98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
SB1778

 

Introduced 2/15/2013, by Sen. Michael W. Frerichs

 

SYNOPSIS AS INTRODUCED:
 
See Index

    Amends the Division of Banking Act. Authorizes the Secretary of Financial and Professional Regulation to establish a Commercial Bank Regulatory Section and a Savings Bank Regulatory Section within the Division. Amends the State Finance Act. Changes the name of the Savings and Residential Finance Regulatory Fund to the Residential Finance Regulatory Fund. Provides for expenditures from the Savings Institution Regulatory Fund and the Residential Finance Regulatory Fund related to the disposition of unclaimed property. Amends the Savings Bank Act. Provides that the Secretary may charter mutual and stock holding companies in connection with a mutual savings bank reorganization. Establishes the effect of the repeal of the Illinois Savings and Loan Act of 1985, including the regulation of entities formerly under the Illinois Savings and Loan Act as savings banks under the Savings Bank Act. Changes references from "member or shareholder" to "customer". Changes references from "Commissioner" to "Secretary". Makes changes to provisions concerning articles of incorporation, proxies, directors, access to books and records, regulations, investment in loans, loans to one borrower, mergers, conversion of an existing depository institution to a savings bank, powers of the Secretary, regulatory fees, and disclosure of reports of examinations and confidential supervisory information. Repeals the Illinois Savings and Loan Act of 1985. Makes other changes. Effective immediately.


LRB098 09391 MGM 39532 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB1778LRB098 09391 MGM 39532 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Division of Banking Act is amended by
5changing Section 5 as follows:
 
6    (20 ILCS 3205/5)  (from Ch. 17, par. 455)
7    Sec. 5. Powers. In addition to all the other powers and
8duties provided by law, the Commissioner shall have the
9following powers:
10    (a) To exercise the rights, powers and duties formerly
11vested by law in the Director of Financial Institutions under
12the Illinois Banking Act.
13    (b) To exercise the rights, powers and duties formerly
14vested by law in the Department of Financial Institutions under
15"An act to provide for and regulate the administration of
16trusts by trust companies", approved June 15, 1887, as amended.
17    (c) To exercise the rights, powers and duties formerly
18vested by law in the Director of Financial Institutions under
19"An act authorizing foreign corporations, including banks and
20national banking associations domiciled in other states, to act
21in a fiduciary capacity in this state upon certain conditions
22herein set forth", approved July 13, 1953, as amended.
23    (c-5) To exercise all of the rights, powers, and duties

 

 

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1granted to the Director or Secretary under the Illinois Banking
2Act, the Corporate Fiduciary Act, the Electronic Fund Transfer
3Act, the Illinois Bank Holding Company Act of 1957, the Savings
4Bank Act, the Illinois Savings and Loan Act of 1985, the
5Savings and Loan Share and Account Act, the Residential
6Mortgage License Act of 1987, and the Pawnbroker Regulation
7Act.
8    (c-10) To establish a Commercial Bank Regulatory Section
9and a Savings Bank Regulatory Section within the Division.
10    (c-15) To enter into cooperative agreements with
11appropriate federal and out-of-state state regulatory agencies
12to conduct and otherwise perform any examination of a regulated
13entity as authorized under the Illinois Banking Act, the
14Corporate Fiduciary Act, the Electronic Fund Transfer Act, the
15Illinois Bank Holding Company Act of 1957, the Savings Bank
16Act, the Illinois Savings and Loan Act of 1985, the Residential
17Mortgage License Act of 1987, and the Pawnbroker Regulation
18Act.
19    (d) Whenever the Commissioner is authorized or required by
20law to consider or to make findings regarding the character of
21incorporators, directors, management personnel, or other
22relevant individuals under the Illinois Banking Act, the
23Corporate Fiduciary Act, the Pawnbroker Regulation Act, or at
24other times as the Commissioner deems necessary for the purpose
25of carrying out the Commissioner's statutory powers and
26responsibilities, the Commissioner shall consider criminal

 

 

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1history record information, including nonconviction
2information, pursuant to the Criminal Identification Act. The
3Commissioner shall, in the form and manner required by the
4Department of State Police and the Federal Bureau of
5Investigation, cause to be conducted a criminal history record
6investigation to obtain information currently contained in the
7files of the Department of State Police or the Federal Bureau
8of Investigation, provided that the Commissioner need not cause
9additional criminal history record investigations to be
10conducted on individuals for whom the Commissioner, a federal
11bank regulatory agency, or any other government agency has
12caused such investigations to have been conducted previously
13unless such additional investigations are otherwise required
14by law or unless the Commissioner deems such additional
15investigations to be necessary for the purposes of carrying out
16the Commissioner's statutory powers and responsibilities. The
17Department of State Police shall provide, on the Commissioner's
18request, information concerning criminal charges and their
19disposition currently on file with respect to a relevant
20individual. Information obtained as a result of an
21investigation under this Section shall be used in determining
22eligibility to be an incorporator, director, management
23personnel, or other relevant individual in relation to a
24financial institution or other entity supervised by the
25Commissioner. Upon request and payment of fees in conformance
26with the requirements of Section 2605-400 of the Department of

 

 

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1State Police Law (20 ILCS 2605/2605-400), the Department of
2State Police is authorized to furnish, pursuant to positive
3identification, such information contained in State files as is
4necessary to fulfill the request.
5    (e) When issuing charters, permits, licenses, or other
6authorizations, the Commissioner may impose such terms and
7conditions on the issuance as he deems necessary or
8appropriate. Failure to abide by those terms and conditions may
9result in the revocation of the issuance, the imposition of
10corrective orders, or the imposition of civil money penalties.
11    (f) If the Commissioner has reasonable cause to believe
12that any entity that has not submitted an application for
13authorization or licensure is conducting any activity that
14would otherwise require authorization or licensure by the
15Commissioner, the Commissioner shall have the power to subpoena
16witnesses, to compel their attendance, to require the
17production of any relevant books, papers, accounts, and
18documents, and to conduct an examination of the entity in order
19to determine whether the entity is subject to authorization or
20licensure by the Commissioner or the Division. If the Secretary
21determines that the entity is subject to authorization or
22licensure by the Secretary, then the Secretary shall have the
23power to issue orders against or take any other action,
24including initiating a receivership against the unauthorized
25or unlicensed entity.
26    (g) The Commissioner may, through the Attorney General,

 

 

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1request the circuit court of any county to issue an injunction
2to restrain any person from violating the provisions of any Act
3administered by the Commissioner.
4    (h) Whenever the Commissioner is authorized to take any
5action or required by law to consider or make findings, the
6Commissioner may delegate or appoint, in writing, an officer or
7employee of the Division to take that action or make that
8finding.
9    (i) Whenever the Secretary determines that it is in the
10public's interest, he or she may publish any cease and desist
11order or other enforcement action issued by the Division.
12(Source: P.A. 96-1365, eff. 7-28-10; 97-492, eff. 1-1-12.)
 
13    Section 10. The State Finance Act is amended by changing
14Sections 5.214 and 8.12 as follows:
 
15    (30 ILCS 105/5.214)  (from Ch. 127, par. 141.214)
16    Sec. 5.214. The Savings and Residential Finance Regulatory
17Fund.
18(Source: P.A. 85-1209; 86-1213.)
 
19    (30 ILCS 105/8.12)   (from Ch. 127, par. 144.12)
20    Sec. 8.12. State Pensions Fund.
21    (a) The moneys in the State Pensions Fund shall be used
22exclusively for the administration of the Uniform Disposition
23of Unclaimed Property Act and for the expenses incurred by the

 

 

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1Auditor General for administering the provisions of Section
22-8.1 of the Illinois State Auditing Act and for the funding of
3the unfunded liabilities of the designated retirement systems.
4Beginning in State fiscal year 2014, payments to the designated
5retirement systems under this Section shall be in addition to,
6and not in lieu of, any State contributions required under the
7Illinois Pension Code.
8    "Designated retirement systems" means:
9        (1) the State Employees' Retirement System of
10    Illinois;
11        (2) the Teachers' Retirement System of the State of
12    Illinois;
13        (3) the State Universities Retirement System;
14        (4) the Judges Retirement System of Illinois; and
15        (5) the General Assembly Retirement System.
16    (b) Each year the General Assembly may make appropriations
17from the State Pensions Fund for the administration of the
18Uniform Disposition of Unclaimed Property Act.
19    Each month, the Commissioner of the Office of Banks and
20Real Estate shall certify to the State Treasurer the actual
21expenditures that the Office of Banks and Real Estate incurred
22conducting unclaimed property examinations under the Uniform
23Disposition of Unclaimed Property Act during the immediately
24preceding month. Within a reasonable time following the
25acceptance of such certification by the State Treasurer, the
26State Treasurer shall pay from its appropriation from the State

 

 

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1Pensions Fund to the Bank and Trust Company Fund, the Savings
2Institutions Regulatory Fund, and the Savings and Residential
3Finance Regulatory Fund an amount equal to the expenditures
4incurred by each Fund for that month.
5    Each month, the Director of Financial Institutions shall
6certify to the State Treasurer the actual expenditures that the
7Department of Financial Institutions incurred conducting
8unclaimed property examinations under the Uniform Disposition
9of Unclaimed Property Act during the immediately preceding
10month. Within a reasonable time following the acceptance of
11such certification by the State Treasurer, the State Treasurer
12shall pay from its appropriation from the State Pensions Fund
13to the Financial Institution Institutions Fund and the Credit
14Union Fund an amount equal to the expenditures incurred by each
15Fund for that month.
16    (c) As soon as possible after the effective date of this
17amendatory Act of the 93rd General Assembly, the General
18Assembly shall appropriate from the State Pensions Fund (1) to
19the State Universities Retirement System the amount certified
20under Section 15-165 during the prior year, (2) to the Judges
21Retirement System of Illinois the amount certified under
22Section 18-140 during the prior year, and (3) to the General
23Assembly Retirement System the amount certified under Section
242-134 during the prior year as part of the required State
25contributions to each of those designated retirement systems;
26except that amounts appropriated under this subsection (c) in

 

 

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1State fiscal year 2005 shall not reduce the amount in the State
2Pensions Fund below $5,000,000. If the amount in the State
3Pensions Fund does not exceed the sum of the amounts certified
4in Sections 15-165, 18-140, and 2-134 by at least $5,000,000,
5the amount paid to each designated retirement system under this
6subsection shall be reduced in proportion to the amount
7certified by each of those designated retirement systems.
8    (c-5) For fiscal years 2006 through 2013, the General
9Assembly shall appropriate from the State Pensions Fund to the
10State Universities Retirement System the amount estimated to be
11available during the fiscal year in the State Pensions Fund;
12provided, however, that the amounts appropriated under this
13subsection (c-5) shall not reduce the amount in the State
14Pensions Fund below $5,000,000.
15    (c-6) For fiscal year 2014 and each fiscal year thereafter,
16as soon as may be practical after any money is deposited into
17the State Pensions Fund from the Unclaimed Property Trust Fund,
18the State Treasurer shall apportion the deposited amount among
19the designated retirement systems as defined in subsection (a)
20to reduce their actuarial reserve deficiencies. The State
21Comptroller and State Treasurer shall pay the apportioned
22amounts to the designated retirement systems to fund the
23unfunded liabilities of the designated retirement systems. The
24amount apportioned to each designated retirement system shall
25constitute a portion of the amount estimated to be available
26for appropriation from the State Pensions Fund that is the same

 

 

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1as that retirement system's portion of the total actual reserve
2deficiency of the systems, as determined annually by the
3Governor's Office of Management and Budget at the request of
4the State Treasurer. The amounts apportioned under this
5subsection shall not reduce the amount in the State Pensions
6Fund below $5,000,000.
7    (d) The Governor's Office of Management and Budget shall
8determine the individual and total reserve deficiencies of the
9designated retirement systems. For this purpose, the
10Governor's Office of Management and Budget shall utilize the
11latest available audit and actuarial reports of each of the
12retirement systems and the relevant reports and statistics of
13the Public Employee Pension Fund Division of the Department of
14Insurance.
15    (d-1) As soon as practicable after the effective date of
16this amendatory Act of the 93rd General Assembly, the
17Comptroller shall direct and the Treasurer shall transfer from
18the State Pensions Fund to the General Revenue Fund, as funds
19become available, a sum equal to the amounts that would have
20been paid from the State Pensions Fund to the Teachers'
21Retirement System of the State of Illinois, the State
22Universities Retirement System, the Judges Retirement System
23of Illinois, the General Assembly Retirement System, and the
24State Employees' Retirement System of Illinois after the
25effective date of this amendatory Act during the remainder of
26fiscal year 2004 to the designated retirement systems from the

 

 

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1appropriations provided for in this Section if the transfers
2provided in Section 6z-61 had not occurred. The transfers
3described in this subsection (d-1) are to partially repay the
4General Revenue Fund for the costs associated with the bonds
5used to fund the moneys transferred to the designated
6retirement systems under Section 6z-61.
7    (e) The changes to this Section made by this amendatory Act
8of 1994 shall first apply to distributions from the Fund for
9State fiscal year 1996.
10(Source: P.A. 96-959, eff. 7-1-10; 97-72, eff. 7-1-11; 97-732,
11eff. 6-30-12; revised 10-17-12.)
 
