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1 | AN ACT concerning financial regulation.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Illinois Banking Act is amended by changing | |||||||||||||||||||||
5 | Sections 2 and 5 as follows:
| |||||||||||||||||||||
6 | (205 ILCS 5/2) (from Ch. 17, par. 302)
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7 | Sec. 2. General definitions. In this Act, unless the | |||||||||||||||||||||
8 | context otherwise
requires, the following words and phrases | |||||||||||||||||||||
9 | shall have the following meanings:
| |||||||||||||||||||||
10 | "Accommodation party" shall have the meaning ascribed to | |||||||||||||||||||||
11 | that term in
Section 3-419 of the Uniform Commercial Code.
| |||||||||||||||||||||
12 | "Action" in the sense of a judicial proceeding includes | |||||||||||||||||||||
13 | recoupments,
counterclaims, set-off, and any other proceeding | |||||||||||||||||||||
14 | in which
rights are determined.
| |||||||||||||||||||||
15 | "Affiliate facility" of a bank means a main banking | |||||||||||||||||||||
16 | premises or branch
of another commonly owned bank.
The main | |||||||||||||||||||||
17 | banking premises or any branch of a bank
may be an "affiliate | |||||||||||||||||||||
18 | facility" with respect to one or more other commonly owned
| |||||||||||||||||||||
19 | banks.
| |||||||||||||||||||||
20 | "Appropriate federal banking agency" means the Federal | |||||||||||||||||||||
21 | Deposit Insurance
Corporation, the Federal Reserve Bank of | |||||||||||||||||||||
22 | Chicago, or the Federal Reserve Bank
of St. Louis, as | |||||||||||||||||||||
23 | determined by federal law.
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24 | "Bank" means any person doing a banking business whether | |||||||||||||||||||||
25 | subject to the
laws of this or any other jurisdiction.
| |||||||||||||||||||||
26 | A "banking house", "branch", "branch bank" or "branch
| |||||||||||||||||||||
27 | office" shall mean any place of business of a bank at which | |||||||||||||||||||||
28 | deposits are
received, checks paid, or loans made, but shall | |||||||||||||||||||||
29 | not include any place at
which only records thereof are made, | |||||||||||||||||||||
30 | posted, or kept. A place of business
at which deposits are | |||||||||||||||||||||
31 | received, checks paid, or loans made shall not be
deemed to be | |||||||||||||||||||||
32 | a branch, branch bank, or branch office if the place of
|
| |||||||
| |||||||
1 | business is adjacent to and connected with the main banking | ||||||
2 | premises, or if
it is separated from the main banking premises | ||||||
3 | by not more than an alley;
provided always that (i) if the | ||||||
4 | place of business is separated by an alley
from the main | ||||||
5 | banking premises there is a connection between the two by
| ||||||
6 | public or private way or by subterranean or overhead passage, | ||||||
7 | and (ii) if
the place of business is in a building not wholly | ||||||
8 | occupied by the bank, the
place of business shall not be within | ||||||
9 | any office or room in which any other
business or service of | ||||||
10 | any kind or nature other than the business of the
bank is | ||||||
11 | conducted or carried on. A place of business at which deposits | ||||||
12 | are
received, checks paid, or loans made shall not be deemed to | ||||||
13 | be a branch,
branch bank, or branch office (i) of any bank if | ||||||
14 | the place is a terminal established and maintained in | ||||||
15 | accordance with
paragraph
(17) of Section 5 of this Act, or | ||||||
16 | (ii) of a commonly owned bank
by virtue of
transactions | ||||||
17 | conducted at that place on behalf of the other commonly owned | ||||||
18 | bank
under paragraph (23) of Section 5 of this Act if the place | ||||||
19 | is an affiliate
facility with respect to the other bank.
| ||||||
20 | "Branch of an out-of-state bank" means a branch established | ||||||
21 | or maintained in
Illinois by an out-of-state bank as a result | ||||||
22 | of a merger between an Illinois
bank and the out-of-state bank | ||||||
23 | that occurs on or after May 31, 1997, or any
branch established | ||||||
24 | by the out-of-state bank following the merger.
| ||||||
25 | "Bylaws" means the bylaws of a bank that are adopted by the | ||||||
26 | bank's board of
directors or shareholders for the regulation | ||||||
27 | and management of the bank's
affairs. If the bank operates as a | ||||||
28 | limited liability company, however, "bylaws"
means the | ||||||
29 | operating
agreement of the bank.
| ||||||
30 | "Call report fee" means the fee to be paid to the
| ||||||
31 | Commissioner by each State bank pursuant to paragraph (a) of | ||||||
32 | subsection (3)
of Section 48 of this Act.
| ||||||
33 | "Capital" includes the aggregate of outstanding capital | ||||||
34 | stock and
preferred stock.
| ||||||
35 | "Cash flow reserve account" means the account within the | ||||||
36 | books and records
of the Commissioner of Banks and Real Estate |
| |||||||
| |||||||
1 | used to
record funds designated to maintain a reasonable Bank | ||||||
2 | and Trust Company Fund
operating balance to meet agency | ||||||
3 | obligations on a timely basis.
