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|[ Introduced ]||[ Engrossed ]||[ Senate Amendment 001 ]|
|[ Senate Amendment 002 ]|
90_SB1528enr 205 ILCS 5/16.1 from Ch. 17, par. 323.1 Amends the Illinois Banking Act. Adds a caption to a Section concerning the removal of bank directors. LRB9009866JSmg SB1528 Enrolled LRB9009866JSmg 1 AN ACT concerning financial regulation, amending named 2 Acts. 3 Be it enacted by the People of the State of Illinois, 4 represented in the General Assembly: 5 Section 5. The Illinois Bank Examiners' Education 6 Foundation Act is amended by changing Section 6 as follows: 7 (20 ILCS 3210/6) (from Ch. 17, par. 406) 8 Sec. 6. The Board shall have the power: 9 (1) To promulgate reasonable rules for the purpose of 10 administering the provisions of this Act. 11 (2) To issue orders for the purpose of administering the 12 provisions of this Act and any rule promulgated in accordance 13 with this Act. 14 (3) To require the Commissioner to furnish the Board 15 space for meetings to be held by the Board as well as to 16 require the Commissioner to provide the technical assistance 17 and clerical and professional support as the Board may 18 require. 19 (4) To adopt its own bylaws with respect to board 20 meetings and procedures. The bylaws shall provide that: 21 (A) A majority of the whole Board constitutes a 22 quorum. 23 (B) A majority of the quorum shall constitute 24 effective action except that a vote of a majority of the 25 whole Board shall be necessary for the approval of rules 26 and regulations proposed for adoption by the Commissioner 27 under paragraph (1) of this Section and shall be 28 necessary for recommendations made to the Commissioner 29 with regard to proposed amendments to this Act or to the 30 administrative practices hereunder. 31 (C) The Board shall meet at least once in each SB1528 Enrolled -2- LRB9009866JSmg 1 calendar year and upon the call of the Commissioner or a 2 majority of the Board
quarter. The Commissioner or a 3 majority of the Board may call such special or additional 4 meetings as may be deemed he or they deemnecessary or 5 desirable. 6 (5) To authorize the transfer of funds from the Illinois 7 Bank Examiners' Education Fund to the Bank and Trust Company 8 Fund. Any amount so transferred shall be retransferred to 9 the Illinois Bank Examiners' Education Fund from the Bank and 10 Trust Company Fund within a period not to exceed 3 years. 11 (6) To maintain and direct the investments of the 12 Illinois Bank Examiners' Education Fund as provided in the 13 Illinois Banking Act and to issue an annual report to the 14 Governor, the General Assembly and all State-chartered banks 15 on the activities of the Foundation during the preceding year 16 which shall include, but is not limited to, detailing the 17 monies generated and deposited into the Illinois Bank 18 Examiners' Education Fund by the special education fee, 19 voluntary contributions, and income from investments and the 20 expenditures from the Fund. 21 (Source: P.A. 86-1449; 87-1038.) 22 Section 10. The Illinois Banking Act is amended by 23 changing Sections 5, 9, 10, 13, 21.1, 24, 48, and 48.1 as 24 follows: 25 (205 ILCS 5/5) (from Ch. 17, par. 311) 26 Sec. 5. General corporate powers. A bank organized 27 under this Act or subject hereto shall be a body corporate 28 and politic and shall, without specific mention thereof in 29 the charter, have all the powers conferred by this Act and 30 the following additional general corporate powers: 31 (1) To sue and be sued, complain, and defend in its 32 corporate name. SB1528 Enrolled -3- LRB9009866JSmg 1 (2) To have a corporate seal, which may be altered at 2 pleasure, and to use the same by causing it or a facsimile 3 thereof to be impressed or affixed or in any manner 4 reproduced, provided that the affixing of a corporate seal to 5 an instrument shall not give the instrument additional force 6 or effect, or change the construction thereof, and the use of 7 a corporate seal is not mandatory. 8 (3) To make, alter, amend, and repeal bylaws, not 9 inconsistent with its charter or with law, for the 10 administration of the affairs of the bank. 11 (4) To elect or appoint and remove officers and agents 12 of the bank and define their duties and fix their 13 compensation. 14 (5) To adopt and operate reasonable bonus plans, 15 profit-sharing plans, stock-bonus plans, stock-option plans, 16 pension plans and similar incentive plans for its directors, 17 officers and employees. 18 (5.1) To manage, operate and administer a fund for the 19 investment of funds by a public agency or agencies, including 20 any unit of local government or school district, or any 21 person. The fund for a public agency shall invest in the 22 same type of investments and be subject to the same 23 limitations provided for the investment of public funds. The 24 fund for public agencies shall maintain a separate ledger 25 showing the amount of investment for each public agency in 26 the fund. "Public funds" and "public agency" as used in this 27 Section shall have the meanings ascribed to them in Section 1 28 of the Public Funds Investment Act. 29 (6) To make reasonable donations for the public welfare 30 or for charitable, scientific, religious or educational 31 purposes. 32 (7) To borrow or incur an obligation; and to pledge its 33 assets: 34 (a) to secure its borrowings, its lease of personal SB1528 Enrolled -4- LRB9009866JSmg 1 or real property or its other nondeposit obligations; 2 (b) to enable it to act as agent for the sale of 3 obligations of the United States; 4 (c) to secure deposits of public money of the 5 United States, whenever required by the laws of the 6 United States, including without being limited to, 7 revenues and funds the deposit of which is subject to the 8 control or regulation of the United States or any of its 9 officers, agents, or employees and Postal Savings funds; 10 (d) to secure deposits of public money of any state 11 or of any political corporation or subdivision thereof 12 including, without being limited to, revenues and funds 13 the deposit of which is subject to the control or 14 regulation of any state or of any political corporation 15 or subdivisions thereof or of any of their officers, 16 agents, or employees; 17 (e) to secure deposits of money whenever required 18 by the National Bankruptcy Act; 19 (f) (blank); and 20 (g) to secure trust funds commingled with the 21 bank's funds, whether deposited by the bank or an 22 affiliate of the bank, pursuant to Section 2-8 of the 23 Corporate Fiduciary Act. 24 (8) To own, possess, and carry as assets all or part of 25 the real estate necessary in or with which to do its banking 26 business, either directly or indirectly through the ownership 27 of all or part of the capital stock, shares or interests in 28 any corporation, association, trust engaged in holding any 29 part or parts or all of the bank premises, engaged in such 30 business and in conducting a safe deposit business in the 31 premises or part of them, or engaged in any activity that the 32 bank is permitted to conduct in a subsidiary pursuant to 33 paragraph (12) of this Section 5. 34 (9) To own, possess, and carry as assets other real SB1528 Enrolled -5- LRB9009866JSmg 1 estate to which it may obtain title in the collection of its 2 debts or that was formerly used as a part of the bank 3 premises, but title to any real estate except as herein 4 permitted shall not be retained by the bank, either directly 5 or by or through a subsidiary, as permitted by subsection 6 (12) of this Section for a total period of more than 10 years 7 after acquiring title, either directly or indirectly. 8 (10) To do any act, including the acquisition of stock, 9 necessary to obtain insurance of its deposits, or part 10 thereof, and any act necessary to obtain a guaranty, in whole 11 or in part, of any of its loans or investments by the United 12 States or any agency thereof, and any act necessary to sell 13 or otherwise dispose of any of its loans or investments to 14 the United States or any agency thereof, and to acquire and 15 hold membership in the Federal Reserve System. 16 (11) Notwithstanding any other provisions of this Act or 17 any other law, to do any act and to own, possess, and carry 18 as assets property of the character, including stock, that is 19 at the time authorized or permitted to national banks by an 20 Act of Congress, but subject always to the same limitations 21 and restrictions as are applicable to national banks by the 22 pertinent federal law and subject to applicable provisions of 23 the Financial Institutions Insurance Sales Law. 24 (12) To own, possess, and carry as assets stock of one 25 or more corporations that is, or are, engaged in one or more 26 of the following businesses: 27 (a) holding title to and administering assets 28 acquired as a result of the collection or liquidating of 29 loans, investments, or discounts; or 30 (b) holding title to and administering personal 31 property acquired by the bank, directly or indirectly 32 through a subsidiary, for the purpose of leasing to 33 others, provided the lease or leases and the investment 34 of the bank, directly or through a subsidiary, in that SB1528 Enrolled -6- LRB9009866JSmg 1 personal property otherwise comply with Section 35.1 of 2 this Act; or 3 (c) carrying on or administering any of the 4 activities excepting the receipt of deposits or the 5 payment of checks or other orders for the payment of 6 money in which a bank may engage in carrying on its 7 general banking business; provided, however, that nothing 8 contained in this paragraph (c) shall be deemed to permit 9 a bank organized under this Act or subject hereto to do, 10 either directly or indirectly through any subsidiary, any 11 act, including the making of any loan or investment, or 12 to own, possess, or carry as assets any property that if 13 done by or owned, possessed, or carried by the State bank 14 would be in violation of or prohibited by any provision 15 of this Act. 16 The provisions of this subsection (12) shall not apply to 17 and shall not be deemed to limit the powers of a State bank 18 with respect to the ownership, possession, and carrying of 19 stock that a State bank is permitted to own, possess, or 20 carry under this Act. 21 Any bank intending to establish a subsidiary under this 22 subsection (12) shall give written notice to the Commissioner 23 60 days prior to the subsidiary's commencing of business or, 24 as the case may be, prior to acquiring stock in a corporation 25 that has already commenced business. After receiving the 26 notice, the Commissioner may waive or reduce the balance of 27 the 60 day notice period. The Commissioner may specify the 28 form of the notice and may promulgate rules and regulations 29 to administer this subsection (12). 30 (13) To accept for payment at a future date not 31 exceeding one year from the date of acceptance, drafts drawn 32 upon it by its customers; and to issue, advise, or confirm 33 letters of credit authorizing the holders thereof to draw 34 drafts upon it or its correspondents. SB1528 Enrolled -7- LRB9009866JSmg 1 (14) To own and lease personal property acquired by the 2 bank at the request of a prospective lessee and upon the 3 agreement of that person to lease the personal property 4 provided that the lease, the agreement with respect thereto, 5 and the amount of the investment of the bank in the property 6 comply with Section 35.1 of this Act. 7 (15) (a) To establish and maintain, in addition to the 8 main banking premises, branches offering any banking services 9 permitted at the main banking premises of a State bank. 10 (b) To establish and maintain, after May 31, 1997, 11 branches in another state that may conduct any activity in 12 that state that is authorized or permitted for any bank that 13 has a banking charter issued by that state, subject to the 14 same limitations and restrictions that are applicable to 15 banks chartered by that state. 16 (16) (Blank). 17 (17) To establish and maintain terminals, as authorized 18 by the Electronic Fund Transfer Act. 19 (18) To establish and maintain temporary service booths 20 at any International Fair held in this State which is 21 approved by the United States Department of Commerce, for the 22 duration of the international fair for the sole purpose of 23 providing a convenient place for foreign trade customers at 24 the fair to exchange their home countries' currency into 25 United States currency or the converse. This power shall not 26 be construed as establishing a new place or change of 27 location for the bank providing the service booth. 28 (19) To indemnify its officers, directors, employees, 29 and agents, as authorized for corporations under Section 8.75 30 of the Business Corporation Act of 1983. 31 (20) To own, possess, and carry as assets stock of, or 32 be or become a member of, any corporation, mutual company, 33 association, trust, or other entity formed exclusively for 34 the purpose of providing directors' and officers' liability SB1528 Enrolled -8- LRB9009866JSmg 1 and bankers' blanket bond insurance or reinsurance to and for 2 the benefit of the stockholders, members, or beneficiaries, 3 or their assets or businesses, or their officers, directors, 4 employees, or agents, and not to or for the benefit of any 5 other person or entity or the public generally. 6 (21) To make debt or equity investments in corporations 7 or projects, whether for profit or not for profit, designed 8 to promote the development of the community and its welfare, 9 provided that the aggregate investment in all of these 10 corporations and in all of these projects does not exceed 10% 11 of the unimpaired capital and unimpaired surplus of the bank 12 and provided that this limitation shall not apply to 13 creditworthy loans by the bank to those corporations or 14 projects. Upon written application to the Commissioner, a 15 bank may make an investment that would, when aggregated with 16 all other such investments, exceed 10% of the unimpaired 17 capital and unimpaired surplus of the bank. The Commissioner 18 may approve the investment if he is of the opinion and finds 19 that the proposed investment will not have a material adverse 20 effect on the safety and soundness of the bank. 21 (22) To own, possess, and carry as assets the stock of a 22 corporation engaged in the ownership or operation of a travel 23 agency or to operate a travel agency as a part of its 24 business, provided that the bank either owned, possessed, and 25 carried as assets the stock of such a corporation or operated 26 a travel agency as part of its business before July 1, 1991. 27 (23) With respect to affiliate facilities: 28 (a) to conduct at affiliate facilities any of the 29 following transactions for and on behalf of another 30 commonly owned bank, if so authorized by the other bank: 31 receiving deposits; cashing and issuing checks, drafts, 32 and money orders; changing money; and receiving payments 33 on existing indebtedness; and 34 (b) to authorize a commonly owned bank to conduct SB1528 Enrolled -9- LRB9009866JSmg 1 for and on behalf of it any of the transactions listed in 2 this paragraph (23) at one or more affiliate facilities. 3 Any bank intending to conduct or to authorize a commonly 4 owned bank to conduct at an affiliate facility any of the 5 transactions specified in this paragraph (23) shall give 6 written notice to the Commissioner at least 30 days before 7 any such transaction is conducted at the affiliate facility. 8 (24) To act as the agent for any fire, life, or other 9 insurance company authorized by the State of Illinois, by 10 soliciting and selling insurance and collecting premiums on 11 policies issued by such company; and to mayreceive for 12 services so rendered such fees or commissions as may be 13 agreed upon between the saidbank and the insurance company 14 for which it may act as agent; provided, however, that no 15 such bank shall in any case assume or guarantee the payment 16 of any premium on insurance policies issued through its 17 agency by its principal; and provided further, that the bank 18 shall not guarantee the truth of any statement made by an 19 assured in filing his application for insurance. 20 (25) Notwithstanding any other provisions of this Act or 21 any other law, to offer any product or service that is at the 22 time authorized or permitted to any insured savings 23 association by applicable law, provided that powers conferred 24 only by this subsection (25): 25 (a) shall always be subject to the same limitations 26 and restrictions that are applicable to the insured 27 savings association for the product or service by such 28 applicable law; 29 (b) shall be subject to applicable provisions of 30 the Financial Institutions Insurance Sales Law; 31 (c) shall not include the right to own or conduct a 32 real estate brokerage business for which a license would 33 be required under the laws of this State; and 34 (d) shall not be construed to include the SB1528 Enrolled -10- LRB9009866JSmg 1 establishment or maintenance of a branch, nor shall they 2 be construed to limit the establishment or maintenance of 3 a branch pursuant to subsection (11). 4 (Source: P.A. 89-208, eff. 9-29-95; 89-310, eff. 1-1-96; 5 89-364, eff. 8-18-95; 89-626, eff. 8-9-96; 90-41, eff. 6 10-1-97; 90-301, eff. 8-1-97; revised 10-22-97.) 7 (205 ILCS 5/9) (from Ch. 17, par. 316) 8 Sec. 9. Contents of application. The application for a 9 permit to organize shall be in a form specified by the 10 Commissioner and shall be filed with the Commissioner signed 11 by each of the applicants and shall be acknowledged before 12 some officer authorized by law to acknowledge deeds. It shall 13 state: 14 (1) The name, residence, business or occupation and 15 address of each applicant, and a statement of the proposed 16 management; 17 (2) The name for the proposed bank; 18 (3) The location of the proposed bank; 19 (4) The amount of capital and ,surplus and reserve for20 operating expensesfor the proposed bank; 21 (5) The number of shares of capital stock, the number of 22 shares and classes of preferred stock, if any, the par value 23 of the capital stock and preferred stock, and the amount for 24 which each share of capital stock and preferred stock is to 25 be sold; 26 (6) A statement of the financial worth of each of the 27 applicants; 28 (7) (Blank); 29 (8) Such other relevant information as the Commissioner 30 may require. 31 (Source: P.A. 90-301, eff. 8-1-97.) 32 (205 ILCS 5/10) (from Ch. 17, par. 317) SB1528 Enrolled -11- LRB9009866JSmg 1 Sec. 10. Permit to organize. Upon the filing of an 2 application for a permit to organize, the Commissioner shall 3 investigate the truth of the statements therein and shall 4 consider the proposed bank's capital structure, its future 5 earnings prospects, the general character, experience, and 6 qualifications of its proposed management, its proposed plan 7 of operation, and the convenience and needs of the area 8 sought to be served and notwithstanding the provisions of 9 Section 7 of this Act, the Commissioner shall not approve the 10 application and issue a permit to organize unless he shall be 11 of the opinion and finds: 12 (1) That the proposed capital at least meets the minimum 13 requirements of this Act determined by the Commissioner 14 pursuant to Section 7 of this Act including additional 15 capital necessitated by the circumstances of the proposed 16 bank including its size, scope of operations and market in 17 which it proposes to operate; 18 (2) That the future earnings prospects are favorable; 19 (3) That the general character, experience, and 20 qualifications of its proposed management and its proposed 21 plan of operation are issuch as to assure reasonable promise 22 of successful, safe and sound operation; 23 (4) That the name of the proposed bank is not the same 24 as or deceptively similar to the name of any other bank then 25 operating in this State; and 26 (5) That the convenience and needs of the area sought to 27 be served by the proposed bank will be promoted. 28 (Source: P.A. 86-368.) 29 (205 ILCS 5/13) (from Ch. 17, par. 320) 30 Sec. 13. Issuance of charter. 31 (a) When the directors have organized as provided in 32 Section 12 of this Act, and the capital stock and the 33 preferred stock, if any, together with a surplus of not less SB1528 Enrolled -12- LRB9009866JSmg 1 than 50% of the capital, has been all fully paid in and a 2 record of the same filed with the Commissioner, the 3 Commissioner or some competent person of the Commissioner's 4 appointment shall make a thorough examination into the 5 affairs of the proposed bank, and if satisfied (i) that all 6 the requirements of this Act have been complied with, (ii) 7 andthat no intervening circumstance has occurred to change 8 the Commissioner's findings made pursuant to Section 10 of 9 this Act, and (iii) that the prior involvement by any 10 stockholder who will own a sufficient amount of stock to have 11 control, as defined in Section 18 of this Act, of the 12 proposed bank with any other financial institution, whether 13 as stockholder, director, officer, or customer, was conducted 14 in a safe and sound manner, upon payment into the 15 Commissioner's office of the reasonable expenses of the 16 examination, as determined by the Commissioner, the 17 Commissioner shall issue a charter authorizing the bank to 18 commence business as authorized in this Act. All charters 19 issued by the Commissioner or any predecessor agency which 20 chartered State banks, including any charter outstanding as 21 of September 1, 1989, shall be perpetual. For the 2 years 22 after the Commissioner has issued a charter to a bank, the 23 bank shall request and obtain from the Commissioner prior 24 written approval before it may change senior management 25 personnel or directors. 