12    Section 15. The Savings Bank Act is amended by changing
13Sections 1007.130, 1007, 2007, 1008, 3003, 4007, 4008, 4010,
144013, 6002, 6013, 6014, 8006, 8012, 9002, 9002.5, 9012, 11001,
15and 11008 and by adding Section 9002.1 and the heading of
16Article 12.1 and Sections 12101, 12102, 12103, 12104, 12105,
1712106, 12107, 12108, 12109, and 12110 and the heading of
18Article 12.2 and Sections 12201, 12202, and 12203 as follows:
 
19    (205 ILCS 205/1007.130)
20    Sec. 1007.130. Out-of-state savings bank. "Out-of-state
21savings bank" means a savings bank or a savings and loan
22association chartered under the laws of a state other than
23Illinois, a territory of the United States, or the District of
24Columbia.

 

 

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1(Source: P.A. 93-965, eff. 8-20-04.)
 
2    (205 ILCS 205/1008)  (from Ch. 17, par. 7301-8)
3    Sec. 1008. General corporate powers.
4    (a) A savings bank operating under this Act shall be a body
5corporate and politic and shall have all of the powers
6conferred by this Act including, but not limited to, the
7following powers:
8        (1) To sue and be sued, complain, and defend in its
9    corporate name and to have a common seal, which it may
10    alter or renew at pleasure.
11        (2) To obtain and maintain insurance by a deposit
12    insurance corporation as defined in this Act.
13        (3) To act as a fiscal agent for the United States, the
14    State of Illinois or any department, branch, arm, or agency
15    of the State or any unit of local government or school
16    district in the State, when duly designated for that
17    purpose, and as agent to perform reasonable functions as
18    may be required of it.
19        (4) To become a member of or deal with any corporation
20    or agency of the United States or the State of Illinois, to
21    the extent that the agency assists in furthering or
22    facilitating its purposes or powers and to that end to
23    purchase stock or securities thereof or deposit money
24    therewith, and to comply with any other conditions of
25    membership or credit.

 

 

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1        (5) To make donations in reasonable amounts for the
2    public welfare or for charitable, scientific, religious,
3    or educational purposes.
4        (6) To adopt and operate reasonable insurance, bonus,
5    profit sharing, and retirement plans for officers and
6    employees and for directors including, but not limited to,
7    advisory, honorary, and emeritus directors, who are not
8    officers or employees.
9        (7) To reject any application for membership; to retire
10    deposit accounts by enforced retirement as provided in this
11    Act and the bylaws; and to limit the issuance of, or
12    payments on, deposit accounts, subject, however, to
13    contractual obligations.
14        (8) To purchase stock or membership interests in
15    service corporations and to invest in any form of
16    indebtedness of any service corporation as defined in this
17    Act, subject to regulations of the Secretary.
18        (9) To purchase stock of a corporation whose principal
19    purpose is to operate a safe deposit company or escrow
20    service company.
21        (10) To exercise all the powers necessary to qualify as
22    a trustee or custodian under federal or State law, provided
23    that the authority to accept and execute trusts is subject
24    to the provisions of the Corporate Fiduciary Act and to the
25    supervision of those activities by the Secretary.
26        (11) (Blank).

 

 

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1        (12) To establish, maintain, and operate terminals as
2    authorized by the Electronic Fund Transfer Act.
3        (13) To pledge its assets:
4            (A) to enable it to act as agent for the sale of
5        obligations of the United States;
6            (B) to secure deposits;
7            (C) to secure deposits of money whenever required
8        by the National Bankruptcy Act;
9            (D) (blank); and
10            (E) to secure trust funds commingled with the
11        savings bank's funds, whether deposited by the savings
12        bank or an affiliate of the savings bank, as required
13        under Section 2-8 of the Corporate Fiduciary Act.
14        (14) To accept for payment at a future date not to
15    exceed one year from the date of acceptance, drafts drawn
16    upon it by its customers; and to issue, advise, or confirm
17    letters of credit authorizing holders thereof to draw
18    drafts upon it or its correspondents.
19        (15) Subject to the regulations of the Secretary, to
20    own and lease personal property acquired by the savings
21    bank at the request of a prospective lessee and, upon the
22    agreement of that person, to lease the personal property.
23        (16) To establish temporary service booths at any
24    International Fair in this State that is approved by the
25    United States Department of Commerce for the duration of
26    the international fair for the purpose of providing a

 

 

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1    convenient place for foreign trade customers to exchange
2    their home countries' currency into United States currency
3    or the converse. To provide temporary periodic service to
4    persons residing in a bona fide nursing home, senior
5    citizens' retirement home, or long-term care facility.
6    These powers shall not be construed as establishing a new
7    place or change of location for the savings bank providing
8    the service booth.
9        (17) To indemnify its officers, directors, employees,
10    and agents, as authorized for corporations under Section
11    8.75 of the Business Corporations Act of 1983.
12        (18) To provide data processing services to others on a
13    for-profit basis.
14        (19) To utilize any electronic technology to provide
15    customers with home banking services.
16        (20) Subject to the regulations of the Secretary, to
17    enter into an agreement to act as a surety.
18        (21) Subject to the regulations of the Secretary, to
19    issue credit cards, extend credit therewith, and otherwise
20    engage in or participate in credit card operations.
21        (22) To purchase for its own account shares of stock of
22    a bankers' bank, described in Section 13(b)(1) of the
23    Illinois Banking Act, on the same terms and conditions as a
24    bank may purchase such shares. In no event shall the total
25    amount of such stock held by a savings bank in such
26    bankers' bank exceed 10% of its capital and surplus

 

 

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1    (including undivided profits) and in no event shall a
2    savings bank acquire more than 5% of any class of voting
3    securities of such bankers' bank.
4        (23) With respect to affiliate facilities:
5            (A) to conduct at affiliate facilities any of the
6        following transactions for and on behalf of any
7        affiliated depository institution, if so authorized by
8        the affiliate or affiliates: receiving deposits;
9        renewing deposits; cashing and issuing checks, drafts,
10        money orders, travelers checks, or similar
11        instruments; changing money; receiving payments on
12        existing indebtedness; and conducting ministerial
13        functions with respect to loan applications, servicing
14        loans, and providing loan account information; and
15            (B) to authorize an affiliated depository
16        institution to conduct for and on behalf of it, any of
17        the transactions listed in this subsection at one or
18        more affiliate facilities.
19        A savings bank intending to conduct or to authorize an
20    affiliated depository institution to conduct at an
21    affiliate facility any of the transactions specified in
22    this subsection shall give written notice to the Secretary
23    at least 30 days before any such transaction is conducted
24    at an affiliate facility. All conduct under this subsection
25    shall be on terms consistent with safe and sound banking
26    practices and applicable law.

 

 

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1        (24) Subject to Article XLIV of the Illinois Insurance
2    Code, to act as the agent for any fire, life, or other
3    insurance company authorized by the State of Illinois, by
4    soliciting and selling insurance and collecting premiums
5    on policies issued by such company; and may receive for
6    services so rendered such fees or commissions as may be
7    agreed upon between the said savings bank and the insurance
8    company for which it may act as agent; provided, however,
9    that no such savings bank shall in any case assume or
10    guarantee the payment of any premium on insurance policies
11    issued through its agency by its principal; and provided
12    further, that the savings bank shall not guarantee the
13    truth of any statement made by an assured in filing his
14    application for insurance.
15        (25) To become a member of the Federal Home Loan Bank
16    and to have the powers granted to a savings association
17    organized under the Illinois Savings and Loan Act of 1985
18    or the laws of the United States, subject to regulations of
19    the Secretary.
20        (26) To offer any product or service that is at the
21    time authorized or permitted to a bank by applicable law,
22    but subject always to the same limitations and restrictions
23    that are applicable to the bank for the product or service
24    by such applicable law and subject to the applicable
25    provisions of the Financial Institutions Insurance Sales
26    Law and rules of the Secretary.

 

 

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1    (b) If this Act or the regulations adopted under this Act
2fail to provide specific guidance in matters of corporate
3governance, the provisions of the Business Corporation Act of
41983 may be used, or if the savings bank is a limited liability
5company, the provisions of the Limited Liability Company shall
6be used.
7    (c) A savings bank may be organized as a limited liability
8company, may convert to a limited liability company, or may
9merge with and into a limited liability company, under the
10applicable laws of this State and of the United States,
11including any rules promulgated thereunder. A savings bank
12organized as a limited liability company shall be subject to
13the provisions of the Limited Liability Company Act in addition
14to this Act, provided that if a provision of the Limited
15Liability Company Act conflicts with a provision of this Act or
16with any rule of the Secretary, the provision of this Act or
17the rule of the Secretary shall apply.
18    Any filing required to be made under the Limited Liability
19Company Act shall be made exclusively with the Secretary, and
20the Secretary shall possess the exclusive authority to regulate
21the savings bank as provided in this Act.
22    Any organization as, conversion to, and merger with or into
23a limited liability company shall be subject to the prior
24approval of the Secretary.
25    A savings bank that is a limited liability company shall be
26subject to all of the provisions of this Act in the same manner

 

 

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1as a savings bank that is organized in stock form.
2    The Secretary may promulgate rules to ensure that a savings
3bank that is a limited liability company (i) is operating in a
4safe and sound manner and (ii) is subject to the Secretary's
5authority in the same manner as a savings bank that is
6organized in stock form.
7(Source: P.A. 97-492, eff. 1-1-12.)
 
