State of Illinois
90th General Assembly
Legislation

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[ Introduced ][ Engrossed ]

90_HB1655enr

      205 ILCS 5/48.4 new
      205 ILCS 10/3.075 new
      205 ILCS 205/11-5 new
      205 ILCS 205/11012 new
      205 ILCS 620/8-2 new
      205 ILCS 645/20 new
      205 ILCS 650/7 new
      760 ILCS 5/21 new
      760 ILCS 45/8 new
      815 ILCS 205/6            from Ch. 17, par. 6413
          Amends the Illinois Banking Act, the Corporate  Fiduciary
      Act,   the   Interest   Act,  and  other  financial  industry
      regulatory Acts to provide that there shall be  no  liability
      for  acts  or  omissions  done in reliance upon a rule of the
      Commissioner   of   Banks   and   Real   Estate.    Effective
      immediately.
                                                     LRB9004770JSmg
HB1655 Enrolled                                LRB9004770JSmg
 1        AN ACT concerning reliance on the rules and  opinions  of
 2    the  Commissioner  of  Banks  and Real Estate, amending named
 3    Acts.
 4        Be it enacted by the People of  the  State  of  Illinois,
 5    represented in the General Assembly:
 6        Section 5.  The Illinois Banking Act is amended by adding
 7    Section 48.4 as follows:
 8        (205 ILCS 5/48.4 new)
 9        Sec.  48.4.  Reliance  on Commissioner.  No bank or other
10    person shall be liable under this Act for  any  act  done  or
11    omitted   in   good   faith  in  conformity  with  any  rule,
12    interpretation, or opinion  issued  by  the  Commissioner  of
13    Banks  and Real Estate, notwithstanding that after the act or
14    omission has occurred, the rule, opinion,  or  interpretation
15    upon  which  reliance  is  placed  is  amended, rescinded, or
16    determined by judicial or other authority to be  invalid  for
17    any reason.
18        Section  10.  The  Illinois  Bank  Holding Company Act of
19    1957 is amended by adding Section 3.075 as follows:
20        (205 ILCS 10/3.075 new)
21        Sec. 3.075.  Reliance on Commissioner.  No  bank  holding
22    company  or  other  person shall be liable under this Act for
23    any act done or omitted in good faith in conformity with  any
24    rule,  interpretation,  or opinion issued by the Commissioner
25    of Banks and Real Estate, notwithstanding that after the  act
26    or   omission   has   occurred,   the   rule,   opinion,   or
27    interpretation  upon  which  reliance  is  placed is amended,
28    rescinded, or determined by judicial or other authority to be
29    invalid for any reason.
HB1655 Enrolled             -2-                LRB9004770JSmg
 1        Section 15.  The Illinois Savings and Loan Act of 1985 is
 2    amended by adding Section 11-5 as follows:
 3        (205 ILCS 205/11-5 new)
 4        Sec. 11-5.  Reliance on Commissioner.  No association  or
 5    other  person shall be liable under this Act for any act done
 6    or omitted  in  good  faith  in  conformity  with  any  rule,
 7    interpretation,  or  opinion  issued  by  the Commissioner of
 8    Banks and Real Estate, notwithstanding that after the act  or
 9    omission  has  occurred, the rule, opinion, or interpretation
10    upon which reliance  is  placed  is  amended,  rescinded,  or
11    determined  by  judicial or other authority to be invalid for
12    any reason.
13        Section 20.  The Savings Bank Act is  amended  by  adding
14    Section 11012 as follows:
15        (205 ILCS 205/11012 new)
16        Sec.  11012.  Reliance  on Commissioner.  No savings bank
17    or other person shall be liable under this Act  for  any  act
18    done  or  omitted  in good faith in conformity with any rule,
19    interpretation, or opinion  issued  by  the  Commissioner  of
20    Banks  and Real Estate, notwithstanding that after the act or
21    omission has occurred, the rule, opinion,  or  interpretation
22    upon  which  reliance  is  placed  is  amended, rescinded, or
23    determined by judicial or other authority to be  invalid  for
24    any reason.
25        Section  25.  The  Corporate  Fiduciary Act is amended by
26    adding Section 8-2 as follows:
27        (205 ILCS 620/8-2 new)
28        Sec.  8-2.  Reliance  on  Commissioner.    No   corporate
29    fiduciary  or other person shall be liable under this Act for
HB1655 Enrolled             -3-                LRB9004770JSmg
 1    any act done or omitted in good faith in conformity with  any
 2    rule,  interpretation,  or opinion issued by the Commissioner
 3    of Banks and Real Estate, notwithstanding that after the  act
 4    or   omission   has   occurred,   the   rule,   opinion,   or
 5    interpretation  upon  which  reliance  is  placed is amended,
 6    rescinded, or determined by judicial or other authority to be
 7    invalid for any reason.
 8        Section 30.  The Foreign Banking Office Act is amended by
 9    adding Section 20 as follows:
10        (205 ILCS 645/20 new)
11        Sec. 20.  Reliance on Commissioner.  No  foreign  banking
12    corporation  or  other  person shall be liable under this Act
13    for any act done or omitted in good faith in conformity  with
14    any   rule,   interpretation,   or   opinion  issued  by  the
15    Commissioner of Banks and Real Estate,  notwithstanding  that
