31 |
| Section 10. The Illinois Banking Act is amended by changing | 32 |
| Sections 2, 5, 10, 13.5, 18, 21.2, 46, 48, 49, and 71, and by | 33 |
| adding Section 16.8 as follows:
| 34 |
| (205 ILCS 5/2) (from Ch. 17, par. 302)
|
|
|
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SB3036 |
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LRB093 18472 SAS 44186 b |
|
| 1 |
| Sec. 2. General definitions. In this Act, unless the | 2 |
| context otherwise
requires, the following words and phrases | 3 |
| shall have the following meanings:
| 4 |
| "Accommodation party" shall have the meaning ascribed to | 5 |
| that term in
Section 3-419 of the Uniform Commercial Code.
| 6 |
| "Action" in the sense of a judicial proceeding includes | 7 |
| recoupments,
counterclaims, set-off, and any other proceeding | 8 |
| in which
rights are determined.
| 9 |
| "Affiliate facility" of a bank means a main banking | 10 |
| premises or branch
of another commonly owned bank.
The main | 11 |
| banking premises or any branch of a bank
may be an "affiliate | 12 |
| facility" with respect to one or more other commonly owned
| 13 |
| banks.
| 14 |
| "Appropriate federal banking agency" means the Federal | 15 |
| Deposit Insurance
Corporation, the Federal Reserve Bank of | 16 |
| Chicago, or the Federal Reserve Bank
of St. Louis, as | 17 |
| determined by federal law.
| 18 |
| "Bank" means any person engaged in the business of | 19 |
| receiving deposits, other than trust funds, that is | 20 |
| incorporated under the laws of this or any other state or which | 21 |
| is operating under the Code of Law for the District of | 22 |
| Columbia. For purposes of this Section, "trust funds" means | 23 |
| funds held in a fiduciary capacity and includes, without being | 24 |
| limited to, funds held as trustee, executor, administrator, | 25 |
| guardian, or agent
doing a banking business whether subject to | 26 |
| the
laws of this or any other jurisdiction .
| 27 |
| A "banking house", "branch", "branch bank" or "branch
| 28 |
| office" shall mean any place of business of a bank at which | 29 |
| deposits are
received, other than trust funds
checks paid, or | 30 |
| loans made , but shall not include any place at
which only | 31 |
| records thereof are made, posted, or kept. A place of business
| 32 |
| at which deposits are received , other than trust funds , checks | 33 |
| paid, or loans made shall not be
deemed to be a branch, branch | 34 |
| bank, or branch office if the place of
business is adjacent to | 35 |
| and connected with the main banking premises, or if
it is | 36 |
| separated from the main banking premises by not more than an |
|
|
|
SB3036 |
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LRB093 18472 SAS 44186 b |
|
| 1 |
| alley;
provided always that (i) if the place of business is | 2 |
| separated by an alley
from the main banking premises there is a | 3 |
| connection between the two by
public or private way or by | 4 |
| subterranean or overhead passage, and (ii) if
the place of | 5 |
| business is in a building not wholly occupied by the bank, the
| 6 |
| place of business shall not be within any office or room in | 7 |
| which any other
business or service of any kind or nature other | 8 |
| than the business of the
bank is conducted or carried on. A | 9 |
| place of business at which deposits are
received , checks paid, | 10 |
| or loans made shall not be deemed to be a branch,
branch bank, | 11 |
| or branch office (i) of any bank if the place is a terminal | 12 |
| established and maintained in accordance with
paragraph
(17) of | 13 |
| Section 5 of this Act, or (ii) of a commonly owned bank
by | 14 |
| virtue of
transactions conducted at that place on behalf of the | 15 |
| other commonly owned bank
under paragraph (23) of Section 5 of | 16 |
| this Act if the place is an affiliate
facility with respect to | 17 |
| the other bank.
| 18 |
| "Branch of an out-of-state bank" means a branch established | 19 |
| or maintained in
Illinois by an out-of-state bank as a result | 20 |
| of a merger between an Illinois
bank and the out-of-state bank | 21 |
| that occurs on or after May 31, 1997, or any
branch established | 22 |
| by the out-of-state bank following the merger.
| 23 |
| "Bylaws" means the bylaws of a bank that are adopted by the | 24 |
| bank's board of
directors or shareholders for the regulation | 25 |
| and management of the bank's
affairs. If the bank operates as a | 26 |
| limited liability company, however, "bylaws"
means the | 27 |
| operating
agreement of the bank.
| 28 |
| "Call report fee" means the fee to be paid to the
| 29 |
| Commissioner by each State bank pursuant to paragraph (a) of | 30 |
| subsection (3)
of Section 48 of this Act.
| 31 |
| "Composite rating" means the rating assigned to a state | 32 |
| bank by the Commissioner or by the state bank's appropriate | 33 |
| federal banking agency and accepted by the Commissioner, based | 34 |
| on a composite evaluation of individual performance components | 35 |
| as defined by the Uniform Financial Institutions Rating System | 36 |
| adopted by the Federal Financial Institutions Examination |
|
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SB3036 |
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LRB093 18472 SAS 44186 b |
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| 1 |
| Council, as now or hereafter amended.
| 2 |
| "Capital" includes the aggregate of outstanding capital | 3 |
| stock and
preferred stock.
| 4 |
| "Cash flow reserve account" means the account within the | 5 |
| books and records
of the Commissioner of Banks and Real Estate | 6 |
| used to
record funds designated to maintain a reasonable Bank | 7 |
| and Trust Company Fund
operating balance to meet agency | 8 |
| obligations on a timely basis.
| 9 |
| "Charter" includes the original charter and all amendments | 10 |
| thereto
and articles of merger or consolidation.
| 11 |
| "Commissioner" means the Commissioner of Banks and Real | 12 |
| Estate or a person
authorized by the Commissioner, the Office | 13 |
| of Banks and Real Estate
Act, or this Act to act in the | 14 |
| Commissioner's stead.
| 15 |
| "Commonly owned banks" means 2 or more banks that each | 16 |
| qualify as a bank
subsidiary of the same bank holding company | 17 |
| pursuant to Section 18 of the
Federal Deposit Insurance Act; | 18 |
| "commonly owned bank" refers to one of a group
of commonly | 19 |
| owned banks but only with respect to one or more of the other | 20 |
| banks
in the same group.
| 21 |
| "Community" means a city, village, or incorporated town and | 22 |
| also includes
the area served by the banking offices of a bank, | 23 |
| but need not be limited or
expanded to conform to the | 24 |
| geographic boundaries of units of local
government.
| 25 |
| "Company" means a corporation, limited liability company, | 26 |
| partnership,
business trust,
association, or similar | 27 |
| organization and, unless specifically excluded,
includes a | 28 |
| "State bank" and a "bank".
| 29 |
| "Consolidating bank" means a party to a consolidation.
| 30 |
| "Consolidation" takes place when 2 or more banks, or a | 31 |
| trust company and
a bank, are extinguished and by the same | 32 |
| process a new bank is created,
taking over the assets and | 33 |
| assuming the liabilities of the banks or trust
company passing | 34 |
| out of existence.
| 35 |
| "Continuing bank" means a merging bank, the charter of | 36 |
| which becomes the
charter of the resulting bank.
|
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SB3036 |
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LRB093 18472 SAS 44186 b |
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| 1 |
| "Converting bank" means a State bank converting to become a | 2 |
| national
bank, or a national bank converting to become a State | 3 |
| bank.
| 4 |
| "Converting trust company" means a trust company | 5 |
| converting to become a
State bank.
| 6 |
| "Court" means a court of competent jurisdiction.
| 7 |
| "Director" means a member of the board of directors of a | 8 |
| bank. In the case
of a manager-managed limited liability | 9 |
| company, however, "director" means a
manager of
the bank and, | 10 |
| in the case of a member-managed limited liability company,
| 11 |
| "director" means a member of the bank. The term "director" does | 12 |
| not include an
advisory director, honorary director, director | 13 |
| emeritus, or similar person,
unless the person is otherwise | 14 |
| performing
functions similar to those of a member of the board | 15 |
| of directors.
| 16 |
| "Eligible depository institution" means an insured savings | 17 |
| association
that is in default, an insured savings association | 18 |
| that is in danger of
default, a State or national bank that is | 19 |
| in default or a State or
national bank that is in danger of | 20 |
| default, as those terms are defined in this
Section, or a new | 21 |
| bank as that term defined in Section 11(m) of the Federal
| 22 |
| Deposit Insurance Act or a bridge bank as that term is defined | 23 |
| in Section 11(n)
of the Federal Deposit Insurance Act or a new | 24 |
| federal savings association
authorized under Section | 25 |
| 11(d)(2)(f) of the Federal Deposit Insurance Act.
| 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 |
|
|
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SB3036 |
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LRB093 18472 SAS 44186 b |
|
| 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 |
|
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SB3036 |
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LRB093 18472 SAS 44186 b |
|
| 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 |
|
|
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SB3036 |
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LRB093 18472 SAS 44186 b |
|
| 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.
|
|
|
|
SB3036 |
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LRB093 18472 SAS 44186 b |
|
| 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.
|
|
|
|
SB3036 |
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LRB093 18472 SAS 44186 b |
|
| 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 |
|
|
|
SB3036 |
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LRB093 18472 SAS 44186 b |
|
| 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 |
|
|
|
SB3036 |
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LRB093 18472 SAS 44186 b |
|
| 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. |
|
|
|
SB3036 |
- 15 - |
LRB093 18472 SAS 44186 b |
|
| 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 |
|
|
|
SB3036 |
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LRB093 18472 SAS 44186 b |
|
| 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:
|
|
|
|
SB3036 |
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LRB093 18472 SAS 44186 b |
|
| 1 |
| (a) holding title to and administering assets acquired
| 2 |
| as a result of the collection or liquidating of loans, | 3 |
| investments, or
discounts , subject to the following | 4 |
| conditions: | 5 |
| (i) Holding period. A bank subsidiary may not | 6 |
| hold real estate for more than the time period allowed | 7 |
| pursuant to subsection (9) of this Section. A bank | 8 |
| subsidiary holding securities held in satisfaction of | 9 |
| debts previously contracted must divest as soon as | 10 |
| possible consistent with obtaining a reasonable | 11 |
| return, not to exceed 5 years from the date that | 12 |
| ownership of the securities was originally transferred | 13 |
| to the bank. In the case of securities held in | 14 |
| satisfaction of debts previously contracted, the | 15 |
| Commissioner may extend the holding period for up to an | 16 |
| additional 5 years if a bank provides a clearly | 17 |
| convincing demonstration as to why an additional | 18 |
| holding period is needed. | 19 |
| (ii) Accounting treatment. A bank shall | 20 |
| account for securities held in satisfaction of debts | 21 |
| previously contracted in accordance with Generally | 22 |
| Accepted Accounting Principles. | 23 |
| (iii) Non-speculative purpose. A bank may not | 24 |
| hold securities held in satisfaction of debts | 25 |
| previously contracted for speculative purposes ; or
| 26 |
| (b) holding title to and administering personal | 27 |
| property acquired by
the bank, directly or indirectly | 28 |
| through a subsidiary, for the
purpose of leasing to others, | 29 |
| provided the lease or leases and the
investment of the | 30 |
| bank, directly or through a subsidiary, in that
personal | 31 |
| property otherwise comply with Section 35.1 of this Act; or
| 32 |
| (c) carrying on or administering any of the activities | 33 |
| excepting the
receipt of deposits or the payment of checks | 34 |
| or other orders for the
payment of money in which a bank | 35 |
| may engage in carrying on its general
banking business; | 36 |
| provided, however, that nothing contained in this
|
|
|
|
SB3036 |
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LRB093 18472 SAS 44186 b |
|
| 1 |
| paragraph (c) shall be deemed to permit a bank organized | 2 |
| under this Act or
subject hereto to do, either directly or | 3 |
| indirectly through any
subsidiary, any act, including the | 4 |
| making of any loan or investment, or to
own, possess, or | 5 |
| carry as assets any property that if done by or owned,
| 6 |
| possessed, or carried by the State bank would be in | 7 |
| violation of or
prohibited by any provision of this Act.
| 8 |
| The provisions of this subsection (12) shall not apply to | 9 |
| and shall not
be deemed to limit the powers of a State bank | 10 |
| with respect to the
ownership, possession, and carrying of | 11 |
| stock that a State bank is permitted to
own, possess, or carry | 12 |
| under this Act.
