Sen. Linda Holmes

Filed: 5/26/2014





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2    AMENDMENT NO. ______. Amend House Bill 5342 by inserting
3the following immediately above Section 5:
4    "Section 3. 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



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1State banks as provided in Section 47 at least one time during
2each calendar quarter.
3    (2) (a) The Commissioner, as often as the Commissioner
4shall deem necessary or proper, and no less frequently than 18
5months following the preceding examination, shall appoint a
6suitable person or persons to make an examination of the
7affairs of every State bank, except that for every eligible
8State bank, as defined by regulation, the Commissioner in lieu
9of the examination may accept on an alternating basis the
10examination made by the eligible State bank's appropriate
11federal banking agency pursuant to Section 111 of the Federal
12Deposit Insurance Corporation Improvement Act of 1991,
13provided the appropriate federal banking agency has made such
14an examination. A person so appointed shall not be a
15stockholder or officer or employee of any bank which that
16person may be directed to examine, and shall have powers to
17make a thorough examination into all the affairs of the bank
18and in so doing to examine any of the officers or agents or
19employees thereof on oath and shall make a full and detailed
20report of the condition of the bank to the Commissioner. In
21making the examination the examiners shall include an
22examination of the affairs of all the affiliates of the bank,
23as defined in subsection (b) of Section 35.2 of this Act, or
24subsidiaries of the bank as shall be necessary to disclose
25fully the conditions of the subsidiaries or affiliates, the
26relations between the bank and the subsidiaries or affiliates



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1and the effect of those relations upon the affairs of the bank,
2and in connection therewith shall have power to examine any of
3the officers, directors, agents, or employees of the
4subsidiaries or affiliates on oath. After May 31, 1997, the
5Commissioner may enter into cooperative agreements with state
6regulatory authorities of other states to provide for
7examination of State bank branches in those states, and the
8Commissioner may accept reports of examinations of State bank
9branches from those state regulatory authorities. These
10cooperative agreements may set forth the manner in which the
11other state regulatory authorities may be compensated for
12examinations prepared for and submitted to the Commissioner.
13    (b) After May 31, 1997, the Commissioner is authorized to
14examine, as often as the Commissioner shall deem necessary or
15proper, branches of out-of-state banks. The Commissioner may
16establish and may assess fees to be paid to the Commissioner
17for examinations under this subsection (b). The fees shall be
18borne by the out-of-state bank, unless the fees are borne by
19the state regulatory authority that chartered the out-of-state
20bank, as determined by a cooperative agreement between the
21Commissioner and the state regulatory authority that chartered
22the out-of-state bank.
23    (2.1) Pursuant to paragraph (a) of subsection (6) of this
24Section, the Secretary shall adopt rules that ensure
25consistency and due process in the examination process. The
26Secretary may also establish guidelines that (i) define the



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1scope of the examination process and (ii) clarify examination
2items to be resolved. The rules, formal guidance, interpretive
3letters, or opinions furnished to State banks by the Secretary
4may be relied upon by the State banks.
5    (2.5) Whenever any State bank, any subsidiary or affiliate
6of a State bank, or after May 31, 1997, any branch of an
7out-of-state bank causes to be performed, by contract or
8otherwise, any bank services for itself, whether on or off its
10        (a) that performance shall be subject to examination by
11    the Commissioner to the same extent as if services were
12    being performed by the bank or, after May 31, 1997, branch
13    of the out-of-state bank itself on its own premises; and
14        (b) the bank or, after May 31, 1997, branch of the
15    out-of-state bank shall notify the Commissioner of the
16    existence of a service relationship. The notification
17    shall be submitted with the first statement of condition
18    (as required by Section 47 of this Act) due after the
19    making of the service contract or the performance of the
20    service, whichever occurs first. The Commissioner shall be
21    notified of each subsequent contract in the same manner.
22    For purposes of this subsection (2.5), the term "bank
23services" means services such as sorting and posting of checks
24and deposits, computation and posting of interest and other
25credits and charges, preparation and mailing of checks,
26statements, notices, and similar items, or any other clerical,



