Full Text of SB2710 93rd General Assembly
SB2710eng 93RD GENERAL ASSEMBLY
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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 21.2 and by adding Section 21.4 as follows:
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| (205 ILCS 5/21.2)
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| Sec. 21.2. Interstate mergers; minimum age requirement.
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| (a) No out of state bank and no national bank whose main | 9 |
| banking premises is
located in a state other than Illinois | 10 |
| shall merge with or into, or shall
acquire all or substantially | 11 |
| all of the assets of an Illinois bank that has
existed and | 12 |
| continuously operated as a bank for 5 years or less.
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| (b) For purposes of subsection (a) of this Section, an | 14 |
| Illinois bank that is
the resulting bank following a merger | 15 |
| involving an Illinois interim bank shall
be considered to have | 16 |
| been in existence and continuously operated during the
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| existence and continuous operation of the Illinois merged bank. | 18 |
| As used in this
subsection (b), the words "interim bank" shall | 19 |
| mean a bank which shall not
accept deposits, make loans, pay | 20 |
| checks, or engage in the general business of
banking or any | 21 |
| part thereof, and is chartered solely for the purpose of | 22 |
| merging
with or acquiring control of, or acquiring all or | 23 |
| substantially all of the
assets of an existing Illinois bank.
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| (c) The provisions of subsection (a) of the Section shall | 25 |
| not apply to the
merger or acquisition of all or substantially | 26 |
| all of the assets of an Illinois
bank:
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| (1) if the merger or acquisition is part of a purchase | 28 |
| or acquisition with
respect to which the Federal Deposit | 29 |
| Insurance Corporation provides assistance
under Section | 30 |
| 13(c) of the Federal Deposit Insurance Act; or
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| (2) if the Illinois bank is in default or in danger of | 32 |
| default ; or |
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| (3) if the out of state bank or national bank has its | 2 |
| main banking premises in a state that is deemed to be | 3 |
| reciprocal with Illinois and would be eligible to establish | 4 |
| a branch pursuant to Section 21.4 of this Act .
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| (Source: P.A. 90-226, eff. 7-25-97.)
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| (205 ILCS 5/21.4 new) | 7 |
| Sec. 21.4. Out-of-state banks establishing branches.
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| (a) No out-of-state bank and no national bank whose main | 9 |
| banking premises is located in a state other than Illinois | 10 |
| shall establish a branch in this State, other than a branch | 11 |
| authorized pursuant to Section 21.1 of this Act, unless: | 12 |
| (1) the laws of the state in which such out-of-state | 13 |
| bank or national bank has its main banking premises permit | 14 |
| such out-of-state bank or national bank to establish a | 15 |
| branch in this State; | 16 |
| (2) such out-of-state bank or national bank has its | 17 |
| main banking premises in a state that permits a State bank | 18 |
| to establish a branch in that state pursuant to terms and | 19 |
| conditions that are deemed to be reciprocal with the | 20 |
| provisions of this Act; and
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| (3) such out-of-state bank obtains a certificate of | 22 |
| authority from, or provides notice to, the Commissioner as | 23 |
| provided in subsection (b) of this Section. | 24 |
| (b) Before such out-of-state bank may establish a branch in | 25 |
| this State, the out-of-state bank must obtain a certificate of | 26 |
| authority from the Commissioner. The out-of-state bank must | 27 |
| file an application for a certificate of authority on a form | 28 |
| prescribed by the Commissioner.
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| The application for a certificate of authority shall not be | 30 |
| required if the state in which the out-of-state bank is | 31 |
| chartered permits a state bank to establish a branch in that | 32 |
| state without filing an application. An out-of-state bank | 33 |
| chartered in such a state may establish a branch in this State | 34 |
| pursuant to this Section after providing the Commissioner with | 35 |
| written notice. The Commissioner may prescribe the form of such |
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| notice and may accept a copy of a notice or application | 2 |
| provided by the out-of-state bank to its chartering authority | 3 |
| or to its appropriate federal banking agency.
