093_SB0771ham001 LRB093 03108 SAS 20061 a 1 AMENDMENT TO SENATE BILL 771 2 AMENDMENT NO. . Amend Senate Bill 771, by replacing 3 everything after the enacting clause with the following: 4 "Section 5. The Illinois Banking Act is amended by 5 changing Section 34 as follows: 6 (205 ILCS 5/34) (from Ch. 17, par. 342) 7 Sec. 34. Exceptions to loans and investment limits. The 8 limitations in Sections 32, 33, and 35.1 of this Act upon the 9 liabilities of any one person and upon the purchase and 10 holding of marketable investment securities shall not apply: 11 (1) To the extent of 50% of the unimpaired capital and 12 unimpaired surplus of any bank, to loans to or obligations of 13 any person to the extent that the loan shall be secured by a 14 like amount of obligations of or guaranteed by the United 15 States or by the State of Illinois, or by a like amount of 16 obligations of any corporation wholly owned directly or 17 indirectly by the United States or of any agency or 18 instrumentality of the United States or of the State of 19 Illinois, including any unit of local government or school 20 district, provided that the total liabilities to any bank of 21 any one person shall not exceed 50% of such unimpaired 22 capital and unimpaired surplus. -2- LRB093 03108 SAS 20061 a 1 (2) To the extent of 30% of the unimpaired capital and 2 unimpaired surplus of any bank, to loans to or obligations of 3 any person to the extent that the same shall be secured by 4 shipping documents or instruments transferring or securing 5 title covering livestock or giving a lien on livestock when 6 the market value of the livestock securing the obligation is 7 not at the time of the making of the loan less than 115% of 8 the principal amount of the obligation, provided that the 9 total liabilities to any bank of any one person shall not 10 exceed 50% of the unimpaired capital and unimpaired surplus. 11 (3) To the extent of the unimpaired capital and 12 unimpaired surplus of any bank, to the purchase of or holding 13 by any bank of the general obligations of each municipality 14 located in the State of Illinois or in any other state of the 15 United States or to the purchase of or holding of the tax 16 anticipation warrants of each such municipality. 17 (4) To the obligations as endorser, whether with or 18 without recourse, or as guarantor, whether conditional or 19 unconditional, of negotiable or nonnegotiable installment 20 consumer paper of the person transferring the same if the 21 bank's files or the knowledge of its officers of the 22 financial condition of each maker of those obligations is 23 reasonably adequate and if an officer of the bank, designated 24 for that purpose by the board of directors of the bank, 25 certifies that the responsibility of each maker of the 26 obligations has been evaluated and that the bank is relying 27 primarily upon each maker for the payment of the obligations; 28 certification shall be in writing and shall be retained as 29 part of the records of the bank. 30 (5) To the issuance, advice, or confirmation of letters 31 of credit; however, if the letter of credit is a standby 32 letter of credit, it shall be included within the limit under 33 Section 32 for the person who has procured the issuance of 34 the standby letter of credit unless the issuing bank has, at -3- LRB093 03108 SAS 20061 a 1 the time of issuance, an irrevocable commitment by another 2 bank to purchase or participate out any amounts that may 3 later be drawn under the letter of credit that would create a 4 loan in excess of the limits under Section 32 for the person 5 or the amounts are secured by pledge of United States 6 government securities, a segregated deposit account, or 7 other security that would exempt a loan so secured by 8 application of Section 34 or 35 of this Act; if, however, a 9 commitment to purchase or participate is in place, the 10 amounts are not included in the limits under Section 32 for 11 the person until drafts are presented upon the letter. 12 (6) To the acceptance of drafts or bills of exchange 13 that grow out of transactions involving the importation or 14 exportation of goods; or that grow out of transactions 15 involving the domestic shipment of goods, provided documents 16 of title covering the goods secure the acceptances at the 17 time of acceptance; or that are secured at the time of 18 acceptances by documents of title covering readily marketable 19 staples; but the aggregate amount of these acceptances by any 20 State bank on behalf of any one person at any one time 21 outstanding shall not exceed 20% of the unimpaired capital 22 and unimpaired surplus of the bank unless the part thereof in 23 excess of that percentum of unimpaired capital and unimpaired 24 surplus is and will remain secured by accompanying documents 25 of title or proceeds thereof growing out of the same 26 transaction or by substituted security of similar character; 27 provided further, however, that the aggregate amount of the 28 acceptances on behalf of any one person outstanding at any 29 one time shall not exceed 50% of the amount of unimpaired 30 capital and unimpaired surplus of the bank. The provisions of 31 this paragraph (6) apply to the acceptances by a State bank 32 on behalf of any one person and not to the purchase by a 33 State bank of other banks' acceptances. A State bank may 34 purchase acceptances from other banks in amounts not to -4- LRB093 03108 SAS 20061 a 1 exceed 50% of the State bank's unimpaired capital and 2 unimpaired surplus from any one bank. 3 (7) To the extent of 20% of the unimpaired capital and 4 unimpaired surplus of any bank, to the purchase of or holding 5 by any bank of obligations of the State of Israel or 6 obligations fully guaranteed by the State of Israel as to 7 payment of principal and interest. 8 (8) To the purchase of stock in a Federal Home Loan 9 Bank. 10 (Source: P.A. 90-301, eff. 8-1-97.) 11 Section 99. Effective date. This Act takes effect upon 12 becoming law.".