8    (205 ILCS 205/2007)  (from Ch. 17, par. 7302-7)
9    Sec. 2007. Reorganization to become a holding company.
10    (a) A savings bank, including a mutual savings bank
11operating under this Act, may reorganize so as to become a
12holding company by:
13        (1) chartering one or more subsidiary savings banks,
14    the ownership of which shall be evidenced by stock shares,
15    to be owned by the chartering parent savings bank; and
16        (2) either of the following:
17            (i) transferring the substantial portion of its
18        assets and all of its insured deposits and part or all
19        of its other liabilities to one or more subsidiary
20        savings banks; or
21            (ii) reorganizing in any other manner as approved
22        by the Secretary.
23    (b) In order to effect reorganization under subsection (a),
24the board of directors of the original savings bank must
25approve a plan providing for the reorganization that shall be

 

 

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1submitted for approval by a majority of the voting members of
2the savings bank. Approval must occur in accordance with the
3savings bank's articles of incorporation and bylaws at a
4meeting called by the board of directors. The Secretary may
5charter mutual and stock holding companies in connection with a
6mutual savings bank reorganization and may promulgate rules to
7regulate the formation of and the ongoing business of the
8subsidiaries and the holding company, including the rights of
9members, levels of investment in holding company subsidiaries,
10and stock sales.
11(Source: P.A. 97-492, eff. 1-1-12.)
 
12    (205 ILCS 205/3003)  (from Ch. 17, par. 7303-3)
13    Sec. 3003. Contents of articles of incorporation.
14    (a) The articles of incorporation shall set forth:
15        (1) The name of the savings bank.
16        (2) The initial location of the business office.
17        (3) The duration of existence, which shall be perpetual
18    unless otherwise specified.
19        (4) The initial number of directors, not less than 5.
20        (5) The authorization, if any, to issue deposit
21    accounts, the aggregate amount of which may be unlimited.
22        (6) The authorization, if any, to issue stock, the
23    aggregate number of shares and the par value per share,
24    which shall not be less than $1.
25        (7) The quorum required for action of members if a

 

 

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1    quorum other than that specified in this Act is desired.
2        (8) Any other provision, not inconsistent with law,
3    which the subscribers or members may desire, for the
4    internal regulation of the affairs of the savings bank.
5    (b) A savings bank may include in its original articles of
6incorporation or amended articles a requirement that proposed
7amendments to the articles of incorporation shall be adopted by
8the affirmative vote of two-thirds of the total number of votes
9entitled to be cast.
10    (c) The articles of incorporation need not set forth any of
11the powers that this Act confers.
12(Source: P.A. 89-74, eff. 6-30-95.)
 
13    (205 ILCS 205/4007)  (from Ch. 17, par. 7304-7)
14    Sec. 4007. Proxies.
15    (a) Voting at a meeting may be either in person or by proxy
16executed in writing by the member or shareholder or by his duly
17authorized attorney-in-fact. The forms and wording of all
18proxies must receive prior approval of the Commissioner.
19    (b) No proxy shall be valid:
20        (1) After 11 months from the date of its execution,
21    unless otherwise provided in the proxy.
22        (2) Unless executed in an instrument separate from
23    other forms or documents relating to the member's accounts.
24        (3) For any meeting at which the member who gave it is
25    present, provided that notice is given by the member in

 

 

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1    writing, prior to the taking of any vote, to an official
2    whom the savings bank shall identify at the meeting as
3    having responsibility for the matter.
4        (4) Unless the member giving the proxy is told by the
5    person to whom it is given that the proxy is optional and
6    that the voting rights it represents can be exercised by
7    the member himself.
8(Source: P.A. 86-1213.)
 
9    (205 ILCS 205/4008)  (from Ch. 17, par. 7304-8)
10    Sec. 4008. Directors. The business and affairs of the
11savings bank shall be exercised by its elected board of
12directors. The board of directors shall consist of the number
13of directors fixed by the bylaws, but shall not be fewer than
145. No more than 40% of the directors shall be salaried
15employees of the savings bank, except that a higher percentage
16may be allowed with the prior written approval of the
17Commissioner. At least two-thirds of the directors shall be
18residents of this State.
19(Source: P.A. 90-301, eff. 8-1-97.)
 
20    (205 ILCS 205/4010)  (from Ch. 17, par. 7304-10)
21    Sec. 4010. Conduct of directors and officers.
22    (a) Directors and officers occupy a fiduciary relationship
23to the savings bank of which they are directors or officers,
24and a director or officer shall not engage or participate,

 

 

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1directly or indirectly, in any business or transaction
2conducted on behalf of or involving the savings bank that would
3result in a conflict of their own personal interests with those
4of the savings bank which they serve, unless: (i) the business
5or transactions are conducted in good faith and are honest,
6fair, and reasonable to the savings bank; (ii) a full
7disclosure of the business or transaction and the nature of the
8director's or officer's interest is made to the board of
9directors; and (iii) the business or transaction is approved in
10good faith by the board of directors with any interested
11director abstaining. The approval of the business or
12transaction shall be recorded in the minutes. Any profits
13inuring to the officer or director shall not be at the expense
14of the savings bank. The business or transaction shall not
15represent a breach of the officer's or director's fiduciary
16duty and shall not be fraudulent or illegal. Notwithstanding
17any other provisions of this Section, the Secretary
18Commissioner may require the disclosure by directors,
19officers, and employees of their personal interest, directly or
20indirectly, in any business or transaction on behalf of or
21involving the savings bank and of their control of or active
22participation in enterprises having activities related to the
23business of the savings bank. The following restrictions
24governing the conduct of directors and officers expressly are
25specified, but that specification does not excuse those persons
26from the observance of any other aspect of the general

 

 

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1fiduciary duty owed by them to the savings bank which they
2serve:
3        (1) An officer or director of a mutual savings bank
4    shall not hold office or status as a director or officer of
5    another mutual savings bank subject to this Act.
6        (2) A director shall receive as remuneration only
7    reasonable fees for services as a director or for service
8    as a member of a committee of directors. A director who is
9    also an officer or employee of the savings bank may receive
10    compensation for service as an officer or employee.
11        (3) A director or officer shall not have any interest,
12    direct or indirect, in the purchase at less than its face
13    value of any evidence of a savings account, deposit, or
14    other indebtedness issued by the savings bank.
15        (4) A savings bank or director or officer thereof shall
16    not directly or indirectly require, as a condition to the
17    granting of any loan or the extension of any other service
18    by the savings bank or its affiliates that the borrower or
19    any other person undertake a contract of insurance or any
20    other agreement or understanding with respect to the direct
21    or indirect furnishing of any other goods or services with
22    any specific company, agency, or individual.
23        (5) An officer or director acting as proxy for a member
24    of a mutual savings bank shall not exercise, transfer, or
25    delegate that right in any consideration of a private
26    benefit or advantage, direct or indirect, accruing to

 

 

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1    himself nor surrender control or pass his office to any
2    other for any consideration of a private benefit or
3    advantage, direct or indirect. The voting rights of members
4    shall not be the subject of sale or similar transaction,
5    either directly or indirectly. Any officer or director who
6    violates the provisions of this subsection shall be held
7    accountable to the savings bank for any increment.
8        (6) A director or officer shall not solicit, accept, or
9    agree to accept, directly or indirectly, from any person
10    other than the savings bank any gratuity, compensation, or
11    other personal benefit for any action taken by the savings
12    bank or for endeavoring to procure any action by the
13    savings bank.
14        (7) A Subject to the approval of the Commissioner, a
15    savings bank's bylaws may provide for reasonable
16    indemnification to its officers, directors, and employees
17    in connection with the faithful performance of their duties
18    for the savings bank. The Secretary Commissioner may
19    promulgate model indemnification provisions and may
20    consider provisions available under the Business
21    Corporation Act of 1983, the Illinois Banking Act, and
22    those available to national banks.
23    (b) The bylaws of a savings bank may contain a provision
24providing that a director is not personally liable to the
25savings bank or its shareholders for monetary damages for a
26breach of the director's fiduciary duty; provided, however,

 

 

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1that such provision may not eliminate or limit the liability of
2a director for any of the following:
3        (1) An act or omission that is grossly negligent.
4        (2) A breach of the director's duty of loyalty to the
5    savings bank or its shareholders.
6        (3) Acts or omissions not in good faith or that involve
7    intentional misconduct or a knowing violation of law.
8        (4) A transaction from which the director derived an
9    improper personal benefit.
10        (5) An act or omission occurring before the effective
11    date of the provision in the bylaws authorized by this
12    subsection.
13(Source: P.A. 89-320, eff. 1-1-96.)
 
14    (205 ILCS 205/4013)  (from Ch. 17, par. 7304-13)
15    Sec. 4013. Access to books and records; communication with
16members and shareholders.
17    (a) Every customer member or shareholder shall have the
18right to inspect financial books and records of the savings
19bank that pertain to his or her accounts. Otherwise, the right
20of inspection and examination of the books and records shall be
21limited as provided in this Act. Only members shall be entitled
22to a list of members of the savings bank , and no other person
23shall have access to the books and records nor shall be
24entitled to a list of the members or shareholders.
25    (b) For the purpose of this Section, the term "financial

 

 

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1records" means any original, any copy, or any summary of (1) a
2document granting signature authority over a deposit or
3account; (2) a statement, ledger card, or other record on any
4deposit or account that shows each transaction in or with
5respect to that account; (3) a check, draft, or money order
6drawn on a savings bank or issued and payable by a savings
7bank; or (4) any other item containing information pertaining
8to any relationship established in the ordinary course of a
9savings bank's business between a savings bank and its
10customer, including financial statements or other financial
11information provided by the customer member or shareholder.
12    (b-5) For purposes of this Section, subject to the
13Secretary's rules, the term "customer" means a person who
14applies for or is provided with a financial service or product
15by the savings bank. "Customer" does not include a person who
16(i) is a customer of another financial institution and the
17savings bank acts solely as agent for, or provides processing
18or other services to, that other financial institution; (ii)
19solely has designated the savings bank as trustee for a trust;
20(iii) solely is a beneficiary of a trust for which the savings
21bank is a trustee; or (iv) solely is a participant or a
22beneficiary of an employee benefit plan that the savings bank
23sponsors or for which the savings bank acts as a trustee or
24fiduciary.
25    (c) This Section does not prohibit:
26        (1) The preparation examination, handling, or

 

 

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1    maintenance of any financial records by any officer,
2    employee, or agent of a savings bank having custody of
3    records or examination of records by a certified public
4    accountant engaged by the savings bank to perform an
5    independent audit.
6        (2) The examination of any financial records by, or the
7    furnishing of financial records by a savings bank to, any
8    officer, employee, or agent of the Secretary Commissioner
9    of Banks and Real Estate or the federal depository
10    institution regulator for use solely in the exercise of his
11    duties as an officer, employee, or agent.
12        (3) The publication of data furnished from financial
13    records relating to customers members or holders of capital
14    where the data cannot be identified to any particular
15    customer member, shareholder, or account.
16        (4) The making of reports or returns required under
17    Chapter 61 of the Internal Revenue Code of 1986.
18        (5) Furnishing information concerning the dishonor of
19    any negotiable instrument permitted to be disclosed under
20    the Uniform Commercial Code.
21        (6) The exchange in the regular course of business of
22    (i) credit information between a savings bank and other
23    savings banks or financial institutions or commercial
24    enterprises, directly or through a consumer reporting
25    agency or (ii) financial records or information derived
26    from financial records between a savings bank and other

 

 

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1    savings banks or financial institutions or commercial
2    enterprises for the purpose of conducting due diligence
3    pursuant to a purchase or sale involving the savings bank
4    or assets or liabilities of the savings bank.
5        (7) The furnishing of information to the appropriate
6    law enforcement authorities where the savings bank
7    reasonably believes it has been the victim of a crime.
8        (8) The furnishing of information pursuant to the
9    Uniform Disposition of Unclaimed Property Act.
10        (9) The furnishing of information pursuant to the
11    Illinois Income Tax Act and the Illinois Estate and
12    Generation-Skipping Transfer Tax Act.
13        (10) The furnishing of information pursuant to the
14    federal "Currency and Foreign Transactions Reporting Act",
15    (Title 31, United States Code, Section 1051 et seq.).
16        (11) The furnishing of information pursuant to any
17    other statute which by its terms or by regulations
18    promulgated thereunder requires the disclosure of
19    financial records other than by subpoena, summons,
20    warrant, or court order.
21        (12) The furnishing of information in accordance with
22    the federal Personal Responsibility and Work Opportunity
23    Reconciliation Act of 1996. Any savings bank governed by
24    this Act shall enter into an agreement for data exchanges
25    with a State agency provided the State agency pays to the
26    savings bank a reasonable fee not to exceed its actual cost