| 13 |
| Any bank intending to establish a subsidiary under this | 14 |
| subsection
(12) shall give written notice to the Commissioner | 15 |
| 60 days prior to the
subsidiary's commencing of business or, as | 16 |
| the case may be, prior to
acquiring stock in a corporation that | 17 |
| has already commenced business. After
receiving the notice, the | 18 |
| Commissioner may waive or reduce the balance of the
60 day | 19 |
| notice period. The
Commissioner may specify the form of the | 20 |
| notice and may promulgate rules
and regulations to administer | 21 |
| this subsection (12).
| 22 |
| (13) To accept for payment at a future date not exceeding | 23 |
| one year
from the date of acceptance, drafts drawn upon it by | 24 |
| its customers; and
to issue, advise, or confirm letters of | 25 |
| credit authorizing the holders
thereof to draw drafts upon it | 26 |
| or its correspondents.
| 27 |
| (14) To own and lease personal property acquired by the | 28 |
| bank at the
request of a prospective lessee and upon the | 29 |
| agreement of that person to
lease the personal property | 30 |
| provided that the lease, the agreement
with respect thereto, | 31 |
| and the amount of the investment of the bank in
the property | 32 |
| comply with Section 35.1 of this Act.
| 33 |
| (15) (a) To establish and maintain, in addition to the main
| 34 |
| banking premises, branches offering any banking services | 35 |
| permitted at the main
banking premises of a State bank.
| 36 |
| (b) To establish and maintain, after May 31, 1997, |
|
|
|
SB3036 |
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LRB093 18472 SAS 44186 b |
|
| 1 |
| branches in
another state that may conduct any activity in | 2 |
| that state that is authorized or
permitted for any bank | 3 |
| that has a banking charter issued by that state, subject
to | 4 |
| the same limitations and restrictions that are applicable | 5 |
| to banks chartered
by that state.
| 6 |
| (16) (Blank).
| 7 |
| (17) To establish and maintain terminals, as authorized by | 8 |
| the
Electronic Fund Transfer Act.
| 9 |
| (18) To establish and maintain temporary service booths at | 10 |
| any
International Fair held in this State which is approved by | 11 |
| the United
States Department of Commerce, for the duration of | 12 |
| the international fair
for the sole purpose of providing a | 13 |
| convenient place for foreign trade
customers at the fair to | 14 |
| exchange their home countries' currency into
United States | 15 |
| currency or the converse. This power shall not be construed
as | 16 |
| establishing a new place or change of location for the bank | 17 |
| providing
the service booth.
| 18 |
| (19) To indemnify its officers, directors, employees, and
| 19 |
| agents, as authorized for corporations under Section 8.75 of | 20 |
| the
Business Corporation Act of 1983.
| 21 |
| (20) To own, possess, and carry as assets stock of, or be | 22 |
| or become a
member of, any corporation, mutual company, | 23 |
| association, trust, or other
entity formed exclusively for the | 24 |
| purpose of providing directors' and
officers' liability and | 25 |
| bankers' blanket bond insurance or reinsurance
to and for the | 26 |
| benefit of the stockholders, members, or beneficiaries, or | 27 |
| their
assets or businesses, or their officers, directors, | 28 |
| employees, or agents, and
not to or for the benefit of any | 29 |
| other person or entity or the public
generally.
| 30 |
| (21) To make debt or equity investments in corporations or | 31 |
| projects,
whether for profit or not for profit, designed to | 32 |
| promote the development
of the community and its welfare, | 33 |
| provided that the aggregate investment in
all of these | 34 |
| corporations and in all of these projects does not exceed 10% | 35 |
| of
the
unimpaired capital and unimpaired surplus of the bank | 36 |
| and provided that
this
limitation shall not apply to |
|
|
|
SB3036 |
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LRB093 18472 SAS 44186 b |
|
| 1 |
| creditworthy loans by the bank to those
corporations or | 2 |
| projects. Upon written application to the Commissioner, a
bank | 3 |
| may make an investment that would, when aggregated with all | 4 |
| other
such investments, exceed 10% of the unimpaired capital | 5 |
| and
unimpaired
surplus of the
bank. The Commissioner may | 6 |
| approve the investment if he is of the opinion
and finds that | 7 |
| the proposed investment will not have a material adverse
effect | 8 |
| on the safety and soundness of the bank.
| 9 |
| (22) To own, possess, and carry as assets the stock of a | 10 |
| corporation
engaged in the ownership or operation of a travel | 11 |
| agency or to operate a
travel agency as a part of its business.
| 12 |
| (23) With respect to affiliate facilities:
| 13 |
| (a) to conduct at affiliate facilities for and on | 14 |
| behalf of another
commonly owned bank, if so
authorized by | 15 |
| the other bank, all transactions that the other bank is
| 16 |
| authorized or permitted to perform; and
| 17 |
| (b) to authorize a commonly owned bank to conduct for | 18 |
| and on behalf of
it any of the transactions it is | 19 |
| authorized or permitted to perform at one or
more
affiliate | 20 |
| facilities.
| 21 |
| Any bank intending to conduct or to authorize a commonly | 22 |
| owned bank to
conduct at an affiliate facility any of the | 23 |
| transactions specified in this
paragraph (23) shall give | 24 |
| written notice to the Commissioner at least 30
days before any | 25 |
| such transaction is conducted at the affiliate facility.
| 26 |
| (24) To act as the agent for any fire, life, or other | 27 |
| insurance company
authorized by the State of Illinois, by | 28 |
| soliciting and selling insurance and
collecting premiums on | 29 |
| policies issued by such company; and to
receive for services so | 30 |
| rendered such fees or commissions as may be agreed upon
between | 31 |
| the bank and the insurance company for which it may act as
| 32 |
| agent; provided, however, that no such bank shall in any case | 33 |
| assume or
guarantee the payment of any premium on insurance | 34 |
| policies issued through its
agency by its principal; and | 35 |
| provided further, that the bank shall not
guarantee the truth | 36 |
| of any statement made by an assured in filing his
application |
|
|
|
SB3036 |
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LRB093 18472 SAS 44186 b |
|
| 1 |
| for insurance.
| 2 |
| (25) Notwithstanding any other provisions of this Act or | 3 |
| any other law,
to offer any product or service that is at the | 4 |
| time authorized or permitted to
any insured savings association | 5 |
| or out-of-state bank by applicable law,
provided that powers
| 6 |
| conferred only by this subsection (25):
| 7 |
| (a) shall always be subject to the same limitations and | 8 |
| restrictions that
are applicable to the insured savings | 9 |
| association or out-of-state bank for
the product or service | 10 |
| by
such applicable law;
| 11 |
| (b) shall be subject to applicable provisions of the | 12 |
| Financial
Institutions Insurance Sales Law;
| 13 |
| (c) shall not include the right to own or conduct a | 14 |
| real estate brokerage
business for which a license would be | 15 |
| required under the laws of this State;
and
| 16 |
| (d) shall not be construed to include the establishment | 17 |
| or maintenance of
a branch, nor shall they be construed to | 18 |
| limit the establishment or maintenance
of a branch pursuant | 19 |
| to subsection (11).
| 20 |
| Not less than 30 days before engaging in any activity under | 21 |
| the authority
of this subsection, a bank shall provide written | 22 |
| notice to the Commissioner of
its intent to engage in the | 23 |
| activity. The notice shall indicate the specific
federal or | 24 |
| state law, rule, regulation, or interpretation the bank intends | 25 |
| to
use as authority to engage in the activity.
| 26 |
| (Source: P.A. 92-483, eff.
8-23-01; 92-811, eff. 8-21-02; | 27 |
| 93-561; eff.1-1-04.)
| 28 |
| (205 ILCS 5/10) (from Ch. 17, par. 317)
| 29 |
| Sec. 10. Permit to organize.
| 30 |
| (a) Upon the filing of an application for a
permit to | 31 |
| organize, the Commissioner shall investigate the truth of the
| 32 |
| statements therein and shall consider the proposed bank's | 33 |
| capital
structure, its future earnings prospects, the general | 34 |
| character, experience,
and qualifications of its
proposed | 35 |
| management, its proposed plan of operation, and the
convenience
|
|
|
|
SB3036 |
- 22 - |
LRB093 18472 SAS 44186 b |
|
| 1 |
| and needs of the area sought to be
served, and notwithstanding | 2 |
| the provisions of Section 7 of this Act, the
Commissioner shall | 3 |
| not approve the application and issue a permit to
organize | 4 |
| unless he shall be of the opinion and finds:
| 5 |
| (1) that the proposed capital at least meets the | 6 |
| minimum requirements of
this Act determined by the | 7 |
| Commissioner pursuant to Section 7 of this Act
including | 8 |
| additional capital necessitated by the circumstances of | 9 |
| the
proposed bank including its size, scope of operations | 10 |
| and market in which
it proposes to operate;
| 11 |
| (2) that the future earnings prospects are favorable;
| 12 |
| (3) that the general character, experience, and | 13 |
| qualifications of its
proposed management and its proposed | 14 |
| plan of operation are such
as
to
assure reasonable promise | 15 |
| of successful, safe and sound operation;
| 16 |
| (4) (Blank)
that the name of the proposed bank is not | 17 |
| the same as or deceptively
similar to a name reserved with | 18 |
| the Commissioner's office under
Section 9.5 or to the name | 19 |
| of any other bank then operating in this State ;
and
| 20 |
| (5) that the convenience and needs of the area sought | 21 |
| to be served by
the proposed bank will be promoted.
| 22 |
| (b) The Commissioner shall revoke the permit to organize | 23 |
| and order
liquidation
of any funds collected in the event that | 24 |
| the organizers do not obtain a
charter from
the Commissioner | 25 |
| authorizing the bank to commence business within 6 months
from | 26 |
| the date of the issuance of the permit, unless a request has | 27 |
| been
submitted,
in writing, to the Commissioner for an | 28 |
| extension and the request has been
approved.
| 29 |
| (c) The Commissioner may impose such terms and conditions, | 30 |
| if any, on the
issuance of the permit to organize as the | 31 |
| Commissioner deems appropriate and
necessary
for the | 32 |
| organization of the bank.
| 33 |
| (Source: P.A. 91-452, eff. 1-1-00; 92-483, eff. 8-23-01.)
| 34 |
| (205 ILCS 5/13.5)
| 35 |
| Sec. 13.5. Formation and merger of interim banks.
|
|
|
|
SB3036 |
- 23 - |
LRB093 18472 SAS 44186 b |
|
| 1 |
| (a) An interim bank may be chartered as a State bank for | 2 |
| the exclusive
purpose
of accomplishing a corporate | 3 |
| restructuring through merger with an existing
State bank, | 4 |
| national bank, trust company, or an insured savings
| 5 |
| association. An interim bank shall be chartered
and merged | 6 |
| pursuant to the
provisions of this Section. The interim bank | 7 |
| shall not accept deposits, make
loans, pay checks, or engage in | 8 |
| the general banking business or any part
thereof, and shall not | 9 |
| be subject to the provisions of this Act other than
those set | 10 |
| forth in this Section; provided, however, that if the interim | 11 |
| bank
becomes the resulting bank in a merger, such resulting | 12 |
| bank shall have all of
the powers, rights, and duties of a | 13 |
| State bank and must comply with all
applicable provisions of | 14 |
| this Act.
| 15 |
| (b) An interim State bank may be organized upon application | 16 |
| by 5 or more
incorporators or by a bank holding company. The | 17 |
| application shall be made on
forms prescribed by the | 18 |
| Commissioner which shall request, at a minimum, the
following | 19 |
| information:
| 20 |
| (1) the names and addresses of the incorporators;
| 21 |
| (2) the proposed name and address of the interim bank;
| 22 |
| (3) the name and address of all banks with which the | 23 |
| interim bank will
be merging;
| 24 |
| (4) a copy of the merger agreement by which the interim | 25 |
| bank will be
merged with the banks identified in item (3) | 26 |
| containing
the same information required in merger | 27 |
| agreements pursuant to subsection (1)
of Section 22 of this | 28 |
| Act; and
| 29 |
| (5) an acknowledgement that the interim bank shall not | 30 |
| engage in the
general banking business or any part thereof | 31 |
| unless and until the interim bank
becomes the resulting | 32 |
| bank in a merger.
| 33 |
| (c) The merger agreement must be approved by all of the | 34 |
| incorporators of the
interim bank and must be approved by the | 35 |
| existing State bank with which the
interim bank will merge, as | 36 |
| required by Section 22 of this Act.
|
|
|
|
SB3036 |
- 24 - |
LRB093 18472 SAS 44186 b |
|
| 1 |
| (d) Upon receipt of the application to organize the interim | 2 |
| bank and the
merger agreement submitted pursuant to this | 3 |
| Section and Section 22 of this Act,
the Commissioner may issue | 4 |
| a charter to the interim bank and approve the merger
agreement | 5 |
| if the Commissioner makes the findings set forth in subsection | 6 |
| (3) of
Section 22 of this Act. The interim bank's charter shall | 7 |
| not take effect
until, and shall only be effective for purposes | 8 |
| of, the merger.
