||
23 | or improvement
of, or for the use of, any office space, | ||||||
24 | building, or structure, or
expenditures for the | ||||||
25 | maintenance thereof or for furnishing heat, light,
or power | ||||||
26 | with respect thereto, all to the extent that those |
| |||||||
| |||||||
1 | expenditures
are directly incidental to such examinations | ||||||
2 | or administration.
The Commissioner shall not be required | ||||||
3 | by paragraphs (c) or (d-1) of this
subsection (3) to | ||||||
4 | maintain in any fiscal year's budget appropriated reserves
| ||||||
5 | for accrued vacation and accrued sick leave that is | ||||||
6 | required to be paid to
employees of the Commissioner upon | ||||||
7 | termination of their service with the
Commissioner in an | ||||||
8 | amount that is more than is reasonably anticipated to be
| ||||||
9 | necessary for any anticipated turnover in employees, | ||||||
10 | whether due to normal
attrition or due to layoffs, | ||||||
11 | terminations, or resignations.
| ||||||
12 | (d) The aggregate of all fees collected by the | ||||||
13 | Secretary under
this Act, the Corporate Fiduciary Act,
or | ||||||
14 | the Foreign Banking Office Act on
and after July 1, 1979, | ||||||
15 | shall be paid promptly after receipt of the same,
| ||||||
16 | accompanied by a detailed statement thereof, into the State | ||||||
17 | treasury and
shall be set apart in a special fund to be | ||||||
18 | known as the "Bank and Trust
Company Fund", except as | ||||||
19 | provided in paragraph (c) of subsection (11) of
this | ||||||
20 | Section. All earnings received from investments of funds in | ||||||
21 | the Bank
and
Trust Company Fund shall be deposited in the | ||||||
22 | Bank and Trust Company Fund
and may be used for the same | ||||||
23 | purposes as fees deposited in that Fund. The
amount from | ||||||
24 | time to time deposited into the Bank and
Trust Company Fund | ||||||
25 | shall be used: (i) to offset the ordinary administrative
| ||||||
26 | expenses of the Secretary as defined in
this Section or |
| |||||||
| |||||||
1 | (ii) as a credit against fees under paragraph (d-1) of this | ||||||
2 | subsection (3). Nothing in this amendatory Act of 1979 | ||||||
3 | shall prevent
continuing the practice of paying expenses | ||||||
4 | involving salaries, retirement,
social security, and | ||||||
5 | State-paid insurance premiums of State officers by
| ||||||
6 | appropriations from the General Revenue Fund. However, the | ||||||
7 | General Revenue
Fund shall be reimbursed for those payments | ||||||
8 | made on and after July 1, 1979,
by an annual transfer of | ||||||
9 | funds from the Bank and Trust Company Fund. Moneys in the | ||||||
10 | Bank and Trust Company Fund may be transferred to the | ||||||
11 | Professions Indirect Cost Fund, as authorized under | ||||||
12 | Section 2105-300 of the Department of Professional | ||||||
13 | Regulation Law of the Civil Administrative Code of | ||||||
14 | Illinois.
| ||||||
15 | Notwithstanding provisions in the State Finance Act, | ||||||
16 | as now or hereafter amended, or any other law to the | ||||||
17 | contrary, the sum of $18,788,847 shall be transferred from | ||||||
18 | the Bank and Trust Company Fund to the Financial | ||||||
19 | Institutions Settlement of 2008 Fund on the effective date | ||||||
20 | of this amendatory Act of the 95th General Assembly, or as | ||||||
21 | soon thereafter as practical. | ||||||
22 | Notwithstanding provisions in the State Finance Act, | ||||||
23 | as now or hereafter amended, or any other law to the | ||||||
24 | contrary, the Governor may, during any fiscal year through | ||||||
25 | January 10, 2011, from time to time direct the State | ||||||
26 | Treasurer and Comptroller to transfer a specified sum not |
| |||||||
| |||||||
1 | exceeding 10% of the revenues to be deposited into the Bank | ||||||
2 | and Trust Company Fund during that fiscal year from that | ||||||
3 | Fund to the General Revenue Fund in order to help defray | ||||||
4 | the State's operating costs for the fiscal year. | ||||||
5 | Notwithstanding provisions in the State Finance Act, as now | ||||||
6 | or hereafter amended, or any other law to the contrary, the | ||||||
7 | total sum transferred during any fiscal year through | ||||||
8 | January 10, 2011, from the Bank and Trust Company Fund to | ||||||
9 | the General Revenue Fund pursuant to this provision shall | ||||||
10 | not exceed during any fiscal year 10% of the revenues to be | ||||||
11 | deposited into the Bank and Trust Company Fund during that | ||||||
12 | fiscal year. The State Treasurer and Comptroller shall | ||||||
13 | transfer the amounts designated under this Section as soon | ||||||
14 | as may be practicable after receiving the direction to | ||||||
15 | transfer from the Governor.