| ||||||
4 | "Charter" includes the original charter and all amendments | ||||||
5 | thereto
and articles of merger or consolidation.
| ||||||
6 | "Commissioner" means the Commissioner of Banks and Real | ||||||
7 | Estate or a person
authorized by the Commissioner, the Office | ||||||
8 | of Banks and Real Estate
Act, or this Act to act in the | ||||||
9 | Commissioner's stead.
| ||||||
10 | "Commonly owned banks" means 2 or more banks that each | ||||||
11 | qualify as a bank
subsidiary of the same bank holding company | ||||||
12 | pursuant to Section 18 of the
Federal Deposit Insurance Act; | ||||||
13 | "commonly owned bank" refers to one of a group
of commonly | ||||||
14 | owned banks but only with respect to one or more of the other | ||||||
15 | banks
in the same group.
| ||||||
16 | "Community" means a city, village, or incorporated town and | ||||||
17 | also includes
the area served by the banking offices of a bank, | ||||||
18 | but need not be limited or
expanded to conform to the | ||||||
19 | geographic boundaries of units of local
government.
| ||||||
20 | "Company" means a corporation, limited liability company, | ||||||
21 | partnership,
business trust,
association, or similar | ||||||
22 | organization and, unless specifically excluded,
includes a | ||||||
23 | "State bank" and a "bank".
| ||||||
24 | "Consolidating bank" means a party to a consolidation.
| ||||||
25 | "Consolidation" takes place when 2 or more banks, or a | ||||||
26 | trust company and
a bank, are extinguished and by the same | ||||||
27 | process a new bank is created,
taking over the assets and | ||||||
28 | assuming the liabilities of the banks or trust
company passing | ||||||
29 | out of existence.
| ||||||
30 | "Continuing bank" means a merging bank, the charter of | ||||||
31 | which becomes the
charter of the resulting bank.
| ||||||
32 | "Converting bank" means a State bank converting to become a | ||||||
33 | national
bank, or a national bank converting to become a State | ||||||
34 | bank.
| ||||||
35 | "Converting trust company" means a trust company | ||||||
36 | converting to become a
State bank.
|
| |||||||
| |||||||
1 | "Court" means a court of competent jurisdiction.
| ||||||
2 | "Director" means a member of the board of directors of a | ||||||
3 | bank. In the case
of a manager-managed limited liability | ||||||
4 | company, however, "director" means a
manager of
the bank and, | ||||||
5 | in the case of a member-managed limited liability company,
| ||||||
6 | "director" means a member of the bank. The term "director" does | ||||||
7 | not include an
advisory director, honorary director, director | ||||||
8 | emeritus, or similar person,
unless the person is otherwise | ||||||
9 | performing
functions similar to those of a member of the board | ||||||
10 | of directors.
| ||||||
11 | "Eligible depository institution" means an insured savings | ||||||
12 | association
that is in default, an insured savings association | ||||||
13 | that is in danger of
default, a State or national bank that is | ||||||
14 | in default or a State or
national bank that is in danger of | ||||||
15 | default, as those terms are defined in this
Section, or a new | ||||||
16 | bank as that term defined in Section 11(m) of the Federal
| ||||||
17 | Deposit Insurance Act or a bridge bank as that term is defined | ||||||
18 | in Section 11(n)
of the Federal Deposit Insurance Act or a new | ||||||
19 | federal savings association
authorized under Section | ||||||
20 | 11(d)(2)(f) of the Federal Deposit Insurance Act.
| ||||||
21 | "Federally insured depository institution" means a bank | ||||||
22 | that is insured by the Federal Deposit Insurance Corporation or | ||||||
23 | other instrumentality of or corporation chartered by the United | ||||||
24 | States that is supported by the full faith and credit of the | ||||||
25 | United States government.
| ||||||
26 | "Fiduciary" means trustee, agent, executor, administrator, | ||||||
27 | committee,
guardian for a minor or for a person under legal | ||||||
28 | disability, receiver,
trustee in bankruptcy, assignee for | ||||||
29 | creditors, or any holder of similar
position of trust.
| ||||||
30 | "Financial institution" means a bank, savings and loan | ||||||
31 | association,
credit union, or any licensee under the Consumer | ||||||
32 | Installment Loan Act or
the Sales Finance Agency Act and, for | ||||||
33 | purposes of Section 48.3, any
proprietary network, funds | ||||||
34 | transfer corporation, or other entity providing
electronic | ||||||
35 | funds transfer services, or any corporate fiduciary, its
| ||||||
36 | subsidiaries, affiliates, parent company, or contractual |
| |||||||
| |||||||
1 | service provider
that is examined by the Commissioner.
| ||||||
2 | "Foundation" means the Illinois Bank Examiners' Education | ||||||
3 | Foundation.
| ||||||
4 | "General obligation" means a bond, note, debenture, | ||||||
5 | security, or other
instrument evidencing an obligation of the | ||||||
6 | government entity that is the
issuer that is supported by the
| ||||||
7 | full available resources of the issuer, the principal and | ||||||
8 | interest of which
is payable in whole or in part by taxation.
