Full Text of HB4898 95th General Assembly
HB4898 95TH GENERAL ASSEMBLY
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95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008 HB4898
Introduced , by Rep. Michael K. Smith SYNOPSIS AS INTRODUCED: |
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Amends the Office of Banks and Real Estate Act to change the powers of the Secretary of Financial and Professional Regulation to issue certain authorizations. Amends the Illinois Bank Examiners' Education Foundation Act to provide that the Foundation shall be governed by a Board of Trustees that consists of the members of the Board of Banks and Trust Companies. Amends the Illinois Banking Act. Deletes the definition of "State Banking Board". Changes provisions concerning the issuance of bank charters. Makes changes concerning notification of meetings of the board of directors. Provides that the Secretary (i) may prescribe the requirements to file applications electronically and (ii) may impose civil penalties in an amount not to exceed that amount a federal regulatory agency is authorized to charge under federal law (rather than $10,000) for violations of the Act. Creates a new Board of Banks and Trust Companies and specifies the appointment and terms of its members. Repeals provisions concerning the current Board of Banks and Trust Companies. Amends the Pawnbroker Regulation Act to make changes to the powers and duties of the Secretary. Amends the Corporate Fiduciary Act. Removes a provision requiring the Secretary to record certain information in the Office of the Secretary of State. Makes changes in provisions concerning certificates of authority. Makes changes in provisions concerning the orders issued by the Secretary. Makes changes in provisions concerning the statement of condition by a corporate fiduciary. Amends the Foreign Bank Representative Office Act to make a change to the definition of "foreign bank". Repeals the Financial Institution Activity Reporting Act. Changes some references in various Acts from (1) the Commissioner of Banks and Real Estate to the Secretary of Financial and Professional Regulation and (2) the State Banking Board to the Board of Banks and Trust Companies. Makes other changes. Effective January 1, 2009.
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A BILL FOR
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HB4898 |
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LRB095 18640 MJR 44727 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 Office of Banks and Real Estate Act is | 5 |
| amended by changing Sections 5 and 6 as follows:
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| (20 ILCS 3205/5) (from Ch. 17, par. 455)
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| Sec. 5. Powers. In addition to all the other powers and | 8 |
| duties provided
by law, the Secretary Commissioner shall have | 9 |
| the following powers:
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| (a) To exercise the rights, powers and duties formerly | 11 |
| vested by law in
the Director of Financial Institutions under | 12 |
| the Illinois Banking Act.
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| (b) To exercise the rights, powers and duties formerly | 14 |
| vested by law in
the Department of Financial Institutions under | 15 |
| "An act to provide for and
regulate the administration of | 16 |
| trusts by trust companies", approved June 15,
1887, as amended.
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| (c) To exercise the rights, powers and duties formerly | 18 |
| vested by law in
the Director of Financial Institutions under | 19 |
| "An act authorizing foreign
corporations, including banks and | 20 |
| national banking associations domiciled in
other states, to act | 21 |
| in a fiduciary capacity in this state upon certain
conditions | 22 |
| herein set forth", approved July 13, 1953, as amended.
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| (d) Whenever the Secretary Commissioner is authorized or |
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| required by law to consider
or to make findings regarding the | 2 |
| character of incorporators, directors,
management personnel, | 3 |
| or other relevant individuals under the Illinois Banking
Act,
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| the Corporate Fiduciary Act, the Pawnbroker Regulation Act, or | 5 |
| at other
times as the Secretary Commissioner deems necessary | 6 |
| for the purpose of carrying out the Secretary's
Commissioner's | 7 |
| statutory powers
and responsibilities, the Secretary | 8 |
| Commissioner shall consider criminal
history record | 9 |
| information, including nonconviction information, pursuant to
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| the Criminal Identification Act. The Secretary Commissioner | 11 |
| shall, in the
form and manner required by
the Department of | 12 |
| State Police and the Federal Bureau of Investigation, cause
to | 13 |
| be conducted a criminal history record investigation to obtain
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| information currently contained in the files of the Department | 15 |
| of State Police
or the Federal Bureau of Investigation, | 16 |
| provided that the Secretary Commissioner need
not cause | 17 |
| additional criminal history record investigations to be | 18 |
| conducted
on individuals for whom the Secretary Commissioner , a | 19 |
| federal bank regulatory
agency, or any other government agency | 20 |
| has caused such investigations to
have been conducted | 21 |
| previously unless such additional investigations are
otherwise | 22 |
| required by law or unless the Secretary Commissioner deems such | 23 |
| additional
investigations to be necessary for the purposes of
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| carrying out the Secretary's Commissioner's statutory powers | 25 |
| and responsibilities.
The Department of State Police shall
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| provide, on the Secretary's Commissioner's request, |
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| information concerning criminal
charges and their disposition | 2 |
| currently on file with respect to a relevant
individual. | 3 |
| Information obtained as a result
of an investigation under this | 4 |
| Section shall be used in determining eligibility
to be an | 5 |
| incorporator, director, management personnel, or other | 6 |
| relevant
individual in relation to a financial institution or | 7 |
| other entity
supervised by the Secretary Commissioner . Upon | 8 |
| request and payment of fees in
conformance with the
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| requirements of Section 2605-400 of the Department of State | 10 |
| Police Law (20 ILCS
2605/2605-400), the Department of State | 11 |
| Police is authorized
to furnish, pursuant to positive | 12 |
| identification, such information contained in
State files as is | 13 |
| necessary to fulfill the request.
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| (e) When issuing charters, permits, licenses, or other | 15 |
| authorizations,
the Secretary Commissioner may impose such | 16 |
| terms and conditions on the issuance
as he deems necessary or | 17 |
| appropriate. Failure to
abide by those terms and conditions may | 18 |
| result in the revocation of the
issuance, the imposition of | 19 |
| corrective orders, or the imposition of civil
money penalties.
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| (f) If the Secretary Commissioner has reasonable cause to | 21 |
| believe that any entity
that has not submitted an application | 22 |
| for authorization or licensure is
conducting any activity that | 23 |
| would otherwise require authorization or
licensure by the | 24 |
| Secretary Commissioner , the Secretary Commissioner shall have | 25 |
| the power to
subpoena witnesses, to compel their attendance, | 26 |
| and to require the production
of any relevant books, papers, |
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| accounts, and documents , and to conduct an examination of the | 2 |
| entity in order to determine
whether the entity is subject to | 3 |
| authorization or licensure by the Secretary or the Department | 4 |
| of Financial and Professional Regulation
Commissioner or the | 5 |
| Office of Banks and Real Estate .
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| (g) The Secretary Commissioner may, through the Attorney | 7 |
| General, request
the circuit court of any county to issue an | 8 |
| injunction to restrain any person
from violating the provisions | 9 |
| of any Act administered by the Secretary Commissioner .
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| (h) Whenever the Secretary Commissioner is authorized to | 11 |
| take any action or
required by law to consider or make | 12 |
| findings, the Secretary Commissioner may delegate
or appoint, | 13 |
| in writing, an officer or employee of the Department of | 14 |
| Financial and Professional Regulation Office of Banks and Real
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| Estate to
take that action or make that finding. | 16 |
| (i) To prescribe the form, filing, and processing | 17 |
| requirements for applications submitted to the Department | 18 |
| including, but not limited to, the requirement to file | 19 |
| applications electronically.
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| (Source: P.A. 91-239, eff. 1-1-00; 92-483, eff. 8-23-01.)
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| (20 ILCS 3205/6) (from Ch. 17, par. 456)
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| Sec. 6. Duties. The Secretary Commissioner shall direct and | 23 |
| supervise all the
administrative and technical activities of | 24 |
| the Office and shall:
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| (a) Apply and carry out this Act and the law and all rules |
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| adopted in
pursuance thereof.
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| (b) Appoint, subject to the provisions of the Personnel | 3 |
| Code, such
employees, experts, and special assistants as may be
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| necessary to carry out effectively the provisions of this Act | 5 |
| and, if the
rate of compensation is not otherwise fixed by law, | 6 |
| fix their
compensation; but neither the Secretary Commissioner | 7 |
| nor any deputy commissioner shall be
subject to the Personnel | 8 |
| Code.
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| (c) (Blank). Serve as Chairman of the State Banking Board | 10 |
| of Illinois.
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| (d) Serve as Chairman of the Board of Trustees of the | 12 |
| Illinois Bank
Examiners' Education Foundation.
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| (e) Issue guidelines in the form of rules or regulations | 14 |
| which will prohibit
discrimination by any State chartered bank | 15 |
| against any individual, corporation,
partnership, association | 16 |
| or other entity because it appears in a
so-called blacklist | 17 |
| issued by any domestic or foreign corporate or governmental
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| entity.
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| (f) Make an annual report to the Governor regarding the | 20 |
| work of the Office
as the Secretary Commissioner may consider | 21 |
| desirable or as the Governor may request.
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| (g) Perform such other acts as may be requested by the | 23 |
| State Banking
Board
of Illinois pursuant to its lawful powers | 24 |
| and perform any other lawful act
that the Secretary
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| Commissioner considers to be
necessary or desirable to carry | 26 |
| out the purposes and provisions of this Act.
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| (h) Adopt, in accordance with the Illinois Administrative | 2 |
| Procedure
Act, reasonable rules that the Secretary | 3 |
| Commissioner deems necessary for the proper
administration and | 4 |
| enforcement of any Act the administration of which is vested
in | 5 |
| the Secretary Commissioner or the Department of Financial and | 6 |
| Professional Regulation Office of Banks and Real Estate . | 7 |
| (i) Work in cooperation with the Director of Aging to | 8 |
| encourage all financial institutions regulated by the | 9 |
| Department Office to participate fully in the Department on | 10 |
| Aging's financial exploitation of the elderly intervention | 11 |
| program.
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| (Source: P.A. 92-483, eff. 8-23-01; 93-786, eff. 7-21-04.)
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| Section 10. The Illinois Bank Examiners' Education | 14 |
| Foundation Act is amended by changing Section 5 as follows:
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| (20 ILCS 3210/5) (from Ch. 17, par. 405)
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| Sec. 5. The Foundation shall be governed by a Board of | 17 |
| Trustees. The
Board shall consist of the members of the Board | 18 |
| of Banks and Trust Companies following trustees: the | 19 |
| Commissioner, who shall
be its chairman; one Class A member and | 20 |
| three Class B members from the
State Banking Board of Illinois, | 21 |
| appointed by the Governor .
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| The terms of the trustees of the Foundation who are members | 23 |
| of the State
Banking Board of Illinois are to be coextensive | 24 |
| with their terms on the Board of Banks and Trust Companies
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| State Banking Board of Illinois . An appointment to fill a | 2 |
| vacancy shall be
for the unexpired term of the trustee whose | 3 |
| term is being filled. Trustees
shall receive no compensation | 4 |
| for service on the Board, but shall be
reimbursed for all | 5 |
| reasonable and necessary expenditures incurred in the
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| performance of their official duties.
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| (Source: P.A. 84-1127.)
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| Section 15. The Illinois Banking Act is amended by changing | 9 |
| Sections 2, 13, 16, 48, and 82 and by adding Sections 78.5 and | 10 |
| 79.5 as follows:
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| (205 ILCS 5/2) (from Ch. 17, par. 302)
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| Sec. 2. General definitions. In this Act, unless the | 13 |
| context otherwise
requires, the following words and phrases | 14 |
| shall have the following meanings:
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| "Accommodation party" shall have the meaning ascribed to | 16 |
| that term in
Section 3-419 of the Uniform Commercial Code.
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| "Action" in the sense of a judicial proceeding includes | 18 |
| recoupments,
counterclaims, set-off, and any other proceeding | 19 |
| in which
rights are determined.
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| "Affiliate facility" of a bank means a main banking | 21 |
| premises or branch
of another commonly owned bank.
The main | 22 |
| banking premises or any branch of a bank
may be an "affiliate | 23 |
| facility" with respect to one or more other commonly owned
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| banks.
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| "Appropriate federal banking agency" means the Federal | 2 |
| Deposit Insurance
Corporation, the Federal Reserve Bank of | 3 |
| Chicago, or the Federal Reserve Bank
of St. Louis, as | 4 |
| determined by federal law.
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| "Bank" means any person doing a banking business whether | 6 |
| subject to the
laws of this or any other jurisdiction.
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| A "banking house", "branch", "branch bank" or "branch
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| office" shall mean any place of business of a bank at which | 9 |
| deposits are
received, checks paid, or loans made, but shall | 10 |
| not include any place at
which only records thereof are made, | 11 |
| posted, or kept. A place of business
at which deposits are | 12 |
| received, checks paid, or loans made shall not be
deemed to be | 13 |
| a branch, branch bank, or branch office if the place of
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| business is adjacent to and connected with the main banking | 15 |
| premises, or if
it is separated from the main banking premises | 16 |
| by not more than an alley;
provided always that (i) if the | 17 |
| place of business is separated by an alley
from the main | 18 |
| banking premises there is a connection between the two by
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| public or private way or by subterranean or overhead passage, | 20 |
| and (ii) if
the place of business is in a building not wholly | 21 |
| occupied by the bank, the
place of business shall not be within | 22 |
| any office or room in which any other
business or service of | 23 |
| any kind or nature other than the business of the
bank is | 24 |
| conducted or carried on. A place of business at which deposits | 25 |
| are
received, checks paid, or loans made shall not be deemed to | 26 |
| be a branch,
branch bank, or branch office (i) of any bank if |
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| the place is a terminal established and maintained in | 2 |
| accordance with
paragraph
(17) of Section 5 of this Act, or | 3 |
| (ii) of a commonly owned bank
by virtue of
transactions | 4 |
| conducted at that place on behalf of the other commonly owned | 5 |
| bank
under paragraph (23) of Section 5 of this Act if the place | 6 |
| is an affiliate
facility with respect to the other bank.
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| "Board" means the Board of Banks and Trust Companies. | 8 |
| "Branch of an out-of-state bank" means a branch established | 9 |
| or maintained in
Illinois by an out-of-state bank as a result | 10 |
| of a merger between an Illinois
bank and the out-of-state bank | 11 |
| that occurs on or after May 31, 1997, or any
branch established | 12 |
| by the out-of-state bank following the merger.
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| "Bylaws" means the bylaws of a bank that are adopted by the | 14 |
| bank's board of
directors or shareholders for the regulation | 15 |
| and management of the bank's
affairs. If the bank operates as a | 16 |
| limited liability company, however, "bylaws"
means the | 17 |
| operating
agreement of the bank.
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| "Call report fee" means the fee to be paid to the
Secretary | 19 |
| Commissioner by each State bank pursuant to paragraph (a) of | 20 |
| subsection (3)
of Section 48 of this Act.
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| "Capital" includes the aggregate of outstanding capital | 22 |
| stock and
preferred stock.
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| "Cash flow reserve account" means the account within the | 24 |
| books and records
of the Secretary of Financial and | 25 |
| Professional Regulation Commissioner of Banks and Real Estate | 26 |
| used to
record funds designated to maintain a reasonable Bank |
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| and Trust Company Fund
operating balance to meet agency | 2 |
| obligations on a timely basis.
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| "Charter" includes the original charter and all amendments | 4 |
| thereto
and articles of merger or consolidation.
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| "Commissioner" means the Commissioner of Banks and Real | 6 |
| Estate or a person
authorized by the Commissioner, the Office | 7 |
| of Banks and Real Estate
Act, or this Act to act in the | 8 |
| Commissioner's stead.
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| "Commonly owned banks" means 2 or more banks that each | 10 |
| qualify as a bank
subsidiary of the same bank holding company | 11 |
| pursuant to Section 18 of the
Federal Deposit Insurance Act; | 12 |
| "commonly owned bank" refers to one of a group
of commonly | 13 |
| owned banks but only with respect to one or more of the other | 14 |
| banks
in the same group.
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| "Community" means a city, village, or incorporated town and | 16 |
| also includes
the area served by the banking offices of a bank, | 17 |
| but need not be limited or
expanded to conform to the | 18 |
| geographic boundaries of units of local
government.
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| "Company" means a corporation, limited liability company, | 20 |
| partnership,
business trust,
association, or similar | 21 |
| organization and, unless specifically excluded,
includes a | 22 |
| "State bank" and a "bank".
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| "Consolidating bank" means a party to a consolidation.
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| "Consolidation" takes place when 2 or more banks, or a | 25 |
| trust company and
a bank, are extinguished and by the same | 26 |
| process a new bank is created,
taking over the assets and |
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| assuming the liabilities of the banks or trust
company passing | 2 |
| out of existence.
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| "Continuing bank" means a merging bank, the charter of | 4 |
| which becomes the
charter of the resulting bank.
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| "Converting bank" means a State bank converting to become a | 6 |
| national
bank, or a national bank converting to become a State | 7 |
| bank.
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| "Converting trust company" means a trust company | 9 |
| converting to become a
State bank.
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| "Court" means a court of competent jurisdiction.
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| "Director" means a member of the board of directors of a | 12 |
| bank. In the case
of a manager-managed limited liability | 13 |
| company, however, "director" means a
manager of
the bank and, | 14 |
| in the case of a member-managed limited liability company,
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| "director" means a member of the bank. The term "director" does | 16 |
| not include an
advisory director, honorary director, director | 17 |
| emeritus, or similar person,
unless the person is otherwise | 18 |
| performing
functions similar to those of a member of the board | 19 |
| of directors. | 20 |
| "Director of the Division" means the Director of the | 21 |
| Division of Banks of the Department of Financial and | 22 |
| Professional Regulation.
