|
|||||||
| |||||||
| |||||||
1 | AN ACT concerning financial regulation.
| ||||||
2 | Be it enacted by the People of the State of Illinois,
| ||||||
3 | represented in the General Assembly:
| ||||||
4 | Section 5. The Office of Banks and Real Estate Act is | ||||||
5 | amended by changing Sections 0.1, 0.2, and 5 as follows:
| ||||||
6 | (20 ILCS 3205/0.1)
| ||||||
7 | Sec. 0.1. Short title. This Act may
be cited as the | ||||||
8 | Division of Banking Office of Banks and Real Estate Act.
| ||||||
9 | (Source: P.A. 89-508, eff. 7-3-96.)
| ||||||
10 | (20 ILCS 3205/0.2)
| ||||||
11 | Sec. 0.2. Definitions. For the purposes of this Act, unless | ||||||
12 | the context
otherwise requires:
| ||||||
13 | "Commissioner" means the Secretary of Financial and | ||||||
14 | Professional Regulation Commissioner of Banks and Real Estate, | ||||||
15 | or a
person authorized by the Secretary Commissioner , the | ||||||
16 | Division of Banking Act, or by this Act to act in the | ||||||
17 | Secretary's
Commissioner's stead.
| ||||||
18 | "Division" means the Division of Banking within the | ||||||
19 | Department of Financial and Professional Regulation. | ||||||
20 | "Office" means the Division of Banking within the | ||||||
21 | Department of Financial and Professional Regulation Office of | ||||||
22 | Banks and Real Estate .
|
| |||||||
| |||||||
1 | (Source: P.A. 89-508, eff. 7-3-96.)
| ||||||
2 | (20 ILCS 3205/5) (from Ch. 17, par. 455)
| ||||||
3 | Sec. 5. Powers. In addition to all the other powers and | ||||||
4 | duties provided
by law, the Commissioner shall have the | ||||||
5 | following powers:
| ||||||
6 | (a) To exercise the rights, powers and duties formerly | ||||||
7 | vested by law in
the Director of Financial Institutions under | ||||||
8 | the Illinois Banking Act.
| ||||||
9 | (b) To exercise the rights, powers and duties formerly | ||||||
10 | vested by law in
the Department of Financial Institutions under | ||||||
11 | "An act to provide for and
regulate the administration of | ||||||
12 | trusts by trust companies", approved June 15,
1887, as amended.
| ||||||
13 | (c) To exercise the rights, powers and duties formerly | ||||||
14 | vested by law in
the Director of Financial Institutions under | ||||||
15 | "An act authorizing foreign
corporations, including banks and | ||||||
16 | national banking associations domiciled in
other states, to act | ||||||
17 | in a fiduciary capacity in this state upon certain
conditions | ||||||
18 | herein set forth", approved July 13, 1953, as amended.
| ||||||
19 | (c-5) To exercise all of the rights, powers, and duties | ||||||
20 | granted to the Director or Secretary under the Illinois Banking | ||||||
21 | Act, the Corporate Fiduciary Act, the Electronic Fund Transfer | ||||||
22 | Act, the Illinois Bank Holding Company Act of 1957, the Savings | ||||||
23 | Bank Act, the Illinois Savings and Loan Act of 1985, the | ||||||
24 | Savings and Loan Share and Account Act, the Residential | ||||||
25 | Mortgage License Act of 1987, and the Pawnbroker Regulation |
| |||||||
| |||||||
1 | Act. | ||||||
2 | (d) Whenever the Commissioner is authorized or required by | ||||||
3 | law to consider
or to make findings regarding the character of | ||||||
4 | incorporators, directors,
management personnel, or other | ||||||
5 | relevant individuals under the Illinois Banking
Act,
the | ||||||
6 | Corporate Fiduciary Act, the Pawnbroker Regulation Act, or at | ||||||
7 | other
times as the Commissioner deems necessary for the purpose | ||||||
8 | of carrying out the
Commissioner's statutory powers
and | ||||||
9 | responsibilities, the Commissioner shall consider criminal
| ||||||
10 | history record information, including nonconviction | ||||||
11 | information, pursuant to
the Criminal Identification Act. The | ||||||
12 | Commissioner shall, in the
form and manner required by
the | ||||||
13 | Department of State Police and the Federal Bureau of | ||||||
14 | Investigation, cause
to be conducted a criminal history record | ||||||
15 | investigation to obtain
information currently contained in the | ||||||
16 | files of the Department of State Police
or the Federal Bureau | ||||||
17 | of Investigation, provided that the Commissioner need
not cause | ||||||
18 | additional criminal history record investigations to be | ||||||
19 | conducted
on individuals for whom the Commissioner, a federal | ||||||
20 | bank regulatory
agency, or any other government agency has | ||||||
21 | caused such investigations to
have been conducted previously | ||||||
22 | unless such additional investigations are
otherwise required | ||||||
23 | by law or unless the Commissioner deems such additional
| ||||||
24 | investigations to be necessary for the purposes of
carrying out | ||||||
25 | the Commissioner's statutory powers and responsibilities.
The | ||||||
26 | Department of State Police shall
provide, on the Commissioner's |
| |||||||
| |||||||
1 | request, information concerning criminal
charges and their | ||||||
2 | disposition currently on file with respect to a relevant
| ||||||
3 | individual. Information obtained as a result
of an | ||||||
4 | investigation under this Section shall be used in determining | ||||||
5 | eligibility
to be an incorporator, director, management | ||||||
6 | personnel, or other relevant
individual in relation to a | ||||||
7 | financial institution or other entity
supervised by the | ||||||
8 | Commissioner. Upon request and payment of fees in
conformance | ||||||
9 | with the
requirements of Section 2605-400 of the Department of | ||||||
10 | State Police Law (20 ILCS
2605/2605-400), the Department of | ||||||
11 | State Police is authorized
to furnish, pursuant to positive | ||||||
12 | identification, such information contained in
State files as is | ||||||
13 | necessary to fulfill the request.
| ||||||
14 | (e) When issuing charters, permits, licenses, or other | ||||||
15 | authorizations,
the Commissioner may impose such terms and | ||||||
16 | conditions on the issuance
as he deems necessary or | ||||||
17 | appropriate. Failure to
abide by those terms and conditions may | ||||||
18 | result in the revocation of the
issuance, the imposition of | ||||||
19 | corrective orders, or the imposition of civil
money penalties.
| ||||||
20 | (f) If the Commissioner has reasonable cause to believe | ||||||
21 | that any entity
that has not submitted an application for | ||||||
22 | authorization or licensure is
conducting any activity that | ||||||
23 | would otherwise require authorization or
licensure by the | ||||||
24 | Commissioner, the Commissioner shall have the power to
subpoena | ||||||
25 | witnesses, to compel their attendance, and to require the | ||||||
26 | production
of any relevant books, papers, accounts, and |
| |||||||
| |||||||
1 | documents , and to conduct an examination of the entity in order | ||||||
2 | to determine
whether the entity is subject to authorization or | ||||||
3 | licensure by the
Commissioner or the Division Office of Banks | ||||||
4 | and Real Estate . If the Secretary determines that the entity is | ||||||
5 | subject to authorization or licensure by the Secretary, then | ||||||
6 | the Secretary shall have the power to issue orders against or | ||||||
7 | take any other action, including initiating a receivership | ||||||
8 | against the unauthorized or unlicensed entity.
| ||||||
9 | (g) The Commissioner may, through the Attorney General, | ||||||
10 | request
the circuit court of any county to issue an injunction | ||||||
11 | to restrain any person
from violating the provisions of any Act | ||||||
12 | administered by the Commissioner.
| ||||||
13 | (h) Whenever the Commissioner is authorized to take any | ||||||
14 | action or
required by law to consider or make findings, the | ||||||
15 | Commissioner may delegate
or appoint, in writing, an officer or | ||||||
16 | employee of the Division Office of Banks and Real
Estate to
| ||||||
17 | take that action or make that finding.
| ||||||
18 | (i) Whenever the Secretary determines that it is in the | ||||||
19 | public's interest, he or she may publish any cease and desist | ||||||
20 | order or other enforcement action issued by the Division. | ||||||
21 | (Source: P.A. 91-239, eff. 1-1-00; 92-483, eff. 8-23-01.)
| ||||||
22 | Section 7. The Illinois Bank Examiners' Education | ||||||
23 | Foundation Act is amended by changing Sections 3.01, 4, and 5 | ||||||
24 | as follows:
|
| |||||||
| |||||||
1 | (20 ILCS 3210/3.01) (from Ch. 17, par. 403.1)
| ||||||
2 | Sec. 3.01.
"Board" means the State Banking Board of | ||||||
3 | Illinois as established under the provisions of the Illinois | ||||||
4 | Banking Act Board of Trustees of the Illinois Bank
Examiners' | ||||||
5 | Education Foundation created by this Act .
| ||||||
6 | (Source: P.A. 84-1127.)
| ||||||
7 | (20 ILCS 3210/4) (from Ch. 17, par. 404)
| ||||||
8 | Sec. 4.
The Foundation shall establish an endowment fund | ||||||
9 | with the
monies in the Illinois Bank Examiners' Education Fund. | ||||||
10 | The income from such
Fund shall be used to pay for continuing | ||||||
11 | education and professional
training activity for the | ||||||
12 | examination employees of the Commissioner's
office authorized | ||||||
13 | by the Board of the Illinois Bank Examiners' Education
Program | ||||||
14 | and to pay for reasonable expenses incurred by the Board in the
| ||||||
15 | course of administering its official duties under this Act . The | ||||||
16 | continuing education and professional
training activity to be | ||||||
17 | funded by the Foundation shall be a supplement to
the education | ||||||
18 | and training expenditures regularly being made from the Bank
& | ||||||
19 | Trust Company Fund for such purposes.
| ||||||
20 | (Source: P.A. 84-1127.)
| ||||||
21 | (20 ILCS 3210/5) (from Ch. 17, par. 405)
| ||||||
22 | Sec. 5. The Foundation shall be governed by the a Board of | ||||||
23 | Trustees . The
Board shall consist of the following trustees: | ||||||
24 | the Commissioner, who shall
be its chairman; one Class A member |
| |||||||
| |||||||
1 | and three Class B members from the
State Banking Board of | ||||||
2 | Illinois, appointed by the Governor.
| ||||||
3 | For carrying out their official duties under this Act, the | ||||||
4 | Board members The terms of the trustees of the Foundation who | ||||||
5 | are members of the State
Banking Board of Illinois are to be | ||||||
6 | coextensive with their terms on the
State Banking Board of | ||||||
7 | Illinois. An appointment to fill a vacancy shall be
for the | ||||||
8 | unexpired term of the trustee whose term is being filled. | ||||||
9 | Trustees
shall receive no compensation for service on the | ||||||
10 | Board , but shall be
reimbursed for all reasonable and necessary | ||||||
11 | expenditures incurred in the
performance of said their official | ||||||
12 | duties.
| ||||||
13 | (Source: P.A. 84-1127.)
| ||||||
14 | Section 10. The Illinois Bank Examiners' Education | ||||||
15 | Foundation Act is amended by changing Section 3.02 and by | ||||||
16 | adding Section 3.025 as follows:
| ||||||
17 | (20 ILCS 3210/3.02) (from Ch. 17, par. 403.2)
| ||||||
18 | Sec. 3.02.
"Commissioner" means the Secretary of Financial | ||||||
19 | and Professional Regulation Commissioner of Banks and Real | ||||||
20 | Estate
or a person authorized by the Secretary Commissioner , | ||||||
21 | the Division of Banking Office of Banks and Real Estate
Act, or | ||||||
22 | this Act to act in the Secretary's Commissioner's stead.
| ||||||
23 | (Source: P.A. 89-508, eff. 7-3-96.)
|
| |||||||
| |||||||
1 | (20 ILCS 3210/3.025 new) | ||||||
2 | Sec. 3.025. Division. "Division" means the Division of | ||||||
3 | Banking within the Department of Financial and Professional | ||||||
4 | Regulation. | ||||||
5 | Section 15. The Illinois Banking Act is amended by changing | ||||||
6 | Sections 13, 32, 40, 48, 51, and 52 as follows:
| ||||||
7 | (205 ILCS 5/13) (from Ch. 17, par. 320)
| ||||||
8 | Sec. 13. Issuance of charter.
| ||||||
9 | (a) When the directors have organized as provided in | ||||||
10 | Section 12 of this
Act, and the capital stock and the preferred | ||||||
11 | stock, if any, together with a
surplus of not less than 50% of | ||||||
12 | the capital,
has been all fully paid in and a record of the | ||||||
13 | same
filed with the Commissioner, the Commissioner or some | ||||||
14 | competent
person of the Commissioner's appointment shall make a | ||||||
15 | thorough
examination into the affairs of the proposed bank, and | ||||||
16 | if satisfied (i)
that
all the requirements of this Act have | ||||||
17 | been complied with, (ii) that
no
intervening circumstance has | ||||||
18 | occurred to change the Commissioner's findings
made pursuant to | ||||||
19 | Section 10 of this Act, and (iii) that the prior involvement
by | ||||||
20 | any stockholder who will own a sufficient amount of stock to | ||||||
21 | have control,
as defined in Section 18 of this Act, of the | ||||||
22 | proposed bank with any other
financial institution, whether as | ||||||
23 | stockholder, director, officer, or customer,
was conducted in a | ||||||
24 | safe and sound manner, upon payment into the
Commissioner's |
| |||||||
| |||||||
1 | office of the reasonable expenses of the
examination, as | ||||||
2 | determined by the Commissioner, the Commissioner shall
issue a | ||||||
3 | charter authorizing the bank to commence business as authorized | ||||||
4 | in
this Act. All charters issued by the Commissioner or any | ||||||
5 | predecessor
agency which chartered State banks, including any | ||||||
6 | charter outstanding as of
September 1, 1989, shall be | ||||||
7 | perpetual. For the 2 years after the Commissioner
has issued a | ||||||
8 | charter to a bank, the bank shall request and obtain from the
| ||||||
9 | Commissioner prior written approval before it may change senior | ||||||
10 | management
personnel or directors.
| ||||||
11 | The original charter, duly certified by the Commissioner, | ||||||
12 | or a certified copy
shall be evidence in all courts and places
| ||||||
13 | of the existence and authority of the bank to do business. Upon | ||||||
14 | the
issuance of the charter by the Commissioner, the bank
shall | ||||||
15 | be deemed fully organized and may
proceed to do business. The | ||||||
16 | Commissioner may, in the Commissioner's
discretion, withhold | ||||||
17 | the issuing of the charter when the Commissioner has
reason to | ||||||
18 | believe that the bank is organized for any purpose other than
| ||||||
19 | that contemplated by this Act. The Commissioner shall
revoke | ||||||
20 | the charter and order liquidation in the event that the bank | ||||||
21 | does
not commence a general banking business within one year | ||||||
22 | from the date of
the issuance of the charter, unless a request | ||||||
23 | has been submitted, in
writing, to the Commissioner for an | ||||||
24 | extension and the request has been
approved. After commencing a | ||||||
25 | general
banking business, a bank may
change
its name by filing | ||||||
26 | written notice with the Commissioner at least 30 days
prior
to |
| |||||||
| |||||||
1 | the effective date of such change. A bank chartered under this | ||||||
2 | Act may
change its main banking premises by filing written | ||||||
3 | application with the
Commissioner, on forms prescribed by the | ||||||
4 | Commissioner, provided (i) the change
shall not be a removal to | ||||||
5 | a new location without complying with the capital
requirements | ||||||
6 | of Section 7 and of subsection (1) of Section 10 of this Act; | ||||||
7 | (ii)
the Commissioner approves the relocation or change; and | ||||||
8 | (iii) the bank
complies with any applicable federal law or | ||||||
9 | regulation. The application
shall be deemed to be approved if | ||||||
10 | the Commissioner has not acted on the
application within 30 | ||||||
11 | days after receipt of the application, unless within the
30-day | ||||||
12 | time frame the Commissioner informs the bank that an extension | ||||||
13 | of time
is
necessary prior to the Commissioner's action on the | ||||||
14 | application.
| ||||||
15 | (b) (1) The Commissioner may also issue a charter to a bank | ||||||
16 | that is owned
exclusively by other depository institutions | ||||||
17 | or depository institution holding
companies and is | ||||||
18 | organized to engage exclusively in providing services to or
| ||||||
19 | for other financial institutions, their holding companies, | ||||||
20 | and the officers,
directors, and employees of such | ||||||
21 | institutions and companies, and in providing
services at | ||||||
22 | the request of other financial institutions
or their | ||||||
23 | holding companies (also referred to as a "bankers' bank"). | ||||||
24 | The bank may also provide products and services to its | ||||||
25 | officers, directors, and employees.
| ||||||
26 | (2) A bank chartered pursuant to paragraph (1) shall, |
| |||||||
| |||||||
1 | except as otherwise
specifically determined or limited by | ||||||
2 | the Commissioner in an order or
pursuant to a rule, be | ||||||
3 | vested with the same rights
and privileges and subject to | ||||||
4 | the same duties, restrictions, penalties,
and liabilities | ||||||
5 | now or hereafter imposed under this Act.
| ||||||
6 | (c) A bank chartered under this Act shall after November 1, | ||||||
7 | 1985, and an
out-of-state bank that merges with a State bank | ||||||
8 | and establishes or maintains a
branch in this State after
May | ||||||
9 | 31, 1997, shall obtain
from and , at all times while it accepts | ||||||
10 | or retains deposits, maintain with
the Federal Deposit | ||||||
11 | Insurance Corporation, or such other instrumentality of
or | ||||||
12 | corporation chartered by the United States, deposit insurance | ||||||
13 | as
authorized under federal law.
| ||||||
14 | (d) (i) A bank that has a banking charter issued by the | ||||||
15 | Commissioner under
this Act may, pursuant to a written | ||||||
16 | purchase and assumption agreement,
transfer substantially | ||||||
17 | all of its assets to another State bank or national
bank in | ||||||
18 | consideration, in whole or in part, for the transferee | ||||||
19 | banks'
assumption of any part or all of its liabilities. | ||||||
20 | Such a transfer shall in
no way be deemed to impair the | ||||||
21 | charter of the transferor bank or cause the
transferor bank | ||||||
22 | to forfeit any of its rights, powers, interests,
| ||||||
23 | franchises, or privileges as a State bank, nor shall any | ||||||
24 | voluntary
reduction in the transferor bank's activities | ||||||
25 | resulting from the transfer
have any such effect; provided, | ||||||
26 | however, that a State bank that transfers
substantially all |
| |||||||
| |||||||
1 | of its assets pursuant to this subsection (d) and
following | ||||||
2 | the transfer does not accept deposits and make loans, shall | ||||||
3 | not
have any rights, powers, interests, franchises, or | ||||||
4 | privileges under
subsection (15) of Section 5 of this Act | ||||||
5 | until the bank has resumed
accepting deposits and making | ||||||
6 | loans.
| ||||||
7 | (ii) The fact that a State bank does not resume | ||||||
8 | accepting deposits and
making loans for a period of 24 | ||||||
9 | months commencing on September 11, 1989 or on a
date of the | ||||||
10 | transfer of substantially all of a State bank's assets, | ||||||
11 | whichever
is later, or such longer period as the | ||||||
12 | Commissioner may allow in writing, may
be the basis for a | ||||||
13 | finding by the Commissioner under Section 51 of this Act
| ||||||
14 | that the bank is unable to continue operations.
| ||||||
15 | (iii) The authority provided by subdivision (i) of this | ||||||
16 | subsection
(d) shall terminate on May 31, 1997, and no bank | ||||||
17 | that has transferred
substantially all of its assets | ||||||
18 | pursuant to this subsection (d) shall continue
in existence | ||||||
19 | after May 31, 1997.
| ||||||
20 | (Source: P.A. 95-924, eff. 8-26-08.)
| ||||||
21 | (205 ILCS 5/32) (from Ch. 17, par. 339)
| ||||||
22 | Sec. 32. Basic loaning limits. The liabilities outstanding | ||||||
23 | at one time
to a state bank of a
person for money borrowed, | ||||||
24 | including the liabilities of a partnership
or joint venture in | ||||||
25 | the liabilities of the several members thereof, shall
not |
| |||||||
| |||||||
1 | exceed 25% of the amount of the unimpaired capital and
| ||||||
2 | unimpaired surplus
of the bank.
| ||||||
3 | The liabilities to any state bank of a person may exceed | ||||||
4 | 25% of
the unimpaired capital and unimpaired surplus of the | ||||||
5 | bank,
provided
that (i) the excess amount from time to time | ||||||
6 | outstanding is fully secured
by readily marketable collateral | ||||||
7 | having a market value, as determined by
reliable and | ||||||
8 | continuously available quotations, at least equal to the
excess | ||||||
9 | amount outstanding; and (ii) the total liabilities shall
not | ||||||
10 | exceed 30% of the unimpaired capital and unimpaired surplus of | ||||||
11 | the bank.
| ||||||
12 | The following shall not be considered as money borrowed | ||||||
13 | within the meaning
of this Section:
| ||||||
14 | (1) The purchase or discount of bills of exchange drawn | ||||||
15 | in good
faith
against actually existing values.
| ||||||
16 | (2) The purchase or discount of commercial or business | ||||||
17 | paper actually
owned by the person negotiating the same.
| ||||||
18 | (3) The purchase of or loaning money in exchange for | ||||||
19 | evidences of
indebtedness which shall be secured by | ||||||
20 | mortgage or trust deed upon
productive real estate the | ||||||
21 | value of which, as ascertained by the oath of
2 qualified | ||||||
22 | appraisers, neither of whom shall be an officer,
director, | ||||||
23 | or employee of the bank or of any subsidiary or affiliate | ||||||
24 | of the
bank, is double the amount of the principal
debt | ||||||
25 | secured at the time of the original purchase of evidence of | ||||||
26 | indebtedness
or loan
of money and which is still double the |
| |||||||
| |||||||
1 | amount of the principal debt secured
at the time of any | ||||||
2 | renewal of the indebtedness or loan, and which
mortgage
or | ||||||
3 | trust deed is shown, either by a guaranty policy of a title | ||||||
4 | guaranty
company approved by the Commissioner or by a | ||||||
5 | registrar's certificate of
title in any county having | ||||||
6 | adopted the provisions of the Registered
Titles (Torrens) | ||||||
7 | Act, or by the opinion of an attorney-at-law,
to be a first
| ||||||
8 | lien upon the real estate therein described, and real | ||||||
9 | estate shall not be
deemed to be encumbered within the | ||||||
10 | meaning of this subsection (3) by reason
of the existence | ||||||
11 | of instruments reserving rights-of-way, sewer rights and
| ||||||
12 | rights in wells, building restrictions or other | ||||||
13 | restrictive covenants, nor
by reason of the fact it is | ||||||
14 | subject to lease under which rents or profits
are reserved | ||||||
15 | by the owners.
| ||||||
16 | (4) The purchase of marketable investment securities.
| ||||||
17 | (5) The liability to a state bank of a person who is an | ||||||
18 | accommodation
party to, or guarantor of payment for, any | ||||||
19 | evidence of indebtedness of
another person who obtains a | ||||||
20 | loan from or discounts paper with or sells
paper to the | ||||||
21 | state bank; but the total liability to a
state bank of a | ||||||
22 | person as an accommodation party or guarantor of payment in
| ||||||
23 | respect of such evidences of indebtedness shall not exceed | ||||||
24 | 25% of
the amount of
the
unimpaired capital and unimpaired | ||||||
25 | surplus
of the bank; provided however that the liability of | ||||||
26 | an accommodation party
to paper excepted under subsection 2 |
| |||||||
| |||||||
1 | of this Section shall not be included in
the
computation of | ||||||
2 | this limitation.
| ||||||
3 | (6) The liability to a state bank of a person, who as a | ||||||
4 | guarantor,
guarantees collection of the obligation or | ||||||
5 | indebtedness of another person.
| ||||||
6 | The total liabilities of any one person, for money | ||||||
7 | borrowed, or
otherwise, shall not exceed 25% of the deposits of | ||||||
8 | the bank, and
those total liabilities shall at no time exceed | ||||||
9 | 50% of the amount
of the
unimpaired capital and unimpaired | ||||||
10 | surplus of the bank.
Absent an actual unremedied breach, the | ||||||
11 | obligation or responsibility for
breach of warranties or | ||||||
12 | representations, express or implied, of a person
transferring | ||||||
13 | negotiable or non-negotiable paper to a bank without recourse
| ||||||
14 | and without guaranty of payment, shall not be included in | ||||||
15 | determining the
amount of liabilities of the person to the bank | ||||||
16 | for borrowed money
or otherwise; and in the event of and to the | ||||||
17 | extent of an unremedied breach,
the amount remaining unpaid for | ||||||
18 | principal and interest on the paper in
respect of which the | ||||||
19 | unremedied breach exists shall thereafter for
the purpose of | ||||||
20 | determining whether subsequent transactions giving rise to
| ||||||
21 | additional liability of the person to the state bank for | ||||||
22 | borrowed money or
otherwise are within the limitations of | ||||||
23 | Sections 32 through 34 of this
Act, be included in computing | ||||||
24 | the amount of liabilities of the
person for borrowed money or | ||||||
25 | otherwise.
| ||||||
26 | The liability of a person to a state bank on account of
|
| |||||||
| |||||||
1 | acceptances
made or issued by the state bank on behalf of the | ||||||
2 | person shall be
included in the computation of the total | ||||||
3 | liabilities of the person for money
borrowed except to the | ||||||
4 | extent the acceptances grow out of
transactions of the | ||||||
5 | character described in subsection (6) of Section 34 of this
Act | ||||||
6 | and are otherwise within the limitations of that subsection;
| ||||||
7 | provided nevertheless
that any such excepted acceptances | ||||||
8 | acquired by the state bank which
accepted the same shall be | ||||||
9 | included in the computation of the liabilities
of the person to | ||||||
10 | the state bank for money borrowed.
| ||||||
11 | The Secretary may adopt rules to address the funding by | ||||||
12 | banks of any loan commitment, when such funding would involve | ||||||
13 | additional extensions of credit to be made after the unimpaired | ||||||
14 | capital and unimpaired surplus of the bank have decreased and | ||||||
15 | the Secretary determines that such decrease in unimpaired | ||||||
16 | capital and unimpaired surplus would cause the additional | ||||||
17 | extensions of credit to result in an unsafe and unsound | ||||||
18 | condition. | ||||||
19 | (Source: P.A. 92-336, eff. 8-10-01; 92-573, eff. 6-26-02.)
| ||||||
20 | (205 ILCS 5/40) (from Ch. 17, par. 350)
| ||||||
21 | Sec. 40. Prohibited activities. The Commissioner, deputy | ||||||
22 | commissioners, and employees
of the Office of Banks and Real | ||||||
23 | Estate shall be subject to the restrictions
provided in Section | ||||||
24 | 2.5 of the Division of Banking Office of Banks and Real Estate | ||||||
25 | Act including,
without limitation, the restrictions on (i) |
| |||||||
| |||||||
1 | owning shares of stock or holding
any other equity interest in | ||||||
2 | an entity regulated under this Act or in any
corporation or | ||||||
3 | company that owns or controls an entity regulated under this
| ||||||
4 | Act; (ii) being an officer, director, employee, or agent of an | ||||||
5 | entity regulated
under this Act; and (iii) obtaining a loan or | ||||||
6 | accepting a gratuity from an
entity regulated under this Act.
| ||||||
7 | (Source: P.A. 89-208, eff. 9-29-95; 89-508, eff. 7-3-96.)
| ||||||
8 | (205 ILCS 5/48) (from Ch. 17, par. 359)
| ||||||
9 | Sec. 48. Secretary's powers; duties. The Secretary shall | ||||||
10 | have the
powers and authority, and is charged with the duties | ||||||
11 | and responsibilities
designated in this Act, and a State bank | ||||||
12 | shall not be subject to any
other visitorial power other than | ||||||
13 | as authorized by this Act, except those
vested in the courts, | ||||||
14 | or upon prior consultation with the Secretary, a
foreign bank | ||||||
15 | regulator with an appropriate supervisory interest in the | ||||||
16 | parent
or affiliate of a state bank. In the performance of the | ||||||
17 | Secretary's
duties:
| ||||||
18 | (1) The Commissioner shall call for statements from all | ||||||
19 | State banks
as provided in Section 47 at least one time during | ||||||
20 | each calendar quarter.
| ||||||
21 | (2) (a) The Commissioner, as often as the Commissioner | ||||||
22 | shall deem
necessary or
proper, and no less frequently than 18 | ||||||
23 | months following the preceding
examination, shall appoint a | ||||||
24 | suitable person or
persons to make an examination of the | ||||||
25 | affairs of every State bank,
except that for every eligible |
| |||||||
| |||||||
1 | State bank, as defined by regulation, the
Commissioner in lieu | ||||||
2 | of the examination may accept on an alternating basis the
| ||||||
3 | examination made by the eligible State bank's appropriate | ||||||
4 | federal banking
agency pursuant to Section 111 of the Federal | ||||||
5 | Deposit Insurance Corporation
Improvement Act of 1991, | ||||||
6 | provided the appropriate federal banking agency has
made such | ||||||
7 | an examination. A person so appointed shall not be a | ||||||
8 | stockholder or
officer or employee of
any bank which that | ||||||
9 | person may be directed to examine, and shall have
powers to | ||||||
10 | make a thorough examination into all the affairs of the bank | ||||||
11 | and
in so doing to examine any of the officers or agents or | ||||||
12 | employees thereof
on oath and shall make a full and detailed | ||||||
13 | report of the condition of the
bank to the Commissioner. In | ||||||
14 | making the examination the examiners shall
include an | ||||||
15 | examination of the affairs of all the affiliates of the bank, | ||||||
16 | as
defined in subsection (b) of Section 35.2 of this Act, or | ||||||
17 | subsidiaries of the
bank as shall be
necessary to disclose | ||||||
18 | fully the conditions of the subsidiaries or
affiliates, the | ||||||
19 | relations
between the bank and the subsidiaries or affiliates | ||||||
20 | and the effect of those
relations upon
the affairs of the bank, | ||||||
21 | and in connection therewith shall have power to
examine any of | ||||||
22 | the officers, directors, agents, or employees of the
| ||||||
23 | subsidiaries or affiliates
on oath. After May 31, 1997, the | ||||||
24 | Commissioner may enter into cooperative
agreements
with state | ||||||
25 | regulatory authorities of other states to provide for | ||||||
26 | examination of
State bank branches in those states, and the |
| |||||||
| |||||||
1 | Commissioner may accept reports
of examinations of State bank | ||||||
2 | branches from those state regulatory authorities.
