(205 ILCS 5/35.1) (from Ch. 17, par. 344)
Sec. 35.1.
Lease limitations.
In exercise of the power conferred by paragraph (14) of Section 5 of
this Act to own and lease personal property, a state bank shall be subject
to the following limitations and restrictions in addition to those
contained in that paragraph:
(a) The unamortized investment of the bank in |
| personal property subject to any lease or series of leases which is or are the responsibility of a person shall not, when added to any liability of such person for money borrowed, exceed 25% of the unimpaired capital and unimpaired surplus of the bank. The term "unamortized investment" means the total cost of such property to the bank less so much of the payments theretofore received by the bank from the lessee and other sources, which under generally accepted principles of accounting are applicable to amortization of the investment.
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(b) The amount of unamortized investment of the bank
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| in personal property subject to a lease or leases which are the responsibility of a person shall for the purpose of computing the total permitted amount of liability of such person to the bank for money borrowed or otherwise under Section 32 of this Act be treated as the liability of such person.
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(c) No such lease or related agreement shall obligate
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| the bank to maintain, repair or service the personal property, or unconditionally obligate the bank to restore or replace the same, or in effect unconditionally place on the bank the risk of such restoration or replacement, in the event of loss, theft or destruction of or damage to such property from any cause other than a wilful act of the bank.
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The limitations and restrictions set forth in paragraphs (a), (b) and
(c) above shall apply and be complied with even though such owning and
leasing is carried on by the bank, in whole or in part, through the medium
of a subsidiary as permitted by paragraph (12) of Section 5 of this Act.
In the event a state bank acquires by purchase or discount a lease, or
the sums due and to become due thereunder, of personal property made by a
lessor other than the bank or such a subsidiary, paragraph (b) of this
Section 35.1 shall also apply to the obligation of the lessee under such
lease.
(Source: P.A. 92-573, eff. 6-26-02.)
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