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| "Eligible depository institution" means an insured savings | 24 |
| association
that is in default, an insured savings association | 25 |
| that is in danger of
default, a State or national bank that is | 26 |
| in default or a State or
national bank that is in danger of |
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| default, as those terms are defined in this
Section, or a new | 2 |
| bank as that term defined in Section 11(m) of the Federal
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| Deposit Insurance Act or a bridge bank as that term is defined | 4 |
| in Section 11(n)
of the Federal Deposit Insurance Act or a new | 5 |
| federal savings association
authorized under Section | 6 |
| 11(d)(2)(f) of the Federal Deposit Insurance Act.
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| "Fiduciary" means trustee, agent, executor, administrator, | 8 |
| committee,
guardian for a minor or for a person under legal | 9 |
| disability, receiver,
trustee in bankruptcy, assignee for | 10 |
| creditors, or any holder of similar
position of trust.
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| "Financial institution" means a bank, savings and loan | 12 |
| association,
credit union, or any licensee under the Consumer | 13 |
| Installment Loan Act or
the Sales Finance Agency Act and, for | 14 |
| purposes of Section 48.3, any
proprietary network, funds | 15 |
| transfer corporation, or other entity providing
electronic | 16 |
| funds transfer services, or any corporate fiduciary, its
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| subsidiaries, affiliates, parent company, or contractual | 18 |
| service provider
that is examined by the Secretary | 19 |
| Commissioner .
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| "Foundation" means the Illinois Bank Examiners' Education | 21 |
| Foundation.
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| "General obligation" means a bond, note, debenture, | 23 |
| security, or other
instrument evidencing an obligation of the | 24 |
| government entity that is the
issuer that is supported by the
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| full available resources of the issuer, the principal and | 26 |
| interest of which
is payable in whole or in part by taxation.
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| "Guarantee" means an undertaking or promise to answer for | 2 |
| payment of
another's debt or performance of another's duty, | 3 |
| liability, or obligation
whether "payment guaranteed" or | 4 |
| "collection guaranteed".
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| "In danger of default" means a State or national bank, a | 6 |
| federally chartered
insured savings association or an Illinois | 7 |
| state chartered insured savings
association with respect to | 8 |
| which the Secretary Commissioner or the appropriate
federal | 9 |
| banking agency has advised the Federal Deposit Insurance
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| Corporation that:
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| (1) in the opinion of the Secretary Commissioner or the | 12 |
| appropriate federal
banking agency,
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| (A) the State or national bank or insured savings | 14 |
| association is not
likely to be able to meet the | 15 |
| demands of the State or national bank's or
savings | 16 |
| association's obligations in the normal course of | 17 |
| business; and
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| (B) there is no reasonable prospect that the State | 19 |
| or national bank or
insured savings association will be | 20 |
| able to meet those demands or pay those
obligations | 21 |
| without federal assistance; or
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| (2) in the opinion of the Secretary Commissioner or the | 23 |
| appropriate federal
banking agency,
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| (A) the State or national bank or insured savings | 25 |
| association has
incurred or is likely to incur losses | 26 |
| that will deplete all or substantially
all of its |
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| capital; and
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| (B) there is no reasonable prospect that the | 3 |
| capital of the State
or national bank or insured | 4 |
| savings association will be replenished without
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| federal assistance.
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| "In default" means, with respect to a State or national | 7 |
| bank or an insured
savings association, any adjudication or | 8 |
| other official determination by any
court of competent | 9 |
| jurisdiction, the Secretary Commissioner , the appropriate | 10 |
| federal
banking agency, or other public authority pursuant to | 11 |
| which a conservator, receiver,
or other legal custodian is | 12 |
| appointed for a State or national bank or an
insured savings | 13 |
| association.
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| "Insured savings association" means any federal savings | 15 |
| association chartered
under Section 5 of the federal Home | 16 |
| Owners' Loan Act and any State savings
association chartered | 17 |
| under the Illinois Savings and Loan Act of 1985 or a
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| predecessor Illinois statute, the deposits of which are insured | 19 |
| by the Federal
Deposit Insurance Corporation. The term also | 20 |
| includes a savings bank organized
or operating under the | 21 |
| Savings Bank Act.
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| "Insured savings association in recovery" means an insured | 23 |
| savings
association that is not an eligible depository | 24 |
| institution and that does
not meet the minimum capital | 25 |
| requirements applicable with respect to the
insured savings | 26 |
| association.
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| "Issuer" means for purposes of Section 33 every person who | 2 |
| shall have
issued or proposed to issue any security; except | 3 |
| that (1) with respect to
certificates of deposit, voting trust | 4 |
| certificates, collateral-trust
certificates, and certificates | 5 |
| of interest or shares in an unincorporated
investment trust not | 6 |
| having a board of directors (or persons performing
similar | 7 |
| functions), "issuer" means the person or persons performing the
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| acts and assuming the duties of depositor or manager pursuant | 9 |
| to the
provisions of the trust, agreement, or instrument under | 10 |
| which the
securities are issued; (2) with respect to trusts | 11 |
| other than those
specified in clause (1) above, where the | 12 |
| trustee is a corporation
authorized to accept and execute | 13 |
| trusts, "issuer" means the entrusters,
depositors, or creators | 14 |
| of the trust and any manager or committee charged
with the | 15 |
| general direction of the affairs of the trust pursuant to the
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| provisions of the agreement or instrument creating the trust; | 17 |
| and (3) with
respect to equipment trust certificates or like | 18 |
| securities, "issuer" means
the person to whom the equipment or | 19 |
| property is or is to be leased or
conditionally sold.
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| "Letter of credit" and "customer" shall have the meanings | 21 |
| ascribed to
those terms in Section 5-102 of the Uniform | 22 |
| Commercial Code.
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| "Main banking premises" means the location that is | 24 |
| designated in a
bank's charter as its main office.
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| "Maker or obligor" means for purposes of Section 33 the | 26 |
| issuer of a
security, the promisor in a debenture or other debt |
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| security, or the
mortgagor or grantor of a trust deed or | 2 |
| similar conveyance of a security
interest in real or personal | 3 |
| property.
| 4 |
| "Merged bank" means a merging bank that is not the | 5 |
| continuing, resulting,
or surviving bank in a consolidation or | 6 |
| merger.
| 7 |
| "Merger" includes consolidation.
| 8 |
| "Merging bank" means a party to a bank merger.
| 9 |
| "Merging trust company" means a trust company party to a | 10 |
| merger with
a State bank.
| 11 |
| "Mid-tier bank holding company" means a corporation that | 12 |
| (a) owns 100% of
the issued and outstanding shares of each | 13 |
| class of stock of a State bank, (b)
has no other subsidiaries, | 14 |
| and (c) 100% of the issued and outstanding shares of
the | 15 |
| corporation are owned by a parent bank holding company.
| 16 |
| "Municipality" means any municipality, political | 17 |
| subdivision, school
district, taxing district, or agency.
| 18 |
| "National bank" means a national banking association | 19 |
| located in this
State and after May 31, 1997, means a national | 20 |
| banking association without
regard to its location.
| 21 |
| "Out-of-state bank" means a bank chartered under the laws | 22 |
| of a state other
than Illinois, a territory of the United | 23 |
| States, or the District of Columbia.
| 24 |
| "Parent bank holding company" means a corporation that is a | 25 |
| bank holding
company as that term is defined in the Illinois | 26 |
| Bank Holding Company Act of
1957 and owns 100% of the issued |
|
|
|
HB4898 |
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LRB095 18640 MJR 44727 b |
|
| 1 |
| and outstanding shares of a mid-tier bank
holding company.
| 2 |
| "Person" means an individual, corporation, limited | 3 |
| liability company,
partnership, joint
venture, trust, estate, | 4 |
| or unincorporated association.
| 5 |
| "Public agency" means the State of Illinois, the various | 6 |
| counties,
townships,
cities, towns, villages, school | 7 |
| districts, educational service regions, special
road | 8 |
| districts, public water supply districts, fire protection | 9 |
| districts,
drainage districts, levee districts, sewer | 10 |
| districts, housing authorities, the
Illinois Bank Examiners' | 11 |
| Education Foundation, the Chicago Park District, and
all other | 12 |
| political corporations or subdivisions of the State of | 13 |
| Illinois,
whether now or hereafter created, whether herein | 14 |
| specifically mentioned or
not, and shall also include any other
| 15 |
| state or any political corporation or subdivision of another | 16 |
| state.
| 17 |
| "Public funds" or "public money" means
current operating | 18 |
| funds, special funds, interest and sinking funds, and funds
of | 19 |
| any kind or character belonging to, in the custody of, or | 20 |
| subject to the
control or regulation of the United States or a | 21 |
| public agency. "Public funds"
or "public money" shall include | 22 |
| funds held by any of the officers, agents, or
employees of the | 23 |
| United States or of a public agency in the course of their
| 24 |
| official duties and, with respect to public money of the United | 25 |
| States, shall
include Postal Savings funds.
| 26 |
| "Published" means, unless the context requires otherwise, |
|
|
|
HB4898 |
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LRB095 18640 MJR 44727 b |
|
| 1 |
| the publishing
of the notice or instrument referred to in some | 2 |
| newspaper of general
circulation in the community in which the | 3 |
| bank is located at least once
each week for 3 successive weeks. | 4 |
| Publishing shall be accomplished by, and
at the expense of, the | 5 |
| bank required to publish. Where publishing is
required, the | 6 |
| bank shall submit to the Secretary Commissioner that evidence | 7 |
| of the
publication as the Secretary Commissioner shall deem | 8 |
| appropriate.
| 9 |
| "Qualified financial contract" means any security | 10 |
| contract,
commodity contract, forward contract, including spot | 11 |
| and
forward foreign exchange contracts, repurchase agreement, | 12 |
| swap agreement, and
any
similar agreement, any option to enter | 13 |
| into any such agreement, including any
combination of the | 14 |
| foregoing, and any master agreement for such agreements.
A | 15 |
| master agreement, together with all supplements thereto, shall | 16 |
| be treated
as one qualified financial contract. The contract, | 17 |
| option, agreement, or
combination of contracts, options, or | 18 |
| agreements shall be reflected upon the
books, accounts, or | 19 |
| records of the bank, or a party to the contract shall
provide | 20 |
| documentary evidence of such agreement.
| 21 |
| "Recorded" means the filing or recording of the notice or | 22 |
| instrument
referred to in the office of the Recorder of the | 23 |
| county wherein
the bank is located.
| 24 |
| "Resulting bank" means the bank resulting from a merger or | 25 |
| conversion.
| 26 |
| "Secretary" means the Secretary of Financial and |
|
|
|
HB4898 |
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LRB095 18640 MJR 44727 b |
|
| 1 |
| Professional Regulation or a person
authorized by the | 2 |
| Secretary, the Office of Banks and Real Estate
Act, or this Act | 3 |
| to act in the Secretary's stead. | 4 |
| "Securities" means stocks, bonds, debentures, notes, or | 5 |
| other similar
obligations.
| 6 |
| "Stand-by letter of credit" means a letter of credit under | 7 |
| which drafts
are payable upon the condition the customer has | 8 |
| defaulted in performance of
a duty, liability, or obligation.
| 9 |
| "State bank" means any banking corporation that has a | 10 |
| banking charter
issued by the Secretary Commissioner under
this | 11 |
| Act.
| 12 |
| "State Banking Board" means the State Banking Board of | 13 |
| Illinois.
| 14 |
| "Subsidiary" with respect to a specified company means a | 15 |
| company that is
controlled by the specified company. For | 16 |
| purposes of paragraphs (8) and (12)
of Section 5 of this Act, | 17 |
| "control" means the exercise of operational or
managerial | 18 |
| control of a corporation by the bank, either alone or together | 19 |
| with
other affiliates of the bank.
| 20 |
| "Surplus" means the aggregate of (i) amounts paid in excess | 21 |
| of the par
value of capital stock and preferred stock; (ii) | 22 |
| amounts contributed other
than for capital stock and preferred | 23 |
| stock and allocated to the surplus
account; and (iii) amounts | 24 |
| transferred from undivided profits.
| 25 |
| "Tier 1 Capital" and "Tier 2 Capital" have the meanings | 26 |
| assigned to those
terms in regulations promulgated for the |
|
|
|
HB4898 |
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LRB095 18640 MJR 44727 b |
|
| 1 |
| appropriate federal banking agency of
a state bank, as those | 2 |
| regulations are now or hereafter amended.
| 3 |
| "Trust company" means a limited liability company or | 4 |
| corporation
incorporated in this State for the
purpose of | 5 |
| accepting and executing trusts.
| 6 |
| "Undivided profits" means undistributed earnings less | 7 |
| discretionary
transfers to surplus.
| 8 |
| "Unimpaired capital and unimpaired surplus", for the | 9 |
| purposes of paragraph
(21) of Section 5 and Sections 32, 33, | 10 |
| 34, 35.1, 35.2, and 47 of this Act means
the sum of the state | 11 |
| bank's Tier 1 Capital and Tier 2 Capital plus such other
| 12 |
| shareholder equity as may be included by
regulation of the | 13 |
| Secretary Commissioner . Unimpaired capital and unimpaired | 14 |
| surplus
shall be calculated on the basis of the date of the | 15 |
| last quarterly call report
filed with the Secretary | 16 |
| Commissioner preceding the date of the transaction for which | 17 |
| the
calculation is made, provided that: (i) when a material | 18 |
| event occurs after the
date of the last quarterly call report | 19 |
| filed with the Secretary Commissioner that reduces
or increases | 20 |
| the bank's unimpaired capital and unimpaired surplus by 10% or
| 21 |
| more, then the unimpaired capital and unimpaired surplus shall | 22 |
| be calculated
from the date of the material
event for a | 23 |
| transaction conducted after the date of the material event; and
| 24 |
| (ii) if the Secretary Commissioner determines for safety and | 25 |
| soundness reasons that a
state bank should calculate unimpaired | 26 |
| capital and unimpaired surplus more
frequently than provided by |
|
|
|
HB4898 |
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LRB095 18640 MJR 44727 b |
|
| 1 |
| this paragraph, the Secretary Commissioner may by written
| 2 |
| notice direct the bank to calculate unimpaired capital and | 3 |
| unimpaired surplus
at a more frequent interval. In the case of | 4 |
| a state bank newly chartered under
Section 13 or a state bank | 5 |
| resulting from a merger, consolidation, or
conversion under | 6 |
| Sections 21 through 26 for which no preceding quarterly call
| 7 |
| report has been filed with the Secretary Commissioner , | 8 |
| unimpaired capital and unimpaired
surplus shall be calculated | 9 |
| for the first calendar quarter on the basis of the
effective | 10 |
| date of the charter, merger, consolidation, or conversion.
| 11 |
| (Source: P.A. 92-483, eff. 8-23-01; 93-561, eff. 1-1-04.)
| 12 |
| (205 ILCS 5/13) (from Ch. 17, par. 320)
| 13 |
| Sec. 13. Issuance of charter.
| 14 |
| (a) When the directors have organized as provided in | 15 |
| Section 12 of this
Act, and the capital stock and the preferred | 16 |
| stock, if any, together with a
surplus of not less than 50% of | 17 |
| the capital,
has been all fully paid in and a record of the | 18 |
| same
filed with the Secretary Commissioner , the Secretary | 19 |
| Commissioner or some competent
person of the Secretary's | 20 |
| Commissioner's appointment shall make a thorough
examination | 21 |
| into the affairs of the proposed bank, and if satisfied (i)
| 22 |
| that
all the requirements of this Act have been complied with, | 23 |
| (ii) that
no
intervening circumstance has occurred to change | 24 |
| the Secretary's Commissioner's findings
made pursuant to | 25 |
| Section 10 of this Act, and (iii) that the prior involvement
by |
|
|
|
HB4898 |
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LRB095 18640 MJR 44727 b |
|
| 1 |
| any stockholder who will own a sufficient amount of stock to | 2 |
| have control,
as defined in Section 18 of this Act, of the | 3 |
| proposed bank with any other
financial institution, whether as | 4 |
| stockholder, director, officer, or customer,
was conducted in a | 5 |
| safe and sound manner, upon payment into the Secretary's
| 6 |
| Commissioner's office of the reasonable expenses of the
| 7 |
| examination, as determined by the Secretary Commissioner , the | 8 |
| Secretary Commissioner shall
issue a charter authorizing the | 9 |
| bank to commence business as authorized in
this Act. All | 10 |
| charters issued by the Secretary Commissioner or any | 11 |
| predecessor
agency which chartered State banks, including any | 12 |
| charter outstanding as of
September 1, 1989, shall be | 13 |
| perpetual. For the 2 years after the Secretary Commissioner
has | 14 |
| issued a charter to a bank, the bank shall request and obtain | 15 |
| from the Secretary
Commissioner prior written approval before | 16 |
| it may change senior management
personnel or directors.
