HB3543 EngrossedLRB099 10088 MGM 30311 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Banking Act is amended by changing
5Sections 48, 48.05, and 78 as follows:
 
6    (205 ILCS 5/48)
7    Sec. 48. Secretary's powers; duties. The Secretary shall
8have the powers and authority, and is charged with the duties
9and responsibilities designated in this Act, and a State bank
10shall not be subject to any other visitorial power other than
11as authorized by this Act, except those vested in the courts,
12or upon prior consultation with the Secretary, a foreign bank
13regulator with an appropriate supervisory interest in the
14parent or affiliate of a state bank. In the performance of the
15Secretary's duties:
16        (1) The Commissioner shall call for statements from all
17    State banks as provided in Section 47 at least one time
18    during each calendar quarter.
19        (2) (a) The Commissioner, as often as the Commissioner
20    shall deem necessary or proper, and no less frequently than
21    18 months following the preceding examination, shall
22    appoint a suitable person or persons to make an examination
23    of the affairs of every State bank, except that for every

 

 

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1    eligible State bank, as defined by regulation, the
2    Commissioner in lieu of the examination may accept on an
3    alternating basis the examination made by the eligible
4    State bank's appropriate federal banking agency pursuant
5    to Section 111 of the Federal Deposit Insurance Corporation
6    Improvement Act of 1991, provided the appropriate federal
7    banking agency has made such an examination. A person so
8    appointed shall not be a stockholder or officer or employee
9    of any bank which that person may be directed to examine,
10    and shall have powers to make a thorough examination into
11    all the affairs of the bank and in so doing to examine any
12    of the officers or agents or employees thereof on oath and
13    shall make a full and detailed report of the condition of
14    the bank to the Commissioner. In making the examination the
15    examiners shall include an examination of the affairs of
16    all the affiliates of the bank, as defined in subsection
17    (b) of Section 35.2 of this Act, or subsidiaries of the
18    bank as shall be necessary to disclose fully the conditions
19    of the subsidiaries or affiliates, the relations between
20    the bank and the subsidiaries or affiliates and the effect
21    of those relations upon the affairs of the bank, and in
22    connection therewith shall have power to examine any of the
23    officers, directors, agents, or employees of the
24    subsidiaries or affiliates on oath. After May 31, 1997, the
25    Commissioner may enter into cooperative agreements with
26    state regulatory authorities of other states to provide for

 

 

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1    examination of State bank branches in those states, and the
2    Commissioner may accept reports of examinations of State
3    bank branches from those state regulatory authorities.
4    These cooperative agreements may set forth the manner in
5    which the other state regulatory authorities may be
6    compensated for examinations prepared for and submitted to
7    the Commissioner.
8        (b) After May 31, 1997, the Commissioner is authorized
9    to examine, as often as the Commissioner shall deem
10    necessary or proper, branches of out-of-state banks. The
11    Commissioner may establish and may assess fees to be paid
12    to the Commissioner for examinations under this subsection
13    (b). The fees shall be borne by the out-of-state bank,
14    unless the fees are borne by the state regulatory authority
15    that chartered the out-of-state bank, as determined by a
16    cooperative agreement between the Commissioner and the
17    state regulatory authority that chartered the out-of-state
18    bank.
19        (2.1) Pursuant to paragraph (a) of subsection (6) of
20    this Section, the Secretary shall adopt rules that ensure
21    consistency and due process in the examination process. The
22    Secretary may also establish guidelines that (i) define the
23    scope of the examination process and (ii) clarify
24    examination items to be resolved. The rules, formal
25    guidance, interpretive letters, or opinions furnished to
26    State banks by the Secretary may be relied upon by the

 

 

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1    State banks.
2        (2.5) Whenever any State bank, any subsidiary or
3    affiliate of a State bank, or after May 31, 1997, any
4    branch of an out-of-state bank causes to be performed, by
5    contract or otherwise, any bank services for itself,
6    whether on or off its premises:
7            (a) that performance shall be subject to
8        examination by the Commissioner to the same extent as
9        if services were being performed by the bank or, after
10        May 31, 1997, branch of the out-of-state bank itself on
11        its own premises; and
12            (b) the bank or, after May 31, 1997, branch of the
13        out-of-state bank shall notify the Commissioner of the
14        existence of a service relationship. The notification
15        shall be submitted with the first statement of
16        condition (as required by Section 47 of this Act) due
17        after the making of the service contract or the
18        performance of the service, whichever occurs first.
19        The Commissioner shall be notified of each subsequent
20        contract in the same manner.
21        For purposes of this subsection (2.5), the term "bank
22    services" means services such as sorting and posting of
23    checks and deposits, computation and posting of interest
24    and other credits and charges, preparation and mailing of
25    checks, statements, notices, and similar items, or any
26    other clerical, bookkeeping, accounting, statistical, or

