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.
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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
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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
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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.".