| 17 |
| The original charter, duly certified by the Secretary | 18 |
| Commissioner , or a certified copy
shall be evidence in all | 19 |
| courts and places
of the existence and authority of the bank to | 20 |
| do business. Upon the
issuance of the charter by the Secretary | 21 |
| Commissioner , the bank
shall be deemed fully organized and may
| 22 |
| proceed to do business. The Secretary Commissioner may, in the | 23 |
| Secretary's Commissioner's
discretion, withhold the issuing of | 24 |
| the charter when the Secretary Commissioner has
reason to | 25 |
| believe that the bank is organized for any purpose other than
| 26 |
| that contemplated by this Act. The Secretary Commissioner shall
|
|
|
|
HB4898 |
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LRB095 18640 MJR 44727 b |
|
| 1 |
| revoke the charter and order liquidation in the event that the | 2 |
| bank does
not commence a general banking business within one | 3 |
| year from the date of
the issuance of the charter, unless a | 4 |
| request has been submitted, in
writing, to the Secretary | 5 |
| Commissioner for an extension and the request has been
| 6 |
| approved. After commencing a general
banking business, a bank | 7 |
| may
change
its name by filing written notice with the Secretary | 8 |
| Commissioner at least 30 days
prior
to the effective date of | 9 |
| such change. A bank chartered under this Act may
change its | 10 |
| main banking premises by filing written application with the | 11 |
| Secretary
Commissioner , on forms prescribed by the Secretary | 12 |
| Commissioner , provided (i) the change
shall not be a removal to | 13 |
| a new location without complying with the capital
requirements | 14 |
| of Section 7 and of subsection (1) of Section 10 of this Act; | 15 |
| (ii)
the Secretary Commissioner approves the relocation or | 16 |
| change; and (iii) the bank
complies with any applicable federal | 17 |
| law or regulation. The application
shall be deemed to be | 18 |
| approved if the Secretary Commissioner has not acted on the
| 19 |
| application within 30 days after receipt of the application, | 20 |
| unless within the
30-day time frame the Secretary Commissioner | 21 |
| informs the bank that an extension of time
is
necessary prior | 22 |
| to the Secretary's Commissioner's action on the application.
| 23 |
| (b) (1) The Secretary Commissioner may also issue a charter | 24 |
| to a bank that is owned
exclusively by other depository | 25 |
| institutions or depository institution holding
companies | 26 |
| and is organized to engage exclusively in providing |
|
|
|
HB4898 |
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LRB095 18640 MJR 44727 b |
|
| 1 |
| services to or
for other depository institutions, their | 2 |
| holding companies, and the officers,
directors, and | 3 |
| employees of such institutions and companies, and in | 4 |
| providing
correspondent banking services at the request of | 5 |
| other depository institutions
or their holding companies | 6 |
| (also referred to as a "bankers' bank").
| 7 |
| (2) A bank chartered pursuant to paragraph (1) shall, | 8 |
| except as otherwise
specifically determined or limited by | 9 |
| the Secretary Commissioner in an order or
pursuant to a | 10 |
| rule, be vested with the same rights
and privileges and | 11 |
| subject to the same duties, restrictions, penalties,
and | 12 |
| liabilities now or hereafter imposed under this Act.
| 13 |
| (c) A bank chartered under this Act shall after November 1, | 14 |
| 1985, and an
out-of-state bank that merges with a State bank | 15 |
| and establishes or maintains a
branch in this State after
May | 16 |
| 31, 1997, shall obtain
from and , at all times while it accepts | 17 |
| or retains deposits, maintain with
the Federal Deposit | 18 |
| Insurance Corporation, or such other instrumentality of
or | 19 |
| corporation chartered by the United States, deposit insurance | 20 |
| as
authorized under federal law.
| 21 |
| (d) (i) A bank that has a banking charter issued by the | 22 |
| Secretary Commissioner under
this Act may, pursuant to a | 23 |
| written purchase and assumption agreement,
transfer | 24 |
| substantially all of its assets to another State bank or | 25 |
| national
bank in consideration, in whole or in part, for | 26 |
| the transferee banks'
assumption of any part or all of its |
|
|
|
HB4898 |
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LRB095 18640 MJR 44727 b |
|
| 1 |
| liabilities. Such a transfer shall in
no way be deemed to | 2 |
| impair the charter of the transferor bank or cause the
| 3 |
| transferor bank to forfeit any of its rights, powers, | 4 |
| interests,
franchises, or privileges as a State bank, nor | 5 |
| shall any voluntary
reduction in the transferor bank's | 6 |
| activities resulting from the transfer
have any such | 7 |
| effect; provided, however, that a State bank that transfers
| 8 |
| substantially all of its assets pursuant to this subsection | 9 |
| (d) and
following the transfer does not accept deposits and | 10 |
| make loans, shall not
have any rights, powers, interests, | 11 |
| franchises, or privileges under
subsection (15) of Section | 12 |
| 5 of this Act until the bank has resumed
accepting deposits | 13 |
| and making loans.
| 14 |
| (ii) The fact that a State bank does not resume | 15 |
| accepting deposits and
making loans for a period of 24 | 16 |
| months commencing on September 11, 1989 or on a
date of the | 17 |
| transfer of substantially all of a State bank's assets, | 18 |
| whichever
is later, or such longer period as the Secretary | 19 |
| Commissioner may allow in writing, may
be the basis for a | 20 |
| finding by the Secretary Commissioner under Section 51 of | 21 |
| this Act
that the bank is unable to continue operations.
| 22 |
| (iii) The authority provided by subdivision (i) of this | 23 |
| subsection
(d) shall terminate on May 31, 1997, and no bank | 24 |
| that has transferred
substantially all of its assets | 25 |
| pursuant to this subsection (d) shall continue
in existence | 26 |
| after May 31, 1997.
|
|
|
|
HB4898 |
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LRB095 18640 MJR 44727 b |
|
| 1 |
| (Source: P.A. 91-322, eff. 1-1-00; 92-483, eff. 8-23-01.)
| 2 |
| (205 ILCS 5/16) (from Ch. 17, par. 323)
| 3 |
| Sec. 16. Directors. The business and affairs of a State | 4 |
| bank shall be
managed by its board of directors that shall | 5 |
| exercise its powers as follows:
| 6 |
| (1) Directors shall be elected as provided in this Act. Any | 7 |
| omission
to elect a director or directors shall not impair any | 8 |
| of the rights and
privileges of the bank or of any person in | 9 |
| any way interested. The existing
directors shall hold office | 10 |
| until their successors are elected and qualify.
| 11 |
| (2) (a) Notwithstanding the provisions of any charter | 12 |
| heretofore or
hereafter issued, the number of directors, | 13 |
| not fewer than 5
nor more than 25, may be fixed from time | 14 |
| to time by the stockholders at any
meeting of the | 15 |
| stockholders called for the purpose of electing directors
| 16 |
| or changing the number thereof by the affirmative vote of | 17 |
| at least
two-thirds of the outstanding stock entitled to | 18 |
| vote at the
meeting, and the number so fixed shall be the | 19 |
| board regardless of
vacancies until the number of directors | 20 |
| is thereafter changed by similar
action.
| 21 |
| (b) Notwithstanding the minimum number of directors | 22 |
| specified in
paragraph (a) of this subsection, a State bank | 23 |
| that has been in existence
for 10 years or more and has | 24 |
| less than $20,000,000 in assets, as of the
December 31 | 25 |
| immediately preceding the annual meeting of shareholders |
|
|
|
HB4898 |
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LRB095 18640 MJR 44727 b |
|
| 1 |
| at
which directors are elected, may, subject to the | 2 |
| approval of the Secretary
Commissioner , have a minimum of 3 | 3 |
| directors; provided that if a State bank
has fewer than 5 | 4 |
| directors, at least one director shall not be an officer
or | 5 |
| employee of the bank. The Secretary Commissioner shall | 6 |
| annually review the
appropriateness of the grant of | 7 |
| authority to have a reduced minimum number
of directors | 8 |
| pursuant to this paragraph (b).
| 9 |
| (3) Except as otherwise provided in this paragraph (3), | 10 |
| directors
shall hold office until the next annual meeting of | 11 |
| the stockholders
succeeding their election or until their | 12 |
| successors are elected and
qualify. If the board of directors | 13 |
| consists of 6 or more members, in lieu
of electing the | 14 |
| membership of the whole board of directors annually, the
| 15 |
| charter or by-laws of a State bank may provide that the | 16 |
| directors shall be
divided into either 2 or 3 classes, each | 17 |
| class to be as nearly equal in
number as is possible. The term | 18 |
| of office of directors of the first class
shall expire at the | 19 |
| first annual meeting of the stockholders after their
election, | 20 |
| that of the second class shall expire at the second annual
| 21 |
| meeting after their election, and that of the third class, if | 22 |
| any, shall
expire at the third annual meeting after their | 23 |
| election. At each annual
meeting after classification, the | 24 |
| number of directors equal to the number
of the class whose | 25 |
| terms expire at the time of the meeting shall be elected
to | 26 |
| hold office until the second succeeding annual meeting, if |
|
|
|
HB4898 |
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LRB095 18640 MJR 44727 b |
|
| 1 |
| there be 2
classes, or until the third succeeding annual | 2 |
| meeting, if there be 3
classes. Vacancies may be filled by | 3 |
| stockholders at a special meeting
called for the purpose.
| 4 |
| If authorized by the bank's by-laws or an amendment | 5 |
| thereto, the directors
of a State bank may properly fill a | 6 |
| vacancy or vacancies arising between
shareholders' meetings, | 7 |
| but at no time may the number of directors selected to
fill a | 8 |
| vacancy in this manner during any interim period between | 9 |
| shareholders'
meetings exceed 33 1/3% of the total membership | 10 |
| of the board of directors.
| 11 |
| (4) The board of directors shall hold regular meetings at | 12 |
| least
once
each month, provided that, upon prior written | 13 |
| approval by the Secretary Commissioner ,
the board of directors | 14 |
| may hold regular meetings less frequently than once
each month | 15 |
| but at least once each calendar
quarter. A special meeting of | 16 |
| the board of directors may be held as
provided by the by-laws. | 17 |
| A special meeting of the board of directors may
also be held | 18 |
| upon call by the Secretary Commissioner or a bank examiner | 19 |
| appointed
under the provisions of this Act upon not less than | 20 |
| 12 hours notice of
the meeting by personal service of the | 21 |
| notice , or by mailing the notice to
each of the directors at | 22 |
| his residence as shown by the books of the bank , or by any | 23 |
| other method of delivery, provided such method provides proof | 24 |
| of service and receipt .
A majority of the board of directors | 25 |
| shall constitute a quorum for the
transaction of business | 26 |
| unless a greater number is required by the charter
or the |
|
|
|
HB4898 |
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LRB095 18640 MJR 44727 b |
|
| 1 |
| by-laws. The act of the majority of the directors present at a
| 2 |
| meeting at which a quorum is present shall be the act of the | 3 |
| board of
directors unless the act of a greater number is | 4 |
| required by the charter
or by the by-laws.
| 5 |
| (5) A member of the board of directors shall be elected
| 6 |
| president.
The board of directors may appoint other officers, | 7 |
| as the by-laws may
provide, and fix their salaries to carry on | 8 |
| the business of the bank. The
board of directors may make and | 9 |
| amend by-laws (not inconsistent with this
Act) for the | 10 |
| government of the bank and may, by the affirmative vote of a
| 11 |
| majority of the board of directors, establish reasonable | 12 |
| compensation of
all directors for services to the corporation | 13 |
| as directors, officers, or
otherwise. An officer, whether | 14 |
| elected or appointed by the board of
directors or appointed | 15 |
| pursuant to the by-laws, may be removed by the board
of | 16 |
| directors at any time.
| 17 |
| (6) The board of directors shall cause suitable books and
| 18 |
| records of all
the bank's transactions to be kept.
| 19 |
| (7) (a) In discharging the duties of their respective | 20 |
| positions, the
board
of directors, committees of the board, | 21 |
| and individual directors may, in
considering the best long | 22 |
| term and short term interests of the bank,
consider the | 23 |
| effects of any action (including, without limitation, | 24 |
| action
that may involve or relate to a merger or potential | 25 |
| merger or to a change
or potential change in control of the | 26 |
| bank) upon employees, depositors,
suppliers, and customers |
|
|
|
HB4898 |
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LRB095 18640 MJR 44727 b |
|
| 1 |
| of the corporation or its subsidiaries,
communities in | 2 |
| which the main banking premises, branches, offices, or | 3 |
| other
establishments of the bank or its subsidiaries are | 4 |
| located, and all pertinent
factors.
| 5 |
| (b) In discharging the duties of their respective | 6 |
| positions, the board
of
directors, committees of the board, | 7 |
| and individual directors shall be entitled
to rely on | 8 |
| advice, information, opinions, reports or statements, | 9 |
| including
financial statements and financial data, | 10 |
| prepared or presented by: (i) one or
more officers or | 11 |
| employees of the bank whom the director believes to be
| 12 |
| reliable and competent in the matter presented; (ii) one or | 13 |
| more counsels,
accountants, or other consultants as to | 14 |
| matters that the director believes to
be within that | 15 |
| person's professional or expert competence; or (iii) a | 16 |
| committee
of the board upon which the director does not | 17 |
| serve, as to matters within that
committee's designated | 18 |
| authority; provided that the director's reliance under
| 19 |
| this paragraph (b) is placed in good faith, after | 20 |
| reasonable inquiry if the
need for such inquiry is apparent | 21 |
| under the circumstances and without knowledge
that would | 22 |
| cause such reliance to be unreasonable.
| 23 |
| (Source: P.A. 91-452, eff. 1-1-00; 92-476, eff. 8-23-01.)
| 24 |
| (205 ILCS 5/48) (from Ch. 17, par. 359)
| 25 |
| Sec. 48. Secretary's Commissioner's powers; duties. The |
|
|
|
HB4898 |
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LRB095 18640 MJR 44727 b |
|
| 1 |
| Secretary Commissioner shall have the
powers and authority, and | 2 |
| is charged with the duties and responsibilities
designated in | 3 |
| this Act, and a State bank shall not be subject to any
other | 4 |
| visitorial power other than as authorized by this Act, except | 5 |
| those
vested in the courts, or upon prior consultation with the | 6 |
| Secretary Commissioner , a
foreign bank regulator with an | 7 |
| appropriate supervisory interest in the parent
or affiliate of | 8 |
| a state bank. In the performance of the Secretary's | 9 |
| Commissioner's
duties:
| 10 |
| (1) The Secretary Commissioner shall call for statements | 11 |
| from all State banks
as provided in Section 47 at least one | 12 |
| time during each calendar quarter.
| 13 |
| (2) (a) The Secretary Commissioner , as often as the | 14 |
| Secretary Commissioner shall deem
necessary or
proper, and no | 15 |
| less frequently than 18 months following the preceding
| 16 |
| examination, shall appoint a suitable person or
persons to make | 17 |
| an examination of the affairs of every State bank,
except that | 18 |
| for every eligible State bank, as defined by regulation, the | 19 |
| Secretary
Commissioner in lieu of the examination may accept on | 20 |
| an alternating basis the
examination made by the eligible State | 21 |
| bank's appropriate federal banking
agency pursuant to Section | 22 |
| 111 of the Federal Deposit Insurance Corporation
Improvement | 23 |
| Act of 1991, provided the appropriate federal banking agency | 24 |
| has
made such an examination. A person so appointed shall not | 25 |
| be a stockholder or
officer or employee of
any bank which that | 26 |
| person may be directed to examine, and shall have
powers to |
|
|
|
HB4898 |
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LRB095 18640 MJR 44727 b |
|
| 1 |
| make a thorough examination into all the affairs of the bank | 2 |
| and
in so doing to examine any of the officers or agents or | 3 |
| employees thereof
on oath and shall make a full and detailed | 4 |
| report of the condition of the
bank to the Secretary | 5 |
| Commissioner . In making the examination the examiners shall
| 6 |
| include an examination of the affairs of all the affiliates of | 7 |
| the bank, as
defined in subsection (b) of Section 35.2 of this | 8 |
| Act, or subsidiaries of the
bank as shall be
necessary to | 9 |
| disclose fully the conditions of the subsidiaries or
| 10 |
| affiliates, the relations
between the bank and the subsidiaries | 11 |
| or affiliates and the effect of those
relations upon
the | 12 |
| affairs of the bank, and in connection therewith shall have | 13 |
| power to
examine any of the officers, directors, agents, or | 14 |
| employees of the
subsidiaries or affiliates
on oath. After May | 15 |
| 31, 1997, the Secretary Commissioner may enter into cooperative
| 16 |
| agreements
with state regulatory authorities of other states to | 17 |
| provide for examination of
State bank branches in those states, | 18 |
| and the Secretary Commissioner may accept reports
of | 19 |
| examinations of State bank branches from those state regulatory | 20 |
| authorities.