16    after the act or omission has occurred, the rule, opinion, or
17    interpretation  upon  which  reliance  is  placed is amended,
18    rescinded, or determined by judicial or other authority to be
19    invalid for any reason.
20        Section 35.  The Foreign Bank Representative  Office  Act
21    is amended by adding Section 7 as follows:
22        (205 ILCS 650/7 new)
23        Sec.  7.  Reliance  on  Commissioner.  No foreign bank or
24    other person shall be liable under this Act for any act  done
25    or  omitted  in  good  faith  in  conformity  with  any rule,
26    interpretation, or opinion  issued  by  the  Commissioner  of
27    Banks  and Real Estate, notwithstanding that after the act or
28    omission has occurred, the rule, opinion,  or  interpretation
29    upon  which  reliance  is  placed  is  amended, rescinded, or
30    determined by judicial or other authority to be  invalid  for
HB1655 Enrolled             -4-                LRB9004770JSmg
 1    any reason.
 2        Section  40.  The  Trust  and  Trustees Act is amended by
 3    adding Section 21 as follows:
 4        (760 ILCS 5/21 new)
 5        Sec. 21.  Reliance on  Commissioner  of  Banks  and  Real
 6    Estate.   No  trustee  or  other person shall be liable under
 7    this Act for any  act  done  or  omitted  in  good  faith  in
 8    conformity  with  any rule, interpretation, or opinion issued
 9    by the Commissioner of Banks and Real Estate, notwithstanding
10    that after the  act  or  omission  has  occurred,  the  rule,
11    opinion,  or  interpretation upon which reliance is placed is
12    amended,  rescinded,  or  determined  by  judicial  or  other
13    authority to be invalid for any reason.
14        Section 45.  The Common Trust  Fund  Act  is  amended  by
15    adding Section 8 as follows:
16        (760 ILCS 45/8 new)
17        Sec.  8.  Reliance  on  Commissioner  of  Banks  and Real
18    Estate. No fiduciary or other person shall  be  liable  under
19    this  Act  for  any  act  done  or  omitted  in good faith in
20    conformity with any rule, interpretation, or  opinion  issued
21    by the Commissioner of Banks and Real Estate, notwithstanding
22    that  after  the  act  or  omission  has  occurred, the rule,
23    opinion, or interpretation upon which reliance is  placed  is
24    amended,  rescinded,  or  determined  by  judicial  or  other
25    authority to be invalid for any reason.
26        Section  50.  The  Interest  Act  is  amended by changing
27    Section 6 as follows:
28        (815 ILCS 205/6) (from Ch. 17, par. 6413)
HB1655 Enrolled             -5-                LRB9004770JSmg
 1        Sec. 6. If any person or corporation knowingly  contracts
 2    for  or  receives,  directly  or  indirectly,  by any device,
 3    subterfuge or other means,  unlawful  interest,  discount  or
 4    charges  for  or  in  connection  with any loan of money, the
 5    obligor may, recover by means of  an  action  or  defense  an
 6    amount equal to twice the total of all interest, discount and
 7    charges  determined  by  the  loan  contract  or  paid by the
 8    obligor,  whichever  is   greater,   plus   such   reasonable
 9    attorney's fees and court costs as may be assessed by a court
10    against  the  lender.  The  payments  due  and  to become due
11    including all interest, discount and charges included therein
12    under the terms of the loan contract, shall be reduced by the
13    amount  which  the  obligor  is  thus  entitled  to  recover.
14    Recovery by means of a defense may be had at any  time  after
15    the loan is transacted. Recovery by means of an action may be
16    had at any time after the loan is transacted and prior to the
17    expiration  of  2  years after the earlier of (1) the date of
18    the last scheduled payment of the loan after giving effect to
19    all renewals or extensions thereof, if any, or (2)  the  date
20    on  which  the  total  amount due under the terms of the loan
21    contract is fully paid. A bona fide error in connection  with
22    a  loan  shall  not  be a violation under this section if the
23    lender corrects the error within a reasonable time.
24        No person shall be liable under this Act for provision of
25    this Section imposing any liability shall apply  to  any  act
26    done or omitted in good faith in conformity with any rule, or
27    regulation,  or  interpretation, or opinion issued thereof by
28    the Commissioner of Banks and Real Estate or  the  Department
29    of  Financial  Institutions or any other department or agency
30    of the State, notwithstanding that after such act or omission
31    has occurred, such rule, regulation,  or  interpretation,  or
32    opinion  is  amended, rescinded, or determined by judicial or
33    other authority to be invalid for any reason.
34    (Source: P.A. 86-1222.)
HB1655 Enrolled             -6-                LRB9004770JSmg
 1        Section 55.  The provisions of  this  amendatory  Act  of
 2    1997  and  the changes made to existing statutory law by this
 3    amendatory Act of 1997 are severable under  Section  1.31  of
 4    the Statute on Statutes.
 5        Section  99.  Effective date.  This Act takes effect upon
 6    becoming law.

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