| ||||||
9 | "Guarantee" means an undertaking or promise to answer for | ||||||
10 | payment of
another's debt or performance of another's duty, | ||||||
11 | liability, or obligation
whether "payment guaranteed" or | ||||||
12 | "collection guaranteed".
| ||||||
13 | "In danger of default" means a State or national bank, a | ||||||
14 | federally chartered
insured savings association or an Illinois | ||||||
15 | state chartered insured savings
association with respect to | ||||||
16 | which the Commissioner or the appropriate
federal banking | ||||||
17 | agency has advised the Federal Deposit Insurance
Corporation | ||||||
18 | that:
| ||||||
19 | (1) in the opinion of the Commissioner or the | ||||||
20 | appropriate federal
banking agency,
| ||||||
21 | (A) the State or national bank or insured savings | ||||||
22 | association is not
likely to be able to meet the | ||||||
23 | demands of the State or national bank's or
savings | ||||||
24 | association's obligations in the normal course of | ||||||
25 | business; and
| ||||||
26 | (B) there is no reasonable prospect that the State | ||||||
27 | or national bank or
insured savings association will be | ||||||
28 | able to meet those demands or pay those
obligations | ||||||
29 | without federal assistance; or
| ||||||
30 | (2) in the opinion of the Commissioner or the | ||||||
31 | appropriate federal
banking agency,
| ||||||
32 | (A) the State or national bank or insured savings | ||||||
33 | association has
incurred or is likely to incur losses | ||||||
34 | that will deplete all or substantially
all of its | ||||||
35 | capital; and
| ||||||
36 | (B) there is no reasonable prospect that the |
| |||||||
| |||||||
1 | capital of the State
or national bank or insured | ||||||
2 | savings association will be replenished without
| ||||||
3 | federal assistance.
| ||||||
4 | "In default" means, with respect to a State or national | ||||||
5 | bank or an insured
savings association, any adjudication or | ||||||
6 | other official determination by any
court of competent | ||||||
7 | jurisdiction, the Commissioner, the appropriate federal
| ||||||
8 | banking agency, or other public authority pursuant to which a | ||||||
9 | conservator, receiver,
or other legal custodian is appointed | ||||||
10 | for a State or national bank or an
insured savings association.
| ||||||
11 | "Insured savings association" means any federal savings | ||||||
12 | association chartered
under Section 5 of the federal Home | ||||||
13 | Owners' Loan Act and any State savings
association chartered | ||||||
14 | under the Illinois Savings and Loan Act of 1985 or a
| ||||||
15 | predecessor Illinois statute, the deposits of which are insured | ||||||
16 | by the Federal
Deposit Insurance Corporation. The term also | ||||||
17 | includes a savings bank organized
or operating under the | ||||||
18 | Savings Bank Act.
| ||||||
19 | "Insured savings association in recovery" means an insured | ||||||
20 | savings
association that is not an eligible depository | ||||||
21 | institution and that does
not meet the minimum capital | ||||||
22 | requirements applicable with respect to the
insured savings | ||||||
23 | association.
| ||||||
24 | "Issuer" means for purposes of Section 33 every person who | ||||||
25 | shall have
issued or proposed to issue any security; except | ||||||
26 | that (1) with respect to
certificates of deposit, voting trust | ||||||
27 | certificates, collateral-trust
certificates, and certificates | ||||||
28 | of interest or shares in an unincorporated
investment trust not | ||||||
29 | having a board of directors (or persons performing
similar | ||||||
30 | functions), "issuer" means the person or persons performing the
| ||||||
31 | acts and assuming the duties of depositor or manager pursuant | ||||||
32 | to the
provisions of the trust, agreement, or instrument under | ||||||
33 | which the
securities are issued; (2) with respect to trusts | ||||||
34 | other than those
specified in clause (1) above, where the | ||||||
35 | trustee is a corporation
authorized to accept and execute | ||||||
36 | trusts, "issuer" means the entrusters,
depositors, or creators |
| |||||||
| |||||||
1 | of the trust and any manager or committee charged
with the | ||||||
2 | general direction of the affairs of the trust pursuant to the
| ||||||
3 | provisions of the agreement or instrument creating the trust; | ||||||
4 | and (3) with
respect to equipment trust certificates or like | ||||||
5 | securities, "issuer" means
the person to whom the equipment or | ||||||
6 | property is or is to be leased or
conditionally sold.
| ||||||
7 | "Letter of credit" and "customer" shall have the meanings | ||||||
8 | ascribed to
those terms in Section 5-102 of the Uniform | ||||||
9 | Commercial Code.
| ||||||
10 | "Main banking premises" means the location that is | ||||||
11 | designated in a
bank's charter as its main office.
| ||||||
12 | "Maker or obligor" means for purposes of Section 33 the | ||||||
13 | issuer of a
security, the promisor in a debenture or other debt | ||||||
14 | security, or the
mortgagor or grantor of a trust deed or | ||||||
15 | similar conveyance of a security
interest in real or personal | ||||||
16 | property.
| ||||||
17 | "Merged bank" means a merging bank that is not the | ||||||
18 | continuing, resulting,
or surviving bank in a consolidation or | ||||||
19 | merger.
| ||||||
20 | "Merger" includes consolidation.
| ||||||
21 | "Merging bank" means a party to a bank merger.