These cooperative agreements may set forth the | 21 |
| manner in which the other state
regulatory authorities may be | 22 |
| compensated for examinations prepared for and
submitted to the | 23 |
| Secretary Commissioner .
| 24 |
| (b) After May 31, 1997, the Secretary Commissioner is | 25 |
| authorized to examine, as often
as the Secretary Commissioner | 26 |
| shall deem necessary or proper, branches of out-of-state
banks. |
|
|
|
HB4898 |
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LRB095 18640 MJR 44727 b |
|
| 1 |
| The Secretary Commissioner may establish and may assess fees to | 2 |
| be paid to the Secretary
Commissioner for examinations under | 3 |
| this subsection (b). The fees shall be
borne by the | 4 |
| out-of-state bank, unless the fees are borne by the state
| 5 |
| regulatory authority that chartered the out-of-state bank, as | 6 |
| determined by a
cooperative agreement between the Secretary | 7 |
| Commissioner and the state regulatory
authority that chartered | 8 |
| the out-of-state bank.
| 9 |
| (2.5) Whenever any State bank, any subsidiary or affiliate | 10 |
| of a State
bank, or after May 31, 1997, any branch of an | 11 |
| out-of-state bank causes to
be performed, by contract or | 12 |
| otherwise, any bank services
for itself, whether on or off its | 13 |
| premises:
| 14 |
| (a) that performance shall be subject to examination by | 15 |
| the Secretary Commissioner
to the same extent as if | 16 |
| services were being performed by the bank or, after
May 31, | 17 |
| 1997, branch of the out-of-state bank itself
on its own | 18 |
| premises; and
| 19 |
| (b) the bank or, after May 31, 1997, branch of the | 20 |
| out-of-state bank
shall notify the Secretary Commissioner | 21 |
| of the existence of a service
relationship. The | 22 |
| notification shall be submitted with the first statement
of | 23 |
| condition (as required by Section 47 of this Act) due after | 24 |
| the making
of the service contract or the performance of | 25 |
| the service, whichever occurs
first. The Secretary | 26 |
| Commissioner shall be notified of each subsequent contract |
|
|
|
HB4898 |
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LRB095 18640 MJR 44727 b |
|
| 1 |
| in
the same manner.
| 2 |
| For purposes of this subsection (2.5), the term "bank | 3 |
| services" means
services such as sorting and posting of checks | 4 |
| and deposits, computation
and posting of interest and other | 5 |
| credits and charges, preparation and
mailing of checks, | 6 |
| statements, notices, and similar items, or any other
clerical, | 7 |
| bookkeeping, accounting, statistical, or similar functions
| 8 |
| performed for a State bank, including but not limited to | 9 |
| electronic data
processing related to those bank services.
| 10 |
| (3) The expense of administering this Act, including the | 11 |
| expense of
the examinations of State banks as provided in this | 12 |
| Act, shall to the extent
of the amounts resulting from the fees | 13 |
| provided for in paragraphs (a),
(a-2), and (b) of this | 14 |
| subsection (3) be assessed against and borne by the
State | 15 |
| banks:
| 16 |
| (a) Each bank shall pay to the Secretary Commissioner a | 17 |
| Call Report Fee which
shall be paid in quarterly | 18 |
| installments equal
to one-fourth of the sum of the annual | 19 |
| fixed fee of $800, plus a variable
fee based on the assets | 20 |
| shown on the quarterly statement of condition
delivered to | 21 |
| the Secretary Commissioner in accordance with Section 47 | 22 |
| for the
preceding quarter according to the following | 23 |
| schedule: 16˘ per $1,000 of
the first $5,000,000 of total | 24 |
| assets, 15˘ per $1,000 of the next
$20,000,000 of total | 25 |
| assets, 13˘ per $1,000 of the next $75,000,000 of
total | 26 |
| assets, 9˘ per $1,000 of the next $400,000,000 of total |
|
|
|
HB4898 |
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LRB095 18640 MJR 44727 b |
|
| 1 |
| assets, 7˘
per $1,000 of the next $500,000,000 of total | 2 |
| assets, and 5˘ per $1,000 of
all assets in excess of | 3 |
| $1,000,000,000, of the State bank. The Call Report
Fee | 4 |
| shall be calculated by the Secretary Commissioner and | 5 |
| billed to the banks for
remittance at the time of the | 6 |
| quarterly statements of condition
provided for in Section | 7 |
| 47. The Secretary Commissioner may require payment of the | 8 |
| fees
provided in this Section by an electronic transfer of | 9 |
| funds or an automatic
debit of an account of each of the | 10 |
| State banks. In case more than one
examination of any
bank | 11 |
| is deemed by the Secretary Commissioner to be necessary in | 12 |
| any examination
frequency cycle specified in subsection | 13 |
| 2(a) of this Section,
and is performed at his direction, | 14 |
| the Secretary Commissioner may
assess a reasonable | 15 |
| additional fee to recover the cost of the additional
| 16 |
| examination; provided, however, that an examination | 17 |
| conducted at the request
of the State Treasurer pursuant to | 18 |
| the Uniform Disposition of Unclaimed
Property Act shall not | 19 |
| be deemed to be an additional examination under this
| 20 |
| Section.
In lieu
of the method and amounts set forth in | 21 |
| this paragraph (a) for the calculation
of the Call Report | 22 |
| Fee, the Secretary Commissioner may specify by
rule that | 23 |
| the Call Report Fees provided by this Section may be | 24 |
| assessed
semiannually or some other period and may provide | 25 |
| in the rule the formula to
be
used for calculating and | 26 |
| assessing the periodic Call Report Fees to be paid by
State
|
|
|
|
HB4898 |
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LRB095 18640 MJR 44727 b |
|
| 1 |
| banks.
| 2 |
| (a-1) If in the opinion of the Secretary Commissioner | 3 |
| an emergency exists or
appears likely, the Secretary | 4 |
| Commissioner may assign an examiner or examiners to
monitor | 5 |
| the affairs of a State bank with whatever frequency he | 6 |
| deems
appropriate, including but not limited to a daily | 7 |
| basis. The reasonable
and necessary expenses of the | 8 |
| Secretary Commissioner during the period of the monitoring
| 9 |
| shall be borne by the subject bank. The Secretary | 10 |
| Commissioner shall furnish the
State bank a statement of | 11 |
| time and expenses if requested to do so within 30
days of | 12 |
| the conclusion of the monitoring period.
| 13 |
| (a-2) On and after January 1, 1990, the reasonable and | 14 |
| necessary
expenses of the Secretary Commissioner during | 15 |
| examination of the performance of
electronic data | 16 |
| processing services under subsection (2.5) shall be
borne | 17 |
| by the banks for which the services are provided. An | 18 |
| amount, based
upon a fee structure prescribed by the | 19 |
| Secretary Commissioner , shall be paid by the
banks or, | 20 |
| after May 31, 1997, branches of out-of-state banks | 21 |
| receiving the
electronic data processing services along | 22 |
| with the
Call Report Fee assessed under paragraph (a) of | 23 |
| this
subsection (3).
| 24 |
| (a-3) After May 31, 1997, the reasonable and necessary | 25 |
| expenses of the Secretary
Commissioner during examination | 26 |
| of the performance of electronic data
processing services |
|
|
|
HB4898 |
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LRB095 18640 MJR 44727 b |
|
| 1 |
| under subsection (2.5) at or on behalf of branches of
| 2 |
| out-of-state banks shall be borne by the out-of-state | 3 |
| banks, unless those
expenses are borne by the state | 4 |
| regulatory authorities that chartered the
out-of-state | 5 |
| banks, as determined by cooperative agreements between the | 6 |
| Secretary
Commissioner and the state regulatory | 7 |
| authorities that chartered the
out-of-state banks.
| 8 |
| (b) "Fiscal year" for purposes of this Section 48 is | 9 |
| defined as a
period beginning July 1 of any year and ending | 10 |
| June 30 of the next year.
The Secretary Commissioner shall | 11 |
| receive for each fiscal year, commencing with the
fiscal | 12 |
| year ending June 30, 1987, a contingent fee equal to the | 13 |
| lesser of
the aggregate of the fees paid by all State banks | 14 |
| under paragraph (a) of
subsection (3) for that year, or the | 15 |
| amount, if any, whereby the aggregate
of the administration | 16 |
| expenses, as defined in paragraph (c), for that
fiscal year | 17 |
| exceeds the sum of the aggregate of the fees payable by all
| 18 |
| State banks for that year under paragraph (a) of subsection | 19 |
| (3),
plus any amounts transferred into the Bank and Trust | 20 |
| Company Fund from the
State Pensions Fund for that year,
| 21 |
| plus all
other amounts collected by the Secretary | 22 |
| Commissioner for that year under any
other provision of | 23 |
| this Act, plus the aggregate of all fees
collected for that | 24 |
| year by the Secretary Commissioner under the Corporate | 25 |
| Fiduciary
Act, excluding the receivership fees provided | 26 |
| for in Section 5-10 of the
Corporate Fiduciary Act, and the |
|
|
|
HB4898 |
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LRB095 18640 MJR 44727 b |
|
| 1 |
| Foreign Banking Office Act.
The aggregate amount of the | 2 |
| contingent
fee thus arrived at for any fiscal year shall be | 3 |
| apportioned amongst,
assessed upon, and paid by the State | 4 |
| banks and foreign banking corporations,
respectively, in | 5 |
| the same proportion
that the fee of each under paragraph | 6 |
| (a) of subsection (3), respectively,
for that year bears to | 7 |
| the aggregate for that year of the fees collected
under | 8 |
| paragraph (a) of subsection (3). The aggregate amount of | 9 |
| the
contingent fee, and the portion thereof to be assessed | 10 |
| upon each State
bank and foreign banking corporation,
| 11 |
| respectively, shall be determined by the Secretary | 12 |
| Commissioner and shall be paid by
each, respectively, | 13 |
| within 120 days of the close of the period for which
the | 14 |
| contingent fee is computed and is payable, and the | 15 |
| Secretary Commissioner shall
give 20 days advance notice of | 16 |
| the amount of the contingent fee payable by
the State bank | 17 |
| and of the date fixed by the Secretary Commissioner for | 18 |
| payment of
the fee.
| 19 |
| (c) The "administration expenses" for any fiscal year | 20 |
| shall mean the
ordinary and contingent expenses for that | 21 |
| year incident to making the
examinations provided for by, | 22 |
| and for otherwise administering, this Act,
the Corporate | 23 |
| Fiduciary Act, excluding the expenses paid from the
| 24 |
| Corporate Fiduciary Receivership account in the Bank and | 25 |
| Trust Company
Fund, the Foreign Banking Office Act,
the | 26 |
| Electronic Fund Transfer Act,
and the Illinois Bank |
|
|
|
HB4898 |
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LRB095 18640 MJR 44727 b |
|
| 1 |
| Examiners'
Education Foundation Act, including all | 2 |
| salaries and other
compensation paid for personal services | 3 |
| rendered for the State by
officers or employees of the | 4 |
| State, including the Secretary and his or her deputies | 5 |
| Commissioner and the
Deputy Commissioners , all | 6 |
| expenditures for telephone and telegraph
charges, postage | 7 |
| and postal charges, office stationery, supplies and
| 8 |
| services, and office furniture and equipment, including | 9 |
| typewriters and
copying and duplicating machines and | 10 |
| filing equipment, surety bond
premiums, and travel | 11 |
| expenses of those officers and employees, employees,
| 12 |
| expenditures or charges for the acquisition, enlargement | 13 |
| or improvement
of, or for the use of, any office space, | 14 |
| building, or structure, or
expenditures for the | 15 |
| maintenance thereof or for furnishing heat, light,
or power | 16 |
| with respect thereto, all to the extent that those | 17 |
| expenditures
are directly incidental to such examinations | 18 |
| or administration.
The Secretary Commissioner shall not be | 19 |
| required by paragraphs (c) or (d-1) of this
subsection (3) | 20 |
| to maintain in any fiscal year's budget appropriated | 21 |
| reserves
for accrued vacation and accrued sick leave that | 22 |
| is required to be paid to
employees of the Secretary | 23 |
| Commissioner upon termination of their service with the | 24 |
| Secretary
Commissioner in an amount that is more than is | 25 |
| reasonably anticipated to be
necessary for any anticipated | 26 |
| turnover in employees, whether due to normal
attrition or |
|
|
|
HB4898 |
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LRB095 18640 MJR 44727 b |
|
| 1 |
| due to layoffs, terminations, or resignations.
| 2 |
| (d) The aggregate of all fees collected by the | 3 |
| Secretary Commissioner under
this Act, the Corporate | 4 |
| Fiduciary Act,
or the Foreign Banking Office Act on
and | 5 |
| after July 1, 1979, shall be paid promptly after receipt of | 6 |
| the same,
accompanied by a detailed statement thereof, into | 7 |
| the State treasury and
shall be set apart in a special fund | 8 |
| to be known as the "Bank and Trust
Company Fund", except as | 9 |
| provided in paragraph (c) of subsection (11) of
this | 10 |
| Section. All earnings received from investments of funds in | 11 |
| the Bank
and
Trust Company Fund shall be deposited in the | 12 |
| Bank and Trust Company Fund
and may be used for the same | 13 |
| purposes as fees deposited in that Fund. The
amount from | 14 |
| time to time deposited into the Bank and
Trust Company Fund | 15 |
| shall be used to offset the ordinary administrative
| 16 |
| expenses of the Secretary of Financial and Professional | 17 |
| Regulation Commissioner of Banks and Real Estate as defined | 18 |
| in
this Section. Nothing in this amendatory Act of 1979 | 19 |
| shall prevent
continuing the practice of paying expenses | 20 |
| involving salaries, retirement,
social security, and | 21 |
| State-paid insurance premiums of State officers by
| 22 |
| appropriations from the General Revenue Fund. However, the | 23 |
| General Revenue
Fund shall be reimbursed for those payments | 24 |
| made on and after July 1, 1979,
by an annual transfer of | 25 |
| funds from the Bank and Trust Company Fund. Moneys in the | 26 |
| Bank and Trust Company Fund may be transferred to the |
|
|
|
HB4898 |
- 41 - |
LRB095 18640 MJR 44727 b |
|
| 1 |
| Professions Indirect Cost Fund, as authorized under | 2 |
| Section 2105-300 of the Department of Professional | 3 |
| Regulation Law of the Civil Administrative Code of | 4 |
| Illinois.
| 5 |
| (d-1) Adequate funds shall be available in the Bank and | 6 |
| Trust
Company Fund to permit the timely payment of | 7 |
| administration expenses. In
each fiscal year the total | 8 |
| administration expenses shall be deducted from
the total | 9 |
| fees collected by the Secretary Commissioner and the | 10 |
| remainder transferred
into the Cash Flow Reserve Account, | 11 |
| unless the balance of the Cash Flow
Reserve Account prior | 12 |
| to the transfer equals or exceeds
one-fourth of the total | 13 |
| initial appropriations from the Bank and Trust
Company Fund | 14 |
| for the subsequent year, in which case the remainder shall | 15 |
| be
credited to State banks and foreign banking corporations
| 16 |
| and applied against their fees for the subsequent
year. The | 17 |
| amount credited to each State bank and foreign banking | 18 |
| corporation
shall be in the same proportion as the
Call | 19 |
| Report Fees paid by each for the year bear to the total | 20 |
| Call Report
Fees collected for the year. If, after a | 21 |
| transfer to the Cash Flow Reserve
Account is made or if no | 22 |
| remainder is available for transfer, the balance
of the | 23 |
| Cash Flow Reserve Account is less than one-fourth of the | 24 |
| total
initial appropriations for the subsequent year and | 25 |
| the amount transferred
is less than 5% of the total Call | 26 |
| Report Fees for the year, additional
amounts needed to make |
|
|
|
HB4898 |
- 42 - |
LRB095 18640 MJR 44727 b |
|
| 1 |
| the transfer equal to 5% of the total Call Report
Fees for | 2 |
| the year shall be apportioned amongst, assessed upon, and
| 3 |
| paid by the State banks and foreign banking corporations
in | 4 |
| the same proportion that the Call Report Fees of each,
| 5 |
| respectively, for the year bear to the total Call Report | 6 |
| Fees collected for
the year. The additional amounts | 7 |
| assessed shall be transferred into the
Cash Flow Reserve | 8 |
| Account. For purposes of this paragraph (d-1), the
| 9 |
| calculation of the fees collected by the Secretary | 10 |
| Commissioner shall exclude the
receivership fees provided | 11 |
| for in Section 5-10 of the Corporate Fiduciary Act.
| 12 |
| (e) The Secretary Commissioner may upon request | 13 |
| certify to any public record
in his keeping and shall have | 14 |
| authority to levy a reasonable charge for
issuing | 15 |
| certifications of any public record in his keeping.
| 16 |
| (f) In addition to fees authorized elsewhere in this | 17 |
| Act, the Secretary
Commissioner
may, in connection with a | 18 |
| review, approval, or provision of a service, levy a
| 19 |
| reasonable charge to recover the cost of the review, | 20 |
| approval, or service.
| 21 |
| (4) Nothing contained in this Act shall be construed to | 22 |
| limit the
obligation relative to examinations and reports of | 23 |
| any State bank, deposits
in which are to any extent insured by | 24 |
| the United States or any agency
thereof, nor to limit in any | 25 |
| way the powers of the Secretary Commissioner with
reference to | 26 |
| examinations and reports of that bank.
|
|
|
|
HB4898 |
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LRB095 18640 MJR 44727 b |
|
| 1 |
| (5) The nature and condition of the assets in or investment | 2 |
| of any
bonus, pension, or profit sharing plan for officers or | 3 |
| employees of every
State bank or, after May 31, 1997, branch of | 4 |
| an out-of-state bank shall be
deemed to be included in the | 5 |
| affairs of that State
bank or branch of an out-of-state bank | 6 |
| subject to examination by the Secretary
Commissioner under the
| 7 |
| provisions of subsection (2) of this Section, and if the | 8 |
| Secretary Commissioner
shall find from an examination that the | 9 |
| condition of or operation
of the investments or assets of the | 10 |
| plan is unlawful, fraudulent, or
unsafe, or that any trustee | 11 |
| has abused his trust, the Secretary Commissioner
shall, if the | 12 |
| situation so found by the Secretary Commissioner shall not be
| 13 |
| corrected to his satisfaction within 60 days after the | 14 |
| Secretary Commissioner has
given notice to the board of | 15 |
| directors of the State bank or out-of-state
bank of his
| 16 |
| findings, report the facts to the Attorney General who shall | 17 |
| thereupon
institute proceedings against the State bank or | 18 |
| out-of-state bank, the
board of directors
thereof, or the | 19 |
| trustees under such plan as the nature of the case may require.