These | ||||||
3 | cooperative agreements may set forth the manner in which the | ||||||
4 | other state
regulatory authorities may be compensated for | ||||||
5 | examinations prepared for and
submitted to the Commissioner.
| ||||||
6 | (b) After May 31, 1997, the Commissioner is authorized to | ||||||
7 | examine, as often
as the Commissioner shall deem necessary or | ||||||
8 | proper, branches of out-of-state
banks. The Commissioner may | ||||||
9 | establish and may assess fees to be paid to the
Commissioner | ||||||
10 | for examinations under this subsection (b). The fees shall be
| ||||||
11 | borne by the out-of-state bank, unless the fees are borne by | ||||||
12 | the state
regulatory authority that chartered the out-of-state | ||||||
13 | bank, as determined by a
cooperative agreement between the | ||||||
14 | Commissioner and the state regulatory
authority that chartered | ||||||
15 | the out-of-state bank.
| ||||||
16 | (2.5) Whenever any State bank, any subsidiary or affiliate | ||||||
17 | of a State
bank, or after May 31, 1997, any branch of an | ||||||
18 | out-of-state bank causes to
be performed, by contract or | ||||||
19 | otherwise, any bank services
for itself, whether on or off its | ||||||
20 | premises:
| ||||||
21 | (a) that performance shall be subject to examination by | ||||||
22 | the Commissioner
to the same extent as if services were | ||||||
23 | being performed by the bank or, after
May 31, 1997, branch | ||||||
24 | of the out-of-state bank itself
on its own premises; and
| ||||||
25 | (b) the bank or, after May 31, 1997, branch of the | ||||||
26 | out-of-state bank
shall notify the Commissioner of the |
| |||||||
| |||||||
1 | existence of a service
relationship. The notification | ||||||
2 | shall be submitted with the first statement
of condition | ||||||
3 | (as required by Section 47 of this Act) due after the | ||||||
4 | making
of the service contract or the performance of the | ||||||
5 | service, whichever occurs
first. The Commissioner shall be | ||||||
6 | notified of each subsequent contract in
the same manner.
| ||||||
7 | For purposes of this subsection (2.5), the term "bank | ||||||
8 | services" means
services such as sorting and posting of checks | ||||||
9 | and deposits, computation
and posting of interest and other | ||||||
10 | credits and charges, preparation and
mailing of checks, | ||||||
11 | statements, notices, and similar items, or any other
clerical, | ||||||
12 | bookkeeping, accounting, statistical, or similar functions
| ||||||
13 | performed for a State bank, including but not limited to | ||||||
14 | electronic data
processing related to those bank services.
| ||||||
15 | (3) The expense of administering this Act, including the | ||||||
16 | expense of
the examinations of State banks as provided in this | ||||||
17 | Act, shall to the extent
of the amounts resulting from the fees | ||||||
18 | provided for in paragraphs (a),
(a-2), and (b) of this | ||||||
19 | subsection (3) be assessed against and borne by the
State | ||||||
20 | banks:
| ||||||
21 | (a) Each bank shall pay to the Secretary a Call Report | ||||||
22 | Fee which
shall be paid in quarterly installments equal
to | ||||||
23 | one-fourth of the sum of the annual fixed fee of $800, plus | ||||||
24 | a variable
fee based on the assets shown on the quarterly | ||||||
25 | statement of condition
delivered to the Secretary in | ||||||
26 | accordance with Section 47 for the
preceding quarter |
| |||||||
| |||||||
1 | according to the following schedule: 16¢ per $1,000 of
the | ||||||
2 | first $5,000,000 of total assets, 15¢ per $1,000 of the | ||||||
3 | next
$20,000,000 of total assets, 13¢ per $1,000 of the | ||||||
4 | next $75,000,000 of
total assets, 9¢ per $1,000 of the next | ||||||
5 | $400,000,000 of total assets, 7¢
per $1,000 of the next | ||||||
6 | $500,000,000 of total assets, and 5¢ per $1,000 of
all | ||||||
7 | assets in excess of $1,000,000,000, of the State bank. The | ||||||
8 | Call Report
Fee shall be calculated by the Secretary and | ||||||
9 | billed to the banks for
remittance at the time of the | ||||||
10 | quarterly statements of condition
provided for in Section | ||||||
11 | 47. The Secretary may require payment of the fees
provided | ||||||
12 | in this Section by an electronic transfer of funds or an | ||||||
13 | automatic
debit of an account of each of the State banks. | ||||||
14 | In case more than one
examination of any
bank is deemed by | ||||||
15 | the Secretary to be necessary in any examination
frequency | ||||||
16 | cycle specified in subsection 2(a) of this Section,
and is | ||||||
17 | performed at his direction, the Secretary may
assess a | ||||||
18 | reasonable additional fee to recover the cost of the | ||||||
19 | additional
examination; provided, however, that an | ||||||
20 | examination conducted at the request
of the State Treasurer | ||||||
21 | pursuant to the Uniform Disposition of Unclaimed
Property | ||||||
22 | Act shall not be deemed to be an additional examination | ||||||
23 | under this
Section.
In lieu
of the method and amounts set | ||||||
24 | forth in this paragraph (a) for the calculation
of the Call | ||||||
25 | Report Fee, the Secretary may specify by
rule that the Call | ||||||
26 | Report Fees provided by this Section may be assessed
|
| |||||||
| |||||||
1 | semiannually or some other period and may provide in the | ||||||
2 | rule the formula to
be
used for calculating and assessing | ||||||
3 | the periodic Call Report Fees to be paid by
State
banks.
| ||||||
4 | (a-1) If in the opinion of the Commissioner an | ||||||
5 | emergency exists or
appears likely, the Commissioner may | ||||||
6 | assign an examiner or examiners to
monitor the affairs of a | ||||||
7 | State bank with whatever frequency he deems
appropriate, | ||||||
8 | including but not limited to a daily basis. The reasonable
| ||||||
9 | and necessary expenses of the Commissioner during the | ||||||
10 | period of the monitoring
shall be borne by the subject | ||||||
11 | bank. The Commissioner shall furnish the
State bank a | ||||||
12 | statement of time and expenses if requested to do so within | ||||||
13 | 30
days of the conclusion of the monitoring period.
| ||||||
14 | (a-2) On and after January 1, 1990, the reasonable and | ||||||
15 | necessary
expenses of the Commissioner during examination | ||||||
16 | of the performance of
electronic data processing services | ||||||
17 | under subsection (2.5) shall be
borne by the banks for | ||||||
18 | which the services are provided. An amount, based
upon a | ||||||
19 | fee structure prescribed by the Commissioner, shall be paid | ||||||
20 | by the
banks or, after May 31, 1997, branches of | ||||||
21 | out-of-state banks receiving the
electronic data | ||||||
22 | processing services along with the
Call Report Fee assessed | ||||||
23 | under paragraph (a) of this
subsection (3).
| ||||||
24 | (a-3) After May 31, 1997, the reasonable and necessary | ||||||
25 | expenses of the
Commissioner during examination of the | ||||||
26 | performance of electronic data
processing services under |
| |||||||
| |||||||
1 | subsection (2.5) at or on behalf of branches of
| ||||||
2 | out-of-state banks shall be borne by the out-of-state | ||||||
3 | banks, unless those
expenses are borne by the state | ||||||
4 | regulatory authorities that chartered the
out-of-state | ||||||
5 | banks, as determined by cooperative agreements between the
| ||||||
6 | Commissioner and the state regulatory authorities that | ||||||
7 | chartered the
out-of-state banks.
| ||||||
8 | (b) "Fiscal year" for purposes of this Section 48 is | ||||||
9 | defined as a
period beginning July 1 of any year and ending | ||||||
10 | June 30 of the next year.
The Commissioner shall receive | ||||||
11 | for each fiscal year, commencing with the
fiscal year | ||||||
12 | ending June 30, 1987, a contingent fee equal to the lesser | ||||||
13 | of
the aggregate of the fees paid by all State banks under | ||||||
14 | paragraph (a) of
subsection (3) for that year, or the | ||||||
15 | amount, if any, whereby the aggregate
of the administration | ||||||
16 | expenses, as defined in paragraph (c), for that
fiscal year | ||||||
17 | exceeds the sum of the aggregate of the fees payable by all
| ||||||
18 | State banks for that year under paragraph (a) of subsection | ||||||
19 | (3),
plus any amounts transferred into the Bank and Trust | ||||||
20 | Company Fund from the
State Pensions Fund for that year,
| ||||||
21 | plus all
other amounts collected by the Commissioner for | ||||||
22 | that year under any
other provision of this Act, plus the | ||||||
23 | aggregate of all fees
collected for that year by the | ||||||
24 | Commissioner under the Corporate Fiduciary
Act, excluding | ||||||
25 | the receivership fees provided for in Section 5-10 of the
| ||||||
26 | Corporate Fiduciary Act, and the Foreign Banking Office |
| |||||||
| |||||||
1 | Act.
The aggregate amount of the contingent
fee thus | ||||||
2 | arrived at for any fiscal year shall be apportioned | ||||||
3 | amongst,
assessed upon, and paid by the State banks and | ||||||
4 | foreign banking corporations,
respectively, in the same | ||||||
5 | proportion
that the fee of each under paragraph (a) of | ||||||
6 | subsection (3), respectively,
for that year bears to the | ||||||
7 | aggregate for that year of the fees collected
under | ||||||
8 | paragraph (a) of subsection (3). The aggregate amount of | ||||||
9 | the
contingent fee, and the portion thereof to be assessed | ||||||
10 | upon each State
bank and foreign banking corporation,
| ||||||
11 | respectively, shall be determined by the Commissioner and | ||||||
12 | shall be paid by
each, respectively, within 120 days of the | ||||||
13 | close of the period for which
the contingent fee is | ||||||
14 | computed and is payable, and the Commissioner shall
give 20 | ||||||
15 | days advance notice of the amount of the contingent fee | ||||||
16 | payable by
the State bank and of the date fixed by the | ||||||
17 | Commissioner for payment of
the fee.
| ||||||
18 | (c) The "administration expenses" for any fiscal year | ||||||
19 | shall mean the
ordinary and contingent expenses for that | ||||||
20 | year incident to making the
examinations provided for by, | ||||||
21 | and for otherwise administering, this Act,
the Corporate | ||||||
22 | Fiduciary Act, excluding the expenses paid from the
| ||||||
23 | Corporate Fiduciary Receivership account in the Bank and | ||||||
24 | Trust Company
Fund, the Foreign Banking Office Act,
the | ||||||
25 | Electronic Fund Transfer Act,
and the Illinois Bank | ||||||
26 | Examiners'
Education Foundation Act, including all |
| |||||||
| |||||||
1 | salaries and other
compensation paid for personal services | ||||||
2 | rendered for the State by
officers or employees of the | ||||||
3 | State, including the Commissioner and the
Deputy | ||||||
4 | Commissioners, communication equipment and services, | ||||||
5 | office furnishings all expenditures for telephone and | ||||||
6 | telegraph
charges, postage and postal charges, office | ||||||
7 | stationery, supplies and
services, and office furniture | ||||||
8 | and equipment, including typewriters and
copying and | ||||||
9 | duplicating machines and filing equipment , surety bond
| ||||||
10 | premiums, and travel expenses of those officers and | ||||||
11 | employees, employees,
expenditures or charges for the | ||||||
12 | acquisition, enlargement or improvement
of, or for the use | ||||||
13 | of, any office space, building, or structure, or
| ||||||
14 | expenditures for the maintenance thereof or for furnishing | ||||||
15 | heat, light,
or power with respect thereto, all to the | ||||||
16 | extent that those expenditures
are directly incidental to | ||||||
17 | such examinations or administration.
The Commissioner | ||||||
18 | shall not be required by paragraphs (c) or (d-1) of this
| ||||||
19 | subsection (3) to maintain in any fiscal year's budget | ||||||
20 | appropriated reserves
for accrued vacation and accrued | ||||||
21 | sick leave that is required to be paid to
employees of the | ||||||
22 | Commissioner upon termination of their service with the
| ||||||
23 | Commissioner in an amount that is more than is reasonably | ||||||
24 | anticipated to be
necessary for any anticipated turnover in | ||||||
25 | employees, whether due to normal
attrition or due to | ||||||
26 | layoffs, terminations, or resignations.
|
| |||||||
| |||||||
1 | (d) The aggregate of all fees collected by the | ||||||
2 | Secretary under
this Act, the Corporate Fiduciary Act,
or | ||||||
3 | the Foreign Banking Office Act on
and after July 1, 1979, | ||||||
4 | shall be paid promptly after receipt of the same,
| ||||||
5 | accompanied by a detailed statement thereof, into the State | ||||||
6 | treasury and
shall be set apart in a special fund to be | ||||||
7 | known as the "Bank and Trust
Company Fund", except as | ||||||
8 | provided in paragraph (c) of subsection (11) of
this | ||||||
9 | Section. All earnings received from investments of funds in | ||||||
10 | the Bank
and
Trust Company Fund shall be deposited in the | ||||||
11 | Bank and Trust Company Fund
and may be used for the same | ||||||
12 | purposes as fees deposited in that Fund. The
amount from | ||||||
13 | time to time deposited into the Bank and
Trust Company Fund | ||||||
14 | shall be used: (i) to offset the ordinary administrative
| ||||||
15 | expenses of the Secretary as defined in
this Section or | ||||||
16 | (ii) as a credit against fees under paragraph (d-1) of this | ||||||
17 | subsection (3). Nothing in this amendatory Act of 1979 | ||||||
18 | shall prevent
continuing the practice of paying expenses | ||||||
19 | involving salaries, retirement,
social security, and | ||||||
20 | State-paid insurance premiums of State officers by
| ||||||
21 | appropriations from the General Revenue Fund. However, the | ||||||
22 | General Revenue
Fund shall be reimbursed for those payments | ||||||
23 | made on and after July 1, 1979,
by an annual transfer of | ||||||
24 | funds from the Bank and Trust Company Fund. Moneys in the | ||||||
25 | Bank and Trust Company Fund may be transferred to the | ||||||
26 | Professions Indirect Cost Fund, as authorized under |
| |||||||
| |||||||
1 | Section 2105-300 of the Department of Professional | ||||||
2 | Regulation Law of the Civil Administrative Code of | ||||||
3 | Illinois.
| ||||||
4 | Notwithstanding provisions in the State Finance Act, | ||||||
5 | as now or hereafter amended, or any other law to the | ||||||
6 | contrary, the sum of $18,788,847 shall be transferred from | ||||||
7 | the Bank and Trust Company Fund to the Financial | ||||||
8 | Institutions Settlement of 2008 Fund on the effective date | ||||||
9 | of this amendatory Act of the 95th General Assembly, or as | ||||||
10 | soon thereafter as practical. | ||||||
11 | Notwithstanding provisions in the State Finance Act, | ||||||
12 | as now or hereafter amended, or any other law to the | ||||||
13 | contrary, the Governor may, during any fiscal year through | ||||||
14 | January 10, 2011, from time to time direct the State | ||||||
15 | Treasurer and Comptroller to transfer a specified sum not | ||||||
16 | exceeding 10% of the revenues to be deposited into the Bank | ||||||
17 | and Trust Company Fund during that fiscal year from that | ||||||
18 | Fund to the General Revenue Fund in order to help defray | ||||||
19 | the State's operating costs for the fiscal year. | ||||||
20 | Notwithstanding provisions in the State Finance Act, as now | ||||||
21 | or hereafter amended, or any other law to the contrary, the | ||||||
22 | total sum transferred during any fiscal year through | ||||||
23 | January 10, 2011, from the Bank and Trust Company Fund to | ||||||
24 | the General Revenue Fund pursuant to this provision shall | ||||||
25 | not exceed during any fiscal year 10% of the revenues to be | ||||||
26 | deposited into the Bank and Trust Company Fund during that |
| |||||||
| |||||||
1 | fiscal year. The State Treasurer and Comptroller shall | ||||||
2 | transfer the amounts designated under this Section as soon | ||||||
3 | as may be practicable after receiving the direction to | ||||||
4 | transfer from the Governor.
| ||||||
5 | (d-1) Adequate funds shall be available in the Bank and | ||||||
6 | Trust
Company Fund to permit the timely payment of | ||||||
7 | administration expenses. In
each fiscal year the total | ||||||
8 | administration expenses shall be deducted from
the total | ||||||
9 | fees collected by the Commissioner and the remainder | ||||||
10 | transferred
into the Cash Flow Reserve Account, unless the | ||||||
11 | balance of the Cash Flow
Reserve Account prior to the | ||||||
12 | transfer equals or exceeds
one-fourth of the total initial | ||||||
13 | appropriations from the Bank and Trust
Company Fund for the | ||||||
14 | subsequent year, in which case the remainder shall be
| ||||||
15 | credited to State banks and foreign banking corporations
| ||||||
16 | and applied against their fees for the subsequent
year. The | ||||||
17 | amount credited to each State bank and foreign banking | ||||||
18 | corporation
shall be in the same proportion as the
Call | ||||||
19 | Report Fees paid by each for the year bear to the total | ||||||
20 | Call Report
Fees collected for the year. If, after a | ||||||
21 | transfer to the Cash Flow Reserve
Account is made or if no | ||||||
22 | remainder is available for transfer, the balance
of the | ||||||
23 | Cash Flow Reserve Account is less than one-fourth of the | ||||||
24 | total
initial appropriations for the subsequent year and | ||||||
25 | the amount transferred
is less than 5% of the total Call | ||||||
26 | Report Fees for the year, additional
amounts needed to make |
| |||||||
| |||||||
1 | the transfer equal to 5% of the total Call Report
Fees for | ||||||
2 | the year shall be apportioned amongst, assessed upon, and
| ||||||
3 | paid by the State banks and foreign banking corporations
in | ||||||
4 | the same proportion that the Call Report Fees of each,
| ||||||
5 | respectively, for the year bear to the total Call Report | ||||||
6 | Fees collected for
the year. The additional amounts | ||||||
7 | assessed shall be transferred into the
Cash Flow Reserve | ||||||
8 | Account. For purposes of this paragraph (d-1), the
| ||||||
9 | calculation of the fees collected by the Commissioner shall | ||||||
10 | exclude the
receivership fees provided for in Section 5-10 | ||||||
11 | of the Corporate Fiduciary Act.
| ||||||
12 | (e) The Commissioner may upon request certify to any | ||||||
13 | public record
in his keeping and shall have authority to | ||||||
14 | levy a reasonable charge for
issuing certifications of any | ||||||
15 | public record in his keeping.
| ||||||
16 | (f) In addition to fees authorized elsewhere in this | ||||||
17 | Act, the
Commissioner
may, in connection with a review, | ||||||
18 | approval, or provision of a service, levy a
reasonable | ||||||
19 | charge to recover the cost of the review, approval, or | ||||||
20 | service.
| ||||||
21 | (4) Nothing contained in this Act shall be construed to | ||||||
22 | limit the
obligation relative to examinations and reports of | ||||||
23 | any State bank, deposits
in which are to any extent insured by | ||||||
24 | the United States or any agency
thereof, nor to limit in any | ||||||
25 | way the powers of the Commissioner with
reference to | ||||||
26 | examinations and reports of that bank.
|
| |||||||
| |||||||
1 | (5) The nature and condition of the assets in or investment | ||||||
2 | of any
bonus, pension, or profit sharing plan for officers or | ||||||
3 | employees of every
State bank or, after May 31, 1997, branch of | ||||||
4 | an out-of-state bank shall be
deemed to be included in the | ||||||
5 | affairs of that State
bank or branch of an out-of-state bank | ||||||
6 | subject to examination by the
Commissioner under the
provisions | ||||||
7 | of subsection (2) of this Section, and if the Commissioner
| ||||||
8 | shall find from an examination that the condition of or | ||||||
9 | operation
of the investments or assets of the plan is unlawful, | ||||||
10 | fraudulent, or
unsafe, or that any trustee has abused his | ||||||
11 | trust, the Commissioner
shall, if the situation so found by the | ||||||
12 | Commissioner shall not be
corrected to his satisfaction within | ||||||
13 | 60 days after the Commissioner has
given notice to the board of | ||||||
14 | directors of the State bank or out-of-state
bank of his
| ||||||
15 | findings, report the facts to the Attorney General who shall | ||||||
16 | thereupon
institute proceedings against the State bank or | ||||||
17 | out-of-state bank, the
board of directors
thereof, or the | ||||||
18 | trustees under such plan as the nature of the case may require.
| ||||||
19 | (6) The Commissioner shall have the power:
| ||||||
20 | (a) To promulgate reasonable rules for the purpose of
| ||||||
21 | administering the provisions of this Act.
| ||||||
22 | (a-5) To impose conditions on any approval issued by | ||||||
23 | the Commissioner
if he determines that the conditions are | ||||||
24 | necessary or appropriate. These
conditions shall be | ||||||
25 | imposed in writing and shall continue
in effect for the | ||||||
26 | period prescribed by the Commissioner.
|
| |||||||
| |||||||
1 | (b) To issue orders
against any person, if the | ||||||
2 | Commissioner has
reasonable cause to believe that an unsafe | ||||||
3 | or unsound banking practice
has occurred, is occurring, or | ||||||
4 | is about to occur, if any person has violated,
is | ||||||
5 | violating, or is about to violate any law, rule, or written
| ||||||
6 | agreement with the Commissioner, or
for the purpose of | ||||||
7 | administering the provisions of
this Act and any rule | ||||||
8 | promulgated in accordance with this Act.
| ||||||
9 | (b-1) To enter into agreements with a bank establishing | ||||||
10 | a program to
correct the condition of the bank or its | ||||||
11 | practices.
| ||||||
12 | (c) To appoint hearing officers to execute any of the | ||||||
13 | powers granted to
the Commissioner under this Section for | ||||||
14 | the purpose of administering this
Act and any rule | ||||||
15 | promulgated in accordance with this Act
and otherwise to | ||||||
16 | authorize, in writing, an officer or employee of the Office
| ||||||
17 | of
Banks and Real Estate to exercise his powers under this | ||||||
18 | Act.
| ||||||
19 | (d) To subpoena witnesses, to compel their attendance, | ||||||
20 | to administer
an oath, to examine any person under oath, | ||||||
21 | and to require the production of
any relevant books, | ||||||
22 | papers, accounts, and documents in the course of and
| ||||||
23 | pursuant to any investigation being conducted, or any | ||||||
24 | action being taken,
by the Commissioner in respect of any | ||||||
25 | matter relating to the duties imposed
upon, or the powers | ||||||
26 | vested in, the Commissioner under the provisions of
this |
| |||||||
| |||||||
1 | Act or any rule promulgated in accordance with this Act.
| ||||||
2 | (e) To conduct hearings.
| ||||||
3 | (7) Whenever, in the opinion of the Commissioner, any | ||||||
4 | director,
officer, employee, or agent of a State bank
or any | ||||||
5 | subsidiary or bank holding company of the bank
or, after May | ||||||
6 | 31, 1997, of any
branch of an out-of-state bank
or any | ||||||
7 | subsidiary or bank holding company of the bank
shall have | ||||||
8 | violated any law,
rule, or order relating to that bank
or any | ||||||
9 | subsidiary or bank holding company of the bank, shall have
| ||||||
10 | obstructed or impeded any examination or investigation by the | ||||||
11 | Commissioner, shall have engaged in an unsafe or
unsound | ||||||
12 | practice in conducting the business of that bank
or any | ||||||
13 | subsidiary or bank holding company of the bank,
or shall have
| ||||||
14 | violated any law or engaged or participated in any unsafe or | ||||||
15 | unsound practice
in connection with any financial institution | ||||||
16 | or other business entity such that
the character and fitness of | ||||||
17 | the director, officer, employee, or agent does not
assure | ||||||
18 | reasonable promise of safe and sound operation of the State | ||||||
19 | bank, the
Commissioner
may issue an order of removal.
If, in | ||||||
20 | the opinion of the Commissioner, any former director, officer,
| ||||||
21 | employee,
or agent of a State bank
or any subsidiary or bank | ||||||
22 | holding company of the bank, prior to the
termination of his or | ||||||
23 | her service with
that bank
or any subsidiary or bank holding | ||||||
24 | company of the bank, violated any law,
rule, or order relating | ||||||
25 | to that
State bank
or any subsidiary or bank holding company of | ||||||
26 | the bank, obstructed or impeded
any examination or |
| |||||||
| |||||||
1 | investigation by the Commissioner, engaged in an unsafe or | ||||||
2 | unsound practice in conducting the
business of that bank
or any | ||||||
3 | subsidiary or bank holding company of the bank,
or violated any | ||||||
4 | law or engaged or participated in any
unsafe or unsound | ||||||
5 | practice in connection with any financial institution or
other | ||||||
6 | business entity such that the character and fitness of the | ||||||
7 | director,
officer, employee, or agent would not have assured | ||||||
8 | reasonable promise of safe
and sound operation of the State | ||||||
9 | bank, the Commissioner may issue an order
prohibiting that | ||||||
10 | person from
further
service with a bank
or any subsidiary or | ||||||
11 | bank holding company of the bank
as a director, officer, | ||||||
12 | employee, or agent. An order
issued pursuant to this subsection | ||||||
13 | shall be served upon the
director,
officer, employee, or agent. | ||||||
14 | A copy of the order shall be sent to each
director of the bank | ||||||
15 | affected by registered mail. The person affected by
the action | ||||||
16 | may request a hearing before the State Banking Board within 10
| ||||||
17 | days after receipt of the order. The hearing shall be held by
| ||||||
18 | the Board within 30 days after the request has been received by | ||||||
19 | the Board.
The Board shall make a determination approving, | ||||||
20 | modifying, or disapproving
the order of the Commissioner as its | ||||||
21 | final administrative decision. If a
hearing is held by the | ||||||
22 | Board, the Board shall make its determination within
60 days | ||||||
23 | from the conclusion of the hearing. Any person affected by a
| ||||||
24 | decision of the Board under this subsection (7) of Section 48 | ||||||
25 | of this Act
may have the decision reviewed only under and in | ||||||
26 | accordance with the
Administrative Review Law and the rules |
| |||||||
| |||||||
1 | adopted pursuant thereto. A copy of
the order shall also be | ||||||
2 | served upon the bank of which he is a director,
officer, | ||||||
3 | employee, or agent, whereupon he shall cease to be a director,
| ||||||
4 | officer, employee, or agent of that bank. The Commissioner may
| ||||||
5 | institute a civil action against the director, officer, or | ||||||
6 | agent of the
State bank or, after May 31, 1997, of the branch | ||||||
7 | of the out-of-state bank
against whom any order provided for by | ||||||
8 | this subsection (7) of
this Section 48 has been issued, and | ||||||
9 | against the State bank or, after May 31,
1997, out-of-state | ||||||
10 | bank, to enforce
compliance with or to enjoin any violation of | ||||||
11 | the terms of the order.