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| (c) The determination of whether the laws of the state in | 5 |
| which such out-of-state bank or national bank has its main | 6 |
| banking premises are reciprocal with the provisions of this Act | 7 |
| shall be made in writing by the Commissioner. The Commissioner | 8 |
| shall not make a finding of reciprocity unless the Commissioner | 9 |
| determines that the laws of the other state permit a State bank | 10 |
| to establish a branch in such other state under terms and | 11 |
| conditions that are substantially similar to the provisions of | 12 |
| this Section. The Commissioner shall consider, at a minimum, | 13 |
| whether the laws of such other state discriminate in any way | 14 |
| against a State bank and whether the laws of such other state | 15 |
| impose administrative or regulatory burdens that are | 16 |
| substantially more restrictive than those imposed by this Act | 17 |
| on an out-of-state bank or national bank seeking to establish a | 18 |
| branch in this State. | 19 |
| (d) After such out-of-state bank or national bank lawfully | 20 |
| establishes a branch in this State pursuant to the provisions | 21 |
| of this Section, such out-of-state bank or national bank may | 22 |
| establish and maintain additional branches in this State to the | 23 |
| same extent as a State bank. An out-of-state bank shall provide | 24 |
| written notice to the Commissioner of its intent to establish | 25 |
| an additional branch or branches in this State within 30 days | 26 |
| after receiving approval from the appropriate federal banking | 27 |
| agency to establish the branch or branches. The form of the | 28 |
| notice shall be specified by the Commissioner. | 29 |
| (e) A branch of an out-of-state bank may not conduct any | 30 |
| activity that is not authorized for a State bank.
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| Section 10. The Illinois Bank Holding Company Act of 1957 | 32 |
| is amended by changing Section 3.071 as follows:
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| (205 ILCS 10/3.071) (from Ch. 17, par. 2510.01)
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| Sec. 3.071. Out of state bank holding companies.
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| (a) An out of state bank holding company may acquire | 2 |
| ownership of more
than 5% of the voting shares of or control of | 3 |
| one or more Illinois banks or
Illinois bank holding companies | 4 |
| pursuant to a transaction, occurrence or
event that is | 5 |
| described in paragraphs (1) through (5) of subsection (a) of
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| Section 3.02, provided the acquisition is made in accordance | 7 |
| with Sections 3.02
and 3.07 of this Act in accordance with | 8 |
| subsection (i) of this Section and
provided the following | 9 |
| conditions
are met:
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| (1) (Blank).
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| (2) An out of state bank holding company seeking to | 12 |
| acquire an
Illinois bank or Illinois bank holding company | 13 |
| pursuant to subsection (a)
of Section 3.071 shall, if | 14 |
| change in control of the bank is governed by
Section 18 of | 15 |
| the Illinois Banking Act, file with the Commissioner the | 16 |
| application required by that Section containing
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| information satisfactory to the Commissioner.
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| (b) (Blank).
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| (c) (Blank).
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| (d) (Blank).
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| (e) (Blank).
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| (f) (Blank).
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| (g) (Blank).
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| (h) (Blank).
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| (i) (1) An out of state bank holding company which directly | 26 |
| or indirectly
controls or has control over an Illinois bank | 27 |
| that has existed and continuously
operated as a bank for 5 | 28 |
| years or less, may not cause the Illinois bank to
merge | 29 |
| with or into, or to have all or substantially all of the | 30 |
| assets acquired
by a bank that is an out of state bank.
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| (2) For purposes of subsection (i)(1) of this Section, | 32 |
| an Illinois bank
that is the resulting bank following a | 33 |
| merger involving an Illinois interim
bank shall be | 34 |
| considered to have been in existence and continuously | 35 |
| operated
during the existence and continuous operation of | 36 |
| the Illinois merged bank. As
used in this subsection |
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| (i)(2), the words
"resulting bank" and "merged bank" shall | 2 |
| have the meanings ascribed to those
words in Section 2 of | 3 |
| the Illinois Banking Act. As used in this subsection
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| (i)(2), the words "interim bank" shall mean a bank which | 5 |
| shall not accept
deposits, make loans, pay checks, or | 6 |
| engage in the general business of banking
or any part | 7 |
| thereof, and is chartered solely for the purpose of merging | 8 |
| with or
acquiring control of, or acquiring all or | 9 |
| substantially all of the assets of an
existing Illinois | 10 |
| bank.
