Full Text of HB3799 100th General Assembly
HB3799 100TH GENERAL ASSEMBLY |
| | 100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018 HB3799 Introduced 2/10/2017, by Rep. Daniel V. Beiser SYNOPSIS AS INTRODUCED: |
| 205 ILCS 5/5 | from Ch. 17, par. 311 | 205 ILCS 205/1008 | from Ch. 17, par. 7301-8 | 205 ILCS 305/13 | from Ch. 17, par. 4414 |
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Amends the Illinois Banking Act, the Savings Bank Act, and the Illinois Credit Union Act. Allows certain financial institutions to refuse a transaction if an employee or officer has fulfilled certain training requirements under the Adult Protective Services Act and reasonably believes that an act of financial exploitation of an eligible adult has occurred or may occur. Provides that neither the financial institution nor its employees or officers shall be liable for any actions taken in good faith under the provisions. Effective immediately.
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| | A BILL FOR |
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| 1 | | AN ACT concerning regulation.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Banking Act is amended by changing | 5 | | Section 5 as follows:
| 6 | | (205 ILCS 5/5) (from Ch. 17, par. 311)
| 7 | | Sec. 5. General corporate powers. A bank organized under | 8 | | this Act
or subject hereto shall be a body corporate and | 9 | | politic and shall,
without specific mention thereof in the | 10 | | charter, have all the powers
conferred by this Act and the | 11 | | following additional general corporate
powers:
| 12 | | (1) To sue and be sued, complain, and defend in its | 13 | | corporate name.
| 14 | | (2) To have a corporate seal, which may be altered at | 15 | | pleasure, and
to use the same by causing it or a facsimile | 16 | | thereof to be impressed or
affixed or in any manner | 17 | | reproduced, provided that the affixing of a
corporate
seal | 18 | | to an instrument shall not give the instrument additional | 19 | | force or effect,
or change the construction thereof, and | 20 | | the use of a corporate seal is not
mandatory.
| 21 | | (3) To make, alter, amend, and repeal bylaws, not | 22 | | inconsistent with
its charter or with law, for the | 23 | | administration of the affairs of the bank.
If this Act does |
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| 1 | | not provide specific guidance in matters of corporate
| 2 | | governance, the provisions of the Business Corporation Act | 3 | | of 1983 may be
used if so provided in the bylaws, and if | 4 | | the bank is a limited liability
company, the provisions of | 5 | | the Limited Liability Company Act shall be used.
| 6 | | (4) To elect or appoint and remove officers and agents | 7 | | of the bank
and define their duties and fix their | 8 | | compensation.
| 9 | | (5) To adopt and operate reasonable bonus plans, | 10 | | profit-sharing
plans, stock-bonus plans, stock-option | 11 | | plans, pension plans and similar
incentive plans for its | 12 | | directors, officers and employees.
| 13 | | (5.1) To manage, operate and administer a fund for the | 14 | | investment of funds
by a public agency or agencies, | 15 | | including any unit of local government or
school district, | 16 | | or any person. The fund for a public agency shall invest in
| 17 | | the same type of investments and be subject to the same | 18 | | limitations provided
for the investment of public funds. | 19 | | The fund for public agencies shall
maintain a separate | 20 | | ledger showing the amount of investment for each public
| 21 | | agency in the fund. "Public funds" and "public agency" as | 22 | | used in this Section
shall have the meanings ascribed to | 23 | | them in Section 1 of the Public Funds
Investment Act.
| 24 | | (6) To make reasonable donations for the public welfare | 25 | | or for charitable,
scientific, religious or educational | 26 | | purposes.
