(205 ILCS 620/6-2)
(from Ch. 17, par. 1556-2)
Control by Commissioner.
(a) If the Commissioner with respect to a
corporate fiduciary shall find:
(1) Its capital is impaired or it is otherwise in an
(2) Its business is being conducted in an unlawful
manner, including, without limitation, in violation of any provisions of this Act or of an order of the Commissioner, or in a fraudulent or unsafe manner; or
(3) It is unable to continue operations; or
(4) Its examination has been obstructed or impeded;
the Commissioner may give notice to the board of directors of the corporate fiduciary of his finding or findings. If the situation so found by the Commissioner shall not be corrected to his satisfaction within 60 days after receipt of such notice, the Commissioner at the termination of said 60 days may take possession and control of the corporate fiduciary, its assets, and assets held for beneficiaries of its fiduciary obligations, as in this Act provided for the purpose of examination, reorganization or liquidation through receivership.
(b) If, in addition to a finding as provided in subsection
(a) of this Section, the Commissioner shall be of the opinion and
shall find that an emergency exists which may result in serious
losses to the beneficiaries of fiduciary relationships with the
corporate fiduciary, he may, in his discretion, without having
given the notice provided for in subsection (a) of this Section,
and whether or not proceedings under subsection (a) of this
Section have been instituted or are then pending, forthwith take
possession and control of the corporate fiduciary and its assets
for the purpose of examination, reorganization or liquidation
(Source: P.A. 92-483, eff. 8-23-01.)
(205 ILCS 620/6-10)
(from Ch. 17, par. 1556-10)
The receiver for a corporate fiduciary, under
the direction of the Commissioner, shall have the power and
authority and is charged with the duties and responsibilities as
(1) To take possession of, and for the purpose of the
receivership, the title to the books, records and assets of every description of the corporate fiduciary.
(2) To proceed to collect all debts, dues and claims
belonging to the corporate fiduciary.
(3) To file with the Commissioner a copy of each
report which he makes to the court, together with such other reports and records as the Commissioner may require.
(4) The receiver shall have authority to sue and
defend in the receiver's own name and with respect to the affairs, assets, claims, debts and choses in action of the corporate fiduciary.
(5) The receiver shall have authority, and it shall
be the receiver's duty, to surrender to the customers of such corporate fiduciary, when requested in writing directed to the receiver by such customers, the assets, private papers and valuables left with the corporate fiduciary for safekeeping, under a custodial or agency agreement, upon satisfactory proof of ownership.
(6) As soon as can reasonably be done, the receiver
shall resign on behalf of the corporate fiduciary, all trusteeships, guardianships, and all appointments as executor and administrator, or as custodian under the Illinois Uniform Transfers to Minors Act, as now or hereafter amended, or as fiduciary under custodial or agency agreements or under the terms of any other written agreement or court order whereunder the corporate fiduciary is holding property in a fiduciary capacity for the benefit of another person, making in each case, from the records and documents available to the receiver, a proper accounting, in the manner and scope as determined by the Commissioner to be practical and advisable under the circumstances, on behalf of the corporate fiduciary. The receiver, prior to resigning, shall cause a successor trustee or fiduciary to be appointed pursuant to the terms set forth in the governing instrument or pursuant to the provisions of the Illinois Trust Code, as now or hereafter amended, if applicable, then the receiver shall make application to the court having jurisdiction over the liquidation or winding up of the corporate fiduciary, for the appointment of a successor. The receiver, if a corporate fiduciary, shall not be disqualified from acting as successor trustee or fiduciary if appointed under the terms of the governing instrument, by court order or by the customer of the corporate fiduciary whose affairs are being liquidated or wound up and, in such case, no guardian ad litem need be appointed to review the accounting of the receiver unless the beneficiaries or customers of the corporate fiduciary so request in writing.
(7) The receiver shall have authority to redeem or
take down collateral hypothecated by the corporate fiduciary to secure its notes and other evidence of indebtedness whenever the Commissioner deems it to be in the best interest of the creditors of the corporate fiduciary and directs the receiver so to do.
(8) Whenever the receiver shall find it necessary in
the receiver's opinion to use and employ money of the corporate fiduciary, in order to protect fully and benefit the corporate fiduciary, by the purchase or redemption of any property, real or personal, in which the corporate fiduciary may have any rights by reason of any bond, mortgage, assignment, or other claim thereto, the receiver may certify the facts together with the receiver's opinions as to the value of the property involved, and the value of the equity the corporate fiduciary may have in the property to the Commissioner, together with a request for the right and authority to use and employ so much of the money of the corporate fiduciary as may be necessary to purchase the property, or to redeem the same from a sale if there was a sale, and if such request is granted, the receiver may use so much of the money of the corporate fiduciary as the Commissioner may have authorized to purchase said property at such sale.
(9) The receiver shall deposit daily all monies
collected by the receiver in any State or national bank selected by the Commissioner, who may require (and the bank so selected may furnish) of such depository satisfactory securities or satisfactory surety bond for the safekeeping and prompt payment of the money so deposited. The deposits shall be made in the name of the Commissioner in trust for the receiver and be subject to withdrawal upon the receiver's order or upon the order of such persons as the Commissioner may designate. Such monies may be deposited without interest, unless otherwise agreed. However, if any interest was paid by such depository, it shall accrue to the benefit of the particular trust or fiduciary account to which the deposit belongs. Except as otherwise directed by the Commissioner, notwithstanding any other provision of this paragraph, the receiver's investment and other powers shall be those under the governing instrument or under the Illinois Trust Code, and shall include the power to pay out income and principal in accordance with the terms of the governing instrument.
