Full Text of HB4780 093rd General Assembly
HB4780 93RD GENERAL ASSEMBLY
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93RD GENERAL ASSEMBLY
State of Illinois
2003 and 2004 HB4780
Introduced 02/04/04, by Ralph C. Capparelli, Joseph M. Lyons, John E. Bradley SYNOPSIS AS INTRODUCED: |
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205 ILCS 5/21.2 rep. |
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205 ILCS 10/3.071 |
from Ch. 17, par. 2510.01 |
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Amends the Illinois Banking Act and the Illinois Bank Holding Company Act. Eliminates provisions prohibiting an out of state bank or a national bank whose main banking premises is located outside Illinois from acquiring or merging with an Illinois bank that has existed and continually operated as a bank for 5 years or less. Effective immediately.
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A BILL FOR
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HB4780 |
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LRB093 15947 SAS 41570 b |
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| AN ACT concerning financial regulation.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| (205 ILCS 5/21.2 rep.)
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| Section 5. The Illinois Banking Act is amended by repealing | 6 |
| Section 21.2. | 7 |
| Section 10. The Illinois Bank Holding Company Act of 1957 | 8 |
| is amended by changing Section 3.071 as follows:
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| (205 ILCS 10/3.071) (from Ch. 17, par. 2510.01)
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| Sec. 3.071. Out of state bank holding companies.
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| (a) An out of state bank holding company may acquire | 12 |
| ownership of more
than 5% of the voting shares of or control of | 13 |
| one or more Illinois banks or
Illinois bank holding companies | 14 |
| pursuant to a transaction, occurrence or
event that is | 15 |
| described in paragraphs (1) through (5) of subsection (a) of
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| Section 3.02, provided the acquisition is made in accordance | 17 |
| with Sections 3.02
and 3.07 of this Act in accordance with | 18 |
| subsection (i) of this Section and
provided the following | 19 |
| conditions
are met:
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| (1) (Blank).
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| (2) An out of state bank holding company seeking to | 22 |
| acquire an
Illinois bank or Illinois bank holding company | 23 |
| pursuant to subsection (a)
of Section 3.071 shall, if | 24 |
| change in control of the bank is governed by
Section 18 of | 25 |
| the Illinois Banking Act, file with the Commissioner the | 26 |
| application required by that Section containing
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| information satisfactory to the Commissioner.
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| (b) (Blank).
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| (c) (Blank).
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| (d) (Blank).
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HB4780 |
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LRB093 15947 SAS 41570 b |
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| (e) (Blank).
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| (f) (Blank).
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| (g) (Blank).
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| (h) (Blank).
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| (i) (Blank). ( 1) An out of state bank holding company which | 6 |
| directly or indirectly
controls or has control over an | 7 |
| Illinois bank that has existed and continuously
operated as | 8 |
| a bank for 5 years or less, may not cause the Illinois bank | 9 |
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merge with or into, or to have all or substantially all | 10 |
| of the assets acquired
by a bank that is an out of state | 11 |
| bank .
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| (2) For purposes of subsection (i)(1) of this Section, | 13 |
| an Illinois bank
that is the resulting bank following a | 14 |
| merger involving an Illinois interim
bank shall be | 15 |
| considered to have been in existence and continuously | 16 |
| operated
during the existence and continuous operation of | 17 |
| the Illinois merged bank. As
used in this subsection | 18 |
| (i)(2), the words
"resulting bank" and "merged bank" shall | 19 |
| have the meanings ascribed to those
words in Section 2 of | 20 |
| the Illinois Banking Act. As used in this subsection
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| (i)(2), the words "interim bank" shall mean a bank which | 22 |
| shall not accept
deposits, make loans, pay checks, or | 23 |
| engage in the general business of banking
or any part | 24 |
| thereof, and is chartered solely for the purpose of merging | 25 |
| with or
acquiring control of, or acquiring all or | 26 |
| substantially all of the assets of an
existing Illinois | 27 |
| bank.
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| (3) The provisions of subsection (i)(1) of this Section | 29 |
| shall not apply to
the merger or acquisition of all or | 30 |
| substantially all of the assets of an
Illinois bank:
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| (i) if the merger or acquisition is part of a | 32 |
| purchase or acquisition
with respect to which the | 33 |
| Federal Deposit Insurance Corporation provides
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| assistance under Section 13(c) of the Federal Deposit | 35 |
| Insurance Act; or
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| (ii) if the Illinois bank is in default or in |
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HB4780 |
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LRB093 15947 SAS 41570 b |
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| danger of default. As
used in this subsection | 2 |
| (i)(3)(ii), the words "in default"
and "in danger of | 3 |
| default" shall have the meaning ascribed to those words | 4 |
| in
Section 2 of the Illinois Banking Act.
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| (Source: P.A. 89-208, eff. 9-29-95; 89-567, eff. 7-26-96; | 6 |
| 90-226, eff.
7-25-97; 90-655, eff. 7-30-98.)
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| Section 99. Effective date. This Act takes effect upon | 8 |
| becoming law.
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