 

 

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1    similar functions performed for a State bank, including but
2    not limited to electronic data processing related to those
3    bank services.
4        (3) The expense of administering this Act, including
5    the expense of the examinations of State banks as provided
6    in this Act, shall to the extent of the amounts resulting
7    from the fees provided for in paragraphs (a), (a-2), and
8    (b) of this subsection (3) be assessed against and borne by
9    the State banks:
10            (a) Each bank shall pay to the Secretary a Call
11        Report Fee which shall be paid in quarterly
12        installments equal to one-fourth of the sum of the
13        annual fixed fee of $800, plus a variable fee based on
14        the assets shown on the quarterly statement of
15        condition delivered to the Secretary in accordance
16        with Section 47 for the preceding quarter according to
17        the following schedule: 16¢ per $1,000 of the first
18        $5,000,000 of total assets, 15¢ per $1,000 of the next
19        $20,000,000 of total assets, 13¢ per $1,000 of the next
20        $75,000,000 of total assets, 9¢ per $1,000 of the next
21        $400,000,000 of total assets, 7¢ per $1,000 of the next
22        $500,000,000 of total assets, and 5¢ per $1,000 of all
23        assets in excess of $1,000,000,000, of the State bank.
24        The Call Report Fee shall be calculated by the
25        Secretary and billed to the banks for remittance at the
26        time of the quarterly statements of condition provided

 

 

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1        for in Section 47. The Secretary may require payment of
2        the fees provided in this Section by an electronic
3        transfer of funds or an automatic debit of an account
4        of each of the State banks. In case more than one
5        examination of any bank is deemed by the Secretary to
6        be necessary in any examination frequency cycle
7        specified in subsection 2(a) of this Section, and is
8        performed at his direction, the Secretary may assess a
9        reasonable additional fee to recover the cost of the
10        additional examination; provided, however, that an
11        examination conducted at the request of the State
12        Treasurer pursuant to the Uniform Disposition of
13        Unclaimed Property Act shall not be deemed to be an
14        additional examination under this Section. In lieu of
15        the method and amounts set forth in this paragraph (a)
16        for the calculation of the Call Report Fee, the
17        Secretary may specify by rule that the Call Report Fees
18        provided by this Section may be assessed semiannually
19        or some other period and may provide in the rule the
20        formula to be used for calculating and assessing the
21        periodic Call Report Fees to be paid by State banks.
22            (a-1) If in the opinion of the Commissioner an
23        emergency exists or appears likely, the Commissioner
24        may assign an examiner or examiners to monitor the
25        affairs of a State bank with whatever frequency he
26        deems appropriate, including but not limited to a daily

 

 

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1        basis. The reasonable and necessary expenses of the
2        Commissioner during the period of the monitoring shall
3        be borne by the subject bank. The Commissioner shall
4        furnish the State bank a statement of time and expenses
5        if requested to do so within 30 days of the conclusion
6        of the monitoring period.
7            (a-2) On and after January 1, 1990, the reasonable
8        and necessary expenses of the Commissioner during
9        examination of the performance of electronic data
10        processing services under subsection (2.5) shall be
11        borne by the banks for which the services are provided.
12        An amount, based upon a fee structure prescribed by the
13        Commissioner, shall be paid by the banks or, after May
14        31, 1997, branches of out-of-state banks receiving the
15        electronic data processing services along with the
16        Call Report Fee assessed under paragraph (a) of this
17        subsection (3).
18            (a-3) After May 31, 1997, the reasonable and
19        necessary expenses of the Commissioner during
20        examination of the performance of electronic data
21        processing services under subsection (2.5) at or on
22        behalf of branches of out-of-state banks shall be borne
23        by the out-of-state banks, unless those expenses are
24        borne by the state regulatory authorities that
25        chartered the out-of-state banks, as determined by
26        cooperative agreements between the Commissioner and

 

 

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1        the state regulatory authorities that chartered the
2        out-of-state banks.
3            (b) "Fiscal year" for purposes of this Section 48
4        is defined as a period beginning July 1 of any year and
5        ending June 30 of the next year. The Commissioner shall
6        receive for each fiscal year, commencing with the
7        fiscal year ending June 30, 1987, a contingent fee
8        equal to the lesser of the aggregate of the fees paid
9        by all State banks under paragraph (a) of subsection
10        (3) for that year, or the amount, if any, whereby the
11        aggregate of the administration expenses, as defined
12        in paragraph (c), for that fiscal year exceeds the sum
13        of the aggregate of the fees payable by all State banks
14        for that year under paragraph (a) of subsection (3),
15        plus any amounts transferred into the Bank and Trust
16        Company Fund from the State Pensions Fund for that
17        year, plus all other amounts collected by the
18        Commissioner for that year under any other provision of
19        this Act, plus the aggregate of all fees collected for
20        that year by the Commissioner under the Corporate
21        Fiduciary Act, excluding the receivership fees
22        provided for in Section 5-10 of the Corporate Fiduciary
23        Act, and the Foreign Banking Office Act. The aggregate
24        amount of the contingent fee thus arrived at for any
25        fiscal year shall be apportioned amongst, assessed
26        upon, and paid by the State banks and foreign banking

