State of Illinois
92^nd General Assembly
Legislation

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92_HB5860eng

 
HB5860 Engrossed                               LRB9214920JSpc

 1        AN ACT relating to corporate fiduciaries.

 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:

 4        Section 5.  The Corporate Fiduciary  Act  is  amended  by
 5    changing Sections 4-2 and 9-6 as follows:

 6        (205 ILCS 620/4-2) (from Ch. 17, par. 1554-2)
 7        Sec. 4-2.  Foreign corporation; eligibility.  Any foreign
 8    corporation  may  act  in  this  State  as trustee, executor,
 9    administrator, administrator to collect, guardian, or in  any
10    other  like fiduciary capacity, whether the appointment is by
11    will, deed, court order or otherwise, without complying  with
12    any  laws  of  this  State  relating  to the qualification of
13    corporations organized  under  the  laws  of  this  State  to
14    conduct   a   trust   business   or   laws  relating  to  the
15    qualification of foreign corporations, provided only (1) such
16    foreign corporation is authorized by the laws of the state of
17    its organization or domicile to act as a  fiduciary  in  that
18    state, and (2) a corporation organized under the laws of this
19    State,  a  national  banking association having its principal
20    place of business in this State, and a  federal  savings  and
21    loan association or federal savings bank having its principal
22    place  of  business  in this State and authorized to act as a
23    fiduciary in this State, may, in such other state, act  in  a
24    similar fiduciary capacity or capacities, as the case may be,
25    upon  conditions  and  qualifications  which the Commissioner
26    finds are not  unduly  restrictive  when  compared  to  those
27    imposed  by  the  laws  of Illinois.  Any foreign corporation
28    eligible to  act  in  a  fiduciary  capacity  in  this  State
29    pursuant  to  the  provisions  of  this  Act, shall be deemed
30    qualified to accept and execute trusts in this  State  within
31    the meaning of this Act and the Probate Act of 1975, approved
 
HB5860 Engrossed            -2-                LRB9214920JSpc
 1    August  7, 1975, as amended.  No foreign corporation shall be
 2    permitted  to  act  as  trustee,   executor,   administrator,
 3    administrator  to  collect,  guardian  or  in  any other like
 4    fiduciary capacity  in  this  State  except  as  provided  in
 5    Article  IV  of  this  Act;  however, any foreign corporation
 6    actually acting in any such fiduciary capacity in this  State
 7    on July 13, 1953, although not eligible to so act pursuant to
 8    the  provisions  of  this  Article IV, may continue to act as
 9    fiduciary in that particular trust or estate until such  time
10    as it has completed its duties thereunder.
11    (Source: P.A. 85-858.)

12        (205 ILCS 620/9-6)
13        Sec. 9-6.  Audits.
14        (a)  At  least once in each calendar year a trust company
15    corporate fiduciary must cause its books and  records  to  be
16    audited  by  an  independent licensed public accountant.  The
17    Commissioner may prescribe the  scope  of  the  audit  within
18    generally accepted audit principles and standards.
19        (b)  The  independent  licensed  public  accountant shall
20    provide  a  written  audit  report  to  the  trust  company's
21    corporate fiduciary's board of directors or  to  a  committee
22    appointed  by the trust company's corporate fiduciary's board
23    of directors.  If the audit report is given  to  a  committee
24    appointed  by the trust company's corporate fiduciary's board
25    of directors, the committee shall, within 30 days  after  the
26    date  of  receipt  of  the audit report, provide the board of
27    directors with a written summary of  the  audit  findings  as
28    detailed  in  the  audit report. The trust company's board of
29    directors shall file with the  Commissioner  a  copy  of  any
30    written  summary  of the audit findings provided to the board
31    pursuant to this subsection within 45 days after  receipt  by
32    the board of the written summary.
33        (c)  The  trust  company's corporate fiduciary's board of
 
HB5860 Engrossed            -3-                LRB9214920JSpc
 1    directors or committee appointed by the  board  of  directors
 2    shall  cause  a  copy  of  the  audit  report and any written
 3    summary pursuant to paragraph (b) of this Section to be filed
 4    directly by the independent licensed public  accountant  with
 5    the  Commissioner  within  45 days after receipt of the audit
 6    report is issued.
 7        (d)  A trust company that is directly or indirectly owned
 8    by a bank holding company, a financial holding company, or  a
 9    savings  and  loan  holding  company shall be deemed to be in
10    compliance with the provisions of subsections (a) through (c)
11    of this  Section  if  the  bank  holding  company,  financial
12    holding  company, or savings and loan holding company obtains
13    an audit by an independent licensed  public  accountant  that
14    includes  the  trust  company  and  meets  the  standards  of
15    subsection  (a) and, within 45 days after the audit report is
16    issued, the bank holding company, financial holding  company,
17    or  savings  and  loan holding company causes the independent
18    licensed  public  accountant  to  directly  file   with   the
19    Commissioner  the  provisions of the audit report relating to
20    the trust company.
21    (Source: P.A. 92-485, eff. 8-23-01.)

22        Section 99.  Effective date.  This Act takes effect  upon
23    becoming law.

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