| 9 |
| (e) Nothing in this Section affects the obligations of an | 10 |
| existing State
bank
with
which the interim bank will merge, or | 11 |
| the rights of minority or dissenting
shareholders of the | 12 |
| existing State bank, in connection with the approval,
| 13 |
| execution, and accomplishment of a merger agreement as provided | 14 |
| elsewhere in
this Act.
| 15 |
| (f) Nothing in this Section affects the obligations of the | 16 |
| parties to obtain the Commissioner's approval under Section 18 | 17 |
| of this Act if the interim bank merger results in a change of | 18 |
| control of the resulting bank.
| 19 |
| (Source: P.A. 92-483, eff. 8-23-01.)
| 20 |
| (205 ILCS 5/16.8 new)
| 21 |
| Sec. 16.8. Prior approval required for directors, senior | 22 |
| executive officers. | 23 |
| (a) A state bank shall obtain the Commissioner's prior | 24 |
| written approval before adding an individual to the board of | 25 |
| directors or the employing an individual as a senior executive | 26 |
| officer of the bank if: | 27 |
| (1) the state bank, at its last regular examination, | 28 |
| was assigned a Composite Rating of 3, 4, or 5, or | 29 |
| (2) the Commissioner determines that such prior | 30 |
| approval is appropriate. | 31 |
| (b) A state bank may not add an individual to the board of | 32 |
| directors or employ an individual as a senior executive officer | 33 |
| if the Commissioner issues a notice of disapproval of such | 34 |
| addition or employment. | 35 |
| (c) The Commissioner may prescribe, by regulation, |
|
|
|
SB3036 |
- 25 - |
LRB093 18472 SAS 44186 b |
|
| 1 |
| conditions under which the prior approval requirement of | 2 |
| subsection (a) of this Section may be waived in the event of | 3 |
| extraordinary circumstances. | 4 |
| (d) Waivers issued under subsection (c) shall not affect | 5 |
| the authority of the Commissioner to issue notices of | 6 |
| disapproval of such additions or employment of such individuals | 7 |
| within 30 days after each such waiver. | 8 |
| (e) The Commissioner shall issue a notice of disapproval if | 9 |
| the competence, experience, character, or integrity of the | 10 |
| individual with respect to whom the request for approval is | 11 |
| submitted indicates that it would not be in the best interests | 12 |
| of the depositors of the depository institution or in the best | 13 |
| interest of the public to permit the individual to be employed | 14 |
| by, or associated with, the state bank.
| 15 |
| (205 ILCS 5/18) (from Ch. 17, par. 325)
| 16 |
| Sec. 18. Change in control.
| 17 |
| (a) Before a change may occur in the ownership of | 18 |
| outstanding
stock of any State bank, whether by sale and | 19 |
| purchase, gift, bequest or
inheritance, or any other means, | 20 |
| including the acquisition of stock of the
State bank by any | 21 |
| bank holding company, which will result in control or a
change | 22 |
| in the
control of the bank or before a change in the control of | 23 |
| a holding company
having control of the outstanding stock of a | 24 |
| State bank whether by sale and
purchase, gift, bequest or | 25 |
| inheritance, or any other means, including the
acquisition of | 26 |
| stock of such holding company by any other bank holding
| 27 |
| company, which will result
in control or a change in control of | 28 |
| the bank or holding company, or before a
transfer of | 29 |
| substantially all the assets or liabilities of the State bank,
| 30 |
| the
Commissioner shall be of the opinion and find:
| 31 |
| (1) that the general character of proposed management
| 32 |
| or of the person desiring to purchase substantially all the | 33 |
| assets or
to assume substantially all the liabilities of | 34 |
| the State bank, after the
change in control, is such as to | 35 |
| assure reasonable promise of successful,
safe and sound |
|
|
|
SB3036 |
- 26 - |
LRB093 18472 SAS 44186 b |
|
| 1 |
| operation;
| 2 |
| (1.1) that depositors' interests will not be
| 3 |
| jeopardized by the purchase or assumption and that adequate | 4 |
| provision has
been made for all liabilities as required for | 5 |
| a voluntary liquidation under
Section 68 of this Act;
| 6 |
| (2) that the future earnings prospects
of the person | 7 |
| desiring
to purchase substantially all assets or to assume | 8 |
| substantially all the
liabilities of the State bank, after | 9 |
| the proposed change in
control, are favorable;
| 10 |
| (3) that any prior involvement by the persons proposing | 11 |
| to obtain
control, to purchase substantially all the | 12 |
| assets, or to assume substantially
all the liabilities of | 13 |
| the State bank or by the proposed management personnel
with | 14 |
| any other financial
institution, whether as stockholder, | 15 |
| director, officer or customer, was
conducted in a safe and | 16 |
| sound manner; and
| 17 |
| (4) that if the acquisition is being made by a bank | 18 |
| holding company,
the acquisition is authorized under the | 19 |
| Illinois Bank Holding Company Act
of 1957.
| 20 |
| (a-5) In cases where a person acquires stock of a State | 21 |
| bank in satisfaction of a debt previously contracted in good | 22 |
| faith and the acquisition results in control or a change in | 23 |
| control of the State bank, the person shall, within 90 days | 24 |
| after the acquisition, file with the Commissioner notice of the | 25 |
| change in control containing information enabling the | 26 |
| Commissioner to make the findings provided in subsection (a) of | 27 |
| this Section.
| 28 |
| (b) Persons desiring to purchase control of an existing | 29 |
| state bank, to
purchase substantially all the assets, or to | 30 |
| assume substantially all the
liabilities of the State bank | 31 |
| shall, prior to that purchase, submit to the
Commissioner:
| 32 |
| (1) a statement of financial worth;
| 33 |
| (2) satisfactory evidence that any prior involvement | 34 |
| by the persons
and the proposed management personnel with | 35 |
| any other financial institution,
whether as stockholder, | 36 |
| director, officer or customer, was conducted in a
safe and |
|
|
|
SB3036 |
- 27 - |
LRB093 18472 SAS 44186 b |
|
| 1 |
| sound manner; and
| 2 |
| (3) such other relevant information as the | 3 |
| Commissioner may request to
substantiate the findings | 4 |
| under subsection (a) of this Section.
| 5 |
| A person who has submitted information to the Commissioner | 6 |
| pursuant to
this subsection (b) is under a continuing | 7 |
| obligation until the Commissioner
takes action on the | 8 |
| application to immediately supplement
that
information if | 9 |
| there are any material changes in the information previously
| 10 |
| furnished
or if there are any material changes in any | 11 |
| circumstances that may affect the
Commissioner's opinion and | 12 |
| findings. In addition, a person submitting
information
under | 13 |
| this subsection shall notify the Commissioner of the date when | 14 |
| the change
in control
is finally effected.
| 15 |
| The Commissioner may impose such terms and conditions on | 16 |
| the approval
of the change in control application as he deems | 17 |
| necessary or appropriate.
| 18 |
| If an applicant, whose application for a change in control | 19 |
| has been approved
pursuant to subsection (a) of this Section, | 20 |
| fails to effect the change in
control within
180 days after the | 21 |
| date of the Commissioner's approval, the Commissioner shall
| 22 |
| revoke that approval unless a request has been submitted, in | 23 |
| writing, to
the Commissioner for an extension and the request | 24 |
| has been approved.
| 25 |
| (b-1) Any person who obtains ownership of stock of an | 26 |
| existing State bank or
stock of a holding company that controls | 27 |
| the State bank by gift, bequest, or
inheritance such that | 28 |
| ownership of the stock would constitute control of the
State | 29 |
| bank or holding company may obtain title and ownership of the | 30 |
| stock, but
may not exercise management or control of the | 31 |
| business and affairs of the bank
or vote his or her shares so | 32 |
| as to exercise management or control unless and
until the | 33 |
| Commissioner approves an application for the change of control | 34 |
| as
provided in subsection (b) of this Section.
| 35 |
| (c) Whenever a state bank makes a loan or loans, secured, | 36 |
| or to be
secured, by 25% or more of the outstanding stock of a |
|
|
|
SB3036 |
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LRB093 18472 SAS 44186 b |
|
| 1 |
| state bank, the
president or other chief executive officer of | 2 |
| the lending bank shall
promptly report such fact to the | 3 |
| Commissioner upon obtaining knowledge of
such loan or loans, | 4 |
| except that no report need be made in those cases where
the | 5 |
| borrower has been the owner of record of the stock for a period | 6 |
| of one
year or more, or the stock is that of a newly organized | 7 |
| bank prior to its
opening.
| 8 |
| (d) The reports required by subsections (b) and (c) of this
| 9 |
| Section 18, other than those relating to a transfer of assets | 10 |
| or assumption
of liabilities, shall contain the following | 11 |
| information to the extent that it
is
known by the person making | 12 |
| the report: (1) the number of shares involved;
(2) the names of | 13 |
| the sellers (or transferors); (3) the names of the
purchasers | 14 |
| (or transferees); (4) the names of the beneficial owners if the
| 15 |
| shares are registered in another name: (5) the purchase price, | 16 |
| if
applicable; (6) the
total number of shares owned by the | 17 |
| sellers (or transferors), the
purchasers (or transferees) and | 18 |
| the beneficial owners both immediately
before and after the | 19 |
| transaction; and, (7) in the case of a loan, the name
of the | 20 |
| borrower, the amount of the loan, the name of the bank issuing
| 21 |
| the stock securing the loan and the number of shares securing | 22 |
| the loan. In
addition to the foregoing, such reports shall | 23 |
| contain such other
information which is requested by the | 24 |
| Commissioner to inform the
Commissioner of the effect of the | 25 |
| transaction upon control of the bank
whose stock is involved.
| 26 |
| (d-1) The reports required by subsection (b) of this | 27 |
| Section 18 that
relate to purchase of assets and assumption of | 28 |
| liabilities shall contain the
following information to the | 29 |
| extent that it is known by the person making the
report: (1) | 30 |
| the value, amount, and description of the assets transferred; | 31 |
| (2)
the amount, type, and to whom each type of liabilities are | 32 |
| owed; (3) the names
of the purchasers (or transferees); (4) the | 33 |
| names of the beneficial owners if
the shares of a purchaser or | 34 |
| transferee are registered in another name; (5) the
purchase | 35 |
| price, if applicable; and, (6) in the case of a loan obtained | 36 |
| to
effect a purchase, the name of the borrower, the amount and |
|
|
|
SB3036 |
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LRB093 18472 SAS 44186 b |
|
| 1 |
| terms of the loan,
and the description of the assets securing | 2 |
| the loan. In addition to the
foregoing,
these reports shall | 3 |
| contain any other information that is requested by the
| 4 |
| Commissioner to inform the Commissioner of the effect of the | 5 |
| transaction upon
the bank from which assets are purchased or | 6 |
| liabilities are transferred.
| 7 |
| (e) Whenever such a change as described in subsection (a) | 8 |
| of this
Section 18 occurs, each state bank shall report | 9 |
| promptly to the
Commissioner any changes or replacement of its | 10 |
| chief executive officer or
of any director occurring in the | 11 |
| next 12 month period, including in its
report a statement of | 12 |
| the past and current business and professional
affiliations of | 13 |
| the new chief executive officer or directors.
| 14 |
| (f) (Blank).
| 15 |
| (g) (1) Except as otherwise expressly provided in this | 16 |
| subsection (g),
the
Commissioners shall not approve an | 17 |
| application for a change in control if upon
consummation of | 18 |
| the change in control the persons applying for the change | 19 |
| in
control, including any affiliates of the persons | 20 |
| applying, would control 30% or
more of the total amount of | 21 |
| deposits which are located in this State at insured
| 22 |
| depository institutions. For purposes of this subsection | 23 |
| (g), the words
"insured
depository institution" shall mean | 24 |
| State banks, national banks, and insured
savings | 25 |
| associations. For purposes of this subsection (g), the word | 26 |
| "deposits"
shall have the meaning ascribed to that word in | 27 |
| Section 3(1) of the Federal
Deposit Insurance Act. For | 28 |
| purposes of this subsection (g), the total amount of
| 29 |
| deposits which are considered to be located in this State | 30 |
| at insured depository
institutions shall equal the sum of | 31 |
| all deposits held at the main banking
premises and branches | 32 |
| in the State of Illinois of State banks, national banks,
or | 33 |
| insured savings associations. For purposes of this | 34 |
| subsection (g), the word
"affiliates" shall have the | 35 |
| meaning ascribed to that word in Section 35.2 of
this Act.