| ||||||
22 | "Merging trust company" means a trust company party to a | ||||||
23 | merger with
a State bank.
| ||||||
24 | "Mid-tier bank holding company" means a corporation that | ||||||
25 | (a) owns 100% of
the issued and outstanding shares of each | ||||||
26 | class of stock of a State bank, (b)
has no other subsidiaries, | ||||||
27 | and (c) 100% of the issued and outstanding shares of
the | ||||||
28 | corporation are owned by a parent bank holding company.
| ||||||
29 | "Municipality" means any municipality, political | ||||||
30 | subdivision, school
district, taxing district, or agency.
| ||||||
31 | "National bank" means a national banking association | ||||||
32 | located in this
State and after May 31, 1997, means a national | ||||||
33 | banking association without
regard to its location.
| ||||||
34 | "Out-of-state bank" means a bank chartered under the laws | ||||||
35 | of a state other
than Illinois, a territory of the United | ||||||
36 | States, or the District of Columbia.
|
| |||||||
| |||||||
1 | "Parent bank holding company" means a corporation that is a | ||||||
2 | bank holding
company as that term is defined in the Illinois | ||||||
3 | Bank Holding Company Act of
1957 and owns 100% of the issued | ||||||
4 | and outstanding shares of a mid-tier bank
holding company.
| ||||||
5 | "Person" means an individual, corporation, limited | ||||||
6 | liability company,
partnership, joint
venture, trust, estate, | ||||||
7 | or unincorporated association.
| ||||||
8 | "Public agency" means the State of Illinois, the various | ||||||
9 | counties,
townships,
cities, towns, villages, school | ||||||
10 | districts, educational service regions, special
road | ||||||
11 | districts, public water supply districts, fire protection | ||||||
12 | districts,
drainage districts, levee districts, sewer | ||||||
13 | districts, housing authorities, the
Illinois Bank Examiners' | ||||||
14 | Education Foundation, the Chicago Park District, and
all other | ||||||
15 | political corporations or subdivisions of the State of | ||||||
16 | Illinois,
whether now or hereafter created, whether herein | ||||||
17 | specifically mentioned or
not, and shall also include any other
| ||||||
18 | state or any political corporation or subdivision of another | ||||||
19 | state.
| ||||||
20 | "Public funds" or "public money" means
current operating | ||||||
21 | funds, special funds, interest and sinking funds, and funds
of | ||||||
22 | any kind or character belonging to, in the custody of, or | ||||||
23 | subject to the
control or regulation of the United States or a | ||||||
24 | public agency. "Public funds"
or "public money" shall include | ||||||
25 | funds held by any of the officers, agents, or
employees of the | ||||||
26 | United States or of a public agency in the course of their
| ||||||
27 | official duties and, with respect to public money of the United | ||||||
28 | States, shall
include Postal Savings funds.
| ||||||
29 | "Published" means, unless the context requires otherwise, | ||||||
30 | the publishing
of the notice or instrument referred to in some | ||||||
31 | newspaper of general
circulation in the community in which the | ||||||
32 | bank is located at least once
each week for 3 successive weeks. | ||||||
33 | Publishing shall be accomplished by, and
at the expense of, the | ||||||
34 | bank required to publish. Where publishing is
required, the | ||||||
35 | bank shall submit to the Commissioner that evidence of the
| ||||||
36 | publication as the Commissioner shall deem appropriate.
|
| |||||||
| |||||||
1 | "Qualified financial contract" means any security | ||||||
2 | contract,
commodity contract, forward contract, including spot | ||||||
3 | and
forward foreign exchange contracts, repurchase agreement, | ||||||
4 | swap agreement, and
any
similar agreement, any option to enter | ||||||
5 | into any such agreement, including any
combination of the | ||||||
6 | foregoing, and any master agreement for such agreements.
A | ||||||
7 | master agreement, together with all supplements thereto, shall | ||||||
8 | be treated
as one qualified financial contract. The contract, | ||||||
9 | option, agreement, or
combination of contracts, options, or | ||||||
10 | agreements shall be reflected upon the
books, accounts, or | ||||||
11 | records of the bank, or a party to the contract shall
provide | ||||||
12 | documentary evidence of such agreement.
| ||||||
13 | "Recorded" means the filing or recording of the notice or | ||||||
14 | instrument
referred to in the office of the Recorder of the | ||||||
15 | county wherein
the bank is located.
| ||||||
16 | "Resulting bank" means the bank resulting from a merger or | ||||||
17 | conversion.
| ||||||
18 | "Securities" means stocks, bonds, debentures, notes, or | ||||||
19 | other similar
obligations.
| ||||||
20 | "Stand-by letter of credit" means a letter of credit under | ||||||
21 | which drafts
are payable upon the condition the customer has | ||||||
22 | defaulted in performance of
a duty, liability, or obligation.
| ||||||
23 | "State bank" means any banking corporation that has a | ||||||
24 | banking charter
issued by the Commissioner under
this Act.
| ||||||
25 | "State Banking Board" means the State Banking Board of | ||||||
26 | Illinois.