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| 1 | | (7) To borrow or incur an obligation; and to pledge its | 2 | | assets:
| 3 | | (a) to secure its borrowings, its lease of personal | 4 | | or real property or
its other nondeposit obligations;
| 5 | | (b) to enable it to act as agent for the sale of | 6 | | obligations of the
United States;
| 7 | | (c) to secure deposits of public money of the | 8 | | United States,
whenever required by the laws of the | 9 | | United States, including without
being limited to, | 10 | | revenues and funds the deposit of which is subject to
| 11 | | the control or regulation of the United States or any | 12 | | of its officers,
agents, or employees and Postal | 13 | | Savings funds;
| 14 | | (d) to secure deposits of public money of any state | 15 | | or of any
political corporation or subdivision thereof
| 16 | | including, without being limited to, revenues and | 17 | | funds the deposit of which
is subject to the control or | 18 | | regulation of any state or of any political
corporation | 19 | | or subdivisions thereof or of any of their officers, | 20 | | agents, or
employees;
| 21 | | (e) to secure deposits of money whenever required | 22 | | by the National
Bankruptcy Act;
| 23 | | (f) (blank); and
| 24 | | (g) to secure trust funds commingled with the | 25 | | bank's funds, whether
deposited by the bank or an | 26 | | affiliate of the bank, pursuant to Section 2-8 of
the |
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| 1 | | Corporate Fiduciary Act.
| 2 | | (8) To own, possess, and carry as assets all or part of | 3 | | the real
estate necessary in or with which to do its | 4 | | banking business, either
directly or indirectly through | 5 | | the ownership of all or part of the
capital stock, shares | 6 | | or interests in any corporation, association,
trust | 7 | | engaged in holding any part or parts or all of the bank
| 8 | | premises, engaged in such business and in conducting a safe
| 9 | | deposit business in the premises or part of them, or | 10 | | engaged in any activity
that the bank is permitted to | 11 | | conduct in a subsidiary pursuant to paragraph
(12) of this | 12 | | Section 5.
| 13 | | (9) To own, possess, and carry as assets other real | 14 | | estate to
which it may obtain title in the collection of | 15 | | its debts or that was
formerly used as a part of the bank | 16 | | premises, but title to
any real estate except as herein | 17 | | permitted shall not be retained by the
bank, either | 18 | | directly or by or through a subsidiary, as permitted by
| 19 | | subsection (12) of this Section for a total period of more | 20 | | than 10
years
after acquiring title, either directly or | 21 | | indirectly.
| 22 | | (10) To do any act, including the acquisition of stock, | 23 | | necessary to
obtain insurance of its deposits, or part | 24 | | thereof, and any act necessary
to obtain a guaranty, in | 25 | | whole or in part, of any of its loans or
investments by the | 26 | | United States or any agency thereof, and any act
necessary |
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| 1 | | to sell or otherwise dispose of any of its loans or
| 2 | | investments to the United States or any agency thereof, and | 3 | | to acquire
and hold membership in the Federal Reserve | 4 | | System.
| 5 | | (11) Notwithstanding any other provisions of this Act | 6 | | or any
other law, to do any act
and to own, possess, and | 7 | | carry as assets property of the character,
including stock, | 8 | | that is at the time authorized or permitted to
national | 9 | | banks by an Act of Congress, but subject always to the same
| 10 | | limitations and restrictions as are applicable to national | 11 | | banks by the
pertinent federal law and subject to | 12 | | applicable provisions of the
Financial Institutions | 13 | | Insurance Sales Law.
| 14 | | (12) To own, possess, and carry as assets stock of one | 15 | | or more
corporations that is, or are, engaged in one or | 16 | | more of the
following businesses:
| 17 | | (a) holding title to and administering assets | 18 | | acquired
as a result of the collection or liquidating | 19 | | of loans, investments, or
discounts; or
| 20 | | (b) holding title to and administering personal | 21 | | property acquired by
the bank, directly or indirectly | 22 | | through a subsidiary, for the
purpose of leasing to | 23 | | others, provided the lease or leases and the
investment | 24 | | of the bank, directly or through a subsidiary, in that
| 25 | | personal property otherwise comply with Section 35.1 | 26 | | of this Act; or
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| 1 | | (c) carrying on or administering any of the | 2 | | activities excepting the
receipt of deposits or the | 3 | | payment of checks or other orders for the
payment of | 4 | | money in which a bank may engage in carrying on its | 5 | | general
banking business; provided, however, that | 6 | | nothing contained in this
paragraph (c) shall be deemed | 7 | | to permit a bank organized under this Act or
subject | 8 | | hereto to do, either directly or indirectly through any
| 9 | | subsidiary, any act, including the making of any loan | 10 | | or investment, or to
own, possess, or carry as assets | 11 | | any property that if done by or owned,
possessed, or | 12 | | carried by the State bank would be in violation of or
| 13 | | prohibited by any provision of this Act.
