093_SB0771ham001

 










                                     LRB093 03108 SAS 20061 a

 1                    AMENDMENT TO SENATE BILL 771

 2        AMENDMENT NO.     .  Amend Senate Bill 771, by  replacing
 3    everything after the enacting clause with the following:

 4        "Section  5.   The  Illinois  Banking  Act  is amended by
 5    changing Section 34 as follows:

 6        (205 ILCS 5/34) (from Ch. 17, par. 342)
 7        Sec. 34. Exceptions to loans and investment  limits.  The
 8    limitations in Sections 32, 33, and 35.1 of this Act upon the
 9    liabilities  of  any  one  person  and  upon the purchase and
10    holding of marketable investment securities shall not apply:
11        (1)  To the extent of 50% of the unimpaired  capital  and
12    unimpaired surplus of any bank, to loans to or obligations of
13    any  person to the extent that the loan shall be secured by a
14    like amount of obligations of or  guaranteed  by  the  United
15    States  or  by  the State of Illinois, or by a like amount of
16    obligations of  any  corporation  wholly  owned  directly  or
17    indirectly   by  the  United  States  or  of  any  agency  or
18    instrumentality of the United  States  or  of  the  State  of
19    Illinois,  including  any  unit of local government or school
20    district, provided that the total liabilities to any bank  of
21    any  one  person  shall  not  exceed  50%  of such unimpaired
22    capital and unimpaired surplus.
 
                            -2-      LRB093 03108 SAS 20061 a
 1        (2)  To the extent of 30% of the unimpaired  capital  and
 2    unimpaired surplus of any bank, to loans to or obligations of
 3    any  person  to  the extent that the same shall be secured by
 4    shipping documents or instruments  transferring  or  securing
 5    title  covering  livestock or giving a lien on livestock when
 6    the market value of the livestock securing the obligation  is
 7    not  at  the time of the making of the loan less than 115% of
 8    the principal amount of the  obligation,  provided  that  the
 9    total  liabilities  to  any  bank of any one person shall not
10    exceed 50% of the unimpaired capital and unimpaired surplus.
11        (3)  To  the  extent  of  the  unimpaired   capital   and
12    unimpaired surplus of any bank, to the purchase of or holding
13    by  any  bank of the general obligations of each municipality
14    located in the State of Illinois or in any other state of the
15    United States or to the purchase of or  holding  of  the  tax
16    anticipation warrants of each such municipality.
17        (4)  To  the  obligations  as  endorser,  whether with or
18    without recourse, or as  guarantor,  whether  conditional  or
19    unconditional,  of  negotiable  or  nonnegotiable installment
20    consumer paper of the person transferring  the  same  if  the
21    bank's  files  or  the  knowledge  of  its  officers  of  the
22    financial  condition  of  each  maker of those obligations is
23    reasonably adequate and if an officer of the bank, designated
24    for that purpose by the  board  of  directors  of  the  bank,
25    certifies  that  the  responsibility  of  each  maker  of the
26    obligations has been evaluated and that the bank  is  relying
27    primarily upon each maker for the payment of the obligations;
28    certification  shall  be  in writing and shall be retained as
29    part of the records of the bank.
30        (5)  To the issuance, advice, or confirmation of  letters
31    of  credit;  however,  if  the  letter of credit is a standby
32    letter of credit, it shall be included within the limit under
33    Section 32 for the person who has procured  the  issuance  of
34    the  standby letter of credit unless the issuing bank has, at
 
                            -3-      LRB093 03108 SAS 20061 a
 1    the time of issuance, an irrevocable  commitment  by  another
 2    bank  to  purchase  or  participate  out any amounts that may
 3    later be drawn under the letter of credit that would create a
 4    loan in excess of the limits under Section 32 for the  person
 5    or  the  amounts  are  secured  by  pledge  of  United States
 6    government securities,  a   segregated  deposit  account,  or
 7    other  security  that  would  exempt  a  loan  so  secured by
 8    application of Section 34 or 35 of this Act; if,  however,  a
 9    commitment  to  purchase  or  participate  is  in  place, the
10    amounts are not included in the limits under Section  32  for
11    the person until drafts are presented upon the letter.
12        (6)  To  the  acceptance  of  drafts or bills of exchange
13    that grow out of transactions involving  the  importation  or
14    exportation  of  goods;  or  that  grow  out  of transactions
15    involving the domestic shipment of goods, provided  documents
16    of  title  covering  the  goods secure the acceptances at the
17    time of acceptance; or  that  are  secured  at  the  time  of
18    acceptances by documents of title covering readily marketable
19    staples; but the aggregate amount of these acceptances by any
20    State  bank  on  behalf  of  any  one  person at any one time
21    outstanding shall not exceed 20% of  the  unimpaired  capital
22    and unimpaired surplus of the bank unless the part thereof in
23    excess of that percentum of unimpaired capital and unimpaired
24    surplus  is and will remain secured by accompanying documents
25    of  title  or  proceeds  thereof  growing  out  of  the  same
26    transaction or by substituted security of similar  character;
27    provided  further,  however, that the aggregate amount of the
28    acceptances on behalf of any one person  outstanding  at  any
29    one  time  shall  not  exceed 50% of the amount of unimpaired
30    capital and unimpaired surplus of the bank. The provisions of
31    this paragraph (6) apply to the acceptances by a  State  bank
32    on  behalf  of  any  one  person and not to the purchase by a
33    State bank of other banks' acceptances.   A  State  bank  may
34    purchase  acceptances  from  other  banks  in  amounts not to
 
                            -4-      LRB093 03108 SAS 20061 a
 1    exceed  50%  of  the  State  bank's  unimpaired  capital  and
 2    unimpaired surplus from any one bank.
 3        (7)  To the extent of 20% of the unimpaired  capital  and
 4    unimpaired surplus of any bank, to the purchase of or holding
 5    by  any  bank  of  obligations  of  the  State  of  Israel or
 6    obligations fully guaranteed by the State  of  Israel  as  to
 7    payment of principal and interest.
 8        (8)  To  the  purchase  of  stock  in a Federal Home Loan
 9    Bank.
10    (Source: P.A. 90-301, eff. 8-1-97.)

11        Section 99.  Effective date.  This Act takes effect  upon
12    becoming law.".