HB0497 95TH GENERAL ASSEMBLY 






 

 		











95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
HB0497


 
Introduced 2/1/2007, by Rep. Joseph M. Lyons - Bill Mitchell - Mike Boland
 
SYNOPSIS AS INTRODUCED:
 		













205 ILCS 5/21.5 new










    Amends the Illinois Banking Act. Prohibits banks from establishing a branch on or adjacent to the premises of an affiliate of the bank if the affiliate engages in commercial activity that could not lawfully be conducted by a bank holding company, a financial holding company, or their subsidiaries. Provides that if an entity attempts to locate an office of an affiliate on or adjacent to the premises of the bank office or branch, then the entity must cease to operate its bank office or branch at that location. Effective immediately.
















LRB095 05354 MJR 25438 b

















 


 


A BILL FOR









 











HB0497

LRB095 05354 MJR 25438 b






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    AN ACT concerning 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 adding 
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Section 21.5 as follows:
 
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    (205 ILCS 5/21.5  new)
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    Sec. 21.5. Prohibition against establishment of branches 
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on or near the premises of commercial affiliates.
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    (a) For the purposes of this Section:
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    "Affiliate" means any company that controls a bank, any 
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company that is controlled by a bank, or any company that is 
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under common control with a bank.

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     "Bank" has the meaning ascribed to that term in the 
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Federal Deposit Insurance Act (12 U.S.C. Sec. 1813) and 
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includes any out-of-state bank.
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    "Bank holding company" and "financial holding company" 
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have the meanings ascribed to those terms in the federal Bank 
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Holding Company Act of 1956 (12 U.S.C. Sec. 1841).
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    A location is considered "adjacent to" the premises of an 
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affiliate if the location is not separated from the boundary of 
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the premises of the affiliate by real property that is owned by 
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a person or entity having no business relationship with the 
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bank or with the affiliate and that is not leased to or used by 
 


 






HB0497
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LRB095 05354 MJR 25438 b




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the bank or affiliate.
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    (b) Notwithstanding any other provision of this Act, after 
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the effective date of this amendatory Act of the 95th General 
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Assembly, no bank may establish a branch on or adjacent to the 
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premises of an affiliate of the bank if the affiliate engages 
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in any commercial activity that could not lawfully be conducted 
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by a bank holding company, a financial holding company, or a 
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subsidiary of the bank holding company or financial holding 
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company pursuant to federal law.
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    (c) It is the intent of this Section that no entity be 
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permitted to circumvent the prohibition stated in this Section 
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by first establishing a bank office or branch and then 
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subsequently locating an office of an affiliate on or adjacent 
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to the premises of the bank office or branch. If any entity 
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attempts to locate an office of an affiliate on or adjacent to 
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the premises of the bank office or branch, the entity must 
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cease to operate its bank office or branch at a location that 
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would violate the intent of this Section.

 

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