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1bookkeeping, accounting, statistical, or similar functions
2performed for a State bank, including but not limited to
3electronic data processing related to those bank services.
4    (3) The expense of administering this Act, including the
5expense of the examinations of State banks as provided in this
6Act, shall to the extent of the amounts resulting from the fees
7provided for in paragraphs (a), (a-2), and (b) of this
8subsection (3) be assessed against and borne by the State
10        (a) Each bank shall pay to the Secretary a Call Report
11    Fee which shall be paid in quarterly installments equal to
12    one-fourth of the sum of the annual fixed fee of $800, plus
13    a variable fee based on the assets shown on the quarterly
14    statement of condition delivered to the Secretary in
15    accordance with Section 47 for the preceding quarter
16    according to the following schedule: 16 per $1,000 of the
17    first $5,000,000 of total assets, 15 per $1,000 of the
18    next $20,000,000 of total assets, 13 per $1,000 of the
19    next $75,000,000 of total assets, 9 per $1,000 of the next
20    $400,000,000 of total assets, 7 per $1,000 of the next
21    $500,000,000 of total assets, and 5 per $1,000 of all
22    assets in excess of $1,000,000,000, of the State bank. The
23    Call Report Fee shall be calculated by the Secretary and
24    billed to the banks for remittance at the time of the
25    quarterly statements of condition provided for in Section
26    47. The Secretary may require payment of the fees provided



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1    in this Section by an electronic transfer of funds or an
2    automatic debit of an account of each of the State banks.
3    In case more than one examination of any bank is deemed by
4    the Secretary to be necessary in any examination frequency
5    cycle specified in subsection 2(a) of this Section, and is
6    performed at his direction, the Secretary may assess a
7    reasonable additional fee to recover the cost of the
8    additional examination; provided, however, that an
9    examination conducted at the request of the State Treasurer
10    pursuant to the Uniform Disposition of Unclaimed Property
11    Act shall not be deemed to be an additional examination
12    under this Section. In lieu of the method and amounts set
13    forth in this paragraph (a) for the calculation of the Call
14    Report Fee, the Secretary may specify by rule that the Call
15    Report Fees provided by this Section may be assessed
16    semiannually or some other period and may provide in the
17    rule the formula to be used for calculating and assessing
18    the periodic Call Report Fees to be paid by State banks.
19        (a-1) If in the opinion of the Commissioner an
20    emergency exists or appears likely, the Commissioner may
21    assign an examiner or examiners to monitor the affairs of a
22    State bank with whatever frequency he deems appropriate,
23    including but not limited to a daily basis. The reasonable
24    and necessary expenses of the Commissioner during the
25    period of the monitoring shall be borne by the subject
26    bank. The Commissioner shall furnish the State bank a



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1    statement of time and expenses if requested to do so within
2    30 days of the conclusion of the monitoring period.
3        (a-2) On and after January 1, 1990, the reasonable and
4    necessary expenses of the Commissioner during examination
5    of the performance of electronic data processing services
6    under subsection (2.5) shall be borne by the banks for
7    which the services are provided. An amount, based upon a
8    fee structure prescribed by the Commissioner, shall be paid
9    by the banks or, after May 31, 1997, branches of
10    out-of-state banks receiving the electronic data
11    processing services along with the Call Report Fee assessed
12    under paragraph (a) of this subsection (3).
13        (a-3) After May 31, 1997, the reasonable and necessary
14    expenses of the Commissioner during examination of the
15    performance of electronic data processing services under
16    subsection (2.5) at or on behalf of branches of
17    out-of-state banks shall be borne by the out-of-state
18    banks, unless those expenses are borne by the state
19    regulatory authorities that chartered the out-of-state
20    banks, as determined by cooperative agreements between the
21    Commissioner and the state regulatory authorities that
22    chartered the out-of-state banks.
23        (b) "Fiscal year" for purposes of this Section 48 is
24    defined as a period beginning July 1 of any year and ending
25    June 30 of the next year. The Commissioner shall receive
26    for each fiscal year, commencing with the fiscal year



