Illinois General Assembly - Full Text of SB1778
Illinois General Assembly

Previous General Assemblies

Full Text of SB1778  98th General Assembly


Sen. Michael W. Frerichs

Filed: 3/1/2013





09800SB1778sam001LRB098 09391 MGM 42047 a


2    AMENDMENT NO. ______. Amend Senate Bill 1778 on page 10,
3immediately below line 11, by inserting the following:
4    "Section 5. The Illinois Banking Act is amended by changing
5Sections 48, 48.05 and 48.3 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



09800SB1778sam001- 2 -LRB098 09391 MGM 42047 a

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



09800SB1778sam001- 3 -LRB098 09391 MGM 42047 a

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    (2.5) Whenever any State bank, any subsidiary or affiliate
24of a State bank, or after May 31, 1997, any branch of an
25out-of-state bank causes to be performed, by contract or
26otherwise, any bank services for itself, whether on or off its



09800SB1778sam001- 4 -LRB098 09391 MGM 42047 a

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



09800SB1778sam001- 5 -LRB098 09391 MGM 42047 a

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



09800SB1778sam001- 6 -LRB098 09391 MGM 42047 a

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



09800SB1778sam001- 7 -LRB098 09391 MGM 42047 a

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



09800SB1778sam001- 8 -LRB098 09391 MGM 42047 a

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



09800SB1778sam001- 9 -LRB098 09391 MGM 42047 a

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



09800SB1778sam001- 10 -LRB098 09391 MGM 42047 a

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



09800SB1778sam001- 11 -LRB098 09391 MGM 42047 a

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



09800SB1778sam001- 12 -LRB098 09391 MGM 42047 a

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



09800SB1778sam001- 13 -LRB098 09391 MGM 42047 a

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



09800SB1778sam001- 14 -LRB098 09391 MGM 42047 a

1the United States or any agency thereof, nor to limit in any
2way the powers of the Commissioner with reference to
3examinations and reports of that bank.
4    (5) The nature and condition of the assets in or investment
5of any bonus, pension, or profit sharing plan for officers or
6employees of every State bank or, after May 31, 1997, branch of
7an out-of-state bank shall be deemed to be included in the
8affairs of that State bank or branch of an out-of-state bank
9subject to examination by the Commissioner under the provisions
10of subsection (2) of this Section, and if the Commissioner
11shall find from an examination that the condition of or
12operation of the investments or assets of the plan is unlawful,
13fraudulent, or unsafe, or that any trustee has abused his
14trust, the Commissioner shall, if the situation so found by the
15Commissioner shall not be corrected to his satisfaction within
1660 days after the Commissioner has given notice to the board of
17directors of the State bank or out-of-state bank of his
18findings, report the facts to the Attorney General who shall
19thereupon institute proceedings against the State bank or
20out-of-state bank, the board of directors thereof, or the
21trustees under such plan as the nature of the case may require.
22    (6) The Commissioner shall have the power:
23        (a) To promulgate reasonable rules for the purpose of
24    administering the provisions of this Act.
25        (a-5) To impose conditions on any approval issued by
26    the Commissioner if he determines that the conditions are



09800SB1778sam001- 15 -LRB098 09391 MGM 42047 a

1    necessary or appropriate. These conditions shall be
2    imposed in writing and shall continue in effect for the
3    period prescribed by the Commissioner.
4        (b) To issue orders against any person, if the
5    Commissioner has reasonable cause to believe that an unsafe
6    or unsound banking practice has occurred, is occurring, or
7    is about to occur, if any person has violated, is
8    violating, or is about to violate any law, rule, or written
9    agreement with the Commissioner, or for the purpose of
10    administering the provisions of this Act and any rule
11    promulgated in accordance with this Act.
12        (b-1) To enter into agreements with a bank establishing
13    a program to correct the condition of the bank or its
14    practices.
15        (c) To appoint hearing officers to execute any of the
16    powers granted to the Commissioner under this Section for
17    the purpose of administering this Act and any rule
18    promulgated in accordance with this Act and otherwise to
19    authorize, in writing, an officer or employee of the 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