| 14 | | The provisions of this subsection (12) shall not apply | 15 | | to and shall not
be deemed to limit the powers of a State | 16 | | bank with respect to the
ownership, possession, and | 17 | | carrying of stock that a State bank is permitted to
own, | 18 | | possess, or carry under this Act.
| 19 | | Any bank intending to establish a subsidiary under this | 20 | | subsection
(12) shall give written notice to the | 21 | | Commissioner 60 days prior to the
subsidiary's commencing | 22 | | of business or, as the case may be, prior to
acquiring | 23 | | stock in a corporation that has already commenced business. | 24 | | After
receiving the notice, the Commissioner may waive or | 25 | | reduce the balance of the
60 day notice period. The
| 26 | | Commissioner may specify the form of the notice, may |
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| 1 | | designate the types of subsidiaries not subject to this | 2 | | notice requirement, and may promulgate rules
and | 3 | | regulations to administer this subsection (12).
| 4 | | (13) To accept for payment at a future date not | 5 | | exceeding one year
from the date of acceptance, drafts | 6 | | drawn upon it by its customers; and
to issue, advise, or | 7 | | confirm letters of credit authorizing the holders
thereof | 8 | | to draw drafts upon it or its correspondents.
| 9 | | (14) To own and lease personal property acquired by the | 10 | | bank at the
request of a prospective lessee and upon the | 11 | | agreement of that person to
lease the personal property | 12 | | provided that the lease, the agreement
with respect | 13 | | thereto, and the amount of the investment of the bank in
| 14 | | the property comply with Section 35.1 of this Act.
| 15 | | (15)(a) To establish and maintain, in addition to the | 16 | | main
banking premises, branches offering any banking | 17 | | services permitted at the main
banking premises of a State | 18 | | bank.
| 19 | | (b) To establish and maintain, after May 31, 1997, | 20 | | branches in
another state that may conduct any activity in | 21 | | that state that is authorized or
permitted for any bank | 22 | | that has a banking charter issued by that state, subject
to | 23 | | the same limitations and restrictions that are applicable | 24 | | to banks chartered
by that state.
| 25 | | (16) (Blank).
| 26 | | (17) To establish and maintain terminals, as |
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| 1 | | authorized by the
Electronic Fund Transfer Act.
| 2 | | (18) To establish and maintain temporary service | 3 | | booths at any
International Fair held in this State which | 4 | | is approved by the United
States Department of Commerce, | 5 | | for the duration of the international fair
for the sole | 6 | | purpose of providing a convenient place for foreign trade
| 7 | | customers at the fair to exchange their home countries' | 8 | | currency into
United States currency or the converse. This | 9 | | power shall not be construed
as establishing a new place or | 10 | | change of location for the bank providing
the service | 11 | | booth.
| 12 | | (19) To indemnify its officers, directors, employees, | 13 | | and
agents, as authorized for corporations under Section | 14 | | 8.75 of the
Business Corporation Act of 1983.
| 15 | | (20) To own, possess, and carry as assets stock of, or | 16 | | be or become a
member of, any corporation, mutual company, | 17 | | association, trust, or other
entity formed exclusively for | 18 | | the purpose of providing directors' and
officers' | 19 | | liability and bankers' blanket bond insurance or | 20 | | reinsurance
to and for the benefit of the stockholders, | 21 | | members, or beneficiaries, or their
assets or businesses, | 22 | | or their officers, directors, employees, or agents, and
not | 23 | | to or for the benefit of any other person or entity or the | 24 | | public
generally.
| 25 | | (21) To make debt or equity investments in corporations | 26 | | or projects,
whether for profit or not for profit, designed |
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| 1 | | to promote the development
of the community and its | 2 | | welfare, provided that the aggregate investment in
all of | 3 | | these corporations and in all of these projects does not | 4 | | exceed 10% of
the
unimpaired capital and unimpaired surplus | 5 | | of the bank and provided that
this
limitation shall not | 6 | | apply to creditworthy loans by the bank to those
| 7 | | corporations or projects. Upon written application to the | 8 | | Commissioner, a
bank may make an investment that would, | 9 | | when aggregated with all other
such investments, exceed 10% | 10 | | of the unimpaired capital and
unimpaired
surplus of the
| 11 | | bank. The Commissioner may approve the investment if he is | 12 | | of the opinion
and finds that the proposed investment will | 13 | | not have a material adverse
effect on the safety and | 14 | | soundness of the bank.