26 The original charter, duly certified by the Commissioner, 27 or a certified copy shall be evidence in all courts and 28 places of the existence and authority of the bank to do 29 business. Upon the issuance of the charter by the 30 Commissioner, the bank shall be deemed fully organized and 31 may proceed to do business. The Commissioner may, in the 32 Commissioner's discretion, withhold the issuing of the 33 charter when the Commissioner has reason to believe that the 34 bank is organized for any purpose other than that SB1528 Enrolled -13- LRB9009866JSmg 1 contemplated by this Act or that a commission or fee has been 2 paid in connection with the sale of the stock of the bank. 3 The Commissioner shall revoke the charter and order 4 liquidation in the event that the bank does not commence a 5 general banking business within one year from the date of the 6 issuance of the charter, unless a request has been submitted, 7 in writing, to the Commissioner for an extension and the 8 request has been approved. After commencing a general 9 banking business, a bank, upon written notice to the 10 Commissioner, may change its name. 11 (b) (1) The Commissioner may also issue a charter to a 12 bank that is owned exclusively by other depository 13 institutions or depository institution holding companies and 14 is organized to engage exclusively in providing services to 15 or for other depository institutions, their holding 16 companies, and the officers, directors, and employees of such 17 institutions and companies, and in providing correspondent 18 banking services at the request of other depository 19 institutions or their holding companies (also referred to as 20 a "bankers' bank"). 21 (2) A bank chartered pursuant to paragraph (1) shall, 22 except as otherwise specifically determined by the 23 Commissioner, be vested with the same rights and privileges 24 and subject to the same duties, restrictions, penalties, and 25 liabilities now or hereafter imposed under this Act. 26 (c) A bank chartered under this Act after November 1, 27 1985, and an out-of-state bank that merges with a State bank 28 and establishes or maintains a branch in this State after May 29 31, 1997, shall obtain from and, at all times while it 30 accepts or retains deposits, maintain with the Federal 31 Deposit Insurance Corporation, or such other instrumentality 32 of or corporation chartered by the United States, deposit 33 insurance as authorized under federal law. 34 (d) (i) A bank that has a banking charter issued by the SB1528 Enrolled -14- LRB9009866JSmg 1 Commissioner under this Act may, pursuant to a written 2 purchase and assumption agreement, transfer substantially all 3 of its assets to another State bank or national bank in 4 consideration, in whole or in part, for the transferee banks' 5 assumption of any part or all of its liabilities. Such a 6 transfer shall in no way be deemed to impair the charter of 7 the transferor bank or cause the transferor bank to forfeit 8 any of its rights, powers, interests, franchises, or 9 privileges as a State bank, nor shall any voluntary reduction 10 in the transferor bank's activities resulting from the 11 transfer have any such effect; provided, however, that a 12 State bank that transfers substantially all of its assets 13 pursuant to this subsection (d) and following the transfer 14 does not accept deposits and make loans, shall not have any 15 rights, powers, interests, franchises, or privileges under 16 subsection (15) of Section 5 of this Act until the bank has 17 resumed accepting deposits and making loans. 18 (ii) The fact that a State bank does not resume 19 accepting deposits and making loans for a period of 24 months 20 commencing on September 11, 1989 or on a date of the transfer 21 of substantially all of a State bank's assets, whichever is 22 later, or such longer period as the Commissioner may allow in 23 writing, may be the basis for a finding by the Commissioner 24 under Section 51 of this Act that the bank is unable to 25 continue operations. 26 (iii) The authority provided by subdivision (i) of this 27 subsection (d) shall terminate on May 31, 1997, and no bank 28 that has transferred substantially all of its assets pursuant 29 to this subsection (d) shall continue in existence after May 30 31, 1997. 31 (Source: P.A. 89-208, eff. 9-29-95; 89-567, eff. 7-26-96; 32 89-603, eff. 8-2-96; 90-14, eff. 7-1-97; 90-301, eff. 33 8-1-97.) SB1528 Enrolled -15- LRB9009866JSmg 1 (205 ILCS 5/21.1) 2 Sec. 21.1. Application for certificate of authority. 3 (a) On or after June 1, 1997, an out-of-state bank may ,4 in order to procure a certificate of authority tomerge with 5 a State bank after executing , shall executeand filing file6 in duplicatenot less than 60 days before the proposed 7 effective date of the merger an application therefor with the 8 Commissioner and after shallalso filing with the 9 Commissioner filea copy of its charter, articles of 10 association or articles of incorporation, and all amendments 11 thereto, duly authenticated by the proper officer of the 12 state wherein it is chartered or incorporated and the last 13 quarterly statement of condition filed by the out-of-state 14 bank with the appropriate federal banking regulator. The 15 Commissioner shall specify the form of the application which 16 shall set forth, to the extent applicable, the same 17 information required in an application by a foreign 18 corporation pursuant to Section 13.15 of the Business 19 Corporation Act of 1983. Subject to Sections 21.2 and 21.3 of 20 this Act, receipt by the Commissioner of a copy of an 21 application filed with and approved by the out-of-state 22 bank's chartering authority authorizing the out-of-state bank 23 to merge with a State bank shall satisfy the filing 24 requirements of this subsection (a). 25 When the provisions of this Section have been complied 26 with, the Commissioner shall issue a certificate of authority 27 to merge. If the merger is not consummated within one year, 28 the Commissioner may cancel the certificate of authority. 29 (b) An out-of-state bank that is the resulting bank in a 30 merger with a State bank may, after the merger, establish and 31 maintain a branch or branches in Illinois at the locations 32 where the State bank had its main office and branches 33 immediately before the merger. 34 (c) An out-of-state bank that establishes and maintains SB1528 Enrolled -16- LRB9009866JSmg 1 a branch or branches in Illinois pursuant to subsection (b) 2 of this Section may, after the merger, establish and maintain 3 additional branches in this State to the same extent as a 4 State bank. 5 (d) A branch of an out-of-state bank may not conduct any 6 activity that is not authorized for a State bank. 7 (e) An out-of-state bank shall provide written notice to 8 the Commissioner of its intent to establish an additional 9 branch or branches in this State within 30 days after 10 approval of the appropriate federal banking agency to 11 establish the branch or branches. The notice form shall be 12 specified by the Commissioner and may include any of the 13 information required for a similar notice by a State bank. 14 Receipt by the Commissioner of notice of the out-of-state 15 bank's intent to establish such additional branch or branches 16 in this State from the out-of-state bank's chartering 17 authority shall satisfy the requirements of this subsection 18 (e). 19 (Source: P.A. 89-208, eff. 9-29-95.) 20 (205 ILCS 5/24) (from Ch. 17, par. 331) 21 Sec. 24. Effective date of merger; filing. The executed 22 merger agreement together with copies of the resolutions of 23 the stockholders of each merging bank or insured savings 24 association approving it, certified by the bank's or insured 25 savings association's president or vice-president or the 26 cashier, shall be filed with the Commissioner. A merger that 27 is to result in a State bank shall, unless a later date is 28 specified in the agreement, become effective when the 29 Commissioner has approved the agreement and issued a 30 certificate of merger to the continuing bank. The charters of 31 the merging banks or insured savings association, other than 32 the continuing bank, shall thereupon automatically terminate. 33 If, after May 31, 1997, the merger will result in an SB1528 Enrolled -17- LRB9009866JSmg 1 out-of-state bank, the charter of a merging State bank shall 2 terminate upon notice to the Commissioner that the merger is 3 effective. The certificate of merger shall specify the name 4 of each merging bank or insured savings association and the 5 name of the continuing bank, and the amendments to the 6 charter of the continuing bank provided for by the merger 7 agreement. The certificate shall be conclusive evidence of 8 the merger and of the correctness of all proceedings therefor 9 in all courts and places , and the certificate shall be10 recorded. 11 (Source: P.A. 89-208, eff. 9-29-95.) 12 (205 ILCS 5/48) (from Ch. 17, par. 359) 13 Sec. 48. Commissioner's powers; duties. The Commissioner 14 shall have the powers and authority, and is charged with the 15 duties and responsibilities designated in this Act, and a 16 State bank shall not be subject to any other visitorial power 17 other than as authorized by this Act, except those vested in 18 the courts, or upon prior consultation with the Commissioner, 19 a foreign bank regulator with an appropriate supervisory 20 interest in the parent or affiliate of a state bank. In the 21 performance of the Commissioner's duties: 22 (1) The Commissioner shall call for statements from all 23 State banks as provided in Section 47 at least one time 24 during each calendar quarter. 25 (2) (a) The Commissioner, as often as the Commissioner 26 shall deem necessary or proper, and no less frequently than 27 18 months following the preceding examination, shall appoint 28 a suitable person or persons to make an examination of the 29 affairs of every State bank, except that for every eligible 30 State bank, as defined by regulation, the Commissioner in 31 lieu of the examination may accept on an alternating basis 32 the examination made by the eligible State bank's appropriate 33 federal banking agency pursuant to Section 111 of the Federal SB1528 Enrolled -18- LRB9009866JSmg 1 Deposit Insurance Corporation Improvement Act of 1991, 2 provided the appropriate federal banking agency has made such 3 an examination. A person so appointed shall not be a 4 stockholder or officer or employee of any bank which that 5 person may be directed to examine, and shall have powers to 6 make a thorough examination into all the affairs of the bank 7 and in so doing to examine any of the officers or agents or 8 employees thereof on oath and shall make a full and detailed 9 report of the condition of the bank to the Commissioner. In 10 making the examination the examiners shall include an 11 examination of the affairs of all the affiliates of the bank, 12 as defined in subsection (b) of Section 35.2 of this Act, as 13 shall be necessary to disclose fully the conditions of the 14 affiliates, the relations between the bank and the affiliates 15 and the effect of those relations upon the affairs of the 16 bank, and in connection therewith shall have power to examine 17 any of the officers, directors, agents, or employees of the 18 affiliates on oath. After May 31, 1997, the Commissioner may 19 enter into cooperative agreements with state regulatory 20 authorities of other states to provide for examination of 21 State bank branches in those states, and the Commissioner may 22 accept reports of examinations of State bank branches from 23 those state regulatory authorities. These cooperative 24 agreements may set forth the manner in which the other state 25 regulatory authorities may be compensated for examinations 26 prepared for and submitted to the Commissioner. 27 (b) After May 31, 1997, the Commissioner is authorized 28 to examine, as often as the Commissioner shall deem necessary 29 or proper, branches of out-of-state banks. The Commissioner 30 may establish and may assess fees to be paid to the 31 Commissioner for examinations under this subsection (b). The 32 fees shall be borne by the out-of-state bank, unless the fees 33 are borne by the state regulatory authority that chartered 34 the out-of-state bank, as determined by a cooperative SB1528 Enrolled -19- LRB9009866JSmg 1 agreement between the Commissioner and the state regulatory 2 authority that chartered the out-of-state bank. 3 (2.5) Whenever any State bank, any subsidiary or 4 affiliate of a State bank, or after May 31, 1997, any branch 5 of an out-of-state bank causes to be performed, by contract 6 or otherwise, any bank services for itself, whether on or off 7 its premises: 8 (a) that performance shall be subject to 9 examination by the Commissioner to the same extent as if 10 services were being performed by the bank or, after May 11 31, 1997, branch of the out-of-state bank itself on its 12 own premises; and 13 (b) the bank or, after May 31, 1997, branch of the 14 out-of-state bank shall notify the Commissioner of the 15 existence of a service relationship. The notification 16 shall be submitted with the first statement of condition 17 (as required by Section 47 of this Act) due after the 18 making of the service contract or the performance of the 19 service, whichever occurs first. The Commissioner shall 20 be notified of each subsequent contract in the same 21 manner. 22 For purposes of this subsection (2.5), the term "bank 23 services" means services such as sorting and posting of 24 checks and deposits, computation and posting of interest and 25 other credits and charges, preparation and mailing of checks, 26 statements, notices, and similar items, or any other 27 clerical, bookkeeping, accounting, statistical, or similar 28 functions performed for a State bank, including but not 29 limited to electronic data processing related to those bank 30 services. 31 (3) The expense of administering this Act, including the 32 expense of the examinations of State banks as provided in 33 this Act, shall to the extent of the amounts resulting from 34 the fees provided for in paragraphs (a), (a-2), and (b) of SB1528 Enrolled -20- LRB9009866JSmg 1 this subsection (3) be assessed against and borne by the 2 State banks: 3 (a) Each bank shall pay to the Commissioner a Call 4 Report Fee which shall be paid in quarterly installments 5 equal to one-fourth of the sum of the annual fixed fee of 6 $800, plus a variable fee based on the assets shown on 7 the quarterly statement of condition delivered to the 8 Commissioner in accordance with Section 47 for the 9 preceding quarter according to the following schedule: 10 16¢ per $1,000 of the first $5,000,000 of total assets, 11 15¢ per $1,000 of the next $20,000,000 of total assets, 12 13¢ per $1,000 of the next $75,000,000 of total assets, 13 9¢ per $1,000 of the next $400,000,000 of total assets, 14 7¢ per $1,000 of the next $500,000,000 of total assets, 15 and 5¢ per $1,000 of all assets in excess of 16 $1,000,000,000, of the State bank. The Call Report Fee 17 shall be calculated by the Commissioner and billed to the 18 banks for remittance at the time of the quarterly 19 statements of condition provided for in Section 47. The 20 Commissioner may require payment of the fees provided in 21 this Section by an electronic transfer of funds or an 22 automatic debit of an account of each of the State banks. 23 In case more than one examination of any bank is deemed 24 by the Commissioner to be necessary in any examination 25 frequency cycle specified in subsection 2(a) of this 26 Section, and is performed at his direction, the 27 Commissioner may assess a reasonable additional fee to 28 recover the cost of the additional examination. In lieu 29 of the method and amounts set forth in this paragraph (a) 30 for the calculation of the Call Report Fee, the 31 Commissioner may specify by rule that the Call Report 32 Fees provided by this Section may be assessed 33 semiannually or some other period and may provide in the 34 rule the formula to be used for calculating and assessing SB1528 Enrolled -21- LRB9009866JSmg 1 the periodic Call Report Fees to be paid by State banks. 2 (a-1) If in the opinion of the Commissioner an 3 emergency exists or appears likely, the Commissioner may 4 assign an examiner or examiners to monitor the affairs of 5 a State bank with whatever frequency he deems 6 appropriate, including but not limited to a daily basis. 7 The reasonable and necessary expenses of the Commissioner 8 during the period of the monitoring shall be borne by the 9 subject bank. The Commissioner shall furnish the State 10 bank a statement of time and expenses if requested to do 11 so within 30 days of the conclusion of the monitoring 12 period. 13 (a-2) On and after January 1, 1990, the reasonable 14 and necessary expenses of the Commissioner during 15 examination of the performance of electronic data 16 processing services under subsection (2.5) shall be borne 17 by the banks for which the services are provided. An 18 amount, based upon a fee structure prescribed by the 19 Commissioner, shall be paid by the banks or, after May 20 31, 1997, branches of out-of-state banks receiving the 21 electronic data processing services along with the Call 22 Report Fee assessed under paragraph (a) of this 23 subsection (3). 24 (a-3) After May 31, 1997, the reasonable and 25 necessary expenses of the Commissioner during examination 26 of the performance of electronic data processing services 27 under subsection (2.5) at or on behalf of branches of 28 out-of-state banks shall be borne by the out-of-state 29 banks, unless those expenses are borne by the state 30 regulatory authorities that chartered the out-of-state 31 banks, as determined by cooperative agreements between 32 the Commissioner and the state regulatory authorities 33 that chartered the out-of-state banks. 34 (b) "Fiscal year" for purposes of this Section 48 SB1528 Enrolled -22- LRB9009866JSmg 1 is defined as a period beginning July 1 of any year and 2 ending June 30 of the next year. The Commissioner shall 3 receive for each fiscal year, commencing with the fiscal 4 year ending June 30, 1987, a contingent fee equal to the 5 lesser of the aggregate of the fees paid by all State 6 banks under paragraph (a) of subsection (3) for that 7 year, or the amount, if any, whereby the aggregate of the 8 administration expenses, as defined in paragraph (c), for 9 that fiscal year exceeds the sum of the aggregate of the 10 fees payable by all State banks for that year under 11 paragraph (a) of subsection (3), plus all other amounts 12 collected by the Commissioner for that year under any 13 other provision of this Act, plus the aggregate of all 14 fees collected for that year by the Commissioner under 15 the Corporate Fiduciary Act, excluding the receivership 16 fees provided for in Section 5-10 of the Corporate 17 Fiduciary Act, and the Foreign Banking Office Act. The 18 aggregate amount of the contingent fee thus arrived at 19 for any fiscal year shall be apportioned amongst, 20 assessed upon, and paid by the State banks and foreign 21 banking corporations, respectively, in the same 22 proportion that the fee of each under paragraph (a) of 23 subsection (3), respectively, for that year bears to the 24 aggregate for that year of the fees collected under 25 paragraph (a) of subsection (3). The aggregate amount of 26 the contingent fee, and the portion thereof to be 27 assessed upon each State bank and foreign banking 28 corporation, respectively, shall be determined by the 29 Commissioner and shall be paid by each, respectively, 30 within 120 days of the close of the period for which the 31 contingent fee is computed and is payable, and the 32 Commissioner shall give 20 days advance notice of the 33 amount of the contingent fee payable by the State bank 34 and of the date fixed by the Commissioner for payment of SB1528 Enrolled -23- LRB9009866JSmg 1 the fee. 2 (c) The "administration expenses" for any fiscal 3 year shall mean the ordinary and contingent expenses for 4 that year incident to making the examinations provided 5 for by, and for otherwise administering, this Act, the 6 Corporate Fiduciary Act, excluding the expenses paid from 7 the Corporate Fiduciary Receivership account in the Bank 8 and Trust Company Fund, the Foreign Banking Office Act, 9 the Electronic Fund Transfer Act, and the Illinois Bank 10 Examiners' Education Foundation Act, including all 11 salaries and other compensation paid for personal 12 services rendered for the State by officers or employees 13 of the State, including the Commissioner and the Deputy 14 Commissioners, all expenditures for telephone and 15 telegraph charges, postage and postal charges, office 16 stationery, supplies and services, and office furniture 17 and equipment, including typewriters and copying and 18 duplicating machines and filing equipment, surety bond 19 premiums, and travel expenses of those officers and 20 employees, employees, expenditures or charges for the 21 acquisition, enlargement or improvement of, or for the 22 use of, any office space, building, or structure, or 23 expenditures for the maintenance thereof or for 24 furnishing heat, light, or power with respect thereto, 25 all to the extent that those expenditures are directly 26 incidental to such examinations or administration. The 27 Commissioner shall not be required by paragraphs (c) or 28 (d-1) of this subsection (3) to maintain in any fiscal 29 year's budget appropriated reserves for accrued vacation 30 and accrued sick leave that is required to be paid to 31 employees of the Commissioner upon termination of their 32 service with the Commissioner in an amount that is more 33 than is reasonably anticipated to be necessary for any 34 anticipated turnover in employees, whether due to normal SB1528 Enrolled -24- LRB9009866JSmg 1 attrition or due to layoffs, terminations, or 2 resignations. 