HB3961 EngrossedLRB098 15520 ZMM 50550 b

1    AN ACT concerning regulation.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Illinois Banking Act is amended by changing
5Section 48 as follows:
6    (205 ILCS 5/48)
7    Sec. 48. Secretary's powers; duties. The Secretary shall
8have the powers and authority, and is charged with the duties
9and responsibilities designated in this Act, and a State bank
10shall not be subject to any other visitorial power other than
11as authorized by this Act, except those vested in the courts,
12or upon prior consultation with the Secretary, a foreign bank
13regulator with an appropriate supervisory interest in the
14parent or affiliate of a state bank. In the performance of the
15Secretary's duties:
16    (1) The Commissioner shall call for statements from all
17State banks as provided in Section 47 at least one time during
18each calendar quarter.
19    (2) (a) The Commissioner, as often as the Commissioner
20shall deem necessary or proper, and no less frequently than 18
21months following the preceding examination, shall appoint a
22suitable person or persons to make an examination of the
23affairs of every State bank, except that for every eligible



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1State bank, as defined by regulation, the Commissioner in lieu
2of the examination may accept on an alternating basis the
3examination made by the eligible State bank's appropriate
4federal banking agency pursuant to Section 111 of the Federal
5Deposit Insurance Corporation Improvement Act of 1991,
6provided the appropriate federal banking agency has made such
7an examination. A person so appointed shall not be a
8stockholder or officer or employee of any bank which that
9person may be directed to examine, and shall have powers to
10make a thorough examination into all the affairs of the bank
11and in so doing to examine any of the officers or agents or
12employees thereof on oath and shall make a full and detailed
13report of the condition of the bank to the Commissioner. In
14making the examination the examiners shall include an
15examination of the affairs of all the affiliates of the bank,
16as defined in subsection (b) of Section 35.2 of this Act, or
17subsidiaries of the bank as shall be necessary to disclose
18fully the conditions of the subsidiaries or affiliates, the
19relations between the bank and the subsidiaries or affiliates
20and the effect of those relations upon the affairs of the bank,
21and in connection therewith shall have power to examine any of
22the officers, directors, agents, or employees of the
23subsidiaries or affiliates on oath. After May 31, 1997, the
24Commissioner may enter into cooperative agreements with state
25regulatory authorities of other states to provide for
26examination of State bank branches in those states, and the



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1Commissioner may accept reports of examinations of State bank
2branches from those state regulatory authorities. These
3cooperative agreements may set forth the manner in which the
4other state regulatory authorities may be compensated for
5examinations prepared for and submitted to the Commissioner.
6    (b) After May 31, 1997, the Commissioner is authorized to
7examine, as often as the Commissioner shall deem necessary or
8proper, branches of out-of-state banks. The Commissioner may
9establish and may assess fees to be paid to the Commissioner
10for examinations under this subsection (b). The fees shall be
11borne by the out-of-state bank, unless the fees are borne by
12the state regulatory authority that chartered the out-of-state
13bank, as determined by a cooperative agreement between the
14Commissioner and the state regulatory authority that chartered
15the out-of-state bank.
16    (2.1) Pursuant to paragraph (a) of subsection (6) of this
17Section, the Secretary shall adopt rules that ensure
18consistency and due process in the examination process. The
19Secretary may also establish guidelines that (i) define the
20scope of the examination process and (ii) clarify examination
21items to be resolved. The rules, formal guidance, interpretive
22letters, or opinions furnished to State banks by the Secretary
23may be relied upon by the State banks.
24    (2.5) Whenever any State bank, any subsidiary or affiliate
25of a State bank, or after May 31, 1997, any branch of an
26out-of-state bank causes to be performed, by contract or



