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90_SB0646
205 ILCS 205/1007.115 new
205 ILCS 205/1008 from Ch. 17, par. 7301-8
205 ILCS 205/8012 from Ch. 17, par. 7308-12
Amends the Savings Bank Act. Provides that a federally
chartered savings and loan association or savings bank
required by federal law convert to a national bank or a state
chartered institution may become a State savings bank under
an expedited process. Effective immediately.
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1 AN ACT to amend the Savings Bank Act by changing Sections
2 1008 and 8012 and adding Section 1007.115.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Savings Bank Act is amended by changing
6 Sections 1008 and 8012 and adding Section 1007.115 as
7 follows:
8 (205 ILCS 205/1007.115 new)
9 Sec. 1007.115. Federal association. "Federal
10 association" means a savings and loan association or savings
11 bank incorporated under the federal Home Owners Loan Act of
12 1993, as now or hereafter amended, whose principal business
13 office is located within this State.
14 (205 ILCS 205/1008) (from Ch. 17, par. 7301-8)
15 Sec. 1008. General corporate powers.
16 (a) A savings bank operating under this Act shall be a
17 body corporate and politic and shall have all of the specific
18 powers conferred by this Act and in addition thereto, the
19 following general powers:
20 (1) To sue and be sued, complain, and defend in its
21 corporate name and to have a common seal, which it may
22 alter or renew at pleasure.
23 (2) To obtain and maintain insurance by a deposit
24 insurance corporation as defined in this Act.
25 (3) To act as a fiscal agent for the United States,
26 the State of Illinois or any department, branch, arm, or
27 agency of the State or any unit of local government or
28 school district in the State, when duly designated for
29 that purpose, and as agent to perform reasonable
30 functions as may be required of it.
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1 (4) To become a member of or deal with any
2 corporation or agency of the United States or the State
3 of Illinois, to the extent that the agency assists in
4 furthering or facilitating its purposes or powers and to
5 that end to purchase stock or securities thereof or
6 deposit money therewith, and to comply with any other
7 conditions of membership or credit.
8 (5) To make donations in reasonable amounts for the
9 public welfare or for charitable, scientific, religious,
10 or educational purposes.
11 (6) To adopt and operate reasonable insurance,
12 bonus, profit sharing, and retirement plans for officers
13 and employees and for directors including, but not
14 limited to, advisory, honorary, and emeritus directors,
15 who are not officers or employees.
16 (7) To reject any application for membership; to
17 retire deposit accounts by enforced retirement as
18 provided in this Act and the bylaws; and to limit the
19 issuance of, or payments on, deposit accounts, subject,
20 however, to contractual obligations.
21 (8) To purchase stock in service corporations and
22 to invest in any form of indebtedness of any service
23 corporation as defined in this Act, subject to
24 regulations of the Commissioner.
25 (9) To purchase stock of a corporation whose
26 principal purpose is to operate a safe deposit company or
27 escrow service company.
28 (10) To exercise all the powers necessary to
29 qualify as a trustee or custodian under federal or State
30 law, provided that the authority to accept and execute
31 trusts is subject to the provisions of the Corporate
32 Fiduciary Act and to the supervision of those activities
33 by the Commissioner of Banks and Real Estate.
34 (11) (Blank).
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1 (12) To establish, maintain, and operate terminals
2 as authorized by the Electronic Fund Transfer Act. The
3 establishment, maintenance, operation, and location of
4 those terminals shall be subject to the approval of the
5 Commissioner.
6 (13) Pledge its assets:
7 (A) to enable it to act as agent for the sale
8 of obligations of the United States;
9 (B) to secure deposits;
10 (C) to secure deposits of money whenever
11 required by the National Bankruptcy Act;
12 (D) to qualify under Section 2-9 of the
13 Corporate Fiduciary Act; and
14 (E) to secure trust funds commingled with the
15 savings bank's funds, whether deposited by the
16 savings bank or an affiliate of the savings bank, as
17 required under Section 2-8 of the Corporate
18 Fiduciary Act.
19 (14) To accept for payment at a future date not to
20 exceed one year from the date of acceptance, drafts drawn
21 upon it by its customers; and to issue, advise, or
22 confirm letters of credit authorizing holders thereof to
23 draw drafts upon it or its correspondents.
24 (15) Subject to the regulations of the
25 Commissioner, to own and lease personal property acquired
26 by the savings bank at the request of a prospective
27 lessee and, upon the agreement of that person, to lease
28 the personal property.