 

 

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1    incurred. A savings bank providing information in
2    accordance with this item shall not be liable to any
3    account holder or other person for any disclosure of
4    information to a State agency, for encumbering or
5    surrendering any assets held by the savings bank in
6    response to a lien or order to withhold and deliver issued
7    by a State agency, or for any other action taken pursuant
8    to this item, including individual or mechanical errors,
9    provided the action does not constitute gross negligence or
10    willful misconduct. A savings bank shall have no obligation
11    to hold, encumber, or surrender assets until it has been
12    served with a subpoena, summons, warrant, court or
13    administrative order, lien, or levy.
14        (13) The furnishing of information to law enforcement
15    authorities, the Illinois Department on Aging and its
16    regional administrative and provider agencies, the
17    Department of Human Services Office of Inspector General,
18    or public guardians: (i) upon subpoena by the investigatory
19    entity or the guardian, or (ii) if there is suspicion by
20    the savings bank that a customer who is an elderly or
21    disabled person has been or may become the victim of
22    financial exploitation. For the purposes of this item (13),
23    the term: (i) "elderly person" means a person who is 60 or
24    more years of age, (ii) "disabled person" means a person
25    who has or reasonably appears to the savings bank to have a
26    physical or mental disability that impairs his or her

 

 

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1    ability to seek or obtain protection from or prevent
2    financial exploitation, and (iii) "financial exploitation"
3    means tortious or illegal use of the assets or resources of
4    an elderly or disabled person, and includes, without
5    limitation, misappropriation of the elderly or disabled
6    person's assets or resources by undue influence, breach of
7    fiduciary relationship, intimidation, fraud, deception,
8    extortion, or the use of assets or resources in any manner
9    contrary to law. A savings bank or person furnishing
10    information pursuant to this item (13) shall be entitled to
11    the same rights and protections as a person furnishing
12    information under the Elder Abuse and Neglect Act, the
13    Illinois Domestic Violence Act of 1986, and the Abuse of
14    Adults with Disabilities Intervention Act.
15        (14) The disclosure of financial records or
16    information as necessary to effect, administer, or enforce
17    a transaction requested or authorized by the member or
18    holder of capital, or in connection with:
19            (A) servicing or processing a financial product or
20        service requested or authorized by the customer member
21        or holder of capital;
22            (B) maintaining or servicing an account of a
23        customer member or holder of capital with the savings
24        bank; or
25            (C) a proposed or actual securitization or
26        secondary market sale (including sales of servicing

 

 

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1        rights) related to a transaction of a customer member
2        or holder of capital.
3        Nothing in this item (14), however, authorizes the sale
4    of the financial records or information of a customer
5    member or holder of capital without the consent of the
6    customer member or holder of capital.
7        (15) The exchange in the regular course of business of
8    information between a savings bank and any commonly owned
9    affiliate of the savings bank, subject to the provisions of
10    the Financial Institutions Insurance Sales Law.
11        (16) The disclosure of financial records or
12    information as necessary to protect against or prevent
13    actual or potential fraud, unauthorized transactions,
14    claims, or other liability.
15        (17)(a) The disclosure of financial records or
16    information related to a private label credit program
17    between a financial institution and a private label party
18    in connection with that private label credit program. Such
19    information is limited to outstanding balance, available
20    credit, payment and performance and account history,
21    product references, purchase information, and information
22    related to the identity of the customer.
23        (b)(l) For purposes of this paragraph (17) of
24    subsection (c) of Section 4013, a "private label credit
25    program" means a credit program involving a financial
26    institution and a private label party that is used by a

 

 

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1    customer of the financial institution and the private label
2    party primarily for payment for goods or services sold,
3    manufactured, or distributed by a private label party.
4        (2) For purposes of this paragraph (17) of subsection
5    (c) of Section 4013, a "private label party" means, with
6    respect to a private label credit program, any of the
7    following: a retailer, a merchant, a manufacturer, a trade
8    group, or any such person's affiliate, subsidiary, member,
9    agent, or service provider.
10    (d) A savings bank may not disclose to any person, except
11to the customer member or holder of capital or his duly
12authorized agent, any financial records relating to that
13customer member or shareholder of the savings bank unless:
14        (1) the customer member or shareholder has authorized
15    disclosure to the person; or
16        (2) the financial records are disclosed in response to
17    a lawful subpoena, summons, warrant, citation to discover
18    assets, or court order that meets the requirements of
19    subsection (e) of this Section.
20    (e) A savings bank shall disclose financial records under
21subsection (d) of this Section pursuant to a lawful subpoena,
22summons, warrant, citation to discover assets, or court order
23only after the savings bank mails a copy of the subpoena,
24summons, warrant, citation to discover assets, or court order
25to the person establishing the relationship with the savings
26bank, if living, and otherwise, his personal representative, if

 

 

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1known, at his last known address by first class mail, postage
2prepaid, unless the savings bank is specifically prohibited
3from notifying the person by order of court.
4    (f) Any officer or employee of a savings bank who knowingly
5and willfully furnishes financial records in violation of this
6Section is guilty of a business offense and, upon conviction,
7shall be fined not more than $1,000.
8    (g) Any person who knowingly and willfully induces or
9attempts to induce any officer or employee of a savings bank to
10disclose financial records in violation of this Section is
11guilty of a business offense and, upon conviction, shall be
12fined not more than $1,000.
13    (h) If any member or shareholder desires to communicate
14with the other members or shareholders of the savings bank with
15reference to any question pending or to be presented at an
16annual or special meeting, the savings bank shall give that
17person, upon request, a statement of the approximate number of
18members or shareholders entitled to vote at the meeting and an
19estimate of the cost of preparing and mailing the
20communication. The requesting member shall submit the
21communication to the Secretary Commissioner who, upon finding
22it to be appropriate and truthful, shall direct that it be
23prepared and mailed to the members upon the requesting member's
24or shareholder's payment or adequate provision for payment of
25the expenses of preparation and mailing.
26    (i) A savings bank shall be reimbursed for costs that are

 

 

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1necessary and that have been directly incurred in searching
2for, reproducing, or transporting books, papers, records, or
3other data of a customer required to be reproduced pursuant to
4a lawful subpoena, warrant, citation to discover assets, or
5court order.
6    (j) Notwithstanding the provisions of this Section, a
7savings bank may sell or otherwise make use of lists of
8customers' names and addresses. All other information
9regarding a customer's account are subject to the disclosure
10provisions of this Section. At the request of any customer,
11that customer's name and address shall be deleted from any list
12that is to be sold or used in any other manner beyond
13identification of the customer's accounts.
14(Source: P.A. 94-495, eff. 8-8-05; 94-851, eff. 6-13-06;
1595-661, eff. 1-1-08.)
 
16    (205 ILCS 205/6002)  (from Ch. 17, par. 7306-2)
17    Sec. 6002. Investment in loans. Subject to the regulations
18of the Secretary Commissioner, a savings bank may loan funds as
19follows:
20    (1) On the security of deposit accounts, but no such loan
21shall exceed the withdrawal value of the pledged account.
22    (2) On the security of real estate:
23        (A) of a value, determined in accordance with this Act,
24    sufficient to provide good and ample security for the loan;
25        (B) with a fee simple title or a leasehold title;

 

 

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1        (C) with the title established by evidence of title as
2    is consistent with sound lending practices in the locality;
3        (D) with the security interest in the real estate
4    evidenced by an appropriate written instrument and the loan
5    evidenced by a note, bond, or similar written instrument; a
6    loan on the security of the whole of the beneficial
7    interest in a land trust satisfies the requirements of this
8    paragraph if the title to the land is held by a corporate
9    trustee and if the real estate held in the land trust meets
10    the other requirements of this subsection;
11        (E) with a mortgage loan not to exceed 40 years.
12    (3) For the purpose of repair, improvement,
13rehabilitation, furnishing, or equipment of real estate.
14    (4) For the purpose of financing or refinancing an existing
15ownership interest in certificates of stock, certificates of
16beneficial interest, other evidence of an ownership interest
17in, or a proprietary lease from a corporation, trust, or
18partnership formed for the purpose of the cooperative ownership
19of real estate, secured by the assignment or transfer of
20certificates or other evidence of ownership of the borrower.
21    (5) Through the purchase of loans that, at the time of
22purchase, the savings bank could make in accordance with this
23Section and the bylaws.
24    (6) Through the purchase of installment contracts for the
25sale of real estate and title thereto that is subject to the
26contracts, but in each instance only if the savings bank, at

 

 

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1the time of purchase, could make a mortgage loan of the same
2amount and for the same length of time on the security of the
3real estate.
4    (7) Through loans guaranteed or insured, wholly or in part,
5by the United States or any of its instrumentalities.
6    (8) Subject to regulations adopted by the Secretary
7Commissioner, through secured or unsecured loans for business,
8corporate, commercial, or agricultural purposes; provided that
9the total of all loans granted under this paragraph shall not
10exceed 15% of the savings bank's total assets unless a greater
11amount is authorized in writing by the Secretary Commissioner.
12    (9) For the purpose of mobile home financing subject,
13however, to the regulation of the Commissioner.
14    (10) Through loans secured by the cash surrender value of
15any life insurance policy or any collateral that would be a
16legal investment under the terms of this Act if made by the
17savings bank.
18    (11) Any provision of this Act or any other law, except for
19paragraph (18) of Section 6003, to the contrary
20notwithstanding, but subject to the Financial Institutions
21Insurance Sales Law and subject to the Secretary's
22Commissioner's regulations, any savings bank may make any loan
23or investment or engage in any activity that it could make or
24engage in if it were organized under State law as a savings and
25loan association or under federal law as a federal savings and
26loan association or federal savings bank.

 

 

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1    (12) A savings bank may issue letters of credit or other
2similar arrangements only as provided for by regulation of the
3Secretary Commissioner with regard to aggregate amounts
4permitted, take out commitments for stand-by letters of credit,
5underlying documentation and underwriting, legal limitations
6on loans of the savings bank, control and subsidiary records,
7and other procedures deemed necessary by the Secretary
8Commissioner.
9    (13) For the purpose of vehicle automobile financing,
10subject to the regulation of the Commissioner. "Vehicle" shall
11include all motorized forms of transportation that constitute
12adequate collateral.
13    (14) For the purpose of financing primary, secondary,
14undergraduate, or postgraduate education.
15    (15) Through revolving lines of credit on the security of a
16first or junior lien on the borrower's personal residence,
17based primarily on the borrower's equity, the proceeds of which
18may be used for any purpose; those loans being commonly
19referred to as home equity loans.
20    (16) As secured or unsecured credit to cover the payment of
21checks, drafts, or other funds transfer orders in excess of the
22available balance of an account on which they are drawn,
23subject to the regulations of the Secretary Commissioner.
24(Source: P.A. 90-301, eff. 8-1-97; 91-97, eff. 7-9-99.)
 