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1    ending June 30, 1987, a contingent fee equal to the lesser
2    of the aggregate of the fees paid by all State banks under
3    paragraph (a) of subsection (3) for that year, or the
4    amount, if any, whereby the aggregate of the administration
5    expenses, as defined in paragraph (c), for that fiscal year
6    exceeds the sum of the aggregate of the fees payable by all
7    State banks for that year under paragraph (a) of subsection
8    (3), plus any amounts transferred into the Bank and Trust
9    Company Fund from the State Pensions Fund for that year,
10    plus all other amounts collected by the Commissioner for
11    that year under any other provision of this Act, plus the
12    aggregate of all fees collected for that year by the
13    Commissioner under the Corporate Fiduciary Act, excluding
14    the receivership fees provided for in Section 5-10 of the
15    Corporate Fiduciary Act, and the Foreign Banking Office
16    Act. The aggregate amount of the contingent fee thus
17    arrived at for any fiscal year shall be apportioned
18    amongst, assessed upon, and paid by the State banks and
19    foreign banking corporations, respectively, in the same
20    proportion that the fee of each under paragraph (a) of
21    subsection (3), respectively, for that year bears to the
22    aggregate for that year of the fees collected under
23    paragraph (a) of subsection (3). The aggregate amount of
24    the contingent fee, and the portion thereof to be assessed
25    upon each State bank and foreign banking corporation,
26    respectively, shall be determined by the Commissioner and



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1    shall be paid by each, respectively, within 120 days of the
2    close of the period for which the contingent fee is
3    computed and is payable, and the Commissioner shall give 20
4    days advance notice of the amount of the contingent fee
5    payable by the State bank and of the date fixed by the
6    Commissioner for payment of the fee.
7        (c) The "administration expenses" for any fiscal year
8    shall mean the ordinary and contingent expenses for that
9    year incident to making the examinations provided for by,
10    and for otherwise administering, this Act, the Corporate
11    Fiduciary Act, excluding the expenses paid from the
12    Corporate Fiduciary Receivership account in the Bank and
13    Trust Company Fund, the Foreign Banking Office Act, the
14    Electronic Fund Transfer Act, and the Illinois Bank
15    Examiners' Education Foundation Act, including all
16    salaries and other compensation paid for personal services
17    rendered for the State by officers or employees of the
18    State, including the Commissioner and the Deputy
19    Commissioners, communication equipment and services,
20    office furnishings, surety bond premiums, and travel
21    expenses of those officers and employees, employees,
22    expenditures or charges for the acquisition, enlargement
23    or improvement of, or for the use of, any office space,
24    building, or structure, or expenditures for the
25    maintenance thereof or for furnishing heat, light, or power
26    with respect thereto, all to the extent that those



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1    expenditures are directly incidental to such examinations
2    or administration. The Commissioner shall not be required
3    by paragraphs (c) or (d-1) of this subsection (3) to
4    maintain in any fiscal year's budget appropriated reserves
5    for accrued vacation and accrued sick leave that is
6    required to be paid to employees of the Commissioner upon
7    termination of their service with the Commissioner in an
8    amount that is more than is reasonably anticipated to be
9    necessary for any anticipated turnover in employees,
10    whether due to normal attrition or due to layoffs,
11    terminations, or resignations.
12        (d) The aggregate of all fees collected by the
13    Secretary under this Act, the Corporate Fiduciary Act, or
14    the Foreign Banking Office Act on and after July 1, 1979,
15    shall be paid promptly after receipt of the same,
16    accompanied by a detailed statement thereof, into the State
17    treasury and shall be set apart in a special fund to be
18    known as the "Bank and Trust Company Fund", except as
19    provided in paragraph (c) of subsection (11) of this
20    Section. All earnings received from investments of funds in
21    the Bank and Trust Company Fund shall be deposited in the
22    Bank and Trust Company Fund and may be used for the same
23    purposes as fees deposited in that Fund. The amount from
24    time to time deposited into the Bank and Trust Company Fund
25    shall be used: (i) to offset the ordinary administrative
26    expenses of the Secretary as defined in this Section or