09800SB1778sam001- 16 -LRB098 09391 MGM 42047 a

1    action being taken, by the Commissioner in respect of any
2    matter relating to the duties imposed upon, or the powers
3    vested in, the Commissioner under the provisions of this
4    Act or any rule promulgated in accordance with this Act.
5        (e) To conduct hearings.
6    (7) Whenever, in the opinion of the Secretary, any
7director, officer, employee, or agent of a State bank or any
8subsidiary or bank holding company of the bank or, after May
931, 1997, of any branch of an out-of-state bank or any
10subsidiary or bank holding company of the bank shall have
11violated any law, rule, or order relating to that bank or any
12subsidiary or bank holding company of the bank, shall have
13obstructed or impeded any examination or investigation by the
14Secretary, shall have engaged in an unsafe or unsound practice
15in conducting the business of that bank or any subsidiary or
16bank holding company of the bank, or shall have violated any
17law or engaged or participated in any unsafe or unsound
18practice in connection with any financial institution or other
19business entity such that the character and fitness of the
20director, officer, employee, or agent does not assure
21reasonable promise of safe and sound operation of the State
22bank, the Secretary may issue an order of removal. If, in the
23opinion of the Secretary, any former director, officer,
24employee, or agent of a State bank or any subsidiary or bank
25holding company of the bank, prior to the termination of his or
26her service with that bank or any subsidiary or bank holding



09800SB1778sam001- 17 -LRB098 09391 MGM 42047 a

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



09800SB1778sam001- 18 -LRB098 09391 MGM 42047 a

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



09800SB1778sam001- 19 -LRB098 09391 MGM 42047 a

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



09800SB1778sam001- 20 -LRB098 09391 MGM 42047 a

1    an account maintained in a commercial bank or corporate
2    fiduciary in the name of the Illinois Bank Examiners'
3    Education Foundation pursuant to the order and direction of
4    the Board of Trustees of the Illinois Bank Examiners'
5    Education Foundation.
6    (12) (Blank).
7    (13) The Secretary may borrow funds from the General
8Revenue Fund on behalf of the Bank and Trust Company Fund if
9the Director of Banking certifies to the Governor that there is
10an economic emergency affecting banking that requires a
11borrowing to provide additional funds to the Bank and Trust
12Company Fund. The borrowed funds shall be paid back within 3
13years and shall not exceed the total funding appropriated to
14the Agency in the previous year.
15    (14) The Secretary, when appointed as receiver, or any
16person appointed as receiver shall have the same powers,
17rights, and privileges as the Federal Deposit Insurance
18Corporation. These powers, rights, and privileges shall
19originate at the time of the appointment and continue through
20the term of the receivership.
21(Source: P.A. 96-1163, eff. 1-1-11; 96-1365, eff. 7-28-10;
2297-333, eff. 8-12-11.)
23    (205 ILCS 5/48.05)
24    Sec. 48.05. Regulatory fees. For the fiscal year beginning
25July 1, 2007 and every year thereafter, each state bank



09800SB1778sam001- 21 -LRB098 09391 MGM 42047 a

1regulated by the Department shall pay a regulatory fee to the
2Department based upon its total assets as reflected in the most
3recent quarterly report of condition shown by its year-end Call
4Report at the following rates:
5        19.295˘ per $1,000 of the first $5,000,000 of total
6    assets;
7        18.16˘ per $1,000 of the next $20,000,000 of total
8    assets;
9        15.89˘ per $1,000 of the next $75,000,000 of total
10    assets;
11        10.7825˘ per $1,000 of the next $400,000,000 of total
12    assets;
13        8.5125˘ per $1,000 of the next $500,000,000 of total
14    assets;
15        6.2425˘ per $1,000 of the next $19,000,000,000 of total
16    assets;
17        2.27˘ per $1,000 of the next $30,000,000,000 of total
18    assets;
19        1.135˘ per $1,000 of the next $50,000,000,000 of total
20    assets; and
21        0.5675˘ per $1,000 of all assets in excess of
22    $100,000,000,000 of the state bank.
23(Source: P.A. 95-1047, eff. 4-6-09.)
24    (205 ILCS 5/48.3)  (from Ch. 17, par. 360.2)
25    Sec. 48.3. Disclosure of reports of examinations and



09800SB1778sam001- 22 -LRB098 09391 MGM 42047 a

1confidential supervisory information; limitations.
2    (a) Any report of examination, visitation, or
3investigation prepared by the Commissioner under this Act, the
4Electronic Fund Transfer Act, the Corporate Fiduciary Act, the
5Illinois Bank Holding Company Act of 1957, and the Foreign
6Banking Office Act, any report of examination, visitation, or
7investigation prepared by the state regulatory authority of
8another state that examines a branch of an Illinois State bank
9in that state, any document or record prepared or obtained in
10connection with or relating to any examination, visitation, or
11investigation, and any record prepared or obtained by the
12Commissioner to the extent that the record summarizes or
13contains information derived from any report, document, or
14record described in this subsection shall be deemed
15"confidential supervisory information". Confidential
16supervisory information shall not include any information or
17record routinely prepared by a bank or other financial
18institution and maintained in the ordinary course of business
19or any information or record that is required to be made
20publicly available pursuant to State or federal law or rule.
21Confidential supervisory information shall be the property of
22the Commissioner and shall only be disclosed under the
23circumstances and for the purposes set forth in this Section.
24     The Commissioner may disclose confidential supervisory
25information only under the following circumstances:
26        (1) The Commissioner may furnish confidential