3 (d) The aggregate of all fees collected by the 4 Commissioner under this Act, the Corporate Fiduciary Act, 5 or the Foreign Banking Office Act on and after July 1, 6 1979, shall be paid promptly after receipt of the same, 7 accompanied by a detailed statement thereof, into the 8 State treasury and shall be set apart in a special fund 9 to be known as the "Bank and Trust Company Fund", except 10 as provided in paragraph (c) of subsection (11) of this 11 Section. The amount from time to time deposited into the 12 Bank and Trust Company Fund shall be used to offset the 13 ordinary administrative expenses of the Commissioner of 14 Banks and Real Estate as defined in this Section. Nothing 15 in this amendatory Act of 1979 shall prevent continuing 16 the practice of paying expenses involving salaries, 17 retirement, social security, and State-paid insurance 18 premiums of State officers by appropriations from the 19 General Revenue Fund. However, the General Revenue Fund 20 shall be reimbursed for those payments made on and after 21 July 1, 1979, by an annual transfer of funds from the 22 Bank and Trust Company Fund. 23 (d-1) Adequate funds shall be available in the Bank 24 and Trust Company Fund to permit the timely payment of 25 administration expenses. In each fiscal year the total 26 administration expenses shall be deducted from the total 27 fees collected by the Commissioner and the remainder 28 transferred into the Cash Flow Reserve Account, unless 29 the balance of the Cash Flow Reserve Account prior to the 30 transfer equals or exceeds one-fourth of the total 31 initial appropriations from the Bank and Trust Company 32 Fund for the subsequent year, in which case the remainder 33 shall be credited to State banks and foreign banking 34 corporations and applied against their fees for the SB1528 Enrolled -25- LRB9009866JSmg 1 subsequent year. The amount credited to each State bank 2 and foreign banking corporation shall be in the same 3 proportion as the Call Report Fees paid by each for the 4 year bear to the total Call Report Fees collected for the 5 year. If, after a transfer to the Cash Flow Reserve 6 Account is made or if no remainder is available for 7 transfer, the balance of the Cash Flow Reserve Account is 8 less than one-fourth of the total initial appropriations 9 for the subsequent year and the amount transferred is 10 less than 5% of the total Call Report Fees for the year, 11 additional amounts needed to make the transfer equal to 12 5% of the total Call Report Fees for the year shall be 13 apportioned amongst, assessed upon, and paid by the State 14 banks and foreign banking corporations in the same 15 proportion that the Call Report Fees of each, 16 respectively, for the year bear to the total Call Report 17 Fees collected for the year. The additional amounts 18 assessed shall be transferred into the Cash Flow Reserve 19 Account. For purposes of this paragraph (d-1), the 20 calculation of the fees collected by the Commissioner 21 shall exclude the receivership fees provided for in 22 Section 5-10 of the Corporate Fiduciary Act. 23 (e) The Commissioner may upon request certify to 24 any public record in his keeping and shall have authority 25 to levy a reasonable charge for issuing certifications of 26 any public record in his keeping. 27 (f) In addition to fees authorized elsewhere in 28 this Act, the Commissioner may, in connection with a 29 review, approval, or provision of a service, levy a 30 reasonable charge to recover the cost of the review, 31 approval, or service. 32 (4) Nothing contained in this Act shall be construed to 33 limit the obligation relative to examinations and reports of 34 any State bank, deposits in which are to any extent insured SB1528 Enrolled -26- LRB9009866JSmg 1 by the United States or any agency thereof, nor to limit in 2 any way the powers of the Commissioner with reference to 3 examinations and reports of that bank. 4 (5) The nature and condition of the assets in or 5 investment of any bonus, pension, or profit sharing plan for 6 officers or employees of every State bank or, after May 31, 7 1997, branch of an out-of-state bank shall be deemed to be 8 included in the affairs of that State bank or branch of an 9 out-of-state bank subject to examination by the Commissioner 10 under the provisions of subsection (2) of this Section, and 11 if the Commissioner shall find from an examination that the 12 condition of or operation of the investments or assets of the 13 plan is unlawful, fraudulent, or unsafe, or that any trustee 14 has abused his trust, the Commissioner shall, if the 15 situation so found by the Commissioner shall not be corrected 16 to his satisfaction within 60 days after the Commissioner has 17 given notice to the board of directors of the State bank or 18 out-of-state bank of his findings, report the facts to the 19 Attorney General who shall thereupon institute proceedings 20 against the State bank or out-of-state bank, the board of 21 directors thereof, or the trustees under such plan as the 22 nature of the case may require. 23 (6) The Commissioner shall have the power: 24 (a) To promulgate reasonable rules for the purpose 25 of administering the provisions of this Act. 26 (b) To issue orders for the purpose of 27 administering the provisions of this Act and any rule 28 promulgated in accordance with this Act. 29 (c) To appoint hearing officers to execute any of 30 the powers granted to the Commissioner under this Section 31 for the purpose of administering this Act and any rule 32 promulgated in accordance with this Act. 33 (d) To subpoena witnesses, to compel their 34 attendance, to administer an oath, to examine any person SB1528 Enrolled -27- LRB9009866JSmg 1 under oath, and to require the production of any relevant 2 books, papers, accounts, and documents in the course of 3 and pursuant to any investigation being conducted, or any 4 action being taken, by the Commissioner in respect of any 5 matter relating to the duties imposed upon, or the powers 6 vested in, the Commissioner under the provisions of this 7 Act or any rule promulgated in accordance with this Act. 8 (e) To conduct hearings. 9 (7) Whenever, in the opinion of the Commissioner, any 10 director, officer, employee, or agent of a State bank or, 11 after May 31, 1997, of any branch of an out-of-state bank 12 shall have violated any law, rule, or order relating to that 13 bank or shall have engaged in an unsafe or unsound practice 14 in conducting the business of that bank or shall have 15 violated any law or engaged or participated in any unsafe or 16 unsound practice in connection with any financial institution 17 or other business entity such that the character and fitness 18 of the director, officer, employee, or agent does not assure 19 reasonable promise of safe and sound operation of the State 20 bank, the Commissioner may issue an order of removal. If, in 21 the opinion of the Commissioner, any former director, 22 officer, employee, or agent of a State bank, prior to the 23 termination of his or her service with that bank, violated 24 any law, rule, or order relating to that State bank or 25 engaged in an unsafe or unsound practice in conducting the 26 business of that bank or violated any law or engaged or 27 participated in any unsafe or unsound practice in connection 28 with any financial institution or other business entity such 29 that the character and fitness of the director, officer, 30 employee, or agent would not have assured reasonable promise 31 of safe and sound operation of the State bank prior to the32 termination of his or her service with that bank, the 33 Commissioner may issue an order prohibiting that person from 34 further service with a bank as a director, officer, employee, SB1528 Enrolled -28- LRB9009866JSmg 1 or agent. An order issued pursuant to this subsection shall 2 be served upon the director, officer, employee, or agent. A 3 copy of the order shall be sent to each director of the bank 4 affected by registered mail. The person affected by the 5 action may request a hearing before the State Banking Board 6 within 10 days after receipt of the order of removal. The 7 hearing shall be held by the Board within 30 days after the 8 request has been received by the Board. The Board shall make 9 a determination approving, modifying, or disapproving the 10 order of the Commissioner as its final administrative 11 decision. If a hearing is held by the Board, the Board shall 12 make its determination within 60 days from the conclusion of 13 the hearing. Any person affected by a decision of the Board 14 under this subsection (7) of Section 48 of this Act may have 15 the decision reviewed only under and in accordance with the 16 Administrative Review Law and the rules adopted pursuant 17 thereto. A copy of the order shall also be served upon the 18 bank of which he is a director, officer, employee, or agent, 19 whereupon he shall cease to be a director, officer, employee, 20 or agent of that bank. The Commissioner may institute a 21 civil action against the director, officer, or agent of the 22 State bank or, after May 31, 1997, of the branch of the 23 out-of-state bank against whom any order provided for by this 24 subsection (7) of this Section 48 has been issued, and 25 against the State bank or, after May 31, 1997, out-of-state 26 bank, to enforce compliance with or to enjoin any violation 27 of the terms of the order. Any person who has been the 28 subject of an order of removal or an order of prohibition 29 issued by the Commissioner under this subsection or Section 30 5-6 of the Corporate Fiduciary Act may not thereafter serve 31 as director, officer, employee, or agent of any State bank or 32 of any branch of any out-of-state bank, or of any corporate 33 fiduciary, as defined in Section 1-5.05 of the Corporate 34 Fiduciary Act, or of any other entity that is subject to SB1528 Enrolled -29- LRB9009866JSmg 1 licensure or regulation by the Commissioner or the Office of 2 Banks and Real Estate unless the Commissioner has granted 3 prior approval in writing. 4 (8) The Commissioner may impose civil penalties of up to 5 $10,000 against any person for each violation of any 6 provision of this Act, any rule promulgated in accordance 7 with this Act, any order of the Commissioner, or any other 8 action which in the Commissioner's discretion is an unsafe or 9 unsound banking practice. 10 (9) The Commissioner may impose civil penalties of up to 11 $100 against any person for the first failure to comply with 12 reporting requirements set forth in the report of examination 13 of the bank and up to $200 for the second and subsequent 14 failures to comply with those reporting requirements. 15 (10) All final administrative decisions of the 16 Commissioner hereunder shall be subject to judicial review 17 pursuant to the provisions of the Administrative Review Law. 18 For matters involving administrative review, venue shall be 19 in either Sangamon County or Cook County. 20 (11) The endowment fund for the Illinois Bank Examiners' 21 Education Foundation shall be administered as follows: 22 (a) (Blank). 23 (b) The Foundation is empowered to receive 24 voluntary contributions, gifts, grants, bequests, and 25 donations on behalf of the Illinois Bank Examiners' 26 Education Foundation from national banks and other 27 persons for the purpose of funding the endowment of the 28 Illinois Bank Examiners' Education Foundation. 29 (c) The aggregate of all special educational fees 30 collected by the Commissioner and property received by 31 the Commissioner on behalf of the Illinois Bank 32 Examiners' Education Foundation under this subsection 33 (11) on or after June 30, 1986, shall be either (i) 34 promptly paid after receipt of the same, accompanied by a SB1528 Enrolled -30- LRB9009866JSmg 1 detailed statement thereof, into the State Treasury and 2 shall be set apart in a special fund to be known as "The 3 Illinois Bank Examiners' Education Fund" to be invested 4 by either the Treasurer of the State of Illinois in the 5 Public Treasurers' Investment Pool or in any other 6 investment he is authorized to make or by the Illinois 7 State Board of Investment as the board of trustees of the 8 Illinois Bank Examiners' Education Foundation may direct 9 or (ii) deposited into an account maintained in a 10 commercial bank or corporate fiduciary in the name of the 11 Illinois Bank Examiners' Education Foundation pursuant to 12 the order and direction of the Board of Trustees of the 13 Illinois Bank Examiners' Education Foundation. 14 (12) (Blank). 15 (Source: P.A. 89-208, eff. 9-29-95; 89-317, eff. 8-11-95; 16 89-508, eff. 7-3-96; 89-567, eff. 7-26-96; 89-626, eff. 17 8-9-96; 90-14, eff. 7-1-97; 90-301, eff. 8-1-97.) 18 (205 ILCS 5/48.1) (from Ch. 17, par. 360) 19 Sec. 48.1. Customer financial records; confidentiality. 20 (a) For the purpose of this Section, the term "financial 21 records" means any original, any copy, or any summary of (1) 22 a document granting signature authority over a deposit or 23 account, (2) a statement, ledger card or other record on any 24 deposit or account, which shows each transaction in or with 25 respect to that account, (3) a check, draft or money order 26 drawn on a bank or issued and payable by a bank, or (4) any 27 other item containing information pertaining to any 28 relationship established in the ordinary course of a bank's 29 business between a bank and its customer. 30 (b) This Section does not prohibit: 31 (1) The preparation, examination, handling or 32 maintenance of any financial records by any officer, 33 employee or agent of a bank having custody of the SB1528 Enrolled -31- LRB9009866JSmg 1 records, or the examination of the records by a certified 2 public accountant engaged by the bank to perform an 3 independent audit. 4 (2) The examination of any financial records by, or 5 the furnishing of financial records by a bank to, any 6 officer, employee or agent of (i) the Commissioner of 7 Banks and Real Estate, (ii) after May 31, 1997, a state 8 regulatory authority authorized to examine a branch of a 9 State bank located in another state, (iii) the 10 Comptroller of the Currency, (iv) the Federal Reserve 11 Board, or (v) the Federal Deposit Insurance Corporation 12 for use solely in the exercise of his duties as an 13 officer, employee, or agent. 14 (3) The publication of data furnished from 15 financial records relating to customers where the data 16 cannot be identified to any particular customer or 17 account. 18 (4) The making of reports or returns required under 19 Chapter 61 of the Internal Revenue Code of 1986. 20 (5) Furnishing information concerning the dishonor 21 of any negotiable instrument permitted to be disclosed 22 under the Uniform Commercial Code. 23 (6) The exchange in the regular course of business 24 of credit information between a bank and other banks or 25 financial institutions or commercial enterprises, 26 directly or through a consumer reporting agency. 27 (7) The furnishing of information to the 28 appropriate law enforcement authorities where the bank 29 reasonably believes it has been the victim of a crime. 30 (8) The furnishing of information under the Uniform 31 Disposition of Unclaimed Property Act. 32 (9) The furnishing of information under the 33 Illinois Income Tax Act and the Illinois Estate and 34 Generation-Skipping Transfer Tax Act. SB1528 Enrolled -32- LRB9009866JSmg 1 (10) The furnishing of information under the 2 federal Currency and Foreign Transactions Reporting Act 3 Title 31, United States Code, Section 1051 et seq. 4 (11) The furnishing of information under any other 5 statute that by its terms or by regulations promulgated 6 thereunder requires the disclosure of financial records 7 other than by subpoena, summons, warrant, or court order. 8 (12) The furnishing of information about the 9 existence of an account of a person to a judgment 10 creditor of that person who has made a written request 11 for that information. 12 (13) The exchange in the regular course of business 13 of information between commonly owned banks in connection 14 with a transaction authorized under paragraph (23) of 15 Section 5 and conducted at an affiliate facility. 16 (14) The furnishing of information in accordance 17 with the federal Personal Responsibility and Work 18 Opportunity Reconciliation Act of 1996. Any bank governed 19 by this Act shall enter into an agreement for data 20 exchanges with a State agency provided the State agency 21 pays to the bank a reasonable fee not to exceed its 22 actual cost incurred. A bank providing information in 23 accordance with this item shall not be liable to any 24 account holder or other person for any disclosure of 25 information to a State agency, for encumbering or 26 surrendering any assets held by the bank in response to a 27 lien or order to withhold and deliver issued by a State 28 agency, or for any other action taken pursuant to this 29 item, including individual or mechanical errors, provided 30 the action does not constitute gross negligence or 31 willful misconduct. A bank shall have no obligation to 32 hold, encumber, or surrender assets until it has been 33 served with a subpoena, summons, warrant, court or 34 administrative order, lien, or levy. SB1528 Enrolled -33- LRB9009866JSmg 1 (15) The exchange in the regular course of business 2 of information between a bank and any commonly owned 3 affiliate of the bank, subject to the provisions of the 4 Financial Institutions Insurance Sales Law. 5 (c) A bank may not disclose to any person, except to the 6 customer or his duly authorized agent, any financial records 7 relating to that customer of that bank unless: 8 (1) the customer has authorized disclosure to the 9 person; 10 (2) the financial records are disclosed in response 11 to a lawful subpoena, summons, warrant or court order 12 which meets the requirements of subsection (d) of this 13 Section; or 14 (3) the bank is attempting to collect an obligation 15 owed to the bank and the bank complies with the 16 provisions of Section 2I of the Consumer Fraud and 17 Deceptive Business Practices Act. 18 (d) A bank shall disclose financial records under 19 paragraph (2) of subsection (c) of this Section under a 20 lawful subpoena, summons, warrant, or court order only after 21 the bank mails a copy of the subpoena, summons, warrant, or 22 court order to the person establishing the relationship with 23 the bank, if living, and, otherwise his personal 24 representative, if known, at his last known address by first 25 class mail, postage prepaid, unless the bank is specifically 26 prohibited from notifying the person by order of court or by 27 applicable State or federal law. A bank shall not mail a 28 copy of a subpoena to any person pursuant to this subsection 29 if the subpoena was issued by a grand jury under the 30 Statewide Grand Jury Act. 31 (e) Any officer or employee of a bank who knowingly and 32 willfully furnishes financial records in violation of this 33 Section is guilty of a business offense and, upon conviction, 34 shall be fined not more than $1,000. SB1528 Enrolled -34- LRB9009866JSmg 1 (f) Any person who knowingly and willfully induces or 2 attempts to induce any officer or employee of a bank to 3 disclose financial records in violation of this Section is 4 guilty of a business offense and, upon conviction, shall be 5 fined not more than $1,000. 6 (g) A bank shall be reimbursed for costs that are 7 reasonably necessary and that have been directly incurred in 8 searching for, reproducing, or transporting books, papers, 9 records, or other data of a customer required or requested to 10 be produced pursuant to a lawful subpoena, summons, warrant, 11 or court order. The Commissioner shall determine the rates 12 and conditions under which payment may be made. 13 (Source: P.A. 89-208, eff. 9-29-95; 89-364, eff. 8-18-95; 14 89-508, eff. 7-3-96; 89-626, eff. 8-9-96; 90-18, eff. 15 7-1-97.) 16 Section 15. The Savings Bank Act is amended by changing 17 Sections 1006, 1008, 6001, 6003, and 6013 as follows: 18 (205 ILCS 205/1006) (from Ch. 17, par. 7301-6) 19 Sec. 1006. Parity. 20 (a) Subject to the regulation of the Commissioner and in 21 addition to the powers granted by this Act, each savings 22 bank operating under this Act shall possess those powers 23 granted by regulation promulgated under the Federal Deposit 24 Insurance Act for state savings banks. 