Any person who has been the subject of | ||||||
12 | an order of removal
or
an order of prohibition issued by the | ||||||
13 | Commissioner under
this subsection or Section 5-6 of the | ||||||
14 | Corporate Fiduciary Act may not
thereafter serve as director, | ||||||
15 | officer, employee, or agent of any State bank
or of any branch | ||||||
16 | of any out-of-state bank,
or of any corporate fiduciary, as | ||||||
17 | defined in Section 1-5.05 of the
Corporate
Fiduciary Act, or of | ||||||
18 | any other entity that is subject to licensure or
regulation by | ||||||
19 | the Commissioner or the Office of Banks and Real Estate unless
| ||||||
20 | the Commissioner has granted prior approval in writing.
| ||||||
21 | For purposes of this paragraph (7), "bank holding company" | ||||||
22 | has the
meaning prescribed in Section 2 of the Illinois Bank | ||||||
23 | Holding Company Act of
1957.
| ||||||
24 | (8) The Commissioner may impose civil penalties of up to | ||||||
25 | $100,000 $10,000 against
any person for each violation of any | ||||||
26 | provision of this Act, any rule
promulgated in accordance with |
| |||||||
| |||||||
1 | this Act, any order of the Commissioner, or
any other action | ||||||
2 | which in the Commissioner's discretion is an unsafe or
unsound | ||||||
3 | banking practice.
| ||||||
4 | (9) The Commissioner may impose civil penalties of up to | ||||||
5 | $100
against any person for the first failure to comply with | ||||||
6 | reporting
requirements set forth in the report of examination | ||||||
7 | of the bank and up to
$200 for the second and subsequent | ||||||
8 | failures to comply with those reporting
requirements.
| ||||||
9 | (10) All final administrative decisions of the | ||||||
10 | Commissioner hereunder
shall be subject to judicial review | ||||||
11 | pursuant to the provisions of the
Administrative Review Law. | ||||||
12 | For matters involving administrative review,
venue shall be in | ||||||
13 | either Sangamon County or Cook County.
| ||||||
14 | (11) The endowment fund for the Illinois Bank Examiners' | ||||||
15 | Education
Foundation shall be administered as follows:
| ||||||
16 | (a) (Blank).
| ||||||
17 | (b) The Foundation is empowered to receive voluntary | ||||||
18 | contributions,
gifts, grants, bequests, and donations on | ||||||
19 | behalf of the Illinois Bank
Examiners' Education | ||||||
20 | Foundation from national banks and other persons for
the | ||||||
21 | purpose of funding the endowment of the Illinois Bank | ||||||
22 | Examiners'
Education Foundation.
| ||||||
23 | (c) The aggregate of all special educational fees | ||||||
24 | collected by the
Commissioner and property received by the | ||||||
25 | Commissioner on behalf of the
Illinois Bank Examiners' | ||||||
26 | Education Foundation under this subsection
(11) on or after |
| |||||||
| |||||||
1 | June 30, 1986, shall be either (i) promptly paid after
| ||||||
2 | receipt of the same, accompanied by a detailed statement | ||||||
3 | thereof, into the
State Treasury and shall be set apart in | ||||||
4 | a special fund to be known as "The
Illinois Bank Examiners' | ||||||
5 | Education Fund" to be invested by either the
Treasurer of | ||||||
6 | the State of Illinois in the Public Treasurers' Investment
| ||||||
7 | Pool or in any other investment he is authorized to make or | ||||||
8 | by the Illinois
State Board of Investment as the board of | ||||||
9 | trustees of the Illinois Bank
Examiners' Education | ||||||
10 | Foundation may direct or (ii) deposited into an account
| ||||||
11 | maintained in a commercial bank or corporate fiduciary in | ||||||
12 | the name of the
Illinois Bank Examiners' Education | ||||||
13 | Foundation pursuant to the order and
direction of the Board | ||||||
14 | of Trustees of the Illinois Bank Examiners' Education
| ||||||
15 | Foundation.
| ||||||
16 | (12) (Blank).
| ||||||
17 | (13) The Secretary may borrow funds from the General | ||||||
18 | Revenue Fund on behalf of the Bank and Trust Company Fund if | ||||||
19 | the Director of Banking certifies to the Governor that there is | ||||||
20 | an economic emergency affecting banking that requires a | ||||||
21 | borrowing to provide additional funds to the Bank and Trust | ||||||
22 | Company Fund. The borrowed funds shall be paid back within 3 | ||||||
23 | years and shall not exceed the total funding appropriated to | ||||||
24 | the Agency in the previous year. | ||||||
25 | (Source: P.A. 94-91, eff. 7-1-05; 95-1047, eff. 4-6-09.)
|
| |||||||
| |||||||
1 | (205 ILCS 5/51) (from Ch. 17, par. 363)
| ||||||
2 | Sec. 51. Capital impairment, etc.; correction.
| ||||||
3 | (a) If the Commissioner with respect to a State bank shall | ||||||
4 | find:
| ||||||
5 | (1) its capital is impaired or it is otherwise in an | ||||||
6 | unsound condition;
or
| ||||||
7 | (2) its business is being conducted in an unlawful, | ||||||
8 | including, without
limitation, in violation of any | ||||||
9 | provisions of State or federal law this Act , or in a | ||||||
10 | fraudulent
or unsafe manner; or
| ||||||
11 | (3) it is unable to continue operations; or
| ||||||
12 | (4) its examination has been obstructed or impeded; or
| ||||||
13 | (5) that losses have occurred or are likely to occur | ||||||
14 | that have or will deplete all or substantially all of the | ||||||
15 | State bank's capital; | ||||||
16 | the Commissioner may
give notice to the board of directors of | ||||||
17 | or his or her finding or findings. If the
situation so found by | ||||||
18 | the Commissioner shall not be corrected to his
satisfaction | ||||||
19 | within a period of at least 60 sixty but no more than 180
one | ||||||
20 | hundred and eighty days after receipt of such notice, which | ||||||
21 | period shall
be determined by the Commissioner and set forth in | ||||||
22 | the notice, the
Commissioner at the termination of said period | ||||||
23 | may shall take possession
and control of the bank and its | ||||||
24 | assets as in this Act provided for the
purpose of examination, | ||||||
25 | reorganization or liquidation through receivership.
| ||||||
26 | (b) If the Commissioner
has
given notice to the board of |
| |||||||
| |||||||
1 | directors of his findings, as provided in
subsection (a),
and | ||||||
2 | the time period prescribed in that notice has expired, the | ||||||
3 | Commissioner may
extend the time period prescribed in that | ||||||
4 | notice for such period as the
Commissioner
deems appropriate.
| ||||||
5 | (Source: P.A. 92-483, eff. 8-23-01.)
| ||||||
6 | (205 ILCS 5/52) (from Ch. 17, par. 364)
| ||||||
7 | Sec. 52. Capital impairment, etc.; emergency. If, in | ||||||
8 | addition to a finding as provided in Section 51, the
| ||||||
9 | Commissioner shall be of the opinion and shall find that an | ||||||
10 | emergency
exists which may result in the inability of the bank | ||||||
11 | to continue in its operations, meet the demands of its | ||||||
12 | depositors, or pay its obligations in the normal course of | ||||||
13 | business serious losses to the depositors , he may, in his
| ||||||
14 | discretion, without having given the notice provided for in | ||||||
15 | Section 51, and
whether or not proceedings under Section 51 | ||||||
16 | have been instituted or are
then pending, forthwith take | ||||||
17 | possession and control of the bank and its
assets for the | ||||||
18 | purpose of examination, reorganization or liquidation
through | ||||||
19 | receivership. For purposes of this Section, an emergency | ||||||
20 | includes, but is not limited to, when the bank is in an unsafe | ||||||
21 | or unsound condition that precludes continued operations or | ||||||
22 | when the interests of the bank's depositors are prejudiced.
| ||||||
23 | (Source: Laws 1965, p. 2020.)
| ||||||
24 | Section 20. The Illinois Bank Holding Company Act of 1957 |
| |||||||
| |||||||
1 | is amended by changing Sections 2 and 3.074 as follows:
| ||||||
2 | (205 ILCS 10/2) (from Ch. 17, par. 2502)
| ||||||
3 | Sec. 2. Unless the context requires otherwise:
| ||||||
4 | (a) "Bank" means any national banking association or any | ||||||
5 | bank, banking
association or savings bank, whether organized | ||||||
6 | under the laws of Illinois,
another state, the United States, | ||||||
7 | the District of Columbia, any territory of
the United States, | ||||||
8 | Puerto Rico, Guam, American Samoa or the Virgin Islands,
which | ||||||
9 | (1) accepts deposits that the depositor has a legal right to | ||||||
10 | withdraw on
demand by check or other negotiable order and (2) | ||||||
11 | engages in the business of
making commercial loans. "Bank" does | ||||||
12 | not include any organization operating
under Sections 25 or 25 | ||||||
13 | (a) of the Federal Reserve Act, or any organization
which does | ||||||
14 | not do business within the United States except as an incident | ||||||
15 | to
its activities outside the United States or any foreign | ||||||
16 | bank.
| ||||||
17 | (b) "Bank holding company" means any company that controls | ||||||
18 | or has control
over any bank or over any company that is or | ||||||
19 | becomes a bank holding company by
virtue of this Act.
| ||||||
20 | (c) "Banking office" means the principal office of a bank, | ||||||
21 | any branch
of a bank, or any other office at which a bank | ||||||
22 | accepts deposits, provided,
however, that "banking office" | ||||||
23 | shall not mean:
| ||||||
24 | (1) unmanned automatic teller machines, point of sale | ||||||
25 | terminals or other
similar unmanned electronic banking |
| |||||||
| |||||||
1 | facilities at which deposits may be
accepted; or
| ||||||
2 | (2) offices located outside the United States.
| ||||||
3 | (d) "Cause to be chartered", with respect to a specified | ||||||
4 | bank, means the
acquisition of control of such bank prior to | ||||||
5 | the time it commences to
engage in the banking business.
| ||||||
6 | (e) "Commissioner" means the Secretary of Financial and | ||||||
7 | Professional Regulation Commissioner of Banks and Real Estate
| ||||||
8 | or a person authorized by the Secretary Commissioner , the | ||||||
9 | Division of Banking Office of Banks and Real Estate
Act, or | ||||||
10 | this Act to act in the Secretary's Commissioner's stead.
| ||||||
11 | (f) "Community" means the contiguous area served by the | ||||||
12 | banking offices
of a bank, but need not be limited or expanded | ||||||
13 | to conform to the geographic
boundaries of units of local | ||||||
14 | government.
| ||||||
15 | (g) "Company" means any corporation, business trust, | ||||||
16 | voting trust,
association, partnership, joint venture, similar | ||||||
17 | organization or any other
trust unless by its terms it must | ||||||
18 | terminate within 25 years or not later
than 21 years and 10 | ||||||
19 | months after the death of individuals living on the
effective | ||||||
20 | date of the trust, but shall not include (1) an individual or | ||||||
21 | (2)
any corporation the majority of the shares of which are | ||||||
22 | owned by the United
States or by any state or any corporation | ||||||
23 | or community chest fund,
organized and operated exclusively for | ||||||
24 | religious, charitable, scientific,
literary or educational | ||||||
25 | purposes, no part of the net earnings of which
inure to the | ||||||
26 | benefit of any private shareholder or individual and no
|
| |||||||
| |||||||
1 | substantial part of the activities of which is carrying on | ||||||
2 | propaganda or
otherwise attempting to influence legislation.
| ||||||
3 | (h) A company "controls or has control over" a bank or | ||||||
4 | company if (1) it
directly or indirectly owns or controls or | ||||||
5 | has the power to vote, 25% or
more of the voting shares of any | ||||||
6 | class of voting securities of such bank or
company or (2) it | ||||||
7 | controls in any manner the election of a majority of the
| ||||||
8 | directors or trustees of such bank or company or (3) a trustee | ||||||
9 | holds for
the benefit of its shareholders, members or | ||||||
10 | employees, 25% or more of the
voting shares of such bank or | ||||||
11 | company or (4) it directly or indirectly
exercises a | ||||||
12 | controlling influence over the management or policies of such
| ||||||
13 | bank or company that is a bank holding company and the Board of | ||||||
14 | Governors
of the Federal Reserve System has so determined under | ||||||
15 | the federal Bank
Holding Company Act. In determining whether | ||||||
16 | any company controls or has
control over a bank or company: (i) | ||||||
17 | shares owned or controlled by any
subsidiary of a company shall | ||||||
18 | be deemed to be indirectly owned or
controlled by such company; | ||||||
19 | (ii) shares held or controlled, directly or
indirectly, by a | ||||||
20 | trustee or trustees for the benefit of a company, the
| ||||||
21 | shareholders or members of a company or the employees (whether | ||||||
22 | exclusively
or not) of a company, shall be deemed to be | ||||||
23 | controlled by such company; and
(iii) shares transferred, | ||||||
24 | directly or indirectly, by any bank holding
company (or by any | ||||||
25 | company which, but for such transfer, would be a bank
holding | ||||||
26 | company) to any transferee that is indebted
to the transferor |
| |||||||
| |||||||
1 | or that has one or more officers, directors, trustees or
| ||||||
2 | beneficiaries in common with or subject to control by the | ||||||
3 | transferor, shall
be deemed to be indirectly owned or | ||||||
4 | controlled by the transferor unless
the Board of Governors of | ||||||
5 | the Federal Reserve System has determined, under
the federal | ||||||
6 | Bank Holding Company Act, that the transferor is not in fact
| ||||||
7 | capable of controlling the transferee. Notwithstanding the | ||||||
8 | foregoing, no
company shall be deemed to have control of or | ||||||
9 | over a bank or bank holding
company (A) by virtue of its | ||||||
10 | ownership or control of shares in a fiduciary
capacity arising | ||||||
11 | in the ordinary course of its business; (B) by virtue of
its | ||||||
12 | ownership or control of shares acquired by it in connection | ||||||
13 | with its
underwriting of securities which are held only for | ||||||
14 | such period of time as
will permit the sale thereof upon a | ||||||
15 | reasonable basis; (C) by virtue of its
holding any shares as | ||||||
16 | collateral taken in the ordinary course of securing a
debt or | ||||||
17 | other obligation; (D) by virtue of its ownership or control of | ||||||
18 | shares
acquired in the ordinary course of collecting a debt or | ||||||
19 | other obligation
previously contracted in good faith, until 5 | ||||||
20 | years after the date acquired; or
(E) by virtue of its voting | ||||||
21 | rights with respect to shares of any bank or bank
holding | ||||||
22 | company acquired in the course of a proxy solicitation in the | ||||||
23 | case of a
company formed and operated for the sole purpose of | ||||||
24 | participating in a proxy
solicitation.
| ||||||
25 | (h-5) "Division" means the Division of Banking within the | ||||||
26 | Department of Financial and Professional Regulation.
|
| |||||||
| |||||||
1 | (i) "Federal Bank Holding Company Act" means the federal | ||||||
2 | Bank Holding
Company Act of 1956, as now or hereafter amended.
| ||||||
3 | (j) "Foreign bank" means any company organized under the | ||||||
4 | laws of a
foreign country which engages in the business of | ||||||
5 | banking or any subsidiary
or affiliate of any such company, | ||||||
6 | organized under such laws. "Foreign
bank" includes, without | ||||||
7 | limitation, foreign merchant banks and other
foreign | ||||||
8 | institutions that engage in banking activities usual in | ||||||
9 | connection
with the business of banking in the countries where | ||||||
10 | such foreign
institutions are organized or operating.
| ||||||
11 | (k) "Home state" means the home state of a foreign bank as | ||||||
12 | determined
pursuant to the federal International Banking Act of | ||||||
13 | 1978.
| ||||||
14 | (l) "Illinois bank" means a bank:
| ||||||
15 | (1) that is organized under the laws of this State or | ||||||
16 | of the United States; and
| ||||||
17 | (2) whose main banking premises is located in Illinois.
| ||||||
18 | (m) "Illinois bank holding company" means a bank holding | ||||||
19 | company:
| ||||||
20 | (1) whose principal place of business is Illinois; and
| ||||||
21 | (2) that is not directly or indirectly controlled by | ||||||
22 | another bank
holding company whose principal place of | ||||||
23 | business is a state other than
Illinois or by a foreign | ||||||
24 | bank whose Home State is a state other than Illinois.
| ||||||
25 | An out of state bank holding company that acquires
control | ||||||
26 | of one or more
Illinois banks or Illinois bank holding |
| |||||||
| |||||||
1 | companies pursuant to Sections
3.061 or 3.071 shall not be | ||||||
2 | deemed an Illinois bank holding company.
| ||||||
3 | (n) "Main banking premises" means the location that is | ||||||
4 | designated in a
bank's charter as its main office and that is | ||||||
5 | within the state in which the
total deposits held by all of the | ||||||
6 | banking offices of such bank are the
largest, as shown in the | ||||||
7 | most recent reports of condition or similar
reports filed by | ||||||
8 | such bank with state or federal regulatory authorities.
| ||||||
9 | (o) "Out of state bank" means a bank:
| ||||||
10 | (1) that is not an Illinois bank; and
| ||||||
11 | (2) whose main banking premises is located in a state | ||||||
12 | other
than Illinois.
| ||||||
13 | (p) "Out of state bank holding company" means a
bank | ||||||
14 | holding company:
| ||||||
15 | (1) that is not an Illinois bank holding company;
| ||||||
16 | (2) whose principal place of business is a state other
| ||||||
17 | than Illinois the laws of which expressly authorize the | ||||||
18 | acquisition by an
Illinois bank holding company of a bank | ||||||
19 | or bank holding company in that
state under qualifications | ||||||
20 | and conditions which are not unduly restrictive,
as | ||||||
21 | determined by the Commissioner, when compared to those | ||||||
22 | imposed by the
laws of Illinois.
| ||||||
23 | (q) "Principal place of business" means,
with respect to a | ||||||
24 | bank holding company, the state in which the total
deposits | ||||||
25 | held by all of the banking offices of all of the bank | ||||||
26 | subsidiaries
of such bank holding company are the largest, as |
| |||||||
| |||||||
1 | shown in the most recent
reports of condition or similar | ||||||
2 | reports filed by the bank holding company's
bank subsidiaries | ||||||
3 | with state or federal regulatory authorities.
| ||||||
4 | (r) "State" or "states" when used in this Act means any | ||||||
5 | State of the
United States, the District of Columbia, any | ||||||
6 | territory of the United
States, Puerto Rico, Guam, American | ||||||
7 | Samoa or the Virgin Islands.
| ||||||
8 | (s) "Subsidiary", with respect to a specified bank holding | ||||||
9 | company,
means any bank or company controlled by such bank | ||||||
10 | holding company.
| ||||||
11 | (Source: P.A. 89-508, eff. 7-3-96.)
| ||||||
12 | (205 ILCS 10/3.074) (from Ch. 17, par. 2510.04)
| ||||||
13 | Sec. 3.074. Powers; administrative review.
| ||||||
14 | (a) The Commissioner shall have the power and authority:
| ||||||
15 | (1) to promulgate reasonable procedural rules for the | ||||||
16 | purposes
of
administering the provisions of this Act. The | ||||||
17 | Commissioner shall specify
the form of any application, | ||||||
18 | report or document that is required to be
filed with the | ||||||
19 | Commissioner pursuant to this Act;
| ||||||
20 | (2) to issue orders for the purpose of administering | ||||||
21 | the
provisions of
this Act and any rule promulgated in | ||||||
22 | accordance with this Act;
| ||||||
23 | (3) to appoint hearing officers to execute any of the | ||||||
24 | powers
granted to
the Commissioner under this Section for | ||||||
25 | the purpose of administering this
Act or any rule |
| |||||||
| |||||||
1 | promulgated in accordance with this Act; and
| ||||||
2 | (4) to subpoena witnesses, to compel their attendance, | ||||||
3 | to
administer an
oath, to examine any person under oath and | ||||||
4 | to require the production of any
relevant books, papers, | ||||||
5 | accounts and documents in the course of and
pursuant to any | ||||||
6 | investigation or hearing being conducted or any action
| ||||||
7 | being taken by the Commissioner in respect to any matter | ||||||
8 | relating to the
duties imposed upon or the powers vested in | ||||||
9 | the Commissioner under the
provisions of this Act or any | ||||||
10 | rule promulgated in accordance with this
Act ; and | ||||||
11 | (5) to do any other act authorized to the Commissioner | ||||||
12 | under the Division of Banking Act .
| ||||||
13 | (b) Whenever, in the opinion of the Commissioner, any
| ||||||
14 | director,
officer, employee, or agent of any bank holding | ||||||
15 | company or subsidiary or
affiliate of
that company shall have | ||||||
16 | violated any law, rule, or order relating to that bank
holding | ||||||
17 | company or subsidiary or affiliate of that company, shall have
| ||||||
18 | obstructed or
impeded any examination or investigation by the | ||||||
19 | Commissioner, shall have
engaged in an unsafe or unsound | ||||||
20 | practice in conducting the business
of that bank holding | ||||||
21 | company or subsidiary or affiliate of that company, or
shall | ||||||
22 | have
violated any law or engaged or participated in any unsafe | ||||||
23 | or unsound
practice in connection with any financial | ||||||
24 | institution or other business
entity such that the character | ||||||
25 | and fitness of the director, officer,
employee, or agent does | ||||||
26 | not assure reasonable promise of safe and sound
operation of |
| |||||||
| |||||||
1 | the bank holding company, the
Commissioner may issue an order | ||||||
2 | of removal. If, in the opinion of the
Commissioner, any former | ||||||
3 | director, officer, employee, or agent of a bank
holding company | ||||||
4 | or subsidiary or affiliate of that company, prior to the
| ||||||
5 | termination of his or her service with that holding company or | ||||||
6 | subsidiary or
affiliate of that company, violated any law, | ||||||
7 | rule, or order relating to that
bank holding company or | ||||||
8 | subsidiary or affiliate of that company, obstructed
or impeded | ||||||
9 | any examination or investigation by the Commissioner, engaged
| ||||||
10 | in an unsafe or unsound practice in conducting the business of | ||||||
11 | that bank
holding
company or subsidiary or affiliate of that | ||||||
12 | company, or violated any law or
engaged
or participated in any | ||||||
13 | unsafe or unsound practice in connection with any
financial | ||||||
14 | institution or other business entity such that the character
| ||||||
15 | and fitness of the director, officer, employee, or agent would | ||||||
16 | not have
assured reasonable promise of safe and sound operation | ||||||
17 | of the bank
holding company, the Commissioner may issue an | ||||||
18 | order prohibiting that
person from further service with a bank | ||||||
19 | holding company or subsidiary or
affiliate of that company as a | ||||||
20 | director, officer, employee, or agent.
| ||||||
21 | An order
issued
pursuant to this subsection shall be served | ||||||
22 | upon the director, officer,
employee, or agent. A copy of the | ||||||
23 | order shall be sent to each director of
the bank holding | ||||||
24 | company affected by registered mail. The person affected
by the | ||||||
25 | action may request a hearing before the State Banking Board | ||||||
26 | within
10 days after receipt of the order. The hearing shall be |
| |||||||
| |||||||
1 | held by the State
Banking Board within 30 days after the | ||||||
2 | request has been received by the State
Banking
Board. The State | ||||||
3 | Banking Board shall make a determination approving,
modifying, | ||||||
4 | or
disapproving the order of the Commissioner as its final | ||||||
5 | administrative
decision.
If a hearing is held by the State | ||||||
6 | Banking Board, the State Banking Board shall
make its | ||||||
7 | determination
within 60 days from the conclusion of the | ||||||
8 | hearing. Any person affected by a
decision of the State Banking | ||||||
9 | Board under this subsection
may have the decision reviewed only | ||||||
10 | under and in accordance with the
Administrative
Review Law and | ||||||
11 | the rules adopted pursuant thereto. A copy of the order
shall | ||||||
12 | also be served upon the bank holding company of which he is a | ||||||
13 | director,
officer,
employee, or agent, whereupon he shall cease | ||||||
14 | to be a director, officer,
employee, or agent of that bank | ||||||
15 | holding company.
| ||||||
16 | The Commissioner may
institute a
civil action against the | ||||||
17 | director, officer, employee, or agent of the bank
holding
| ||||||
18 | company, against whom
any order provided for by this subsection | ||||||
19 | has been
issued, to enforce compliance with or to enjoin any | ||||||
20 | violation of the terms
of the order.
| ||||||
21 | Any person who has been the subject of an order of removal
| ||||||
22 | or an order of prohibition issued by the Commissioner under | ||||||
23 | this subsection,
subdivision (7) of Section 48 of the Illinois | ||||||
24 | Banking Act, or
Section 5-6 of the Corporate Fiduciary Act may | ||||||
25 | not thereafter serve as
director, officer, employee, or agent | ||||||
26 | of any holding company, State bank, or
branch
of any |
| |||||||
| |||||||
1 | out-of-state bank, of any corporate fiduciary, as defined in
| ||||||
2 | Section 1-5.05 of the Corporate Fiduciary Act, or of any other | ||||||
3 | entity
that is subject to licensure or regulation by the | ||||||
4 | Commissioner or the
Office of Banks and Real Estate unless the | ||||||
5 | Commissioner has granted
prior approval in writing.
| ||||||
6 | (c) All final administrative decisions of the
Commissioner | ||||||
7 | under
this
Act shall be subject to judicial review pursuant to | ||||||
8 | provisions of the
Administrative Review Law. For matters | ||||||
9 | involving administrative review,
venue shall be in either | ||||||
10 | Sangamon County or Cook County.
| ||||||
11 | (Source: P.A. 92-483, eff. 8-23-01.)
| ||||||
12 | Section 25. The Illinois Savings and Loan Act of 1985 is | ||||||
13 | amended by changing Sections 1-10.04, 3-7, 7-1, 7-3, 7-4, 7-5, | ||||||
14 | 7-20, 7-22, 10-1, and 11-1 and by adding Sections 1-10.065, | ||||||
15 | 10-15, 10-20, 10-25, 10-30, 10-35, 10-40, 10-45, 10-50, 10-55, | ||||||
16 | 10-60, 10-65, 10-70, 10-75, 10-80, 10-85, 10-90, 10-95, and | ||||||
17 | 10-100 as follows:
| ||||||
18 | (205 ILCS 105/1-10.04) (from Ch. 17, par. 3301-10.04)
| ||||||
19 | Sec. 1-10.04. "Commissioner": the Secretary of Financial | ||||||
20 | and Professional Regulation Commissioner of Banks and Real | ||||||
21 | Estate or
some person authorized by the Secretary
Commissioner , | ||||||
22 | the Division of Banking Office of Banks and Real Estate Act, or | ||||||
23 | this
Act to act in the Secretary's Commissioner's stead.
| ||||||
24 | (Source: P.A. 89-508, eff. 7-3-96.)
|
| |||||||
| |||||||
1 | (205 ILCS 105/1-10.065 new) | ||||||
2 | Sec. 1-10.065. Division. "Division" means the Division of | ||||||
3 | Banking within the Department of Financial and Professional | ||||||
4 | Regulation.
| ||||||
5 | (205 ILCS 105/3-7) (from Ch. 17, par. 3303-7)
| ||||||
6 | Sec. 3-7. Bonds of officers and employees. | ||||||
7 | (a) Every person appointed or elected to any position | ||||||
8 | requiring the
receipt, payment, management or use of money | ||||||
9 | belonging to an association,
or whose duties permit him to have | ||||||
10 | access to or custody of any of its money
or securities or whose | ||||||
11 | duties permit him regularly to make entries in the
books or | ||||||
12 | other records of the association, before assuming his duties | ||||||
13 | shall
become bonded in some trust or company authorized to | ||||||
14 | issue bonds in
this state, or in a fidelity insurance company | ||||||
15 | licensed to do business in
this State. Each such bond shall be | ||||||
16 | on a form or forms as the Commissioner
shall require and in | ||||||
17 | such amount as the board of directors shall fix and
approve. | ||||||
18 | Each such bond, payable to the association, shall be an | ||||||
19 | indemnity
for any loss the association may sustain in money or | ||||||
20 | other property through
any dishonest or criminal act or | ||||||
21 | omission by any person required to be
bonded, committed either | ||||||
22 | alone or in concert with others. Such bond shall
be in the form | ||||||
23 | and amount prescribed by the Commissioner, who may at any
time | ||||||
24 | require one or more additional bonds. A true copy of every |
| |||||||
| |||||||
1 | bond,
including all riders and endorsements executed | ||||||
2 | subsequent to the effective
date of the bond, shall be filed at | ||||||
3 | all times with the Commissioner. Each
bond shall provide that a | ||||||
4 | cancellation thereof either by the surety or by
the insured | ||||||
5 | shall not become effective unless and until 30 days notice in
| ||||||
6 | writing first shall have been given to the Commissioner, unless | ||||||
7 | he shall
have approved such cancellation earlier.
| ||||||
8 | (b) Nothing contained herein shall preclude the | ||||||
9 | Commissioner from
proceeding against an association as | ||||||
10 | provided in this Act should he believe
that it is being | ||||||
11 | conducted in an unsafe manner in that the form or amount
of | ||||||
12 | bonds so fixed and approved by the board of directors is | ||||||
13 | inadequate to
give reasonable protection to the association.
| ||||||
14 | (Source: P.A. 85-1271.)
| ||||||
15 | (205 ILCS 105/7-1) (from Ch. 17, par. 3307-1)
| ||||||
16 | Sec. 7-1.
Office of the Commissioner of Savings and | ||||||
17 | Residential Finance
abolished. The Office of the Commissioner | ||||||
18 | of Savings and Residential
Finance is abolished and its | ||||||
19 | functions are transferred to the Office of
Banks and Real | ||||||
20 | Estate as provided in the Division of Banking Office of Banks | ||||||
21 | and Real Estate Act.
| ||||||
22 | (Source: P.A. 89-508, eff. 7-3-96.)
| ||||||
23 | (205 ILCS 105/7-3) (from Ch. 17, par. 3307-3)
| ||||||
24 | Sec. 7-3. Personnel, records, files, actions and
duties, |
| |||||||
| |||||||
1 | etc. | ||||||
2 | (a) The Secretary shall appoint, subject to
applicable | ||||||
3 | provisions of the Personnel Code, a supervisor, such
examiners, | ||||||
4 | employees, experts and special assistants as may be necessary
| ||||||
5 | to carry out effectively this Act. The Secretary shall require | ||||||
6 | each
supervisor, examiner, expert and special assistant | ||||||
7 | employed or appointed
by him to give bond, with security to be | ||||||
8 | approved by the Secretary,
not less in any case than $15,000, | ||||||
9 | conditioned for the faithful
discharge of his duties. The | ||||||
10 | premium on such bond shall be paid by the Secretary
from funds | ||||||
11 | appropriated for that purpose. The bond, along
with | ||||||
12 | verification of payment of the premium on such bond, shall be | ||||||
13 | filed
in the office of the Secretary of State.
| ||||||
14 | (b) The Secretary shall have the following duties and | ||||||
15 | powers:
| ||||||
16 | (1) To exercise the rights, powers and duties set forth | ||||||
17 | in this Act
or in any other related Act;
| ||||||
18 | (2) To establish such regulations as may be reasonable | ||||||
19 | or necessary
to accomplish the purposes of this Act;
| ||||||
20 | (3) To direct and supervise all the administrative and
| ||||||
21 | technical activities of this office and create an Advisory | ||||||
22 | Committee
which upon request will make recommendations to | ||||||
23 | him;
| ||||||
24 | (4) To make an annual report regarding the work of his | ||||||
25 | office
as he may consider desirable to the Governor, or as | ||||||
26 | the Governor may
request;
|
| |||||||
| |||||||
1 | (5) To cause a suit to be filed in his name to enforce | ||||||
2 | any law of
this State that applies to an association, | ||||||
3 | subsidiary of an association,
or holding company operating | ||||||
4 | under this Act and
shall include the enforcement of any | ||||||
5 | obligation of the officers,
directors or employees of any | ||||||
6 | association;
| ||||||
7 | (6) To prescribe a uniform manner in which the books | ||||||
8 | and records of
every association are to be maintained; and
| ||||||
9 | (7) To establish reasonable and rationally based fee | ||||||
10 | structures for each
association and holding company | ||||||
11 | operating under this Act and for their
service corporations | ||||||
12 | and subsidiaries, which fees shall include but not be
| ||||||
13 | limited to annual fees, application fees, regular and | ||||||
14 | special examination
fees, and such other fees as the | ||||||
15 | Secretary establishes and demonstrates
to be directly | ||||||
16 | resultant from his responsibilities under this Act and as
| ||||||
17 | are directly attributable to individual entities operating | ||||||
18 | under this Act. The Secretary may require payment of the | ||||||
19 | fees under this Act by an electronic transfer of funds or | ||||||
20 | an automatic debit of an account of each of the | ||||||
21 | associations.
| ||||||
22 | (Source: P.A. 95-1047, eff. 4-6-09.)
| ||||||
23 | (205 ILCS 105/7-4) (from Ch. 17, par. 3307-4)
| ||||||
24 | Sec. 7-4. Prohibited activities. The Commissioner, deputy | ||||||
25 | commissioners, and employees
of the Office of Banks and Real |
| |||||||
| |||||||
1 | Estate shall be subject to the restrictions
provided in Section | ||||||
2 | 2.5 of the Division of Banking Office of Banks and Real Estate | ||||||
3 | Act including,
without limitation, the restrictions on (i) | ||||||
4 | owning shares of stock or holding
any other equity interest in | ||||||
5 | an entity regulated under this Act or in any
corporation or | ||||||
6 | company that owns or controls an entity regulated under this
| ||||||
7 | Act; (ii) being an officer, director, employee, or agent of an | ||||||
8 | entity regulated
under this Act; and (iii) obtaining a loan or | ||||||
9 | accepting a gratuity from an
entity regulated under this Act.
| ||||||
10 | (Source: P.A. 89-508, eff. 7-3-96.)
| ||||||
11 | (205 ILCS 105/7-5) (from Ch. 17, par. 3307-5)
| ||||||
12 | Sec. 7-5. Examination. | ||||||
13 | (a) The Commissioner, at least once every
18 months, but | ||||||
14 | more often if he deems it necessary or expedient, with or
| ||||||
15 | without previous notice, shall cause an examination to be made | ||||||
16 | of the
affairs of every association, including any holding | ||||||
17 | company and subsidiary
thereof. If an association or holding | ||||||
18 | company has not been audited at
least once in the preceding 12 | ||||||
19 | months in accordance with this Act, the
examination shall | ||||||
20 | include an audit by licensed public accountants
employed or | ||||||
21 | appointed by the Commissioner. Such examination shall be
made | ||||||
22 | by competent examiners appointed for that purpose who are not
| ||||||
23 | officers or agents of, or in any manner interested in, any | ||||||
24 | association or
holding company
which they examine, except that | ||||||
25 | they may be holders of withdrawable
capital. Notwithstanding |
| |||||||
| |||||||
1 | any other provision of this Act, every eligible association, as | ||||||
2 | defined by regulation, or, if not so defined, to an equivalent | ||||||
3 | extent as would be permitted in the case of a State bank, the | ||||||
4 | Secretary, in lieu of the examination, may accept on an | ||||||
5 | alternating basis the examination made by the appropriate | ||||||
6 | federal banking regulator, or its successor, pursuant to the | ||||||
7 | federal Home Owners' Loan Act, provided the appropriate federal | ||||||
8 | banking regulator, or its successor, has made an examination.