25    (205 ILCS 205/6013)  (from Ch. 17, par. 7306-13)

 

 

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1    Sec. 6013. Loans to one borrower.
2    (a) Except as provided in subsection (c), the total loans
3and extensions of credit, both direct and indirect, by a
4savings bank to any person, other than a municipal corporation
5for money borrowed, outstanding at one time shall not exceed
625% of the savings bank's total capital plus general loan loss
7reserves.
8    (b) Except as provided in subsection (c), the total loans
9and extensions of credit, both direct and indirect, by a
10savings bank to any person outstanding at one time and at least
11100% secured by readily marketable collateral having a market
12value, as determined by reliable and continuously available
13price quotations, shall not exceed 10% of the savings bank's
14total capital plus general loan loss reserves. This limitation
15shall be separate from and in addition to the limitation
16contained in subsection (a).
17    (c) If the limit under subsection (a) or (b) on total loans
18to one borrower is less than $500,000, a savings bank that
19meets its minimum capital requirement under this Act may have
20loan and extensions of credit, both direct and indirect,
21outstanding to any person at one time not to exceed $500,000.
22With the prior written approval of the Commissioner, a savings
23bank that has capital in excess of 6% of assets may make loans
24and extensions of credit to one borrower for the development of
25residential housing properties, located or to be located in
26this State, not to exceed 30% of the savings bank's total

 

 

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1capital plus general loan loss reserves.
2    (d) For purposes of this Section, the term "person" shall
3be deemed to include an individual, firm, corporation, business
4trust, partnership, trust, estate, association, joint venture,
5pool, syndicate, sole proprietorship, unincorporated
6association, any political subdivision, or any similar entity
7or organization.
8    (e) For the purposes of this Section any loan or extension
9of credit granted to one person, the proceeds of which are used
10for the direct benefit of a second person, shall be deemed a
11loan or extension of credit to the second person as well as the
12first person. In addition, a loan or extension of credit to one
13person shall be deemed a loan or extension of credit to others
14when a common enterprise exists between the first person and
15such other persons.
16    (f) For the purposes of this Section, the total liabilities
17of a firm, partnership, pool, syndicate, or joint venture shall
18include the liabilities of the members of the entity.
19    (g) For the purposes of this Section, the term "readily
20marketable collateral" means financial instruments or bullion
21that are salable under ordinary circumstances with reasonable
22promptness at a fair market value on an auction or a similarly
23available daily bid-and-ask price market. "Financial
24instruments" include stocks, bonds, notes, debentures traded
25on a national exchange or over the counter, commercial paper,
26negotiable certificates of deposit, bankers' acceptances, and

 

 

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1shares in money market or mutual funds.
2    (h) Each savings bank shall institute adequate procedures
3to ensure that collateral fully secures the outstanding loan or
4extension of credit at all times.
5    (i) If collateral values fall below 100% of the outstanding
6loan or extension of credit to the extent that the loan or
7extension of credit no longer is in conformance with subsection
8(b) and exceeds the 25% limitation of subsection (a), the loan
9must be brought into conformance with this Section within 5
10business days except where judicial proceedings or other
11similar extraordinary occurrences prevent the savings bank
12from taking action.
13    (j) This Section shall not apply to loans or extensions of
14credit to the United States of America or its agencies or this
15State or its agencies or to any loan, investment, or extension
16of credit made pursuant to Section 6003 of this Act.
17    (k) This Section does not apply to the obligations as
18endorser, whether with or without recourse, or as guarantor,
19whether conditional or unconditional, of negotiable or
20nonnegotiable installment consumer paper of the person
21transferring the same if the bank's files or the knowledge of
22its officers of the financial condition of each maker of those
23obligations is reasonably adequate and if an officer of the
24bank, designated for that purpose by the board of directors of
25the bank, certifies that the responsibility of each maker of
26the obligations has been evaluated and that the bank is relying

 

 

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1primarily upon each maker for the payment of the obligations.
2The certification shall be in writing and shall be retained as
3part of the records of the bank.
4    (l) The following shall be considered a loan or extension
5of credit within the meaning of this Section:
6        (1) all direct or indirect advances of funds to a
7    person made on the basis of any obligation of that person
8    to repay the funds or repayable from specific property
9    pledged by or on behalf of that person; and
10        (2) to the extent specified by the Secretary, any
11    liability of a savings bank to advance funds to or on
12    behalf of a person pursuant to a contractual commitment.
13    (m) (l) The Secretary Commissioner may prescribe rules to
14carry out the purposes of this Section and to establish limits
15or requirements other than those specified in this Section for
16particular types of loans and extensions of credit.
17(Source: P.A. 92-483, eff. 8-23-01; 92-700, eff. 7-19-02.)
 
18    (205 ILCS 205/6014)  (from Ch. 17, par. 7306-14)
19    Sec. 6014. Secretary's Commissioner's regulations.
20    (a) The Secretary may Commissioner shall promulgate rules
21and regulations to determine permissible levels of investment
22and permissible concentrations of assets for savings banks
23applicable to all lending and investment authority granted by
24this Article 6. The rules and regulations shall give due regard
25to capital adequacy, operating income, underwriting standards,

 

 

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1risk inherent in the investment or loan, and competitive parity
2with other financial institutions.
3    (b) Violations of any of the provisions of this Article 6
4shall constitute an unsafe and unsound practice and may subject
5the savings bank, its directors, officers, or agents to
6enforcement actions, civil money penalties, or other sanctions
7as provided in this Act.
8(Source: P.A. 86-1213.)
 
9    (205 ILCS 205/8006)  (from Ch. 17, par. 7308-6)
10    Sec. 8006. Merger; Secretary's certificate. The executed
11merger agreement together with copies of the resolutions of the
12members or stockholders of each merging depository institution
13approving it, certified by the president or vice president, and
14attested to by the secretary of the savings bank, shall be
15filed with the Secretary. The Secretary shall then issue to the
16continuing savings bank a certificate of merger, setting forth
17the name of each merging depository institution, the name of
18the continuing savings bank, and the articles of incorporation
19of the continuing savings bank. The merger takes effect upon
20the issuance of the certificate of merger recording of the
21certificate in the same manner as the articles of incorporation
22in each county in which the business office of any of the
23merging depository institutions was located and in the county
24in which the business office of the continuing savings bank is
25located. When duly recorded, the certificate shall be

 

 

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1conclusive evidence of the merger and of the correctness of the
2proceedings therefor except against the State.
3(Source: P.A. 97-492, eff. 1-1-12.)
 
4    (205 ILCS 205/8012)  (from Ch. 17, par. 7308-12)
5    Sec. 8012. Conversion of an existing depository
6institution to a savings bank.
7    (a) Except as provided in subsection (b), an existing
8depository institution may become an Illinois savings bank by:
9        (1) Applying to the Secretary Commissioner of Banks and
10    Real Estate for an Illinois savings bank charter.
11        (2) Obtaining insurance of accounts from a deposit
12    insurance corporation.
13        (3) Complying with the provisions of this Act and the
14    rules and regulations of the Secretary Commissioner,
15    except that any requirements of publication, notice, and
16    public hearing are hereby waived.
17        (4) Paying all outstanding bills for supervisory fees,
18    examination fees, membership fees, other fees, penalties,
19    and assessments associated with its original charter.
20        (5) (Blank). Recording a savings bank charter in the
21    county of its company headquarters.
22        (6) Giving notice to its original chartering authority
23    and surrendering its charter to its chartering authority
24    upon approval of the Secretary Commissioner.
25    (b) A federal association required by a law of the United

 

 

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1States to convert to a national bank or to a depository
2institution chartered under the laws of the State of Illinois
3that elects to become a savings bank may apply for an expedited
4process under this subsection. Upon filing with the Secretary
5Commissioner a certified copy of the conversion registration
6statement filed with the appropriate federal regulatory agency
7and a certificate issued by that federal regulatory agency
8showing that the federal association has complied with the
9provisions of federal law, the Secretary Commissioner shall
10issue a savings bank charter to the converting federal
11association, provided the converting federal association:
12        (i) furnishes evidence of insurance of accounts from a
13    deposit insurance corporation; and
14        (ii) complies with the provisions of this Act and the
15    rules of the Secretary Commissioner, except that any
16    requirements of publication notice and public hearing are
17    waived. ; and
18        (iii) records the savings bank charter in the county of
19    its principal place of business.
20    (c) A federal savings association that converts to a
21savings bank under subsection (b) of this Section shall not be
22required to pay any application fees in connection with the
23conversion.
24(Source: P.A. 89-508, eff. 7-3-96; 90-270, eff. 7-30-97.)
 
25    (205 ILCS 205/9002)  (from Ch. 17, par. 7309-2)

 

 

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1    Sec. 9002. Powers of Secretary. The Secretary shall have
2the following powers and duties:
3        (1) To exercise the rights, powers, and duties set
4    forth in this Act or in any related Act.
5        (2) To establish regulations as may be reasonable or
6    necessary to accomplish the purposes of this Act.
7        (3) To make an annual report regarding the work of his
8    office under this Act as he may consider desirable to the
9    Governor, or as the Governor may request.
10        (4) To cause a suit to be filed in his name to enforce
11    any law of this State that applies to savings banks, their
12    service corporations, subsidiaries, affiliates, or holding
13    companies operating under this Act, including the
14    enforcement of any obligation of the officers, directors,
15    agents, or employees of any savings bank.
16        (5) To prescribe a uniform manner in which the books
17    and records of every savings bank are to be maintained.
18        (6) To establish a reasonable fee structure for savings
19    banks and holding companies operating under this Act and
20    for their service corporations and subsidiaries. The fees
21    shall include, but not be limited to, annual fees,
22    application fees, regular and special examination fees,
23    and other fees as the Secretary establishes and
24    demonstrates to be directly resultant from the Secretary's
25    responsibilities under this Act and as are directly
26    attributable to individual entities operating under this

 

 

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1    Act. The aggregate of all moneys collected by the Secretary
2    on and after the effective date of this Act shall be paid
3    promptly after receipt of the same, accompanied by a
4    detailed statement thereof, into the Savings and
5    Residential Finance Regulatory Fund subject to the
6    provisions of Section 7-19.1 of the Illinois Savings and
7    Loan Act of 1985 including without limitation the provision
8    for credits against regulatory fees. The amounts deposited
9    into the Fund shall be used for the ordinary and contingent
10    expenses of the Office of Banks and Real Estate.
11    Notwithstanding any other provision of this paragraph (6),
12    the aggregate of all moneys collected by the Secretary
13    under this Act shall be paid promptly after receipt of
14    same, accompanied by a detailed statement thereof, into the
15    Savings Institutions Regulatory Fund upon the creation of
16    that fund under Section 7-19.2 of the Illinois Savings and
17    Loan Act of 1985, subject to the provisions of Section
18    7-19.2 of the Illinois Savings and Loan Act of 1985,
19    including without limitation the provision for credits
20    against regulatory fees. The amounts deposited into the
21    Savings Institutions Regulatory Fund under this paragraph
22    (6) shall be used for the ordinary and contingent expenses
23    of administering and enforcing this Act. Nothing in this
24    Act shall prevent continuing the practice of paying
25    expenses involving salaries, retirement, social security,
26    and State-paid insurance of State officers by

 

 

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1    appropriation from the General Revenue Fund. The Secretary
2    may require payment of the fees under this Act by an
3    electronic transfer of funds or an automatic debit of an
4    account of each of the savings banks.
5        (7) To establish a Savings Bank Regulatory Section
6    within the Division of Banking.
7    The Secretary or any person appointed as receiver shall
8have all of the powers, rights, and privileges as the Federal
9Deposit Insurance Corporation when appointed as receiver,
10which shall originate at the time of the appointment and
11continue through the term of the receivership.
12(Source: P.A. 96-1365, eff. 7-28-10; 97-492, eff. 1-1-12.)
 