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1otherwise, any bank services for itself, whether on or off its
3        (a) that performance shall be subject to examination by
4    the Commissioner to the same extent as if services were
5    being performed by the bank or, after May 31, 1997, branch
6    of the out-of-state bank itself on its own premises; and
7        (b) the bank or, after May 31, 1997, branch of the
8    out-of-state bank shall notify the Commissioner of the
9    existence of a service relationship. The notification
10    shall be submitted with the first statement of condition
11    (as required by Section 47 of this Act) due after the
12    making of the service contract or the performance of the
13    service, whichever occurs first. The Commissioner shall be
14    notified of each subsequent contract in the same manner.
15    For purposes of this subsection (2.5), the term "bank
16services" means services such as sorting and posting of checks
17and deposits, computation and posting of interest and other
18credits and charges, preparation and mailing of checks,
19statements, notices, and similar items, or any other clerical,
20bookkeeping, accounting, statistical, or similar functions
21performed for a State bank, including but not limited to
22electronic data processing related to those bank services.
23    (3) The expense of administering this Act, including the
24expense of the examinations of State banks as provided in this
25Act, shall to the extent of the amounts resulting from the fees
26provided for in paragraphs (a), (a-2), and (b) of this



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1subsection (3) be assessed against and borne by the State
3        (a) Each bank shall pay to the Secretary a Call Report
4    Fee which shall be paid in quarterly installments equal to
5    one-fourth of the sum of the annual fixed fee of $800, plus
6    a variable fee based on the assets shown on the quarterly
7    statement of condition delivered to the Secretary in
8    accordance with Section 47 for the preceding quarter
9    according to the following schedule: 16 per $1,000 of the
10    first $5,000,000 of total assets, 15 per $1,000 of the
11    next $20,000,000 of total assets, 13 per $1,000 of the
12    next $75,000,000 of total assets, 9 per $1,000 of the next
13    $400,000,000 of total assets, 7 per $1,000 of the next
14    $500,000,000 of total assets, and 5 per $1,000 of all
15    assets in excess of $1,000,000,000, of the State bank. The
16    Call Report Fee shall be calculated by the Secretary and
17    billed to the banks for remittance at the time of the
18    quarterly statements of condition provided for in Section
19    47. The Secretary may require payment of the fees provided
20    in this Section by an electronic transfer of funds or an
21    automatic debit of an account of each of the State banks.
22    In case more than one examination of any bank is deemed by
23    the Secretary to be necessary in any examination frequency
24    cycle specified in subsection 2(a) of this Section, and is
25    performed at his direction, the Secretary may assess a
26    reasonable additional fee to recover the cost of the



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1    additional examination; provided, however, that an
2    examination conducted at the request of the State Treasurer
3    pursuant to the Uniform Disposition of Unclaimed Property
4    Act shall not be deemed to be an additional examination
5    under this Section. In lieu of the method and amounts set
6    forth in this paragraph (a) for the calculation of the Call
7    Report Fee, the Secretary may specify by rule that the Call
8    Report Fees provided by this Section may be assessed
9    semiannually or some other period and may provide in the
10    rule the formula to be used for calculating and assessing
11    the periodic Call Report Fees to be paid by State banks.
12        (a-1) If in the opinion of the Commissioner an
13    emergency exists or appears likely, the Commissioner may
14    assign an examiner or examiners to monitor the affairs of a
15    State bank with whatever frequency he deems appropriate,
16    including but not limited to a daily basis. The reasonable
17    and necessary expenses of the Commissioner during the
18    period of the monitoring shall be borne by the subject
19    bank. The Commissioner shall furnish the State bank a
20    statement of time and expenses if requested to do so within
21    30 days of the conclusion of the monitoring period.
22        (a-2) On and after January 1, 1990, the reasonable and
23    necessary expenses of the Commissioner during examination
24    of the performance of electronic data processing services
25    under subsection (2.5) shall be borne by the banks for
26    which the services are provided. An amount, based upon a