| 36 |
| (2) Notwithstanding the provisions of subsection |
|
|
|
SB3036 |
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LRB093 18472 SAS 44186 b |
|
| 1 |
| (g)(1) of this Section,
the Commissioner may approve an | 2 |
| application for a change in control for a bank
that is in | 3 |
| default or in danger of default. Except in those instances | 4 |
| in which
an application for a change in control is for a | 5 |
| bank that is in default or in
danger of default, the | 6 |
| Commissioner may not approve a change in control which
does | 7 |
| not meet the requirements of subsection (g)(1) of this | 8 |
| Section. The
Commissioner may not waive the provisions of | 9 |
| subsection (g)(1) of this Section,
whether pursuant to | 10 |
| Section 3(d) of the federal Bank Holding Company Act of
| 11 |
| 1956 or Section 44(d) of the Federal Deposit Insurance Act, | 12 |
| except as expressly
provided in this subsection (g)(2).
| 13 |
| (h) As used in this Section, the term "control" means the | 14 |
| power, directly
or indirectly, acting through or acting in | 15 |
| concert with one or more persons, to direct the management or | 16 |
| policies of the bank or to vote 25%
or more of the outstanding | 17 |
| stock of the bank. If there is any question as to whether a | 18 |
| change in control application
should be filed,
the question | 19 |
| shall be resolved in favor of filing the application with the
| 20 |
| Commissioner.
| 21 |
| As used in this Section, "substantially all" the assets or
| 22 |
| liabilities of a State bank means that portion of the assets or
| 23 |
| liabilities of a State bank such that their purchase or | 24 |
| transfer will
materially impair the ability of the State bank | 25 |
| to continue successful,
safe, and sound operations or to | 26 |
| continue as a going concern or would
cause the bank to lose its | 27 |
| federal deposit insurance.
| 28 |
| As used in this Section, "purchase" includes a transfer by | 29 |
| gift,
bequest, inheritance, or any other means.
| 30 |
| As used in this Section, "acting in concert" means knowing | 31 |
| participation in a joint activity or parallel action towards a | 32 |
| common goal of acquiring control of a state bank, whether or | 33 |
| not pursuant to an express agreement.
| 34 |
| (Source: P.A. 92-483, eff. 8-23-01; 92-811, eff. 8-21-02.)
| 35 |
| (205 ILCS 5/21.2)
|
|
|
|
SB3036 |
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LRB093 18472 SAS 44186 b |
|
| 1 |
| Sec. 21.2. Interstate mergers; minimum age requirement.
| 2 |
| (a) No out of state bank and no national bank whose main | 3 |
| banking premises is
located in a state other than Illinois | 4 |
| shall merge with or into , or shall
acquire all or substantially | 5 |
| all of the assets of an Illinois bank that has
existed and | 6 |
| continuously operated as a bank for 5 years or less.
| 7 |
| (b) For purposes of subsection (a) of this Section, an | 8 |
| Illinois bank that is
the resulting bank following a merger | 9 |
| involving an Illinois interim bank shall
be considered to have | 10 |
| been in existence and continuously operated during the
| 11 |
| existence and continuous operation of the Illinois merged bank. | 12 |
| As used in this
subsection (b), the words "interim bank" shall | 13 |
| mean a bank which shall not
accept deposits, make loans, pay | 14 |
| checks, or engage in the general business of
banking or any | 15 |
| part thereof, and is chartered solely for the purpose of | 16 |
| merging
with or acquiring control of, or acquiring all or | 17 |
| substantially all of the
assets of an existing Illinois bank.
| 18 |
| (c) The provisions of subsection (a) of the Section shall | 19 |
| not apply to the
merger or acquisition of all or substantially | 20 |
| all of the assets of an Illinois
bank:
| 21 |
| (1) if the merger or acquisition is part of a purchase | 22 |
| or acquisition with
respect to which the Federal Deposit | 23 |
| Insurance Corporation provides assistance
under Section | 24 |
| 13(c) of the Federal Deposit Insurance Act; or
| 25 |
| (2) if the Illinois bank is in default or in danger of | 26 |
| default.
| 27 |
| (Source: P.A. 90-226, eff. 7-25-97.)
| 28 |
| (205 ILCS 5/46) (from Ch. 17, par. 357)
| 29 |
| Sec. 46. Misleading practices and names prohibited; | 30 |
| penalty.
| 31 |
| (a) No person, firm,
partnership, or
corporation that is | 32 |
| not a bank shall transact business in this State in a
manner | 33 |
| which has a substantial likelihood
of misleading the public by | 34 |
| implying that the business is a bank, or shall use
the
word | 35 |
| "banc", "bank", "banker", or "banking" in connection with the
|
|
|
|
SB3036 |
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LRB093 18472 SAS 44186 b |
|
| 1 |
| business.
Any person, firm, partnership or corporation | 2 |
| violating this
Section shall be deemed guilty of a
Class A | 3 |
| misdemeanor, and the Attorney General or State's Attorney of | 4 |
| the
county in which any such violation occurs may restrain such | 5 |
| violation by a
complaint for injunctive relief.
| 6 |
| (b) If the Commissioner is of the opinion and finds that a | 7 |
| person, firm,
partnership, or corporation that is not a bank | 8 |
| has transacted or intends to
transact business in this State in | 9 |
| a manner which has a substantial likelihood
of misleading the | 10 |
| public by implying that the business is a bank, or has used
or | 11 |
| intends to use the word "banc", "bank", "banker", or "banking" | 12 |
| in connection with
the business, then the Commissioner may | 13 |
| direct that person, firm, partnership,
or corporation to cease | 14 |
| and desist from transacting the business or using the
word | 15 |
| "banc", "bank", "banker", or "banking". If that person, firm, | 16 |
| partnership, or
corporation persists in transacting the | 17 |
| business or using the word "banc", "bank",
"banker", or | 18 |
| "banking", then the Commissioner may impose a civil penalty of | 19 |
| up
to $10,000 for each violation. Each day that the person, | 20 |
| firm, partnership,
or corporation continues transacting the | 21 |
| business or using the word "banc", "bank",
"banker", or | 22 |
| "banking" in connection with the business shall constitute a
| 23 |
| separate violation of these provisions.
| 24 |
| (c) A person, firm, partnership, or corporation that is not | 25 |
| a bank,
and is not transacting or intending to transact | 26 |
| business in this State
in a manner that has a substantial | 27 |
| likelihood of misleading the public by
implying that such | 28 |
| business is a bank, may
apply to the Commissioner for | 29 |
| permission to use the word "banc", "bank", "banker", or
| 30 |
| "banking" in connection with the business. If the Commissioner
| 31 |
| determines
that there is no substantial likelihood of | 32 |
| misleading the public, and
upon such conditions as the | 33 |
| Commissioner may impose to prevent the person,
firm, | 34 |
| partnership, or corporation
from holding itself out in a | 35 |
| misleading manner, then such person, firm,
partnership, or | 36 |
| corporation may use
the word "banc", "bank", "banker", or |
|
|
|
SB3036 |
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LRB093 18472 SAS 44186 b |
|
| 1 |
| "banking".
| 2 |
| (d) (1) Unless otherwise expressly permitted by law, no
| 3 |
| person, firm, partnership, or corporation may use the name
| 4 |
| of
an
existing bank
when
marketing to or soliciting | 5 |
| business from customers or prospective customers if
the | 6 |
| reference to the existing bank is made without the consent | 7 |
| of the
existing bank.
| 8 |
| (1.5) Unless otherwise expressly permitted by law, no | 9 |
| person, firm,
partnership, or corporation may use a name
| 10 |
| similar to that of an existing bank when marketing to or | 11 |
| soliciting business
from customers or prospective | 12 |
| customers if the similar name is used in a manner
that | 13 |
| could cause a reasonable person to believe that the | 14 |
| marketing material or
solicitation originated from or is | 15 |
| endorsed by the existing bank or that the
existing bank is | 16 |
| in any other way responsible for the marketing material or
| 17 |
| solicitation.
| 18 |
| (2) An existing bank may, in addition to any other | 19 |
| remedies available
under
the law, report an alleged | 20 |
| violation of this subsection (d) to the
Commissioner. If | 21 |
| the Commissioner finds the marketing material or | 22 |
| solicitation
in question to be in violation of this | 23 |
| subsection, the Commissioner may direct
the person, firm, | 24 |
| partnership, or corporation to cease and desist from using
| 25 |
| that marketing material
or solicitation in Illinois. If | 26 |
| that person, firm, partnership, or
corporation persists in | 27 |
| the use of the marketing material or solicitation,
then the | 28 |
| Commissioner may impose a civil penalty of up to $10,000 | 29 |
| for each
violation. Each instance in which the marketing | 30 |
| material or solicitation is
sent to a customer or | 31 |
| prospective customer shall constitute a separate
violation | 32 |
| of these provisions. The Commissioner is authorized to | 33 |
| promulgate
rules to administer these provisions.
| 34 |
| (3) (Blank).
| 35 |
| (Source: P.A. 92-476, eff. 8-23-01; 92-811, eff. 8-21-02.)
|
|
|
|
SB3036 |
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LRB093 18472 SAS 44186 b |
|
| 1 |
| (205 ILCS 5/48) (from Ch. 17, par. 359)
| 2 |
| Sec. 48. Commissioner's powers; duties. The Commissioner | 3 |
| shall have the
powers and authority, and is charged with the | 4 |
| duties and responsibilities
designated in this Act, and a State | 5 |
| bank shall not be subject to any
other visitorial power other | 6 |
| than as authorized by this Act, except those
vested in the | 7 |
| courts, or upon prior consultation with the Commissioner, a
| 8 |
| foreign bank regulator with an appropriate supervisory | 9 |
| interest in the parent
or affiliate of a state bank. In the | 10 |
| performance of the Commissioner's
duties:
| 11 |
| (1) The Commissioner shall call for statements from all | 12 |
| State banks
as provided in Section 47 at least one time during | 13 |
| each calendar quarter.
| 14 |
| (2) (a) The Commissioner, as often as the Commissioner | 15 |
| shall deem
necessary or
proper, and no less frequently than 18 | 16 |
| months following the preceding
examination, shall appoint a | 17 |
| suitable person or
persons to make an examination of the | 18 |
| affairs of every State bank,
except that for every eligible | 19 |
| State bank, as defined by regulation, the
Commissioner in lieu | 20 |
| of the examination may accept on an alternating basis the
| 21 |
| examination made by the eligible State bank's appropriate | 22 |
| federal banking
agency pursuant to Section 111 of the Federal | 23 |
| Deposit Insurance Corporation
Improvement Act of 1991, | 24 |
| provided the appropriate federal banking agency has
made such | 25 |
| an examination. A person so appointed shall not be a | 26 |
| stockholder or
officer or employee of
any bank which that | 27 |
| person may be directed to examine, and shall have
powers to | 28 |
| make a thorough examination into all the affairs of the bank | 29 |
| and
in so doing to examine any of the officers or agents or | 30 |
| employees thereof
on oath and shall make a full and detailed | 31 |
| report of the condition of the
bank to the Commissioner. In | 32 |
| making the examination the examiners shall
include an | 33 |
| examination of the affairs of all the affiliates of the bank, | 34 |
| as
defined in subsection (b) of Section 35.2 of this Act, or | 35 |
| subsidiaries of the
bank as shall be
necessary to disclose | 36 |
| fully the conditions of the subsidiaries or
affiliates, the |
|
|
|
SB3036 |
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LRB093 18472 SAS 44186 b |
|
| 1 |
| relations
between the bank and the subsidiaries or affiliates | 2 |
| and the effect of those
relations upon
the affairs of the bank, | 3 |
| and in connection therewith shall have power to
examine any of | 4 |
| the officers, directors, agents, or employees of the
| 5 |
| subsidiaries or affiliates
on oath. After May 31, 1997, the | 6 |
| Commissioner may enter into cooperative
agreements
with state | 7 |
| regulatory authorities of other states to provide for | 8 |
| examination of
State bank branches in those states, and the | 9 |
| Commissioner may accept reports
of examinations of State bank | 10 |
| branches from those state regulatory authorities.