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| (3) The provisions of subsection (i)(1) of this Section | 12 |
| shall not apply to
the merger or acquisition of all or | 13 |
| substantially all of the assets of an
Illinois bank:
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| (i) if the merger or acquisition is part of a | 15 |
| purchase or acquisition
with respect to which the | 16 |
| Federal Deposit Insurance Corporation provides
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| assistance under Section 13(c) of the Federal Deposit | 18 |
| Insurance Act; or
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| (ii) if the Illinois bank is in default or in | 20 |
| danger of default. As
used in this subsection | 21 |
| (i)(3)(ii), the words "in default"
and "in danger of | 22 |
| default" shall have the meaning ascribed to those words | 23 |
| in
Section 2 of the Illinois Banking Act ; or
.
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| (iii) if the bank with which the Illinois bank is | 25 |
| being merged or that is acquiring all or substantially | 26 |
| all of the assets of the Illinois bank has its main | 27 |
| banking premises in a state that is deemed to be | 28 |
| reciprocal with Illinois and would be eligible to | 29 |
| establish a branch pursuant to Section 21.4 of the | 30 |
| Illinois Banking Act.
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| (Source: P.A. 89-208, eff. 9-29-95; 89-567, eff. 7-26-96; | 32 |
| 90-226, eff.
7-25-97; 90-655, eff. 7-30-98.)
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| Section 15. The Savings Bank Act is amended by changing | 34 |
| Section 1006 and by adding Sections 1006.05 and 1007.130 as | 35 |
| follows:
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| (205 ILCS 205/1006) (from Ch. 17, par. 7301-6)
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| Sec. 1006. Parity.
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| (a) Subject to the regulation of the Commissioner and in | 4 |
| addition to the
powers granted by this Act, each savings bank | 5 |
| operating under this Act shall
possess those powers granted by | 6 |
| regulation promulgated under the Federal
Deposit Insurance Act | 7 |
| for state savings banks.
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| (b) A savings bank may establish branches or offices at | 9 |
| which savings or
investments are regularly received or loans | 10 |
| approved as follows:
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| (1) to the extent branch powers and offices are granted
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| to State banks under the Illinois Banking Act;
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| (2) within the geographic area defined in Article 2 of | 14 |
| this Act
and subject to the provisions of Article 2 of this | 15 |
| Act;
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| (3) within the same geographic areas or states as those | 17 |
| states from
which a holding company is permitted to acquire | 18 |
| an Illinois savings bank or
an Illinois savings bank | 19 |
| holding company;
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| (4) to the same extent that holding companies and | 21 |
| savings and loan
associations headquartered outside the | 22 |
| State of Illinois are allowed to
operate in Illinois by | 23 |
| virtue of Articles 1A and 2B of the Illinois Savings
and | 24 |
| Loan Act of 1985;
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| (5) as the result of mergers, consolidations, or bulk | 26 |
| sales of
facilities in the case of relocations ; and
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| (6) to the extent the Commissioner deems states to be | 28 |
| reciprocal under the provisions of Section 1006.05 of this | 29 |
| Act.
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| (c) The Commissioner may adopt regulations that provide for | 31 |
| the
establishment of branches as defined by the Commissioner.
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| (d) Notwithstanding any other provision of this Act, a | 33 |
| savings bank that
purchases or assumes all or any part of the | 34 |
| assets or liabilities of a bank,
savings bank, or savings and | 35 |
| loan association or merges or consolidates with a
bank, savings |
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| bank, or savings and loan association may retain and maintain | 2 |
| the
main premises or branches of the former bank, savings bank, | 3 |
| or savings and loan
association as branches of the purchasing, | 4 |
| merging, or consolidating savings
bank, provided it assumes the | 5 |
| deposit liabilities of the bank, savings bank, or
savings and | 6 |
| loan association maintained at the main premises or branches.
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| (e) A savings bank has any power reasonably incident,
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| convenient, or useful
to
the accomplishment of the powers | 9 |
| conferred upon
the savings bank by this Act.