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1    fee structure prescribed by the Commissioner, shall be paid
2    by the banks or, after May 31, 1997, branches of
3    out-of-state banks receiving the electronic data
4    processing services along with the Call Report Fee assessed
5    under paragraph (a) of this subsection (3).
6        (a-3) After May 31, 1997, the reasonable and necessary
7    expenses of the Commissioner during examination of the
8    performance of electronic data processing services under
9    subsection (2.5) at or on behalf of branches of
10    out-of-state banks shall be borne by the out-of-state
11    banks, unless those expenses are borne by the state
12    regulatory authorities that chartered the out-of-state
13    banks, as determined by cooperative agreements between the
14    Commissioner and the state regulatory authorities that
15    chartered the out-of-state banks.
16        (b) "Fiscal year" for purposes of this Section 48 is
17    defined as a period beginning July 1 of any year and ending
18    June 30 of the next year. The Commissioner shall receive
19    for each fiscal year, commencing with the fiscal year
20    ending June 30, 1987, a contingent fee equal to the lesser
21    of the aggregate of the fees paid by all State banks under
22    paragraph (a) of subsection (3) for that year, or the
23    amount, if any, whereby the aggregate of the administration
24    expenses, as defined in paragraph (c), for that fiscal year
25    exceeds the sum of the aggregate of the fees payable by all
26    State banks for that year under paragraph (a) of subsection



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1    (3), plus any amounts transferred into the Bank and Trust
2    Company Fund from the State Pensions Fund for that year,
3    plus all other amounts collected by the Commissioner for
4    that year under any other provision of this Act, plus the
5    aggregate of all fees collected for that year by the
6    Commissioner under the Corporate Fiduciary Act, excluding
7    the receivership fees provided for in Section 5-10 of the
8    Corporate Fiduciary Act, and the Foreign Banking Office
9    Act. The aggregate amount of the contingent fee thus
10    arrived at for any fiscal year shall be apportioned
11    amongst, assessed upon, and paid by the State banks and
12    foreign banking corporations, respectively, in the same
13    proportion that the fee of each under paragraph (a) of
14    subsection (3), respectively, for that year bears to the
15    aggregate for that year of the fees collected under
16    paragraph (a) of subsection (3). The aggregate amount of
17    the contingent fee, and the portion thereof to be assessed
18    upon each State bank and foreign banking corporation,
19    respectively, shall be determined by the Commissioner and
20    shall be paid by each, respectively, within 120 days of the
21    close of the period for which the contingent fee is
22    computed and is payable, and the Commissioner shall give 20
23    days advance notice of the amount of the contingent fee
24    payable by the State bank and of the date fixed by the
25    Commissioner for payment of the fee.
26        (c) The "administration expenses" for any fiscal year



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1    shall mean the ordinary and contingent expenses for that
2    year incident to making the examinations provided for by,
3    and for otherwise administering, this Act, the Corporate
4    Fiduciary Act, excluding the expenses paid from the
5    Corporate Fiduciary Receivership account in the Bank and
6    Trust Company Fund, the Foreign Banking Office Act, the
7    Electronic Fund Transfer Act, and the Illinois Bank
8    Examiners' Education Foundation Act, including all
9    salaries and other compensation paid for personal services
10    rendered for the State by officers or employees of the
11    State, including the Commissioner and the Deputy
12    Commissioners, communication equipment and services,
13    office furnishings, surety bond premiums, and travel
14    expenses of those officers and employees, employees,
15    expenditures or charges for the acquisition, enlargement
16    or improvement of, or for the use of, any office space,
17    building, or structure, or expenditures for the
18    maintenance thereof or for furnishing heat, light, or power
19    with respect thereto, all to the extent that those
20    expenditures are directly incidental to such examinations
21    or administration. The Commissioner shall not be required
22    by paragraphs (c) or (d-1) of this subsection (3) to
23    maintain in any fiscal year's budget appropriated reserves
24    for accrued vacation and accrued sick leave that is
25    required to be paid to employees of the Commissioner upon
26    termination of their service with the Commissioner in an