These | 11 |
| cooperative agreements may set forth the manner in which the | 12 |
| other state
regulatory authorities may be compensated for | 13 |
| examinations prepared for and
submitted to the Commissioner.
| 14 |
| (b) After May 31, 1997, the Commissioner is authorized to | 15 |
| examine, as often
as the Commissioner shall deem necessary or | 16 |
| proper, branches of out-of-state
banks. The Commissioner may | 17 |
| establish and may assess fees to be paid to the
Commissioner | 18 |
| for examinations under this subsection (b). The fees shall be
| 19 |
| borne by the out-of-state bank, unless the fees are borne by | 20 |
| the state
regulatory authority that chartered the out-of-state | 21 |
| bank, as determined by a
cooperative agreement between the | 22 |
| Commissioner and the state regulatory
authority that chartered | 23 |
| the out-of-state bank.
| 24 |
| (2.5) Whenever any State bank, any subsidiary or affiliate | 25 |
| of a State
bank, or after May 31, 1997, any branch of an | 26 |
| out-of-state bank causes to
be performed, by contract or | 27 |
| otherwise, any bank services
for itself, whether on or off its | 28 |
| premises:
| 29 |
| (a) that performance shall be subject to examination by | 30 |
| the Commissioner
to the same extent as if services were | 31 |
| being performed by the bank or, after
May 31, 1997, branch | 32 |
| of the out-of-state bank itself
on its own premises; and
| 33 |
| (b) the bank or, after May 31, 1997, branch of the | 34 |
| out-of-state bank
shall notify the Commissioner of the | 35 |
| existence of a service
relationship. The notification | 36 |
| shall be submitted with the first statement
of condition |
|
|
|
SB3036 |
- 36 - |
LRB093 18472 SAS 44186 b |
|
| 1 |
| (as required by Section 47 of this Act) due after the | 2 |
| making
of the service contract or the performance of the | 3 |
| service, whichever occurs
first. The Commissioner shall be | 4 |
| notified of each subsequent contract in
the same manner.
| 5 |
| For purposes of this subsection (2.5), the term "bank | 6 |
| services" means
services such as sorting and posting of checks | 7 |
| and deposits, computation
and posting of interest and other | 8 |
| credits and charges, preparation and
mailing of checks, | 9 |
| statements, notices, and similar items, or any other
clerical, | 10 |
| bookkeeping, accounting, statistical, or similar functions
| 11 |
| performed for a State bank, including but not limited to | 12 |
| electronic data
processing related to those bank services.
| 13 |
| (3) The expense of administering this Act, including the | 14 |
| expense of
the examinations of State banks as provided in this | 15 |
| Act, shall to the extent
of the amounts resulting from the fees | 16 |
| provided for in paragraphs (a),
(a-2), and (b) of this | 17 |
| subsection (3) be assessed against and borne by the
State | 18 |
| banks:
| 19 |
| (a) Each bank shall pay to the Commissioner a Call | 20 |
| Report Fee which
shall be paid in quarterly installments | 21 |
| equal
to one-fourth of the sum of the annual fixed fee of | 22 |
| $800, plus a variable
fee based on the assets shown on the | 23 |
| quarterly statement of condition
delivered to the | 24 |
| Commissioner in accordance with Section 47 for the
| 25 |
| preceding quarter according to the following schedule: 16¢ | 26 |
| per $1,000 of
the first $5,000,000 of total assets, 15¢ per | 27 |
| $1,000 of the next
$20,000,000 of total assets, 13¢ per | 28 |
| $1,000 of the next $75,000,000 of
total assets, 9¢ per | 29 |
| $1,000 of the next $400,000,000 of total assets, 7¢
per | 30 |
| $1,000 of the next $500,000,000 of total assets, and 5¢ per | 31 |
| $1,000 of
all assets in excess of $1,000,000,000, of the | 32 |
| State bank. The Call Report
Fee shall be calculated and | 33 |
| assessed in accordance with a formula prescribed by rule by | 34 |
| the Commissioner and billed to the banks for
remittance at | 35 |
| the time of the quarterly statements of condition
provided | 36 |
| for in Section 47. The Commissioner may require payment of |
|
|
|
SB3036 |
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LRB093 18472 SAS 44186 b |
|
| 1 |
| the fees
provided in this Section by an electronic transfer | 2 |
| of funds or an automatic
debit of an account of each of the | 3 |
| State banks. In case more than one
examination of any
bank | 4 |
| is deemed by the Commissioner to be necessary in any | 5 |
| examination
frequency cycle specified in subsection 2(a) | 6 |
| of this Section,
and is performed at his direction, the | 7 |
| Commissioner may
assess a reasonable additional fee to | 8 |
| recover the cost of the additional
examination; provided, | 9 |
| however, that an examination conducted at the request
of | 10 |
| the State Treasurer pursuant to the Uniform Disposition of | 11 |
| Unclaimed
Property Act shall not be deemed to be an | 12 |
| additional examination under this
Section.
In lieu
of the | 13 |
| method and amounts set forth in this paragraph (a) for the | 14 |
| calculation
of the Call Report Fee,
The
the Commissioner | 15 |
| may specify by
rule that the Call Report Fees provided by | 16 |
| this Section may be assessed
semiannually or some other | 17 |
| period and may provide in the rule the formula to
be
used | 18 |
| for calculating and assessing the periodic Call Report Fees | 19 |
| to be paid by
State
banks .
| 20 |
| (a-1) If in the opinion of the Commissioner an | 21 |
| emergency exists or
appears likely, the Commissioner may | 22 |
| assign an examiner or examiners to
monitor the affairs of a | 23 |
| State bank with whatever frequency he deems
appropriate, | 24 |
| including but not limited to a daily basis. The reasonable
| 25 |
| and necessary expenses of the Commissioner during the | 26 |
| period of the monitoring
shall be borne by the subject | 27 |
| bank. The Commissioner shall furnish the
State bank a | 28 |
| statement of time and expenses if requested to do so within | 29 |
| 30
days of the conclusion of the monitoring period.
| 30 |
| (a-2) On and after January 1, 1990, the reasonable and | 31 |
| necessary
expenses of the Commissioner during examination | 32 |
| of the performance of
electronic data processing services | 33 |
| under subsection (2.5) shall be
borne by the banks for | 34 |
| which the services are provided. An amount, based
upon a | 35 |
| fee structure prescribed by the Commissioner, shall be paid | 36 |
| by the
banks or, after May 31, 1997, branches of |
|
|
|
SB3036 |
- 38 - |
LRB093 18472 SAS 44186 b |
|
| 1 |
| out-of-state banks receiving the
electronic data | 2 |
| processing services along with the
Call Report Fee assessed | 3 |
| under paragraph (a) of this
subsection (3).
| 4 |
| (a-3) After May 31, 1997, the reasonable and necessary | 5 |
| expenses of the
Commissioner during examination of the | 6 |
| performance of electronic data
processing services under | 7 |
| subsection (2.5) at or on behalf of branches of
| 8 |
| out-of-state banks shall be borne by the out-of-state | 9 |
| banks, unless those
expenses are borne by the state | 10 |
| regulatory authorities that chartered the
out-of-state | 11 |
| banks, as determined by cooperative agreements between the
| 12 |
| Commissioner and the state regulatory authorities that | 13 |
| chartered the
out-of-state banks.
| 14 |
| (b) "Fiscal year" for purposes of this Section 48 is | 15 |
| defined as a
period beginning July 1 of any year and ending | 16 |
| June 30 of the next year.
The Commissioner shall receive | 17 |
| for each fiscal year, commencing with the
fiscal year | 18 |
| ending June 30, 1987, a contingent fee equal to the lesser | 19 |
| of
the aggregate of the fees paid by all State banks under | 20 |
| paragraph (a) of
subsection (3) for that year, or the | 21 |
| amount, if any, whereby the aggregate
of the administration | 22 |
| expenses, as defined in paragraph (c), for that
fiscal year | 23 |
| exceeds the sum of the aggregate of the fees payable by all
| 24 |
| State banks for that year under paragraph (a) of subsection | 25 |
| (3),
plus any amounts transferred into the Bank and Trust | 26 |
| Company Fund from the
State Pensions Fund for that year,
| 27 |
| plus all
other amounts collected by the Commissioner for | 28 |
| that year under any
other provision of this Act, plus the | 29 |
| aggregate of all fees
collected for that year by the | 30 |
| Commissioner under the Corporate Fiduciary
Act, excluding | 31 |
| the receivership fees provided for in Section 5-10 of the
| 32 |
| Corporate Fiduciary Act, and the Foreign Banking Office | 33 |
| Act.
The aggregate amount of the contingent
fee thus | 34 |
| arrived at for any fiscal year shall be apportioned | 35 |
| amongst,
assessed upon, and paid by the State banks and | 36 |
| foreign banking corporations,
respectively, in the same |
|
|
|
SB3036 |
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LRB093 18472 SAS 44186 b |
|
| 1 |
| proportion
that the fee of each under paragraph (a) of | 2 |
| subsection (3), respectively,
for that year bears to the | 3 |
| aggregate for that year of the fees collected
under | 4 |
| paragraph (a) of subsection (3). The aggregate amount of | 5 |
| the
contingent fee, and the portion thereof to be assessed | 6 |
| upon each State
bank and foreign banking corporation,
| 7 |
| respectively, shall be determined by the Commissioner and | 8 |
| shall be paid by
each, respectively, within 120 days of the | 9 |
| close of the period for which
the contingent fee is | 10 |
| computed and is payable, and the Commissioner shall
give 20 | 11 |
| days advance notice of the amount of the contingent fee | 12 |
| payable by
the State bank and of the date fixed by the | 13 |
| Commissioner for payment of
the fee.
| 14 |
| (c) The "administration expenses" for any fiscal year | 15 |
| shall mean the
ordinary and contingent expenses for that | 16 |
| year incident to making the
examinations provided for by, | 17 |
| and for otherwise administering, this Act,
the Corporate | 18 |
| Fiduciary Act, excluding the expenses paid from the
| 19 |
| Corporate Fiduciary Receivership account in the Bank and | 20 |
| Trust Company
Fund, the Foreign Banking Office Act,
the | 21 |
| Electronic Fund Transfer Act,
and the Illinois Bank | 22 |
| Examiners'
Education Foundation Act, including all | 23 |
| salaries and other
compensation paid for personal services | 24 |
| rendered for the State by
officers or employees of the | 25 |
| State, including the Commissioner and the
Deputy | 26 |
| Commissioners, all expenditures for telephone and | 27 |
| telegraph
charges, postage and postal charges, office | 28 |
| stationery, supplies and
services, and office furniture | 29 |
| and equipment, including typewriters and
copying and | 30 |
| duplicating machines and filing equipment, surety bond
| 31 |
| premiums, and travel expenses of those officers and | 32 |
| employees, employees,
expenditures or charges for the | 33 |
| acquisition, enlargement or improvement
of, or for the use | 34 |
| of, any office space, building, or structure, or
| 35 |
| expenditures for the maintenance thereof or for furnishing | 36 |
| heat, light,
or power with respect thereto, all to the |
|
|
|
SB3036 |
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LRB093 18472 SAS 44186 b |
|
| 1 |
| extent that those expenditures
are directly incidental to | 2 |
| such examinations or administration.