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1    (ii) as a credit against fees under paragraph (d-1) of this
2    subsection (3). Nothing in this amendatory Act of 1979
3    shall prevent continuing the practice of paying expenses
4    involving salaries, retirement, social security, and
5    State-paid insurance premiums of State officers by
6    appropriations from the General Revenue Fund. However, the
7    General Revenue Fund shall be reimbursed for those payments
8    made on and after July 1, 1979, by an annual transfer of
9    funds from the Bank and Trust Company Fund. Moneys in the
10    Bank and Trust Company Fund may be transferred to the
11    Professions Indirect Cost Fund, as authorized under
12    Section 2105-300 of the Department of Professional
13    Regulation Law of the Civil Administrative Code of
14    Illinois.
15        Notwithstanding provisions in the State Finance Act,
16    as now or hereafter amended, or any other law to the
17    contrary, the sum of $18,788,847 shall be transferred from
18    the Bank and Trust Company Fund to the Financial
19    Institutions Settlement of 2008 Fund on the effective date
20    of this amendatory Act of the 95th General Assembly, or as
21    soon thereafter as practical.
22        Notwithstanding provisions in the State Finance Act,
23    as now or hereafter amended, or any other law to the
24    contrary, the Governor may, during any fiscal year through
25    January 10, 2011, from time to time direct the State
26    Treasurer and Comptroller to transfer a specified sum not



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1    exceeding 10% of the revenues to be deposited into the Bank
2    and Trust Company Fund during that fiscal year from that
3    Fund to the General Revenue Fund in order to help defray
4    the State's operating costs for the fiscal year.
5    Notwithstanding provisions in the State Finance Act, as now
6    or hereafter amended, or any other law to the contrary, the
7    total sum transferred during any fiscal year through
8    January 10, 2011, from the Bank and Trust Company Fund to
9    the General Revenue Fund pursuant to this provision shall
10    not exceed during any fiscal year 10% of the revenues to be
11    deposited into the Bank and Trust Company Fund during that
12    fiscal year. The State Treasurer and Comptroller shall
13    transfer the amounts designated under this Section as soon
14    as may be practicable after receiving the direction to
15    transfer from the Governor.
16        (d-1) Adequate funds shall be available in the Bank and
17    Trust Company Fund to permit the timely payment of
18    administration expenses. In each fiscal year the total
19    administration expenses shall be deducted from the total
20    fees collected by the Commissioner and the remainder
21    transferred into the Cash Flow Reserve Account, unless the
22    balance of the Cash Flow Reserve Account prior to the
23    transfer equals or exceeds one-fourth of the total initial
24    appropriations from the Bank and Trust Company Fund for the
25    subsequent year, in which case the remainder shall be
26    credited to State banks and foreign banking corporations



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1    and applied against their fees for the subsequent year. The
2    amount credited to each State bank and foreign banking
3    corporation shall be in the same proportion as the Call
4    Report Fees paid by each for the year bear to the total
5    Call Report Fees collected for the year. If, after a
6    transfer to the Cash Flow Reserve Account is made or if no
7    remainder is available for transfer, the balance of the
8    Cash Flow Reserve Account is less than one-fourth of the
9    total initial appropriations for the subsequent year and
10    the amount transferred is less than 5% of the total Call
11    Report Fees for the year, additional amounts needed to make
12    the transfer equal to 5% of the total Call Report Fees for
13    the year shall be apportioned amongst, assessed upon, and
14    paid by the State banks and foreign banking corporations in
15    the same proportion that the Call Report Fees of each,
16    respectively, for the year bear to the total Call Report
17    Fees collected for the year. The additional amounts
18    assessed shall be transferred into the Cash Flow Reserve
19    Account. For purposes of this paragraph (d-1), the
20    calculation of the fees collected by the Commissioner shall
21    exclude the receivership fees provided for in Section 5-10
22    of the Corporate Fiduciary Act.
23        (e) The Commissioner may upon request certify to any
24    public record in his keeping and shall have authority to
25    levy a reasonable charge for issuing certifications of any
26    public record in his keeping.