25 (b) A savings bank may establish branches or offices at 26 which savings or investments are regularly received or loans 27 approved as follows: 28 (1) to the extent branch powers and offices are 29 granted to State banks under the Illinois Banking Act; 30 (2) within the geographic area defined in Article 2 31 of this Act and subject to the provisions of Article 2 of 32 this Act; SB1528 Enrolled -35- LRB9009866JSmg 1 (3) within the same geographic areas or states as 2 those states from which a holding company is permitted to 3 acquire an Illinois savings bank or an Illinois savings 4 bank holding company; 5 (4) to the same extent that holding companies and 6 savings and loan associations headquartered outside the 7 State of Illinois are allowed to operate in Illinois by 8 virtue of Articles 1A and 2B of the Illinois Savings and 9 Loan Act of 1985; 10 (5) as the result of mergers, consolidations, or 11 bulk sales of facilities in the case of relocations. 12 (c) The Commissioner may adopt regulations that provide 13 for the establishment of branches as defined by the 14 Commissioner. 15 (d) Notwithstanding any other provision of this Act, a 16 savings bank that purchases or assumes all or any part of the 17 assets or liabilities of a bank, savings bank, or savings and 18 loan association or merges or consolidates with a bank, 19 savings bank, or savings and loan association may retain and 20 maintain the main premises or branches of the former bank, 21 savings bank, or savings and loan association as branches of 22 the purchasing, merging, or consolidating savings bank, 23 provided it assumes the deposit liabilities of the bank, 24 savings bank, or savings and loan association maintained at 25 the main premises or branches. 26 (e) A savings bank has any power reasonably incident, 27 convenient, or useful to the accomplishment of the express28 powers conferred upon the savings bank by this Act. 29 (Source: P.A. 89-74, eff. 6-30-95; 90-301, eff. 8-1-97.) 30 (205 ILCS 205/1008) (from Ch. 17, par. 7301-8) 31 Sec. 1008. General corporate powers. 32 (a) A savings bank operating under this Act shall be a 33 body corporate and politic and shall have all of the specific SB1528 Enrolled -36- LRB9009866JSmg 1 powers conferred by this Act and in addition thereto, the 2 following general powers: 3 (1) To sue and be sued, complain, and defend in its 4 corporate name and to have a common seal, which it may 5 alter or renew at pleasure. 6 (2) To obtain and maintain insurance by a deposit 7 insurance corporation as defined in this Act. 8 (3) To act as a fiscal agent for the United States, 9 the State of Illinois or any department, branch, arm, or 10 agency of the State or any unit of local government or 11 school district in the State, when duly designated for 12 that purpose, and as agent to perform reasonable 13 functions as may be required of it. 14 (4) To become a member of or deal with any 15 corporation or agency of the United States or the State 16 of Illinois, to the extent that the agency assists in 17 furthering or facilitating its purposes or powers and to 18 that end to purchase stock or securities thereof or 19 deposit money therewith, and to comply with any other 20 conditions of membership or credit. 21 (5) To make donations in reasonable amounts for the 22 public welfare or for charitable, scientific, religious, 23 or educational purposes. 24 (6) To adopt and operate reasonable insurance, 25 bonus, profit sharing, and retirement plans for officers 26 and employees and for directors including, but not 27 limited to, advisory, honorary, and emeritus directors, 28 who are not officers or employees. 29 (7) To reject any application for membership; to 30 retire deposit accounts by enforced retirement as 31 provided in this Act and the bylaws; and to limit the 32 issuance of, or payments on, deposit accounts, subject, 33 however, to contractual obligations. 34 (8) To purchase stock in service corporations and SB1528 Enrolled -37- LRB9009866JSmg 1 to invest in any form of indebtedness of any service 2 corporation as defined in this Act, subject to 3 regulations of the Commissioner. 4 (9) To purchase stock of a corporation whose 5 principal purpose is to operate a safe deposit company or 6 escrow service company. 7 (10) To exercise all the powers necessary to 8 qualify as a trustee or custodian under federal or State 9 law, provided that the authority to accept and execute 10 trusts is subject to the provisions of the Corporate 11 Fiduciary Act and to the supervision of those activities 12 by the Commissioner of Banks and Real Estate. 13 (11) (Blank). 14 (12) To establish, maintain, and operate terminals 15 as authorized by the Electronic Fund Transfer Act. The 16 establishment, maintenance, operation, and location of 17 those terminals shall be subject to the approval of the 18 Commissioner. 19 (13) Pledge its assets: 20 (A) to enable it to act as agent for the sale 21 of obligations of the United States; 22 (B) to secure deposits; 23 (C) to secure deposits of money whenever 24 required by the National Bankruptcy Act; 25 (D) to qualify under Section 2-9 of the 26 Corporate Fiduciary Act; and 27 (E) to secure trust funds commingled with the 28 savings bank's funds, whether deposited by the 29 savings bank or an affiliate of the savings bank, as 30 required under Section 2-8 of the Corporate 31 Fiduciary Act. 32 (14) To accept for payment at a future date not to 33 exceed one year from the date of acceptance, drafts drawn 34 upon it by its customers; and to issue, advise, or SB1528 Enrolled -38- LRB9009866JSmg 1 confirm letters of credit authorizing holders thereof to 2 draw drafts upon it or its correspondents. 3 (15) Subject to the regulations of the 4 Commissioner, to own and lease personal property acquired 5 by the savings bank at the request of a prospective 6 lessee and, upon the agreement of that person, to lease 7 the personal property. 8 (16) To establish temporary service booths at any 9 International Fair in this State that is approved by the 10 United States Department of Commerce for the duration of 11 the international fair for the purpose of providing a 12 convenient place for foreign trade customers to exchange 13 their home countries' currency into United States 14 currency or the converse. To provide temporary periodic 15 service to persons residing in a bona fide nursing home, 16 senior citizens' retirement home, or long-term care 17 facility. These powers shall not be construed as 18 establishing a new place or change of location for the 19 savings bank providing the service booth. 20 (17) To indemnify its officers, directors, 21 employees, and agents, as authorized for corporations 22 under Section 8.75 of the Business Corporations Act of 23 1983. 24 (18) To provide data processing services to others 25 on a for-profit basis. 26 (19) To utilize any electronic technology to 27 provide customers with home banking services. 28 (20) Subject to the regulations of the 29 Commissioner, to enter into an agreement to act as a 30 surety. 31 (21) Subject to the regulations of the 32 Commissioner, to issue credit cards, extend credit 33 therewith, and otherwise engage in or participate in 34 credit card operations. SB1528 Enrolled -39- LRB9009866JSmg 1 (22) To purchase for its own account shares of 2 stock of a bankers' bank, described in Section 13(b)(1) 3 of the Illinois Banking Act, on the same terms and 4 conditions as a bank may purchase such shares. In no 5 event shall the total amount of such stock held by a 6 savings bank in such bankers' bank exceed 10% of its 7 capital and surplus (including undivided profits) and in 8 no event shall a savings bank acquire more than 5% of any 9 class of voting securities of such bankers' bank. 10 (23) With respect to affiliate facilities: 11 (A) to conduct at affiliate facilities any of 12 the following transactions for and on behalf of any 13 affiliated depository institution, if so authorized 14 by the affiliate or affiliates: receiving deposits; 15 renewing deposits; cashing and issuing checks, 16 drafts, money orders, travelers checks, or similar 17 instruments; changing money; receiving payments on 18 existing indebtedness; and conducting ministerial 19 functions with respect to loan applications, 20 servicing loans, and providing loan account 21 information; and 22 (B) to authorize an affiliated depository 23 institution to conduct for and on behalf of it, any 24 of the transactions listed in this subsection at one 25 or more affiliate facilities. 26 A savings bank intending to conduct or to authorize 27 an affiliated depository institution to conduct at an 28 affiliate facility any of the transactions specified in 29 this subsection shall give written notice to the 30 Commissioner at least 30 days before any such transaction 31 is conducted at an affiliate facility. All conduct under 32 this subsection shall be on terms consistent with safe 33 and sound banking practices and applicable law. 34 (24) (23)Subject to Article XLIV of the Illinois SB1528 Enrolled -40- LRB9009866JSmg 1 Insurance Code, to act as the agent for any fire, life, 2 or other insurance company authorized by the State of 3 Illinois, by soliciting and selling insurance and 4 collecting premiums on policies issued by such company; 5 and may receive for services so rendered such fees or 6 commissions as may be agreed upon between the said 7 savings bank and the insurance company for which it may 8 act as agent; provided, however, that no such savings 9 bank shall in any case assume or guarantee the payment of 10 any premium on insurance policies issued through its 11 agency by its principal; and provided further, that the 12 savings bank shall not guarantee the truth of any 13 statement made by an assured in filing his application 14 for insurance. 15 (25) (23)To become a member of the Federal Home 16 Loan Bank Boardand to have the powers granted to a 17 savings association organized under the Illinois Savings 18 and Loan Act of 1985 or the laws of the United States, 19 subject to regulations of the Commissioner. 20 (26) To offer any product or service that is at the 21 time authorized or permitted to a bank by applicable law, 22 but subject always to the same limitations and 23 restrictions that are applicable to the bank for the 24 product or service by such applicable law and subject to 25 the applicable provisions of the Financial Institutions 26 Insurance Sales Law and rules of the Commissioner. 27 (b) If this Act or the regulations adopted under this 28 Act fail to provide specific guidance in matters of corporate 29 governance, the provisions of the Business Corporation Act of 30 1983 may be used. 31 (Source: P.A. 89-74, eff. 6-30-95; 89-310, eff. 1-1-96; 32 89-317, eff. 8-11-95; 89-355, eff. 8-17-95; 89-508, eff. 33 7-3-96; 89-603, eff. 8-2-96; 89-626, eff. 8-9-96; 90-14, eff. 34 7-1-97; 90-41, eff. 10-1-97; 90-270, eff. 7-30-97; 90-301, SB1528 Enrolled -41- LRB9009866JSmg 1 eff. 8-1-97; revised 10-21-97.) 2 (205 ILCS 205/6001) (from Ch. 17, par. 7306-1) 3 Sec. 6001. General provisions. 4 (a) No savings bank shall make any loan or investment 5 authorized by this Article unless the savings bank first has 6 determined that the type, amount, purpose, and repayment 7 provisions of the loan or investment in relation to the 8 borrower's or issuer's resources and credit standing support 9 the reasonable belief that the loan or investment will be 10 financially sound and will be repaid according to its terms 11 and that the loan or investment is not otherwise unlawful. 12 (b) Each loan or investment that a savings bank makes or 13 purchases, whether wholly or in part, must be adequately 14 underwritten, reviewed periodically, and reserved against as 15 necessary in accordance with its payment performance, all in 16 accordance with the regulations and directives of the 17 Commissioner. 18 (c) Every appraisal or reappraisal of property that a 19 savings bank is required to make shall be made as follows: 20 (1) By an independent qualified appraiser, 21 designated by the board of directors, who is properly 22 licensed or andcertified by the entity authorized to 23 govern his licensure or andcertification and who meets 24 the requirements of the Appraisal Subcommittee and of the 25 Federal Act. 26 (2) In the case of an insured or guaranteed loan, 27 by any appraiser appointed by any lending, insuring, or 28 guaranteeing agency of the United States or the State of 29 Illinois that insures or guarantees the loan, wholly or 30 in part. 31 (3) Each appraisal shall be in writing prepared at 32 the request of the lender for the lender's use; disclose 33 the market value of the security offered; contain SB1528 Enrolled -42- LRB9009866JSmg 1 sufficient information and data concerning the appraised 2 property to substantiate the market value thereof; be 3 certified and signed by the appraiser or appraisers; and 4 state that the appraiser or appraisers have personally 5 examined the described property. The appraisal shall be 6 filed and preserved by the savings bank. In addition, the 7 appraisal shall be prepared and reported in accordance 8 with the Standards of Professional Practice and the 9 ethical rules of the Appraisal Foundation as adopted and 10 promulgated by the Appraisal Subcommittee. 11 (d) If appraisals of real estate securing a savings 12 bank's loans are obtained as part of an examination by the 13 Commissioner, the cost of those appraisals shall promptly be 14 paid by the savings bank directly to the appraiser or 15 appraisers. 16 (e) Any violation of this Article shall constitute an 17 unsafe or unsound practice. Any person who knowingly 18 violates any provision of this Article shall be subject to 19 enforcement action or civil money penalties as provided for 20 in this Act. 21 (f) For purposes of this Article, "underwriting" shall 22 mean the process of compiling information to support a 23 determination as to whether an investment or extension of 24 credit shall be made by a savings bank. It shall include, 25 but not be limited to, evaluating a borrower's 26 creditworthiness, determination of the value of the 27 underlying collateral, market factors, and the 28 appropriateness of the investment or loan for the savings 29 bank. Underwriting as used herein does not include the 30 agreement to purchase unsold portions of public offerings of 31 stocks or bonds as commonly used in corporate securities 32 issuances and sales. 33 (g) For purposes of this Section, the following 34 definitions shall apply: SB1528 Enrolled -43- LRB9009866JSmg 1 (1) "Federal Act" means Title XI of the Financial 2 Institutions Reform, Recovery and Enforcement Act of 1989 3 and regulations adopted pursuant thereto. 4 (2) "Appraisal Subcommittee" means the designee of 5 the heads of the Federal Financial Institutions 6 Examination Council Act of 1978 (12 U.S.C. 3301 et seq.). 7 (3) "Appraisal Foundation" means the Appraisal 8 Foundation that was incorporated as an Illinois 9 not-for-profit corporation on November 30, 1987. 10 (Source: P.A. 86-1213.) 11 (205 ILCS 205/6003) (from Ch. 17, par. 7306-3) 12 Sec. 6003. Other investments. If the board of directors13 determines at any time that funds are available in excess of14 the demands and needs for loans, maturities, and withdrawals,15 A savings bank may invest funds as provided in this Section: 16 (1) In demand, time, or savings deposits or 17 accounts, withdrawable accounts, or other insured 18 obligations of any financial institution the accounts of 19 which are insured by a federal agency. 20 (2) In participating interests in loans of a type 21 that the savings bank would be authorized to make, but 22 only if the other participants are (A) savings banks 23 organized under this Act, (B) savings and loan 24 associations, banks, credit unions, and licensees under 25 the Consumer Installment Loan Act or the Sales Finance 26 Agency Act, organized under the laws of this State, (C) 27 associations or corporations insured by an 28 instrumentality of the United States, (D) 29 instrumentalities of or corporations owned wholly or in 30 part by the United States or this State, or, (E) subject 31 to regulations of the Commissioner, service corporations 32 of a savings bank organized under this Act or 33 subsidiaries of a savings and loan association, bank, or SB1528 Enrolled -44- LRB9009866JSmg 1 credit union organized under the laws of this State or 2 the United States. 3 (3) In obligations of, or obligations that are 4 fully guaranteed by the United States and in stocks or 5 obligations of any Federal Reserve Bank, Federal Home 6 Loan Bank, the Student Loan Market Association, the 7 Government National Mortgage Association, the Federal 8 National Mortgage Association, The Federal Home Loan 9 Mortgage Corporation, the Federal Deposit Insurance 10 Corporation, or any other agency of the United States. 11 (4) In bonds or other direct obligations of, or 12 guaranteed as to principal and interest by, this State. 13 (5) In obligations that by the laws of this State 14 are made legal investments for savings banks. 15 (6) In bonds or other evidences of indebtedness 16 that are direct general obligations of any unit of local 17 government of this State or in bonds or other evidences 18 of indebtedness that are payable from revenues or 19 earnings specifically pledged therefor of a unit of local 20 government, but in no event shall the total amount of the 21 securities of any one maker or obligor exceed 15% of the 22 savings bank's total capital, nor shall the aggregate 23 amount of investments under this paragraph exceed 15% of 24 the savings bank's total assets. 25 (7) Equity investments in real estate. With the 26 prior written consent of the Commissioner, a savings bank 27 may invest in the initial purchase and development, or 28 the purchase or commitment to purchase after completion, 29 of home sites and housing for sale or rental, including, 30 but not limited to, projects for the reconstruction, 31 rehabilitation, or rebuilding of residential properties 32 to meet the minimum standards of health and occupancy 33 prescribed by appropriate local authorities, the 34 provision of accommodations for retail stores, shops, and SB1528 Enrolled -45- LRB9009866JSmg 1 other community services that are reasonably incident to 2 that housing or in the shares of a corporation that owns 3 one or more of those projects and that is wholly owned by 4 one or more financial institutions whose investments are 5 regulated by the laws of this State or of the United 6 States. In no event shall the total investment in any 7 one project exceed 15% of the savings bank's total 8 capital, nor shall the aggregate investment under this 9 paragraph exceed 50% of its total capital. No savings 10 bank may make an investment of this type unless it is in 11 compliance with the capital requirements of this Act and 12 with the capital maintenance requirements of its insurer 13 of deposit accounts. The Commissioner shall approve the 14 investment only if the savings bank shows: 15 (A) that the savings bank has adequate assets 16 available for the investment; 17 (B) that the proposed investment does not 18 exceed the reasonable market value of the property 19 or interest therein as determined in accordance with 20 the appraisal requirements of this Act; and 21 (C) that all other requirements of this 22 Section have been met. 23 Nothing contained in this paragraph prohibits a 24 savings bank from developing or building on land acquired 25 by it under any other provision of this Act nor from 26 completing the construction of buildings in accordance 27 with any construction loan contract where the borrower 28 has failed to comply with the terms of the contract. 29 (8) In obligations of the State of Israel or 30 obligations fully guaranteed by the State of Israel as to 31 payment of principal and interest, but in no event shall 32 the total amount of that investment exceed 15% of the 33 savings bank's total capital. 34 (9) In stocks or obligations of business SB1528 Enrolled -46- LRB9009866JSmg 1 development corporations chartered by this State or by 2 the United States or an agency thereof, but in no event 3 shall the aggregate amount of stock exceed 2.5% of the 4 savings bank's total capital or $250,000, whichever is 5 greater. 6 (10) In obligations of urban renewal investment 7 corporations chartered under the laws of this State, or 8 the United States, or in certificates of beneficial 9 interest of urban renewal investment trusts, but in no 10 event shall the aggregate amount of the stock, 11 obligations or beneficial interest certificates of any 12 one maker exceed 2.5% of the savings bank's total 13 capital, nor shall the aggregate amount of investments 14 under this paragraph exceed 15% of its total capital. 15 (11) Subject to the regulations of the 16 Commissioner, in loans deemed sufficiently secured by the 17 board of directors of the savings bank. However, if the 18 security is stock or equity securities of any kind other 19 than those of a financial institution, the stock or 20 securities must be listed on a national exchange or 21 actively traded and quoted on an over-the-counter market 22 or their value must be ascertainable in accordance with 23 regulations promulgated by the Commissioner. 24 (12) In commercial paper. As used in this Section, 25 the term "commercial paper" means short term obligations 26 having a maturity ranging from 2 to 270 days issued by 27 banks, corporations, or other borrowers. Investments in 28 commercial paper under this Section must be in securities 29 rated in one of the 4 highest categories by a nationally 30 recognized rating service. 