Full Text of SB2553 93rd General Assembly
SB2553 93RD GENERAL ASSEMBLY
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93RD GENERAL ASSEMBLY
State of Illinois
2003 and 2004 SB2553
Introduced 2/3/2004, by Terry Link SYNOPSIS AS INTRODUCED: |
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205 ILCS 5/37 |
from Ch. 17, par. 347 |
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Amends the Illinois Banking Act. Provides that a state bank may acquire or hold shares of its own securities as authorized by the Act. Effective immediately.
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A BILL FOR
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SB2553 |
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LRB093 19593 SAS 45334 b |
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| AN ACT concerning financial regulation.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Illinois Banking Act is amended by changing | 5 |
| Section 37 as follows:
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| (205 ILCS 5/37) (from Ch. 17, par. 347)
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| Sec. 37. Loans to officers and loans on and purchases of | 8 |
| bank's own
stock.
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| (1) No state bank shall make any loan or
extension of | 10 |
| credit in excess of the limits, as determined by the
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| Commissioner, at any one time outstanding each to its | 12 |
| president, or to any
of its vice presidents or its salaried | 13 |
| officers or employees or directors
or to corporations or firms, | 14 |
| controlled by them, or in the management of
which any of them | 15 |
| are actively engaged, unless such loan or extension of
credit | 16 |
| shall have been first
approved, by the board of directors. The | 17 |
| Commissioner shall prescribe such
limits by rules.
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| (2) It shall not be lawful for a state bank to make any | 19 |
| loan or
discount on the security of the shares of its own | 20 |
| capital stock or
preferred stock or on the security of its own | 21 |
| debentures or evidences of
debt which are either convertible | 22 |
| into capital stock or are junior or
subordinate in right of | 23 |
| payment to deposit or other liabilities of the
bank ; however, a | 24 |
| state bank may acquire or hold such shares or securities as | 25 |
| authorized by Section 14 of this Act .
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| (3)(a) For purposes of this Section, "control" means (i) | 27 |
| ownership,
control, or power to vote 25% or more of the | 28 |
| outstanding shares of
any class of voting security of the | 29 |
| corporation or firm, directly or
indirectly, or acting through | 30 |
| or in concert with one or more other
persons; (ii) control in | 31 |
| any manner over the election of a majority
of the directors of | 32 |
| the corporation or firm; or (iii) the power to exercise
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SB2553 |
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LRB093 19593 SAS 45334 b |
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| controlling influence over the management or policies of the
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| corporation or firm, directly or indirectly, or acting through | 3 |
| or in
concert with one or more persons.
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| (3)(b) A person does not have the power to exercise a | 5 |
| controlling
influence over the management or policies of a | 6 |
| corporation or firm
solely by virtue of the person's position | 7 |
| as an officer or director of
the corporation or firm.
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| (3)(c) A person is presumed to have control, including the | 9 |
| power to
exercise a controlling influence over the management | 10 |
| or policies, of
a corporation or firm if:
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| (i) the person:
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| (A) is an executive officer, director, or | 13 |
| individual
exercising similar functions of the | 14 |
| corporation or firm; and
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| (B) directly or indirectly owns, controls, or has | 16 |
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power to vote more than 10% of any class of voting
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| securities of the corporation or firm; or
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| (ii) (A) the person directly or indirectly owns, | 19 |
| controls,
or has the power to vote more than 10% of any | 20 |
| class of
voting securities of the corporation or firm; | 21 |
| and
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| (B) no other person directly or indirectly owns,
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| controls, or has the power to vote a greater percentage | 24 |
| of that
class of voting securities.
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| (3)(d) A person may rebut a presumption established under | 26 |
| subdivision (3)(c)
of this Section by submitting written | 27 |
| materials that, in the Commissioner's
judgment, demonstrate an | 28 |
| absence of control.
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| (Source: P.A. 92-483, eff. 8-23-01.)
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| Section 99. Effective date. This Act takes effect upon | 31 |
| becoming law.
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