13    (205 ILCS 205/9002.1 new)
14    Sec. 9002.1. Savings Institutions Regulatory Fund.
15    (a) The aggregate of all moneys collected by the Secretary
16under this Act shall be paid promptly after receipt of the
17same, accompanied by a detailed statement thereof, into the
18State treasury and shall be set apart in the Savings
19Institutions Regulatory Fund. All earnings received from
20investments of funds in the Savings Institutions Regulatory
21Fund shall be deposited into the Savings Institutions
22Regulatory Fund and may be used for the same purposes as fees
23deposited into the Savings Institutions Regulatory Fund. The
24amount from time to time deposited into the Fund shall be used
25(i) to offset the ordinary administrative expenses as defined

 

 

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1in this Section or (ii) as a credit against fees under
2subsection (b) of this Section. Nothing in this Section shall
3prevent continuing the practice of paying expenses involving
4salaries, retirement, Social Security, and State paid
5insurance of State officers by appropriation from the General
6Revenue Fund. However, the General Revenue Fund shall be
7reimbursed for those payments made on and after July 1, 1979 by
8an annual transfer of funds from the Savings Institutions
9Regulatory Fund. Money in the Savings Institutions Regulatory
10Fund may be transferred to the Professions Indirect Cost Fund
11as authorized under Section 2105-300 of the Department of
12Professional Regulation Law of the Civil Administrative Code of
13Illinois.
14    (b) Adequate funds shall be available in the Savings
15Institutions Regulatory Fund to permit the timely payment of
16administration expenses. In each fiscal year, the total
17administration expenses shall be deducted from the total fees
18collected by the Secretary and the remainder transferred into
19the Cash Flow Reserve Account, unless the balance of the Cash
20Flow Reserve Account prior to the transfer equals or exceeds
21one-fourth of the total initial appropriations from the Savings
22Institutions Regulatory Fund for the subsequent year, in which
23case the remainder shall be credited to savings banks and
24applied against their fees for the subsequent year. The amount
25credited to each savings bank shall be in the same proportion
26as the Call Report Fees paid by each for the year bear to the

 

 

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1total Call Report Fees collected for the year. If, after a
2transfer to the Cash Flow Reserve Account is made or if no
3remainder is available for transfer, the balance of the Cash
4Flow Reserve Account is less than one-fourth of the total
5initial appropriations for the subsequent year and the amount
6transferred is less than 5% of the total Call Report Fees for
7the year, additional amounts needed to make the transfer equal
8to 5% of the total Call Report Fees for the year shall be
9apportioned amongst, assessed upon, and paid by savings banks
10in the same proportion that the Call Report Fees of each,
11respectively, for the year bear to the total Call Report Fees
12collected for the year. The additional amounts assessed shall
13be transferred into the Cash Flow Reserve Account.
14    (c) Moneys in the Residential Finance Regulatory Fund
15apportioned to the moneys collected under the Illinois Savings
16and Loan Act of 1985 and the Savings Bank Act shall be
17transferred to the Savings Institutions Regulatory Fund. Any
18amount used or borrowed from the moneys apportioned to the
19moneys collected under the Illinois Savings and Loan Act of
201985 and this Act that would have been required to be returned
21to that apportionment shall be instead paid into the Savings
22Institutions Regulatory Fund in the same manner.
 
23    (205 ILCS 205/9002.5)
24    Sec. 9002.5. Regulatory fees.
25    (a) For the fiscal year beginning July 1, 2007 and every

 

 

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1year thereafter, each savings bank and each service corporation
2operating under this Act shall pay in quarterly installments
3equal to one-fourth of a fixed fee of $520, plus a variable fee
4based on one-fourth the total assets of the savings bank or
5service corporation, as shown in the corresponding quarterly
6statement of condition, at the following rates:
7        24.97¢ per $1,000 of the first $2,000,000 of total
8    assets;
9        22.70¢ per $1,000 of the next $3,000,000 of total
10    assets;
11        20.43¢ per $1,000 of the next $5,000,000 of total
12    assets;
13        17.025¢ per $1,000 of the next $15,000,000 of total
14    assets;
15        14.755¢ per $1,000 of the next $25,000,000 of total
16    assets;
17        12.485¢ per $1,000 of the next $50,000,000 of total
18    assets;
19        10.215¢ per $1,000 of the next $400,000,000 of total
20    assets;
21        6.81¢ per $1,000 of the next $500,000,000 of total
22    assets; and
23        4.54¢ per $1,000 of all total assets in excess of
24    $1,000,000,000 of such savings bank or service
25    corporation.
26    "Quarterly statement of condition" means the Report of

 

 

SB1778- 51 -LRB098 09391 MGM 39532 b

1Condition and Income (Call Report) filed with the appropriate
2federal banking agency, as defined by Section 3 of the Federal
3Deposit Insurance Act (12 U.S.C. 1813).
4    (b) (Blank). The Secretary shall receive and there shall be
5paid to the Secretary an additional fee as an adjustment to the
6supervisory fee, based upon the difference between the total
7assets of each savings bank and each service corporation as
8shown by its financial report filed with the Secretary for the
9reporting period of the calendar year ended December 31 on
10which the supervisory fee was based and the total assets of
11each savings bank and each service corporation as shown by its
12financial report filed with the Secretary for the reporting
13period of the calendar year ended December 31 in which the
14quarterly payments are made according to the following
15schedule:
16        24.97¢ per $1,000 of the first $2,000,000 of total
17    assets;
18        22.70¢ per $1,000 of the next $3,000,000 of total
19    assets;
20        20.43¢ per $1,000 of the next $5,000,000 of total
21    assets;
22        17.025¢ per $1,000 of the next $15,000,000 of total
23    assets;
24        14.755¢ per $1,000 of the next $25,000,000 of total
25    assets;
26        12.485¢ per $1,000 of the next $50,000,000 of total

 

 

SB1778- 52 -LRB098 09391 MGM 39532 b

1    assets;
2        10.215¢ per $1,000 of the next $400,000,000 of total
3    assets;
4        6.81¢ per $1,000 of the next $500,000,000 of total
5    assets; and
6        4.54¢ per $1,000 of all total assets in excess of
7    $1,000,000,000 of such savings bank or service
8    corporation.
9    (c) (Blank). The Secretary shall receive and there shall be
10paid to the Secretary by each savings bank and each service
11corporation a fee of $520 for each approved branch office or
12facility office established under the Illinois Administrative
13Code. The determination of the fees shall be made annually as
14of the close of business of the prior calendar year ended
15December 31.
16    (d) For purposes of this Section, "fiscal year" means a
17period beginning July 1 of any year and ending June 30 of the
18next year. The Secretary shall receive for each fiscal year,
19commencing with the fiscal year ending June 30, 2013, a
20contingent fee equal to the lesser of the aggregate of the fees
21paid by all savings banks under subsection (a) of this Section
22for that year, or the amount, if any, whereby the aggregate of
23the administration expenses, as defined in subsection (e) of
24this Section, for that fiscal year exceeds the sum of the
25aggregate of the fees payable by all savings banks for that
26year under subsection (a) of this Section, plus any amounts

 

 

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1transferred into the Savings Institutions Regulatory Fund from
2the State Pensions Fund for that year, plus all other amounts
3collected by the Secretary for that year under any other
4provision of this Act. The aggregate amount of the contingent
5fee thus arrived at for any fiscal year shall be apportioned
6amongst, assessed upon, and paid by the savings banks,
7respectively, in the same proportion that the fee of each under
8subsection (a) of this Section for that year bears to the
9aggregate for that year of the fees collected under subsection
10(a) of this Section. The aggregate amount of the contingent
11fee, and the portion thereof to be assessed upon each savings
12bank, respectively, shall be determined by the Secretary and
13shall be paid by each, respectively, within 120 days after the
14close of the period for which the contingent fee is computed
15and is payable, and the Secretary shall give advance notice of
16the amount of the contingent fee payable by the savings bank
17and of the date fixed by the Secretary for payment of the fee.
18    (e) For purposes of this Section, "administration
19expenses" means for any fiscal year the ordinary and contingent
20expenses for that year incident to making the examinations
21provided for by, and for otherwise administering, this Act,
22including all salaries and other compensation paid for personal
23services rendered for the State by officers or employees of the
24State, including the Secretary and the Director, communication
25equipment and services, office furnishings, surety bond
26premiums, and travel expenses of those officers and employees,

 

 

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1employees, expenditures or charges for the acquisition,
2enlargement, or improvement of, or for the use of, any office
3space, building, or structure, or expenditures for the
4maintenance thereof or for furnishing heat, light, or power
5with respect thereto, all to the extent that those expenditures
6are directly incidental to such examinations or
7administration; the Secretary shall not be required by this
8subsection to maintain in any fiscal year's budget appropriated
9reserves for accrued vacation and accrued sick leave that is
10required to be paid to employees of the Secretary upon
11termination of their service with the Secretary in an amount
12that is more than is reasonably anticipated to be necessary for
13any anticipated turnover in employees, whether due to normal
14attrition or due to layoffs, terminations, or resignations.
15(Source: P.A. 95-1047, eff. 4-6-09.)
 
16    (205 ILCS 205/9012)  (from Ch. 17, par. 7309-12)
17    Sec. 9012. Disclosure of reports of examinations and
18confidential supervisory information; limitations.
19    (a) Any report of examination, visitation, or
20investigation prepared by the Secretary Commissioner under
21this Act, any report of examination, visitation, or
22investigation prepared by the state regulatory authority of
23another state that examines a branch of an Illinois State
24savings bank in that state, any document or record prepared or
25obtained in connection with or relating to any examination,

 

 

SB1778- 55 -LRB098 09391 MGM 39532 b

1visitation, or investigation, and any record prepared or
2obtained by the Secretary Commissioner to the extent that the
3record summarizes or contains information derived from any
4report, document, or record described in this subsection shall
5be deemed confidential supervisory information. "Confidential
6supervisory information" shall not include any information or
7record routinely prepared by a savings bank and maintained in
8the ordinary course of business or any information or record
9that is required to be made publicly available pursuant to
10State or federal law or rule. Confidential supervisory
11information shall be the property of the Secretary Commissioner
12and shall only be disclosed under the circumstances and for the
13purposes set forth in this Section.
14    The Secretary Commissioner may disclose confidential
15supervisory information only under the following
16circumstances:
17        (1) The Secretary Commissioner may furnish
18    confidential supervisory information to federal and state
19    depository institution regulators, or any official or
20    examiner thereof duly accredited for the purpose. Nothing
21    contained in this Act shall be construed to limit the
22    obligation of any savings bank to comply with the
23    requirements relative to examinations and reports nor to
24    limit in any way the powers of the Commissioner relative to
25    examinations and reports.
26        (2) The Secretary Commissioner may furnish

 

 

SB1778- 56 -LRB098 09391 MGM 39532 b

1    confidential supervisory information to the United States
2    or any agency thereof that to any extent has insured a
3    savings bank's deposits, or any official or examiner
4    thereof duly accredited for the purpose. Nothing contained
5    in this Act shall be construed to limit the obligation
6    relative to examinations and reports of any savings bank in
7    which deposits are to any extent insured by the United
8    States or any agency thereof nor to limit in any way the
9    powers of the Commissioner with reference to examination
10    and reports of the savings bank.
11        (3) The Secretary Commissioner may furnish
12    confidential supervisory information to the appropriate
13    law enforcement authorities when the Secretary
14    Commissioner reasonably believes a savings bank, which the
15    Secretary Commissioner has caused to be examined, has been
16    a victim of a crime.
17        (4) The Secretary Commissioner may furnish
18    confidential supervisory information related to a savings
19    bank, which the Secretary Commissioner has caused to be
20    examined, to the administrator of the Uniform Disposition
21    of Unclaimed Property Act.
22        (5) The Secretary Commissioner may furnish
23    confidential supervisory information relating to a savings
24    bank, which the Secretary Commissioner has caused to be
25    examined, relating to its performance of obligations under
26    the Illinois Income Tax Act and the Illinois Estate and