| ||||||
27 | "Subsidiary" with respect to a specified company means a | ||||||
28 | company that is
controlled by the specified company. For | ||||||
29 | purposes of paragraphs (8) and (12)
of Section 5 of this Act, | ||||||
30 | "control" means the exercise of operational or
managerial | ||||||
31 | control of a corporation by the bank, either alone or together | ||||||
32 | with
other affiliates of the bank.
| ||||||
33 | "Surplus" means the aggregate of (i) amounts paid in excess | ||||||
34 | of the par
value of capital stock and preferred stock; (ii) | ||||||
35 | amounts contributed other
than for capital stock and preferred | ||||||
36 | stock and allocated to the surplus
account; and (iii) amounts |
| |||||||
| |||||||
1 | transferred from undivided profits.
| ||||||
2 | "Tier 1 Capital" and "Tier 2 Capital" have the meanings | ||||||
3 | assigned to those
terms in regulations promulgated for the | ||||||
4 | appropriate federal banking agency of
a state bank, as those | ||||||
5 | regulations are now or hereafter amended.
| ||||||
6 | "Trust company" means a limited liability company or | ||||||
7 | corporation
incorporated in this State for the
purpose of | ||||||
8 | accepting and executing trusts.
| ||||||
9 | "Undivided profits" means undistributed earnings less | ||||||
10 | discretionary
transfers to surplus.
| ||||||
11 | "Unimpaired capital and unimpaired surplus", for the | ||||||
12 | purposes of paragraph
(21) of Section 5 and Sections 32, 33, | ||||||
13 | 34, 35.1, 35.2, and 47 of this Act means
the sum of the state | ||||||
14 | bank's Tier 1 Capital and Tier 2 Capital plus such other
| ||||||
15 | shareholder equity as may be included by
regulation of the | ||||||
16 | Commissioner. Unimpaired capital and unimpaired surplus
shall | ||||||
17 | be calculated on the basis of the date of the last quarterly | ||||||
18 | call report
filed with the Commissioner preceding the date of | ||||||
19 | the transaction for which the
calculation is made, provided | ||||||
20 | that: (i) when a material event occurs after the
date of the | ||||||
21 | last quarterly call report filed with the Commissioner that | ||||||
22 | reduces
or increases the bank's unimpaired capital and | ||||||
23 | unimpaired surplus by 10% or
more, then the unimpaired capital | ||||||
24 | and unimpaired surplus shall be calculated
from the date of the | ||||||
25 | material
event for a transaction conducted after the date of | ||||||
26 | the material event; and
(ii) if the Commissioner determines for | ||||||
27 | safety and soundness reasons that a
state bank should calculate | ||||||
28 | unimpaired capital and unimpaired surplus more
frequently than | ||||||
29 | provided by this paragraph, the Commissioner may by written
| ||||||
30 | notice direct the bank to calculate unimpaired capital and | ||||||
31 | unimpaired surplus
at a more frequent interval. In the case of | ||||||
32 | a state bank newly chartered under
Section 13 or a state bank | ||||||
33 | resulting from a merger, consolidation, or
conversion under | ||||||
34 | Sections 21 through 26 for which no preceding quarterly call
| ||||||
35 | report has been filed with the Commissioner, unimpaired capital | ||||||
36 | and unimpaired
surplus shall be calculated for the first |
| |||||||
| |||||||
1 | calendar quarter on the basis of the
effective date of the | ||||||
2 | charter, merger, consolidation, or conversion.
| ||||||
3 | (Source: P.A. 92-483, eff. 8-23-01; 93-561, eff. 1-1-04.)
| ||||||
4 | (205 ILCS 5/5) (from Ch. 17, par. 311)
| ||||||
5 | Sec. 5. General corporate powers. A bank organized under | ||||||
6 | this Act
or subject hereto shall be a body corporate and | ||||||
7 | politic and shall,
without specific mention thereof in the | ||||||
8 | charter, have all the powers
conferred by this Act and the | ||||||
9 | following additional general corporate
powers:
| ||||||
10 | (1) To sue and be sued, complain, and defend in its | ||||||
11 | corporate name.
| ||||||
12 | (2) To have a corporate seal, which may be altered at | ||||||
13 | pleasure, and
to use the same by causing it or a facsimile | ||||||
14 | thereof to be impressed or
affixed or in any manner reproduced, | ||||||
15 | provided that the affixing of a
corporate
seal to an instrument | ||||||
16 | shall not give the instrument additional force or effect,
or | ||||||
17 | change the construction thereof, and the use of a corporate | ||||||
18 | seal is not
mandatory.
| ||||||
19 | (3) To make, alter, amend, and repeal bylaws, not | ||||||
20 | inconsistent with
its charter or with law, for the | ||||||
21 | administration of the affairs of the bank.