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1        (f) In addition to fees authorized elsewhere in this
2    Act, the Commissioner may, in connection with a review,
3    approval, or provision of a service, levy a reasonable
4    charge to recover the cost of the review, approval, or
5    service.
6    (4) Nothing contained in this Act shall be construed to
7limit the obligation relative to examinations and reports of
8any State bank, deposits in which are to any extent insured by
9the United States or any agency thereof, nor to limit in any
10way the powers of the Commissioner with reference to
11examinations and reports of that bank.
12    (5) The nature and condition of the assets in or investment
13of any bonus, pension, or profit sharing plan for officers or
14employees of every State bank or, after May 31, 1997, branch of
15an out-of-state bank shall be deemed to be included in the
16affairs of that State bank or branch of an out-of-state bank
17subject to examination by the Commissioner under the provisions
18of subsection (2) of this Section, and if the Commissioner
19shall find from an examination that the condition of or
20operation of the investments or assets of the plan is unlawful,
21fraudulent, or unsafe, or that any trustee has abused his
22trust, the Commissioner shall, if the situation so found by the
23Commissioner shall not be corrected to his satisfaction within
2460 days after the Commissioner has given notice to the board of
25directors of the State bank or out-of-state bank of his
26findings, report the facts to the Attorney General who shall



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1thereupon institute proceedings against the State bank or
2out-of-state bank, the board of directors thereof, or the
3trustees under such plan as the nature of the case may require.
4    (6) The Commissioner shall have the power:
5        (a) To promulgate reasonable rules for the purpose of
6    administering the provisions of this Act.
7        (a-5) To impose conditions on any approval issued by
8    the Commissioner if he determines that the conditions are
9    necessary or appropriate. These conditions shall be
10    imposed in writing and shall continue in effect for the
11    period prescribed by the Commissioner.
12        (b) To issue orders against any person, if the
13    Commissioner has reasonable cause to believe that an unsafe
14    or unsound banking practice has occurred, is occurring, or
15    is about to occur, if any person has violated, is
16    violating, or is about to violate any law, rule, or written
17    agreement with the Commissioner, or for the purpose of
18    administering the provisions of this Act and any rule
19    promulgated in accordance with this Act.
20        (b-1) To enter into agreements with a bank establishing
21    a program to correct the condition of the bank or its
22    practices.
23        (c) To appoint hearing officers to execute any of the
24    powers granted to the Commissioner under this Section for
25    the purpose of administering this Act and any rule
26    promulgated in accordance with this Act and otherwise to



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1    authorize, in writing, an officer or employee of the Office
2    of Banks and Real Estate to exercise his powers under this
3    Act.
4        (d) To subpoena witnesses, to compel their attendance,
5    to administer an oath, to examine any person under oath,
6    and to require the production of any relevant books,
7    papers, accounts, and documents in the course of and
8    pursuant to any investigation being conducted, or any
9    action being taken, by the Commissioner in respect of any
10    matter relating to the duties imposed upon, or the powers
11    vested in, the Commissioner under the provisions of this
12    Act or any rule promulgated in accordance with this Act.
13        (e) To conduct hearings.
14    (7) Whenever, in the opinion of the Secretary, any
15director, officer, employee, or agent of a State bank or any
16subsidiary or bank holding company of the bank or, after May
1731, 1997, of any branch of an out-of-state bank or any
18subsidiary or bank holding company of the bank shall have
19violated any law, rule, or order relating to that bank or any
20subsidiary or bank holding company of the bank, shall have
21obstructed or impeded any examination or investigation by the
22Secretary, shall have engaged in an unsafe or unsound practice
23in conducting the business of that bank or any subsidiary or
24bank holding company of the bank, or shall have violated any
25law or engaged or participated in any unsafe or unsound
26practice in connection with any financial institution or other