| ||||||
16 | (d-1) Adequate funds shall be available in the Bank and | ||||||
17 | Trust
Company Fund to permit the timely payment of | ||||||
18 | administration expenses. In
each fiscal year the total | ||||||
19 | administration expenses shall be deducted from
the total | ||||||
20 | fees collected by the Commissioner and the remainder | ||||||
21 | transferred
into the Cash Flow Reserve Account, unless the | ||||||
22 | balance of the Cash Flow
Reserve Account prior to the | ||||||
23 | transfer equals or exceeds
one-fourth of the total initial | ||||||
24 | appropriations from the Bank and Trust
Company Fund for the | ||||||
25 | subsequent year, in which case the remainder shall be
| ||||||
26 | credited to State banks and foreign banking corporations
|
| |||||||
| |||||||
1 | and applied against their fees for the subsequent
year. The | ||||||
2 | amount credited to each State bank and foreign banking | ||||||
3 | corporation
shall be in the same proportion as the
Call | ||||||
4 | Report Fees paid by each for the year bear to the total | ||||||
5 | Call Report
Fees collected for the year. If, after a | ||||||
6 | transfer to the Cash Flow Reserve
Account is made or if no | ||||||
7 | remainder is available for transfer, the balance
of the | ||||||
8 | Cash Flow Reserve Account is less than one-fourth of the | ||||||
9 | total
initial appropriations for the subsequent year and | ||||||
10 | the amount transferred
is less than 5% of the total Call | ||||||
11 | Report Fees for the year, additional
amounts needed to make | ||||||
12 | the transfer equal to 5% of the total Call Report
Fees for | ||||||
13 | the year shall be apportioned amongst, assessed upon, and
| ||||||
14 | paid by the State banks and foreign banking corporations
in | ||||||
15 | the same proportion that the Call Report Fees of each,
| ||||||
16 | respectively, for the year bear to the total Call Report | ||||||
17 | Fees collected for
the year. The additional amounts | ||||||
18 | assessed shall be transferred into the
Cash Flow Reserve | ||||||
19 | Account. For purposes of this paragraph (d-1), the
| ||||||
20 | calculation of the fees collected by the Commissioner shall | ||||||
21 | exclude the
receivership fees provided for in Section 5-10 | ||||||
22 | of the Corporate Fiduciary Act.
| ||||||
23 | (e) The Commissioner may upon request certify to any | ||||||
24 | public record
in his keeping and shall have authority to | ||||||
25 | levy a reasonable charge for
issuing certifications of any | ||||||
26 | public record in his keeping.
|
| |||||||
| |||||||
1 | (f) In addition to fees authorized elsewhere in this | ||||||
2 | Act, the
Commissioner
may, in connection with a review, | ||||||
3 | approval, or provision of a service, levy a
reasonable | ||||||
4 | charge to recover the cost of the review, approval, or | ||||||
5 | service.
| ||||||
6 | (4) Nothing contained in this Act shall be construed to | ||||||
7 | limit the
obligation relative to examinations and reports of | ||||||
8 | any State bank, deposits
in which are to any extent insured by | ||||||
9 | the United States or any agency
thereof, nor to limit in any | ||||||
10 | way the powers of the Commissioner with
reference to | ||||||
11 | examinations and reports of that bank.