If this Act does not | ||||||
22 | provide specific guidance in matters of corporate
governance, | ||||||
23 | the provisions of the Business Corporation Act of 1983 may be
| ||||||
24 | used if so provided in the bylaws, and if the bank is a limited | ||||||
25 | liability
company, the provisions of the Limited Liability | ||||||
26 | Company Act shall be used.
| ||||||
27 | (4) To elect or appoint and remove officers and agents of | ||||||
28 | the bank
and define their duties and fix their compensation.
| ||||||
29 | (5) To adopt and operate reasonable bonus plans, | ||||||
30 | profit-sharing
plans, stock-bonus plans, stock-option plans, | ||||||
31 | pension plans and similar
incentive plans for its directors, | ||||||
32 | officers and employees.
| ||||||
33 | (5.1) To manage, operate and administer a fund for the | ||||||
34 | investment of funds
by a public agency or agencies, including | ||||||
35 | any unit of local government or
school district, or any person. |
| |||||||
| |||||||
1 | The fund for a public agency shall invest in
the same type of | ||||||
2 | investments and be subject to the same limitations provided
for | ||||||
3 | the investment of public funds. The fund for public agencies | ||||||
4 | shall
maintain a separate ledger showing the amount of | ||||||
5 | investment for each public
agency in the fund. "Public funds" | ||||||
6 | and "public agency" as used in this Section
shall have the | ||||||
7 | meanings ascribed to them in Section 1 of the Public Funds
| ||||||
8 | Investment Act.
| ||||||
9 | (6) To make reasonable donations for the public welfare or | ||||||
10 | for charitable,
scientific, religious or educational purposes.
| ||||||
11 | (7) To borrow or incur an obligation; and to pledge its | ||||||
12 | assets:
| ||||||
13 | (a) to secure its borrowings, its lease of personal or | ||||||
14 | real property or
its other nondeposit obligations;
| ||||||
15 | (b) to enable it to act as agent for the sale of | ||||||
16 | obligations of the
United States;
| ||||||
17 | (c) to secure deposits of public money of the United | ||||||
18 | States,
whenever required by the laws of the United States, | ||||||
19 | including without
being limited to, revenues and funds the | ||||||
20 | deposit of which is subject to
the control or regulation of | ||||||
21 | the United States or any of its officers,
agents, or | ||||||
22 | employees and Postal Savings funds;
| ||||||
23 | (d) to secure deposits of public money of any state or | ||||||
24 | of any
political corporation or subdivision thereof
| ||||||
25 | including, without being limited to, revenues and funds the | ||||||
26 | deposit of which
is subject to the control or regulation of | ||||||
27 | any state or of any political
corporation or subdivisions | ||||||
28 | thereof or of any of their officers, agents, or
employees;
| ||||||
29 | (e) to secure deposits of money whenever required by | ||||||
30 | the National
Bankruptcy Act;
| ||||||
31 | (f) (blank); and
| ||||||
32 | (g) to secure trust funds commingled with the bank's | ||||||
33 | funds, whether
deposited by the bank or an affiliate of the | ||||||
34 | bank, pursuant to Section 2-8 of
the Corporate Fiduciary | ||||||
35 | Act.
| ||||||
36 | (8) To own, possess, and carry as assets all or part of the |
| |||||||
| |||||||
1 | real
estate necessary in or with which to do its banking | ||||||
2 | business, either
directly or indirectly through the ownership | ||||||
3 | of all or part of the
capital stock, shares or interests in any | ||||||
4 | corporation, association,
trust engaged in holding any part or | ||||||
5 | parts or all of the bank
premises, engaged in such business and | ||||||
6 | in conducting a safe
deposit business in the premises or part | ||||||
7 | of them, or engaged in any activity
that the bank is permitted | ||||||
8 | to conduct in a subsidiary pursuant to paragraph
(12) of this | ||||||
9 | Section 5.
| ||||||
10 | (9) To own, possess, and carry as assets other real estate | ||||||
11 | to
which it may obtain title in the collection of its debts or | ||||||
12 | that was
formerly used as a part of the bank premises, but | ||||||
13 | title to
any real estate except as herein permitted shall not | ||||||
14 | be retained by the
bank, either directly or by or through a | ||||||
15 | subsidiary, as permitted by
subsection (12) of this Section for | ||||||
16 | a total period of more than 10
years
after acquiring title, | ||||||
17 | either directly or indirectly.
| ||||||
18 | (10) To do any act, including the acquisition of stock, | ||||||
19 | necessary to
obtain insurance of its deposits, or part thereof, | ||||||
20 | and any act necessary
to obtain a guaranty, in whole or in | ||||||
21 | part, of any of its loans or
investments by the United States | ||||||
22 | or any agency thereof, and any act
necessary to sell or | ||||||
23 | otherwise dispose of any of its loans or
investments to the | ||||||
24 | United States or any agency thereof, and to acquire
and hold | ||||||
25 | membership in the Federal Reserve System.
| ||||||
26 | (11) Notwithstanding any other provisions of this Act or | ||||||
27 | any
other law, to do any act
and to own, possess, and carry as | ||||||
28 | assets property of the character,
including stock, that is at | ||||||
29 | the time authorized or permitted to
national banks by an Act of | ||||||
30 | Congress, but subject always to the same
limitations and | ||||||
31 | restrictions as are applicable to national banks by the
| ||||||
32 | pertinent federal law and subject to applicable provisions of | ||||||
33 | the
Financial Institutions Insurance Sales Law.