 

 

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1        corporations, respectively, in the same proportion
2        that the fee of each under paragraph (a) of subsection
3        (3), respectively, for that year bears to the aggregate
4        for that year of the fees collected under paragraph (a)
5        of subsection (3). The aggregate amount of the
6        contingent fee, and the portion thereof to be assessed
7        upon each State bank and foreign banking corporation,
8        respectively, shall be determined by the Commissioner
9        and shall be paid by each, respectively, within 120
10        days of the close of the period for which the
11        contingent fee is computed and is payable, and the
12        Commissioner shall give 20 days advance notice of the
13        amount of the contingent fee payable by the State bank
14        and of the date fixed by the Commissioner for payment
15        of the fee.
16            (c) The "administration expenses" for any fiscal
17        year shall mean the ordinary and contingent expenses
18        for that year incident to making the examinations
19        provided for by, and for otherwise administering, this
20        Act, the Corporate Fiduciary Act, excluding the
21        expenses paid from the Corporate Fiduciary
22        Receivership account in the Bank and Trust Company
23        Fund, the Foreign Banking Office Act, the Electronic
24        Fund Transfer Act, and the Illinois Bank Examiners'
25        Education Foundation Act, including all salaries and
26        other compensation paid for personal services rendered

 

 

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1        for the State by officers or employees of the State,
2        including the Commissioner and the Deputy
3        Commissioners, communication equipment and services,
4        office furnishings, surety bond premiums, and travel
5        expenses of those officers and employees, employees,
6        expenditures or charges for the acquisition,
7        enlargement or improvement of, or for the use of, any
8        office space, building, or structure, or expenditures
9        for the maintenance thereof or for furnishing heat,
10        light, or power with respect thereto, all to the extent
11        that those expenditures are directly incidental to
12        such examinations or administration. The Commissioner
13        shall not be required by paragraphs (c) or (d-1) of
14        this subsection (3) to maintain in any fiscal year's
15        budget appropriated reserves for accrued vacation and
16        accrued sick leave that is required to be paid to
17        employees of the Commissioner upon termination of
18        their service with the Commissioner in an amount that
19        is more than is reasonably anticipated to be necessary
20        for any anticipated turnover in employees, whether due
21        to normal attrition or due to layoffs, terminations, or
22        resignations.
23            (d) The aggregate of all fees collected by the
24        Secretary under this Act, the Corporate Fiduciary Act,
25        or the Foreign Banking Office Act on and after July 1,
26        1979, shall be paid promptly after receipt of the same,

 

 

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1        accompanied by a detailed statement thereof, into the
2        State treasury and shall be set apart in a special fund
3        to be known as the "Bank and Trust Company Fund",
4        except as provided in paragraph (c) of subsection (11)
5        of this Section. All earnings received from
6        investments of funds in the Bank and Trust Company Fund
7        shall be deposited in the Bank and Trust Company Fund
8        and may be used for the same purposes as fees deposited
9        in that Fund. The amount from time to time deposited
10        into the Bank and Trust Company Fund shall be used: (i)
11        to offset the ordinary administrative expenses of the
12        Secretary as defined in this Section or (ii) as a
13        credit against fees under paragraph (d-1) of this
14        subsection (3). Nothing in this amendatory Act of 1979
15        shall prevent continuing the practice of paying
16        expenses involving salaries, retirement, social
17        security, and State-paid insurance premiums of State
18        officers by appropriations from the General Revenue
19        Fund. However, the General Revenue Fund shall be
20        reimbursed for those payments made on and after July 1,
21        1979, by an annual transfer of funds from the Bank and
22        Trust Company Fund. Moneys in the Bank and Trust
23        Company Fund may be transferred to the Professions
24        Indirect Cost Fund, as authorized under Section
25        2105-300 of the Department of Professional Regulation
26        Law of the Civil Administrative Code of Illinois.