31 (13) Purchase of stock in insurance companies. 32 Notwithstanding any provision of this Act to the 33 contrary, a savings bank may purchase shares of, or 34 otherwise acquire equity interests in, insurance SB1528 Enrolled -47- LRB9009866JSmg 1 companies and insurance holding companies organized to 2 provide insurance for savings institutions and 3 corporations and individuals affiliated with savings 4 institutions, provided ownership of equity interests is a 5 prerequisite to obtaining directors and officers' and 6 blanket bond insurance through the company or companies. 7 The Commissioner may promulgate regulations concerning 8 the size of each savings bank's investment and manner of 9 holding those investments. 10 (14) Subject to the regulation of the Commissioner, 11 in equity or debt securities or instruments of a service 12 corporation subsidiary of the savings bank. 13 (15) Through advances of federal funds to 14 designated depositories, provided that the advances are 15 made on the condition that they be repaid on the next 16 business day following the date on which the advance is 17 made. For the purposes of this paragraph, the term 18 "federal funds" means funds that a savings bank has on 19 deposit at a depository that are exchangeable for funds 20 on deposit at a federal reserve bank; the term "business 21 day" means any day on which the savings bank, the 22 depository, and the federal reserve bank where the funds 23 are on deposit are all open for general business. 24 (16) In financial futures or options transactions 25 subject to the regulations of the Commissioner. 26 (17) In a subsidiary chartered for the purpose of 27 exercising all powers necessary to act as a corporate 28 fiduciary under the Corporate Fiduciary Act. 29 (18) In marketable investment securities, but in no 30 event shall the total amount of those securities of any 31 one maker or obligor exceed 15% of the savings bank's 32 total capital nor shall the aggregate amount of 33 investments under this Section exceed 15% of total 34 assets. As used in this Section, the term "marketable SB1528 Enrolled -48- LRB9009866JSmg 1 investment securities" does not include stocks, but means 2 investment grade marketable obligations evidencing 3 indebtedness of any person in the form of bonds, notes, 4 or debentures commonly known as investment securities, 5 and of a type customarily sold on recognized exchanges or 6 traded over the counter and investment grade marketable 7 obligations of the International Bank for Reconstruction 8 and Development, the Inter-American Development Bank, the 9 Asian Development Bank, the African Development Bank, or 10 the International Finance Corporation. As used in this 11 Section, the term "investment grade" means being rated in 12 one of the 4 highest categories by at least one 13 nationally recognized rating service. 14 (19) In investment grade marketable obligations of 15 any other state, territory, or possession or political 16 subdivision thereof to the same extent that it may invest 17 in marketable investment securities under paragraph (18) 18 of this Section. 19 (Source: P.A. 88-481; 89-317, eff. 8-11-95.) 20 (205 ILCS 205/6013) (from Ch. 17, par. 7306-13) 21 Sec. 6013. Loans to one borrower. 22 (a) Except as provided in subsection (c), the total 23 loans and extensions of credit, both direct and indirect, by 24 a savings bank to any person, other than a municipal 25 corporation for money borrowed, outstanding at one time shall 26 not exceed 20% of the savings bank's total capital plus 27 general loan loss reserves. 28 (b) Except as provided in subsection (c), the total 29 loans and extensions of credit, both direct and indirect, by 30 a savings bank to any person outstanding at one time and at 31 least 100% secured by readily marketable collateral having a 32 market value, as determined by reliable and continuously 33 available price quotations, shall not exceed 10% of the SB1528 Enrolled -49- LRB9009866JSmg 1 savings bank's total capital plus general loan loss reserves. 2 This limitation shall be separate from and in addition to the 3 limitation contained in subsection (a). 4 (c) If the limit under subsection (a) or (b) on total 5 loans to one borrower is less than $500,000, a savings bank 6 that meets its minimum capital requirement under this Act may 7 have loan and extensions of credit, both direct and indirect, 8 outstanding to any person at one time not to exceed $500,000. 9 With the prior written approval of the Commissioner, a 10 savings bank that has capital in excess of 6% of assets may 11 make loans and extensions of credit to one borrower for the 12 development of residential housing properties, located or to 13 be located in this State, not to exceed 30% of the savings 14 bank's total capital plus general loan loss reserves. 15 (d) For purposes of this Section, the term "person" 16 shall be deemed to include an individual, firm, corporation, 17 business trust, partnership, trust, estate, association, 18 joint venture, pool, syndicate, sole proprietorship, 19 unincorporated association, any political subdivision, or any 20 similar entity or organization. 21 (e) For the purposes of this Section any loan or 22 extension of credit granted to one person, the proceeds of 23 which are used for the direct benefit of a second person, 24 shall be deemed a loan or extension of credit to the second 25 person as well as the first person. 26 (f) For the purposes of this Section, the total 27 liabilities of a firm, partnership, pool, syndicate, or joint 28 venture shall include the liabilities of the members of the 29 entity. 30 (g) For the purposes of this Section, the term "readily 31 marketable collateral" means financial instruments or bullion 32 that are salable under ordinary circumstances with reasonable 33 promptness at a fair market value on an auction or a 34 similarly available daily bid-and-ask price market. SB1528 Enrolled -50- LRB9009866JSmg 1 "Financial instruments" include stocks, bonds, notes, 2 debentures traded on a national exchange or over the counter, 3 commercial paper, negotiable certificates of deposit, 4 bankers' acceptances, and shares in money market or mutual 5 funds. 6 (h) Each savings bank shall institute adequate 7 procedures to ensure that collateral fully secures the 8 outstanding loan or extension of credit at all times. 9 (i) If collateral values fall below 100% of the 10 outstanding loan or extension of credit to the extent that 11 the loan or extension of credit no longer is in conformance 12 with subsection (b) and exceeds the 20% limitation of 13 subsection (a), the loan must be brought into conformance 14 with this Section within 5 business days except where 15 judicial proceedings or other similar extraordinary 16 occurrences prevent the savings bank from taking action. 17 (j) This Section shall not apply to loans or extensions 18 of credit to the United States of America or its agencies or 19 this State or its agencies or to any loan, investment, or 20 extension of credit made pursuant to Section 6003 of this 21 Act. 22 (Source: P.A. 89-74, eff. 6-30-95.) 23 Section 20. The Illinois Credit Union Act is amended by 24 changing Sections 1.1 and 61 and adding Section 34.1 as 25 follows: 26 (205 ILCS 305/1.1) (from Ch. 17, par. 4402) 27 Sec. 1.1. Definitions. Credit Union - The term "credit 28 union" means a cooperative, non-profit association, 29 incorporated under this Act, under the laws of the United 30 States of America or under the laws of another state, for the 31 purposes of encouraging thrift among its members, creating a 32 source of credit at a reasonable rate of interest, and SB1528 Enrolled -51- LRB9009866JSmg 1 providing an opportunity for its members to use and control 2 their own money in order to improve their economic and social 3 conditions. The membership of a credit union shall consist of 4 a group or groups each having a common bond as set forth in 5 this Act. 6 Common Bond - The term "common bond" refers to groups of 7 people who meet one of the following qualifications: 8 (1) Persons belonging to a specific association, group 9 or organization, such as a church, labor union, club or 10 society and members of their immediate families which shall 11 include any relative by blood or marriage or foster and 12 adopted children. 13 (2) Persons who reside in a reasonably compact and well 14 defined neighborhood or community, and members of their 15 immediate families which shall include any relative by blood 16 or marriage or foster and adopted children. 17 (3) Persons who have a common employer or who are 18 members of an organized labor union or an organized 19 occupational or professional group within a defined 20 geographical area, and members of their immediate families 21 which shall include any relative by blood or marriage or 22 foster and adopted children. 23 Shares - The term "shares" or "share accounts" means any 24 form of shares issued by a credit union and established by a 25 member in accordance with standards specified by a credit 26 union, including but not limited to common shares, share 27 draft accounts, classes of shares, share certificates, 28 special purpose share accounts, shares issued in trust, 29 custodial accounts, and individual retirement accounts or 30 other plans established pursuant to Section 401(d) or (f) or 31 Section 408(a) of the Internal Revenue Code, as now or 32 hereafter amended, or similar provisions of any tax laws of 33 the United States that may hereafter exist. 34 Credit Union Organization - The term "credit union SB1528 Enrolled -52- LRB9009866JSmg 1 organization" means any organization established to serve the 2 needs of credit unions, the business of which relates to the 3 daily operations of credit unions. 4 Department - The term "Department" means the Illinois 5 Department of Financial Institutions. 6 Director - The term "Director" means the Director of the 7 Illinois Department of Financial Institutions. 8 NCUA - The term "NCUA" means the National Credit Union 9 Administration, an agency of the United States Government 10 charged with the supervision of credit unions chartered under 11 the laws of the United States of America. 12 Central Credit Union - The term "central credit union" 13 means a credit union incorporated primarily to receive shares 14 from and make loans to credit unions and Directors, Officers, 15 committee members and employees of credit unions. A central 16 credit union may also accept as members persons who were 17 members of credit unions which were liquidated and persons 18 from occupational groups not otherwise served by another 19 credit union. 20 Corporate Credit Union - The term "corporate credit 21 union" means a credit union which is a cooperative, 22 non-profit association, the membership of which is limited 23 primarily to other credit unions. 24 Insolvent - "Insolvent" means the condition that results 25 when the total of all liabilities and shares exceeds net 26 assets of the credit union. 27 Danger of insolvency - The term "Danger of insolvency" as 28 used in Section 61 means when a credit union falls below a 2% 29 capital to asset ratio. 30 (Source: P.A. 86-432.) 31 (205 ILCS 305/34.1 new) 32 Sec. 34.1. Compliance review. 33 (a) As used in this Section: SB1528 Enrolled -53- LRB9009866JSmg 1 "Affiliate" means an organization established to serve 2 the needs of credit unions, the business of which relates to 3 the daily operations of credit unions. 4 "Compliance review committee" means: 5 (1) one or more persons appointed by the board of 6 directors or supervisory committee of a credit union for 7 the purposes set forth in subsection (b); or 8 (2) any other person to the extent the person acts 9 in an investigatory capacity at the direction of a 10 compliance review committee. 11 "Compliance review documents" means documents prepared in 12 connection with a review or evaluation conducted by or for a 13 compliance review committee. 14 "Person means an individual, a group of individuals, a 15 board committee, a partnership, a firm, an association, a 16 corporation, or any other entity. 17 (b) This Section applies to compliance review committees 18 whose functions are to evaluate and seek to improve any of 19 the following: 20 (1) loan policies or underwriting standards; 21 (2) asset quality; 22 (3) financial reporting to federal or State 23 governmental or regulatory agencies; or 24 (4) compliance with federal or State statutory or 25 regulatory requirements. 26 (c) Except as provided in subsection (d), compliance 27 review documents and the deliberations of the compliance 28 review committee are privileged and confidential and are 29 nondiscoverable and nonadmissible. 30 (1) Compliance review documents are privileged and 31 confidential and are not subject to discovery or 32 admissible in evidence in any civil action. 33 (2) Individuals serving on compliance review 34 committees or acting under the direction of a compliance SB1528 Enrolled -54- LRB9009866JSmg 1 review committee shall not be required to testify in any 2 civil action about the contents of any compliance review 3 document or conclusions of any compliance review 4 committee or about the actions taken by a compliance 5 review committee. 6 (3) An affiliate of a credit union, a credit union 7 regulatory agency, and the insurer of credit union share 8 accounts shall have access to compliance review 9 documents, provided that (i) the documents shall remain 10 confidential and are not subject to discovery from such 11 entity and (ii) delivery of compliance review documents 12 to an affiliate or pursuant to the requirements of a 13 credit union regulatory agency or an insurer of credit 14 union share accounts shall not constitute a waiver of the 15 privilege granted in this Section. 16 (d) This Section does not apply to: (1) compliance 17 review committees on which individuals serving on or at the 18 direction of the compliance review committee have management 19 responsibility for the operations, records, employees, or 20 activities being examined or evaluated by the compliance 21 review committee and (2) any civil or administrative action 22 initiated by a credit union regulatory agency or an insurer 23 of credit union share accounts. 24 (e) This Section shall not be construed to limit the 25 discovery or admissibility in any civil action of any 26 documents other than compliance review documents or to 27 require the appointment of a compliance review committee. 28 (205 ILCS 305/61) (from Ch. 17, par. 4462) 29 Sec. 61. Suspension. 30 (1) If the Director determines that any credit union is 31 bankrupt, insolvent, impaired or that it has willfully 32 violated this Act, or is operating in an unsafe or unsound 33 manner, he shall issue an order temporarily suspending the SB1528 Enrolled -55- LRB9009866JSmg 1 credit union's operations for not more than 60 days. The 2 Board of Directors shall be given notice by registered or 3 certified mail of such suspension, which notice shall include 4 the reasons for such suspension and a list of specific 5 violations of the Act , or a list of the specific violations6 of this Act, or both such reasons and list. The Director 7 shall also notify the members of the Credit Union Board of 8 Advisors of any suspension. The Director may assess to the 9 credit union a penalty, not to exceed the examination fee as 10 set forth in this Act, $50to offset costs incurred in 11 determining the condition of the credit union's books and 12 records. 13 (2) Upon receipt of such suspension notice, the credit 14 union shall cease all operations, except those authorized by 15 the Director, or the Director may appoint a Manager-Trustee 16 to operate the credit union during the suspension period. 17 The Board of Directors shall, within 10 days of the receipt 18 of the suspension notice, file with the Director a reply to 19 the suspension notice , eitherby submitting one or more of20 the following:a corrective plan of action or a request for 21 formal hearing on said action pursuant to the Department's 22 rules and regulations. or by a request that the credit union23 be declared insolvent and a Liquidating Agent be appointed.24 (3) Upon receipt from the suspended credit union of 25 evidence that the conditions causing the order of suspension 26 have been corrected, and after determining that the proposed 27 corrective plan of action submitted is factual, the Director 28 shall revoke the suspension notice, permit the credit union 29 to resume normal operations, and notify the Board of Credit 30 Union Advisors of such action. 31 (4) If the Director determines that the proposed 32 corrective plan of action will not correct such conditions 33 and that the credit union cannot be reorganized, he may take 34 possession and control of the credit union its office,SB1528 Enrolled -56- LRB9009866JSmg 1 furniture, fixtures, books, records and other assets and upon2 examination, determine whether it is practicable and feasible3 to reorganize the credit union to continue its business. The 4 Director may permit the credit union to operate under his 5 direction and control ,and may appoint a Manager-Trustee to 6 manage its affairs until such time as the condition requiring 7 such action has been remedied, or in the case of insolvency 8 or danger of insolvency where an emergency requiring 9 expeditious action exists, the Director may involuntarily 10 merge the credit union without the vote of the suspended 11 credit union's Board of Directors or members (hereafter 12 involuntary merger) subject to rules promulgated by the 13 Director. No credit union shall be required to serve as a 14 surviving credit union in any involuntary merger. Upon the 15 request of the Director, a credit union by a vote of a 16 majority of its Board of Directors may elect to serve as a 17 surviving credit union in an involuntary merger. If the 18 Director hedetermines that the suspended credit union should 19 be liquidated, he may appoint a Liquidating Agent and require 20 of that person such bond and security as he considers proper. 21 (5) Upon receipt of a request for a formal hearing, the 22 Director shall conduct proceedings pursuant to rules and 23 regulations of the Department and take necessary action24 subsequent to the hearing officer's decision; whether it be25 revocation of the suspension notice, issuance of an26 involuntary liquidation or appointment of a Manager-Trustee.. 27 The credit union may request the appropriate court to stay 28 execution of such action. Involuntary liquidation or 29 involuntary merger may not be ordered prior to the conclusion 30 of suspension procedures outlined in this Section. 31 (6) If, within the suspension period, the credit union 32 fails to answer the suspension notice or fails to request a 33 formal hearing, or both, the Director may then (i) 34 involuntarily merge the credit union if the credit union is SB1528 Enrolled -57- LRB9009866JSmg 1 insolvent or in danger of insolvency and an emergency 2 requiring expeditious action exists or (ii) revoke the credit 3 union's charter, appoint a Liquidating Agent and liquidate 4 the credit union. 5 (Source: P.A. 86-432.) 6 Section 25. The Electronic Fund Transfer Act is amended 7 by adding Section 85 as follows: 8 (205 ILCS 616/85 new) 9 Sec. 85. Reliance on Commissioner. No person shall be 10 liable under this Act for any act done or omitted in good 11 faith in conformity with any rule, interpretation, or opinion 12 issued by the Commissioner of Banks and Real Estate, 13 notwithstanding that after the act or omission has occurred, 14 the rule, interpretation, or opinion upon which reliance is 15 placed is amended, rescinded, or determined by judicial or 16 other authority to be invalid for any reason. 17 Section 30. The Corporate Fiduciary Act is amended by 18 changing Sections 1-7, 4-4, and 5-6 as follows: 19 (205 ILCS 620/1-7) (from Ch. 17, par. 1551-7) 20 Sec. 1-7. Office locations corporate fiduciaries. 21 (a) Any corporate fiduciary may establish branch offices 22 at any location. Any corporate fiduciary that seeks to 23 establish a branch office shall, if it is a trust company, 24 apply for and obtain approval for the branch office from the 25 Commissioner or, if it is a bank, savings and loan 26 association, or savings bank, give notice of its intent to 27 establish a branch office to the Commissioner, 30 days prior 28 to the purchasing or leasing of land, building, or equipment 29 for the branch office under the terms and conditions as the 30 Commissioner shall specify by rule. SB1528 Enrolled -58- LRB9009866JSmg 1 (b) Any trust company that proposes to establish a 2 subsidiary, whether by incorporating the subsidiary or by 3 acquiring the subsidiary, shall apply for and obtain prior 4 approval from the Commissioner 60 days prior to commencing 5 business by the subsidiary, if newly incorporated, or prior 6 to its acquisition, if it is acquired, provided the 7 Commissioner may specify circumstances and conditions when a 8 trust company may directly or indirectly acquire a subsidiary 9 without prior approval. 10 (Source: P.A. 86-754; 87-506.) 11 (205 ILCS 620/4-4) (from Ch. 17, par. 1554-4) 12 Sec. 4-4. Place of business not to be established in 13 State; not deemed transacting business. 