| 20 |
| (6) The Secretary Commissioner shall have the power:
| 21 |
| (a) To promulgate reasonable rules for the purpose of
| 22 |
| administering the provisions of this Act.
| 23 |
| (a-5) To impose conditions on any approval issued by | 24 |
| the Secretary Commissioner
if he determines that the | 25 |
| conditions are necessary or appropriate. These
conditions | 26 |
| shall be imposed in writing and shall continue
in effect |
|
|
|
HB4898 |
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LRB095 18640 MJR 44727 b |
|
| 1 |
| for the period prescribed by the Secretary Commissioner .
| 2 |
| (b) To issue orders
against any person, if the | 3 |
| Secretary Commissioner has
reasonable cause to believe | 4 |
| that an unsafe or unsound banking practice
has occurred, is | 5 |
| occurring, or is about to occur, if any person has | 6 |
| violated,
is violating, or is about to violate any law, | 7 |
| rule, or written
agreement with the Secretary | 8 |
| Commissioner , or
for the purpose of administering the | 9 |
| provisions of
this Act and any rule promulgated in | 10 |
| accordance with this Act.
| 11 |
| (b-1) To enter into agreements with a bank establishing | 12 |
| a program to
correct the condition of the bank or its | 13 |
| practices.
| 14 |
| (c) To appoint hearing officers to execute any of the | 15 |
| powers granted to
the Secretary Commissioner under this | 16 |
| Section for the purpose of administering this
Act and any | 17 |
| rule promulgated in accordance with this Act
and otherwise | 18 |
| to authorize, in writing, an officer or employee of the | 19 |
| Department of Financial and Professional Regulation Office
| 20 |
| of
Banks and Real Estate to exercise his powers under this | 21 |
| Act.
| 22 |
| (d) To subpoena witnesses, to compel their attendance, | 23 |
| to administer
an oath, to examine any person under oath, | 24 |
| and to require the production of
any relevant books, | 25 |
| papers, accounts, and documents in the course of and
| 26 |
| pursuant to any investigation being conducted, or any |
|
|
|
HB4898 |
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LRB095 18640 MJR 44727 b |
|
| 1 |
| action being taken,
by the Secretary Commissioner in | 2 |
| respect of any matter relating to the duties imposed
upon, | 3 |
| or the powers vested in, the Secretary Commissioner under | 4 |
| the provisions of
this Act or any rule promulgated in | 5 |
| accordance with this Act.
| 6 |
| (e) To conduct hearings.
| 7 |
| (7) Whenever, in the opinion of the Secretary Commissioner , | 8 |
| any director,
officer, employee, or agent of a State bank
or | 9 |
| any subsidiary or bank holding company of the bank
or, after | 10 |
| May 31, 1997, of any
branch of an out-of-state bank
or any | 11 |
| subsidiary or bank holding company of the bank
shall have | 12 |
| violated any law,
rule, or order relating to that bank
or any | 13 |
| subsidiary or bank holding company of the bank, shall have
| 14 |
| obstructed or impeded any examination or investigation by the | 15 |
| Secretary Commissioner , shall have engaged in an unsafe or
| 16 |
| unsound practice in conducting the business of that bank
or any | 17 |
| subsidiary or bank holding company of the bank,
or shall have
| 18 |
| violated any law or engaged or participated in any unsafe or | 19 |
| unsound practice
in connection with any financial institution | 20 |
| or other business entity such that
the character and fitness of | 21 |
| the director, officer, employee, or agent does not
assure | 22 |
| reasonable promise of safe and sound operation of the State | 23 |
| bank, the Secretary
Commissioner
may issue an order of removal.
| 24 |
| If, in the opinion of the Secretary Commissioner , any former | 25 |
| director, officer,
employee,
or agent of a State bank
or any | 26 |
| subsidiary or bank holding company of the bank, prior to the
|
|
|
|
HB4898 |
- 46 - |
LRB095 18640 MJR 44727 b |
|
| 1 |
| termination of his or her service with
that bank
or any | 2 |
| subsidiary or bank holding company of the bank, violated any | 3 |
| law,
rule, or order relating to that
State bank
or any | 4 |
| subsidiary or bank holding company of the bank, obstructed or | 5 |
| impeded
any examination or investigation by the Secretary | 6 |
| Commissioner , engaged in an unsafe or unsound practice in | 7 |
| conducting the
business of that bank
or any subsidiary or bank | 8 |
| holding company of the bank,
or violated any law or engaged or | 9 |
| participated in any
unsafe or unsound practice in connection | 10 |
| with any financial institution or
other business entity such | 11 |
| that the character and fitness of the director,
officer, | 12 |
| employee, or agent would not have assured reasonable promise of | 13 |
| safe
and sound operation of the State bank, the Secretary | 14 |
| Commissioner may issue an order
prohibiting that person from
| 15 |
| further
service with a bank
or any subsidiary or bank holding | 16 |
| company of the bank
as a director, officer, employee, or agent. | 17 |
| An order
issued pursuant to this subsection shall be served | 18 |
| upon the
director,
officer, employee, or agent. A copy of the | 19 |
| order shall be sent to each
director of the bank affected by | 20 |
| personal service, certified mail return receipt requested, or | 21 |
| any other method that provides proof of service and receipt | 22 |
| registered mail . The person affected by
the action may request | 23 |
| a hearing before the Board of Banks and Trust Companies State | 24 |
| Banking Board within 10
days after receipt of the order. The | 25 |
| hearing shall be held by
the Board within 30 days after the | 26 |
| request has been received by the Board.
The Board shall make a |
|
|
|
HB4898 |
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LRB095 18640 MJR 44727 b |
|
| 1 |
| determination approving, modifying, or disapproving
the order | 2 |
| of the Secretary Commissioner as its final administrative | 3 |
| decision. If a
hearing is held by the Board, the Board shall | 4 |
| make its determination within
60 days from the conclusion of | 5 |
| the hearing. Any person affected by a
decision of the Board | 6 |
| under this subsection (7) of Section 48 of this Act
may have | 7 |
| the decision reviewed only under and in accordance with the
| 8 |
| Administrative Review Law and the rules adopted pursuant | 9 |
| thereto. A copy of
the order shall also be served upon the bank | 10 |
| of which he is a director,
officer, employee, or agent, | 11 |
| whereupon he shall cease to be a director,
officer, employee, | 12 |
| or agent of that bank. The Secretary Commissioner may
institute | 13 |
| a civil action against the director, officer, or agent of the
| 14 |
| State bank or, after May 31, 1997, of the branch of the | 15 |
| out-of-state bank
against whom any order provided for by this | 16 |
| subsection (7) of
this Section 48 has been issued, and against | 17 |
| the State bank or, after May 31,
1997, out-of-state bank, to | 18 |
| enforce
compliance with or to enjoin any violation of the terms | 19 |
| of the order.
Any person who has been the subject of an order | 20 |
| of removal
or
an order of prohibition issued by the Secretary | 21 |
| Commissioner under
this subsection or Section 5-6 of the | 22 |
| Corporate Fiduciary Act may not
thereafter serve as director, | 23 |
| officer, employee, or agent of any State bank
or of any branch | 24 |
| of any out-of-state bank,
or of any corporate fiduciary, as | 25 |
| defined in Section 1-5.05 of the
Corporate
Fiduciary Act, or of | 26 |
| any other entity that is subject to licensure or
regulation by |
|
|
|
HB4898 |
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LRB095 18640 MJR 44727 b |
|
| 1 |
| the Secretary Commissioner or the Department of Financial and | 2 |
| Professional Regulation Office of Banks and Real Estate unless
| 3 |
| the Secretary Commissioner has granted prior approval in | 4 |
| writing.
| 5 |
| For purposes of this paragraph (7), "bank holding company" | 6 |
| has the
meaning prescribed in Section 2 of the Illinois Bank | 7 |
| Holding Company Act of
1957.
| 8 |
| (8) The Secretary Commissioner may impose civil penalties | 9 |
| in an amount not to exceed the amount a federal regulatory | 10 |
| agency is authorized to charge under federal law of up to | 11 |
| $10,000 against
any person for each violation of any provision | 12 |
| of this Act, any rule
promulgated in accordance with this Act, | 13 |
| any order of the Director of the Division or Secretary | 14 |
| Commissioner , or
any other action which in the Director's or | 15 |
| Secretary's Commissioner's discretion is an unsafe or
unsound | 16 |
| banking practice.
| 17 |
| (9) The Secretary Commissioner may impose civil penalties | 18 |
| of up to $100
against any person for the first failure to | 19 |
| comply with reporting
requirements set forth in the report of | 20 |
| examination of the bank and up to
$200 for the second and | 21 |
| subsequent failures to comply with those reporting
| 22 |
| requirements.
| 23 |
| (10) All final administrative decisions of the Secretary | 24 |
| Commissioner hereunder
shall be subject to judicial review | 25 |
| pursuant to the provisions of the
Administrative Review Law. | 26 |
| For matters involving administrative review,
venue shall be in |
|
|
|
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LRB095 18640 MJR 44727 b |
|
| 1 |
| either Sangamon County or Cook County.
| 2 |
| (11) The endowment fund for the Illinois Bank Examiners' | 3 |
| Education
Foundation shall be administered as follows:
| 4 |
| (a) (Blank).
| 5 |
| (b) The Foundation is empowered to receive voluntary | 6 |
| contributions,
gifts, grants, bequests, and donations on | 7 |
| behalf of the Illinois Bank
Examiners' Education | 8 |
| Foundation from national banks and other persons for
the | 9 |
| purpose of funding the endowment of the Illinois Bank | 10 |
| Examiners'
Education Foundation.
| 11 |
| (c) The aggregate of all special educational fees | 12 |
| collected by the Secretary
Commissioner and property | 13 |
| received by the Secretary Commissioner on behalf of the
| 14 |
| Illinois Bank Examiners' Education Foundation under this | 15 |
| subsection
(11) on or after June 30, 1986, shall be either | 16 |
| (i) promptly paid after
receipt of the same, accompanied by | 17 |
| a detailed statement thereof, into the
State Treasury and | 18 |
| shall be set apart in a special fund to be known as "The
| 19 |
| Illinois Bank Examiners' Education Fund" to be invested by | 20 |
| either the
Treasurer of the State of Illinois in the Public | 21 |
| Treasurers' Investment
Pool or in any other investment he | 22 |
| is authorized to make or by the Illinois
State Board of | 23 |
| Investment as the board of trustees of the Illinois Bank
| 24 |
| Examiners' Education Foundation may direct or (ii) | 25 |
| deposited into an account
maintained in a commercial bank | 26 |
| or corporate fiduciary in the name of the
Illinois Bank |
|
|
|
HB4898 |
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LRB095 18640 MJR 44727 b |
|
| 1 |
| Examiners' Education Foundation pursuant to the order and
| 2 |
| direction of the Board of Trustees of the Illinois Bank | 3 |
| Examiners' Education
Foundation.
| 4 |
| (12) (Blank).
| 5 |
| (Source: P.A. 94-91, eff. 7-1-05.)
| 6 |
| (205 ILCS 5/78.5 new) | 7 |
| Sec. 78.5. Board of Banks and Trust Companies; creation, | 8 |
| members, appointment. | 9 |
| (a) There is created the Board of Banks and Trust | 10 |
| Companies, which shall consist of the Director, who shall be | 11 |
| its chairperson, and 6 additional members divided into 2 | 12 |
| classes designated Class A members and Class B members, to be | 13 |
| appointed by the Governor by and with the advice and consent of | 14 |
| the Senate, as follows: | 15 |
| (1) Class A shall consist of 2 persons, neither of whom | 16 |
| is an officer or director of or owner, whether directly or | 17 |
| indirectly, of more than 5% of the outstanding capital | 18 |
| stock of any bank. | 19 |
| (2) Class B shall consist of 4 persons, each of whom at | 20 |
| the time of the appointment is an officer, director, or | 21 |
| employee of a State bank or trust company and has at least | 22 |
| 10 years of banking experience. | 23 |
| (b) The Board of Banks and Trust Companies formerly created | 24 |
| by Section 78 of this Act is abolished on January 1, 2009, and | 25 |
| the terms of all members of that Board then serving are |
|
|
|
HB4898 |
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LRB095 18640 MJR 44727 b |
|
| 1 |
| terminated on that date. | 2 |
| (c) For purposes of the Successor Agency Act, the Board of | 3 |
| Banks and Trust Companies created under this Section shall be | 4 |
| the sucessor agency of the State Banking Board of Illinois and | 5 |
| the Board of Banks and Trust Companies Created under Section 78 | 6 |
| of this Act. | 7 |
| (205 ILCS 5/79.5 new) | 8 |
| Sec. 79.5. Board, terms of office. The terms of office of | 9 |
| the Class A and Class B members of the Board of Banks and Trust | 10 |
| Companies shall begin on January 1, 2009. | 11 |
| (a) The persons first appointed as the Class A members of | 12 |
| the Board of Banks and Trust Companies shall have the following | 13 |
| terms as designated by the Governor: (i) one person for a term | 14 |
| of 2 years and (ii) one person for a term of 4 years. | 15 |
| Thereafter, the term of office of each of the Class A members | 16 |
| shall be 4 years, except that an appointment to fill a vacancy | 17 |
| shall be for the unexpired term of the member whose term is | 18 |
| being filled. | 19 |
| (b) The persons first appointed as Class B members of the | 20 |
| Board of Banks and Trust Companies shall have the following | 21 |
| terms as designated by the Governor: (i) one member for a term | 22 |
| of one year, (ii) one member for a term of 2 years, (iii) one | 23 |
| member for a term of 3 years, and (iv) one member for a term of | 24 |
| 4 years. Thereafter, the term of office of each Class B member | 25 |
| shall be 4 years, except that an appointment to fill a vacancy |
|
|
|
HB4898 |
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LRB095 18640 MJR 44727 b |
|
| 1 |
| shall be for the unexpired term of the member whose term is | 2 |
| being filled. | 3 |
| (c) No Class A or Class B member of the Board of Banks and | 4 |
| Trust Companies shall serve more than 2 full 4-year terms of | 5 |
| office. | 6 |
| (d) Each member of the Board of Banks and Trust Companies | 7 |
| shall continue serving until his or her successor is appointed.
| 8 |
| (205 ILCS 5/82) (from Ch. 17, par. 394)
| 9 |
| Sec. 82. Secretary Commissioner , board; civil liability. | 10 |
| Neither the Secretary Commissioner , any deputy commissioner , | 11 |
| any member of the
Board of Banks and Trust Companies, any | 12 |
| member of the State Banking Board
of Illinois, nor any | 13 |
| examiner, assistant examiner or
other employee of the | 14 |
| Secretary's Commissioner's office shall be subject to any civil
| 15 |
| liability or penalty, whether for damages or otherwise, on | 16 |
| account of or
for any action taken or omitted to be taken in | 17 |
| their respective official
capacities, except when such acts or | 18 |
| omissions to act are corrupt or
malicious or unless such action | 19 |
| is taken or omitted to be taken not in good
faith and without | 20 |
| reasonable grounds.
| 21 |
| (Source: P.A. 85-204.)
| 22 |
| (205 ILCS 5/78 rep.)
| 23 |
| (205 ILCS 5/79 rep.)
| 24 |
| Section 20. The Illinois Banking Act is amended by |
|
|
|
HB4898 |
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LRB095 18640 MJR 44727 b |
|
| 1 |
| repealing Sections 78 and 79. | 2 |
| Section 25. The Illinois Bank Holding Company Act of 1957 | 3 |
| is amended by changing Sections 2 and 3.074 as follows:
| 4 |
| (205 ILCS 10/2) (from Ch. 17, par. 2502)
| 5 |
| Sec. 2. Unless the context requires otherwise:
| 6 |
| (a) "Bank" means any national banking association or any | 7 |
| bank, banking
association or savings bank, whether organized | 8 |
| under the laws of Illinois,
another state, the United States, | 9 |
| the District of Columbia, any territory of
the United States, | 10 |
| Puerto Rico, Guam, American Samoa or the Virgin Islands,
which | 11 |
| (1) accepts deposits that the depositor has a legal right to | 12 |
| withdraw on
demand by check or other negotiable order and (2) | 13 |
| engages in the business of
making commercial loans. "Bank" does | 14 |
| not include any organization operating
under Sections 25 or 25 | 15 |
| (a) of the Federal Reserve Act, or any organization
which does | 16 |
| not do business within the United States except as an incident | 17 |
| to
its activities outside the United States or any foreign | 18 |
| bank.
| 19 |
| (b) "Bank holding company" means any company that controls | 20 |
| or has control
over any bank or over any company that is or | 21 |
| becomes a bank holding company by
virtue of this Act.
| 22 |
| (c) "Banking office" means the principal office of a bank, | 23 |
| any branch
of a bank, or any other office at which a bank | 24 |
| accepts deposits, provided,
however, that "banking office" |
|
|
|
HB4898 |
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LRB095 18640 MJR 44727 b |
|
| 1 |
| shall not mean:
| 2 |
| (1) unmanned automatic teller machines, point of sale | 3 |
| terminals or other
similar unmanned electronic banking | 4 |
| facilities at which deposits may be
accepted; or
| 5 |
| (2) offices located outside the United States.