The Commissioner | 3 |
| shall not be required by paragraphs (c) or (d-1) of this
| 4 |
| subsection (3) to maintain in any fiscal year's budget | 5 |
| appropriated reserves
for accrued vacation and accrued | 6 |
| sick leave that is required to be paid to
employees of the | 7 |
| Commissioner upon termination of their service with the
| 8 |
| Commissioner in an amount that is more than is reasonably | 9 |
| anticipated to be
necessary for any anticipated turnover in | 10 |
| employees, whether due to normal
attrition or due to | 11 |
| layoffs, terminations, or resignations.
| 12 |
| (d) The aggregate of all fees collected by the | 13 |
| Commissioner under
this Act, the Corporate Fiduciary Act,
| 14 |
| or the Foreign Banking Office Act on
and after July 1, | 15 |
| 1979, shall be paid promptly after receipt of the same,
| 16 |
| accompanied by a detailed statement thereof, into the State | 17 |
| treasury and
shall be set apart in a special fund to be | 18 |
| known as the "Bank and Trust
Company Fund", except as | 19 |
| provided in paragraph (c) of subsection (11) of
this | 20 |
| Section. All earnings received from investments of funds in | 21 |
| the Bank
and
Trust Company Fund shall be deposited in the | 22 |
| Bank and Trust Company Fund
and may be used for the same | 23 |
| purposes as fees deposited in that Fund. The
amount from | 24 |
| time to time deposited into the Bank and
Trust Company Fund | 25 |
| shall be used to offset the ordinary administration
| 26 |
| administrative
expenses of the Commissioner of Banks and | 27 |
| Real Estate as defined in
this Section. Nothing in this | 28 |
| amendatory Act of 1979 shall prevent
continuing the | 29 |
| practice of paying expenses involving salaries, | 30 |
| retirement,
social security, and State-paid insurance | 31 |
| premiums of State officers by
appropriations from the | 32 |
| General Revenue Fund. However, the General Revenue
Fund | 33 |
| shall be reimbursed for those payments made on and after | 34 |
| July 1, 1979,
by an annual transfer of funds from the Bank | 35 |
| and Trust Company Fund.
| 36 |
| (d-1) Adequate funds shall be available in the Bank and |
|
|
|
SB3036 |
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LRB093 18472 SAS 44186 b |
|
| 1 |
| Trust
Company Fund to permit the timely payment of | 2 |
| administration expenses. In
each fiscal year the total | 3 |
| administration expenses shall be deducted from
the total | 4 |
| fees collected by the Commissioner and the remainder | 5 |
| transferred
into the Cash Flow Reserve Account, unless the | 6 |
| balance of the Cash Flow
Reserve Account prior to the | 7 |
| transfer equals or exceeds
one-third
one-fourth of the | 8 |
| total initial appropriations from the Bank and Trust
| 9 |
| Company Fund for the subsequent year, in which case the | 10 |
| remainder shall be
credited to State banks and foreign | 11 |
| banking corporations
and applied against their fees for the | 12 |
| subsequent
year. The amount credited to each State bank and | 13 |
| foreign banking corporation
shall be in the same proportion | 14 |
| as the
Call Report Fees paid by each for the year bear to | 15 |
| the total Call Report
Fees collected for the year. If, | 16 |
| after a transfer to the Cash Flow Reserve
Account is made | 17 |
| or if no remainder is available for transfer, the balance
| 18 |
| of the Cash Flow Reserve Account is less than one-third
| 19 |
| one-fourth of the total
initial appropriations for the | 20 |
| subsequent year and the amount transferred
is less than 5% | 21 |
| of the total Call Report Fees for the year, additional
| 22 |
| amounts needed to make the transfer equal to 5% of the | 23 |
| total Call Report
Fees for the year shall be apportioned | 24 |
| amongst, assessed upon, and
paid by the State banks and | 25 |
| foreign banking corporations
in the same proportion that | 26 |
| the Call Report Fees of each,
respectively, for the year | 27 |
| bear to the total Call Report Fees collected for
the year. | 28 |
| The additional amounts assessed shall be transferred into | 29 |
| the
Cash Flow Reserve Account. For purposes of this | 30 |
| paragraph (d-1), the
calculation of the fees collected by | 31 |
| the Commissioner shall exclude the
receivership fees | 32 |
| provided for in Section 5-10 of the Corporate Fiduciary | 33 |
| Act.
| 34 |
| (e) The Commissioner may upon request certify to any | 35 |
| public record
in his keeping and shall have authority to | 36 |
| levy a reasonable charge for
issuing certifications of any |
|
|
|
SB3036 |
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LRB093 18472 SAS 44186 b |
|
| 1 |
| public record in his keeping.
| 2 |
| (f) In addition to fees authorized elsewhere in this | 3 |
| Act, the
Commissioner
may, in connection with a review, | 4 |
| approval, or provision of a service, levy a
reasonable | 5 |
| charge to recover the cost of the review, approval, or | 6 |
| service.
| 7 |
| (4) Nothing contained in this Act shall be construed to | 8 |
| limit the
obligation relative to examinations and reports of | 9 |
| any State bank, deposits
in which are to any extent insured by | 10 |
| the United States or any agency
thereof, nor to limit in any | 11 |
| way the powers of the Commissioner with
reference to | 12 |
| examinations and reports of that bank.
| 13 |
| (5) The nature and condition of the assets in or investment | 14 |
| of any
bonus, pension, or profit sharing plan for officers or | 15 |
| employees of every
State bank or, after May 31, 1997, branch of | 16 |
| an out-of-state bank shall be
deemed to be included in the | 17 |
| affairs of that State
bank or branch of an out-of-state bank | 18 |
| subject to examination by the
Commissioner under the
provisions | 19 |
| of subsection (2) of this Section, and if the Commissioner
| 20 |
| shall find from an examination that the condition of or | 21 |
| operation
of the investments or assets of the plan is unlawful, | 22 |
| fraudulent, or
unsafe, or that any trustee has abused his | 23 |
| trust, the Commissioner
shall, if the situation so found by the | 24 |
| Commissioner shall not be
corrected to his satisfaction within | 25 |
| 60 days after the Commissioner has
given notice to the board of | 26 |
| directors of the State bank or out-of-state
bank of his
| 27 |
| findings, report the facts to the Attorney General who shall | 28 |
| thereupon
institute proceedings against the State bank or | 29 |
| out-of-state bank, the
board of directors
thereof, or the | 30 |
| trustees under such plan as the nature of the case may require.
| 31 |
| (6) The Commissioner shall have the power:
| 32 |
| (a) To promulgate reasonable rules for the purpose of
| 33 |
| administering the provisions of this Act.
| 34 |
| (a-5) To impose conditions on any approval issued by | 35 |
| the Commissioner
if he determines that the conditions are | 36 |
| necessary or appropriate. These
conditions shall be |
|
|
|
SB3036 |
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LRB093 18472 SAS 44186 b |
|
| 1 |
| imposed in writing and shall continue
in effect for the | 2 |
| period prescribed by the Commissioner.
| 3 |
| (b) To issue orders
against any person, if the | 4 |
| Commissioner has
reasonable cause to believe that an unsafe | 5 |
| or unsound banking practice
has occurred, is occurring, or | 6 |
| is about to occur, if any person has violated,
is | 7 |
| violating, or is about to violate any law, rule, condition | 8 |
| imposed by the Commissioner, or written
agreement with the | 9 |
| Commissioner, or
for the purpose of administering the | 10 |
| provisions of
this Act and any rule promulgated in | 11 |
| accordance with this Act. The Commissioner may make | 12 |
| available to the public any formal enforcement action or | 13 |
| modification to such formal enforcement action. For | 14 |
| purposes of this subsection, "formal enforcement action" | 15 |
| means a Order to Cease and Desist, an Order of Prohibition, | 16 |
| an Order of Removal, or an Order Assessing a Civil Monetary | 17 |
| Penalty.
| 18 |
| (b-1) To enter into agreements with a bank establishing | 19 |
| a program to
correct the condition of the bank or its | 20 |
| practices.
| 21 |
| (c) To appoint hearing officers to execute any of the | 22 |
| powers granted to
the Commissioner under this Section for | 23 |
| the purpose of administering this
Act and any rule | 24 |
| promulgated in accordance with this Act
and otherwise to | 25 |
| authorize, in writing, an officer or employee of the Office
| 26 |
| of
Banks and Real Estate to exercise his powers under this | 27 |
| Act.
| 28 |
| (d) To subpoena witnesses, to compel their attendance, | 29 |
| to administer
an oath, to examine any person under oath, | 30 |
| and to require the production of
any relevant books, | 31 |
| papers, accounts, and documents in the course of and
| 32 |
| pursuant to any investigation being conducted, or any | 33 |
| action being taken,
by the Commissioner in respect of any | 34 |
| matter relating to the duties imposed
upon, or the powers | 35 |
| vested in, the Commissioner under the provisions of
this | 36 |
| Act or any rule promulgated in accordance with this Act.
|
|
|
|
SB3036 |
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LRB093 18472 SAS 44186 b |
|
| 1 |
| (e) To conduct hearings.
| 2 |
| (7) Whenever, in the opinion of the Commissioner, any | 3 |
| director,
officer, employee, or agent of a State bank
or any | 4 |
| subsidiary or bank holding company of the bank
or, after May | 5 |
| 31, 1997, of any
branch of an out-of-state bank
or any | 6 |
| subsidiary or bank holding company of the bank
shall have | 7 |
| violated any law,
rule, or order relating to that bank
or any | 8 |
| subsidiary or bank holding company of the bank, shall have
| 9 |
| obstructed or impeded any examination or investigation by the | 10 |
| Commissioner, shall have engaged in an unsafe or
unsound | 11 |
| practice in conducting the business of that bank
or any | 12 |
| subsidiary or bank holding company of the bank,
or shall have
| 13 |
| violated any law or engaged or participated in any unsafe or | 14 |
| unsound practice
in connection with any financial institution | 15 |
| or other business entity such that
the character and fitness of | 16 |
| the director, officer, employee, or agent does not
assure | 17 |
| reasonable promise of safe and sound operation of the State | 18 |
| bank, the
Commissioner
may issue an order of removal.
If, in | 19 |
| the opinion of the Commissioner, any former director, officer,
| 20 |
| employee,
or agent of a State bank
or any subsidiary or bank | 21 |
| holding company of the bank, prior to the
termination of his or | 22 |
| her service with
that bank
or any subsidiary or bank holding | 23 |
| company of the bank, violated any law,
rule, or order relating | 24 |
| to that
State bank
or any subsidiary or bank holding company of | 25 |
| the bank, obstructed or impeded
any examination or | 26 |
| investigation by the Commissioner, engaged in an unsafe or | 27 |
| unsound practice in conducting the
business of that bank
or any | 28 |
| subsidiary or bank holding company of the bank,
or violated any | 29 |
| law or engaged or participated in any
unsafe or unsound | 30 |
| practice in connection with any financial institution or
other | 31 |
| business entity such that the character and fitness of the | 32 |
| director,
officer, employee, or agent would not have assured | 33 |
| reasonable promise of safe
and sound operation of the State | 34 |
| bank, the Commissioner may issue an order
prohibiting that | 35 |
| person from
further
service with a bank
or any subsidiary or | 36 |
| bank holding company of the bank
as a director, officer, |
|
|
|
SB3036 |
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LRB093 18472 SAS 44186 b |
|
| 1 |
| employee, or agent. An order
issued pursuant to this subsection | 2 |
| shall be served upon the
director,
officer, employee, or agent. | 3 |
| A copy of the order shall be sent to each
director of the bank | 4 |
| affected by registered mail. The person affected by
the action | 5 |
| may request a hearing before the State Banking Board within 10
| 6 |
| days after receipt of the order. The hearing shall be held by
| 7 |
| the Board within 30 days after the request has been received by | 8 |
| the Board.
The Board shall make a determination approving, | 9 |
| modifying, or disapproving
the order of the Commissioner as its | 10 |
| final administrative decision. If a
hearing is held by the | 11 |
| Board, the Board shall make its determination within
60 days | 12 |
| from the conclusion of the hearing. Any person affected by a
| 13 |
| decision of the Board under this subsection (7) of Section 48 | 14 |
| of this Act
may have the decision reviewed only under and in | 15 |
| accordance with the
Administrative Review Law and the rules | 16 |
| adopted pursuant thereto. A copy of
the order shall also be | 17 |
| served upon the bank of which he is a director,
officer, | 18 |
| employee, or agent, whereupon he shall cease to be a director,
| 19 |
| officer, employee, or agent of that bank. The Commissioner may
| 20 |
| institute a civil action against the director, officer, or | 21 |
| agent of the
State bank or, after May 31, 1997, of the branch | 22 |
| of the out-of-state bank
against whom any order provided for by | 23 |
| this subsection (7) of
this Section 48 has been issued, and | 24 |
| against the State bank or, after May 31,
1997, out-of-state | 25 |
| bank, to enforce
compliance with or to enjoin any violation of | 26 |
| the terms of the order.