| ||||||
12 | (5) The nature and condition of the assets in or investment | ||||||
13 | of any
bonus, pension, or profit sharing plan for officers or | ||||||
14 | employees of every
State bank or, after May 31, 1997, branch of | ||||||
15 | an out-of-state bank shall be
deemed to be included in the | ||||||
16 | affairs of that State
bank or branch of an out-of-state bank | ||||||
17 | subject to examination by the
Commissioner under the
provisions | ||||||
18 | of subsection (2) of this Section, and if the Commissioner
| ||||||
19 | shall find from an examination that the condition of or | ||||||
20 | operation
of the investments or assets of the plan is unlawful, | ||||||
21 | fraudulent, or
unsafe, or that any trustee has abused his | ||||||
22 | trust, the Commissioner
shall, if the situation so found by the | ||||||
23 | Commissioner shall not be
corrected to his satisfaction within | ||||||
24 | 60 days after the Commissioner has
given notice to the board of | ||||||
25 | directors of the State bank or out-of-state
bank of his
| ||||||
26 | findings, report the facts to the Attorney General who shall |
| |||||||
| |||||||
1 | thereupon
institute proceedings against the State bank or | ||||||
2 | out-of-state bank, the
board of directors
thereof, or the | ||||||
3 | trustees under such plan as the nature of the case may require.
| ||||||
4 | (6) The Commissioner shall have the power:
| ||||||
5 | (a) To promulgate reasonable rules for the purpose of
| ||||||
6 | administering the provisions of this Act.
| ||||||
7 | (a-5) To impose conditions on any approval issued by | ||||||
8 | the Commissioner
if he determines that the conditions are | ||||||
9 | necessary or appropriate. These
conditions shall be | ||||||
10 | imposed in writing and shall continue
in effect for the | ||||||
11 | period prescribed by the Commissioner.
| ||||||
12 | (b) To issue orders
against any person, if the | ||||||
13 | Commissioner has
reasonable cause to believe that an unsafe | ||||||
14 | or unsound banking practice
has occurred, is occurring, or | ||||||
15 | is about to occur, if any person has violated,
is | ||||||
16 | violating, or is about to violate any law, rule, or written
| ||||||
17 | agreement with the Commissioner, or
for the purpose of | ||||||
18 | administering the provisions of
this Act and any rule | ||||||
19 | promulgated in accordance with this Act.
| ||||||
20 | (b-1) To enter into agreements with a bank establishing | ||||||
21 | a program to
correct the condition of the bank or its | ||||||
22 | practices.
| ||||||
23 | (c) To appoint hearing officers to execute any of the | ||||||
24 | powers granted to
the Commissioner under this Section for | ||||||
25 | the purpose of administering this
Act and any rule | ||||||
26 | promulgated in accordance with this Act
and otherwise to |
| |||||||
| |||||||
1 | authorize, in writing, an officer or employee of the Office
| ||||||
2 | of
Banks and Real Estate to exercise his powers under this | ||||||
3 | Act.
| ||||||
4 | (d) To subpoena witnesses, to compel their attendance, | ||||||
5 | to administer
an oath, to examine any person under oath, | ||||||
6 | and to require the production of
any relevant books, | ||||||
7 | papers, accounts, and documents in the course of and
| ||||||
8 | pursuant to any investigation being conducted, or any | ||||||
9 | action being taken,
by the Commissioner in respect of any | ||||||
10 | matter relating to the duties imposed
upon, or the powers | ||||||
11 | vested in, the Commissioner under the provisions of
this | ||||||
12 | Act or any rule promulgated in accordance with this Act.
| ||||||
13 | (e) To conduct hearings.