| 6 |
| (d) "Cause to be chartered", with respect to a specified | 7 |
| bank, means the
acquisition of control of such bank prior to | 8 |
| the time it commences to
engage in the banking business.
| 9 |
| (e) "Commissioner" means the Commissioner of Banks and Real | 10 |
| Estate
or a person authorized by the Commissioner, the Office | 11 |
| of Banks and Real Estate
Act, or this Act to act in the | 12 |
| Commissioner's stead.
| 13 |
| (f) "Community" means the contiguous area served by the | 14 |
| banking offices
of a bank, but need not be limited or expanded | 15 |
| to conform to the geographic
boundaries of units of local | 16 |
| government.
| 17 |
| (g) "Company" means any corporation, business trust, | 18 |
| voting trust,
association, partnership, joint venture, similar | 19 |
| organization or any other
trust unless by its terms it must | 20 |
| terminate within 25 years or not later
than 21 years and 10 | 21 |
| months after the death of individuals living on the
effective | 22 |
| date of the trust, but shall not include (1) an individual or | 23 |
| (2)
any corporation the majority of the shares of which are | 24 |
| owned by the United
States or by any state or any corporation | 25 |
| or community chest fund,
organized and operated exclusively for | 26 |
| religious, charitable, scientific,
literary or educational |
|
|
|
HB4898 |
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LRB095 18640 MJR 44727 b |
|
| 1 |
| purposes, no part of the net earnings of which
inure to the | 2 |
| benefit of any private shareholder or individual and no
| 3 |
| substantial part of the activities of which is carrying on | 4 |
| propaganda or
otherwise attempting to influence legislation.
| 5 |
| (h) A company "controls or has control over" a bank or | 6 |
| company if (1) it
directly or indirectly owns or controls or | 7 |
| has the power to vote, 25% or
more of the voting shares of any | 8 |
| class of voting securities of such bank or
company or (2) it | 9 |
| controls in any manner the election of a majority of the
| 10 |
| directors or trustees of such bank or company or (3) a trustee | 11 |
| holds for
the benefit of its shareholders, members or | 12 |
| employees, 25% or more of the
voting shares of such bank or | 13 |
| company or (4) it directly or indirectly
exercises a | 14 |
| controlling influence over the management or policies of such
| 15 |
| bank or company that is a bank holding company and the Board of | 16 |
| Governors
of the Federal Reserve System has so determined under | 17 |
| the federal Bank
Holding Company Act. In determining whether | 18 |
| any company controls or has
control over a bank or company: (i) | 19 |
| shares owned or controlled by any
subsidiary of a company shall | 20 |
| be deemed to be indirectly owned or
controlled by such company; | 21 |
| (ii) shares held or controlled, directly or
indirectly, by a | 22 |
| trustee or trustees for the benefit of a company, the
| 23 |
| shareholders or members of a company or the employees (whether | 24 |
| exclusively
or not) of a company, shall be deemed to be | 25 |
| controlled by such company; and
(iii) shares transferred, | 26 |
| directly or indirectly, by any bank holding
company (or by any |
|
|
|
HB4898 |
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LRB095 18640 MJR 44727 b |
|
| 1 |
| company which, but for such transfer, would be a bank
holding | 2 |
| company) to any transferee that is indebted
to the transferor | 3 |
| or that has one or more officers, directors, trustees or
| 4 |
| beneficiaries in common with or subject to control by the | 5 |
| transferor, shall
be deemed to be indirectly owned or | 6 |
| controlled by the transferor unless
the Board of Governors of | 7 |
| the Federal Reserve System has determined, under
the federal | 8 |
| Bank Holding Company Act, that the transferor is not in fact
| 9 |
| capable of controlling the transferee. Notwithstanding the | 10 |
| foregoing, no
company shall be deemed to have control of or | 11 |
| over a bank or bank holding
company (A) by virtue of its | 12 |
| ownership or control of shares in a fiduciary
capacity arising | 13 |
| in the ordinary course of its business; (B) by virtue of
its | 14 |
| ownership or control of shares acquired by it in connection | 15 |
| with its
underwriting of securities which are held only for | 16 |
| such period of time as
will permit the sale thereof upon a | 17 |
| reasonable basis; (C) by virtue of its
holding any shares as | 18 |
| collateral taken in the ordinary course of securing a
debt or | 19 |
| other obligation; (D) by virtue of its ownership or control of | 20 |
| shares
acquired in the ordinary course of collecting a debt or | 21 |
| other obligation
previously contracted in good faith, until 5 | 22 |
| years after the date acquired; or
(E) by virtue of its voting | 23 |
| rights with respect to shares of any bank or bank
holding | 24 |
| company acquired in the course of a proxy solicitation in the | 25 |
| case of a
company formed and operated for the sole purpose of | 26 |
| participating in a proxy
solicitation.
|
|
|
|
HB4898 |
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LRB095 18640 MJR 44727 b |
|
| 1 |
| (i) "Federal Bank Holding Company Act" means the | 2 |
| federal Bank Holding
Company Act of 1956, as now or | 3 |
| hereafter amended.
| 4 |
| (j) "Foreign bank" means any company organized under the | 5 |
| laws of a
foreign country which engages in the business of | 6 |
| banking or any subsidiary
or affiliate of any such company, | 7 |
| organized under such laws. "Foreign
bank" includes, without | 8 |
| limitation, foreign merchant banks and other
foreign | 9 |
| institutions that engage in banking activities usual in | 10 |
| connection
with the business of banking in the countries where | 11 |
| such foreign
institutions are organized or operating.
| 12 |
| (k) "Home state" means the home state of a foreign bank as | 13 |
| determined
pursuant to the federal International Banking Act of | 14 |
| 1978.
| 15 |
| (l) "Illinois bank" means a bank:
| 16 |
| (1) that is organized under the laws of this State or | 17 |
| of the United States; and
| 18 |
| (2) whose main banking premises is located in Illinois.
| 19 |
| (m) "Illinois bank holding company" means a bank holding | 20 |
| company:
| 21 |
| (1) whose principal place of business is Illinois; and
| 22 |
| (2) that is not directly or indirectly controlled by | 23 |
| another bank
holding company whose principal place of | 24 |
| business is a state other than
Illinois or by a foreign | 25 |
| bank whose Home State is a state other than Illinois.
| 26 |
| An out of state bank holding company that acquires
control |
|
|
|
HB4898 |
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LRB095 18640 MJR 44727 b |
|
| 1 |
| of one or more
Illinois banks or Illinois bank holding | 2 |
| companies pursuant to Sections
3.061 or 3.071 shall not be | 3 |
| deemed an Illinois bank holding company.
| 4 |
| (n) "Main banking premises" means the location that is | 5 |
| designated in a
bank's charter as its main office and that is | 6 |
| within the state in which the
total deposits held by all of the | 7 |
| banking offices of such bank are the
largest, as shown in the | 8 |
| most recent reports of condition or similar
reports filed by | 9 |
| such bank with state or federal regulatory authorities.
| 10 |
| (o) "Out of state bank" means a bank:
| 11 |
| (1) that is not an Illinois bank; and
| 12 |
| (2) whose main banking premises is located in a state | 13 |
| other
than Illinois.
| 14 |
| (p) "Out of state bank holding company" means a
bank | 15 |
| holding company:
| 16 |
| (1) that is not an Illinois bank holding company;
| 17 |
| (2) whose principal place of business is a state other
| 18 |
| than Illinois the laws of which expressly authorize the | 19 |
| acquisition by an
Illinois bank holding company of a bank | 20 |
| or bank holding company in that
state under qualifications | 21 |
| and conditions which are not unduly restrictive,
as | 22 |
| determined by the Secretary Commissioner , when compared to | 23 |
| those imposed by the
laws of Illinois.
| 24 |
| (q) "Principal place of business" means,
with respect to a | 25 |
| bank holding company, the state in which the total
deposits | 26 |
| held by all of the banking offices of all of the bank |
|
|
|
HB4898 |
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LRB095 18640 MJR 44727 b |
|
| 1 |
| subsidiaries
of such bank holding company are the largest, as | 2 |
| shown in the most recent
reports of condition or similar | 3 |
| reports filed by the bank holding company's
bank subsidiaries | 4 |
| with state or federal regulatory authorities.
| 5 |
| (q-5) "Secretary" means the Secretary of Financial and | 6 |
| Professional Regulation
or a person authorized by the | 7 |
| Secretary, the Office of Banks and Real Estate
Act, or this Act | 8 |
| to act in the Secretary's stead. | 9 |
| (r) "State" or "states" when used in this Act means any | 10 |
| State of the
United States, the District of Columbia, any | 11 |
| territory of the United
States, Puerto Rico, Guam, American | 12 |
| Samoa or the Virgin Islands.
| 13 |
| (s) "Subsidiary", with respect to a specified bank holding | 14 |
| company,
means any bank or company controlled by such bank | 15 |
| holding company.
| 16 |
| (Source: P.A. 89-508, eff. 7-3-96.)
| 17 |
| (205 ILCS 10/3.074) (from Ch. 17, par. 2510.04)
| 18 |
| Sec. 3.074. Powers; administrative review.
| 19 |
| (a) The Secretary Commissioner shall have the power and | 20 |
| authority:
| 21 |
| (1) to promulgate reasonable procedural rules for the | 22 |
| purposes
of
administering the provisions of this Act. The | 23 |
| Secretary Commissioner shall specify
the form of any | 24 |
| application, report or document that is required to be
| 25 |
| filed with the Secretary Commissioner pursuant to this Act;
|
|
|
|
HB4898 |
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LRB095 18640 MJR 44727 b |
|
| 1 |
| (2) to issue orders for the purpose of administering | 2 |
| the
provisions of
this Act and any rule promulgated in | 3 |
| accordance with this Act;
| 4 |
| (3) to appoint hearing officers to execute any of the | 5 |
| powers
granted to
the Secretary Commissioner under this | 6 |
| Section for the purpose of administering this
Act or any | 7 |
| rule promulgated in accordance with this Act; and
| 8 |
| (4) to subpoena witnesses, to compel their attendance, | 9 |
| to
administer an
oath, to examine any person under oath and | 10 |
| to require the production of any
relevant books, papers, | 11 |
| accounts and documents in the course of and
pursuant to any | 12 |
| investigation or hearing being conducted or any action
| 13 |
| being taken by the Secretary Commissioner in respect to any | 14 |
| matter relating to the
duties imposed upon or the powers | 15 |
| vested in the Secretary Commissioner under the
provisions | 16 |
| of this Act or any rule promulgated in accordance with this
| 17 |
| Act.
| 18 |
| (b) Whenever, in the opinion of the Secretary Commissioner , | 19 |
| any
director,
officer, employee, or agent of any bank holding | 20 |
| company or subsidiary or
affiliate of
that company shall have | 21 |
| violated any law, rule, or order relating to that bank
holding | 22 |
| company or subsidiary or affiliate of that company, shall have
| 23 |
| obstructed or
impeded any examination or investigation by the | 24 |
| Secretary Commissioner , shall have
engaged in an unsafe or | 25 |
| unsound practice in conducting the business
of that bank | 26 |
| holding company or subsidiary or affiliate of that company, or
|
|
|
|
HB4898 |
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LRB095 18640 MJR 44727 b |
|
| 1 |
| shall have
violated any law or engaged or participated in any | 2 |
| unsafe or unsound
practice in connection with any financial | 3 |
| institution or other business
entity such that the character | 4 |
| and fitness of the director, officer,
employee, or agent does | 5 |
| not assure reasonable promise of safe and sound
operation of | 6 |
| the bank holding company, the Secretary
Commissioner may issue | 7 |
| an order of removal. If, in the opinion of the Secretary
| 8 |
| Commissioner , any former director, officer, employee, or agent | 9 |
| of a bank
holding company or subsidiary or affiliate of that | 10 |
| company, prior to the
termination of his or her service with | 11 |
| that holding company or subsidiary or
affiliate of that | 12 |
| company, violated any law, rule, or order relating to that
bank | 13 |
| holding company or subsidiary or affiliate of that company, | 14 |
| obstructed
or impeded any examination or investigation by the | 15 |
| Secretary Commissioner , engaged
in an unsafe or unsound | 16 |
| practice in conducting the business of that bank
holding
| 17 |
| company or subsidiary or affiliate of that company, or violated | 18 |
| any law or
engaged
or participated in any unsafe or unsound | 19 |
| practice in connection with any
financial institution or other | 20 |
| business entity such that the character
and fitness of the | 21 |
| director, officer, employee, or agent would not have
assured | 22 |
| reasonable promise of safe and sound operation of the bank
| 23 |
| holding company, the Secretary Commissioner may issue an order | 24 |
| prohibiting that
person from further service with a bank | 25 |
| holding company or subsidiary or
affiliate of that company as a | 26 |
| director, officer, employee, or agent.
|
|
|
|
HB4898 |
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LRB095 18640 MJR 44727 b |
|
| 1 |
| An order
issued
pursuant to this subsection shall be served | 2 |
| upon the director, officer,
employee, or agent. A copy of the | 3 |
| order shall be sent to each director of
the bank holding | 4 |
| company affected by registered mail. The person affected
by the | 5 |
| action may request a hearing before the Board of Banks and | 6 |
| Trust Companies State Banking Board within
10 days after | 7 |
| receipt of the order. The hearing shall be held by the Board of | 8 |
| Banks and Trust Companies State
Banking Board within 30 days | 9 |
| after the request has been received by the Board of Banks and | 10 |
| Trust Companies State
Banking
Board . The Board of Banks and | 11 |
| Trust Companies State Banking Board shall make a determination | 12 |
| approving,
modifying, or
disapproving the order of the | 13 |
| Secretary Commissioner as its final administrative
decision.
| 14 |
| If a hearing is held by the Board of Banks and Trust Companies | 15 |
| State Banking Board , the Board of Banks and Trust Companies | 16 |
| State Banking Board shall
make its determination
within 60 days | 17 |
| from the conclusion of the hearing. Any person affected by a
| 18 |
| decision of the Board of Banks and Trust Companies State | 19 |
| Banking Board under this subsection
may have the decision | 20 |
| reviewed only under and in accordance with the
Administrative
| 21 |
| Review Law and the rules adopted pursuant thereto. A copy of | 22 |
| the order
shall also be served upon the bank holding company of | 23 |
| which he is a director,
officer,
employee, or agent, whereupon | 24 |
| he shall cease to be a director, officer,
employee, or agent of | 25 |
| that bank holding company.
| 26 |
| The Secretary Commissioner may
institute a
civil action |
|
|
|
HB4898 |
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LRB095 18640 MJR 44727 b |
|
| 1 |
| against the director, officer, employee, or agent of the bank
| 2 |
| holding
company, against whom
any order provided for by this | 3 |
| subsection has been
issued, to enforce compliance with or to | 4 |
| enjoin any violation of the terms
of the order.
| 5 |
| Any person who has been the subject of an order of removal
| 6 |
| or an order of prohibition issued by the Secretary Commissioner | 7 |
| under this subsection,
subdivision (7) of Section 48 of the | 8 |
| Illinois Banking Act, or
Section 5-6 of the Corporate Fiduciary | 9 |
| Act may not thereafter serve as
director, officer, employee, or | 10 |
| agent of any holding company, State bank, or
branch
of any | 11 |
| out-of-state bank, of any corporate fiduciary, as defined in
| 12 |
| Section 1-5.05 of the Corporate Fiduciary Act, or of any other | 13 |
| entity
that is subject to licensure or regulation by the | 14 |
| Secretary Commissioner or the
Department of Financial and | 15 |
| Professional Regulation Office of Banks and Real Estate unless | 16 |
| the Secretary Commissioner has granted
prior approval in | 17 |
| writing.
| 18 |
| (c) All final administrative decisions of the Secretary
| 19 |
| Commissioner under
this
Act shall be subject to judicial review | 20 |
| pursuant to provisions of the
Administrative Review Law. For | 21 |
| matters involving administrative review,
venue shall be in | 22 |
| either Sangamon County or Cook County.
| 23 |
| (Source: P.A. 92-483, eff. 8-23-01.)
| 24 |
| Section 30. The Pawnbroker Regulation Act is amended by | 25 |
| changing Section 0.05 as follows:
|
|
|
|
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|
| 1 |
| (205 ILCS 510/0.05)
| 2 |
| Sec. 0.05. Administration of Act.
| 3 |
| (a) This Act shall be administered by the Secretary
| 4 |
| Commissioner of Banks and Real Estate who shall have all of the | 5 |
| following
powers and duties in administering this Act:
| 6 |
| (1) To promulgate reasonable rules for the purpose of | 7 |
| administering the
provisions of this Act.
| 8 |
| (2) To issue orders for the purpose of administering | 9 |
| the provisions of
this
Act and any rule promulgated in | 10 |
| accordance with this Act.
| 11 |
| (3) To appoint hearing officers and to hire employees | 12 |
| or to contract with
appropriate persons to execute any of | 13 |
| the powers granted to
the Secretary Commissioner under this | 14 |
| Section for the purpose of administering this
Act and any | 15 |
| rule promulgated in accordance with this Act.
| 16 |
| (4) To subpoena witnesses, to compel their attendance, | 17 |
| to administer an
oath, to examine any person under oath, | 18 |
| and to require the production of any
relevant books, | 19 |
| papers, accounts, and documents in the course of and | 20 |
| pursuant
to any investigation being conducted, or any | 21 |
| action being taken, by the Secretary
Commissioner in | 22 |
| respect of any matter relating to the duties imposed upon, | 23 |
| or
the powers vested in, the Secretary Commissioner under | 24 |
| the provisions of this Act or any
rule promulgated in | 25 |
| accordance with this Act.