09800SB1778sam001- 23 -LRB098 09391 MGM 42047 a

1    supervisory information to the Board of Governors of the
2    Federal Reserve System, the federal reserve bank of the
3    federal reserve district in which the State bank is located
4    or in which the parent or other affiliate of the State bank
5    is located, any official or examiner thereof duly
6    accredited for the purpose, or any other state regulator,
7    federal regulator, or in the case of a foreign bank
8    possessing a certificate of authority pursuant to the
9    Foreign Banking Office Act or a license pursuant to the
10    Foreign Bank Representative Office Act, the bank regulator
11    in the country where the foreign bank is chartered, that
12    the Commissioner determines to have an appropriate
13    regulatory interest. Nothing contained in this Act shall be
14    construed to limit the obligation of any member State bank
15    to comply with the requirements relative to examinations
16    and reports of the Federal Reserve Act and of the Board of
17    Governors of the Federal Reserve System or the federal
18    reserve bank of the federal reserve district in which the
19    bank is located, nor to limit in any way the powers of the
20    Commissioner with reference to examinations and reports.
21        (2) The Commissioner may furnish confidential
22    supervisory information to the United States, any agency
23    thereof that has insured a bank's deposits in whole or in
24    part, or any official or examiner thereof duly accredited
25    for the purpose. Nothing contained in this Act shall be
26    construed to limit the obligation relative to examinations



09800SB1778sam001- 24 -LRB098 09391 MGM 42047 a

1    and reports of any State bank, deposits in which are to any
2    extent insured by the United States, any agency thereof,
3    nor to limit in any way the powers of the Commissioner with
4    reference to examination and reports of such bank.
5        (3) The Commissioner may furnish confidential
6    supervisory information to the appropriate law enforcement
7    authorities when the Commissioner reasonably believes a
8    bank, which the Commissioner has caused to be examined, has
9    been a victim of a crime.
10        (4) The Commissioner may furnish confidential
11    supervisory information relating to a bank or other
12    financial institution, which the Commissioner has caused
13    to be examined, to be sent to the administrator of the
14    Uniform Disposition of Unclaimed Property Act.
15        (5) The Commissioner may furnish confidential
16    supervisory information relating to a bank or other
17    financial institution, which the Commissioner has caused
18    to be examined, relating to its performance of obligations
19    under the Illinois Income Tax Act and the Illinois Estate
20    and Generation-Skipping Transfer Tax Act to the Illinois
21    Department of Revenue.
22        (6) The Commissioner may furnish confidential
23    supervisory information relating to a bank or other
24    financial institution, which the Commissioner has caused
25    to be examined, under the federal Currency and Foreign
26    Transactions Reporting Act, Title 31, United States Code,



09800SB1778sam001- 25 -LRB098 09391 MGM 42047 a

1    Section 1051 et seq.
2        (6.5) The Commissioner may furnish confidential
3    supervisory information to any other agency or entity that
4    the Commissioner determines to have a legitimate
5    regulatory interest.
6        (7) The Commissioner may furnish confidential
7    supervisory information under any other statute that by its
8    terms or by regulations promulgated thereunder requires
9    the disclosure of financial records other than by subpoena,
10    summons, warrant, or court order.
11        (8) At the request of the affected bank or other
12    financial institution, the Commissioner may furnish
13    confidential supervisory information relating to a bank or
14    other financial institution, which the Commissioner has
15    caused to be examined, in connection with the obtaining of
16    insurance coverage or the pursuit of an insurance claim for
17    or on behalf of the bank or other financial institution;
18    provided that, when possible, the Commissioner shall
19    disclose only relevant information while maintaining the
20    confidentiality of financial records not relevant to such
21    insurance coverage or claim and, when appropriate, may
22    delete identifying data relating to any person or
23    individual.
24        (9) The Commissioner may furnish a copy of a report of
25    any examination performed by the Commissioner of the
26    condition and affairs of any electronic data processing