14 (a) A foreign corporation, as defined in Section 1-5.08 15 of this Act, shall not establish in this State a place of 16 business, branch office, or agency for the conduct of 17 business as a fiduciary and because it is not permitted to 18 establish in this State a place of business, branch office or 19 agency, a foreign corporation insofar as it acts in a 20 fiduciary capacity in this State pursuant to the provisions 21 of this Act shall not be deemed to be transacting business in 22 this State. The foreign corporation may apply for, and 23 procure from the Commissioner, a license to establish a 24 representative office pursuant to the Foreign Bank 25 Representative Office Act. 26 (b) Notwithstanding subsection (a) of this Section 4-4, 27 after May 31, 1997, a branch of an out-of-state bank, as 28 defined in Section 2 of the Illinois Banking Act, may 29 establish an office in this State for the conduct of business 30 as a fiduciary, provided: ;(i) the branch of the out-of-state31 bank obtains a certificate of authority pursuant to this32 Section; (ii)fiduciary business conducted in this State by a 33 branch of an out-of-state bank is subject to examination by SB1528 Enrolled -59- LRB9009866JSmg 1 the Commissioner; and (ii) (iii)the trust activities of the 2 branch of the out-of-state bank are subject to regulation, 3 including enforcement actions, by the Commissioner to the 4 same extent as Illinois corporate fiduciaries. 5 (c) The application for a certificate of authority6 pursuant to this Section shall be filed with the Commissioner7 on forms prescribed by the Commissioner and shall contain8 such relevant information as the Commissioner may specify to9 determine that the fiduciary business will be conducted by10 the branch of the out-of-state bank in a safe and sound11 manner.12 (Source: P.A. 89-208, eff. 9-29-95; 89-364, eff. 8-18-95; 13 89-626, eff. 8-9-96.) 14 (205 ILCS 620/5-6) (from Ch. 17, par. 1555-6) 15 Sec. 5-6. Removal orders. Whenever, in the opinion of 16 the Commissioner, any director, officer, employee, or agent 17 of a corporate fiduciary shall have violated any law, rule, 18 or order relating to the corporate fiduciary, orshall have 19 engaged in an unsafe or unsound practice in conducting the 20 business of the corporate fiduciary, or shall have violated 21 any law or engaged or participated in any unsafe or unsound 22 practice in connection with any financial institution or 23 other business entity such that the character and fitness of 24 the director, officer, employee, or agent does not assure 25 reasonable promise of safe and sound operation of the 26 corporate fiduciary, the Commissioner may issue an order of 27 removal. If in the opinion of the Commissioner, any former 28 director, officer, employee, or agent of a corporate 29 fiduciary, prior to the termination of his or her service 30 with the corporate fiduciary, violated any law, rule, or 31 order relating to the corporate fiduciary or engaged in an 32 unsafe or unsound practice in conducting the business of the 33 corporate fiduciary or violated any law or engaged or SB1528 Enrolled -60- LRB9009866JSmg 1 participated in any unsafe or unsound practice in connection 2 with any financial institution or other business entity such 3 that the character and fitness of the director, officer, 4 employee, or agent would not have assured reasonable promise 5 of safe and sound operation of the corporate fiduciary prior6 to the termination of his or her service with the corporate7 fiduciary, the Commissioner may issue an order prohibiting 8 that person from further service with a corporate fiduciary 9 as a director, officer, employee, or agent. An order issued 10 pursuant to this Section shall be served upon the director, 11 officer, employee, or agent. A copy of the order shall be 12 sent to each director of the corporate fiduciary affected by 13 personal service, certified mail return receipt requested, or 14 any other method that provides proof of service and receipt. 15 The person affected by the action may request a hearing 16 before the State Banking Board of Illinois, hereafter "the 17 Board", within 10 days after receipt of the order of removal 18 or prohibition. The hearing shall be held by the Board 19 according to the same procedures used pursuant to Section 48 20 of the Illinois Banking Act, and the hearing shall be held 21 within 30 days after the request has been received by the 22 Board. After concluding the hearing, the Board shall make a 23 determination approving, modifying, or disapproving the order 24 of the Commissioner as its final administrative decision. A 25 copy of the order shall be served upon the corporate 26 fiduciary of which the person is a director, officer, 27 employee, or agent, whereupon the person shall cease to be a 28 director, officer, employee, or agent of the corporate 29 fiduciary. Any person who has been removed or prohibited by 30 an order of the Commissioner under this Section or subsection 31 (7) of Section 48 of the Illinois Banking Act may not 32 thereafter serve as director, officer, employee, or agent of 33 any State bank or corporate fiduciary, or of any other entity 34 that is subject to licensure or regulation by the SB1528 Enrolled -61- LRB9009866JSmg 1 Commissioner or the Office of Banks and Real Estate unless 2 the Commissioner has granted prior approval in writing. The 3 Commissioner may institute a civil action against the 4 director, officer, employee, or agent subject to an order 5 issued under this Section and against the corporate fiduciary 6 to enforce compliance with or to enjoin any violation of the 7 terms of the order. 8 (Source: P.A. 90-301, eff. 8-1-97.) 9 Section 35. The Consumer Installment Loan Act is amended 10 by changing Section 19.1 as follows: 11 (205 ILCS 670/19.1) (from Ch. 17, par. 5425.1) 12 Sec. 19.1. Where the licensee repossesses a motor vehicle 13 that was used as collateral and which is used primarily for 14 the obligor's personal, family or household purposes, the 15 licensee shall be subject to the requirements of and shall 16 transfer the certificate of title pursuant to Section 3-114 17 of the Illinois Vehicle Code and the obligor at the time of18 repossession has paid an amount equal to 30% or more of the19 total of payments due, the obligor may, within 15 days,20 reinstate the contract and recover the motor vehicle from the21 licensee by tendering:22 (a) the total of all unpaid amounts, including any23 unpaid delinquency or deferral charges due, without24 acceleration; and25 (b) performance necessary to cure any default other than26 nonpayment of the amounts due; and27 (c) any reasonable cost or fees incurred by the licensee28 in the retaking of the goods. Tender of payment and29 performance pursuant to this Section restores to the obligor30 his rights under the loan as though no default had occurred.31 The obligor has a right to reinstate the contract and recover32 the collateral from the licensee only once under thisSB1528 Enrolled -62- LRB9009866JSmg 1 Section.2 The licensee must give written notice to the obligor,3 within 3 days of the repossession, of the obligor's right to4 reinstate the contract and recover the collateral pursuant to5 this Section. The Written notice shall be in substantially6 the following form:7 NOTICE OF RIGHT TO RECOVER VEHICLE8 Your car was repossessed on (specify date) for failure to9 make payments on the loan (or other reason).10 Under Illinois law, because you have paid at least 30% of11 the loan before repossession, you may be able to get the car12 back. To recover the car and reinstate the loan you must do13 the following within 15 days of the date of repossession:14 1. Make payment of all back payments as15 of the date of this notice16 . $...........17 2. Pay any late charge due. $...........18 3. Pay the costs of repossession. $...........19 Total due as of the date of this20 notice21 plus any additional amounts which may become22 due23 between the date of the notice and the date of24 reinstatement. $...........25 Bring cash, a certified check or money order for the26 total amount plus any amounts which may become due between27 the date of the notice and the date of reinstatement to our28 office located at (specify address) by (specify date) to get29 your car back. 30 (Source: P.A. 90-437, eff. 1-1-98.) 31 Section 45. The Illinois Vehicle Code is amended by 32 changing Sections 3-114 and 3-117.1 as follows: SB1528 Enrolled -63- LRB9009866JSmg 1 (625 ILCS 5/3-114) (from Ch. 95 1/2, par. 3-114) 2 Sec. 3-114. Transfer by operation of law. 3 (a) If the interest of an owner in a vehicle passes to 4 another other than by voluntary transfer, the transferee 5 shall, except as provided in paragraph (b), promptly mail or 6 deliver within 20 days to the Secretary of State the last 7 certificate of title, if available, proof of the transfer, 8 and his application for a new certificate in the form the 9 Secretary of State prescribes. It shall be unlawful for any 10 person having possession of a certificate of title for a 11 motor vehicle, semi-trailer, or house car by reason of his 12 having a lien or encumbrance on such vehicle, to fail or 13 refuse to deliver such certificate to the owner, upon the 14 satisfaction or discharge of the lien or encumbrance, 15 indicated upon such certificate of title. 16 (b) If the interest of an owner in a vehicle passes to 17 another under the provisions of the Small Estates provisions 18 of the Probate Act of 1975 the transferee shall promptly mail 19 or deliver to the Secretary of State, within 120 days, the 20 last certificate of title, if available, the documentation 21 required under the provisions of the Probate Act of 1975, and 22 an application for certificate of title. The Small Estate 23 Affidavit form shall be furnished by the Secretary of State. 24 The transfer may be to the transferee or to the nominee of 25 the transferee. 26 (c) If the interest of an owner in a vehicle passes to 27 another under other provisions of the Probate Act of 1975, as 28 amended, and the transfer is made by a representative or 29 guardian, such transferee shall promptly mail or deliver to 30 the Secretary of State, the last certificate of title, if 31 available, and a certified copy of the letters of office or 32 guardianship, and an application for certificate of title. 33 Such application shall be made before the estate is closed. 34 The transfer may be to the transferee or to the nominee of SB1528 Enrolled -64- LRB9009866JSmg 1 the transferee. 2 (d) If the interest of an owner in joint tenancy passes 3 to the other joint tenant with survivorship rights as 4 provided by law, the transferee shall promptly mail or 5 deliver to the Secretary of State, the last certificate of 6 title, if available, proof of death of the one joint tenant 7 and survivorship of the surviving joint tenant, and an 8 application for certificate of title. Such application shall 9 be made within 120 days after the death of the joint tenant. 10 The transfer may be to the transferee or to the nominee of 11 the transferee. 12 (e) The Secretary of State shall transfer a decedent's 13 vehicle title to any legatee, representative or heir of the 14 decedent who submits to the Secretary a death certificate and 15 an affidavit by an attorney at law on the letterhead 16 stationery of the attorney at law stating the facts of the 17 transfer. 18 (f) Repossession with assignment of title. In all cases 19 wherein a lienholder has repossessed a vehicle by other than 20 judicial process and holds it for resale under a security 21 agreement, and the owner of record has executed an assignment 22 of the existing certificate of title after default, the 23 lienholder may proceed to sell or otherwise dispose of the 24 vehicle as authorized under the Uniform Commercial Code. 25 Upon selling the vehicle to another person, the lienholder 26 need not send the certificate of title to the Secretary of 27 State, but shall promptly and within 20 days mail or deliver 28 to the purchaser as transferee the existing certificate of 29 title for the repossessed vehicle, reflecting the release of 30 the lienholder's security interest in the vehicle. The 31 application for a certificate of title made by the purchaser 32 shall comply with subsection (a) of Section 3-104 and be 33 accompanied by the existing certificate of title for the 34 repossessed vehicle. The lienholder shall execute the SB1528 Enrolled -65- LRB9009866JSmg 1 assignment and warranty of title showing the name and address 2 of the purchaser in the spaces provided therefor on the 3 certificate of title or as the Secretary of State prescribes. 4 The lienholder shall complete the assignment of title in the 5 certificate of title to reflect the transfer of the vehicle 6 to the lienholder and also a reassignment to reflect the 7 transfer from the lienholder to the purchaser. For this 8 purpose, the lienholder is specifically authorized to 9 complete and execute the space reserved in the certificate of 10 title for a dealer reassignment, notwithstanding that the 11 lienholder is not a licensed dealer. Nothing herein shall be 12 construed to mean that the lienholder is taking title to the 13 repossessed vehicle for purposes of liability for retailer 14 occupation, vehicle use, or other tax with respect to the 15 proceeds from the repossession sale. Delivery of the 16 existing certificate of title to the purchaser shall be 17 deemed disclosure to the purchaser of the owner of the 18 vehicle. 19 (f-5) Repossession without assignment of title. In all 20 cases wherein a lienholder has repossessed a vehicle by other 21 than judicial process and holds it for resale under a 22 security agreement, and the owner of record has not executed 23 an assignment of the existing certificate of title, the 24 lienholder shall comply with the following provisions: 25 (1) Prior to sale, the lienholder shall deliver or 26 mail to the owner at the owner's last known address and 27 to any other lienholder of record, a notice of redemption 28 setting forth the following information: (i) the name of 29 the owner of record and in bold type at or near the top 30 of the notice a statement that the owner's vehicle was 31 repossessed on a specified date for failure to make 32 payments on the loan (or other reason), (ii) a 33 description of the vehicle subject to the lien sufficient 34 to identify it, (iii) the right of the owner to redeem SB1528 Enrolled -66- LRB9009866JSmg 1 the vehicle, (iv) the lienholder's intent to sell or 2 otherwise dispose of the vehicle after the expiration of 3 21 days from the date of mailing or delivery of the 4 notice, and (v) the name, address, and telephone number 5 of the lienholder from whom information may be obtained 6 concerning the amount due to redeem the vehicle and from 7 whom the vehicle may be redeemed under Section 9-506 of 8 the Uniform Commercial Code. At the lienholder's option, 9 the information required to be set forth in this notice 10 of redemption may be made a part of or accompany the 11 notification of sale or other disposition required under 12 subsection (3) of Section 9-504 of the Uniform Commercial 13 Code, but none of the information required by this notice 14 shall be construed to impose any requirement under 15 Article 9 of the Uniform Commercial Code. 16 (2) With respect to the repossession of a vehicle 17 used primarily for personal, family, or household 18 purposes, the lienholder shall also deliver or mail to 19 the owner at the owner's last known address an affidavit 20 of defense. The affidavit of defense shall accompany the 21 notice of redemption required in subdivision (f-5)(1) of 22 this Section. The affidavit of defense shall (i) identify 23 the lienholder, owner, and the vehicle; (ii) provide 24 space for the owner to state the defense claimed by the 25 owner; and (iii) include an acknowledgment by the owner 26 that the owner may be liable to the lienholder for fees, 27 charges, and costs incurred by the lienholder in 28 establishing the insufficiency or invalidity of the 29 owner's defense. To stop the transfer of title, the 30 affidavit of defense must be received by the lienholder 31 no later than 21 days after the date of mailing or 32 delivery of the notice required in subdivision (f-5)(1) 33 of this Section. If the lienholder receives the affidavit 34 from the owner in a timely manner, the lienholder must SB1528 Enrolled -67- LRB9009866JSmg 1 apply to a court of competent jurisdiction to determine 2 if the lienholder is entitled to possession of the 3 vehicle. 4 (3) Upon selling the vehicle to another person, the 5 lienholder need not send the certificate of title to the 6 Secretary of State, but shall promptly and within 20 days 7 mail or deliver to the purchaser as transferee (i) the 8 existing certificate of title for the repossessed 9 vehicle, reflecting the release of the lienholder's 10 security interest in the vehicle; and (ii) an affidavit 11 of repossession made by or on behalf of the lienholder 12 which provides the following information: that the 13 vehicle was repossessed, a description of the vehicle 14 sufficient to identify it, whether the vehicle has been 15 damaged in excess of 33 1/3% of its fair market value as 16 required under subdivision (b)(3) of Section 3-117.1, 17 that the owner and any other lienholder of record were 18 given the notice required in subdivision (f-5)(1) of this 19 Section, that the owner of record was given the affidavit 20 of defense required in subdivision (f-5)(2) of this 21 Section, that the interest of the owner was lawfully 22 terminated or sold pursuant to the terms of the security 23 agreement, and the purchaser's name and address. If the 24 vehicle is damaged in excess of 33 1/3% of its fair 25 market value, the lienholder shall make application for a 26 salvage certificate under Section 3-117.1 and transfer 27 the vehicle to a person eligible to receive assignments 28 of salvage certificates identified in Section 3-118. 29 (4) The application for a certificate of title made 30 by the purchaser shall comply with subsection (a) of 31 Section 3-104 and be accompanied by the affidavit of 32 repossession furnished by the lienholder and the existing 33 certificate of title for the repossessed vehicle. The 34 lienholder shall execute the assignment and warranty of SB1528 Enrolled -68- LRB9009866JSmg 1 title showing the name and address of the purchaser in 2 the spaces provided therefor on the certificate of title 3 or as the Secretary of State prescribes. The lienholder 4 shall complete the assignment of title in the certificate 5 of title to reflect the transfer of the vehicle to the 6 lienholder and also a reassignment to reflect the 7 transfer from the lienholder to the purchaser. For this 8 purpose, the lienholder is specifically authorized to 9 execute the assignment on behalf of the owner as seller 10 if the owner has not done so and to complete and execute 11 the space reserved in the certificate of title for a 12 dealer reassignment, notwithstanding that the lienholder 13 is not a licensed dealer. Nothing herein shall be 14 construed to mean that the lienholder is taking title to 15 the repossessed vehicle for purposes of liability for 16 retailer occupation, vehicle use, or other tax with 17 respect to the proceeds from the repossession sale. 18 Delivery of the existing certificate of title to the 19 purchaser shall be deemed disclosure to the purchaser of 20 the owner of the vehicle. In the event the lienholder 21 does not hold the certificate of title for the 22 repossessed vehicle, the lienholder shall make 23 application for and may obtain a new certificate of title 24 in the name of the lienholder upon furnishing information 25 satisfactory to the Secretary of State. Upon receiving 26 the new certificate of title, the lienholder may proceed 27 with the sale described in subdivision (f-5)(3), except 28 that upon selling the vehicle the lienholder shall 29 promptly and within 20 days mail or deliver to the 30 purchaser the new certificate of title reflecting the 31 assignment and transfer of title to the purchaser. 32 (5) Neither the lienholder nor the owner shall file 33 with the Office of the Secretary of State the notice of 34 redemption or affidavit of defense described in SB1528 Enrolled -69- LRB9009866JSmg 1 subdivisions (f-5)(1) and (f-5)(2) of this Section. The 2 Office of the Secretary of State shall not determine the 3 merits of an owner's affidavit of defense, nor consider 4 any allegations or assertions regarding the validity or 5 invalidity of a lienholder's claim to the vehicle or an 6 owner's asserted defenses to the repossession action. 7 (f-7) Notice of reinstatement in certain cases. 8 (1) If, at the time of repossession by a lienholder 9 that is seeking to transfer title pursuant to subsection 10 (f-5), the owner has paid an amount equal to 30% or more 11 of the deferred payment price or total of payments due, 12 the owner may, within 21 days of the date of 13 repossession, reinstate the contract or loan agreement 14 and recover the vehicle from the lienholder by tendering 15 in a lump sum (i) the total of all unpaid amounts, 16 including any unpaid delinquency or deferral charges due 17 at the date of reinstatement, without acceleration; and 18 (ii) performance necessary to cure any default other than 19 nonpayment of the amounts due; and (iii) all reasonable 20 costs and fees incurred by the lienholder in retaking, 21 holding, and preparing the vehicle for disposition and in 22 arranging for the sale of the vehicle. Reasonable costs 23 and fees incurred by the lienholder include without 24 limitation repossession and storage expenses and, if 25 authorized by the contract or loan agreement, reasonable 26 attorneys' fees and collection agency charges. 