| 15 | | (22) To own, possess, and carry as assets the stock of | 16 | | a corporation
engaged in the ownership or operation of a | 17 | | travel agency or to operate a
travel agency as a part of | 18 | | its business.
| 19 | | (23) With respect to affiliate facilities:
| 20 | | (a) to conduct at affiliate facilities for and on | 21 | | behalf of another
commonly owned bank, if so
authorized | 22 | | by the other bank, all transactions that the other bank | 23 | | is
authorized or permitted to perform; and
| 24 | | (b) to authorize a commonly owned bank to conduct | 25 | | for and on behalf of
it any of the transactions it is | 26 | | authorized or permitted to perform at one or
more
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| 1 | | affiliate facilities.
| 2 | | Any bank intending to conduct or to authorize a | 3 | | commonly owned bank to
conduct at an affiliate facility any | 4 | | of the transactions specified in this
paragraph (23) shall | 5 | | give written notice to the Commissioner at least 30
days | 6 | | before any such transaction is conducted at the affiliate | 7 | | facility.
| 8 | | (24) To act as the agent for any fire, life, or other | 9 | | insurance company
authorized by the State of Illinois, by | 10 | | soliciting and selling insurance and
collecting premiums | 11 | | on policies issued by such company; and to
receive for | 12 | | services so rendered such fees or commissions as may be | 13 | | agreed upon
between the bank and the insurance company for | 14 | | which it may act as
agent; provided, however, that no such | 15 | | bank shall in any case assume or
guarantee the payment of | 16 | | any premium on insurance policies issued through its
agency | 17 | | by its principal; and provided further, that the bank shall | 18 | | not
guarantee the truth of any statement made by an assured | 19 | | in filing his
application for insurance.
| 20 | | (25) Notwithstanding any other provisions of this Act | 21 | | or any other law,
to offer any product or service that is | 22 | | at the time authorized or permitted to
any insured savings | 23 | | association or out-of-state bank by applicable law,
| 24 | | provided that powers
conferred only by this subsection | 25 | | (25):
| 26 | | (a) shall always be subject to the same limitations |
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| 1 | | and restrictions that
are applicable to the insured | 2 | | savings association or out-of-state bank for
the | 3 | | product or service by
such applicable law;
| 4 | | (b) shall be subject to applicable provisions of | 5 | | the Financial
Institutions Insurance Sales Law;
| 6 | | (c) shall not include the right to own or conduct a | 7 | | real estate brokerage
business for which a license | 8 | | would be required under the laws of this State;
and
| 9 | | (d) shall not be construed to include the | 10 | | establishment or maintenance of
a branch, nor shall | 11 | | they be construed to limit the establishment or | 12 | | maintenance
of a branch pursuant to subsection (11).
| 13 | | Not less than 30 days before engaging in any activity | 14 | | under the authority
of this subsection, a bank shall | 15 | | provide written notice to the Commissioner of
its intent to | 16 | | engage in the activity. The notice shall indicate the | 17 | | specific
federal or state law, rule, regulation, or | 18 | | interpretation the bank intends to
use as authority to | 19 | | engage in the activity.
| 20 | | (26) Nothing in this Section shall be construed to | 21 | | require the filing of a notice or application for approval | 22 | | with the United States Office of the Comptroller of the | 23 | | Currency or a bank supervisor of another state as a | 24 | | condition to the right of a State bank to exercise any of | 25 | | the powers conferred by this Section in this State. | 26 | | (27) To refuse any transaction if any employee or |
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| 1 | | officer of the bank, having fulfilled the training | 2 | | requirements of subsection (g-1) of Section 3.5 of the | 3 | | Adult Protective Services Act, reasonably believes that an | 4 | | act of financial exploitation of an eligible adult has | 5 | | occurred or may occur. Neither the bank nor its employees | 6 | | or officers shall be liable for any actions taken in good | 7 | | faith under this subsection (27). | 8 | | (Source: P.A. 98-44, eff. 6-28-13; 99-362, eff. 8-13-15.)