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1business entity such that the character and fitness of the
2director, officer, employee, or agent does not assure
3reasonable promise of safe and sound operation of the State
4bank, the Secretary may issue an order of removal. If, in the
5opinion of the Secretary, any former director, officer,
6employee, or agent of a State bank or any subsidiary or bank
7holding company of the bank, prior to the termination of his or
8her service with that bank or any subsidiary or bank holding
9company of the bank, violated any law, rule, or order relating
10to that State bank or any subsidiary or bank holding company of
11the bank, obstructed or impeded any examination or
12investigation by the Secretary, engaged in an unsafe or unsound
13practice in conducting the business of that bank or any
14subsidiary or bank holding company of the bank, or violated any
15law or engaged or participated in any unsafe or unsound
16practice in connection with any financial institution or other
17business entity such that the character and fitness of the
18director, officer, employee, or agent would not have assured
19reasonable promise of safe and sound operation of the State
20bank, the Secretary may issue an order prohibiting that person
21from further service with a bank or any subsidiary or bank
22holding company of the bank as a director, officer, employee,
23or agent. An order issued pursuant to this subsection shall be
24served upon the director, officer, employee, or agent. A copy
25of the order shall be sent to each director of the bank
26affected by registered mail. A copy of the order shall also be



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1served upon the bank of which he is a director, officer,
2employee, or agent, whereupon he shall cease to be a director,
3officer, employee, or agent of that bank. The Secretary may
4institute a civil action against the director, officer, or
5agent of the State bank or, after May 31, 1997, of the branch
6of the out-of-state bank against whom any order provided for by
7this subsection (7) of this Section 48 has been issued, and
8against the State bank or, after May 31, 1997, out-of-state
9bank, to enforce compliance with or to enjoin any violation of
10the terms of the order. Any person who has been the subject of
11an order of removal or an order of prohibition issued by the
12Secretary under this subsection or Section 5-6 of the Corporate
13Fiduciary Act may not thereafter serve as director, officer,
14employee, or agent of any State bank or of any branch of any
15out-of-state bank, or of any corporate fiduciary, as defined in
16Section 1-5.05 of the Corporate Fiduciary Act, or of any other
17entity that is subject to licensure or regulation by the
18Division of Banking unless the Secretary has granted prior
19approval in writing.
20    For purposes of this paragraph (7), "bank holding company"
21has the meaning prescribed in Section 2 of the Illinois Bank
22Holding Company Act of 1957.
23    (8) The Commissioner may impose civil penalties of up to
24$100,000 against any person for each violation of any provision
25of this Act, any rule promulgated in accordance with this Act,
26any order of the Commissioner, or any other action which in the



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1Commissioner's discretion is an unsafe or unsound banking
3    (9) The Commissioner may impose civil penalties of up to
4$100 against any person for the first failure to comply with
5reporting requirements set forth in the report of examination
6of the bank and up to $200 for the second and subsequent
7failures to comply with those reporting requirements.
8    (10) All final administrative decisions of the
9Commissioner hereunder shall be subject to judicial review
10pursuant to the provisions of the Administrative Review Law.
11For matters involving administrative review, venue shall be in
12either Sangamon County or Cook County.
13    (11) The endowment fund for the Illinois Bank Examiners'
14Education Foundation shall be administered as follows:
15        (a) (Blank).
16        (b) The Foundation is empowered to receive voluntary
17    contributions, gifts, grants, bequests, and donations on
18    behalf of the Illinois Bank Examiners' Education
19    Foundation from national banks and other persons for the
20    purpose of funding the endowment of the Illinois Bank
21    Examiners' Education Foundation.
22        (c) The aggregate of all special educational fees
23    collected by the Secretary and property received by the
24    Secretary on behalf of the Illinois Bank Examiners'
25    Education Foundation under this subsection (11) on or after
26    June 30, 1986, shall be either (i) promptly paid after