27 (2) Tender of payment and performance pursuant to 28 this limited right of reinstatement restores to the owner 29 his rights under the contract or loan agreement as though 30 no default had occurred. The owner has the right to 31 reinstate the contract or loan agreement and recover the 32 vehicle from the lienholder only once under this 33 subsection. The lienholder may, in the lienholder's sole 34 discretion, extend the period during which the owner may SB1528 Enrolled -70- LRB9009866JSmg 1 reinstate the contract or loan agreement and recover the 2 vehicle beyond the 21 days allowed under this subsection, 3 and the extension shall not subject the lienholder to 4 liability to the owner under the laws of this State. 5 (3) The lienholder shall deliver or mail written 6 notice to the owner at the owner's last known address, 7 within 3 business days of the date of repossession, of 8 the owner's right to reinstate the contract or loan 9 agreement and recover the vehicle pursuant to the limited 10 right of reinstatement described in this subsection. At 11 the lienholder's option, the information required to be 12 set forth in this notice of reinstatement may be made 13 part of or accompany the notice of redemption required in 14 subdivision (f-5)(1) of this Section and the notification 15 of sale or other disposition required under subsection 16 (3) of Section 9-504 of the Uniform Commercial Code, but 17 none of the information required by this notice of 18 reinstatement shall be construed to impose any 19 requirement under Article 9 of the Uniform Commercial 20 Code. 21 (4) The reinstatement period, if applicable, and 22 the redemption period described in subdivision (f-5)(1) 23 of this Section, shall run concurrently if the 24 information required to be set forth in the notice of 25 reinstatement is part of or accompanies the notice of 26 redemption. In any event, the 21 day redemption period 27 described in subdivision (f-5)(1) of this Section shall 28 commence on the date of mailing or delivery to the owner 29 of the information required to be set forth in the notice 30 of redemption, and the 21 day reinstatement period 31 described in this subdivision, if applicable, shall 32 commence on the date of mailing or delivery to the owner 33 of the information required to be set forth in the notice 34 of reinstatement. SB1528 Enrolled -71- LRB9009866JSmg 1 (5) The Office of the Secretary of State shall not 2 determine the merits of an owner's claim of right to 3 reinstatement, nor consider any allegations or assertions 4 regarding the validity or invalidity of a lienholder's 5 claim to the vehicle or an owner's asserted right to 6 reinstatement. Where a lienholder is subject to 7 licensing and regulatory supervision by the State of 8 Illinois, the lienholder shall be subject to all of the 9 powers and authority of the lienholder's primary State 10 regulator to enforce compliance with the procedures set 11 forth in this subsection (f-7). 12 (f-10) Repossession by judicial process. In all cases 13 wherein a lienholder has repossessed a vehicle by judicial 14 process and holds it for resale under a security agreement, 15 order for replevin, or other court order establishing the 16 lienholder's right to possession of the vehicle, the 17 lienholder may proceed to sell or otherwise dispose of the 18 vehicle as authorized under the Uniform Commercial Code or 19 the court order. Upon selling the vehicle to another person, 20 the lienholder need not send the certificate of title to the 21 Secretary of State, but shall promptly and within 20 days 22 mail or deliver to the purchaser as transferee (i) the 23 existing certificate of title for the repossessed vehicle 24 reflecting the release of the lienholder's security interest 25 in the vehicle; (ii) a certified copy of the court order; and 26 (iii) a bill of sale identifying the new owner's name and 27 address and the year, make, model, and vehicle identification 28 number of the vehicle. The application for a certificate of 29 title made by the purchaser shall comply with subsection (a) 30 of Section 3-104 and be accompanied by the certified copy of 31 the court order furnished by the lienholder and the existing 32 certificate of title for the repossessed vehicle. The 33 lienholder shall execute the assignment and warranty of title 34 showing the name and address of the purchaser in the spaces SB1528 Enrolled -72- LRB9009866JSmg 1 provided therefor on the certificate of title or as the 2 Secretary of State prescribes. The lienholder shall complete 3 the assignment of title in the certificate of title to 4 reflect the transfer of the vehicle to the lienholder and 5 also a reassignment to reflect the transfer from the 6 lienholder to the purchaser. For this purpose, the 7 lienholder is specifically authorized to execute the 8 assignment on behalf of the owner as seller if the owner has 9 not done so and to complete and execute the space reserved in 10 the certificate of title for a dealer reassignment, 11 notwithstanding that the lienholder is not a licensed dealer. 12 Nothing herein shall be construed to mean that the lienholder 13 is taking title to the repossessed vehicle for purposes of 14 liability for retailer occupation, vehicle use, or other tax 15 with respect to the proceeds from the repossession sale. 16 Delivery of the existing certificate of title to the 17 purchaser shall be deemed disclosure to the purchaser of the 18 owner of the vehicle. In the event the lienholder does not 19 hold the certificate of title for the repossessed vehicle, 20 the lienholder shall make application for and may obtain a 21 new certificate of title in the name of the lienholder upon 22 furnishing information satisfactory to the Secretary of 23 State. Upon receiving the new certificate of title, the 24 lienholder may proceed with the sale described in this 25 subsection, except that upon selling the vehicle the 26 lienholder shall promptly and within 20 days mail or deliver 27 to the purchaser the new certificate of title reflecting the 28 assignment and transfer of title to the purchaser. 29 (f-15) The Secretary of State shall not issue a 30 certificate of title to a purchaser under subsection (f), 31 (f-5), or (f-10) of this Section, unless the person from whom 32 the vehicle has been repossessed by the lienholder is shown 33 to be the last registered owner of the motor vehicle. The 34 Secretary of State may provide by rule for the standards to SB1528 Enrolled -73- LRB9009866JSmg 1 be followed by a lienholder in assigning and transferring 2 certificates of title with respect to repossessed vehicles. 3 (f-20) If applying for a salvage certificate or a 4 junking certificate, after the original 21 day notice to the5 debtor has been fulfilled,the lienholder shall within 20 6 days make an application to the Secretary of State for a7 certificate of title,a salvage certificate or a junking 8 certificate, as set forth in this Code. In all cases,9 however,The Secretary of State shall not issue a certificate10 of title,a salvage certificate or a junking certificate to 11 such lienholder unless the person from whom such vehicle has 12 been repossessed is shown to be the last registered owner of 13 such motor vehicle and such lienholder establishes to the 14 satisfaction of the Secretary of State that he is entitled to 15 such certificate of title,salvage certificate or junking 16 certificate. The Secretary of State may shallprovide by rule 17 for the standards to be followed by a lienholder in order to 18 obtain a salvage certificate or junking certificate of title19 for a repossessed vehicle. 20 (g) A person holding a certificate of title whose 21 interest in the vehicle has been extinguished or transferred 22 other than by voluntary transfer shall mail or deliver the 23 certificate, within 20 days upon request of the Secretary of 24 State. The delivery of the certificate pursuant to the 25 request of the Secretary of State does not affect the rights 26 of the person surrendering the certificate, and the action of 27 the Secretary of State in issuing a new certificate of title 28 as provided herein is not conclusive upon the rights of an 29 owner or lienholder named in the old certificate. 30 (h) The Secretary of State may decline to process any 31 application for a transfer of an interest in a vehicle 32 hereunder if any fees or taxes due under this Act from the 33 transferor or the transferee have not been paid upon 34 reasonable notice and demand. SB1528 Enrolled -74- LRB9009866JSmg 1 (i) The Secretary of State shall not be held civilly or 2 criminally liable to any person because any purported 3 transferor may not have had the power or authority to make a 4 transfer of any interest in any vehicle or because a 5 certificate of title issued in error is subsequently used to 6 commit a fraudulent act. 7 (Source: P.A. 90-212, eff. 1-1-98.) 8 (625 ILCS 5/3-117.1) (from Ch. 95 1/2, par. 3-117.1) 9 Sec. 3-117.1. When junking certificates or salvage 10 certificates must be obtained. 11 (a) Except as provided in Chapter 4 of this Code, a 12 person who possesses a junk vehicle shall within 15 days 13 cause the certificate of title, salvage certificate, 14 certificate of purchase, or a similarly acceptable out of 15 state document of ownership to be surrendered to the 16 Secretary of State along with an application for a junking 17 certificate, except as provided in Section 3-117.2, whereupon 18 the Secretary of State shall issue to such a person a junking 19 certificate, which shall authorize the holder thereof to 20 possess, transport, or, by an endorsement, transfer ownership 21 in such junked vehicle, and a certificate of title shall not 22 again be issued for such vehicle. 23 A licensee who possesses a junk vehicle and a Certificate 24 of Title, Salvage Certificate, Certificate of Purchase, or a 25 similarly acceptable out-of-state document of ownership for 26 such junk vehicle, may transport the junk vehicle to another 27 licensee prior to applying for or obtaining a junking 28 certificate, by executing a uniform invoice. The licensee 29 transferor shall furnish a copy of the uniform invoice to the 30 licensee transferee at the time of transfer. In any case, 31 the licensee transferor shall apply for a junking certificate 32 in conformance with Section 3-117.1 of this Chapter. The 33 following information shall be contained on a uniform SB1528 Enrolled -75- LRB9009866JSmg 1 invoice: 2 (1) The business name, address and dealer license 3 number of the person disposing of the vehicle, junk 4 vehicle or vehicle cowl; 5 (2) The name and address of the person acquiring 6 the vehicle, junk vehicle or vehicle cowl, and if that 7 person is a dealer, the Illinois or out-of-state dealer 8 license number of that dealer; 9 (3) The date of the disposition of the vehicle, 10 junk vehicle or vehicle cowl; 11 (4) The year, make, model, color and description of 12 each vehicle, junk vehicle or vehicle cowl disposed of by 13 such person; 14 (5) The manufacturer's vehicle identification 15 number, Secretary of State identification number or 16 Illinois Department of State Police number, for each 17 vehicle, junk vehicle or vehicle cowl part disposed of by 18 such person; 19 (6) The printed name and legible signature of the 20 person or agent disposing of the vehicle, junk vehicle or 21 vehicle cowl; and 22 (7) The printed name and legible signature of the 23 person accepting delivery of the vehicle, junk vehicle or 24 vehicle cowl. 25 The Secretary of State may certify a junking manifest in 26 a form prescribed by the Secretary of State that reflects 27 those vehicles for which junking certificates have been 28 applied or issued. A junking manifest may be issued to any 29 person and it shall constitute evidence of ownership for the 30 vehicle listed upon it. A junking manifest may be 31 transferred only to a person licensed under Section 5-301 of 32 this Code as a scrap processor. A junking manifest will 33 allow the transportation of those vehicles to a scrap 34 processor prior to receiving the junk certificate from the SB1528 Enrolled -76- LRB9009866JSmg 1 Secretary of State. 2 (b) An application for a salvage certificate shall be 3 submitted to the Secretary of State in any of the following 4 situations: 5 (1) When an insurance company makes a payment of 6 damages on a total loss claim for a vehicle, the 7 insurance company shall be deemed to be the owner of such 8 vehicle and the vehicle shall be considered to be salvage 9 except that ownership of a vehicle 9 model years of age 10 or older may, by agreement between the registered owner 11 and the insurance company, be retained by the registered 12 owner of such vehicle. The insurance company shall 13 promptly deliver or mail within 20 days the certificate 14 of title along with proper application and fee to the 15 Secretary of State, and a salvage certificate shall be 16 issued in the name of the insurance company. An insurer 17 making payment of damages on a total loss claim for the 18 theft of a vehicle may exchange the salvage certificate 19 for a certificate of title if the vehicle is recovered 20 without damage. In such a situation, the insurer shall 21 fill out and sign a form prescribed by the Secretary of 22 State which contains an affirmation under penalty of 23 perjury that the vehicle was recovered without damage and 24 the Secretary of State may, by rule or regulation, 25 require photographs to be submitted. 26 (2) When a vehicle the ownership of which has been 27 transferred to any person through a certificate of 28 purchase from acquisition of the vehicle at an auction, 29 other dispositions as set forth in Sections 4-208 and 30 4-209 of this Code, a lien arising under Section 18a-501 31 of this Code, or a public sale under the Abandoned Mobile 32 Home Act shall be deemed salvage or junk at the option of 33 the purchaser. The person acquiring such vehicle in such 34 manner shall promptly deliver or mail, within 20 days SB1528 Enrolled -77- LRB9009866JSmg 1 after the acquisition of the vehicle, the certificate of 2 purchase, the proper application and fee, and, if the 3 vehicle is an abandoned mobile home under the Abandoned 4 Mobile Home Act, a certification from a local law 5 enforcement agency that the vehicle was purchased or 6 acquired at a public sale under the Abandoned Mobile Home 7 Act to the Secretary of State and a salvage certificate 8 or junking certificate shall be issued in the name of 9 that person. The salvage certificate or junking 10 certificate issued by the Secretary of State under this 11 Section shall be free of any lien that existed against 12 the vehicle prior to the time the vehicle was acquired by 13 the applicant under this Code. 14 (3) A vehicle which has been repossessed by a 15 lienholder shall be considered to be salvage only when 16 the repossessed vehicle, on the date of repossession by 17 the lienholder, has sustained damage by collision, fire, 18 theft, rust corrosion, or other means so that the cost of 19 repairing such damage, including labor, would be greater 20 than 33 1/3% of its fair market value without such 21 damage. If the lienholder determines that such vehicle 22 is damaged in excess of 33 1/3% of such fair market 23 value, the lienholder shall, before sale, transfer or 24 assignment of the vehicle, make application for a salvage 25 certificate, and shall submit with such application the 26 proper fee and evidence of possession. If the facts 27 required to be shown in subsection (f) of Section 3-114 28 are satisfied, the Secretary of State shall issue a 29 salvage certificate in the name of the lienholder making 30 the application. In any case wherein the vehicle 31 repossessed is not damaged in excess of 33 1/3% of its 32 fair market value, the lienholder shall comply with the 33 requirements of subsections (f), (f-5), and (f-10) of 34 Section 3-114, except that the affidavit of repossession SB1528 Enrolled -78- LRB9009866JSmg 1 made by or on behalf of the lienholder , after the2 original 21 day notice to the debtor has been fulfilled,3 shall within 15 days make an application to the Secretary4 of State for a certificate of title, submitting with such5 application evidence of possession. The application6 shall also contain an affirmation under penalty of 7 perjury that the vehicle on the date of sale such8 application for certificate of titleis not damaged in 9 excess of 33 1/3% of its fair market value. If the facts 10 required to be shown in subsection (f) of Section 3-114 11 are satisfied, the Secretary of State shall issue a 12 certificate of title as set forth in Section 3-116 of 13 this Code. The Secretary of State may by rule or 14 regulation require photographs to be submitted. 15 (4) A vehicle which is a part of a fleet of more 16 than 5 commercial vehicles registered in this State or 17 any other state or registered proportionately among 18 several states shall be considered to be salvage when 19 such vehicle has sustained damage by collision, fire, 20 theft, rust, corrosion or similar means so that the cost 21 of repairing such damage, including labor, would be 22 greater than 33 1/3% of the fair market value of the 23 vehicle without such damage. If the owner of a fleet 24 vehicle desires to sell, transfer, or assign his interest 25 in such vehicle to a person within this State other than 26 an insurance company licensed to do business within this 27 State, and the owner determines that such vehicle, at the 28 time of the proposed sale, transfer or assignment is 29 damaged in excess of 33 1/3% of its fair market value, 30 the owner shall, before such sale, transfer or 31 assignment, make application for a salvage certificate. 32 The application shall contain with it evidence of 33 possession of the vehicle. If the fleet vehicle at the 34 time of its sale, transfer, or assignment is not damaged SB1528 Enrolled -79- LRB9009866JSmg 1 in excess of 33 1/3% of its fair market value, the owner 2 shall so state in a written affirmation on a form 3 prescribed by the Secretary of State by rule or 4 regulation. The Secretary of State may by rule or 5 regulation require photographs to be submitted. Upon 6 sale, transfer or assignment of the fleet vehicle the 7 owner shall mail the affirmation to the Secretary of 8 State. 9 (5) A vehicle that has been submerged in water to 10 the point that rising water has reached over the door 11 sill and has entered the passenger or trunk compartment 12 is a "flood vehicle". A flood vehicle shall be 13 considered to be salvage only if the vehicle has 14 sustained damage so that the cost of repairing the 15 damage, including labor, would be greater than 33 1/3% of 16 the fair market value of the vehicle without that damage. 17 The salvage certificate issued under this Section shall 18 indicate the word "flood", and the word "flood" shall be 19 conspicuously entered on subsequent titles for the 20 vehicle. A person who possesses or acquires a flood 21 vehicle that is not damaged in excess of 33 1/3% of its 22 fair market value shall make application for title in 23 accordance with Section 3-116 of this Code, designating 24 the vehicle as "flood" in a manner prescribed by the 25 Secretary of State. The certificate of title issued 26 shall indicate the word "flood", and the word "flood" 27 shall be conspicuously entered on subsequent titles for 28 the vehicle. 29 (c) Any person who without authority acquires, sells, 30 exchanges, gives away, transfers or destroys or offers to 31 acquire, sell, exchange, give away, transfer or destroy the 32 certificate of title to any vehicle which is a junk or 33 salvage vehicle shall be guilty of a Class 3 felony. 34 (d) Any person who knowingly fails to surrender to the SB1528 Enrolled -80- LRB9009866JSmg 1 Secretary of State a certificate of title, salvage 2 certificate, certificate of purchase or a similarly 3 acceptable out-of-state document of ownership as required 4 under the provisions of this Section is guilty of a Class A 5 misdemeanor for a first offense and a Class 4 felony for a 6 subsequent offense; except that a person licensed under this 7 Code who violates paragraph (5) of subsection (b) of this 8 Section is guilty of a business offense and shall be fined 9 not less than $1,000 nor more than $5,000 for a first offense 10 and is guilty of a Class 4 felony for a second or subsequent 11 violation. 12 (e) Any vehicle which is salvage or junk may not be 13 driven or operated on roads and highways within this State. 14 A violation of this subsection is a Class A misdemeanor. A 15 salvage vehicle displaying valid special plates issued under 16 Section 3-601(b) of this Code, which is being driven to or 17 from an inspection conducted under Section 3-308 of this 18 Code, is exempt from the provisions of this subsection. A 19 salvage vehicle for which a short term permit has been issued 20 under Section 3-307 of this Code is exempt from the 21 provisions of this subsection for the duration of the permit. 22 (Source: P.A. 88-516; 88-685, eff. 1-24-95; 89-669, eff. 23 1-1-97.) 24 (625 ILCS 5/3-104.1 rep.) 25 Section 50. The Illinois Vehicle Code is amended by 26 repealing Section 3-104.1. 