| 9 | | Section 10. The Savings Bank Act is amended by changing | 10 | | Section 1008 as follows:
| 11 | | (205 ILCS 205/1008) (from Ch. 17, par. 7301-8)
| 12 | | Sec. 1008. General corporate powers.
| 13 | | (a) A savings bank operating under this Act shall be a body
| 14 | | corporate and politic and shall have all of the powers
| 15 | | conferred by this Act including, but not limited to, the | 16 | | following powers:
| 17 | | (1) To sue and be sued, complain, and defend in its | 18 | | corporate
name and to have a common seal, which it may | 19 | | alter or renew at
pleasure.
| 20 | | (2) To obtain and maintain insurance
by a deposit | 21 | | insurance corporation as defined in this Act.
| 22 | | (3) To act as a fiscal agent for the United States, the | 23 | | State
of Illinois or any department, branch, arm, or agency | 24 | | of the State
or any unit of local government or school |
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| 1 | | district in the State,
when duly designated for that | 2 | | purpose, and as agent to perform
reasonable functions as | 3 | | may be required of it.
| 4 | | (4) To become a member of or deal with any corporation | 5 | | or
agency of the United States or the State of Illinois, to | 6 | | the extent
that the agency assists in furthering or | 7 | | facilitating its purposes
or powers and to that end to | 8 | | purchase stock or securities thereof
or deposit money | 9 | | therewith, and to comply with any other conditions
of | 10 | | membership or credit.
| 11 | | (5) To make donations in reasonable amounts for the | 12 | | public welfare or for
charitable, scientific, religious, | 13 | | or educational purposes.
| 14 | | (6) To adopt and operate reasonable insurance, bonus, | 15 | | profit sharing, and
retirement plans for officers and | 16 | | employees and for directors including, but
not limited to, | 17 | | advisory, honorary, and emeritus directors,
who are not | 18 | | officers or employees.
| 19 | | (7) To reject any application for membership; to retire | 20 | | deposit accounts
by enforced retirement as provided in this | 21 | | Act and the bylaws; and to limit the
issuance of, or | 22 | | payments on, deposit accounts, subject, however, to | 23 | | contractual
obligations.
| 24 | | (8) To purchase stock or membership interests in | 25 | | service corporations and to invest in any form of
| 26 | | indebtedness of any service corporation as defined in this |
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| 1 | | Act, subject to
regulations of the Secretary.
| 2 | | (9) To purchase stock of a corporation whose principal | 3 | | purpose is to
operate a safe deposit company or escrow | 4 | | service company.
| 5 | | (10) To exercise all the powers necessary to qualify as | 6 | | a trustee or
custodian under federal or State law, provided | 7 | | that the authority to accept and
execute trusts is subject | 8 | | to the provisions of the Corporate Fiduciary Act and
to the | 9 | | supervision of those activities by the Secretary.
| 10 | | (11) (Blank).
| 11 | | (12) To establish, maintain, and operate terminals as | 12 | | authorized by the
Electronic Fund Transfer Act.
| 13 | | (13) To pledge its assets:
| 14 | | (A) to enable it to act as agent for the sale of | 15 | | obligations of the
United States;
| 16 | | (B) to secure deposits;
| 17 | | (C) to secure deposits of money whenever required | 18 | | by the National
Bankruptcy Act;
| 19 | | (D) (blank); and
| 20 | | (E) to secure trust funds commingled with the | 21 | | savings
bank's funds,
whether deposited by the savings | 22 | | bank or an affiliate of the savings bank,
as required | 23 | | under Section 2-8 of the Corporate Fiduciary Act.
| 24 | | (14) To accept for payment at a future date not to | 25 | | exceed one year
from the date of acceptance, drafts drawn | 26 | | upon it by its customers; and to
issue, advise, or confirm |
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| 1 | | letters of credit authorizing holders thereof to
draw | 2 | | drafts upon it or its correspondents.
| 3 | | (15) Subject to the regulations of the Secretary, to | 4 | | own and lease
personal property acquired by the savings | 5 | | bank at the request of a
prospective lessee and, upon the | 6 | | agreement of that person, to lease the
personal property.