 

 

SB1778- 57 -LRB098 09391 MGM 39532 b

1    Generation-Skipping Transfer Tax Act to the Illinois
2    Department of Revenue.
3        (6) The Secretary Commissioner may furnish
4    confidential supervisory information relating to a savings
5    bank, which the Secretary Commissioner has caused to be
6    examined, under the federal Currency and Foreign
7    Transactions Reporting Act, 31 United States Code, Section
8    1051 et seq.
9        (7) The Secretary Commissioner may furnish
10    confidential supervisory information to any other agency
11    or entity that the Secretary Commissioner determines to
12    have a legitimate regulatory interest.
13        (8) The Secretary Commissioner may furnish
14    confidential supervisory information as otherwise
15    permitted or required by this Act and may furnish
16    confidential supervisory information under any other
17    statute that by its terms or by regulations promulgated
18    thereunder requires the disclosure of financial records
19    other than by subpoena, summons, warrant, or court order.
20        (9) At the request of the affected savings bank, the
21    Secretary Commissioner may furnish confidential
22    supervisory information relating to the savings bank,
23    which the Secretary Commissioner has caused to be examined,
24    in connection with the obtaining of insurance coverage or
25    the pursuit of an insurance claim for or on behalf of the
26    savings bank; provided that, when possible, the Secretary

 

 

SB1778- 58 -LRB098 09391 MGM 39532 b

1    Commissioner shall disclose only relevant information
2    while maintaining the confidentiality of financial records
3    not relevant to such insurance coverage or claim and, when
4    appropriate, may delete identifying data relating to any
5    person.
6        (10) The Secretary Commissioner may furnish a copy of a
7    report of any examination performed by the Secretary
8    Commissioner of the condition and affairs of any electronic
9    data processing entity to the savings banks serviced by the
10    electronic data processing entity.
11        (11) In addition to the foregoing circumstances, the
12    Secretary Commissioner may, but is not required to, furnish
13    confidential supervisory information under the same
14    circumstances authorized for the savings bank pursuant to
15    subsection (b) of this Section, except that the Secretary
16    Commissioner shall provide confidential supervisory
17    information under circumstances described in paragraph (3)
18    of subsection (b) of this Section only upon the request of
19    the savings bank.
20    (b) A savings bank or its officers, agents, and employees
21may disclose confidential supervisory information only under
22the following circumstances:
23        (1) to the board of directors of the savings bank, as
24    well as the president, vice-president, cashier, and other
25    officers of the savings bank to whom the board of directors
26    may delegate duties with respect to compliance with

 

 

SB1778- 59 -LRB098 09391 MGM 39532 b

1    recommendations for action, and to the board of directors
2    of a savings bank holding company that owns at least 80% of
3    the outstanding stock of the savings bank or other
4    financial institution; .
5        (2) to attorneys for the savings bank and to a
6    certified public accountant engaged by the savings bank to
7    perform an independent audit; provided that the attorney or
8    certified public accountant shall not permit the
9    confidential supervisory information to be further
10    disseminated; .
11        (3) to any person who seeks to acquire a controlling
12    interest in, or who seeks to merge with, the savings bank;
13    provided that the person shall agree to be bound to respect
14    the confidentiality of the confidential supervisory
15    information and to not further disseminate the information
16    other than to attorneys, certified public accountants,
17    officers, agents, or employees of that person who likewise
18    shall agree to be bound to respect the confidentiality of
19    the confidential supervisory information and to not
20    further disseminate the information; .
21        (4) to the savings bank's insurance company, if the
22    supervisory information contains information that is
23    otherwise unavailable and is strictly necessary to
24    obtaining insurance coverage or pursuing an insurance
25    claim for or on behalf of the savings bank; provided that,
26    when possible, the savings bank shall disclose only

 

 

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1    information that is relevant to obtaining insurance
2    coverage or pursuing an insurance claim, while maintaining
3    the confidentiality of financial information pertaining to
4    customers; and provided further that, when appropriate,
5    the savings bank may delete identifying data relating to
6    any person; or .
7        (5) to any person conducting a review of the savings
8    bank on behalf of the savings bank for purposes of
9    complying with any enforcement action taken by a bank
10    regulatory agency, only if the bank obtains preapproval for
11    release of the confidential supervisory information by the
12    Secretary and the person agrees to maintain the
13    confidentiality of the confidential supervisory
14    information and to not further disseminate the
15    confidential supervisory information.
16    The disclosure of confidential supervisory information by
17a savings bank pursuant to this subsection (b) and the
18disclosure of information to the Secretary Commissioner or
19other regulatory agency in connection with any examination,
20visitation, or investigation shall not constitute a waiver of
21any legal privilege otherwise available to the savings bank
22with respect to the information.
23    (c) (1) Notwithstanding any other provision of this Act or
24any other law, confidential supervisory information shall be
25the property of the Secretary Commissioner and shall be
26privileged from disclosure to any person except as provided in

 

 

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1this Section. No person in possession of confidential
2supervisory information may disclose that information for any
3reason or under any circumstances not specified in this Section
4without the prior authorization of the Secretary Commissioner.
5Any person upon whom a demand for production of confidential
6supervisory information is made, whether by subpoena, order, or
7other judicial or administrative process, must withhold
8production of the confidential supervisory information and
9must notify the Secretary Commissioner of the demand, at which
10time the Secretary Commissioner is authorized to intervene for
11the purpose of enforcing the limitations of this Section or
12seeking the withdrawal or termination of the attempt to compel
13production of the confidential supervisory information.
14    (2) Any request for discovery or disclosure of confidential
15supervisory information, whether by subpoena, order, or other
16judicial or administrative process, shall be made to the
17Secretary Commissioner, and the Secretary Commissioner shall
18determine within 15 days whether to disclose the information
19pursuant to procedures and standards that the Secretary
20Commissioner shall establish by rule. If the Secretary
21Commissioner determines that such information will not be
22disclosed, the Secretary's Commissioner's decision shall be
23subject to judicial review under the provisions of the
24Administrative Review Law, and venue shall be in either
25Sangamon County or Cook County.
26    (3) Any court order that compels disclosure of confidential

 

 

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1supervisory information may be immediately appealed by the
2Secretary Commissioner, and the order shall be automatically
3stayed pending the outcome of the appeal.
4    (d) If any officer, agent, attorney, or employee of a
5savings bank knowingly and willfully furnishes confidential
6supervisory information in violation of this Section, the
7Secretary Commissioner may impose a civil monetary penalty up
8to $1,000 for the violation against the officer, agent,
9attorney, or employee.
10    (e)   Subject to the limits of this Section, the Secretary
11Commissioner also may promulgate regulations to set procedures
12and standards for disclosure of the following items:
13        (1) All fixed orders and opinions made in cases of
14    appeals of the Secretary's Commissioner's actions.
15        (2) Statements of policy and interpretations adopted
16    by the Secretary's Commissioner's office, but not
17    otherwise made public.
18        (3) Nonconfidential portions of application files,
19    including applications for new charters. The Secretary
20    Commissioner shall specify by rule as to what part of the
21    files are confidential.
22        (4) Quarterly reports of income, deposits, and
23    financial condition.
24(Source: P.A. 93-271, eff. 7-22-03.)
 
25    (205 ILCS 205/11001)  (from Ch. 17, par. 7311-1)

 

 

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1    Sec. 11001. Affirmative action to correct conditions
2resulting from violations of law, regulations, or orders or any
3other formal or informal enforcement actions from practices.
4The Commissioner is hereby granted authority to issue orders
5under this Act that require a savings bank or an
6institution-affiliated party to take affirmative action to
7correct any conditions resulting from any violations or
8practices cited with respect to the order. The order may
9require the savings bank or the institution-affiliated party
10to:
11        (1) Make restitution or provide reimbursement,
12    indemnification, or guarantees for or against losses if:
13            (A) the savings bank or the institution affiliated
14        party was unjustly enriched or received direct or
15        indirect personal benefit in connection with the
16        violation or practice; or
17            (B) the violation or practice involved a reckless
18        disregard for applicable laws, regulations, or written
19        agreements or written orders of the Commissioner or
20        other appropriate regulator.
21        (2) Restrict the savings bank's growth or institute
22    appropriate operating restrictions.
23        (3) Dispose of any loan or asset involved.
24        (4) Rescind agreements or contracts.
25        (5) Submit candidates for future directors, employees,
26    or officers to the Commissioner for approval.

 

 

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1        (6) Take any other actions the Commissioner deems
2    necessary.
3(Source: P.A. 86-1213.)
 
4    (205 ILCS 205/11008)  (from Ch. 17, par. 7311-8)
5    Sec. 11008. Unauthorized participation by convicted
6individual.
7    (a) Except with the prior written consent of the Secretary
8Commissioner, no savings bank shall knowingly employ or
9otherwise permit an individual to serve as an officer,
10director, employee, or agent of the savings bank if the
11individual person who has been convicted of a felony or any
12criminal offense involving dishonesty or a breach of trust may
13own or control directly or indirectly more than 0.001% of the
14capital stock of, receive benefit directly or indirectly from,
15or participate directly or indirectly in any manner in the
16affairs of a savings bank.
17    (b) A savings bank may not permit participation by a person
18described in subsection (a).
19    (c) Whoever knowingly violates subsection (a) or (b) is
20guilty of a Class 3 felony and may be fined not more than
21$10,000 for each day of violation.
22(Source: P.A. 91-97, eff. 7-9-99; 92-483, eff. 8-23-01.)
 
23    (205 ILCS 205/Art. 12.1 heading new)
24
ARTICLE 12.1. Effect of Repeal of

 

 

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1
Illinois Savings and Loan Act of 1985

 
2    (205 ILCS 205/12101 new)
3    Sec. 12101. Effect of repeal. This Article sets forth the
4effect of and means of transition necessitated by the repeal of
5the Illinois Savings and Loan Act of 1985.
 
6    (205 ILCS 205/12102 new)
7    Sec. 12102. Effect on existing associations. Any existing
8association organized under the Illinois Savings and Loan Act
9of 1985 shall be deemed, without approval of the association,
10its members, or the Secretary, to be a savings bank as if the
11association had been organized under this Act. The resulting
12savings bank, from the date of the repeal of the Illinois
13Savings and Loan Act of 1985, shall be operated in accordance
14with this Act and the rules established pursuant to this Act.
 
15    (205 ILCS 205/12103 new)
16    Sec. 12103. Definitions. For purposes of this Article,
17terms are defined as follows:
18    "Existing association" means an association organized or,
19except for existing foreign associations, otherwise operating
20under the Illinois Savings and Loan Act of 1985 at the time
21that Act was repealed pursuant to this amendatory Act of the
2298th General Assembly.
23    "Existing foreign association" means an association or

 

 

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1savings bank organized under the laws of any other state,
2territory, or country, but not including an association or
3savings bank chartered under the laws of the United States,
4that, at the time of the repeal of the Illinois Savings and
5Loan Act of 1985, operated in this State under Article 2B of
6the Illinois Savings and Loan Act of 1985.
7    "Representative office" shall have the meaning ascribed to
8it in Section 2 of the Foreign Bank Representative Office Act.
9    "Resulting savings bank" means a savings bank under this
10Act that was an existing association that is deemed to be a
11savings bank pursuant to Section 12102 of this Act.
 