| ||||||
9 | (b) The officers, agents or directors of any such | ||||||
10 | association or holding
company shall
cause the books of the | ||||||
11 | association or holding company to be opened for
inspection by | ||||||
12 | the
Commissioner or his examiners and otherwise assist in such | ||||||
13 | examination
when requested; and for the purpose of examination, | ||||||
14 | the examiner in
charge thereof shall have power to administer | ||||||
15 | oaths and to examine under
oath any officers, employees, agents | ||||||
16 | or directors of such association or
holding company
and such | ||||||
17 | other witnesses as he deems necessary relative to the business
| ||||||
18 | of the association or holding company.
| ||||||
19 | (c) The Commissioner shall make a report of each | ||||||
20 | examination to the
board of directors of the association or | ||||||
21 | holding company examined, which
report shall be
read by each | ||||||
22 | director, who will then execute a signed affidavit to be
filed | ||||||
23 | and preserved by the association or holding company | ||||||
24 | acknowledging
that he has read
the Commissioner's report. If | ||||||
25 | the affairs of the association or holding
company are not
being | ||||||
26 | conducted in accordance with this Act, the Commissioner shall
|
| |||||||
| |||||||
1 | require the directors, officers or employees to take any | ||||||
2 | necessary
corrective action. If the necessary corrective | ||||||
3 | action is not made, the
Commissioner may issue a formal order | ||||||
4 | to the directors of the
association or holding company | ||||||
5 | delivered either personally or by registered
or certified
mail, | ||||||
6 | specifying a date which may be immediate or may be at a later | ||||||
7 | date
for the performance by the association or holding company | ||||||
8 | of the corrective
action. Such
order or any part thereof shall | ||||||
9 | be subject to Sections 7-24 through 7-27
of this Act. If the | ||||||
10 | formal order of the Commissioner in whole or in
part contains a | ||||||
11 | finding that the business of the association or holding
company | ||||||
12 | is being
conducted in a fraudulent, illegal or unsafe manner, | ||||||
13 | or that the
violation thereof or the continuance by the | ||||||
14 | association or holding company
of the practice
to be corrected | ||||||
15 | could cause insolvency or substantial dissipation of
assets or | ||||||
16 | earnings or the impairment of its capital, such order or part
| ||||||
17 | thereof shall be complied with promptly on and after the | ||||||
18 | effective date
thereof until modified or withdrawn by the | ||||||
19 | Commissioner, the Board, or
modified or terminated by a circuit | ||||||
20 | court. The Commissioner may apply
to the circuit court of the | ||||||
21 | county in which the association or holding
company is located
| ||||||
22 | for enforcement of any such order requiring prompt compliance. | ||||||
23 | If no
hearing has been requested within the time specified by | ||||||
24 | this Act, the
Commissioner may, at any time within 90 days | ||||||
25 | after the effective date of
the order, institute suit in the | ||||||
26 | Circuit Court of Sangamon County or the
circuit court of the |
| |||||||
| |||||||
1 | county in which the association or holding company
is located | ||||||
2 | to
compel the directors, officers or employees to make the | ||||||
3 | required
corrective action. Such court shall, after due process | ||||||
4 | of law,
adjudicate the question and enter the proper order or | ||||||
5 | orders and enforce
them. In the interests of the members of the | ||||||
6 | association or holding company, the
Commissioner may prepare a | ||||||
7 | statement of the condition of the
association or holding | ||||||
8 | company and may mail the statement to the members
or may | ||||||
9 | require a
single publication thereof.
| ||||||
10 | (Source: P.A. 85-335.)
| ||||||
11 | (205 ILCS 105/7-20) (from Ch. 17, par. 3307-20)
| ||||||
12 | Sec. 7-20. Board of Savings Institutions; appointment. The | ||||||
13 | Savings and Loan
Board is hereby redesignated the Board of | ||||||
14 | Savings Institutions. The Board
shall be composed of 7 persons | ||||||
15 | appointed by the Governor. Four persons shall
represent the | ||||||
16 | public interest. Three persons shall have been engaged actively
| ||||||
17 | in savings and loan or savings bank management in this State | ||||||
18 | for at least 5
years immediately prior to appointment. Each | ||||||
19 | member of the Board shall be reimbursed for ordinary and | ||||||
20 | necessary expenses incurred in attending the meetings of the | ||||||
21 | Board receive
compensation of $50 per day for each day actually | ||||||
22 | and necessarily consumed in
the performance of the duties of | ||||||
23 | office, plus necessary expenses incurred in
the performance of | ||||||
24 | those duties . The members of the Board serving immediately
| ||||||
25 | before the effective date of this amendatory Act of 1996 shall |
| |||||||
| |||||||
1 | continue to
serve for the balance of their respective terms. | ||||||
2 | Members shall be appointed
for 4-year terms to expire on the | ||||||
3 | third Monday in January. Except as otherwise
provided in this | ||||||
4 | Section, members of the Board shall serve until their
| ||||||
5 | respective successors are appointed and qualified. A member who | ||||||
6 | tenders a
written resignation shall serve only until the | ||||||
7 | resignation is accepted by the
Chairman. A member who fails to | ||||||
8 | attend 3 consecutive Board meetings without an
excused absence | ||||||
9 | shall no longer serve as a member. The Governor shall fill any
| ||||||
10 | vacancy by the appointment of a member for the unexpired term | ||||||
11 | in the same
manner as in the making
of original appointments.
| ||||||
12 | (Source: P.A. 89-508, eff. 7-3-96; 89-603, eff. 8-2-96.)
| ||||||
13 | (205 ILCS 105/7-22) (from Ch. 17, par. 3307-22)
| ||||||
14 | Sec. 7-22. Board of Savings Institutions; powers.
The | ||||||
15 | Board shall have the following powers:
| ||||||
16 | (a) To advise the Governor and Secretary on all matters | ||||||
17 | relating to the regulation of savings and loan associations and | ||||||
18 | savings banks; consider, hold public or private hearings and | ||||||
19 | act upon appeals from
any order, decision or action of the | ||||||
20 | Commissioner by any aggrieved person
except as otherwise | ||||||
21 | specifically provided in this Act or the Savings Bank
Act;
| ||||||
22 | (b) (Blank) To advise the Governor and the Commissioner | ||||||
23 | upon appointments and
employment of personnel in connection | ||||||
24 | with the supervision of savings and
loan associations and | ||||||
25 | savings banks ; and
|
| |||||||
| |||||||
1 | (c) To advise the Governor on legislation proposed to amend | ||||||
2 | this Act,
the Savings Bank Act, or any related Act.
| ||||||
3 | (Source: P.A. 89-508, eff. 7-3-96.)
| ||||||
4 | (205 ILCS 105/10-1) (from Ch. 17, par. 3310-1)
| ||||||
5 | Sec. 10-1. Appointment of a receiver following taking of | ||||||
6 | custody Commissioner to appoint receiver . If the Commissioner , | ||||||
7 | after taking custody of an association , the Secretary | ||||||
8 | determines that the appointment of a receiver is appropriate, | ||||||
9 | then the Secretary shall follow the provisions regarding | ||||||
10 | receivership outlined under this Article under the
Section of | ||||||
11 | this Act concerning Commissioner's Authority to Take Custody,
| ||||||
12 | finds that any one or more of the reasons for taking custody | ||||||
13 | continues to
exist through the period of his custody, then he | ||||||
14 | shall appoint any
qualified person, firm or corporation as | ||||||
15 | receiver or coreceiver of such
association or trust for the | ||||||
16 | purpose of liquidation. In the case of an
insured association, | ||||||
17 | he may appoint the insurance corporation or its
nominee as such | ||||||
18 | receiver or as a coreceiver; and the insurance corporation
may | ||||||
19 | be permitted to serve without bond. The receiver shall take | ||||||
20 | possession
of and title to the books, records and assets of | ||||||
21 | every description of the
association or trust .
| ||||||
22 | (Source: P.A. 84-543.)
| ||||||
23 | (205 ILCS 105/10-15 new) | ||||||
24 | Sec. 10-15. Secretary's proceedings exclusive. Except by |
| |||||||
| |||||||
1 | the authority of the Secretary, represented by the Attorney | ||||||
2 | General, or the
Federal Deposit Insurance Corporation pursuant | ||||||
3 | to the Federal Deposit Insurance Act, no complaint shall be | ||||||
4 | filed or proceedings commenced in any court for the dissolution | ||||||
5 | of, the winding up of the affairs of, or the appointment of a | ||||||
6 | receiver for any association on the grounds that: | ||||||
7 | (1) it is insolvent; | ||||||
8 | (2) its capital is impaired or it is otherwise in an | ||||||
9 | unsound condition; | ||||||
10 | (3) its business is being conducted in an unlawful, | ||||||
11 | fraudulent, or unsafe manner; | ||||||
12 | (4) it is unable to continue operations; or | ||||||
13 | (5) its examination has been obstructed or impaired. | ||||||
14 | (205 ILCS 105/10-20 new) | ||||||
15 | Sec. 10-20. Capital impairment; correction. | ||||||
16 | (a) If the Secretary, with respect to an association, | ||||||
17 | finds: | ||||||
18 | (1) its capital is impaired or it is otherwise in an | ||||||
19 | unsound condition; | ||||||
20 | (2) its business is being conducted in an unlawful | ||||||
21 | manner, including without limitation in violation of any | ||||||
22 | provision of this Act, or in a fraudulent or unsafe manner; | ||||||
23 | (3) it is unable to continue operations; or | ||||||
24 | (4) its examination has been obstructed or impeded; | ||||||
25 | then the Secretary may give notice to the board of directors of |
| |||||||
| |||||||
1 | his or her finding or findings. If the situation so found by | ||||||
2 | the Secretary shall not be corrected to his or her satisfaction | ||||||
3 | within a period of at least 60 but no more than 180 days after | ||||||
4 | receipt of that notice, which period shall be determined by the | ||||||
5 | Secretary and set forth in the notice, then the Secretary, at | ||||||
6 | the termination of that period, may take possession and control | ||||||
7 | of the association and its assets as provided for in this Act | ||||||
8 | provided for the purpose of examination, reorganization or | ||||||
9 | liquidation through receivership. | ||||||
10 | (b) If the Secretary has given notice to the board of | ||||||
11 | directors of his or her findings, as provided in subsection (a) | ||||||
12 | of this Section, and the time period prescribed in that notice | ||||||
13 | has expired, then the Secretary may extend the time period | ||||||
14 | prescribed in that notice for such period as the Secretary | ||||||
15 | deems appropriate. | ||||||
16 | (205 ILCS 105/10-25 new) | ||||||
17 | Sec. 10-25. Capital impairment; emergency. If, in addition | ||||||
18 | to a finding as provided in Section 10-20 of this Act, the | ||||||
19 | Secretary is of the opinion and finds that an emergency exists | ||||||
20 | that may result in serious losses to the depositors or the | ||||||
21 | inability of the association to continue in operations, meet | ||||||
22 | the demands of its depositors, or pay its obligations in the | ||||||
23 | normal course of business, he or she may, in his or her | ||||||
24 | discretion, without having given the notice provided for in | ||||||
25 | Section 10-20 of this Act, and whether or not proceedings under |
| |||||||
| |||||||
1 | Section 10-20 of this Act have been instituted or are then | ||||||
2 | pending, take possession and control of the association and its | ||||||
3 | assets for the purpose of examination, reorganization, or | ||||||
4 | liquidation through receivership. | ||||||
5 | (205 ILCS 105/10-30 new) | ||||||
6 | Sec. 10-30. Secretary's possession; power. The Secretary | ||||||
7 | may take possession and control of an association and its | ||||||
8 | assets by posting upon the premises a notice reciting that the | ||||||
9 | Secretary is assuming possession pursuant to this Act and the | ||||||
10 | time when his or her possession shall be deemed to commence, | ||||||
11 | which time shall not pre-date the posting of the notice. | ||||||
12 | Promptly after taking possession and control of an association, | ||||||
13 | if the Federal Deposit Insurance Corporation is not appointed | ||||||
14 | as receiver, the Secretary shall file a copy of the notice | ||||||
15 | posted upon the premises in the circuit court in the county in | ||||||
16 | which the association is located, and thereupon the clerk of | ||||||
17 | such court shall note the filing of the notice upon the records | ||||||
18 | of the court, and shall enter such cause as a court action upon | ||||||
19 | the dockets of such court under the name and style of "In the | ||||||
20 | matter of the possession and control of the Secretary of | ||||||
21 | (insert the name of such association)", and thereupon the court | ||||||
22 | wherein such cause is docketed shall be vested with | ||||||
23 | jurisdiction to hear and determine all issues and matters | ||||||
24 | pertaining to or connected with the Secretary's possession and | ||||||
25 | control of such association as provided in this Act, and such |
| |||||||
| |||||||
1 | further issues and matters pertaining to or connected with the | ||||||
2 | Secretary's possession and control as may be submitted to such | ||||||
3 | court for its adjudication by the Secretary. When the Secretary | ||||||
4 | has taken possession and control of an association and its | ||||||
5 | assets, he or she shall be vested with the full powers of | ||||||
6 | management and control, including without limitation the | ||||||
7 | following: | ||||||
8 | (1) the power to continue or to discontinue the | ||||||
9 | business; | ||||||
10 | (2) the power to stop or to limit the payment of its | ||||||
11 | obligations; provided, however, with respect to a | ||||||
12 | qualified financial contract between any party and an | ||||||
13 | association or a branch or agency of which the Secretary | ||||||
14 | has taken possession and control, which party has a | ||||||
15 | perfected security interest in collateral or other valid | ||||||
16 | lien or security interest in collateral enforceable | ||||||
17 | against third parties pursuant to a security arrangement | ||||||
18 | related to that qualified financial contract, the party may | ||||||
19 | retain all of the collateral and upon repudiation or | ||||||
20 | termination of that qualified financial contract in | ||||||
21 | accordance with its terms apply the collateral in | ||||||
22 | satisfaction of any claims secured by the collateral; in no | ||||||
23 | event shall the total amount so applied exceed the global | ||||||
24 | net payment obligation, if any; | ||||||
25 | (3) the power to collect and to use its assets and to | ||||||
26 | give valid receipts and acquittances; |
| |||||||
| |||||||
1 | (4) the power to employ and to pay any necessary | ||||||
2 | assistants; | ||||||
3 | (5) the power to execute any instrument in the name of | ||||||
4 | the association; | ||||||
5 | (6) the power to commence, defend, and conduct in its | ||||||
6 | name any action or proceeding in which it may be a party; | ||||||
7 | (7) the power, upon the order of the court, to sell and | ||||||
8 | convey its assets in whole or in part, and to sell or | ||||||
9 | compound bad or doubtful debts upon such terms and | ||||||
10 | conditions as may be fixed in such order; | ||||||
11 | (8) the power, upon the order of the court, to make and | ||||||
12 | to carry out agreements with other associations or with the | ||||||
13 | United States or any agency thereof that shall insure the | ||||||
14 | association's deposits, in whole or in part, for the | ||||||
15 | payment or assumption of the association's liabilities, in | ||||||
16 | whole or in part, and to transfer assets and to make | ||||||
17 | guaranties, in whole or in part, and to transfer assets and | ||||||
18 | to make guaranties in connection therewith; | ||||||
19 | (9) the power, upon the order of the court, to borrow | ||||||
20 | money in the name of the association and to pledge its | ||||||
21 | assets as security for the loan; | ||||||
22 | (10) the power to terminate his or her possession and | ||||||
23 | control by restoring the association to its board of | ||||||
24 | directors; | ||||||
25 | (11) the power to reorganize the association as | ||||||
26 | provided in this Act; |
| |||||||
| |||||||
1 | (12) the power to appoint a receiver and to order | ||||||
2 | liquidation of the association as provided in this Act; and | ||||||
3 | (13) the power, upon the order of the court and without | ||||||
4 | the appointment of a receiver, to determine that the | ||||||
5 | association has been closed for the purpose of liquidation | ||||||
6 | without adequate provision being made for payment of its | ||||||
7 | depositors, and thereupon the association shall be deemed | ||||||
8 | to have been closed on account of inability to meet the | ||||||
9 | demands of its depositors. | ||||||
10 | As soon as practical after taking possession, the Secretary | ||||||
11 | shall make his or her examination of the condition of the | ||||||
12 | association and an inventory of the assets. Unless the time | ||||||
13 | shall be extended by order of the court, and unless the | ||||||
14 | Secretary shall have otherwise settled the affairs of an | ||||||
15 | association pursuant to the provisions of this Act, at the | ||||||
16 | termination of 30 days after the time of taking possession and | ||||||
17 | control of an association for the purpose of examination, | ||||||
18 | reorganization, or liquidation through receivership, the | ||||||
19 | Secretary shall either terminate his or her possession and | ||||||
20 | control by restoring the association to its board of directors | ||||||
21 | or appoint a receiver and order the liquidation of the | ||||||
22 | association as provided in this Act. All necessary and | ||||||
23 | reasonable expenses of the Secretary's possession and control | ||||||
24 | and of its reorganization shall be borne by the association and | ||||||
25 | may be paid by the Secretary from its assets. If the Federal | ||||||
26 | Deposit Insurance Corporation is appointed by the Secretary as |
| |||||||
| |||||||
1 | receiver of an association, or the Federal Deposit Insurance | ||||||
2 | Corporation takes possession of the association, then the | ||||||
3 | receivership proceedings and the powers and duties of the | ||||||
4 | Federal Deposit Insurance Corporation shall be governed by the | ||||||
5 | Federal Deposit Insurance Act and regulations promulgated | ||||||
6 | under that Act rather than the provisions of this Act. | ||||||
7 | (205 ILCS 105/10-35 new) | ||||||
8 | Sec. 10-35. Secretary's possession; limitation of actions. | ||||||
9 | Except when the Federal Deposit Insurance Corporation has taken | ||||||
10 | possession of the association or is acting as receiver, if the | ||||||
11 | Secretary has taken possession and control of an association | ||||||
12 | and its assets, then there shall be a postponement until 6 | ||||||
13 | months after the commencement of the possession of the date | ||||||
14 | upon which any period of limitation fixed by a statute or | ||||||
15 | agreement would otherwise expire on a claim or right of action | ||||||
16 | of the association, or upon which an appeal must be taken or a | ||||||
17 | pleading or other document must be filed by the association in | ||||||
18 | any pending action or proceeding. No judgment, lien, levy, | ||||||
19 | attachment, or other similar legal process shall be enforced | ||||||
20 | upon or satisfied in whole or in part from any asset of the | ||||||
21 | association while it is in the possession of the Secretary, | ||||||
22 | except upon the order of the court referred to in Section 10-30 | ||||||
23 | entered in due course pursuant to Section 10-90 of this Act. | ||||||
24 | The provisions of this Section shall continue to apply and | ||||||
25 | shall govern notwithstanding the appointment of and the |
| |||||||
| |||||||
1 | possession by a receiver pursuant to Section 10-55 of this Act. | ||||||
2 | (205 ILCS 105/10-40 new) | ||||||
3 | Sec. 10-40. Reorganization. The Secretary, while in | ||||||
4 | possession and control of an association and its assets, after | ||||||
5 | according a hearing to interested parties as he or she may | ||||||
6 | determine and upon the order of the court, may propose a | ||||||
7 | reorganization plan. Such reorganization plan shall become | ||||||
8 | effective only (1) when the requirements of Section 10-45 are | ||||||
9 | satisfied, and (2) when, after reasonable notice of such | ||||||
10 | reorganization, as the case may require (A) depositors and | ||||||
11 | other creditors of such association representing at least 75% | ||||||
12 | in amount of its total deposits and other liabilities as shown | ||||||
13 | by the books of the association, (B) stockholders owning at | ||||||
14 | least two-thirds of its outstanding capital stock as shown by | ||||||
15 | the books of the association, or (C) both depositors and other | ||||||
16 | creditors representing at least 75% in amount of the total | ||||||
17 | deposits and other liabilities and stockholders owning at least | ||||||
18 | two-thirds of its outstanding capital stock as shown by the | ||||||
19 | books of the association, shall have consented in writing to | ||||||
20 | the plan of reorganization; provided, however, that claims of | ||||||
21 | depositors or other creditors that will be satisfied in full on | ||||||
22 | demand under the provisions of the plan of reorganization shall | ||||||
23 | not be included among the total deposits and other liabilities | ||||||
24 | of the association in determining the 75% required under this | ||||||
25 | Section. When such reorganization becomes effective, all |
| |||||||
| |||||||
1 | books, records, and assets of the association shall be disposed | ||||||
2 | of in accordance with the provisions of the plan, and the | ||||||
3 | affairs of the association shall be conducted by its board of | ||||||
4 | directors in the manner provided by the plan and under the | ||||||
5 | conditions, restrictions, and limitations prescribed by the | ||||||
6 | Secretary. In any reorganization approved and effective as | ||||||
7 | provided in this Section, all depositors and other creditors | ||||||
8 | and stockholders of the association, whether or not they shall | ||||||
9 | have consented to such plan of reorganization, shall be fully | ||||||
10 | and in all respects subject to and bound by its provisions, and | ||||||
11 | claims of all depositors and other creditors shall be treated | ||||||
12 | as if they have consented to the plan of reorganization. A | ||||||
13 | department, agency, or political subdivision of this State | ||||||
14 | holding a claim that will not be paid in full is authorized to | ||||||
15 | participate in a plan of reorganization as any other creditor | ||||||
16 | and shall be subject to and bound by its provisions as any | ||||||
17 | other creditor. | ||||||
18 | (205 ILCS 105/10-45 new) | ||||||
19 | Sec. 10-45. Requirements of reorganization plan. A plan of | ||||||
20 | reorganization for an association shall not be proposed under | ||||||
21 | this Act unless: | ||||||
22 | (1) the plan is feasible and fair to all classes of | ||||||
23 | depositors, creditors and stockholders; | ||||||
24 | (2) the face amount of the interest accorded to any | ||||||
25 | class of depositors, creditors, and stockholders under the |
| |||||||
| |||||||
1 | plan does not exceed the value of the assets upon | ||||||
2 | liquidation less the full amount of the claims of all prior | ||||||
3 | classes, subject, however, to any fair adjustment for new | ||||||
4 | capital that any class will pay in under the plan; | ||||||
5 | (3) the plan assures the removal of any director, | ||||||
6 | officer, or employee responsible for any unsound or | ||||||
7 | unlawful action or the existence of an unsound condition; | ||||||
8 | (4) any merger or consolidation provided by the plan | ||||||
9 | conforms to the requirements of this Act; and | ||||||
10 | (5) any reorganized association provided by the plan | ||||||
11 | conforms to the requirements of this Act for the | ||||||
12 | organization of an association. | ||||||
13 | (205 ILCS 105/10-50 new) | ||||||
14 | Sec. 10-50. Reorganization; emergency. Whenever, in the | ||||||
15 | course of reorganization, supervening conditions render the | ||||||
16 | plan of reorganization unfair or its execution impractical, the | ||||||
17 | Secretary may modify the plan, provided the modification is | ||||||
18 | with the written consent of the depositors and other creditors | ||||||
19 | representing at least 75% in amount of the total deposits and | ||||||
20 | other liabilities that are impaired or lessened by the | ||||||
21 | modification, or may, provided the Federal Deposit Insurance | ||||||
22 | has not been appointed, appoint a receiver for liquidation as | ||||||
23 | provided in this Act. | ||||||
24 | (205 ILCS 105/10-55 new) |
| |||||||
| |||||||
1 | Sec. 10-55. Appointment of receiver; court proceeding. | ||||||
2 | (a) If the Secretary determines, which determination may be | ||||||
3 | made at the time of or any time subsequent to his or her taking | ||||||
4 | possession and control of an association and its assets, that | ||||||
5 | no practical possibility exists to reorganize the association | ||||||
6 | after reasonable efforts have been made and that it should be | ||||||
7 | liquidated through receivership, then the Secretary shall | ||||||
8 | appoint a receiver and require of the receiver a bond and | ||||||
9 | security as the Secretary deems proper, and the Secretary, | ||||||
10 | represented by the Attorney General, shall, if the Federal | ||||||
11 | Deposit Insurance Corporation is not acting as receiver, file a | ||||||
12 | complaint for the dissolution or winding up of the affairs of | ||||||
13 | an association in the circuit court of the county where such | ||||||
14 | association is located. | ||||||
15 | (b) Unless the Federal Deposit Insurance Corporation is | ||||||
16 | acting as receiver for the association, the Secretary, upon | ||||||
17 | taking possession and control of an association and its assets, | ||||||
18 | may and, if he or she has not previously done so, shall, | ||||||
19 | immediately upon filing a complaint for dissolution, make an | ||||||
20 | examination of the affairs of the trust department of the | ||||||
21 | association or appoint a corporate fiduciary or other suitable | ||||||
22 | person to make the examination as the Secretary's agent. The | ||||||
23 | examination shall be conducted in accordance with and pursuant | ||||||
24 | to the authority granted under Section 5-2 of the Corporate | ||||||
25 | Fiduciary Act and the corporate fiduciary or other suitable | ||||||
26 | person conducting the examination shall have and may exercise |
| |||||||
| |||||||
1 | on behalf of the Secretary all of the powers and authority | ||||||
2 | granted to the Secretary. The report of examination shall, to | ||||||
3 | the extent reasonably possible, identify those governing | ||||||
4 | instruments with specific instructions concerning the | ||||||
5 | appointment of a successor fiduciary. A copy of the report | ||||||
6 | shall be filed in any dissolution proceeding filed by the | ||||||
7 | Secretary. The reasonable fees and necessary expenses of the | ||||||
8 | examining corporate fiduciary or other suitable person, as | ||||||
9 | approved by the Secretary or as recommended by the Secretary | ||||||
10 | and approved by the court if a dissolution proceeding has been | ||||||
11 | filed, shall be borne by the subject association and shall have | ||||||
12 | the same priority for payment as the reasonable and necessary | ||||||
13 | expenses of the Secretary in conducting an examination. | ||||||
14 | As soon as reasonably can be done, the Secretary, if he or | ||||||
15 | she deems it advisable, shall seek the advice and instruction | ||||||
16 | of the court concerning the removal of the corporate fiduciary | ||||||
17 | as to all of its fiduciary accounts and the appointment of a | ||||||
18 | successor fiduciary, which may be the examining corporate | ||||||
19 | fiduciary, to take over and administer all of the fiduciary | ||||||
20 | accounts being administered by the trust department of the | ||||||
21 | association. The corporate fiduciary or other suitable person | ||||||
22 | appointed to make the examination shall make a proper | ||||||
23 | accounting, in the manner and scope as determined by the | ||||||
24 | Secretary to be practical and advisable under the | ||||||
25 | circumstances, on behalf of the trust department of the | ||||||
26 | association and no guardian ad litem need be appointed to |
| |||||||
| |||||||
1 | review the accounting. | ||||||
2 | (205 ILCS 105/10-60 new) | ||||||
3 | Sec. 10-60. Notice of receivership. Upon appointing a | ||||||
4 | receiver, other than the Federal Deposit Insurance | ||||||
5 | Corporation, and upon the filing of a complaint for the | ||||||
6 | dissolution or winding up of the affairs of an association, the | ||||||
7 | Secretary shall cause notice to be given in that newspaper as | ||||||
8 | he or she directs once each week for 12 consecutive weeks | ||||||
9 | calling on all persons who may have claims against such | ||||||
10 | association to present the same to such receiver and to make | ||||||
11 | legal proof thereof and notifying all such persons and all to | ||||||
12 | whom it may concern of the filing of a complaint for the | ||||||
13 | dissolution or winding up of the affairs of the association and | ||||||
14 | stating the name and location of the court. All persons who may | ||||||
15 | have claims against the association and the receiver to whom | ||||||
16 | the persons have presented their claims may present them to the | ||||||
17 | clerk of the court, and the allowance or disallowance of the | ||||||
18 | claims by the court in connection with the proceedings shall be | ||||||
19 | deemed an adjudication in a court of competent jurisdiction. | ||||||
20 | (205 ILCS 105/10-65 new) | ||||||
21 | Sec. 10-65. Receiver's powers; duties. Other than the | ||||||
22 | Federal Deposit Insurance Corporation, which shall derive its | ||||||
23 | powers and perform its duties pursuant to the Federal Deposit | ||||||
24 | Insurance Act and regulations promulgated thereunder, the |
| |||||||
| |||||||
1 | receiver for an association, under the direction of the | ||||||
2 | Secretary, shall have the power and authority and is charged | ||||||
3 | with the duties and responsibilities as follows: | ||||||
