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90_HB1689
205 ILCS 105/4-6 from Ch. 17, par. 3304-6
Amends the Illinois Savings and Loan Act of 1985.
Deletes provisions exempting a savings and loan institution
from garnishment proceedings concerning capital accounts.
Effective immediately.
LRB9002680LDkb
LRB9002680LDkb
1 AN ACT to amend the Illinois Savings and Loan Act of 1985
2 by changing Section 4-6.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Illinois Savings and Loan Act of 1985 is
6 amended by changing Section 4-6 as follows:
7 (205 ILCS 105/4-6) (from Ch. 17, par. 3304-6)
8 Sec. 4-6. Issuance, delivery and transfer of
9 certificates and account books. (a) Every capital account
10 shall be evidenced by one or more appropriate certificates or
11 account book; and either such certificates or an account
12 book, or both, shall be delivered to the holder of such
13 account. The wording, type and form of the certificates and
14 account books issued by an association shall be subject to
15 the approval of the Commissioner.
16 (b) The holder of a withdrawable capital account may
17 transfer his rights therein absolutely or conditionally to
18 any other person eligible to hold the same by written
19 assignment accompanied by delivery of the appropriate
20 certificate or account book; but notwithstanding the
21 effectiveness of such a transfer between the parties thereto,
22 the association may treat the holder of record as the owner
23 of the account for payment, voting and all other purposes
24 until such assignment and any accompanying certificate or
25 account book have been received by the association with a
26 request for the transfer on the association's records.
27 (c) Withdrawable capital certificates, account books and
28 any other evidences of membership shall be nonnegotiable and
29 not subject to Article 8 of the Uniform Commercial Code, as
30 amended concerning Investment Securities. Permanent reserve
31 share certificates shall be subject to the provisions of
-2- LRB9002680LDkb
1 Article 8 of the Uniform Commercial Code, as amended,
2 concerning Investment Securities.
3 (d) All withdrawable capital certificates and account
4 books, delivered to the holders as prescribed by this
5 Article, shall be subject to attachment and execution as
6 provided by the laws of this State., and the association
7 shall not be subject to garnishment proceedings concerning
8 any capital account, except with respect to a certificate or
9 account book in the association's possession, and when
10 (1) Neither a certificate nor an account book has been
11 delivered to the holder as required by this Section, or
12 (2) The certificate and account book (or either of them
13 if only one has been delivered) have been returned to the
14 association's possession.
15 (e) If the holder of a withdrawable capital account, or
16 the personal representative of any such person, shall file
17 with the association an affidavit to the effect that his
18 account book or certificate has been lost or destroyed, and
19 that such account book or certificate has not been pledged or
20 assigned either in whole or in part, then such association
21 may issue a substitute account book or certificate in the
22 name of such holder, with a statement therein that such
23 account book or certificate is issued in lieu of the one lost
24 or destroyed. The association shall not be liable thereafter
25 with respect to the original account book or certificate; but
26 the board of directors may require a bond in sufficient
27 amount to indemnify the association against any loss which
28 might result from the issuance of such substitute account
29 book or certificate.
30 (Source: P.A. 84-543.)
31 Section 99. Effective date. This Act takes effect upon
32 becoming law.