12    (205 ILCS 205/12104 new)
13    Sec. 12104. Charter, bylaws, and directors of resulting
14savings bank.
15    (a) The statement of incorporation, charter, or
16certificate of complete organization of any existing
17association shall be deemed to be the charter of the resulting
18savings bank until such time, which shall be no more than one
19year after the date of the repeal of the Illinois Savings and
20Loan Act of 1985, articles of incorporation in compliance with
21this Act and the rules established pursuant to this Act are
22proposed by the resulting savings bank and are approved by and
23a charter issued accordingly by the Secretary.
24    (b) The bylaws of any existing association shall be deemed
25to be the bylaws of the resulting savings bank until such time,

 

 

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1which shall be no more than one year after the date of the
2repeal of the Illinois Savings and Loan Act of 1985, bylaws in
3compliance with this Act and the rules established pursuant to
4this Act are adopted by the resulting savings bank. The
5resulting savings bank shall promptly notify the Secretary of
6the adoption of these bylaws.
7    (c) The directors of any existing association shall be
8deemed to be the directors of the resulting savings bank until
9the first election of directors after the existing association
10is deemed a savings bank under Section 12102 of this Act, or
11until expiration of their terms as directors, and shall have
12the power to manage the resulting savings bank pursuant to this
13Act.
14    (d) Except as it relates to the terms of directors, the
15Secretary for good cause may extend up to one year the time
16limits imposed by this Section.
17    (e) The Secretary shall charge no fee for actions
18undertaken by a resulting savings bank to comply with this
19Section.
 
20    (205 ILCS 205/12105 new)
21    Sec. 12105. Powers of resulting savings bank. A resulting
22savings bank shall have all the rights, privileges, and powers
23granted by this Act and other laws applicable to savings banks,
24and the entire assets, business, and goodwill of the existing
25association shall be vested in the resulting savings bank

 

 

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1without deed or transfer, provided the resulting savings bank
2may execute deeds or instruments of conveyance as may be
3convenient to confirm such transfer, and such resulting savings
4bank shall assume and be liable for all debts, accounts,
5undertaking, contractual obligations, and liabilities of the
6existing association.
 
7    (205 ILCS 205/12106 new)
8    Sec. 12106. Obligations of resulting savings bank. The
9resulting savings bank shall be subject to the duties,
10relations, obligations, trusts, and liabilities of the
11existing association, whether as debtor, depository,
12registrar, transfer agent, executor, administrator, trustee,
13or otherwise and shall be liable to pay and discharge all such
14debts and liabilities, to perform all such duties, and to
15administer all such trusts in the same manner and to the same
16extent as if the resulting savings bank had itself incurred the
17obligation or liability or assumed the duty, relation, or
18trust; and all rights of creditors and all liens upon property
19of the resulting savings bank shall be entitled to receive,
20accept, collect, hold, and enjoy any and all gifts, bequests,
21devises, conveyances, trusts, and appointments in favor of or
22in the name of the existing association, whether made or
23created to take effect before or after the establishment of the
24resulting savings bank.
 

 

 

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1    (205 ILCS 205/12107 new)
2    Sec. 12107. Effect on special funds.
3    (a) The Savings and Residential Finance Regulatory Fund
4established under Section 7-19.1 of the Illinois Savings and
5Loan Act of 1985 is hereby re-designated the Residential
6Finance Regulatory Fund. The fund shall continue in existence
7under the Illinois Residential Mortgage License Act of 1987, as
8amended, without interruption and shall retain all moneys
9therein, except moneys required to be transferred or returned
10from the Savings and Residential Finance Regulatory Fund, now
11designated the Residential Finance Regulatory Fund, to the
12Savings Institutions Regulatory Fund pursuant to subsection
13(e) of Section 7-19.2 of the Illinois Savings and Loan Act of
141985 shall continue to be required to be transferred or
15returned to the Savings Institutions Regulatory Fund as if
16subsection (e) of Section 7-19.2 of the Illinois Savings and
17Loan Act of 1985 had not been repealed.
18    (b) The Savings Institutions Regulatory Fund established
19under Section 7-19.2 of the Illinois Savings and Loan Act of
201985 shall continue in existence under Section 9002.1 of this
21Act without interruption and shall retain all moneys therein.
 
22    (205 ILCS 205/12108 new)
23    Sec. 12108. Effect on foreign associations. Any existing
24foreign association shall be deemed to be an out-of-state
25savings bank under this Act. Notwithstanding any other

 

 

SB1778- 70 -LRB098 09391 MGM 39532 b

1provision of this Act or the Foreign Bank Representative Office
2Act, an existing foreign association may retain any branch or
3office in the State that properly existed in the State at the
4time of the repeal of the Illinois Savings and Loan Act of 1985
5and continue to engage in the same activities in the State
6therefrom as were engaged in at the time of the repeal of the
7Illinois Savings and Loan Act without further application or
8notice to or approval of the Secretary. An existing foreign
9association that maintains a representative office in Illinois
10at the time of the repeal of the Illinois Savings and Loan Act
11of 1985 shall be issued a license and shall be subject to the
12Foreign Bank Representative Office Act in accordance with
13Section 9 of that Act.
 
14    (205 ILCS 205/12109 new)
15    Sec. 12109. Effect on the Board of Savings Institutions.
16The Board shall continue to operate without interruption and as
17if it had been originally established under Article 12.2 of
18this Act. The members of the Board of Savings Institutions
19serving on the effective date of this amendatory Act of the
2098th General Assembly shall continue to serve the balance of
21their terms.
 
22    (205 ILCS 205/12110 new)
23    Sec. 12110. Applicability of other Acts. Whenever in any
24Act the terms "savings and loan", "building and loan", "mutual

 

 

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1building loan and homestead", "building loan and homestead", or
2other similar name are used with reference to an association
3organized for the purposes of associations incorporated under
4the Illinois Savings and Loan Act of 1985 or a similar act,
5such reference shall be applicable to a savings banks operating
6under this Act. Whenever in any Act the terms "members",
7"shareholders" or "investors" are used in connection with such
8associations, however named, the same shall refer to members
9and holders of capital of savings banks operating under this
10Act.
 
11    (205 ILCS 205/Art. 12.2 heading new)
12
ARTICLE 12.2. Board of Savings Institutions

 
13    (205 ILCS 205/12201 new)
14    Sec. 12201. Board of Savings Institutions; appointment.
15The Board of Savings Institutions shall be composed of the
16Director of Banking, who shall be its chairman and have power
17to vote, and 7 additional persons appointed by the Governor.
18Three of the 7 persons appointed by the Governor shall
19represent the public interest. Four of the 7 additional persons
20appointed by the Governor shall have been engaged actively in
21savings and loan or savings bank management in this State for
22at least 5 years immediately prior to appointment. Each member
23of the Board appointed by the Governor shall be reimbursed for
24ordinary and necessary expenses incurred in attending the

 

 

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1meetings of the Board. Members, excluding the chairman, shall
2be appointed for 4-year terms to expire on the third Monday in
3January. Except as otherwise provided in this Section, members
4of the Board shall serve until their respective successors are
5appointed and qualified. A member who tenders a written
6resignation shall serve only until the resignation is accepted
7by the chairman. The chairman may remove a member who fails to
8attend 3 consecutive Board meetings without an excused absence.
9The Governor shall fill any vacancy by the appointment of a
10member for the unexpired term in the same manner as in the
11making of original appointments.
 
12    (205 ILCS 205/12202 new)
13    Sec. 12202. Board of Savings Institutions; organization
14and meetings. The Board of Savings Institutions shall adopt
15bylaws for the holding and conducting of meetings and shall
16keep a record of all meetings and transactions and make such
17other provisions for the daily conduct of its business as it
18deems necessary. A majority of the members of the Board,
19excluding those members who are no longer serving as members as
20provided in Section 12201 of this Act, shall constitute a
21quorum. The act of the majority of the members of the Board
22present at a meeting at which a quorum is present shall be the
23act of the Board. Regular meetings shall be held as provided in
24the bylaws and special meetings may be called by the chairman
25or upon the request of any 3 members of the Board. The Board

 

 

SB1778- 73 -LRB098 09391 MGM 39532 b

1shall maintain permanent records of its meetings, hearings, and
2decisions at the office of the chairman. The chairman shall
3provide adequate quarters and personnel for use by the Board.
 
4    (205 ILCS 205/12203 new)
5    Sec. 12203. Board of Savings Institutions; powers. The
6Board of Savings Institutions shall have the following powers:
7        (1) to advise the Governor and Secretary on all matters
8    relating to the regulation of savings banks; and
9        (2) to advise the Governor on legislation proposed to
10    amend this Act or any related Act.
 
11    (205 ILCS 105/Act rep.)
12    Section 20. The Illinois Savings and Loan Act of 1985 is
13repealed.
 
14    (205 ILCS 205/1007.70 rep.)
15    (205 ILCS 205/9017 rep.)
16    Section 25. The Savings Bank Act is amended by repealing
17Sections 1007.70 and 9017.
 
18    Section 99. Effective date. This Act takes effect upon
19becoming law.

 

 

SB1778- 74 -LRB098 09391 MGM 39532 b

1 INDEX
2 Statutes amended in order of appearance
3    20 ILCS 3205/5from Ch. 17, par. 455
4    30 ILCS 105/5.214from Ch. 127, par. 141.214
5    30 ILCS 105/8.12from Ch. 127, par. 144.12
6    205 ILCS 205/1007.130
7    205 ILCS 205/1008from Ch. 17, par. 7301-8
8    205 ILCS 205/2007from Ch. 17, par. 7302-7
9    205 ILCS 205/3003from Ch. 17, par. 7303-3
10    205 ILCS 205/4007from Ch. 17, par. 7304-7
11    205 ILCS 205/4008from Ch. 17, par. 7304-8
12    205 ILCS 205/4010from Ch. 17, par. 7304-10
13    205 ILCS 205/4013from Ch. 17, par. 7304-13
14    205 ILCS 205/6002from Ch. 17, par. 7306-2
15    205 ILCS 205/6013from Ch. 17, par. 7306-13
16    205 ILCS 205/6014from Ch. 17, par. 7306-14
17    205 ILCS 205/8006from Ch. 17, par. 7308-6
18    205 ILCS 205/8012from Ch. 17, par. 7308-12
19    205 ILCS 205/9002from Ch. 17, par. 7309-2
20    205 ILCS 205/9002.1 new
21    205 ILCS 205/9002.5
22    205 ILCS 205/9012from Ch. 17, par. 7309-12
23    205 ILCS 205/11001from Ch. 17, par. 7311-1
24    205 ILCS 205/11008from Ch. 17, par. 7311-8

 

 

SB1778- 75 -LRB098 09391 MGM 39532 b

1    205 ILCS 205/Art. 12.1
2    heading new
3    205 ILCS 205/12101 new
4    205 ILCS 205/12102 new
5    205 ILCS 205/12103 new
6    205 ILCS 205/12104 new
7    205 ILCS 205/12105 new
8    205 ILCS 205/12106 new
9    205 ILCS 205/12107 new
10    205 ILCS 205/12108 new
11    205 ILCS 205/12109 new
12    205 ILCS 205/12110 new
13    205 ILCS 205/Art. 12.2
14    heading new
15    205 ILCS 205/12201 new
16    205 ILCS 205/12202 new
17    205 ILCS 205/12203 new
18    205 ILCS 105/Act rep.
19    205 ILCS 205/1007.70 rep.
20    205 ILCS 205/9017 rep.