(205 ILCS 205/5009) (from Ch. 17, par. 7305-9)
Sec. 5009.
Loans or discounts on capital stock.
A savings bank may not make a loan or discount on the security of
or be the purchaser or holder of the shares of its own capital
stock or preferred stock or on the security of its own debentures
or evidences of its debt that are convertible to capital stock or
are junior or subordinate in rights of payment to deposit or other
liabilities of the savings bank, unless the security or purchase
shall be necessary to prevent loss on a debt previously contracted
in good faith; and the stock or evidence of indebtedness acquired
or purchased shall, within 6 months from the time of its
acquisition, be sold or disposed of at public or private sale.
(Source: P.A. 86-1213.)
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