| 7 | | (16) To establish temporary service booths at any | 8 | | International Fair
in this State that is approved by the | 9 | | United States Department of Commerce
for the duration of | 10 | | the international fair for the purpose of providing a
| 11 | | convenient place for foreign trade customers to exchange | 12 | | their home
countries' currency into United States currency | 13 | | or the converse. To provide
temporary periodic service to | 14 | | persons residing in a bona fide nursing home,
senior
| 15 | | citizens' retirement home, or long-term care facility. | 16 | | These powers shall not be construed as establishing a new | 17 | | place or change of
location for the savings bank providing | 18 | | the service booth.
| 19 | | (17) To indemnify its officers, directors, employees, | 20 | | and agents, as
authorized for corporations under Section | 21 | | 8.75 of the Business Corporations
Act of 1983.
| 22 | | (18) To provide data processing services to others on a | 23 | | for-profit basis.
| 24 | | (19) To utilize any electronic technology to provide | 25 | | customers with
home banking services.
| 26 | | (20) Subject to the regulations of the Secretary, to |
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| 1 | | enter into an
agreement to act as a surety.
| 2 | | (21) Subject to the regulations of the Secretary, to | 3 | | issue credit
cards, extend credit therewith, and otherwise | 4 | | engage in or participate in
credit card operations.
| 5 | | (22) To purchase for its own account shares of stock of | 6 | | a bankers' bank,
described in Section 13(b)(1) of the | 7 | | Illinois Banking Act, on the same terms
and conditions as a | 8 | | bank may purchase such shares. In no event shall the total
| 9 | | amount of such stock held by a savings bank in such
| 10 | | bankers' bank exceed 10% of
its capital and surplus | 11 | | (including undivided profits) and in no event shall a
| 12 | | savings bank acquire more than 5% of any class of voting | 13 | | securities of such
bankers' bank.
| 14 | | (23) With respect to affiliate facilities:
| 15 | | (A) to conduct at affiliate facilities any of the | 16 | | following transactions
for
and on behalf of any | 17 | | affiliated depository institution, if so authorized by
| 18 | | the affiliate or affiliates: receiving deposits; | 19 | | renewing deposits; cashing
and issuing checks, drafts, | 20 | | money orders, travelers checks, or similar
| 21 | | instruments; changing money; receiving payments on | 22 | | existing indebtedness; and
conducting ministerial | 23 | | functions with respect to loan applications, servicing
| 24 | | loans, and providing loan account information; and
| 25 | | (B) to authorize an affiliated depository | 26 | | institution to conduct for and
on
behalf of it, any of |
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| 1 | | the transactions listed in this subsection at one or | 2 | | more
affiliate facilities.
| 3 | | A savings bank intending to conduct or to authorize an | 4 | | affiliated
depository institution to conduct at an | 5 | | affiliate facility any of the
transactions specified in | 6 | | this subsection shall give written notice to the Secretary
| 7 | | at least 30 days before any such transaction is conducted | 8 | | at an
affiliate facility. All conduct under this subsection | 9 | | shall be on terms
consistent with safe and sound banking | 10 | | practices and applicable law.
| 11 | | (24) Subject to Article XLIV of the Illinois Insurance | 12 | | Code,
to act as the agent for any fire, life, or other | 13 | | insurance company
authorized by the State of Illinois, by | 14 | | soliciting and selling insurance and
collecting premiums | 15 | | on policies issued by such company; and may receive for
| 16 | | services so rendered such fees or commissions as may be | 17 | | agreed upon between the
said savings bank and the insurance | 18 | | company for which it may act as agent;
provided, however, | 19 | | that no such savings bank shall in any case assume or
| 20 | | guarantee the payment of any premium on insurance policies | 21 | | issued through its
agency by its principal; and provided | 22 | | further, that the savings bank shall not
guarantee the | 23 | | truth of any statement made by an assured in filing his
| 24 | | application for insurance.
| 25 | | (25) To become a member of the Federal Home Loan
Bank
| 26 | | and
to have the powers granted to a savings association |
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| 1 | | organized under the
Illinois Savings and Loan Act of 1985 | 2 | | or the laws of the United States, subject
to regulations of | 3 | | the Secretary.