4 | (1) He or she shall take possession of and, for the | ||||||
5 | purpose of the receivership, the title to the books, | ||||||
6 | records, and assets of every description of the | ||||||
7 | association. | ||||||
8 | (2) He or she shall proceed to collect all debts, dues, | ||||||
9 | and claims belonging to the association. | ||||||
10 | (3) He or she shall file with the Secretary a copy of | ||||||
11 | each report that he or she makes to the court, together | ||||||
12 | with other reports and records as the Secretary may | ||||||
13 | require. | ||||||
14 | (4) He or she shall have authority to sue and defend in | ||||||
15 | his or her own name with respect to the affairs, assets, | ||||||
16 | claims, debts, and choses in action of the association. | ||||||
17 | (5) He or she shall have authority, and it shall be his | ||||||
18 | or her duty, to surrender to the customers of such | ||||||
19 | association their private papers and valuables left with | ||||||
20 | the association for safekeeping, upon satisfactory proof | ||||||
21 | of ownership. | ||||||
22 | (6) He or she shall have authority to redeem or take | ||||||
23 | down collateral hypothecated by the association to secure | ||||||
24 | its notes or other evidence of indebtedness whenever the | ||||||
25 | Secretary deems it to the best interest of the creditors of | ||||||
26 | the association to do so. |
| |||||||
| |||||||
1 | (7) Whenever he or she finds it necessary in his or her | ||||||
2 | opinion to use and employ money of the association in order | ||||||
3 | to protect fully and benefit the association, by the | ||||||
4 | purchase or redemption of any property, real or personal, | ||||||
5 | in which the association may have any rights by reason of | ||||||
6 | any bond, mortgage, assignment, or other claim thereto, he | ||||||
7 | or she may certify the facts together with his or her | ||||||
8 | opinions as to the value of the property involved, and the | ||||||
9 | value of the equity the association may have in the | ||||||
10 | property to the Secretary, together with a request for the | ||||||
11 | right and authority to use and employ so much of the money | ||||||
12 | of the association as may be necessary to purchase the | ||||||
13 | property, or to redeem the same from a sale if there was a | ||||||
14 | sale, and if such request is granted, the receiver may use | ||||||
15 | so much of the money of the association as the Secretary | ||||||
16 | may have authorized to purchase the property at such sale. | ||||||
17 | (8) He or she shall deposit daily all moneys collected | ||||||
18 | by him or her in any state or national association selected | ||||||
19 | by the Secretary, who may require of (and the association | ||||||
20 | so selected may furnish) the depository satisfactory | ||||||
21 | securities or satisfactory surety bond for the safekeeping | ||||||
22 | and prompt payment of the money so deposited. The deposits | ||||||
23 | shall be made in the name of the Secretary in trust for the | ||||||
24 | association and be subject to withdrawal upon his or her | ||||||
25 | order or upon the order of persons as the Secretary may | ||||||
26 | designate. The moneys may be deposited without interest, |
| |||||||
| |||||||
1 | unless otherwise agreed. However, if any interest was paid | ||||||
2 | by such depository, it shall accrue to the benefit of the | ||||||
3 | particular trust to which the deposit belongs. | ||||||
4 | (9) He or she shall do such things and take steps from | ||||||
5 | time to time under the direction and approval of the | ||||||
6 | Secretary as may reasonably appear to be necessary to | ||||||
7 | conserve the association's assets and secure the best | ||||||
8 | interests of the creditors of the association. | ||||||
9 | (10) He or she shall record any judgment of dissolution | ||||||
10 | entered in a dissolution proceeding and then deliver to the | ||||||
11 | Secretary a certified copy thereof, together with all books | ||||||
12 | of accounts and ledgers of the association for | ||||||
13 | preservation. | ||||||
14 | (205 ILCS 105/10-70 new) | ||||||
15 | Sec. 10-70. Receiver's powers; court directions. Upon the | ||||||
16 | order of the court where the Secretary's complaint for the | ||||||
17 | dissolution or winding up of the affairs of the association was | ||||||
18 | filed, the receiver for the association shall have the power | ||||||
19 | and authority and is charged with the duties and | ||||||
20 | responsibilities as follows: | ||||||
21 | (1) He or she may sell and compound all bad and | ||||||
22 | doubtful debts on such terms as the court shall direct. | ||||||
23 | (2) He or she may sell the real and personal property | ||||||
24 | of the association on such terms as the court shall direct. | ||||||
25 | (3) He or she may petition the court for the authority |
| |||||||
| |||||||
1 | to borrow money, and to pledge the assets of the | ||||||
2 | association as security therefor, whereupon the practice | ||||||
3 | and procedure shall be as follows: | ||||||
4 | (A) Upon the filing of the petition, the court | ||||||
5 | shall set a date for the hearing of the petition and | ||||||
6 | shall prescribe the form and manner of the notice to be | ||||||
7 | given to the officers, stockholders, creditors, or | ||||||
8 | other persons interested in such association. | ||||||
9 | (B) Upon a hearing, any officer, stockholder, | ||||||
10 | creditor, or person interested shall have the right to | ||||||
11 | be heard. | ||||||
12 | (C) If the court grants such authority, then the | ||||||
13 | receiver may borrow money and issue evidences of | ||||||
14 | indebtedness therefor and may secure the payment of | ||||||
15 | such loan by the mortgage, pledge, transfer in trust, | ||||||
16 | or hypothecation of any or all property and assets of | ||||||
17 | such association, whether real, personal, or mixed, | ||||||
18 | superior to any charge thereon for the expenses of | ||||||
19 | liquidation. | ||||||
20 | (D) Loans may be obtained in such amounts upon such | ||||||
21 | terms and conditions and with provisions for repayment | ||||||
22 | as may be deemed necessary or expedient. | ||||||
23 | (E) Loans may be obtained for the purpose of | ||||||
24 | facilitating liquidation, protecting or preserving the | ||||||
25 | assets, expediting the making of distributions to | ||||||
26 | depositors and other creditors, providing for the |
| |||||||
| |||||||
1 | expenses of administration and liquidation, and in | ||||||
2 | aiding in the reopening or reorganization of such | ||||||
3 | association or its merger or consolidation with | ||||||
4 | another association, or in the sale of its assets. | ||||||
5 | (F) The receiver shall be under no personal | ||||||
6 | obligation to repay any such loan and shall have | ||||||
7 | authority to take any action necessary or proper to | ||||||
8 | consummate such loan and to provide for the repayment | ||||||
9 | thereof, and may, when required, give bond for the | ||||||
10 | faithful performance of all undertakings in connection | ||||||
11 | therewith. | ||||||
12 | (G) Prior to petitioning the court for authority to | ||||||
13 | make any loan, the receiver may make application for or | ||||||
14 | negotiate any loan subject to obtaining an order of the | ||||||
15 | court approving the same. | ||||||
16 | (4) He or she may make and carry out agreements with | ||||||
17 | other associations or with the United States or any agency | ||||||
18 | thereof that has insured the association's deposits, in | ||||||
19 | whole or in part, for the payment or assumption of the | ||||||
20 | association's liabilities, in whole or in part, and he or | ||||||
21 | she may transfer assets and make guaranties in connection | ||||||
22 | therewith. | ||||||
23 | (5) After the expiration of 12 weeks after the first | ||||||
24 | publication of the Secretary's notice as provided in | ||||||
25 | Section 10-60, he or she shall file with the court a | ||||||
26 | correct list of all creditors of the association, as shown |
| |||||||
| |||||||
1 | by its books, who have not presented their claims and the | ||||||
2 | amount of their respective claims after allowing all just | ||||||
3 | credits, deductions and set-offs as shown by the books of | ||||||
4 | the association. Claims filed shall be deemed proven, | ||||||
5 | unless objections are filed thereto by a party or parties | ||||||
6 | interested therein within the time fixed by the court. | ||||||
7 | (6) At the termination of his or her administration, he | ||||||
8 | or she shall petition the court for the entry of a judgment | ||||||
9 | of dissolution. After a hearing upon notice as the court | ||||||
10 | may prescribe, the court may enter a judgment of | ||||||
11 | dissolution whereupon the association's charter is | ||||||
12 | terminated. | ||||||
13 | The provisions of this Section do not apply to the Federal | ||||||
14 | Deposit Insurance Corporation as receiver, which shall derive | ||||||
15 | its powers and perform its duties pursuant to the Federal | ||||||
16 | Deposit Insurance Act. | ||||||
17 | (205 ILCS 105/10-75 new) | ||||||
18 | Sec. 10-75. Change of receiver. At any time after a | ||||||
19 | receiver, other than the Federal Deposit Insurance | ||||||
20 | Corporation, is appointed by the Secretary, whenever | ||||||
21 | two-thirds of the creditors of an association petition the | ||||||
22 | Secretary for the appointment of any person nominated by them | ||||||
23 | as receiver, who is a reputable person and a resident of the | ||||||
24 | county in which such association is located, it shall be the | ||||||
25 | duty of the Secretary to make such appointment and all rights |
| |||||||
| |||||||
1 | and duties of his or her predecessor shall at once devolve upon | ||||||
2 | such appointee. The Secretary may remove any receiver appointed | ||||||
3 | by him or her, except the Federal Deposit Insurance Corporation | ||||||
4 | or such receiver as shall have been appointed through | ||||||
5 | nomination by the creditors. Such a receiver may be removed by | ||||||
6 | the court upon a petition for his or her removal filed by the | ||||||
7 | Secretary after hearing had upon such notice as the court may | ||||||
8 | prescribe. Upon the death, inability to act, resignation, or | ||||||
9 | removal of a receiver, the Secretary may appoint his or her | ||||||
10 | successor and, upon such appointment, all rights and duties of | ||||||
11 | his predecessor shall at once devolve upon such appointee. | ||||||
12 | (205 ILCS 105/10-80 new) | ||||||
13 | Sec. 10-80. Insured deposits; subrogation. The right of an | ||||||
14 | agency of the United States insuring deposits to be subrogated | ||||||
15 | to the rights of depositors upon payment of their claim shall | ||||||
16 | not be less extensive than the law of the United States | ||||||
17 | requires as a condition of the authority to issue insurance or | ||||||
18 | make the payment. | ||||||
19 | (205 ILCS 105/10-85 new) | ||||||
20 | Sec. 10-85. Expenses and fees. All expenses of a | ||||||
21 | receivership, including reasonable receiver's and attorney's | ||||||
22 | fees, approved by the Secretary shall be paid out of the assets | ||||||
23 | of the association. All expenses of any preliminary or other | ||||||
24 | examination into the condition of any such association or |
| |||||||
| |||||||
1 | receivership and all expenses incident to and in connection | ||||||
2 | with the possession and control of the association and its | ||||||
3 | assets for the purpose of examination, reorganization, or | ||||||
4 | liquidation through receivership shall be paid out of the | ||||||
5 | assets of that association. The payment authorized under this | ||||||
6 | Section may be made by the Secretary with moneys and property | ||||||
7 | of the association in his or her possession and control and | ||||||
8 | shall have priority over all claims. | ||||||
9 | (205 ILCS 105/10-90 new) | ||||||
10 | Sec. 10-90. Dividends; dissolution. From time to time | ||||||
11 | during a receivership other than a receivership conducted by | ||||||
12 | the Federal Deposit Insurance Corporation, the Secretary shall | ||||||
13 | make and pay from moneys of the association a ratable dividend | ||||||
14 | on all claims as may be proved to his or her satisfaction or | ||||||
15 | adjudicated by the court. Claims so proven or adjudicated shall | ||||||
16 | bear interest at the rate of 3% per annum from the date of the | ||||||
17 | appointment of the receiver to the date of payment, but all | ||||||
18 | dividends on a claim shall be applied first to principal. In | ||||||
19 | computing the amount of any dividend to be paid, if the | ||||||
20 | Secretary deems it desirable in the interests of economy of | ||||||
21 | administration and to the interest of the association and its | ||||||
22 | creditors, he or she may pay up to the amount of $10 of each | ||||||
23 | claim or unpaid portion thereof in full. As the proceeds of the | ||||||
24 | assets of the association are collected in the course of | ||||||
25 | liquidation, the Secretary shall make and pay further dividends |
| |||||||
| |||||||
1 | on all claims previously proven or adjudicated. After one year | ||||||
2 | from the entry of a judgment of dissolution, all unclaimed | ||||||
3 | dividends shall be remitted to the State Treasurer in | ||||||
4 | accordance with the Uniform Disposition of Unclaimed Property | ||||||
5 | Act, together with a list of all unpaid claimants, their last | ||||||
6 | known addresses, and the amounts unpaid. | ||||||
7 | (205 ILCS 105/10-95 new) | ||||||
8 | Sec. 10-95. Validation of dividends; destruction of | ||||||
9 | records. In all cases where the Secretary, prior to this | ||||||
10 | Section taking effect, has made ratable dividends of money on | ||||||
11 | claims that have been proven to the satisfaction of the | ||||||
12 | Secretary or adjudicated in any court of this State, the | ||||||
13 | dividends are hereby ratified and confirmed and made valid and | ||||||
14 | legal in all respects. All records of receiverships heretofore | ||||||
15 | and hereafter received by the Secretary or by a receiver | ||||||
16 | appointed by the Secretary shall be held by the Secretary or | ||||||
17 | such receiver for the period of 2 years after the close of the | ||||||
18 | receivership and, at the termination of the 2-year period, may | ||||||
19 | then be destroyed. | ||||||
20 | (205 ILCS 105/10-100 new) | ||||||
21 | Sec. 10-100. Judicial review. Whenever the Secretary shall | ||||||
22 | have taken possession and control of an association and its | ||||||
23 | assets for the purpose of examination, reorganization, or | ||||||
24 | liquidation through receivership, or whenever the Secretary |
| |||||||
| |||||||
1 | shall have appointed a receiver for an association, other than | ||||||
2 | the Federal Deposit Insurance Corporation, and filed a | ||||||
3 | complaint for the dissolution or for the winding up of the | ||||||
4 | affairs of an association, and the association denies the | ||||||
5 | grounds for such actions, it may, at any time within 10 days, | ||||||
6 | apply to the Circuit Court of Sangamon County, Illinois, to | ||||||
7 | enjoin further proceedings in the premises; and such court | ||||||
8 | shall cite the Secretary to show cause why further proceedings | ||||||
9 | should not be enjoined, and if the court shall find that such | ||||||
10 | grounds do not exist, the court shall make an order enjoining | ||||||
11 | the Secretary and any receiver acting under his or her | ||||||
12 | direction from all further proceedings on account of such | ||||||
13 | alleged grounds, provided that neither the 10 days allowed by | ||||||
14 | this Section for judicial review nor the pendency of any | ||||||
15 | proceedings for judicial review shall operate to defer, delay, | ||||||
16 | impede, or prevent the payment or acquisition by the Federal | ||||||
17 | Deposit Insurance Corporation of the deposit liabilities of the | ||||||
18 | association that are insured by the Federal Deposit Insurance | ||||||
19 | Corporation, and during said period allowed for judicial review | ||||||
20 | and during the pendency of any proceedings for judicial review | ||||||
21 | under this Section, the Secretary or, as the case may be, the | ||||||
22 | receiver shall make available to the Federal Deposit Insurance | ||||||
23 | Corporation the facilities in or of the association and books, | ||||||
24 | records, and other relevant data of the association as may be | ||||||
25 | necessary or appropriate to enable the Federal Deposit | ||||||
26 | Insurance Corporation to pay out or to acquire the insured |
| |||||||
| |||||||
1 | deposit liabilities of the association, and said Federal | ||||||
2 | Deposit Insurance Corporation and its directors, officers, | ||||||
3 | agents, and employees, and the Secretary and his agents and | ||||||
4 | employees, including the receiver, if any, shall be free from | ||||||
5 | any liability to the association and its stockholders and | ||||||
6 | creditors for or on account of any matter or thing in this | ||||||
7 | proviso referred to or provided for.
| ||||||
8 | (205 ILCS 105/11-1) (from Ch. 17, par. 3311-1)
| ||||||
9 | Sec. 11-1. Offenses and penalties. Any person who violates | ||||||
10 | the
provisions of Sections 3-9, 3-10, 5-11 or 5-12 (b) of this | ||||||
11 | Act is guilty of
a Business Offense.
| ||||||
12 | The Commissioner, in addition to any other powers granted | ||||||
13 | in this Act, shall have the power and authority to impose civil | ||||||
14 | penalties of up to $100,000 against any person for each | ||||||
15 | violation of any provision of this Act, any rule promulgated in | ||||||
16 | accordance with this Act, any order of the Commissioner, or any | ||||||
17 | other action that in the Commissioner's discretion is an unsafe | ||||||
18 | or unsound banking practice. | ||||||
19 | (Source: P.A. 86-137.)
| ||||||
20 | Section 30. The Savings Bank Act is amended by changing | ||||||
21 | Sections 1003, 1007.30, 4009, 9001, 9002, 9003, 9004, and 11006 | ||||||
22 | by changing the heading to Article 10, and by adding Sections | ||||||
23 | 1007.57, 10011, 10015, 10020, 10025, 10030, 10035, 10040, | ||||||
24 | 10045, 10050, 10055, 10060, 10065, 10070, 10075, 10080, 10085, |
| |||||||
| |||||||
1 | 10090, 10095, and 10100 as follows:
| ||||||
2 | (205 ILCS 205/1003) (from Ch. 17, par. 7301-3)
| ||||||
3 | Sec. 1003. Administration. This Act shall be administered | ||||||
4 | by the
Commissioner of Banks and Real Estate as provided in the | ||||||
5 | Division of Banking Office of Banks and
Real Estate Act.
| ||||||
6 | (Source: P.A. 89-508, eff. 7-3-96.)
| ||||||
7 | (205 ILCS 205/1007.30) (from Ch. 17, par. 7301-7.30)
| ||||||
8 | Sec. 1007.30.
"Commissioner" means the Secretary of | ||||||
9 | Financial and Professional Regulation Commissioner of Banks
| ||||||
10 | and Real Estate or a person authorized by the Secretary | ||||||
11 | Commissioner , the Division of Banking Office of Banks
and Real | ||||||
12 | Estate Act, or this Act to act in the Secretary's | ||||||
13 | Commissioner's stead.
| ||||||
14 | (Source: P.A. 89-508, eff. 7-3-96.)
| ||||||
15 | (205 ILCS 205/1007.57 new) | ||||||
16 | Sec. 1007.57. Division. "Division" means the Division of | ||||||
17 | Banking within the Department of Financial and Professional | ||||||
18 | Regulation.
| ||||||
19 | (205 ILCS 205/4009) (from Ch. 17, par. 7304-9)
| ||||||
20 | Sec. 4009. Bonds of officers and directors.
| ||||||
21 | (a) Every person appointed or elected to any position
| ||||||
22 | requiring the receipt, payment, management, or use of money
|
| |||||||
| |||||||
1 | belonging to a savings bank or whose duties permit or require
| ||||||
2 | access to or custody of any of the savings bank's money or
| ||||||
3 | securities or whose duties permit the regular making of entries | ||||||
4 | in
the books or other records of the savings bank shall become | ||||||
5 | bonded in some
trust or company authorized to issue bonds in | ||||||
6 | this State or in a fidelity
insurance company licensed to do | ||||||
7 | business in this State before assuming any
duties. Each bond | ||||||
8 | shall be on a form or forms as the Commissioner shall
require | ||||||
9 | and in the amount as the board of directors shall fix and | ||||||
10 | approve.
Each bond, payable to the savings bank, shall be an | ||||||
11 | indemnity for any loss
the savings bank may sustain in money or | ||||||
12 | other property
through any dishonest or criminal act or | ||||||
13 | omission by any person
required to be bonded, committed either | ||||||
14 | alone or in concert with
others. The bond shall be in the form | ||||||
15 | and amount prescribed by
the Commissioner, who may at any time | ||||||
16 | require one or more
additional bonds. A true copy of every | ||||||
17 | bond, including all riders
and endorsements executed | ||||||
18 | subsequent to the effective date of the
bond, shall be filed at | ||||||
19 | all times with the Commissioner. Each bond
shall provide that a | ||||||
20 | cancellation thereof either by the surety or
by the insured | ||||||
21 | shall not become effective unless and until 30 days
notice in | ||||||
22 | writing first shall have been given to the Commissioner,
unless | ||||||
23 | he shall have approved the cancellation earlier.
| ||||||
24 | (b) Nothing contained in this Section shall preclude the
| ||||||
25 | Commissioner from proceeding against a savings bank as provided | ||||||
26 | in
this Act should he believe that it is being conducted in an
|
| |||||||
| |||||||
1 | unsafe manner in that the form or amount of bonds so fixed and
| ||||||
2 | approved by the board of directors is inadequate to give | ||||||
3 | reasonable
protection to the savings bank.
| ||||||
4 | (Source: P.A. 86-1213.)
| ||||||
5 | (205 ILCS 205/9001) (from Ch. 17, par. 7309-1)
| ||||||
6 | Sec. 9001. Personnel, records, files, actions, and duties.
| ||||||
7 | The Commissioner shall appoint, subject to applicable
| ||||||
8 | provisions of the Personnel Code, a supervisor, examiners,
| ||||||
9 | employees, experts, and special assistants as may be necessary | ||||||
10 | to
effectively carry out this Act. The Commissioner shall | ||||||
11 | require
each supervisor, examiner, expert, and special | ||||||
12 | assistant employed
or appointed by him to give bond, with | ||||||
13 | security to be approved by
the Commissioner, not in any case | ||||||
14 | less than $15,000, conditioned
upon the faithful discharge of | ||||||
15 | their duties. The premium on the
bond shall be paid by the | ||||||
16 | Commissioner from funds appropriated for
that purpose. The | ||||||
17 | bond, along with verification of payment of the
premium on the | ||||||
18 | bond, shall be filed in the office of the Secretary
of State.
| ||||||
19 | (Source: P.A. 86-1213.)
| ||||||
20 | (205 ILCS 205/9002) (from Ch. 17, par. 7309-2)
| ||||||
21 | Sec. 9002. Powers of Secretary. The Secretary shall have | ||||||
22 | the following
powers and duties:
| ||||||
23 | (1) To exercise the rights, powers, and duties set forth in
| ||||||
24 | this Act or in any related Act.
|
| |||||||
| |||||||
1 | (2) To establish regulations as may be reasonable or
| ||||||
2 | necessary to accomplish the purposes of this Act.
| ||||||
3 | (3) To make an annual report regarding the work of his
| ||||||
4 | office under this Act as he may consider desirable to the
| ||||||
5 | Governor, or as the Governor may request.
| ||||||
6 | (4) To cause a suit to be filed in his name to enforce
any | ||||||
7 | law of this State that applies to savings banks, their service
| ||||||
8 | corporations, subsidiaries, affiliates, or holding companies
| ||||||
9 | operating under this Act, including the enforcement of any
| ||||||
10 | obligation of the officers, directors, agents, or employees of | ||||||
11 | any
savings bank.
| ||||||
12 | (5) To prescribe a uniform manner in which the books and
| ||||||
13 | records of every savings bank are to be maintained.
| ||||||
14 | (6) To establish a reasonable fee
structure for savings | ||||||
15 | banks and holding companies operating under
this Act and for | ||||||
16 | their service corporations and subsidiaries.
The fees shall | ||||||
17 | include, but not be limited to, annual fees,
application fees, | ||||||
18 | regular and special examination fees, and other
fees as the | ||||||
19 | Secretary establishes and demonstrates to be
directly | ||||||
20 | resultant from the Secretary's responsibilities under
this Act | ||||||
21 | and as are directly attributable to individual entities
| ||||||
22 | operating under this Act. The aggregate of all fees collected | ||||||
23 | by
the Secretary on and after the effective date of this Act | ||||||
24 | shall
be paid promptly after receipt of the same, accompanied | ||||||
25 | by a
detailed statement thereof, into the Savings and | ||||||
26 | Residential Finance Regulatory
Fund subject to the provisions |
| |||||||
| |||||||
1 | of Section 7-19.1 of the Illinois Savings and Loan Act of 1985 | ||||||
2 | including without limitation the provision for credits against | ||||||
3 | regulatory fees. The amounts deposited into the Fund shall be | ||||||
4 | used for the ordinary and
contingent expenses of the Office of | ||||||
5 | Banks and Real Estate. Nothing
in this Act shall prevent | ||||||
6 | continuing the practice of paying expenses involving
salaries, | ||||||
7 | retirement, social security, and State-paid insurance of State
| ||||||
8 | officers by appropriation from the General Revenue Fund. The | ||||||
9 | Secretary may require payment of the fees under this Act by an | ||||||
10 | electronic transfer of funds or an automatic debit of an | ||||||
11 | account of each of the savings banks.
| ||||||
12 | (Source: P.A. 95-1047, eff. 4-6-09.)
| ||||||
13 | (205 ILCS 205/9003) (from Ch. 17, par. 7309-3)
| ||||||
14 | Sec. 9003. Prohibited activities. The Commissioner, deputy | ||||||
15 | commissioners, and employees
of the Office of Banks and Real | ||||||
16 | Estate shall be subject to the restrictions
provided in Section | ||||||
17 | 2.5 of the Division of Banking Office of Banks and Real Estate | ||||||
18 | Act including,
without limitation, the restrictions on (i) | ||||||
19 | owning shares of stock or holding
any other equity interest in | ||||||
20 | an entity regulated under this Act or in any
corporation or | ||||||
21 | company that owns or controls an entity regulated under this
| ||||||
22 | Act; (ii) being an officer, director, employee, or agent of an | ||||||
23 | entity regulated
under this Act; and (iii) obtaining a loan or | ||||||
24 | accepting a gratuity from an
entity regulated under this Act.
| ||||||
25 | (Source: P.A. 89-508, eff. 7-3-96.)
|
| |||||||
| |||||||
1 | (205 ILCS 205/9004) (from Ch. 17, par. 7309-4)
| ||||||
2 | Sec. 9004. Examination.
| ||||||
3 | (a) At least once every 18 months or more often if it is
| ||||||
4 | deemed necessary or expedient, the Commissioner shall examine | ||||||
5 | the
books, records, operations, and affairs of each savings | ||||||
6 | bank
operating under this Act. In the course of the | ||||||
7 | examination, the
Commissioner shall also examine in the same | ||||||
8 | manner all entities,
companies, and individuals which or whom | ||||||
9 | the Commissioner determines
may have a relationship with the | ||||||
10 | savings bank or any subsidiary or
entity affiliated with it, if | ||||||
11 | the relationship may adversely affect
the affairs, activities, | ||||||
12 | and safety and soundness of the savings
bank, including: (i) | ||||||
13 | companies controlled by the savings bank;
(ii) entities, | ||||||
14 | including companies controlled by the company,
individual, or | ||||||
15 | individuals that control the savings bank;
and (iii) the | ||||||
16 | company or other entity which controls or owns the
savings | ||||||
17 | bank. For purposes of this subsection, the Commissioner shall | ||||||
18 | deem
it necessary or expedient to conduct an examination more | ||||||
19 | often than every
18 months if a required report from a savings | ||||||
20 | bank indicates a material
change in financial condition or a | ||||||
21 | material violation of a law or regulation.
In that event, the | ||||||
22 | Commissioner shall initiate an examination within 30
days of | ||||||
23 | receipt of that information. In the event that the condition is
| ||||||
24 | grounds for taking custody of the savings bank under Section | ||||||
25 | 10001 of this
Act, the examination shall be initiated |
| |||||||
| |||||||
1 | immediately. Notwithstanding any other provision of this Act, | ||||||
2 | every savings bank, as defined by rule, or, if not defined, to | ||||||
3 | the same extent as would be permitted in the case of a State | ||||||
4 | bank, the Secretary, in lieu of the examination, may accept on | ||||||
5 | an alternating basis the examination made by the eligible | ||||||
6 | savings bank's appropriate federal banking agency pursuant to | ||||||
7 | Section 111 of the Federal Deposit Insurance Corporation | ||||||
8 | Improvement Act of 1991, provided the appropriate federal | ||||||
9 | banking agency has made an examination.
| ||||||
10 | (b) The Commissioner shall examine to determine:
| ||||||
11 | (1) Quality of financial condition, including safety | ||||||
12 | and
soundness and investment and loan quality.
| ||||||
13 | (2) Compliance with this Act and other applicable
| ||||||
14 | statutes and regulations.
| ||||||
15 | (3) Quality of management policies.
| ||||||
16 | (4) Overall safety and soundness of the savings bank,
| ||||||
17 | its parent, subsidiaries, and affiliates.
| ||||||
18 | (5) Remedial actions required to correct and to restore
| ||||||
19 | compliance with applicable statutes, regulations, and | ||||||
20 | proper
business policies.
| ||||||
21 | (c) The Commissioner shall promulgate regulations to
| ||||||
22 | implement and administer this Section.
| ||||||
23 | (d) If a savings bank, its holding company, or any of its
| ||||||
24 | corporate subsidiaries has not been audited at least once in | ||||||
25 | the
12 months prior to the Commissioner's examination, the | ||||||
26 | Commissioner
shall cause an audit of the savings bank's books |
| |||||||
| |||||||
1 | and records to be
made by an independent licensed public | ||||||
2 | accountant selected by the
Commissioner from a list composed of | ||||||
3 | certified public accountants
who have experience in savings | ||||||
4 | bank audits. The cost of the audit
shall be paid for by the | ||||||
5 | entity being audited.
| ||||||
6 | (e) The Commissioner or the Commissioner's examiners or | ||||||
7 | other
formally designated agents are authorized to administer | ||||||
8 | oaths and
to examine and to take and preserve testimony under | ||||||
9 | oath as to
anything in the affairs or ownership of any savings | ||||||
10 | bank or
institution or affiliate thereof.
| ||||||
11 | (Source: P.A. 86-1213.)