| ||||||
34 | (12) To own, possess, and carry as assets stock of one or | ||||||
35 | more
corporations that is, or are, engaged in one or more of | ||||||
36 | the
following businesses:
|
| |||||||
| |||||||
1 | (a) holding title to and administering assets acquired
| ||||||
2 | as a result of the collection or liquidating of loans, | ||||||
3 | investments, or
discounts; or
| ||||||
4 | (b) holding title to and administering personal | ||||||
5 | property acquired by
the bank, directly or indirectly | ||||||
6 | through a subsidiary, for the
purpose of leasing to others, | ||||||
7 | provided the lease or leases and the
investment of the | ||||||
8 | bank, directly or through a subsidiary, in that
personal | ||||||
9 | property otherwise comply with Section 35.1 of this Act; or
| ||||||
10 | (c) carrying on or administering any of the activities | ||||||
11 | excepting the
receipt of deposits or the payment of checks | ||||||
12 | or other orders for the
payment of money in which a bank | ||||||
13 | may engage in carrying on its general
banking business; | ||||||
14 | provided, however, that nothing contained in this
| ||||||
15 | paragraph (c) shall be deemed to permit a bank organized | ||||||
16 | under this Act or
subject hereto to do, either directly or | ||||||
17 | indirectly through any
subsidiary, any act, including the | ||||||
18 | making of any loan or investment, or to
own, possess, or | ||||||
19 | carry as assets any property that if done by or owned,
| ||||||
20 | possessed, or carried by the State bank would be in | ||||||
21 | violation of or
prohibited by any provision of this Act.
| ||||||
22 | The provisions of this subsection (12) shall not apply to | ||||||
23 | and shall not
be deemed to limit the powers of a State bank | ||||||
24 | with respect to the
ownership, possession, and carrying of | ||||||
25 | stock that a State bank is permitted to
own, possess, or carry | ||||||
26 | under this Act.
| ||||||
27 | Any bank intending to establish a subsidiary under this | ||||||
28 | subsection
(12) shall give written notice to the Commissioner | ||||||
29 | 60 days prior to the
subsidiary's commencing of business or, as | ||||||
30 | the case may be, prior to
acquiring stock in a corporation that | ||||||
31 | has already commenced business. After
receiving the notice, the | ||||||
32 | Commissioner may waive or reduce the balance of the
60 day | ||||||
33 | notice period. The
Commissioner may specify the form of the | ||||||
34 | notice and may promulgate rules
and regulations to administer | ||||||
35 | this subsection (12).
| ||||||
36 | (13) To accept for payment at a future date not exceeding |
| |||||||
| |||||||
1 | one year
from the date of acceptance, drafts drawn upon it by | ||||||
2 | its customers; and
to issue, advise, or confirm letters of | ||||||
3 | credit authorizing the holders
thereof to draw drafts upon it | ||||||
4 | or its correspondents.
| ||||||
5 | (14) To own and lease personal property acquired by the | ||||||
6 | bank at the
request of a prospective lessee and upon the | ||||||
7 | agreement of that person to
lease the personal property | ||||||
8 | provided that the lease, the agreement
with respect thereto, | ||||||
9 | and the amount of the investment of the bank in
the property | ||||||
10 | comply with Section 35.1 of this Act.
| ||||||
11 | (15) (a) To establish and maintain, in addition to the main
| ||||||
12 | banking premises, branches offering any banking services | ||||||
13 | permitted at the main
banking premises of a State bank.
| ||||||
14 | (b) To establish and maintain, after May 31, 1997, | ||||||
15 | branches in
another state that may conduct any activity in | ||||||
16 | that state that is authorized or
permitted for any bank | ||||||
17 | that has a banking charter issued by that state, subject
to | ||||||
18 | the same limitations and restrictions that are applicable | ||||||
19 | to banks chartered
by that state.
| ||||||
20 | (16) (Blank).
| ||||||
21 | (17) To establish and maintain terminals, as authorized by | ||||||
22 | the
Electronic Fund Transfer Act.
| ||||||
23 | (18) To establish and maintain temporary service booths at | ||||||
24 | any
International Fair held in this State which is approved by | ||||||
25 | the United
States Department of Commerce, for the duration of | ||||||
26 | the international fair
for the sole purpose of providing a | ||||||
27 | convenient place for foreign trade
customers at the fair to | ||||||
28 | exchange their home countries' currency into
United States | ||||||
29 | currency or the converse. This power shall not be construed
as | ||||||
30 | establishing a new place or change of location for the bank | ||||||
31 | providing
the service booth.
| ||||||
32 | (19) To indemnify its officers, directors, employees, and
| ||||||
33 | agents, as authorized for corporations under Section 8.75 of | ||||||
34 | the
Business Corporation Act of 1983.
| ||||||
35 | (20) To own, possess, and carry as assets stock of, or be | ||||||
36 | or become a
member of, any corporation, mutual company, |
| |||||||
| |||||||
1 | association, trust, or other
entity formed exclusively for the | ||||||
2 | purpose of providing directors' and
officers' liability and | ||||||
3 | bankers' blanket bond insurance or reinsurance
to and for the | ||||||
4 | benefit of the stockholders, members, or beneficiaries, or | ||||||
5 | their
assets or businesses, or their officers, directors, | ||||||
6 | employees, or agents, and
not to or for the benefit of any | ||||||
7 | other person or entity or the public
generally.