Any person who has been the subject of | 27 |
| an order of removal
or
an order of prohibition issued by the | 28 |
| Commissioner under
this subsection , Section 3.074(b) of the | 29 |
| Illinois Bank Holding Company Act of 1957, or Section 5-6 of | 30 |
| the Corporate Fiduciary Act may not
thereafter serve as | 31 |
| director, officer, employee, or agent of any State bank
or of | 32 |
| any branch of any out-of-state bank,
or of any corporate | 33 |
| fiduciary, as defined in Section 1-5.05 of the
Corporate
| 34 |
| Fiduciary Act, or of any other entity that is subject to | 35 |
| licensure or
regulation by the Commissioner or the Office of | 36 |
| Banks and Real Estate unless
the Commissioner has granted prior |
|
|
|
SB3036 |
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LRB093 18472 SAS 44186 b |
|
| 1 |
| approval in writing.
| 2 |
| For purposes of this paragraph (7), "bank holding company" | 3 |
| has the
meaning prescribed in Section 2 of the Illinois Bank | 4 |
| Holding Company Act of
1957.
| 5 |
| (8) The Commissioner may impose civil penalties of up to | 6 |
| $100,000
$10,000 against
any person for each violation of any | 7 |
| provision of this Act, any rule
promulgated in accordance with | 8 |
| this Act, any order of the Commissioner, any condition imposed | 9 |
| by the Commissioner, or
any other action which in the | 10 |
| Commissioner's discretion is an unsafe or
unsound banking | 11 |
| practice.
| 12 |
| (9) The Commissioner may impose civil penalties of up to | 13 |
| $100
against any person for the first failure to comply with | 14 |
| reporting
requirements set forth in the report of examination | 15 |
| of the bank and up to
$200 for the second and subsequent | 16 |
| failures to comply with those reporting
requirements.
| 17 |
| (10) All final administrative decisions of the | 18 |
| Commissioner hereunder
shall be subject to judicial review | 19 |
| pursuant to the provisions of the
Administrative Review Law. | 20 |
| For matters involving administrative review,
venue shall be in | 21 |
| either Sangamon County or Cook County.
| 22 |
| (11) The endowment fund for the Illinois Bank Examiners' | 23 |
| Education
Foundation shall be administered as follows:
| 24 |
| (a) (Blank).
| 25 |
| (b) The Foundation is empowered to receive voluntary | 26 |
| contributions,
gifts, grants, bequests, and donations on | 27 |
| behalf of the Illinois Bank
Examiners' Education | 28 |
| Foundation from national banks and other persons for
the | 29 |
| purpose of funding the endowment of the Illinois Bank | 30 |
| Examiners'
Education Foundation.
| 31 |
| (c) The aggregate of all special educational fees | 32 |
| collected by the
Commissioner and property received by the | 33 |
| Commissioner on behalf of the
Illinois Bank Examiners' | 34 |
| Education Foundation under this subsection
(11) on or after | 35 |
| June 30, 1986, shall be either (i) promptly paid after
| 36 |
| receipt of the same, accompanied by a detailed statement |
|
|
|
SB3036 |
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LRB093 18472 SAS 44186 b |
|
| 1 |
| thereof, into the
State Treasury and shall be set apart in | 2 |
| a special fund to be known as "The
Illinois Bank Examiners' | 3 |
| Education Fund" to be invested by either the
Treasurer of | 4 |
| the State of Illinois in the Public Treasurers' Investment
| 5 |
| Pool or in any other investment he is authorized to make or | 6 |
| by the Illinois
State Board of Investment as the board of | 7 |
| trustees of the Illinois Bank
Examiners' Education | 8 |
| Foundation may direct or (ii) deposited into an account
| 9 |
| maintained in a commercial bank or corporate fiduciary in | 10 |
| the name of the
Illinois Bank Examiners' Education | 11 |
| Foundation pursuant to the order and
direction of the Board | 12 |
| of Trustees of the Illinois Bank Examiners' Education
| 13 |
| Foundation.
| 14 |
| (12) (Blank).
| 15 |
| (Source: P.A. 91-16, eff. 7-1-99; 92-20, eff. 7-1-01; 92-483, | 16 |
| eff.
8-23-01; 92-651, eff. 7-11-02.)
| 17 |
| (205 ILCS 5/49) (from Ch. 17, par. 361)
| 18 |
| Sec. 49. False statements; penalty. | 19 |
| (a) It is unlawful for any officer, director, or employee | 20 |
| of any State
bank or subsidiary or holding company of that bank | 21 |
| or, after May 31, 1997,
branch out of an out-of-state bank | 22 |
| subject to examination by the Commissioner
or any person filing | 23 |
| an application or notice or submitting information in
| 24 |
| connection with an application or notice with the Commissioner | 25 |
| to willfully
and knowingly subscribe to or make, or cause to be | 26 |
| made, any false
statement or false entry with intent to deceive | 27 |
| any person or persons
authorized to examine into the affairs of | 28 |
| the bank or the subsidiary or
holding company of that bank, the
| 29 |
| branch of an
out-of-state bank, or the applicant or with intent | 30 |
| to
deceive the Commissioner or his administrative officers in | 31 |
| the performance
of their duties under this Act. A person who | 32 |
| violates this
Section is guilty of
a Class 3 felony.
| 33 |
| (b) Any state bank or officer, director, or employee of any | 34 |
| state bank or, after May 31, 1997, branch of an out of state | 35 |
| bank subject to examination by the Commissioner who shall |
|
|
|
SB3036 |
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LRB093 18472 SAS 44186 b |
|
| 1 |
| refuse access to information or documents requested by the | 2 |
| Commissioner pursuant to any investigation being conducted or | 3 |
| any action being taken by the Commissioner relating to the | 4 |
| duties imposed upon or the powers vested in the Commissioner | 5 |
| under the provisions of this Act or any rule promulgated in | 6 |
| accordance with this Act, may be subject to disciplinary action | 7 |
| pursuant to Section 48 of this Act.
| 8 |
| (Source: P.A. 92-483, eff. 8-23-01.)
| 9 |
| (205 ILCS 5/71) (from Ch. 17, par. 383)
| 10 |
| Sec. 71. Voluntary dissolution; Commissioner's fee. The | 11 |
| Commissioner shall be entitled to a fee, which shall be paid at | 12 |
| the
time of deposit, on all money deposited with him for the | 13 |
| account of one
dissolving bank . The Commissioner shall | 14 |
| establish this fee by rule.
of two per cent of the first five | 15 |
| thousand dollars and one
per cent of all sums in excess of five | 16 |
| thousand dollars.
| 17 |
| (Source: Laws 1965, p. 2020.)
|
|
33 |
| Section 20. The Pawnbroker Regulation Act is amended by | 34 |
| changing Sections 0.05 and 5 and by adding Sections 1.8 and 9.5 | 35 |
| as follows:
|
|
|
|
SB3036 |
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LRB093 18472 SAS 44186 b |
|
| 1 |
| (205 ILCS 510/0.05)
| 2 |
| Sec. 0.05. Administration of Act.
| 3 |
| (a) This Act shall be administered by the
Commissioner of | 4 |
| Banks and Real Estate who shall have all of the following
| 5 |
| powers and duties in administering this Act:
| 6 |
| (1) To promulgate reasonable rules for the purpose of | 7 |
| administering the
provisions of this Act.
| 8 |
| (2) To issue orders for the purpose of administering | 9 |
| the provisions of
this
Act and any rule promulgated in | 10 |
| accordance with this Act.
| 11 |
| (3) To appoint hearing officers and to hire employees | 12 |
| or to contract with
appropriate persons to execute any of | 13 |
| the powers granted to
the Commissioner under this Section | 14 |
| for the purpose of administering this
Act and any rule | 15 |
| promulgated in accordance with this Act.
| 16 |
| (4) To subpoena witnesses, to compel their attendance, | 17 |
| to administer an
oath, to examine any person under oath, | 18 |
| and to require the production of any
relevant books, | 19 |
| papers, accounts, and documents in the course of and | 20 |
| pursuant
to any investigation being conducted, or any | 21 |
| action being taken, by the
Commissioner in respect of any | 22 |
| matter relating to the duties imposed upon, or
the powers | 23 |
| vested in, the Commissioner under the provisions of this | 24 |
| Act or any
rule promulgated in accordance with this Act.
| 25 |
| (5) To conduct hearings.
| 26 |
| (6) To impose civil penalties graduated up to $1,000 | 27 |
| against any person
for each
violation of any provision of | 28 |
| this Act, any rule promulgated in
accordance
with this Act, | 29 |
| or any order of the Commissioner
based upon the seriousness | 30 |
| of the violation.
| 31 |
| (6.5) To initiate, through the Attorney General, | 32 |
| injunction proceedings
whenever it appears to the | 33 |
| Commissioner that any person, whether licensed under
this | 34 |
| Act or not, is engaged or about to engage in an act or | 35 |
| practice that
constitutes or will constitute a violation of |
|
|
|
SB3036 |
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LRB093 18472 SAS 44186 b |
|
| 1 |
| this Act or any rule prescribed
under the authority of this | 2 |
| Act. The Commissioner may, in his or her
discretion, | 3 |
| through the Attorney General, apply for an injunction, and | 4 |
| upon a
proper showing, any circuit court may enter a | 5 |
| permanent or preliminary
injunction or a temporary | 6 |
| restraining order without bond to enforce this Act in
| 7 |
| addition to the penalties and other remedies provided for | 8 |
| in this Act.
| 9 |
| (7) To issue a cease and desist order and, for | 10 |
| violations of
this Act, any order issued by the | 11 |
| Commissioner pursuant to this Act, any
rule promulgated in | 12 |
| accordance with this Act,
or any other applicable law in | 13 |
| connection with the operation of a pawnshop,
to suspend a | 14 |
| license issued under this Act for up to 30 days.
| 15 |
| (8) To determine
compliance with applicable law and | 16 |
| rules related to the operation of pawnshops
and to verify | 17 |
| the accuracy of reports filed with the Commissioner, the
| 18 |
| Commissioner, not more than one time every 2 years, may, | 19 |
| but is not required
to, conduct a routine examination of a | 20 |
| pawnshop, and in
addition, the Commissioner may examine the | 21 |
| affairs of any pawnshop at any time if the Commissioner
has
| 22 |
| reasonable cause to believe that unlawful or fraudulent | 23 |
| activity is occurring,
or has occurred, therein.
| 24 |
| (9) In response to a complaint, to address any | 25 |
| inquiries to any pawnshop
in relation to its affairs, and | 26 |
| it shall be the duty of the pawnshop to
promptly reply in | 27 |
| writing to such inquiries. The Commissioner may also | 28 |
| require
reports or information from any pawnshop at any | 29 |
| time the Commissioner may deem
desirable.
| 30 |
| (10) To revoke a license issued under this Act if the | 31 |
| Commissioner
determines that (a) a licensee has been | 32 |
| convicted of a felony in connection
with the operations of | 33 |
| a pawnshop; (b) a licensee knowingly, recklessly, or
| 34 |
| continuously violated this Act, a rule promulgated in
| 35 |
| accordance with this Act, or any order of the Commissioner; | 36 |
| (c) a fact or
condition exists that, if it had existed or |
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| had been known at the time of the
original application, | 2 |
| would have justified license refusal; or (d) the licensee
| 3 |
| knowingly submits materially false or misleading documents | 4 |
| with the intent to
deceive the Commissioner or any other | 5 |
| party ; or (e) a licensee has been the subject of an Order | 6 |
| of Removal or Order of Prohibition issued by the | 7 |
| Commissioner pursuant to subsection (a)(12) of this | 8 |
| Section, Section 48(7) of the Illinois Banking Act, Section | 9 |
| 3.074(b) of the Illinois Bank Holding Company Act of 1957, | 10 |
| or Section 5-6 of the Corporate Fiduciary Act and the Order | 11 |
| is a final administrative decision under the | 12 |
| Administrative Review Law .
| 13 |
| (11) Following license revocation, to take possession | 14 |
| and control of a
pawnshop for the purpose of examination, | 15 |
| reorganization, or liquidation through
receivership and to | 16 |
| appoint a receiver, which may be the Commissioner, a
| 17 |
| pawnshop, or
another suitable person.
| 18 |
| (12) To issue an order of removal, whenever in the | 19 |
| opinion of the Commissioner, any director, officer, owner, | 20 |
| employee or agent of a pawnshop has violated any law, rule, | 21 |
| or order relating to the pawnshop or has violated any law | 22 |
| in connection with any other business entity such that the | 23 |
| character and fitness of the director, officer, owner, | 24 |
| employee, or agent does not assure reasonable promise of | 25 |
| operation of the pawnshop in a lawful and fair manner. If, | 26 |
| in the opinion of the Commissioner, any former director, | 27 |
| officer, owner, employee, or agent of a pawnshop, prior to | 28 |
| the termination of his or her service with the pawnshop, | 29 |
| violated any law, rule, or order relating to the pawnshop | 30 |
| or violated any law in connection with any other business | 31 |
| such that the director, officer, owner, employee, or agent | 32 |
| would not have assured reasonable promise of operation of | 33 |
| the pawnshop in a lawful and fair manner, the Commissioner | 34 |
| may issue an order prohibiting that person from further | 35 |
| service with a pawnshop as a director, officer, owner, | 36 |
| employee, or agent. An order issued pursuant to this |
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| Section shall be served upon the director, officer, owner, | 2 |
| employee, or agent. An Order of Removal shall also be sent | 3 |
| to the pawnshop by personal service, certified mail return | 4 |
| receipt requested, or any other method that provides proof | 5 |
| of service and receipt. The person affected by the action | 6 |
| may request a hearing within 10 days after receipt of the | 7 |
| order of removal or prohibition. The hearing shall be held | 8 |
| within 30 days after receipt of a request for a hearing in | 9 |
| accordance with Part 392 of Title 38 of the Illinois | 10 |
| Administrative Code. After concluding the hearing, a | 11 |
| hearing officer shall make a recommendation approving, | 12 |
| modifying, or disapproving the order of the Commissioner. | 13 |
| The Commissioner shall then issue a written determination | 14 |
| including the conclusions of law and the findings of fact | 15 |
| upon which the determination was made. A copy of the order | 16 |
| shall be served upon the pawnshop of which the person is a | 17 |
| director, officer, owner, employee, or agent, whereupon | 18 |
| the person shall cease to be a director, officer, employee, | 19 |
| or agent of the pawnshop or to conduct any business in | 20 |
| connection with the pawnshop. Any person who has been | 21 |
| removed or prohibited by an order of the Commissioner under | 22 |
| this Section may not thereafter serve as director, officer, | 23 |
| employee, or agent of any pawnshop or of any other entity | 24 |
| that is subject to licensure or regulation by the | 25 |
| Commissioner or the Office of Banks and Real Estate unless | 26 |
| the Commissioner has granted prior approval in writing. The | 27 |
| Commissioner may institute a civil action against the | 28 |
| director, officer, owner, employee, or agent subject to an | 29 |
| order issued under this Section and against the pawnshop to | 30 |
| enforce compliance with or to enjoin any violation of the | 31 |
| terms of the order.