| ||||||
14 | (7) Whenever, in the opinion of the Secretary, any | ||||||
15 | director,
officer, employee, or agent of a State bank
or any | ||||||
16 | subsidiary or bank holding company of the bank
or, after May | ||||||
17 | 31, 1997, of any
branch of an out-of-state bank
or any | ||||||
18 | subsidiary or bank holding company of the bank
shall have | ||||||
19 | violated any law,
rule, or order relating to that bank
or any | ||||||
20 | subsidiary or bank holding company of the bank, shall have
| ||||||
21 | obstructed or impeded any examination or investigation by the | ||||||
22 | Secretary, shall have engaged in an unsafe or
unsound practice | ||||||
23 | in conducting the business of that bank
or any subsidiary or | ||||||
24 | bank holding company of the bank,
or shall have
violated any | ||||||
25 | law or engaged or participated in any unsafe or unsound | ||||||
26 | practice
in connection with any financial institution or other |
| |||||||
| |||||||
1 | business entity such that
the character and fitness of the | ||||||
2 | director, officer, employee, or agent does not
assure | ||||||
3 | reasonable promise of safe and sound operation of the State | ||||||
4 | bank, the
Secretary
may issue an order of removal.
If, in the | ||||||
5 | opinion of the Secretary, any former director, officer,
| ||||||
6 | employee,
or agent of a State bank
or any subsidiary or bank | ||||||
7 | holding company of the bank, prior to the
termination of his or | ||||||
8 | her service with
that bank
or any subsidiary or bank holding | ||||||
9 | company of the bank, violated any law,
rule, or order relating | ||||||
10 | to that
State bank
or any subsidiary or bank holding company of | ||||||
11 | the bank, obstructed or impeded
any examination or | ||||||
12 | investigation by the Secretary, engaged in an unsafe or unsound | ||||||
13 | practice in conducting the
business of that bank
or any | ||||||
14 | subsidiary or bank holding company of the bank,
or violated any | ||||||
15 | law or engaged or participated in any
unsafe or unsound | ||||||
16 | practice in connection with any financial institution or
other | ||||||
17 | business entity such that the character and fitness of the | ||||||
18 | director,
officer, employee, or agent would not have assured | ||||||
19 | reasonable promise of safe
and sound operation of the State | ||||||
20 | bank, the Secretary may issue an order
prohibiting that person | ||||||
21 | from
further
service with a bank
or any subsidiary or bank | ||||||
22 | holding company of the bank
as a director, officer, employee, | ||||||
23 | or agent. An order
issued pursuant to this subsection shall be | ||||||
24 | served upon the
director,
officer, employee, or agent. A copy | ||||||
25 | of the order shall be sent to each
director of the bank | ||||||
26 | affected by registered mail. A copy of
the order shall also be |
| |||||||
| |||||||
1 | served upon the bank of which he is a director,
officer, | ||||||
2 | employee, or agent, whereupon he shall cease to be a director,
| ||||||
3 | officer, employee, or agent of that bank. The Secretary may
| ||||||
4 | institute a civil action against the director, officer, or | ||||||
5 | agent of the
State bank or, after May 31, 1997, of the branch | ||||||
6 | of the out-of-state bank
against whom any order provided for by | ||||||
7 | this subsection (7) of
this Section 48 has been issued, and | ||||||
8 | against the State bank or, after May 31,
1997, out-of-state | ||||||
9 | bank, to enforce
compliance with or to enjoin any violation of | ||||||
10 | the terms of the order.
Any person who has been the subject of | ||||||
11 | an order of removal
or
an order of prohibition issued by the | ||||||
12 | Secretary under
this subsection or Section 5-6 of the Corporate | ||||||
13 | Fiduciary Act may not
thereafter serve as director, officer, | ||||||
14 | employee, or agent of any State bank
or of any branch of any | ||||||
15 | out-of-state bank,
or of any corporate fiduciary, as defined in | ||||||
16 | Section 1-5.05 of the
Corporate
Fiduciary Act, or of any other | ||||||
17 | entity that is subject to licensure or
regulation by the | ||||||
18 | Division of Banking unless
the Secretary has granted prior | ||||||
19 | approval in writing.