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1    amount that is more than is reasonably anticipated to be
2    necessary for any anticipated turnover in employees,
3    whether due to normal attrition or due to layoffs,
4    terminations, or resignations.
5        (d) The aggregate of all fees collected by the
6    Secretary under this Act, the Corporate Fiduciary Act, or
7    the Foreign Banking Office Act on and after July 1, 1979,
8    shall be paid promptly after receipt of the same,
9    accompanied by a detailed statement thereof, into the State
10    treasury and shall be set apart in a special fund to be
11    known as the "Bank and Trust Company Fund", except as
12    provided in paragraph (c) of subsection (11) of this
13    Section. All earnings received from investments of funds in
14    the Bank and Trust Company Fund shall be deposited in the
15    Bank and Trust Company Fund and may be used for the same
16    purposes as fees deposited in that Fund. The amount from
17    time to time deposited into the Bank and Trust Company Fund
18    shall be used: (i) to offset the ordinary administrative
19    expenses of the Secretary as defined in this Section or
20    (ii) as a credit against fees under paragraph (d-1) of this
21    subsection (3). Nothing in this amendatory Act of 1979
22    shall prevent continuing the practice of paying expenses
23    involving salaries, retirement, social security, and
24    State-paid insurance premiums of State officers by
25    appropriations from the General Revenue Fund. However, the
26    General Revenue Fund shall be reimbursed for those payments



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1    made on and after July 1, 1979, by an annual transfer of
2    funds from the Bank and Trust Company Fund. Moneys in the
3    Bank and Trust Company Fund may be transferred to the
4    Professions Indirect Cost Fund, as authorized under
5    Section 2105-300 of the Department of Professional
6    Regulation Law of the Civil Administrative Code of
7    Illinois.
8        Notwithstanding provisions in the State Finance Act,
9    as now or hereafter amended, or any other law to the
10    contrary, the sum of $18,788,847 shall be transferred from
11    the Bank and Trust Company Fund to the Financial
12    Institutions Settlement of 2008 Fund on the effective date
13    of this amendatory Act of the 95th General Assembly, or as
14    soon thereafter as practical.
15        Notwithstanding provisions in the State Finance Act,
16    as now or hereafter amended, or any other law to the
17    contrary, the Governor may, during any fiscal year through
18    January 10, 2011, from time to time direct the State
19    Treasurer and Comptroller to transfer a specified sum not
20    exceeding 10% of the revenues to be deposited into the Bank
21    and Trust Company Fund during that fiscal year from that
22    Fund to the General Revenue Fund in order to help defray
23    the State's operating costs for the fiscal year.
24    Notwithstanding provisions in the State Finance Act, as now
25    or hereafter amended, or any other law to the contrary, the
26    total sum transferred during any fiscal year through



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1    January 10, 2011, from the Bank and Trust Company Fund to
2    the General Revenue Fund pursuant to this provision shall
3    not exceed during any fiscal year 10% of the revenues to be
4    deposited into the Bank and Trust Company Fund during that
5    fiscal year. The State Treasurer and Comptroller shall
6    transfer the amounts designated under this Section as soon
7    as may be practicable after receiving the direction to
8    transfer from the Governor.
9        (d-1) Adequate funds shall be available in the Bank and
10    Trust Company Fund to permit the timely payment of
11    administration expenses. In each fiscal year the total
12    administration expenses shall be deducted from the total
13    fees collected by the Commissioner and the remainder
14    transferred into the Cash Flow Reserve Account, unless the
15    balance of the Cash Flow Reserve Account prior to the
16    transfer equals or exceeds one-fourth of the total initial
17    appropriations from the Bank and Trust Company Fund for the
18    subsequent year, in which case the remainder shall be
19    credited to State banks and foreign banking corporations
20    and applied against their fees for the subsequent year. The
21    amount credited to each State bank and foreign banking
22    corporation shall be in the same proportion as the Call
23    Report Fees paid by each for the year bear to the total
24    Call Report Fees collected for the year. If, after a
25    transfer to the Cash Flow Reserve Account is made or if no
26    remainder is available for transfer, the balance of the