 

 

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1            Notwithstanding provisions in the State Finance
2        Act, as now or hereafter amended, or any other law to
3        the contrary, the sum of $18,788,847 shall be
4        transferred from the Bank and Trust Company Fund to the
5        Financial Institutions Settlement of 2008 Fund on the
6        effective date of this amendatory Act of the 95th
7        General Assembly, or as soon thereafter as practical.
8            Notwithstanding provisions in the State Finance
9        Act, as now or hereafter amended, or any other law to
10        the contrary, the Governor may, during any fiscal year
11        through January 10, 2011, from time to time direct the
12        State Treasurer and Comptroller to transfer a
13        specified sum not exceeding 10% of the revenues to be
14        deposited into the Bank and Trust Company Fund during
15        that fiscal year from that Fund to the General Revenue
16        Fund in order to help defray the State's operating
17        costs for the fiscal year. Notwithstanding provisions
18        in the State Finance Act, as now or hereafter amended,
19        or any other law to the contrary, the total sum
20        transferred during any fiscal year through January 10,
21        2011, from the Bank and Trust Company Fund to the
22        General Revenue Fund pursuant to this provision shall
23        not exceed during any fiscal year 10% of the revenues
24        to be deposited into the Bank and Trust Company Fund
25        during that fiscal year. The State Treasurer and
26        Comptroller shall transfer the amounts designated

 

 

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1        under this Section as soon as may be practicable after
2        receiving the direction to transfer from the Governor.
3            (d-1) Adequate funds shall be available in the Bank
4        and Trust Company Fund to permit the timely payment of
5        administration expenses. In each fiscal year the total
6        administration expenses shall be deducted from the
7        total fees collected by the Commissioner and the
8        remainder transferred into the Cash Flow Reserve
9        Account, unless the balance of the Cash Flow Reserve
10        Account prior to the transfer equals or exceeds
11        one-fourth of the total initial appropriations from
12        the Bank and Trust Company Fund for the subsequent
13        year, in which case the remainder shall be credited to
14        State banks and foreign banking corporations and
15        applied against their fees for the subsequent year. The
16        amount credited to each State bank and foreign banking
17        corporation shall be in the same proportion as the Call
18        Report Fees paid by each for the year bear to the total
19        Call Report Fees collected for the year. If, after a
20        transfer to the Cash Flow Reserve Account is made or if
21        no remainder is available for transfer, the balance of
22        the Cash Flow Reserve Account is less than one-fourth
23        of the total initial appropriations for the subsequent
24        year and the amount transferred is less than 5% of the
25        total Call Report Fees for the year, additional amounts
26        needed to make the transfer equal to 5% of the total

 

 

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1        Call Report Fees for the year shall be apportioned
2        amongst, assessed upon, and paid by the State banks and
3        foreign banking corporations in the same proportion
4        that the Call Report Fees of each, respectively, for
5        the year bear to the total Call Report Fees collected
6        for the year. The additional amounts assessed shall be
7        transferred into the Cash Flow Reserve Account. For
8        purposes of this paragraph (d-1), the calculation of
9        the fees collected by the Commissioner shall exclude
10        the receivership fees provided for in Section 5-10 of
11        the Corporate Fiduciary Act.
12            (e) The Commissioner may upon request certify to
13        any public record in his keeping and shall have
14        authority to levy a reasonable charge for issuing
15        certifications of any public record in his keeping.
16            (f) In addition to fees authorized elsewhere in
17        this Act, the Commissioner may, in connection with a
18        review, approval, or provision of a service, levy a
19        reasonable charge to recover the cost of the review,
20        approval, or service.
21        (4) Nothing contained in this Act shall be construed to
22    limit the obligation relative to examinations and reports
23    of any State bank, deposits in which are to any extent
24    insured by the United States or any agency thereof, nor to
25    limit in any way the powers of the Commissioner with
26    reference to examinations and reports of that bank.

 

 

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1        (5) The nature and condition of the assets in or
2    investment of any bonus, pension, or profit sharing plan
3    for officers or employees of every State bank or, after May
4    31, 1997, branch of an out-of-state bank shall be deemed to
5    be included in the affairs of that State bank or branch of
6    an out-of-state bank subject to examination by the
7    Commissioner under the provisions of subsection (2) of this
8    Section, and if the Commissioner shall find from an
9    examination that the condition of or operation of the
10    investments or assets of the plan is unlawful, fraudulent,
11    or unsafe, or that any trustee has abused his trust, the
12    Commissioner shall, if the situation so found by the
13    Commissioner shall not be corrected to his satisfaction
14    within 60 days after the Commissioner has given notice to
15    the board of directors of the State bank or out-of-state
16    bank of his findings, report the facts to the Attorney
17    General who shall thereupon institute proceedings against
18    the State bank or out-of-state bank, the board of directors
19    thereof, or the trustees under such plan as the nature of
20    the case may require.
21        (6) The Commissioner shall have the power:
22            (a) To promulgate reasonable rules for the purpose
23        of administering the provisions of this Act.
24            (a-5) To impose conditions on any approval issued
25        by the Commissioner if he determines that the
26        conditions are necessary or appropriate. These

 

 