| ||||||
8 | (21) To make debt or equity investments in corporations or | ||||||
9 | projects,
whether for profit or not for profit, designed to | ||||||
10 | promote the development
of the community and its welfare, | ||||||
11 | provided that the aggregate investment in
all of these | ||||||
12 | corporations and in all of these projects does not exceed 10% | ||||||
13 | of
the
unimpaired capital and unimpaired surplus of the bank | ||||||
14 | and provided that
this
limitation shall not apply to | ||||||
15 | creditworthy loans by the bank to those
corporations or | ||||||
16 | projects. Upon written application to the Commissioner, a
bank | ||||||
17 | may make an investment that would, when aggregated with all | ||||||
18 | other
such investments, exceed 10% of the unimpaired capital | ||||||
19 | and
unimpaired
surplus of the
bank. The Commissioner may | ||||||
20 | approve the investment if he is of the opinion
and finds that | ||||||
21 | the proposed investment will not have a material adverse
effect | ||||||
22 | on the safety and soundness of the bank.
| ||||||
23 | (22) To own, possess, and carry as assets the stock of a | ||||||
24 | corporation
engaged in the ownership or operation of a travel | ||||||
25 | agency or to operate a
travel agency as a part of its business.
| ||||||
26 | (23) With respect to affiliate facilities:
| ||||||
27 | (a) to conduct at affiliate facilities for and on | ||||||
28 | behalf of another
commonly owned bank, if so
authorized by | ||||||
29 | the other bank, all transactions that the other bank is
| ||||||
30 | authorized or permitted to perform; and
| ||||||
31 | (b) to authorize a commonly owned bank to conduct for | ||||||
32 | and on behalf of
it any of the transactions it is | ||||||
33 | authorized or permitted to perform at one or
more
affiliate | ||||||
34 | facilities.
| ||||||
35 | Any bank intending to conduct or to authorize a commonly | ||||||
36 | owned bank to
conduct at an affiliate facility any of the |
| |||||||
| |||||||
1 | transactions specified in this
paragraph (23) shall give | ||||||
2 | written notice to the Commissioner at least 30
days before any | ||||||
3 | such transaction is conducted at the affiliate facility.
| ||||||
4 | (24) To act as the agent for any fire, life, or other | ||||||
5 | insurance company
authorized by the State of Illinois, by | ||||||
6 | soliciting and selling insurance and
collecting premiums on | ||||||
7 | policies issued by such company; and to
receive for services so | ||||||
8 | rendered such fees or commissions as may be agreed upon
between | ||||||
9 | the bank and the insurance company for which it may act as
| ||||||
10 | agent; provided, however, that no such bank shall in any case | ||||||
11 | assume or
guarantee the payment of any premium on insurance | ||||||
12 | policies issued through its
agency by its principal; and | ||||||
13 | provided further, that the bank shall not
guarantee the truth | ||||||
14 | of any statement made by an assured in filing his
application | ||||||
15 | for insurance.
| ||||||
16 | (25) Notwithstanding any other provisions of this Act or | ||||||
17 | any other law,
to offer any product or service that is at the | ||||||
18 | time authorized or permitted to
any federally insured savings | ||||||
19 | association or out-of-state bank
depository institution by | ||||||
20 | applicable law,
but subject always to the same limitations and | ||||||
21 | restrictions that are applicable to the federally insured | ||||||
22 | depository institution for the product or service by such | ||||||
23 | applicable law,
provided that powers
conferred only by this | ||||||
24 | subsection (25):
| ||||||
25 | (a) (blank);
shall always be subject to the same | ||||||
26 | limitations and restrictions that
are applicable to the | ||||||
27 | insured savings association or out-of-state bank for
the | ||||||
28 | product or service by
such applicable law;
| ||||||
29 | (b)
shall be subject to applicable provisions of the | ||||||
30 | Financial
Institutions Insurance Sales Law;
| ||||||
31 | (c)
shall not include the right to own or conduct a | ||||||
32 | real estate brokerage
business for which a license would be | ||||||
33 | required under the laws of this State;
and
| ||||||
34 | (d) (blank);
shall not be construed to include the | ||||||
35 | establishment or maintenance of
a branch, nor shall they be | ||||||
36 | construed to limit the establishment or maintenance
of a |
| |||||||
| |||||||
1 | branch pursuant to subsection (11).
| ||||||
2 | (e) shall be subject to applicable provisions of the | ||||||
3 | High Risk Home Loan Act.
| ||||||
4 | Not less than 30 days before engaging in any activity under | ||||||
5 | the authority
of this subsection, a bank shall provide written | ||||||
6 | notice to the Commissioner of
its intent to engage in the | ||||||
7 | activity. The notice shall indicate the specific
federal or | ||||||
8 | state law, rule, regulation, or interpretation the bank intends | ||||||
9 | to
use as authority to engage in the activity.
| ||||||
10 | (Source: P.A. 92-483, eff.
8-23-01; 92-811, eff. 8-21-02; | ||||||
11 | 93-561; eff.1-1-04.)
| ||||||
12 | Section 99. Effective date. This Act takes effect upon | ||||||
13 | becoming law.
|