| 32 |
| (b) After consultation with local law enforcement | 33 |
| officers, the Attorney
General, and the industry, the | 34 |
| Commissioner may by rule require that
pawnbrokers
operate video | 35 |
| camera surveillance systems to record photographic
| 36 |
| representations of customers and retain the tapes produced for |
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| up to 30 days.
| 2 |
| (c) Pursuant to rule, the Commissioner shall issue licenses | 3 |
| on an annual or
multi-year basis for operating a
pawnshop. Any | 4 |
| person currently operating or
who has operated a pawnshop in | 5 |
| this State during the 2 years preceding the
effective date of | 6 |
| this amendatory Act of 1997 shall be issued a license upon
| 7 |
| payment of the fee required under this Act. New applicants | 8 |
| shall meet
standards for a license as established by the | 9 |
| Commissioner.
Except with the prior written consent of the | 10 |
| Commissioner, no individual,
either a new applicant or a person | 11 |
| currently operating a pawnshop, may be
issued a license to | 12 |
| operate a pawnshop if the individual has been convicted
of a | 13 |
| felony or of any criminal offense relating to dishonesty or | 14 |
| breach of
trust in connection with the operations of a | 15 |
| pawnshop.
In addition, no new applicant may be issued a license | 16 |
| to operate a pawnshop if the individual has been the subject of | 17 |
| an Order of Removal or Order of Prohibition issued by the | 18 |
| Commissioner pursuant to subsection (a)(12) of this Section, | 19 |
| Section 48(7) of the Illinois Banking Act, Section 3.074(b) of | 20 |
| the Illinois Bank Holding Company Act of 1957, or Section 5-6 | 21 |
| of the Corporate Fiduciary Act after the Order becomes a final | 22 |
| administrative decision under the Administrative Review Law | 23 |
| unless the applicant receives the prior written approval of the | 24 |
| Commissioner. The Commissioner shall
establish license fees. | 25 |
| The fees shall not exceed the amount reasonably
required for | 26 |
| administration of this Act. It shall be unlawful to operate a
| 27 |
| pawnshop without a license issued by the Commissioner.
| 28 |
| (d) In addition to license fees, the Commissioner may, by | 29 |
| rule, establish
fees in connection with a review, approval, or | 30 |
| provision of a service, and levy
a reasonable charge to recover | 31 |
| the cost of the review, approval, or service
(such as a change | 32 |
| in control, change in location, or renewal of a license).
The | 33 |
| Commissioner may also levy a reasonable charge to recover the | 34 |
| cost of an
examination if the Commissioner determines that | 35 |
| unlawful or fraudulent activity
has occurred. The Commissioner | 36 |
| may require payment of the fees and charges
provided in this |
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| Act by certified check, money order, an electronic transfer of
| 2 |
| funds, or an automatic debit of an account.
| 3 |
| (e) The Pawnbroker Regulation Fund is established as a | 4 |
| special
fund in the State treasury. Moneys collected under this | 5 |
| Act shall be deposited
into the Fund and used for the | 6 |
| administration of this Act.
In the event that General Revenue | 7 |
| Funds are appropriated to the Office of the
Commissioner of | 8 |
| Banks and Real Estate for the initial implementation of this
| 9 |
| Act, the Governor may direct the repayment from the Pawnbroker | 10 |
| Regulation
Fund to the General Revenue Fund of such advance in | 11 |
| an amount not to exceed
$30,000. The Governor may direct this | 12 |
| interfund transfer at such time as he
deems appropriate by | 13 |
| giving appropriate written notice.
| 14 |
| (f) The Commissioner may, by rule, require all pawnshops to | 15 |
| provide for
the expenses that would arise from the | 16 |
| administration of the receivership of a
pawnshop under this Act | 17 |
| through the assessment of fees, the requirement to
pledge | 18 |
| surety bonds, or such other methods as determined by the | 19 |
| Commissioner.
| 20 |
| (g) All final administrative decisions of the Commissioner | 21 |
| under
this Act shall be subject to judicial review pursuant to | 22 |
| the provisions of the
Administrative Review Law. For matters | 23 |
| involving administrative review, venue
shall be in
either | 24 |
| Sangamon County or Cook County.
| 25 |
| (Source: P.A. 92-215, eff. 8-2-01.)
| 26 |
| (205 ILCS 510/1.8 new)
| 27 |
| Sec. 1.8. Employment of persons convicted of a felony or a | 28 |
| breach of trust related to the operation of a pawnshop. Except | 29 |
| with the prior written consent of the Commissioner, no pawnshop | 30 |
| shall employ an individual who has been convicted of a felony | 31 |
| or of any criminal offense relating to dishonesty or breach of | 32 |
| trust in connection with the operations of a pawnshop.
| 33 |
| (205 ILCS 510/5) (from Ch. 17, par. 4655)
| 34 |
| Sec. 5. Record requirements.
|
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| (a) Except in municipalities located in counties having | 2 |
| 3,000,000 or more
inhabitants, every pawn and loan broker shall | 3 |
| keep a standard record book
that has been approved by the | 4 |
| sheriff of the county in which the pawnbroker
does business. In | 5 |
| municipalities in counties with
3,000,000 or more inhabitants, | 6 |
| the record book shall be approved by the police
department of | 7 |
| the municipality in which the pawn or loan broker does | 8 |
| business.
At the time of each and every loan or taking of a | 9 |
| pledge,
an accurate account and description, in the English | 10 |
| language, of all the
goods, articles and other things pawned or | 11 |
| pledged, the amount of money,
value or thing loaned thereon, | 12 |
| the time of pledging the same, the rate of
interest to be paid | 13 |
| on such loan, and the name and residence of the person
making | 14 |
| such pawn or pledge shall be printed, typed, or written in ink | 15 |
| in
the record book. Such entry shall include the serial number | 16 |
| or
identification number of items received which bear such
| 17 |
| number. Except for items purchased from dealers possessing a | 18 |
| federal employer
employee
identification number who have | 19 |
| provided a receipt to the pawnbroker, every
pawnbroker shall | 20 |
| also record in his book, an accurate account and description,
| 21 |
| in the English language, of all goods, articles and other | 22 |
| things purchased or
received for the purpose of resale or loan | 23 |
| collateral by the pawnbroker from
any source, not in the course | 24 |
| of a pledge or loan, the time of such purchase
or receipt and | 25 |
| the name and address of the person or business which sold or
| 26 |
| delivered such goods, articles, or other things to the | 27 |
| pawnbroker. No entry
in such book shall be erased, mutilated or | 28 |
| changed.
| 29 |
| (b) Every pawnbroker shall require identification to be
| 30 |
| shown him by each person pledging or pawning any goods, | 31 |
| articles or other
things to the pawnbroker. If the | 32 |
| identification shown is a driver's license
or a State | 33 |
| identification card issued by the Secretary of State and | 34 |
| contains a
photograph of the person being identified,
only one | 35 |
| form of identification must be shown. If the identification | 36 |
| shown
is not a driver's license or a State identification card |
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| issued by the
Secretary
of State and does not contain a | 2 |
| photograph, 2 forms of identification must be
shown, and one of | 3 |
| the 2 forms of
identification must
include his or her residence | 4 |
| address. These forms of identification shall
include, but not | 5 |
| be limited to, any of the following: driver's license,
social | 6 |
| security card, utility bill, employee or student | 7 |
| identification card,
credit card, or a civic, union or | 8 |
| professional association membership card.
In addition, in a | 9 |
| municipality with a population of 1,000,000 or more
| 10 |
| inhabitants, if the customer does not have an identification | 11 |
| issued by a
governmental entity containing a photograph of the | 12 |
| person being identified, the
pawnbroker shall photograph the | 13 |
| customer in color and record the customer's
name, residence | 14 |
| address, date of birth, social security number, gender, height,
| 15 |
| and weight on the reverse side of the photograph. If the | 16 |
| customer has no
social security number,
the pawnbroker shall | 17 |
| record this fact.
| 18 |
| A county or municipality, including a home rule unit, may | 19 |
| regulate a
pawnbroker's identification requirements for | 20 |
| persons pledging or pawning goods,
articles, or other things to | 21 |
| the pawnbroker in a manner that is not less
restrictive than | 22 |
| the regulation by the State of a pawnbroker's identification
| 23 |
| requirements for persons pledging or pawning goods, articles, | 24 |
| or other things.
A home rule unit
may not regulate a | 25 |
| pawnbroker's identification requirements for persons
pledging
| 26 |
| or pawning goods, articles, or other things to the pawnbroker | 27 |
| in a manner less
restrictive than the regulation by the State | 28 |
| of a pawnbroker's identification
requirements for persons | 29 |
| pledging or pawning goods, articles, or other things.
This | 30 |
| Section is a limitation under subsection (i) of Section 6 of | 31 |
| Article VII
of the Illinois Constitution on the concurrent | 32 |
| exercise by home rule units of
the powers and functions | 33 |
| exercised by the State.
| 34 |
| (c) A pawnbroker may maintain the records required by | 35 |
| subsection (a) in
computer form if the computer form has been | 36 |
| approved by the Commissioner, the
sheriff of the county in |
|
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| which the shop is located, and the police department
of the | 2 |
| municipality in which the shop is located.
| 3 |
| (d) Records, including reports to the Commissioner, | 4 |
| maintained by
pawnbrokers shall be confidential, and no | 5 |
| disclosure of pawnbroker records
shall be made except | 6 |
| disclosures authorized by this Act or ordered by a court
of | 7 |
| competent jurisdiction. No record transferred to a | 8 |
| governmental official
shall be improperly disclosed, provided | 9 |
| that use of those records as evidence
of a felony or | 10 |
| misdemeanor shall be a proper purpose.
| 11 |
| (e) Pawnbrokers and their associations may lawfully give | 12 |
| appropriate
governmental agencies computer equipment for the | 13 |
| purpose of transferring
information pursuant to this Act.
| 14 |
| (Source: P.A. 91-608, eff. 8-19-99; 92-215, eff. 8-2-01.)
| 15 |
| (205 ILCS 510/9.5 new)
| 16 |
| Sec. 9.5. Redemption of goods after license revocation, | 17 |
| suspension, or denial.
| 18 |
| (a) After revocation of a license and if the Commissioner | 19 |
| has not taken possession and control of the pawnshop pursuant | 20 |
| to Section 0.05, a pawnbroker shall maintain usual business | 21 |
| hours at the pawnshop for not less than 30 days after the | 22 |
| latest default date of any pawn transaction made at that | 23 |
| pawnshop for the sole purpose of allowing a pledgor to redeem | 24 |
| pledged goods. | 25 |
| (b) After suspension of a license, a pawnbroker shall | 26 |
| maintain usual business hours at the pawnshop during the | 27 |
| suspension for the sole purpose of allowing a pledgor to redeem | 28 |
| goods or to renew a pawn transaction that matures during the | 29 |
| suspension. | 30 |
| (c) After the denial of a license renewal application, a | 31 |
| pawnbroker shall maintain usual business hours at the pawnshop | 32 |
| for not less than 30 days after the latest default date of any | 33 |
| pawn transaction made at that pawnshop for the sole purpose of | 34 |
| allowing a pledgor to redeem pledged goods. | 35 |
| (d) The Commissioner may exercise any authority conferred |
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| on the Commissioner to protect the interest of a pledgor of | 2 |
| goods in the possession of a pawnbroker whose license has been | 3 |
| revoked or suspended, or whose license renewal application has | 4 |
| been denied, including the assessment of a civil money penalty | 5 |
| and all other penalties and remedies provided for in this Act. |
|