29 (16) To establish temporary service booths at any
30 International Fair in this State that is approved by the
31 United States Department of Commerce for the duration of
32 the international fair for the purpose of providing a
33 convenient place for foreign trade customers to exchange
34 their home countries' currency into United States
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1 currency or the converse. To provide temporary periodic
2 service to persons residing in a bona fide nursing home,
3 senior citizens' retirement home, or long-term care
4 facility. These powers shall not be construed as
5 establishing a new place or change of location for the
6 savings bank providing the service booth.
7 (17) To indemnify its officers, directors,
8 employees, and agents, as authorized for corporations
9 under Section 8.75 of the Business Corporations Act of
10 1983.
11 (18) To provide data processing services to others
12 on a for-profit basis.
13 (19) To utilize any electronic technology to
14 provide customers with home banking services.
15 (20) Subject to the regulations of the
16 Commissioner, to enter into an agreement to act as a
17 surety.
18 (21) Subject to the regulations of the
19 Commissioner, to issue credit cards, extend credit
20 therewith, and otherwise engage in or participate in
21 credit card operations.
22 (22) To purchase for its own account shares of
23 stock of a bankers' bank, described in Section 13(b)(1)
24 of the Illinois Banking Act, on the same terms and
25 conditions as a bank may purchase such shares. In no
26 event shall the total amount of such stock held by a
27 savings bank an association in such bankers' bank exceed
28 10% of its capital and surplus (including undivided
29 profits) and in no event shall a savings bank an
30 association acquire more than 5% of any class of voting
31 securities of such bankers' bank.
32 (23) To become a member of the Federal Home Loan
33 Bank Board and to have the powers granted to a savings
34 association organized under the Illinois Savings and Loan
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1 Act of 1985 or the laws of the United States, subject to
2 regulations of the Commissioner.
3 (b) If this Act fails to provide specific guidance in
4 matters of corporate governance, the provisions of the
5 Business Corporation Act of 1983 may be used.
6 (Source: P.A. 88-112; 88-481; 88-670, eff. 12-2-94; 89-74,
7 eff. 6-30-95; 89-310, eff. 1-1-96; 89-317, eff. 8-11-95;
8 89-355, eff. 8-17-95; 89-508, eff. 7-3-96; 89-603, eff.
9 8-2-96; 89-626, eff. 8-9-96; revised 9-9-96.)
10 (205 ILCS 205/8012) (from Ch. 17, par. 7308-12)
11 Sec. 8012. Conversion of an existing depository
12 institution to a savings bank.
13 (a) Except as provided in subsection (b), an existing
14 depository institution may become an Illinois savings bank
15 by:
16 (1) Applying to the Commissioner of Banks and Real
17 Estate for an Illinois savings bank charter.
18 (2) Obtaining insurance of accounts from a deposit
19 insurance corporation.
20 (3) Complying with the provisions of this Act and
21 the rules and regulations of the Commissioner, except
22 that any requirements of publication, notice, and public
23 hearing are hereby waived.
24 (4) Paying all outstanding bills for supervisory
25 fees, examination fees, membership fees, other fees,
26 penalties, and assessments associated with its original
27 charter.
28 (5) Recording a savings bank charter in the county
29 of its company headquarters.
30 (6) Giving notice to its original chartering
31 authority and surrendering its charter to its chartering
32 authority upon approval of the Commissioner.
33 (b) A federal association required by a law of the
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1 United States to convert to a national bank or to a
2 depository institution chartered under the laws of the State
3 of Illinois that elects to become a savings bank may apply
4 for an expedited process under this subsection. Upon filing
5 with the Commissioner a certified copy of the conversion
6 registration statement filed with the appropriate federal
7 regulatory agency and a certificate issued by that federal
8 regulatory agency showing that the federal association has
9 complied with the provisions of federal law, the Commissioner
10 shall issue a savings bank charter to the converting federal
11 association, provided the converting federal association:
12 (i) furnishes evidence of insurance of accounts
13 from a deposit insurance corporation;
14 (ii) complies with the provisions of this Act and
15 the rules of the Commissioner, except that any
16 requirements of publication notice and public hearing are
17 waived; and
18 (iii) records the savings bank charter in the
19 county of its principal place of business.
20 (c) A federal savings association that converts to a
21 savings bank under subsection (b) of this Section shall not
22 be required to pay any application fees in connection with
23 the conversion.
24 (Source: P.A. 89-508, eff. 7-3-96.)
25 Section 99. Effective date. This Act takes effect upon
26 becoming law.