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1        conditions shall be imposed in writing and shall
2        continue in effect for the period prescribed by the
3        Commissioner.
4            (b) To issue orders against any person, if the
5        Commissioner has reasonable cause to believe that an
6        unsafe or unsound banking practice has occurred, is
7        occurring, or is about to occur, if any person has
8        violated, is violating, or is about to violate any law,
9        rule, or written agreement with the Commissioner, or
10        for the purpose of administering the provisions of this
11        Act and any rule promulgated in accordance with this
12        Act.
13            (b-1) To enter into agreements with a bank
14        establishing a program to correct the condition of the
15        bank or its practices.
16            (c) To appoint hearing officers to execute any of
17        the powers granted to the Commissioner under this
18        Section for the purpose of administering this Act and
19        any rule promulgated in accordance with this Act and
20        otherwise to authorize, in writing, an officer or
21        employee of the Office of Banks and Real Estate to
22        exercise his powers under this Act.
23            (d) To subpoena witnesses, to compel their
24        attendance, to administer an oath, to examine any
25        person under oath, and to require the production of any
26        relevant books, papers, accounts, and documents in the

 

 

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1        course of and pursuant to any investigation being
2        conducted, or any action being taken, by the
3        Commissioner in respect of any matter relating to the
4        duties imposed upon, or the powers vested in, the
5        Commissioner under the provisions of this Act or any
6        rule promulgated in accordance with this Act.
7            (e) To conduct hearings.
8        (7) Whenever, in the opinion of the Secretary, any
9    director, officer, employee, or agent of a State bank or
10    any subsidiary or bank holding company of the bank or,
11    after May 31, 1997, of any branch of an out-of-state bank
12    or any subsidiary or bank holding company of the bank shall
13    have violated any law, rule, or order relating to that bank
14    or any subsidiary or bank holding company of the bank,
15    shall have obstructed or impeded any examination or
16    investigation by the Secretary, shall have engaged in an
17    unsafe or unsound practice in conducting the business of
18    that bank or any subsidiary or bank holding company of the
19    bank, or shall have violated any law or engaged or
20    participated in any unsafe or unsound practice in
21    connection with any financial institution or other
22    business entity such that the character and fitness of the
23    director, officer, employee, or agent does not assure
24    reasonable promise of safe and sound operation of the State
25    bank, the Secretary may issue an order of removal. If, in
26    the opinion of the Secretary, any former director, officer,

 

 

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1    employee, or agent of a State bank or any subsidiary or
2    bank holding company of the bank, prior to the termination
3    of his or her service with that bank or any subsidiary or
4    bank holding company of the bank, violated any law, rule,
5    or order relating to that State bank or any subsidiary or
6    bank holding company of the bank, obstructed or impeded any
7    examination or investigation by the Secretary, engaged in
8    an unsafe or unsound practice in conducting the business of
9    that bank or any subsidiary or bank holding company of the
10    bank, or violated any law or engaged or participated in any
11    unsafe or unsound practice in connection with any financial
12    institution or other business entity such that the
13    character and fitness of the director, officer, employee,
14    or agent would not have assured reasonable promise of safe
15    and sound operation of the State bank, the Secretary may
16    issue an order prohibiting that person from further service
17    with a bank or any subsidiary or bank holding company of
18    the bank as a director, officer, employee, or agent. An
19    order issued pursuant to this subsection shall be served
20    upon the director, officer, employee, or agent. A copy of
21    the order shall be sent to each director of the bank
22    affected by registered mail. A copy of the order shall also
23    be served upon the bank of which he is a director, officer,
24    employee, or agent, whereupon he shall cease to be a
25    director, officer, employee, or agent of that bank. The
26    Secretary may institute a civil action against the

 

 

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1    director, officer, or agent of the State bank or, after May
2    31, 1997, of the branch of the out-of-state bank against
3    whom any order provided for by this subsection (7) of this
4    Section 48 has been issued, and against the State bank or,
5    after May 31, 1997, out-of-state bank, to enforce
6    compliance with or to enjoin any violation of the terms of
7    the order. Any person who has been the subject of an order
8    of removal or an order of prohibition issued by the
9    Secretary under this subsection or Section 5-6 of the
10    Corporate Fiduciary Act may not thereafter serve as
11    director, officer, employee, or agent of any State bank or
12    of any branch of any out-of-state bank, or of any corporate
13    fiduciary, as defined in Section 1-5.05 of the Corporate
14    Fiduciary Act, or of any other entity that is subject to
15    licensure or regulation by the Division of Banking unless
16    the Secretary has granted prior approval in writing.
17        For purposes of this paragraph (7), "bank holding
18    company" has the meaning prescribed in Section 2 of the
19    Illinois Bank Holding Company Act of 1957.
20        (8) The Commissioner may impose civil penalties of up
21    to $100,000 against any person for each violation of any
22    provision of this Act, any rule promulgated in accordance
23    with this Act, any order of the Commissioner, or any other
24    action which in the Commissioner's discretion is an unsafe
25    or unsound banking practice.
26        (9) The Commissioner may impose civil penalties of up