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1    Cash Flow Reserve Account is less than one-fourth of the
2    total initial appropriations for the subsequent year and
3    the amount transferred is less than 5% of the total Call
4    Report Fees for the year, additional amounts needed to make
5    the transfer equal to 5% of the total Call Report Fees for
6    the year shall be apportioned amongst, assessed upon, and
7    paid by the State banks and foreign banking corporations in
8    the same proportion that the Call Report Fees of each,
9    respectively, for the year bear to the total Call Report
10    Fees collected for the year. The additional amounts
11    assessed shall be transferred into the Cash Flow Reserve
12    Account. For purposes of this paragraph (d-1), the
13    calculation of the fees collected by the Commissioner shall
14    exclude the receivership fees provided for in Section 5-10
15    of the Corporate Fiduciary Act.
16        (e) The Commissioner may upon request certify to any
17    public record in his keeping and shall have authority to
18    levy a reasonable charge for issuing certifications of any
19    public record in his keeping.
20        (f) In addition to fees authorized elsewhere in this
21    Act, the Commissioner may, in connection with a review,
22    approval, or provision of a service, levy a reasonable
23    charge to recover the cost of the review, approval, or
24    service.
25    (4) Nothing contained in this Act shall be construed to
26limit the obligation relative to examinations and reports of



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1any State bank, deposits in which are to any extent insured by
2the United States or any agency thereof, nor to limit in any
3way the powers of the Commissioner with reference to
4examinations and reports of that bank.
5    (5) The nature and condition of the assets in or investment
6of any bonus, pension, or profit sharing plan for officers or
7employees of every State bank or, after May 31, 1997, branch of
8an out-of-state bank shall be deemed to be included in the
9affairs of that State bank or branch of an out-of-state bank
10subject to examination by the Commissioner under the provisions
11of subsection (2) of this Section, and if the Commissioner
12shall find from an examination that the condition of or
13operation of the investments or assets of the plan is unlawful,
14fraudulent, or unsafe, or that any trustee has abused his
15trust, the Commissioner shall, if the situation so found by the
16Commissioner shall not be corrected to his satisfaction within
1760 days after the Commissioner has given notice to the board of
18directors of the State bank or out-of-state bank of his
19findings, report the facts to the Attorney General who shall
20thereupon institute proceedings against the State bank or
21out-of-state bank, the board of directors thereof, or the
22trustees under such plan as the nature of the case may require.
23    (6) The Commissioner shall have the power:
24        (a) To promulgate reasonable rules for the purpose of
25    administering the provisions of this Act.
26        (a-5) To impose conditions on any approval issued by



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1    the Commissioner if he determines that the conditions are
2    necessary or appropriate. These conditions shall be
3    imposed in writing and shall continue in effect for the
4    period prescribed by the Commissioner.
5        (b) To issue orders against any person, if the
6    Commissioner has reasonable cause to believe that an unsafe
7    or unsound banking practice has occurred, is occurring, or
8    is about to occur, if any person has violated, is
9    violating, or is about to violate any law, rule, or written
10    agreement with the Commissioner, or for the purpose of
11    administering the provisions of this Act and any rule
12    promulgated in accordance with this Act.
13        (b-1) To enter into agreements with a bank establishing
14    a program to correct the condition of the bank or its
15    practices.
16        (c) To appoint hearing officers to execute any of the
17    powers granted to the Commissioner under this Section for
18    the purpose of administering this Act and any rule
19    promulgated in accordance with this Act and otherwise to
20    authorize, in writing, an officer or employee of the Office
21    of Banks and Real Estate to exercise his powers under this
22    Act.
23        (d) To subpoena witnesses, to compel their attendance,
24    to administer an oath, to examine any person under oath,
25    and to require the production of any relevant books,
26    papers, accounts, and documents in the course of and



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1    pursuant to any investigation being conducted, or any
2    action being taken, by the Commissioner in respect of any
3    matter relating to the duties imposed upon, or the powers
4    vested in, the Commissioner under the provisions of this
5    Act or any rule promulgated in accordance with this Act.
6        (e) To conduct hearings.
7    (7) Whenever, in the opinion of the Secretary, any
8director, officer, employee, or agent of a State bank or any
9subsidiary or bank holding company of the bank or, after May
1031, 1997, of any branch of an out-of-state bank or any
11subsidiary or bank holding company of the bank shall have
12violated any law, rule, or order relating to that bank or any
13subsidiary or bank holding company of the bank, shall have
14obstructed or impeded any examination or investigation by the
15Secretary, shall have engaged in an unsafe or unsound practice
16in conducting the business of that bank or any subsidiary or
17bank holding company of the bank, or shall have violated any
18law or engaged or participated in any unsafe or unsound
19practice in connection with any financial institution or other
20business entity such that the character and fitness of the
21director, officer, employee, or agent does not assure
22reasonable promise of safe and sound operation of the State
23bank, the Secretary may issue an order of removal. If, in the
24opinion of the Secretary, any former director, officer,
25employee, or agent of a State bank or any subsidiary or bank
26holding company of the bank, prior to the termination of his or