| 4 | | (26) To offer any product or service that is at the | 5 | | time authorized or
permitted to a bank by applicable law, | 6 | | but subject always to the same
limitations and restrictions | 7 | | that are applicable to the bank for the product or
service | 8 | | by such applicable law and subject to the applicable | 9 | | provisions of the
Financial Institutions Insurance Sales | 10 | | Law and rules of the Secretary.
| 11 | | (27) To refuse any transaction if any employee or | 12 | | officer of the savings bank, having fulfilled the training | 13 | | requirements of subsection (g-1) of Section 3.5 of the | 14 | | Adult Protective Services Act, reasonably believes that an | 15 | | act of financial exploitation of an eligible adult has | 16 | | occurred or may occur. Neither the savings bank nor its | 17 | | employees or officers shall be liable for any actions taken | 18 | | in good faith under this subsection (27). | 19 | | (b) If this Act or the regulations adopted under this Act | 20 | | fail
to
provide specific guidance in matters of corporate
| 21 | | governance, the provisions of the Business Corporation Act of | 22 | | 1983 may be
used, or if the savings bank is a limited liability | 23 | | company, the provisions
of the Limited Liability Company shall | 24 | | be used.
| 25 | | (c) A savings bank may be organized as a limited liability | 26 | | company, may
convert to a limited liability company, or may |
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| 1 | | merge with and into a limited
liability company, under the | 2 | | applicable laws of this State and of the United
States, | 3 | | including any rules promulgated thereunder. A savings bank | 4 | | organized as
a limited liability company shall
be subject to | 5 | | the provisions of the Limited Liability Company Act in addition
| 6 | | to this Act, provided that if a provision of the Limited | 7 | | Liability
Company Act conflicts with a provision of this Act or | 8 | | with any rule of the Secretary, the provision of this Act or | 9 | | the rule of the Secretary shall
apply.
| 10 | | Any filing required to be made under the Limited Liability | 11 | | Company Act shall
be made exclusively with the Secretary, and | 12 | | the Secretary shall possess
the exclusive authority to regulate | 13 | | the savings bank as provided in this Act.
| 14 | | Any organization as, conversion to, and merger with or into | 15 | | a limited
liability company shall be subject to the prior | 16 | | approval of the Secretary.
| 17 | | A savings bank that is a limited liability company shall be | 18 | | subject to all of
the provisions of this Act in the same manner | 19 | | as a savings bank that is
organized in stock form.
| 20 | | The Secretary may promulgate rules to ensure that a savings | 21 | | bank that is a
limited liability company (i) is operating in a | 22 | | safe and sound manner and (ii)
is subject to the Secretary's | 23 | | authority in the same manner as a savings bank
that is | 24 | | organized in stock form.
| 25 | | (Source: P.A. 97-492, eff. 1-1-12.)
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| 1 | | Section 15. The Illinois Credit Union Act is amended by | 2 | | changing Section 13 as follows:
| 3 | | (205 ILCS 305/13) (from Ch. 17, par. 4414)
| 4 | | Sec. 13. General powers. A credit union may:
| 5 | | (1) Make contracts; sue and be sued; and adopt and use | 6 | | a common seal
and alter the same;
| 7 | | (2) Acquire, lease (either as lessee or lessor), hold, | 8 | | pledge, mortgage,
sell and dispose of real property, either | 9 | | in whole or in part, or any interest
therein, as may be | 10 | | necessary or incidental to its present or future
operations | 11 | | and needs, subject to such limitations as may be imposed
| 12 | | thereon in rules and regulations promulgated by the | 13 | | Secretary; acquire, lease
(either as lessee or lessor), | 14 | | hold, pledge, mortgage, sell and dispose of
personal | 15 | | property, either in whole or in part, or any interest | 16 | | therein,
as may be necessary or incidental to its present | 17 | | or future operations
and needs;
| 18 | | (3) At the discretion of the board of directors, | 19 | | require the payment of
an entrance fee or annual membership | 20 | | fee, or both, of any person admitted to
membership;
| 21 | | (4) Receive savings from its members in the form of | 22 | | shares of various
classes, or special purpose share | 23 | | accounts; act as custodian of its members'
accounts; issue | 24 | | shares in trust as provided in this Act;
| 25 | | (5) Lend its funds to its members and otherwise as |