 

 

HB3543 Engrossed- 20 -LRB099 10088 MGM 30311 b

1    to $100 against any person for the first failure to comply
2    with reporting requirements set forth in the report of
3    examination of the bank and up to $200 for the second and
4    subsequent failures to comply with those reporting
5    requirements.
6        (10) All final administrative decisions of the
7    Commissioner hereunder shall be subject to judicial review
8    pursuant to the provisions of the Administrative Review
9    Law. For matters involving administrative review, venue
10    shall be in either Sangamon County or Cook County.
11        (11) The endowment fund for the Illinois Bank
12    Examiners' Education Foundation shall be administered as
13    follows:
14            (a) (Blank).
15            (b) The Foundation is empowered to receive
16        voluntary contributions, gifts, grants, bequests, and
17        donations on behalf of the Illinois Bank Examiners'
18        Education Foundation from national banks and other
19        persons for the purpose of funding the endowment of the
20        Illinois Bank Examiners' Education Foundation.
21            (c) The aggregate of all special educational fees
22        collected by the Secretary and property received by the
23        Secretary on behalf of the Illinois Bank Examiners'
24        Education Foundation under this subsection (11) on or
25        after June 30, 1986, shall be either (i) promptly paid
26        after receipt of the same, accompanied by a detailed

 

 

HB3543 Engrossed- 21 -LRB099 10088 MGM 30311 b

1        statement thereof, into the State Treasury and shall be
2        set apart in a special fund to be known as "The
3        Illinois Bank Examiners' Education Fund" to be
4        invested by either the Treasurer of the State of
5        Illinois in the Public Treasurers' Investment Pool or
6        in any other investment he is authorized to make or by
7        the Illinois State Board of Investment as the State
8        Banking Board of Illinois may direct or (ii) deposited
9        into an account maintained in a commercial bank or
10        corporate fiduciary in the name of the Illinois Bank
11        Examiners' Education Foundation pursuant to the order
12        and direction of the Board of Trustees of the Illinois
13        Bank Examiners' 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
17    if the Director of Banking certifies to the Governor that
18    there is an economic emergency affecting banking that
19    requires a borrowing to provide additional funds to the
20    Bank and Trust Company Fund. The borrowed funds shall be
21    paid back within 3 years and shall not exceed the total
22    funding appropriated to the Agency in the previous year.
23        (14) In addition to the fees authorized in this Act,
24    the Secretary may assess reasonable receivership fees
25    against any State bank that does not maintain insurance
26    with the Federal Deposit Insurance Corporation. All fees

 

 

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1    collected under this subsection (14) shall be paid into the
2    Non-insured Institutions Receivership account in the Bank
3    and Trust Company Fund, as established by the Secretary.
4    The fees assessed under this subsection (14) shall provide
5    for the expenses that arise from the administration of the
6    receivership of any such institution required to pay into
7    the Non-insured Institutions Receivership account, whether
8    pursuant to this Act, the Corporate Fiduciary Act, the
9    Foreign Banking Office Act, or any other Act that requires
10    payments into the Non-insured Institutions Receivership
11    account. The Secretary may establish by rule a reasonable
12    manner of assessing fees under this subsection (14).
13(Source: P.A. 97-333, eff. 8-12-11; 98-784, eff. 7-24-14.)
 
14    (205 ILCS 5/48.05)
15    Sec. 48.05. Regulatory fees. For the fiscal year beginning
16July 1, 2007 and every year thereafter, each state bank
17regulated by the Department shall pay a regulatory fee to the
18Department based upon its total assets as reflected in the most
19recent quarterly report of condition shown by its year-end Call
20Report at the following rates:
21        19.295¢ per $1,000 of the first $5,000,000 of total
22    assets;
23        18.16¢ per $1,000 of the next $20,000,000 of total
24    assets;
25        15.89¢ per $1,000 of the next $75,000,000 of total

 

 

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1    assets;
2        10.7825¢ per $1,000 of the next $400,000,000 of total
3    assets;
4        8.5125¢ per $1,000 of the next $500,000,000 of total
5    assets;
6        6.2425¢ per $1,000 of the next $19,000,000,000 of total
7    assets;
8        2.27¢ per $1,000 of the next $30,000,000,000 of total
9    assets;
10        1.135¢ per $1,000 of the next $50,000,000,000 of total
11    assets; and
12        0.5675¢ per $1,000 of all assets in excess of
13    $100,000,000,000 of the state bank.
14(Source: P.A. 95-1047, eff. 4-6-09.)
 