| ||||||
20 | For purposes of this paragraph (7), "bank holding company" | ||||||
21 | has the
meaning prescribed in Section 2 of the Illinois Bank | ||||||
22 | Holding Company Act of
1957.
| ||||||
23 | (8) The Commissioner may impose civil penalties of up to | ||||||
24 | $100,000 against
any person for each violation of any provision | ||||||
25 | of this Act, any rule
promulgated in accordance with this Act, | ||||||
26 | any order of the Commissioner, or
any other action which in the |
| |||||||
| |||||||
1 | Commissioner's discretion is an unsafe or
unsound banking | ||||||
2 | practice.
| ||||||
3 | (9) The Commissioner may impose civil penalties of up to | ||||||
4 | $100
against any person for the first failure to comply with | ||||||
5 | reporting
requirements set forth in the report of examination | ||||||
6 | of the bank and up to
$200 for the second and subsequent | ||||||
7 | failures to comply with those reporting
requirements.
| ||||||
8 | (10) All final administrative decisions of the | ||||||
9 | Commissioner hereunder
shall be subject to judicial review | ||||||
10 | pursuant to the provisions of the
Administrative Review Law. | ||||||
11 | For matters involving administrative review,
venue shall be in | ||||||
12 | either Sangamon County or Cook County.
| ||||||
13 | (11) The endowment fund for the Illinois Bank Examiners' | ||||||
14 | Education
Foundation shall be administered as follows:
| ||||||
15 | (a) (Blank).
| ||||||
16 | (b) The Foundation is empowered to receive voluntary | ||||||
17 | contributions,
gifts, grants, bequests, and donations on | ||||||
18 | behalf of the Illinois Bank
Examiners' Education | ||||||
19 | Foundation from national banks and other persons for
the | ||||||
20 | purpose of funding the endowment of the Illinois Bank | ||||||
21 | Examiners'
Education Foundation.
| ||||||
22 | (c) The aggregate of all special educational fees | ||||||
23 | collected by the
Secretary and property received by the | ||||||
24 | Secretary on behalf of the
Illinois Bank Examiners' | ||||||
25 | Education Foundation under this subsection
(11) on or after | ||||||
26 | June 30, 1986, shall be either (i) promptly paid after
|
| |||||||
| |||||||
1 | receipt of the same, accompanied by a detailed statement | ||||||
2 | thereof, into the
State Treasury and shall be set apart in | ||||||
3 | a special fund to be known as "The
Illinois Bank Examiners' | ||||||
4 | Education Fund" to be invested by either the
Treasurer of | ||||||
5 | the State of Illinois in the Public Treasurers' Investment
| ||||||
6 | Pool or in any other investment he is authorized to make or | ||||||
7 | by the Illinois
State Board of Investment as the State | ||||||
8 | Banking Board of Illinois may direct or (ii) deposited into | ||||||
9 | an account
maintained in a commercial bank or corporate | ||||||
10 | fiduciary in the name of the
Illinois Bank Examiners' | ||||||
11 | Education Foundation pursuant to the order and
direction of | ||||||
12 | the Board of Trustees of the Illinois Bank Examiners' | ||||||
13 | Education
Foundation.
| ||||||
14 | (12) (Blank).
| ||||||
15 | (13) The Secretary may borrow funds from the General | ||||||
16 | Revenue Fund on behalf of the Bank and Trust Company Fund if | ||||||
17 | the Director of Banking certifies to the Governor that there is | ||||||
18 | an economic emergency affecting banking that requires a | ||||||
19 | borrowing to provide additional funds to the Bank and Trust | ||||||
20 | Company Fund. The borrowed funds shall be paid back within 3 | ||||||
21 | years and shall not exceed the total funding appropriated to | ||||||
22 | the Agency in the previous year. | ||||||
23 | (Source: P.A. 96-1163, eff. 1-1-11; 96-1365, eff. 7-28-10; | ||||||
24 | 97-333, eff. 8-12-11.)
