Illinois General Assembly - Full Text of HB0497
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Full Text of HB0497  95th General Assembly


Financial Institutions Committee

Filed: 2/21/2007





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2     AMENDMENT NO. ______. Amend House Bill on page 1, line 8,
3 by replacing "commercial" with "certain"; and
4 on page 1, by replacing lines 10 through 12 with the following:
5     ""Affiliate" means any company having a relationship with a
6 bank that would cause the company to be an affiliate pursuant
7 to Section 35.2 of this Act if the bank were a State bank.";
8 and
9 on page 2, by replacing line 4 with the following:
10 "Assembly, no bank may establish a bank office or branch on or
11 adjacent to the"; and
12 on page 2, after line 18, by adding the following:
13     "Section 10. The Savings Bank Act is amended by adding
14 Section 1006.10 as follows:



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1     (205 ILCS 205/1006.10 new)
2     Sec. 1006.10. Prohibition against establishment of offices
3 or branches on or adjacent to the premises of certain
4 affiliates.
5     (a) For purposes of this Section:
6         "Affiliate" has the meaning defined in this Act.
7         "Savings Bank" means a savings bank operating under
8     this Act, an out-of-state savings bank as defined under
9     this Act, or a savings association defined in the Federal
10     Deposit Insurance Act (12 U.S.C. Sec. 1813).
11         "Savings bank holding company" has the meaning
12     ascribed in this Act.
13     A location is considered "adjacent to" the premises of an
14 affiliate if the location is not separated from the boundary of
15 the premises of the affiliate by real property that is owned by
16 a person or entity having no business relationship with the
17 savings bank, savings bank holding company, or with an
18 affiliate and that is not leased to or used by the savings bank
19 or affiliate.
20     (b) Notwithstanding any other provision of this Act, after
21 the effective date of this amendatory Act of the 95th General
22 Assembly, no savings bank may establish an office or branch on
23 or adjacent to the premises of an affiliate of the savings bank
24 if the affiliate engages in any commercial activity that could
25 not lawfully be conducted by a savings bank holding company or



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1 a subsidiary of the savings bank holding company pursuant to
2 federal law.
3     (c) It is the intent of this Section that no entity be
4 permitted to circumvent the prohibition stated in this Section
5 by first establishing a savings bank office or branch and then
6 subsequently locating an office of an affiliate on or adjacent
7 to the premises of the savings bank office or branch. If any
8 entity attempts to locate an office or branch of an affiliate
9 in, on, or adjacent to the premises of the savings bank office
10 or branch, the entity must cease to operate its savings bank
11 office or branch at a location that would violate the intent of
12 this Section.
13     Section 99. Effective date. This Act takes effect upon
14 becoming law.".