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1    receipt of the same, accompanied by a detailed statement
2    thereof, into the State Treasury and shall be set apart in
3    a special fund to be known as "The Illinois Bank Examiners'
4    Education Fund" to be invested by either the Treasurer of
5    the State of Illinois in the Public Treasurers' Investment
6    Pool or in any other investment he is authorized to make or
7    by the Illinois State Board of Investment as the State
8    Banking Board of Illinois may direct or (ii) deposited into
9    an account maintained in a commercial bank or corporate
10    fiduciary in the name of the Illinois Bank Examiners'
11    Education Foundation pursuant to the order and direction of
12    the Board of Trustees of the Illinois Bank Examiners'
13    Education Foundation.
14    (12) (Blank).
15    (13) The Secretary may borrow funds from the General
16Revenue Fund on behalf of the Bank and Trust Company Fund if
17the Director of Banking certifies to the Governor that there is
18an economic emergency affecting banking that requires a
19borrowing to provide additional funds to the Bank and Trust
20Company Fund. The borrowed funds shall be paid back within 3
21years and shall not exceed the total funding appropriated to
22the Agency in the previous year.
23(Source: P.A. 96-1163, eff. 1-1-11; 96-1365, eff. 7-28-10;
2497-333, eff. 8-12-11.)
25    Section 4. The Savings Bank Act is amended by changing



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1Section 9004 as follows:
2    (205 ILCS 205/9004)  (from Ch. 17, par. 7309-4)
3    Sec. 9004. Examination.
4    (a) At least once every 18 months or more often if it is
5deemed necessary or expedient, the Secretary shall examine the
6books, records, operations, and affairs of each savings bank
7operating under this Act. In the course of the examination, the
8Secretary may also examine in the same manner all entities,
9companies, and individuals which or whom the Secretary
10determines may have a relationship with the savings bank or any
11subsidiary or entity affiliated with it, if the relationship
12may adversely affect the affairs, activities, and safety and
13soundness of the savings bank, including: (i) companies
14controlled by the savings bank; (ii) entities, including
15companies controlled by the company, individual, or
16individuals that control the savings bank; and (iii) the
17company or other entity which controls or owns the savings
18bank. Notwithstanding any other provision of this Act, every
19savings bank, as defined by rule, or, if not defined, to the
20same extent as would be permitted in the case of a State bank,
21the Secretary, in lieu of the examination, may accept on an
22alternating basis the examination made by the eligible savings
23bank's appropriate federal banking agency pursuant to Section
24111 of the Federal Deposit Insurance Corporation Improvement
25Act of 1991, provided the appropriate federal banking agency



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1has made an examination.
2    (b) The Secretary shall examine to determine:
3        (1) Quality of financial condition, including safety
4    and soundness and investment and loan quality.
5        (2) Compliance with this Act and other applicable
6    statutes and regulations.
7        (3) Quality of management policies.
8        (4) Overall safety and soundness of the savings bank,
9    its parent, subsidiaries, and affiliates.
10        (5) Remedial actions required to correct and to restore
11    compliance with applicable statutes, regulations, and
12    proper business policies.
13    (c) The Secretary may promulgate regulations to implement
14and administer this Section.
15    (d) If a savings bank, its holding company, or any of its
16corporate subsidiaries has not been audited at least once in
17the 12 months prior to the Secretary's examination, the
18Secretary may cause an audit of the savings bank's books and
19records to be made by an independent licensed public
20accountant. The cost of the audit shall be paid for by the
21entity being audited.
22    (e) The Secretary or his or her examiners or other formally
23designated agents are authorized to administer oaths and to
24examine and to take and preserve testimony under oath as to
25anything in the affairs or ownership of any savings bank or
26institution or affiliate thereof.



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1    (f) Pursuant to subsection (c) of this Section, the
2Secretary shall adopt rules that ensure consistency and due
3process in the examination process. The Secretary may also
4establish guidelines that (i) define the scope of the
5examination process and (ii) clarify examination items to be
6resolved. The rules, formal guidance, interpretive letters, or
7opinions furnished to savings banks by the Secretary may be
8relied upon by the savings banks.
9(Source: P.A. 96-1365, eff. 7-28-10; 97-492, eff. 1-1-12.)".