15    (205 ILCS 5/78)  (from Ch. 17, par. 390)
16    Sec. 78. Board of banks and trust companies; creation,
17members, appointment. There is created a Board which shall be
18known as the State Banking Board of Illinois which shall
19consist of the Director of Banking, who shall be its chairman,
20and 11 additional members. The Board shall be comprised of
21individuals interested in the banking industry. Two members
22shall be from State banks having total assets of not more than
23$75,000,000 at the time of their appointment; 2 members shall
24be from State banks having total assets of more than
25$75,000,000, but not more than $150,000,000 at the time of

 

 

HB3543 Engrossed- 24 -LRB099 10088 MGM 30311 b

1their appointment; 2 members shall be from State banks having
2total assets of more than $150,000,000, but not more than
3$500,000,000 at the time of their appointment; 2 members shall
4be from State banks having total assets of more than
5$500,000,000, but not more than $2,000,000,000 at the time of
6their appointment, and one member shall be from a State bank
7having total assets of more than $2,000,000,000 at the time of
8his or her appointment. There shall be 2 public members,
9neither of whom shall be an officer or director of or owner,
10whether directly or indirectly, of more than 5% of the
11outstanding capital stock of any bank. Members of the State
12Banking Board of Illinois cease to be eligible to serve on the
13Board once they no longer meet the requirements of their
14original appointment; however, a member from a State bank shall
15not be disqualified solely due to a change in the bank's asset
16size.
17(Source: P.A. 96-1163, eff. 1-1-11.)
 
18    Section 10. The Savings Bank Act is amended by changing
19Sections 9002.5, 10085, and 12201 as follows:
 
20    (205 ILCS 205/9002.5)
21    Sec. 9002.5. Regulatory fees.
22    (a) For the fiscal year beginning July 1, 2007 and every
23year thereafter, each savings bank and each service corporation
24operating under this Act shall pay in quarterly installments

 

 

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1equal to one-fourth of a fixed fee of $520, plus a variable fee
2based on the total assets of the savings bank or service
3corporation, as shown in the quarterly report of condition, at
4the following rates:
5        24.97¢ per $1,000 of the first $2,000,000 of total
6    assets;
7        22.70¢ per $1,000 of the next $3,000,000 of total
8    assets;
9        20.43¢ per $1,000 of the next $5,000,000 of total
10    assets;
11        17.025¢ per $1,000 of the next $15,000,000 of total
12    assets;
13        14.755¢ per $1,000 of the next $25,000,000 of total
14    assets;
15        12.485¢ per $1,000 of the next $50,000,000 of total
16    assets;
17        10.215¢ per $1,000 of the next $400,000,000 of total
18    assets;
19        6.81¢ per $1,000 of the next $500,000,000 of total
20    assets; and
21        4.54¢ per $1,000 of all total assets in excess of
22    $1,000,000,000 of such savings bank or service
23    corporation.
24    As used in this Section, "quarterly report of condition"
25means the Report of Condition and Income (Call Report), which
26the Secretary requires.

 

 

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1    (b) (Blank). The Secretary shall receive and there shall be
2paid to the Secretary an additional fee as an adjustment to the
3supervisory fee, based upon the difference between the total
4assets of each savings bank and each service corporation as
5shown by its financial report filed with the Secretary for the
6reporting period of the calendar year ended December 31 on
7which the supervisory fee was based and the total assets of
8each savings bank and each service corporation as shown by its
9financial report filed with the Secretary for the reporting
10period of the calendar year ended December 31 in which the
11quarterly payments are made according to the following
12schedule:
13        24.97¢ per $1,000 of the first $2,000,000 of total
14    assets;
15        22.70¢ per $1,000 of the next $3,000,000 of total
16    assets;
17        20.43¢ per $1,000 of the next $5,000,000 of total
18    assets;
19        17.025¢ per $1,000 of the next $15,000,000 of total
20    assets;
21        14.755¢ per $1,000 of the next $25,000,000 of total
22    assets;
23        12.485¢ per $1,000 of the next $50,000,000 of total
24    assets;
25        10.215¢ per $1,000 of the next $400,000,000 of total
26    assets;

 

 

HB3543 Engrossed- 27 -LRB099 10088 MGM 30311 b

1        6.81¢ per $1,000 of the next $500,000,000 of total
2    assets; and
3        4.54¢ per $1,000 of all total assets in excess of
4    $1,000,000,000 of such savings bank or service
5    corporation.
6    (c) The Secretary shall receive and there shall be paid to
7the Secretary by each savings bank and each service corporation
8a fee of $520 for each approved branch office or facility
9office established under the Illinois Administrative Code. The
10determination of the fees shall be made annually as of the
11close of business of the prior calendar year ended December 31.
12    (d) The Secretary shall receive for each fiscal year,
13commencing with the fiscal year ending June 30, 2014, a
14contingent fee equal to the lesser of the aggregate of the fees
15paid by all savings banks under subsections (a), (b), and (c)
16of this Section for that year, or the amount, if any, whereby
17the aggregate of the administration expenses, as defined in
18subsection (c) of Section 9002.1 of this Act, for that fiscal
19year exceeds the sum of the aggregate of the fees payable by
20all savings banks for that year under subsections (a), (b), and
21(c) of this Section, plus any amounts transferred into the
22Savings Bank Regulatory Fund from the State Pensions Fund for
23that year, plus all other amounts collected by the Secretary
24for that year under any other provision of this Act. The
25aggregate amount of the contingent fee thus arrived at for any
26fiscal year shall be apportioned amongst, assessed upon, and