27 Section 55. The Fiduciary Obligations Act is amended by 28 changing Section 9 as follows: 29 (760 ILCS 65/9) (from Ch. 17, par. 2009) 30 Sec. 9. Notwithstanding any other law, if a fiduciary 31 makes a deposit in a bank to his personal credit of checks SB1528 Enrolled -81- LRB9009866JSmg 1 drawn by him upon an account in his own name as fiduciary, or 2 of checks payable to him as fiduciary, or of checks drawn by 3 him upon an account in the name of his principal if he is 4 empowered to draw checks thereon, or of checks payable to his 5 principal and indorsed by him, if he is empowered to indorse 6 such checks, or if he otherwise makes a deposit of funds held 7 by him as fiduciary, the bank receiving such deposit is not 8 bound to inquire whether the fiduciary is committing thereby 9 a breach of his obligation as fiduciary; and the bank is 10 authorized to pay the amount of the deposit or any part 11 thereof upon the personal check of the fiduciary without 12 being liable to the principal, unless the bank receives the 13 deposit or pays the check with actual knowledge that the 14 fiduciary is committing a breach of his obligation as 15 fiduciary in making such deposit or in drawing such check, or 16 with knowledge of such facts that its action in receiving the 17 deposit or paying the check amounts to bad faith. 18 (Source: Laws 1931, p. 676.) 19 Section 60. The Uniform Commercial Code is amended by 20 changing Sections 9-105, 9-106, and 9-302 as follows: 21 (810 ILCS 5/9-105) (from Ch. 26, par. 9-105) 22 Sec. 9-105. Definitions and index of definitions. 23 (1) In this Article unless the context otherwise 24 requires: 25 (a) "Account debtor" means the person who is 26 obligated on an account, chattel paper or general 27 intangible; 28 (b) "Chattel paper" means a writing or writings 29 which evidence both a monetary obligation and a security 30 interest in or a lease of specific goods, but a charter 31 or other contract involving the use or hire of a vessel 32 is not chattel paper. When a transaction is evidenced SB1528 Enrolled -82- LRB9009866JSmg 1 both by such a security agreement or a lease and by an 2 instrument or a series of instruments, the group of 3 writings taken together constitutes chattel paper; 4 (c) "Collateral" means the property subject to a 5 security interest, and includes accounts and chattel 6 paper which have been sold; 7 (d) "Debtor" means the person who owes payment or 8 other performance of the obligation secured, whether or 9 not he owns or has rights in the collateral, and includes 10 the seller of accounts or chattel paper. Where the debtor 11 and the owner of the collateral are not the same person, 12 the term "debtor" means the owner of the collateral in 13 any provision of the Article dealing with the collateral, 14 the obligor in any provision dealing with the obligation, 15 and may include both where the context so requires; 16 (e) "Deposit account" means a demand, time, 17 savings, passbook or like account maintained with a bank, 18 as defined in subsection (1) of Section 4-105 savings and19 loan association, credit union or like organization, 20 other than an account evidenced by a certificate of 21 deposit; 22 (f) "Document" means document of title as defined 23 in the general definitions of Article 1 (Section 1-201), 24 and a receipt of the kind described in subsection (2) of 25 Section 7-201; 26 (g) "Encumbrance" includes real estate mortgages 27 and other liens on real estate and all other rights in 28 real estate that are not ownership interests; 29 (h) "Goods" includes all things which are movable 30 at the time the security interest attaches or which are 31 fixtures (Section 9-313), but does not include money, 32 documents, instruments, investment property, commodity 33 contracts, accounts, chattel paper, general intangibles, 34 or minerals or the like (including oil and gas) before SB1528 Enrolled -83- LRB9009866JSmg 1 extraction. "Goods" also includes standing timber which 2 is to be cut and removed under a conveyance or contract 3 for sale, the unborn young of animals, and growing crops; 4 (i) "Instrument" means a negotiable instrument 5 (defined in Section 3-104), a non-transferable 6 certificate of deposit, a non-negotiable certificate of 7 deposit, or any other writing which evidences a right to 8 the payment of money and is not itself a security 9 agreement or lease and is of a type which is in ordinary 10 course of business transferred by delivery with any 11 necessary indorsement or assignment. The term does not 12 include investment property; 13 (j) "Mortgage" means a consensual interest created 14 by a real estate mortgage, a trust deed on real estate, 15 or the like; 16 (j-5) "Non-negotiable certificate of deposit" means 17 a written document issued by a bank, as defined in 18 subsection (1) of Section 4-105, that contains an 19 acknowledgement that a sum of money has been received by 20 the issuer and a promise by the issuer to repay the sum 21 of money, and is not a negotiable instrument as defined 22 in Section 3-104; 23 (j-7) "Non-transferable certificate of deposit" 24 means a non-negotiable certificate of deposit which may 25 not be transferred except on the books of the issuer, 26 with the consent of the issuer, or is subject to other 27 restrictions or conditions of the issuer on transfer; 28 (k) An advance is made "pursuant to commitment" if 29 the secured party has bound himself to make it, whether 30 or not a subsequent event of default or other event not 31 within his control has relieved or may relieve him from 32 his obligation; 33 (l) "Security agreement" means an agreement which 34 creates or provides for a security interest; SB1528 Enrolled -84- LRB9009866JSmg 1 (m) "Secured party" means a lender, seller or other 2 person in whose favor there is a security interest, 3 including a person to whom accounts or chattel paper have 4 been sold. When the holders of obligations issued under 5 an indenture of trust, equipment trust agreement or the 6 like are represented by a trustee or other person, the 7 representative is the secured party; 8 (n) "Transmitting utility" means any person 9 primarily engaged in the railroad, street railway or 10 trolley bus business, the electric or electronics 11 communications transmission business, the transmission of 12 goods by pipeline, or the distribution, transmission, or 13 the production and transmission of electricity, steam, 14 gas or water, or the provision of sewer service. 15 (o) "Uncertificated certificate of deposit" means an 16 obligation of a bank, as defined in subsection (1) of Section 17 4-105, to repay a sum of money it has received, that is not a 18 deposit account and is not represented by a writing, but only 19 by an entry on the books of the bank and any documentation 20 given to the customer by the bank. 21 (2) Other definitions applying to this Article and the 22 Sections in which they appear are: 23 "Account". Section 9-106. 24 "Attach". Section 9-203. 25 "Commodity contract". Section 9-115. 26 "Commodity customer". Section 9-115. 27 "Commodity intermediary". Section 9-115. 28 "Construction mortgage". Section 9-313 (1). 29 "Consumer goods". Section 9-109 (1). 30 "Control". Section 9-115. 31 "Equipment". Section 9-109 (2). 32 "Farm products". Section 9-109 (3). 33 "Fixture". Section 9-313 (1). 34 "Fixture filing". Section 9-313 (1). SB1528 Enrolled -85- LRB9009866JSmg 1 "General intangibles". Section 9-106. 2 "Inventory". Section 9-109 (4). 3 "Investment property". Section 9-115. 4 "Lien creditor". Section 9-301 (3). 5 "Proceeds". Section 9-306 (1). 6 "Purchase money security interest". Section 9-107. 7 "United States". Section 9-103. 8 (3) The following definitions in other Articles apply to 9 this Article: 10 "Bank". Section 4-105. 11 "Broker". Section 8-102. 12 "Certificated security". Section 8-102. 13 "Check". Section 3-104. 14 "Clearing corporation". Section 8-102. 15 "Contract for sale". Section 2-106. 16 "Control". Section 8-106. 17 "Delivery". Section 8-301. 18 "Entitlement holder". Section 8-102. 19 "Financial asset". Section 8-102. 20 "Holder in due course". Section 3-302. 21 "Letter of credit". Section 5-102. 22 "Note". Section 3-104. 23 "Proceeds of a letter of credit". Section 5-114(a). 24 "Sale". Section 2-106. 25 "Securities intermediary". Section 8-102. 26 "Security". Section 8-102. 27 "Security certificate". Section 8-102. 28 "Security entitlement". Section 8-102. 29 "Uncertificated security". Section 8-102. 30 (4) In addition Article 1 contains general definitions 31 and principles of construction and interpretation applicable 32 throughout this Article. 33 (Source: P.A. 89-364, eff. 1-1-96; 89-534, eff. 1-1-97.) SB1528 Enrolled -86- LRB9009866JSmg 1 (810 ILCS 5/9-106) (from Ch. 26, par. 9-106) 2 Sec. 9-106. Definitions: "account"; "general 3 intangibles". "Account" means any right to payment for goods 4 sold or leased or for services rendered which is not 5 evidenced by an instrument or chattel paper, whether or not 6 it has been earned by performance. "General intangibles" 7 means any personal property (including things in action) 8 other than goods, accounts, chattel paper, documents, 9 instruments, investment property, rights to proceeds of 10 written letters of credit, deposit accounts, uncertificated 11 certificates of deposit, and money. All rights to payment 12 earned or unearned under a charter or other contract 13 involving the use or hire of a vessel and all rights incident 14 to the charter or contract are accounts. 15 (Source: P.A. 89-364, eff. 1-1-96; 89-534, eff. 1-1-97.) 16 (810 ILCS 5/9-302) (from Ch. 26, par. 9-302) 17 Sec. 9-302. When filing is required to perfect security 18 interest; security interests to which filing provisions of 19 this Article do not apply. 20 (1) A financing statement must be filed to perfect all 21 security interests except the following: 22 (a) a security interest in collateral in possession 23 of the secured party under Section 9-305; 24 (b) a security interest temporarily perfected in 25 instruments, certificated securities, or documents 26 without delivery under Section 9-304 or in proceeds for a 27 20 day period under Section 9-306; 28 (c) a security interest created by an assignment of 29 a beneficial interest in a trust or a decedent's estate; 30 (d) a purchase money security interest in consumer 31 goods; but filing is required for a motor vehicle 32 required to be registered; and fixture filing is required 33 for priority over conflicting interests in fixtures to SB1528 Enrolled -87- LRB9009866JSmg 1 the extent provided in Section 9-313; 2 (e) an assignment of accounts which does not alone 3 or in conjunction with other assignments to the same 4 assignee transfer a significant part of the outstanding 5 accounts of the assignor; 6 (f) a security interest of a collecting bank 7 (Section 4-208) or arising under the Article on Sales 8 (see Section 9-113) or covered in subsection (3) of this 9 Section; 10 (g) an assignment for the benefit of all creditors 11 of the transferor, and subsequent transfers by the 12 assignee thereunder; 13 (h) a security interest in investment property 14 which is perfected without filing under Section 9-115 or 15 Section 9-116; 16 (i) a security interest in a deposit account. Such 17 a security interest is perfected: 18 (i) as to a deposit account maintained with 19 the secured party, when the security agreement is 20 executed; 21 (ii) as to a deposit account maintained with 22 any organization other than the secured party, when 23 notice thereof is given in writing to the 24 organization with whom the deposit account is 25 maintained and that organization provides written 26 acknowledgement of and consent to the notice of the 27 secured party. 28 (j) a security interest in an uncertificated 29 certificate of deposit. Such a security interest is 30 perfected; 31 (i) as to an uncertificated certificate of 32 deposit issued by the secured party, when the 33 security agreement is executed; 34 (ii) as to an uncertificated certificate of SB1528 Enrolled -88- LRB9009866JSmg 1 deposit issued by any organization other than the 2 secured party, when notice thereof is given in 3 writing to the issuer of the uncertificated 4 certificate of deposit and the issuer provides 5 written acknowledgement of and consent to the notice 6 of the secured party. 7 (2) If a secured party assigns a perfected security 8 interest, no filing under this Article is required in order 9 to continue the perfected status of the security interest 10 against creditors of and transferees from the original 11 debtor. 12 (3) The filing of a financing statement otherwise 13 required by this Article is not necessary or effective to 14 perfect a security interest in property subject to 15 (a) a statute or treaty of the United States which 16 provides for a national or international registration or 17 a national or international certificate of title or which 18 specifies a place of filing different from that specified 19 in this Article for filing of the security interest; or 20 (b) the following statutes of this State: the 21 Illinois Vehicle Code; the Boat Registration and Safety 22 Act; but during any period in which collateral is 23 inventory held for sale by a person who is in the 24 business of selling goods of that kind, the filing 25 provisions of this Article (Part 4) apply to a security 26 interest in that collateral created by him as debtor; or 27 (c) a certificate of title statute of another 28 jurisdiction under the law of which indication of a 29 security interest on the certificate is required as a 30 condition of perfection (subsection (2) of Section 31 9-103). 32 (4) Compliance with a statute or treaty described in 33 subsection (3) is equivalent to the filing of a financing 34 statement under this Article, and a security interest in SB1528 Enrolled -89- LRB9009866JSmg 1 property subject to the statute or treaty can be perfected 2 only by compliance therewith except as provided in Section 3 9-103 on multiple state transactions. Duration and renewal of 4 perfection of a security interest perfected by compliance 5 with the statute or treaty are governed by the provisions of 6 the statute or treaty; in other respects the security 7 interest is subject to this Article. 8 (Source: P.A. 89-364, eff. 1-1-96.) 9 Section 65. The Illinois Fairness in Lending Act is 10 amended by changing Section 6 as follows: 11 (815 ILCS 120/6) (from Ch. 17, par. 856) 12 Sec. 6. Where a financial institution , other than a13 credit union, as defined in Section 1.1 of the Illinois14 Credit Union Act, as now or hereafter amended,repossesses a 15 motor vehicle that was used as a collateral and which is 16 used primarily for the borrower's personal, family or 17 household purposes, the financial institution shall be 18 subject to the requirements of and shall transfer the 19 certificate of title pursuant to Section 3-114 of the 20 Illinois Vehicle Code and the borrower at the time of21 repossession has paid an amount equal to 30% or more of the22 total of payments due, the borrower may, within 15 days,23 redeem the motor vehicle from the financial institution by24 tendering:25 (a) the total of all unpaid amounts, including any26 unpaid delinquency or deferral charges due without27 acceleration, and28 (b) performance necessary to cure any default other than29 nonpayment of the amounts due; and30 (c) any reasonable cost or fees incurred by the31 financial institution in the retaking of the goods.32 Tender of payment and performance pursuant to this SectionSB1528 Enrolled -90- LRB9009866JSmg 1 restores to the borrower his rights under the loan as though2 no default had occurred. The borrower has a right to redeem3 the collateral from the financial institution only once under4 this Section. The financial institution may, in the financial5 institution's sole discretion, extend the period during which6 the borrower may redeem the collateral beyond the 15 days7 allowed under this Section, and the extension shall not8 subject the financial institution to liability to the9 borrower under the laws of this State.10 The financial institution must give written notice to the11 borrower, within 3 days of the repossession, of the12 borrower's right to redeem the collateral pursuant to this13 Section. The written notice shall be in substantially the14 following form:15 NOTICE OF RIGHT TO RECOVER VEHICLE16 Your vehicle was repossessed on (specify date) for17 failure to make payments on the loan (or other reason).18 Under Illinois law, because you have paid at least 30% of19 the loan before repossession, you may be able to get the20 vehicle back. You have the right to recover the vehicle if21 you do the following within 15 days of the date of22 repossession:23 1. Make payment of all back payments so24 that you are current on the loan. $...........25 2. Pay any late charge due. $...........26 3. Pay the costs of repossession. $...........27 Total Amount Now Due $...........28 Bring cash, a certified check or money order for the29 total amount now due that is listed above to our office30 located at (specify address) by (specify date) to get your31 vehicle back. 32 (Source: P.A. 90-343, eff. 8-8-97.) 33 Section 70. The Motor Vehicle Retail Installment Sales SB1528 Enrolled -91- LRB9009866JSmg 1 Act is amended by changing Section 20 as follows: 2 (815 ILCS 375/20) (from Ch. 121 1/2, par. 580) 3 Sec. 20. Unless otherwise limited by this Act, the 4 parties shall have the rights and remedies provided in 5 Article 9 of the Uniform Commercial Code with respect to 6 default and ,disposition ,and recoveryredemption of 7 collateral. If the holder of a retail installment contract 8 repossesses a motor vehicle that was used as collateral, the 9 holder shall be subject to the requirements of and shall 10 transfer the certificate of title pursuant to Section 3-114 11 of the Illinois Vehicle Code. 12 If the buyer has paid an amount equal to 60% or more of13 the deferred payment price at the time of his default under14 the contract and if the buyer, at the request of the holder15 and without legal proceedings, surrenders the goods to the16 holder in ordinary condition and free from malicious damage,17 the holder must, within a period of 5 days from the date of18 receipt of the goods at his place of business, elect either19 (a) to retain the goods and release the buyer from further20 obligation under the contract, or (b) to return the goods to21 the buyer at the holder's expense and be limited to an action22 to recover the balance of the indebtedness.23 If the buyer has paid an amount equal to 30% or more of24 the deferred payment price at the time of repossession, the25 buyer shall have the right to reinstate the contract and26 recover the collateral from the holder within 15 days from27 the date of repossession by tendering (a) the total of all28 unpaid amounts, including any unpaid delinquency or deferral29 charges due at the time of tender, without acceleration, and30 (b) performance necessary to cure any default other than31 nonpayment of the amounts due; and (c) any reasonable cost or32 fees incurred by the holder in the retaking of the goods.33 Tender of payment and performance pursuant to this SectionSB1528 Enrolled -92- LRB9009866JSmg 1 restores to the buyer his rights under the contract as though2 no default had occurred. The buyer has a right to reinstate3 the contract and recover the collateral from the holder only4 once under this Section. The holder may, in the holder's sole5 discretion, extend the period during which the buyer may6 reinstate the contract and recover redeem the collateral7 beyond the 15 days allowed under this Section, and the8 extension shall not subject the holder to liability to the9 buyer under the laws of this State.10 The holder must give written notice to the buyer, within11 3 days of the repossession, of the buyer's right to reinstate12 the contract and recover the collateral pursuant to this13 Section. The written notice shall be in substantially the14 following form:15 NOTICE OF RIGHT TO RECOVER VEHICLE16 Your vehicle was repossessed on (specify date) for17 failure to make payments on the contract (or other reason).18 Under Illinois law, because you have paid at least 30% of19 the deferred payment price before repossession, you may be20 able to get the vehicle back. You have the right to recover21 the vehicle if you do the following within 15 days of the22 date of repossession:23 1. Make payment of all back payments due as24 of the date of this notice. $25 2. Pay any late charges due. $26 3. Pay the costs of repossession. $27 TOTAL AMOUNT DUE as of the date of28 this notice: $29 4. Plus pay any additional amounts which30 may become due between the date of this31 the notice and the date of32 reinstatement. $33 AMOUNT NOW DUE34 Bring cash, a certified check or a money order for theSB1528 Enrolled -93- LRB9009866JSmg 1 total amount now due that is plus any additional amounts2 which may become due between the date of this notice and the3 date of the reinstatement to our office located at (specify4 address) by (specify date) to get your vehicle back.5 (Source: P.A. 90-343, eff. 8-8-97; 90-437, eff. 1-1-98; 6 revised 2-7-98.) 7 Section 99. Effective date. This Act takes effect upon 8 becoming law, except that Sections 35, 45, 50, 65, and 70 9 take effect January 1, 1999.
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