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1her service with that bank or any subsidiary or bank holding
2company of the bank, violated any law, rule, or order relating
3to that State bank or any subsidiary or bank holding company of
4the bank, obstructed or impeded any examination or
5investigation by the Secretary, engaged in an unsafe or unsound
6practice in conducting the business of that bank or any
7subsidiary or bank holding company of the bank, or violated any
8law or engaged or participated in any unsafe or unsound
9practice in connection with any financial institution or other
10business entity such that the character and fitness of the
11director, officer, employee, or agent would not have assured
12reasonable promise of safe and sound operation of the State
13bank, the Secretary may issue an order prohibiting that person
14from further service with a bank or any subsidiary or bank
15holding company of the bank as a director, officer, employee,
16or agent. An order issued pursuant to this subsection shall be
17served upon the director, officer, employee, or agent. A copy
18of the order shall be sent to each director of the bank
19affected by registered mail. A copy of the order shall also be
20served upon the bank of which he is a director, officer,
21employee, or agent, whereupon he shall cease to be a director,
22officer, employee, or agent of that bank. The Secretary may
23institute a civil action against the director, officer, or
24agent of the State bank or, after May 31, 1997, of the branch
25of the out-of-state bank against whom any order provided for by
26this subsection (7) of this Section 48 has been issued, and



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1against the State bank or, after May 31, 1997, out-of-state
2bank, to enforce compliance with or to enjoin any violation of
3the terms of the order. Any person who has been the subject of
4an order of removal or an order of prohibition issued by the
5Secretary under this subsection or Section 5-6 of the Corporate
6Fiduciary Act may not thereafter serve as director, officer,
7employee, or agent of any State bank or of any branch of any
8out-of-state bank, or of any corporate fiduciary, as defined in
9Section 1-5.05 of the Corporate Fiduciary Act, or of any other
10entity that is subject to licensure or regulation by the
11Division of Banking unless the Secretary has granted prior
12approval in writing.
13    For purposes of this paragraph (7), "bank holding company"
14has the meaning prescribed in Section 2 of the Illinois Bank
15Holding Company Act of 1957.
16    (8) The Commissioner may impose civil penalties of up to
17$100,000 against any person for each violation of any provision
18of this Act, any rule promulgated in accordance with this Act,
19any order of the Commissioner, or any other action which in the
20Commissioner's discretion is an unsafe or unsound banking
22    (9) The Commissioner may impose civil penalties of up to
23$100 against any person for the first failure to comply with
24reporting requirements set forth in the report of examination
25of the bank and up to $200 for the second and subsequent
26failures to comply with those reporting requirements.



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1    (10) All final administrative decisions of the
2Commissioner hereunder shall be subject to judicial review
3pursuant to the provisions of the Administrative Review Law.
4For matters involving administrative review, venue shall be in
5either Sangamon County or Cook County.
6    (11) The endowment fund for the Illinois Bank Examiners'
7Education Foundation shall be administered as follows:
8        (a) (Blank).
9        (b) The Foundation is empowered to receive voluntary
10    contributions, gifts, grants, bequests, and donations on
11    behalf of the Illinois Bank Examiners' Education
12    Foundation from national banks and other persons for the
13    purpose of funding the endowment of the Illinois Bank
14    Examiners' Education Foundation.
15        (c) The aggregate of all special educational fees
16    collected by the Secretary and property received by the
17    Secretary on behalf of the Illinois Bank Examiners'
18    Education Foundation under this subsection (11) on or after
19    June 30, 1986, shall be either (i) promptly paid after
20    receipt of the same, accompanied by a detailed statement
21    thereof, into the State Treasury and shall be set apart in
22    a special fund to be known as "The Illinois Bank Examiners'
23    Education Fund" to be invested by either the Treasurer of
24    the State of Illinois in the Public Treasurers' Investment
25    Pool or in any other investment he is authorized to make or
26    by the Illinois State Board of Investment as the State