 

 

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1paid by the savings banks, respectively, in the same proportion
2that the fee of each under subsections (a), (b), and (c) of
3this Section, respectively, for that year bears to the
4aggregate for that year of the fees collected under subsections
5(a), (b), and (c) of this Section. The aggregate amount of the
6contingent fee, and the portion thereof to be assessed upon
7each savings bank, respectively, shall be determined by the
8Secretary and shall be paid by each, respectively, within 120
9days of the close of the period for which the contingent fee is
10computed and is payable, and the Secretary shall give 20 days
11advance notice of the amount of the contingent fee payable by
12the savings bank and of the date fixed by the Secretary for
13payment of the fee.
14(Source: P.A. 98-1081, eff. 1-1-15.)
 
15    (205 ILCS 205/10085)
16    Sec. 10085. Expenses and fees.
17    (a) In addition to the fees authorized in this Act, the
18Secretary may assess reasonable receivership fees against any
19savings bank operating under this Act that does not maintain
20insurance with the Federal Deposit Insurance Corporation. All
21fees collected under this subsection (a) shall be paid into the
22Non-insured Institutions Receivership account in the Bank and
23Trust Company Fund, as established by the Secretary. The fees
24assessed under this subsection (a) shall provide for the
25expenses that arise from the administration of the receivership

 

 

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1of any such institution required to pay into the Non-insured
2Institutions Receivership account, whether pursuant to this
3Act, the Illinois Banking Act, the Corporate Fiduciary Act, the
4Foreign Banking Office Act, or any other Act that requires
5payments into the Non-insured Institutions Receivership
6account.
7    (b) The Secretary may establish by rule a reasonable manner
8of assessing fees under subsection (a).
9    (c) All expenses of a receivership, including reasonable
10receiver's and attorney's fees approved by the Secretary, shall
11be paid out of the assets of the savings bank. If the funds in
12the estate of the savings bank are insufficient to cover the
13expenses that arise from the administration of a receivership,
14the Secretary may pay such expenses from the Non-insured
15Institutions Receivership account. All expenses of any
16preliminary or other examination into the condition of any such
17savings bank or receivership and all expenses incident to and
18in connection with the possession and control of the bank and
19its assets for the purpose of examination, reorganization, or
20liquidation through receivership shall be paid out of the
21assets of the savings bank; if such funds are insufficient, the
22Secretary may pay such expenses from the Non-insured
23Institutions Receivership account. The payment authorized
24under this subsection (c) Section may be made by the Secretary
25with moneys and property of the bank in his or her possession
26and control and shall have priority over all claims.

 

 

HB3543 Engrossed- 30 -LRB099 10088 MGM 30311 b

1(Source: P.A. 96-1365, eff. 7-28-10.)
 
2    (205 ILCS 205/12201)
3    Sec. 12201. Board of Savings Banks; appointment. The Board
4of Savings Bank is established pursuant to Section 12104 of
5this Act. The Board of Savings Banks shall be composed of the
6Director of Banking, who shall be its chairperson and have the
7power to vote, and 7 persons appointed by the Governor. Two of
8the 7 persons appointed by the Governor shall represent the
9public interest and the remainder shall have been engaged
10actively in savings bank or savings and loan management in this
11State for at least 5 years immediately prior to appointment.
12Each member of the Board appointed by the Governor shall be
13reimbursed for ordinary and necessary expenses incurred in
14attending the meetings of the Board. Members, excluding the
15chairperson, shall be appointed for 4-year terms to expire on
16the third Monday in January. Except as otherwise provided in
17this Section, members of the Board shall serve until their
18respective successors are appointed and qualified. A member who
19tenders a written resignation shall serve only until the
20resignation is accepted by the chairperson. A member who fails
21to attend 3 consecutive Board meetings without an excused
22absence shall no longer serve as a member. Members of the Board
23of Savings Banks cease to be eligible to serve on the Board
24once they no longer meet the requirements of their original
25appointment. The Governor shall fill any vacancy by the

 

 

HB3543 Engrossed- 31 -LRB099 10088 MGM 30311 b

1appointment of a member for the unexpired term in the same
2manner as in the making of original appointments.
3(Source: P.A. 98-1081, eff. 1-1-15.)