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| 1 | AMENDMENT TO SENATE BILL 1861
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| 2 | AMENDMENT NO. ______. Amend Senate Bill 1861 as follows:
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| 3 | on page 1, line 5, by replacing "Sections 5, 14, and 14.1" with | ||||||
| 4 | "Sections 5 and 14.1"; and | ||||||
| 5 | by replacing line 1 on page 12 through line 18 on page 19 with | ||||||
| 6 | the following:
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| 7 | "(205 ILCS 5/14.1) (from Ch. 17, par. 321.1)
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| 8 | Sec. 14.1. Quasi-Reorganization of Capital Upon a Change in | ||||||
| 9 | Control.
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| 10 | (a) For the purposes of declaring dividends pursuant to | ||||||
| 11 | Section 14(8)(b) of
this Act upon a change in control, if a | ||||||
| 12 | bank:
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| 13 | (1) incurs a change in ownership of more than 50% of its | ||||||
| 14 | voting stock; and
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| 15 | (2) has a deficit in its net profits then on hand at the | ||||||
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| 1 | time of such
change in ownership; and
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| 2 | (3) receives the prior written approval of the Secretary | ||||||
| 3 | Commissioner; such bank
may restate its asset and liability | ||||||
| 4 | accounts to fair value for the purpose
of reorganizing the | ||||||
| 5 | capital accounts of the bank so that net profits then
on hand | ||||||
| 6 | are restated to zero; provided that in no event may total | ||||||
| 7 | capital
be increased as a result of a capital reorganization | ||||||
| 8 | made pursuant to this Section.
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| 9 | (b) A bank may reorganize its capital accounts pursuant to | ||||||
| 10 | item (3) of subsection (a) of this Section without a change in | ||||||
| 11 | control to the same extent and in the same manner authorized | ||||||
| 12 | for national banks, subject to the same limitations and | ||||||
| 13 | restrictions as are applicable to national banks, upon | ||||||
| 14 | receiving the prior written approval of the Secretary. | ||||||
| 15 | (Source: P.A. 87-841.)".
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