| ||||||
12 | (205 ILCS 205/Art. 10 heading) | ||||||
13 | ARTICLE 10. Involuntary Liquidation Custody and | ||||||
14 | Conservatorship
| ||||||
15 | (205 ILCS 205/10011 new) | ||||||
16 | Sec. 10011. Appointment of a receiver following taking of | ||||||
17 | custody. If, following the taking of custody of a savings bank, | ||||||
18 | the Secretary determines that the appointment of a receiver is | ||||||
19 | appropriate, then the provisions of this Article shall apply. | ||||||
20 | (205 ILCS 205/10015 new) | ||||||
21 | Sec. 10015. Secretary's proceedings exclusive. Except by | ||||||
22 | the authority of the Secretary, represented by the Attorney | ||||||
23 | General, or the
Federal Deposit Insurance Corporation pursuant |
| |||||||
| |||||||
1 | to the Federal Deposit Insurance Act, no complaint shall be | ||||||
2 | filed or proceedings commenced in any court for the dissolution | ||||||
3 | of, the winding up of the affairs of, or the appointment of a | ||||||
4 | receiver for any savings bank on the grounds that: | ||||||
5 | (1) it is insolvent; | ||||||
6 | (2) its capital is impaired or it is otherwise in an | ||||||
7 | unsound condition; | ||||||
8 | (3) its business is being conducted in an unlawful, | ||||||
9 | fraudulent or unsafe manner; | ||||||
10 | (4) it is unable to continue operations; or | ||||||
11 | (5) its examination has been obstructed or impaired. | ||||||
12 | (205 ILCS 205/10020 new) | ||||||
13 | Sec. 10020. Capital impairment; correction. | ||||||
14 | (a) If the Secretary, with respect to a savings bank, | ||||||
15 | shall find: | ||||||
16 | (1) its capital is impaired or it is otherwise in an | ||||||
17 | unsound condition; | ||||||
18 | (2) its business is being conducted in an unlawful | ||||||
19 | manner, including, without limitation, in violation of any | ||||||
20 | provisions of this Act, or in a fraudulent or unsafe | ||||||
21 | manner; | ||||||
22 | (3) it is unable to continue operations; or | ||||||
23 | (4) its examination has been obstructed or impeded; | ||||||
24 | then the Secretary may give notice to the board of directors of | ||||||
25 | his or her finding or findings. If the situation so found by |
| |||||||
| |||||||
1 | the Secretary shall not be corrected to his or her satisfaction | ||||||
2 | within a period of at least 60 but no more than 180 days after | ||||||
3 | receipt of the notice, which period shall be determined by the | ||||||
4 | Secretary and set forth in the notice, then the Secretary, at | ||||||
5 | the termination of that period, may take possession and control | ||||||
6 | of the savings bank and its assets as provided for in this Act | ||||||
7 | for the purpose of examination, reorganization, or liquidation | ||||||
8 | through receivership. | ||||||
9 | (b) If the Secretary has given notice to the board of | ||||||
10 | directors of his or her findings, as provided in subsection | ||||||
11 | (a), and the time period prescribed in that notice has expired, | ||||||
12 | the Secretary may extend the time period prescribed in that | ||||||
13 | notice for such period as the Secretary deems appropriate. | ||||||
14 | (205 ILCS 205/10025 new) | ||||||
15 | Sec. 10025. Capital impairment; emergency. If, in addition | ||||||
16 | to a finding as provided in Section 10020 of this Act, the | ||||||
17 | Secretary is of the opinion and finds that an emergency exists | ||||||
18 | that may result in serious losses to the depositors or the | ||||||
19 | inability of the savings bank to continue in operations, meet | ||||||
20 | the demands of its depositors, or pay its obligations in the | ||||||
21 | normal course of business, he or she may, in his or her | ||||||
22 | discretion, without having given the notice provided for in | ||||||
23 | Section 10020, and whether or not proceedings under Section | ||||||
24 | 10020 have been instituted or are then pending, take possession | ||||||
25 | and control of the savings bank and its assets for the purpose |
| |||||||
| |||||||
1 | of examination, reorganization, or liquidation through | ||||||
2 | receivership. | ||||||
3 | (205 ILCS 205/10030 new) | ||||||
4 | Sec. 10030. Secretary's possession; power. The Secretary | ||||||
5 | may take possession and control of a savings bank and its | ||||||
6 | assets by posting upon the premises a notice reciting that the | ||||||
7 | Secretary is assuming possession pursuant to this Act and the | ||||||
8 | time when his or her possession shall be deemed to commence, | ||||||
9 | which time shall not pre-date the posting of the notice. | ||||||
10 | Promptly after taking possession and control of a savings bank, | ||||||
11 | if the Federal Deposit Insurance Corporation is not appointed | ||||||
12 | as receiver, the Secretary shall file a copy of the notice | ||||||
13 | posted upon the premises in the circuit court in the county in | ||||||
14 | which the savings bank is located, and thereupon the clerk of | ||||||
15 | such court shall note the filing of the notice upon the records | ||||||
16 | of the court, and shall enter such cause as a court action upon | ||||||
17 | the dockets of such court under the name and style of "In the | ||||||
18 | matter of the possession and control of the Secretary of | ||||||
19 | (insert the name of such savings bank)", and thereupon the | ||||||
20 | court wherein the cause is docketed shall be vested with | ||||||
21 | jurisdiction to hear and determine all issues and matters | ||||||
22 | pertaining to or connected with the Secretary's possession and | ||||||
23 | control of the savings bank as provided in this Act, and such | ||||||
24 | further issues and matters pertaining to or connected with the | ||||||
25 | Secretary's possession and control as may be submitted to the |
| |||||||
| |||||||
1 | court for its adjudication by the Secretary. When the Secretary | ||||||
2 | has taken possession and control of a savings bank and its | ||||||
3 | assets, then he or she shall be vested with the full powers of | ||||||
4 | management and control, including without limitation the | ||||||
5 | following: | ||||||
6 | (1) the power to continue or to discontinue the | ||||||
7 | business; | ||||||
8 | (2) the power to stop or to limit the payment of its | ||||||
9 | obligations; provided, however with respect to a qualified | ||||||
10 | financial contract between any party and a savings bank or | ||||||
11 | a branch or agency of which the Secretary has taken | ||||||
12 | possession and control, which party has a perfected | ||||||
13 | security interest in collateral or other valid lien or | ||||||
14 | security interest in collateral enforceable against third | ||||||
15 | parties pursuant to a security arrangement related to that | ||||||
16 | qualified financial contract, the party may retain all of | ||||||
17 | the collateral and upon repudiation or termination of that | ||||||
18 | qualified financial contract in accordance with its terms | ||||||
19 | apply the collateral in satisfaction of any claims secured | ||||||
20 | by the collateral; in no event shall the total amount so | ||||||
21 | applied exceed the global net payment obligation, if any; | ||||||
22 | (3) the power to collect and to use its assets and to | ||||||
23 | give valid receipts and acquittances therefore; | ||||||
24 | (4) the power to employ and to pay any necessary | ||||||
25 | assistants; | ||||||
26 | (5) the power to execute any instrument in the name of |
| |||||||
| |||||||
1 | the savings bank; | ||||||
2 | (6) the power to commence, defend, and conduct in its | ||||||
3 | name any action or proceeding in which it may be a party; | ||||||
4 | (7) the power, upon the order of the court, to sell and | ||||||
5 | convey its assets in whole or in part, and to sell or | ||||||
6 | compound bad or doubtful debts upon terms and conditions as | ||||||
7 | may be fixed in such order; | ||||||
8 | (8) the power, upon the order of the court, to make and | ||||||
9 | to carry out agreements with other savings banks or with | ||||||
10 | the United States or any agency thereof that shall insure | ||||||
11 | the savings bank's deposits, in whole or in part, for the | ||||||
12 | payment or assumption of the savings bank's liabilities, in | ||||||
13 | whole or in part, and to transfer assets and to make | ||||||
14 | guaranties, in whole or in part, and to transfer assets and | ||||||
15 | to make guaranties in connection therewith; | ||||||
16 | (9) the power, upon the order of the court, to borrow | ||||||
17 | money in the name of the savings bank and to pledge its | ||||||
18 | assets as security for the loan; | ||||||
19 | (10) the power to terminate his or her possession and | ||||||
20 | control by restoring the savings bank to its board of | ||||||
21 | directors; | ||||||
22 | (11) the power to reorganize the savings bank as | ||||||
23 | provided in this Act; | ||||||
24 | (12) the power to appoint a receiver and to order | ||||||
25 | liquidation of the savings bank as provided in this Act; | ||||||
26 | and |
| |||||||
| |||||||
1 | (13) the power, upon the order of the court and without | ||||||
2 | the appointment of a receiver, to determine that the | ||||||
3 | savings bank has been closed for the purpose of liquidation | ||||||
4 | without adequate provision being made for payment of its | ||||||
5 | depositors, and thereupon the savings bank shall be deemed | ||||||
6 | to have been closed on account of inability to meet the | ||||||
7 | demands of its depositors. | ||||||
8 | As soon as practical after taking possession, the Secretary | ||||||
9 | shall make his or her examination of the condition of the | ||||||
10 | savings bank and an inventory of the assets. Unless the time | ||||||
11 | shall be extended by order of the court, and unless the | ||||||
12 | Secretary shall have otherwise settled the affairs of a savings | ||||||
13 | bank pursuant to the provisions of this Act, at the termination | ||||||
14 | of 30 days from the time of taking possession and control of a | ||||||
15 | savings bank for the purpose of examination, reorganization or | ||||||
16 | liquidation through receivership, the Secretary shall either | ||||||
17 | terminate his or her possession and control by restoring the | ||||||
18 | savings bank to its board of directors or appoint a receiver | ||||||
19 | and order the liquidation of the savings bank as provided in | ||||||
20 | this Act. All necessary and reasonable expenses of the | ||||||
21 | Secretary's possession and control and of its reorganization | ||||||
22 | shall be borne by the savings bank and may be paid by the | ||||||
23 | Secretary from its assets. If the Federal Deposit Insurance | ||||||
24 | Corporation is appointed by the Secretary as receiver of a | ||||||
25 | savings bank, or the Federal Deposit Insurance Corporation | ||||||
26 | takes possession of the savings bank, the receivership |
| |||||||
| |||||||
1 | proceedings and the powers and duties of the Federal Deposit | ||||||
2 | Insurance Corporation shall be governed by the Federal Deposit | ||||||
3 | Insurance Act and regulations promulgated under that Act rather | ||||||
4 | than the provisions of this Act. | ||||||
5 | (205 ILCS 205/10035 new) | ||||||
6 | Sec. 10035. Secretary's possession; limitation of actions. | ||||||
7 | Except when the Federal Deposit Insurance Corporation has taken | ||||||
8 | possession of the savings bank or is acting as receiver, if the | ||||||
9 | Secretary has taken possession and control of a savings bank | ||||||
10 | and its assets, there shall be a postponement until 6 months | ||||||
11 | after the commencement of the possession of the date upon which | ||||||
12 | any period of limitation fixed by a statute or agreement would | ||||||
13 | otherwise expire on a claim or right of action of the savings | ||||||
14 | bank, or upon which an appeal must be taken or a pleading or | ||||||
15 | other document must be filed by the savings bank in any pending | ||||||
16 | action or proceeding. No judgment, lien, levy, attachment, or | ||||||
17 | other similar legal process shall be enforced upon or satisfied | ||||||
18 | in whole or in part from any asset of the savings bank while it | ||||||
19 | is in the possession of the Secretary, except upon the order of | ||||||
20 | the court referred to in Section 10030 entered in due course | ||||||
21 | pursuant to Section 10090 of this Act. The provisions of this | ||||||
22 | Section shall continue to apply and shall govern | ||||||
23 | notwithstanding the appointment of and the possession by a | ||||||
24 | receiver pursuant to Section 10055 of this Act. |
| |||||||
| |||||||
1 | (205 ILCS 205/10040 new) | ||||||
2 | Sec. 10040. Reorganization. The Secretary, while in | ||||||
3 | possession and control of a savings bank and its assets, after | ||||||
4 | according a hearing to interested parties as he or she may | ||||||
5 | determine and upon the order of the court, may propose a | ||||||
6 | reorganization plan. The reorganization plan shall become | ||||||
7 | effective only (1) when the requirements of Section 10045 are | ||||||
8 | satisfied, and (2) when, after reasonable notice of such | ||||||
9 | reorganization, as the case may require (A) depositors and | ||||||
10 | other creditors of such savings bank representing at least 75% | ||||||
11 | in amount of its total deposits and other liabilities as shown | ||||||
12 | by the books of the savings bank, (B) stockholders owning at | ||||||
13 | least two-thirds of its outstanding capital stock as shown by | ||||||
14 | the books of the savings bank, or (C) both depositors and other | ||||||
15 | creditors representing at least 75% in amount of the total | ||||||
16 | deposits and other liabilities and stockholders owning at least | ||||||
17 | two-thirds of its outstanding capital stock as shown by the | ||||||
18 | books of the savings bank, shall have consented in writing to | ||||||
19 | the plan of reorganization; provided, however, that claims of | ||||||
20 | depositors or other creditors that will be satisfied in full on | ||||||
21 | demand under the provisions of the plan of reorganization shall | ||||||
22 | not be included among the total deposits and other liabilities | ||||||
23 | of the savings bank in determining the 75% required under this | ||||||
24 | Section. When such reorganization becomes effective, all | ||||||
25 | books, records, and assets of the savings bank shall be | ||||||
26 | disposed of in accordance with the provisions of the plan and |
| |||||||
| |||||||
1 | the affairs of the savings bank shall be conducted by its board | ||||||
2 | of directors in the manner provided by the plan and under the | ||||||
3 | conditions, restrictions, and limitations prescribed by the | ||||||
4 | Secretary. In any reorganization approved and effective as | ||||||
5 | provided in this Section, all depositors and other creditors | ||||||
6 | and stockholders of the savings bank, whether or not they shall | ||||||
7 | have consented to the plan of reorganization, shall be fully | ||||||
8 | and in all respects subject to and bound by its provisions, and | ||||||
9 | claims of all depositors and other creditors shall be treated | ||||||
10 | as if they have consented to the plan of reorganization. A | ||||||
11 | department, agency, or political subdivision of this State | ||||||
12 | holding a claim that will not be paid in full is authorized to | ||||||
13 | participate in a plan of reorganization as any other creditor | ||||||
14 | and shall be subject to and bound by its provisions as any | ||||||
15 | other creditor. | ||||||
16 | (205 ILCS 205/10045 new) | ||||||
17 | Sec. 10045. Requirements of reorganization plan. A plan of | ||||||
18 | reorganization for a savings bank shall not be proposed under | ||||||
19 | this Act unless all of the following are met: | ||||||
20 | (1) the plan is feasible and fair to all classes of | ||||||
21 | depositors, creditors and stockholders; | ||||||
22 | (2) the face amount of the interest accorded to any | ||||||
23 | class of depositors, creditors and stockholders under the | ||||||
24 | plan does not exceed the value of the assets upon | ||||||
25 | liquidation less the full amount of the claims of all prior |
| |||||||
| |||||||
1 | classes, subject, however, to any fair adjustment for new | ||||||
2 | capital that any class will pay in under the plan; | ||||||
3 | (3) the plan assures the removal of any director, | ||||||
4 | officer, or employee responsible for any unsound or | ||||||
5 | unlawful action or the existence of an unsound condition; | ||||||
6 | (4) any merger or consolidation provided by the plan | ||||||
7 | conforms to the requirements of this Act; and | ||||||
8 | (5) any reorganized savings bank provided by the plan | ||||||
9 | conforms to the requirements of this Act for the | ||||||
10 | organization of a savings bank. | ||||||
11 | (205 ILCS 205/10050 new) | ||||||
12 | Sec. 10050. Reorganization; emergency. Whenever, in the | ||||||
13 | course of reorganization, supervening conditions render the | ||||||
14 | plan of reorganization unfair or its execution impractical, the | ||||||
15 | Secretary may modify the plan, provided the modification is | ||||||
16 | with the written consent of the depositors and other creditors | ||||||
17 | representing at least 75% in amount of the total deposits and | ||||||
18 | other liabilities which are impaired or lessened by the | ||||||
19 | modification, or may, provided the Federal Deposit Insurance | ||||||
20 | has not been appointed, appoint a receiver for liquidation as | ||||||
21 | provided in this Act. | ||||||
22 | (205 ILCS 205/10055 new) | ||||||
23 | Sec. 10055. Appointment of receiver; court proceeding. | ||||||
24 | (a) If the Secretary determines, which determination may be |
| |||||||
| |||||||
1 | made at the time of or any time subsequent to his or her taking | ||||||
2 | possession and control of a savings bank and its assets, that | ||||||
3 | no practical possibility exists to reorganize the savings bank | ||||||
4 | after reasonable efforts have been made and that it should be | ||||||
5 | liquidated through receivership, then the Secretary shall | ||||||
6 | appoint a receiver and require of the receiver the bond and | ||||||
7 | security as the Secretary deems proper, and the Secretary, | ||||||
8 | represented by the Attorney General, shall, if the Federal | ||||||
9 | Deposit Insurance Corporation is not acting as receiver, file a | ||||||
10 | complaint for the dissolution or winding up of the affairs of | ||||||
11 | the savings bank in the circuit court of the county where such | ||||||
12 | savings bank is located. | ||||||
13 | (b) Unless the Federal Deposit Insurance Corporation is | ||||||
14 | acting as receiver for the savings bank, the Secretary, upon | ||||||
15 | taking possession and control of a savings bank and its assets, | ||||||
16 | may and, if he or she has not previously done so, shall, | ||||||
17 | immediately upon filing a complaint for dissolution, make an | ||||||
18 | examination of the affairs of the trust department of the | ||||||
19 | savings bank or appoint a corporate fiduciary or other suitable | ||||||
20 | person to make the examination as the Secretary's agent. The | ||||||
21 | examination shall be conducted in accordance with and pursuant | ||||||
22 | to the authority granted under Section 5-2 of the Corporate | ||||||
23 | Fiduciary Act, as now or hereafter amended, and the corporate | ||||||
24 | fiduciary or other suitable person conducting the examination | ||||||
25 | shall have and may exercise on behalf of the Secretary all of | ||||||
26 | the powers and authority granted to the Secretary thereunder. |
| |||||||
| |||||||
1 | The report of examination shall, to the extent reasonably | ||||||
2 | possible, identify those governing instruments with specific | ||||||
3 | instructions concerning the appointment of a successor | ||||||
4 | fiduciary. A copy of the report shall be filed in any | ||||||
5 | dissolution proceeding filed by the Secretary. The reasonable | ||||||
6 | fees and necessary expenses of the examining corporate | ||||||
7 | fiduciary or other suitable person, as approved by the | ||||||
8 | Secretary or as recommended by the Secretary and approved by | ||||||
9 | the court if a dissolution proceeding has been filed, shall be | ||||||
10 | borne by the subject savings bank and shall have the same | ||||||
11 | priority for payment as the reasonable and necessary expenses | ||||||
12 | of the Secretary in conducting an examination. | ||||||
13 | As soon as reasonably can be done, the Secretary, if he or | ||||||
14 | she deems it advisable, shall seek the advice and instruction | ||||||
15 | of the court concerning the removal of the corporate fiduciary | ||||||
16 | as to all of its fiduciary accounts and the appointment of a | ||||||
17 | successor fiduciary, which may be the examining corporate | ||||||
18 | fiduciary, to take over and administer all of the fiduciary | ||||||
19 | accounts being administered by the trust department of the | ||||||
20 | savings bank. The corporate fiduciary or other suitable person | ||||||
21 | appointed to make the examination shall make a proper | ||||||
22 | accounting, in the manner and scope as determined by the | ||||||
23 | Secretary to be practical and advisable under the | ||||||
24 | circumstances, on behalf of the trust department of the savings | ||||||
25 | bank and no guardian ad litem need be appointed to review the | ||||||
26 | accounting. |
| |||||||
| |||||||
1 | (205 ILCS 205/10060 new) | ||||||
2 | Sec. 10060. Notice of receivership. Upon appointing a | ||||||
3 | receiver, other than the Federal Deposit Insurance | ||||||
4 | Corporation, and upon the filing of a complaint for the | ||||||
5 | dissolution or winding up of the affairs of a savings bank, the | ||||||
6 | Secretary shall cause notice to be given in such newspaper as | ||||||
7 | he or she directs once each week for twelve consecutive weeks | ||||||
8 | calling on all persons who may have claims against such savings | ||||||
9 | bank to present the same to the receiver and to make legal | ||||||
10 | proof thereof and notifying all such persons and all to whom it | ||||||
11 | may concern of the filing of a complaint for the dissolution or | ||||||
12 | winding up of the affairs of the savings bank and stating the | ||||||
13 | name and location of said court. All persons who may have | ||||||
14 | claims against such savings bank and the receiver to whom the | ||||||
15 | persons have presented their claims may present them to the | ||||||
16 | clerk of the court, and the allowance or disallowance of the | ||||||
17 | claims by the court in connection with such proceedings shall | ||||||
18 | be deemed an adjudication in a court of competent jurisdiction. | ||||||
19 | (205 ILCS 205/10065 new) | ||||||
20 | Sec. 10065. Receiver's powers; duties. Other than the | ||||||
21 | Federal Deposit Insurance Corporation, which shall derive its | ||||||
22 | powers and perform its duties pursuant to the Federal Deposit | ||||||
23 | Insurance Act and regulations promulgated thereunder, the | ||||||
24 | receiver for a savings bank, under the direction of the |
| |||||||
| |||||||
1 | Secretary, shall have the power and authority and is charged | ||||||
2 | with the duties and responsibilities as follows: | ||||||
3 | (1) He or she shall take possession of and, for the | ||||||
4 | purpose of the receivership, the title to the books, | ||||||
5 | records, and assets of every description of the savings | ||||||
6 | bank. | ||||||
7 | (2) He or she shall proceed to collect all debts, dues | ||||||
8 | and claims belonging to the savings bank. | ||||||
9 | (3) He or she shall file with the Secretary a copy of | ||||||
10 | each report that he or she makes to the court, together | ||||||
11 | with such other reports and records as the Secretary may | ||||||
12 | require. | ||||||
13 | (4) He or she shall have authority to sue and defend in | ||||||
14 | his or her own name with respect to the affairs, assets, | ||||||
15 | claims, debts, and choses in action of the savings bank. | ||||||
16 | (5) He or she shall have authority, and it shall be his | ||||||
17 | or her duty, to surrender to the customers of such savings | ||||||
18 | bank their private papers and valuables left with the | ||||||
19 | savings bank for safekeeping, upon satisfactory proof of | ||||||
20 | ownership. | ||||||
21 | (6) He or she shall have authority to redeem or take | ||||||
22 | down collateral hypothecated by the savings bank to secure | ||||||
23 | its notes or other evidence of indebtedness whenever the | ||||||
24 | Secretary deems it to the best interest of the creditors of | ||||||
25 | the savings bank to do so. | ||||||
26 | (7) Whenever he or she finds it necessary in his or her |
| |||||||
| |||||||
1 | opinion to use and employ money of the savings bank, in | ||||||
2 | order to protect fully and benefit the savings bank, by the | ||||||
3 | purchase or redemption of any property, real or personal, | ||||||
4 | in which the savings bank may have any rights by reason of | ||||||
5 | any bond, mortgage, assignment, or other claim thereto, he | ||||||
6 | or she may certify the facts together with his or her | ||||||
7 | opinions as to the value of the property involved, and the | ||||||
8 | value of the equity the savings bank may have in the | ||||||
9 | property to the Secretary, together with a request for the | ||||||
10 | right and authority to use and employ so much of the money | ||||||
11 | of the savings bank as may be necessary to purchase the | ||||||
12 | property, or to redeem the same from a sale if there was a | ||||||
13 | sale, and if the request is granted, the receiver may use | ||||||
14 | so much of the money of the savings bank as the Secretary | ||||||
15 | may have authorized to purchase the property at such sale. | ||||||
16 | (8) He or she shall deposit daily all monies collected | ||||||
17 | by him or her in any savings bank selected by the | ||||||
18 | Secretary, who may require of (and the savings bank so | ||||||
19 | selected may furnish) such depository satisfactory | ||||||
20 | securities or satisfactory surety bond for the safekeeping | ||||||
21 | and prompt payment of the money so deposited. The deposits | ||||||
22 | shall be made in the name of the Secretary in trust for the | ||||||
23 | savings bank and be subject to withdrawal upon his or her | ||||||
24 | order or upon the order of such persons as the Secretary | ||||||
25 | may designate. Such monies may be deposited without | ||||||
26 | interest, unless otherwise agreed. However, if any |
| |||||||
| |||||||
1 | interest was paid by such depository, it shall accrue to | ||||||
2 | the benefit of the particular trust to which the deposit | ||||||
3 | belongs. | ||||||
4 | (9) He or she shall do things and take such steps from | ||||||
5 | time to time under the direction and approval of the | ||||||
6 | Secretary as may reasonably appear to be necessary to | ||||||
7 | conserve the savings bank's assets and secure the best | ||||||
8 | interests of the creditors of the savings bank. | ||||||
9 | (10) He or she shall record any judgment of dissolution | ||||||
10 | entered in a dissolution proceeding and thereupon deliver | ||||||
11 | to the Secretary a certified copy thereof, together with | ||||||
12 | all books of accounts and ledgers of the savings bank for | ||||||
13 | preservation. | ||||||
14 | (205 ILCS 205/10070 new) | ||||||
15 | Sec. 10070. Receiver's powers; court directions. Upon the | ||||||
16 | order of the court wherein the Secretary's complaint for the | ||||||
17 | dissolution or winding up of the affairs of the savings bank | ||||||
18 | was filed, the receiver for the savings bank shall have the | ||||||
19 | power and authority and is charged with the duties and | ||||||
20 | responsibilities as follows: | ||||||
21 | (1) He or she may sell and compound all bad and | ||||||
22 | doubtful debts on terms as the court shall direct. | ||||||
23 | (2) He or she may sell the real and personal property | ||||||
24 | of the savings bank on such terms as the court shall | ||||||
25 | direct. |
| |||||||
| |||||||
1 | (3) He or she may petition the court for the authority | ||||||
2 | to borrow money, and to pledge the assets of the savings | ||||||
3 | bank as security therefor, whereupon the practice and | ||||||
4 | procedure shall be as follows: | ||||||
5 | (A) Upon the filing of the petition, the court | ||||||
6 | shall set a date for the hearing of the petition and | ||||||
7 | shall prescribe the form and manner of the notice to be | ||||||
8 | given to the officers, stockholders, creditors, or | ||||||
9 | other persons interested in such savings bank. | ||||||
10 | (B) Upon such hearing, any officer, stockholder, | ||||||
11 | creditor, or person interested shall have the right to | ||||||
12 | be heard. | ||||||
13 | (C) If the court grants such authority, then the | ||||||
14 | receiver may borrow money and issue evidences of | ||||||
15 | indebtedness therefor and may secure the payment of | ||||||
16 | such loan by the mortgage, pledge, transfer in trust, | ||||||
17 | or hypothecation of any or all property and assets of | ||||||
18 | such savings bank, whether real, personal, or mixed, | ||||||
19 | superior to any charge thereon for the expenses of | ||||||
20 | liquidation. | ||||||
21 | (D) The loan may be obtained in such amounts upon | ||||||
22 | such terms and conditions, and with provisions for | ||||||
23 | repayment as may be deemed necessary or expedient. | ||||||
24 | (E) The loan may be obtained for the purpose of | ||||||
25 | facilitating liquidation, protecting or preserving the | ||||||
26 | assets, expediting the making of distributions to |
| |||||||
| |||||||
1 | depositors and other creditors, providing for the | ||||||
2 | expenses of administration and liquidation, and aiding | ||||||
3 | in the reopening or reorganization of such savings bank | ||||||
4 | or its merger or consolidation with another savings | ||||||
5 | bank, or in the sale of its assets. | ||||||
6 | (F) The receiver shall be under no personal | ||||||
7 | obligation to repay any such loan and shall have | ||||||
8 | authority to take any action necessary or proper to | ||||||
9 | consummate such loan and to provide for the repayment | ||||||
10 | thereof, and may, when required, give bond for the | ||||||
11 | faithful performance of all undertakings in connection | ||||||
12 | therewith. | ||||||
13 | (G) Prior to petitioning the court for authority to | ||||||
14 | make any such loan, the receiver may make application | ||||||
15 | for or negotiate any loan subject to obtaining an order | ||||||
16 | of the court approving the same. | ||||||
17 | (4) He or she may make and carry out agreements with | ||||||
18 | other savings banks or with the United States or any agency | ||||||
19 | thereof that has insured the savings bank's deposits, in | ||||||
20 | whole or in part, for the payment or assumption of the | ||||||
21 | savings bank's liabilities, in whole or in part, and he or | ||||||
22 | she may transfer assets and make guaranties in connection | ||||||
23 | therewith. | ||||||
24 | (5) After the expiration of 12 weeks after the first | ||||||
25 | publication of the Secretary's notice as provided in | ||||||
26 | Section 10060, he or she shall file with the court a |
| |||||||
| |||||||
1 | correct list of all creditors of the savings bank, as shown | ||||||
2 | by its books, who have not presented their claims and the | ||||||
3 | amount of their respective claims after allowing all just | ||||||
4 | credits, deductions and set-offs as shown by the books of | ||||||
5 | the savings bank. Claims that are filed shall be deemed | ||||||
6 | proven, unless objections are filed thereto by a party or | ||||||
7 | parties interested therein within such time as is fixed by | ||||||
8 | the court. | ||||||
9 | (6) At the termination of his or her administration, he | ||||||
10 | or she shall petition the court for the entry of a judgment | ||||||
11 | of dissolution. After a hearing upon such notice as the | ||||||
12 | court may prescribe, the court may enter a judgment of | ||||||
13 | dissolution whereupon the savings bank's charter is | ||||||
14 | terminated.
The provisions of this Section do not apply to | ||||||
15 | the Federal Deposit Insurance Corporation as receiver, | ||||||
16 | which shall derive its powers and perform its duties | ||||||
17 | pursuant to the Federal Deposit Insurance Act. | ||||||
18 | (205 ILCS 205/10075 new) | ||||||
19 | Sec. 10075. Change of receiver. At any time after a | ||||||
20 | receiver, other than the Federal Deposit Insurance | ||||||
21 | Corporation, is appointed by the Secretary, whenever | ||||||
22 | two-thirds of the creditors of a savings bank petition the | ||||||
23 | Secretary for the appointment of any person nominated by them | ||||||
24 | as receiver, who is a reputable person and a resident of the | ||||||
25 | county in which such savings bank is located, it shall be the |
| |||||||
| |||||||
1 | duty of the Secretary to make such appointment and all rights | ||||||
2 | and duties of his or her predecessor shall at once devolve upon | ||||||
3 | such appointee. The Secretary may remove any receiver appointed | ||||||
4 | by him or her, except the Federal Deposit Insurance Corporation | ||||||
5 | or such receiver as shall have been appointed through | ||||||
6 | nomination by the creditors. Such a receiver may be removed by | ||||||
7 | the court upon a petition for his or her removal filed by the | ||||||
8 | Secretary after hearing had upon such notice as the court may | ||||||
9 | prescribe. Upon the death, inability to act, resignation, or | ||||||
10 | removal of a receiver the Secretary may appoint his or her | ||||||
11 | successor and, upon the appointment, all rights and duties of | ||||||
12 | his or her predecessor shall at once devolve upon such | ||||||
13 | appointee. | ||||||
14 | (205 ILCS 205/10080 new) | ||||||
15 | Sec. 10080. Insured deposits; subrogation. The right of an | ||||||
16 | agency of the United States insuring deposits to be subrogated | ||||||
17 | to the rights of depositors upon payment of their claim shall | ||||||
18 | not be less extensive than the law of the United States | ||||||
19 | requires as a condition of the authority to issue such | ||||||
20 | insurance or make such payment. | ||||||
21 | (205 ILCS 205/10085 new) | ||||||
22 | Sec. 10085. Expenses and fees. All expenses of a | ||||||
23 | receivership, including reasonable receiver's and attorney's | ||||||
24 | fees approved by the Secretary shall be paid out of the assets |
| |||||||
| |||||||
1 | of the savings bank. All expenses of any preliminary or other | ||||||
2 | examination into the condition of any such savings bank or | ||||||
3 | receivership and all expenses incident to and in connection | ||||||
4 | with the possession and control of the bank and its assets for | ||||||
5 | the purpose of examination, reorganization, or liquidation | ||||||
6 | through receivership shall be paid out of the assets of the | ||||||
7 | savings bank. The payment authorized under this Section may be | ||||||
8 | made by the Secretary with moneys and property of the bank in | ||||||
9 | his or her possession and control and shall have priority over | ||||||
10 | all claims. | ||||||
11 | (205 ILCS 205/10090 new) | ||||||
12 | Sec. 10090. Dividends; dissolution. From time to time | ||||||
13 | during a receivership other than a receivership conducted by | ||||||
14 | the Federal Deposit Insurance Corporation, the Secretary shall | ||||||
15 | make and pay from moneys of the savings bank a ratable dividend | ||||||
16 | on all claims as may be proved to his or her satisfaction or | ||||||
17 | adjudicated by the court. Claims so proven or adjudicated shall | ||||||
18 | bear interest at the rate of 3% per annum from the date of the | ||||||
19 | appointment of the receiver to the date of payment, but all | ||||||
20 | dividends on a claim shall be applied first to principal. In | ||||||
21 | computing the amount of any dividend to be paid, if the | ||||||
22 | Secretary deems it desirable in the interests of economy of | ||||||
23 | administration and to the interest of the savings bank and its | ||||||
24 | creditors, he or she may pay up to the amount of $10 of each | ||||||
25 | claim or unpaid portion thereof in full. As the proceeds of the |
| |||||||
| |||||||
1 | assets of the savings bank are collected in the course of | ||||||
2 | liquidation, the Secretary shall make and pay further dividends | ||||||
3 | on all claims previously proven or adjudicated. After one year | ||||||
4 | from the entry of a judgment of dissolution, all unclaimed | ||||||
5 | dividends shall be remitted to the State Treasurer in | ||||||
6 | accordance with the Uniform Disposition of Unclaimed Property | ||||||
7 | Act, as now or hereafter amended, together with a list of all | ||||||
8 | unpaid claimants, their last known addresses and the amounts | ||||||
9 | unpaid. | ||||||
10 | (205 ILCS 205/10095 new) | ||||||
11 | Sec. 10095. Validation of dividends; destruction of | ||||||
12 | records. In all cases where the Secretary, prior to this | ||||||
13 | Section taking effect, has made ratable dividends of money on | ||||||
14 | claims that have been proven to the satisfaction of the | ||||||
15 | Secretary or adjudicated in any court of this State, such | ||||||
16 | dividends are hereby ratified and confirmed and made valid and | ||||||
17 | legal in all respects. All records of receiverships heretofore | ||||||
18 | and hereafter received by the Secretary or by a receiver | ||||||
19 | appointed by the Secretary shall be held by the Secretary or | ||||||
20 | the receiver for the period of 2 years after the close of the | ||||||
21 | receivership and, at the termination of the 2-year period, may | ||||||
22 | then be destroyed. | ||||||
23 | (205 ILCS 205/10100 new) | ||||||
24 | Sec. 10100. Judicial review. Whenever the Secretary shall |
| |||||||
| |||||||
1 | have taken possession and control of a savings bank and its | ||||||
2 | assets for the purpose of examination, reorganization, or | ||||||
3 | liquidation through receivership, or whenever the Secretary | ||||||
4 | shall have appointed a receiver for a savings bank, other than | ||||||
5 | the Federal Deposit Insurance Corporation, and filed a | ||||||
6 | complaint for the dissolution or for the winding up of the | ||||||
7 | affairs of a savings bank, and the savings bank denies the | ||||||
8 | grounds for such actions, it may, at any time within 10 days, | ||||||
9 | apply to the Circuit Court of Sangamon County, Illinois, to | ||||||
10 | enjoin further proceedings in the premises; and such court | ||||||
11 | shall cite the Secretary to show cause why further proceedings | ||||||
12 | should not be enjoined, and if the court shall find that the | ||||||
13 | grounds do not exist, the court shall make an order enjoining | ||||||
14 | the Secretary and any receiver acting under his or her | ||||||
15 | direction from all further proceedings on account of such | ||||||
16 | alleged grounds, provided that neither the 10 days allowed by | ||||||
17 | this Section 10100 for judicial review nor the pendency of any | ||||||
18 | proceedings for judicial review shall operate to defer, delay, | ||||||
19 | impede, or prevent the payment or acquisition by the Federal | ||||||
20 | Deposit Insurance Corporation of the deposit liabilities of the | ||||||
21 | savings bank that are insured by the Federal Deposit Insurance | ||||||
22 | Corporation, and during the period allowed for judicial review | ||||||
23 | and during the pendency of any proceedings for judicial review | ||||||
24 | under this Section 10100, the Secretary or, as the case may be, | ||||||
25 | the receiver shall make available to the Federal Deposit | ||||||
26 | Insurance Corporation such facilities in or of the savings bank |
| |||||||
| |||||||
1 | and the books, records, and other relevant data of the savings | ||||||
2 | bank as may be necessary or appropriate to enable the Federal | ||||||
3 | Deposit Insurance Corporation to pay out or to acquire the | ||||||
4 | insured deposit liabilities of the savings bank, and said | ||||||
5 | Federal Deposit Insurance Corporation and its directors, | ||||||
6 | officers, agents, and employees, and the Secretary and his | ||||||
7 | agents and employees, including the receiver, if any, shall be | ||||||
8 | free from any liability to the savings bank and its | ||||||
9 | stockholders and creditors for or on account of any matter or | ||||||
10 | thing in this proviso referred to or provided for.