(10) The receiver shall do such things and take such
steps from time to time under the direction and approval of the Commissioner as may reasonably appear to be necessary to conserve the corporate fiduciary's assets and secure the best interests of the creditors of the corporate fiduciary.
(11) The receiver shall record any judgment of
dissolution entered in a dissolution proceeding and thereupon turn over to the Commissioner a certified copy thereof, together with all books of accounts and ledgers of such corporate fiduciary for preservation, as distinguished from the books of accounts and ledgers of the corporate fiduciary relating to the assets of the beneficiaries of such fiduciary relations, all of which books of accounts and ledgers shall be turned over by the receiver to the successor trustee or fiduciary.
(12) The receiver may cause all assets of the
beneficiaries of such fiduciary relations to be registered in the name of the receiver or in the name of the receiver's nominee.
(13) The receiver shall have a reasonable period of
time in which to review all of the trust accounts, executorships, administrationships, guardianships, or other fiduciary relationships, in order to ascertain that the investments by the corporate fiduciary of the assets of such trust accounts, executorships, administrationships, guardianships, or other fiduciary relationships comply with the terms of the governing instrument, the prudent person rule governing the investment of such funds, or any other law regulating the investment of such funds.
(14) For its services in administering the trusts and
other fiduciary accounts of the corporate fiduciary during the period of winding up the affairs of the corporate fiduciary, the receiver shall be entitled to be reimbursed for all costs and expenses incurred by the receiver and shall also be entitled to receive out of the assets of the individual fiduciary accounts being administered by the receiver during the period of winding up the affairs of the corporate fiduciary and prior to the appointment of a successor trustee or fiduciary, the usual and customary fees charged by the receiver in the administration of its own fiduciary accounts or reasonable fees approved by the Commissioner.
(15) The receiver, during its administration of the
trusts and other fiduciary accounts of the corporate fiduciary during the winding up of the affairs of the corporate fiduciary, shall have all of the powers which are vested in trustees under the terms and provisions of the Illinois Trust Code.
(16) Upon the appointment of a successor trustee or
fiduciary, the receiver shall deliver to such successor trustee or fiduciary all of the assets belonging to the individual trust or fiduciary account as to which the successor trustee or fiduciary succeeds, and the receiver shall thereupon be relieved of any further duties or obligations with respect thereto.
(Source: P.A. 101-48, eff. 1-1-20; 101-81, eff. 7-12-19
(205 ILCS 620/6-11)
(from Ch. 17, par. 1556-11)
Upon the order of the court wherein the
Commissioner's complaint for the dissolution or winding up of the
affairs of the corporate fiduciary was filed, the receiver for
the corporate fiduciary shall have the power and authority and is
charged with the duties and responsibilities as follows:
(1) The receiver may sell and compound all bad and doubtful
debts on such terms as the court shall direct.
(2) The receiver may sell the real and personal property of
the corporate fiduciary, as distinguished from the real and personal
property of the beneficiaries of such fiduciary relations, on such terms
as the court shall direct.
(3) The receiver may petition the court for the authority to
borrow money, and to pledge the assets of the corporate fiduciary
as security therefor, whereupon the practice and procedure shall
be as follows:
(a) Upon the filing of such petition the court shall
set a date for the hearing of such petition and shall prescribe
the form and manner of the notice to be given to the officers,
stockholders, creditors and other persons interested in such
(b) Upon such hearing, any officer, stockholder,
creditor or person interested shall have the right to be heard.
(c) If the court grants such authority, then the
receiver may borrow money and issue evidences of indebtedness
therefor, and may secure the payment of such loan by the
mortgage, pledge, transfer in trust or hypothecation of any or
all property and assets of such corporate fiduciary, whether
real, personal, or mixed, superior to any charge thereon for the
expenses of liquidation.
(d) Such loan may be obtained in such amounts upon
such terms and conditions, and with provisions for repayment as
may be deemed necessary or expedient.
(e) Such loan may be obtained for the purpose of
facilitating liquidation, protecting or preserving the assets,
expediting the making of distributions to depositors and other
creditors, providing for the expenses of administration and
liquidation, aiding in the reopening or reorganization of such
corporate fiduciary or its merger or consolidation with another
corporate fiduciary, or in the sale of its assets.
(f) The receiver shall be under no personal obligation
to repay any such loan and shall have authority to take any
action necessary or proper to consummate such loan and to provide
for the repayment thereof, and may, when required, give bond for
the faithful performance of all undertakings in connection
(g) Prior to petitioning the court for authority to
make any such loan, the receiver may make application for or
negotiate any loan subject to obtaining an order of the court
approving the same.
(4) The receiver may make and carry out agreements with other
corporate fiduciaries, banks, or with the United States or any
agency thereof for the payment or assumption of the corporate
fiduciary's liabilities, in whole or in part, and the receiver may
transfer assets and make guaranties in connection therewith.
(5) After the expiration of 4 weeks after the first
publication of the Commissioner's notice as provided in Section
6-9, the receiver shall file with the court a correct list of all
creditors of the corporate fiduciary, as shown by its books, who
have not presented their claims and the amount of their
respective claims after allowing all just credits, deductions and
set-offs as shown by the books of the corporate fiduciary. Such
claims so filed shall be deemed proven, unless objections are
filed thereto by a party or parties interested therein within
such time as is fixed by the court.
(6) At the termination of the receiver's
administration, the receiver shall petition the court for the entry of a judgment of
dissolution. After a hearing upon such notice as the court may
prescribe, the court may enter a judgment of dissolution
whereupon the corporate fiduciary's corporate existence shall be terminated
and the receivership concluded.
(Source: P.A. 86-754.)