09800SB1778sam001- 26 -LRB098 09391 MGM 42047 a

1    entity to the banks serviced by the electronic data
2    processing entity.
3        (10) In addition to the foregoing circumstances, the
4    Commissioner may, but is not required to, furnish
5    confidential supervisory information under the same
6    circumstances authorized for the bank or financial
7    institution pursuant to subsection (b) of this Section,
8    except that the Commissioner shall provide confidential
9    supervisory information under circumstances described in
10    paragraph (3) of subsection (b) of this Section only upon
11    the request of the bank or other financial institution.
12    (b) A bank or other financial institution or its officers,
13agents, and employees may disclose confidential supervisory
14information only under the following circumstances:
15        (1) to the board of directors of the bank or other
16    financial institution, as well as the president,
17    vice-president, cashier, and other officers of the bank or
18    other financial institution to whom the board of directors
19    may delegate duties with respect to compliance with
20    recommendations for action, and to the board of directors
21    of a bank holding company that owns at least 80% of the
22    outstanding stock of the bank or other financial
23    institution;
24        (2) to attorneys for the bank or other financial
25    institution and to a certified public accountant engaged by
26    the State bank or financial institution to perform an



09800SB1778sam001- 27 -LRB098 09391 MGM 42047 a

1    independent audit provided that the attorney or certified
2    public accountant shall not permit the confidential
3    supervisory information to be further disseminated;
4        (3) to any person who seeks to acquire a controlling
5    interest in, or who seeks to merge with, the bank or
6    financial institution, provided that all attorneys,
7    certified public accountants, officers, agents, or
8    employees of that person shall agree to be bound to respect
9    the confidentiality of the confidential supervisory
10    information and to not further disseminate the information
11    therein contained;
12        (4) (blank); or
13        (5) to the bank's insurance company in relation to an
14    insurance claim or the effort by the bank to procure
15    insurance coverage, provided that, when possible, the bank
16    shall disclose only information that is relevant to the
17    insurance claim or that is necessary to procure the
18    insurance coverage, while maintaining the confidentiality
19    of financial information pertaining to customers. When
20    appropriate, the bank may delete identifying data relating
21    to any person.
22        (6) to any person conducting a review of the bank on
23    behalf of the bank for purposes of complying with any
24    enforcement action taken by a bank regulatory agency so
25    long as the bank obtains approval prior to release of the
26    confidential supervisory information by the Secretary and



09800SB1778sam001- 28 -LRB098 09391 MGM 42047 a

1    the person conducting the review agrees to maintain the
2    confidentiality of the confidential supervisory
3    information and to not further disseminate the
4    confidential supervisory information.
5    The disclosure of confidential supervisory information by
6a bank or other financial institution pursuant to this
7subsection (b) and the disclosure of information to the
8Commissioner or other regulatory agency in connection with any
9examination, visitation, or investigation shall not constitute
10a waiver of any legal privilege otherwise available to the bank
11or other financial institution with respect to the information.
12    (c) (1) Notwithstanding any other provision of this Act or
13any other law, confidential supervisory information shall be
14the property of the Commissioner and shall be privileged from
15disclosure to any person except as provided in this Section. No
16person in possession of confidential supervisory information
17may disclose that information for any reason or under any
18circumstances not specified in this Section without the prior
19authorization of the Commissioner. Any person upon whom a
20demand for production of confidential supervisory information
21is made, whether by subpoena, order, or other judicial or
22administrative process, must withhold production of the
23confidential supervisory information and must notify the
24Commissioner of the demand, at which time the Commissioner is
25authorized to intervene for the purpose of enforcing the
26limitations of this Section or seeking the withdrawal or



09800SB1778sam001- 29 -LRB098 09391 MGM 42047 a

1termination of the attempt to compel production of the
2confidential supervisory information.
3    (2) Any request for discovery or disclosure of confidential
4supervisory information, whether by subpoena, order, or other
5judicial or administrative process, shall be made to the
6Commissioner, and the Commissioner shall determine within 15
7days whether to disclose the information pursuant to procedures
8and standards that the Commissioner shall establish by rule. If
9the Commissioner determines that such information will not be
10disclosed, the Commissioner's decision shall be subject to
11judicial review under the provisions of the Administrative
12Review Law, and venue shall be in either Sangamon County or
13Cook County.
14    (3) Any court order that compels disclosure of confidential
15supervisory information may be immediately appealed by the
16Commissioner, and the order shall be automatically stayed
17pending the outcome of the appeal.
18    (d) If any officer, agent, attorney, or employee of a bank
19or financial institution knowingly and willfully furnishes
20confidential supervisory information in violation of this
21Section, the Commissioner may impose a civil monetary penalty
22up to $1,000 for the violation against the officer, agent,
23attorney, or employee.
24(Source: P.A. 90-301, eff. 8-1-97; 91-201, eff. 1-1-00.)"; and
25on page 47, by replacing lines 7 through 11 with the following:



09800SB1778sam001- 30 -LRB098 09391 MGM 42047 a

1    "The Secretary, when appointed as receiver, or any person
2appointed as receiver shall have the same powers, rights, and
3privileges as the Federal Deposit Insurance Corporation, which
4shall originate at the time of the appointment and continue
5through the term of the receivership.".