|
|
|
|
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LRB095 18640 MJR 44727 b |
|
| 1 |
| (5) To conduct hearings.
| 2 |
| (6) To impose civil penalties graduated up to $1,000 | 3 |
| against any person
for each
violation of any provision of | 4 |
| this Act, any rule promulgated in
accordance
with this Act, | 5 |
| or any order of the Secretary Commissioner
based upon the | 6 |
| seriousness of the violation.
| 7 |
| (6.5) To initiate, through the Attorney General, | 8 |
| injunction proceedings
whenever it appears to the | 9 |
| Secretary Commissioner that any person, whether licensed | 10 |
| under
this Act or not, is engaged or about to engage in an | 11 |
| act or practice that
constitutes or will constitute a | 12 |
| violation of this Act or any rule prescribed
under the | 13 |
| authority of this Act. The Secretary Commissioner may, in | 14 |
| his or her
discretion, through the Attorney General, apply | 15 |
| for an injunction, and upon a
proper showing, any circuit | 16 |
| court may enter a permanent or preliminary
injunction or a | 17 |
| temporary restraining order without bond to enforce this | 18 |
| Act in
addition to the penalties and other remedies | 19 |
| provided for in this Act.
| 20 |
| (7) To issue a cease and desist order and, for | 21 |
| violations of
this Act, any order issued by the Secretary | 22 |
| Commissioner pursuant to this Act, any
rule promulgated in | 23 |
| accordance with this Act,
or any other applicable law in | 24 |
| connection with the operation of a pawnshop,
to suspend a | 25 |
| license issued under this Act for up to 30 days.
| 26 |
| (8) To determine
compliance with applicable law and |
|
|
|
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LRB095 18640 MJR 44727 b |
|
| 1 |
| rules related to the operation of pawnshops
and to verify | 2 |
| the accuracy of reports filed with the Secretary | 3 |
| Commissioner , the Secretary
Commissioner , not more than | 4 |
| one time every 2 years, may, but is not required
to, | 5 |
| conduct a routine examination of a pawnshop, and in
| 6 |
| addition, the Secretary Commissioner may examine the | 7 |
| affairs of any pawnshop at any time if the Secretary | 8 |
| Commissioner
has
reasonable cause to believe that unlawful | 9 |
| or fraudulent activity is occurring,
or has occurred, | 10 |
| therein.
| 11 |
| (9) In response to a complaint, to address any | 12 |
| inquiries to any pawnshop
in relation to its affairs, and | 13 |
| it shall be the duty of the pawnshop to
promptly reply in | 14 |
| writing to such inquiries. The Secretary Commissioner may | 15 |
| also require
reports or information from any pawnshop at | 16 |
| any time the Secretary Commissioner may deem
desirable.
| 17 |
| (10) To revoke a license issued under this Act if the | 18 |
| Secretary Commissioner
determines that (a) a licensee has | 19 |
| been convicted of a felony in connection
with the | 20 |
| operations of a pawnshop; (b) a licensee knowingly, | 21 |
| recklessly, or
continuously violated this Act, a rule | 22 |
| promulgated in
accordance with this Act, or any order of | 23 |
| the Secretary Commissioner ; (c) a fact or
condition exists | 24 |
| that, if it had existed or had been known at the time of | 25 |
| the
original application, would have justified license | 26 |
| refusal; or (d) the licensee
knowingly submits materially |
|
|
|
HB4898 |
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LRB095 18640 MJR 44727 b |
|
| 1 |
| false or misleading documents with the intent to
deceive | 2 |
| the Secretary Commissioner or any other party ; or (e) the | 3 |
| licensee is unable or ceases to continue to operate the | 4 |
| pawnshop .
| 5 |
| (10.2) To remove or prohibit the employment of any | 6 |
| officer, director, or employee who engages or who has | 7 |
| engaged in unsafe, unsound, or unlawful activities. | 8 |
| (10.7) To prohibit the hiring of employees who have | 9 |
| been convicted of a felony or of any criminal offense | 10 |
| relating to dishonesty or breach of trust in connection | 11 |
| with the operation of a pawnshop.
| 12 |
| (11) Following license revocation, to take possession | 13 |
| and control of a
pawnshop for the purpose of examination, | 14 |
| reorganization, or liquidation through
receivership and to | 15 |
| appoint a receiver, which may be the Secretary | 16 |
| Commissioner , a
pawnshop, or
another suitable person.
| 17 |
| (b) After consultation with local law enforcement | 18 |
| officers, the Attorney
General, and the industry, the Secretary | 19 |
| Commissioner may by rule require that
pawnbrokers
operate video | 20 |
| camera surveillance systems to record photographic
| 21 |
| representations of customers and retain the tapes produced for | 22 |
| up to 30 days.
| 23 |
| (c) Pursuant to rule, the Secretary Commissioner shall | 24 |
| issue licenses on an annual or
multi-year basis for operating a
| 25 |
| pawnshop. Any person currently operating or
who has operated a | 26 |
| pawnshop in this State during the 2 years preceding the
|
|
|
|
HB4898 |
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LRB095 18640 MJR 44727 b |
|
| 1 |
| effective date of this amendatory Act of 1997 shall be issued a | 2 |
| license upon
payment of the fee required under this Act. New | 3 |
| applicants shall meet
standards for a license as established by | 4 |
| the Secretary Commissioner .
Except with the prior written | 5 |
| consent of the Secretary Commissioner , no individual,
either a | 6 |
| new applicant or a person currently operating a pawnshop, may | 7 |
| be
issued a license to operate a pawnshop if the individual has | 8 |
| been convicted
of a felony or of any criminal offense relating | 9 |
| to dishonesty or breach of
trust in connection with the | 10 |
| operations of a pawnshop.
The Secretary Commissioner shall
| 11 |
| establish license fees. The fees shall not exceed the amount | 12 |
| reasonably
required for administration of this Act. It shall be | 13 |
| unlawful to operate a
pawnshop without a license issued by the | 14 |
| Secretary Commissioner .
| 15 |
| (d) In addition to license fees, the Secretary Commissioner | 16 |
| may, by rule, establish
fees in connection with a review, | 17 |
| approval, or provision of a service, and levy
a reasonable | 18 |
| charge to recover the cost of the review, approval, or service
| 19 |
| (such as a change in control, change in location, or renewal of | 20 |
| a license).
The Secretary Commissioner may also levy a | 21 |
| reasonable charge to recover the cost of an
examination if the | 22 |
| Secretary Commissioner determines that unlawful or fraudulent | 23 |
| activity
has occurred. The Secretary Commissioner may require | 24 |
| payment of the fees and charges
provided in this Act by | 25 |
| certified check, money order, an electronic transfer of
funds, | 26 |
| or an automatic debit of an account.
|
|
|
|
HB4898 |
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LRB095 18640 MJR 44727 b |
|
| 1 |
| (e) The Pawnbroker Regulation Fund is established as a | 2 |
| special
fund in the State treasury. Moneys collected under this | 3 |
| Act shall be deposited
into the Fund and used for the | 4 |
| administration of this Act.
In the event that General Revenue | 5 |
| Funds are appropriated to the Office of the
Secretary of | 6 |
| Financial and Professional Regulation Commissioner of Banks | 7 |
| and Real Estate for the initial implementation of this
Act, the | 8 |
| Governor may direct the repayment from the Pawnbroker | 9 |
| Regulation
Fund to the General Revenue Fund of such advance in | 10 |
| an amount not to exceed
$30,000. The Governor may direct this | 11 |
| interfund transfer at such time as he
deems appropriate by | 12 |
| giving appropriate written notice. Moneys in the Pawnbroker | 13 |
| Regulation Fund may be transferred to the Professions Indirect | 14 |
| Cost Fund, as authorized under Section 2105-300 of the | 15 |
| Department of Professional Regulation Law of the Civil | 16 |
| Administrative Code of Illinois.
| 17 |
| (f) The Secretary Commissioner may, by rule, require all | 18 |
| pawnshops to provide for
the expenses that would arise from the | 19 |
| administration of the receivership of a
pawnshop under this Act | 20 |
| through the assessment of fees, the requirement to
pledge | 21 |
| surety bonds, or such other methods as determined by the | 22 |
| Secretary Commissioner .
| 23 |
| (g) All final administrative decisions of the Secretary | 24 |
| Commissioner under
this Act shall be subject to judicial review | 25 |
| pursuant to the provisions of the
Administrative Review Law. | 26 |
| For matters involving administrative review, venue
shall be in
|
|
|
|
HB4898 |
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LRB095 18640 MJR 44727 b |
|
| 1 |
| either Sangamon County or Cook County.
| 2 |
| (Source: P.A. 94-91, eff. 7-1-05.)
| 3 |
| Section 40. The Corporate Fiduciary Act is amended by | 4 |
| changing Sections 1-5.15, 2-7, 4-5, 5-1, 5-3, 5-5, 5-6, 5-8, | 5 |
| and 5-9 as follows:
| 6 |
| (205 ILCS 620/1-5.15 new)
| 7 |
| Sec. 1-5.15. Secretary of Financial and Professional | 8 |
| Regulation. "Secretary" means the Secretary of Financial and | 9 |
| Professional Regulation or a person authorized by the | 10 |
| Secretary, the Office of Banks and Real Estate Act, or this Act | 11 |
| to act in the Secretary's stead.
| 12 |
| (205 ILCS 620/2-7) (from Ch. 17, par. 1552-7)
| 13 |
| Sec. 2-7. A corporate fiduciary so incorporated or
| 14 |
| authorized after January 1, 1988, shall have minimum capital as | 15 |
| determined by the Secretary Commissioner as
necessary for safe | 16 |
| and sound operation of a corporate
fiduciary. The Commissioner | 17 |
| shall record such organization
capital requirements in the | 18 |
| Office of the
Secretary of State.
During the time that a | 19 |
| corporate fiduciary shall continue in its
fiduciary business, | 20 |
| it shall not withdraw, or permit to be withdrawn,
either in the | 21 |
| form of dividends or otherwise, any portion of its capital
| 22 |
| except as approved by the Secretary Commissioner . The Secretary | 23 |
| Commissioner may, after a
corporate fiduciary has been |
|
|
|
HB4898 |
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LRB095 18640 MJR 44727 b |
|
| 1 |
| incorporated or authorized require additional
capital if the | 2 |
| Secretary Commissioner finds the condition and operations of | 3 |
| the
corporate fiduciary or its proposed scope of operations | 4 |
| require such
additional capital to achieve or maintain a safe | 5 |
| and sound condition.
| 6 |
| (Source: P.A. 90-301, eff. 8-1-97.)
| 7 |
| (205 ILCS 620/4-5) (from Ch. 17, par. 1554-5)
| 8 |
| Sec. 4-5. Certificate of authority; fees; certificate of
| 9 |
| reciprocity. | 10 |
| (a) Prior to the time any foreign corporation acts in this | 11 |
| State as
testamentary trustee, trustee appointed by any court, | 12 |
| trustee under any written
agreement, declaration or instrument | 13 |
| of trust, executor, administrator,
administrator to collect, | 14 |
| guardian or in any other like fiduciary capacity,
such foreign | 15 |
| corporation shall apply to the Secretary of Financial and | 16 |
| Professional Regulation Commissioner of Banks and Real
Estate | 17 |
| for a certificate of authority with reference to
the fiduciary | 18 |
| capacity or capacities in which such foreign corporation | 19 |
| proposes
to act in this State, and the Secretary of Financial | 20 |
| and Professional Regulation Commissioner of Banks and Real | 21 |
| Estate shall issue a certificate of authority to such | 22 |
| corporation
concerning only the fiduciary capacity or such of | 23 |
| the fiduciary capacities to
which the application pertains and | 24 |
| with respect to which he has been furnished
satisfactory | 25 |
| evidence that such foreign corporation meets the requirements |
|
|
|
HB4898 |
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LRB095 18640 MJR 44727 b |
|
| 1 |
| of
Section 4-2 of this Act. The certificate of authority shall | 2 |
| set forth the
fiduciary capacity or capacities, as the case may | 3 |
| be, for which the certificate
is issued, and shall recite and | 4 |
| certify that such foreign corporation is
eligible to act in | 5 |
| this State in such fiduciary capacity or capacities, as the
| 6 |
| case may be, pursuant to the provisions of this Act. The | 7 |
| certificate of
authority shall remain in full force and effect | 8 |
| until such time as such foreign
corporation violates any order | 9 |
| of the Director of the Division or Secretary arising under this | 10 |
| Act, any provision of this Act, or any rule promulgated in | 11 |
| accordance with this Act or ceases to be eligible so to act | 12 |
| under the provisions of this Act.
| 13 |
| (b) Each foreign corporation making application for a | 14 |
| certificate of
authority shall pay reasonable fees to the | 15 |
| Secretary of Financial and Professional Regulation | 16 |
| Commissioner of Banks and Real
Estate as determined by the | 17 |
| Secretary Commissioner for the services
of his office.
| 18 |
| (c) Any foreign corporation holding a certificate of
| 19 |
| reciprocity which recites and certifies that such foreign
| 20 |
| corporation is eligible to act in this State in any such
| 21 |
| fiduciary capacity pursuant to the provisions of Article IV of
| 22 |
| this Act or any predecessor Act upon the same subject, issued
| 23 |
| prior to the effective date of this amendatory Act of 1987 may
| 24 |
| act in this State under such certificate of reciprocity in any
| 25 |
| such fiduciary capacity without applying for a new certificate | 26 |
| of
authority. Such certificate of reciprocity shall remain in |
|
|
|
HB4898 |
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LRB095 18640 MJR 44727 b |
|
| 1 |
| full
force and effect until such time as such foreign | 2 |
| corporation
ceases to be eligible so to act under the | 3 |
| provisions of Article
IV of this Act.
| 4 |
| (d) Any foreign corporation acting in Illinois under a | 5 |
| certificate of
authority or a certificate of reciprocity shall | 6 |
| report changes in its name
or address to the Secretary | 7 |
| Commissioner and shall notify the Secretary Commissioner when | 8 |
| it is
no longer serving as a corporate fiduciary in Illinois.
| 9 |
| (e) The provisions of this Section shall not apply to a | 10 |
| foreign
corporation establishing or acquiring and maintaining | 11 |
| a place of business in
this State to conduct business as a | 12 |
| fiduciary in accordance with Article IVA
of this Act.
| 13 |
| (Source: P.A. 92-483, eff. 8-23-01.)
| 14 |
| (205 ILCS 620/5-1) (from Ch. 17, par. 1555-1)
| 15 |
| Sec. 5-1. Secretary's Commissioner's powers. The Secretary | 16 |
| of Financial and Professional Regulation Commissioner of Banks | 17 |
| and Real
Estate shall have the following powers and
authority | 18 |
| and is charged with the duties and responsibilities
designated | 19 |
| in this Act:
| 20 |
| (a) To promulgate, in accordance with the Illinois | 21 |
| Administrative Procedure
Act, reasonable rules for the purpose | 22 |
| of administering the provisions of this
Act and for the purpose | 23 |
| of incorporating by reference rules promulgated by the
Federal | 24 |
| Deposit Insurance Corporation, the Board of Governors of the | 25 |
| Federal
Reserve System, the Office of the Comptroller of the |
|
|
|
HB4898 |
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LRB095 18640 MJR 44727 b |
|
| 1 |
| Currency, the
Office of Thrift Supervision, or their successors | 2 |
| that pertain to corporate
fiduciaries, including, but not | 3 |
| limited to, standards for the operation and
conduct of the | 4 |
| affairs of corporate fiduciaries;
| 5 |
| (b) To issue orders for the purpose of administering the
| 6 |
| provisions of this Act and any rule promulgated in accordance
| 7 |
| with this Act;
| 8 |
| (c) To appoint hearing officers to conduct hearings held
| 9 |
| pursuant to any of the powers granted to the Secretary | 10 |
| Commissioner under
this Section for the purpose of | 11 |
| administering this Act and any
rule promulgated in accordance | 12 |
| with this Act;
| 13 |
| (d) To subpoena witnesses, to compel their attendance, to
| 14 |
| administer an oath, to examine any person under oath and to
| 15 |
| require the production of any relevant books, papers, accounts
| 16 |
| and documents in the course of and pursuant to any | 17 |
| investigation
being conducted, or any action being taken, by | 18 |
| the Secretary Commissioner
in respect of any matter relating to | 19 |
| the duties imposed upon, or
the powers vested in, the Secretary | 20 |
| Commissioner under the provisions of
this Act, or any rule or | 21 |
| regulation promulgated in accordance
with this Act;
| 22 |
| (e) To conduct hearings;
| 23 |
| (f) To promulgate the form and content of any applications | 24 |
| required
under this Act;
| 25 |
| (g) To impose civil penalties in an amount not to exceed | 26 |
| the amount a federal regulatory agency is authorized to charge |
|
|
|
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LRB095 18640 MJR 44727 b |
|
| 1 |
| under federal law of up to $10,000 against any
person or | 2 |
| corporate fiduciary for each violation of any provision
of this | 3 |
| Act, any rule promulgated in accordance with this Act,
any | 4 |
| order of the Secretary Commissioner or any other action which, | 5 |
| in the Secretary's
Commissioner's discretion, is a detriment or | 6 |
| impediment to
accepting or executing trusts; and
| 7 |
| (h) To address any inquiries to any corporate fiduciary, or
| 8 |
| the officers thereof, in relation to its doings and conditions,
| 9 |
| or any other matter connected with its affairs, and it shall be
| 10 |
| the duty of any corporate fiduciary or person so addressed, to
| 11 |
| promptly reply in writing to such inquiries. The Secretary | 12 |
| Commissioner
may also require reports from any corporate | 13 |
| fiduciary at any time
he may deem desirable.