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1    Banking Board of Illinois may direct or (ii) deposited into
2    an account maintained in a commercial bank or corporate
3    fiduciary in the name of the Illinois Bank Examiners'
4    Education Foundation pursuant to the order and direction of
5    the Board of Trustees of the Illinois Bank Examiners'
6    Education Foundation.
7    (12) (Blank).
8    (13) The Secretary may borrow funds from the General
9Revenue Fund on behalf of the Bank and Trust Company Fund if
10the Director of Banking certifies to the Governor that there is
11an economic emergency affecting banking that requires a
12borrowing to provide additional funds to the Bank and Trust
13Company Fund. The borrowed funds shall be paid back within 3
14years and shall not exceed the total funding appropriated to
15the Agency in the previous year.
16(Source: P.A. 96-1163, eff. 1-1-11; 96-1365, eff. 7-28-10;
1797-333, eff. 8-12-11.)
18    Section 10. The Savings Bank Act is amended by changing
19Section 9004 as follows:
20    (205 ILCS 205/9004)  (from Ch. 17, par. 7309-4)
21    Sec. 9004. Examination.
22    (a) At least once every 18 months or more often if it is
23deemed necessary or expedient, the Secretary shall examine the
24books, records, operations, and affairs of each savings bank



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1operating under this Act. In the course of the examination, the
2Secretary may also examine in the same manner all entities,
3companies, and individuals which or whom the Secretary
4determines may have a relationship with the savings bank or any
5subsidiary or entity affiliated with it, if the relationship
6may adversely affect the affairs, activities, and safety and
7soundness of the savings bank, including: (i) companies
8controlled by the savings bank; (ii) entities, including
9companies controlled by the company, individual, or
10individuals that control the savings bank; and (iii) the
11company or other entity which controls or owns the savings
12bank. Notwithstanding any other provision of this Act, every
13savings bank, as defined by rule, or, if not defined, to the
14same extent as would be permitted in the case of a State bank,
15the Secretary, in lieu of the examination, may accept on an
16alternating basis the examination made by the eligible savings
17bank's appropriate federal banking agency pursuant to Section
18111 of the Federal Deposit Insurance Corporation Improvement
19Act of 1991, provided the appropriate federal banking agency
20has made an examination.
21    (b) The Secretary shall examine to determine:
22        (1) Quality of financial condition, including safety
23    and soundness and investment and loan quality.
24        (2) Compliance with this Act and other applicable
25    statutes and regulations.
26        (3) Quality of management policies.



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1        (4) Overall safety and soundness of the savings bank,
2    its parent, subsidiaries, and affiliates.
3        (5) Remedial actions required to correct and to restore
4    compliance with applicable statutes, regulations, and
5    proper business policies.
6    (c) The Secretary may promulgate regulations to implement
7and administer this Section.
8    (d) If a savings bank, its holding company, or any of its
9corporate subsidiaries has not been audited at least once in
10the 12 months prior to the Secretary's examination, the
11Secretary may cause an audit of the savings bank's books and
12records to be made by an independent licensed public
13accountant. The cost of the audit shall be paid for by the
14entity being audited.
15    (e) The Secretary or his or her examiners or other formally
16designated agents are authorized to administer oaths and to
17examine and to take and preserve testimony under oath as to
18anything in the affairs or ownership of any savings bank or
19institution or affiliate thereof.
20    (f) Pursuant to subsection (c) of this Section, the
21Secretary shall adopt rules that ensure consistency and due
22process in the examination process. The Secretary may also
23establish guidelines that (i) define the scope of the
24examination process and (ii) clarify examination items to be
25resolved. The rules, formal guidance, interpretive letters, or
26opinions furnished to savings banks by the Secretary may be



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1relied upon by the savings banks.
2(Source: P.A. 96-1365, eff. 7-28-10; 97-492, eff. 1-1-12.)