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| (Source: P.A. 89-74, eff. 6-30-95; 90-301, eff. 8-1-97; 90-665, | 11 |
| eff. 7-30-98.)
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| (205 ILCS 205/1006.05 new)
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| Sec. 1006.05. Out-of-state savings banks establishing | 14 |
| branches. | 15 |
| (a) No out-of-state savings bank whose main banking | 16 |
| premises is located in a state other than Illinois shall | 17 |
| establish a branch in this State, other than a branch | 18 |
| authorized pursuant to any other provision of this Act, unless: | 19 |
| (1) the laws of the state in which such out-of-state | 20 |
| savings bank has its main banking premises permit the | 21 |
| out-of-state savings bank to establish a branch in this | 22 |
| State; | 23 |
| (2) the out-of-state savings bank has its main banking | 24 |
| premises in a state that permits an Illinois State savings | 25 |
| bank to establish a branch in that state pursuant to terms | 26 |
| and conditions that are deemed to be reciprocal with the | 27 |
| provisions of this Act; and | 28 |
| (3) the out-of-state savings bank obtains a | 29 |
| certificate of authority from, or provides notice to, the | 30 |
| Commissioner as provided in subsection (b) of this Section. | 31 |
| (b) Before the out-of-state savings bank may establish a | 32 |
| branch in this State, the out-of-state savings bank must obtain | 33 |
| a certificate of authority from the Commissioner. The | 34 |
| out-of-state savings bank must file an application for a | 35 |
| certificate of authority on a form prescribed by the |
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| Commissioner. | 2 |
| The application for a certificate of authority shall not be | 3 |
| required if the state in which the out-of-state savings bank is | 4 |
| chartered permits an Illinois State savings bank to establish a | 5 |
| branch in that state without filing an application. An | 6 |
| out-of-state savings bank chartered in such a state may | 7 |
| establish a branch in this State pursuant to this Section after | 8 |
| providing the Commissioner with written notice. The | 9 |
| Commissioner may prescribe the form of such notice and may | 10 |
| accept a copy of a notice or application provided by the | 11 |
| out-of-state savings bank to its chartering authority. | 12 |
| (c) The determination of whether the laws of the state in | 13 |
| which the out-of-state savings bank has its main banking | 14 |
| premises are reciprocal with the provisions of this Act shall | 15 |
| be made in writing by the Commissioner. The Commissioner shall | 16 |
| not make a finding of reciprocity unless the Commissioner | 17 |
| determines that the laws of the other state permit an Illinois | 18 |
| State savings bank to establish a branch in the other state | 19 |
| under terms and conditions that are substantially similar to | 20 |
| the provisions of this Section. The Commissioner shall | 21 |
| consider, at a minimum, whether the laws of the other state | 22 |
| discriminate in any way against an Illinois State savings bank | 23 |
| and whether the laws of the other state impose administrative | 24 |
| or regulatory burdens that are substantially more restrictive | 25 |
| than those imposed by this Act on an out-of-state savings bank | 26 |
| seeking to establish a branch in this State. | 27 |
| (d) After the out-of-state savings bank lawfully | 28 |
| establishes a branch in this State pursuant to the provisions | 29 |
| of this Section, the out-of-state savings bank may establish | 30 |
| and maintain additional branches in this State to the same | 31 |
| extent as an Illinois State savings bank. An out-of-state | 32 |
| savings bank shall provide written notice to the Commissioner | 33 |
| of its intent to establish an additional branch or additional | 34 |
| branches in this State within 30 days after receiving approval | 35 |
| from its chartering authority or other appropriate regulatory | 36 |
| agency to establish the branch or branches. The form of the |
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| notice shall be specified by the Commissioner. | 2 |
| (e) A branch of an out-of-state savings bank may not | 3 |
| conduct any activity that is not authorized for an Illinois | 4 |
| State savings bank.
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| (205 ILCS 205/1007.130 new)
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| Sec. 1007.130. Out-of-state savings bank. "Out-of-state | 7 |
| savings bank" means a savings bank chartered under the laws of | 8 |
| a state other than Illinois, a territory of the United States, | 9 |
| or the District of Columbia.
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| Section 99. Effective date. This Act takes effect upon | 11 |
| becoming law.
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