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| 1 | | hereinafter provided;
| 2 | | (6) Borrow from any source in accordance with policy | 3 | | established by the board of directors
to a maximum of 50% | 4 | | of capital, surplus and reserves;
| 5 | | (7) Discount and sell any obligations owed to the | 6 | | credit union;
| 7 | | (8) Honor requests for withdrawals or transfers of all | 8 | | or any part of
member share accounts, and any classes | 9 | | thereof, in any manner approved by
the credit union board | 10 | | of directors;
| 11 | | (9) Sell all or a part of its assets or purchase all or
| 12 | | a part of the assets of another credit union and assume the | 13 | | liabilities of the selling credit union, subject to the
| 14 | | prior approval of the Director, which approval shall not be | 15 | | required in the case of loan transactions otherwise | 16 | | authorized under applicable law;
| 17 | | (10) Invest surplus funds as provided in this Act;
| 18 | | (11) Make deposits in banks, savings banks, savings and | 19 | | loan associations,
trust companies; and invest in shares, | 20 | | classes of shares or share certificates
of other credit | 21 | | unions;
| 22 | | (12) Assess charges and fees to members in accordance | 23 | | with board
resolution;
| 24 | | (13) Hold membership in and pay dues to associations | 25 | | and organizations;
to invest in shares, stocks or | 26 | | obligations of any credit union organization;
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| 1 | | (14) Declare dividends and pay interest refunds to | 2 | | borrowers as provided
in this Act;
| 3 | | (15) Collect, receive and disburse monies in | 4 | | connection with providing
negotiable checks, money orders | 5 | | and other money-type instruments, and for
such other | 6 | | purposes as may provide benefit or convenience to its | 7 | | members,
and charge a reasonable fee for such services;
| 8 | | (16) Act as fiscal agent for and receive deposits from | 9 | | the federal
government, this state or any agency or | 10 | | political subdivision thereof;
| 11 | | (17) Receive savings from nonmembers in the form of | 12 | | shares or share
accounts in the case of credit unions | 13 | | serving predominantly low-income
members. The term "low | 14 | | income
members" shall mean those members who make less than | 15 | | 80% of the average for
all wage earners as established by | 16 | | the Bureau of Labor Statistics or those
members whose | 17 | | annual household income falls at or below 80% of the
median | 18 | | household income for the nation as established by the | 19 | | Census Bureau. The
term "predominantly" is defined as a | 20 | | simple majority;
| 21 | | (18) Establish, maintain, and operate terminals as | 22 | | authorized by
the Electronic Fund Transfer Act;
| 23 | | (19) Subject to Article XLIV of the Illinois Insurance | 24 | | Code, act
as the agent for any fire, life, or other | 25 | | insurance company authorized by the
State of Illinois, by | 26 | | soliciting and selling insurance and collecting premiums
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| 1 | | on policies issued by such company; and may receive for | 2 | | services so rendered
such fees or commissions as may be | 3 | | agreed upon between the said credit union
and the insurance | 4 | | company for which it may act as agent; provided, however,
| 5 | | that no such credit union shall in any case assume or | 6 | | guarantee the payment of
any premium on insurance policies | 7 | | issued through its agency by its principal;
and provided | 8 | | further, that the credit union shall not guarantee the | 9 | | truth of
any statement made by an assured in filing his | 10 | | application for insurance; and
| 11 | | (20) Make reasonable contributions to civic, | 12 | | charitable, or service organizations not organized for | 13 | | profit; religious corporations; and fundraisers benefiting | 14 | | persons in the credit union's service area.
| 15 | | (21) To refuse any transaction if any employee or | 16 | | officer of the credit union, having fulfilled the training | 17 | | requirements of subsection (g-1) of Section 3.5 of the | 18 | | Adult Protective Services Act, reasonably believes that an | 19 | | act of financial exploitation of an eligible adult has | 20 | | occurred or may occur. Neither the credit union nor its | 21 | | employees or officers shall be liable for any actions taken | 22 | | in good faith under this subsection (21). | 23 | | (Source: P.A. 97-133, eff. 1-1-12.)
| 24 | | Section 99. Effective date. This Act takes effect upon | 25 | | becoming law.
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