| 14 |
| (Source: P.A. 89-364, eff. 8-18-95; 89-508, eff. 7-3-96.)
| 15 |
| (205 ILCS 620/5-3) (from Ch. 17, par. 1555-3)
| 16 |
| Sec. 5-3. Violations; orders.
| 17 |
| (a) Whenever it appears to the Secretary Commissioner
from | 18 |
| any examination, statement of condition or report, that any
| 19 |
| corporate fiduciary has committed any violation of law, has | 20 |
| made
or published a false statement of condition or is | 21 |
| conducting its
business in an unsafe, unsound or unauthorized | 22 |
| manner, he may shall ,
by an order under his signature, direct | 23 |
| the discontinuance of
such illegal and unsafe, unsound or | 24 |
| unauthorized practices and
that the corporate fiduciary | 25 |
| strictly conform with the
requirements of the law, and with |
|
|
|
HB4898 |
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LRB095 18640 MJR 44727 b |
|
| 1 |
| safety and security in its
transactions.
| 2 |
| (b) If a corporate fiduciary refuses or neglects to make a
| 3 |
| required statement of condition or any report required under | 4 |
| this
Act, or to comply with an order as above stated, or if it | 5 |
| appears
to the Secretary Commissioner that it is unsafe or | 6 |
| inexpedient for the
corporate fiduciary to continue to transact | 7 |
| business, or that
extraordinary withdrawals of money are | 8 |
| jeopardizing the interests
of remaining depositors, or that any | 9 |
| corporate fiduciary or
officer of a corporate fiduciary has | 10 |
| abused his trust or is
guilty of misconduct in his official | 11 |
| position, injurious to the
corporate fiduciary, or that it has | 12 |
| suffered a serious loss, he
shall enter an order appropriate to | 13 |
| the circumstances, which may
include the appointment of a | 14 |
| receiver as hereinafter provided,
the taking of possession of | 15 |
| the corporate fiduciary, or the removal of
a
director, officer, | 16 |
| employee, or agent of the corporate fiduciary, or
he may, | 17 |
| represented by the Attorney General, seek an injunction or | 18 |
| other
appropriate order from the court.
| 19 |
| (c) No dividends shall be paid by a corporate fiduciary | 20 |
| while it
continues its business as a corporate fiduciary to an | 21 |
| amount greater than
its net profits then on hand, deducting | 22 |
| first therefrom its losses
and bad debts.
| 23 |
| (Source: P.A. 92-483, eff. 8-23-01.)
| 24 |
| (205 ILCS 620/5-5) (from Ch. 17, par. 1555-5)
| 25 |
| Sec. 5-5. A special meeting of the board of directors may
|
|
|
|
HB4898 |
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LRB095 18640 MJR 44727 b |
|
| 1 |
| be held upon call by the Secretary Commissioner or an examiner | 2 |
| appointed
under the provisions of this Act, upon not less than | 3 |
| 12 hours
notice of such meeting by personal service of such | 4 |
| notice, or by
mailing said notice to each of the directors at | 5 |
| his residence as
shown by the books of the corporate fiduciary , | 6 |
| or by any other method of delivery, provided such method | 7 |
| provides proof of service and receipt .
| 8 |
| (Source: P.A. 85-858.)
| 9 |
| (205 ILCS 620/5-6) (from Ch. 17, par. 1555-6)
| 10 |
| Sec. 5-6. Removal orders. Whenever, in the opinion of the | 11 |
| Secretary Commissioner ,
any director, officer, employee, or | 12 |
| agent of a corporate fiduciary
or subsidiary or corporate | 13 |
| parent of the corporate fiduciary
shall have violated any law, | 14 |
| rule, or order relating to the corporate
fiduciary
or | 15 |
| subsidiary or corporate parent of the corporate fiduciary, | 16 |
| shall have
engaged in an unsafe or unsound practice in | 17 |
| conducting
the
business of the corporate fiduciary
or | 18 |
| subsidiary or corporate parent of the corporate fiduciary, or | 19 |
| shall
have violated any law or
engaged or participated in any | 20 |
| unsafe or unsound practice in connection with
any financial | 21 |
| institution or other business entity such that the character | 22 |
| and
fitness of the director, officer, employee, or agent does | 23 |
| not assure reasonable
promise of safe and sound operation of | 24 |
| the corporate fiduciary
or subsidiary or corporate parent of | 25 |
| the corporate fiduciary, the Secretary
Commissioner may issue |
|
|
|
HB4898 |
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LRB095 18640 MJR 44727 b |
|
| 1 |
| an order of
removal.
If in the opinion of the Secretary | 2 |
| Commissioner , any former director, officer,
employee, or agent | 3 |
| of a corporate fiduciary
or subsidiary or corporate parent of | 4 |
| the corporate fiduciary, prior to the
termination of his
or her | 5 |
| service with the corporate fiduciary
or subsidiary or corporate | 6 |
| parent of the corporate fiduciary, violated any
law, rule, or | 7 |
| order
relating to the corporate fiduciary
or subsidiary or | 8 |
| corporate parent of the corporate fiduciary
or engaged in an | 9 |
| unsafe or unsound practice
in conducting the business of the | 10 |
| corporate fiduciary
or subsidiary or corporate parent of the | 11 |
| corporate fiduciary
or violated any law or
engaged or | 12 |
| participated in any unsafe or unsound practice in connection | 13 |
| with
any financial institution or other business entity such | 14 |
| that the character and
fitness of the director, officer, | 15 |
| employee, or agent would not have assured
reasonable promise of | 16 |
| safe and sound operation of the corporate fiduciary
or | 17 |
| subsidiary or corporate parent of the corporate fiduciary,
the | 18 |
| Secretary
Commissioner may issue
an order prohibiting that | 19 |
| person from further service with a corporate
fiduciary
or | 20 |
| subsidiary or corporate parent of the corporate fiduciary
as a | 21 |
| director, officer, employee, or agent. An order issued pursuant
| 22 |
| to this Section shall be served upon the
director, officer, | 23 |
| employee, or
agent. A copy of the order shall be sent to each | 24 |
| director of the corporate
fiduciary
affected by personal | 25 |
| service, certified mail return receipt
requested, or any other | 26 |
| method that provides proof of service and receipt. The
person |
|
|
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| affected by the action may request a hearing before the Board | 2 |
| of Banks and Trust Companies
State Banking Board of Illinois , | 3 |
| hereafter "the Board", within 10 days after
receipt of the | 4 |
| order of removal or prohibition. The hearing shall be held
by | 5 |
| the Board
according to the same procedures used pursuant to | 6 |
| Section 48 of the Illinois
Banking Act, and the hearing shall | 7 |
| be held within 30 days after the request has
been received by | 8 |
| the Board. After concluding the hearing, the Board shall make
a | 9 |
| determination approving, modifying, or disapproving the order | 10 |
| of the Secretary
Commissioner as its final administrative | 11 |
| decision. A copy of the order shall
be served upon the | 12 |
| corporate fiduciary
of which the person is a
director, officer, | 13 |
| employee, or agent, whereupon the person shall cease to be a
| 14 |
| director,
officer, employee, or agent of the corporate | 15 |
| fiduciary. Any person who has
been removed or prohibited by an | 16 |
| order of the Secretary Commissioner under this
Section or | 17 |
| subsection
(7) of Section 48 of the Illinois Banking Act may | 18 |
| not thereafter serve as
director, officer, employee, or agent | 19 |
| of any State bank or corporate fiduciary,
or of any other | 20 |
| entity that is subject to licensure or regulation by the | 21 |
| Secretary
Commissioner or the Department of Financial and | 22 |
| Professional Regulation Office of Banks and Real Estate unless | 23 |
| the Secretary Commissioner
has granted prior approval in | 24 |
| writing. The Secretary Commissioner may institute a civil
| 25 |
| action against the
director,
officer, employee, or agent | 26 |
| subject to an order issued under this Section and
against the |
|
|
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| 1 |
| corporate fiduciary
to enforce compliance with or to enjoin any
| 2 |
| violation of the terms of the order.
| 3 |
| (Source: P.A. 92-483, eff. 8-23-01.)
| 4 |
| (205 ILCS 620/5-8) (from Ch. 17, par. 1555-8)
| 5 |
| Sec. 5-8. All final administrative decisions of the | 6 |
| Secretary
Commissioner , or of the Board of Banks and Trust | 7 |
| Companies State Banking Board of Illinois where
this Act | 8 |
| provides a hearing before such Board to review a
decision of | 9 |
| the Secretary Commissioner , shall be subject to review pursuant
| 10 |
| to the provisions of the Administrative Review Law, as now or
| 11 |
| hereafter amended, and the rules adopted pursuant thereto.
For | 12 |
| matters involving administrative review, venue shall be in | 13 |
| either
Sangamon County or Cook County.
| 14 |
| (Source: P.A. 86-754.)
| 15 |
| (205 ILCS 620/5-9) (from Ch. 17, par. 1555-9)
| 16 |
| Sec. 5-9. Statement of condition.
| 17 |
| (a) Each corporate fiduciary shall file with
the Secretary | 18 |
| Commissioner , when requested, a statement under oath, of the
| 19 |
| condition of such corporate fiduciary as of the date requested.
| 20 |
| The statement of condition shall be in such form and contain | 21 |
| such
statements, returns and information, as to the affairs, | 22 |
| business
conditions, and resources of the corporate fiduciary | 23 |
| or of its
trust department, as the case may be, as the said | 24 |
| Secretary Commissioner
may, from time to time prescribe or |
|
|
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| require.
| 2 |
| (b) Such statement of condition shall be verified by the
| 3 |
| affidavit of the president, vice president or principal
| 4 |
| accounting officer of said corporate fiduciary, who shall also
| 5 |
| state in such affidavit that he has examined the books and
| 6 |
| accounts of said corporate fiduciary or of its trust | 7 |
| department,
as the case may be for the purpose of making said | 8 |
| report or
statement, and that the information contained in the | 9 |
| statement or
report is accurate to the best of his knowledge | 10 |
| and belief. If the statement
is submitted in electronic form, | 11 |
| the Secretary Commissioner may, in the call for the
report, | 12 |
| specify the manner in which the appropriate officer of the | 13 |
| corporate
fiduciary shall verify the statement of condition.
| 14 |
| (c) (Blank). The corporate fiduciary shall cause a proper | 15 |
| abstract
of the statements of assets and liabilities reported | 16 |
| under
sub-section (a) of this Section to be published once in a | 17 |
| newspaper
of general circulation, circulated in the city, town | 18 |
| or village
where the corporate fiduciary is located. Such | 19 |
| publication shall
be paid for by said corporate fiduciary which | 20 |
| shall cause to be
provided to the Commissioner a certificate of | 21 |
| publication from
the publishing newspaper in such form as the | 22 |
| Commissioner shall
require. When the corporate fiduciary is a | 23 |
| State bank, qualified
under this Act, the statements published | 24 |
| in compliance with the
Illinois Banking Act may be accepted by | 25 |
| the Commissioner in
compliance with the publication | 26 |
| requirements of this Section
although an annual statement of |
|
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| 1 |
| condition may still be required.
| 2 |
| (d) Any corporate fiduciary which fails to file an accurate
| 3 |
| statement of condition on or before the date it is due, to
| 4 |
| publish the report if required to be published, or which fails | 5 |
| to
provide evidence of such publication may be fined $100 for | 6 |
| each
day of noncompliance.
| 7 |
| (e) Any corporate fiduciary which is the victim of a | 8 |
| robbery
or experiences a
shortage of funds in excess of | 9 |
| $10,000, an apparent
misapplication of
the corporate | 10 |
| fiduciary's funds by an officer, employee, director,
or
agent, | 11 |
| a charge-off of assets of the corporate fiduciary, or any | 12 |
| adverse legal action in an amount
in excess of 10% of total | 13 |
| capital and surplus of the corporate fiduciary,
including but
| 14 |
| not limited to, the entry of an adverse money judgment against | 15 |
| the
corporate fiduciary shall report that information in | 16 |
| writing to the Secretary
Commissioner within 7 days. Compliance | 17 |
| with the time frames prescribed by the United States Department | 18 |
| of Treasury's Financial Crimes Enforcement Network shall be | 19 |
| deemed compliance with this Section. Neither the corporate | 20 |
| fiduciary,
its directors, officers, employees or agents, in the | 21 |
| preparation or
filing of the reports required by this | 22 |
| subsection, shall be
subject to any
liability for libel, | 23 |
| slander or other charges resulting from information
supplied in | 24 |
| such reports, except when the supplying of such information is
| 25 |
| done in a corrupt or malicious manner or otherwise not in good | 26 |
| faith.
|
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| 1 |
| (Source: P.A. 89-364, eff. 8-18-95.)
| 2 |
| Section 45. The Foreign Bank Representative Office Act is | 3 |
| amended by changing Section 2 as follows:
| 4 |
| (205 ILCS 650/2) (from Ch. 17, par. 2852)
| 5 |
| Sec. 2. Definitions. As used in this Act, unless the | 6 |
| context requires
otherwise:
| 7 |
| (a) "Commissioner" means the Commissioner of Banks and Real | 8 |
| Estate or a
person authorized by the Commissioner, the Office | 9 |
| of Banks and Real Estate Act,
or this Act to act in the | 10 |
| Commissioner's stead.
| 11 |
| (b) "Foreign bank" means (1) a bank or trust company which | 12 |
| is organized
under the laws of any state or territory of the | 13 |
| United States, including the
District of Columbia, other than | 14 |
| the State of Illinois; (2) a national bank
having its principal | 15 |
| place of business in any state or territory of the United
| 16 |
| States, including the District of Columbia, other than the | 17 |
| State of Illinois;
or (3) a bank or trust company organized and | 18 |
| operating under the laws of a
country other than the United | 19 |
| States of America.
| 20 |
| (c) "Representative office" means an office in the State of | 21 |
| Illinois at
which a foreign bank engages in representational | 22 |
| functions
but does not conduct a commercial banking business. | 23 |
| (d) "Secretary" means the Secretary of Financial and | 24 |
| Professional Regulation or a person authorized by the |
|
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LRB095 18640 MJR 44727 b |
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| Secretary, the Office of Banks and Real Estate
Act, or this Act | 2 |
| to act in the Secretary's stead.
| 3 |
| (Source: P.A. 89-364, eff. 8-18-95; 89-508, eff. 7-3-96.)
| 4 |
| (205 ILCS 680/Act rep.)
| 5 |
| Section 50. The Financial Institution Activity Reporting | 6 |
| Act is repealed.
| 7 |
| Section 99. Effective date. This Act takes effect January | 8 |
| 1, 2009.
|
|
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|
INDEX
| 2 |
|
Statutes amended in order of appearance
|
| 3 |
| 20 ILCS 3205/5 |
from Ch. 17, par. 455 |
| 4 |
| 20 ILCS 3205/6 |
from Ch. 17, par. 456 |
| 5 |
| 20 ILCS 3210/5 |
from Ch. 17, par. 405 |
| 6 |
| 205 ILCS 5/2 |
from Ch. 17, par. 302 |
| 7 |
| 205 ILCS 5/13 |
from Ch. 17, par. 320 |
| 8 |
| 205 ILCS 5/16 |
from Ch. 17, par. 323 |
| 9 |
| 205 ILCS 5/48 |
from Ch. 17, par. 359 |
| 10 |
| 205 ILCS 5/78.5 new |
|
| 11 |
| 205 ILCS 5/79.5 new |
|
| 12 |
| 205 ILCS 5/82 |
from Ch. 17, par. 394 |
| 13 |
| 205 ILCS 5/78 rep. |
|
| 14 |
| 205 ILCS 5/79 rep. |
|
| 15 |
| 205 ILCS 10/2 |
from Ch. 17, par. 2502 |
| 16 |
| 205 ILCS 10/3.074 |
from Ch. 17, par. 2510.04 |
| 17 |
| 205 ILCS 510/0.05 |
|
| 18 |
| 205 ILCS 620/1-5.15 new |
|
| 19 |
| 205 ILCS 620/2-7 |
from Ch. 17, par. 1552-7 |
| 20 |
| 205 ILCS 620/4-5 |
from Ch. 17, par. 1554-5 |
| 21 |
| 205 ILCS 620/5-1 |
from Ch. 17, par. 1555-1 |
| 22 |
| 205 ILCS 620/5-3 |
from Ch. 17, par. 1555-3 |
| 23 |
| 205 ILCS 620/5-5 |
from Ch. 17, par. 1555-5 |
| 24 |
| 205 ILCS 620/5-6 |
from Ch. 17, par. 1555-6 |
| 25 |
| 205 ILCS 620/5-8 |
from Ch. 17, par. 1555-8 |
|
|
|
|
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| 1 |
| 205 ILCS 620/5-9 |
from Ch. 17, par. 1555-9 |
| 2 |
| 205 ILCS 650/2 |
from Ch. 17, par. 2852 |
| 3 |
| 205 ILCS 680/Act rep. |
|
| |
|