| ||||||
11 | (205 ILCS 205/11006) (from Ch. 17, par. 7311-6)
| ||||||
12 | Sec. 11006. Civil penalties. The Commissioner, in addition | ||||||
13 | to any
other powers granted in this Act, shall have the power | ||||||
14 | and authority to:
| ||||||
15 | (1) Impose civil penalties of up to $100,000 $10,000 | ||||||
16 | against any person for
each violation of any provision of | ||||||
17 | this Act, any rule promulgated in
accordance with this Act, | ||||||
18 | any order of the Commissioner, or any other
action that in | ||||||
19 | the Commissioner's discretion, is an unsafe or unsound
| ||||||
20 | banking practice.
| ||||||
21 | (2) Impose civil penalties of up to $100 against any | ||||||
22 | person for the
first failure to comply with reporting | ||||||
23 | requirements set forth in the report
of examination of the | ||||||
24 | bank and up to $200 for the second and subsequent
failures | ||||||
25 | to comply with those reporting requirements.
|
| |||||||
| |||||||
1 | (Source: P.A. 86-1213.)
| ||||||
2 | Section 35. The Pawnbroker Regulation Act is amended by | ||||||
3 | changing Sections 0.05 and 1 and by adding Sections 5.5 and 12 | ||||||
4 | as follows:
| ||||||
5 | (205 ILCS 510/0.05)
| ||||||
6 | Sec. 0.05. Administration of Act.
| ||||||
7 | (a) This Act shall be administered by the
Commissioner of | ||||||
8 | Banks and Real Estate , except that beginning on the effective | ||||||
9 | date of this amendatory Act of the 96th General Assembly, all | ||||||
10 | references in this Act to the Commissioner of Banks and Real | ||||||
11 | Estate are deemed, in appropriate contexts, to be references to | ||||||
12 | the Secretary of Financial and Professional Regulation, who | ||||||
13 | shall have all of the following
powers and duties in | ||||||
14 | administering this Act:
| ||||||
15 | (1) To promulgate reasonable rules for the purpose of | ||||||
16 | administering the
provisions of this Act.
| ||||||
17 | (2) To issue orders for the purpose of administering | ||||||
18 | the provisions of
this
Act and any rule promulgated in | ||||||
19 | accordance with this Act.
| ||||||
20 | (2.5) To order restitution to consumers suffering | ||||||
21 | damages resulting from violations of this Act, rules | ||||||
22 | promulgated in accordance with this Act, or other laws or | ||||||
23 | regulations related to the operation of a pawnshop.
| ||||||
24 | (3) To appoint hearing officers and to hire employees |
| |||||||
| |||||||
1 | or to contract with
appropriate persons to execute any of | ||||||
2 | the powers granted to
the Commissioner under this Section | ||||||
3 | for the purpose of administering this
Act and any rule | ||||||
4 | promulgated in accordance with this Act.
| ||||||
5 | (4) To subpoena witnesses, to compel their attendance, | ||||||
6 | to administer an
oath, to examine any person under oath, | ||||||
7 | and to require the production of any
relevant books, | ||||||
8 | papers, accounts, and documents in the course of and | ||||||
9 | pursuant
to any investigation being conducted, or any | ||||||
10 | action being taken, by the
Commissioner in respect of any | ||||||
11 | matter relating to the duties imposed upon, or
the powers | ||||||
12 | vested in, the Commissioner under the provisions of this | ||||||
13 | Act or any
rule promulgated in accordance with this Act.
| ||||||
14 | (5) To conduct hearings.
| ||||||
15 | (6) To impose civil penalties graduated up to $1,000 | ||||||
16 | against any person
for each
violation of any provision of | ||||||
17 | this Act, any rule promulgated in
accordance
with this Act, | ||||||
18 | or any order of the Commissioner
based upon the seriousness | ||||||
19 | of the violation.
| ||||||
20 | (6.5) To initiate, through the Attorney General, | ||||||
21 | injunction proceedings
whenever it appears to the | ||||||
22 | Commissioner that any person, whether licensed under
this | ||||||
23 | Act or not, is engaged or about to engage in an act or | ||||||
24 | practice that
constitutes or will constitute a violation of | ||||||
25 | this Act or any rule prescribed
under the authority of this | ||||||
26 | Act. The Commissioner may, in his or her
discretion, |
| |||||||
| |||||||
1 | through the Attorney General, apply for an injunction, and | ||||||
2 | upon a
proper showing, any circuit court may enter a | ||||||
3 | permanent or preliminary
injunction or a temporary | ||||||
4 | restraining order without bond to enforce this Act in
| ||||||
5 | addition to the penalties and other remedies provided for | ||||||
6 | in this Act.
| ||||||
7 | (7) To issue a cease and desist order and, for | ||||||
8 | violations of
this Act, any order issued by the | ||||||
9 | Commissioner pursuant to this Act, any
rule promulgated in | ||||||
10 | accordance with this Act,
or any other applicable law in | ||||||
11 | connection with the operation of a pawnshop,
to suspend a | ||||||
12 | license issued under this Act for up to 30 days.
| ||||||
13 | (8) To determine
compliance with applicable law and | ||||||
14 | rules related to the operation of pawnshops
and to verify | ||||||
15 | the accuracy of reports filed with the Commissioner, the
| ||||||
16 | Commissioner, not more than one time every 2 years, may, | ||||||
17 | but is not required
to, conduct a routine examination of a | ||||||
18 | pawnshop, and in
addition, the Commissioner may examine the | ||||||
19 | affairs of any pawnshop at any time if the Commissioner
has
| ||||||
20 | reasonable cause to believe that unlawful or fraudulent | ||||||
21 | activity is occurring,
or has occurred, therein.
| ||||||
22 | (9) In response to a complaint, to address any | ||||||
23 | inquiries to any pawnshop
in relation to its affairs, and | ||||||
24 | it shall be the duty of the pawnshop to
promptly reply in | ||||||
25 | writing to such inquiries. The Commissioner may also | ||||||
26 | require
reports or information from any pawnshop at any |
| |||||||
| |||||||
1 | time the Commissioner may deem
desirable.
| ||||||
2 | (10) To revoke a license issued under this Act if the | ||||||
3 | Commissioner
determines that (a) a licensee has been | ||||||
4 | convicted of a felony in connection
with the operations of | ||||||
5 | a pawnshop; (b) a licensee knowingly, recklessly, or
| ||||||
6 | continuously violated this Act or State or federal law or | ||||||
7 | regulation , a rule promulgated in
accordance with this Act, | ||||||
8 | or any order of the Commissioner; (c) a fact or
condition | ||||||
9 | exists that, if it had existed or had been known at the | ||||||
10 | time of the
original application, would have justified | ||||||
11 | license refusal; or (d) the licensee
knowingly submits | ||||||
12 | materially false or misleading documents with the intent to
| ||||||
13 | deceive the Commissioner or any other party ; or (e) the | ||||||
14 | licensee is unable or ceases to continue to operate the | ||||||
15 | pawnshop .
| ||||||
16 | (10.2) To remove or prohibit the employment of any | ||||||
17 | officer, director, employee, or agent of the pawnshop who | ||||||
18 | engages in or has engaged in unlawful activities that | ||||||
19 | relate to the operation of a pawnshop. | ||||||
20 | (10.7) To prohibit the hiring of employees who have | ||||||
21 | been convicted of a financial crime or any crime involving | ||||||
22 | breach of trust who do not meet exceptions as established | ||||||
23 | by rule of the Secretary.
| ||||||
24 | (11) Following license revocation, to take possession | ||||||
25 | and control of a
pawnshop for the purpose of examination, | ||||||
26 | reorganization, or liquidation through
receivership and to |
| |||||||
| |||||||
1 | appoint a receiver, which may be the Commissioner, a
| ||||||
2 | pawnshop, or
another suitable person.
| ||||||
3 | (b) After consultation with local law enforcement | ||||||
4 | officers, the Attorney
General, and the industry, the | ||||||
5 | Commissioner may by rule require that
pawnbrokers
operate video | ||||||
6 | camera surveillance systems to record photographic
| ||||||
7 | representations of customers and retain the tapes produced for | ||||||
8 | up to 30 days.
| ||||||
9 | (c) Pursuant to rule, the Commissioner shall issue licenses | ||||||
10 | on an annual or
multi-year basis for operating a
pawnshop. Any | ||||||
11 | person currently operating or
who has operated a pawnshop in | ||||||
12 | this State during the 2 years preceding the
effective date of | ||||||
13 | this amendatory Act of 1997 shall be issued a license upon
| ||||||
14 | payment of the fee required under this Act. New applicants | ||||||
15 | shall meet
standards for a license as established by the | ||||||
16 | Commissioner.
Except with the prior written consent of the | ||||||
17 | Commissioner, no individual,
either a new applicant or a person | ||||||
18 | currently operating a pawnshop, may be
issued a license to | ||||||
19 | operate a pawnshop if the individual has been convicted
of a | ||||||
20 | felony or of any criminal offense relating to dishonesty or | ||||||
21 | breach of
trust in connection with the operations of a | ||||||
22 | pawnshop.
The Commissioner shall
establish license fees. The | ||||||
23 | fees shall not exceed the amount reasonably
required for | ||||||
24 | administration of this Act. It shall be unlawful to operate a
| ||||||
25 | pawnshop without a license issued by the Commissioner.
| ||||||
26 | (d) In addition to license fees, the Commissioner may, by |
| |||||||
| |||||||
1 | rule, establish
fees in connection with a review, approval, or | ||||||
2 | provision of a service, and levy
a reasonable charge to recover | ||||||
3 | the cost of the review, approval, or service
(such as a change | ||||||
4 | in control, change in location, or renewal of a license).
The | ||||||
5 | Commissioner may also levy a reasonable charge to recover the | ||||||
6 | cost of an
examination if the Commissioner determines that | ||||||
7 | unlawful or fraudulent activity
has occurred. The Commissioner | ||||||
8 | may require payment of the fees and charges
provided in this | ||||||
9 | Act by certified check, money order, an electronic transfer of
| ||||||
10 | funds, or an automatic debit of an account.
| ||||||
11 | (e) The Pawnbroker Regulation Fund is established as a | ||||||
12 | special
fund in the State treasury. Moneys collected under this | ||||||
13 | Act shall be deposited
into the Fund and used for the | ||||||
14 | administration of this Act.
In the event that General Revenue | ||||||
15 | Funds are appropriated to the Office of the
Commissioner of | ||||||
16 | Banks and Real Estate for the initial implementation of this
| ||||||
17 | Act, the Governor may direct the repayment from the Pawnbroker | ||||||
18 | Regulation
Fund to the General Revenue Fund of such advance in | ||||||
19 | an amount not to exceed
$30,000. The Governor may direct this | ||||||
20 | interfund transfer at such time as he
deems appropriate by | ||||||
21 | giving appropriate written notice. Moneys in the Pawnbroker | ||||||
22 | Regulation Fund may be transferred to the Professions Indirect | ||||||
23 | Cost Fund, as authorized under Section 2105-300 of the | ||||||
24 | Department of Professional Regulation Law of the Civil | ||||||
25 | Administrative Code of Illinois.
| ||||||
26 | (f) The Commissioner may, by rule, require all pawnshops to |
| |||||||
| |||||||
1 | provide for
the expenses that would arise from the | ||||||
2 | administration of the receivership of a
pawnshop under this Act | ||||||
3 | through the assessment of fees, the requirement to
pledge | ||||||
4 | surety bonds, or such other methods as determined by the | ||||||
5 | Commissioner.
| ||||||
6 | (g) All final administrative decisions of the Commissioner | ||||||
7 | under
this Act shall be subject to judicial review pursuant to | ||||||
8 | the provisions of the
Administrative Review Law. For matters | ||||||
9 | involving administrative review, venue
shall be in
either | ||||||
10 | Sangamon County or Cook County.
| ||||||
11 | (Source: P.A. 94-91, eff. 7-1-05.)
| ||||||
12 | (205 ILCS 510/1) (from Ch. 17, par. 4651)
| ||||||
13 | Sec. 1.
(a) Every individual or business entity which lends | ||||||
14 | money on the
deposit or pledge of physically delivered personal | ||||||
15 | property, other than
property the ownership of which is subject | ||||||
16 | to a legal dispute, securities,
printed evidence of | ||||||
17 | indebtedness or printed evidence of ownership of the
personal | ||||||
18 | property, or who deals in the purchase of such property on the
| ||||||
19 | condition of selling the property back again at a stipulated | ||||||
20 | price, shall be
held and is hereby
declared and defined to be a | ||||||
21 | pawnbroker. The business of a pawnbroker does
not include the | ||||||
22 | lending of money on deposit or pledge of title to property. | ||||||
23 | (b) The Secretary may require employees of pawnshops who | ||||||
24 | have the authority to act in a managerial capacity to obtain a | ||||||
25 | license from the Department. For the purposes of this Section, |
| |||||||
| |||||||
1 | "managerial capacity" shall mean the ability to direct the | ||||||
2 | operations or activities of the pawnshop. If the Secretary | ||||||
3 | determines a pawnshop employee's duties and responsibilities | ||||||
4 | or other factors amount to acting in a managerial capacity, the | ||||||
5 | Secretary may require licensing. The license shall be valid for | ||||||
6 | 2 years. The Secretary may by rule specify the form of the | ||||||
7 | application for licensure, fees to be imposed and conditions | ||||||
8 | for licensure. The licensed employees shall report their places | ||||||
9 | of employment to the Secretary.
| ||||||
10 | (Source: P.A. 90-602, eff. 7-1-98.)
| ||||||
11 | (205 ILCS 510/5.5 new) | ||||||
12 | Sec. 5.5. Replacement of articles or property; insurance. | ||||||
13 | In the event that any articles or property pledged are
lost or | ||||||
14 | rendered inoperable, the pawnbroker shall replace the
articles | ||||||
15 | or property with identical articles or property,
except that if | ||||||
16 | the pawnbroker cannot reasonably obtain
identical articles or | ||||||
17 | property, the pawnbroker shall replace
the articles or property | ||||||
18 | with like articles or property. | ||||||
19 | No pawnbroker shall conduct business in this State, unless | ||||||
20 | the
pawnbroker maintains insurance coverage covering all | ||||||
21 | hazards equal to at least 2
times the aggregate value of the | ||||||
22 | outstanding loans for
items held in pawn. Such insurance shall | ||||||
23 | be obtained from an insurance company authorized to do business | ||||||
24 | in Illinois. | ||||||
25 | The pawnbroker shall file a copy of proof of insurance
|
| |||||||
| |||||||
1 | coverage with the Secretary. A pawnbroker or an insurance | ||||||
2 | company shall not cancel the
insurance coverage except upon | ||||||
3 | notice to the
Secretary by certified mail, return receipt | ||||||
4 | requested. The cancellation is not effective prior to 30 days | ||||||
5 | after the
Secretary receives the notice. | ||||||
6 | (205 ILCS 510/12 new) | ||||||
7 | Sec. 12. Hold order. | ||||||
8 | (a) For the purposes of this Section, "hold order" means a | ||||||
9 | written legal instrument issued to a pawnbroker by a law | ||||||
10 | enforcement officer commissioned by the law enforcement agency | ||||||
11 | of the municipality or county that licenses and regulates the | ||||||
12 | pawnbroker, ordering the pawnbroker to retain physical | ||||||
13 | possession of pledged goods in the possession of the pawnbroker | ||||||
14 | or property purchased by and in the possession of the | ||||||
15 | pawnbroker and not to return, sell, or otherwise dispose of | ||||||
16 | such property as such property is believed to be | ||||||
17 | misappropriated goods. | ||||||
18 | (b) Upon written notice from a law enforcement officer | ||||||
19 | indicating that property in the possession of a pawnbroker and | ||||||
20 | subject to a hold order is needed for the purpose of furthering | ||||||
21 | a criminal investigation and prosecution, the pawnbroker shall | ||||||
22 | release the property subject to the hold order to the custody | ||||||
23 | of the law enforcement officer for such purpose and the officer | ||||||
24 | shall provide a written acknowledgment that the property has | ||||||
25 | been released to the officer. The release of the property to |
| |||||||
| |||||||
1 | the custody of the law enforcement officer shall not be | ||||||
2 | considered a waiver or release of the pawnbroker's property | ||||||
3 | rights or interest in the property. Upon completion of the | ||||||
4 | criminal investigation, the property shall be returned to the | ||||||
5 | pawnbroker who consented to its release; except that, if the | ||||||
6 | law enforcement officer has not completed the criminal | ||||||
7 | investigation within 120 days after its release, the officer | ||||||
8 | shall immediately return the property to the pawnbroker or | ||||||
9 | obtain and furnish to the pawnbroker a warrant for the | ||||||
10 | continued custody of the property. | ||||||
11 | The pawnbroker shall not release or dispose of the property | ||||||
12 | except pursuant to a court order or the expiration of the | ||||||
13 | holding period of the hold order, including all extensions. | ||||||
14 | In cases where criminal charges have been filed and the | ||||||
15 | property may be needed as evidence, the prosecuting attorney | ||||||
16 | shall notify the pawnbroker in writing. The notice shall | ||||||
17 | contain the case number, the style of the case, and a | ||||||
18 | description of the property. The pawnbroker shall hold such | ||||||
19 | property until receiving notice of the disposition of the case | ||||||
20 | from the prosecuting attorney. The prosecuting attorney shall | ||||||
21 | notify the pawnbroker and claimant in writing within 15 days | ||||||
22 | after the disposition of the case. | ||||||
23 | Section 40. The Banking Emergencies Act is amended by | ||||||
24 | changing Sections 1 and 2 as follows:
|
| |||||||
| |||||||
1 | (205 ILCS 610/1) (from Ch. 17, par. 1001)
| ||||||
2 | Sec. 1. Definitions. As used in this Act, unless the | ||||||
3 | context
otherwise requires:
| ||||||
4 | (1) "Commissioner" means the officer of this State | ||||||
5 | designated by law to
exercise supervision over banks and trust | ||||||
6 | companies, and any other person
lawfully exercising such | ||||||
7 | powers , except that beginning on the effective date of this | ||||||
8 | amendatory Act of the 96th General Assembly, all references in | ||||||
9 | this Act to the Commissioner of Banks and Real Estate are | ||||||
10 | deemed, in appropriate contexts, to be references to the | ||||||
11 | Secretary of Financial and Professional Regulation .
| ||||||
12 | (2) "Bank" includes commercial banks, savings banks, | ||||||
13 | savings and loan associations, trust companies , and any branch
| ||||||
14 | thereof lawfully carrying on the business of banking and, to | ||||||
15 | the extent
that the provisions hereof are not inconsistent with | ||||||
16 | and do not infringe
upon paramount Federal law, also includes | ||||||
17 | national banks and federal savings banks .
| ||||||
18 | (3) "Officers" means the person or persons designated by | ||||||
19 | the board of
directors, to act for the bank in carrying out the | ||||||
20 | provisions of this Act
or, in the absence of any such | ||||||
21 | designation or of the officer or officers so
designated, the | ||||||
22 | president or any other officer currently in charge of the
bank | ||||||
23 | or of the office or offices in question.
| ||||||
24 | (4) "Office" means any place at which a bank transacts its | ||||||
25 | business or
conducts operations related to its business.
| ||||||
26 | (5) "Emergency" means any condition or occurrence which may |
| |||||||
| |||||||
1 | interfere
physically with the conduct of normal business | ||||||
2 | operations at one or more or
all of the offices of a bank, or | ||||||
3 | which poses an imminent or existing threat
to the safety or | ||||||
4 | security of persons or property, or both at one or more or
all | ||||||
5 | of the offices of a bank. Without limiting the generality of | ||||||
6 | the
foregoing, an emergency may arise as a result of any one or | ||||||
7 | more of the
following: natural disasters; civil strife; power | ||||||
8 | failures; computer failures;
interruption of communication | ||||||
9 | facilities; robbery or attempted robbery. | ||||||
10 | (6) "Division" means the Division of Banking within the | ||||||
11 | Department of Financial and Professional Regulation.
| ||||||
12 | (Source: P.A. 92-483, eff. 8-23-01; 92-651, eff. 7-11-02.)
| ||||||
13 | (205 ILCS 610/2) (from Ch. 17, par. 1002)
| ||||||
14 | Sec. 2. Power of Commissioner. | ||||||
15 | (a) Whenever the Commissioner is notified by any officer of | ||||||
16 | a bank or by any
other means becomes aware that an
emergency | ||||||
17 | exists, or is impending, he may, by proclamation, authorize all | ||||||
18 | banks in the State
of Illinois to close or alter the hours at | ||||||
19 | any or all of their offices, or if only a
bank or banks, or | ||||||
20 | offices thereof, in a particular
area or areas of the State of | ||||||
21 | Illinois are affected by the emergency or
impending
emergency, | ||||||
22 | the Commissioner may authorize only the affected bank, banks, | ||||||
23 | or
offices thereof, to close. The office or offices so closed | ||||||
24 | may remain closed
until
the Commissioner declares, by further | ||||||
25 | proclamation, that the emergency or
impending emergency has |
| |||||||
| |||||||
1 | ended. The
Commissioner during an emergency or while an | ||||||
2 | impending emergency exists,
which affects, or may affect, a | ||||||
3 | particular bank or banks, or a particular
office or offices | ||||||
4 | thereof, but not banks located in the area generally of
the | ||||||
5 | said county or municipality, may authorize the particular bank | ||||||
6 | or
banks, or office or offices so affected, to close. The | ||||||
7 | office or offices so
closed shall remain closed until the | ||||||
8 | Commissioner is notified by a bank
officer of the closed bank | ||||||
9 | that the emergency has ended. The Commissioner
shall notify, at | ||||||
10 | such time, the officers of the bank that one or more
offices, | ||||||
11 | heretofore closed because of the emergency, should reopen and, | ||||||
12 | in
either event, for such further time thereafter as may | ||||||
13 | reasonably be
required to reopen.
| ||||||
14 | (b) Whenever the Secretary Commissioner becomes aware that | ||||||
15 | an emergency exists, or is impending, he or she may, by | ||||||
16 | proclamation, waive any requirements to the notices, | ||||||
17 | applications, or reports required to be filed and authorize any | ||||||
18 | bank organized under the laws of this State, of another state, | ||||||
19 | or of the United States, to open and operate offices in this | ||||||
20 | State, notwithstanding any other laws of this State to the | ||||||
21 | contrary. Any office or offices opened in accordance with this | ||||||
22 | subsection may remain open until the Commissioner declares, by | ||||||
23 | further proclamation, that the emergency or impending | ||||||
24 | emergency has ended. The Department of Financial and | ||||||
25 | Professional Regulation may shall adopt rules to implement this | ||||||
26 | subsection (b).
|
| |||||||
| |||||||
1 | (Source: P.A. 95-77, eff. 8-13-07.)
| ||||||
2 | Section 45. The Electronic Fund Transfer Act is amended by | ||||||
3 | changing Section 10 as follows:
| ||||||
4 | (205 ILCS 616/10)
| ||||||
5 | Sec. 10. Definitions. For purposes of this Act, the words | ||||||
6 | and phrases
defined in
this Section shall have the meanings | ||||||
7 | ascribed to them unless the context
requires otherwise. | ||||||
8 | Whenever the terms "network" and "switch" are used, they
shall | ||||||
9 | be deemed interchangeable unless, from the context and facts, | ||||||
10 | the
intention
is plain to apply only to one type of entity.
| ||||||
11 | "Access device" means a card, code, or other means of | ||||||
12 | access to an
account, or any combination thereof, that may be | ||||||
13 | used by a customer to initiate
an electronic fund transfer at a | ||||||
14 | terminal.
| ||||||
15 | "Account" means a demand deposit, savings deposit, share, | ||||||
16 | member, or
other customer asset account held by a financial | ||||||
17 | institution.
| ||||||
18 | An "affiliate" of, or a person "affiliated" with, a | ||||||
19 | specified person,
means a person that directly, or indirectly | ||||||
20 | through one or more intermediaries,
controls, is controlled by, | ||||||
21 | or is under common control with, the person
specified.
| ||||||
22 | "Commissioner" means the Secretary of Financial and | ||||||
23 | Professional Regulation Commissioner of Banks and Real Estate | ||||||
24 | or a person
authorized by the Secretary Commissioner , the |
| |||||||
| |||||||
1 | Division of Banking Office of Banks and Real Estate Act, or
| ||||||
2 | this Act to act in the Secretary's Commissioner's stead.
| ||||||
3 | "Division" means the Division of Banking within the | ||||||
4 | Department of Financial and Professional Regulation. | ||||||
5 | "Electronic fund transfer" means a transfer of funds, other
| ||||||
6 | than a transaction originated by check, draft, or similar paper | ||||||
7 | instrument,
that is initiated through a terminal for the | ||||||
8 | purpose of ordering, instructing,
or authorizing a financial | ||||||
9 | institution to debit or credit an account.
| ||||||
10 | "Financial institution" means a bank established under the
| ||||||
11 | laws of this or any other state or established under the laws | ||||||
12 | of the United
States, a savings and loan association or savings | ||||||
13 | bank established under the
laws of this or any other state or | ||||||
14 | established under the laws of the United
States, a credit union | ||||||
15 | established under the laws of this or any other state or
| ||||||
16 | established under the laws of the United States, or a licensee | ||||||
17 | under the
Consumer Installment Loan Act or the Sales Finance | ||||||
18 | Agency Act.
| ||||||
19 | "Interchange transaction" means an electronic fund | ||||||
20 | transfer
that results in exchange of data and settlement of | ||||||
21 | funds between 2 or more
unaffiliated financial institutions.
| ||||||
22 | "Network" means an electronic information communication | ||||||
23 | and
processing system that processes interchange transactions.
| ||||||
24 | "Person" means a natural person, corporation, unit of | ||||||
25 | government or
governmental subdivision or agency, trust, | ||||||
26 | estate, partnership, cooperative, or
association.
|
| |||||||
| |||||||
1 | "Seller of goods and services" means a business entity | ||||||
2 | other than a
financial institution.
| ||||||
3 | "Switch" means an electronic information and communication | ||||||
4 | processing
facility that processes interchange transactions on | ||||||
5 | behalf of a network. This
term does not include an electronic | ||||||
6 | information and communication processing
company (1) that is | ||||||
7 | owned by a
bank holding company or an affiliate of a bank | ||||||
8 | holding company and used solely
for transmissions among | ||||||
9 | affiliates of the bank holding company or (2) to the
extent | ||||||
10 | that the facility, by virtue of a contractual relationship, is | ||||||
11 | used
solely for transmissions among affiliates of a bank | ||||||
12 | holding company, regardless
of whether the facility is an | ||||||
13 | affiliate of the bank holding company or operates
as a switch | ||||||
14 | with respect to one or more networks under an independent
| ||||||
15 | contractual relationship.
| ||||||
16 | "Terminal" means an electronic device through which a | ||||||
17 | consumer may
initiate an interchange transaction. This term | ||||||
18 | does not include (1) a
telephone, (2) an electronic device | ||||||
19 | located in a personal residence, (3) a
personal computer or | ||||||
20 | other electronic device used primarily for personal,
family, or | ||||||
21 | household purposes, (4) an electronic device owned or operated | ||||||
22 | by a
seller of goods and services unless the device is | ||||||
23 | connected either directly or
indirectly to a financial | ||||||
24 | institution and is operated in a manner that provides
access to | ||||||
25 | an account by means of a personal and confidential code or | ||||||
26 | other
security mechanism (other than signature), (5) an |
| |||||||
| |||||||
1 | electronic device that is not
accessible to persons other than | ||||||
2 | employees of a financial institution or
affiliate of a | ||||||
3 | financial institution, or (6) an electronic device that is
| ||||||
4 | established by a financial institution on a proprietary basis | ||||||
5 | that is
identified as such and that cannot be accessed by | ||||||
6 | customers of other financial
institutions. The Commissioner | ||||||
7 | may issue a written rule that excludes
additional electronic | ||||||
8 | devices from the definition of the term "terminal".
| ||||||
9 | (Source: P.A. 89-310, eff. 1-1-96; 89-508, eff. 7-3-96.)
| ||||||
10 | Section 50. The Corporate Fiduciary Act is amended by | ||||||
11 | changing Sections 1-5.03, 5-1, and 5-10 and by adding Section | ||||||
12 | 1-5.075 as follows:
| ||||||
13 | (205 ILCS 620/1-5.03) (from Ch. 17, par. 1551-5.03)
| ||||||
14 | Sec. 1-5.03.