| ||||||
25 | Section 10. The Savings Bank Act is amended by changing |
| |||||||
| |||||||
1 | Section 9004 as follows:
| ||||||
2 | (205 ILCS 205/9004) (from Ch. 17, par. 7309-4)
| ||||||
3 | Sec. 9004. Examination.
| ||||||
4 | (a) At least once every 18 months or more often if it is
| ||||||
5 | deemed necessary or expedient, the Secretary shall examine the
| ||||||
6 | books, records, operations, and affairs of each savings bank
| ||||||
7 | operating under this Act. In the course of the examination, the | ||||||
8 | Secretary may
also examine in the same manner all entities,
| ||||||
9 | companies, and individuals which or whom the Secretary | ||||||
10 | determines
may have a relationship with the savings bank or any | ||||||
11 | subsidiary or
entity affiliated with it, if the relationship | ||||||
12 | may adversely affect
the affairs, activities, and safety and | ||||||
13 | soundness of the savings
bank, including: (i) companies | ||||||
14 | controlled by the savings bank;
(ii) entities, including | ||||||
15 | companies controlled by the company,
individual, or | ||||||
16 | individuals that control the savings bank;
and (iii) the | ||||||
17 | company or other entity which controls or owns the
savings | ||||||
18 | bank. Notwithstanding any other provision of this Act, every | ||||||
19 | savings bank, as defined by rule, or, if not defined, to the | ||||||
20 | same extent as would be permitted in the case of a State bank, | ||||||
21 | the Secretary, in lieu of the examination, may accept on an | ||||||
22 | alternating basis the examination made by the eligible savings | ||||||
23 | bank's appropriate federal banking agency pursuant to Section | ||||||
24 | 111 of the Federal Deposit Insurance Corporation Improvement | ||||||
25 | Act of 1991, provided the appropriate federal banking agency |
| |||||||
| |||||||
1 | has made an examination.
| ||||||
2 | (b) The Secretary shall examine to determine:
| ||||||
3 | (1) Quality of financial condition, including safety | ||||||
4 | and
soundness and investment and loan quality.
| ||||||
5 | (2) Compliance with this Act and other applicable
| ||||||
6 | statutes and regulations.
| ||||||
7 | (3) Quality of management policies.
| ||||||
8 | (4) Overall safety and soundness of the savings bank,
| ||||||
9 | its parent, subsidiaries, and affiliates.
| ||||||
10 | (5) Remedial actions required to correct and to restore
| ||||||
11 | compliance with applicable statutes, regulations, and | ||||||
12 | proper
business policies.
| ||||||
13 | (c) The Secretary may promulgate regulations to
implement | ||||||
14 | and administer this Section.
| ||||||
15 | (d) If a savings bank, its holding company, or any of its
| ||||||
16 | corporate subsidiaries has not been audited at least once in | ||||||
17 | the
12 months prior to the Secretary's examination, the | ||||||
18 | Secretary may cause an audit of the savings bank's books and | ||||||
19 | records to be
made by an independent licensed public | ||||||
20 | accountant. The cost of the audit
shall be paid for by the | ||||||
21 | entity being audited.
| ||||||
22 | (e) The Secretary or his or her examiners or other
formally | ||||||
23 | designated agents are authorized to administer oaths and
to | ||||||
24 | examine and to take and preserve testimony under oath as to
| ||||||
25 | anything in the affairs or ownership of any savings bank or
| ||||||
26 | institution or affiliate thereof.
|
| |||||||
| |||||||
1 | (f) Pursuant to subsection (c) of this Section, the | ||||||
2 | Secretary shall adopt rules that ensure consistency and due | ||||||
3 | process in the examination process. The Secretary may also | ||||||
4 | establish guidelines that (i) define the scope of the | ||||||
5 | examination process and (ii) clarify examination items to be | ||||||
6 | resolved. The rules, formal guidance, interpretive letters, or | ||||||
7 | opinions furnished to savings banks by the Secretary may be | ||||||
8 | relied upon by the savings banks. | ||||||
9 | (Source: P.A. 96-1365, eff. 7-28-10; 97-492, eff. 1-1-12.)".
|