"Commissioner" means the Secretary of | ||||||
15 | Financial and Professional Regulation Commissioner of Banks | ||||||
16 | and Real
Estate or a person authorized by the Secretary | ||||||
17 | Commissioner , the Division of Banking Office of Banks and Real
| ||||||
18 | Estate Act, or this Act to act in the Secretary's | ||||||
19 | Commissioner's stead.
| ||||||
20 | (Source: P.A. 89-508, eff. 7-3-96.)
| ||||||
21 | (205 ILCS 620/1-5.075 new) | ||||||
22 | Sec. 1-5.075. Division. "Division" means the Division of | ||||||
23 | Banking within the Department of Financial and Professional |
| |||||||
| |||||||
1 | Regulation.
| ||||||
2 | (205 ILCS 620/5-1) (from Ch. 17, par. 1555-1)
| ||||||
3 | Sec. 5-1. Commissioner's powers. The Commissioner of Banks | ||||||
4 | and Real
Estate shall have the following powers and
authority | ||||||
5 | and is charged with the duties and responsibilities
designated | ||||||
6 | in this Act:
| ||||||
7 | (a) To promulgate, in accordance with the Illinois | ||||||
8 | Administrative Procedure
Act, reasonable rules for the purpose | ||||||
9 | of administering the provisions of this
Act and for the purpose | ||||||
10 | of incorporating by reference rules promulgated by the
Federal | ||||||
11 | Deposit Insurance Corporation, the Board of Governors of the | ||||||
12 | Federal
Reserve System, the Office of the Comptroller of the | ||||||
13 | Currency, the
Office of Thrift Supervision, or their successors | ||||||
14 | that pertain to corporate
fiduciaries, including, but not | ||||||
15 | limited to, standards for the operation and
conduct of the | ||||||
16 | affairs of corporate fiduciaries;
| ||||||
17 | (b) To issue orders for the purpose of administering the
| ||||||
18 | provisions of this Act and any rule promulgated in accordance
| ||||||
19 | with this Act;
| ||||||
20 | (c) To appoint hearing officers to conduct hearings held
| ||||||
21 | pursuant to any of the powers granted to the Commissioner under
| ||||||
22 | this Section for the purpose of administering this Act and any
| ||||||
23 | rule promulgated in accordance with this Act;
| ||||||
24 | (d) To subpoena witnesses, to compel their attendance, to
| ||||||
25 | administer an oath, to examine any person under oath and to
|
| |||||||
| |||||||
1 | require the production of any relevant books, papers, accounts
| ||||||
2 | and documents in the course of and pursuant to any | ||||||
3 | investigation
being conducted, or any action being taken, by | ||||||
4 | the Commissioner
in respect of any matter relating to the | ||||||
5 | duties imposed upon, or
the powers vested in, the Commissioner | ||||||
6 | under the provisions of
this Act, or any rule or regulation | ||||||
7 | promulgated in accordance
with this Act;
| ||||||
8 | (e) To conduct hearings;
| ||||||
9 | (f) To promulgate the form and content of any applications | ||||||
10 | required
under this Act;
| ||||||
11 | (g) To impose civil penalties of up to $100,000 $10,000 | ||||||
12 | against any
person or corporate fiduciary for each violation of | ||||||
13 | any provision
of this Act, any rule promulgated in accordance | ||||||
14 | with this Act,
any order of the Commissioner or any other | ||||||
15 | action which, in the
Commissioner's discretion, is a detriment | ||||||
16 | or impediment to
accepting or executing trusts; and
| ||||||
17 | (h) To address any inquiries to any corporate fiduciary, or
| ||||||
18 | the officers thereof, in relation to its doings and conditions,
| ||||||
19 | or any other matter connected with its affairs, and it shall be
| ||||||
20 | the duty of any corporate fiduciary or person so addressed, to
| ||||||
21 | promptly reply in writing to such inquiries. The Commissioner
| ||||||
22 | may also require reports from any corporate fiduciary at any | ||||||
23 | time
he may deem desirable.
| ||||||
24 | (Source: P.A. 89-364, eff. 8-18-95; 89-508, eff. 7-3-96.)
| ||||||
25 | (205 ILCS 620/5-10) (from Ch. 17, par. 1555-10)
|
| |||||||
| |||||||
1 | Sec. 5-10. Fees; receivership account.
| ||||||
2 | (a) There shall be paid to the Commissioner by every | ||||||
3 | corporate
fiduciary including each trust company, bank, | ||||||
4 | savings and loan association,
and savings bank to which this | ||||||
5 | Act
shall apply, reasonable
fees that the Commissioner shall | ||||||
6 | assess to recover the costs of administration,
certification, | ||||||
7 | examination and supervision of trusts
authorized under this | ||||||
8 | Act.
| ||||||
9 | (b) In addition to the fees authorized in
subsection (a) of | ||||||
10 | this
Section the Commissioner shall assess reasonable | ||||||
11 | receivership fees and
establish a Non-insured Institutions | ||||||
12 | Receivership Corporate Fiduciary Receivership account in the | ||||||
13 | Bank
and Trust Company Fund to provide for the expenses that | ||||||
14 | arise from the
administration of the receivership of a | ||||||
15 | corporate fiduciary under this Act.
The aggregate of such | ||||||
16 | assessments shall be paid into the Non-insured Institutions | ||||||
17 | Receivership Corporate
Fiduciary Receivership
account in the | ||||||
18 | Bank and Trust Company Fund. The assessments for this
account | ||||||
19 | shall be levied until the sum of $4,000,000 has been
deposited | ||||||
20 | into
the account from assessments authorized herein, whereupon | ||||||
21 | the Non-insured Institutions Receivership Corporate
Fiduciary | ||||||
22 | Receivership
account assessment shall be abated. If a | ||||||
23 | receivership of a corporate
fiduciary under this Act requires | ||||||
24 | expenditures from this account,
assessments may be | ||||||
25 | reinstituted until the balance in the Non-insured Institutions | ||||||
26 | Receivership Corporate
Fiduciary Receivership
account arising |
| |||||||
| |||||||
1 | from assessments is restored to $4,000,000.
| ||||||
2 | (c) The Commissioner
may, by rule, establish a reasonable | ||||||
3 | manner of assessing the receivership
assessments under this | ||||||
4 | Section.
| ||||||
5 | (Source: P.A. 92-485, eff. 8-23-01.)
| ||||||
6 | Section 55. The Residential Mortgage License Act of 1987 is | ||||||
7 | amended by changing Section 4-2 as follows:
| ||||||
8 | (205 ILCS 635/4-2) (from Ch. 17, par. 2324-2)
| ||||||
9 | Sec. 4-2. Examination; prohibited activities.
| ||||||
10 | (a) The business affairs of a licensee under this Act shall | ||||||
11 | be examined
for compliance with this Act as often as the | ||||||
12 | Commissioner deems necessary and
proper. The Commissioner | ||||||
13 | shall promulgate rules with respect to the frequency
and manner | ||||||
14 | of examination. The Commissioner shall appoint a suitable | ||||||
15 | person
to perform such
examination. The Commissioner and his | ||||||
16 | appointees may examine the
entire
books, records, documents, | ||||||
17 | and operations of each licensee and its subsidiary, affiliate, | ||||||
18 | or agent, and may examine
any of the licensee's or its | ||||||
19 | subsidiary's, affiliate's, or agent's officers, directors, | ||||||
20 | employees and agents under oath. For purposes of this Section, | ||||||
21 | "agent" includes service providers such as accountants, | ||||||
22 | closing services providers, providers of outsourced services | ||||||
23 | such as call centers, marketing consultants, and loan | ||||||
24 | processors, even if exempt from licensure under this Act. This |
| |||||||
| |||||||
1 | Section does not apply to an attorney's privileged work product | ||||||
2 | or communications.
| ||||||
3 | (b) The Commissioner shall prepare a
sufficiently
detailed
| ||||||
4 | report of each
licensee's examination, shall issue a copy of | ||||||
5 | such report to each
licensee's principals, officers, or | ||||||
6 | directors and shall take appropriate
steps to ensure correction | ||||||
7 | of violations of this Act.
| ||||||
8 | (c) Affiliates of a licensee shall be subject to | ||||||
9 | examination by the
Commissioner on the same terms as the | ||||||
10 | licensee, but only when reports
from, or examination of a | ||||||
11 | licensee provides for documented evidence of
unlawful activity | ||||||
12 | between a licensee and affiliate benefiting, affecting or
| ||||||
13 | deriving from the activities regulated by this Act.
| ||||||
14 | (d) The expenses of any examination of the licensee and | ||||||
15 | affiliates shall
be borne by the licensee and assessed by the | ||||||
16 | Commissioner as established
by regulation.
| ||||||
17 | (e) Upon completion of the examination, the Commissioner | ||||||
18 | shall issue a
report to the licensee. All confidential | ||||||
19 | supervisory information, including the examination report
and | ||||||
20 | the work papers
of the report, shall belong to the | ||||||
21 | Commissioner's office and may not be
disclosed to anyone other | ||||||
22 | than the licensee, law enforcement officials or other
| ||||||
23 | regulatory agencies that have an appropriate regulatory | ||||||
24 | interest as determined by the Commissioner, or to a party | ||||||
25 | presenting a lawful subpoena to the Office of the
Commissioner. | ||||||
26 | The Commissioner may immediately appeal to the court of |
| |||||||
| |||||||
1 | jurisdiction the disclosure of such confidential supervisory | ||||||
2 | information and seek a stay of the subpoena pending the outcome | ||||||
3 | of the appeal. Reports required of licensees by the | ||||||
4 | Commissioner under this Act
and results of examinations | ||||||
5 | performed by the Commissioner under this Act shall
be the | ||||||
6 | property of only the Commissioner, but may be shared with the | ||||||
7 | licensee. Access under this
Act to the books and records of | ||||||
8 | each licensee shall be limited to the
Commissioner and his | ||||||
9 | agents as provided in this Act and to the licensee and its
| ||||||
10 | authorized agents and designees. No other person shall have | ||||||
11 | access to the
books and records of a licensee under this Act. | ||||||
12 | Any person upon whom a demand for production of confidential | ||||||
13 | supervisory information is made, whether by subpoena, order, or | ||||||
14 | other judicial or administrative process, must withhold | ||||||
15 | production of the confidential supervisory information and | ||||||
16 | must notify the Commissioner of the demand, at which time the | ||||||
17 | Commissioner is authorized to intervene for the purpose of | ||||||
18 | enforcing the limitations of this Section or seeking the | ||||||
19 | withdrawal or termination of the attempt to compel production | ||||||
20 | of the confidential supervisory information. The Commissioner | ||||||
21 | may impose any conditions and limitations on the disclosure of | ||||||
22 | confidential supervisory information that are necessary to | ||||||
23 | protect the confidentiality of such information. Except as | ||||||
24 | authorized by the Commissioner, no person obtaining access to | ||||||
25 | confidential supervisory information may make a copy of the | ||||||
26 | confidential supervisory information. The Commissioner may |
| |||||||
| |||||||
1 | condition a decision to disclose confidential supervisory | ||||||
2 | information on entry of a protective order by the court or | ||||||
3 | administrative tribunal presiding in the particular case or on | ||||||
4 | a written agreement of confidentiality. In a case in which a | ||||||
5 | protective order or agreement has already been entered between | ||||||
6 | parties other than the Commissioner, the Commissioner may | ||||||
7 | nevertheless condition approval for release of confidential | ||||||
8 | supervisory information upon the inclusion of additional or | ||||||
9 | amended provisions in the protective order. The Commissioner | ||||||
10 | may authorize a party who obtained the records for use in one | ||||||
11 | case to provide them to another party in another case, subject | ||||||
12 | to any conditions that the Commissioner may impose on either or | ||||||
13 | both parties. The requestor shall promptly notify other parties | ||||||
14 | to a case of the release of confidential supervisory | ||||||
15 | information obtained and, upon entry of a protective order, | ||||||
16 | shall provide copies of confidential supervisory information | ||||||
17 | to the other parties.
| ||||||
18 | (f) The Commissioner, deputy commissioners, and employees
| ||||||
19 | of the Office of Banks and Real Estate shall be subject to the | ||||||
20 | restrictions
provided in Section 2.5 of the Division of Banking | ||||||
21 | Office of Banks and Real Estate Act including,
without | ||||||
22 | limitation, the restrictions on (i) owning shares of stock or | ||||||
23 | holding
any other equity interest in an entity regulated under | ||||||
24 | this Act or in any
corporation or company that owns or controls | ||||||
25 | an entity regulated under this
Act; (ii) being an officer, | ||||||
26 | director, employee, or agent of an entity regulated
under this |
| |||||||
| |||||||
1 | Act; and (iii) obtaining a loan or accepting a gratuity from an
| ||||||
2 | entity regulated under this Act.
| ||||||
3 | (g) After the initial examination for those licensees whose | ||||||
4 | only mortgage
activity is servicing fewer than 1,000 Illinois | ||||||
5 | residential loans,
the
examination required in subsection (a) | ||||||
6 | may be waived upon submission of a
letter from the licensee's | ||||||
7 | independent certified auditor that the licensee
serviced fewer | ||||||
8 | than 1,000 Illinois residential loans during the
year
in which | ||||||
9 | the
audit was performed.
| ||||||
10 | (Source: P.A. 96-112, eff. 7-31-09.)
| ||||||
11 | Section 60. The Foreign Banking Office Act is amended by | ||||||
12 | changing Sections 2.01 and 17 and by adding Section 2.08 as | ||||||
13 | follows:
| ||||||
14 | (205 ILCS 645/2.01) (from Ch. 17, par. 2703)
| ||||||
15 | Sec. 2.01.
"Commissioner" means the Secretary of Financial | ||||||
16 | and Professional Regulation Commissioner of Banks and Real | ||||||
17 | Estate
or a person authorized by the Secretary Commissioner , | ||||||
18 | the Division of Banking Office of Banks and Real Estate
Act, or | ||||||
19 | this Act to act in the Secretary's Commissioner's stead.
| ||||||
20 | (Source: P.A. 89-508, eff. 7-3-96.)
| ||||||
21 | (205 ILCS 645/2.08 new) | ||||||
22 | Sec. 2.08. Division. "Division" means the Division of | ||||||
23 | Banking within the Department of Financial and Professional |
| |||||||
| |||||||
1 | Regulation.
| ||||||
2 | (205 ILCS 645/17) (from Ch. 17, par. 2724)
| ||||||
3 | Sec. 17. Fees; examination ; receivership . Upon applying | ||||||
4 | for a certificate of
authority to open and maintain a
banking | ||||||
5 | office, a foreign
banking corporation shall pay to the | ||||||
6 | Commissioner an application fee
equivalent to the reasonable | ||||||
7 | expenses of examination for a charter payable
by a State bank | ||||||
8 | under Section 13 of the Illinois Banking Act.
| ||||||
9 | In addition, a foreign banking corporation holding a | ||||||
10 | certificate of
authority and maintaining a banking office shall | ||||||
11 | be subject to examination and
other fees (comparable to
those | ||||||
12 | payable by a State bank) imposed by the Commissioner pursuant | ||||||
13 | to
Section 48 of the Illinois Banking Act based on the assets | ||||||
14 | of such foreign
banking corporation located in the State of | ||||||
15 | Illinois.
| ||||||
16 | (b) In addition to the fees authorized in subsection (a) of | ||||||
17 | this Section, the Secretary shall assess reasonable | ||||||
18 | receivership fees and establish a Non-insured Institutions | ||||||
19 | Receivership account in the Bank and Trust Company Fund to | ||||||
20 | provide for the expenses that arise from the administration of | ||||||
21 | the receivership of a foreign banking corporation under this | ||||||
22 | Act. The aggregate of such assessments shall be paid into the | ||||||
23 | Non-insured Institutions Receivership account in the Bank and | ||||||
24 | Trust Company Fund. The assessments for this account shall be | ||||||
25 | levied until the sum of $4,000,000 has been deposited into the |
| |||||||
| |||||||
1 | account from assessments authorized herein, whereupon the | ||||||
2 | Non-insured Institutions Receivership account assessment shall | ||||||
3 | be abated. If a receivership of a non-insured institution under | ||||||
4 | this Act requires expenditures from this account, then | ||||||
5 | assessments may be reinstituted until the balance in the | ||||||
6 | Non-insured Institutions Receivership account arising from | ||||||
7 | assessments is restored to $4,000,000. | ||||||
8 | (c) The Secretary may by rule establish a reasonable manner | ||||||
9 | of assessing the receivership assessments under this Section. | ||||||
10 | (Source: P.A. 88-271; 89-208, eff. 6-1-97.)
| ||||||
11 | Section 65. The Foreign Bank Representative Office Act is | ||||||
12 | amended by changing Section 2 as follows:
| ||||||
13 | (205 ILCS 650/2) (from Ch. 17, par. 2852)
| ||||||
14 | Sec. 2. Definitions. As used in this Act, unless the | ||||||
15 | context requires
otherwise:
| ||||||
16 | (a) "Commissioner" means the Secretary of Financial and | ||||||
17 | Professional Regulation Commissioner of Banks and Real Estate | ||||||
18 | or a
person authorized by the Secretary Commissioner , the | ||||||
19 | Division of Banking Office of Banks and Real Estate Act,
or | ||||||
20 | this Act to act in the Secretary's Commissioner's stead.
| ||||||
21 | (b) "Foreign bank" means (1) a bank or trust company which | ||||||
22 | is organized
under the laws of any state or territory of the | ||||||
23 | United States, including the
District of Columbia, other than | ||||||
24 | the State of Illinois; (2) a national bank
having its principal |
| |||||||
| |||||||
1 | place of business in any state or territory of the United
| ||||||
2 | States, including the District of Columbia, other than the | ||||||
3 | State of Illinois;
or (3) a bank or trust company organized and | ||||||
4 | operating under the laws of a
country other than the United | ||||||
5 | States of America.
| ||||||
6 | (c) "Representative office" means an office in the State of | ||||||
7 | Illinois at
which a foreign bank engages in representational | ||||||
8 | functions
but does not conduct a commercial banking business. | ||||||
9 | (d) "Division" means the Division of Banking within the | ||||||
10 | Department of Financial and Professional Regulation.
| ||||||
11 | (Source: P.A. 89-364, eff. 8-18-95; 89-508, eff. 7-3-96.)
| ||||||
12 | Section 70. The Financial Institution Activity Reporting | ||||||
13 | Act is amended by changing Section 10.25 and by adding Section | ||||||
14 | 10.33 as follows:
| ||||||
15 | (205 ILCS 680/10.25) (from Ch. 17, par. 7401-10.25)
| ||||||
16 | Sec. 10.25. Commissioner. "Commissioner" means the | ||||||
17 | Secretary of Financial and Professional Regulation | ||||||
18 | Commissioner of Banks
and Real Estate or a person authorized by | ||||||
19 | the Secretary Commissioner , the Division of Banking Office of
| ||||||
20 | Banks and Real Estate Act, or this Act to act in the | ||||||
21 | Secretary's Commissioner's stead.
| ||||||
22 | (Source: P.A. 89-508, eff. 7-3-96.)
| ||||||
23 | (205 ILCS 680/10.33 new) |
| |||||||
| |||||||
1 | Sec. 10.33. Division. "Division" means the Division of | ||||||
2 | Banking within the Department of Financial and Professional | ||||||
3 | Regulation. | ||||||
4 | Section 75. The Real Estate Regulation Transfer Act is | ||||||
5 | amended by changing Sections 5, 10, and 15 as follows:
| ||||||
6 | (225 ILCS 456/5)
| ||||||
7 | Sec. 5. Transfer of powers.
| ||||||
8 | (a) On July 1, 1995, All the rights, powers, and duties | ||||||
9 | vested by the
Real Estate License Act of 1983, the Land Sales | ||||||
10 | Registration Act of 1989, and
the Illinois Real Estate | ||||||
11 | Time-Share Act in the Department of Professional
Regulation | ||||||
12 | shall be transferred to the Office of the Commissioner of | ||||||
13 | Savings
and Residential Finance to be hereafter known as the | ||||||
14 | Office of the Commissioner
of Savings, Real Estate Professions, | ||||||
15 | and Mortgage
Finance. Wherever, in the Real Estate License Act | ||||||
16 | of 1983, the Land Sales
Registration Act of 1989, or the | ||||||
17 | Illinois Real Estate Time-Share Act, there is
a reference to | ||||||
18 | the Department of Professional Regulation or to an officer,
| ||||||
19 | employee, or agent of the Illinois Department of Professional | ||||||
20 | Regulation, that
reference, beginning July 1, 1995, means the | ||||||
21 | Office of the Commissioner of
Savings, Real Estate Professions, | ||||||
22 | and Mortgage Finance or an officer, employee,
or agent of the | ||||||
23 | Office of the Commissioner of Savings, Real Estate Professions,
| ||||||
24 | and Mortgage Finance.
|
| |||||||
| |||||||
1 | (b) All books, records, property (real and personal), | ||||||
2 | pending business,
and funds pertaining to the rights, powers, | ||||||
3 | and duties transferred from the
Department of Professional | ||||||
4 | Regulation under this Act and in the custody of the
Department | ||||||
5 | of Professional Regulation on July 1, 1995 shall be delivered | ||||||
6 | and
transferred to the Office of the Commissioner of
Savings, | ||||||
7 | Real Estate Professions, and Mortgage Finance.
All officers and | ||||||
8 | employees of the Department of Professional Regulation on July
| ||||||
9 | 1, 1995 who devoted substantially all of their time to tasks | ||||||
10 | performed in
connection with the Real Estate License Act of | ||||||
11 | 1983, the Land Sales
Registration Act of 1989, or the Illinois | ||||||
12 | Real Estate Time-Share Act shall on
that date become officers | ||||||
13 | and employees of the Office of the
Commissioner of Savings, | ||||||
14 | Real Estate Professions, and Mortgage Finance.
Notwithstanding | ||||||
15 | the
preceding sentence, no rights of State employees under the | ||||||
16 | Personnel Code, the
Illinois Pension Code or any pension, | ||||||
17 | retirement, or annuity plan, or any
collective bargaining | ||||||
18 | agreement or other contract or agreement are affected by
the | ||||||
19 | transfer of rights, powers, and duties under this Act.
| ||||||
20 | (c) The provisions of subsections (a) and (b) of this | ||||||
21 | Section are
superseded by the applicable transfer and savings | ||||||
22 | provisions of the Division of Banking Office of
Banks and Real | ||||||
23 | Estate Act.
| ||||||
24 | (Source: P.A. 89-23, eff. 7-1-95; 89-508, eff. 7-3-96.)
| ||||||
25 | (225 ILCS 456/10)
|
| |||||||
| |||||||
1 | Sec. 10. Savings provisions.
| ||||||
2 | (a) Beginning July 1, 1995, the rights, powers, and duties | ||||||
3 | transferred
by this Act to the Office of the Commissioner of
| ||||||
4 | Savings, Real Estate
Professions, and Mortgage Finance shall be | ||||||
5 | vested in and
shall be exercised by
the Office of the | ||||||
6 | Commissioner of Savings, Real Estate
Professions, and
Mortgage | ||||||
7 | Finance subject to the provisions of this Act. Each act done in
| ||||||
8 | exercise of those rights, powers, and the duties shall have the | ||||||
9 | same legal
effect as if done by the Department of Professional | ||||||
10 | Regulation.
| ||||||
11 | (b) Beginning July 1, 1995, every person, corporation, or | ||||||
12 | other entity shall
be subject to the same obligations and | ||||||
13 | duties and any penalties, civil or
criminal, arising from those | ||||||
14 | obligations and duties, and shall have the same
rights arising | ||||||
15 | from the exercise of rights, powers, and duties by the Office
| ||||||
16 | of the Commissioner of Savings, Real Estate
Professions, and | ||||||
17 | Mortgage Finance
as if those rights, powers, and duties have | ||||||
18 | been exercised by the Department of
Professional Regulation or | ||||||
19 | an officer, employee, or
agent of the Department of | ||||||
20 | Professional Regulation.
| ||||||
21 | (c) Beginning July 1, 1995, every officer and employee of | ||||||
22 | the Office of
the Commissioner of Savings, Real Estate | ||||||
23 | Professions, and
Mortgage Finance shall, for any offense, be | ||||||
24 | subject to the same
penalty or penalties, civil or criminal, as | ||||||
25 | are prescribed by existing law for
the same offense by any | ||||||
26 | officer or employee of the Department of Professional
|
| |||||||
| |||||||
1 | Regulation whose powers or duties were transferred under this | ||||||
2 | Act.
| ||||||
3 | (d) Whenever reports or notices are now required to be made | ||||||
4 | or given or
papers or documents furnished or served by any | ||||||
5 | person to or upon the Department
of Professional Regulation in | ||||||
6 | relation to the powers or duties transferred by
this Act, those | ||||||
7 | reports or notices shall, on and after July
1, 1995, be made, | ||||||
8 | given, furnished, or served in the same manner to or upon the
| ||||||
9 | Office of the Commissioner of Savings, Real
Estate Professions, | ||||||
10 | and Mortgage Finance.
| ||||||
11 | (e) This Act does not affect any act done, ratified, or | ||||||
12 | cancelled, or any
right occurring or established, or any action | ||||||
13 | or proceeding had or commenced in
an administrative, civil, or | ||||||
14 | criminal cause before July 1, 1995, by the
Department of | ||||||
15 | Professional Regulation under the Real Estate License Act of
| ||||||
16 | 1983, the Land Sales Registration Act of 1989, or the Illinois | ||||||
17 | Real Estate
Time-Share Act, and those actions or proceedings | ||||||
18 | may be prosecuted and
continued by the Office of the | ||||||
19 | Commissioner of
Savings, Real Estate Professions, and Mortgage | ||||||
20 | Finance.
| ||||||
21 | (f) This Act does affect any license, certificate, permit, | ||||||
22 | or other form
of licensure or authorization issued by the | ||||||
23 | Department of Professional
Regulation in the exercise of a | ||||||
24 | right, power, or duty that has been transferred
to the Office | ||||||
25 | of the Commissioner of Savings,
Real Estate Professions, and
| ||||||
26 | Mortgage Finance under this Act and all such licenses, |
| |||||||
| |||||||
1 | certificates, permits,
or other form of licensure or | ||||||
2 | authorization shall continue to be valid under
the terms and | ||||||
3 | conditions of the Acts under which they were issued or granted
| ||||||
4 | and shall become those of the Office of the
Commissioner of | ||||||
5 | Savings, Real Estate Professions, and Mortgage Finance.
| ||||||
6 | (g) The rules adopted by the Department of Professional | ||||||
7 | Regulation relating
to the powers and or duties transferred to | ||||||
8 | the Office of
the Commissioner of Savings, Real Estate
| ||||||
9 | Professions, and Mortgage Finance
under this Act are not | ||||||
10 | affected by this Act, except that on July 1, 1995, those
rules | ||||||
11 | become the rules of the Office of the
Commissioner of Savings, | ||||||
12 | Real Estate Professions, and Mortgage Finance.
| ||||||
13 | (h) The provisions of subsections (a) through (g) of this | ||||||
14 | Section are
superseded by the applicable transfer and savings | ||||||
15 | provisions of the Division of Banking Office of
Banks and Real | ||||||
16 | Estate Act.
| ||||||
17 | (Source: P.A. 89-23, eff. 7-1-95; 89-508, eff. 7-3-96.)
| ||||||
18 | (225 ILCS 456/15)
| ||||||
19 | Sec. 15. Transfer of appropriations. Appropriations to the
| ||||||
20 | Department of Professional Regulation from the Real Estate | ||||||
21 | License
Administration Fund and the Real Estate Appraisal | ||||||
22 | Administration Fund for State
fiscal year 1996 for the purpose | ||||||
23 | of administering and enforcing the Real Estate
License Act of | ||||||
24 | 1983, the Land Sales Registration Act of 1989, and the Illinois
| ||||||
25 | Real Estate Time-Share Act shall be transferred to the Office |
| |||||||
| |||||||
1 | of the
Commissioner of Savings, Real Estate Professions, and | ||||||
2 | Mortgage Finance to be
used to conduct those same activities | ||||||
3 | for that fiscal year.
| ||||||
4 | The other provisions of this Section are superseded by the | ||||||
5 | applicable
transfer provisions of the Division of Banking | ||||||
6 | Office of Banks and Real Estate Act.
| ||||||
7 | (Source: P.A. 89-23, eff. 7-1-95; 89-508, eff. 7-3-96.)
| ||||||
8 | (205 ILCS 105/10-2 rep.)
| ||||||
9 | (205 ILCS 105/10-3 rep.)
| ||||||
10 | (205 ILCS 105/10-4 rep.)
| ||||||
11 | (205 ILCS 105/10-5 rep.)
| ||||||
12 | (205 ILCS 105/10-6 rep.)
| ||||||
13 | (205 ILCS 105/10-7 rep.)
| ||||||
14 | Section 90. The Illinois Savings and Loan Act of 1985 is | ||||||
15 | amended by repealing Sections 10-2, 10-3, 10-4, 10-5, 10-6, and | ||||||
16 | 10-7.
| ||||||
17 | (205 ILCS 205/9005 rep.)
| ||||||
18 | (205 ILCS 205/9007 rep.)
| ||||||
19 | (205 ILCS 205/10001 rep.) | ||||||
20 | (205 ILCS 205/10002 rep.) | ||||||
21 | (205 ILCS 205/10003 rep.) | ||||||
22 | (205 ILCS 205/10004 rep.) | ||||||
23 | (205 ILCS 205/10005 rep.) | ||||||
24 | (205 ILCS 205/10006 rep.) |
| |||||||
| |||||||
1 | (205 ILCS 205/10007 rep.) | ||||||
2 | (205 ILCS 205/10008 rep.) | ||||||
3 | Section 95. The Savings Bank Act is amended by repealing | ||||||
4 | Sections 9005, 9007, 10001, 10002, 10003, 10004, 10005, 10006, | ||||||
5 | 10007, and 10008.
| ||||||
6 | (205 ILCS 680/Act rep.)
| ||||||
7 | Section 100. The Financial Institution Activity Reporting | ||||||
8 | Act is repealed.
| ||||||
9 | Section 999. Effective date. This Act takes effect upon | ||||||
10 | becoming law.
|